TEPAV Director Sak: "With Istanbul Forum We Focused on Small but Important Steps on the Ground" Delivering a speech at the 4th Regional Economic Cooperation Conference on Afghanistan, Sak stated that in Istanbul Forum carried out in cooperation with Afghanistan and Pakistan, Turkey focused on small but important steps on ground.

ISTANBUL - TEPAV Director Prof. Dr. Güven Sak stated that in the operations pertaining to the Istanbul Forum, a tripartite dialogue mechanism between Afghanistan, Pakistan and Turkey, they focused on small but important steps on the ground. Sak maintained that small steps on the ground seem to the optimal choice for improvements in conflict areas. Underlining in this context that the mining sector provides new cooperation opportunities between Turkey and Afghanistan, Sak talked about a huge potential for cooperation between the two countries in the areas of trade and investment.

Sak delivered a speech at the Afghan Business Forum, held in the context of 4^th Regional Economic Cooperation Conference on Afghanistan organized on November 3, 2010 by TEPAV in cooperation with TOBB (Union of Chambers and Commodity Exchanges of Turkey), DEIK (Foreign Economic Relations Board) and Investment Support Agency of Afghanistan. Talking about the Istanbul Forum, which involves dialogue mechanism between business support organization of Turkey, Afghanistan, and Pakistan, Sak said that the purposes of the Forum TEPAV has been working for since 2007 are problem solving, confidence building, creating new opportunities and building capacity at local level through tripartite cooperation. Sak went on saying that to this end, focus was put on 'small but important' steps and efforts were made to develop private sector and improve investment climate.

Drawing attention to the mineral resources Afghanistan has, Prof. Dr. Güven Sak stated that the country could enjoy new business partnership opportunities and import capital goods also from Turkey. Sak said that in order to secure development in this field, training programs targeted at the private sector and network development activities could be launched. Sak also stressed that Afghanistan must increase its export capacity to close down the mutual trade deficit in Afghanistan-Turkey trade. Sak underlined that this requires the improvement of both human resources and physical infrastructure and emphasized the importance of concrete project development.

We want to launch projects that will nurture hopes

Also delivering a speech at the meeting, M. Rifat Hisarcıklıoğlu, Chairman of TOBB and DEİK, maintained that Afghanistan is the conjunction point of the Eurasia region, which holds almost 60% of world GDP and three fourths of the known energy reserves of the world. Saying that these characteristics make it hard for the economy to occupy the top of the agenda, Hisarcıklıoğlu stated that this in turn gives way to the emergence of a number of elements that threaten economic stability. Underlining that as the business world they have good faith in the future of Afghan economy and they want to contribute to this bright future, Hisarcıklıoğlu addressed the operations carried out in the context of the Istanbul Forum. In this context, Hisarcıklıoğlu maintained that they seek to engage in trade and investment, generate employment and focus on projects that will give hope about the future. Stressing that they need the support of governments more than anytime before, Hisarcıklıoğlu added:

"We want to work together. Elimination of impediments to doing business will accelerate the efforts." Hisarcıklıoğlu highlighted that the mutual trade between Turkey and Afghanistan increased from US$21 million in 2002 to US$230 million and added that since 2002 Turkish entrepreneurs have been undertaking a total of 335 projects worth almost US$3 billion, majority being infrastructure projects. Hisarcıklıoğlu in this respect asked a solution for the visa requirements of Turkish businesspeople.

Afghanistan is the hearth of Asia

Foreign Minister of Turkey Ahmet Davutoğlu said the biggest foreign aid program of the Republican history was directed to Afghanistan and an aid program of more tan US$250 million was mobilized over the last five years. Underlining that Turkish entrepreneurs engaged in business in Afghanistan without even waiting for the solution of security problems, Davutoğlu went on saying: "Our top priority is to secure political stability and inner peace in Afghanistan, support the state mechanism by any means possible and take all steps possible to improve the state capacity." Promising to solve the visa problems of Turkish businesspeople, Davutoğlu said: "We will trace and advance on all the problems you encounter. We will not take those problems as an excuse. However, you in exchange will take all risks, go to Afghanistan and settle there; you will not go temporarily or go to certain regions." Davutoğlu added that "Settling in Afghanistan means settling in the hearth of Asia."

We want investors to feel at home

Zalmay Resul, Foreign Minister of Afghanistan drew attention to the importance of he investment supports for Afghanistan's economy and said they made efforts to reduce the cost of doing business and develop strategies to support SMEs with the aim to establish the conditions necessary for private sector development. Resul also mentioned the steps taken to reduce bureaucracy and to advance investment climate. Underlining that Afghanistan has huge natural gas, coal and lithium reserves, Resul added: "Mineral resources present a potential for the future of the country. There are significant opportunities in mining sector. We want everyone willing to invest in Afghanistan to feel at home."