AK Party pledges to focus on human capital-based growth
by Daily Sabah
ISTANBULApr 15, 2015 - 12:00 am GMT+3
by Daily Sabah
Apr 15, 2015 12:00 am
Giving examples of achievements in the last 12 years as the ruling party of Turkey, the AK Party says human-induced growth will be the focus as well as technological development and innovation
As Turkey gears up for parliamentary elections on June 7, the ruling Justice and Development Party (AK Party) released its election manifesto on Wednesday. The manifesto, which dedicates a wide space to the party's economic objectives, set its growth strategy on five main axes, which will be major political fields in the upcoming period in terms of actualizing this strategy. The five main axes were announced as strengthening macroeconomic stability, developing human capital and activating the labor market, improving the capacity of developing technology and innovation, strengthening physical infrastructure and improving institutional quality.
With the intention of protecting the economic stability that has been achieved, the AK Party is set to improve the quality of public revenues and expenditures to bring a permanent solution to the current account deficit and to increase domestic savings. With the aim of making the most of Turkey's young and dynamic population, which will support the country's rapid development process, the AK Party aims to increase participation in the workforce and to adopt education policies that are compatible with the needs of the labor market. Increasing research and development activities with the help of the private sector, improving public infrastructural investments, fighting informal economy and corruption, improving the investment environment and attracting more foreign direct investment in productive areas are among other economic objectives of the AK Party.
The AK Party's basic economic policy is to continuously keep the inflation at low and one-digit numbers. Driven with this principle, the party maintains its determination to ensure and maintain price stability as the main objective of its monetary policies. The AK Party government says it is paying great attention to the harmony between fiscal and monetary policies and regards fighting inflation as one of the foundations of economic stability. As cited in the manifesto, the monetary policy should also observe financial stability and support the government's growth and employment policies without conflicting with the objective of ensuring price stability. The inflation targeting will continue to be the basic monetary policy regime. Inflation targets will be determined by the government and the central bank for three-year terms. The fluctuating exchange rate policy will continue. It will remain essential that the central bank continues to directly determine monetary policy instruments that it will use to ensure price stability. With the contribution of the central bank, the Financial Stability Committee and the Food Committee will strengthen stability and efficiency in related areas.