 Ladies and gentlemen, I now have the great pleasure of welcoming Ahmed Dabatoglu, the Prime Minister of Turkey. Mr. Prime Minister, you are an also politician, a statesman, and you led Turkey's foreign policy for five years and five months ago you have become your country's Prime Minister. When we met last September in Istanbul, we spoke in depth on your reforms and a host of global challenges from job creation to geopolitical and humanitarian crises and of course also at that time already on the international cooperation in fighting terrorism. In all those issues, your country plays a very important and crucial role if we want to find sustainable solutions. It is for this reason, Mr. Prime Minister, that your presence here is particularly important but you join us not only in your capacity as Prime Minister of Turkey but you join us also as the chair of the G20 in 2015. A year in which, as you have stated, the G20 will focus its efforts in ensuring inclusive and robust growth through collective action. Mr. Prime Minister, we are all keen to hear your vision, your objectives for the G20 presidency, your maybe if time allows also to talk about your leadership in the reform process of your country and your statement will be followed by a discussion with my friend, Professor Viktor Halberstadt from Leiden University. So again, a very cordial welcome to you, Mr. Prime Minister. Mr. Chairman, my dear friend Mr. Schwab, distinguished participants, it's great pleasure for me to address such an esteemed distinguished audience. World Economic Forum is always the right platform to discuss world economic issues and this year I am participating in this platform not only as Prime Minister of Turkey but also as the presidency of G20. In fact, in the last 25 years after the end of the Cold War we had several shocks, geopolitical shift in 1991 after the collapse of the Soviet Union, a security trauma or a new security paradigm after 9-11, a global crisis in 2008, a global economic crisis and Arab-Supreme or political crisis in Mediterranean and in Middle East and North Africa. All these crises, despite the characters are different, they are integrated and they are affecting all of us in daily politics, in daily economy and in daily life everywhere. So none of these issues can be excluded from the other one and no country or group of country can be isolated from all these processes. Now maybe in the history of humanity we need a new sense of common destiny to shape our future in economic, political, cultural sense. A new world order based on inclusiveness is needed. In that sense, in the last 25 years one of the most successful platform or organization as inclusive from the perspective of inclusiveness and effectiveness is G20. G20 did emerge as a crisis management mechanism regarding financial sector, but in a very healthy transformation and transition now G20 is not only a crisis management mechanism for financial sector but also a very efficient policy formation and policy consultation platform among the leading powers. 2008 economic crisis taught us something. Some crisis starts as a financial crisis being transformed into an economic widespread economic crisis then through unemployment we faced social crisis and in many countries we faced also political crisis instabilities, rise of marginal groups in political life so a financial crisis end up with a much more bigger crisis therefore G20 in all the summits discusses not only financial issues but how to fix these integrated processes of crisis and it has been very successful in dealing with financial crisis fixing the financial architecture after the crisis but now there is a need in the sense of mission G20 has a new mission to form an effective policy coordination platform of the structure, structural aspect. G20 is maybe one of the most inclusive participatory process between advanced and emerging countries, group of countries therefore decisions, consultations made in G20 is much more comprising because representing two-thirds of the world population and also a significant part of the 85% of all the economy a huge impact in that sense. Interestingly also from the methodological perspective G20 is original in the sense that it is not a very formal organizational structure sometimes some people may say this is an disadvantage but for us it is an advantage having a flexible informal character it is much more effective because there like in Brisbane we met as 20 leaders we didn't read national statements but it was very informal consultation and direct to the point coordination of the issues that's the advantage of G20. When we look at the global world economy today it remains slow economic recovery and uneven and we are facing big problems high unemployment is continuing and it is becoming a long term structural problem which may affect political stability and other social risks may emerge out of this. In 2015 we will have certain uncertainties like normalization of monetary policy in the US we all follow this very carefully deflationary pressures particularly in Europe and also the consequences of lower commodity prices including oil prices these are some uncertainties maybe may emerge based on these new parameters so we need to have a better coordination to face any challenge as the world leaders for not only for 2015 but for all the next decades even next century will be shaped in coming years therefore Turkish priority as G20 presidency had three dimensions three principles three criteria you can call inclusiveness, implementation and investment inclusiveness is essential as I said not only for G20 in G20 but also for the world affairs two-thirds of the world population G20 and also 50% of the world's poor population now one of the main target priority of Turkey will be how to make G20 process meetings decisions more inclusive and how to have an access to non G20 countries group of countries like LIDC Turkey has been the coordinating country of least developed countries for 10 years and 2016 we will be having a review conference we want to have a strong LIDC's perspective into the different work streams of G20 so that G20 will not be seen like an elite of world economy but it is very important for us to make G20's work next year as inclusive as possible having access to LIDC low income developing countries especially therefore we will make references to UN post 2015 development agenda and we will make