1. THE SPEECH OF H.E. MR. NIHAT ERGUN
MINISTER OF INDUSTRY AND TRADE
REPUBLIC OF TURKEY
Black Sea Economic Forum
27 November 2010

2. Distinguished President,
Distinguished Ministers,
Esteemed Head of Delegations,
Dear Participants,
I am very glad to attend at the Black Sea Economic Forum organized
under the auspices of the President of Ukraine by the Council of
Ministers of the Autonomous Republic of Crimea and I greet you all with
love and respect.
I would also like to express my pleasure in this Forum’s maintaining its
functional role as a bridge among the region countries.
And I think that it is important to hold this Forum in the period of recovery
after the global economic crisis.
Yet, the key to recovery from the global crisis is to enhance economic
cooperation among countries.
In the 21st century, the blowing winds of change across the world have
influenced countries’ areas of politics, economy, social structure and
culture and led to establish a new world order.
This new order that abolished the customs barriers and changed the
meaning of the economic and political boundaries has forced static
structures and directed the countries towards producing dynamic policies
and begun to gather different countries under a common fate.
Countries attach priority to open their national economies to the world,
increase market diversity and forge ahead in the international
competition race.
As it is not possible to enhance competitiveness alone, economic
cooperation processes and regional economic integrations have
gradually begun to gain importance.
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3. This reality has been marked especially with the global financial crisis, as
the fire that started in the developed countries has been spread to the
whole world.
Today, an occurrence happening anywhere in the world can influence
more or less all countries in the world.
This situation becomes a greater reality for the countries which share a
common geography, a common historical memory and close social and
cultural characteristics.
However, the areas of conflict that are contrived, ineffectual and inherited
from the past might be happening between the close countries.
If Germany and France laid the foundation of the European Union right
after the 2nd World War, we could also leave the past and look for ways
to build future.
We need to leave aside such prejudices that have no benefits for any
countries, get rid of heavy but insignificant burdens of the past and
develop our relations in the view of the “win-win” situation.
Distinguished Participants,
Since 2002, we have been developing our relations with all neighbors
and surrounding countries with the understanding of zero problem and
maximum cooperation.
Thus, we have sufficiently benefited from this understanding especially in
the economic field and increased our trade by 5, 6 and even 10 times
with neighboring and surrounding countries.
However, the power of bilateral relations is limited at a point therefore we
also attach importance to regional cooperation projects.
Among the top regions we give utmost important is the Black Sea Basin
which is one of the fastest growing economic basins.
In that respect, I consider this Forum as a very important event and
believe that it will strengthen the existing communication between
governments and business environment, reduce the problems and
facilitate new cooperation channels.
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4. Regarding its location, Black Sea Economic Region, has a key strategic
importance in trade, transportation and Eurasia energy path.
Covering a huge geography, our countries are quite rich in terms of
human resources as well as natural resources.
The importance of relations and interactions among region countries in
achieving economic growth can not be denied.
Trade among region countries is over 1,3 trillion, however there is still a
big potential gap.
Many strategic moves in world’s politics pass through this geography we
locate in.
Especially the developments in natural resources and energy corridors
concern all of us closely.
Although we have made serious progress in mutual investments, cross
border finance and trade between our countries, we fell behind other
regional formations in many parameters.
Therefore, increasing this geography’s economic power is of importance
for increasing the political efficiency of the region and providing stability
to the global system.
I believe that the cooperation atmosphere provided by the Forum will
strengthen the economic ties between our countries.
Turkey gives utmost importance to economic growth and development
the countries in the Black Sea Region.
We think that having powerful and stable economies around us will
reflect positively to our economy.
This is why we have always had positive approach to economic
cooperations to be developed in the Black Sea Economic Region and
made special effort to be involved in common projects.
The Black Sea Economic Cooperation (BSEC) of which Turkey is one of
the founders is the most comprehensive and structured formation in our
region.
We actively participate and contribute to all activities under this
framework and support the initiatives of the countries in the region and
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5. consider this formation as the most convenient instrument to develop
economic cooperation in the region.
In this context I believe that we should increase cooperation especially in
the fields such as energy, trade, health, environment and transportation
support initiatives in these fields and develop common projects.
When we look at the trade of Turkey with region countries, we observe
that positive developments are realized.
The trade volume which was only 10 billion dollars in 2002 reached 66
billion dollars in 2008.
Although the trade volume in 2009 deteriorated to 41 billion dollars as a
result of the crisis, there is a recovery again this year.
Our target is to raise our foreign trade volume with the countries in the
region to at least 100 billion dollars level.
However we do not consider right to limit our economic relations with
trade.
We desire to increase mutual investments between our countries and the
investments made jointly by our businessmen in other countries.
We should carefully work on common projects so as to provide our
economic, political, social and cultural relations with a more strategic
dimension.
