‘Supply-side’ economics, which holds that governments may encourage economic development via a range of coordinated policies, from cutting pointless regulation to investing in national infrastructure, is a topic of significant discussion at the time.
According to this line of thinking, improving productivity and encouraging development should benefit both the wealthy and the poor by enlarging the size of the total economic “cake.”
Rarely has it been attempted more spectacularly than in Turkey, which is attempting to modernize its economy while simultaneously elevating its geopolitical stature.
Recep Tayyip Erdogan has basically been in charge of Turkey for 20 years, serving as president since 2014 and as prime minister from 2003 before that. On the surface, the quantity of investment he has encouraged is impressive.
Turkish exports, for instance, have increased by nearly 30% annually over the last two years, and this growth is anticipated to continue. The so-called “Erdoganomics” strategy seems to have produced one of the fastest average yearly growth rates in Gross Domestic Product, at 5.4%.
Few developed economies could expand at such a pace; Britain, for instance, is hoping for growth of 2.5%, if all goes according to plan.
The key has been investment across the board, with a focus on four critical areas: healthcare, affordable housing, transportation and infrastructure, and education and training.
Turkey had 80 universities twenty years ago; now, there are twice as many.
Private businesses are responsible for half of the new universities, and comparable expansion is seen across the rest of the educational system. Both the pre-school system and apprenticeship programs are growing quickly.
The state has constructed around 500,000 affordable dwellings and has plans to construct another million. Five million households with low incomes have sought to purchase one.
New highways exist, some of which are over a thousand kilometers long. In addition, there are brand-new high-speed trains, seaports, and airports.
Turkey presently contains some of the most extensively used tunnels and bridges in the world, including Cannakkale 1915, the longest span bridge in the world.
The 2,023-meter bridge, which was finished in only five years and opened to traffic in March of this year, honors Turkey’s First World War triumph against the Allies in the Dardanelles and offers direct access to Asia Minor, bypassing the traffic bottlenecks of metropolitan Istanbul.
Three further, equally impressive bridges exist in Istanbul. Over the Bosphorus, there are two of them. The third is also quite long and circles the Marmara Sea. The distance between Istanbul and Izmir, the third-largest city in the nation, has been slashed in half thanks to this bridge.
Two tunnels have been been constructed by Erdoganomics under the Bosphorus. The world’s first three-story high tunnel is expected to be the third, which is still in the development phases.
The largest airport in the world is presently being built in Istanbul, Turkey. The whole Principality of Monaco would be covered by the ceiling of the main terminal.
With three runways currently in use, it is already partially operational. However, when it is finished in a few years, it will have six total runways and be able to accommodate 200 million passengers annually, which is currently 80 million more than Atlanta, Georgia, the busiest airport in the world.
Erdoganomics looks good since the new airport was constructed quickly and was operational in less than five years. Contrast this with Berlin’s brand-new airport, which has been under construction for 12 years and is still not finished.
Plans for two nuclear power stations are being developed with Russian assistance.
Despite being a member of NATO, Turkey already serves as an important geopolitical bridge between Europe and Asia and is cordial with Russia.
The economy has tripled in size under Erdogan, and with more power than ever, it hopes to rank among the top 10 economies in the world.
It’s unquestionably a monument to careful planning and significant expenditure.
Even yet, it is not easy sailing. Turkey has enjoyed defying both the markets and conventional wisdom in economics.
Turkey manages to maintain an inflation rate of 80% or more while European countries worry about inflation rates of up to ten percent. The Turkish Lira has never been lower.
It is also important to note that Turkey has welcomed Chinese investment and serves as one of the primary supply lines for Beijing’s mammoth infrastructure project, the “Belt and Road,” which stretches from East Asia to Europe and has paved the way for enormous Chinese influence and power.
As a result, there are many people who are skeptical of the Turkish economy and its “supply-side on stilts” strategy. To use another metaphor, it may be compared to a high-wire act.
Erdogan, who just got back from seeing Russian President Putin in Kazakhstan, won’t be bothered by this, however.
They spoke about how to get Russian wheat and fertilizer, which are essential for millions of people’s survival, across the globe.
They also discussed creating an energy center in Turkey to supply Russian gas.
Whatever the economic experts decide, Ankara and its expanding economic influence will be difficult to ignore in the months and years to come.
Erbil Gunasti and Daphne Barak’s Game Changer: Turkey and Erdogan is available through Simon & Schuster.
Weekly study on Turkish and American foreign policy by Erbil Gunasti