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The Politics Behind Erdogan's Central Bank Decision – Bloomberg



On the same day that Turkey’s President Recep Tayyip Erdogan sacked Naci Agbal, his third central bank governor in two years, he also announced Turkey’s exit from the Istanbul Convention, a Council of Europe agreement designed to protect women. Both decisions immediately drew international criticism, but they are best understood in the context of domestic politics — and specifically, Erdogan’s re-election campaign.

Turkey is not required to go to the ballot box before 2023, for both presidential and parliamentary polls. But the president seems to have decided to hold an early vote to alter the dynamics of the political landscape. That is the only way to explain recent moves, including the decision by the public prosecutor to close down the second largest opposition party, the pro-Kurdish People’s Democratic Party.

Erdogan’s prospects aren’t looking good: Opinion polls show a steady decline in support for his Justice and Development Party. The March survey by the polling agency Research Istanbul placed the ruling party’s  share of the vote below 30% for the first time since almost two decades.

The numbers reflect a growing perception among Turks that their leader of 18 years has mismanaged the economy. Per capita income has been on a declining trend since the 2013 peak of $12,000 in nominal terms; in 2020 it had declined to $7,700. The hyper centralization of power introduced by the transition to a presidential system in 2018 has handicapped governance. Decision-making has become less predictable, creating uncertainties for economic agents domestic and foreign. As a result, private investments have dropped, making it harder for the government to cope with rising unemployment.

To stand any chance of stretching his rule into a third decade, Erdogan needs to change the status quo — and his decisions over the weekend are designed to do just that. The president blames Agbal’s positive interest-rate policy, which led Turkey to adopt the second-highest nominal interest rate in the OECD after Argentina, for hindering economic recovery and job creation, and consequently his popular support. Sahap Kavcioglu, the new governor, is a former lawmaker from his party and a firm believer in the Erdogan orthodoxy that high interest rates cause inflation.

With a pliant new governor at the helm of the bank, Erdogan is likely to return to expansionary monetary policy, easing credit conditions and lending practices. In his view, a credit stimulus is essential for an economic rebound.

The market begs to differ: The lira and stocks both plunged on Monday. Investors believe that credit-fueled growth is at the root of the economy’s underlying vulnerabilities, and expect a cycle of currency depreciation, inflationary pressures and shortfall in capital flows. If the lira comes under sustained pressure, the government will further deplete its reserves to shore it up.

Ironically, by forcing a reversal in monetary policy and undermining the independence of the central bank, Erdogan may have imperiled his election prospects.

 Nor is it clear that his decision to abandon the Istanbul Convention will turn the tide in his favor. Paradoxically, the agreement was originally Ankara’s brainchild. It was championed by Turkey within the Council of Europe and eventually turned into a multilateral agreement at the Summit of the European organization held in Istanbul back in 2011.

By pulling Turkey out of the agreement, the president is hoping to appeal to far-right Islamists whose suppose is critical to his reelection and who dislike the convention for its provisions designed to enhance the protection of minority lifestyles including LGBT rights.

The president has recently been lashing out at the LGBT community in his speeches. But there was little public support for a withdrawal from the agreement, especially at a time when the country is having difficulty in stemming violence again women. World Health Organization data show that 38% of women in Turkey are subject to violence from a partner in their lifetime, compared with about 25% in Europe. Erdogan’s opponents will undoubtedly use his withdrawal from the convention in their bid to draw women voters away from the president and his party.

Even for a politician with a penchant for high-risk, high-reward strategies, these two decisions represent major political gambles for Erdogan.

    This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.

    To contact the author of this story:
    Sinan Ulgen at

    To contact the editor responsible for this story:
    Bobby Ghosh at

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    Prince Philip took a keen interest in Canada, but stayed above politics, former GGs and PM say



    When former Canadian prime minister Jean Chrétien met the late Prince Philip for the first time, he told him that for an Englishman, his French was very good.

    “He said ‘I’m not English and I’ve spoken French since before you were born,’” Chrétien told the Star Friday, commenting on his many encounters over 50 years with the Duke of Edinburgh.

    “He was not dull, let me put it that way,” Chrétien said. “He had some strong views. Sometimes he had to show discipline to not speak up more than he would have wished.”

    Philip, born in Greece in 1921 and husband to Queen Elizabeth II for over 73 years, died at the age of 99 on Friday.

