What must be a new 'Economy Story'? - ERDAL TANAS KARAGÖL

What must be a new 'Economy Story'?

The discussion of economy only in election promises and constant efforts to create a crisis perception in the period leading up from June 7 to Nov. 1 is left behind.

Within this five-month period we saw that political instability leads to the slowdown of the wheels of economy, to uncertainty and concerns regarding the future of grand projects.

The resulting picture after Nov. 1 offers a major opportunity to start a new breakthrough process in economy.

Turkey, which no longer has a problem such as political uncertainty, needs to, without losing time, focus on reforms in economy and the breakthroughs necessary for a strong economy.

The Justice and Development Party (AK Party), which succeeded to lift Turkey from the "lower-middle income group" to the "upper-middle income group" with the political stability it provided since coming to power in 2002, can now succeed in lifting Turkey to the "high-income economies" group.

This is why now, a critical period is beginning for Turkey in terms of getting out of the "middle-income trap" area and becoming included in the "high-income economies," in other words, in the rich countries group.


The difference in number of votes between June 7 and Nov. 1 is proof that the AK Party government is considered the guarantor of economic and social gains and stability with its icon projects.

The people, who, siding with political stability, displayed a strong stance, are expecting these gains to increasingly continue.

Hence, the political stability provided to make structural reforms in Turkey's economy and to write a new success story in economy, needs to be used well. The first things that need to be done are to establish a strong connection between real economy and financial economy and prioritize real economy. Also, initially, the strong "Industry and Investment Bank" model needs to start being implemented to support and increase the production of high technology.

This implementation is going to be an important step in re-expediting the slowdown in economic growth since 2012.

Furthermore, the financial decisions made to decrease the negative affects of the 2008 global economic crisis need to be reviewed and revised. In order to do this, banks - primarily the Central Bank - and the BDDK need to embrace the policies that support the economic growth process. Because the wheels of economy can only start to turn again if economic players and institutes work in coordination.

The policies in "energy," which has a key role in economic growth, is also critical in terms of the policies that need to be followed. The concept of Turkey's energy policies are not shaped with a narrow vision aimed at meeting the energy need only. Turkey must continue the mission it undertook by accommodating big energy projects on the path to becoming an "energy hub" by adding new projects. Cooperation with other countries wanting to be included in the global energy map must be accelerated before developing alternative routes to Turkey. This will contribute greatly to the direct increase of foreign investments in the country, primarily in the energy field. Since we mentioned direct foreign investments, why shouldn't we become a country of attraction once again for direct foreign capital? The AK Party achieved this in the past.

While the direct foreign investment in the country between 1950 and 2002 was just under $17 billion, the foreign investment in the country in one year alone in 2006 was over $20 billion. Why shouldn't it happen now?

Most importantly, these macro level improvements need to be spread more fairly on the base and reflect highly at the micro level. This will be the fundamental factor in reinforcing the confidence and stability in Turkey.

Turkey's goals are very big and there is a lot of work to do to achieve them.



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