The Republic and the public-oriented economy

Treasury and Finance Minister Mehmet Şimşek stated that at least 1 year is needed to see the results of monetary policy, adding, “We want to exit the foreign currency-protected deposit scheme.” Thus, the end of one of the most important projects of the previous minister, Nurettin Nebati, has become visible. These diametrically opposed policies of two ministers who served one after another under the same party and the same government have once again shown that there is no consistency or stability in economic policies.

We know; the current account deficit in Turkey is high. The foreign trade deficit is high. The budget deficit is high. Inflation is high. External debt is high. Unemployment is high. The exchange rate is high. Turkey is stuck in the middle-income trap.

We know; Turkey urgently needs an inflow of external resources and foreign capital. The nature of the incoming foreign capital is, of course, also important. Is it coming for privatization? Is it coming to make money from money? Is it coming to buy real estate? Is it coming to build factories and engage in production?

We must also discuss this: Where are the taxes, which constitute the state's largest revenue item, primarily spent? To what extent are the investments made productive? How efficient are they?

The answers to all these questions, especially the interest that foreign capital will show, are closely related to our country's reputation in the world. Because there are two most important elements that show the political and symbolic reputation of a state: one is the strength of its currency, and the other is the strength of its passport. Both the low value of our currency and the fact that our passport is in the middle ranks of the list of the most respected passports in the world is a painful reality for our country.

WHAT IS THE REMEDY?

To solve the problems listed above, there is first a need to turn towards a holistic development strategy and a production economy. This is a necessity for our Republic, which we are celebrating its 100th anniversary. The Republic means, among its other qualities, public-orientedness and planning. For a Republican development, what needs to be done is already clear.

For this, problems must first be identified on the basis of reason and science, priorities must be ranked, solution proposals must be addressed, and national strategies must be determined. On a class scale, policies that observe and prioritize laborers, the oppressed, tradesmen, peasants, farmers, and civil servants must be followed. Turkey must focus on production, investment, employment, and exports.

For the distribution of the economy to be done fairly, first and especially ideological clarity is required. Only if this happens can resources be used by observing the needs, interests, and demands of broad segments of the public. This choice is, of course, ideological. Because the problem is not related to finance, it is primarily political. Because economic choices determine political choices. The economy is not independent of politics; it is intertwined.

Turkey must turn not to IMF and World Bank prescriptions, but to planning. It must plan its cities, population, industry, agriculture, and underground and above-ground resources. In order to use its resources in the most efficient way, it must follow populist, statist, and public-oriented economic policies along with planning.