Turkey ranks last in financial support for citizens during pandemic
* Photo: Anadolu Agency (AA)
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The Research Center of the Confederation of Progressive Trade Unions of Turkey (DİSK-AR) has prepared a report examining and comparing the resources allocated for the struggle against the social and economic effects of the COVID-19 pandemic in the world and in Turkey.
The report has shown that, after Mexico, Turkey is the country which has allocated the least amount of financial support to its citizens.
While a total of 7.9 trillion dollars of income support and cash have been provided to citizens across the world, Turkey's share is only 1 per thousand.
Raising concerns about the gap between the support provided by rich and poor countries, the DİSK-AR report has shown that while rich countries have provided their citizens with an income support and cash of 12.7 percent of their Gross Domestic Products (GDP), this percentage is 3.6 percent in middle income countries and 1.6 percent in poor countries.
The same rate has been calculated as 1.1 percent for Turkey, which is lower than the average of poor countries.
The report of the confederation has noted that as of January 2021, the total amount of global support for citizens amid the pandemic reached 7.9 trillion dollars, which accounted for 7.4 percent of the GDP.
In this period, the loans and guarantees provided to companies and banks across the world was 6 trillion dollars, or 6.1 percent of the GDP.
Poor countries cannot allocate resources
The report has also raised concerns that there are major inequalities among the countries in terms of their cash support for their citizens.
"COVID-19 has been deepening the global inequality even further," the report has underlined and shared the following details:
"When the total income and expenditure support in cash is considered, 1 percent of it (36 billion dollars) is provided by low income countries, 3 percent (262.9 billion dollars) by middle income countries, 6 percent (485.5 billion dollars) by high income countries (excluding the G-20) and 90 percent by the G-20 countries (7 trillion dollars)."
Turkey provides one of the smallest amounts
According to the report, Turkey ranks last, together with Mexico and Albania, when the share of their income and cash support for citizens is compared with their GDP. While this share is 0.7 percent in Mexico, it is 1.1 in Turkey and Albania. "That being the case, Turkey has become one of the two countries with the smallest share of cash and income support during the pandemic in the GDP," the report has noted.
The report of the DİSK-AR has also examined the financial support provided to citizens for purposes other than healthcare.
While New Zealand ranks first in this list by allocating 17.9 percent of its GDP for these purposes, this rate is below 1 percent in Turkey, together with Mexico, Nepal and Albania. This share is 0.8 percent in Turkey.
Turkey: The country with the least cash support
Finally, the research center has also examined the ratio of the cash support provided for citizens during the COVID-19 to the total amount of support. While this rate is 90 percent in Australia, 88 percent in New Zealand and 87 percent in the United States (US), the top three countries in that regard, it is 11 percent in Turkey, which makes it rank the last in the list.
"89 percent of total economic support in Turkey have been the facilities and support provided to enterprises, companies and banks (the capital holders)," the DİSK-AR report has underlined further.
The report has also indicated that the vast majority of the financial support provided to citizens by the state comes from the unemployment fund, not from the budget. According to the report of the confederation, 35 billion lira of 42.8 billion lira cash transferred during the pandemic (2020) were received from the unemployment insurance fund.
While nearly 6.4 billion lira was provided from the Fund for the Encouragement of Social Cooperation and Solidarity and 2 billion lira from the fundraising campaign, "there are no resources directly allocated from the budget to provide citizens with cash support in Turkey". (HA/SD)