Union of Chambers and Commodity Exchanges of Turkey

The 72^nd General Assembly of the Union of Chambers and Commodity Exchanges of Turkey (TOBB) was hosted at TOBB ETÜ by M. Rifat Hisarcıklıoğlu with the attendance of the TOBB community, bureaucrats and politicians.

In his speech, Hisarcıklıoğlu emphasized that Turkey has no recourse but entrepreneurship in reaching prosperity, “We need a new generation who will innovate,” stating the need for an overhaul of the incentives system, urging support for high added value activities. Hisarcıklıoğlu emphasized a need teaching SMEs to export in order to increase the national export volume.

TOBB President M. Rifat Hisarcıklıoğlu said in his speech:

“As a community, we’ve always stayed loyal to the advice that consultation is tradition. Thanks to you, we’ve become the voice and heart of Anatolia. We are one, we are great and we are lively. As we stand together, our voice rises in volume. We’ve overcome obstacles; we’ve achieved new successes.

Our Chamber and Exchange community has become the unified power of the private sector. Our Chambers and Exchanges have become modern institutions which best represent the private sector, seek solutions to their members’ problems with a quality of service on par with European standards.

We’ve not given up in the face of adversity. We’ve not focused on the negatives. We’ve become a role model for all countries in the region surrounding us. We now have a voice in all global business organizations active in global markets. We’ve become pioneers of change and transformation. We’ve shown the whole world what this nation is capable of. We profited and so did our country.

We achieved this all thanks to our Chambers and our Exchanges. Thanks to all of you in this hall. I would like applaud you who work tirelessly day and night with no recompense for the better of our country and nation.

But is all of this enough? Never, it should never be enough! We who produce, create jobs, export and invest, deserve better. This nation deserves better. We have great goals ahead of us.

If we want to achieve our goals; if we do not want to be left behind, we must work harder than we’ve worked before. Be assured that if we stop for a moment we will lose. As Mehmet Akif wrote: ‘Those who stand still have no right to life. Mortality does not stop. If you halt you will be trampled.’

Developments in global competition prove this right. The most developed countries of the world are forming alliances in order to not be left behind.

·          The USA is initiating a new trade and investment enterprise with the EU.

·          At its other coast, the USA is forming a partnership with Asia-Pacific countries.

·          These are alliances which will shape the global economy.

·          EU has signed FTAs with 21 countries in the last 5 years in order to expand its market.

·          China has ventured into Africa, making its place in the African market as well as staking its claim in the continent’s mineral wealth and expansive land.

·          Industrialized countries lead by Germany are working towards a new industrial revolution. China and Korea and also investing heavily into this endeavor.

·          Developing countries are continually enacting reforms in order to draw in investments. They are making their legislation friendly to investor and rising in the ease of business index.

Turkey has written a success story in recent years. However it is impossible to keep the same growth rate with those methods; it’s not even possible to maintain our place. We must draw a roadmap and go forward each day. In order to grasp a brighter future for our nation, we must make the star of our country shine once more. We must reinvigorate our real sector.

While reforms to increase the competitive power of companies are in review, we anticipate the support of both the ruling and opposition parties like before. Turkey needs a new growth and industrialization model. We must maintain and strengthen our reform agenda. We must do this with unity of thought and solidarity.

Courts are unable to bring swift and correct verdicts to trade disputes. There are significant problems in regards to business courts, committee of experts and dishonored cheques. Steps necessary to bring solution to these matters must be taken with haste.

To this end, new mechanisms such as arbitration and mediation must be put in practice. QR coded cheques are becoming mandatory in order to solve the issue of dishonored cheques. Mediation is becoming mandatory in instances of employer-employee disputes. Likewise, we must transition to a system wherein disputes under a specified amount should be subject to arbitration.

In preparation, we have established arbitration and mediation centers at our chambers under TOBB’s umbrella. In doing this, we have achieved a first with the Ministry of Justice, Court of Appeal and State Council.

Members of the business community and the judicial system have convened three times in the last year, sharing their points of view. These consultations have been very fruitful. I would like to thank Minister of Justice Bekir Bozdağ and Customs and Commerce Minister Bülent Tüfenkçi for their contributions to these endeavors.

The Investment Incentivization System must be updated with regards to current conditions. Activities which innovate and will provide more added value through technology receive better support. Incentives should be given on a per project basis. Not just new investments should receive incentives but production as well.

A saying in Anatolia goes, ‘If you don’t like what you reap, look to what you sow.’ If your business doesn’t perform like it used to, then you should be looking to how you conduct your business.

Today, developments, especially in 3 specific fields, will determine the future of many economies. These are biotechnology, nanotechnology and information-communication technologies. These three will completely transform the way all sectors and how they function soon. We should focus on these.

The world is discussing Industry 4.0. Germany, the US and Korea are taking serious steps in this endeavor. We should also be prepared. We should establish a Technology Development Fund to support companies which would bring such high tech to Turkey.

