BY ERBIL GUNASTI
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When I wrote Turkish economy boosting geopolitical-status, I talked about supply-side economic policies. The editors in the Daily Mail presented me with the edited version of the copy few hours before publishing it.
In it, they were suggesting that I should not say that “supply-side economic policies will not work in the UK”. I agreed so they took it out. Three hours later on Friday, 14 October fired Kwasi Kwarteng as her chancellor amid market turmoil. He was insisting on the “supply side policies” for the UK.
Turkish Economy Boosting Geopolitical-Status
How Turkey is bidding to transform its economy and boost its geopolitical status with ‘Erdoganomics.’ It is doing it despite 80% inflation. There is much talk of ‘supply-side’ economics at the moment. The idea that governments can promote economic growth through a series of coordinated measures. They range from reducing needless regulation to investing in national infrastructure.
Raising productivity and promoting growth – increasing the size of the overall economic ‘cake’ – should help everyone, poor and rich alike. So the argument goes. Rarely has it been tried more dramatically than in Turkey. The country seeks to transform its economy and boost its geopolitical status in the process.
Turkey has been effectively ruled by Recep Tayyip Erdogan for 20 years. He is president since 2014. Before, he was prime minister from 2003. On the face of it, the level of investment he has brought about is striking.
The last two years have seen Turkish exports increase by about 30 per cent a year, for example. They are expected to grow still further. The approach, nicknamed ‘Erdoganomics’, appears to have delivered an enviable average. Annual growth rate in Gross Domestic Product of 5.4 per cent is one of the fastest in the world.
Few established economies could match such a rate. Britain is aiming at growth of 2.5 per cent, for example. If it all goes well, of course. The key has been investment right across the board. However, in Turkey, it also concentrated on four main areas. they are education and training, transportation and infrastructure, affordable homes and healthcare.