Turkey's dynamic economy is a combination of modern industry and commerce and a traditional agricultural sector. The country has a strong and rapidly growing private sector, yet the state remains a dominant actor in basic industry, banking, transport, and communication. In recent years, the Turkish government has been implementing a comprehensive programme of reforms, simplifying company establishment procedures, reducing permit requirements, and creating a single company registration form. Yet, foreign investors and companies continue to cite corruption as one of the major impediments for business growth in Turkey.

Positive developments in relation to corruption and investment:

• Turkey's anti-corruption strategy has exposed a number of public officials, who have been dismissed on charges of bribery and corruption.
• In February 2010, Turkey adopted a national anti-corruption strategy (2010-2014). The plan has been praised for its preventive measures, law enforcement measures and its focus on raising awareness. However, in a report by the OECD and the European Union, they consider it too early to assess its effectiveness.
• One-stop shops have been established for citizens and companies to reduce red tape and the number of meetings between civil servants and companies. In addition, dozens of governmental internet portals have been launched to make the regulatory processes more transparent and to involve citizens in the decision making process.
• A Code of Ethics for civil servants was adopted in 2005, and training has been undertaken to raise awareness among public officials about corruption.

Risks of corruption:

• Despite many positive developments, corruption in Turkey remains rampant and enforcement of anti-corruption policies remains weak, as suggested by several sources.
• Public procurement is considered by companies to be particularly affected by corruption.
• Foreign companies in Turkey encounter excessive bureaucracy, a slow judicial system, weaknesses in corporate governance, unpredictable decisions made at the local government level, and frequent changes in the legal and regulatory environment.
• Judicial reforms, which were part of the September 2010 constitutional reform package, may decrease the judicial independence by giving parliament greater powers in appointing judges.