Published On: Fri, Jan 11th, 2019

Policies required for the Turkish economy to return to its sustainable growth path

Policies required for the Turkish economy to return to its sustainable growth path

It is obvious that Turkey has had to cope with many challenges to protect its economy against major blows on a global scale during the past several years. However it is no secret either it is quite difficult to say the administration has displayed a successful performance during this time. Indeed some major mistakes made by the government have also contributed to the current situation of the economy in the country.

The question at this point is what could and should be done to recover the economy and which policies are required to return it to its sustainable growth path. To design a feasible plan for favorable achievements we certainly need to review the risks the economy is likely to face as well as the opportunities Turkey could make use of.

To start off with strong institutions and policies based on rules are the most important prerequisites gain for a successful performance on the way to establishing a healthy economy again.

Then the ultimate goal should be to make Turkey a country again where direct investments would come rather than an address for hot money flow. We could also put it this way; Turkey should turn a new page and put an end to the era of hot money lived through since the global crisis and start writing a new story.

So far we have referred to the fundamentals which certain strategies should be built on. As for steps the administration needs to take for a strong economy again, experts comment the following should definitely be taken into consideration:

Strong institutions should be established and rule-based policy should be made and followed to ensure predictability in economy. The administration should be determined not to compromise on principles of a free market economy. Structural reforms should be made to increase the efficiency and competitiveness of the economy. The rule of law and judicial independence should be strengthened to improve the investment climate. Necessary steps should be taken to strengthen relations with the EU and modernize the Customs Union.

Experts note that it would be possible to raise hopes for a fast recovery of the economy, only provided and after these major steps are taken by the administration. Others all that is done would not go beyond superficial and temporary measures.

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