CHP's Güldem Atabay: We Will Provide $500 Billion in Resources to SMEs Over 10 Years

New Industrialization Model and SME Support Güldem Atabay, the Republican People's Party (CHP) Deputy Chairperson responsible for Economic Policies, announced that the party is working on a new industrialization model designed to fundamentally transform industrial policies.
Under this model, Atabay stated that a total of $450-500 billion would be transferred to Small and Medium-Sized Enterprises (SMEs) over a 10-year period, amounting to approximately $40-50 billion annually.
She emphasized that these resources could be provided through existing budget possibilities and stressed the need for structural strengthening of the industry.
Atabay noted that Turkey's industrial structure is outdated, with competitiveness currently relying on low wages and a weak Turkish Lira.
She highlighted the importance of transitioning to production models based on digitalization and artificial intelligence.
Criticism of Inflation and Wealth Transfer Addressing the current inflation problem, Atabay argued that inflation does not stem solely from general excess demand.
She pointed out that the spending power of the wage-earning class is limited, and the real source of demand comes from segments of society benefiting from wealth transfers.
"If there is demand inflation, it comes from the segments to which you have transferred wealth.
You cannot reduce demand without addressing that.
As you increase interest rates, those segments continue to spend with the income they earn.
Inflation will only drop permanently when solutions regarding supply issues, productivity, and public investments are implemented simultaneously." Central Bank and Structural Issues Criticizing the lack of independence of the Central Bank, Atabay stated that political influence over economic management makes the fight against inflation more difficult.
She argued that correct steps in monetary policy were taken too late before the local elections and maintained that inflation can only be lowered through structural reforms, not just monetary policy.
The New Role of the Public Sector in the Economy Atabay noted that the role of the public sector in the economy needs to be redefined.
She said the state should move beyond being an entity that only intervenes during crises and instead become a body capable of setting long-term strategic plans.
She stated that the public sector should connect capital in Anatolia with digital infrastructure, strengthen port connections, and establish global trade networks.
Atabay added that the social cost of reducing inflation could be minimized through correctly directed social supports.