Last week, Turkey's 62nd government was established by Prime Minister Ahmet Davutoğlu. The economy, under the title "Robust Economy," was one of the most extensive topics on the government's agenda. Daily Sabah spoke to Development Minister Cevdet Yılmaz, who is one of the top contributors to the agenda's economy chapter, regarding the "second progression period," which is planned to last until 2023. On the new government agenda, "people-focused development" is emphasized, unlike the previous one. Also, this term uses a slogan from Sheikh Edebali, an important thinker who lived in the founding years of the Ottoman Empire.He said, "Let the people live, so the state can live." Why did you choose this saying, could you please clarify? Of course. This saying appears in many chapters of the agenda; also, it was emphasized by our prime minister in his speech at the party congress, so, we reflected this matter on the agenda.Turkey has two important elements in politics, regarding the forthcoming period - human and geography. We are not a country rich with regard to natural resources. Our real advantage is our inherited civilization and the carrier of this civilization, our people. We can reach the desired position in the world by raising a better-equipped generation. In this manner, people are our greatest treasure. This is also called human capital in development terminology.Being people focused is important in two ways. First, people are the aim of our deeds. All our efforts are to serve our people and for their happiness and prosperity.Second, the people also serve as the basis for our deeds. This understanding will shape all of our policies, from social to foreign affairs. What did the AK Party achieve in the last 10 years? It reinstated self-esteem to the young, to entrepreneurs and to all social segments. We want to become a more competitive country by equipping this self-esteem with knowledge and qualities. On the other hand, we want to achieve these in accordance with our own values. We want both to establish a new Turkey and to protect our ancient values by passing it to future generations.At the center of all these arguments is the human being. We will shape our future policies, such as the educational system, freedom of speech, democratization and relations with civil society, by putting the human in the center. Another riveting point on the agenda is the "second progression period."As the minister responsible for Turkey's economic policies, how do you explain this expression? During the 12 years of AK Party government, Turkey has gone through significant transformation and reform. Turkey advanced from the low to the upper middle- income group and had some progress in democratization. However, we need to enter a second reform period without giving into lethargy. I see the second progression period as a structural reform era.An era in which we will achieve higher standards in every field, and this is only possible through reforms. So, we will start a second transformation period without being content with our successes. We have possibilities ahead of us; the 2015-2019 and 2019-2023 terms will not be interrupted by elections of any kind. We are hoping that if there is going to be an election, it will be a plebiscite regarding the Constitution. Therefore, this period is well suited for reforms.I want to highlight the importance of our party's policy of being a deputy for three terms at most. This will provide dynamic personnel for reform efforts.What will be the reforms? Completing the reconciliation process is one of our top priorities. On the other hand, we have dealt with old tutelages and will not permit new ones to emerge. We want to consolidate our democracy with a new constitution that will base Turkey on a legal framework. We are planning to realize various reforms, differing from administrative to social ones that will affect daily life positively.On the other hand, we will continue to invest in our people in the social manner, increase the quality of education and strengthen the substructure of the education system.Regarding the economy, we are aiming to invest and promote investment in R&D and technology. Our objective is a transition to an economic structure that has high value-added, based on know-how and technology. The export of advanced technological products has a share of 4 percent of the total, and we are aiming to increase it to 15 percent. Once we achieve this, Turkey will have accomplished its 2023 goals. We will increase our GDP from $10,000 to $25,000, therefore, transitioning into the high-income group. I gather that the 62nd government's agenda is not valid for June 2015. Of course not. Our government's vision is definitely not a nine-month one.We are a government that will undertake Turkey's transformation in a longer process.We are looking at the bigger picture. Having such aims, you are surely considering world conjuncture. How are we going to be affected if there is another global crisis? How are we going to accomplish these aims if an economic crisis breaks out? We are definitely considering these possibilities. We are processing these possibilities in our mid-range programs and preparing Turkey for these possibilities.We are preparing these plans beforehand, not at the last minute. We have two strategies regarding this. First, we aim to increase the savings ratio and shift it to more productive