We’ve worked with all Ministries on this subject at YOİKK. Deputy PMs Lütfi Elvan and Mehmet Şimşek, Minister of the Treasury Naci Ağbal Industry Minister Fikri Işık, Internal Affairs Minister Efkan Ala, Customs-Commerce Minister Bülent Tüfenkçi have taken on trailblazing roles in these matters.

Hopefully with their efforts, we will take the necessary steps to strengthen the private sector’s desire to invest. That way, it will be possible to spread economic activity and prosperity to every corner of the country.

It is very gratifying to see more Anatolian companies among the largest industrial companies of Turkey. This trend should continue to grow, eliminating imbalance between regions. The participation of local actors in regional investment decisions is vital. To this end, we must further develop the effectiveness of Regional Development Agencies.

Another important issue we must focus on is increasing our export volume. The Economy Minister Mustafa Elitaş is expending a great deal of effort to this end. We can’t reach 500 billion USD export volume by selling the same goods to same market and the same companies. We must change our export support system to ‘new goods, new markets and new exporters’.

We must teach our SMEs to better export. If we want to increase the number of companies who export goods to 100,000 it is in our chambers and exchanges that we will find the necessary resource to achieve our goal. Effort is the wings of humanity said Mevlana. This community is ready to make the sacrifice and start a new era in exporting.

We also need a comprehensive foreign investment model. Our goal should be to expand worldwide via international domestic companies. Turkey is not just a country which draws in investment, but also invests itself internationally. In the last 5 years, our companies have invested 23 billion USD in direct investment in foreign countries. This is 1.5 times the amount of investments made in foreign countries in the last 50 years together.

We must use this resource more effectively as well showing our investors the viable opportunities for investment in foreign countries. In doing this, we must retain the headquarters, especially the R&D centers of these countries here. We are working on a export and investment model with the Economy Ministry. We hope to improve the situation.

E-commerce has come to the fore globally recently. This lowers the cost of business as well as increasing businesses’ range. We must make use of this opportunity and enact a digital transformation of our economy. We must propagate the use of cloud tech among SMEs. All of these will trigger an increase in productivity.

As digitalization of SMEs increases, our present infrastructure will become insufficient for us. In Korea, there is 6,000 meters of fiber optic cables per kilometer square. This is only 300 meters in Turkey. This is time completely cover the country in fiber optic cables. The work of Minister Bilanli Yıldırım in attaining high technology status for Turkey is very encouraging for us.

Our greatest problem is still off the record economy. We must incentivize registered economy and reward it while increasing the penalties for off record economic activity. The tax system should distinguish between those who conduct business properly and those who don’t. Those who regularly pay their taxes should be protected so that everyone is encouraged to pay their taxes.

The legislation should be simplified. Cost of registered business should be decreased. I would like to thank Minister of the Treasury Naci Ağbal at this juncture. He always consults with the private sector and creates an environment in which we may work together.

I would like to touch on another problem in Anatolia. Everyone should conduct their business according to the law. Anyone who doesn’t should be penalized. We do not expect any special treatment.

However, what will be the cost of destroying a business on a whim? Just as we pay for our mistakes, erroneous and arbitrary inspections which cause us loss should also be penalized. Our hard working entrepreneurs should not be at the mercy of bureaucrats and inspectors. The work of years, effort and prestige should not be destroyed arbitrarily. Those who cause this should be punished!

In order to maintain the competitive power of our real sector we must continue to lower the costs of employment. Let’s change the policies which punish employment like the mandatory employment of some professions. Let’s abolish out of date taxes like the stamp tax.

We must integrate our agriculture sector to the world and brand it. Seeing Minister Faruk Çelik hard at work towards this goal is motivational for all of us.

In regards to access to financial tools, we need to ensure that our companies are not beholden to companies. We must find a solution to the real sector being subject to high interest rates and commissions. Banks always expect us to make the sacrifice. They should not be doing this; it’s their turn.

I ask you: Who among you profits as much as banks do? Is there anyone who comes close in this hall? I call on banks to abandon their unscrupulousness. Do not forget that we are all in this together. You exist so long as those who are in this hall do!

I would like to talk about a sector which has encountered significant problems recently. You know that tourism is a sector in which our country comes to the fore on a global scale; it brings in the highest amount of foreign currency. We are the 6th most preferred tourism destination in the world.

However, 2016 will be a difficult period for tourism. Reservations are almost down to half. Tourism invigorates many other sectors and has one of the largest reaches among sectors. We need the government’s assistance in preserving our capacity.

State burdens on the sector need to be reduced for a period of time. We are gratified to see that Tourism Minister Mahir Ünal has focused on this issue. Hopefully once these dark clouds dissipate, we will be able to continue from where we left off.

As the business community, we must also criticize ourselves where necessary. We always complain that the legislative process is slow but we don’t use the means available to us. The solution is here; use it. Add an arbitration clause to your contracts. Disputes are resolved the fastest through arbitration.

Another issue is vocational training. For professions classified as dangerous or very dangerous, the employees need to be certified as of the 25th of May. The business community isn’t very aware of this fact. TOBB is doing its share with the establishment of MEYBEM. We are providing certification in 81 provinces through our Chambers and Exchanges. The government is doing its share by offsetting the costs of exams and insurance premiums for a year. Make use of this opportunity.

