Burak Kıllıoğlu: "Economic policy went bankrupt"

Burak Kıllıoğlu: "Economic policy went bankrupt"
Date: 24.9.2019 17:00

Milli Gazete columnist Burak Kıllıoğlu writes on Turkey's economy. Here is the full article.

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Turkey Statistics Institute's 'the 2018 Income and Living Conditions' survey became a litmus paper, showing a reflection of the care of individuals implemented economic policies and their effects on income distribution of income.
As it is known, the economic policies in the last 17 years developed in a way as the continuation of IMF prescriptions taken over after the 2001 crisis. At the center of these policies was renting as usual, while the large masses of people were tangential as usual. The capital, which was abundant throughout the world in the period 2002-2007, was flowed into the country through high interest rates. Of course, the abundance of money on a global scale was relied on, and in a way, we achieved a hand-made growth with the pledge of debt to pay with debt.
Growth with this coin continued without fail as long as the ease of global borrowing opportunities continued. Of course, the increase in debts and interest, anyway we pay the debt, irresponsibility was ignored. Paying the debts and interest received from the abundant scoop would be a day to come, and the extent to which the growth financed by these external sources was healthy and sustainable was not taken into consideration. Saving the day was enough.
The lack of external resources provided in non-productive areas such as construction and infrastructure and channeled to production caused problems in the medium and long term. The slowdown and stagnation in the productive sectors and the fact that the wheels of the economy are based only on consumption, bring unemployment to the level of 13 percent, and for a long time cause the national income to count or even decrease. The size of Turkey's economy was realized as 785 billion dollars with 2018 figures, per capita income is happening 9 thousand 632 dollars. For 2019, these figures are expected to decline further.
Per capita income, which was 8 thousand 980 dollars in 2009, has not been prolonged nor shortened in the last 10 years. In real terms, there is a decline.
The reflection of these figures on people and their lives is clearly seen in TurkStat's research. The highest income group, 20 percent, 47.6 percent share of total income; only 6.1 percent of the total income remains for the poorest 20 percent. The richest 20 percent of the income, the poorest 20 percent of the income multiplies 7.8. As we continue to deteriorate, how do we talk about economic policies being right and fair?
12.7 percent of the population is in constant poverty. The scope of permanent poverty is to be poor in the last year and at the same time to be poor in at least 2 of the previous 3 years. The rate of those who suffer from serious material deprivation is 26.5 percent. Serious material deprivation is defined as the proportion of the population facing financial difficulties and unexpected expenses, a one-week holiday away from home, difficulty in payment, meals containing meat, chicken, fish every two days, heating needs of the house, washing machine, color television, telephone, car state of the status of those who cannot meet at least 4 of the 9 items identified as ownership.
According to the survey, 70.4 percent of the population says that they have installment payments or debts other than housing purchase and housing costs. In Turkish; 70 percent of the people are in debt, which will add a dreaded rate of housing debts.
58.3 percent of the population said that they could not afford a week's holiday away from home. We lie and get up with the tourism industry, people boast of whispering but we ignore that more than half of the population lacks even a 1-week holiday.
As a result, half of the revenue produced in Turkey when you go to a certain coterie, nor what goes on shorter broad masses of the population. More precisely, their real incomes are melting down and becoming increasingly indebted. In an economic atmosphere where a significant portion of the population is indebted to banks, the income is unfairly distributed, even formal unemployment reaches 4.5 million and a quarter of young people are unemployed, when will policies be questioned?
The socioeconomic and social landscape that stands in the middle, but it probably indicates a bankruptcy.


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