Turkish economy needs more inclusive economic institutions guaranteed by democratic institutions, world-renowned Istanbul Armenian economist Daron Acemoğlu wrote in Bloomberg.

“Rather than hope that capital controls or other forms of financial engineering will miraculously restore to health an economy ailing from institutional ills, it is better to be clear-headed about what the Turkish economy needs: more inclusive economic institutions guaranteed by democratic institutions,” he said.

According to him, important steps would include rolling back the sweeping powers of the executive presidency; freeing up the media; freeing political prisoners, such as the businessman and peace activist Osman Kavala; granting independence to public agencies such as the central bank, and to the courts; reactivating the controls over government procurement; and taking simple confidence-building measures for foreign and domestic investors.

However, Acemoğlu noted, that “the simplicity of the solution shouldn’t allow false hope”.

“The conditions that enabled political reform in the early 2000s do not exist now. Turkey changed its constitution in a more authoritarian direction, and the opposition is in no position to force President Erdogan to take a reformist turn. The courts and the media have completely ceased to provide checks against government power. The population has become much more anti-Western in the intervening years, in part because of the collapse of the EU accession process, and also because of the steady barrage of propaganda in the Turkish media. The coup attempt of July 2016, which led to the deaths of over 300 people, has scarred the public psyche and further polarized the country”.