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Can Erdogan's New Powers Help Fix Turkey's Economy?

September 26, 2018 Topic: Security Region: Middle East Blog Brand: Middle East Watch Tags: TurkeyEconomyErdoganPolicyNational Security

Can Erdogan's New Powers Help Fix Turkey's Economy?

Smart policies and quick decisions are needed in Ankara.

The adherence of the Turkish government to these freedoms and other democratic institutions would also be reassuring to international and domestic investors about the transparency of the economic and financial systems. They also play a crucial role in preventing corruption and crony capitalism, which have frequently undermined economic reforms in emerging market countries. For instance, the vital role of democracy and the rule of law for the long-term economic progress of Turkey were articulated recently by the prominent economist Daron Acemoglu.

Finally, without proper consultation and feedback, the unprecedented powers of the executive branch can be used to implement harmful and counterproductive policies that can easily worsen the crisis. Turkey’s current critical situation is no time for experiments with untested policies based on the personal beliefs and understandings of any one political leader or policymaker. Instead, independent-minded and well-qualified experts in economic management and finance should be summoned for regular consultation regardless of their affiliation with any political party.

Nader Habibi is the Henry J. Leir Professor of Practice in political economy of the Middle East at Brandeis University’s Crown Center for Middle East Studies. Before joining Brandeis University in June 2007, he served as managing director of economic forecasting and risk analysis for the Middle East and North Africa in Global Insight Ltd.

Image: Turkish President Tayyip Erdogan sits during an interview with Reuters in Manhattan, New York, U.S., September 25, 2018. Picture taken September 25, 2018. REUTERS/Andrew Kelly