How Can Turkey’s Economy Improve? Nobel Prize-winning economist Prof. Daron Acemoğlu Explains Step by Step!

Nobel Prize-winning economist Prof. Dr. Daron Acemoğlu recently shared his insights on how to improve Turkey’s economy. During an interview on journalist Fatih Altaylı’s YouTube program, Acemoğlu emphasized the need for reforms in the judiciary and education, as well as increased investment in technology. He highlighted poverty as one of Turkey’s biggest challenges and outlined three critical areas for recovery.

Acemoğlu warned that Turkey had a window of 10-15 years to leverage its potential before falling behind technologically and demographically. To ensure progress, he advocated for significant investment in human capital and technology, increasing productivity in businesses and workers, and ensuring that investments were properly directed.

For sustainable economic improvement, Acemoğlu stressed the importance of establishing a trustworthy and respected judicial system. He also argued that Turkey’s education system needed a complete overhaul to foster competition, free thinking, effective use of AI, and innovation. Without such an education system, he suggested, permanent economic improvement was unlikely.

He pointed out that low wages were a major contributor to poverty in Turkey. According to Acemoğlu, merely increasing the minimum wage isn’t enough; instead, enhancing workers’ productivity is crucial. Higher productivity would increase demand for labor, encouraging employers to offer better wages. Improving workers’ skills and knowledge would help address poverty, reduce unemployment, and weaken inflationary pressures.

Acemoğlu also emphasized the importance of using technology wisely, not just for automation but also to create new jobs and enhance workers’ skills. He concluded that investing in education and technology to boost productivity was essential to increasing wages and securing Turkey’s economic future.