Ali Babacan said the world was undergoing rapid changes, and witnessing
abnormal market developments and substantial volatility every day.
"Strength of global economy is steadily fading away and outlook is
becoming bleak," Babacan said in a message he sent to the International
Monetary Fund (IMF) and World Bank.
Babacan will attend annual meetings of IMF and World Bank in Washington between September 23 and 25.
Deputy Prime Minister Babacan said debt crisis of countries went up,
which posed a serious threat and concerns about Euro Zone economies
increased.
Ali Babacan said political conflicts, and lack of coordination and decisive action were the result of those problems.
"Weak growth prospects undermined market confidence and made it harder to achieve significant fiscal consolidation," he said.
Babacan said Turkey had urged policymakers that they should develop a
medium-term approach and announce credible targets, which would help
re-build confidence in markets.
The minister said countries should improve the regulation of commodity
markets and increase the transparency of price setting mechanism.
Babacan defined high structural unemployment as another challenge, and
called on countries to prepare the workforce for the requirements of the
new economy through active market programs.
Minister Babacan said international policy (coordination and coordinated
efforts) were the key to all the challenges, and international
financial institutes, especially IMF, had pivotal role to play while
implementing those coordinated policies.
Babacan said the IMF should complete 14th quota review on time and implement restructuring of the board of executive directors.
On Turkish economy, Babacan said Turkey had a strong growth performance
in the last six quarters, and Turkey grew 9 percent in 2010 and the
growth rate jumped to 10.2 percent in the first half of 2011.
Babacan said Turkey created new job opportunities for 1.4 million people
in a year, which brought down unemployment rate to 9.2 percent from
10.2 percent.
The minister said Turkish government units, Central Bank, Treasury
Undersecretariat, and the Banking Regulation and Supervision Agency had
taken several measures in close coordination, and with those steps
Turkey tried to avert the overheating concerns curb excessive rise in
indebtness ratios and solidify financial stability.
Babacan said structural reforms implemented in last decade were one of
main factors behind the favorable economic performance of Turkey, and
expressed the governmen't commitment to enhance the effectiveness of all
those reforms and consolidated the success Turkey had achieved so far.
"We have been going through critical times for the global economy and
financial stability, and our decision and efforts have the power to
affect many years to come," he said.
Babacan said he was suggesting that all policymakers handle the issue with decisiveness and forward looking approach.
Deputy Prime Minister Babacan also said policymakers should not hesitate bite the bullet when necessary.
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Source : en.cumhuriyet.com
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