Turkish economy is now a global and large economy. Therefore, we have the manage the risks created by the global improvements in the short term. However, irrespective of the global fluctuations, we have to increase our competitiveness, and we have to structurally solve the issue of low productivity, which creates a barrier in front of competitiveness.
Turkey made important progress in the last 10 years with respect to budget deficits and public finance. And we completed an important period in monetary policy. We consider the independent Central Banking, the clarification of price stability as the primary objective in the context of inflation targeting, and the financial stability as the main gains of Turkish economy. In the forthcoming periods, along with protecting the price stability, carefully protecting the financial stability in general and our banking system in particular are imperative for our endurance and competitiveness.
In the short term, we have to focus on macro-stability, avoiding a stop-and-go cycle. Unlike many developed economies, our country has a strong entrepreneur, consumer and investor trust. We have to protect the production capacity and the existing employment as much as possible by maintaining this environment of trust. In the long term, we have to focus on the economic vision of Turkey, improving the investment environment and strengthening the competitiveness.
In the last period, a new industry strategy was prepared. This strategy covers a large part of the micro reform areas that we, as TÜSİAD, have been pointing out for a long time. This strategy document, put forth by many segments, is a basic guide. Developing and following this strategy document will contribute to the improvement of the investment environment in Turkey.
Although the prospect of a decline in petroleum and energy prices may create a certain relief in the energy component of the current deficit, the energy efficiency and the energy sector privatizations maintain their importance among micro reform areas in terms of controlling the current deficit proportionally.
Instead of relying on one-off tax revenues, a substantial tax reform that will provide a strong tax base and an unreserved policy for struggle against informal economy must become integral parts of the reform package. In addition, the public expenditures must attain a management model that promotes productivity increases by means of R&D, innovation and education. In this frame, we are glad to see that the micro reforms are contained in the priority areas announced by the government yesterday.
The recent developments have demonstrated that global cooperation is a must in order to overcome the fluctuations and uncertainties in EU and USA. The efforts such as the cooperation between USA and European Central Banks are not sufficient alone. Here, we believe that the G20 formation has to work more strongly and efficiently, in a close cooperation with the global business community. As issues requiring close monitoring in the frame of G20, especially the risk of recession in Chinese economy, the need for political will for strengthening European Stabilization Fund, and the USA public finance reforms, maximize the need for international cooperation in the current situation.
As TÜSİAD, we will represent Turkey at B20 meeting, which is the business community component of the G20 Summit to be held in Cannes, France in November. At this meeting, titled "Financial Markets and the World Economy", we, as TÜSİAD, will lead the "Global Governance Working Group" in B20. Within this working group, the efficient reconstruction of the areas of interaction and responsibility of the global economic governance institutions, the World Bank, IMF and World Trade Organization in particular, will be discussed. We believe that such works within B20 will be exemplary for global cooperation.
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