Global Leadership ForumMay 26, 2012Mehmet ŞimşekMinister of Finance1
2Turkey: as a Leader CountryA Large & Growing EconomySuccess Story Political StabilityMacroeconomic Stability2023 VisionRo...
Turkey: A Large & Growing Economy3
GDP TripledSource: TURKSTAT200220112002 GDP,$ 230 bn2011 GDP,$ 772 bn4
5Turkey$ 772 BnBulgaria$ 53 bnGreece$ 303 BnSyria$ 60 BnIraq$ 115 BnIran$ 482 BnArmenia$ 10 BnGeorgia$ 14 BnAlgeria$ 190 B...
Source: TURKSTAT4,53,05,201234561924-2002 1993-2002 2003-2011Average Growth RatesA Rapidly Growing Economy6
A Young Population7Source: EurostatShareof15-24yearsinTotalPopn(%)16,879111315171921 AndorraItalyGreeceSpainPortugalGerman...
Growing Per Capita IncomesSource: TurkStat, MTP200220112002Income perCapita$ 3,4922011 Incomeper Capita$ 10,4448
What is behind the Success Story?9
Political StabilityKey to success is the strong political will!10
Political Stability11CoalitionGovernments(1989-2002)AK PartiGovernments(2003-11)GDP Growth 3.3 5.2Fiscal Deficit (% of GDP...
Sound Fiscal PoliciesFrom High to Low Budget DeficitPutting Debt on a Sustainable PathReducing Foreign Currency BorrowingL...
AK Party means Business0123456789101994-2002 2003-20117.73.3Source: Ministry of FinanceBudgetDeficit-to-GDP,%Achieved Maas...
Putting Debt on a Sustainable PathSource: TreasurySatisfying Maastricht Criteria since 200477,939,432,02030405060708020012...
Maastricht Criteria: % -3BudgetBalance-to-GDP(2011,%)-10,1-9,9-9,6-9,2-8,7-8,5-6,5-5,7-5,5-5,3-5,2-5,2-5,0-4,6-4,2-4,2-4,1...
Maastricht Criteria: %60Debt-to-GDP(2011,%)229,8160,8120,1106,8105,0102,998,588,186,382,582,481,580,472,271,868,566,255,44...
Zeroing Net Public Sector External DebtSource: Treasury23.788.48.001020304050607080902000200120022003200420052006200720082...
Lengthening Maturity of Borrowing18AverageMaturityofGovernmentDebtStock(Year)Source: Treasury123456789102005 2006 2007 200...
Serving for the PublicSource: Ministry of FinanceFrom interest financing budgets tobudgeting for the people!InterestPaymen...
Inflation Rates (1980-2012,%)107,2125,599,111,1020406080100120140 19801981198219831984198519861987198819891990199119921993...
Well-Capitalized Banking System Capital adequacy ratio (CAR), above many emerging markets. CAR, twice the minimum legal ...
Strong Asset QualitySource: BRSA22
High Return on Equity20 % ROE since 200723
2023 Vision24
Towards 2023…2023Nationalincome$ 2 trillionKaynak: UNFPA, PwC2011Nationalincome$ 772 billion25
Towards 2023…2023Income perCapita$ 25,000Kaynak: UNFPA, PwC2011Income perCapita$10,44426
Road Map towards the Future27R&D and InnovationEducationInfrastructure
R&D and Innovation28
Boosting R&D InnovationCreatingBrand NamesMoving up the Value Chain29
Why is R&D so significant for us?The share of high and medium-hightechnology sectors in production and inexport is lowBoos...
•0.842010•0.532002R&D spending to GDP rose by 58 %Source: The Scientific and Technological Council of Turkey31
Industrial Design Applications36,578 applications in 2011Up by 80 % since 2002Ranking 3rd in EuropeSource: TPI32
Trademark Applications• 36,5782002• 117,4442011Source: Turkish Patent Instıtute33
34Rising Patent Applications in Turkey10,010,511,011,512,012,513,0Turkey World12,710,72011RiseinPatentApplications(%)Sourc...
Improving Quality of Human Capital35
We againallocated thelargest shareto education inthe 2012budget.Resources Allocated to EducationSource: Ministry of Financ...
Improving Girls’ Education2002 201291 girls per100 boys100.4 girls per100 boys37
Improving Quality of EducationWith Fatih Project, we are providing our children withBroadband Internet AccessSmart BoardsT...
Enhancing Physical Infrastructure39
1,714 KmTotal of Motorways4,387 KmTotal of State andProvincial DualCarriagewaysTotal: 6,101 KmDual CarriagewayNetwork(Janu...
Investing in Railways AgainPRE-REPUBLIC RAILWAY NETWORK 4,136 km MAINLINEEARLY YEARS OF THE REPUBLIC (1923-1950) 3,764 km ...
High Speed Railway Projects42İSTANBULESKİŞEHİR POLATLIANKARAKONYASİVAS212km533km405kmYOZGATHST Lines under Construction: E...
Passenger Traffic at the AirportsNumber of FlightsSource: General Directorate of State Airports Authority0200.000400.00060...
Thank You…44
Upcoming SlideShare
Loading in …5
×

