ANKARA
Turkish Deputy Prime Minister Ali Babacan has said, "49.5 percent of the newly employed people are women. For the first time number of women employed is about to be equal to men's in Turkey."
During a press conference at Ankara JW Marriot Hotel, Deputy Prime Minister Babacan responsible for economy made a presentation titled "Developments in Global Economy and Turkish Economy" and replied Turkish journalists' questions.
Babacan emphasized the need to make an overall evaluation of global economy in the light of the latest G-20 summit in February 2013 to examine what Turkey would face in the future as a country with a sound economy.
Continuous rise in public debt stock
"We are talking about a debt stock which would exceed the debt stock of the post-World War II years," said Babacan, explaining that the most serious problem of world economy was the continuous rise in public debt stock.
"Despite all the measures" said Babacan, "particulary fiscal policy measures that many countries are taking, public debt stock cannot be reduced. The countries even debate how many years later they could cease the increase in their debt stocks."
Printing money appeared as the easiest solution, said Babacan, and added, "Today the Federal Reserve (FED) regularly every week interferes with the market and purchases treasury bonds so that the treasury can move on buying debt. This is same for EU Central Bank or Japanese CB. This picture must worry us not for today but maybe for the future."
Babacan stated that several countries were relieved after the interventions of the central bank and did not make necessary structural reforms and take budgetary measures. "After the last year's Los Capos G-20 Summit, the process is moving very slowly," said Babacan.
Youth unemployment
Stating that youth unemployment in the world was at very critical levels, "Average youth unemployment is 24 percent in Europe, 6 percent in Greece and 5 percent in Spain approximately," said Babacan.
Touching upon the measures taken by most of the countries such as decreasing the retirement age, infrastructure spending, resource transferred to local administrations, number of public sector employees and their salaries and health spending, while increasing income and value added tax, Babacan said, "They were not taken at the right time. That is why these countries still suffer from the crisis."
Turkey's IMF voting power to expand
Babacan explained that although the growth pace of the developing countries was decreasing, their share in the world economy was increasing. "From 2013 onwards, their share would exceed that of developed countries. It reflects on the international institutions, as well, in terms of IMF voting power," added Babacan.
Reminding that Turkey's voting power and quota share had been growing gradually, "Turkey's voting power doubled in 2012 compared to 2002. So far we made three tours. By the end of this year, we would make the 4th."
- Political stability saved Turkey from crisis -
Babacan stated that the reforms on public finance, banking, social security and health that Turkey completed before the eruption of economic crisis led Turkey overcome the crisis.
"Especially public finance and banking, the two weak points of European economies emerged as our strongest points," said Babacan.
"Foreign investors ask three questions before they invest in a country. First, are authorities aware of the problems of the country? Second, do they know how to solve the problems? Third, do they have enough courage and power to take steps for solution?" said Babacan and added, "The biggest problem is not budget deficit but leadership deficit."
Stating that political stability was Turkey's best advantage in overcoming the economic crisis, Babacan also named other factors as economic mid-term program, fiscal discipline, effective monetary policies, effective use of macro injunctive relief.
Women employment on rise -
Babacan underlined that employment levels were on rise in Turkey.
Pointing out that 1,880,000 more people were employed in 2012, "49.5 percent of them are women. For the first time number of women employed is about to be equal to men's in Turkey," said Babacan.
Babacan stated that Turkey was the most successful country among the OECD countries in terms of fastest recovery of the distribution of income, and added, "Turkey's current deficit decreased to 6 percent in 2012 from 9.7 percent in 2011. We reached this number through a conscious and planned program for the first time, not because of crisis."
