Outside observers uneasy about Turkish economy: Expert

In his keynote speech on June 3 for the first annual conference of the Center of Excellence in Finance (CEF) founded by Sabancı University in Istanbul, Summers highlighted Turkey’s challenging neighborhood and the question of its commitment to the rule of law.

“I think external observers probably do not feel as good today as they did five years ago,” said the former president of Harvard University.

“Will the depth of the Turkish commitment to the rule of law be broadly understood? Are contracts enforced based on what they say, or based on who the parties are? Are commitments made in a regulatory context that can be relied on?” he said. 

“The right macro framework and a sense of the rule of law are a bedrock for societies,” Summers added, questioning whether there will be “fair treatment” both of those “who share the political and religious conventions of those in power and those who have a different vision in terms of politics and religion.”

He also referred to “Turkey’s remarkably difficult location,” noting challenges to “maintaining a commitment to prudent, responsible and sustainable macroeconomic policies in the region.”
 
Summers underlined the entrepreneurial capacity of the Turkish people and the country’s position in the chain of economic development, pointing to the skills and capacity of global institutions as being important for entrepreneurship in Turkey.

“History teaches that the right macro framework and sense of the rule of law is an essential bedrock for societies. That’s the way Turkey will be judged and tested, as it seeks to define its greatness,” he added.