$10,000 Per Capita Income?

BY ABDURRAHMAN YILDIRIM
SABAH- As stated in its new program, the government has set a target of $10,000 per capita income. Last year's per capita income was $5,482. So, in five years this figure is set to almost double. $10,000 is of course a bold and attractive target for a country where per capita income in the early `90s was only about $1,000. It we reach this goal, it would be great, and not only for the country and our people.

The most striking part of the government program is the high rate of growth needed to produce $10,000 per capita. But how will that happen, or what are its prospects? I should say at the beginning that though the government is governing well, its choices or work may not be enough to continue our current high growth or push it up to 7% or more. Because our economy has become integrated with the world through financing and foreign trade. In other words, things in the world at large also have to go well. It's a prerequisite for our high growth that international markets aren't on the decline. This would, of course, be a streak of good luck.

Such good luck would also include our not being hit by an earthquake, a drought of several years, or getting thrown into war.

In fact this is also necessary for the continuation of capital inflow, financing the current account deficit and for keeping the dollar exchange rate, which is very important for reaching the targeted per capita income, stable. Market softening has an important place in boosting the per capita income in dollar terms. High growth will be ensured, but the exchange rate won't rise.

In fact, the government has ensured its $10,000 promise with the correction of national income. The Turkish Board of Statistics (TUIK) is doing this work. And it will probably announce it next year. National income will presumably rise 25-40%, which means an increase of $1,500-2,000 per capita. In 1990 for instance, an increase of 37% was ensured in per capita income through annual growth. And as there's a similar increase now, hitting $10,000 per capita income in 2013 is no pipe dream.