Union of Chambers and Commodity Exchanges of Turkey

 

The meeting was hold in Çırağan Palace with the participation of M. Rifat HİSARCIKLIOĞLU (President of TOBB), Nihat Ergün (Minister of Industry and Commerce), Ümit Boyner (President of Turkish Industry and Business Association-TÜSİAD), Ömer Cihad Vardan (President of Independent Industrialists and Businessmen’s Association-MÜSSİAD), Mehmet Büyükekşi (President of Turkish Exporters Assmebly), Rızanur Meral (President of The Turkish Confederation of Businessmen and Industrialists – TUSKON).

 

Turkish Industry Strategy, prepared by Ministry of Industry and Commerce, includes 72 action plans for the years between 2011-2014. Horizontal and sectoral politics form the basis of the Strategy

 

M. Rifat Hisarcıklıoğlu, emphasized the following topics in his speech:

- In the past, an industry lunge was needed for the development of the country, but circumstances changed and old way of development lost its meanings. Now, it is not enough to set up only a factory, we have to spend our energy and resource to produce high value added products

- Recently, our industry quickly integrated to the global economy, but this integration was lack of a certain strategy, and the rising of current account deficit totally related to this.

- Sectors which are the iron horse of industry are mainly dependent on import. Because of this dependency, the export which our industrialists hardly achieve, does not bring enough profit that we deserve. Industry grew %10 in the first ten months of 2010. However the rise in intermediate good import is %34 except energy. This is the case we faced with the globalization process. The reason of the import dependency is the old system of incentive.

 

We’ll Have A Great Award, If We Achieve

 

-TV production is pride of Turkey. One in three TV sold in Europe is the Turkish production. Recently beside Far East, now East Europe is also competing in the European market. This is because Turkey could not follow TV technology, LCD and plasma, and could not take the necessary measures on time. We could not bring the human resource, technology, research and development together to produce the new class technology TVs.

 

-Now we have the chance to change this picture. It is not an easy work of course, but if we achieve, the award will be great. Some countries, like South Korea, achieved it. Before 40 years, our per capita income was %20 of USA. Today we are %25, but Korea is %60. It means they lapped us two times. 

-The Strategy with its clearly defined mission and targets, has to be turned into a roadmap with the participation and adaptation of all public bodies.

-The reforms for taxation, education, justice and public administration has to be designed to make possible the healthy development of private sector.

 

Turkey’s Industry Route

-Turkey needs companies which survive in global economy successfully and make this success sustainable. Last year, in the list of world first 1000 companies, 52 Western companies gave their place to Chinese, Korean, Indian and Brazilian companies. It is interesting that the companies listed in the first 1000 are from the developing countries. However in the recent years, the Turkish companies in the list remained unchanged. The real success is to add new companies to the list. From this point, I see the Turkish Industry Strategy as a turning point.

-The investment incentive system has to be designed again in accordance with the Strategy Document.

 

Minister Ergün: “it is time to realize the reforms”

Minister of Industry and Commerce, Nihat Ergün, emphasized the following topics in his speech

- It is time to realize necessary reforms determinately in the microeconomic sphere added to the reliance and stability provided in the macroeconomic sphere. Strategy Document is very important because it will be the main instrument to realize such reforms.

 

-The Strategy will not be only a written document, it is going to be implemented starting with today, there are concrete and realistic plans in the Strategy Document.

-The Strategy Document will be revised in time; new actions plans will be added because Strategy Document is a dynamic document and   there are some projects prepared but not officialized yet.

-The Strategy Document aims to increase the competitiveness and the efficiency of the industry which is sensitive to environment and has social responsibility. The long term vision of the Strategy is to be the home base of Eurasia for the medium and high technologic products.

- There are three strategic target: 1) to increase the portion of medium and high technologic sector in the production and export 2) to transform the low technologic sectors to the high added value products 3) to increase the weight of companies which have tendencies to develop. 

-There are actions plans in the Strategy Document for the areas such as technology, research and development, design, branding, clustering, regional differences, companies scale, furthermore for SME, demographic structure, geographic and strategic location etc. This document will bring together all the parties. And a structure will be built in which sectoral politics, infrastructure works, incentives programs, regional differences will operate in coordination.

-Turkey’s attraction in macroeconomic sphere will reflect to the microeconomic sphere. So the enterprise of domestic and foreign investors will increase which brings more production and exports, increase domestic income, decrease unemployment and increase wealth of our country.

- The President of Turkish Industry and Business Association Boyner: “The Strategy Document is a positive step”

 

The President of Turkish Industry and Business Association Ümit Boyner, stated that the industry strategy document declared today, is evaluated as a positive step for promoting a competitive environment from the uncertain contributions of past periods and diverging from the incentive based industry policies.

 

Boyner, in her speech at the meeting where the Document of Turkish Industry Strategy was announced, indicated that they hoped the document would pave the way for the breakthrough of Turkish economy in 10 years ahead. 

 

Stating that today Turkish Industry as the locomotive of economy is in the need of moving up with a fresh and modern vision Boyner, asserted that they understood from a successful industry policy a bunch of policies which will enhance the productivity and efficiency of all sectors. 

