Institutional Reforms Commission Report from Six Tables — 'Corporate Reforms Commission' Report from the Six Tables

The Institutional Reforms Commission, which was formed at the six table, announced the report that foresees changes in the structure of institutions in the field of economy.

The following statements were included in the announced report: “Democratic societies strengthen their power; They derive their traditions and acquis from mature institutions, solid rules based on a participatory approach, policies compatible with sustainable development goals, and competent, qualified and honest staff.

Transparency and accountability in the use and distribution of public resources is an area that can never be compromised, and this is guaranteed by the separation of powers, the rule of law and the equality of all before the law.

The search for a parliamentary system, which has been going on since the 1800s, was crowned with the establishment of the modern Turkish Republic, and except for the coup periods, the administrations in our country got their power and legitimacy from the parliament. However, the freak Presidential Government System, which we have started to experience since 2018, has caused a great destruction in all areas, especially the management model of the state, its institutional structure, law, fundamental rights and freedoms and the economy. In this monstrous system, the Separation of Powers has left its place to the Union of Powers, institutional structures and capacities have been destroyed, competence, merit and honesty have been destroyed, and our country has come under the command and command of a single person, in the hands of inadequate supporters. Essentially, the current picture is a landscape of non-management rather than management. The result of this is instability, high cost, unemployment and getting poorer day by day.

The deterioration in the institutional structure especially hinders Turkey's adaptation to the changes in the world economy, weakens the economy's ability to withstand external influences, and takes the country's place and effectiveness back in the world with each passing day, aside from taking advantage of opportunities.

The solution to all these problems; From the urgent transition to the Parliamentary System, the separation of powers and the establishment of the rule of law, the strengthening of the entire institutional structure, especially the economy, the development of a public management approach that includes all segments of the society within the framework of strategic goals, and the development of a public management approach based on consultation, common sense and coordination is to be used and to return to policies based on reason and science.

Our goal is to get our economy out of the severe depression it is in, to bring peace and prosperity to our nation, and to make our country one of the respected and developed countries of the world.

In line with this goal, six political parties are carrying out a comprehensive study. The "Institutional Reforms Commission", which was decided to be formed by the leaders as a part of these studies, focused on the determination of the real situation in public finances and future liabilities, the functionalization of the Economic and Social Council, the assurance of the independence of the Central Bank, and the establishment of an institutional structure responsible for long-term strategy and planning. assigned to work.

We respectfully submit this study, which was prepared with full agreement by our commission within the framework of this assignment, to the public's appreciation.

DETERMINATION OF THE ACTUAL STATUS OF PUBLIC FINANCE AND FUTURE LIABILITIES

After the freak Presidential Government System passed, irregular, arbitrary and non-transparent practices increased in every field.

The deep-rooted institutions of the state were destroyed, qualified and experienced bureaucrats were eliminated, and incompetent appointments were made to critical positions based on loyalty to the government.

The line between the state and the party has blurred, and loyalty to the Palace has become the basis, not merit, in the administration.

As a result of the great destruction experienced in institutional capacity, a severe management crisis emerged.

The Hollow Public Procurement System; arbitrary, promiscuous privatizations; Public-Private Partnership model, which is distributed through non-transparent tenders and mortgaging our future with uncountable guarantees; Parallel budgetary practices such as the Turkey Wealth Fund and illegal selling of the Central Bank's reserves have placed the public finances under uncontrolled, open and hidden heavy burdens, and the fiscal discipline has deteriorated. Confidence in public accounts has rapidly eroded.

One of the institutions whose institutional capacity and credibility was most severely damaged was TURKSTAT. The quality, internal consistency and parallelism of Turkstat data with independent calculations has deteriorated significantly. There is no confidence left in basic statistics such as inflation, unemployment, growth, poverty and income distribution.

This situation causes outrage on the grounds that all our citizens, especially our employees, retirees, widows and orphans, have lost their rights.

Even worse, tampering with data makes the correct diagnosis and treatment of problems in the economy impossible.

Not knowing exactly the damage in public finances and playing with statistics cause serious uncertainty in the economy. This leads to a severe crisis of confidence in the economy. Indeed, the country's risk premium (CDS) has exceeded 800 basis points. This is the highest risk premium in the world, in our league.

Our country misses the opportunities offered by the global economy. The internal resilience of the economy is decreasing, our nation is being crushed by the high cost of living, and is rapidly getting poorer.

The irrational and unscientific interventions made to get out of the vicious circle of interest, exchange rate and inflation, resulting from the irrational and unscientific practices of the government, further increase the drift, uncertainty and insecurity.

Practices such as the Currency Protected Deposit, which is a copy of the Convertible Deposit (DÇM) that crashed the economy in the 1970s, impose uncertain costs on the nation's Treasury and mortgage the future of the country.

As the Six Table, we know that the destruction caused by the current Government in the economy is much more severe than it appears today.

Based on these evaluations, it is one of the most urgent tasks to determine all the open and hidden liabilities and risks that we will encounter when we start our work, and to quickly identify the data quality problems experienced in national statistics in a healthy way, accurately and completely.

In this framework, as soon as we come to power, our first task will be to establish a Situation and Damage Determination Committee of distinguished, qualified and experienced inspection personnel and experts, attached to the President. The committee will be equipped with full authority to obtain data and information from institutions.

The Due Diligence Committee will promptly report data quality issues, public harm, risks and all implicit and explicit obligations to the President. Relevant institutions, especially the Strategy and Planning Organization, will take the necessary steps within the framework of these accurate and reliable data and determinations. Irregularities and illegal situations identified during the committee's investigations will provide important input to the work of the State Supervisory Board, the Parliamentary Corruption Investigation Commission and the Court of Accounts, which will be tasked with investigating and investigating corruption.

Turkey is at the dawn of a new era in which rule instead of rulelessness and accountability instead of arbitrariness will prevail.

This beginning will be the assurance that zero tolerance for arbitrariness, irregularity and corruption will be shown in the upcoming period, waste will be prevented in the public sector, no one's rights will be defeated by statistics, the country's resources will be used in the most effective and efficient way for the welfare of our nation, and will greatly contribute to restoring confidence in our country.

III. BRINGING FUNCTIONALITY TO THE ECONOMIC AND SOCIAL COUNCIL

The Economic and Social Council was established to address the country's problems through dialogue and reconciliation, to ensure the common interests of all segments, and to institutionalize cooperation and include it in the decision-making mechanism.

Although it has been regulated that the Council will meet every three months at the invitation of the President (until 2018, the Prime Minister, then the President), the IHC has convened only 2009 times in the 14 years until 19, and has never met since 2009.

The IHC, which has not been able to meet regularly and take a significant decision since its establishment; While it was able to present the reports it prepared according to the Law No. 4641 to the government, as well as the Parliament, the President and the public, with the 2010 Constitutional Amendment, it turned into a structure that only offers advisory opinions to the government.

SPO (later the Ministry of Development) carried out the secretariat activity until 2018. As the Council members, its structure, working procedures and principles, meeting period were abolished with the Decree Law dated 2 July 2018 and numbered 703, and the necessary regulation has not been made by the President to date, the IHC is inoperative. Currently, the secretariat duty is implicitly in the Presidency.

It is possible to hold IHC meetings on the basis of paragraph (f) of Article 4641 of the Law No. 3 until the relevant legal regulation is made. Secretariat operations; Since it has the experience and archive of the State Planning Organization and the Ministry of Development, and is currently affiliated to the Presidency, there is no obstacle to its execution by the Strategy and Budget Department.

In this framework, we will convene the Economic and Social Council as soon as we come to power.

Actions and Duties to Increase the Functionality of the Council

Although the Law No. 4641 has determined the purpose of the IHC in a broad framework such as ensuring social consensus and cooperation in the formation of economic and social policies, considering the components of the previous IHC, it is seen that it is predominantly designed for working life. In this framework, parallel to its purpose in the Law, IHC's transformation into a structure that increases reconciliation and participation between economic and social segments will be ensured in line with the Sustainable Development Goals announced by the United Nations, beyond its traditional aim of establishing harmony and cooperation in working life.

