When the Turkish government blocked access to YouTube and Twitter in the wake of the widespread 2013 Gezi Park protests and a corruption scandal months later, then U.S. Assistant Secretary of State for Public Affairs Douglas Frantz held a remarkable meeting with a number of Turkish journalists.

"I think that (censorship) is damaging to the Turkish democracy … it’s damaging to Turkey’s image in the world. And the image of Turkey, just like the image of the United States, is a valuable commodity," Frantz said.

."Outside investors and Turks themselves who are investing, who are going to make this economy grow, make it get healthier even, improve the lives of everyday Turks, they want to know that the rule of law exists here, that leaders don’t choose which laws they choose to follow. And the most important way they can know that is if you have an open press that serves as a check on the government," he said.

"I think that some of the issues I’ve heard raised in the last couple days when I’ve had meetings here in Turkey are that there are concerns about whether checks remain on the government in Turkey. Well, the press is one important check that should be, should be, outside the control of the government."

Even though Frantz only really said, “be careful, do not mess with the democratic system and the rule of law in your country”, the Turkish government reacted furiously. Journalist Kadri Gürsel, who reported the meeting, was persecuted both in the media and on social media.

Over the last four years, Frantz's name has been forgotten in Turkey, but the financial effects of his warnings are widening. Foreign Direct Investment (FDI) inflows to Turkey have decreased rapidly and dozens of foreign companies have shut down their operations. According to Turkish central bank data, the FDI dropped by $1.8 billion in 2017.

FDI, according to official figures:

YEAR FDI (Excluding Real Estate Purchases by Foreigners) ($ Million) 2004 1092 2005 8134 2006 16982 2007 18394 2008 14713 2009 6184 2010 6221 2011 14145 2012 10128 2013 9322 2014 8370 2015 11710 2016 6913 2017 (Jan-Nov) 4811

Source: Central Bank Balance of Payments Statistics

The above table shows that the FDI inflows - the kind of foreign investment that creates employment – have rapidly declined. In 2017, FDI plummeted to $4.8 billion, its lowest level since 2004. Among other factors, Turkey's international policies and deteriorating relationship with the Western world are no doubt playing a significant role. Particularly in the last year, as Turkey's relations with the United States and Germany entered a new low, FDI followed.

Foreign Direct Investments from European countries plunged:

COUNTRY 2016 (FDI $ Million) 2017(FDI $ Million) DIFFERENCE ($ Million) United Kingdom 974 161 -813 Russia 723 2 -721 Qatar 420 94 -326 Switzerland 339 44 -295 Luxembourg 335 99 -236 Germany 440 235 -205 USA 338 134 -204 Japan 454 271 -183 Azerbaijan 661 496 -165 Lebanon 152 2 -150 Austria 345 299 -46 Kuwait 73 47 -26 Saudi Arabia 21 7 -14 United Arab Emirates 26 15 -11 Greece 0 0 0 France 90 104 14 Italy 87 115 28 Belgium 13 226 213 Netherlands 1024 1597 573 Spain 318 1005 687

Source: Ministry of Economy

According to these numbers, FDI fell in 2017, not only from Western countries, but Russian, Qatari and other Arab countries' investment in Turkey tumbled as well. Of course, these investors look at the same criteria that their Western counterparts do. Hence 14 of Turkey's 20 most significant investors reduced their investments in Turkey in 2017.

Central bank data shows that FDI outflows also set a record. In 2017, FDI outflows surpassed a quarter of total FDI inflows for the first time:

YEAR FDI INFLOWS FDI OUTFLOWS % 2003 696 8 1.15 2004 1190 98 8.24 2005 8535 401 4.70 2006 17639 657 3.72 2007 19137 743 3.88 2008 14748 35 0.24 2009 6266 82 1.31 2010 6256 35 0.56 2011 16136 1991 12.34 2012 10761 633 5.88 2013 9890 568 5.74 2014 8631 261 3.02 2015 12074 364 3.01 2016 7534 621 8.24 2017 (Jan-Nov) 6608 1797 27.19

Many international companies are leaving Turkey. In the last few weeks, the credit rating agency Fitch, Canadian technology company SOTA, and Italian restaurant chain Carluccio's have decided to withdraw from the Turkish market. There are media reports that department store chains including H & M, Zara and Mango are planning to downgrade their Turkish operations.

Why are these companies leaving Turkey? Each has a different story. Some cannot achieve their growth goals, some are worried about the volatility of exchange rates, and some blame unfair competition.

Susan Docherty, CEO of Canyon Ranch, spoke candidly about her reasons for closing her hotel in Turkey last year said:

"I need to be honest with you, my heart cries for the Turkish people. I spent a lot of time in my first two years in this role travelling to Turkey, and it just breaks your heart to see what’s going on in the country right now. The location is beautiful, on the edge of the Aegean Sea overlooking the Greek isles, but with everything happening there, the tourism and travel industry in Turkey has received a significant blow."

The tourism sector is not the only sector losing foreign investors, some of the companies that have left Turkey in recent years include: