122 10 3494 Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3496 Title A name given to the resource FROM EXAMINATIONS TO ASSIGNMENTS: A SHIFT IN ASSESSING UNIVERSITY STUDENTSIN LIBYA Author Author M. Zagood, Mohammed Juma Abstract A summary of the resource. The assessment of learners’ competence provides objective evidence necessary in the decision-making process in education.This is a key factor to decide the development and understanding of the students' learning. In most higher education institutions in Libya, the assessment process is usually done through written examinations: mid-term and final examinations. This means that students need to sit for exams two times per semester. In such a case, they have only one chance to pass depending on what they do in the two exams. According to this approach, there is no continuous evaluation done throughout the study period, which makes students less motivated to learn. Consequently, students would not pay much attention to their studies prior to the exams' time. They would only study in the day(s) before the exam, which might affect their results. Therefore, this paper is an attempt to propose an applicable approach for assessment throughout the whole term.This is because of the fact that "changing the assessment method is a way to influence the students' attitudes towards their studies" (Berglund et al, 1998). The approach suggested here would change the evaluation process from sitting for examinations to writing small research papers or assignments. Such assignments are supposed to be written in stages, which mean that students would be assessed continuously. The assignment writing is supposed to be followed and directed by the professor throughout the term. Date A point or period of time associated with an event in the lifecycle of the resource 2014 Keywords Keywords. Conference or Workshop Item PeerReviewed PE English https://omeka.ibu.edu.ba/files/original/dedd2e8cf2d20e1aebe967189c852204.pdf 4efaa716ced8b86c2158f523102ba772 PDF Text Text PREGLEDNI NAUČNI RAD Od globalnih strukturalnih promjena ka novom konceptu suvereniteta From Global Structural Changes to a New Concept of Sovereignty Profesor Nedžad Bašić, PhD Human Rights Conflict Prevention Centre Pravni fakultet, Univerzitet u Bihaću nedzad.basic@pravnifakultet.ba Sažetak: Ekonomska globalizacija, koja po najraširenijem odredjenju obuhvata globalno kretanje roba, usluga i kapitala, što uvjetuje nove oblike i sadržine organizacije proizvodnje koja sve više izrasta u novi oblik globalne proizvodnje za globalno tržište, nije u mogućnosti u potpunosti odrediti suštinu fenomena postmoderne globalizacije. Ono što danas čini proces globalizacije ekonomskim, političkim i kulturnim fenomenom jeste prije svega rapidan rast komunikacija, rapidan rast mreže network sistema globalnih institucija i rapidan rast participanata u globalnim komunkacijama. U procesu globalizacije odvijaju se strukturalne promjene u kojima država sve više gubi poziciju nužnog faktora globalnog proizvodnog procesa, što izrasta u odredjujuću odrednicu fenomena globalizacije krajem 20 stoljeća. Rast velikog broja medjunarodnih vladinih organizacija (IGOs), medjunarodnih nevladinih organizacija (INGOs), regionalnih organizacija (EU, Pacific Asia, NAFTA), dramatičan rast MNCs i transnacionalnih komercijalnih banaka, te stalni rast medjusobnog multidimenzionalnog i multipliciranog komuniciranja izmedju ovih organizacija, korporacija i vlada država, vodi ka „rekonfiguraciji političke moći“. Politička moć se sve vise difuzira, s jedne strane, izmedju nacionalnog i subnacionalnog nivoa, dok s druge strane, difuzija političke moći sve je evidentnija izmedju nacionalne vlade i supranacionalnih institucija i organizacija. U ovom divergentnom procesu „rekonfiguracije političke moći“, dolazi i do sve izraženije transformacije moći države ka novim kompleksnim formama upravljanja u globalnim kompleksnim političkim procesima u kojima se koncept nacionalnog teritorijalnopolitičkog suvereniteta sve više transformira u koncept „globalnog institucionalnog suvereniteta“. Centar za društvena istraživanja | Godina 1 | Broj1 Ključne riječi: Globalne strukturne promjene, globalne sistemske mreže, efekt prelijevanja, direktna strana ulaganja, geopolitički suverenitet, globalna proizvodnja, širenje državne vlasti, dezagregacija države, globalni institucionalni suverenitet, globalni sigurnosni problemi Historija članka Dostavljen: 20.08.2013. Prihvaćen: 15.01.2014. 105 �Nedžad Bašić Abstract: Global movement of goods, services and capital, that causes the new forms of content and organization of production, that is increasingly growing into a new form of “global production for the global market”, is not able to fully define the essence of phenomenon of globalization itself. What makes the process of globalization is particularly rapid growth of communications, rapid growth of global participants and rapid growth of network system of global institutions. In the process of globalization, with a new form of communication between the growing number of participants in global relations, the structural changes taking place in which the state is losing its global position of the necessary factors of global production process. The growth of a large number of international governmental organizations (IGOs), international nongovernmental organizations (INGOs), regional organizations (EU, Asia Pacific, NAFTA), the dramatic growth of MNCs, and the steady growth of mutual multidimensional and multiplication communication between these organizations, creates a process to a "reconfiguration of political power." Political power has been increasingly disseminated, on the one side, between national and sub-national level, while on the other hand, the diffusion of political power is evident among national government and supranational institutions and organizations. In this divergent process of "reconfiguration of political power", the transformation of state’s power has been turned up to a new complex forms of global governance in a complex political process in which the concept of national geo-political sovereignty has been increasingly transformed into the concept of "global-institutional-sovereignty." 106 Keywords: Global structural changes, global network system, spillover effect, foreign direct investment, geopolitical sovereignty, global production, diffusion of state power, disaggregation of state, global institutional sovereignty, global security issue JEL Classification: K10, K19, K40 Article History Submitted: 20.08.2013. Accepted: 15.01.2014. Društveni ogledi - Časopis za pravnu teoriju i praksu �Od globalnih strukturalnih promjena ka novom konceptu suvereniteta UVOD Kako razumjeti proces globalizacije, posljedice globalizacije i kako promatrati odnose u savremenoj medjunarodnoj zajednici u eri globalizacije, središnja su pitanja za studente medjunarodnih odnosa. Globalizacije nije nov fenomen u razvoju ljudske zajednice. Ovo prije svega ako se ima u vidu da se globalizacija, kako u stručnoj terminologiji tako i u svakodnevnim komunikacijama, prvenstveno vezuje za razvoj medjunarodne trgovine, investicija, razvoj svjetskog tržišta, medjunarodnog transporta i komunikacija, što zasigurno nisu procesi novijeg datuma. 1 Ekonomska globalizacija, koja po najraširenijem odredjenju obuhvata globalno kretanje roba, usluga i kapitala, što uvjetuje nove oblike i sadržine organizacije proizvodnje koja sve više izrasta u novi oblik globalne proizvodnje za globalno tržište, nije u mogućnosti u potpunosti odrediti suštinu fenomena postmoderne globalizacije čije se odredjenje nužno vezuje za novi oblik globalne proizvodnje. 2 Ono što danas čini proces globalizacije ekonomskim, političkim, ekološkim i kulturnim fenomenom jeste prije svega rapidan rast komunikacija, rapidan rast network sistema globalnih institucija, rapidan rast participanata u globalnim komunikacijama, te sve izraženije kreiranje proizvodnog procesa kao globalnog oblika proizvodnje. 3 “Since the modern international trading system developed in the second half of the nineteenth century, there have been three major phases of rapid growth in international trade and investment…” (P. Hirst, “The Global Economy- Myths and Realities”, International Affairs, 3/1997, p. 411). 2 J. Sachs, “International Economics”, “Unlocking the Mysteries of Globalization” Foreign Policy, 110/1998, p. 218. 3 “The issue is not how old globalism is, but rather how ‘thin’ or ‘thick’ it is at any given time. “’Thick’ relations of globalization…, involve many relationships that are intensive as well as extensive: long distance flows that are large and continuous, effecting the lives of many people. The operation of global financial markets today, for instance, effect people from Peoria to Penang. Globalization is the process by which global become increasingly thick…The degree of thickness of globalism may be giving rise to three changes not just in degree but in kind: increased density of network, increased ‘institutional velocity’ and increased transnational participation.” (R. O. Keohane and Joseph S. Nye Jr., “Globalization: What’s New? What’s Not (And So What)”, Foreign Affairs, Spring 2000, p. 108). 1 Centar za društvena istraživanja | Godina 1 | Broj1 107 �Nedžad Bašić Stvaranje velikih lokalnih, regionalnih i transnacionalnih network sistema koji su medjusobno globalno interlinkirani preko različitih oblika komunikacija izmedju pojedinaca, grupa i zajednica, počev od kulturnih, jezičkih, profesionalnih, pa sve do vjerskih, kriminalnih, ekoloških i finacijskih, čini danas proces globalizacije intenzivnim multidisciplinarnim ekonomskim, ekološkim, financijskim, političkim, i kulturnim mozaikom komunikacija, u kojem se odvijaju procesi dramatične transformacije medjunarodne zajednice. U procesu globalizacije, gdje novi (masivni) oblik komunikacija izmedju sve većeg broja participanata u globalnim odnosima, odvijaju se strukturalne promjene u kojima država sve više gubi poziciju nužnog faktora globalnog proizvodnog procesa, što izrasta u centralnu odrednicu fenomena globalizacije krajem 20 stoljeća. 4 Rast velikog broja medjunarodnih vladinih organizacija (IGOs), medjunarodnih nevladinih organizacija (INGOs), regionalnih organizacija (EU, Pacific Asia, NAFTA), dramatičan rast MNCs, te stalni rast medjusobnog multidimenzionalnog i multipliciranog komuniciranja izmedju ovih organizacija, korporacija i vlada država, vodi ka „rekonfiguraciji političke moći“. Politička moć se sve vise difuzira, s jedne strane, izmedju nacionalnog i subnacionalnog nivoa, dok s druge strane, difuzija političke moći sve je evidentnija izmedju nacionalne vlade i supranacionalnih institucija i organizacija. U ovom divergentnom procesu „rekonfiguracije političke moći“, dolazi i do sve izraženije transformacije moći države ka novim kompleksnim formama upravljanja u globalnim procesima u kojima se koncept nacionalnog teritorijalno-političkog suvereniteta sve više transformira u koncept „globalnog funkcionalno institucionalnog suvereniteta“. In both modern domestic political systems and the modern international system, the state has been the key structural arena within which collective action has been situated and undertaken, as well as exercising structural and relational power as an actor in its own right. However, the state is being not only eroded but also fundamentally transformed within a wider structural context. The international system is no longer simply a states system; rather it is becoming increasingly characterized by a plural and composite - or what I have elsewhere called "plurilateral" - structure.(1) This transformation has significant consequences for the logic of collective action. The word "globalization" often is used to represent this process of change. Globalization is neither uniform nor homogeneous; its boundaries are unclear and its constituent elements and multidimensional character have not as yet been adequately explored.(2) But by reshaping the structural context of rational choice itself, globalization transforms the ways that the basic rules of the game work in politics and international relations and alters the increasingly complex payoff matrices faced by actors in rationally evaluating their options. (P. G. Cerny, "Globalization and the Changing Logic of Collective Action," International Organization, Vol. 49, no. 4, Autumn 1995). 4 108 Društveni ogledi - Časopis za pravnu teoriju i praksu �Od globalnih strukturalnih promjena ka novom konceptu suvereniteta Proces globalizacije praćen je takodjer sa visokim frekvencijama vjerske, socijalne i kulturne komunikacije, što kreira novi identitet i novi odnos pojedinca prema kulturi, naciji, politici 5 što postupno stvara potrebu za novim globalnim institucijama koje bi bile sposobne rekonstruirati postojeće globalne podjele i izvršiti redistribuciju političke i ekonomske moći. 6 Otuda ovako široko odredjenje procesa globalizacije, koji se najčešće vezuje za posljedice tehnološke revolucije, koja se posmatra kao proces mikro-ekonomskog razvoja, zahvata i procese medjuzavisnosti izmedju država, koji se determiniraju kao makro-politički proces, koji se odvija u komunkaciji izmedju država, multinacionalnih korporacija i globalnih institucija i organizacija, kao odredjujućih subjekata suvremenih medjunarodnih odnosa. Sa ovog aspekta odredjenja, proces „globalizacije“ ne bi se mogao posmatrati isključivo u formi ekonomskih, već isto tako i u formi političkih, kulturnih, ekoloških i vojnih globalnih komunikacija. 7 Sa rastom međuzavisnosti između nacionalnih država, MNCs, međunarodnih monetarnih institucija, komercijalnih banaka i financijskih grupa, suvremena globalizacija, koja je temeljena na tehnološkoj, ekonomskoj i informatičkoj revoluciji, izrasta u sistemski odnos koji je sposoban proizvesti tzv. "network effect", kreirajući novi lanac inovacija, kreiranje novih i širenje starih ekonomskih, socijalnih, kulturnih i ekoloških veza međuzavisnosti u suvremenim međunarodnim odnosima. Nemogućnost države da individualno i nezavisno od R.O. Keohane, J.S.Nye Jr, p. 107. "The global nexus of multinational corporations and international financial institutions has accumulated vast power and influence at the expense of national capitalism and state agencies." R. L. Heilbroner in M.l T. Klaire, “The New Challenges to Global Security”, Current History, April 1993, p. 156). 7 « In one way or another, discussions of globalization usually highlight the question of borders, i.e. the territorial demarcations of state jurisdictions, and associated issues of governance, economy, identity and community. Around this theme of borders one can distinguish three common understandings of the term 'globalization'. The first identifies globalization as an increase of cross-border relations. The second treats globalization as an increase of open-border relations. The third regards globalization as an increase of transborder relations. Although these three notions overlap, they also have qualitatively different emphases. The third conception is the newest and offers the most distinctive and helpful insight into contemporary world affairs. Subsequent sections of this article will therefore build on the notion that globalization involves a growing transcendence of borders ». (J. A. Scholte, “International Affairs” (Royal Institute of International Affairs” 1944) Vol. 73, No. 3, Globalization and International Relations (Jul., 1997), p. 427-452. 5 6 Centar za društvena istraživanja | Godina 1 | Broj1 109 �Nedžad Bašić drugih participanata odgovori na brojne izazove koji proizvodi „network effect“ čini je visoko motiviranom da uspostavlja odnose medjuzavisnosti sa drugim participantima u globalnim odnosima, u cilju riješavanja sopstvenih izazova i problema. "Network effekt" kreira novo globalno okruženje u kojem jedan događaj u jednom mjestu sa jednom dimenzijom može imati katalizatorski efekat na ekonomske, socijalne, kulturne ili vojne procese u drugim mjestima. 8 U isto vrijeme to može imati kvalitetne implikacije na kreiranje međunarodnih režima /kao što su: General Agreement on Tariffs and Trade, the International Monetary Fund, World Trade Organisation –WTO, World Bank, UN, EU, / koji imaju veliki utjecaj na mogućnost riješavanja problema od interesa za državu, a koje ona sama ne može riješiti, što ima veliki efekat na dalji proces globalizacije. Ovaj odnos funkcionalne medjuzavisnosti izmedju temeljnih interesa države, dakako samog njenog preživljavanja, i supranacionalnih-globalnih institucija i organizacija, bez čega ne bi mogla biti riješavana pitanja globalne financijske nestabilnosti, trgovine, nejednakosti, siromaštva, gladi, ili zaštite okoliša kao i globalne zaštite prava čovjeka, čini jedan od temeljnih pokretača procesa globalizacije, koji se sve više determinira u fokusu temeljnih preduvjeta opstanka čovječanstva. Stvaranje globalnog, otvorenog i istovremeno kontroliranog tržišta kroz proces globalizacije, vodi koordiniranom stvaranju transnacionalnih normi međunarodne birokratije, koje se stvaraju u okviru medjunarodnih organizacija i institucija: Međunarodnog monetarnog fonda /International Monetary Fund -IMF/, Evropske unije /EU/, Svjetske trgovinske organizacije /World Trade Organisation, WTO/, Svjetske banke (World Bank) i dr. Ovi globalni standardi i norme sve više bivaju prihvaćene od strane države čak kada su i u suprotnosti sa njenim kratkoročnim nacionalnim interesima. 9 Država više nije u mogućnosti da obezbjedi sama sopstveno preživljavanje. Poseban vid globalizacije ostvaruje se kroz stvaranje tzv. industrijskih saveza /Industrial Alliances/ koji nude veću sposobnost pristupa potrebnim informacijama ili tehnologijama koje su nepristupačne na nacionalnom nivou. Kroz ekonomsku, tehnološku, kulturnu i normativnu globalizaciju stvara se novi međunarodni poredak, koji traži novi koncept preživljavanja države, dakako i novi koncept suvereniteta države. 