The Handicapped Economy

Economic observers agree that the enhancement of economic growth in Turkey during the past few years was the result of the flow of foreign capitals taking the shape of debts.

Estimated at USD 32mln, the debts of the Turkish banks are mostly from Europe, but with the escalation of the European financial crisis, these banks are no longer able to ensure other debt sources and because of this huge financial obligation, Turkey has become vulnerable to economic shocks like its European creditors.

The economic crisis in Turkey has been created specifically under the Erdogan-Oglu ruling Justice and Development Party’s government. The policy of the ruling JDP in leading the Turkish economy towards obtaining more foreign loans to enhance economic growth has been the main problem in the structure of the current Turkish economy.

The debt policy of Erdogan government has plunged Turkey into crisis, as the country is expected to announce disability to meet its due debts for a long period of time.

Therefore, we witness a growing opposition and criticism by many Turkish parties and businessmen against the Turkish government’s stances towards the ongoing events in some Arab countries, especially its neighbor, Syria which was a key economic partner to Turkey. Due to its hostile and irresponsible policy against Syria, Erdogan’s government has lost Syria as a partner and led to the freezing of an important agreement on establishing a free zone between Lebanon, Syria, Jordan and Turkey. Besides, Turkey has also lost the Syrian road on which Turkish goods used to be conveyed to Egypt and countries of the Gulf.

However, the repercussions of the Turkish hostile behavior will sharply affect the Turkish economy before the economies of other countries. So what a zero problem policy with neighbors Erdogan is talking about?  Events on the ground prove the opposite.

The missing of some markets in the Middle East and the possible boycott between Turkey and its neighboring countries, other than Syria, has placed more obstacles before Turkish goods.

This economic problem emerged, because Erdogan’s government had escalated tension in the region by its collusive stances against Syria and its involvement in the country’s events.

Thus, the current Turkish government has been the target of growing internal pressure, because its failing policy has placed Turkey in a wrong position as regards the Syrian issue.

Turkey should have been dealing positively with the events in Syria starting from the old friendship and strong cooperation between the two countries, but unfortunately, it adopted and implemented hostile political, economic and social policies which will negatively affect bilateral ties for many years to come, because the Syrian people never forget all who support them during the crisis, but at the same time never forget those who fight them and target their living.

Ahmad Orabi Baaj

Translated by H. Mustafa