Nevertheless, the economic situation, while at times experiencing dramatic growth, has been unstable, rife with internal structural problems resulting from state intervention and bloated government bureaucracies. Economic problems are further exacerbated by excessive population growth, fueled by heavy rural to urban migration and relatively low prevalence of modern contraceptive usage. In recent years, the country has faced the challenges of the Persian Gulf War, and the repercussions resulting from economic sanctions and the humanitarian operation in neighboring Northern Iraq. Turkey also is encountering a separatist and terrorist campaign within the country. There is continued concern about the human rights situation in the country.
Turkey is a key ally and plays an important role in the region.
While peace prospects have improved in some parts of the Middle East, hot spots are evident throughout the Caucasus, Central Asia, Cyprus, Iraq and Iran. These significant changes in the economic system require international financial support to ease the burden. The United States monitors progress of Turkey's economic and political reform program. The provision of funding has not been explicitly linked to an economic reform agenda. Therefore, no specific indicators have been established.