8 9 R.O. Keohane, J.S.Nye Jr, p. 109. A. M. Slaughter, “The Real New Order”, Foreign Affairs, November/December, 1997. 110 Društveni ogledi - Časopis za pravnu teoriju i praksu �Od globalnih strukturalnih promjena ka novom konceptu suvereniteta Globalne strukturalne promjene i globalna struktura međuzavisnosti Profiliranje znanja kroz sistematsko mobiliziranje znanstvenog istraživanja koje je podržano od strane države za specifične, prije svega, za vojne namjene, bilo je vukuća snaga tehnološkog i ekonomskog razvoja međunarodne zajednice u 20. stoljeću. Promjene na tehnološkom i ekonomskom planu vidno su utjecale i na strukturu političkih procesa i političkih odnosa u međunarodnoj zajednici krajem prošlog stoljeća. U novoj svjetskoj ekonomiji međuzavisnost između članica međunarodne zajednice poprima novu strukturu i novu sadržinu. Neo-kolonijalizam kao oblik inkorporacije nerazvijenih zemalja u međunarodnu zajednicu ustupa mjesto globalnoj proizvodnji, međunarodnom tržištu, trgovini i međunarodnim financijama kroz čije mehanizme dolazi do novog oblika međuzavisnosti na globalnoj razini. Zahvaljujući ovim novim mehanizmima globalizacije i najsiromašnije zemlje svijeta aktivno su uključene u globalni sistem financija, trgovine i proizvodnje kao partneri na svjetskom tržištu. Uključivanjem ovih zemalja u proces globalizacije otvaraju se nove mogućnosti rasta i razvoja siromašnih zemalja ali isto tako i nove, rafinirane, metode marginaliziranja siromašnih, te proširivanje jaza između siromašnih i bogatih. 10 Implementacijom novih tehnologija i novih tehnoloških procesa od strane MNCs dolazi do suštinskih promjena u investicionoj politici, trgovini i politici planiranja i razvoja. Novi tehnološki razvoj, prije svega razvoj mikroelektronskih sistema, otvara tendencije ka nižim osnovnim investicijama, obezbjeđuje maksimalne uštede repromaterijala, odnosno sirovina, pojednostavljuje mehanizam kontrole rada, smanjuje učešće živog rada, skraćuje prazan hod tehnoloških postrojenja, obezbjedjuje kraći period reprogramiranja proizvodnje što skraćuje period specijalizacije i povećava fleksibilnost proizvodnog procesa, čime se omogućuje proizvodnja u manjim serijama i time obezbjeđuje stabilnost kvalitete proizvoda i njihove prilagodljivosti potrošačkim zahtjevima. 11 Dugoročni trendovi razvoja pokazuju da se gap izmedju najrazvijenijih i najsiromašnijih nacija produbljuje geometrijskom progresijom. U 1820. odnos izmedju ovih zemalja iznosio je 3:1, u 1913. odnos je bio 11:1, u 1950. taj odnos je dosegao 35:1, da bi samo za narednih 13 godina iznosio 35:1., a 1992. odnos izmedju najbogatijih i najiromašniji bio je 72:1 sa tendencijom daljeg produbljavanja. (1999 Human Development Report, United Nations Development Programme). See also in J. Sachs, Internacional Economics: “Unlocking the Mysteries of Globalisation”, Foreign Policy 110/1998, reprinted in P. O'Meara at all, “Globalisation and the Challenges of a New Century”, Indiana University Press, 2000, p. 217). 11 R. Kaplinski, “Micro-Electronic and the Third World”, Radical Science Journal, 55/1981. 10 Centar za društvena istraživanja | Godina 1 | Broj1 111 �Nedžad Bašić Kroz ove promjene koje su rezultat tehnološkog razvoja i djelovanja MNCs, kao određujućih oblika organizacije i upravljanja globalnim proizvodnim procesima, uspostavlja se nova struktura odnosa između razvijenih i nerazvijenih zemalja, kao i nova struktura odnosa izmedju rada i kapitala. U uvjetima kada su visokorazvijene zemlje obezbijedile viši stupanj tehnološke prednosti ispred nerazvijenih zemalja, strategija “liberalne ekonomije“ sa ograničenjem slobodne konkurencije na globalnom tržištu izrasta u novi mehanizam produbljavanja gapa između ove dvije grupe zemalja. U uvjetima globalne proizvodnje, položaju regije u kojoj se nalazi data zemlja, kao i historijski background razvoja te države, sve više dolazi do izražaja u kreiranju novog kompleksa nejednakog razvoja medjunarodne zajednice. 12 Opći ekonomski rast bilježi se i u razvijenim i u nerazvijenim zemljama, sa različitom indeksom rasta zavisno o kojoj se regiji radi, što izrasta u poseban fenomen globalizacije. Ovaj fenomen različitog regionalnog indeksa rasta radja nove protivuriječnosti i uvodi svijet u nove još uvijek nerješive ekonomske, a odatle i u političke, kulturne i socijalne globalne probleme. 13 U procesu globalizacije odnosi izmedju razvijenih i nerazvijenih sve se više pomjeraju od odnosa u trgovini ka odnosima u proizvodnji, sa čime se i suštinski mijenja i sam odnos izmedju razvijenih i nerazvijenih zemalja. U novom globalnom obliku proizvodnje odnos izmedju proizvodjača i potrošača je stubokom promjenjen. Globalni oblik proizvodnje nužno traži i obezbjedjenje novog oblika globalne potrošnje, što opet ima za pretpostavku obezbjedjenje nove potrošačke kulture što zahtjeva višu kupovnu moć potrošača, što traži i novi, dakako, viši životni standard i potrošača u nerazvijenim, perifernim zemljama, odnosno regijama. Traži se nova sadržina U 1820. godini gap izmedju najbogatije i najsiromasnije ekonomije u svijetu iznosio 4:1, dok je u 1998. godini taj gap je iznosio čak 20:1. 13 The crucial puzzle for understanding today’s vast inequalities, therefore, is to understand why different regions of the world have grown at different rates during the period of modern economic growth. Every region began the period in extreme poverty. Only one sixth of the world’s population achieved high-income status through consistent economic growth. Another two thirds have risen to middle-income status with more modest rates of economic growth. One sixth of humanity is stuck in extreme poverty, with very low rates of economic growth during the whole period. First we must understand why growth rates differ over long periods of time so that we can identify the key ways to rise economic growth in today’s lagging regions…The key fact of modern times is not the transfer of income from one region to another, by force or otherwise, but rather the overall increase in world income, but at different rate in different regions”. (J. Sachs,2005, “The End of Poverty”, Penguin Books, p. 30-31). 12 112 Društveni ogledi - Časopis za pravnu teoriju i praksu �Od globalnih strukturalnih promjena ka novom konceptu suvereniteta obrazovanja, traži se novi državni welfare sistem u perifernim zemljama, stvara se novi socio-kulturni identitet koji nije više isključivo fiksiran za lokalni sistem vrijednosti i tradicionalne potrošačke navike. Svijet postaje sve više funkcionalno medjuzavisniji. Efekt globalne proizvodnje dramatično transformira lokalnog perifernog potrošača u veoma značajnog partnera u globalnom procesu proizvodnje. Razvoj novih tehnologija znatno je podigao značaj intra-korporacijske suradnje posebno u mikroelektronici, kompjuterskoj industriji, telekomunikacijama, biotehnologiji, hemiji.., što je vodilo brzom rastu disperzivnosti proizvodnje u svjetskim razmjerama. Tarifne barijere bile su uklonjene, što je omogućilo dramatičan rast trgovine i stranih direktnih investicija. Tržišni ugovori i sporazumi kojima se je stvarala globalna zona slobodne trgovine vodili su globalnoj deregulaciji i privatizacije. Brzi razvoj transporta, komunikacija i informatike učinio je mogućim organizirati i koordinirati različite proizvodne procese i obezbijediti proces donošenja odluka na velikim geografskim distancama, što je omogućilo separiranje procesa donošenja odluka od procesa same proizvodnje, što je stimuliralo rapidan rast stranih direktnih investicija. Kroz globalizaciju proizvodnje u formi stvaranja velikih network sistema između različitih institucija, država i MNCs, otvorene su velike mogućnosti za tehnološke inovacije koje su vodile kreiranju novih proizvoda, smanjujući pritom rizik i poteškoće koje su povezane sa ulaganjima u sektor istraživanja i razvoja (R&D) 14 Moćan razvoj novih znanja i novih tehnologije dramatično je uticao na razvoj transporta i komunikacija, te na dramatično smanjenje cijena transporta i komunikacija, s jedne strane, te na kontroliranu liberalizaciju ekonomske politike, s druge strane. 15 Zahvaljujući brzoj globalizaciji proizvodnje, trgovine i financija, cijena izolacije iz ovih procesa drastično raste i svaka zemlja koja izostane van ove globalne mreže biva suočena sa smrtnom opasnošću za svoj opstanak sa katastrofičnim posljedicama po sigurnosno pitanje. Prijetnja negativnim posljedicama u slučaju izostanka iz globalne integracije drastično je utjecala na politiku države, sve više prisiljavajući državu da S. G. Brooks and W. C. Wohlforth, “Power, Globalization, and the End of the Cold War”, International Security, vol. 25, 3/ 2000, p. 35-36. 15 “Cijena triminutnog telefonskog razgovora između Njujorka i Londona pala je sa $250 u 1930. godini na svega nekoliko centi u 2001. Broj telefonskih linija preko Atlantika povećan je sa 100.000 u 1986. godini, na više od 2 miliona linija u 2001. Broj internet provajdera povećan je sa 5.000 u 1986. na preko 30 miliona u 2001”. (M. Wolf, “Will the Nation-State Survive Globalisation?”, Foreign Affairs, January-February 2001, p. 182). 14 Centar za društvena istraživanja | Godina 1 | Broj1 113 �Nedžad Bašić izbjegava politiku izolacionizma, što će u uvjetima velike tehnološke diskrapance izmedju razvijenih i nerazvijenih zemalja otvoriti nove političke probleme. 16 U odgovoru na izazove globalizacije, nacionalne države nastoje obezbijediti šire mogućnosti kooperiranja sa MNCs, prije svega nastojeći privući strane direktne investicije, obezbijediti bolje uvjete za zajednička ulaganja domaćih sa stranim firmama /joint ventures/, obezbijediti druge komparativne prednosti, te biti što intenzivnije uključene u globalne tržišne i financijske tokove. Kako proces globalizacije istovremeno podrazumijeva značajno jačanje globalnih, regionalnih ili bilateralnih ugovora kojima se regulira trgovinskoinvesticiona politika, poreska politika, pravo intelektualne svojine, strana investiciona ulaganja, uključivanje države u proces globalizacije ima značenje i reduciranja tradicionalne regulatorne-normativne moći same države, što će se značajno odraziti na političkom i socijalnom planu. Promjena funkcije države u sistemu strukturalnih promjena U modernoj proizvodnji značaj zemljišta kao faktora proizvodnje u poređenju sa značajem mobilnosti kapitala, mobilnosti rada i razvojem informacija, znatno opada. Sa direktnim investicijama, mobilnost kapitala značajno supstituira mobilnost dobara. Dosežući šira tržišta sa većim absorbcionim mogućnostima na kojima fluktuira jeftina i više kvalificirana radna snaga, MNCs u mogućnosti su obezbijediti proizvodnu mrežu bez političke kontrole dijela stranog teritorija, što nacionalna država nije u mogućnosti obezbijediti, što njenu moć u poređenju sa MNCs znatno dovodi u pitanje. 17 Međuzavisnost i globalizacija promijenili su i “But if historical experience demonstrates anything, it is that integration is not technologically determined. If it were, integration would have gone smoothly forward over the past two centuries. On the contrary, despite continued falls in the costs of transportation and communications in the firs half of the twentieth century, integration actually reversed course. Policy, not technology, has determined and extend and pace of international economic integration. If transport and communications innovations were moving toward global economic integration throughout the last century and a half, policy was not – and that made all the difference. For this reason, the growth in the potential for economic integration has greatly outpaced the growth of integration itself since the late nineteenth century. Globalization has much further to run, if it is allowed to do so.” (Ibid). 17 “The transnational company is not totally beyond the control of national government. It must adapt to them. But these adaptions are exceptions to policies and practices decided on for worldwide markets and technologies. Successful transnational companies see themselves 16 114 Društveni ogledi - Časopis za pravnu teoriju i praksu �Od globalnih strukturalnih promjena ka novom konceptu suvereniteta strategiju preživljavanja nacionalne države. Vojni konflikti između država sve više se supstituiraju drugom vrstom konflikata koji su sve više determinirani ekonomskim integracionim procesima čiji su nosioci MNCs. Ekonomska integracija sve više supstituira ratni konflikt izmedju država sa čime se sve više ističe nužnost integriranja ekonomskih i vojnih struktura-sistema države. 18 Sa opadanjem tradicionalne moći države, sa sve izraženijim rastom moći multinacionalnih kompanija, medjunarodnih institucija i medjunarodnih financijskih grupa, postupno se u pitanje dovodi i sam međunarodni sistem, čiji ugaoni kamen čine suverene države/nacije, što nužno zahtijeva i nov teoretski koncept suvereniteta države. Promjena strukture globalne proizvodnje značajno je utjecala na kulturni i civilizacijski identitet i strateško ponašanje učesnika u međunarodnim odnosima što će značajno utjecati na dramatičnu promjenu odnosa između država, posebno odnosa između velikih sila, kao i na promjenu odnosa između države i pojedinca. Sa promjenom faktora proizvodnje i ekonomski elementi nacionalne sigurnosti postupno su se mijenjali. Geo-politički koncept sigurnosti biva postupno supstituiran sa novim tržišno-tehnološkim konceptom sigurnosti u kojem D-ram as a separate, national entities. This self-perception is evidenced by something unthinkable a few decades ago: a transnational top management. The world’s best-known management consulting firm, McKinsey & Co., for instance, through headquartered in New York, is headed by Indian. And for many years the number two man at Citibank, the only big commercial bank that has gone transnational, was Chinese. The U.S. government is trying to counteract this trend by extending American legal concepts and legislation beyond its shores. It is doing so with respect to antitrust laws, and almoust uniqualy American concept. It is also trying to rein in transnational companies through America laws covering torts, product liability, and corruption. And America goes to battle against transnational companies through economic sanctions against Cuba and Iraq. Although the United States is still the world’s largest economic power – and likely to remain so for many years – the attempt to mold the world economy to American moral, legal, and economic concepts is futile. In a global economy in which major players can emerge almost overnight, there can be no dominant economic power.” (P. F. Drucker, “The Global Economy and the Nation-State”, Foreign Affairs, September-October 1997, vol. 76. no. 5, p. 168-169). 18 R. Rosecrance, “Economic and National Security: The Evolutionary Process”, p. 209-210, in Security Studies for the 21st Century, 1997. Centar za društvena istraživanja | Godina 1 | Broj1 115 �Nedžad Bašić memory chip i microprocessor imaju određujuću ulogu što proces proizvodnje i sigurnosno pitanje dovodi u visok stupanj međuzavisnosti. 19 Mada nacionalna država i dalje ostaje glavnim međunarodnim akterom u procesu globalizacije, njen kapacitet obezbijediti uvjete sopstvenog preživljavanja nije više toliko determiniran posjedovanjem vojne sile i moći kao što je to bilo ne tako davno. Sa dobijanjem kontrole nad ekonomijom, MNCs postupno potiskuju državu kao dominantnu silu u međunarodnim ekonomskim odnosima, 20 namećući novi model globalnih odnosa 21 u kojima se one pojavljuju kao samostalni pregovarački partneri ili By changing factor of production economic elements of national security has been also gradually shifted Geopolitics pattern of security issue being replaced with new pattern of security in which D-ram memory chips, flat panel screens, microprocessors, CAD/CAM capabilities play principal role that make high level of interdependence between production and security matter. “Computers and computers components – processing units, memory, storage devices – continue to climb in performance while dropping in price; as they do so, they are driving a revolution in how people world-wide live, work – and make war. For cellular communications and powerful laptop computers are not just a convenience for fast moving people – they can also form the backbone of, for example, a highly redundant and robust mobile military command-control system. Technologically, the for the coming years is `diffusion`. As commercial needs and standards increasingly dominate, dual-use technology – technology with both civilian and military applications - will proliferate widely with important security implications. This will true on the large scale – where pharmaceutical know-how can be equally applicable to chemical weapons or aspirin, bio warfare toxin or antibiotics – and the small – where the realtor`s cellular modem becomes the terrorist`s remote detonator. (Z. Khalilzad and I. O. Lesser (eds), “Sources of Conflict in the 21st Century, Project AIR Force”, Rand, 1998, p. 21). 20 “These firms often have attractive assets that native once lack. They may have command of batter technology and therefore are more likely to gain and keep market shares – and also to give employment to local citizens. They may have batter access to capital, and they may have established distribution systems giving them instant access to foreign customers – and there fore to foreign exchange if they will step up a local production plant….The results of competition between states is an ongoing process of state/firm bargaining in which governments may often offer grater inducements, waive more rules and demands, to a foreign firm to enter its territory than it will to a native one to stay.The native firm, finding its market share eaten away by foreign competition , may scream for protection.” (S. Strange, “The Defective State”, “What Future for the State”, Deadalus, Vol. 124, .2/1995, p. 59-60). 21 “Perhaps the most important is that the nature of the competition between states in the international system has fundamentally changed. The second proposition is largely consequential: as the form of competition between states has been changed, so have their nature and their behavior towards one another. The third proposition, which is hardly new of original, is that authority over society and economy is undergoing another period of 19 116 Društveni ogledi - Časopis za pravnu teoriju i praksu �Od globalnih strukturalnih promjena ka novom konceptu suvereniteta kao moćni saveznici država u pregovorima. 22 Sa sve izraženijim pomjeranjem moći od vojno-političke strukture nacije-države ka tržišnoj tehnološko-ekonomskoj transnacionalnoj strukturi, mjenja se i sama priroda moći. U novom globalnom okruženju struktura moći sve više apsorbira sposobnost globalne, prevashodno znanstvene, tehnološke, ekonomske i komercijalne komunikacije, što ne čini vojni potencijal nacije-države beznačajnim, ali ga u svakom slučaju čini manje sposobnim da uspješno realizira interese nacije-države u novom globalnom okruženju u kojem se pojavljuju brojni novi i moćni akteri. Proces globalizacije dramatično utiče na promjene prirode same moći, čija akumulacija nužno zahtjeva nove oblike djelovanja države-nacije, što vodi promjeni prirode same države, te promjeni sadržine i oblik komunikacija izmedju država-nacija i novog globalnog oblika reprodukcije i moćnih aktera u globalnim procesima. 23 diffusion, after two or three centuries in which it become increasingly centralized in the institution of the state. The three propositions together suggest two quite important conclusions. One, based on tacit premises about the state as the most important unit of analysis, is that much of Western social science is obsolescent, if not quite out-of-date. The second – the good news – is that the three propositions may offer the basis for a Cartesian synthesis of opposed paradigms in international studies, a synthesis which could resolve, a long last, a jejune dialogue of the deaf between apparently incompatible schools of though about international relations that has bedeviled academic discussion – and puzzled a great many student- for most of latter half of the twentieth century- (Ibid, p. 55). 22 ``When I say that the nature of the competition between states has fundamentally changed, I mean that in the past states competed for control over territory and the wealthcreating resources within territories, whether natural or man-created. Now there are increasingly competing for market shares in the world economy. In this competition, territory is no longer the main basis for health-creation, no more than the amount of land in cultivation determines the value-added output of an agricultural enterprise. Resources – water, minerals, forests, etc. – may be in asset in competition for market shares, just as the luck of them may be a constraint and a handicap… And when I say that as direct consequence of this largely economic competition, the nature of state and their behavior has changed, I mean that industrial policy and trade policy are becoming more important than defense and foreign policy.`` (Ibid, p. 55-56). 23 “The reasons suggested here – the accelerating rate of scientific discovery and technological change; the shift from land, labour, and capital (in that order of importance) as the key factors of production to capital, information, and energy; and the shift from production for local and national markets to worldwide markets – were structural changes. Just how these structural changes have undermined the authority and ultimately, I believe, the legitimacy of the state can be summarized in three major hypothesis, and one minor one. The first major hypothesis is that there has been a great increase in the asymmetries of state authority. In Centar za društvena istraživanja | Godina 1 | Broj1 117 �Nedžad Bašić Sam proces globalizacije po svojoj prirodi inherentno insistira na snaženju globalnih aspekata djelovanja države kako bi država mogla uspješno pratiti nove zahtjeve globaliziranog oblika proizvodnje. Kako je sama priroda djelovanja države prirodno ograničena egzistencijom drugih suverenih država sve se urgentnije iskazuje potreba za postojanjem neke vrste globalne vlade, koja bi mogla kreirati i inaugurirati globalna pravila koja bi mogla da reguliraju sve izraženije globalne zahtjeve novog oblika proizvodnje. Modeliranje globalne vlade suočavalo je medjunarodnu zajednicu sa nekoliko krucijelnih problema, na koje nije bilo odgovora. Prije svega postavljalo se je pitanje odnosa izmedju globalne vlade i individualnih sloboda, pitanje opstanka kulturnog i političkog identiteta brojnih kulturnih i političkih zajednica (država) i njihovog daljeg komuniciranja sa globalnom vladom, te pitanje principa donošenja odluka na supranacionalnoj razini od strane globalne vlade. U ovim pitanjima bile su koncentrirane sve protivurječnosti koje su proisticale iz globalnih strukturalnih promjena. S jedne strane, nužnost inauguriranja globalno-centraliziranog sistema donošenja odluka, a s druge strane, nemogućnost uspostavljanja i funkcioniranja takvog centraliziranog globalnog sistema. 24 Traženje rješenja za ovu centralnu dilemu globalizacije vodilo je u dva pravca. U jednom pravcu bile su koncentrirane ideje koje su tržile rješenje ove dileme u „network sistemu“ koji bi se kreirao u interakcijskom odnosu izmedju vlada država, MNCs i globalnih nevladinih organizacija (NGO) i globalnih institucija. Ovaj model „transnacionalnog network sistema“ susreo se je sa problemom „demokratskog other words, while the US government may have suffered some loss of authority, the loss has been to the markets, not to other states; whereas, for the other states, their vulnerability not only to the forces of world markets but also to the greater global reach of US authority has markedly increased. The second hypothesis is that some authority over less politically sensitive issues has shifted from national states to international authorities of various kinds, both interstate institutions and private and commercial organizations. There has been, one could say, an ‘upward’ shift of authority as well as the first ‘sideways’ one. The minor hypothesis – not so universally experienced – is that there has been in many states a ‘downward’ shift of authority, from central authority to local and regional authority. And the third major hypothesis is that, as result mainly of the integration of the world economy, in finance, transport, and communication, as well as production, there are some important responsibilities of political authority that no one in a system of territorially defined states is in a position fully to discharge”. (Ibid, p. 63). 24 A.M. Sloughter, p. 8. 118 Društveni ogledi - Časopis za pravnu teoriju i praksu �Od globalnih strukturalnih promjena ka novom konceptu suvereniteta legitimiteta“ i odsustva „koncepta odgovornosti“, što je ostavljalo otvorenim pitanje djelovanja globalnih institucija i MNCs u konteksta njihovih profitibilnih interesa, što nije garantiralo efektnost riješavanja zajedničkih globalnih problema. U drugom pravcu bile su koncentrirane ideje koje su u prvi plan stavljale stvaranje novog globalnog „network sistema“ kroz frekventne interakcije izmedju nacionalnih i subnacionalnih medjusobno korespondirajućih institucija nacija-država, što bi omogućilo da ovaj „globalni network sistem“ razvije sopstvenu autonomiju, odgovornost i identitet svoga djelovanja u različitim segmentima globalnih odnosa, ostvarujući pritom frekventne interakcije sa drugim subjektima globalnih odnosa (NGOs, MNCs, globalnih komercijalnih banaka i sl.), djelujući kao neka vrsta „globalnog network sistema“ gdje proces donošenja odluka ne bi bio centraliziran i ne bi bio praćen prisilnom komponentom, a čija bi autentičnost i odgovornost proisticala iz njihove unutarnje nacionalne legitimnosti. 25 Nova priroda moći i uspostavljanje ovog „globalnog network sistema“ vodi sve izraženijoj horizontalnoj i vertikalnoj difuziji, odnosno disagregaciji nacije-države. Ovaj proces difuzije-disagregacije države ne čini državu manje ili više moćnom, manje ili više značajnim subjektom globalnih odnosa, niti pak vodi definitivnom nestajanju države-nacije iz globalnih procesa. 26 Medjutim, ono čemu ovaj proces vodi je promjena prirode djelovanja države, koja više ne može da djeluje kao unitarna država u globalnim odnosima sa prerogativima klasičnog koncepta državne suverenosti. Promjena prirode moći i promjena prirode djelovanja države na globalnoj ravni vodi kreiranju novog „svjetskog poretka“ kao sistema globalnog odlučivanja u kojem se kroz proces disagregacije i difuzije moći nacionalne države i drugih participanata medjunarodnih odnosa obezbjedjuje novi globalni network, kroz čije se funkcioniranje “Government network can help address the governance tri-lemma, offering a flexible and relatively fast way to conduct the business of global governance, coordinating and even harmonizing national government action while initiating and monitoring different solutions to global problems. Yet they are decentralized and dispersed, incapable of exercising centralized coercive authority. Further, they are government actors. They can interact with a wide range of NGOs, civic and corporate, but their responsibilities and constituencies are far brooder. These constituencies should be able to devise ways to hold them accountable, at last to the same extent that they are accountable for their purely domestic activity”. (Ibid, p. 11). 26 F. Fukuyama, “State Building – Governance and World Order in the 21st Century”, Cornell University Press, Ithaca. New York. 2004. 25 Centar za društvena istraživanja | Godina 1 | Broj1 119 �Nedžad Bašić obezbjedjuje mogućnost dosezanja minimuma standarda zajedničkog preživljavanja i prosperiteta čovječanstva. 27 Pad i uspon moći nacije-države Promjena prirode mobilnost rada, kapitala, novog sistema znanja i informacija čini suvremenu nacionalnu državu nemoćnom da potpuno kontrolira ove mobilne faktore proizvodnje, što ima određujući utjecaj na difuziju moći nacionalne države u suvremenim svjetskim odnosima. 28 Sa sposobnošću da efektnije kontroliraju transfer tehnologija, monetarnu i financijsku politiku, multinacionalne korporacije, velike komercijalne banke, globalne institucije te moćni javni mediji, koji su sposobne proizvesti i kontrolirati promjene u procesu proizvodnje, globalnih financija i globalnih političkih procesa, 29 “A disaggregated world order would be a world latticed by countless government networks. These would include horizontal networks and vertical networks- networks for collecting and sharing information of all kinds, for policy coordination, for enforcement cooperation, for technical assistance and training, perhaps for ultimately for rule making. They would be bilateral, multilateral, regional or global. Taken together, they would provide the skeleton or infrastructure for global governance.” (A.M. Sloughter, p. 15-16). 28 “Although current capital mobility has precedents from the pre-World War I era, the composition of capital flows has changed. Short-term capital today is more mobile than ever before. Moreover, long-term flows now are somewhat differently constituted than in the earlier period. Investment in the early twentieth century took the form of tangible assets rather than intangible ones. Portfolio flows predominated over direct investment in the earlier period (that trend has been reversed since World War II); within portfolios, stocks have increased in relative importance to roughly equal bonds today. And finally, before 1914, direct investment was undertaken largely by companies investing in mining and transportation, whereas today multinational companies predominate, with a large proportion of their investment in service.” (M. Wolf, p. 180). 29 «Control of money, credit, and fiscal policy was one of the three pilars on which Jean Bodin, the briliant Franch lawyer who coined the term sovereignty, set the nation-state in his 1576 Six Books of the Republic. It has never been study pillar. By the late 19 century the dominant currency was no longer state-minted coins or state-printed bank notes, but credit created by fast –growing privately controlled commercial banks. The nation-state countered with central bank. By 1912, when United States established the Federal Reserve System, every nation-state had its own central bank to control the commercial banks and their credit. But throughout the nineteenth century, one nation /state after another put itself /or was put/, under the control of the nonnational gold standard, which impose strict limits on the 27 120 Društveni ogledi - Časopis za pravnu teoriju i praksu �Od globalnih strukturalnih promjena ka novom konceptu suvereniteta sve značajnije zauzimaju poziciju pregovaračkog partnera sa nacionalnim državama sa čime se međunarodni /međudržavni/ odnosi sve više transformiraju u svjetske odnose, u kojima država gubi klasičnu moć utjecaja i samostalnog donošenja odluka. Ekonomska moć MNCs sve više supstituira moć nacionalne države da kontrolira i utiče na nacionalni kapital sa čime se relevantnost nacionalne države na ekonomskom i financijskom polju dramatično mijenja. 30 Ekonomska moć multinacionalnih korporacija i velikih komercijalnih banaka, koje prate poslovanje multinacionalnih korporacija, sve više potiskuje odredjujuću ulogu nacionalne države u globalnim ekonomskim i financijskim odnosima. Imajući u vidu ogromnu količinu novca koji cirkulira na svjetskim deviznim tržištima, 31 država više nije u mogućnosti da samostalno obezbjedjuje sopstveno snadbijevanje novcem, da kontrolira svoju deviznu i kamatnu politiku. Zahvaljujući visokom stupnju mobilnosti kapitala i radne snage, veliki procent biznisa i trgovine danas se odvija unutar i izmedju velikih MNCs i nalazi se van domašaja kontrole države. Moć koju ostvaruju na ekonomskom i financijskom planu pojačava rast političke moći MNCs što otvara šire okvire novog oblika konflikta između rada i kapitala. Rastuća moć MNCs sve više potiskuje međudržavne ka međukorporacijskodržavnim odnosima, što otvara novi vid konflikta koji sve više izrasta u konflikt između procesa, koji se odvijaju unutar i između MNCs (proces intranacionalizacije i transnacionalizacije kapitala), i političkih procesa, koji se odvijaju između država, još uvijek značajnih subjekata međunarodnih političkih odnosa. Ovaj konflikt između country’s money and fiscal policies. And the gold exchange standard, established in the Bretton Woods agreements after World War II, while a good deal more flexible than the preWorld War I gold standard, still did not give individual countries full monetary fiscal sovereignty…” (P. Drucker, p. 160). 30 “While the hope that governments will practice self-discipline is fantasy, the global economy impose new and more severe restraints on government. It is forcing government to back into fiscal responsibility. Floating exchange rates have created extreme currency instability, which in turn has created an enormous mass of “world money”. This money has no existence outside the global economy and its main money markets. It is not being created by economic activities like investement, production, consumption, or trade. It is created primarily by currency trading. It fits none of the traditional definitions of money, whether standard of measurement, storage of value, or medium of exchange. It is totally anonymous. It is virtual rather than real money. But its power is real.” (Ibid, 162). 31 Na stranim deviznim tržištima u 1995. cirkuliralo je dnevno u prosjeku preko $1.230 milijardi, što je činlo apsolutno nemoćnim čak i najbogatije države da kontroliraju devizni kurs. (Financijal Times, 11 March, p.1 ). Centar za društvena istraživanja | Godina 1 | Broj1 121 �Nedžad Bašić sve međuzavisnijih država i MNCs, izrasta u novi vid globalnog konflikta između procesa globalizacije, s jedne strane, i identiteta lokalne zajednice, s druge strane, što ovaj konflikt neizbježno čini kulturnim i socijalnim konfliktom. U ovom novom obliku konflikta socijalna (welfare) država izrasta u značajnog partnera u globalnom socijalnom konfliktu izmedju MNCs i društva. 32 Kroz sve izraženiju globalnu ekonomsku integraciju, država znatno gubi sposobnost kontrole nad tokovima kapitala, kretanju dobara i usluga. Država gubi moć kontrole migracijskih tokova radne snage, te gubi monopol nad stokiranjem i upravljanjem velikim brojem informacija. 33 Visok stupanj mobilnosti kapitala, dobara i usluga čini znatno otežanim državnu kontrolu u oblasti kreiranja i provođenja poreske politike, redistribucije javnih prihoda, te kreiranje makroekonomske politike. Ubiranje raznih vrsta poreza postaje sve teže za vladu zbog postojanja dugačke liste tzv. “fiscal termites” koji umnogome umanjuju moć vlade da suvereno odlučuje u ovoj, oduvijek za države rezerviranoj, oblasti. Visok stupanj preko-granične maloprodajne trgovine, rast elektronske komercijale, dramatična ekspanzija trgovine unutar MNCs, otežano oporezivanje mobilnog kapitala, te sve izraženija mogućnost zamjene bankovnih računa sa elektronskim novcem /tzv. smart card/, sve više dovode državu u novu poziciju u fiskalnoj politici. “To be fair, globalization has brought dramatic benefits in some countries. Ironically, the greatest successes have been in East Asia – those very nations that did not play by the rules of the so called Washington consensus of privatization, deregulation, fiscal austerity, and lower trade barriers. Many of those countries protected their markets, redistributed land, invested in education, targeted and subsidized their exports, and purposefully ran mercantilist trade surpluses, all of which Washington winked at during the Cold War. But in recent years, most of these countries succumbed to pressures to open their economies and deregulate their financial systems. As a result, they become the major victims of the recent global economic crisis that thrust literally millions of working people back into poverty.” (J. Mazur, “Labor’s New Internationalism”, Foreign Affairs, January-February 2000, vol. 79, no.1, p. 82). 