Erdal Saglam: Economy officials disagree with the government

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Erdal Saglam: Economy officials disagree with the government
Oluşturulma Tarihi: Mart 10, 2008 12:13

''First of all we need to keep macro-economic stability. And it has two benchmarks: Low inflation and fiscal discipline. You shouldn't make any concessions on these. Because the rest comes as a result of this.'' I don't know who told this. But isn’t this correct?

Haberin Devamı

What this means is that risks are increasing because of the global crisis and Turkey should keep macro economic stability to minimize the effects of this. Macro economic stability can be maintained without giving up fiscal discipline rather than giving up on struggle with inflation. So, if you loosen the struggle with inflation and spoil fiscal discipline in order to promote growth, then macro economic stability disappears and you can't obtain growth and you lose the other positive returns of the stability.

 

The quoted sentence belongs to Ibrahim Canakci, the undersecretary of Turkish Treasury. He told this in a meeting a few days ago. This shows one of the most important economy official disagrees with everything the AKP government do.

Haberin Devamı

 

We also know what the Durmus Yilmaz, the governor of Turkish central bank, said and how often he stated that it was essential not to give any concessions to struggle with inflation. Therefore it means that another one of the most important bureaucrats agrees with the other one.

 

Another important position in the economy administration belongs to underSecretary of State Planning Organization, Ahmet Atık, who is known as calm. But recently we know that he is worried about some decisions taken by AKP government. For instance, we know that he opposes to the bill to speed up transportation and energy investments that will cause financial instability and fund creation out of budget. We also know that these bureaucrats warned Prime Ministry and parlimantery commissions that those laws could hurt fiscal discipline.

But it is clear that the government does not listen to these warnings, although all these bureaucrats appointed during the AKP governments.

Haberin Devamı

 

ISLAMIST RHETORIC

 

Because of that, Prime Minister Tayyip Erdogan doesn't let bureaucrats attend economy coordination meetings anymore, and meets ministers and economy-origin MPs. We keep saying that the government completely focused on the growth, gave up struggling with inflation and, it takes steps that harms fiscal discipline in opposition to what bureaucrats and market players say.

 

Anyway, markets, business and even his bureaucrats gave up their hopes on State Minister Mehmet Simsek. But the decisions that the government made implies that Deputy Prime Minister Nazim Ekren, who is expected to be the unique person to tell the truths, doesn't speak either, or he can't make himself listened. AKP government is rapidly taking the country and the economy to the edge of a dangerous cliff.

Haberin Devamı

 

The prime minister keeps making vcomments that will increase “Islamic state” concerns rather than acting in line with economic needs. The prime minister of this country urged women on Women’s Day to have three kids.

You might ask me how these are related to economy policies.

 

It is directly related. The crisis is coming and economic science tells what to do. Bureaucrats are warning, but the government doesn’t listen to them. Instead, the expressions of Islamic Law are intensified, and regime worries and discrimination are intensified.

 

Don't forget; the coming economic and political crisis will completely be the production of AKP government.

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