Although the decoupling of countries seems highly difficult in a global environment where all countries get increasingly interpenetrated via capital flows and financial integration, it is a fact that developing countries have ended up in a much better position in the recent global crisis in comparison to their economic performance in the past crises. It would not be wrong to assert that the main reasons underlying this transformation are the increased commercial, financial and economic relationships among developing countries, accompanied  BIS central bankers’ speeches  1  by strong economic and institutional governance practices formulated in view of lessons learnt from past crises. The increase in the volume of trade among developing countries has reduced the adverse effects of the weak course of external demand from advanced economies. Therefore, production and employment levels in developing countries have assumed a more rapid pace of recovery. At this point, by using Turkey’s export data, I would like to exemplify the importance of diversification of export markets driven by improving relations with countries in the region. As it is known, the European Union countries have the largest share in Turkey’s exports. Nevertheless, the share of member states of the Organization of the Islamic Conference (OIC) in Turkey’s exports is rapidly growing. During the period between end-2000 and end2010, while the share of the European Union countries in total exports of Turkey declined from 56% to 46%, that of OIC member states rose from 13% to 29%.

The “zero-problem” policy Turkey has been trying to formulate in recent years with neighbor countries, the steps taken to lift visa requirements, and above all, the active part Turkey played in improving relations among the countries of the region, all pave the way for regional collaborations that are likely to generate favorable economic outcomes in future for all countries of the geographical area we live in. This conference that the Central Bank of Turkey hosts today is a step toward improving relations among the banking sectors of Turkey, Syria, Lebanon and Jordan in the short-term. Nevertheless, in the long-run, it is expected to contribute to efforts towards a common market surrounded by the Persian Gulf, the Red Sea and the Mediterranean with the participation of the region countries. The Banks Association of Turkey, Central Bank of Syria, The Banks Association of Lebanon and The Banks Association of Jordan will be signing a Regional Cooperation Agreement in the field of Banking shortly. This agreement aims to enhance cooperation among the banking systems of these four countries and to improve communication channels between them. Thanks to this agreement, cross-border trade and investments among these countries will be supported and facilitated by this cooperation between our banks. Turkey signed free trade agreements with Syria, Jordan and Lebanon in 2007, 2009 and 2010, respectively. Moreover, visa-exemption agreements were made between Turkey, Syria and Jordan in 2009 and between Turkey and Lebanon in 2010. Besides, these four countries established a High-Level Strategic Cooperation Council in 2010.