A quick word of warning

According to the AEA study the per capita, gross domestic product, or GDP, dropped by 9 percent and a period of two years was needed for recuperation. In addition to that four or five years were needed to find solutions to the jobless rate which reached the 12 percent level and the 30 percent drop in real estate prices, according to some studies. Certain news reports say countries’ public debts have increased by 86 percent. The drop in tax revenues raised public losses. The global economic stagnation will be of long duration and deep.

The impact of the economic crisis in Turkey is strengthening each day and is affecting the real sector deeply. Due to the drop in demand from both local and foreign markets and the lack of the needed measures Turkey’s economy is rapidly becoming a stagnating one.

The government seems to be unable to produce a policy of crisis management for the needs of the local economy. Seemingly, the government and the economic bureaucracy have not yet reached a consensus. With regard to the global crisis it is lacking the capacity to meet the Turkish economy’s needs the 2009 budget has become unrealistic and unreliable. It is clear that the need to shape a new budget will appear soon. Additionally, 3.6 billion Turkish lira were cut from the budget at the last moment, depriving the agricultural and all other sectors of the long awaited government supports and also investments are stopped.

It is very difficult to understand the reasons for punishing all these productive sectors. Also, although it was not included in the program a large sum of money was transferred to support municipalities. Concisely speaking, budget revenue figures were increased by 11 percent, the rate of increase for municipalities was 21 percent. Most probably this is called election economy. In order to fund the real sector through the banking sector an economic, legal and organizational atmosphere will be needed. The problems of the small- and medium- size enterprises should be solved realistically. Measures will have to be taken to minimalize the friction between the labor supply and demand to bring down the jobless rate which is one of Turkey’s utmost problems.

In this context to educate the qualified work force needed by the business world all vocational schools should be reconsidered and should be expanded throughout the country. Here I have written excerpts from the National Action Party, or MHP’s press bulletin and the press release of the party’s Committee for Watching and Evaluating the Global Financial Crisis which was published on Jan. 8, 2009. Here is the last sentence published in it: "The most important issue on the country’s agenda is the economic crisis. It is unacceptable to cover up this vital issue with artificial problems." Just a quick word of warning. It is up to you to decide.