07.03.2014 İstanbul
During his speech at the “Changing Global Economy and Turkey” panel held as a part of the ICC Board of Directors’ Turkey schedule, TOBB and ICC Turkey President, ICC Board Member M. Rifat Hisarcıklıoğlu urged caution against significant changes in the global system. Hisarcıklıoğlu drew attention to a global decrease in liquidity, efforts to form a new market led by the USA and changes to the global energy map.
The opening speeches of the panel were given by TOBB and ICC Turkey
President, ICC Board Member M. Rifat Hisarcıklıoğlu, ICC President and McGraw
Hill Board President Harold McGraw, Economy Minister Nihat Zeybekci and the
Customs and Commerce Minister Hayati Yazıcı while Australia G20 Sherpa Robert
Milliner, ICC Secretary General Jean-Guy Carrier, İstanbul Chamber of Industry
President Erdal Bahçıvan, Garanti Bank Director Ergun Özen and Treasury
Undersecretary İbrahim Çanakçı made presentations.
M. Rifat Hisarcıklıoğlu reported that the meeting was the first held by
the International Chamber of Commerce in 2014 and went on to provide
information regarding the history and structure of the organization. “The ICC
was founded in 1919 by a group of entrepreneurs in order to heal the wounds of
WWI. They had a shared goal: To bring prosperity to the world. The group called
themselves ‘the merchants of peace’ took on great risk by forming this
international organization during the 20th century, a time rocked by
global upheaval.
This presented such a risk in that there existed no system in the world
then similar to what is present today in regards to global trade, investment
and financial relations. In fact, there wasn’t really much in terms of
international organizations,” said Hisarcıklıoğlu and stated that the merchants
of peace brought together the representatives of private sectors of various
countries under a single banner in a world beset by enmity. ICC has become the
world’s largest business organization with national committees in 130 countries
with 6.5 million establishments, chambers and foundations as members.
- 3 important changes to the
global system
Stating that the world is undergoing an important period in time,
Hisarcıklıoğlu stated that precautions must be taken in regards to 3 important
changes in the global system.
A new global financial environment will emerge, said Hisarcıklıoğlu and
stated that the abundance of liquidity seen during the monetary expansion
before and after the global crisis was over.
Pointing out that easy and cheap access to loans was no longer present,
Hisarcıklıoğlu said, “Establishments and individuals must act with greater
care. We must focus on adapting to the new order as well as preserving the
balance of growth-employment-prosperity as the government and the private
sector.”
The second matter is the restructuring of global trade and investments,
Hisarcıklıoğlu said, “Regionalism is gaining speed in the world. The USA is
leading the world in this. First, the Transpacific Partnership Agreement was
signed with the pacific countries – Japan, Korea, Canada, Australia, Malaysia
and Mexico. The USA also sped up its work towards the Transatlantic Trade and
Investment Partnership with the EU.”
Emphasizing the importance of these to enterprises, Hisarcıklıoğlu said,
“First of all, this provides an alternative to the World Trade Organization’s
trade liberalization talks. These two enterprises together equal two thirds of
the world’s economic power. This grants great determining power in regards to
trade and investments as well as production standards. As an example, consider
that all of our products are designed with 220v in mind. If they adopt 110v as
standard, we would have to restructure our whole production capacity. This
means that there will be a great divide between those included and those
excluded from the new global order.”
- Global energy map changing
Stating that the third important issue in regards to global change is
the changes coming to the global energy map, Hisarcıklıoğlu said, “Many energy
dependent countries have become self-sufficient through shale gas. As an
example, the USA now produces the energy it used to buy for 10 USD for 3 USD.
This means that the production which shifted from America to the Far
East in the last 20-30 years will shift back to America. In this new order
where energy balance is being redefined, production relations will also be
reshaped.”
TOBB and ICC Turkey President, ICC Board Member M. Rifat Hisarcıklıoğlu
stated that Turkey has been effected by this process of change to the global
economy, “Firstly, the shrink in the finance flow in recent months. We will
need to prepare ourselves for the new order. That is why we, as TOBB, are
working with global business leaders, the ICC as well as our counterparts in
the EU and the US. We also inform the public in regards to our efforts.
We cannot solve global problems by ourselves. The world is not as it
once was; complicated global economic structure requires joint action. G20 is
developing joint action plans in order to revitalize global growth and
employment. The driving force behind global economy for the last 60 years has
been international trade and from here on out, global development will be
sustained by trade. This puts great importance on the union of ICC and G20.”
- G20 governments in search of
investors for infrastructure
“I was in Sidney along with the Deputy Prime Minister Ali Babacan last
week for G20 meetings. We exchanged ideas on how to increase infrastructure
investments with leaders of the business world and governments. This is of
vital importance for us. The global economy is in need of 57 trillion USD of
investments until the year 2030. If precautions aren’t taken 20 trillion USD
worth of these projects will be shelved.
This would cause the slowing down of global economic growth and the loss
of 160 to 200 million job losses worldwide. This is why G20 governments are in
search of infrastructure investments.
We are producing solutions for these issues. As the, ICC we have
successfully relayed the views of the business world to the G20 Advisory Group
and the G20 leaders.”
Having taken on active roles in B20, the business arm of the G20, in the
last four years, Hisarcıklıoğlu reminded that G20 term presidency would pass on
to Turkey in 2015.
Stating that they put great importance on this process and are preparing
earnestly for it, Hisarcıklıoğlu said, “That is why we will be holding a panel
to discuss how best to contribute to the G20 as the business world following
the opening remarks of our ministers and the ICC President Mr. McGraw.”
- ICC President McGraw
International Chamber of Commerce and McGraw Hill Financial Group Board
President Harold McGraw described Turkey as a rising star and said, “There is
always tension in this region but you show that you know how to treat your
people, how to increase the growth of your country and how to protect your
people. The rest of the world is watching you closely.”
Stating that the first goal for G20 countries is growth, followed by
increased employment, McGraw said that they want to aim to increase the size of
the middle class and develop it; to appreciate the importance of SMEs and to
solve their problems – policy should always be made with this in mind.
Praising Deputy Prime Minister Ali Babacan for his leadership, McGraw
went on to talk about the Transatlantic Trade and Investment Partnership as
well as answering questions from the press.
- Economy Minister Zeybekci
Economy Minister Nihat Zeybekci said, Turkey’s economic foundations are
solid. I believe that the players from both Turkey and the international
markets are aware of this fact. That is why the global confidence in Turkey
will persist in the future.” Zeybekci stated that the global economy is undergoing
a period of change and that there are strong indicators of recovery from the
crisis of 2009.
Minister Zeybekci stated that Turkey would take bold steps to open the
way for permanent capital investments. He went on to touch on issues with
regards to TTIP and the importance of the G20 platform for Turkey.
- Customs and Commerce Minister
Yazıcı
Customs and Commerce Minister Hayati Yazıcı stated that Turkey is
located in a difficult region but one full of opportunity and said, “As a
country, we defend peace, stability, solidarity and democracy in our region.”
Yazıcı went on to assess developments in regards to the Turkish economy
as well as the global economy.
- Treasury Undersecretary Çanakçı
Treasury Undersecretary İbrahim Çanakçı said, “Achieving exit from
ultra-lax monetary policies while minimizing damage to the global economy is
the question which we are now faced with.”
Çanakçı drew attention to the importance of G20 in bringing together both
developing and developed countries in regards to preventing relapses towards
economic crisis and maintain stability.