Reconstruction and economy institutions - ERDAL TANAS KARAGÖL

Reconstruction and economy institutions

As Turkey enters a process of reconstruction with the presidential government system, one of the most concrete pillars of this reconstruction will be the economy. How the reconstruction will take place is the most important question. Although there are different ideas about how the reconstruction will shape, there is a common view of approach:

The reconstruction entails both coordination between the ministries and compulsory harmony between economic institutions and politics.

In fact, we are literally talking about an institutional transformation. In other words, saving Turkey from the current middle income group by increasing per capita income and writing a new success story in the economy depends on this institutional transformation.

Moreover, thanks to the institutional reconstruction that will take place, there will be significant opportunities for the elimination of the duality in the management of institutions, an unresolved problem of which Turkey has complained of for years, the reduction of bureaucracy and especially the improvement of the investment environment.

NEED FOR REFORMS IN INSTITUTIONAL RECONSTRUCTION

The start of a new institutional reconstruction process in the economy in accordance with the presidential government system will ensure that the new system functions well and that there is a positive perception in the economy as a result of institutional improvement and efficiency.

It is necessary to build an institutional structure that allows accelerating practices through options such as the reduction of the number of ministries or vertical reconstruction.

Turkey can attain its goals in this way alone, namely through an institutional structure that can actualize a quick and effective decision mechanism.

It will be clearly seen that we do not have the luxury to lose time when we consider that the developing countries make serious effort to have a say in the global economy and that what will be done in the near future will directly determine the socio-economic levels of countries. Therefore, the completion of the institutional reconstruction by 2019 is critically important.

If Turkey will write a new success story in the economy as expected, and it needs to do so, it needs reconstruction, especially an institutional one, and raft of reforms more than ever.

WHAT WILL BE THE SITUATION OF ECONOMIC INSTITUTIONS IN INSTITUTIONAL RECONSTRUCTION?

Whether we name it a new institutional structure or an economic reform package, the changes brought by the presidential government system will lead to effective institutions, especially in the economy.

Effective institutions in the economy will create a safe investment environment, ensure the efficient functioning of the public sector, which has experienced the greatest resource waste for many years, and will contribute to reducing uncertainty in the economy. So, investments will be more attractive and this will make it easier to reach higher economic growth figures.

The improvement in macroeconomic indicators required for Turkey to surpass economic growth figures varying between 4 and 5 percent in the past five years, reach greater growth figures that show its potential and avoid falling into the middle-income trap, and is possible only by renewing the institutional structure.

It is enough to look at the comparison of per capita income differences in order to understand this need. Is it not clear that there is a strong institutional structure behind the fact that some rich countries are richer and more stable than other developing countries?

Serious effort is being made in Turkey to increase per capita income. However, if we are still unable to achieve the desired level, we need to look at the factors behind it. The need for institutional reconstruction is the most important factor.

The presidential government system, a serious reform in Turkey, has been approved and the change has started. Breaking the resistance that institutions show in the face of the change will accelerate the change and transformation.

Then we will see that many things will change in the economy in particular and that a positive process will begin.

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