15.12.2014 İstanbul
Bringing the actors of the global economy, the B20 Turkey Commencement meeting was held in İstanbul. Attending the various meetings with opening keynote speeches by Prime Minister Deputy Ali Babacan and the B20 Turkey Executive Council Chair and TOBB President M. Rifat Hisarcıklıoğlu given the opening speeches were hundreds of representatives and businessmen from approximately 40 countries.
In his opening
speech, Hisarcıklıoğlu stated that they have been conducting intensive
preparations for 2015 since taking up the B20 flag from Australia in the
previous month.
Stating that the
global economy has been undergoing an interesting period in the last six
months, Hisarcıklıoğlu said, "What we knew to be solid truths turned false
while those we thought false have shown themselves to be true. We are able to
see just how fast expectations can change. We are witnessing distressing from
giants while innovative enterprises become shining stars. Solid growth is difficult
to maintain globally. Having fixed one part, we encounter deficiencies surface
in another. A person sneezes 10,000 kilometers to our west and a country 10,000
kilometers to our east falls ill."
Stressing that days
where an overabundance of capital can no longer be found and monetary
tightening will be faced, Hisarcıklıoğlu said, "Yet, none of us can quite
pinpoint what the effects will be." Pointing out that attempts to focus
economic activity to a more narrow field were tried in order to increase rates
of return in the past, Hisarcıklıoğlu pointed out that, in contrast, today they
are pessimistically trying to formulate how best to fit into growing cities.
Hisarcıklıoğlu said,
"While the rapidly growing middle class is heartening, the question on how
the earth will meet this demand is alarming.
In the past we tried
to find finances for our projects, now, we have both money and projects.
However these stand at opposite sides. We are arguing on how to bridge this
distance, how we can channel money into our investments.
Energy has retained
its game changer role. However, it is working counter-intuitive to what we are
used to. Many interesting alternatives including shale gas and renewable energy
resources are gaining prominence. Despite lack of any credible expectation of
crisis, Brent petroleum has fallen to approximately 50% of its price.
Trade used to be the
driving force of commerce. Every year trade experienced twice or three times
the growth of global growth. In recent years, we've seen trade growth figures
even less than the slow global growth rates. We've been talking about
liberalization of trade since WWII; now, we are discussing extra-tariff
obstacles which are very dangerous for the future of the global economy.
Everyone is anxious to secure their domestic markets at a time when trade has
slowed down. Mega-regional agreements are moving forward while multi-lateral negotiations
are in their death-throes. This is the kind of time we are living in.
As Charles Dickens
said 150 years ago, 'It was the best of times, it was the worst of times, it
was the age of wisdom, it was the age of foolishness, it was the epoch of
belief, it was the epoch of incredulity, it was the season of Light, it was the
season of Darkness, it was the spring of hope, it was the winter of despair, we
had everything before us, we had nothing before us.' We must find a way out
together. We can only bring the global economy to an inclusive and robust
growth path together. Global problems require global solutions. That is what
makes G20 so very important. That is why the main goal of Turkey's G20 Chair
Term is 'Inclusive and Robust Growth'.
I would like to thank
the President of the Republic, the Prime Minister and Mr. Ali Babacan
presenting our government and all of G20 who share this vision with us."
- Cooperation between governments and the business world
needs to increase
B20 Turkey Executive
Council Chair and TOBB President M. Rifat Hisarcıklıoğlu stated that, while
searching for a roadmap for robust growth, emphasizing that it is of the utmost
important for cooperation between governments and the business world needs to
increase. “That is why we must strengthen the B20, the business wing of G20,”
said Hisarcıklıoğlu and stated that in order to accomplish this, more time
needs to be spent with G20, to look for truth together. Hisarcıklıoğlu said, “I
believe that Turkey’s role as G20 2015 Chair will be a milestone in this
regard.”
Stating that their
goal is to carry the B20 flag they’ve taken over from Australia to even greater
heights, Hisarcıklıoğlu said, “We are building B20’s 2015 adventure on 3 main
principles. Our continuity principle is based on the idea that the valued works
begun during previous chair terms should be continued. We believe that the B20
should have a multi-year agenda. We can’t achieve success when we need to
reestablish the structure of B20 from scratch every year. We know this well as
businessmen form our experiences with our companies. Continuity brings success.
That is why we will begin by addressing the 20 suggestions Australia has made
to the G20. How can we actualize these 20 suggestions? How can we make these 20
suggestions better?