The true treasure of nations is their spirit of enterprise. Turkey has no other way to prosperity than entrepreneurship. We need a new generation of innovators.

Turkey’s largest entrepreneurship network, Women and Young Entrepreneurs Councils were established with this goal in mind. We’ve organized thousands of entrepreneurship events in all 81 provinces. Along with the Department of the Treasury, we established the Turkey Investment Fund to support our entrepreneurs. TOBB has set aside 100 million TL for this endeavor. I would like to thank all the young and women entrepreneurs who embraced our efforts. I am especially proud of women entrepreneurs. The future of Turkey is in your hands.

We know the importance of the EU accession process for the financial and social transformation of Turkey. A gratifying new momentum has been achieved recently in this matter. The European Commission’s recommendation in regards to lifting Schengen visas for Turkish citizens has been met with gratification. We thank everyone who contributed to this.

We are also anticipating positive developments in regards to the Trans-Atlantic Trade and Investment Partnership between the EU and the USA. Our place in this agreement is very important for the future of the country’s economy and real sector. Our exclusion from this partnership would be a grievous regression in Turkey - EU relations. It will make it difficult for our companies to reach the largest market in the world. We must, therefore, be a part of this agreement.

Esteemed attendees,

The recent resurgence of terror is quite problematic for the business community in Eastern and Southeastern Anatolia. Craftsmen unable to open their shops, SMEs who are unable to conduct business, are unable to make money. We will fight terrorism to the end. We will stand by our people in that region.

Those people, who’ve always stood with the government, are attempting keep standing despite all they must face. Less business means less jobs means less prosperity. Because of their inability to pay debts, many of their records have suffered. Measures to address these issues need to be implemented.

I would like to draw attention to the state of the city. Kilis has a population of 130,000. The number of Syrian refugees they are hosting is 130,000. Solidarity on this scale is unseen in the history of the world. Residents of Kilis are writing history in terms of humanitarian aid. If the Nobel Peace Prize is awarded on merit, Kilis is the sole contender this year.

May Allah make heaven the abode of our martyrs and bring speedy recovery of our wounded veterans. Allah has decreed that whoever willfully ends the life of a believer shall suffer for eternity. Those who utilize Islam for terror, traitors trying to instigate ethnic unrest are attempting to terrorize our cities.

The 78 million will stand united against these heinous ploys. Those instigating terror will find no home in this land. Those living on these lands are all brothers, neighbors and relatives. Turkey belongs to us all.

As a nation, we must oppose all who harbor, enable or support terror. Where guns speak, peace is silent and so does politics. The place for politics is the parliament. There can be nothing good about terror! There can be no distinction between a little and a lot of terror! Terror has no religion, race, nation or sect. Terror is a crime against humanity. It should be condemned by all without exception or reserve.

I call on our allies who show insufficient support against terror. Show the same solidarity you did for Paris and Brussels for Ankara, İstanbul and Diyarbakır.

The single most important factor of living in a more modern, free, peaceful and just country is its constitution. We must find new ground for reconciliation with a new constitution.

In 2000, we were the first to pronounce need for a new constitution; we formed the Constitution Platform by bringing together professional organization and syndicates together in 2007. We held ‘Turkey Speaks – Citizen Constitution Talks’ in 2013 in 13 provinces. We gathered the views of 7,000 citizens during these meetings.

Our nation discussed at length what kind of Turkey they want to live in. We presented our 18 page report to the National Assembly Constitution Reconciliation Commission. We undertook the largest consultative democracy organization of the Republic’s history.

We saw that the people want a new constitution. We should prepare the new constitution together, embrace it and put it into effect. Entrusted unto us by Mustafa Kemal Atatürk, the republic will reach its goal of standing beside modern civilizations with a new constitution more easily.

Our National Assembly should form the new constitution in a participatory manner, by reconciling. The new constitution’s must have qualities as dictated by our people are: democratic, secular, social and respectful of the rule of law.

As the late Özal said, the freedom of expression, religion and conscience, as well as the freedom of enterprise must be preserved. We must transition to a mentality wherein the government does not rule over its people, but serves it.

In this process, the National Assembly, political parties and all institutions have parts to play. We must not allow Turkey to regress, to bicker, and to be dragged into chaos.

Let us render peace and dialogue dominant in our country, not fights and disputes. Let us stand against everything that would impede democracy and development. Let us come together for Turkey and work together.

We dream of a country where people aren’t discriminated against for their thoughts, choices and identities. We want to live in a country where people are judged by their accomplishments. Numerous life styles are a part of our cultural wealth. The cities which we are born in, our beliefs and thoughts may be different.

Both the problems and the wealth of this country are ours. Turkey belongs to us all.

Those who dream of Turkey stagnating will never come to pass. Turkey will take its place among the largest economies of the world. Those who will bring this about are those present in this room; the business community, traders and industrialists. As you produce, export and create jobs, Turkey will progress.

May Allah enrich your hearts; render your efforts fruitful; preserve the unity of our nation. Godspeed, may Allah aid us all.”