Climate change is visibly impacting the global economy

At the TRT World Forum 2023, held in Istanbul under the theme "Developing Together: Responsibilities, Actions and Solutions," a panel titled "Reshaping the Global Economy" was held.

Moderated by Auskar Surbakti, the panel featured speakers including Dr. Çetin Nazikkol, Chief Strategy Officer of Decarbon Technologies; Mirek Dusek, Managing Director of the World Economic Forum (WEF); Dr. Pornchai Danvivathana, Secretary General of the Asia Cooperation Dialogue (ACD); Timothy Ash, Senior Emerging Markets Sovereign Strategist at RBC BlueBay Asset Management; and Umberto Del Panta, Head of the European Investment Bank (EIB) in Turkey.

WEF Managing Director Dusek stated that the global economy is seriously transitioning into a new economic space, noting that connections are simultaneously being established with other sectors and areas.

Dusek expressed that there is a major erosion in society, which makes it fragile, and stated that focus should be placed on how new systems can be built.

"If we look at this past year, what comforts us here (in the global economy) are the stakeholders and non-governmental organizations. They are, of course, progressing in the solution phase. It is important to realize this, as in the special presentation on Turkey by the Minister (Minister of Treasury and Finance Mehmet Şimşek)," said Dusek, adding that focus must be placed on solutions and that this is a difficult process.

Stating that there are opposing views in solution processes but that efforts are being made to build a functional system for the global economy, Mirek Dusek pointed to US-China relations as an example.

Dusek said, "It is a truly complicated relationship; there is geostrategic competition, and at the same time, you see that both sides are now taking steps, especially regarding trade and investments."

TURKEY IS PROGRESSING POSITIVELY WITH THE POLICIES IMPLEMENTED

RBC BlueBay Asset Management Senior Strategist Ash began his remarks by praising the presentation made by Minister Şimşek before the panel and noted that Turkey has faced difficult economic situations in recent years.

Pointing out that Turkey's economic policies have strengthened recently, Ash said, "(Turkey) should be one of the number one investment locations, I think."

Ash stated, "With strong public finances, debt management, good demographics, and a good location—as Minister Şimşek mentioned, it has access to 1.3 billion people—and there is very strong manufacturing in Turkey," adding that Turkey has made very good progress with the policies implemented.

WE NEVER DOUBTED THAT TURKEY IS A STRONG COUNTRY FOR INVESTMENTS

European Investment Bank Head of Turkey Panta stated that they never doubted that Turkey is a strong country for investment, adding, "We have not been very active in Turkey for the past 4 years."

Noting that a budget of 4 million was allocated for earthquakes and construction, Panta stated that changes are expected in the European Investment Bank's operations in the near future.

Referring to a recently published report, Panta said, "It was stated at this point that the European Investment Bank should re-engage with all sectors (in Turkey)."

Panta stated that the EU Council has formulated the issue of re-engagement and that the EU is ready for this.

ASIA NEEDS TO RENEW THE GLOBAL ECONOMY

ACD Secretary General Danvivathana expressed his pleasure at being at the event and noted that the economy is fragmented across the world.

Stating that this situation is particularly visible in some Asian countries, Danvivathana emphasized that the Organization for Economic Cooperation and Development (OECD) is a success for Asia.

Saying that many challenges have to be dealt with, Danvivathana reminded that disasters are occurring globally.

Danvivathana said, "We need to focus on ourselves so that we can renew the global economy. We must place this on our national agenda; Asia needs this."

CLIMATE CHANGE IS VISIBLY IMPACTING THE GLOBAL ECONOMY

Decarbon Technologies Chief Strategy Officer Nazikkol also spoke about climate change and the global economy, stating that the world has undergone changes in the last 40-50 years.

"We are entering a period where it will be much harder to control what happens. (Climate change) can have massive effects on everyone and everything," said Nazikkol, adding that climate change is no longer a subject of doubt.

Pointing out that the impact of climate change is being felt more every day around the world, Nazikkol indicated that this has begun to break supply chains everywhere.

Touching upon the disasters caused by climate change, Nazikkol explained that one-third of Pakistan was submerged due to floods, that a flood disaster occurred in China, and that drought is being seen in some parts of the world.

Nazikkol stated that these disasters are visibly impacting the global economy.

News Source: 12punto