Turkey experienced a day of the highest historical significance yesterday. June 24 has been set for early presidential elections. This will be an accelerated transition period for Turkey and especially for the Turkish economy. It is a pleasing decision for the economy, as it has removed many uncertainties and given rise to visibility, which is the greatest remedy for the economy.
The continuity of the economy has been determined by three major dates. The first was the 2001 crisis and the steps taken in its wake, the second was the finalization of stand-by agreements with the International Monetary Fund (IMF) in 2008 and the third was the election of Recep Tayyip Erdoğan as president in 2014. As such, 2001, 2008 and 2014 determined the current contours of the economy. And now, July 24, 2018 will be the finale of this entire process.
During the process that started with Erdoğan ending IMF programs in 2008, the economy settled on good foundations, highlighted inclusive growth to catch up with the new industrial revolution and adopted the government's 2023 goals. The process that started with the Justice and Developing Party (AK Party) coming to power in 2002 and continued with transformations in 2008 and 2014 will be completely settled after 2018.
Turkey switched to a floating exchange rate regime after the 2001 crisis, which is not simply a change of monetary policy alone. The transition to the floating exchange rate regime was a political transformation that ended the tutelary economic approach that had been in place since 1947. The reforms carried out since 2002 have also complemented this transformation. Moreover, the process that started with the 2008 transformation also paved the way for inclusive growth. The growth realizations, especially in 2010 and 2011, revealed Turkey's true potential, but what is important are the steps taken toward the presidential system and finally the transition to the presidential system.
The radical change of Turkey's economic institutions and understanding in line with the presidential system will be the mother of all economic reforms. In this regard, transition to the presidential system in 2018 means the emergence of a new welfare path for Turkey. The presidential system will bring an economy in which participatory decision-making mechanisms will come forward, the market mechanism will run more efficiently and the big will not oppress the small. It will also introduce an efficient public policy in order to have a fairer income distribution and highlight the concomitant growth and development process.
There is some disinformation that the new system will move Turkey's economic policies away from market realities and push it to having a relatively closed economy. Such disinformation will certainly continue in the coming short election campaign period. Let me note that those who spread it are far from Turkey's realities and do it with political purposes. The country has always foiled such futile attempts and carried out the required reforms with great determination.
For years, we have been struggling to have a completely open economy where market movements are completely free and where the central bank has ultimate independence in its instruments, and we have largely succeeded. As of June 24, 2018, this path will be politically institutionalized as well and pave the way for Turkey to realize reforms required by the new industrial revolution. Certainly, in this sense, Turkey will more resolutely implement a technology-intensive economy, prioritize inclusive growth, further improve the investment environment and deepen openness, global competition conditions and financial markets.
