Turkish minister calls for reforms in OIC economies

By Bahattin Gonultas

ANKARA

The urgent implementation of structural reforms will contribute to economic activity in Islamic countries, Turkey's development minister said Thursday.

Speaking at the closing session of 32nd meeting of the Standing Committee for Commercial and Economic Cooperation of the Organization of Islamic Cooperation (OIC), Lutfi Elvan said OIC states should have more competitive economies to reach higher growth and trade volumes.

"Prospects for global growth still remain low.

“We should immediately take necessary procedures for realizing structural economic reforms to promote investment, value-added production and productive economic activity rather than depending mainly on the export of raw materials," Elvan told delegates in Istanbul.

The Turkish minister recalled a target in the last decade between OIC members to hit 20 percent of their total trade. "We have already achieved this target by reaching 20.33 percent," he said.

Elvan called on delegates to design specific plans and programs to achieve 25 percent of trade between OIC countries.

He said the trade volume of Turkey with Islamic countries almost tripled within 10 years to $65.1 billion last year from $22.8 billion in 2005.

Governments’ role in Islamic finance

Elvan said Islamic finance, with its strong ethical principles based on real assets, could play a vital role in promoting economic growth, especially manufacturing and infrastructure investments.

"As governments, we need to pave the way for the establishment of a strong Islamic finance industry upon well-designed strategies, national legislation and human and institutional capacity," he added.

The OIC states’ trade volume increased to $3.43 trillion in 2015 from $1.77 trillion in 2005, an increase of 93 percent in a decade, representing 10.33 percent of world trade last year.

Trade between OIC member countries also increased to $694 billion last year from $271 billion in 2005.