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What’s next for Turkey’s economy under 'new system'?

Turkey’s new governance model, narrowly approved by a disputed referendum, adds more uncertainty to the country’s continued economic downturn.

Merchants chat in front of a currency exchange office at the historical Grand Bazaar, known as the Covered Bazaar, in Istanbul, Turkey, January 12, 2017. Picture taken January 12, 2017. To match Insight TURKEY-ECONOMY/LIRA-RETAIL       REUTERS/Murad Sezer - RTSWSW7
Merchants chat in front of a currency exchange office in the historical Grand Bazaar, Istanbul, Jan. 12, 2017. — REUTERS/Murad Sezer

Following Turkey’s momentous constitutional referendum on April 16, Turkey’s best-selling daily Hurriyet trumpeted the arrival of a “new system.” Turkish voters, it said, sealed the end of “a parliamentary system implemented since 1923” in favor a new presidential regime.

The “new system” description is not an exaggeration. Turkey will indeed be in uncharted waters if the 51.4% "yes" vote gets an official validation amid allegations of serious irregularities and vote rigging, as well as the controversy of holding a plebiscite under a state of emergency. In its essence, the new system concentrates power in the hands of a single person, the president, doing away with the principle of separation of powers. Advocates of the shift, who care little about eviscerating democratic norms, argue that the new model will enable a more efficient governance.

The 18-article amendment package abolishes the prime minister’s office and hands its powers — in addition to other powers that diminish the role of parliament and curtail judicial independence — to the president. Because the president is no longer a neutral figure and can simultaneously head a political party, the first general and presidential elections under the new system — slated for November 2019 — will take place simultaneously. The amendments pave the way for a “party judiciary,” enabling the president to shape the High Council of Judges and Prosecutors by both appointing members directly and influencing those nominated by parliament.

In short, the new system deviates largely from the democratic norms of the West, of which Turkey is part of economically and through various multilateral institutions. Can the country maintain stability with such a system? The amendments won approval from only half of the electorate, which could forecast a problem of sustainability. The existing constitution, adopted in 1982, had the backing of 92% of voters, while the previous one was approved by 62% of voters in 1961. How will the new system function with a popular approval of 51%?

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