    Prime Minister Justin Trudeau, who said he first met Philip when he was a little boy, described him as “a man of great purpose and conviction, who was motivated by a sense of duty to others.”

    Former prime ministers and governors general spoke of a man who understood his role and knew not to get involved in politics, but who was very knowledgeable about Canada and took a keen interest in the country’s success.

    “I was always impressed by their knowledge,” Chrétien said of Philip and the Queen, Canada’s head of state.

    He said he can recall Philip asking about the prospect of Quebec separating from the rest of the country. “Not in a very political fashion, just in terms of interest. Of course he was interested to not see Canada break up. He would certainly say that to me.”


    Statements from former prime ministers Paul Martin and Stephen Harper highlighted Philip’s devotion to the Canadian armed forces and charitable organizations, as well as the Duke of Edinburgh’s Award, an international self-development program for young people.

    Former governors general David Johnston and Michaëlle Jean, through their role as the Queen’s representative in Canada, were also able to get to know Philip more intimately, particularly at the Queen’s Balmoral Castle estate in Scotland.

    Jean recalls being “overwhelmed” by all the protocol recommendations ahead of a Balmoral visit with her husband and six-year-old daughter prior to taking office in 2005, only to find Philip and the Queen greeting them at the door, with Philip paying special attention to her daughter.

    “The memory I keep of Prince Philip is that of an affable, caring, elegant and warm man,” Jean told the Star, adding he was a man who was very attentive to detail.

    She recalled attending a barbecue on the Balmoral estate, just the four of them, and Philip telling her, “Don’t forget to congratulate Her Majesty for her salad dressing, because she made it herself.”

    What Jean also saw was a man sometimes hampered by the limitations of his role, like when he talked about one of his favourite topics, the environment.

    “He said ‘I do a lot about it, I raise awareness, I take actions…I feel that whatever I do, no one cares,’” Jean recounted. “What I got from that is how lonely he felt…There was a sense of not feeling appreciated in proportion to his contributions, a feeling of being misunderstood.”

    Johnston, who succeeded Jean, said Canada’s constitutional monarchy — where the head of state is politically neutral and separate from elected office — is an “important and precious” form of government, and Philip was key to making it work.

    Philip showed leadership as a servant, Johnston said, “not taking centre stage, but by ensuring that the Queen and the monarchy were front row and centre.



    “He played such an important structural role, and did that with great diligence and commitment. He was selfless in that respect,” Johnston said in an interview.

    For Matthew Rowe, who works on the Royal Family’s charitable endeavours in Canada, the Duke of Edinburgh’s political value to Canada was precisely that he was not political — that he, along with the rest of the monarchy, provided a stabilizing force outside of the partisan fray.

    He was dynamic, irascible, exasperating, intriguing. And he was always three steps behind his wife, Queen Elizabeth, who utterly adored him throughout their 73-year marriage, flaws, faux pas and all.

    “His presence, and the role of Her Majesty and other members of the Royal Family, has been to be able to represent the nation, to represent Canadian interests, and commemorate Canadian achievements without being tied to a particular political ideology or regional faction,” Rowe, who met Philip at a ceremony at Rideau Hall in 2010, said in an interview.


    Philip’s role meant he could speak more frankly than the Queen in public, and spoke “quite thoughtfully” about the constitutional monarchy in Canada, said University of Toronto history instructor Carolyn Harris.

    At a press conference in Ottawa in 1969, Philip famously said that the monarchy doesn’t exist “in the interests of the monarch…It exists solely in the interest of the people. We don’t come here for our health. We can think of other ways of enjoying ourselves.”

    Philip had a good, joking relationship with Johnston’s wife, Sharon. He recounted how the two joined the Queen and Prince Philip at Balmoral in August 2010, prior to Johnston’s swearing-in later that year.

    One evening, they were returning to the castle from a barbecue at a renovated shepherd’s hut on the estate — just the four of them, the Queen driving with Johnston in one land rover, and Philip driving with Sharon in the other ahead of them on narrow, highland roads.

    “We were coming home at about 10 p.m., as black as could be, he and Sharon were ahead, kind of weaving, and we could hear these gales of laughter coming out. They were cracking jokes at one another,” Johnston said.

    “I had a vision of him going over the edge and down half a mile into the valley, and my first thought is: Do the Queen and I rustle down to rescue them?”

