32nd ADFIAP Annual Meetings: Summary of Discussions

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April 27-30, 2009
Muscat, Oman

Theme: “Financing Development amidst the Global Crisis: DFI Responses, Challenges and Opportunities”

Rationale: The financial meltdown that started in the U.S. has truly become global in its effect and impact. Here in the Asia-Pacific region, one can logically ask what the impact of this crisis would be on the region’s national economies and financial institutions. The educated consensus is that it would be relatively limited. The main reason is that Asian economies are much more robust than they were more than ten years ago, when during the Asian Financial Crisis, they took the bitter pill by dealing directly, if not painfully, with the issues to keep their financial systems well-functioning again by implementing crucial structural reforms.

In the past, Asia-Pacific DFIs have proven themselves to be effective tools for economic development. Now, more than ever, as the current global crisis deepens and widens its scope, DFIs are again bracing themselves to respond and play a much bigger role as countries lay out varying “stimulus packages” to perk up their economies. While these are trying and challenging times for DFIs once more, there is also a silver lining for them to explore and take advantage of the opportunities that will arise from this crisis.

It is in this context that the 32nd ADFIAP Annual Meetings 2009 is organized, adopting the theme, “Financing Development amidst the Global Crisis: DFI Responses, Challenges and Opportunities”. At this conference, ADFIAP members will have the opportunity to exchange their country experiences with others on the subject in order to enrich the discussion and broaden the options for the financing of development of the Asia-Pacific region.

Results of the Conference Discussions: The following matrix highlights the outcome of the discussions:

1. Turkey 1. From your perspective, what were the three main impacts of the prevailing global crisis to your country? From: Mr. Oktay Kucukkiremitci
Director of Economics & Social Researches Department
Development Bank of Turkey

  1. Increase unemployment rate is connected with the dramatic fall in industrial production level output.
    • The industrial production index averaged 114.3 in 2008 (115.5 in 2007). But decreased from 93.5 as of December 2008 to 88.6 as of January 2009.
    • The Turkish economy expanded 7.3%, 2.8% and 1.2% as of three quarters of 2008 respectively. In the 4th quarter, rate was negative (-6.2%). On the early basis, Turkish economy expanded 1.1% as of 2008.
    • All these situations reflected an increase of unemployment ratio from 10.6% in December 2007 to 13.6% in December 2008.
  2. Decrease of export revenues as a consequence of narrowed markets in the world, especially EU markets.
    • Total monthly export revenues have decreased since October 2008 compared to the same period of the previous year. On yearly basis, export amount increased by 23% in 2008. On the other hand, in January 2009, it decreased by 25.7%.
  3. Decrease in the foreign borrowing facilities due to the global crisis and excessively increase of demand for liquidity.

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