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DEM Party’s Temelli warns of stagflation: Democracy key to Turkey’s economic recovery

DEM Party's Sezai Temelli warns of stagflation in Turkey, arguing that economic recovery is impossible without democratic reforms and a shift in political governance.

1:14 pm 07/09/2024
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DEM Party’s Temelli warns of stagflation: Democracy key to Turkey’s economic recovery
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Sezai Temelli, an economist and deputy of the pro-Kurdish Peoples’ Equality and Democracy Party (DEM Party), has warned that Turkey is on the brink of stagflation and stressed that economic recovery is impossible without democratic reforms. “Turkey will find itself in a worse situation, moving from one crisis to another,” he said on Friday, speaking to Mezopotamya Agency’s Mehmet Aslan.

Stagflation is a situation in which the inflation rate in a country is high or increasing, but the economic growth rate slows, and unemployment remains steadily high.

Temelli pointed to the 2.5% growth in the second quarter of the year reported by the Turkish Statistical Institute (TÜİK), arguing that this figure reflects a stagnating economy with deepening social, political and economic crises. “Today, 85% of the population lives below the poverty line,” he stated, criticising the government for painting an overly optimistic picture of the economy while the reality for most people is dire.

Temelli linked the economic crisis to Turkey’s political environment, particularly the 2014 “Collapse Plan” adopted by the National Security Council, which he claims contributed to the country’s economic decline. “Instead of fostering a democratic resolution to the Kurdish issue, the government blocked all such developments,” he noted. He argued that a significant portion of the nation’s resources is now directed toward military and security spending, further exacerbating economic difficulties.

Highlighting growing inequality, Temelli criticised that while the broader population struggles, a small elite continues to accumulate wealth. “Around 1% of the population is becoming wealthier, while the majority suffer,” he said. He emphasised that economic recovery requires the democratisation of resource distribution, where public assets are allocated for public benefit rather than being concentrated in the hands of a few.

Temelli underscored the urgency of addressing the economic crisis through broad-based political change. “We need a strong societal alliance for democratic and economic peace,” he urged, calling for opposition parties and civil society to unite in a “democracy front” to confront the challenges ahead. He argued that without political reform, there could be no sustainable solution to Turkey’s deepening economic woes.

Meanwhile, the DEM Party criticised the government’s approach to education, citing a lack of investment in state schools, skyrocketing costs of school supplies (with price increases of up to 105% in the education sector), and the growing class divide in educational opportunities. According to the DEM Party’s Child, Labour and Education Commissions, one in four children in Turkey goes to school hungry, reflecting widespread poverty that affects 6.5 million children severely.

They also expressed concern over children being pushed into labour to cover school expenses and the government’s apparent promotion of vocational schools (MESEMs) as a means to legitimise child labour. The DEM Party called for a united effort to transform the education system, emphasising the need for equal and free education for all children.


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Tags: democratisationEconomic CrisisinflationpovertySezai TemellistagflationTurkeywealth inequality

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