33 “The most powerful engine of change in the relative decline of states and the rise of non state actors is the computer and telecommunications revolution, whose deep political and social consequences have been almost completely ignored. Widely accessible and affordable technology has broke governments’ monopoly on collection and management of large amounts of information and deprived governments of the deference they enjoyed because of it. In every sphere of activities, instantaneous access to information and the ability to put it to use multiplies the number of players who matter and reduces the number who command great authority. The effect on the loudest voice – which has been governments’ – has been the greatest” (J. T. Mathews, “Power Shift”, Foreign Affairs, January-February 1997, p. 51). 32 122 Društveni ogledi - Časopis za pravnu teoriju i praksu �Od globalnih strukturalnih promjena ka novom konceptu suvereniteta Također visok stupanj globalne mobilnosti radne snage čini znatno otežanim oporezivanje zarada radnika koje čine glavni izvor fiskalnih prihoda države. Posebno veliki utjecaj na slabljenje moći države u fiskalnoj politici proizvest će masovna upotreba interneta. Poteškoće u lociranju internet servera, nemogućnost kontrole nad internet transakcijama (lodiranje softvera, filmova, muzike i sl.) sa čime se znatno izbjegava plaćanje poreza, autorskih prava i sl., vodi znatnom smanjenju moći države da kontrolira financijske i ekonomske tokove, što ima velikog utjecaja na slabljenje njene budžetske pozicije. 34 U susretu sa transnacionalnim oblikom proizvodnje država gubi znatan dio svoje sposobnosti da efektno utiče na makroekonomsku politiku i da kontrolira posljedice nove makroekonomske strategije. Visok stupanj medjuzavisnosti u globalnim ekonomskim procesima i transakcijama prisiljava nacionalnu državu da veliki procenat svoje makroekonomske politike prenese na regionalne ili globalne institucije. Globalne finacijske i monetarne institucije, kao npr. Medjunarodni monetarni fond (International Monetary Fund - IMF) i Svjetska banka (World Bank), Evropska centralna banka…, imaju veliki utjecaj na nacionalnu financijsku i monetarnu politiku država preko direktnog dizajniranja i monitorisanja finacijskog i monetarnog programa njihovih strukturalnih prilagodjavanja. Isto tako Svjetska trgovačka organizacija (World Trade Organization – WTO) obavezuje države članice da usklade svoje unutarnje pravne propise sa medjunarodnim trgovačkim pravom kojim se reguliraju globalne financijske, monetarne i tržišne transakcije. Sa ovim se umnogome restriktira regulatorna uloga države na vanjskom planu. 35 Proces globalizacije koji se odvija preko MNCs složen je proces u kojem prodaja, usluge, javni odnosi i pravni poslovi isključivo bivaju lokalno determinirani, određeni uvjetima moći lokalne vlade i lokalnog tržišta, dok je proizvodnja dijelova, planiranje, istraživanje financiranje, marketing, cijene i menadžment determinirani isključivo procesima koji se odvijaju na globalnom planu, odnosno na svjetskom tržištu. Ova dvostruka unutarnja i globalna karakteristika procesa globalizacije određuje temeljnu determinantu suvremenih međunarodnih odnosa u kojima se M. Wolf, p. 185-186. T. J. Sinclair, Passing Judgment: “Credit Rating Processes as Regulatory Mechanisms of Governance in the Emerging World Order”, Review of International Political Economy, Spring 1994, p. 133-159. 34 35 Centar za društvena istraživanja | Godina 1 | Broj1 123 �Nedžad Bašić odvija glavni sukob između globalne i lokalne dimenzije svjetske ekonomije, u kojem funkcija nacionalne države i njenog suvereniteta biva stubokom promijenjena. 36 Međutim, i pored toga što moć države da regulira ekonomske, trgovačke, monetarne i financijske odnose na tradicionalan način sve više opada, njena uloga u novoj konstelaciji međunarodnih odnosa sve više raste u novom značenju. MNCs sve više trebaju državu za regulaciju njihovih odnosa u sve napregnutijim socijalnim odnosima sa organiziranim sindikatima rada. Država mora i dalje obezbjeđivati osnovne okvire reprodukcije /socijalna politika, obrazovanje, zaštita imovinskih prava, zaštita industrijske i intelektualne svojine…/ što u tom pravcu vodi sve izraženijem jačanju njene unutarnje regulatorne funkcije u kooperaciji sa transnacionalnim kapitalom. 37 Smanjenje moći države da kontrolira mobilnost kapitala, radne snage, da efektno kontrolira fiskalnu i monetarnu politiku ne znači da proces globalizacije čini državu slabijom i manje potrebnom nego što je to bilo u ranijem periodu. Značaj države u procesu globalizacije mijenja svoju prirodu i iskazuje se prije svega u njenoj sposobnosti kreirati uvjete potrebne za efektno uključivanje zemlje u globalne integracione procese. Ovdje se prije svega misli na sposobnost države obezbjediti odgovarajući kvalitet i potrebnu zaštitu vlasničkih prava, odgovarajući kvalitet i efektnost građanskih usluga, personalnu sigurnost ljudi i odgovarajuće obrazovanje sopstvenog stanovništva. Da bi se ovi preduvjeti za efektno uključivanje u integracione procese dosegli, država mora biti čvrsto integrirana u globalnu impregniranu ekonomsku, političku i institucionalnu strukturu sa visokim stupnjem vibracija (fleksibiliteta) i identiteta sopstvenog stanovništva i njegove lojalnosti prema sopstvenoj državi iz čega i proističe njena sposobnost obezbijediti unutarnju stabilnost i sigurnost, što je jedan od bitnih preduvjeta za efektno uključivanje države u globalne integracione procese, što je i preduvjet njenog političkog preživljavanja. 38 “Whereas the fear in the 1970s was that multinationals would become an arm of government, the concern now is that they are disconnecting from their home countries’ national interests, moving jobs, evading taxes, and eroding economic sovereignty in the process.” (J.T. Mathews, p. 56) . 37 “Losing its financial and monetary sovereignty may make the nation-state stronger rather than weaker.” (P.F. Drucker, p. 164). 38 “Globalization does not make state unnecessary. On the contrary, for people to be successful in exploiting the opportunities afforded by international integration, they need states at both ends of their transactions. Failed states, disorderly states, weak states, and 36 124 Društveni ogledi - Časopis za pravnu teoriju i praksu �Od globalnih strukturalnih promjena ka novom konceptu suvereniteta Globalna difuzija moći države U procesu globalizacije moć države da obezbjedjuje nacionalnu sigurnost svakako je promijenjena ali ne i eliminirana. Mogućnosti rata, kao metoda rješavanja konfliktnih interesa između država, nije otklonjena mada je efektnost rata kao metoda rješavanja konflikta znatno smanjena i suštinski promijenjena. Međutim, proces globalizacije donio je nove oblike prijetnje sa novim sadržajima koji će tražiti nove efektnije metode otklanjanja novih prijetnji i novih izazova državi, na koje ona sama ne može efektno odgovoriti. Proces globalizacije ne samo da je učinio moć i silu manje učinkovitijom u rješavanju konflikata interesa u međunarodnoj zajednici i otklanjanju prijetnji sigurnosti države, već je učinio i sam pojam sigurnosti znatno složenijim. Globalni terorizam, organizirani kriminal, trgovina drogama, trgovina ljudima, korumpiranost lokalnih vladajućih režima, pranje novca, etnički i vjerski konflikti, prevrti i pobune, siromaštvo u kombinaciji sa enormnim rastom populacije i ekološke degradacije, sa sve moćnijim utjecajem ekstremno radikalnih vjerskih i političkih pokreta na široke slojeve stanovništva, čine unutarnje sigurnosno pitanje sve izraženije globalnim pitanjem. Novi oblici prijetnje miru i stabilnosti u svijetu nužno traže uspostavljanje novog međunarodnog poretka koji bi bio sposoban odgovoriti na nove izazove globalizacije. Proces globalizacije znatno će utjecati na unutarnju socijalnu diversifikaciju države što će bitno promijeniti odnose između pojedinca i države. Drastično smanjenje cijene transporta, fantastičan razvoj mogućnosti komuniciranja, osobito nakon razvoja interneta, mogućnosti brze i frekventne komunikacije između pojedinaca i društvenih grupa sa različitim ili identičnim nacionalnim, vjerskim i kulturnim identitetima, sa čime se sve više smanjuje moć države da kontrolira centraliziranu mrežu informacija i komunikacija kao instrumenta sopstvene moći, što sve više vodi fragmentaciji tradicionalnih zajednica, što vodi rapidno brzoj promjeni socijalnog i kulturnog identiteta pojedinca i grupa. Globalno disperzijom informacione tehnologije stvaraju se mogućnosti da se razvije široke decentralizirane mreže komunikacija izmedju brojnih grupa i zajednica, koje su utemeljene na poslovnim interesima, etničkom, vjerskom ili kulturnom corrupt states are shunned as the black holes of the global economic system.” (M. Wolf, p. 190). Centar za društvena istraživanja | Godina 1 | Broj1 125 �Nedžad Bašić identitetu, kriminalnim ili političkim ciljevima, ili pak na socijalnom statusu njenih članova. Zahvaljujući visokom stupnju decentralizacije i “network-modelu” organizacije, za razliku od države koja je fundirana na “organizacionom piramidalnom hijererhijskom modelu”, ove grupe postižu visok stupanj fleksibilnosti u korišćenju novih tehnologija, što ih čini značajnim novim ne-državnim faktorima globalnih odnosa. Organizacije koje su utemeljene na “network model” koje su danas poznate kao nevladine organizacije (Non Governmental Organization - NGO) zauzimaju veoma značajno mjesto u novom globalnom hijerarhijskom poretku moći. Zahvaljujući njihovom broju, njihovim aktivnostima, fleksibilnosti, te financijskoj moći, teško je danas zamisliti uspješno djelovanje suvremene države bez kooperacije sa ovim organizacijama. 39 Svojom aktivnošću nevladine organizacije sposobne su značajno utjecati i promijeniti politiku čak i najmoćnijih zemalja, otvoriti nove mogućnosti rješavanja međudržavnih problema koje same države nisu u mogućnosti riješiti, upozoriti države i međunarodnu zajednicu na brojne socijalne, humanitarne, ekonomske ili ekološke probleme koji bi mogli dovesti do međudržavnog ili čak globalnog konflikta. 40 Velike kriminalne i terorističke “mreže” koje kontroliraju ogromne sume novca pojavljuju se kao značajna prijetnja državi u globalnoj ekonomiji. Deregulacija i privatizacija državnih poduzeća, brzo mijenjanje komercijalnih 41 «They breed new ideas; advocate, protest, and mobilize public support; do legal, scientific, technical, and policy analysis; provide services; shape, implement monitor, and enforce national and international commitments; and change institutions and norms.» (J.T. Mathews, p. 53). 40 “NGOs’ easy reach behind others states’ borders forces governments to consider domestic public opinion in countries with which they are dealing, even no matters that governments have traditionally handled strictly between themselves. At the some time, cross-border NGO networks offer citizens groups unprecedented channels of influence. Women’s and human rights groups in many developing countries have linked up with more experienced, better funded, and more powerful groups in Europe and the United States. The latter work the global media and lobby their own governments to pressure leaders in developing countries, creating a circle of influence that is accelerating change in many parts of the world.” (Ibid, p. 54). 41 Procjenjuje se da je samo organizirani kriminal početkom 2000s kontrolirao preko 750 milijardi dolara godišnje, od toga između 400 i 500 milijardi dolara samo kroz trgovinu opojnih droga. 39 126 Društveni ogledi - Časopis za pravnu teoriju i praksu �Od globalnih strukturalnih promjena ka novom konceptu suvereniteta partnera, rast kretanja velike mase stanovništva preko nacionalnih granica, brza ekspanzija globalnog finansijskog sistema, sve manje čini države sposobnim da se suoče sa problemom organiziranog kriminala i globalnog terorizma, što ih sve više gura ka nužnosti suradnje i kooperacije sa brojnim privatnim nevladinim organizacijama. Isto tako raste utjecaj brojnih finansijskih organizacija i institucija (World Bank, International Monetary Fund…) u određivanju uvjeta pod kojim države mogu tražiti, dobijati i koristiti međunarodnu finansijsku podršku, što sve više gura državu ka nužnosti kooperacije sa ovim institucijama. Nužnost medjusobnog kooperiranja država na planu borbe protiv globalnih terorističkih i kriminalnih mreža, te u dobijanju finasijske podrške za sopstveni razvoj, sa nevladinim organizacijama privatnog sektora, vodi sve više difuziji moći nacije-države, što otvara novo polje odnosa između države i privatnog sektora u kojem se pored kooperacije razvija i sukob oko nove preraspodjele moći. Sve izraženija nužnost ulaženja države u koaliciju sa NGOs, što je prouzročilo i znatnu difuziju moći od države ka NGOs, država je prinuđena otvoriti vanjskom utjecaju brojna polja sopstvene isključive nadležnosti i time relativizirati brojne elemente državnog suvereniteta. Tako npr. pitanje intervencije u unutarnje stvari nacije-države koja su bila u isključivoj nadležnosti država stubokom se mijenja od završetka hladnog rata. Međunarodne organizacije kao što su UN, EU, Helsinki Watch, OSCE, traže pravo vanjske intervencije u unutarnju isključivu nadležnost države ne samo u slučaju ugrožavanja međunarodnog mira već i u slučajevima masovnog narušavanja temeljnih prava čovjeka unutar nacionalnih državnih granica, u slučajevima kada država svojim činjenjem ili nečinjenjem krši norme međunarodnog prava. 42 Traži se pravo stranog prisustva i nadgledanje izbora za See more about justification of external military intervention with an aim to end suppression within state and to protect refugees and other inhabitants in Adam Roberts, Humanitarian War: Military Intervention and Human Rights, 69 INT’L AFF. 434 (1993). Also, many international lawyers are inclined to see a legal basis for intervention of the international community in the internal affairs of state in the case “when government is acting in a tyrannical manner its population, in the aim protect minorities from genocide or violent oppression, combat gross and persistent violation of human rights, and act to protect extreme cases of violence against a people.” J.A. Gallant, Humanitarian Intervention and Security Council Resolution 688: A Reappraisal in Light of a Changing World Order, 1992 AM. U.J. INT’L POL’Y 881, at 890. A similar opinion can be seen in the statement of former UN Secretary General Javier Perez de Cuellar: “We are clearly witnessing what is probably an irresistible shift in public attitudes toward the belief that the defense of the oppressed in the 42 Centar za društvena istraživanja | Godina 1 | Broj1 127 �Nedžad Bašić nacionalne institucije vlasti što je apsolutno bilo nezamislivo sa aspekta tradicionalnog gledanja na suverenitet nacije-države. Traže se nove pravne norme i novi standardi ponašanja u okviru kojih se sve više naziru okviri „globalnog suvereniteta“ u kojem se odvija snažna difuzija moći nacije-države. Proces jačanja funkcionalne koalicije između države i globalnih institucija praćen je procesom difuzije političke i ekonomske moći od države ka MNCs, te ka globalnim medjunarodnim organizacijama i institucijama, odnosno ka globalnim institucijama. 43 Ovaj proces difuzije političke i ekonomske moći, dakako i vojne moći, koji je ekstremno kulminirao poslije kolapsa Sovjetskog saveza, praćen je dvostrukim kontradiktornim trendovima. Na jednoj strani, ovaj globalni proces transformacije međunarodne zajednice u svjetsku zajednicu viđen je uglavnom kao integracije između visokoindustrijaliziranih zemalja, velikih transnacionalnih korporacija i financijskog kapitala, koji su gradili svjetski sistem na promociji dominacije sistema vrijednosti najrazvijenijih zapadnih zajednica. 44 Na drugoj strani, proces difuzije moći u međunarodnoj zajednici ostavio je najveći dio svjetske populacije u siromašnim i marginaliziranim društvima, koja su suočena sa brojnim socijalnim, etničkim i vjerskim podjelama i tenzijama, što podstiče name of morality should prevail over frontiers and legal documents.” D. J. SCHEFFER ET AL., POST-GULF WAR CHALLENGES TO THE U.N. COLLECTIVE SECURITY SYSTEM: THREE VIEWS ON THE ISSUE OF HUMANITARIAN INTERVENTION 4 (United States Institute of Peace). 43 S. Strange,”What Future for the State”, The Defective State Deadalus, Vol. 124, 2/1995, p. 67. 44 ''…FDI (Foreign Direct Investment) important as it is, continues to circulate between the three main blocs of the Thriad: the great bulk of it is exchanged between the reach nations. In 1981-90, 75 per cent of investment flows were accounted for by the United States and Canada, the EU and EFTA, and Japan, countries together representing 14 per cent of the world's population in 1990. If one adds the nine most important developing-country recipients of FDI and the eight coastal provinces of China plus Beijing, these represented another 14 per cent of the world's population and took 16.5 per cent of FDI in the same period. Thus over 90 per cent of FDI was confined to just over a quarter of the world's population''. (P. Hirst, ''The Global Economy-Myths and Realities'', International Affairs, 73, 3, p. 415). 128 Društveni ogledi - Časopis za pravnu teoriju i praksu �Od globalnih strukturalnih promjena ka novom konceptu suvereniteta njihovu globalnu kulturno-vjersku homogenizaciju zahtijevajući novi globalni sistem distribucije moći i socijalne pravde. 