If Turkey votes in the constitutional change in the April 16 referendum, several will questions arise: What kind of a reform program will we have? How quickly and deeply will the market-friendly reforms be carried out? How will the new system be reflected in economic policies? I think everybody, especially foreign investors, is wondering about the answers to these questions. In fact, we are now approaching the end of many debates that we have made about Turkey's economic policies. The April 16 referendum will be a milestone in this sense. When the "structural reform" in the economy is mentioned in Turkey, no one will see much of a difference. This is because the step that Turkey will take on April 16 means an economic and political system change in accordance with the Constitution.

All constitutional system changes occur at the intersection of needs and expectations, depending on the concrete needs and expectations of the society. In this sense, the need for a constitutional change is essentially the highest level of national consensus. I think that this consensus in Turkey will be ensured in accordance with the constitutional amendment. Likewise, there is a silent consensus, especially in the economy.

This consensus is based on a new economic orientation that includes industrialists, public employees, workers, tradesmen and even foreign investors, as well as the anticipation for comprehensive reform packages that will meet daily requirements and provide the basis for this orientation. Despite disinformation in some European countries, many foreign investors coming to Turkey tell us that Turkey will be much safer and more comfortable for them after April 16. If Turkey votes for the constitutional referendum, it will be a much safer country for foreign investors where bureaucratic transactions will decrease and investor-friendly reforms will be carried out quickly.

President Recep Tayyip Erdoğan underlines on almost all occasions that interest rates are expected to fall and that an economy based on interest rates and unearned income is a not acceptable. This goal for Erdoğan is the main heading and a summary revealing the content of this consensus to investors.

The debate over interest rates is not simply about monetary policy. This ongoing debate is the basic formulation and starting point for a completely inclusive new economic growth and development model. For this, we have to start with the following basic concept: If average interest rates are above the average industry profitability in an economy, that economy is actually in a stalemate. In this case, the economic growth model is not a sustainable and widespread model that improves income distribution. For example, high growth rates, the rise of the current deficit and the very high correlation between growth and foreign trade deficit in Turkey are the result of such a growth approach. Other indispensable consequences of this understanding are that unemployment and inflation stand at a rate that nourishes each other and mirrors each other in the same period, and that the economy falls into a stagflation crisis that points to the spiraling unemployment and inflation.

This result is inevitable if you apply a bad economic policy that regards interest rates as a remedy for current account deficit and inflation. This is because your currency becomes overvalued against basic reserve currencies, and it highlights the import of intermediate goods and kills small industrial enterprises that produce for the main industry. High interest rates prevent small industrialists from accessing the financing, and this economy, which creates a large proportion of employment, collapses. Large industrial enterprises and their subsidiaries can access the financing as they are supported by a bank. However, since the local currency is unnecessarily valuable, imports become cheaper, and large industrial enterprises in monopolistic positions stop purchasing goods from the subsidiary industry, and moreover, they stop producing the parts that they can produce and import them and reduce the number of workers to further increase their profitability. Thus, the monetary policy based on high interest rates attracts hot money with a morphine effect and ensures distorted financial growth. However, it creates injustice that aggregates the problems of the current account deficit, inflation and unemployment, and further distorts income distribution in the medium and long term. We argue that interest rates and exchange rates must be completely determined on the basis of market conditions and facts.

I think that Turkey must have a radical economic reform program which will be rapidly put into force after the constitutional amendment is approved on April 16.

This reform program will include a new growth model which is not based on interests and unearned income, but on production and competition. As a result, this fair and inclusive growth model will highlight industry, exports and a sectorial incentive system that prioritizes the technology introduced by Industry 4.0. Market-friendly reforms that deepen financial markets and enable them to properly function will also be introduced in this framework. On the other hand, a monetary policy that directly supports employment and a complementary fiscal policy that minimizes injustice in the tax system will be our main starting point. This transformation also includes a supportive bureaucracy, in place of a preventive one, as well as top-level market entries and exits that will rapidly boost direct foreign investments. Public finance and public administration reforms must also be carried out in this perspective. A clearer and more transparent public administration and public finance are the main objectives.

So, we call on all foreign investors to invest in Turkey after April 16.