Government has to boost the economy

The fact that Turkey was not actively involved in the war and as a matter of fact stalled the Americans has created a negative atmosphere towards Turkey in Washington and especially at the Pentagon. That is bad news for Turkey that relies on the strong American backing to encourage the International Monetary Fund and the World Bank to be more forthcoming to the problems of Ankara. But despite all this the fact that there are still some people who realize the long term of importance of Turkey for U.S. strategic interests as against some key people in Washington who are rather too emotional and are acting with their hearts rather than their minds also is comforting that things may not be all that bad.

But despite all this the government faces the task of getting to the roots of corruption and irregularities in Turkey that are at the heart of the economic crisis. This is a gigantic task. The government has to break the crooked relationship between state officials, politicians and businessmen that have proven to be the crux of corruption.

The reforms in the banking sector have to continue unabated if we are to establish some form of discipline in the financial sector. But even then we see that there are real obstacles in combating businessmen who plundered the funds of the banks in the past and have made the nation pay the bill.

But the real problem is really what to do with Turkey’s mushrooming debts. The internal debt situation remains a cause of concern. Experts tell us the government sooner or later will face the bitter realities of either having to take dramatic steps to restructure the internal debts or face the prospects of declaring a moratorium.

Besides all this the government has no other option but to find a way to revive production in Turkey. We simply cannot pay back our debts by accepting new loans. We have to produce, export our goods and earn hard currency to pay our debts. Relying on international handouts should be the exception and not the rule.

The government is installing its own people in high places in the bureaucracy so it feels able people will be in place in its effort to restructure and revive the economy. Once these people are in place the Justice and Development Party (AK Party) government led by Recep Tayyip Erdogan will have no alibi left.

Then we will all want to see results and relief for the masses.