TURKEY: COMBINING EUROPE AND ASIA

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egion/67846.html
Oct 31 2008
Serbia

Turkey’s strategic geographical position, with 70% of the world’s
fossil fuels being produced to its south and south-east, and the
relative strength of its economy, gives it a great opportunity to
play a leading role in the region, panellists agreed. Even while
it pursues its candidacy for the European Union, Turkey has been
successfully strengthening its ties with other regional groups.

Turkey’s strategic geographical position, with 70% of the world’s
fossil fuels being produced to its south and south-east, and the
relative strength of its economy, gives it a great opportunity to
play a leading role in the region, panellists agreed. Even while
it pursues its candidacy for the European Union, Turkey has been
successfully strengthening its ties with other regional groups.

As an example of Turkey’s strategic position for corporations,
moderator Alparslan Korkmaz, President, Investment Support and
Promotion Agency of Turkey (ISPAT), Turkey, noted that international
companies use it as a base for running operations in up to 90 other
countries. Microsoft, for example, manages its operations in 80 other
countries out of Turkey. Within a radius of four hours by plane from
Turkey, there is a market of 1.3 billion consumers, he noted.

Ali Babacan, Minister of Foreign Affairs and Chief Negotiator of
Turkey, said everybody defines Turkey as something different. For
some it is the most European point of Asia, for others the most Asian
point of Europe. It is at a "geographical crossroad," he said. The
country’s diplomatic efforts are getting more and more attention
worldwide. Turkey is as a "balancing power". This, together with its
economic and political reforms, helped it win election recently to
the UN Security Council, he noted.

The minister told the participants that there are good signs that
long-running disputes between Turkey and Armenia, and Armenia and
Azerbaijan can be resolved, opening up the prospect of a new more
positive geopolitical situation in the region. "These two tracks could
move fast because there is good political will," he said. "Imagine
a region in which you have totally new relations between Azerbaijan
and Armenia, and Armenia and Turkey. The consequences for trade,
for communications, for transport, for energy and the opportunities
are huge, so we will do our best to normalize the situation as soon
as possible," he said.

The recent crisis in Georgia has increased the incentive for countries
of the Caucasian region to improve ties, Babacan said. Turkey proposed
the creation of a five-state forum to include Russia, Georgia,
Azerbaijan, Armenia and Turkey to discuss regional concerns. The
response has been positive, although Georgia is insisting that Russian
troops withdraw first from all its territory, the minister said. This
is an example of how Turkey is seeking to use its special position
in the region to contribute to stability and peace across the region
and beyond," Babacan said.

Jean Lemierre, Senior Adviser to the Chairman, BNP Paribas Group,
France, said that Paribas is very optimistic about the outlook for
Turkey: "We speak in very positive terms of investment in Turkey. We
see a very positive market."

Ali Y. Koc, President, Koc Information Technology Group, Koc Holding,
Turkey; Young Global Leader, said that Turkey has all the ingredients
to be a regional powerhouse. It has shown that it is willing to be
a "broker of peace" in the region. But as far as the economy goes,
it needs to do more to strengthen its competitiveness.

Ibrahim S. Dabdoub, Group Chief Executive Officer, National Bank of
Kuwait, Kuwait, and Chair of the Arab Business Council, noted that the
Gulf Cooperation Council (GCC) is going through changes brought about
by the world economic crisis, but even if the oil price falls to US$
50 a barrel it will still have a lot to invest. "The GCC is looking
at Turkey very positively," he said. "This is the time when you can
attract foreign direct investment from the GCC," he declared. The
declining influence of the US will also create an environment in
which Turkey can play a bigger leadership role, he added.

For Ahmet C. Dörduncu, Chief Executive Officer, Haci Omer Sabanci
Holding, Turkey, the magic word is "interdependence". Countries
are looking for sustainable, secure energy prices and supply, he
said. Turkey is not only a corridor it is also a growing market
in itself. Turkey could be a source of hydroelectric power for
Europe. "This could be of enormous potential, especially if the grid
is connected to Europe," he said.

Key point: Turkey is strategically placed to play a growing economic
and political role in the Caucasus region and elsewhere.

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