Deputy Prıme Mınıster Of Turkey Mehmet Şımşek Spoke In Uludağ Economy Summıt

Deputy Prime Minister of Turkey Mehmet Şimşek Spoke in Uludağ Economy Summit

'NOT MAKING REFORMS MEANS THIEVING FROM NEXT GENERATIONS'

In Uludağ Economy Summit that is the heart of the economy, Deputy Prime Minister Mehmet Şimşek stated that in the next 10 years, Turkey would undergo a great change. The minister Şimşek stressed that it would not be a realistic perception that Turkey did not need any reforms and everything was going smooth. Speaking in the Uludağ Economy Summit held for the fifth time by Capital and Ekonomist magazines, Şimşek said that we needed to refrain from middle income trap, increase the productivity; and so as to go up in the chain of added-value and raise the competitive power, Turkey needs reforms. Şimşek said, 'We do not have any second to lose. Not to make reforms means cruelty to next generations. It means theft from the new generation. Not making reforms would be such a big crime.'

The strategies about Turkey's future as well as the shifting balance in world economy were started to be discussed in Uludağ Economy Summit. Joining the first day's program of the summit, Deputy Prime Minister Mehmet Şimşek said, 'I am very happy to be at Uludağ, the summit of Turkey, Davos of Turkey. I congratulate all the precious people who contributed the organisation of this summit, particularly Capital & Ekonomist magazines group and the sponsors.'

Stating that he joined almost all of the Uludağ Economy Summits, for which he contributed much for its success, the Deputy Prime Minister said, 'But I believe that in such a period with global terror threat, it is a great success to bring together so many people from the world and from Turkey. To carry this even further, we'll continue putting on as much support as we can.'

'There Can Be No 4th Industrial Revolution Without Qualified Manpower.'

Making a presentation about the events, occurrences and future structural reforms in the past years of Turkey, Mehmet Şimşek claimed that by reading well between the lines of structural reforms, there can be great business opportunities found. Stressing the importance of the education, Mehmet Şimşek said, 'Now you will be talking about the 4th Industrial Revolution in this summit. Without the qualified manpower, can we talk about making the 4th Industrial Revolution or being a part of it' It is needless for me to say how late we began to the previous industrial revolutions. Thus, so as not to be too late for this industrial revolution, education is of prominent value.?

'At the root of interest debates, lies the insufficiency of savings.'

The Deputy Prime Minister continued his speech by mentioning Turkey's capital sufficiency rate is two times more than the global norms, and the missing part is the savings. He stated that 'Surely, the savings in Turkey are low. It is hard for us to grow as much as China or India with these saving rates. Let us be realistic. We need to increase the savings. Actually, this is what lies at the root of interest debates nowadays. If Turkey's savings were sufficient, the capital markets were deep, with this performance of fiscal policies and reform agenda, Turkey's risk premium and interest rates could have been a lot lower.

Stressing the global conjuncture, fiscal policies and reform agenda requires this, Şimşek said the following:

'We have little savings. Today, the credits' rate to deposits has reached 120 percent. Looking from Turkish Lira perspective, credits in lira's rate to deposits in lira exceeded 140 percent. So the system does not have the depth. The system needs external sources. From the outside, they do not look so well towards developing countries. This problem is not only about Turkey. Last year, there was 540 billion dollars of capital flight from developing countries of the world. Where did the capital flee to? To the countries with negative interest. Because there is a fear, a concern. What is this concern about? It is about the growth and geopolitical tensions. This is not only the problem of Turkey; so we need to read the situation carefully. There was some serious capital flight from Turkey last year. However, it was also the case with the other developing countries. Systems narrowed, interest rates increased. Hence, we need to deepen the system and increase the savings.

'If There Is Any Success, It Belongs To the Private Sector"

Talking about the implementation of school-oriented budgets and the transferral of all vocational high schools to the Turkish Union of Chambers and Exchange Commodities, Mehmet Şimşek said: "Come and open a vocational high school, and provide 'on the job training?. And we will cover all of your expenses. We will give a certain amount of financial support per student. We will provide every kind of 5th area economic stimulus. This is a reform. The role of the private sector is vital. We can talk, provide the necessary environment and reforms. But the success is yours."

Şimşek added that "If there is success, it belongs to the private sector. It belongs to those who are present in this hall. I congratulate you."

Construction Income Should Be Transferred To The Public

Emphasizing that the R&D reform has been completed and the patent reform has been sent to the National Assembly, Deputy Prime Minister stated: "Transparency is an especially significant topic in the fight against corruption. This is also what lies behind the negative perception in this respect in Turkey. In fact, Turkey has covered a long distance in the fight against corruption."

Şimşek who also highlighted the significance of the application of rule-based construction plans in local governments, said: "It is really significant that construction income is transferred to the public. Therefore, we are working on important reforms in these areas. We will take the necessary steps."

657 Needs To Be Changed Radically

Şimşek also touched upon the need for reform in the public administration and stated that the 'raison d'etre' of civil servants and public sector workers is to serve the nation:

"This is the essence of our understanding. But if there is job guarantee, high wages and little work... If you do not measure performance, and at the same time give job guarantees and high wages in comparison with the private sector, then it is not possible to get efficiency. We need to clear the way for the business world and provide better quality services to our citizens. Therefore, we need the support of the people very much. There has been a lot of talk, but we could not make enough progress. But in this term, we should radically change the 657.

"The Quality of Institutions, Demographic Structure and Efficiency Are the Three Determinants of Prosperity"

Talking about reforms in the road map prepared in order for Turkey to display better economic growth performances in the next years, to reach the desired level in economic indicators and for the improvement of the environment of investment, Mehmet Şimşek continued his presentation stating:

"In the long run, we will all be dead of course. But the long term is still significant. In the long term, the quality of institutions, demographic structure and efficiency... These three are the determinants of prosperity. Per capita income is the determinant of high growth rates. I you remember, I have built the whole story on this fact. We should increase the quality of institutions, continue with the European Union process and reforms. We should increase efficiency and investments and decrease the obstacles in front of competition.

Strong Sponsor Support

Its main sponsor being Garenta for the fifth time, Uludağ Economy Summit has co-sponsors such as Ferko, Nef, Samsung, Turkcell, Türkiye İş Bank, Türk Telekom and Vodafone. Furthermore, Akkök, Cisco, Citibank, Doğa College, Danone Nutricia, Global Yatırım Holding, Intel, Siemens, TEB, Tekfen, Verifone and Zorlu Holding are session sponsors. The supporting sponsors are Financial Associations Union, Credit Reference Agency and TAV Airports. CNN Türk and Hürriyet are the media sponsors of the Summit; event sponsors are Comodo, Denizbank, Integral Securities, Park Residences; accommodation sponsor is Ağaoğlu and beverages sponsor is Uludağ Beverages.

(Tür: English News)

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