We define the IHC as a platform where policy proposals of different segments are evaluated, consensus and dialogue are achieved on issues that cross economic and social sectors such as economic stability, efficiency in resource allocation, efficiency, increasing competitiveness, poverty and inequality in income distribution.

The IHC in the new structure; It is important to make studies and suggestions that will enable the adaptation of international good examples to our country on issues such as increasing agricultural production, ensuring food safety and sufficiency, ensuring green and digital transformation, accelerating industrial and technological development, environment, employment, social life and youth, regional development.

Council Components and Working Structure

In order to ensure effective social dialogue and with a conciliatory approach, the sections of the IHC will be elected not based on their closeness to the government and political concerns, but on the basis of their representation power, and fair representation will be ensured among the members.

Chairman of the Council; During the transition period, the President will be the Prime Minister, and when the Parliamentary system is passed, the Vice-Presidents appointed by the Presidents will preside over the meetings they cannot attend.

of the council;

One by the Union of Chambers and Commodity Exchanges of Turkey and the Confederation of Turkish Employers' Unions,

One by the Confederation of Turkish Trade Unions, the Confederation of Rights Trade Unions and the Confederation of Revolutionary Trade Unions,

One is the Confederation of Turkish Tradesmen and Craftsmen and the Chambers of Agriculture of Turkey.

There will be three vice-presidents by the Union.

The vice-presidents will serve for a term of one year on a rotating basis.

Council;

Relevant Ministers, Undersecretaries, Presidents,

Presidents of the Confederations of Workers, Employers and Civil Servants Unions,

Presidents of Chambers, Commodity Exchanges, Parliaments, Unions and Associations authorized to represent public or civil professions,

President of the Confederation of Turkish Tradesmen and Craftsmen,

Faculty Members,

Representatives of Women, Youth and Disadvantaged Groups,

It will consist of other public officials and NGO heads to be determined by the President/Prime Minister.

The Council will meet every six months, one before the start of the budget process.

The secretariat services of the Council will be carried out temporarily by the Presidency's Strategy and Budget Department, and this task will then be transferred to the Strategy and Planning Organization. A special unit on the subject will be established within the organization.

Working groups on various issues such as working life, industry and technology, agriculture, environment, social life, disadvantaged groups, women and youth will be formed within the Council, and participation of all public and civil parties related to the subject will be ensured and they will be provided to present their views and suggestions to the Council. In addition, these studies will be used to provide input to the budget, annual programs and plans.

The opinions and suggestions of all participants on the issues related to the IHC's mandate will be reported by the secretariat and conveyed to all participating units and the TGNA Plan and Budget Committee, including the final decisions, if any.

IV. STRATEGY AND PLANNING ORGANIZATION ESTABLISHMENT

The world economy has entered a period in which uncertainties, risks and opportunities are intense. In our country, there is a strong need for an institutional structure that will create strategies compatible with the requirements of this period.

On the other hand, it is necessary to switch to a management approach based on short, medium and long-term plans and programs and based on inter-institutional coordination, instead of the policy development and decision-making approach that became widespread after the freak Presidential Government system, which is not based on daily, uncalculated, data and analysis, and far from inter-institutional cooperation. it is very clear.

In this framework, we will immediately establish the Strategy and Planning Organization, which is directly subordinate to the President at the beginning and to the Prime Minister when the Strengthened Parliamentary System is passed.

This organization, integrated with global developments, with a holistic approach that will include all segments, in the axis of sustainable development goals; will prepare strategies, reforms, plans and programs on a national, regional and sectoral basis.

These studies aimed at increasing the development level of our country, the welfare and peace of our nation; will be realized with an understanding based on efficiency, innovation and technological development.

The Organization will cooperate closely with academia, NGOs and the private sector in its work, and will establish temporary and permanent specialized commissions in order to benefit more from their knowledge and experience.