45 Stisnut između globalnih procesa integracije i dezintegracije, proces globalne difuzije moći kreira novo globalno socijalno i političko okruženje u kojem rastuća socijalna frustracija čini kulturni i vjerski homogenizam marginaliziranih velikih društvenih grupa sve vidljivijim i sve moćnijim. U ovom novo-nastajućem socijalnom kontekstu glavna prijetnja globalnoj sigurnosti mogla bi biti odredjena kao nedostatak funkcionirajuće demokratske strukture novog svjetskog poretka što bi moglo voditi daljim globalnim socijalnim i kulturnim tenzijama u suvremenoj svjetskoj zajednici. 46 Promjena prirode suvereniteta države Jedno od temeljnih pitanja koje se nameće u eri globalizacije jeste pitanje da li globalne strukturalne promjene vode ka fundamentalnoj transformaciji suvereniteta države u okviru čega se mijenja i sama priroda moći a time i priroda nacionalne i globalne sigurnosti. Globalne strukturalne promjene nisu imale istog efekta na sve države. Države su u proces globalnih strukturalnih promjena ušle sa različitim kulturnim i historijskim background-om, sa različitom ekonomskom strukturom, sa različitim nivom tehnološkog i demokratskog razvoja, sa različitim političkim opcijama i pretenzijama, što je imalo za posljedicu njihov različit položaju u ``We have entered a time of global transition marked by uniquely contradictory trends. Regional and continental associations of States are evolving ways to deepen cooperation and ease some of the contentious characteristic of sovereign and nationalistic rivalries. National boundaries are blurred by advanced communications and global commerce, and the by the decisions of States to yield some sovereign prerogatives to larger, common political associations. At the some time, however, fierce new assertions of nationalism and sovereignty spring up, and the other cohesion of State is threatened by brutal ethnic, religious, social, cultural or linguistic strife. Social peace is challenged on the one hand by new assertions of discrimination and exclusion and, on the other, by acts of terrorism seeking the undermine evolution and change through democratic means.`` (B. B. Ghali, An Agenda for Peace, United Nations, New York, 1992.). 46 ``As a consequence of growing economic global interdependence, domestic conflict over welfare and the economic and coercive structure of the internal welfare system can no longer be isolated from the struggle between states and the imperatives of global market competition that work to redistribute wealth and material capabilities among state.`` (Edward A. Kolodžijev, Renaissance in Security Studies, International Studies Quarterly (1992), 36, p. 428. 45 Centar za društvena istraživanja | Godina 1 | Broj1 129 �Nedžad Bašić procesu globalnih strukturalnih promjena. Sam proces globalizacije iziskivao je, s jedne strane, pojačanu ulogu države u regulaciji tržišnih odnosa, u regulaciji djelovanja transnacionalnog kapitala u formi garancije profita, garancije zaštite vlasništva, zaštite stranih investicija, zaštite intelektualne svojine, kreiranja poreske i valutne politike, kao i radnog zakonodavstva i zaštite radnika, što je dakako imalo velikog utjecaja na pravac i tempo utjecaja strukturalnih promjena na transformaciju suvereniteta država. Da bi efektno mogla odgovoriti ovim potrebama globaliziranog kapitala država je nužno zahvatala sve veći dio BNP u formi budžetskih rashoda, sa čime se je funkcija države sve više pomjerala od funkcije socijalne zaštite stanovništva ka funkciji obezbjedjenja konkurentnosti transnacionalnog kapitala. 47 Sve izraženija dominacija transnacionalnog kapitala učinit će odnose država više relaksantnim i manje konfliktnim, iz čega će proisteći i viši stupanj interaktivnosti u njihovim odnosima, dakako i viši stupanj ovisnosti djelovanja država na globalnoj sceni. Premda se regulatorne aktivnosti država i dalje fokusiraju na nacionalnom suverenitetu, država u procesu globalizacije teško može obavljati samostalno klasične funkcije suvereniteta bez koordinacije i suradnje sa drugim državama i medjunarodnim institucijama i transnacionalnim organizacijama, sa čime se umnogome mijenja i sama priroda suvereniteta države. 48 Globalna proizvodnja, uspostavljanje globalnih financija, organiziranje velikih komercijalnih banaka, stvaranje of shore kompanija, koje djeluju na P.G. Cerny, The Changing Architecture of Politics: Structure, Agency and the Future of the State, London: Sage, 1989, p. 205. 48 „Why would individual states be motivated to seek to solve problems together? First, they may be forced into it by powerful social agents or movements of verious kinds. I think this is one reason why today states talk to each other about global problems. It's not necessarily because they've found their own way to these problems, it is that they were forced to confront them. Secondly, and related to this, I think states have learnt that, through collaboration and the creation of common regimes and common international regulatory frmeworks, they can find ways of coordinating their activity which reduce the cost to them of acting alone; reduce uncertainity and risk; spread and share information; produce public goods which they can't develop in isolation; and increase their collective effectiveness.“ (D. Held, “Globallization, Cosmopolitanism and Democracy”, IDEES of the Centre d'Estudies de Temes Contemporanis, Generalitat de Catalunya, 2001). 47 130 Društveni ogledi - Časopis za pravnu teoriju i praksu �Od globalnih strukturalnih promjena ka novom konceptu suvereniteta području više država, vodilo je u derogaciju sposobnost države da utiče na globalne ekonomske i financijske tokove, da kontrolira svoju valutnu i financijsku politiku, da kontrolira sticanje imovina stranaca i da regulira pitanje vlasništva na teritoriju pod njenom jurisdikcijom i slično. Isto tako država se u sučeljavanju sa regulatornim aktivnostima globalnih poslovnih asocijacija suočava sa znatnim limitiranjem svoje regulatorne sposobnosti, što umnogome čini njenu pravnu suverenost ograničavajućom. 49 Transnacionalna proizvodnja, intra-korporacijska trgovina, elektronske novčane transakcije, što čini samu suštinu moderne globalizacije, dramatično traže pomjeranje od klasičnog, ekskluzivno teritorijalno-političkog koncepta državnog suvereniteta, ka „globalnom funkcionalnom suverenitetu“. 50 T.J. Sinclair, 'Passing judgment: credit rating processes as regulatory mechanisms of governance in the emerging world order', Review of International Political Economy I, Spring 1994, pp. 133-59. 50 In particular, supra-territorial capitalism has cost contemporary states one of the principal marks of sovereignty: namely, complete and exclusive control of the national currency and associated financial markets. For example, globally circulating monies have greatly complicated a state's management of its money supply, exchange rates and interest levels. With volumes on the world's wholesale foreign exchange markets running at $1,230 billion per day in 1995, even the most powerful states cannot singly maintain their target exchange rates. Meanwhile, global banking has offered ample scope for money laundering, tax evasion and reckless lending. Indeed, laundered money, which today moves as much as $500 billion per annum through banks in the United States alone, has financed mafia-type organizations that have grown to rival the state in certain districts of Brazil, China, Colombia, Italy, Pakistan, Russia, and Thailand. Likewise, Eurobonds lie beyond the regulatory authority of the state in whose currency they are denominated. Trans-border equity listings avoid supervision by the state in which the company headquarters is located. Trillions of dollars in global derivatives business, too, operate in relative detachment from territorial jurisdiction. Indeed, few government regulators are close to understanding the 'rocket science' of the more complex derivatives instruments. On the whole, the power of global finance capital is such that governments have felt constrained to appease the markets with insistently applied policies to lower inflation and public sector deficits-often with painful consequences for weaker sectors of the population. More tangible forms of global capital also readily override state sovereignty. For example, trans-border manufacturing and trading companies regularly frustrate tax collectors through transfer pricing and offshore corporate registration. These firms can also with relative ease relocate production facilities and sales outlets to other jurisdictions if they find a particular state's regulations overly burdensome. Usually this threat alone is sufficient to make a state amenable to, inter alia, privatization and liberalization. 49 Centar za društvena istraživanja | Godina 1 | Broj1 131 �Nedžad Bašić Da bi obezbjedila nesmetano i uspješno inkorporiranje u regionalne i globalne kooperacije, u okviru kojeg jedino može preživjeti, država je sve više zainteresirana ustupiti dio svoje klasične (pravne) suverenosti regionalnim i medjunarodnim organizacijama i globalnim institucijama. 51 Brojne države u svoje ustave unose „dobrovoljna“ ograničenja svoje suverene nadležnosti nastojeći time obezbjediti što povoljniji položaj u procesu globalnih strukturalnih promjena. 52 Uz to, brojna ograničenja državnog suvereniteta u procesu globalizacije, često su rezultat pritisaka transnacionalnog kapitala, prije svega na male i manje moćne nacionalne države, koje su prisiljene pribjeći restrikciji suvereniteta da bi preživjele. 53 Thus governments have not pursued 'deregulation' or flocked to the WTO as a result of sovereign initiative, but because (rightly or wrongly) they assume such steps to be indispensable to jobs creation, technology transfer and general economic prosperity in a globalizing world. 51 „Today, some of the most fundamental problems we face, for example, the regulation of trade, the management of financial instability, exploding inequalities, the protection of the environment and the defence of the genetic basis of humankind are not issues which can any longer be solved by states or a people acting alone. Most modern political theory presupposes the idea of a self-determining people that can set it's own fate. Today, we're in the world of 'overlapping communities of fate', where the fate of different peoples is interconnected, set either by powerful states or by processes - from financial markets to the environment – which are global in their scope and ramification.“ (D. Held, 2001). 52 “Several state constitutions in fact explicitly prescribe the cession of sovereignty in the interest of regional collaboration. (The Italian, Portuguese and Spanish constitutions contain such provisions in respect of the European Union. Latin American governments participating in the Mercosur trade pact are currently exploring similar formulations.) Since 1978 the International Monetary Fund has, through so-called Article IV consultations, undertaken detailed authoritative reviews of the macroeconomic policies of its member governments. The IMF and World Bank have exercised even greater influence over a government's monetary and fiscal policies when these agencies design and monitor a structural adjustment program (SAP), as they have done at one time or another since the late 1970s for over 100 countries. The recently created World Trade Organization marks another striking growth of supra-state governance. For example, the WTO charter commits member states to alter their statutes and procedures to conform with trans-world trade law and in trade disputes a WTO ruling against a state is binding unless every member of the organization votes to overturn the judgment. In these ways and others, many decisions concerning the regulatory environment for capitalism now come to rather than from the state”. 53 For example, weaker states in particular tend to need an IMF/World Bank stamp of approval before they will obtain flows of FDI or a rescheduling of their trans-border debts, let 132 Društveni ogledi - Časopis za pravnu teoriju i praksu �Od globalnih strukturalnih promjena ka novom konceptu suvereniteta Sve izraženija transformacija klasičnog pravnog suvereniteta države u procesu globalizacije, dramatično vodi u institucionalnu i teritorijalnu decentralizaciju države, u kojoj lokalne institucije države bivaju moćnije linkirane sa transnacionalnim korporacijama, medjunarodnim i regionalnim institucijama ili institucijama drugih država, nego sa centralnim institucijama svoje matične države, sa čime se gubi unutarnja teritorijalna i institucionalna koherentnost nacionalnog suvereniteta države. 54 Kako su MNCs jedan od najmoćnijih instrumenata obezbjedjivanja države sa nužno potrebnim financijskim sredstvima za njeno funkcioniranje, sa novim tehnologijama i sa vojnom opremom, to država sve izraženije inklinira prilagodjavanju svojih unutarnjih regulatornih propisa potrebama i interesima MNCs te stvaranju odgovarajućeg ambijenta atraktivnog za transnacionalni kapital, što suverenitet nacionalne države sve izraženije uvodi u visok stupanj fluidnosti i difuzije, što nije ništa drugo do refleks borbe izmedju transnacionalno organiziranog kapitala i lokalno-nacionalno sindikalno organiziranog rada. U tom konfliktu izmedju transnacionalnog kapitala i sindikata dolazi do velike krize geo-političkog koncepta suvereniteta države. Ka novom globalnom sigurnosnom kompleksu Opadanje značaja zemljišta kao faktora proizvodnje i sve izraženiji rast značaja mobilnosti kapitala i mobilnosti rada, sa dramatičnim razvojem aplikativnih tehnologija u razvoju transporta i informatike, i sa sve izraženijim izrastanjem faktora novog kompleksa znanja i inventivnosti u odredjujući demijurg globalnog alone new credits. Meanwhile, global business lobbies like the WEF and the Alliance for GATT Now a pressure group of 285 firms spearheaded by Texas Instruments, have been among the strongest proponents of the WTO. 54 In China, Guangdong, Xinjiang, Shandong, and Yunnan Provinces have similarly distanced themselves from Beijing in dealing with trans-border companies. Tatarstan has done the same vis-à-vis Moscow In southern India the state of Andhra Pradesh is, in the context of a campaign to attract FDI, negotiating its own structural adjustment loan with the World Bank, separately from the central government in New Delhi. (see more in D. S. G. Goodman and G. Segal, eds, “China deconstructs: polities, trade and regionalism“(London: Rutledge, 1994). And Financial Times, 26 March 1997, p. 6. Centar za društvena istraživanja | Godina 1 | Broj1 133 �Nedžad Bašić ekonomskog razvoja, značaj državnih granica u procesu globalizacije početkom ovog stoljeća, drastično opada u odnosima izmedju džava. 55 Visok stupanj tehnološke povezanosti i visoka rezonanca mobilnosti kapitala i rada, vodi sve izraženijem rastu međuzavisnosti u međunarodnoj zajednici drastično smanjujući mogućnost rješavanja konflikta vojnim mjerama, osobito među razvijenim zemljama. 56 Pomjeranje istočnoevropskih zemalja i novih zemalja nasljednica Sovjetskog saveza, kao i zemalja Trećeg svijeta, ka modelu tržišne ekonomije sa demokratskim institucijama, nosilo je nove promjene sa političkim naznakama sa čime ekonomski razvoj ovih zemalja i njihova povezanost sa razvijenim zemalja sve više potiskuje vojni faktor kao način rješavanja međudržavnih problema i u ovom dijelu svijeta. Nakon sloma koncepta „Hladnog rata“ tradicionalna uloga države u obezbjeđenju nacionalne sigurnosti sve se više pomjera od vojno-političkog ka tehnološko-tržišnom faktoru što dovodi do sve intenzivnijeg međuzavisnog odnosa “In one way or another, discussions of globalization usually highlight the question of borders, i.e. the territorial demarcations of state jurisdictions, and associated issues of governance, economy, identity and community. Around this theme of borders one can distinguish three common understandings of the term 'globalization'. The first identifies globalization as an increase of cross-border relations. The second treats globalization as an increase of open-border relations. The third regards globalization as an increase of transborder relations. Although these three notions overlap, they also have qualitatively different emphases. The third conception is the newest and offers the most distinctive and helpful insight into contemporary world affairs. Subsequent sections of this article will therefore build on the notion that globalization involves a growing transcendence of borders” (J. A. Scholte, “Global Capitalism and State, International Affairs”, Royal Institute, Vol. 73, no. 3, July 1997). 56 “Liberal theories emphasize that changes in the global economy shift the cost/benefit ration for war and that changed incentives, in turn, influence the likely-hood of conflict. With the respect to the globalization of production the onlz prominent argument in this regard is advanced by Richard Rosecrance, who maintains that recent production shifts by multinational corporations have caused the structure of the most advanced countries to change in a way that reduces greatly the economic benefits of seizing territory, thereby lowering the likely-hood of war” (S. G. Brooks, 2005, Producing Security: Multinational Corporations, Globalization, and the Changing Calculus of Conflict, Princeton University Press, Princeton and Oxford, p. 45). 