fields; therefore, proportionally decreasing our dependence on the outer world. Second, even while there is a different conjuncture in the world, capital always moves. Thus, we must improve our appeal. Achieving this requires the resolution of many issues.Still, Turkey, as a politically stable country, is in an advantageous position in these turbulent times. The reason we have managed external crises well is due to having a strong government and following determined policies. God willing, we maintain our determinacy. In the sense of maintained development, having the competitive edge is important. What are you planning to do regarding this subject? As you know, Turkey has improved its ranking in the Global Competition Index in recent years. We are continuing our work to make Turkey a more competitive country. Infrastructure is important for competitiveness; thus, we have invested greatly in infrastructure, especially transportation. Reforming the bureaucracy is also important; we are working on the betterment of administrative functions. On the other hand, decreasing input cost is an important subject, especially in the energy sector. We have revised our energy policies.The labor force and competitiveness in the market is another important subject. We need some reforms to improve it. This is the most troublesome field that negatively influences our ranking in the international competition index. We introduced our workforce employment project recently. Our efforts to establish a more flexible structure in the labor force market will reflect on our competitiveness. We also need to eliminate uncertainties in the judicial and bureaucratic processes to establish a rules-bound free market. This will reflect positively on our competitiveness. How do you plan to solve Turkey's current account deficit issues? Increasing our savings is one of our essential policies. This will not completely solve the deficit. In the case of a certain deficit, we need to attract investment to our country. We are a developing country. Having a deficit is not a dreadful situation; the important thing is the degree of deficit and quality of finance. It is important to advance finance with direct global capital. If you consider these, the deficit is actually an element that contributes to our development. We have improved our finances and the deficit rate is decreasing. The current deficit's ratio to domestic income is around 9-10 percent; we are planning to decrease it to six percent this year.To control this deficit, it is important to implement structural reforms. We have revised our energy and incentive policies. We have instated policies that support domestic production and domestic energy. We will observe its results in five to six years. This is the nature of investments. Our efforts to introduce nuclear energy, usage of lignite and fossil fuel plants and our savings policies in energy are all to decrease our deficit. Do you think that current monetary policies are compatible with sustainable development? I must highlight that there must be harmony between all of our policies.We are achieving this harmony with our medium-term programs. With our medium- term policies, we are creating our main policy, and we are doing this by including all state institutions. We set goals for them and the institutions do their duties according to these goals.In our monetary policies, our central bank is implementing independent means policies. We do not have any issues with its independence; we respect this fact. However, there is an important expression in central bank law that seems to be overlooked by many people.It states that the central bank is to support the government's growth and employment policies, within the condition of not contradicting its aim to provide price stability. I can state that our central bank serves according to this. There may be different ideas and views about this situation; however, I see them as richness.Our main plans are medium-term programs, and other state institutions have to be in compliance with this. Finally, what is the situation of the reconciliation process and where do you stand on this subject as the ministry of development? The reconciliation process concerns all of us. This is a multidimensional issue, including elements such as the elimination of violence and democratization. We needed to take steps in democratization, regardless of terror. In question here, are not just ethnicity issues, but also religious, denominational and socio- economic issues must be considered. We need to continue the democratization process in many fields. Turkey has a serious regional development issue. This problem is mainly because of the violence in some regions. We have invested greatly in eastern and southeastern regions of Turkey in terms of the state; however, there were insufficient private investments. This is due to the lack of safety and peace. With the reconciliation process, these issues will be overcome, and there will be a tremendous development process in the region. We are seeing indications of these in the regional economy.There is revitalization, however, it is not on the level we desire because of some ongoing negatives. With the new steps taken, the development process will gain momentum. The reconciliation process will contribute to our development and will improve the distribution of income. Therefore, Turkey will be able to employ its full potential.