The Root of Erdogan's Problems

The Root of Erdogan's Problems

Last Friday, Turkish President Recep Tayyip Erdogan published a defiant Op-Ed in the New York Times, warning the Trump administration not to continue pressuring his government to release an American pastor jailed in Turkey.


Trump, unimpressed, slapped fresh tariffs on Turkey that helped push the country’s currency, the lira, down nearly 20 percent against the US dollar. In the past few days, the bleeding has only continued – with the lira touching historic lows as investors head for the exits in the once booming economy. Even after stabilizing a bit this morning, the currency has still shed a quarter of its value this month.

But troubled relations with the US aren’t the main reason for Erdogan’s economic problems. Nor are the “economic terrorists,” international conspirators, or social media opponents that Erdogan has lashed out at in recent days.

Trump’s action only exacerbated a crisis that is largely the result of Erdogan’s own policies.

For years, Turkey’s economic growth has depended on foreign creditors who have lent money to his country’s government, banks, and businesses. That growth, in turn, helped to underpin Erdogan’s political popularity.

But as a decade long boom subsided, the effects of Erdogan’s politically-motivated policy of pumping loads of cash through the economy – while dismissing inflation as a conspiracy rather than a consequence – began to spook those creditors, making Turkey’s economy increasingly fragile.

Brushing off the advice of his technocrat advisors and appointing his thinly-qualified son-in-law to run much of the economy worsened matters still. As investors pull their money, the lira is plummeting in value, making it increasingly hard for domestic companies and banks to pay back foreign creditors. Now, tipped further into the abyss by the dust-up with Trump, a full blown economic crisis looms and yet Erdogan is digging in his heels.

So where does he go from here? When it comes to the diplomatic spat with the US, he can probably find an artful way to fold. Defiant though he may be, Erdogan has gone from lion to lamb before. Back in 2015, he seemed ready to face down Moscow after Turkish forces shot down a Russian jet over the Turkish-Syrian border. But after a scolding from NATO and especially some economic pressure from Vladimir Putin, he issued one of the more abject apologies that we’ve seen from one leader to another.

The bigger question is whether the increasingly isolated and authoritarian Erdogan can back away from an economic policy built on nationalist pluck and paranoid conspiracy theories. If not, then irrespective of what happens between Erdogan and Trump, Turkey’s recent troubles are only a prelude to greater pain ahead.

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The European Union is, for better or worse, the most ambitious experiment in human history in institutionalized multinational cooperation. Its success depends on the willingness of its members to abide by its rules.

In recent years, the populist-nationalist governments of former Communist bloc members Hungary and Poland have flouted some of those rules in order to boost their own popularity with citizens suspicious of the EU's liberal values on issues like immigration and minority rights. In response, the EU has scolded these "illiberal" governments and threatened forceful action – so far without much effect.

The fight between EU institutions and Poland and Hungary has escalated.

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Ian Bremmer is joined on GZERO World by artificial intelligence scientists Kai-fu Lee, who recently wrote about how AI will change the world over the next two decades, precisely to talk about AI's future. After this week's Facebook debacle, how can we align interest to regulate AI-driven algorithms? Will AI steal all our jobs? And what should we do to learn from AI to improve our lives before it gets smarter than us?

Watch this episode of GZERO World with Ian Bremmer: Is a robot coming for your job? Kai-fu Lee explains AI

US elections officials have always persuaded losing candidates that they've, ahem, lost. Now it's worse because there's a new paradigm, according to former DHS and Election Assistance Commission official Matt Masterson, policy fellow with the Stanford Internet Observatory. Candidates that won't accept defeat regardless of the margin or evidence of fraud, he says, are undermining trust in the system — and election officials are ill-equipped to deal with this problem.

Matt Masterson made these remarks during a live Global Stage event, Infodemic: defending democracy from disinformation. Watch the full event here: https://www.gzeromedia.com/global-stage/virtual-events/disinformation-is-a-big-problem-what-can-we-do-about-it

Who's most responsible for spreading misinformation online? For Ginny Badanes, senior director for Democracy Forward at Microsoft, the problem starts with those who create it, yet ultimately governments, companies and individuals all share the burden. And she's more interested in what we can do to respond.

Ginny Badanes spoke at a live Global Stage event, Infodemic: defending democracy from disinformation. Watch the full event here: https://www.gzeromedia.com/global-stage/virtual-events/disinformation-is-a-big-problem-what-can-we-do-about-it

Some of the worst sectarian clashes since Lebanon's 15-year civil war (1975-1990) broke out in Beirut this week between supporters of Hezbollah and Amal, both Shiite political parties, and Christian, far-right Lebanese Forces. Shiite protesters were rallying against the state probe into the Beirut port blast, which occurred last year. They say authorities were singling out Shiite politicians for questioning and blame. In this video, watch Ian Bremmer's conversation with Lebanese journalist and author Kim Ghattas on GZW talking about the future of Lebanese politics and sectarianism in the county after the after the blast. It was originally published on August 19, 2020.

In Lebanon, "a majority (are) united in wanting a different future, a future that is non-sectarian, that is non-corrupt, that provides prosperity, justice, dignity for people," journalist Kim Ghattas told Ian Bremmer on GZERO World.

In this interview, Ghattas discusses the opportunity that could arise from the tragedy of the Beirut explosion which killed 200 and injured thousands more. The Lebanese are "fed up" with the militant group Hezbollah, she tells Bremmer, and want to strive for a government that better resembles the diversity and cosmopolitan nature of its citizens.

Watch the GZERO World episode: Lebanon Post-Blast: Rage in the Streets of Beirut.

Some of the worst sectarian clashes since Lebanon's 15-year civil war (1975-1990) broke out in Beirut this week between supporters of Hezbollah and Amal, both Shiite political parties, and Christian, far-right Lebanese Forces. Shiite protesters were rallying against the state probe into the Beirut port blast, which occurred last year. They say authorities were singling out Shiite politicians for questioning and blame. Below is our original piece on the Beirut port explosions published on August 5, 2020.


The twin explosions at Beirut's port on Tuesday were so powerful that the aftershocks reverberated as far as the Eastern Mediterranean island of Cyprus, 150 miles away. The specter of fire and smoke was such that many suggested on social media that Beirut had experienced a nuclear blast.

In the days ahead, more details will come to light about why a deadly cache of materials was haphazardly stashed at a port warehouse, and why Lebanon's government failed to secure the site. So, what comes next for crisis-ridden Lebanon?

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Jon Lieber, head of Eurasia Group's coverage of political and policy developments in Washington, shares insights on US politics:

What does it actually mean to cut $1 trillion from the Democrats' $3.5 trillion social spending bill?

President Biden has proposed one of the most ambitious expansions of federal spending in recent memory. If he gets everything he wants, it would probably be the largest expansion of government since the Great Society, but he's not going to get everything he wants. Democrats have basically said they cannot do all $3.5 trillion in spending. They're probably going to end up around $2 trillion. So what gets cut? Well, we don't know yet. There's kind of two ways to go about this. They could either cut the number of programs that have been proposed, doing fewer things with more money on a permanent basis, or they could try to do more things, each program getting less money and potentially doing them on a temporary basis. So, a future Congress would have to extend it. What does this mean for you? Well, a lot of the money in here is designed to go directly to families, either in the form of cash payments, through the tax code, the Child Tax Credit and the Earned Income Tax Credit, or subsidies for things like child care, early childhood education, and community college. And if you cut these things back, it means less money is going to go out the door to the American people. It also means less tax increases to finance it. So the implications of what's being proposed could actually end up being a big deal for a lot of Americans who would qualify for benefits under these new programs.

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