Turkey's dead-end: Economic prosperity without the rule of law is impossible
If Mehmet Simsek is serious about investment and prosperity, he should first emphasize the rule of law by Western standards. The concepts of investment, production, and prosperity cannot stand on their feet without making significant leaps in this regard.
Recently, if I am not wrong, Mehmet Simsek gave a speech in Batman at the inauguration of an R&D center. In his speech, he used some notable words.
Considering three points for "sustainable high growth," Simsek prioritized the investment, employment, production, and export cycle. "We are extremely determined on this issue," Simsek said, adding, "We will shape the tax, credit, and incentive policy accordingly."
Treasury and Finance Minister Mehmet Simsek prioritizes employment, production, and exports.
That's a correct statement.
However, there is an absurdity in this explanation from the very beginning. And the theoretical incoherence becomes even more noticeable in the later parts of the same speech:
"We will direct incentives and credit opportunities to investments. Investment and production require employment and exports. This cycle will make Turkey prosperous. Therefore, we need to rebalance domestic demand in the coming period. An economy that grows only with credit and domestic demand cannot achieve sustainable high growth. The cycle of investment, employment, production, and exports must be prioritized for sustainable high growth. We are extremely determined on this issue. We will shape the tax, credit, and incentive policy accordingly."
I quote Mehmet Simsek's words in italics.
The following sentence stands out: "Investment, production, employment, and exports will make Turkey prosperous."
The insipidity and theoretical error I mentioned above are notable.
Finance Minister Mehmet Simsek gives me the impression that he is UK's financial advisor. The UK adores the principle of the rule of law. The constitutionalism movement started here in 1215.
Mentioning the rule of law principle in the UK could be meaningless. But in Turkey, the situation is different. If Mehmet Şimşek is serious about investment and prosperity, he should prioritize the rule of law on Western standards. The concepts of investment, production, and prosperity cannot stand on their feet without making significant leaps in this regard.
The country needs foreign direct investment inflows. For referencing "investment-welfare" in Turkey, the first thing you should emphasize, without any doubt, is the rule of law based on Western standards.
If you avoid mentioning the massive vacuum in the field of the rule of law in Turkey, then your economic speeches and articles are meaningless.
In today's Turkey, even discussing the problems related to the rule of law is a crime. President Erdogan dares to say that there is no lack of rule of law in Turkey.
Well, under these circumstances, as a Minister of Erdogan, it is not easy for you to talk about the significant deficit in the rule of law.
However, it is well known that investment, foreign investment, production, and welfare are impossible without the rule of law.
We can recommend that Mehmet Simsek at least Daron Acemoglu's books "The Collapse of nations-Why Nations Fail?" and "Narrow corridor-Narrow Corridor." If he has already read them, he should reread them.
Recently Mehmet Simsek's grave mistake has been reproduced even on a larger scale by Foreign Minister Hakan Fidan. He stated that the EU can only be a strong Union with Turkey. The FM avoided mentioning our enormous deficit in the rule of law.
In an article, Karar's columnist Figen Çalıkuşu wrote about this issue in a very detailed, accurate, and qualified manner.
Although I am inclined to better understand Hakan Fidan's difficulty in talking about the rule of law, I wish he would not speak about Turkey's accession to the EU in a funny way.