Duties:

Advising the Government in setting and implementing economic and social objectives in the macroeconomic, sectoral and regional context,

To prepare, monitor and evaluate long-term strategies, plans and programs,

Developing options that include sustainable targets for decision makers by creating a model infrastructure that will ensure consistency in decision-making processes,

Developing reform proposals that will provide institutional and structural transformation in close cooperation and coordination with the public, private sector, non-governmental organizations and academia with a medium and long-term perspective,

To fulfill the central harmonization function that will control the compliance with the targets determined in the plans and programs by determining the procedures and principles of the strategic plans of public institutions.

Corporate Structure

The organs and structure of the institution will be designed to establish a permanent and living relationship with all stakeholders.

The Strategy and Planning Organization will consist of the following bodies:

Central Organization

High Planning and Coordination Board (YPK)

Economic and Social Council Secretariat

Foreign Representations (EU, OECD, WTO etc.)

Special Expertise Commissions

Our aim is to establish a dynamic organization that will avoid unnecessary bureaucracy and approach issues at a strategic level.

With this understanding, the Central Organization of the Institution will be formed in a flexible framework in a way that will adapt quickly to dynamic developments.

Corporate Operation

Strategy and Planning Organization activities; based on participation, common sense and consultation, focusing on the root causes of problems, in effective cooperation with stakeholders, closely following local, national and international developments and dynamics.

In this context,

Permanent and temporary special expertise commissions will be established in a dynamic structure in the strategic sectors determined in the plan, and a working environment intertwined with the business world, academia and non-governmental organizations will be provided.

Planning sector experts will make regular field visits as an input to their work, and exchange ideas with organizations in their sectors.

Development Agencies, which will be structured to act as an engine in the implementation and development of the understanding of local development; It will report to the Organization on an annual basis the results of policy bundles developed for local problems in order to create complementarity and synergy between national, regional, urban and rural development to be used as input.

Local and foreign experts will be employed on a contractual basis, limited to the life of the project, and their experiences will be utilized in policy making, research and decision processes.

Policies and regulations of international institutions that will affect our country's international competitiveness will be closely and appropriately monitored with the help of a limited number of foreign representatives, and new regulations and developments will be reported in a way that will form an input for policy design.

The Organization will work in close cooperation with all public and private institutions and will have the authority to directly collect all the information it needs from the relevant institutions, and all institutions will be obliged to provide the requested information as soon as possible.

High Planning and Coordination Board (YPK)

Coordination between public institutions and participation of relevant stakeholders in decision processes in an institutional structure will be ensured through YPK.

Under the chairmanship of the President/Prime Minister, YPK consists of the Ministers of Treasury and Finance, Trade, Agriculture and Forestry, Industry and Technology, Energy and Natural Resources, Transport and Infrastructure, Environment-Urbanism and Climate Change, and the Undersecretary of the Strategy and Planning Organization. According to the agenda, other Ministers, Undersecretaries and Presidents may also be invited to the meetings.

The main principles of macroeconomic, financial, sectoral and incentive policies are discussed at the YPK. Regulations in these areas are sent to the YPK together with the impact analyzes prepared by the relevant units. Drafts that have not been approved by the YPK cannot be submitted to the TGNA or put into practice.

The determination of the sectoral distribution of public investments, public investments above a certain amount is decided by the YPK.

Business and cooperation models and public-private cooperation investments for large-scale projects that will increase the competitiveness of the economy, reduce foreign dependency, and that will be realized with the contribution of the state, especially in the manufacturing sector investments that require high capital, can only be implemented with the decision/approval of the YPK.

V. STRENGTHENING THE CORPORATE STRUCTURE OF THE CENTRAL BANK OF THE REPUBLIC OF TURKEY AND SECURING ITS INDEPENDENCE

Ensuring price stability and financial stability are among the basic building blocks of a healthy and sustainable growth and development.

It is of great importance that the Central Bank of the Republic of Turkey (CBRT) be a reputable and effective institution that independently uses its instruments and takes decisions within the framework of the inflation target and exchange rate regime determined together with the government, in order to reduce inflation to low single-digit values permanently.