55 134 Društveni ogledi - Časopis za pravnu teoriju i praksu �Od globalnih strukturalnih promjena ka novom konceptu suvereniteta vojnog i ekonomskog sistema sigurnosti, sa čime ekonomska i vojna sigurnost države nose visok stupanj međusobne sublimacije, ali i kontradikcije. Eliminacija sigurnosne autarkičnosti odrazit će se kako na djelovanje malih država koje nisu bile u mogućnosti da adekvatno obezbjede svoj sigurnosni sistem izolirano, tako i velikih super sila kojima u odsustvu tehnološke internacionalizacije prijeti opasnost tehnološkog zaostajanja, što nosi opasnost i slabljenja njihove vojne moći. Internacionalizacija u vojno-tehnološkom kompleksu isključuje samodovoljnost a samim tim i sposobnost i najmoćnijih država da samostalno vode velike i komplicirane vojne operacije. Kako tehnološki razvoj sve izraženije vodi sužavanju razlika izmedju proizvodnje namjenjene za civilne i vojne potrebe, svaka izolacija u vojno tehnološkom razvoju vodila bi ne samo slabljenju vojne odbrambene moći države, već i u drastično opadanje stupnja disperzivnosti proizvodnih aktivnosti MNCs, što bi imala dramatičan utjecaj na ekonomsku poziciju prvenstveno visokorazvijenih zemalja, kao domicilnih zemalja velikih MNCs. Otuda će strukturalne promjene inherentno sve više potiskivati državu ka sve višem stupnju otvorenosti i medjuzavisnosti, što će stubokom mijenjati njihovu sigurnosnu politiku, tražeći novi pristup kako nacionalnom tako i globalnom konceptu sigurnosti. Novi odnos između država i novih globalnih nedržavnih subjekata vodi u nužnost definiranja novog koncepta nacionalne i posebno globalne sigurnosti. U novim uvjetima sigurnost države se postiže lakše pošto nova globalna ekonomija sve više smanjuje razloge za vođenje oružanih konflikata u cilju uspostavljanja vojne i političke kontrole nad drugim državama, što je u prethodnoj fazi razvoja međunarodne zajednice najčešće bio preduvjet ekonomskog razvoja nacije-države. Strukturalnim promjenama koje su nastale krajem prošlog stoljeća ne samo da se umanjuje potrebe za političkom kontrolom nad teritorijima drugih država, čime se umanjuje potreba za vođenjem osvajačkih ratova, već se značajno reduciraju beneficije koje su u prethodnoj fazi razvoja proisticale iz vojno-političke kontrole teritorija drugih država. Zahvaljujući strukturalnim promjenama, na kojima ja baziran proces globalizacije proizvodnje, svaka vojno-politička kontrola stranih teritorija vodi direktnom smanjenju atraktivnosti za strane direktne investicije u zoni konflikta, što vojno-političku okupaciju čini ekonomski destimulativnom za državu. Istovremeno svaka vojno-politička kontrola stranog teritorija nužno zahtjeva, kako političku, tako i ekonomsku centralizaciju, što nužno vodi ka reduciranju inventivno-proizvodne profilakse u politički kontroliranim regijama što drastično Centar za društvena istraživanja | Godina 1 | Broj1 135 �Nedžad Bašić smanjuje ekonomsko-tehnološke beneficije vojne okupacije. 57 Iste negativne vibracije mogu se detektirati i u regijama sa visokim stupnjem kulturnih, vjerskih ili rasnih tenzija, ili uspostavljenog modela kulturne, rasne ili vjerske dominacije i hegemonizma. Kako nova znanja, nove tehnologije, inovacije i informacije, kao mobilni faktori globalne proizvodnje, teško da mogu biti stavljeni pod kontrolu države putem povećanja vojne sile, to državu sve više čini nemoćnom da ih kontrolira na ovaj način. Istovremeno, mogućnost stranog kapitala da proizvodi na lokalnom tržištu za potrebe lokalnog stanovništva umanjuje značaj niza političkih mjera koje država poduzima u cilju zaštite domaćeg tržišta. 58 Proizvodnja dobara na lokalnom tržištu za lokalnog potrošača, čini strane MNCs sve senzibilnijim prema kupovnoj sposobnosti odnosno prema životnom standardu lokalnog stanovništva, sa čime se uspostavlja potpuno novi link izmedju globalne proizvodnje i razvoja lokalne zajednice, odnosno lokalne zajednice i stranog kapitala. Zahvaljujući ovoj promjeni u odnosima između faktora proizvodnje i države, uspostavljen je novi oblik odnosa između država kao i države i društva. U tim odnosima vojna sila gubi tradicionalni značaj za dalji ekonomski razvoj nacionalne države i međunarodne zajednice. Strukturalne promjene koje su se desile u relacijama između faktora proizvodnje vode prerastanju znanja u određujući faktor proizvodnje, koji sve više prerasta u kompleksnu filozofiju novog razvoja, 59 koja sve dramatičnije zahtjeva i novu filozofiju medjunarodnih odnosa i novi model globalnog sigurnosnog kompleksa. U novoj filozofiji globalne sigurnosti od odredjujućeg je značaja pomjeranje fokusa od koncepta prijetnje i ugroženosti ka konceptu mogućnosti preživljavanja i stvaranja osjećanja globalne sigurnosti, kao kohezivnim faktorima postmodernističke globalne zajednice. 60 Zastupnici ove filozofije globalnog sigurnosnog Ibid, p. 161 See more in Stephen G. Brooks, Producing Security (2007), Princeton University Press, Princeton and Oxford, p. 16-46. 59 P.F. Drucker, p. 166 60 "In the uncertain world of subsistence societies, the need for absolute standards and a sense that an infallible higher power will ensure that things ultimately turn out well filled a major psychological need. One of the key functions of religion was to provide a sense of certainty in insecure environment. Physical as well as economic insecurity intensify this need.."(R. 57 58 136 Društveni ogledi - Časopis za pravnu teoriju i praksu �Od globalnih strukturalnih promjena ka novom konceptu suvereniteta kompleksa (B. Buzan, O. Waever, M. Kelstrup, P. Lemaitre, C. Bretherton, G. Ponton), prvenstveno polaze od koncepta tzv. društvene sigurnosti (societal security), definirane u etno-nacionalnom terminu, u okviru koje se apostrof stavlja na regionalnu integraciju u okviru koje se efektnije doseže etno-nacionalni identitet i osjećanje mogućnosti preživljavanja etno-nacionalnih zajednica, što vodi daljoj intenzifikaciji globalne integracije i medjuzavisnosti, sa čime se umnogome jačaju refleksi novog oblika razmišljanja o nužnosti suradnje i kooperacije izmedju država, što amortizira uzroke brojnih nacionalnih, etničkih i vjerskih konflikata u eri globalizacije. Ovaj novi oblik razmišljanja u postmodernističkom pristupu medjunarodnim odnosima odbacuje postojanje samo jedne interpretacije realnosti u svijetu o tome kako je medjunarodna zajednica organizirana i šta država mora uraditi da bi preživjela, kao što to čine realisti i institucionalisti. Za njih kompleksnost ponašanja čovjeka, dakle i zajednice, odredjena je prije svega različitim kulturnim, vjerskim i historijskim determinantama, te otuda za njih je mnogo značajnije razumijevanje alternativnih interpretacija globalne i nacionalne sigurnosti, što vodi eliminaciji unilateralnog odredjenja mira i sigurnosti. 61 Pomjeranje fokusa sigurnosnog pitanja od prijetnje i ugroženosti ka kompleksu suradnje i kooperacije u cilju dosezanja mogućnosti preživljavanja, traži novi tzv. komunitarni diskurs sigurnosti, u okviru kojeg osjećanje sigurnosti preživljavanja odredjujuće utiče na ponašanje čovjeka, što zajednicu vodi u koncept nove realnosti, u kojoj se kooperacija iskazuje kao odredjujuća determinanta demokratizacije i mogućnosti preživljavanja zajednice, i time dosezanja sopstvenog kulturnog, nacionalnog i etničkog identiteta. Slijedeći nit ovakvog razmišljanja sve se više vrši otklon od državno-centričng sistema medjunarodnih odnosa ka komunalnom i globalnom društvu u kojem se sve izraženije kreira globalna ekonomija, globalne pravne norme i globalne komunikacije, što vodi stvaranju elemenata globalne kulture i globalnog identiteta. što vodi ka dramatičnoj krizi klasičnog teritorijalno-političkog koncepta suvereniteta države. Inglehart, “Globalization and Postmodern Values”, The Washington Quarterly, Winter 2000, pp. 223-224). 61 “If the world is thought of in terms of anarchy then ‘power politics’ will be seen as the solution to the problem of insecurity. On the other hand, if anarchy and power politics are not seen as being an endemic feature of global history then other more peaceful approaches to security might be tried.” (J. Baylis and S. Smith, 2005, “The Globalization of World Politics”, Oxford University Press, p. 315). Centar za društvena istraživanja | Godina 1 | Broj1 137 �Nedžad Bašić Kriza klasičnog geo-političkog suvereniteta države praćena je sa novim globalnim prijetnjama čije se rješenje više ne može tražiti u koordinatama tradicionalnog djelovanja teritorijalno ograničene moći države. Ekološke katastrofe, globalno siromaštvo, velike epidemije, globalni terorizam kao i globalno povezani organizirani kriminal, nužno traže globalni sistem djelovanja, u kojem država dobija novu ulogu u kreiranju novog globalnog društva, dakle i novu ulogu u kreiranju osjećanja mogućnosti preživljavanja čovjeka i zajednice, što i čini temelj novog funkcionalnog koncepta globalnog suvereniteta. 62 LITERATURA Knjige: A. M. Sloughter “A New World Order”, Princeton University Press, Princeton and Oxford, 2004. A. Roberts, Humanitarian War: Military Intervention and Human Rights, 69 INT’L AFF. 434, 1993. D. Held, “Globallization, Cosmopolitanism and Democracy”, IDEES of the Centre d'Estudies de Temes Contemporanis, Generalitat de Catalunya, 2001. D. S. G. Goodman and G. Segal, eds, “China deconstructs: polities, trade and regionalism“ London: Rutledge, 1994. E. A. Kolodžijev, Renaissance in Security Studies, International Studies Quarterly, 1992. F. Fukuyama, “State Building – Governance and World Order in the 21st Century”, Cornell University Press, Ithaca. New York. 2004. “What globalization can bring to bear on the topic of security is an awareness of widespread systemic development without any resulting need to downplay of the role of the state, or assume its obsolescence. The question that has to be addressed by the student of contemporary security is not whether security should be reconceptualized around individuals or societies as alternatives to the state, but how the practice of states is being reconfigured to take account of new concerns with human rights and social identity.” (I. Clark, “Globalization and International Relations Theory”, Oxford University Press, 1999, p. 125). 62 138 Društveni ogledi - Časopis za pravnu teoriju i praksu �Od globalnih strukturalnih promjena ka novom konceptu suvereniteta I. Clark, “Globalization and International Relations Theory”, Oxford University Press, 1999. J. Baylis and S. Smith, “The Globalization of World Politics”, Oxford University Press, 2005. P.G. Cerny, The Changing Architecture of Politics: Structure, Agency and the Future of the State, London: Sage, 1989. S. G. Brooks, Producing Security: Multinational Corporations, Globalization, and the Changing Calculus of Conflict, Princeton University Press, Princeton and Oxford, 2005. Z. Khalilzad and I. O. Lesser (eds), “Sources of Conflict in the 21st Century, Project AIR Force”, Rand, 1998. Članci: A. M. Slaughter, “The Real New Order”, Foreign Affairs, November/December, 1997. B. B. Ghali, An Agenda for Peace, United Nations, New York, 1992. J. A. Scholte, “International Affairs” (Royal Institute of International Affairs” 1944) Vol. 73, No. 3, Globalization and International Relations (Jul., 1997), p. 427-452. J. Mazur, “Labor’s New Internationalism”, Foreign Affairs, January-February 2000, vol. 79, no.1, p. 82. J. T. Mathews, “Power Shift”, Foreign Affairs, January-February 1997, p. 51. J. Sachs, “International Economics, “Unlocking the Mysteries of Globalization” Foreign Policy, 110/1998, p. 218. J. Sachs,2005, “The End of Poverty”, Penguin Books, p. 30-31. Centar za društvena istraživanja | Godina 1 | Broj1 139 �Nedžad Bašić M. Wolf, “Will the Nation-State Survive Globalisation?”, Foreign Affairs, JanuaryFebruary 2001, p. 182. P. Hirst, “The Global Economy- Myths and Realities”, International Affairs, 3/1997, p.411. P. G. Cerny, "Globalization and the Changing Logic of Collective Action," International Organization, Vol. 49, no. 4, Autumn 1995. P. F. Drucker, “The Global Economy and the Nation-State”, Foreign Affairs, September-October 1997, vol. 76. no. 5, p. 168-169. R. O. Keohane and Joseph S. Nye Jr., “Globalization: What’s New? What’s Not (And So What)”, Foreign Affairs, Spring 2000, p. 108. R. L. Heilbroner in M.l T. Klaire, “The New Challenges to Global Security”, Current History, April 1993, p. 156. R. Kaplinski, “Micro-Electronic and the Third World”, Radical Science Journal, 55/1981. R. Inglehart, “Globalization and Postmodern Values”, The Washington Quarterly, Winter 2000, pp. 223-224. R. Rosecrance, “Economic and National Security: The Evolutionary Process”, p. 209210, in Security Studies for the 21st Century, 1997. S. G. Brooks and W. C. Wohlforth, “Power, Globalization, and the End of the Cold War”, International Security, vol. 25, 3/2000, p. 35-36. S. Strange, “The Defective State”, “What Future for the State”, Deadalus, Vol. 124, .2/1995, p. 59-60. T. J. Sinclair, Passing Judgment: “Credit Rating Processes as Regulatory Mechanisms of Governance in the Emerging World Order”, Review of International Political Economy, Spring 1994, p. 133-159. Ruso, Žan Žak, Društveni ugovor, Školska knjiga, Zagreb, 1978. 140 Društveni ogledi - Časopis za pravnu teoriju i praksu �Od globalnih strukturalnih promjena ka novom konceptu suvereniteta Soboul, Albert, Francuska revolucija, Naprijed, Zagreb 1989. Sokol, Smiljko, Politička i ustavna povijest jakobinskog razdoblja Francuske revolucije, Globus, Zagreb 1989. Centar za društvena istraživanja | Godina 1 | Broj1 141 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 2367 Title A name given to the resource From Global Structural Changes to a New Concept of Sovereignty Od globalnih strukturalnih promjena ka novom konceptu suvereniteta Author Author BAŠIĆ, Nedžad Abstract A summary of the resource. Global movement of goods, services and capital, that causes the new forms of content and organization of production, that is increasingly growing into a new form of “global production for the global market”, is not able to fully define the essence of phenomenon of globalization itself. What makes the process of globalization is particularly rapid growth of communications, rapid growth of global participants and rapid growth of network system of global institutions. In the process of globalization, with a new form of communication between the growing number of participants in global relations, the structural changes taking place in which the state is losing its global position of the necessary factors of global production process. The growth of a large number of international governmental organizations (IGOs), international non-governmental organizations (INGOs), regional organizations (EU, Asia Pacific, NAFTA), the dramatic growth of MNCs, and the steady growth of mutual multidimensional and multiplication communication between these organizations, creates a process to a "reconfiguration of political power." Political power has been increasingly disseminated, on the one side, between national and sub-national level, while on the other hand, the diffusion of political power is evident among national government and supranational institutions and organizations. In this divergent process of "reconfiguration of political power", the transformation of state’s power has been turned up to a new complex forms of global governance in a complex political process in which the concept of national geo-political sovereignty has been increasingly transformed into the concept of "global-institutional-sovereignty." Sažetak: Ekonomska globalizacija, koja po najraširenijem odredjenju obuhvata globalno kretanje roba, usluga i kapitala, što uvjetuje nove oblike i sadržine organizacije proizvodnje koja sve više izrasta u novi oblik globalne proizvodnje za globalno tržište, nije u mogućnosti u potpunosti odrediti suštinu fenomena post-moderne globalizacije. Ono što danas čini proces globalizacije ekonomskim, političkim i kulturnim fenomenom jeste prije svega rapidan rast komunikacija, rapidan rast mreže network sistema globalnih institucija i rapidan rast participanata u globalnim komunkacijama. U procesu globalizacije odvijaju se strukturalne promjene u kojima država sve više gubi poziciju nužnog faktora globalnog proizvodnog procesa, što izrasta u odredjujuću odrednicu fenomena globalizacije krajem 20 stoljeća. Rast velikog broja medjunarodnih vladinih organizacija (IGOs), medjunarodnih nevladinih organizacija (INGOs), regionalnih organizacija (EU, Pacific Asia, NAFTA), dramatičan rast MNCs i transnacionalnih komercijalnih banaka, te stalni rast medjusobnog multidimenzionalnog i multipliciranog komuniciranja izmedju ovih organizacija, korporacija i vlada država, vodi ka „rekonfiguraciji političke moći“. Politička moć se sve vise difuzira, s jedne strane, izmedju nacionalnog i subnacionalnog nivoa, dok s druge strane, difuzija političke moći sve je evidentnija izmedju nacionalne vlade i supranacionalnih institucija i organizacija. U ovom divergentnom procesu „rekonfiguracije političke moći“, dolazi i do sve izraženije transformacije moći države ka novim kompleksnim formama upravljanja u globalnim kompleksnim političkim procesima u kojima se koncept nacionalnog teritorijalno-političkog suvereniteta sve više transformira u koncept „globalnog institucionalnog suvereniteta“. Publisher An entity responsible for making the resource available Social Sciences Research Center of International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2014-04 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2303-5706 H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/f58627141e34b5f66912947ec2587da0.pdf f4a88fda20ee444accdce8054b3d0604 PDF Text Text FROM READING TO TEACHING, DULCE ET DECORUM EST IN EFL CLASSROOMS Fahreta Fijuljanin & Samina Dazdarevic University of Novi Pazar, Serbia Article History: Submitted: 15.06.2015 Accepted: 26.06.2015 Abstract This paper aims to represent the usage of literature in foreign language classrooms in order to deploy the students’ knowledge of English literature as an important part of learning English language. Introducing literature in the language classrooms as well as the benefits of reading it make the introduction lines of this paper. The core of the analysis is presented through the poem of Wilfred Owen, Dulce et Decorum est. This postwar poem with its rich vocabulary is a great tool for a didactic initiation and proposition of EFL literature classroom instruction. Key words: Literature, EFL classroom, Dulce et Decorum est, Wilfred Owen, language teaching. 