The virus, which started in December 2019 and gained an epidemic nature and affected the whole world, started to shake the economies of the country deeply and caused the countries to borrow excessively. The countries that started in the USA in 2008 and showed signs of recovery from the impact of the economic crisis that shook the world were suddenly affected by such an epidemic.
States meet these needs by borrowing from the private sector or foreign governments or organizations in order to balance their budgets, finance their budget deficits, meet their spending in emergency situations, and finance their large investments. In this way, public debt of countries increases. It means that your public debt is more than your national income; it means you owe more than you can produce. The ratio of total public debt to total national income in the world countries increased to 82% in 2019. It can be said that the world, which is already in debt spiral in the face of such an epidemic crisis, is not prepared in terms of economy.
Countries’ public debt has increased considerably, especially after the 2008 global financial crisis. Japan is the country with the highest ratio of public debt to national income with 237%. When we look at Europe, after Greece with the highest rate of 176%, Italy comes second with 133%. America alone has one-third of the world’s public debt with a $ 22 trillion debt. The ratio of public debt to national income is 105% in America. Referring to IMF data, this ratio was 50% in Turkey in the 2000s, declined to 30% in 2019. Due to the fact that the reserve money in the world is dollar and with the effect of these borrowings, it is highly likely that countries will demand more dollars in the next 5-10 years. That’s why America will print and release more dollars in the future than it is now.
Turkey, in many countries, this epidemic from previous experience that the IMF wanted help from the IMF lessons removing this subject has not even on the agenda. Compared with other countries, Turkey’s national income is less than the ratio of public debt. In addition to this, our country has collected the fruit of its investments in the health sector by being less affected by this epidemic.
City hospitals, one of the investments in the health sector, were opened in Yozgat for the first time in 2017. Later, in many big cities, openings continued and the number of intensive care beds was significantly increased. While the total number of intensive care beds was 2,000 in 2002, today this number is around 37,000. The construction of the city hospitals in the private sector not only kept the health infrastructure better against the epidemic, but also prevented our public debt from increasing. Public debt, which was not used for the construction of hospitals in previous years, can now be used to ease the market.
For those who expect a new World order after the virus, the sentence “nothing will be the same as before” is very ambitious, but a new system should be designed instead of the capitalist system. In the capitalist system, the main purpose of countries is to sell technology as it generates more income. The virus showed us today that it is not possible to deal with such an epidemic just by selling technology. The fact that basic food materials, basic health equipment and medicines can be produced in your own country provides you with an economic and social advantage in such an epidemic. Countries that have turned to the electronics, defense and arms industries in the past will invest a lot in the food and health sector, especially agriculture. At the same time, it will try to produce these products itself rather than having them produced in developing countries. In this respect, Turkey’s agriculture, livestock and make greater investments in the pharmaceutical industry will make possible to be prepared for such a situation may occur in the future. The New World will be a place dominated by those who dominate these sectors.