The New Production Focused Finance Vision

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Both in our country and around the globe, a new understanding of economy that intensely focuses on production has moved to the forefront; resulting in the need of creating a new finance vision based on production. Nowadays, the majority of countries share the common desire of a n effective and efficient rapprochement between the production and finance worlds.

As the gap between the finance world and real economy widened during the period leading to the last global crisis, some financial institutions have forgotten their fundamental duties of ensuring to turn savings into investments and thus fell away from the world of production. Consequently, the stagnation, which continues to this day, trapped the world economy and it was revealed once again that an economy disconnected from production can not bring happiness.

The global economic growth still remains weak in the last months of 2016. Furthermore, increasing uncertainty and risks are far from promising a strong recovery. Everyone agrees that monetary policies will not be able to solve the structural problem we are currently facing. The Central Bank measures, regarded as rescuer actions until today, unfortunately do not seem to be adequate anymore to help the global economy breathe. So, there is a consensus that the world has to concentrate on economic tools other than monetary policies and vigorously implement the structural reforms.

In this context, the only viable solution seems to bring the production-focused economy to the fore, something we have been emphasizing persistently over a long period of time. Specifically, the last two-year’s ICI 500 data shows that finance is a critical topic for all companies, primarily for SMEs. A robust finance world is the first condition for the production-focused economy to re-earn its well-deserved place.

As the Istanbul Chamber of Industry, we took an important step forward to ensure the desired rapprochement between the finance world and the real sector. We hosted Mr. Murat Çetinkaya, the Governor of the Turkish Central Bank to our Assembly meeting in September. We offer you extensive information on this meeting in this month’s magazine. Also, in the last couple of months we added an additional page to the magazine that will greatly benefit the SMEs. The Finance Agenda pages provide you the latest financial developments as well as the new trends in the finance management of enterprises.

We should always remember that the financial world and the real sector are in the same board. When the finance world functions in a healthy and stable way, this is positively reflected on the real sector. Based on this fact, I wholeheartedly believe that in the coming period the real sector and the finance world will create a healthy and sustainable synergy for our country’s development and healthy future.

This country belongs to all of us…We have to be optimistic about the future with an approach that values collaboration and dialogue. Taking this opportunity, I would like to celebrate the 93rd anniversary of our Republic Day.

Erdal Bahçıvan
Istanbul Chamber of Industry
Chairman of the Board