Exporters vow to provide 250,000 new jobs

The pledge was in reply to accusations made by the Turkish Union of Chambers and Commodity Exchanges (TOBB) president that TİM was making empty promises.

Without identifying TİM specifically, TOBB President Rifat Hisarcıklıoğlu stated recently that those who have been extravagantly promising to create jobs are not being sincere. He said TOBB had rational reasons to defy calls to take part in a campaign to boost employment, using the Turkish metaphor that “we don’t have 1,500 sheep grazing on land that doesn’t exist.”

Speaking at the assembly’s 17th general assembly meeting on Thursday, TİM President Mehmet Büyükekşi said exporters were ready and able to create the promised number of jobs by the end of the year. “This is not just our expectation, but is a mathematical reality demonstrated by the surveys taken by our exporters, which were doubtlessly conducted correctly,” he noted.

Prime Minister Recep Tayyip Erdoğan recently called on Turkish businessmen, especially the TOBB, to shoulder some of the burden in the Turkish government’s struggle to decrease the unemployment rate by each member of the union hiring one additional worker. This would create several million more jobs. Although it toned down its stance later, the TOBB initially rejected this call, saying it was not in compliance with the cold realities of the business world.

TİM’s general assembly meeting was well-attended with thousands of participants. Prime Minister Erdoğan was present during the meeting along with nine other members of the Cabinet. The new leader of the main opposition Republican People’s Party (CHP), Kemal Kılıçdaroğlu, was also among the attendees.

During his speech, the TİM head also touched on a number of other issues affecting the economy. In addition to the fiscal rule, Büyükekşi said Turkey needs a new anchor of confidence, which would include the parameters of the rate of exports over imports and the current account balance. Turkey would be far stronger and will have a much sounder economy if it adopts such an anchor, he claimed.

The TİM head also asserted that the government must find a way to fuel growth in the economy with exports. Quoting Hannibal’s famous statement that “we will either find a way, or make one,” Büyükekşi went on to say: “We are not asking for protection for exporters by putting them in a glass lantern. We have already turned into wizened eggplants. Hoarfrosts don’t harm us but we are not cooked well either.”

Exchange rate stability fund

A recent survey revealed that 68 percent of exporters see the overvalued lira and the unstable currency rates as the most significant barrier facing them, Büyükekşi noted, adding that predictability and stability for exchange rates are vitally important for exporters. He also argued that the central bank may determine an exchange rate for the lira by consulting exporters. In addition, a withholding tax must also be implemented for portfolio investments, which he deemed to be one of the most significant factors behind the currency volatility. His other suggestion was the creation of a “Currency Rate Stability Fund.” This fund will get its financial resources from a 1 percent withholding tax on the hot money inflows, or portfolio investments, in the country. Büyükekşi further claimed that such a measure would have virtually no effect on the entrance of foreign investment in Turkey. Finally, he asked for an increase in medium and long-term loan channels for investment goods produced in Turkey for export.

The strategy for $500 billion ready

Büyükekşi said TİM is working on a viable strategy to achieve the target of reaching $500 billion in exports by 2023, the 100th anniversary of the foundation of the Turkish Republic. The studies on the plan have been completed at the macro level, and a strategic map and performance program have already been drawn up for each of the 24 sectors represented by TİM, he noted.