Century of finance in Türkiye: liberal, democratic, prosperous

Türkiye started to experience a major transformation in the 1980s. While Türkiye stood and watched a three-decade period in the shadows of putschist boots, as the whole world progressed economically, late President Turgut Özal chased a pursuit. As investments in agriculture and industrial fields started to gain momentum, the services sector was discovered as well. The foundations of the striking development that made Türkiye one of the important actors in tourism today were laid in those days. At the same time, the public was also introduced to financial services.

For example, in the past only a few “privileged” people in every neighborhood would make their way to the bank, whereas now, a lot more people are able to receive services.

Yet, in the meantime, Türkiye’s financial center shifted abroad. Financial isolation happened in almost as short a time as a day. While Türkiye was developing a local and national rea sector with magnificent performance, it surrendered to globalization in finance in order to provide resources to its businesses.

It would certainly have been an exceptional magnificence if both the finance and real segments could have developed locally and nationally at the same time. This duality was thus always a soft spot for the real sector. The periods considered to be bright days were coincidental, short and temporary, just like the pop music phrase, “summer loving.” Every time the capital flow, which is temporary like a flash in the pan, stopped, the country experienced economic difficulties. Sometimes its own circumstances would not allow capital flow, sometimes the global conjuncture was not available, and at most times, global capital played its own in-out game – which Türkiye could not tolerate.

Every time there was capital inflow, the economy would experience a boom beyond its capacity, and every time there was an outflow, it would experience a fictive boost. Türkiye reached today on such a fluctuating journey.

It presented a seesaw economy upon the contrast in a local real segment and a globalized financial segment. It became a profitable market in the economy. It always shaped its policy preferences in accordance with the demands of those who were strong in this market. Whenever it was asked to sabotage the real segment, it did it. Whenever it was asked to increase capital with interest, it did it. Whenever it was asked to present an opportunist surplus, it did. But it also saw that it was impossible to reach the future in its horizon with this equation. Because while it made little profit with every inflow-outflow, it made great loss.

If it did not put an end to this course, it would be knocked down and crushed when the wheels in the world started to turn in the opposite direction.

Just as no notable economy ever presented the weakness of being a market in finance, it took full advantage of hosting financial resources. Would Türkiye continue to remain indifferent?

It presented the Istanbul Finance Center project. Then it started to gradually shape its policy preferences around not others’ interests but its own. An economy must never rely on internal resources. Everyone can evaluate how much it succeeded at this for now. But just as such a transformation cannot be easy and painless, if Türkiye wants to realize itself, then difficulty and pain is inevitable.

Türkiye losing the Hyundai factory investment to Czech despite making great efforts was a negative turning point. It was like the spell was broken. Czech was preferred by Hyundai over a great potential like Türkiye, even though it was irrational. It was the early 2000s. I thought to myself then that Türkiye was disregarded.

But I realized for the first time today that I was wrong.

Türkiye’s primary problem was not that it failed to attract an investment – whether significant or not. Türkiye’s real problem was that it failed to realize its own investment under that category.

I carried this old idea, which I understand was wrong now, for years as a truth – until Ramadan this year, when the Türkiye make Togg hit the roads. When Togg hit the road this year, Türkiye went beyond being a market for the first time.

Why would an automobile manufacturer in this new world make a serious investment in a country that cannot produce its own automobile?

Why does Tesla invest in Germany, China, and Toyota in the U.S.? Why would anyone make a chip investment in a country that does not produce automobiles?

This is how Togg changed my understanding, and this alone is enough for me. Togg will lead to the same understanding in all sectors and economic actors in Türkiye – except for blind minds.

The Istanbul Finance Center is the same thing. Why would anyone consider an economy that positions itself as a market as a host in the capitalist world? What will stop it from posing its own rules? What would stop it from colonizing it?

Things are going to change now.

The finance center has a lot of necessities. Türkiye may be lacking in this respect, and that is not a problem. The mindset transformation that is going to happen is enough for now. Deficiencies will be eliminated under all circumstances, and along with investments in finance, variations, being a stakeholder in the rule, business in Türkiye will soon change in the direction that suits and is desired by Türkiye. The real sector will be liberated and focus on its task.

In brief, finance will be a more democratic character in the century of finance. Türkiye, a country made dependent through finance, made poor through finance, will become independent and prosperous through finance in this century. I hope the Istanbul Finance Center will find its spirit in no interest. Congratulations.