TURKEY'S LIBERAL ISLAMIST government was only
elected in November but it has already disappointed the
markets because of its perceived lack of direction,
coordination and skill.
Tayyip Erdogan's Justice and Development Party (AKP)
won control of nearly 70% of the seats in the Meclis
(national assembly) but has often behaved as if it were a
novice coalition.
Matthew Vogel, head of emerging markets strategy at Barclays
Capital Research, summed up the market verdict when he wrote that
"across foreign and economic policy matters [the Turkish government
has] been unable to provide clear answers on a number of critical
issues. Lack of focus and coordination are [its]
characteristics."
Vogel made this assessment in a report after a week-long visit
to Turkey last month. "We arrived in Ankara with questions about
the government's stance," he wrote, "and we left with the same
ones."
The question is are these failings a...
