Turkey’s Cool-Headed Finance Minister

Mehmet Simsek is not your typical Turkish politician. For one thing, it is hard to find people who speak badly of him. Mention his name to anyone, from taxi drivers to journalists, and you will be inundated with accolades describing his honesty and intelligence. Given the challenges facing the Turkish economy, these are the types of qualities one would hope for in a finance minister.

Of those challenges, many observers believe corruption is the biggest. A series of damning allegations targeting president Recep Tayyip Erdogan and his closest associates have rocked the Turkish political spectrum. The lack of any formal investigation has led to many prominent regional journalists asking whether the rule of law remains intact in Turkey. Not the most encouraging debate for investors to see unfold in a delicate emerging market.

“Corruption in Turkey is not a negligible problem,” says Simsek over a modest cup of Nescafé in his carefully appointed office in Ankara. However, Simsek argues that the scale has been exaggerated. “Like many other countries, you may have corrupt elements but corruption has actually declined in the last decade.”

The allegations against Erdogan’s allies, including claims that business associates close to the president helped Iran avoid international sanctions, were “politically motivated”, says Simsek. “While it doesn’t mean that we are perfect or done with these types of issues… no, that is not the case.”

Despite the gravity of the allegations, Erdogan’s Justice and Development party (akp) won key municipal elections. Erdogan himself won the Turkish Republic’s first direct presidential election in August. In the subsequent cabinet reshuffle Simsek kept his post: a sign that Erdogan is happy with the way he is handling the economy, despite the recent fall in growth.