 

Ümit Boyner, referring to the basic political fields that the strategy should be covered in said;

 

“In spite of the serious advancements of our economy in the recent period, we still need to carry out some reforms for improving the investment and job environment in order to protect the competitive power of the our industry. After the last economic crises that took place around the world, we have noticed with the help of non-governmental organizations and the private sector, there is a tendency to a new type of collaboration. Especially developed economies are forming their politics, legislation and organization structures in the leadership of private sector and not in the axes of stability but in the axes of growth. Turkey also in the forthcoming period needs not to compensate in its growth goal with the condition of regarding the macroeconomic balances.  Let’s remember that the slowdown of the world economy and the economic crises periods, have left us behind from our long term goals. Therefore Turkey can’t suspend the policies which will eventually increase its potential growth rate. In the long run, it must strengthen the policies which will bring its citizens close to the average per capita income rates of EU economies.” 

 

 -The President of Independent Industrialists and Businessmen's Association Vardan: “ We would have wanted petrochemical sectors to be included in the document”

 

The President of Independent Industrialists and Businessmen’s Association Ömer Cihad Vardan, asserted that they would have wanted petrochemicals sector to be included in the chosen 7 sectors in Turkish Industry Strategy Document, regarding Turkey’s geographical, logistic and substructure advantage.   

Vardan, in his speech at the meeting where the Document of Turkish Industry Strategy was announced, defined the declared document as “an important but belated study for Turkey.” And said “As being the offsprings of a country which delayed industrial revolution, to exist in the changing world order we believe that this is a valuable study which evaluates the opportunities of 2009 global crises, examines what could be done industrially to reach the goals of 2023 and which we hope that will give direction to our people.”          

 

Stating that even though Turkey had a much better economy than South Korea 40 years ago, today it is behind South Korea in terms of several macroeconomic indicators, Vardan explained how South Korea with its sincerely planned strategies and policies based on production and efficiency increase and science- technology-industry collaboration since the end of 1960s have accomplished to compete with capital and technology intensive industries and to generate a great deal of labels. 

 

Vardan, stated that  ‘ Turkey is, on the other hand, because of its’ planlessness, perhaps because of its’ infighting, today, in almost all sector  fall behind this country from whom it gets ahead of great numbers of sectors. This situation which we observed only by searching recent history, is a meaningful example that can be given to the importance of the industrialization upon development. Vardan who drew attention to manufacturing and marketing of products and services whose value-added  and brand equity are high and which are tied to Ar-Ge and innovation, in order for sustainable export increasing that is also primary target in the document, leads among  the most critical policies, emphasized that developing of systems that will  reduce imports especially in the sectors in which foreign trade deficit is given, and that will promote and expedite domestic production is of great importance.    

 

-TUSKON President Meral: ‘A working  method with goal and strategy’

President of Turkish Confederation of Businessmen and Industrialists (TUSKON) Rızanur Meral, also, by stating that ‘the wind, doesn’t help  to the ship that hasn’t got a route no matter from where it flows’, pointed out  the importance of Turkey’s achieving  the working  method with goal, strategy and action plan in addition to the content of Turkish Industrial Strategy Document. Meral, who emphasized that this document not should be a document that is put aside after sweet nothings but  should be alive and vivid working, should be revised and updated when needed, stated that ‘This document which is apparent to be prepared after long-term and comprehensive studies clearly presents the position of Turkish Industry in the eye of the World, also indicates coming along opportunities to us ’. 

                                                                                                                                                     

 -Büyükekşi: ‘Let’s use the wind that we caught properly’

 President of Turkish Exporters Assembly (TİM) Mehmet Büyükekşi, in addition, by stating that Turkey is rising as the biggest industrial production center of its’ region, performing high growth, increasing its’ production and employment, breaking records in its’ exports, said that ‘At the point we come, by using the wind that we caught properly, we want to pass next-step’.

 

Büyükekşi who expresses that in order for this achievement be sustainable, an approach in strategically level should be presented, adapted and coordinated is needed, also stated ‘there is a big deal of transformation need in Turkey’s existing sectors.       

                                                                             

Büyükekşi said that ‘Exactly because of this, we expect that Turkish Industry Strategy Document will provide strategic clearness, adaptation and coordination’.

 

 -The Content of the Strategy Document

The Strategy Document that is stated in the meeting includes fields of horizontal industry policies, providing  of effective running of the markets, improving environment of investment and carrying a business for the companies and primary elements that are devoted to make it attractive. Within this scope, horizontal politics which will affect the competitive power of all companies, will feature the requirement of coordination between different corporations, will raise  the qualification of labor force, will expedite an  access to financing, will improve innovativeness capacity, will decrease input costs, will increase environmental awareness will be performed.    

 

 Within the scope of sectoral policies, by making improvements in the fields of  ‘information and technology’, ‘competition’, ‘legal regulations’, ‘environment and energy’, ‘foreign competition and trade’ and ‘employment and geographical size’, increasing competitive power is aimed. Industrial strategy, by the coordination of the Ministry of Industry and Trade, with the collaboration of public and private sector will be performed, observed and evaluated.                                                                          

 

The document basically consists of 7 main chapter. In the document which is evaluated by taking into consideration the existing condition of Turkey, and foreign conjuncture, the industrial vision of Turkey that is carried out under the leadership of the Ministry of Industry and Trade and specified by the participation of all concerned stakeholders is being told. In the document in which fundamental component of the strategy are taken place, the policy of basic and horizontal industry is being dealed. In the document in which sectoral industrial policy fields are examined, the mechanism of performing, observing and coordination is mentioned.

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