CIU Academic Suggests that a Greater Part of Society Should adopt a Saving Culture
Hasan Rüstemoğlu, a Faculty Member of the Faculty of Economics and Administrative Sciences, Cyprus International University (CIU), drew attention to the economic troubles in our country and emphasized the importance of adopting a saving culture in wider society.
Dr. Rüstemoğlu stated that October 31st was celebrated as a saving day in the world and that in the TRNC, long-term, awareness-raising policies should be implemented regarding the benefits of saving. Rüstemoğlu suggested raising the level of financial literacy of households in this regard, saying “The awareness of citizens can provide significant returns”.
Rüstemoğlu said saving in economy is calculated in two ways; “Individual savings are in the first category and they are called special savings. In the second category, there are savings from the public budget. In the public budget, the government records the taxes collected as an income and the expenses as expenditures and the difference between the two forms the public savings.”
Rüstemoğlu pointed out that according to the International Monetary Fund (IMF) and World Bank data, 8 of the 10 largest saver countries in the world are the countries that are rich in oil and natural gas sources. Rüstemoğlu noted that these countries in order are: Qatar, Kuwait, Algeria, Equatorial Guinea, Iran, Saudi Arabia, and Azerbaijan according to the saving rates. He indicated that the other two countries in the middle of the list that grab attention with a remarkable economic momentum in the last 40 years are China and Singapore. Rüstemoğlu expressed that in Turkey and the TRNC there is a pretty small place for saving in the economy and he highlighted that studies in the economy literature show that saving greatly accelerates the economy of the country.
Rüstemoğlu specified that savings can be made in different ways and he said a human being can save on time, money, energy, consumption, and production. Rüstemoğlu noted that both individual and social savings play an important role in eliminating possible uncertainty in the future.