"Economic Power is moving from North to South and West to East..."
Chairman of Doğuş Holding, Ferit F. Şahenk took the floor at the "Global Business Context" session in Davos where the World Economic Forum is held. Mentioning that emerging markets are well-positioned to continue to drive the global economy, Şahenk said: "The economic power is moving from north to south and west to east; in other words to the developing countries. The new normal includes new growth centers and a multipolar global economic system with an increasing weight of emerging market players." Noting that advanced economies are not yet sending promising signals Şahenk continued: "However, there are good reasons to be optimistic. Emerging markets are well-positioned to continue to drive the global economy."
Telling that the recent financial crisis caused a very fundamental change in global economic landscape, Chairman of Doğuş Holding, Ferit F. Şahenk said that the new normal includes new growth centers and a multipolar global economic system with an increasing weight of emerging market players.
"Advanced economies are not yet sending promising signals. However, there are good reasons to be optimistic. Emerging markets are well-positioned to continue to drive the global economy," said Şahenk and continued: "The economic power is moving from north to south and west to east; in other words to the developing countries. Moreover, from a structural perspective, emerging markets are characterized by expanding middle class, growing labor force, rapid urbanization and rising productivity. This production is moving up the global value chain."
Stressing that the crisis drew attention to the importance of the "growth markets", which are the BRIC (Brazil, Russia, India and China) plus Turkey, South Korea, Mexico and Indonesia Şahenk added: "These are key destinations for both efficiency and market seeking investors. These countries have become very attractive as important markets in their own right."
"As the emerging market corporations we have the experience and ability to manage the periods of crisis"
Şahenk, telling that multinationals are increasingly investing in both efficiency and market seeking projects in emerging markets, noted: "For the first time, developing economies absorbed more than half of Global FDI inflows in 2010. The business community needs to see this paradigm shift. Today, as the emerging market corporations we operate in high growth markets and have the experience and ability to manage the periods of crisis."
"What does not kill you makes you stronger!"
Reminding that in the last quarter of 20th century most of the emerging economies went through a series of crises in different forms, Şahenk went on: "We overcame these challenges with the implementation of strong fundamental reforms and we believe in 'what does not kill you, makes you stronger'! This is why the emerging market corporations work with a different strategy than the developed or multinational counterparts."
"As the emerging market corporations we have a significantly higher investment appetite and a flexible human capital with experience to manage unexpected conditions," said Şahenk.
"Understanding the needs of the new consumer is of key importance"
Stating that the transformation is being fueled not only by a globalizing economy but also by increasingly sophisticated technology and expansion in communications infrastructure, Chairman of Doğuş Holding, Ferit F. Şahenk carried on as follows: "Emerging economies have very favorable demographics. A young population with growing demand and easy access to internet determined the consumption trends. This process is expected to continue."
"Countries and companies need to be more flexible to deal with rapid and continuous change"
In addition to saying that from now on countries as well as companies need to design and implement consistent, well-thought strategies, Şahenk emphasized change is the norm and it occurs very rapidly and that countries and companies need to be much more dynamic and flexible.
Rising Threat: Protectionism
Pointing to the importance of acting in collaboration against protectionism as the last item in his speech, Ferit F. Şahenk stated that during the recent crisis in developed economies some protectionist regulations were put forward, especially in finance sector. "Protectionism is not a cure for any crisis; it is even a threat against global wealth," Şahenk ended his speech.
Traditional Davos reception by Doğuş
Doğuş Holding held its seventh Doğuş Holding–Garanti Bank reception, which has already become a traditional Davos event, on 26 January, Thursday at 18.00 hrs.