DAVOS: Turkey Offers Lessons On Euro-Zone Crisis, And A Warning

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DAVOS, Switzerland–The world can learn important lessons in dealing with the euro-zone debt crisis from Turkey, which went through its own financial crisis in 2001, says Ferit Sahenk, chairman of Turkey’s Dogus Group.

He also confirmed to the World Economic Forum what executives at companies in the developed world know already: companies in emerging markets are expanding – fast.

“We are closing the gap between world market players and emerging market players,” Sahenk says.

It is a message that won’t be lost on corporate chiefs at companies in developed economies, which are consolidating amid the uncertainty that has emanated from the euro zone and has infected markets worldwide.

Turkey’s sobering experience of a financial crisis over a decade ago has provided it with valuable insight in dealing with tough times.

“We pretty much know, on paper, what to do” to deal with financial crises, says Sahenk, who attributes Turkey’s success to political stability and leadership.

Turkey, a country of almost 79 million people that straddles Europe and Asia, reformed its state-run businesses and its economy without stifling entrepreneurialism and risk taking, he says.

“We took our family business to a more professional standard,” he adds. Dogus is one of Turkey’s largest conglomerates comprising 122 companies active in core industries ranging from financial services to energy. The group isn’t listed, but it includes publicly traded entities like auto retailer and service provider Dogus Otomotiv Servis ve Ticaret AS (DOAS.TR) and real-estate investment trust Dogus GE Gayrimenkul Yatirim Ortakligi AS.

“It is easier for us to change because we are not a public company,” says Sahenk.



Original Article Source by Barrons.com