1. Introduction If you talk to a man in a language he understands, that goes to his head. If you talk to him in his own language, that goes to his heart. ‒Nelson Mandela This paper tends to make the above introducing Mandela’s lines the practical ones, not only theoretical. Due to that aim, we want to represent and pinpoint the important role of literature as a useful resource in EFL classrooms. The main stress will be on the different approaches to the Owen’s poem as well as analyzing the poem itself as a proposal for literature lecturer’s didactic instructions. Literature allows teachers to design and redesign many activities that are going to be a part of a modern and up-to-date classrooms that have to be ‘based on material capable of stimulating greater interest and involvement’ (Carter and Long 1991: 3) and �to ‘provide the stimulus for interaction to take place between the learners among them, and with the teacher’ (Duff and Maley 1990: 3). The whole work is written to encourage and induce a communicative approach in the EFL classrooms as the main goal of communicative approach is the teaching of communicative competence. Communicative competence should involve using language for different purposes and functions, using language according to the setting and participants and to understand different types of texts. Indeed, literary terms and expressions are developed structure of one’s national language with fixed or non-fixed norms in writing. Simply, it is a manifestation of one’s culture. According to that, introducing that ‘manifestation of culture’ in EFL classrooms should be the first and the last aim of any language activity. Dulce et Decorum est, a postwar poem which belongs to the modernist tradition, is a prolific and productive material for being a language teaching resource. The ideas and philosophy can easily be related to the modern world wars caused by procultural and religion marginalization. The poem is a pedagogical potential regarding its structure, content, context and form. The paper consists of three sections. The first is the theoretical one and describes the links between literature and literary content and language learning as well as teaching foreign language. The second part offers a brief picture of the poem and its author explaining the reasons why Dulce et Decorum est is an appropriate for communicative approach. And the final, the most important part, deals with the concrete suggestions and proposals for classroom activities to be carried out. Within this final part, we have also made some critical views on the poem. 2. A Word or Two about Literature and Teaching Language Language teaching is a life-long process whose methods and techniques varied from period to period, from culture to culture, even from individual to individual. Even nowadays, the innovative solutions and perfect methods are being searched for in order to regain a productive student who is willing to involve in global and contemporary philological and cultural thought. Communicative language learning is one of the approaches that gives credit to the use of authentic language, language that is used in a real life context. 2.1 Why teach literature? �As Olga Bottino (1999:211) mentions, the literature today is often seen within the framework of three main models: 1. The cultural model 2. The language model 3. The personal growth model Through the first model which is seen as a transmitting important ideas, feelings, thoughts, views and opinions student is able to learn about ‘the Other’, about something beyond already known, other culture, tradition and customs. This is the very first stage of introducing language into the classroom generally. The second stage, often criticized as a mechanic process, is seen as a tool for teaching grammar and vocabulary structures through the literary texts where every sense of pleasure and beauty can be lost. The third model is student-centered and its aim is to motivate them to read, to personally connect themselves with the certain theme. These models make teaching literature one of the most evaluated and of high importance in learning English as a foreign language. According to Collie and Slater (1990:3), following four reasons why literature is important in EFL classrooms are valuable authentic material, cultural enrichment, language enrichment and personal involvement. On the other hand, Maley (1989:12) lists some of the additional reasons of literature as a potential resource in the language classroom as universality, non-triviality, personal relevance, variety, interest, economy and suggestive power, ambiguity. The greatest task for language teachers is to comprise all of these factors and elements within his personal language teaching. Modern society challenges teachers to design stimulating activities that have to motivate the learners and literature stands for an excellent source for learning language. 2.2 Why poetry? Considering the personal growth of learner, it is of a high importance to begin with reading model of approaching and introducing literature in EFL classrooms. Teachers are able to practice language skills, reading and speaking which is prominent connection between language and literature. Using metaphors, poet is paving its path to the reader and unconsciously is making learning process. After reading, students gain the appreciation of the writer’s composition �structure and develop certain sensitivity for new vocabulary and discover his own capability of analytical thinking. The numerous benefits of using poetry in EFL classrooms have been highlighted by many EFL practitioners and scholars as the following: 1. Saraç (2003:17-20) explains the educational benefits of poetry as to provide readers with a different viewpoint towards language use by going beyond the known usages and rules of grammar, syntax and vocabulary, to trigger unmotivated readers owing to being so open to explorations and different interpretations, to evoke feelings and thoughts in heart and in mind, to make students familiar with figures of speech (i.e. simile, metaphor, irony, personification, imagery, etc.) due to their being a part of daily language use. 2. It can be used as an introducing and practicing language by exposing student to "authentic models-real language in context" (Brumfit & Carter, 1987). According to Tomlinson (1989:42) using poetry in the language process contributes more to the development of all language skills in real contexts than "a total concentration on the presentation and the practice of language items". 3. According to Collie and Slater (1987:72) "using poetry in the language classroom can lead naturally on to freer and creative written expression". 4. Poetry based activities are motivating as they generate strong emotional reactions. As Hess (2003:20) notes, "Entering a literary text, under the guidance of appropriate teaching, brings about the kind of participation almost no other text can produce. When we read, understand, and interpret a poem we learn language through the expansion of our experience with a larger human reality". Moreover, poetry employs powerful language to evoke and exalt special qualities and conditions of life, and suffices readers with feelings. Poetry is one of the most effective and powerful transmitters and representatives of culture. Poems comprise the most various cultural elements - allusions, metaphors, vocabulary, idioms, tone, dialect and accents that are not easy to translate into the mother tongue of a learner. 2.3 A poem to choose Following the curricula of the course on Anglo-American, modern, postmodern and postwar literature, Dulce et Decorum est seemed to stand as unique as its author was. It offers a �picturesque description of a real life conditions then as well as a pedagogical and cultural opportunities to explore its magnificent language and reveal it underlying philosophy. 2.4 Content, form and historical background With its historical background, the content of the poem represents the rich and picturesque sequences of events that make the classroom an audio and visual workshop for students. The poem is one of the most powerful literary works and it is a reflection of Owen’s ironical realism of his own thoughts and personal experiences related to the World War I. It culturally and literally marked one era of silence and issued the problem of patriotism as a life bitterness at the time. It begins with an ironic title taken from the Horace meaning ‘it is sweet and honorable’ which is followed by pro patria mori which means ‘to die for one’s country.’ Owen uses the irony as he believes this is the opposite of the truth, detailing the real but gruesome reality of the war. The most poetic technique used is imagery and visual imagery, to be more specific. Its reading demands a high involvement from the reader and allows students many different conclusions and further discussions. Owen brilliantly uses extensive imagery in this poem which is very productive for students’ imagination. He uses an effective language to convey painful but sincere message of war destructiveness using almost all of the figures of speech. Onomatopoeia and personification as well as metaphor, word connotation, alliteration, hyperbole, exclamations, epithets, simile are highly employed in describing the moments in the poem. Table of proposed tasks and expected responses I Introducing activities Teacher’s task Material tool used or Student’s response or activity �These three famous quotes are shown on the projector: - Mankind must put an end to war This introducing activity can be very before war puts an end to mankind. productive in a way that modern John F. Kennedy - only who is left. Bertrand Russell - society has its own wars. Students are War does not determine who is right - expected to comment on one of the Video mentioned projector favorite. Only the dead have seen the end of the war. quotes, choosing their Discussion about modern life can lead to an excellent introduction into the George Santayana main topic of Owen’s poem Dulce et Students are asked to comment on these Decorum. quotes, to resonate and connect them with contemporary life and happenings, especially in the war zone today. This question may give rise to a myriad Now students are asked to think of a situation where they felt sad, tearful, Images grievous or even distressed. of responses, for example when left by the beloved person, When someone in the family died, or when failing in an exam. On the next step, teacher should offer the first hint related to the poem they should Students are expected to think about examine. the title and give some of the possible Students are asked to deduce from the answers as war, destruction, soldiers, title Dulce et Decorum est Pro Patria glorification of war, bravery, strength, Mori, what does it mean and to give getaway, refugees. possible themes of the poem. Before the students are given the whole Poem Students are now fully dedicated to the text of the poem, the teacher is playing Video audio and visual happening in their �video with the effective reading of the classroom. Literature is not only about poem. In this case, teacher has chosen the reading but also about hearing the Christopher art of poetry. Since this is their first Eccleston video (https://www.youtube.com/watch?v=qB4 time to meet Owen and his poetry, it is cdRgIcB8 ) very important to hear the poem from After the first listening, student are now the native speaker. given the poem in printed version. Teacher reads through the poem slowly and asks student to highlight the unknown words. It is very important to introduce the poem gradually to the students. This is supported by the step when teacher adds some history facts to the material. As the students became familiar with Students shouldn’t be bored because the now they are ‘meeting’ someone new material, teacher should allow them to and are still in the listening phase. The become familiar with the writer. Teacher teacher hadn’t still given them the should take care only to mention relevant assignment. The key moment related to facts about the writer, usually one that are interesting and easy to remember thus Images differing Owen from other authors. Teacher should mention, for example, that Owen was inspired by Keats, Byron, Shelly and other romanticist. Also, he was teaching in France when the war began and his first experience of the war was in hospital treating the wounded soldiers. He was close friend with Siegfried Sassoon. Projector this activity, and any other activities where the authors are mentioned, is the moment when they hear something familiar, in this case the names of famous romanticists Keats, Byron, Shelly and others. They immediately associate familiar authors with the one who is unknown. �Introducing activities are very important in further reading exercises and represent a teacher’s hook for student’s attention. It is a starting point in whether student will be interested in learning new things or not. It is of a high importance for learners to have the opportunity to predict what will next happen and have some idea what they are going to learn and read about. According to Maingay (1983) this is a very important strategy, not only in language, but also in communication. Also, usage of contextual learning can be useful in a way that students would be able to construct meaning and opinion based on their own experience. In that way, when they are asked to think of a sad situation, the teacher brings their personal situation closer to the general and social situation they are going to learn about. One of the main goal of these introducing activities is to develop and replicate a real world experiences within the personal world of a student. It can help and bring relevance and meaning to the reading, helping students to relate to their inner world, world they live in. Teacher should also take care of his vocational priorities in the classroom and pedagogical benefits of each activity involved. The aim of contemporary teachers is to be an interesting, never boring guide in class not an angry and serious supervisor. His basic role is to create a pleasant atmosphere where student will feel free to express his opinions, thoughts and be able to comment and communicate on various topics. II Analyzing activities Teacher’s task Material tool used or Student’s response or activity �Having looked at the pictures before The teacher shows some him, student creates his own inner pictures, impressions and feelings which will be concentrating on the suffering of the transmuted into critiques and opinions. soldiers, during WWI, battlefield pictures where soldiers are Student is expected to react according extremely tired, exhausted, returning from the battle. Pictures Owen describes the harrowing events and to the emotional state of his intellect, to explain why or why not is sweet and right to die for its own land and about asks the following questions: patriotism Is this sweet and right to die for? Why? and its meaning and definition. Student becomes able to Is this a patriotic poem? Why? Why not? define some expression relying on his previous interpretation. Having written down all the adjectives Students are asked to work in a group and identify all the adjectives in the poem and define the feelings that those adjectives from the poem, now they are asked to Images provoke in them. explain the provoked feelings while researching for adjectives. In this way they identify themselves with the author and his emotions. Even though the poem functions as the whole unit, the teacher separates poem into three parts in order to ease its interpretation for students. The first part is from 1-8 verses. Students Images, are asked to work in pairs and find the computer simile, alliteration, onomatopoeia, access rhyming couplets, repetitions, metaphors. Students are obliged to explain all these figures of speech and their cause of usage. Students have got the first concrete task which is to identify and analyze the poem critically. Some of the expected answers would be that simile is used to give a negative image of frail, decrepit and confined soldiers in ‘like old beggars under sacks’. Alliteration and also onomatopoeia is used in ‘knockkneed’. Students should also mention alternate rhyming couplets that run throughout the poem, e.g.’sacks’- ‘backs’/ ‘sludge’- ‘trudge’, and explain �why. In the second part, 8-14 students also get These verses differ from others by their an assignment to identify all above punctuation. Students are expected to mentioned figures of speech used in this notice where the capitalized letters are part of the poem. It is important to used and why, as well as using dash as mention that students are researchers here and they do all the work related to the analyzing the poem with no help of the teacher. Thus, the students become Images, computer access caesural pause and give reasons for its usage. Important figure of speech that overwhelms these verses is metaphor in ‘misty panes’, ‘green sea’, ‘drowning’. capable to critically analyze any kind of Owen uses ‘guttering’ as horrible literature. Access to computers should be sound allowed. coughing helplessly. which mimics the soldier Students anticipate that Owen’s usage In the final part of the poem, 14-28 verses, the teacher is still a guide who monitor his students’ work and researching the poem. One of the question Images for student would be about the simile and its use, about the effect of sibilance, about ‘a friend’ who is addressed as ‘my friend’. of simile is to compare ‘cud’ with the cancer and it is called an animalistic imagery. The interesting part of students’ research is discovering the mysterious ‘my friend’ whom Owen is addressing to. One of the answers was the one who explains that ‘my friend’ is every poet, writer, journalist who writes motivational poems like Jessie Pope. Finally, when the poem is literally and critically analyzed, students are asked to This questions gas given a myriad of mold and define the themes of the poem answers considering their interpretation of Owen’s patriotism, horrors of war, irony of life. viewing of war. like warfare, suffering, �With these analyzing activities, we fragmented the poem in order to develop lexical capability and competence of the students. Their research for vocabulary and literal explanations will make the learner to interact in the classroom being a part of the group. The aim of the assignments they got is to direct students towards a further and deeper understanding of the poetry. III Writing activities Material or Teacher’s task tool used This pre-final activity is related The final part, but not least important though, to their cognitive function. would enclose the interpretation of Owen’s poem. Students do not use their Now students are politely asked to close their eyes while the teacher is playing an audio-effective youtube Student’s response or activity Video video (https://www.youtube.com/watch?v=gd3bhg3O_qE ). eyesight anymore and every new impression and cognition is based on the sense of hearing which, by medical researches, is now multiplied. After the first listening, students are asked to imagine themselves in the battlefield. They are fearful and hopeless. The sadness and destruction is all around them. They are asked to write a poem of Audio their own impression influenced by Owen’s poem. While the students are writing poems, the music of war is heard in the background. Finishing the final step in analyzing the poem, students’ creativity and talent should be expressed and shown which was the initial aim of this course. Listening activities involved in this part of writing can be very useful and represents an immensely memorable interpretation of poetry using the most powerful tool of intellect – imagination. Variety of activities in the classroom will surely guarantee a success. That success is students’ involvement, resonating, understanding and adopting new knowledge. �These activities are intended to be an outline and suggestion for using Dulce et Decorum as a resource of culture in English as a Foreign Language classroom. The basic approaches used in activities are communicative and contextual approach which develop social competence showing how to communicate and behave in foreign culture in foreign language. The teacher is the only one responsible for creating the learner’s autonomy and developing the way of learning and adopting knowledge. 