Sometimes You Have To Listen, Sometimes You Have To Lead..
Right after the elections were concluded, I said that if the President announces the new economic programme, it means he stands behind it, but if someone else does it, there is a problem.
Minister Şimşek revealed some details about the new programme last week, which made me think of two alternatives. The first one is this: since the programme is not fully ready yet, Minister Şimşek decided to give some spoilers in order to soothe the impatience of the investors as well as to pique their interest and ease their concerns.
The second alternative is that perhaps there is no a new model or programme, just some standards wishes which no one can object to.
Well, who can oppose efforts such as reducing inflation to single digits, establishing fiscal discipline and structural reforms? However, since it is up to the president to decide whether any of these things will actually be carried out or not, investors will not make a move before seeing words are put into actions.
Mostly unique to the Middle Eastern countries, leaders make a lot of promises but not much progress. So Turkey is often the appealing region for the investors, who would want their dollars appreciate further and further before investing in TRY-denominated assets. Ready-built facilities are the only thing we can offer to investors who are more interested in acquiring existing ones rather than building them and starting production in them in a high inflation economy.
If Turkey does not do something to improve steps justice, social policies and legislation soon, it will not be easy to get out of the low value-added economy that provides cheap labour. I hope we will take some serious steps to tackle the problems instead of hoping that the economy will heal itself over time.
As Mitch McConnell, the Senate leader of the Republican Party since 2007, says in his memoir “The Long Game”: Sometimes you need to listen to the voters and sometimes you need to lead them. The right politics is getting the timing right.