Turkish economy had a ‘golden age’ between 2002-2007, says former economy tsar

Turkey’s economy experienced a “golden age” between 2002 and 2007 thanks to its robust maintenance of the independence of institutions adopting monetary policy, said Kemal Derviş, the economy minister in 2001-2002 responsible for launching Turkey’s recovery from a huge financial crisis.

“Turkey experienced a golden age economically between 2002 and 2007, thanks to the structural reforms that the country started to make after becoming a candidate state for EU membership in 1999. It is also thanks to the stance of the economic administration, led by [Economy Minister] Ali Babacan, in maintaining the independence of institutions adopting monetary policy,” said Derviş, who is also the former chief of the United Nations Development Program (UNDP) and the current vice president of the Brookings Institution.

The implementation of policy aimed at integrating with the EU played the biggest role in Turkey’s current economic growth, he said, speaking at the “Europe, Turkey and Globalization” panel organized by the Institute of International Relations (IAI), an Italian think tank.

“The more Turkey becomes integrated into the EU, the more its economy grows,” Derviş noted.
However, he added that the perception that election winners “could do whatever they want” and the distancing from the EU have played a role in the slowing of the Turkish economy since 2007.

Meanwhile, Derviş also touched on the question of Muslims in Europe, saying that Europe “must learn to live with Islam.”

“Muslims are the biggest minority in Europe and Europeans must learn to live with them. Turkey is of crucial importance for Europe when considering the latest issues with which Europe is now dealing, including the...