The economic crisis in Turkey is worsening every passing day as inflation is
surging at an alarming rate and manufacturing output going down while its
currency spiraling down fast. This has led to huge inconvenience to people,
thanks to food shortage, low wages, and high farming costs. So people are
protesting against the incumbent Turkish President Recep Erdogan. This
does not come as good news to Erdogan, who is seeking another
presidential term in soon-to-be-held elections. Besides the inflation and
food shortage, the rising number of Covid-19 patients is another factor that
has angered people. The rising hardships are adding to the socio-political
tensions, which are likely to be detrimental to Erdogan’s prospects of
reelection.
The annual inflation in Turkey hit 79 per cent in June this year, which is the
highest for the country in the 21st century. Consumer price inflation was
aggravated by the 124 per cent jump in transportation prices and 94
per cent hike in food prices.1 The Turkish manufacturing sector has shown
a sharp decline for four months in a row, reaching the lowest level in two
years, as input cost and output price inflation remained sharp. Andrew
Harker, Economics Director, S&P Global Market Intelligence, said “Higher
input prices reflected rising raw material costs, increased energy charges
and unfavourable exchange rates. Raw material shortages contributed to a
further lengthening of suppliers’ delivery times.”
2
1https://www.nasdaq.com/articles/turkeys-annual-inflation-climbs-to-near-79
2https://www.bne.eu/june-pmi-shows-turkish-manufacturing-sinking-further-intocontraction-territory-249269/?source=turkey
Link
There is a food shortage across Turkey. And food prices have doubled from
a year ago.3 Farmers and consumers are equally disturbed. Fertilizer prices
increased by 233-344 per cent in just one year. So do the fodder prices–
by 130 per cent.4 Moreover, higher taxes on fuel have added to the
agriculture woes since farmers mostly rely on diesel to operate farm
machinery and their crop produce. 5
“The debts of farmers total some 170
billion liras (USD11.6 billion) today. And with all input prices soaring amid
the crash of the Turkish lira, [many] farmers have come to a point where
they’d rather not produce or not cultivate their fields at all,” said business
journalist Gulumhan Gulten.
6 The Erdogan government has admitted that
the cost of living has increased while it has no solution in sight.7
Link
Economists and opposition parties in Turkey had warned of the impending
food crisis last year.8 However, the Erdogan government failed to take
3https://ahvalnews.com/turkey-inflation/turkish-inflation-accelerates-786-food-pricesalmost-double
4https://www.al-monitor.com/originals/2022/04/turkeys-farmers-call-urgent-supportfood-alarm-grows
5https://www.al-monitor.com/originals/2022/03/dizzying-fuel-hikes-fan-populargrievances-turkey
6https://www.al-monitor.com/originals/2022/04/turkeys-farmers-call-urgent-supportfood-alarm-grows
7https://www.dailysabah.com/business/economy/may-figures-show-turkish-inflation-ondownward-trend-erdogan
8https://m.bianet.org/english/politics/254578-chp-warns-of-a-food-crisis-in-turkeyurges-an-intervention-in-fertilizer-prices
corrective measures, forcing millions of his countrymen to struggle with
soaring food prices. While Erdogan tried to shift the blame to high
borrowing costs, economists and experts criticized his economic policies for
the current financial mess.9 They also cast doubt on the governmentreleased figures and claimed the true level of inflation rate in June was 176
per cent in reality.
10
Link
Now there is an outlook that the situation will keep worsening, at least until
November.11 This will keep consumer prices up. “The policies they’re
pursuing mean inflation will continue to rise, life is going to get more
expensive and more desperate for the average Turkish citizen,” said
London-based international relations expert Karabekir Akkoyunlu. Now
protests are held by the working class across Turkey, over rising food
prices, declining incomes and differences in civil servants’ salaries.
12
Erdogan’s government has however used an iron hand while dealing with
these protests as it banned the Constitutional provision allowing citizens to
carry out demonstrations and also carried out police repression.13
9https://www.ft.com/content/20f4ee66-8a1a-406a-85ff-9d755fdc9c9b
10https://www.manisteenews.com/news/article/Data-puts-Turkey-s-annual-inflation-at78-6-a-17283090.php
11https://in-cyprus.philenews.com/news/international/turkish-inflation-seen-above-78-
in-june-just-below-70-at-end-2022/
12https://www.dokuz8haber.net/bask-temmuz-zammini-ve-ek-gosterge-duzenlemesiniprotesto-etti
13https://www.wsws.org/en/articles/2022/06/28/turk-j28.html
Link
Erdogan government is also blamed for not taking enough efforts to rein in
the rising number of Covid-19 cases. “We are not aware of the increase in
cases because the conditions for testing in Turkey have been made very
difficult. There is no budget for pandemics anymore. The pandemic is being
treated as if it does not exist,” said professor Mehmet Ceyhan from Ankarabased Hacettepe University.
14
Erdogan has declared that he would contest the election again. However,
the recently held polls showed that he would not be able to win, no matter
who is competing with. About 58 per cent of first-time voters said they
would not vote for Erdogan.15 The higher and uncontrolled inflation and
slumping lira, which have crumbled the middle-class’ budget as well as
industrial output; appear to be the reason, voters in Turkey would not
support Erdogan. Policy Research Group said, Turkey witnessed democratic
backsliding, corruption and media curbs during Erdogan’s rule.16 All this
creates huge obstacles for Erdogan’s electoral victory despite having strong
control over the country’s media and judiciary.17
14https://www.wsws.org/en/articles/2022/07/02/turk-j02.html
15https://newsbeezer.com/greeceeng/turkey-erdogans-election-defeat-predicts-newpoll/
16https://theprint.in/world/turkish-president-erdogan-may-not-retain-his-chair-hereswhy/1011004/
17https://www.politico.eu/article/recep-tayyip-erdogan-turkey-economy-in-crisis-picksfights-abroad/
End.