World Economic Forum on Europe and Central Asia
Istanbul, Turkey, 30 October - 01 November 2008

Confronting Challenges in Defining a Collaborative Future

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Saturday 01 November

World Economic Forum on Europe and Central Asia ends on note of cautious optimism
The first World Economic Forum on Europe and Central Asia concluded on a note of cautious optimism. Although there was general acknowledgement that the financial crisis will have an impact on emerging markets, the enormous growth potential of the region is likely to soften the impact considerably. Improvements in transportation networks, telecommunications and regional cooperation are also powerful incentives that are likely to spur new investment. Turkey was singled out as having very strong potential, in part due to the strong growth of a dynamic middle class.
 Photos I Press release

Friday 31 October

Central Asia: everybody's ally?
Panellists agreed that on a number of economic and security fronts many Central Asian countries are making concerted efforts to diversify relations with the Middle East, Asia and Europe. Pierre Morel, EU Special Representative for Central Asia, Council of the European Union, Brussels, noted that in light of the conflict in Georgia, many Central Asian countries are cautious and concerned but still see the importance of cooperating. He cited water issues as a good example of cooperation and the fact that there has been relative stability in the region over the past 17 years. “This is a common achievement,” he said.
 Photos I Session summary

Turkey’s Babacan hopes for normal ties with Armenia
Turkey’s Foreign Minister Ali Babacan said at the World Economic Forum on Europe and Central Asia that there are good signs that long-running disputes between Turkey and Armenia, and Armenia and Azerbaijan can be resolved, opening up the prospect of a new more positive geopolitical situation in the region. “These two tracks could move fast because there is good political will,” Babacan told participants at the Meeting.
 Photos I Session summary

Thursday 30 October

Turkey’s Prime Minister calls for new world order
Speaking at the opening plenary of the World Economic Forum on Europe and Central Asia, Turkey’s Prime Minister Recep Tayyip Erdogan said that the current economic crisis “has sent the world a message concerning the unbridled desire for profits,” and launched an appeal for a new world order based on solidarity, and for a renewed global effort to stamp out terrorism.
 Press release I Session summary I Photos I Webcast

 
Update on the world economy
Victor Halberstadt, Professor of Public Economics, Leiden University, Netherlands, summed up the situation by remarking that we are at the end of an era for the world economy that had proved quite profitable in the past in a discussion on how the current financial crisis is likely to affect the region. “There is an incredible volatility in everything,” he said. “The real danger, at this point, Halberstadt concluded, is of sliding into something worse than a recession. Erik Berglöf, Chief Economist, European Bank for Reconstruction and Development (EBRD), London, pointed out: “We are beyond trying to predict or prevent the crisis. We are now in a state of crisis management.”
 Session summary


Financial crisis could hinder EU enlargement
“When there are domestic economic problems in the EU, enlargement falls down the priority list of EU states,” said Ali Babacan, Minister of Foreign Affairs of Turkey on the opening day of the World Economic Forum on Europe and Central Asia. Guler Sabanci, Chairman, Sabanci Holding, however, urged politicians to speed up enlargement, saying, “in a time like this, the more we are, the stronger we are”. Sabanci’s argument highlighted the continuing support in the business community in candidate countries for EU membership.
 Session summary

Social Entrepreneur of the Year Awards

Quotes

"The new silk road is developing and is both physical and virtual. The virtual road, is embodied through the exchange of ideas and culture, particularly among youth. This is happening through electronic media, as well as physical exchanges and travel.”
Hamid Karzai, President of Afghanistan


“We can say that there is now a coordinated effort in rate cuts, an extraordinary provision of liquidity, and we are now at the stage where there is talk of fiscal stimulus.”
Mehmet Simsek, Finance Minister, Republic of Turkey


This is not a normal slowdown. It is a financial breakdown, which is an issue that can only be solved by confidence...being built up by central banks and institutions acting together. And the more we are, the stronger we are.”
Güler Sabanci, Chairman, Sabanci Holding, Turkey

“Turkey has been the connector to Europe, East Europe, and Central Asia…it’s important not to re-take what’s happened in the past two months to affect our business decisions on long-term basis.”
Khalid Abdulla-Janahi, Chairman, Ithmaar Bank, Bahrain

“We aim to contribute to the development of security, stability and prosperity both in our region and in a wider scale with our multi-dimensional, proactive, constructive and future-focused foreign policy…"
Ali Babacan, Minister of Foreign Affairs and Chief Negotiator of Turkey

"The financial crisis happened because we did not ask the right questions beforehand. In the future we will face a great energy crisis and it would be better if we asked the right questions today rather than make the same mistake."
Armen Sarkissian, President and Founder, Eurasia House International, United Kingdom

"Although the crisis has not emerged from the emerging markets, we see that they will be very much affected by it."
Thomas Mirow, President, European Bank for Reconstruction and Development (EBRD), London

"A crisis is an opportunity and we have to use this opportunity to create sound conditions for economic growth in the world."
Klaus Schwab, Founder and Executive Chairman, World Economic Forum

“This is a time when business leaders have questions and they need to listen to each other and work together in order to understand what needs to be done. No one will win by working alone.”
Jean Lemierre, Senior Adviser to the Chairman, BNP Paribas Group, France

Contact
For more information about the World Economic Forum on Europe and Central Asia, please contact
EuropeCentralAsia@weforum.org