special effort for the basic necessities of LIDC's like food security and nutrition framework we will be the first presidency to implement the G20 food security and nutrition framework and we are planning to have a G20 agricultural ministerial meeting to discuss especially how to limit minimize waste and waste of food and how can we guarantee the basic needs of LIDC's agricultural framework similarly in domestic dimension in every country as well as in the world we are planning to have to bring the inclusiveness to reduce the gap in participation rates between men and women in G20 countries by 25% by 2025 this gap is important we want more women participation in all fields of economy as well as in daily life this will bring if we reach this target in 2025 bring more than 100 million women into the labour force and significantly contribute to our efforts to reduce unemployment and inequality inequality is important not only for between men and women but in general for social cohesion, for social peace and for economic recovery we will make special references to youth unemployment which is a real risk for many countries if young generation is unemployed you can expect any type of tension risks and confrontational attitudes today we have to deal with the problem of 75 million unemployed youth around the world and this employment from this perspective will be another priority area for us one important issue which will bring to the agenda of international economy and global structure is integrating SMEs into the global value chain Sumol and medium enterprise Sumol and medium enterprise is the best means to control unemployment and to have a much more redistributive just economic orders both nationwide and international wise therefore SME and LIDC will be a subject of Turkish meetings throughout the year in OECD study shows clearly inequality not only has a negative impact on economic growth but also causes social and political instability as I said the second principle priority will be implementation G20 despite of the fact that it is an informal flexible platform many of the decisions being taken there is well implemented the basis here is trust and confidence to the structures to the platform even for domestic economic policies the main reference point is trust and confidence if you have political stability trust and confidence you can manage any economic crisis therefore we will be looking and having a follow-up mechanisms how to implement decisions being taken by G20 if fully implemented G20 growth strategies agreed investment all of us will lift the G20's GDP by 2.1% by 2018 and if this is being achieved there will be more than 2 trillion US dollars to be added to the global economy and which will create millions of jobs as well as which will raise non-G20 GDP by 0.5% this is also essential for the spread of the world and we will be offering a mechanism how to implement this principle to reach 2.1% raise of GDP in 2008 this additional growth is very needed because recent World Bank statistics and forecast says clearly that in 2015 and 2016 the growth rate will downgrade to 3% and 3.3% which is very low compared to our targets third pillar will be investment because investment is the basis basic force for economic growth it is estimated that 70 trillion US dollars need to be invested in global infrastructure over the next 15 years to achieve this goal for those countries with fiscal space it could be possible to mobilize public resources to raise infrastructure investments without jeopardizing medium term fiscal frameworks as you know there is around more than 7 trillion dollars of government debt that is negative yielding and this is a big potential we can mobilize therefore other than that we will propose that we have to find alternative channels of financing infrastructure investments like Islamic financing, like learning from each other, public-private partnership to increase the investment level here three areas I want to mention regarding investment trade, energy and climate trade is important for growth and today G20 is representing 76% of all trade we need to have an open and functioning multilateral trading system this is very important bilateral, regional, plurality arrangements should be consistent to each other I can give you one example directly related to Turkish economy now we are negotiating and talking with EU, I was in Brussels last week, on TTIP TTIP if it is implemented only between EU and US will be against Turkey-EU custom union agreement the basis we have a custom union agreement with EU but EU wants to sign free trade agreement with third parties as well as transatlantic trade and investment partnership with US which is contradictory with Turkish custom union agreement between Turkey and EU this consistency is very important to have an open and functioning multilateral trading system and WTO in that sense should be strengthened, should be given more mandate to increase global trade energy, G20 countries are the basic consumers, producers, transit countries in energy and therefore energy, what we endorse in Brisbane, the G20 principles on energy collaboration will be followed what we will be our objective, one is energy access in order to have more investment in energy and much better framework of international energy policy energy access in sub-Saharan Africa for example, more than 620 million people have no access to electricity in sub-Saharan Africa this should be solved for the justice, just economic order as well as for the new framework of energy policies and energy second area in energy investment where the IEA estimates 66 trillion dollars is required for energy needs and investments until 2040 therefore we are planning to organize first time ever an energy ministers meeting of G20 in 2015 to discuss all these issues of course climates will be at the top of our agenda especially regarding to the post 2020 climate change negotiation process Turkey is fully committed to negotiations under UN framework and we hope that we are fair, flexible and inclusive legally binding agreement in Paris there are certain hesitations to talk on climate in G20, we know this but at the same time we are sure that there is a need of a joint strong message for the future of our planet lastly I want to share one anecdote in order to explain how we approach to global economic crisis, global climate issues as well a few years ago, three or