President Gül: “The Turkish economy’s locomotive is its private sector”

Delivering a speech at the Turkish Industrialists’ and Businessmen’s Association (TUSIAD) High Advisory Council Meeting, President Gül pointed to the important role the private sector is playing in Turkey’s development and declared that “our goal is to make our country with even higher income”. The real driving force of the development of the Turkish economy is its private sector, noted the President, reiterating that this was achieved through the radical changes implemented after 1980.

President Abdullah Gül addressed the TUSIAD High Advisory Council Meeting held in Ankara. 

Welcomed by TUSIAD’s Chairman Muharrem Yılmaz and High Advisory Board Chairman Erkut Yücaoğlu in front of the hotel where the meeting was held, President Gül emphasized that he has always embraced all the representatives of the business world and their associations and foundations and he said that he has always supported their accomplishments, adding that he invites the business circles and representatives of the business world including the Union of Chambers and Commodity Exchanges of Turkey (TOBB) to his international visits and programs abroad, as he said he sees their achievements as Turkey’s successes. 

TURKISH ECONOMY’S SUCCESS 

The real driving force of the development of the Turkish economy, the President said, is its private sector and he reiterated that this was achieved through the radical changes implemented after 1980. Despite the political and economic upheavals experienced until the early 2000s, the trend today is opening doors for the private sector and strengthening Turkey’s democracy, he added. “The business world knows best these crises and upheavals from its experiences in the past. You will also recall how the Turkey of the past was affected by very high inflation and interest rates indeed. This is why you are very sensitive about such issues today. Turkey as a whole has learned from the past including the gravest economic crisis ever in our history that hit our country in 2001, during which we lost almost 25 % of our national income. Even so, we were able to gather ourselves and restore our confidence through many radical reforms we implemented in the banking and public sectors as well as thanks to the democratic and legal reforms. It is through these reforms that we have today decreased the inflation rate to one digit unlike the previous 30 years. We are now at a point where the real interest rates are negative and we are in a better situation in terms of employment when we compare it to that in Europe. The Turkish economy today is resilient against any schocks that can come from either inside or outside.” 

Suggesting that everyone should cherish the successes Turkey has achieved and that they should discuss how to carry the country even further, President Gül said in such meetings being held today, these issues will be discussed. Now that Turkey has caught this trend, it will continue to rise, he declared. 

“SOLIDARITIES WITH DIFFERENT REFERENCES WITHIN THE STATE CANNOT BE ACCEPTABLE” 

Turkey today is a country which has upper middle income, said the President, continuing: “Our goal is to make our country with even higher income and which has even higher democratic and legal standards and transparency. Especially the legal standards are of utmost importance. Until the 2000s, the foreign investment in our country did not even reach 1 billion dollars due to the poor standards in this area, but today the value of the foreign investment in the country is at least 10 billion dollars, which truly demonstrates trust in Turkey. In order for us to go further, we must consolidate and stregthen our position in this area. Let me reiterate at this point that the constitution and other laws are binding all. Separate solidarities within the state that take their references from different sources cannot be acceptable at all. Turkey’s effort to become a transparent country and its application of the law in all areas and for everyone equally are the most important tests on its way to become a high income country.” 

TURKEY’S OBJECTIVE TOWARD MEMBERSHIP IN THE EU 

President Gül further laid emphasis upon the significance of quality education and facilities on the way to becoming a country with high income.Turkey wants to be a member in the EU not only for membership in the club but also for reaching its democratic, legal and economic standards, stressed the President, referring to Norway, which he said is not a member of the EU, but “after it successfully concluded the negotiation process, it chose not to become a member. We, taking this example, should resolutely carry out our negotiation process and close all chapters with success as well. Doing this will provide Turkey with even higher standards in all areas.”

 IMPORTANCE OF PRIVATE SECTOR IN DEVELOPMENT

 Turkey, the President suggested, should not waste its energy in vain and expressed that while Europe and many parts of the world are going through grave problems and recessions, there is a historic opportunity for Turkey to grow in big steps. “We had partly seized this opportunity, but in the last period our growth rate went down a bit. We have to achieve more and this achievement will be possible with the private sector again. The locomotive of the Turkish economy is its private sector.”

The President continued as follows: “Turkey has left behind the municipal elections which have been harsh indeed. This toughness have been witnessed many times before and it is like a political tradition in our country, unfortunately. On the other hand, such things should not demotivate the business world and your energy. Stability and security bring growth and affirmative steps can be taken in such an atmosphere. We should look to the future with confidence now. Let no one be worried about the upcoming presidential elections. Yes, we have left behind the mayoral elections. We have seen some objections to the results in some places. What is important is that the elections and objections around them have been within the legal framework. It is natural in pluralistic countries that such discussions are made. However, such debates should not lead to polarizations and separations among people.” 

“A BRIGHTER FUTURE IS AWAITING TURKEY” 

President Gül further accentuated that a brighter future is awaiting Turkey, ending his speech with the following words: “I am aware that TUSIAD attaches utmost importance to the issues related to the EU and that it sincerely cares about Turkey’s problems. I’m sure that at the end of this meeting, valuable suggestions for the resolution of these problems ill be madew. All your studies and suggestions will be taken seriously. I hope that your meeting will be fruitful.”

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