[stop-imf] Turkey: Is it Forbidden to Criticize the IMF in the Central Bank?

[robert weissman]

Zaman Online

Is it Forbidden to Criticize the IMF in the Central Bank?


By IBRAHIM OZTURK
Published: Friday, March 24, 2006
zaman.com <http://www.zaman.com>

Dr. Ibrahim Turhan, whose name has been mentioned for the position of
Central Bank Deputy Governor, has been declared a "market enemy".

Famous historian Braudel, in his work titled, "The Mediterranean,"
describes capitalism as a "market enemy". Certain writers in the media
who were talking about the virtues of Marxism until just recently may
try to ignore it, but the final outcome of markets that are undirected
is brutal capitalism. This is the case in the strict practices of
centralism. Karl Polanyi's magnificent work "The Great Transformation"
proves that the market and the institutions that make the market
possible are established almost with painstaking efforts despite
capitalism.

Intellectual fascism in the old school thinkers obsessed with turning
the corner was triggered by the fact that Dr. Turhan is favoring the
intervention in the market, accusing the IMF of causing a crisis, and
making statements that the results may be harmful if privatizations are
not monitored. A young academic whose life is full of success has again
been thrown into the monstrous mouth of the man-grinding machine.

It seems that identifying formulas written abroad in the hands of people
displaying a national attitude disturb some people. There are some who
are looking for imported men again, as it was the case in the crisis of
2001. Those involved know this; there is no single country that
developed pure market logic without any intervention in the markets.
Germany and Russia in the 19th century, Japan in the 20th century and
the Asian tigers in 1950 developed with a fully oriented market model.
This is valid for the US, too. The ongoing discussion over World Bank
"pure marketists" and Japanese model supporters was concluded with a
report the World Bank issued in the 1990's, which read that market
orienting is more efficient than the other. Supporters of the Washington
agreement, who were relieved with the Asian crisis, have since been
disappointed with Asia's becoming the center of gravity of the global
growth again today. It is obvious that it is necessary to make a series
of supplementary commercial, financial and public reforms paving the way
for functioning markets to be established, but the IMF stops here.
However, history=92s development has showed us that the institutional
infrastructure must be set up for this to be fruitful, and cultural
backgrounds must be taken into consideration in order to provide local
adaptations for the efficient functioning of institutions. The IMF's
ideological obsessions imposed in the first article have resulted in
crisis, not only in Turkey but also in Russia. Latin America's hatred of
the IMF is evident. The well-known destructive attitude displayed by the
IMF in the Asian crisis drew the reaction of many academicians; even
from inside the institution.

In Turkey's descent towards the 2001 crisis, the IMF did not only watch
as the main actor but insistently opposed renouncing the wrong steps.
There were IMF supporters in the Central Bank at that time, what has
been the benefit of this for Turkey? Was not the then governor who was
awarded "economist of the year" just last week sentenced for "misuse of
the power" by courts abroad? Instead of regretfully saying "We wish
there were wise people without the memorized pattern displaying a
national attitude at these positions then," people are asked to leave
their brain in the cloakroom in order to work at the bank. Is the
Central Bank IMF's backyard an operation place, or is it an institution
of the nation? Is the imposition put on parliament during the February
28 process being imposed on international corporations by means of
"institutions" and "boards"? Some may have adopted the principle "what
is important is a person's secular character, the rest does not matter."
However, the country is plundered with this "tribal logic" and it is our
nation that is at a loss.

/ (*) Associate Professor at Marmara University=92s Economics Department/

24.03.2006
IBRAHIM OZTURK
http://www.zaman.com/?bl=3Deconomy&alt=3D&hn=3D31289