What’s behind Erdoğan’s apparent support for the liberal international order?
Source:Brookings Papers Date:10Oct2018
The article doesn’t serve justice to its title, but answers many relevant questions such as the reasons for Turkey’s economic decline and its attempts to shift trade and investment to Russia-China.
Today, the word “regression” is often used to describe the decaying economic and democratic norms in Turkey. As the world-renowned economist Daron Acemoğlu has astutely pointed out, institutional erosion and regulatory degeneration lie at the root of Turkey’s current problems. Rising cronyism and a lack of accountability are problems with deep roots. Among investors’ main concerns are the independence of the Central Bank, the innumerable amendments in government procurement law, President Erdoğan’s appointment of himself as the head of the country’s sovereign wealth fund, and his appointment of his son-in-law (also the minister of treasury and finance) as his deputy at the fund’s board. These developments have in turn factored into Turkey’s rising risk premiums and diminishing credit ratings.