Former chairman of Istanbul Stock Exchange and former board member of Turkey’s Central Bank, Ibrahim Turhan, said on Monday Turkey will renew economic institutions and that a comprehensive growth oriented economic policy will be carried out after June 7 elections, speaking in an interview with Anadolu Agency.
As a candidate of the governing Justice and Development Party (AK Party) for seat in parliament for Izmir, observers consider Turhan as a possible cabinet member with economic responsibilities after the election.
Turhan said Turkey should consider a new fiscal policy to catch up with the rest of the world. "Many countries have changed the structure of their financial institutions since the crisis. The Bank of England has merged with the Financial Services Authority. The European Central Bank has taken on a wider responsibility for banking regulation and supervision,’’ he said.
"The AK Party programme has made this very clear; the free-market economy will continue, the open economy will continue, the free float of the exchange rate for the Turkish lira will continue, and the Turkish central bank will remain independent.’’
Turhan said there are plenty of investment opportunities in energy, in retail and in many other sectors. ‘’There will be a huge capital inflow to Turkey, thanks to the stability brought to the country by the AK Party government,’’ he added.
He said need for sustainable growth is the prevailing issue for all economies today and the top target is to sustain the growth at as high a rate as possible considering how to derive growth in the medium to long term.
‘’Turkey has for this object certain advantages," Turhan said.
"The most notable one is demographics. Turkey has a large population of 80 million of which half is below 30. This is a great potential driver of growth. Thanks to the education reform progress created by the AK Party government, the average number of school years per young person has increased. The number of students sent abroad to major graduate schools has increased, and is continuing to increase. Investment in education to improve human capital has vastly increased," Turhan said.
The AK Party government has been investing in human capital since 2002, so that Turkey’s labour productivity is increasing, he continued.
"We decided to concentrate on several issues," Turhan said, "and we elaborated nine critical structural reforms, of which were developed 25 main topics, and from which 1,248 action plans were made. These are very concrete, very carefully studied, very well defined."
He said that thanks to comprehensive structural reforms, Turkey will see long-term sustained growth.