TUSIAD: Turkey should return to accepted rules of economics science

Turkey has apparently been going through a major issue of falling TL against foreign currency, the dollar to be in the first place. The counter attempts made by the administration (CBRT etc.) to prevent this negative development is observed to be in vain so far. In the meantime, TUSIAD (Association of Turkish Industrialists and Businessmen) has made a very important statement regarding most recent developments in financial markets and Turkish economy. The statement has shared following messages.

“As a result of the recent instabilities, it has become clear that the intended results will not be achieved with the economy program that is being tried.

As TUSIAD, we have shared our views with both public institutions and the public many times before this economic framework was drawn up, as well as while the process was in progress, that policies formed with an early (before due time) interest rate cut would create instability. We have emphasized the risk that this process will result in severe depreciation of TL, acceleration of inflation, suppression of investments, growth, employment and, most importantly, our impoverishment as a country.

As a matter of fact, after the steps taken within the scope of the new economic preferences, an atmosphere of insecurity and instability has formed. In particular, we see that the demand for foreign currency in the country is rising sharply, which disrupts all existing economic balances.

The economic policy pursued creates new economic problems not only for the business world, but also for all our citizens. In the long term, the risk of causing much larger structural problems has increased. Even our exporters, who are expected to benefit the most, suffer from this environment.”

“As a result of all this, it is clear that it is necessary to quickly return to the generally accepted rules of economics science, within the framework of free market functioning in which the damage caused to the economy in the last period is identified and first of all, the support of all stakeholders is received. We have already pointed out the problem of “de-institutionalization” in our country and shared the necessary approach for our development with the public via our study called “Building the Future with a New Understanding: People, Science, Institutions”.

We must implement rules-based policies that will benefit our country’s economy, pave the way for predictability, investment climate and development. The steps to be taken, especially the inclusive and effective strengthening of institutions and rules, are essential for the formation of a climate of trust in our country.

As TUSIAD, we are ready to contribute to the right steps to be taken in this direction.”