We will also preserve
the taskforces and workgroups formed during the previous year as primary
taskforces.
We will continue our
efforts in the fields of Trade, Infrastructure, Investments, Financing Growth
and Combating Unemployment and Corruption. Heading each of these groups will a
leader of one of our giant companies. They will be working together with
foreign co-presidents throughout the year. Heading the Trade group will be
Güler Sabancı, in the top 3 of the world’s most powerful women list and Sabancı
Holding Board President.
Working together in
the group will be ICC President and McGraw Hill Financial’s Board President
Terry McGraw.
Infrastructure and
Investments group will be chaired by Ferit Şahenk, Board President of Doğuş
Holding, a shining star with its successful investments in both the domestic
and international market. Financing Growth group will be headed by Hüsnü
Özyeğin, the Board President of FİBA Holding, who built a billion dollar bank
from scratch. Employment group will be lead by a Board Member of the largest
holding of our country, Koç Holding which provides the most employment, Ali Koç.
Mr. Koç will be
working together with the President of IOE, the umbrella organization of 150
employers’ organizations, Daniel Funes.
Combating Corruption
group will be headed by Board President Murat Ülker of Yıldız Holding, which
swelled our chests with pride with their purchases of Godiva and United
Biscuits in recent years.
In short, we will
continue to work with all five taskforces with all our might.
Another measure we
will be implementing for continuity is the “B20 Advocacy Leadership”, a
leadership mechanism for B20.
To this end we will
determine a handful of people, chamber or profession organization from each
country who are active in policy design processes. The resulting team of 50-60
people will greatly contribute to the lobbying on behalf of the G20
governments. At the same time this will act as a permanent leadership mechanism
in order to ensure continuity in the B20.
The second principle
which will form the basis of our work is inclusivity. We believe that the B20
should be open to anyone who wants to contribute to the interests of the
business world. For us, multinational companies and SMEs, developed and
developing countries are all very important. That is why we are forming two new
mechanisms. Firstly, the SMEs and Entrepreneurship Taskforce which will develop
suggestions for SMEs and entrepreneurs. Heading this group will be Melih
Yurter, who has undertaken significant work to promote SMEs in the
international arena in Afyon, a medium sized city in Turkey.
This new taskforce
will represent SMEs which form two thirds of registered employment in the G20
on the B20 platform. In order to increase the inclusivity of the B20, we will
hold regional arbitration meetings throughout the world.
This serves two
purposes. The first is to further include the rising economies which are
underrepresented into the B20 process. The second is to take note of the views
of non-G20 countries in regards to the B20 agenda. As the business world, we
don’t have the luxury of separating countries as G20 and non-G20. Companies in
non-G20 countries are still our partners. We trade with them, we form
partnerships. We must also be their voice.
The third part of the
foundation of our B20 efforts is Connectivity, the strengthening of
connections. As you well know, there are a myriad of countries in the G20. Some
more integrated to the global economy than others; some feeling more at a
disadvantage than others. Because of these different structures we are forced
to come to agreements. We believe that we can overcome this situation by
strengthening connections.
We will handle this
by approaching the matter on a level field with all taskforces. In this regard,
we will discuss how to address logistical connections which form significant
obstacles to trade. We will examine problems in business connections in order
to facilitate integration into supply chains. We will work on strengthening
digital connections in order to have all countries benefit equally from the
internet economy.”
- Business Leaders Forum established for more effective
work
Pointing out that the
B20 2015 itinerary is very busy, Hisarcıklıoğlu said, “I would like to address
the esteemed leaders of our companies as the leader of the Turkish business
community. It pains me to say that we are not sufficiently involved in platforms
which give direction to the global economy.” Stating that they want to change
this in order to protect the interests of the Turkish business community,
Hisarcıklıoğlu reported that they would be forming a Business Leaders Forum
comprised of the chief directors of Turkish companies. Hisarcıklıoğlu stated
that they would be undertaking B20 efforts throughout 2015 with these 100
people, going on to urge business world representatives to take part in these
efforts, taking the steps necessary to become global players.
- Deputy Prime Minister Ali Babacan
In his speech at the
opening of the B20 meeting, Deputy Prime Minister Ali Babacan stated that
Turkey has two surprise suggestions.
