Turkey cannot grow further upon existing model: MIT economist
ISTANBULThe Turkish economy is grown upon state contributions, but this is not sustainable, MIT economist Daron Acemoğlu has said in an interview with Bloomberg HT.
Turkey made a series of structural reforms between 2001 and 2007, but this trend has seriously reversed since then and there has been an increase in corruption, Acemoğlu said.
“The economic productivity levels had started to increase significantly following a series of structural reforms and budget regulations in 2001. New companies started to show up on the scene across many sectors. This trend flourished the Turkish economy in the following five to six years. We have, however, seen that this trend has started to reverse since 2007. There is a rise in corruption, but a dramatic decrease in the implementation of structural reforms and judicial reforms. We have seen an economy which grows upon state contributions rather than a productivity rise in the industries. Such a trend is not sustainable,” he said.
Acemoğlu noted there was no reason for Turkey to resume the reform process as it did in the past.