Global Leadership Forum

260 views

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
260
On SlideShare
0
From Embeds
0
Number of Embeds
7
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Global Leadership Forum

  1. 1. Global Leadership ForumMay 26, 2012Mehmet ŞimşekMinister of Finance1
  2. 2. 2Turkey: as a Leader CountryA Large & Growing EconomySuccess Story Political StabilityMacroeconomic Stability2023 VisionRoad Map for Future R&D and InnovationEducationInfrastructure
  3. 3. Turkey: A Large & Growing Economy3
  4. 4. GDP TripledSource: TURKSTAT200220112002 GDP,$ 230 bn2011 GDP,$ 772 bn4
  5. 5. 5Turkey$ 772 BnBulgaria$ 53 bnGreece$ 303 BnSyria$ 60 BnIraq$ 115 BnIran$ 482 BnArmenia$ 10 BnGeorgia$ 14 BnAlgeria$ 190 BnLibya$ 36 BnEgypt$ 235 BnTunisia$ 46 Bn $
  6. 6. Source: TURKSTAT4,53,05,201234561924-2002 1993-2002 2003-2011Average Growth RatesA Rapidly Growing Economy6
  7. 7. A Young Population7Source: EurostatShareof15-24yearsinTotalPopn(%)16,879111315171921 AndorraItalyGreeceSpainPortugalGermanySloveniaIrelandBulgariaLuxembourgSwitzerlandCroatiaCzechRepublicAustriaLiechtensteinSerbiaHungaryNetherlandsFinlandFranceDenmarkUnitedKingdomNorwaySwedenEstoniaUkraineMaltaPolandLatviaSlovakiaMontenegroLithuaniaIcelandFormerYugoslavRepublic…GeorgiaTurkeyMoldovaAzerbaijan
  8. 8. Growing Per Capita IncomesSource: TurkStat, MTP200220112002Income perCapita$ 3,4922011 Incomeper Capita$ 10,4448
  9. 9. What is behind the Success Story?9
  10. 10. Political StabilityKey to success is the strong political will!10
  11. 11. Political Stability11CoalitionGovernments(1989-2002)AK PartiGovernments(2003-11)GDP Growth 3.3 5.2Fiscal Deficit (% of GDP) 6.5 3.3Inflation 70.7 9.7Nominal Interest Rates 96.3 19.5
  12. 12. Sound Fiscal PoliciesFrom High to Low Budget DeficitPutting Debt on a Sustainable PathReducing Foreign Currency BorrowingLengthening Maturity of BorrowingServing for the Public12
  13. 13. AK Party means Business0123456789101994-2002 2003-20117.73.3Source: Ministry of FinanceBudgetDeficit-to-GDP,%Achieved Maastricht Criteria except 200913
  14. 14. Putting Debt on a Sustainable PathSource: TreasurySatisfying Maastricht Criteria since 200477,939,432,020304050607080200120022003200420052006200720082009201020112012*2013*2014*14
  15. 15. Maastricht Criteria: % -3BudgetBalance-to-GDP(2011,%)-10,1-9,9-9,6-9,2-8,7-8,5-6,5-5,7-5,5-5,3-5,2-5,2-5,0-4,6-4,2-4,2-4,1-4,0-3,9-3,9-3,8-3,4-2,6-2,1-1,0-0,8-0,60,14,0-11 -10 -9 -8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5JapanIrelandUSAGreeceUKSpainS. CyprusSloveniaSlovak Rep.FranceLithuaniaPolandNetherlandsEU-27BelgiumEuro AreaRomaniaPortugalDenmarkItalyCzech Rep.LatviaAustriaBulgariaGermanyFinlandTURKEYSwedenHungaryKeeping Deficit on a Downward TrendSource: IMF WEO April-12 and MTP 15
  16. 16. Maastricht Criteria: %60Debt-to-GDP(2011,%)229,8160,8120,1106,8105,0102,998,588,186,382,582,481,580,472,271,868,566,255,448,647,346,444,641,539,439,037,837,433,017,00 50 100 150 200 250JapanGreeceItalyPortugalIrelandUSABelgiumEuro AreaFranceUKEU-27GermanyHungaryAustriaS. CyprusSpainNetherlandsPolandFinlandSloveniaDenmarkSlovak Rep.Czech Rep.TURKEYLithuaniaLatviaSwedenRomaniaBulgariaKeeping Debt on a Downward TrendSource: IMF WEO April-12 and Treasury16
  17. 17. Zeroing Net Public Sector External DebtSource: Treasury23.788.48.00102030405060708090200020012002200320042005200620072008200920102011(BillionTL)17
  18. 18. Lengthening Maturity of Borrowing18AverageMaturityofGovernmentDebtStock(Year)Source: Treasury123456789102005 2006 2007 2008 2009 2010 2011 2012-AprilDomestic Debt Stock External Debt Stock Total Debt Stock
  19. 19. Serving for the PublicSource: Ministry of FinanceFrom interest financing budgets tobudgeting for the people!InterestPaymentstoTaxRevenues,%19
  20. 20. Inflation Rates (1980-2012,%)107,2125,599,111,1020406080100120140 198019811982198319841985198619871988198919901991199219931994199519961997199819992000200120022003200420052006200720082009201020112012From double digit tosingle digit ratesKaynak: TCMB20
