The ‘Turkish economy model’ was short-lived, it could not find a place on the electoral platform
The AKP election manifesto was announced today by President Recep Tayyip Erdogan.
The “Turkish economy model”, which was announced following the appointment of Nureddin Nebati to the Treasury and Finance Ministry in December 2021, was not included in the election manifesto.
The concept of “Turkish Economic Model” was used for the first time by Minister Nabati on December 20, 2021. Although Nabati has frequently used this concept for 16 months, President Erdoğan has not used it since December 3, 2022 .
THE MODEL THAT EXPLODED INFLATION AND THE DOLLAR
The dollar exchange rate, which was 8.30 TL at the beginning of September 2021, increased to levels of 18.30 on December 20, 2021, in the process that began with the Central Bank’s interest rate cuts (CBRT) and then went back up.
Official consumer inflation, which was 19 percent in September 2021, reached its highest in 24 years at 85.5 percent in October 2022, as the increase in the exchange rate interrupted all pegging mechanisms. of prices.
These policies were initially justified with the thesis that “interest is the cause, inflation is the result”, but after the rise of inflation and the exchange rate, the concept of the “Chinese model” was used first, and then the concept of “Turkish economy model”. was advanced by the government.
IS THE PROMISE OF CHANGE ‘ECONOMIC MANAGEMENT’?
The AKP’s election manifesto did not include the objectives and concepts of “current surplus” and “liraization”, which have been frequently used recently, in addition to the “Turkish model of economy”.
In the statement, “We will be strong again in the new cabinet that will be formed after the May 14 elections.
an economics team will take on the task”, “Our economics team, which will reflect the experience and dynamism of the AK Party for more than 20 years, will perform its duties in effective coordination” and “Our economics team will update our macroeconomic framework”. . policy framework in dialogue and consultation with the public, the private sector and civil society, will share with the public the measures to be taken according to the conditions and needs.”
These statements can also be evaluated as a signal of “change in economic management” for business circles at home and abroad.