The AK Party is expected to reveal its candidate for Istanbul on Saturday. Binali Yildirim’s name has already been discussed in circles close to the party and he may be considered as the ‘common’ candidate of the People’s Alliance – composed of the AK Party and MHP. Devlet Bahceli already announced that MHP will fully support Yildirim’s candidacy in Istanbul.

The technical detail that both party’s leading figures are talking about is the fact that Binali Yildirim is currently the president of the Turkish Grand National Assembly. In the previous weeks there were rumors that Binali Yildirim will resign from his current position in order to run for the mayoral elections. However, rumors now suggest that both Erdogan and Bahceli don’t think it’s necessary for Yildirim to resign in order to become the candidate for Istanbul.

CHP leader Kemal Kilicdaroglu is yet to comment on this issue. Whether he is remaining silent due to the friendly meeting he held with Yildirim in December or whether he will use this as a tool during the election campaign is yet to be known.

The campaigns for Turkey’s local elections in 2019 will start in full gear next week. Above economic reasons, political analysts expect the potential military operation to be launched by the Turkish Armed Forces in the east of the Euphrates to have an impact on the campaign process and the results of the election.

Since the upcoming local elections will be the first of their kind in the new presidential system, there are some technical details that are being adjusted for these elections according to the needs of the new system in Turkey.

According to the current Turkish electoral law, which has been applied until now, the official authority to depose majors are in the hands of the Ministry of Internal Affairs. However, in the new system, the Minister of Internal Affairs can be appointed as a technical bureaucrat and does not need to be an elected representative. In this regard, the related constitutional bylaw will change and will give this authority directly to the President.

There are also some other details, like the protocol procedures or immunity issues of the mayors – that need to be regulated. These details and others are currently being studied by technocrats and whether or not changes will occur depend on the agenda of the parliament.

*Written by Selahattin Emre Celebi

Almost 24 years ago, Recep Tayyip Erdogan, the current president of Turkey, had been elected as Mayor of Istanbul. Although he was one of the most popular candidates, the media did not pay much attention to his election campaign, which was so intrinsic and far beyond being ordinary. Erdogan not only proposed a unique and comprehensive map for local government, he, at the same time, foresaw a new type of governance for the country. Unlike other candidates, he was aware of the changing world order and grounded his campaign in consensual rhetoric.

“Erdogan-type politics” has become a role model in local administration since that time. Candidates standing for mayoral elections in Istanbul and other metropolitan cities claimed their dedication to follow his type of politics if they were to be elected. It must be emphasized that reflections of Erdogan-type politics on a local level still need to be examined in detail. Since he has become a role model for mayors, the main characteristics of his leading style should be understood.

Nowadays, the questions of “what is the true character of a successful mayor” and “what do people expect from mayors” has come to the forefront again. Since political parties have begun their search for the most suitable candidates, they have been taking these questions seriously. More, as was reflected in the press, some parties conducted surveys and opinion polls in order to find the best candidates serving the interests of the public. For instance, the CHP decided to use multiple methods in determining its candidates – including opinion polls, tendency surveys, and preparation reports. It is expected to see all parties to use diverse methods in determining their candidates in local representation.

Political parties take the expectations of the public into consideration. As it is one of the main characteristics identified with Erdogan-type politics, sincerity and honesty are very crucial for the personality of candidates. Surveys also show that people tend to vote for candidates that they perceive as one of them. Thus, candidates that have strong ties with the public in their electoral district have a higher chance of being selected.

Another characteristic of a proper candidate is being innovatory and reformist. The public expect to see candidates to have their own agenda beyond the political party they represent. They appreciate projects based on innovation themes or concepts rather than ordinary projects. Moreover, people want candidates to propose both short and long-term projects resolving the current problems in the local area. Indeed, Erdogan-type politics was successful in proposing both short and long-term solutions to existing local problems. For instance, Erdogan was successful in resolving the garbage problem in Istanbul in the short-term and the city’s water problem in the long-term. Thus, these capabilities are still crucial for the election of a mayor in the current period.

