Erdogan: World Is Turning Into A Giant Village

JEDDAH - Prime Minister Recep Tayyip Erdogan said on Sunday that the world was turning into a giant village in which every moving part affected the other.
Erdogan delivered a speech on ``Turkey: Economic Power Under Formation`` in the Fifth Jeddah Economic Forum in Saudi Arabia.
``In this global village, there is a discrimination between those who open their doors and gain together establishing closer economic and political relations and those who close their doors and isolate themselves in concern,`` Erdogan said.
Erdogan noted that the world had experienced many important political changes in the last ten years.
As the bi-polar cold war era ended, discussions on ``new world order`` started aiming at forming new powers and balances, Erdogan said.
Erdogan stated that world economy had a historic milestone in that process.
``Countries which make well use of technology became successful in this process while countries which were in an effort to continue old types of productions recessed,`` Erdogan said.
Erdogan went on saying, ``we call this new formation `globalization` today. We should know that the world is turning into a giant village in which one moving part affects the other. In this global village, there is a discrimination between those who open their doors and gain together establishing closer economic and political relations and those who close their doors and isolate themselves in concern. The world is being divided into two between those who make changes and those who only watch these changes.``
Within that framework, Turkey launched efforts to become a country which made changes and which won, Erdogan said.
Erdogan stated that Turkey had to totally change its economy in order to become an indispensable part of that global economy.
In that context, Turkish economy ended policies aiming at imports as of 1980s, Erdogan said.
Erdogan said, ``implementation of a comprehensive economic stability and liberalization policy by establishing a free market economy has constituted the basis of Turkish economy since 1980s.``
Turkey had exerted serious efforts to give priority to its own economic growth and to integrate with world economy in the globalization process, Erdogan stressed.
Erdogan said, ``as a concrete result of these efforts, Turkey became a founder member of World Trade Organization in 1995 and signed Customs Union with the European Union (EU) in 1996. Also, it signed free trade agreements with 16 countries. Turkey has not only become the focus of businessmen of countries in EU, Middle East, Commonwealth of Independent States and Black Sea region but also it has undertaken the role of an interaction among these countries in order to improve multi-lateral communication and relations.``
``Our efficiency in Eurasia and other geographies is increasing with the momentum we gain from our strategic and economic power stemming from our new position with EU. Similarly, we are improving our political and economic relations with EU thanks to our power stemming from our relations with Eurasia. As it is known, Turkey faced a serious economic crisis in 2000 and 2001 due to the Asian crisis and Russian crisis and due to the effect of stagnation depending on the decrease in domestic demand,`` Erdogan noted.
Erdogan stated that after International Monetary Fund (IMF) backed new economic program had been put into practice, positive results started to be taken.
``Restructuring of financial sector has constituted the basis of our action plan. The priority of our stability program is to achieve financial discipline and provide budgetary primary surplus. We continue a strategy in monetary policy aiming at reducing inflation in short term and giving priority to price stability in the medium term. Preservation of independence of Central Bank is of vital importance in this process,`` Erdogan said.
Erdogan went on saying, ``besides providing monetary and financial discipline, implementation of structural reforms create an atmosphere of confidence and eliminate indefiniteness in our country. As a result of these efforts, Turkey achieved a growth target of 7.8 percent in 2002 and decreased inflation rate below 20 percent by the end of 2003. Reducing inflation to one-digit rate seems possible in 2004.``
In addition to all those efforts, general debt burden had a tendency to decrease, Erdogan said.
Erdogan stated that Turkey was progressing towards complete use of its potential thanks to its reforms.
As independent regulation and supervision boards were restructured, banking, communication and market economy had gained a competitive structure, Erdogan said.
Erdogan noted that Turkey formed an independent board in especially electricity, oil and natural gas aiming at encouraging foreign investors in a free competition system.
Agriculture sector was being restructured, social security system was being reorganized in line with world standards and education system was being improved, Erdogan said.
Erdogan stated that Turkey was laying necessary legal groundwork for accelerating privatization process.
Turkey was offering wide opportunities to foreign investors today, Erdogan pointed out.
Erdogan said that many incentives, particularly tax exemption, were put into practice to attract private investments in underdeveloped regions of Turkey.
Turkey was in favor of a small scale but efficient public sector, Erdogan stated.
Therefore, Turkey started initiatives to privatize its tobacco and other state monopolies, Erdogan recalled.
Erdogan listed Turk Telekom, oil companies Tupras and Petkim among prior companies within the scope of privatization tenders which were also open for foreign investors.
Turkey aimed to make best use of opportunity to become the terminal of distribution of oil and natural gas in its neighbors, Erdogan said.
Erdogan drew attention that Turkey attached importance to improvement of communication infrastructure and market order which would enable electricity trade with Europe and regional countries.
The project which foresaw transportation of Caspian basin oil to world markets via Turkey was about to be completed, Erdogan said.
Erdogan noted that all those developments would make Turkey energy distribution center in its region in the future.
Touching on foreign capital, Erdogan said that Turkish government exerted efforts to rehabilitate investment environment in order to encourage inflow of foreign capital.
Erdogan noted that the government reviewed and simplified foreign investment process and brought new conditions.
``I could proudly say that Turkey has created an investment environment which can enable the most facilities to foreign investors among Middle Eastern countries. Process of giving documents to foreign investors has been simplified so that a foreign investor can get a result in one day. Turkey has also decided to behave foreign investors just as it behaves national investors. And, it has simplified procedures for foreigners who want to buy properties in Turkey,`` Erdogan said.
Erdogan stressed that differences between Turkish and foreign investors in front of courts were almost eliminated.
``When we consider our bilateral relations with Middle Eastern countries, we can see that our relations with regional countries have improved on basis of mutual confidence and cooperation. We don`t have any serious problems with Middle Eastern countries. But, it is a reality that our trade with regional countries is not satisfactory and it doesn`t show total trade potential of Turkey with the region. We encourage meetings of businessmen and participation in trade fairs in our region in order to increase trade with these countries,`` Erdogan said.
Erdogan added, ``Our public and private sectors undertake a serious responsibility to make efficient use of opportunities in Turkey and other Middle Eastern countries. In this context, I sincerely believe that governments of regional countries should support and encourage private sector in order to improve economic cooperation.``

