the editor's notebook

Haluk Tükel
Secretary General of TÜSİAD

TÜSİAD: NEW RESPONSIBILITIES IN A NEW ERA

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  TÜSIAD's identity

TÜSİAD, established in 1971, is an independent non-profit organisation dedicated to the sound development of a competitive market economy and a democratic society in Turkey. Because of the size and quality of its voluntary membership, and its outspoken policies, TÜSİAD has become the voice of big business. Thus, it has established itself as one of the country's key economic organisations. The Association's financial independence ensures its political independence. Empowered by such independence, TÜSİAD promotes universal business ethics, market competition and rapid industrialisation through technological innovation and international economic integration. Consequently, TÜSİAD represents the leading edge of free enterprise in Turkish society, and has assumed the responsibility of monitoring the direction of economic and social progress in the country. In support of these aims, TÜSİAD communicates its views and recommendations directly to the parliament, the government, to foreign states, international organisations and to the public at large through the mass media.
TÜSİAD was built on the principle that a social accord between the private sector, wage-earners and the government in the quest for national development was compatible with the goal of making Turkish business fully competitive in the global economy. At the time of TÜSİAD's birth, Turkish society was suffering from political and social instability, hence its project found resonance in important sectors of the public.


TÜSİAD-government relationship

TÜSİAD's relationship with successive governments is the story of 25 controversial years. The lack of any institutional relations between government and business compelled TÜSİAD to rely frequently on the mass media to act as a pressure group.
Two theoretical approaches are usually offered to explain the role of professional business organisations in the political *arena. The first is the liberal-pluralist approach where business organisations are excluded from the political decision-making process and can only exert pressure on the government through lobbying activities; the second is the corporatist approach whereby business and labor collaborate with the government before macro decisions are made.
Since Turkey has inherited the strong centralised state tradition of the Ottoman Empire , the political elites have never considered business to be an equal partner in the whole policy-making process. Consequently, most of the major legislation is initiated by the political elite without seeking prior consultation with business on the form and content of legislation. On the contrary, rather than being responsive to their demands, the Turkish government corporatized most business organisations in order to control them. The lack of institutional channels to the legislature, coupled with the quasi-absence of a politically influential civil society, explain the continuing importance of personal relations and an extensive use of the mass media.


TÜSİAD's new mission

The Second Article of the TÜSİAD Statute, stating the objectives of the Association, was modified during the 26th General Assembly. The new mission reassesses the role of TÜSİAD from an historical perspective.
The dominance of the state in the economy was ideologically challenged by TÜSİAD from its foundation until the 1980s. For ten years, TÜSİAD has advocated the implementation of a private sector market economy to improve economic efficiency and foster economic development. By the mid-1980s, successsive governments adopted the principles of a market economy. Financial markets and the foreign exchange regime were liberalised under important structural reforms. Nevertheless, the institutional and legal arrangements of the market economy have yet to be worked out, especially in view of Customs Union with Europe and the need to further close the structural gaps with the European Union.
Consequently, the new mission statement of the Association heavily underlines the leadership role that the business community should assume to help speed up the economic and social progress of Turkey and to consolidate democratic rule for Turkish society.


A period of transition for TÜSİAD

In 1987, TÜSİAD became a member of the Union of Industrial and Employers' Confederations of Europe which speaks for the European Business and Industry. The year 1987 also punctuated the beginning of a new era of young TÜSİAD presidents. This is the second generation gradually succeeding the founding fathers of the Association. Looking from an historical perspective, the post-1987 period reflects a fresh approach characterised by a new and radical criticism of the governments in place, and the introduction of European principles to the macro management criteria in the quest for economic and social stability.
In spite of the important structural reforms implemented in the country during the 1980s, such as the opening up of the economy to foreign trade and the liberalisation of the financial system, successive governments pursued unstable macro economic management policies which have produced excessive public deficits and a high rate of inflation. TÜSİAD's criticism of economic policies was severe and uncompromising, clearly at odds with the formerly more prudent tradition of discourse.
This oppositional stance from TÜSİAD was vindicated by the the severity of the 1994 economic crisis and the macro economic imbalances that the country suffered from in 1995 while completing the Customs Union with the European Union. TÜSİAD's criticism was supported by the general public, and warnings from academic circles.
TÜSİAD is a unique Non-Governmental Organisation (NGO), representing the Turkish private sector from an entirely independent political standpoint. The complexity of Turkey's geopolitical situation led recently to the fragmentation of the political scene following the December 24th general elections last year. In an appeal to the public TÜSİAD argued that the parliamentary arithmetic offered the opportunity for a compromise between center right political forces. Only in this way is it possible to create an atmosphere of national reconciliation to solve the urgent problems of the economy, to carry out economic and social reforms, to harmonise policies and regulations for Customs Union and to reach a solution to the problem in the South-East.
The restructuring of TÜSİAD over the last years is characterised by a conscious effort to reshape the Association from being purely a "think-tank" to being a sophisticated Confederation of Industry and Services. This way it will have a positive influence on the legislature and political process in Turkey through an institutionalised government-business relationship.
 
     
 
 
 

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Privateview: Winter 1996