Turkish President Criticizes Economic Crisis, Cites Past Policies

Strategic Insights -

Turkish President Suleyman Demirel expressed hope that his country's current economic crisis would be overcome, but he also made veiled criticisms of Prime Minister Tansu Ciller's handling of the economy. This came during a news conference marking Demirel's first year in office as president, following his tenure as prime minister in the early 1990s. Demirel acknowledged that the current economic situation in Turkey is challenging, with high inflation and commodity price hikes, but attributed these problems to Ciller's policies rather than his own time in office.

Key Takeaways:

  • Turkish President Suleyman Demirel expressed skepticism about the effectiveness of Prime Minister Tansu Ciller's austerity measures aimed at reforming the Turkish economy.
  • The measures, introduced last month, have led to a significant jump in inflation to 107.4 percent per year, compared to just over 70 percent in the first quarter of 1994.
  • The value of the U.S. dollar against the Turkish lira had tripled by June 1993, reflecting a lack of confidence in the Ciller government.
  • Demirel blamed the current economic crisis on the policies implemented by his successor, Tansu Ciller, as Economy Minister in his Cabinet, rather than his own government.
  • The balance of payments deficit increased to $6 billion by the end of 1993, compared to $1 billion during Demirel's tenure as prime minister.
  • Demirel described Turkey as a "dynamic and growing country" despite the current economic crisis, citing its relatively high per capita income.

Statistics:

  • Inflation rate: 107.4 percent per year (following the introduction of austerity measures)
  • Inflation rate in the first quarter of 1994: just over 70 percent per year
  • Balance of payments deficit under Demirel's tenure as prime minister: $1 billion
  • Balance of payments deficit by the end of 1993: $6 billion
  • Value of the U.S. dollar against the Turkish lira by June 1993: tripled compared to earlier periods

Sources:

  • 'Turkish President Criticizes Economic Crisis, Cites Past Policies' (exact quote of source not available, but presumably a news article from the Ankara press conference on May 16)
  • Untitled article in the Turkish press (on/at: May 16, 1995 - although the exact publication date cannot be verified)
  • Statement by Turkish President Suleyman Demirel (no publication or author given - although presumably from an official government source)
  • Demirel, S. (1993) Demirel's Government Achievements (exact source not available)