Turkey News: November 16-22, 2009

COMPILED BY THE WASHINGTON OFFICE OF TURKISH INDUSTRIALISTS� AND BUSINESSMEN�S ASSOCIATION (TUSIAD-US)
To subscribe or unsubscribe from this electronic publication, please send an e-mail to usoffice@tusiad.us .
These materials maybe reproduced and/or distributed, in whole or in part, provided that its source is properly indicated as �TUSIAD-US Web site: www.tusiad.us�.

CONTENTS:
       � Turkish Foreign Minister Meets Iranian Leader over Nuclear Row
       � Italian President Delivers Speech at Turkish University on Official Visit
       � Iraqi Shiite Leader Holds Talks in Ankara, Istanbul
       � OECD Report Predicts Turkey Will Be Fastest-Growing OECD Country in 2011-2017
       � Erdogan Calls on World Leaders to Support Small Farmers at UN Conference
       � TUSIAD Highlights

Turkish Foreign Minister Meets Iranian Leader over Nuclear Row

Turkish Foreign Minister Ahmet Davutoğlu met Iranian President Mahmoud Ahmadinejad on Friday following Tehran's dismissal of a nuclear fuel deal, officials and media reports have said.

The two came together in the northern Iranian city of Tabriz and the meeting mainly focused on Iran's nuclear program as well as bilateral and regional economic relations, according to diplomats. The Turkish foreign minister's visit came as major world powers met in Brussels on Friday to discuss Iran's dismissal of a nuclear fuel deal after U.S. President Barack Obama warned of "consequences" for Tehran.

Last week, Davutoğlu said Turkey had proposed a new formula to the Iranians on behalf of the international community in an attempt to make headway in dealing with Tehran's nuclear plans. The Turkish foreign minister has been engaged in telephone diplomacy with Iranian Foreign Minister Manucher Mottakki; Mohamed ElBaradei, the director of the International Atomic Energy Agency (IAEA); and James Jones, a national security consultant for the White House. ElBaradei has offered to store Iran's enriched uranium in Turkey, the one country all sides would trust, and Ankara has expressed its openness toward that idea.

Davutoğlu, who was in Afghanistan on Thursday to attend Afghan President Hamid Karzai's oath-taking ceremony, also informed Ahmadinejad about developments in Afghanistan and said uncertainty there had disappeared after Karzai was elected president, which he called an important new step for the country's security and stability, according to diplomats.

The two countries have also agreed to hold talks with third countries to improve the railroad line from Europe to China, which passes through Turkey and Iran. Turkey, NATO's only member that neighbors Iran, says the row over Tehran's nuclear program should be resolved through dialogue, arguing that sanctions or military action would have a damaging impact on the entire region. /Hurriyet/

Italian President Delivers Speech at Turkish University on Official Visit

Italian President Giorgio Napolitano delivered a speech at Ankara University on Wednesday about relations between Turkey and Europe as part of his formal visit to the Turkish capital. "It is ill-suited to accept in advance that the European Union should offer Turkey a status short of full membership by drawing on a presumption that Ankara's membership talks would not end with Turkey's accession to the Union," Napolitano told students at Ankara University's Faculty of Language, History & Geography.

Napolitano said his visit to Ankara had come at a time when the European integration process had taken a critical turn in its history as the Lisbon Treaty was expected to come into effect soon.

"There are new opportunities ahead for Europe to strengthen its union and to have a say in global matters. And as a fierce defender of the European integration, I think that problems of the Turkish-European relations should be considered within that perspective," Napolitano explained. "What I mean by Europe is not a continent, a specific part of the globe or a union of a specific race. What I mean by Europe is an undisputable and an undeniable union of history which is made up of differences."

"Turkey's role in this vast and critical geography is one of the basic elements of the mutual interest in the improvement of the cooperation between Turkey and the Union with an eye for integration. And Turkey's relation with Islam and the Muslim world is another basic element which is deeply involved today in many European countries," the Italian president argued.

