Worldwide economic crisis and the effects of 2001 Crisis over the Turkish economy

It is a fact that the 21st century has been quite promising for Turkey. The po-litical developments experienced in 1999 increased the expectations. Also, the gen-eral election in April, the triple coalition government and the assignment of Kemal Derviş, who was the deputy manager of the World Bank, were among the indicators of upcoming drastic changes. Following the developments mentioned, a 3-year program started by virtue of the stand-by treaty signed with IMF in 1999. This program required that currency rate would be stabilized by a pre-determined level for the first 1,5 year and the fluc-tuating currency regime would be adopted for the next 1,5 year so that currency would be pulled back to the targeted point. Although the first developments were positive, that some public and private banks wanted to meet their deficits had led to the crisis circumstances by November. A second crisis had hit by 2001 February and the economics had alreday went into stagnation. All these developments disclosed the need for a currency-based program. Thus, the program for transition to strong economics was prepared but when the ex-pected results were not achieved, it was decided in 2002 July to have an early elec-tion in November, which started another new period. This study aims at providing a better understanding of the concept of crisis and the crisis periods and offering new solutions for avoiding similar periods. In the first chapter, the concept of crisis; its types, causes and effects will be studied. In the second chapter, the great economic crises in history will be investigated and in the last chapter, the economic structure before 2000s will be examined to identify the stages bringing forward the 2001 crisis and its effects.