MTP: A program of crisis and poverty

We have become accustomed to the abundance of inconsistencies and contradictions in all Medium-Term Programs (MTP). The latest MTP is no exception. Nevertheless, we attach importance to MTPs because, in the end, they present a statement of intent regarding the near future. Sometimes explicitly, but mostly implicitly. The fundamental difference of the latest MTP is that it signifies the implementation of a different economic policy within the same term of government. Indeed, in this respect, it reflects a different understanding from the previous MTP (2023-2025), marking a return to orthodox neoliberal policies. However, the class-based similarity remains essential: the main line of this Program, like the previous ones, is capital-oriented.

It is a program that is inconsistent, far from its targets, sides with the wealthy, and crushes the laborer. It is an implicit IMF program. Can this MTP combat crisis and poverty? No, on the contrary, it will deepen them.

Growth is slowing down. This means unemployment and poverty.

Unfortunately, the MTP (Medium-Term Program) has lost its status as a reference document because it has consistently failed to meet its targets in recent times. The recently announced Medium-Term Program unfortunately does not meet expectations either.

When we examine the basic indicators, it is impossible to make sense of the target to reduce inflation from 41.5% to 17% in 2025 while simultaneously targeting an economic growth rate of 4%. To say that we will cool down the economy and plan to lower inflation through a drop in demand, while also claiming the economy will grow by 4%, is to mock our intelligence. Either inflation will not fall, or the economy will not grow by 4%.

At the same time, how will the current account deficit fall while the country grows by 4%? As is known in our country, there is a parallel between the current account deficit and the growth rate. However, the plan envisions the current account deficit falling while growth continues. Unfortunately, how or when this will happen is not mentioned at all.

How will the current account deficit fall in a place where the exchange rate level is still relatively low? It is clear that while we had one ear closed to the exporter, we are now thinking of closing both. It appears our country will continue to be more expensive than Greece. In this situation, how can our expectations from tourism be positive?

Unfortunately, the MTP does not offer a single solution regarding food and housing, which are the basic needs of our citizens. It is evident that retirees and low-income earners will continue to be miserable in the coming period.

With this interest rate policy, it is clear that the carry trade will continue and the transfer of resources abroad will persist. How long can our country survive with such high interest payments?

In conclusion; this MTP is built on crisis and poverty and does not foresee prosperity. Poverty and crisis will continue to be our way of life for another three years. This program is neither a program of foresight nor of hope. It is a program built on trying to look appealing to the IMF without the IMF itself, a program that is hostile to its own people and friendly to the IMF.