The public also tend to vote for candidates who they can contact when they need to. Indeed, mayors are failing to “reach people’s hearts” with the growing effect of social media. Especially after the popularity of social media, people have been increasingly complaining about the gap between politicians and society. Although social media is a good tool for politicians to reach out to the wider public, since being a high-context culture, people in Turkey still prefer direct contact. As President Erdogan pays attention to this himself, he has underlined that mayors ought to get in contact with people face-to-face rather than relying on social media channels.

There are a lot of issues that need to be underlined in answering the question as to what people expect from mayors. Nevertheless, even if this is not examined in detail, the characteristics of Erdogan-type politics are still crucial in order to be a successful mayor. Political parties should pay more attention to this since local elections are only around the corner.

Today, financial centers, are formed to bring financial institutions together to provide more effective services and have become the subject of economic policies to stimulate commercial activities of countries and attract international investors. After the global economic crisis started in 2008, while capital movements in the world were flowing towards developing countries from developed countries, this situation has accelerated the establishment of financial centers operating on different continents.

In the post-2002 period, with Turkey’s massive economic transformation, Istanbul’s perception in the eyes of international finance circles has changed significantly. On the axis of changing foreign policy priorities, relations developed with the Balkans, the Middle East, North Africa and the Caucasus have brought Istanbul into a position where capital movements are driven by economic interests. While this situation enhanced Istanbul’s potential to become a center in the financial markets, Turkey’s strong position in the fields of banking and insurance, which are a sub-category of financial services, has enabled the emergence of the Istanbul Financial Center (IFC) project. The IFC project, which is one of Turkey’s 2023 targets, aims to make Turkey the central country in the area of finance.

Turkey’s strong position in the fields of banking and insurance has enabled the emergence of the Istanbul Financial Center (IFC) project.

Turkey, which is at the forefront of countries in terms of international investment and capital movements, wants to establish an institutional framework within the scope of the IFC project. Turkey’s rising international position will become permanent with long-term investments and strong institutional structure with the IFC project, instead of short-term capital movements. These economic gains will also play a key role in solving structural problems in the Turkish economy, especially in saving rates, making the IFC project important for the future of the Turkish economy. Nevertheless, parallel to Turkey’s increasing political and economic ties with the Middle East and the Islamic world, the Islamic Finance field has significant opportunities for the future of the IFC project.

There are number of advantages Istanbul offers as a global financial center, and efforts are underway to strengthen the city’s attractiveness even further.

Istanbul is the intersection point that brings together the most important financial centers of the world in terms of its central geographical position between East and West. This makes it an important tourism and culture city, and a center of attraction with its 4 hour flight distance to 56 countries and its developed transportation infrastructure. Furthermore, important steps are being taken every day to improve the city’s transportation infrastructure. Advanced rail systems, the third bridge and airport, and the Marmaray and Eurasia tunnels are important examples showing the continuously improving transport capacity of Istanbul.

Istanbul not only offers a great set of cultural and touristic attractions, but the city’s low real estate prices, labor costs and other operational costs make it a highly competitive location for a global financial center.

Although Istanbul is one of the most important cities in Turkey with a qualified labor force, it is necessary to support a capacity increase in this regard in terms of the future and functioning of the IFC. Particularly in the field of finance, the local labor force is expected and encouraged to grow, and international experts are expected to come to Istanbul.

In addition, the taxation system, the provision of safe legal infrastructure, and transparency and accountability are among the most important criteria for becoming an international financial center. Investors will find a predictable, reasonable, and encouraging tax regime due to the work being done as part of the IFC.

To further provide investors with confidence in a fair business environment, an arbitration center working along international standards is being developed as part of the IFC which will ensure the effectiveness of legal processes.

Language teaching is the infrastructure of a qualified workforce. Turkey, which is successful in the economic sense, plans to meet the needs of foreign language staff, especially in English, through educational reforms to become an important center in the field of finance.