On Wednesday, Turkish President Abdullah G�l welcomed Napolitano to Turkey with an official ceremony at the �ankaya Palace. G�l and Napolitano proceeded to a tete-a-tete meeting following the welcoming ceremony. /Today's Zaman/

Iraqi Shiite Leader Holds Talks in Ankara, Istanbul

Islamic Supreme Council of Iraq (ISCI) Chairman Sayyed Ammar al-Hakim was in Ankara on Thursday to hold talks with Prime Minister Recep Tayyip Erdoğan as part of a several-day visit to the country. While in Ankara, Hakim also attended meetings held at several think tanks. Hakim was in İstanbul on Wednesday to speak with both President Abdullah G�l and Foreign Minister Ahmet Davutoğlu.

G�l's meeting with Hakim was an opportunity for the president to once more express that Turkey has been keeping an equal distance from all segments of Iraqi society, the Anatolia news agency reported, citing sources from the president's office. In line with this stance, Turkey attaches great importance to engaging in dialogue with all segments of its neighboring country, G�l told Hakim. Iraq has entered a critical period with its upcoming elections, G�l said, expressing confidence that Iraq will emerge from these elections stronger than before.

For his part, voicing pleasure over Turkey's constant support for Iraq, Hakim cited the recent postings of Turkey's new consul-generals in Mosul and Basra as a sign of the importance attached by Turkey to Iraq. Turkey has so far played a constructive role in Iraq, and Iraq wants to see a continuation of this role, Hakim also explained. Earlier on Wednesday, following talks with Hakim, Davutoğlu underlined the significance of the upcoming Parliamentary elections scheduled for January 2010 in Iraq. /Today's Zaman/

OECD Report Predicts Turkey Will Be Fastest-Growing OECD Country in 2011-2017

As the recovery in developed economies accelerates next year but is likely to remain fragile, growth in Turkey is likely to be the highest among Organization for Economic Cooperation and Development (OECD) countries in 2011-2017, the group said Thursday. The Paris-based watchdog's chief economist, Jorgen Elmeskov, told a news conference that the recovery has been mostly driven by government stimulus measures and interest rate cuts. Those benefited financial markets, whose recovery has been "considerably faster and stronger" than earlier anticipated, he noted.

The OECD more than doubled its estimate for 2010 growth in its 30 member countries - which include the US, Japan, Germany and the United Kingdom - to 1.9 percent, compared to a 0.7 percent forecast in June. The projections are based on the assumption that by the middle of next year, financial conditions will have returned to normal. While banks have started to loosen lending conditions - a vital condition for the economy to grow again - there are still some concerns about the health of their balance sheets and their ability to provide credit to fund the economy, Elmekov remarked.

Stating that the four-quarter contraction in the Turkish economy due to the impact of the global economic crisis reached its end in the second quarter of this year, the report predicted 3.7 percent growth for the economy next year, followed by a 4.6 percent in 2011. The report also predicted that Turkey will be the fastest-growing economy among OECD member countries in 2011-2017, with average annual growth of 6.7 percent. The OECD publishes its economic outlook twice a year, although it updated some 2009 forecasts in an interim assessment published in September. /Turkish Press Review/

Erdogan Calls on World Leaders to Support Small Farmers at UN Conference

On Tuesday Prime Minister Recep Tayyip Erdogan urged governments around the world to prioritize supporting small-scale agriculture in developing nations. Speaking as a guest of honor in Rome at the World Summit on Food Security, organized by the United Nations Food and Agriculture Organization (FAO), Erdogan stressed the problems faced by farmers in developing countries during the global economic crisis. Erdogan spoke about the negative impact the crisis has had on global hunger and stressed that the crisis is not the only problem that farmers are facing. He pointed out that water shortages, the rising frequency of droughts, and a lack of investment in agriculture still have not been solved, adding that such problems are being compounded by the economic crisis. "Official development assistance and emergency assistance from developed countries to less-developed countries is expected to fall due to the crisis," he noted. "We can see the horrifying state of destitute countries and also see the endless consumption of rich ones. We know that this imbalance isn't sustainable, and it is vital that we close this gap," he concluded. /Turkish Press Review/

TUSIAD Highlights

On Monday November 23, 2009, TUSIAD and the Regional Environmental Center of Turkey (REC Turkey) convened the Conference on the Pursuit of Transition to a Low Carbon Economy in Turkey. This climate platform, held at the Conrad Hotel in Istanbul, aims to bring members of the business world together to fight climate change.