How does the relationship between America and Iraq influences Turkey?

Essay by SekondeRCollege, UndergraduateA+, January 2004

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Turkey is an unrecognized victim of

The tension between America and Iraq

According to the American government Iraq is a serious danger for the world and supports terrorism, especially radical Islamic terrorism. America applies political and economical sanctions that prevent Iraq's development and so the relation between America and Iraq is always under high tension which has recently resulted in wars. The tension between America and Iraq has created an economic crisis for Turkey which neighbour and has associated boundaries with Iraq. There is an economic crisis in Turkey because of loss of investment, loss of tourism, a possible influx of Kurdish refugees and loss of trade which are effects of this high tension.

To begin with, loss of investment in Turkey which America-Iraq tension causes takes a role in economic crisis of Turkey. Iraq has 12 % of world petroleum resources in other words Iraq has the right to comment on petroleum markets (Ersanel N).

Related to relation with America, Iraq can stop producing petroleum and in a limited time period oil prices increase in Turkey as Turkey provides most of its oil necessity from Iraq. Since all shopping is indexed to oil prices, the unknown in oil prices creates uncertainty among investors. Since the investors are not sure about the future of their investing which may or probably may not yield profit, they prefer to put their money in loan instead of founding a factory. In addition, insecurity in the region stands as an obstacle for them. As the tension between America and Iraq has recently resulted in wars, a probable war causes insecurity in the region. The same investors also think about their factories's possibilities of being targets of American F16's bombs and Iraq's rockets. And so they cannot be confident about investing shortly money goes to...