World Bank: Turkey to increase high value added goods

The World Bank advised Turkey to increase its share of high value added exports in order to become one of the top ten largest economies in the world by 2023.

World Bank: Turkey to increase high value added goods

World Bulletin/News Desk

The World Bank advised Turkey to increase high value added products to raise income levels through exports in its latest report, while still praising the bright export performance of recent years.

A piece of advice Deputy Prime Minister Ali Babacan took to heart as he insisted that quality of exports would be more important than quantity, during his keynote speech on Friday, at the Turkish office of the International Monetary Fund.

"We should switch from being servant to being master, he said. You will be masters when you produce your own trademark, technology and added value goods."

At the conference - also attended by Country Director for Turkey of the World Bank, Martin Raiser, Minister of Economy , Nihat Zeybekci and representatives from the business world - Babacan stressed that Turkey currently ranked among upper-middle-income countries while it stood in low-middle-income class by the World Bank just a decade ago.

While the World Bank did praise Turkish export performance over the last decade, namely underlining its diversity, it advised caution concerning Turkey’s “Development Vision for 2023” plan, which aims to move the country into the top ten largest economies in the world by 2023.

According to the World Bank report, an unwanted concentration of Turkey’s exports on mid-tech sectors such as automobiles, auto parts and white goods, which have exhibited relatively slow growth globally in the last decade, will hinder the country’s economic progress.

The World Bank advises "technology upgrading, innovation and experimentation by large and medium-sized firms” as well as an increase in skilled labor force for higher value added goods.

"When we accomplish this transformation to more value added goods, exports will soar and the budget deficit, which is one of most important problems of Turkey, will diminish," agreed Babacan.

Güncelleme Tarihi: 24 Mayıs 2014, 10:12