09.02.2015 İstanbul
Speaking at the “G20 Agenda Under the Turkish Presidency” Seminar held by the International Institute of Finance, TOBB President M. Rifat Hisarcıklıoğlu stated that they put great importance on the G20 in these interesting times with many global problems on the agenda, he stressed that these would require global coordination in order to solve.
TOBB President M. Rifat Hisarcıklıoğlu stated that 2015 is very
important for everyone and that they are very proud of Turkey’s G20 Presidency.
Stating that, as the President of TOBB, with over 1.5 million members
nationwide, he is also the B20 President, Hisarcıklıoğlu reported that they’ve
formed a comprehensive agenda to relay the issues of the global business
community to the G20 leaders.
Pointing out that no sustainable solution to the global economic slump
of the last 6 years, Hisarcıklıoğlu said, “In the past, trade used to be the
driving force behind global growth. Today, the increase in trade is behind even
global growth. Youth unemployment is at very high levels. It has reached 40% in
some countries. The finance sector overlaps with many other sectors. This is
true in all aspects of the economic life. Today, financial markets are
experiencing an explosion in both scope and complexity. A single mistake or
political decision can lead to great turmoil as we’ve seen in past centuries.
The costs of these mistakes reach billions, even trillions of Dollars. These
are lost opportunities and millions of jobs. International political tensions
increase and financial crises cause unrest in civil society.”
- Wakeup call from developing
markets
Stating that the USA is on more stable ground today, Hisarcıklıoğlu
pointed out that the IMF projects growth, albeit small. He stated that this is
a wakeup sign in all developing markets.
Hisarcıklıoğlu stated that he is not completely convinced that they are
standing at a positively better position than they were 6 years ago, “McKinsey
Global Institute has stated this in their last report. Global debt was 142
trillion USD in 2007. Today, it has increased to 199 trillion USD. In other
words, the world has become indebted thrice as much as it produces each year
and it is unsustainable.”
- Role of the businessmen
M. Rifat Hisarcıklıoğlu stated that the effects are apparent on
governments, private sector and that there is a role for businessmen to play.
Stating that the monetary policies in the USA and the EU have changed
everything, Hisarcıklıoğlu said that all company bonds need to be restructured.
“I won’t go into too much detail as the TCMB President Erdem Başçı who
is not just a professor on the subject of macroeconomics, but also the
president of one of the central banks most successful in their recovery
following the global crisis will be speaking on the matter after me.
Mr. Başçı is also the Chairman G20 Central Banks Presidents. Today and
tomorrow, they will be discussing the problems I’ve mentioned. We will be
waiting for the results. As organization leaders, it is our primary duty to
inject trust to the economy and the financial system. As Larry Summers said:
‘Trust is the lowest cost incentive,’ and we will have great need of this
incentive throughout the term.”