Istanbul-based economist Mustafa Sonmez believes the figures quoted by Erdogan do not refer to any investments that make life easier for the people while Southeast Industrialists and Businessmen Association (GUNSIAD) chairman Sah Ismail Bedirhanoglu tells bianet that non of the public investments made in the region have led to observable results.
"Investments that appear to have been made in the region" explained Sonmez, "are military and administrative expenses that have either benefited the western regions of Turkey or assisted to sustain a State of Emergency (OHAL) in the region.
According to Bedirhanoglu for a true "atmosphere of investment" to exist in the region, the ongoing environment of conflict needs to come to an end.
"The environment of conflict should end" he said in an exclusive interview. "We said this repeatedly before: The [outlawed Kurdistan Workers Party] PKK has to abandon armed violence and the use of violence as a method."
Bedirhanoglu believes the problem needs to be solved through democratic channels and added to his appeal to the PKK says "the state should not use the excuse of violence and turn to practices such as OHAL, Anti-Terror Law or Martial Law. An anti-democratic approach will create problems. For economic abundance, democracy is a must".
Sonmez: Civilian investments extremely low
Economist Sonmez noted that the 7.5 quadrillion public investment mentioned by Erdogan is the investment made under the ruling Justice and Development Party (AKP) and that the East and Southeast regional investment only had a 10-15 percent share in this.
"An important part of this amount is energy and transportation investments. There are also administrative investments made for the Ministry of Defence" he said, adding, "in particular the energy produced under the Southeast Anatolia Development Project (GAP) benefits the western regions of the country. Civilian investments that will benefit the people in the region directly are extremely low. Investments in fields such as agriculture, industry, health and education are extremely low."
Sonmez stresses that in public investments to the region, there is a pressing need for positive discrimination and describes this as "more civilian investments that will directly benefit the people of the region".
But International Monetary Fund (IMF) programs, he adds, only contribute to the inequality in the region.
"IMF is against public investments anyway" he explains. "In areas where it deems investments necessary, the investments have no benefit for regional development. IMF, in any case, means being against the social state. Since the program the regional divide has been growing. Investments that appear to have been made primarily serve the western regions that are integrating with globalization".
Sonmez also says that far more incentives are required to boost private investments. "Such as tax benefits, investments concentrating on larger labour pool projects, required appropriation of land. And this means positive discrimination."
Bedirhanoglu: Regional and Sectoral Policy needed
Referring to his remarks on the need of an "investment atmosphere", Bedirhanoglu says that steps need to be taken to strengthen security and stability in the area and calls on the PKK to turn its back on violence.
He also says that a regional and sectoral policy is needed which would, effectively, mean passing incentive laws without attempting to be populist. The current approach, he says, does not reflect positive discrimination.
"Regional and sectoral positive discrimination is needed" he says, calling for legislation to be prepared with this in mind and together with non governmental organizations in the region. (TK/KO/II/YE)
