forumistanbul2005

5-6 May 2005

2023 Vision

This year’s Forum Istanbul aims at contributing to Turkey’s preparation for accession negotiations with the European Union (EU), due to commence on 4 October 2005, and developing the building blocks of a robust knowledge society over the next two decades.

Turkey’s accession to the EU, a historic process which was formally launched by the 17 December 2004 decision of the European Council in Brussels, will be one of the most controversial and ambitious ones in the Union’s history of enlargement. It represents the culmination of an up-and-down process of interactions between Turkey and the EU underway since 1963; yet it is still not a “done” deal - there are long years of negotiations due to commence on 3 October this year and plenty of pitfalls ahead.

As Turkey’s opponents argue, it is true that the eventual accession will considerably change the future outlook of both Turkey and the EU. Turkish accession will affect the geopolitical and economic balance of power in the region, EU’s demographic, security, foreign policy, financial and institutional capacities. It will also bring in a rich culture and diversity. Whether Turkish accession will be for better or worse in the final analysis depends very much on how both sides will agree to interact, from the outset, towards a commonly perceived vision.

The future development of the EU itself is equally important in view of actual European concerns about an “overstretch” of the Union through waves of enlargement. The better the EU would be in realizing its ambitious “Lisbon Goal,” i.e. to become the most internationally competitive knowledge-based economy, the less opposition could be invoked against the Turkish accession if Turkey too moves in the same direction.

In today's information age knowledge has become the gold standard. There is a swift transition from the Industrial Age to the Knowledge Economy and Information Age. Countries can jump-start without having to go through the classical development process. International competition is increasingly being shaped by how regions, countries and companies innovate and deploy information and communication technologies (ICT), as well as other rapidly changing new technologies.

Let’s make no mistake: The Knowledge Economy is not panacea. It offers new windows of opportunities if we are able to grasp. They play a decisive role in improving competitiveness by raising production quality (more stringent standards, quality control) or by integrating research/development, production and marketing networks. Completely new products are emerging as well as new opportunities in terms of meeting more fully human needs in areas such as health and education. Creativity gradually moves to the center stage. This transformation, affecting the economy, the society, and the foreign and security policies, compels countries to find novel ways of development that are beyond traditional approaches and definitions.

The success depends on the re-definition of business and government’s organization, decision-making processes; development of education systems, technical and legal infrastructure, and both economic and social policy tools. Each country has different circumstances and requirements – no “one-size-fits-all”. For instance, in the US, Australia, the United Kingdom, Canada, Finland, and Ireland, the growth of the Internet and other generic new technologies have become the catalyst for the creation of "knowledge economies". Countries that have encouraged their people through education and life-long learning and by investing heavily in research and development are well positioned to take advantage of the new opportunities.

Turkey, as a dynamic country destined to be a full member of the European Union in the next decade or so, is already going through comprehensive reviews and changes to adapt to meet these challenges. The Lisbon strategy, approved by the EU Council in March 2000, to make the Union the most dynamic and information based economy in the world with the highest competitive power in 10 years, though underperforming, has the potential to help Turkey advance at a faster pace and develop better competitive advantages in the new division of labour in an enlarged EU. Its large market, demographic assets and dynamic entrepreneurial base, together with advances in some areas of ICT like banking and mobile phones can help realise this potential.

If Turkey is to prosper and join the ranks of the global premier league of countries by 2023 - the centenary of its founding in 1923 - the requirements of this change are obvious. Human capital – knowledge, skills and attributes that a person holds – is vital to effecting the changes. It is perhaps the most important input into the knowledge economy for productivity, competitiveness and quality jobs. Over the past quarter a century the Turkish Government policy has focused on developing a modern, open and competitive economy with a view to better utilising its productive resources. These reforms undertaken to date have by and large been successful, but a lot remains to be desired.

Not enough of Turkey’s productive capacity has shifted to the knowledge-based industries that are delivering the fastest growth rates in Europe and worldwide. There are simply not enough of them. Hence, it is important to look at what more needs to be done, both by the government and the private sector.

Objectives

The 2005 Forum Istanbul promotes a multi-stakeholder dialogue on what it takes to create an effective knowledge economy with a view to providing policy and action options for the Government, private sector and civil society. The main issues to be addressed include, inter alia:

• Global trends in knowledge economy, Turkey’s position and lessons from success stories;

• Role of ICT in energising the development process including education, public sector reform, employment, exports and R&D;

• Opportunities presented by EU accession to enhance Turkey’s competitiveness in global system, particularly through active engagement in the Lisbon strategy;

• More and better FDI attraction strategies including investment in R&D, especially by the private sector;

• Broader export mix for higher added value products and services;

• Reengineering the antiquated agriculture and ensuring food security including trough bio-technologies;

• Human resource development, especially in attracting suitable qualified immigrants, including Turkish talents currently abroad; and

• Overarching strategic vision, especially in championing the development of a knowledge economy, and communicating it to all Turks.