Reforms are needed to lure more investment

ANKARA – Anadolu Agency

One cylinder of the global growth engine, investment, is still firing at only half speed and structural reforms are needed, the secretary-general of the Organization for Economic Co-operation and Development (OECD) said in a statement on April 10.

In a statement read at the G-20/OECD Corporate Governance Forum in Istanbul, OECD Secretary-General Angel Gurria said, despite very low interest rates and cautious monetary policies, global investment is still very weak in the OECD countries.

“The volume of fixed investment is still well below the pre-crisis level, and this is especially the case in Europe and in Japan,” Gurria said.

 “This is why investment is rightfully an important priority during Turkey’s G-20 presidency,” he said.
“Increasing investment will require structural reforms, some not included in the area of corporate government, and we are obviously committed to supporting the Turkish G-20 presidency in this regard.

I would like to compliment [Deputy Prime Minister] Ali Babacan and the Turkish government for its excellent leadership,” he said.

Gurria said the OECD Principles of Corporate Governance were being revised with a view to ensuring sound financial markets which serve the real economy.

The revised principles will be presented at the meeting of G-20 finance ministers and Central Bank governors in September 2015 for transmission to the Summit.

Gurria said all countries in the G-20 were invited to contribute to the ongoing review of the OECD Corporate Governance Principles.

“The principle update aims at building a stronger backbone for trade and investment, which is crucial at the time when the global economy continues to grow only at a moderate pace, particularly in Europe,” Gurria said.

According to Gurria, by updating the corporate government principles, the OECD will make an important contribution to the investment agenda of the G-20.

“It will particularly support investment, inclusiveness, and implementation,” he said, pointing to the three main priorities of Turkey’s G-20 presidency.

The G-20/OECD Corporate Governance Forum organized by the Capital Markets Board of Turkey in partnership with Boğaziçi University’s Center for Corporate Governance and the Corporate Governance Association of Turkey discussed sound corporate organization, safer financial markets and well-regulated financial systems in emerging markets.

Turkey assumed the G-20 presidency last December, vowing to fight global inequality. Around 13,000 people, including a number of world leaders, are expected to attend the G-20 Leaders’ Summit to be held in Turkey’s southwestern coastal province of Antalya in November 2015, according to Turkish officials.

The G-20 is an international forum for the governments and Central Bank governors of 20 major economies, including the United States, the United Kingdom, Russia, Japan, Canada, Germany, France, Italy, Turkey, Australia, Brazil, Argentina, India, China, Indonesia, Mexico, Saudi Arabia, South Africa, South Korea and the European Commission.