Finance Minister Şimşek made important statements on globalization and poverty.

The Economic Effects of Globalization

Minister of Treasury and Finance Mehmet Şimşek spoke at the 9th Future Investment Initiative (FII) event held in Riyadh, Saudi Arabia, on the panel entitled "What is the Balance Between Sovereignty and Globalization." Minister Şimşek emphasized that globalization is one of the most dynamic engines of global growth, stating, "Since 1990, the global trade volume has increased almost sixfold, and during this process, 1 billion people have been lifted out of poverty. Therefore, it is inevitable that economies prioritize remaining open to the outside world. As Turkey, we also adopt this strategy," he said.

Managing Risks

Minister Şimşek also addressed the need to carefully manage certain risks alongside the advantages of globalization, stating, "For example, we must not forget the importance of cooperation in areas such as energy security, health, and biotechnology. Additionally, we need to develop our capabilities in new-generation fields like artificial intelligence and enhance our sensitivities regarding data privacy and cybersecurity," he stated.

Managing Societal Reactions

Minister Şimşek emphasized the importance of reducing societal and political reactions to globalization. "If we can mitigate the negative effects of globalization with effective policies, I believe societal reactions can also decrease. Today, we are in a period of managing risks rather than completely breaking away from globalization," he added.

Protectionism and Long-Term Economic Effects

Addressing the economic effects of customs tariffs, Minister Şimşek stated, "Customs tariffs are a form of protectionism and do not benefit economies in the long term. However, I understand the social dynamics in countries where these tariffs are implemented. In the next 30-40 years, particularly the rise of Asian countries has led to significant losses in the manufacturing sectors of Western industrialized countries," he said. Şimşek noted that this situation has created societal discontent, warning, "If global trade stops, the growth rate of the world economy may fall below 3%."

Artificial Intelligence and Digital Transformation Strategies

In response to questions about artificial intelligence, Şimşek stated, "This area is largely integrated with the Western ecosystem. We are also carefully managing this transformation; at the same time, we have strong human resources in the field of artificial intelligence in Turkey. We produce an average of 940,000 university graduates annually," he said. He also noted that efforts to attract international technology giants to Turkey through digital regulations are ongoing.

Future Vision and Trade Agreements

Highlighting the importance of free trade agreements, Minister Şimşek stated, "We are nearing the agreement stage with the United Kingdom. We aim to expand the scope of the Customs Union with the European Union," he said. He emphasized that these efforts are important steps toward contributing to Turkey's economic growth and regional integration.