Union of Chambers and Commodity Exchanges of Turkey

 “Turkey needs a new economic model. The most basic element of the new model must be high technology. We need to put an end to unnecessary daily debates and focus on the main point,” Hisarcıklıoğlu said at the 11th summit of the Economy Journalists’ Association (EGD) in the northwestern district of Kartepe.

In his speech, he noted that Turkey lags behind many emerging countries in producing high technologies and has become stuck in the middle-income trap.

Hisarcıklıoğlu said that only 21 of the 100 most rapidly growing companies in Turkey are software and IT companies, compared with 60 in the United States.

“It is time to make new reforms. Turkey needs to distinguish itself in a geographical location embroiled a series of stiff conditions. It needs comprehensive educational, legal and administrative reforms,” he said.

 “We must not wait for the flow of investment to the eastern and southeastern regions only by the public sector … The role of the state must be to build the required infrastructure to lure the private sector to these regions to make investments,” he said.

Turkey is expected to reach around $13,000 income per capita by 2020 with an average annual growth of around 3 percent. However, Hisarcıklıoğlu suggested that if a “new story” is written in the Turkish economy through reforms, these figures could increase to $17,000 at around 7 percent growth.

- Turkey’s economy continues to grow

He noted that current growth signals were not strong in the first quarter of 2015 and net exports had not made a big contribution to growth.

“But Turkey still continues to grow. Unemployment is still a problem, but the private sector added 1.1 million new jobs in 2014. This figure is really good,” Hisarcıklıoğlu also said.

- “QR coded cheques will enter the market soon”

Reporting that QR coded cheques will be entering circulation following their meeting with Deputy PM Ali Babacan, Hisarcıklıoğlu stated that a new transaction instrument would become available.

By scanning the QR code of the cheque, one would have access to information regarding the transaction history of the person who gave you the cheque. This would include whether the owner has unpaid debts or has given out bounced cheques in the past, Hisarcıklıoğlu went on, “You would have the option of asking for a regular or QR code cheque. With QR coded cheques you would have additional information and not be working on hunches.”

- Turkey needs a new economic model

Turkey needs a new economic model that focuses on technological transformation, women’s participation in the workforce, and increasing entrepreneurship, stated the Union of Chambers and Commodity Exchanges (TOBB) President M. Rifat Hisarcıklıoğlu.

Pointing out that current deficit, seen as a driving force behind growth, can no longer be considered as such, Hisarcıklıoğlu reported that Turkey’s high tech production is only 4% while the average among OECD countries is 18%, stressing the importance of high tech production in economic growth.

- “In a sign of expressed malice, some companies are delaying bankruptcy”

Hisarcıklıoğlu stated that delaying bankruptcy has been problematic recently in that some companies are delaying the process in order to exploit their creditors. Also touching on the matter of “false black lists” falsely purporting that various companies are on the verge of bankruptcy, causing banks call in debts from these companies. Hisarcıklıoğlu has stated that he has already discussed the matter with the Banking Organization and Investigation Institution Chairman.

- Peace process

Hisarcıklıoğlu also stated that he and TOBB representatives met with Deputy Prime Minister Yalçın Akdoğan to discuss the economic ramifications of the peace process.

“If there is no peace, there will be no trade, and if there is no trade, there will no wealth. According to research, the most hopeful province for the future was the eastern province of Batman by around 90 percent last year, thanks to the signs of peace in the region. Batman was followed by the eastern province of Diyarbakır with 82 percent, the southern province of Gaziantep, the northwestern province of Kocaeli and the eastern province of Bingöl. So what the peace process brings is of crucial importance for our country,” he said.

Hisarcıklıoğlu went on to touch on various issues such as the need to look forward in a positive light, the need to expand beyond Marmara in regards to high tech and the vocal demand for a new constitution by all parts of society.