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Xenophon Paper 2 pdf - ICBSS

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shares between 1996 and 2005 from 1,2% to almost 3%. However, 82% of the Turkish<br />

FDI (companies’ investments in the BSEC countries) concentrates in the energy sector.<br />

Clearly there is a need for Turkey to diversify this investment pattern in the region.<br />

In the following years, Turkish firms are expected to invest more especially in the logistics<br />

sector in the region, in addition to transferring know-how in the field of border crossing<br />

and management. Improvement of the logistics sector in the Black Sea basin will put<br />

the region firmly into the post-modern Silk Road perspective, connecting China to Europe<br />

via road transportation. The problems pertaining to the road transport industry, the most<br />

important part of the logistics sector, will be on top of Turkey’s foreign trade agenda,<br />

especially towards the WBSR. In this context, Turkey will contribute to the BSEC’s<br />

concrete projects in the logistics and transport sector, such as the development of the<br />

‘Black Sea Ring Highway’ and the ‘motorways of the sea’, designed to link the BSEC<br />

region to the Trans-European and Asian transport axes and form the Black Sea Transport<br />

Corridor.<br />

Turkey could also prioritise transferring know-how and experience on the clustering<br />

schemes and the Qualified Industrial Zones (QIZ) to other BSEC countries, which can<br />

create microclimates for member countries’ Small and Medium-size Enterprises (SMEs).<br />

By virtue of those clusters and QIZ’s, SME’s enjoy labour market pooling, supplier<br />

specialisation, knowledge spillover and know-how transfer to individual firms. Clustering<br />

and QIZ projects also provide a unique opportunity for a more proactive role by the<br />

BSEC, generally criticised for its inability to interfere into the frozen conflicts of the region.<br />

Since, as mentioned above, the BSEC has not been equipped with political and conflict<br />

management/resolution tools and its members do not favour such a role for the<br />

organisation, it cannot, as of today, enter the picture as a political actor in this conflictridden<br />

region. However, the BSEC could utilise economic instruments by initiating crossborder<br />

projects in the framework of the post-conflict rehabilitation projects.<br />

X E N O P H O N P A P E R no 2 137

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