Introduction to Turkey’s Economic Crisis
The world has witnessed numerous instances of poor leadership, but some leaders still fail to understand that political maneuvering and intimidation can lead to macroeconomic disasters. A recent example of this is the arrest of the Mayor of Istanbul, a frontrunner for the upcoming Turkish presidential elections, on a grave charge that would disqualify many political leaders. He was accused, without proof, of "irregularities" regarding his 1990 degree from the American University of Girne (Northern Cyprus).
The Arrest and Its Consequences
The University of Istanbul promptly responded by revoking the equivalency of his degree, making him de facto ineligible for the presidency, as the Turkish Constitution requires presidential candidates to hold a university diploma. As of July 2025, an additional accusation alleges that Mr. İmamoğlu falsified his university degree, making him liable for prison time on charges of "forgery of official documents." This arrest set off a historic chain reaction, triggered by irrational manipulations carried out by a ruling power that values ego over the economic and financial stability of the nation.
Economic Impact
The day of the arrest, March 19th, the Turkish currency plummeted by 12 percent, and the Central Bank has nearly depleted its reserves in an attempt to defend against the uncontrollable collapse of its currency. The bank has lost USD 90 billion, and the country has been forced to raise its benchmark interest rate to 46 percent to contain the economic crisis. In a global context where most central banks are cutting rates to stimulate their economies, Turkey once again stands out for its poor economic decisions.
A Dysfunctional Country
The situation would be laughable if it weren’t so serious for the people of a country rendered completely dysfunctional. The leadership shows no concern for the flatline of foreign investment or the economic bleeding, because staying in power is all that matters. Its survival comes before prosperity and before any bailout that might bring desperately needed liquidity to its people. The Turkish lira, which just 10 years ago was below two to the dollar, and below 5 seven years ago, has now plummeted to 40.
Inflation and Economic Instability
The price of a liter of gasoline has risen from 1.48 lira in 2002 to 53 lira today. Inflation stands at 49 percent, likely underestimated since the government controls 85 percent of the national media. The country’s leaders have sent a clear message to the markets through this arrest: that stability is optional, but authority is not. This approach to governance has led to a catastrophic economic situation, with no clear end in sight.
Conclusion
In conclusion, Turkey’s economic crisis is a direct result of poor leadership and a disregard for the country’s economic and financial stability. The arrest of the Mayor of Istanbul has sparked a chain reaction of economic disasters, including a plummeting currency, depleted reserves, and soaring inflation. The country’s leaders must prioritize the economic well-being of their people and adopt a more responsible approach to governance. Until then, the people of Turkey will continue to suffer the consequences of their leaders’ actions.
