TUSIAD: “Postponed reforms makes us spin”
Turkish Industry and Business Association (TUSIAD) held its High Advisory Board meeting on May 24 with the largest turnout in recent years. TUSIAD President, Erol Bilecik, stressed that trust in the economy should be re-established at the meeting, where business people seemed concerned about the still rising dollar rate.
The business world discussed a 300 base point increase in interest rates, while outlining the necessary steps to be taken in the economy. Bilecik said that the interest rate increase taken last week has provided some kind of relief putting the breaks on the increasing dollar rate over the last two weeks. “We wish to see economic management keeping up with the policy making process by continuing the policies and discourses that prioritize stability,” he said.
Bilecik, who links the causes of the problems in the economy to the “continuous postponement of reforms,” made the following evaluations: “When we cannot achieve high growth through reforms and productivity increases and grow
with abundant and cheap money we anyway face the same problems. At high growth, the wheels of our economy are turning fast, but at the same time our economy is spinning because of the high current deficit and high inflation. That is why cannot move forward.”
Poss b l ty of a harsh correct on
Bilecik underlined that Turkish economic policies are followed with great interest both domestically and abroad. “Both the local
and foreign market players change their positions immediately when there is even a slightest signal that the balances in the economy can change,” he said. “Thus, interest rates and exchange rates are changing with every political development. I want to remind you of a fact that applies to all the economies of the world: Reactionary measures and packages that are not rules-based, predictable policies make the sustainability of a country’s economy questionable. Thus, the rapid rise in the currency indicates questions over the Turkish economy’s viability are valid. We need to restore confidence in our economy as soon as possible. Otherwise, our economy will face a harsh correction. We have to accept that fact and we have to introduce policies in accordance with this fact, because there are no miracles in the economy, only facts. And you can not flex the reality out of shape.” Bilecik underlined the importance of the economic administration to take precautions before push comes to shove.
Lack of nformat on on the new system
Bilecik also noted that the business community lacks sufficient information about the Presidential government system. In these elections, Bilecik stated that they are glad that almost every opinion through the alliances will be able to enter the parliament. “Let us give up fear of change, dialogue and rejection of people who do not think like us. People who can discuss everything can overcome any problem,” he said.