As soon as the unfair treatment of some vocational high school graduates at the university exams is ended, Turkey’s most important economic agenda item, the economic reform, will then be carried forward and the industry’s scope will expand.Three elements are needed to build a market economy that works in accordance with historical data. First is the establishment of a price mechanism that will distribute resources efficiently in the free competitive atmosphere. To provide this, commercial and financial reforms are required, and the government must leave the production field and become an efficient regulator and inspector. The process that began in 1980 out of necessity ran up against the rigidity of the system and could not be completed due to resistance. Following the three serious economic crises between 1994 and 2001, the oligarchy and its political extensions were defeated by the public, and the regulations and reforms left incomplete were taken up again.
The reason for the economic losses in 1990 was not the condition of the “market” but uncontrolled capitalism, which was established by the oligarchy and was rooted in a corrupt relation based on personal interests between people in something akin to domestic colonialism.
The second element is development of market and out-of-market institutions so that the price mechanism will bring sustainable growth and development; an efficient law system is the most important of all of these. Some jurisdictions that supported a corrupted system closed the way for this development.
The autonomy of the Central Bank of Turkey, which was made a money minting machine, establishment of the Competition Board, providing a transparent financial system and government as well as an efficient inspection system are other key tools in this matter.
The public banks’ losses, which are estimated to total $40 billion, and which caused a collapse in Turkey’s economy, are also a result of this system; however, the International Monetary Fund (IMF) was made the scapegoat. Likewise, the military expenditures were opened to the inspection of the Turkish Court of Accounts quite recently, but it is still prohibited to publicly announce this. A market without institutions does not function and these basic flaws again ended up in the blaming of others, including the IMF and the EU, for events like the 2001 crisis.
The third element is to have a culture that is compatible with the market and that enables the functioning of institutions in the country. Among the factors necessary is an entrepreneurship culture, which requires you to see the opportunities and take risks, the presence of businessmen who consider competition a “virtue” not a “sin” and individuals who prefer to build their own future instead of relying upon government support and who take responsibility for their actions. Removing the obstacles in front of rights to travel, education, participation, ownership and so on are the most significant elements in creating this culture.
Turkey took significant steps after 2001 thanks to the determination of the government and the encouragement from the IMF and the EU. The previous crises caused the resistance to reform to fade away. However, the fear of some of living in an open society is still present. The fact that those at the center of bigotry carry the title of “intellectual” is an illness completely unique to Turkey.
Along with the market system, we need to have the public embrace the country and their destiny. Removing the bans will end the process that estranged the public and pushed them into a corner, while also creating a burst of motivation. This is the most positive development that Turkey could show to the rest of the world.
