Capitalism is Ending

Former State Minister responsible for the economy, Işın Çelebi, has just returned from India and China. He is preparing a new book on the changing world order. We spoke with him about the shifting global balance, the new world order, and Turkey’s position within it. “The economic system is changing, power is shifting globally. We can hear the footsteps of an earthquake. I believe capitalism is coming to an end,” says Işın Çelebi, who provides consultancy to leading companies worldwide across various sectors. He believes Turkey, by consolidating its strength, can become a regional leader and a locomotive country among EU nations in this turbulent global environment.

A SEVERE CRISIS

Problems exist everywhere: unemployment, dissatisfaction, racism, etc. Many link these to long-standing economic crises. Why is this happening?

The world is changing. Power is shifting. The two major global players are the U.S. and China. To observe this transformation, I recently traveled extensively. I visited universities in China and India, spoke with academics, students, NGOs, and business leaders. I am also preparing a book on this subject. I answered their questions and curiosity about Turkey as well. In India and China, you hear the footsteps of this change much more clearly. The economic crisis is not new. There is a severe global crisis. We are hearing the tremors of a major earthquake.

CHINA IS SHAKING THE WORLD

The world’s largest countries are also the most indebted. The global system frequently produces crises. Why is that?

China has around $25 trillion in debt. It challenges the U.S. and shakes the world. Half of the world’s steel production is in China, producing 800 million tons. Its capacity utilization is currently below 50%. Most producers are state-owned companies. Structures known as “white elephants” have emerged in China. When China grows even slightly less, the entire world feels the impact. China uses 600 million tons of its steel production domestically but sells 200 million tons globally at dumping prices. This disrupts world trade.

Chinese companies also acquire firms wherever there is a crisis—from Africa to Europe. What will be the outcome?

A major crisis is coming. Even a giant like Volvo is now owned by China. Leading global companies are changing hands. Those that fail to adapt to change or keep up with new technologies shrink rapidly and disappear.

Looking at America, many argue that the rise of Trump to the presidency is mainly due to the economic crisis.

In the U.S., when growth stalled, people made a different choice. Right now, the world is experiencing a period of inward retreat. When countries fail to produce enough and unemployment rises, alternative preferences emerge. That’s why I say we are hearing the footsteps of an earthquake. Are we entering a new world order? This is being widely discussed. Yes, we are transitioning into a post-capitalist society. The world is moving in that direction. I also believe regional wars are not coincidental but orchestrated. The numbers and the trends show this.

THEORIES AND AFTERSHOCKS

You also support the thesis that capitalist modernity is dissolving. Who are the theorists of this new order?

Yes, I see this. Capitalism is dissolving. This topic is widely discussed in China. I cannot name a specific theorist yet, but one will emerge.

Are we living through aftershocks? Do new actors have a chance in this power balance?

The U.S. is making tremendous investments in information and communication technologies, as is China. Recently, the U.S. has also invested heavily in entirely new industries. Sweat is being replaced by intellect. The countries where brainpower surpasses manpower are the U.S. and China, followed by India.

So, can we say the chessboard is being reset?

Countries are turning inward and forming new strategies. China’s biggest investment is the Silk Road Project, which will connect the Silk Road with high-speed rail networks. India’s major project is a railway line between New Delhi and Mumbai along with a vast commercial complex.

Recently, Energy Minister Berat Albayrak also stated that the Silk Road Project is strategically important for Turkey.

The Silk Road extends to Turkey. It will be the backbone of global transformation. With this project, Turkey will integrate with both the West and the Far East. If Turkey plays its cards right, it can create immense synergy.

ON THE PRESIDENCY

Turkey is discussing the presidential system. Should Turkey adopt it?

The presidential system should come to Turkey, provided that it is based on the separation of powers, operates with a balance mechanism, and includes reforms to the Political Parties Law and the Election Law. Without these three conditions, a presidential system would not work. Looking at global economic developments and the emerging new order, I am very optimistic about Turkey.

A LOCOMOTIVE COUNTRY

Turkey has gone through a very difficult year: the Russia crisis, terrorist attacks, the July 15 coup attempt, and recent economic hardships. How will Turkey emerge from this spiral?

First of all, we are deeply saddened for our martyrs. May God bless them, and grant patience to their families. Turkey will overcome these challenges.

There is fear that conflicts will escalate.

I have full faith in Turkey’s future. Turkey will overcome these challenges while preserving its territorial integrity. We will strengthen our role as a bridge between East and West. If we plan correctly, focus on production and exports, and adhere to democracy and the rule of law, we could soon become a locomotive country in the EU. Economic growth has stalled in EU countries. We can seize the chance to become the locomotive. What matters most is commitment to democracy and law.

How will we overcome economic contraction?

We must trust ourselves. We need a production breakthrough and increased exports. Turkey should revise the Customs Union and renew free trade agreements with Far Eastern countries. Turkey must sit at the table and develop medium- and long-term plans. The world will enter a new post-capitalist management paradigm. Turkey must prepare for this.

WHO IS IŞIN ÇELEBİ?

Işın Çelebi was born in 1950 in Karaman. Until 1982, he served as a department head at the State Planning Organization (DPT) and worked closely with Turgut Özal. He entered politics at the invitation of Adnan Kahveci and Turgut Özal. Serving four terms as a Member of Parliament for İzmir, he was State Minister responsible for the economy during both Özal and Mesut Yılmaz’s governments. In 2002, he founded Çelebi Strategic Consultancy, providing restructuring and strategy advisory services to leading global companies in sectors including steel, automotive, and finance, as well as major international banks and institutions. He is also an independent board member at Sabancı Holding. In addition, he serves on the board of the Turkish National Commission for UNESCO. Çelebi has authored several books, including A New Understanding of Order: Privatization, Open Growth and Turkey, What Will Happen? What Should We Do?, and Turkey’s Years of Transformation, along with numerous articles published in various outlets.

Source: Hürriyet