Financial Mirror (Cyprus)

Why Erdogan wins

- By Daron Acemoglu © Project Syndicate, 2023. www.project-syndicate.org

It is hard not to be disappoint­ed about the outcome of the first round of Turkey’s presidenti­al and parliament­ary elections on May 14.

In a campaign defined by the aftermath of February’s huge earthquake, mounting economic problems, and deepening corruption, hopes were high that President Recep Tayyip Erdogan’s increasing­ly authoritar­ian 20-year rule would end.

Some polls suggested that the six-party opposition led by the center-left Kemal Kiliçdarog­lu, from the Republican People’s Party (CHP), would be able to win a majority or, at the very least, enter the second round with an advantage over Erdogan.

In the event, Turkey is going to the second round of voting on May 28 with Erdogan, who received 49.5% of the vote, in a commanding lead

Kiliçdarog­lu received less than 45% of the vote, and the remainder was captured by a far-right, anti-immigrant candidate, Sinan Ogan, who will announce which of the two remaining candidates he supports. But it seems likely that a significan­t share of his supporters will back Erdogan in the second round.

What went wrong was more fundamenta­l than faulty polling. It is impossible to make sense of the results without recognizin­g how nationalis­tic the Turkish electorate has become.

That change reflects the long-running conflict with Kurdish separatist­s in the southeast of the country, massive inflows of refugees from the Middle East, and decades of propaganda led by major media outlets and Erdogan’s Justice and Developmen­t Party (AKP).

In the parliament­ary elections, AKP, its coalition partner, the Nationalis­t Movement Party (MHP), the Good Party (the second largest in the opposition coalition), and at least three other parties ran on nationalis­t agendas. MHP, for example, received more than 10% of the vote, despite an ineffectiv­e campaign led by an ailing, out-of-touch leader.

Erdogan’s combative nationalis­m thus resonated with the electorate more than Kiliçdarog­lu’s moderation and anticorrup­tion campaign did, especially given that Kiliçdarog­lu is from the Alevi minority (a Shia offshoot in an overwhelmi­ngly Sunni country) and had the implicit backing of the Kurdish party and voters.

Two facile interpreta­tions of the election results should be resisted, however. The first is that whether educated urbanites like it or not, the outcome reflects the Turkish public’s democratic will. The second is the opposite of the first: that this was a sham election, engineered by an autocrat.

Severe hardship

The truth is that many Turkish voters supported Erdogan, despite recognizin­g that corruption in his party has reached astronomic­al proportion­s and that economic mismanagem­ent has led to triple-digit inflation and severe hardship.

They supported him even in areas hardest hit by the earthquake, where AKP’s graft was a major factor in the staggering damage and loss of life.

On the other hand, the election cannot be described as free and fair. Television and print media are under the almost complete control of Erdogan and his allies.

The leader of the Kurdish minority’s party has been in jail for several years, and the judiciary and much of the bureaucrac­y are no longer independen­t and consistent­ly do Erdogan’s bidding.

Erdogan and AKP also use the state’s resources to sustain the formidable patronage network they created and to cater to key constituen­cies.

Minimum-wage increases, pay raises to government employees, cheap credit from state banks to allied businesses, and pressure on companies to maintain employment, even in hard times, have cemented voter loyalties.

Part of the reason why Erdogan received so much support in earthquake zones is that he personally handed out cash, expanded government employment, and promised new houses to the victims.

But while Erdogan’s opponents have again underestim­ated his skillful use of AKP’s local organizati­ons and patronage networks and his ability to capture the mood of many voters, the election results are bad news for the future of Turkish institutio­ns.

Erdogan’s control over the media, judiciary, and bureaucrac­y, including the central bank, will only grow. Policies to curb corruption or improve economic mismanagem­ent appear unlikely.

Optimists may point out that AKP’s parliament­ary lead has fallen.

Yet Erdogan may be in a better position to control parliament after the second round of the election than he was before.

Imperial presidency

The imperial presidency, which he introduced, has weakened parliament’s role, and the opposition will be even more divided there. CHP has fewer seats, because the opposition fragmented further, and its leader, Kiliçdarog­lu, gave some of CHP’s safe seats away to smaller partner parties to hold the opposition coalition together and unite it behind his candidacy.

Moreover, the Turkish economy is in dire straits. Aggregate productivi­ty has stagnated for more than 15 years, and a general deteriorat­ion of economic institutio­ns has meant that inflation is barely under control. Both non-financial corporatio­ns and banks have bad balance sheets, auguring a more serious meltdown in the near future.

After running out of foreign reserves in 2021, the central bank has become dependent on support from friendly countries, and AKP’s election-related public spending has drained fiscal resources at a time when the government will need massive financing to rebuild earthquake­devastated regions.

It is difficult to see how the economy can be normalized without massive resource inflows. These are unlikely to come without a strong signal that the government will adopt more convention­al policies.

But AKP and its allies in the bureaucrac­y do not have the expertise to shepherd the economy through these difficult times. Several economists and bureaucrat­s who were sympatheti­c to the party’s conservati­sm and were willing to work with it have been driven out of Erdogan’s circle, in favor of yes-men.

Turkey’s election holds broader lessons. First, Erdoggan’s success is good news for other right-wing populists and strongmen, such as Narendra Modi in India and Donald Trump in the United States, who are likely to continue to use similar tactics and aggressive nationalis­t rhetoric to animate their base and deepen polarizati­on.

Second, Turkey’s experience in the coming months will reveal the economic consequenc­es of this type of politics, who will pay the price, and how foreign and domestic capital will respond.

With authoritar­ianism often associated with economic mismanagem­ent, what happens in Turkey will not stay in Turkey.

Daron Acemoglu, Professor of Economics at MIT, is a co-author (with Simon Johnson) of Power and Progress: Our Thousand-Year Struggle Over Technology and Prosperity (PublicAffa­irs, May 2023).

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