Introduction

The period under President Erdogan has become a subject of considerable debate, particularly in relation to economic performance. While some claim improvements in the economy, particularly in terms of wealth redistribution, others argue that the gains have largely been illusory. This article delves into the economic realities faced by Turkey during Erdogan's tenure, examining growth trends, social indicators, and critical economic challenges.

Historical Context and Growth

The Turkish economy has experienced significant shifts over the past century. However, when examining the average yearly growth rate over the last 100 years, it is evident that the trend has been positive, with an average of 5 percent per annum. This is notably high compared to the underwhelming 1.6 percent growth rate seen in the European Union and the often volatile growth patterns seen in much of Africa.

Despite these positive trends, there have been significant variations. Periods of military coups, economic crises, natural disasters, and pandemics have all had a detrimental impact on the economy. Yet, understanding the long-term average provides a clearer picture of the economic trajectory of Turkey.

Economic Performance in the Erdogan Era

Under President Erdogan's leadership, proponents argue that significant economic improvements have been made, particularly in terms of wealth distribution. They point to the influx of Arab investment, facilitated by Erdogan's policies, and the construction boom in major cities. However, a closer examination reveals that these criteria for success are entirely superficial, masking fundamental economic weaknesses.

The construction boom, while visually impressive, is problematic. These developments do not necessarily translate into job creation, as many of the projects are flashy and unnecessary. Without substantial industrial or agricultural output to support these endeavors, the economy remains vulnerable. Over-reliance on a buoyant construction market cannot sustain long-term economic health. Moreover, most of the growth has come from a small, privileged segment of society, rather than broadly across the population.

Class dynamics have shifted, with wealthy individuals and families, closely aligned with the government, accumulating wealth at the expense of secularist and capitalist families. This wealth concentration undermines the spirit of economic equality that is essential for sustainable growth.

Socioeconomic Challenges

While some may point to increased consumer spending due to globalization, the reality is more complex. The cost of living has risen sharply, making everyday expenses a burden. Key indicators such as the unemployment rate, currently over 12%, suggest a significant portion of the population struggles to make ends meet. Moreover, rising prices, particularly for essential goods, have exacerbated financial strain.

The tax burden on the population is also heavy. Approximately 51% of gas prices and 45% of cigarette prices are comprised of taxes. Government cuts to state-owned companies have further eroded public services, leaving many citizens to rely more heavily on the private sector for essential services.

Debt has become more accessible, allowing for increased consumption, but this increases financial vulnerability. Many households are now carrying significant debts, placing an additional strain on personal finances. This trend is more pronounced in urban areas, with rural regions facing even more dire economic challenges.

Conclusion

The portrayal of economic improvement under Erdogan's presidency is largely an illusion. Significant wealth has been concentrated in the hands of a select few, while the broader population continues to grapple with unemployment, rising costs, and debt. This article aims to provide a nuanced view of the economic situation in Turkey, highlighting the need for structural reforms to ensure true and equitable prosperity.