The tourist sector is a key pillar of Turkey’s economy, as it has contributed approximately 5% of the country’s GDP. Although international investors dominate the most lucrative parts of this sector, they remain vulnerable to the ongoing political decision-making of the ruling elite in Ankara. As a result, Turkey’s tourist sector has felt an impact from decisions such as Turkey’s military intervention in Syria, and the negative diplomatic consequences such actions have created.
The PSD is assessed to be among the most influential actors in state-owned military companies. Not only are there indications that it can influence the appointment of directors, but it has a hand in shaping decisions made throughout the defence sector itself. Although Romania remains somewhat accountable to international defence organisations of which it is a member-state, such as NATO, this has not precluded the amount of influence it has secured over national players.
The ongoing Turkish military operation in Afrin is elevating nationalist feelings in Turkey, spurred by its fight against Kurdish armed groups. Behind this rhetoric, President Erdoğan is further legitimising legal reforms; arguably reinforcing his ability to exert influence - and ostensibly control - the country' defence industry. As his fingerprint is established over the defence sector, this industry joins the many others that are being utilised to distribute resources to loyalists.
2018 is expected to be a year of consolidation in Bulgaria's banking sector. New laws and transparency requirements have been implemented in this economic sector, with the hope that these initiatives will reduce allegations of questionable activities associated with the country's banking sector. This is particularly the case with locally owned banks as they seek international investment.
Opacity surrounding how EU agricultural funds are distribiuted in Bulgaria is feeding allegations that state officials in the country’s main agriculture state agency and in the Ministry of Agriculture personally benefit from their position. It is believed that these officials distribute EU funds to loyal landowners in exchange for a de facto kick-back.
Turkey’s banking sector is crucial to the success of the AKP and President Erdogan. Although the sector itself primarily functions independently of government interference; there are growing concerns that it is becoming increasingly exposed to informal mechanisms of political influence. This is a summary of a report available in the Shadow Governance Intel Store, that looks at how political exposure plays out in Turkey’s banks, and assesses the repercussions this can have on the future viability and reputation of the sector going forward.
International investment in the TRNC tourist sector is impacted by the fact that the TRNC remains solely recognised as an independent territory by Turkey. In addition to this political factor, scarce energy and water resources increase the costs associated with investing in tourism. This predicament, however, has interestingly facilitated the emergence of informal investment opportunities for smaller entrepreneurs.
There are indications that Turkey’s AKP is utilising the private security sector to reinforce their influence over state security institutions. The desire to exert influence throughout Turkey’s security apparatus is ostensibly driven by the emerging paranoia that the AKP is being faced with internal challengers. Manipulating private security to monitor and/or control state security structures will erode democratic accountability.
Although the current economic standing of Belgrade’s Airport is good, the Vučić government is - yet again - close to endangering one of the most important state assets. Previous regional examples reveal how governments, for political purposes, have privatised state assets to the detriment of public coffers, and the case of Belgrade Airport could easily follow this path.
The Bulgarian media sector appears to be controlled by individuals with strong links to political parties and the ruling elite, as is the case with Delyan Peevski. Central to influencing political and public opinion, the media sector has become an important tool through which elements of the status quo have sought to hide corruption, and other questionable practices that continue to undermine Bulgaria.
Serbia’s telecommunications sector is ripe for change, with new opportunities emerging. Navigating the competitive market, however, remains imperative for any new venture. Although most of the sector can be treated as competitive, there remains the problem of state-owned MTS: an entity whose development has been curtailed as a result of undue and opaque political influence.
Bulgaria’s energy sector is currently in the midst of a power struggle, with Prime Minister Boyko Borisov seeking to diminish the influence of independent businessmen with energy interests. One of the main consequences of this is that the sector is becoming increasingly politicised. Despite the involvement of international actors (Russia-EU), trends suggest that the sector will ultimately be shaped by internal power dynamics.
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