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OZAY MEHMET
CTP lost the early election on April 19 for two reasons: economic mismanagement and increasing worry about the Talat-Chistofias talks. Next in line after the defeated Prime Minister Ferdi Sabit Soyer may be President Talat himself, up for election in twelve months’ time at the latest.
Turkish Cypriot voters showed their disapproval of the economic policy, or rather lack of it, of the CTP administration by kicking out all three of their ministers responsible for the economy: Ahmet Uzun (finance), Erdogan Sanlidag (economy and tourism) and Ozkan Murat (interior and housing).
The Soyer government was particularly inept in its handling of the latest stage of the economic downturn in the aftermath of the global financial crisis. It had plenty of warnings at the end of summer 2008 that the crisis was approaching, but it chose to do nothing. Its only strategy was to call an early election, expecting that it might do better now than later.
Instead of tax relief and expansionary public works projects and job creation, Soyer opted for a political gamble. His government, in particular the defeated ministers, had no vision and no economic programme. The voters kicked them out and the Soyer government got what it deserved.
Hopefully, within the next 30 days, the incoming government will mount on an aggressive economic programme. That is what the electorate is demanding. And the people want it now.
What are the options? First, the construction sector and the housing market must be revived based on an action plan to be worked out jointly in consultation with major stakeholders. Likewise, the tourism sector must be boosted by creating a new and independent tourism board in place of the dysfunctional Tourism Ministry.
Job creation must be addressed head-on with appropriate monetary and fiscal policy incentives. Micro credit opportunities for small enterprises must be provided, public investment projects implemented jointly with the Turkish Aid Office.
The project to import 75 mln tons of Turkish water a year from Anamur must be given urgency. Tourism expansion and industrial growth are meaningless without adequate water supply.
Likewise, electricity, highways and other public works must be implemented for the economic development of northern Cyprus. Enabling tax and investment regulations must be enacted and managed by an efficient bureaucracy.
Public sector reform can no longer be delayed. The people in northern Cyprus have had enough of inefficient government offices, over-staffed and rewarded with inflated salaries. Public servants must be just that – serving the public, not the other way around.
Over and above the economic message, the voters last Sunday signaled their anger at the lack of progress over the Cyprus Problem. People feel betrayed by the EU that had promised to end the isolation of northern Cyprus, and they are angry at both Talat and Christofias who look increasingly like past leaders. Elitism in politics must end. People want solutions.
In the weeks and months ahead, the new team of UBP will be at the helm. Their performance will be closely watched. The Turkish Cypriot electorate has demonstrated an impressive capacity for rational behaviour. Voters are fed up and they have no tolerance for incompetence at the highest political level.
Ozay Mehmet is Dean, Faculty of Business and Economics, at the Eastern Mediterranean University.