For instance, this year Turkey has initiated a 10 days education program
for young diplomats of BSEC member countries.
Giving similar education to young diplomats every year by a BSEC
member will not only strengthen existing cooperation but also improve
the future diplomatic environment.
BSEC will have a more solid base when the projects like Black Sea
Environment Highway and Sea Highway are realized in the fields such
as energy, transportation, tourism, environment and security.
We should benefit better from the Project Development Fund which will
transform the cooperation between member countries into a project-
based structure.
Last, I would like to remind that the steps taken in privilege of transit will
accelerate economic relations.
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6. Distinguished Participants,
I would like to provide you some information regarding the developments
experienced by Turkish economy in recent years.
In order to increase competitiveness of our economy and improve the
business environment, we have carried out many reforms in legal,
institutional and economic fields and still continue to carry out.
Being the 16th and 6th biggest of the world and Europe relatively, Turkey
aims to be one of the 10 biggest economies of the world.
Gross Domestic Product which was 231 billion dollars in 2002 when we
were elected increased to 742 billion dollars in 2008.
Export which was 36 billion dollars in 2002 reached 132 billion dollars by
the end of 2008 and reached 102 billion dollars in 2009 despite the
global economic stagnation.
Turkey has one of the world’s vivid domestic markets with its dynamic
and young population and constantly increasing national income.
In recent years, we have become one of the most reliable economies of
the world by macroeconomic reforms carried out.
Recently, we have minimized the economic vulnerability by tight fiscal
discipline.
In the global crisis environment, Turkey enjoyed being the only OECD
member country where no financial institutions went to bankruptcy.
A few days ago, Moody’s, the credit rating agency, improved the outlook
for the Turkish banking system.
We have experienced being the last country affected by and the first one
recovered from the global crisis in the world and we have regained our
power from the crisis which badly affected many European countries.
In the first period of this year we have had an important growth rate of 11
% and we have become the fastest growing economy together with
China.
Lately, OECD revised the growth rate of Turkey as 8.2 % for the year
2010.
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7. Turkey supports the achievements gained in the macro economy with
the micro economic reforms.
As Government, we give huge importance to improve the investment
environment for both increasing the number of new entrepreneurs and
expanding the existing investments.
For Turkey to become a more competitive country, we are conducting
comprehensive studies in every field from developing financial system to
improving business environment, and from expanding R&D and
innovation to enhancing the infrastructure of energy and transportation.
We can easily say that we have an extremely innovative, dynamic and
competitive private sector.
Having lots of advantages for every kind of investor like raw material
supply, closeness to the markets, legal infrastructure, political stability
and young and huge population, Turkey is one of the most competitive
countries in the wide geographical area between the Italy and China.
Turkey, which only attracted 15 billion dollars foreign direct investments
in the 30 years period before our Government, managed to attract 83
billion dollars foreign investments in the last 7 years.
I invite our foreign guests here, to benefit from Turkey’s convenient
investment environment.
Having 22 companies among the biggest 225 contractor firms in the
world, Turkey is the second country after China which undertakes the
most work.
The member countries of the Black Sea Economic Cooperation can
benefit more from the experiences and skills of Turkish companies which
have realized more than 150 billion dollars commitments in 72 countries
in recent years in the infrastructural investments in their countries.
We are aiming to be the technological centre of Europe and Eurasia and
to be one of the 10 biggest economies of the world in the year 2023.
For this reason we give great importance to projects related with R&D,
branding and innovation in SME supports.
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8. We are increasing the numbers and qualifications of the Organized
Industrial Zones which we see as an instrument for planned
industrialization.
To increase the investments, we are applying a comprehensive incentive
programme all over our country.
Thus, we provide great supports for our entrepreneurs in the areas like
corporate tax, social security premiums, interest support, allocation of
investment land, Value Added Tax (VAT) exemption and customs tax.
I want to mention that we are ready to share our knowledge and
experience we have in all these areas with you.
Distinguish Participants,
To realize a sustainable economic development among us, we have to
strengthen economic and commercial relations among our countries.
Donated with a powerful structure and having many advantages, Turkey
will be one of the rising stars of the future.
For instance, according to OECD Turkey will be the fastest growing
OECD country in the period of 2011-2017.
Therefore, both Turkey and Turkey’s partners will win.
To increase the economic cooperation among the region countries one
by one, will develop a bigger economy in a cumulative manner.
These relations improved by the private sector will play a critical role in
region’s gaining political stability.
At the end of my speech, I want to remind that Turkey will always support
all the steps to be taken in this way.
I wish that the Forum which has brought us together in the period when
the world economy is going through an important stage will be efficient
and successful.
I want to thank all officials who contributed to the organization of the
Forum and all who share the same enthusiasm and once again I greet
you on behalf of myself and my country.
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