Foreign policy bill has started to be paid
The negative effects of the government’s foreign policy have started to become more apparent on the economy. This effect is both growing and taking on a multifaceted situation.
First of all, it is already known that the developments in the global economy are posing a threat to developing countries like Turkey. As it became clear that the U.S. Federal Reserve would cut down on the liquidity by bond purchasing to the market, even the timing of this creates serious fluctuations.
It is being accepted that among all developing countries, ones like Turkey with low savings rates and high current account deficits will be most affected by the process. Apart from this natural effect, the fact that the prime minister’s approval is being sought for decisions made by the economic administration means a belief that “the necessary decisions will not be taken in this critical process” has particularly been formed among foreigners. The government’s police-like surveillance practice on banking and capital markets, which targets market players and operations, is another element raising worries. In short, along with the developments in the global economy, the government’s wrong decisions have played a serious role in the deterioration of the economy. While the process is so compelling and the economic decisions so wrong, the destruction in the economy is being widened by the wrong decisions made in domestic and foreign policies.
Turkey’s foreign policy, which has led it to be on the opposite sides with the West - first in Syria and then in Egypt - and also with the regional states, has led to Turkey standing alone in the international arena. Separately, this loneliness and contradiction with the West, which holds the capital, is further deterring the foreign investment that is needed.
It does not slip one’s eye that the effects on the economy of developments in foreign policy have become more concrete lately.
Besides halting exports to Egypt after interrupting trade with Syria, jeopardizing the export to the region through Egypt leads to a rise in the problems encountered on exports. It is for sure that the loss of these markets affect the total export and production negatively, which is already in dire straits. It is also estimated that these markets will not be regained in at least two to three years time.
The UAE has halted investments
Lastly, it has also become noticeable that Gulf capital, which had previously supported this government, has started to approach Turkey in an unfavorable manner because of the foreign policy it is implementing. The TAQA Company, of which the Abu Dhabi state controls 75 percent, has decided to postpone its investment in the Afşin-Elbistan power station. With its 12 billion dollars budget, this investment was among the biggest investments of Turkey. It is clear that this attitude is because of Turkey’s stance towards the latest developments in Egypt. Turkish Energy Minister Taner Yıldız confirmed this, saying “we would not accept them even if they came,” but this giant investment holds a critical importance for the revival of the economy and the security of Turkey’s energy supply.
Let us not forget that the foreign policy bill will be stuck to the people in every field.