In this direction;

The CBRT will focus on price stability, which is its main task, and carry out its activities in a way that will contribute to financial stability. The Central Bank will not be burdened with responsibilities other than price and financial stability.

Legislative amendments concerning the Central Bank's main duties, instrument independence and senior appointments will be made by a qualified majority in the TGNA.

The appointment processes of the President and senior management will be redesigned on a basis of transparency, competence, merit and common sense, and the President, Vice-Presidents and Monetary Policy Board (PPK) members will be appointed for a period of five years.

The President will be appointed by the decision of the Council of Ministers, and the Vice-Presidents will be appointed by a tripartite decree upon the proposal of the President.

Before the President is appointed, it will be subject to a public evaluation at the Planning and Budget Committee.

The Chairman and PPK members can be appointed a maximum of two times.

Circumstances that allow dismissal before the deadline will be clearly determined in the Central Bank Law, and it will be ensured that the Chairman, Vice-President and Board members cannot be dismissed based on a regulation other than the CBRT Law.

In the appointments of the President, Vice-Presidents and PPK members; It will be required to have completed the economics, finance, business, banking and finance departments of the faculties that provide four-year education or to have at least a postgraduate education in these departments and to have a minimum of ten years of professional experience.

While determining the Bank Council, the members; A balance will be struck between the dominance of the dynamics of the finance, industry, trade and agriculture sectors.

Members of the Board of the Bank and PPK shall not engage in any work other than their duties in the bank, except for teaching without any fee or payment, if requested by the universities.

The CBRT's accountability that comes with instrument independence will be implemented in a way that covers all layers of society, and the transparency of decision-making processes will be increased.

In this context;

The TGNA Plan and Budget Committee sessions will be regularly attended twice a year, and the presentations, which will also be open to the press, will be broadcast live.

In case the inflation target is not met, the Bank will be provided to inform the Planning and Budget Committee of the Grand National Assembly of Turkey with a special agenda.

International foreign exchange reserves will be strengthened, arbitrariness in the use of reserves will be eliminated, and reserve management will be carried out in a transparent and accountable framework. Arrangements will be made to prevent practices similar to the non-transparent sale of international reserves. In any case, reserve sales will be announced to the public in fifteen-day periods at the latest.

Transactions regarding the sale of the Central Bank's reserves, known as 128 Billion Dollars in the public, and which are still ongoing, in an untransparent and devious way, will be subject to administrative and legal inspection, and any errors, irregularities, corruption and public losses will be followed up to the end.

Authorities, transactions and practices that allow monetary expansion by direct transfer of funds to the treasury, direct intervention in resource allocation through the provision of loans to the private sector, micro-intervention in the composition of banks' balance sheets, and practices contrary to the free exchange regime and floating exchange rate system will be terminated.

The Price Stability Committee, which has no functionality and interferes with the independence of the Central Bank and conflicts with authority-responsibility, will be abolished.

In order to monitor financial stability more effectively at the macro level, the institutional structure of the Financial Stability Committee will be strengthened, regular meetings of the Committee will be ensured, and the decisions will be announced to the public in detail.

Practices that will further strengthen the coordination between the CBRT and the Banking Regulation and Supervision Agency (BDDK) and ensure that monetary and credit policies are carried out more harmoniously will be implemented.

In line with the main function of macroprudential policies, it will be ensured that they focus on reducing existing risks and preventing risk accumulation. In addition, necessary structural adjustments will be implemented in areas such as the composition of the fiscal policy, managed prices, production structure, competition and productivity in order to support the fight against inflation.

Necessary work will be carried out to reintroduce qualified personnel who have been forced to leave recently to the Bank. High standards will be brought again in the recruitment criteria and training processes.

The headquarters of the CBRT is in the capital Ankara. The process of moving the bank to Ankara will be provided as soon as possible. Transactions of moving out of Ankara in violation of the Bank's Law and the public loss incurred after these transactions will be subject to administrative and legal inspection and the damages will be recourse to the relevant parties.