Posted on 04/02/2003 6:09:54 AM PST by 68skylark
Edited on 04/23/2004 12:05:28 AM PDT by Jim Robinson. [history]
How did we lose the loyalty of Turkey, and with it that much-wanted northern front for the war in Iraq?
It sure wasn't for lack of largesse.
Over the past four years, at the clear behest of the U.S., Turkey's troubled economy has received--via the International Monetary Fund and World Bank--more cheap loans than any other country on the planet. Since 1999, the IMF has approved some $30 billion in below-market funding for Turkey, making it one of the IMF's top clients. Over the same period the World Bank has lent Turkey $7 billion at subsidized rates, making it one of the bank's biggest customers, too. At every juncture, meanwhile, until Turkey's turncoat vote last month on troop transit for the Iraq war, the U.S. government had sent the message that Turkey was simply too strategically vital to be allowed to fail. And Turkey's politicians, knowing that the money would pour forth, kept coming back for more.
(Excerpt) Read more at opinionjournal.com ...
You still don't have a clue as to what the problem is do you? Anytime you put politicians in charge of an economy the economy goes straight into the tank. It doesn't matter who the politicians are, they could be Turkish or US the result is the same.
By proping up the politicians who caused the problem the US through the IMF makes the problem worse. IMF bankers are also politicians and do no better at managing economys than real politicians.
By asking the question "why can't these third world countries run their own economies with more competence?" you show a fundimental lack of understanding that is shared by politicians everywhere. That is that politicians or anyone can manage economies.
The US economy only does as well as it does due to minimal interference from gov't. It would be nice if US politicians would pay as little attention to third world economies. As it stands now, the third world is beginning to think that US policy is to intentionally ruin their economies by foisting loans on their corrupt politicians so that those politicians can stay in power and bleed the ordinary citizens.
It is a nasty cycle that no US politician seems capable of stopping. Indeed they don't even seem to understand the nature of the problem.
I guess not. Glad you're here to help clear this up. Take care.
If you understood the article you would understand that that would be the nicest thing we could do for "these backstabbers".
Giving corrupt politicians loans so they can buy the support they need to stay in power is the meanest thing we could do to "these backstabbers".
This is exactly what we have been doing. Not very nice are we?
The damage that foreign aid does to recipient countries economies is a hot button issue for me. Again, I apologize.
Of course. I am not talking about institutions. I am refering to government spending which creates a patronage system that keeps corupt politicians in power. All politicians do it to some degree. Third world politicians are champions at it.
All the guaranteed gov't loans the US gives to these people is spent on their cronies who help to keep them in power. The ordinary people get nothing but are expected to pay it back through higher taxes and cuts in gov't services. The IMF makes these policies manditory in order to keep the money flowing.
It is a fast track to unemployment, inflation, and runaway gov't spending. It happens time after time and no one cares or even shows any understanding of the problem.
The truth is the more money that is spent by gov't as a percent of GDP the lower the standard of living in that country. Gov't spending in third world countries is enormous thanks to US guaranteed loans.
Thanks for the note. Yeah, I'd very much agree with your first sentence -- that's been seen time and time again around the world.
You might have a good point with your second sentence -- I'm not sure. I'm not sure that US loan guarantees and aid is the cause of excessive government spending. Seems to me that governments can overspend even without our help. But maybe you have a point that easy financing from the US makes the problem worse.
No one can manage an economy. You can either leave it alone in which case it will prosper or you can meddle with it (creating barriers to trade, over taxing, excessive regulation, etc.) in which case it will not.
To the extent that the US economy is better than the Turkish one, broadly speaking the US meddles less and so yes the Turks could do better, primarily by doing less.
Treaty of Friendship Between Germany and Turkey
June 18, 1941
The German Government and the Turkish Republic, inspired by a desire to place relations between the two countries on a basis of mutual confidence and sincere friendship, agreed without prejudice to present obligations of both countries to conclude a treaty.
For this purpose the German Reich Chancellor appointed Ambassador Franz von Papen and the President of the Turkish Republic appointed Foreign Minister Shukru Saracoglu as plenipotentiaries, who, on the basis of full powers accorded them, have agreed on the following declaration:
Article I
Germany and Turkey bind themselves mutually to respect the integrity and inviolability of their territories and will take no measure that is aimed directly or indirectly against the other contracting party.
Article II
Germany and Turkey bind themselves in the future to communicate with each other in friendly manner on all questions affecting their common interests in order to bring about understanding on the treatment of such questions.
Article III
The foregoing treaty will be ratified by articles of ratification, which shall be exchanged forthwith in Berlin. The treaty enters into force on the day of signature and is effective from then onward for a period of ten years.
The parties concluding the treaty will agree at the proper time regarding the question of extending the treaty.
Drawn up in duplicate in the original, in the German and Turkish languages, in Ankara on June 18, 1941.
No, most third world gov'ts have a credit rating worse than mine. If they want to spend money they have to borrow it. They couldn't borrow a dime without US guaranteed loans.
If they default the US taxpayer picks up the tab. Sweet deal for the two-bit politicians in power but a vary bad deal for taxpayers in both the third world country and the US.
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