The Pool Finance Economic System (PFES)

Abstract

In many Islamic nations, transitions of political authority frequently transpire through means that do not adhere to democratic norms. Turkey, a country that has seen military coups or attempted coups on a recurring basis almost every 10 years since 1960, serves as a prototypical illustration of this phenomenon. The event that occurred in Turkey in 1997, commonly referred to as the “February 28 Post-modern Coup,” has been extensively discussed and analyzed in academic literature. The Refah-Yol government, headed by Necmettin Erbakan, which had secured the majority of seats in the 1995 general elections, was ousted from power through a coup attempt, aided by media backing from the armed/military forces. According to Erbakan, the rationale behind the proposal stems from the PFES employed by private banks, which results in the curtailment of a significant revenue stream for these institutions. The root cause of the elevated inflation issue observed in Turkey throughout the 1990s can be attributed to the economic policies that were enacted. The inflation problem has been exacerbated by the practice of public entities engaging in borrowing at elevated interest rates. The government of Refah-Yol formulates alternative economic policies with the objective of mitigating resource inefficiency and addressing economic challenges. The PFES, which operates on the fundamental idea of consolidating the financial transactions of public institutions into a unified account, represents one of the aforementioned policies. The implementation of a PFES enhances the efficient utilization of public resources, hence mitigating the state’s exposure to avoidable debt obligations. Nevertheless, following the postmodern coup on February 28, the deployment of PFES was discontinued. Furthermore, there has been a notable escalation in the impact of the financial industry. During this particular period, the nation encountered economic challenges that had a detrimental impact on its economy.