Stressing the
importance of SMEs for Turkey, and reminding that they will be taking on many
issues effecting SMEs during Turkey’s chairmanship of G20i Babacan reported
that agreement has been achieved in regards to the formation of a “Global SME
Platform”. Babacan stated that representatives of SMEs from many countries
would work to address the problems of SMEs and that this need not be confined
to 2015.
Drawing attention to
the fact that Investment will be one of the main topics of Turkey’s
chairmanship, Babacan said, “Funds are looking for places to invest for the
long term.”
Babacan spoke in
regards to W20, a new formation aimed at businesswomen and their problems, “We
want this to be a permanent formation, not just for 2015.”
Stating that this
period may not be the best for developed economies, Babacan put forth that
developing countries would show greater growth than developed countries,
maintaining their attractiveness.
- Q&A with Babacan
Following the opening
of the meeting, Deputy Prime Minister Ali Babacan answered questions directed
to him with B20 Turkey Executive Council Chair and TOBB President M. Rifat
Hisarcıklıoğlu moderating the session after a short summary of G20 and B20
history by Hisarcıklıoğlu.
In his answers, Ali
Babacan stressed the importance of arbitration and emphasized that SMEs are the
backbone of the economy. Babacan pointed out that growth figures will drop to
half of what they were in recent years, “If goods, services and people are able
to travel freely among countries it will be a win-win situation for everyone
involved, all research points to this conclusion.”
- B20 Turkey: Approaches, priorities and expectations
B20 Turkey:
Approaches, priorities and expectations was presided over by B20 Turkey
Executive Council Chair and TOBB President M. Rifat Hisarcıklıoğlu. Attending
the panel were, representing DEİK, Tuncay Özilhan, MÜSAD President Nail Olpak,
TİM President Mehmet Büyükekşi, TÜSİAD President Haluk Dinçer, TİSK President
Deputy Erol Kiresepi and Erdal Bahçivan representing TOBB.
The panel saw focus
on the importance of the liberalization of trade, the importance of Turkey as a
role model for developing countries while also pointing out sustainability,
employment, prevention of corruption, increased enterprise and innovation as primary
priorities.
B20 Turkey Sherpa
Sarp Kalkan provided information in regards to the itinerary for 2015.
- Expectations of the business community from B20
The expectations of
the business community from the B20 were addressed during a panel presided over
by Janamitra Devan and attended by ICC President and McGraw-Hill Financial Board
President Terry McGraw, Novozymes Board President and CEO Peder Holk Nielsen,
Sabancı Holding Board President Güler Sabancı, Doğuş Holding Board President Ferit
Şahenk, RSPP President Alexander Shokhin and IOE President Daniel Funes de
Rioja.
B20 Trade Taskforce
Coordinator Sabancı Holding Board President Güler Sabancı stated that
implementation is important in this period, “The liberalization and
facilitation of trade will support growth and the formation of new employment
fields.
The implementation of
previous suggestions is the key factor in B20. Everyone must do their share in
actualizing these suggestions. Our focus should be on actualization and
implementation.”
Doğuş Holding Board
President Ferit Şahenk who will be heading the B20 Infrastructure and
Investments Group reported that a sum of 57 trillion USD is necessary for
infrastructure projects until 2030 worldwide.
Şahenk pointed out
that a loss of 3 trillion USD in growth is encountered annually due to
insufficient infrastructure, stating that there is a deficit of 500 billion USD
between investment needs and present public funds.
Şahenk reported that
his Group will be looking into these fields, examining examples of success and
determining the shortcomings of countries individually and to pair long term
financing with infrastructure investments.
- Development of G20 – B20 interactions
The issue of
developing interactions between G20 and B20 were the subject of another panel.
FİBA Holding Board President Hüsnü Özyeğin said in his speech, “Central banks
should be encouraged to provide more credit to SMEs than large companies.”
Özyeğin also stressed
the importance of developing the quality and properties of capital in addition
to having sufficient capital. Özyeğin pointed out that, in regards to financing
growth, most central banks focus on improving their capital qualification
instead of developing their industries.
Also attending the
session were, Murat Sönmez representing the World Economic Forum (WEF), Sabine
Zundera representing Siemens, Melih Yurter representing SMEs and
Entrepreneurship TF, Bernard Welschke representing BIAC and Eric Labaye
representing McKinsey Global Institute.
Following the various
sessions, B20 Turkey Executive Council Chair and TOBB President M. Rifat
Hisarcıklıoğlu thanked the attendees and stated that the meetings were very
successful.