What should economy foundations do to clean the residues of the failed coup attempt? - ERDAL TANAS KARAGÖL

What should economy foundations do to clean the residues of the failed coup attempt?

In the last few years, the Turkish economy has encountered many attempts of creating a crisis. The Gezi Park incidents, the Dec. 17 and Dec. 25 coup attempts, the Kurdistan Workers' Party (PKK) and Daesh terror attacks and finally the July 15 coup attempt. Despite all of the above attempts, the strength of our economy is evident.

The quick recovery of the economic indicators shortly after the July 15 coup attempts, the positive outcomes of the re-establishment of the relations between Turkey and Russia and the public's strong economic support has decreased the negative effects of the coup attempt and supported the normalization process.

Besides, there is no need to do economic stress tests, as Turkey continued its strong stance and economy despite the many coup attempts. Actually, all the attempts and shocks experienced are the real tests.

The need for a strong lobby

It is important that the normalization of economic indicators reflects on to the economic relations we have with foreign countries. Because they are trying to create a negative atmosphere on behalf of Turkey. Turkey needs to find an extensive strategy that would scatter the black clouds that has been consciously created over Turkey.

Thus, the professional support the Turkish Foreign Ministry receives while establishing overseas lobbying for the country's perception is very important.

Moreover, the Public Diplomacy Coordination taking the role of coordinating the cooperation between institutions will also add to the effectiveness of operations. There may be a need for a new qualified foundation, with a larger capacity, that can manage the perceptions.

Well, what should the economy institutions do?

Credit rating foundations carry a big role in creating a negative economic image for Turkey. S&P immediately lowered Turkey's credit rating as if it were specifically waiting.

Moody's, on the other hand, announced that it would be lowering Turkey's credit rating. Therefore, they have been trying to create an image of uncertainty that would discourage foreign investors.

At this point, economic institutions are responsible for giving foreign investors' confidence and reflecting the positive economic environment to the outside world.

All economy institutions, including the Central Bank, the Banking Regulation and Supervision Agency (BDDK), Capital Markets Board (SPK), Banks Association of Turkey and the Istanbul Stock Exchange need to explain the positive atmosphere to other countries and foreign investors.

Because, in order for Turkey to protect its "investable in the long-term" status, it needs to establish strong relations with international investment banks and even do detailed roadshows.

Since we mentioned long-term investment, in the past, unjust credit ratings were not reacted to. There was some kind of policies that forbade the mention of such institutions.

For example, I could not understand the reluctance and non-resistance of our institutions to react against or create an alternative to the rating institutions when the credit rating institutions were writing the "Credit Rating Institutions: Alternative Pursuits” for the SETA Foundation in 2012.

However, today we need to react more actively and potently. We need to answer "Why can't we develop an alternative to these institutions?" Because, we are witnessing how these institutions can destruct economies in the short and long terms.

A special field needs to be created for the Strategy and Business Development Agency (DEİK). They need to activate the expanded relations they have with foreign investors and businessmen immediately. It is of vital importance for better relations with foreign countries and to move forward with Turkey's economic relations during this period.


Cookies are used limited to the purposes in th e Personal Data Protection Law No.6698 and in accordance with the legislation. For detailed information, you can review our cookie policy.