Union of Chambers and Commodity Exchanges of Turkey

Hisarcıklıoğlu warns against changes in liquidity, market and energy in the global system

07.03.2014 / İstanbul

During his speech at the “Changing Global Economy and Turkey” panel held as a part of the ICC Board of Directors’ Turkey schedule, TOBB and ICC Turkey President, ICC Board Member M. Rifat Hisarcıklıoğlu urged caution against significant changes in the global system. Hisarcıklıoğlu drew attention to a global decrease in liquidity, efforts to form a new market led by the USA and changes to the global energy map.​

The opening speeches of the panel were given by TOBB and ICC Turkey President, ICC Board Member M. Rifat Hisarcıklıoğlu, ICC President and McGraw Hill Board President Harold McGraw, Economy Minister Nihat Zeybekci and the Customs and Commerce Minister Hayati Yazıcı while Australia G20 Sherpa Robert Milliner, ICC Secretary General Jean-Guy Carrier, İstanbul Chamber of Industry President Erdal Bahçıvan, Garanti Bank Director Ergun Özen and Treasury Undersecretary İbrahim Çanakçı made presentations.


M. Rifat Hisarcıklıoğlu reported that the meeting was the first held by the International Chamber of Commerce in 2014 and went on to provide information regarding the history and structure of the organization. “The ICC was founded in 1919 by a group of entrepreneurs in order to heal the wounds of WWI. They had a shared goal: To bring prosperity to the world. The group called themselves ‘the merchants of peace’ took on great risk by forming this international organization during the 20th century, a time rocked by global upheaval.


This presented such a risk in that there existed no system in the world then similar to what is present today in regards to global trade, investment and financial relations. In fact, there wasn’t really much in terms of international organizations,” said Hisarcıklıoğlu and stated that the merchants of peace brought together the representatives of private sectors of various countries under a single banner in a world beset by enmity. ICC has become the world’s largest business organization with national committees in 130 countries with 6.5 million establishments, chambers and foundations as members.


- 3 important changes to the global system


Stating that the world is undergoing an important period in time, Hisarcıklıoğlu stated that precautions must be taken in regards to 3 important changes in the global system.


A new global financial environment will emerge, said Hisarcıklıoğlu and stated that the abundance of liquidity seen during the monetary expansion before and after the global crisis was over.


Pointing out that easy and cheap access to loans was no longer present, Hisarcıklıoğlu said, “Establishments and individuals must act with greater care. We must focus on adapting to the new order as well as preserving the balance of growth-employment-prosperity as the government and the private sector.”


The second matter is the restructuring of global trade and investments, Hisarcıklıoğlu said, “Regionalism is gaining speed in the world. The USA is leading the world in this. First, the Transpacific Partnership Agreement was signed with the pacific countries – Japan, Korea, Canada, Australia, Malaysia and Mexico. The USA also sped up its work towards the Transatlantic Trade and Investment Partnership with the EU.”


Emphasizing the importance of these to enterprises, Hisarcıklıoğlu said, “First of all, this provides an alternative to the World Trade Organization’s trade liberalization talks. These two enterprises together equal two thirds of the world’s economic power. This grants great determining power in regards to trade and investments as well as production standards. As an example, consider that all of our products are designed with 220v in mind. If they adopt 110v as standard, we would have to restructure our whole production capacity. This means that there will be a great divide between those included and those excluded from the new global order.”


- Global energy map changing


Stating that the third important issue in regards to global change is the changes coming to the global energy map, Hisarcıklıoğlu said, “Many energy dependent countries have become self-sufficient through shale gas. As an example, the USA now produces the energy it used to buy for 10 USD for 3 USD.


This means that the production which shifted from America to the Far East in the last 20-30 years will shift back to America. In this new order where energy balance is being redefined, production relations will also be reshaped.”


TOBB and ICC Turkey President, ICC Board Member M. Rifat Hisarcıklıoğlu stated that Turkey has been effected by this process of change to the global economy, “Firstly, the shrink in the finance flow in recent months. We will need to prepare ourselves for the new order. That is why we, as TOBB, are working with global business leaders, the ICC as well as our counterparts in the EU and the US. We also inform the public in regards to our efforts.


We cannot solve global problems by ourselves. The world is not as it once was; complicated global economic structure requires joint action. G20 is developing joint action plans in order to revitalize global growth and employment. The driving force behind global economy for the last 60 years has been international trade and from here on out, global development will be sustained by trade. This puts great importance on the union of ICC and G20.”


- G20 governments in search of investors for infrastructure


“I was in Sidney along with the Deputy Prime Minister Ali Babacan last week for G20 meetings. We exchanged ideas on how to increase infrastructure investments with leaders of the business world and governments. This is of vital importance for us. The global economy is in need of 57 trillion USD of investments until the year 2030. If precautions aren’t taken 20 trillion USD worth of these projects will be shelved.


This would cause the slowing down of global economic growth and the loss of 160 to 200 million job losses worldwide. This is why G20 governments are in search of infrastructure investments.


We are producing solutions for these issues. As the, ICC we have successfully relayed the views of the business world to the G20 Advisory Group and the G20 leaders.”


Having taken on active roles in B20, the business arm of the G20, in the last four years, Hisarcıklıoğlu reminded that G20 term presidency would pass on to Turkey in 2015.


Stating that they put great importance on this process and are preparing earnestly for it, Hisarcıklıoğlu said, “That is why we will be holding a panel to discuss how best to contribute to the G20 as the business world following the opening remarks of our ministers and the ICC President Mr. McGraw.”


- ICC President McGraw


International Chamber of Commerce and McGraw Hill Financial Group Board President Harold McGraw described Turkey as a rising star and said, “There is always tension in this region but you show that you know how to treat your people, how to increase the growth of your country and how to protect your people. The rest of the world is watching you closely.”


Stating that the first goal for G20 countries is growth, followed by increased employment, McGraw said that they want to aim to increase the size of the middle class and develop it; to appreciate the importance of SMEs and to solve their problems – policy should always be made with this in mind.


Praising Deputy Prime Minister Ali Babacan for his leadership, McGraw went on to talk about the Transatlantic Trade and Investment Partnership as well as answering questions from the press.


- Economy Minister Zeybekci


Economy Minister Nihat Zeybekci said, Turkey’s economic foundations are solid. I believe that the players from both Turkey and the international markets are aware of this fact. That is why the global confidence in Turkey will persist in the future.” Zeybekci stated that the global economy is undergoing a period of change and that there are strong indicators of recovery from the crisis of 2009.


Minister Zeybekci stated that Turkey would take bold steps to open the way for permanent capital investments. He went on to touch on issues with regards to TTIP and the importance of the G20 platform for Turkey.


- Customs and Commerce Minister Yazıcı


Customs and Commerce Minister Hayati Yazıcı stated that Turkey is located in a difficult region but one full of opportunity and said, “As a country, we defend peace, stability, solidarity and democracy in our region.”


Yazıcı went on to assess developments in regards to the Turkish economy as well as the global economy.


- Treasury Undersecretary Çanakçı


Treasury Undersecretary İbrahim Çanakçı said, “Achieving exit from ultra-lax monetary policies while minimizing damage to the global economy is the question which we are now faced with.”


Çanakçı drew attention to the importance of G20 in bringing together both developing and developed countries in regards to preventing relapses towards economic crisis and maintain stability.

Name Surname
Your Email
Your Friend's Email
Your Note
Your message has been sent
Thank you