The first meeting of the year for the G20, which brings together the leading 20 economies in the world, was hosted by term president Turkey. The main issues affecting the global economy were discussed during the meeting attended by G20 finance ministers and central bank governors.
The slowdown in global growth, the lack of vitality in the Eurozone area despite multiple attempts to that end, growing concerns about unemployment, making taxation policies more efficient and inflation were topics that dominated the meeting. These are all routine issues for the G20, which represents two-thirds of global output.
The G20, during Turkey’s presidency, however, has a different agenda. In the wake of the global economic crisis in 2008, it is developing economies that are directing the course of the global economy. After the economic collapse in developed countries, the flow of capital shifted toward the economies of developing countries.
Developing economies, which managed to convert the crisis into an opportunity via the policies and reforms they implemented, attained high growth rates during this period. Turkey, which is the current term president of the G20, too, rose to prominence in its own category by making use of its growth potential. Turkey, which hosted its first G20 meeting, saw its success validated by international economic actors who cited it as an example.
NEW ARCHITECTS OF GLOBAL ECONOMIC ORDER
For developing economies like Turkey to be able to continue the success of the post-2008 crisis, they will need to increase the efficiency of decision-making mechanisms.
The magnitude of the problem becomes clear when the varied growth rates of economies based on country and region are considered. The slowdown seen in the growth trend despite the economies of developing continuing to grow makes it necessary to address the structural problems in the economy.
Moreover, economies that are easily affected by any negative development in the global economy need to find a solution to address this fragility in their economic structures. This will be the most determining factor regarding their future.
The path adopted by countries with developing economies will determine the emergence of new players in the global economy, particularly during this period where frequent emphasis is being made under Turkey’s leadership regarding the creation of a new order in the global economy.
Economic institutions too, the IMF in particular, need to be restructured on the basis of this new economic understanding. These institutions, whose economic policies are based on the paradigm of the pre-2008 global economy, have lost their significance in a period where developing economies have gained so much importance. The process will be speeded up if emerging markets side with change.
TURKEY’S G20 PRESIDENCY CAUSE FOR HOPE FOR LESS-DEVELOPED COUNTRIES
Turkey has in every sense crowned its economic success of the 2000s by taking over the presidency of the G20 in 2015. But due to its perspectives, Turkey also has other missions during its presidency of the G20. Turkey, by being president of the G20, is an example of a success story to all countries.
This is because during the 1990s it could not even be imagined that the Turkish economy would one day be in this position. It went from being a country where neighboring Greece was cited to it as an example of welfare and wealth to one that is showing Greece the way out of its crisis.
Less-developed countries, too, see Turkey as an example and have started believing that they will write their own success stories as well. The attention and admiration that Turkey receives during President Recep Tayyip Erdoğan’s foreign trips increases Turkey’s prestige even more.
Turkey kept its promise, which it had made even before taking over the G20 presidency, and voiced the problems of less-developed countries too, instead of just those of developed countries.
In one sense, Turkey will endeavor to find new ways to enhance the roadmap that certain countries want to draw up and thereby involve all countries and societies in the decision-making process.
This is one of the factors that differentiate the New Turkey.