ICI President Bahçıvan: "Smart Medicine" Era, Not "Aspirin," Must Begin in the Economy

Mental Revolution and New Paradigms Erdal Bahçıvan, Chairman of the Board of the Istanbul Chamber of Industry (ICI), stated that in the current conjuncture of global uncertainty and accelerating technological transformation, Turkey's economic problems cannot be solved using methods from the 1990s.
Bahçıvan expressed that a "mental revolution" is necessary, moving away from past thought patterns to address modern challenges.
The Relationship Between Food Inflation and Interest Rates Analyzing the sources of inflation, Bahçıvan highlighted that while core goods inflation—which is directly linked to industrial production—has dropped to 17.7%, food inflation remains around the 30% mark, negatively impacting the overall economic outlook.
Defining food inflation as Turkey's primary issue, Bahçıvan argued that the biggest obstacle to interest rate cuts is not monetary policy, but rather deficiencies in agricultural policies.
Emphasis on "Smart Medicine" Treatment Stating that industrialists are forced to bear the costs of management errors in areas such as agriculture, rent, and education, Bahçıvan said, "We must no longer act with a general 'aspirin' approach, but with a 'smart medicine' treatment that focuses on the root of the problems." He added that the significant gap in food inflation between Turkey and OECD countries stems from structural issues, which continues to distort economic expectations.
Structural Reform and the Tax System Calling for reforms across a wide range of areas, from the tax system to water management, for permanent economic improvement, Bahçıvan stated that the current functioning of VAT has become a heavy burden on producers.
The ICI President emphasized that focusing solely on monetary policy to combat inflation would be insufficient, and radical changes in strategic areas such as agriculture and water management are inevitable for long-term stability.