four years ago, I was in a meeting on climate with foreign ministers in UN in New York there were several statements based on national positions when it came to me I tried to change the psychology, the atmosphere in the room and I said without reading my national statement I said to my colleagues that in all other affairs we can talk and act as ministers of foreign affairs of nation states but if the agenda is climate we shouldn't be talking and acting as foreign ministers of nation states but we should talk and act as home ministers of humanity because if there is no ontological existence there cannot be political or economic existence now this year in G20 after such a global crisis which affects all of us I will call all of the leaders of G20 all of us should act as if we are economy ministers of humanity not just leaders of nation states but leaders in charge of economy, in charge of trade, in charge of climate of the humanity and of global community if we have such a sense of responsibility we can start a new phase and we can make a paradigm shift but if we try to defend our national interest rather than thinking and projecting for the future of humanity that platform will not be helpful and inclusive I hope the Turkish presidency in G20 will bring new assets for the world economy and will help to resolve all the pending issues especially economic growth and unemployment thank you very much thank you prime minister we have both spent a life long life in academia and we are not used to being cut short or having time limits but we have to live as the reality of the world economic forum as you and I both know so we have only 10-12 minutes for the remainder of this session which is because the planes have arrived late so if you will excuse me I would like to ask you two specific questions the first one is what are the specific obstacles you foresee in the many objectives you have set for your in your agenda it's a rich agenda and you have reflected very wisely on it but there must be serious obstacles specific obstacles that you foresee and could you elaborate on an example which will imply something important for all of us of course G20 is an economic platform but what I see is the main obstacle I observe this in Brisbane as well the geopolitical structure and problems at this moment common views of countries on different crisis is affecting a better coordination on economics like crisis in Ukraine, President Poroshenko was here just before me there is such a gap between leading powers which affect the psychology of the atmosphere or like Syria of course both Ukraine and Syria they are our neighbors as Turkey and there are many countries around us which is really fragile or there are crises in these countries when you live in such a framework of course economics is being affected by political disputes and the gap between the members of G20 affecting the wise or comprehensive analysis of economic situation this is one of the main obstacles general we are all human beings when 20 leaders sit around the table or in a room psychological atmosphere is very important and if you have so many differences of opinion and many disappointments like what we have as Turkey because we have 2 million refugees and there is no international support or there is no real united position regarding Syrian crisis which affect us similarly all countries have differences may have differences and this affecting this is the main obstacle in front of us we should be acting in a very wise and rational manner rather than focusing on differences it is now time to unite on what we agree especially in economics economics the main principle is rationality if you act irrationally in economic life that will have other political consequence this is the main obstacle 2015 all this crisis will be still in the agenda and Turkey as the center of all these political issues will try to make some positive contributions to resolve these issues as well as not to make these political obstacles as a barrier in G20 agenda but if I may follow up on that Prime Minister the world around you the region around you the neighborhood has changed dramatically in the past few years and so then the question is given the fact that your role in that and your position in that neighborhood has also changed that's of course the question whether you can play the bridging role the unifying role in the G20 which is required you must have given that serious thought so I'd like to hear what that implies yeah that's important our position from 1990s until now but especially in last 12 years Turkey has led all the process of mediation conflict resolution I have here my close friend when we established Turkey, Bosnia, Serbia trilateral process as two ministers many that it created a new atmosphere in Balkans similarly we established high level strategic cooperation mechanisms with Ukraine, with Russia conflicting countries which is detention and for us economic interdependence is very important as a means of peacemaking if economies are interdependent it is less possible to have political crisis Turkey with a strong democratic foundation, rise of economic growth despite of all this crisis our economy is the second biggest growing economy in Europe and third in OECD and one of the our per capita income has increased four times in last 12 years we are self-confident our system is functioning democratic economic system that is itself is a positive contribution to regional peace but as the neighbor which has been affected heavily by the crisis in Syria and Iraq we have certain concerns we are always sharing with our colleagues with all of us when leaders when we sit we don't talk only economics but also politics and in this sense Turkey as a non-sectarian non-ethnic policy principle can help to many of these issues I can give you a list of mediation efforts we did but we don't have time we can do similar efforts together but important is we have to unite on the basic values of international system to act together on humanitarian tragedies like refugees and on all crimes against humanity regardless maybe terrorism maybe other brutalities we have to act united Thank you Prime Minister I'm afraid this brings this session to an end to give the fact that there's an autobahn we hope to hear you again a year from now with the results next year we hope we can see the positive results of Turkish G20 presidency Thank you very much