Business world cautiously optimistic to cabinet reshuffle in Turkey

The comprehensive reshuffle in the Turkish government has had its greatest effect in economic management. In the new period, Nazım Ekren is no longer the deputy prime minister, while Kürşad Tüzmen lost his seat as foreign trade minister to Zafer Çağlayan, the former industry minister. The most dramatic shift came as Ali Babacan, the former foreign minister, took the helm as economy minister as Mehmet Şimşek left the post to be the new finance minister in place of Kemal Unakıtan.

The business world greeted the reshuffle with measured optimism, as many said they were surprised at such a comprehensive change.

Speaking to business daily Referans, Ali Kibar, member of the board of directors at the Turkish Industrialists’ and Businessmen’s Association, or TÜSİAD, said the reshuffle was a sign of preparation for the next general elections, scheduled to take place in 2011. “I think the economic management targets a more efficient coordination under Ali Babacan,” Kibar said. “Zafer Çağlayan was very successful as the industry minister and I believe this success will continue at the foreign trade ministry. Overall, ongoing talks with the International Monetary Fund will be affected positively.”

Message taken
Ümit Boyner, vice president of TÜSİAD, said the message given by voters at the March 29 local elections has been received well. “In the past, the outlook was one that emphasized inner-party balances [in the Justice and Development Party],” she said. “Now it seems the focus is on work. Local election results displayed that some expectations of the people were not met. Now a step has been taken, and I think this is positive.”

The Justice and Development Party, or AKP, received 38 percent of the vote in the local elections, a drop from its 42 percent in the 2004 local elections and from 46 percent in the 2007 general elections. It also lost some key municipalities, such as Antalya, Adana, Sivas and Zonguldak.

Çağlayan was a figure that knew Turkish industry well, according to Ahmet Nazif Zorlu, chairman of Zorlu Holding. “I don’t have much advice for the new Cabinet,” he said. “What needs to be done is evident.”

The question is “whether the business world will miss the approach of Nazım Ekren,” according to Celal Beysel, chairman of the Turkish Enterprise and Business Confederation, or TÜRKONFED. “I can’t say whether Çağlayan’s [moving to the Foreign Trade Ministry] is a loss or gain,” he said. “But Tüzmen was also successful. Unakıtan had protected the Turkish currency well and I think Şimşek can also manage to do that.”

Çağlayan may be missed
“We wished that Çağlayan would continue as industry minister,” said Nurettin Özgeç, president of the Small and Medium Sized Enterprises Association, or KOBİDER. “Projects that are crucial for small- and medium-sized enterprises are left half-finished. There were new arrangements for non-manufacturer SMEs. We know of Nihat Ergün [the new industry minister] as a political figure. We don’t know about his industry past.”

“The change will bring aliveness,” said Abdülkadir Konukoğlu, the chairman of Sanko Holding. “We hope the new ministers will be successful. Çağlayan was a perfect industry minister. Şimşek may experience some problems at the Finance Ministry due to the crisis, but overall, he can manage it.”

A change in economic management was expected, according to Hikmet Tanrıverdi, president of the Istanbul Union of Clothing and Confectionary Exporters, or İHKİB. “Turkey has to reassess its economy model and implement a model based on production and employment,” he said.

“The new management should do what is necessary in this respect.” Tanrıverdi voiced harsh criticism against the new finance minister, recalling Şimşek’s comments in the past that Turkey should leave textiles. “He demonstrated that he does not know much about Turkey’s dynamics,” Tanrıverdi said of Şimşek, a former Merrill Lynch economist. “I hope his deficiencies in this respect will be solved.”