    Chrétien said “it must be terrible” for the Queen to now find herself alone after a marriage that lasted for more than 70 years. He noted it’s been almost seven months to the day since he lost his wife, Aline.


    “It’s a big change in life but she’s an extremely courageous person and she will face the situation with the strength that she has been able to show to the world for the almost 70 years she’s been queen,” Chrétien said.

    With files from Alex Boutilier and Kieran Leavitt



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    After warning, McConnell softens posture on corporations’ taking political stances



    Senate Minority Leader Mitch McConnell, R-Ky., softened his stance on corporations’ getting involved in politics Wednesday, a day after he warned companies not to weigh in on hot button issues.

    “I didn’t say that very artfully yesterday. They’re certainly entitled to be involved in politics. They are,” McConnell told reporters. “My principal complaint is they didn’t read the darn bill.

    “They got intimidated into adopting an interpretation … given by the Georgia Democrats in order to help get their way,” he said.

    McConnell was referring to a controversial voting law recently passed in Georgia, which came about in the aftermath of former President Donald Trump’s campaign of falsehoods about the election result in the state last fall.

    The law led the CEOs of Delta and Coca-Cola — which are based in Atlanta — to condemn the measure. And last week, Major League Baseball pulled this year’s All-Star Game out of Atlanta in protest. The game will, instead, be played in Colorado.

    In recent weeks, McConnell has excoriated corporate America for boycotting states over various GOP-led bills. He said Tuesday that it is “stupid” for corporations to take positions on divisive political issues but noted that his criticism did not extend to their donations.

    “So my warning, if you will, to corporate America is to stay out of politics,” McConnell said in Louisville, Kentucky. “It’s not what you’re designed for. And don’t be intimidated by the left into taking up causes that put you right in the middle of one of America’s greatest political debates.”

    Major League Baseball’s decision drew the most outrage from Republicans, as Trump called for a boycott of baseball and other companies that spoke out against the Georgia law. McConnell said Tuesday that the latest moves are “irritating one hell of a lot of Republican fans.”

    McConnell, long a champion of big money in politics, however, noted Tuesday that corporations “have a right to participate in a political process” but said they should do so without alienating “an awful lot of people.”

    “I’m not talking about political contributions,” he said. “I’m talking about taking a position on a highly incendiary issue like this and punishing a community or a state because you don’t like a particular law that passed. I just think it’s stupid.”

    Source:- NBC News

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    Facebook Removes 1,000 Fake Accounts Seeking to Sway Global Politics



    (Bloomberg) — Facebook Inc. said it removed 14 networks representing more than 1,000 accounts seeking to sway politics around the world, including in Iran and El Salvador, while misleading the public about their identity.

    Most of the removed networks were in the early stages of building their audiences, the Menlo Park, California-based company said Tuesday. Facebook’s announcement on Tuesday, part of its monthly reporting on efforts to rid its platforms of fake accounts, represents one of the larger crack downs by the company in recent months.

    “We have been growing this program for several years,” said David Agranovich, Facebook’s global threat disruption lead. “I would expect to see this drum beat of take downs to continue.”

    In one example, the company removed a network of more than 300 accounts, pages and groups on Facebook and the photo-sharing app Instagram that appear to be run by a years-old troll farm located in Albania and operated by the Mujahedeen-e-Khalq opposition group. The group appeared to target Iran, but also other audiences with content about Iran, according to a report released by Facebook.

    The group was most active in 2017, but increased its activity again in the latter half of 2020. It was one of a handful of the influence campaigns that likely used machine learning technologies capable of creating realistic profile photos to the naked eye, Facebook said in the report.

    The company also removed 118 accounts, eight pages and 10 Instagram accounts based in Spain and El Salvador for violating the company’s foreign interference policy. The group amplified criticism of Henry Flores, a mayoral candidate in Santa Tecla, El Savador and supportive commentary of his rivals, the company said.

    The social media giant also took down a network of 29 Facebook accounts, two pages, one group and 10 Instagram accounts based in Iran that was targeting Israel. The people behind the network posed as locals and posted criticism about Isreali prime minister Benjamin Netanyahu, according to Facebook. The company also took down networks based in Argentina, Mexico, Egypt and other nations.

    Nathaniel Gleicher, Facebook’s head of security policy, said the company has improved its ability to identify inauthentic accounts, but said bad actors continue to change their strategies to avoid Facebook’s detection.

    ©2021 Bloomberg L.P.

    Source:- BNN

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