Turkey's economy falls victim to inequality

Published June 29th, 2014 - 03:55 GMT
“Income equality is important for sustainable growth. We can't fight income inequality with only macroeconomic policies. Turkey should increase its production capacity,” Dinçer added.
“Income equality is important for sustainable growth. We can't fight income inequality with only macroeconomic policies. Turkey should increase its production capacity,” Dinçer added.

Chairman Haluk Dinçer of the Turkish Industrialists and Businessmen's Association (TÜSİAD) said on Friday that Turkey ranks third among the countries with the highest levels of income inequality. 

Dinçer, speaking at a TÜSİAD meeting to present recent data on income inequality, stated that even though the global economy is improving, Turkey doesn't seem to be benefitting, and continues to have one of the highest levels of income inequality in the world. 

“According to a recent study conducted by the Organization for Economic Cooperation and Development [OECD], Turkey ranks third in terms of [countries with the worst levels of] income inequality after Chile and Mexico. Income inequality can only be prevented with healthy economic growth,” Dinçer said. The chairman continued by saying that the gap between the rich and the poor had started to narrow between 2002 and 2007, but that it stayed constant between 2007 and 2011. 

“Income equality is important for sustainable growth. We can't fight income inequality with only macroeconomic policies. Turkey should increase its production capacity,” Dinçer added.

TÜSİAD Vice President Memduh Boydak stated that population, unemployment, the informal economy and inflation are factors that affect the level of income inequality

“If we can determine the reasons for income inequality, a more effective wealth distribution policy can be implemented. We at TÜSİAD released our first report on the subject in the year 2000.” By announcing the data in the OECD report, TÜSİAD wanted to inform the public about the progress made.


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