The Potential of Istanbul as a Financial Center

According to the “Global Financial Centres Index“, a publication by the Qatar Financial Centre accepted as a reference in the evaluation of financial centers, factors such as the quality of the workforce, the functioning of the financial sector, the legal infrastructure, and the investment climate play a decisive role in a city’s position in global financial markets. Istanbul, which finds itself in the Global Financial Centers Index from 2009 onwards with the IFC Project, is on its way to becoming one of the most important centers with its rising performance.

Istanbul is on its way to becoming one of the most important centers with its rising performance.

According to the March 2016 index, of the top future financial centers, only Istanbul and Luxembourg are located in Europe, and according to the index, centers in Asia are expected to increase their activities and raise their position. Moreover, Istanbul ranks first among the centers in Eastern Europe and Central Asia. The position of Istanbul as a financial center between Eastern Europe and Central Asia brings with it the potential to become a new center in addition to the cluster centers in America and the Far East.

The June 24, 2016 Brexit referendum result will also help push Istanbul towards being a new global financial center.  Britain hosts the world’s most important financial center, London, and the country’s departure from the European Union will have an impact not only on the global economy but also the Turkish economy. The increasing risk environment and the low pace of sterling have threatened global markets, and the global economy has begun seeking safe havens. It is expected that the process of negotiating the Brexit, which will start after the conclusion of the referendum, will further contribute to the uncertain environment. This uncertainty will accelerate the reorientation of the global economy towards important, more reliable, financial centers such as Paris, Frankfurt, and Dublin. While the UK and the European Union are expected to enter an uncertain environment with the Brexit process for a while, with Istanbul’s potential to become a global financial center, the opportunity to fill London’s position should be on the agenda for Turkey in the near future.

Istanbul’s Position and Potential in Islamic Finance

Islamic finance is one of the significant areas for potential growth for the IFC Project, and has a possible potential to make the city an international financial center. Islamic finance, whose position in financial markets has developed rapidly in recent years, is at the forefront of global financial markets, with a $ 1.2 trillion market share as of 2015. The availability of capital from Gulf countries and the rising market share of Islamic finance has encouraged economies to take some initiatives to attract investment in this area. European countries, especially Britain, have applied serious incentives to attract Gulf capital to their countries, and Islamic finance has strengthened its position, as indicated by an increasing diversity of instruments in the field of finance, and a rapid proliferation in institutions providing compliant services.

This has also been true for Turkey, where a large part of the population is Muslim. Turkey’s strengthening economy and changing foreign policy after 2002 has resulted in closer geopolitical ties with the Middle East, and thanks to that Turkey has begun to strengthen its economic and commercial relations in the region as well, especially with Saudi Arabia and Qatar.

Istanbul needs to take some quick steps to meet the kind of international criteria in finance.

Looking at the IFC Project in this context, the endeavor will bring huge economic gains to Turkey in the sense that Middle East-oriented capital will turn into long-term capital flow instead of short-term money inflow. Turkey will turn into an investment center for the Caucasus, Middle East, North Africa and Balkans from an economic point of view, given the stability that Turkey enjoys in a region where many every day geopolitical risks are present. In this context, Istanbul’s quest to become a financial center will enable Turkey to develop its position in the international economy in addition to producing high domestic economic growth rates. With the IFC Turkey will be able to increase influence in these regions, and naturally, Istanbul will become a strong financial center in the region.

But Istanbul needs to take some quick steps to meet the kind of international criteria in finance mentioned above. These steps have been noted in the “Istanbul International Financial Center Priority Conversion Program,” and include: Establishing a new administrative structure, increasing the diversity of financial products and services, strengthening the legal infrastructure, improving the physical infrastructure in the cluster regions, strengthening the technological infrastructure, improving the qualified human resources, and developing participation banking and an Islamic financial system.

Eliminating these shortcomings will accelerate Istanbul’s integration into the global financial system and offer a new attractive option for international investors. With work already underway to meet these needs, and it is likely that Istanbul will soon become a regional and global center in the global financial sector.