  21. 21. Well-Capitalized Banking System Capital adequacy ratio (CAR), above many emerging markets. CAR, twice the minimum legal limit of 8 %.Source: BRSATarget rate: 12 percentLegal limit: 8 percent21
  22. 22. Strong Asset QualitySource: BRSA22
  23. 23. High Return on Equity20 % ROE since 200723
  24. 24. 2023 Vision24
  25. 25. Towards 2023…2023Nationalincome$ 2 trillionKaynak: UNFPA, PwC2011Nationalincome$ 772 billion25
  26. 26. Towards 2023…2023Income perCapita$ 25,000Kaynak: UNFPA, PwC2011Income perCapita$10,44426
  27. 27. Road Map towards the Future27R&D and InnovationEducationInfrastructure
  28. 28. R&D and Innovation28
  29. 29. Boosting R&D InnovationCreatingBrand NamesMoving up the Value Chain29
  30. 30. Why is R&D so significant for us?The share of high and medium-hightechnology sectors in production and inexport is lowBoosting R&DSource: Ministry of Development27,672.435,664.401020304050607080High and Medium-High Low and Medium-LowProduction Export30
  31. 31. •0.842010•0.532002R&D spending to GDP rose by 58 %Source: The Scientific and Technological Council of Turkey31
  32. 32. Industrial Design Applications36,578 applications in 2011Up by 80 % since 2002Ranking 3rd in EuropeSource: TPI32
  33. 33. Trademark Applications• 36,5782002• 117,4442011Source: Turkish Patent Instıtute33
  34. 34. 34Rising Patent Applications in Turkey10,010,511,011,512,012,513,0Turkey World12,710,72011RiseinPatentApplications(%)Source: World Intellectual Property Organization
  35. 35. Improving Quality of Human Capital35
  36. 36. We againallocated thelargest shareto education inthe 2012budget.Resources Allocated to EducationSource: Ministry of FinanceEducation is our priority.BillionTL36
  37. 37. Improving Girls’ Education2002 201291 girls per100 boys100.4 girls per100 boys37
  38. 38. Improving Quality of EducationWith Fatih Project, we are providing our children withBroadband Internet AccessSmart BoardsTablet PCsOther Information Technology Tools38
  39. 39. Enhancing Physical Infrastructure39
  40. 40. 1,714 KmTotal of Motorways4,387 KmTotal of State andProvincial DualCarriagewaysTotal: 6,101 KmDual CarriagewayNetwork(January 1, 2003)2,236 KmTotal of Motorways18,991 KmTotal of State andProvincial DualCarriagewaysTotal: 21,227 KmDual CarriagewayNetwork(March 15, 2012)Before 2003, only 6 cities were connected to each other via dual carriageway. Now, we have 74 cities21,227 Km3,125 Km3,061 Km27,413 KmDual carriageways put into serviceDual carriageways under constructionDual-carriageways to be put out to tenderTotal40
  41. 41. Investing in Railways AgainPRE-REPUBLIC RAILWAY NETWORK 4,136 km MAINLINEEARLY YEARS OF THE REPUBLIC (1923-1950) 3,764 km MAINLINE (134 km on annual average)1951-2002 945 km MAINLINE (18 km on annual average)2003 DEN GÜNÜMÜZE KADAR (2010 dahil) 1.076 km ANAHAT (Yılda Ortalama 135 km)UNDER CONSTRUCTION 2,047 km MAINLINE2003-2010 1,076 km MAINLINE (135 km on annual average)İSTANBULEDİRNEESKİŞEHİRPOLATLIANKARAKONYAİZMİRSİVASAFYONKAYSERİBURSA ERZİNCANERZURUMKARSMERSİNADANA GAZİANTEPDİYARBAKIRELAZIĞMALATYAZONGULDAKSAMSUNBANDIRMAVANTATVAN2010 : 11.940 km ( Konvansiyonel + Yüksek Hızlı )AdapazarıSource: Ministry of Transport2010:11.940 km (Conventional+High Speed)41
  42. 42. High Speed Railway Projects42İSTANBULESKİŞEHİR POLATLIANKARAKONYASİVAS212km533km405kmYOZGATHST Lines under Construction: ESK-İST and ANK-SİVASCompleted High Speed Train (HST) Lines: ANK-Eskişehir and ANK-KonyaYerköyHST at tender phase : Ankara-İzmir and Ankara-BursaAFYONİZMİRMANİSA 624kmBURSABİLECİK110 km
  43. 43. Passenger Traffic at the AirportsNumber of FlightsSource: General Directorate of State Airports Authority0200.000400.000600.000800.0001.000.0001.200.0001.400.0002003 2011154.218292.816218.405462.881156.582579.488529.2051.335.185Overflıght International Domestic Total020.000.00040.000.00060.000.00080.000.000100.000.000120.000.000Domestic International9.147.43958.258.32425.296.21659.362.14534.443.655117.620.469Domestic International Total43
  44. 44. Thank You…44

×