“The constitutional amendments are an important change that will not only close the door that has been left half open for coups, but also put locks on it. It is a change that paves the way for judicial reform and ensures that Turkey respects the rule of law. When this happens, Turkey will become a more predictable country and one people can trust. And the economy of a country that is increasingly trustworthy will certainly improve. But if the opposite happens, if a ‘no’ comes out [of the ballot box], it will mean Turkey and its citizens do not want a higher quality, and more civilian-focused, democracy. That will create a question mark. This may bring traumatic consequences,” he stressed.
Also commenting on links between democracy and development, Babacan said economic development was impossible without a functioning parliamentary democracy. “There is no developed country with a per capita gross domestic product of $30,000-40,000 whose democracy is at risk of military takeovers,” he explained.
Pointing out that the dominant expectation in the financial markets is that the reforms will pass, Babacan noted that if these predictions come true, the markets will improve further. He said the İstanbul Stock Exchange’s (İMKB) benchmark 100 index closed at an all-time record level on Friday. “We have already started to see the benefits of a ‘yes’ result,” he concluded.