ERDOGAN: ``I SEE IN THE MIDDLE EAST THAT WE LOST CONFIDENCE IN EACH OTHER. FIRSTLY WE SHOULD REGAIN THIS CONFIDENCE``
Erdogan later replied to questions of participants.
One of the participants said, ``although Turkey turned its face to western countries, it does not turn its face to countries like Lebanon and Syria in the Middle East.`` and asked, ``When will you attribute importance to relations with those countries? You want to be a center between Europe and Middle East. What should you do so that Turkey can be a road going to those countries?``
Erdogan in reply said, ``I see that my friend does not closely cover the performance of our government which had come to power on November 3, 2002. Current government is successful in improving relations with particularly neighboring countries. We are in an effort to improve relations with Syria, Iran and Iraq and Afghanistan particularly before and after unwanted Iraq war. Recently, I reached till to United Arab Emirates. We had necessary meetings there and conveyed the same difficulties. We favor development of relations.``
Stating that nearly 200 businessmen accompanied him during his visited to Saudi Arabia, Erdogan said ties should be strengthened by improving relations between businessmen, non-governmental organizations and exporters.
Erdogan said, ``policy does not direct economy in the world from now on. Economy directs policy. If so, economic relations should be improved. We should settle relations into an advanced position in the Middle East.``
Replying to a question if women had role in economic developments in Turkey and asked about the success of women on the issue, Erdogan said women did not have serious contribution to the political party he had been a member of in Turkish politics in 1989.
Erdogan said women were provided to take an important place among the founder members when Justice and Development Party (AK Party) was founded. He said nearly 20 percent of the Central Executive Board of the party were women members now.
Erdogan said this rate of women should be further increased, and that they attributed importance to this particularly for the position of Turkey in the world.
Islamic Development Bank President Ahmet Mohammad Ali was among those who asked questions to Erdogan.
Ahmet Mohammad Ali reminded Erdogan his statements that relations between Turkey and the regional countries would improve and asked, ``Turkey exerts efforts for European Union (EU) membership. We support this. How will Turkey provide the balance with the regional countries also being a member of the EU?``
In reply Erdogan said, ``by making joint investments, we have facilities to export to those countries what we produce. In case good evaluations are made about the investments, and if plans are made with which sector units we will make those investments, I believe that we will obtain very positive results. We have institutions taking steps in this respect. Yet, first of all confidence should be installed here.``
Erdogan said, ``I see in the Middle East that we lost confidence in each other. First of all this confidence should be restored. We are obliged to do this. Our regions should not be considered as a continuos market. It should be in the level of countries which produce and look for a market for itself in world markets. We should believe in each other for this.``
Erdogan said, ``we will exert efforts shoulder to shoulder, have confidence in each other and we will overcome the difficulties altogether. Turkey is ready for this.``

(BRC-AY) 18.01.2004