Recent initiatives assurance of growth, stability, state minister says

Noting that the recent and courageous initiatives by the government will address the ongoing controversies in the country and contribute significantly to raising economic standards, Minister Yılmaz also said: “It should be noted that we have been introducing new initiatives since we came to power. We have raised our democratic standards. We have made progress in the field of economy; regional development has gained momentum via specific projects. We create regional development agencies and we also cooperate with universities as well as neighboring countries to create new employment opportunities.”

GAP’s potential

Recalling that they have reserved a large amount of funds to make the attractive potential of the Southeastern Anatolia Project (GAP) more evident, Yılmaz underlined that the region has drawn the attention of local and global capital. The state minister responsible for GAP argued that the agricultural potential in the area where the project is being implemented will be doubled after the introduction of modern irrigation techniques. Stressing that the project area is suitable for planting organic corps, Yılmaz continued: “With the growth in production, the industrial and agricultural potential of the region will become more noticeable. Likewise, the area is also attractive because of its tourism and commerce potential. Thanks to this, the region gains the attention of local and global investors. The recent trends show that this interest will grow further in the years to come.”

Minister Yılmaz, who noted that dialogue with neighboring countries and the measures taken to create a secure environment in the country have an economic dimension, further said: “The democratic initiative will reinforce the peaceful environment and create a suitable atmosphere for the private sector. We believe that the southeastern region will become a center of interest to be heavily invested in by private sector players after the achievement of peace in the region. In fact, the private sector is dynamic in Turkey; it only needs the creation and provision of a suitable environment. The stable environment, incentive policies, and trade with neighbors will improve social welfare in the country. Regional growth is not achievable without trade with neighbors. We learned this fact through firsthand experience. These regions were highly developed at times when trade was intense and vibrant. Take ancient Mesopotamia. It was an advanced region because trade and fertile lands made this part of the world appealing to investors throughout history.”

The government has taken bold measures to reopen fertile lands to cultivation by speeding up modern irrigation projects, the minister said, adding that they have also followed a historical path and increased the volume of trade with neighboring countries. Recalling that the recent initiatives with Central Asia, Russia and Middle Eastern countries will increase the entire volume of trade in the region, Yılmaz said this will serve the interests of Turkey as well as other countries in the region.

Stressing that when the GAP project operates at full capacity, the foreign trade dimension will become more obvious, Yılmaz also stated that “the southeastern region was barely affected by the ongoing economic crisis; the volume of exports from the region did not go down. Regional development is an important element that will likely reduce the economic risks of the country.”

Noting that the benefits of market diversification have become clear with the global crisis, Minister Yılmaz stated that Turkey’s foreign trade with Europe had been negatively affected because the recovery of European countries from the global economic crisis will take additional time. Yılmaz said: “Surely Europe is important to us, and it will remain so. We will have to seek ways to increase our trade volume with European countries and our sales to the continent; but it is not reasonable to remain dependent on a single market alone. Europe is being affected by the crisis the most. Sadly, it is Europe that will recover from it last. If we had not diversified our market options, our export figures would have been smaller and the impact of the crisis would have been greater.”

The minister stressed that Turkey is eager to improve relations with other actors and players without making any distinction between them, noting that dialogue with the world has contributed to Turkey’s national economy and regional development.

Yılmaz, who underlines that Turkey must grow faster despite savings deficits, also said: “Money is money; it does not have an ideology or nationality. We are suffering from a savings deficit. And we have to grow faster. Turkey will not be able to achieve a faster growth rate without attracting global capital. We will not be able to provide employment and food for our people if we fail to secure this growth. Therefore, we have to obtain more funds and productive capital. There has been visible growth during our administration. We have acquired a total sum of $70 billion in foreign direct investment [FDI] so far.”

A suitable environment for global capital

Noting that the growing interest by global capital in Turkey reflects trust and faith in the future and legal order of the country, Yılmaz said: “The owners of global capital choosing our country for investment will contribute to our national economy and serve as assurance for our international relations. This is a positive development for Turkey’s stability as well because if you are an investor, you would not want to make an investment in an unstable country.”