3. Conclusion This paper is one solution of the many suggestions how to implement the poem Dulce et Decorum by Wilfred Owen in EFL classroom. It is our view of a cultural model application in learning foreign language which is designed to transmit important ideas, feelings, thoughts, views and opinions about ‘the Other’, about something beyond already known, other culture, tradition and customs. Thus, literature represents the increasingly popular method in mastering foreign language. Our selection of Dulce et Decorum by Owen is both thematically and formally justified since it is a brave and inspirational poem that is a representation of a cruel, but real war scenes that exist even today. These proposed introducing, analyzing and writing tasks proposed are a proof that the teacher can develop, not only literary, but also lexical, social and communicative competence through poetry. Dulce et Decorum is surely a useful tool for implementation of those competences in EFL classrooms. References Bottino, O. 1999. Literature and Language Learning. Faculdade de Letras da Universidade de Lisboa. Brumfit, C.J.and A.C. Ronald, eds. 1986. Literature and Language Teaching. Oxford: Oxford University Press. Carter, R. and M. Long, eds. 1991. Teaching Literature. London: Longman. Collie, J. and S. Slater. 1990. Literature in the Language Classroom: A Resource Book of Ideas and Activities. Cambridge: CUP. �Duff, A. and A. Maley.1990. Literature. Oxford: Oxford University Press. Hess, N. 2003. Real Language through Poetry: A formula for Meaning Making. ELT Journal. Maingay, S. 1983. Making Sense of Reading. Hong Kong: Nelson Harrap. Maley, A. 1989. ‘Down from the Pedestal: Literature as Resource’ in Literature and the Learner: Methodological Approaches. Cambridge: Modern English Publications. Sarac, S. 2003. ‘A Suggested Syllabus for the Teaching of Poetry Course in ELT Departments of Turkey’ Unpublished M.A. Thesis. Ankara. Hacettepe University. � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 2900 Title A name given to the resource FROM READING TO TEACHING, DULCE ET DECORUM EST IN EFL CLASSROOMS Author Author Fijuljanin, Fahreta Dazdarevic, Samina Abstract A summary of the resource. This paper aims to represent the usage of literature in foreign language classrooms in order to deploy the students’ knowledge of English literature as an important part of learning English language. Introducing literature in the language classrooms as well as the benefits of reading it make the introduction lines of this paper. The core of the analysis is presented through the poem of Wilfred Owen, Dulce et Decorum est. This postwar poem with its rich vocabulary is a great tool for a didactic initiation and proposition of EFL literature classroom instruction. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2015-07 Keywords Keywords. Article PeerReviewed P Philology. 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To this end, in the theoretical part of the paper, it is explained that pro-poor growth depends on the strong private sector, while at the same time private sector development is dependent on the degree of financial sector development. The empirical part of the paper discusses the role of the state in financial sector development and its contribution to economic growth and poverty reduction in Bosnia and Herzegovina (BH), arguing that this growth needs to be pro-poor oriented as BH is the poorest country in Europe. In order to assess the state’s role in financial sector development and its implication to pro-poor growth in BH, surveys among small and medium enterprises (SMEs) and government representatives were conducted. The research shows significant disagreement between the two surveyed groups about the efforts currently being implemented by BH government in supporting the private sector through financial sector development. It is concluded that government needs to work more closely with the private sector as well as with the financial sector so as to better identify the private sector needs and then create policies and take actions necessary for the private sector to develop, which would consequently lead to poverty reduction. Volume 6 | Number 2 | Fall 2016 Keywords: state, financial sector, pro-poor growth, Bosnia and Herzegovina (BH) JEL Classification: O40, G00, I32 Article History Submitted: 9 April, 2016 Resubmitted: 20 September 2016 Accepted: 14 October 2016 http://dx.doi.org/10.14706/JECO SS16621 5 �Amra Babajić, Meldina Kokorović Jukan Introduction The year 2015 was set as the target year by the United Nations (UN) to implement the Millennium Development Goals (MDGs), with halving absolute poverty set as the first most important goal. Unfortunately, evidence shows that in many developing countries, mostly in Sub-Saharan Africa and Oceania, this goal would not to be met (UN, 2015). In order to reduce poverty, governments need to take necessary actions to assure what in academic literature is referred as the pro-poor economic growth. Broadly, pro-poor economic growth can be defined as one that enables the poor to actively participate in and significantly benefit from economic activity. Promoting pro-poor growth requires a strategy that is deliberately biased in favor of the poor so that the poor benefit proportionally more than the rich (Kawani 2000:3). Pro-poor economic growth can be achieved through private sector development (e.g. promotion of entrepreneurship) as the generator of work places. Government role in private sector development is of crucial importance, since the government is responsible for policies and regulations promoting positive environment for private sector development. One of the aspects of promoting pro-poor growth through private sector development is by means of support and development of the national financial system (creating adequate financial market structure and stable financial institutions, as well as assuring adequate prudential supervision). Financial system development requires government support to provide stable and favorable environment for different types of financial institutions to develop, and furthermore, to provide incentives for financial institutions to create financial products/services tailored to the needs of private enterprises and of poor people to be able to selfemploy. The main goals of this paper are twofold. The first goal is to investigate the role of the state in financial sector development with the main focus to establish the link between government efforts to achieve sustainable pro-poor growth and its efforts to develop the financial system which will be in the function of pro-poor growth. The second goal is to analyze the current state of government intervention in the financial sector oriented to poverty reduction in Bosnia and Herzegovina (BH). Also, the paper is to provide guidelines and recommendations for the improvement of 6 Journal of Economic and Social Studies �Role of the State in Financial Sector Development and Achieving Pro-Poor Growth: Evidence from Bosnia and Herzegovina government policies regulating financial sector and for greater involvement of the state in providing financial support to private sector development. BH is a rather dysfunctional country with a relatively high poverty rate. According to UNICEF’s poverty measure AROPE (At-Risk-of-Poverty and Social Exclusion), BH has the greatest risk of poverty and social exclusion among European countries. AROPA for BH is 58.6% (of population), and it fairly deviates from the EU-27 AROPE that totals to 24.2% as well as from the new member countries whose AROPE totals to 30.6%. This evidence shows that BH needs the shift in current economic policies. The first part of the paper provides the theoretical background on the financial sector impact on poverty reduction. It focuses on establishing the link between state’s role in financial sector development and state’s role in contributing to poverty reduction by creating policies (among other policies) that ensure the development of the financial sector. In the second part of the paper a review on the existing literature and previous research on the subject is presented. In the third part of the paper empirical research results on the state’s role in financial sector development in BH are presented. Using discriminant analysis, it was found that a huge gap exists between government perceptions of their influence on financial sector development and perceptions of private sector participants on the government role in financial sector development. Theoretical Background on State’s Role in Poverty Reduction through Financial Sector Development Economic growth, which is in the function of poverty reduction, requires macroeconomic stability, efficient investment in human and physical capital including infrastructure, regulation of enterprises and well-functioning financial sector (financial institutions as well as financial markets). Private sector, dominated by small and medium enterprises, is perceived as the most important key for assuring economic growth and job creation. In that respect, government efforts should be directed to enforce policies and create positive environment for promoting private sector development which, in the end, will deliver pro-poor economic growth. Moreover, an important precondition for strong private sector development and its ability to deliver pro-poor growth is the existence of a sound financial system. According to the UK government’s Department for International Development, the Volume 6 | Number 2 | Fall 2016 7 �Amra Babajić, Meldina Kokorović Jukan financial system contributes to factors needed for private sector to deliver pro-poor growth by the following activities (DFID, 2004:4-5): - Mobilizing savings for productive investment, and by facilitating capital inflows and remittances from abroad. The financial sector has a crucial role to play in stimulating investment in both physical and human capital, and hence increasing productivity; - Reducing transactions costs, facilitating inward investment, and making capital available for investment in better technologies. The financial sector can promote technological progress, thus increasing productivity, and improving resource use; - Enabling the poor to draw down accumulated savings and / or borrow to invest in income-enhancing assets (including human assets e.g. through health and education) and start micro-enterprises, wider access to financial services generates employment, increases incomes and reduces poverty; - Enabling the poor to save in a secure place, the provision of bank accounts (or other savings facilities) and insurance allows the poor to establish a buffer against shocks, thus reducing vulnerability and minimizing the need for other coping strategies such as asset sales that may damage long-term income prospects. Developed financial sector contributes to poverty reduction in two different ways: directly and indirectly (see Figure 1). 8 Journal of Economic and Social Studies �Role of the State in Financial Sector Development and Achieving Pro-Poor Growth: Evidence from Bosnia and Herzegovina Figure 1: Financial Sector Development and Poverty Reduction Source: Zhuang J. et al., 2009:10 Directly, financial sector contributes to poverty reduction through improving the access to financial service for poor and underprivileged people. Government may enforce policies which promote and create opportunities for self-employment and SMEs development. Furthermore, government can invest in better education and human capital development. Through better allocation of fiscal revenues for social spending, government can contribute to consumption smoothening among different population groups. Indirectly, the financial sector contributes to poverty reduction through boosting economic growth. In most developing countries, the major challenge of financial systems development is to provide access to formal financial sources (products and services) to the poor. Poor people are usually deprived of accessing commercial bank loans and financial services since poor people are observed as risky clients. For that reason, poor people mostly rely on the informal or semi-formal financial institutions which, in general, offer much more expensive financial products/services. Empirical evidence (Beck, Demirgüç-Kunt, and Martinez-Peria, 2007) confirms that the most important direct channel through which financial sector development impacts on poverty reduction is better access to financial services. Furthermore, it is important to emphasize that state’s role in financial system development is extremely important. Through regulation and supervision, the state Volume 6 | Number 2 | Fall 2016 9 �Amra Babajić, Meldina Kokorović Jukan creates secure and stable environment for financial institutions and markets to develop. To assure poverty reduction, governments need to implement policies which would lead to the increase in economic growth rates. But, efficiency of economic growth in poverty reduction depends on the capacity of the poor to participate in the growth (WB, 2005). Poor people can participate in achieving the economic growth only if they are given an active role in job creation. This is confirmed by the World Bank study titled ”Pro-Poor Growth in the 1990s: Lessons and Insights from 14 Countries”, where it is emphasized that policymakers who seek to reduce poverty should implement policies that enable their countries to achieve a higher rate of growth. But growth is more effective in reducing poverty in some countries than in others, depending on the capacity of poor people to participate in and benefit from growth. 1 As emphasized, development of the private sector as the new job creator is of key importance. The biggest responsibility for private sector development is on the government, because they need to create stimulative environment for development of the existing and the opening of new enterprises. There is persuasive evidence from all over the world confirming that rising levels of competition have been unambiguously associated with increased economic growth, productivity, investment and increased average living standards (OECD, 2006:41). Therefore, based on the modern regulatory regimes for development of the private sector which include competition policy regimes, economic growth model based on the pro-poor principles is desirable in BH. The existing model of economic growth in BH is not pro-poor oriented, because the Strategy for poverty reduction in BH adopted in 2004 is not fully implemented. Literature Review Literature review shows that early researches aimed to understand the relation between financial system and social welfare, while more recent studies (last decade) are more oriented to find the link between financial sector development and poverty reduction/alleviation. 1 We argue that the private sector, if properly supported by the government (especially in terms of development of entrepreneurship culture), is in the function of building the capacity of the poor people to participate in the country’s economic growth. 10 Journal of Economic and Social Studies �Role of the State in Financial Sector Development and Achieving Pro-Poor Growth: Evidence from Bosnia and Herzegovina Vast theoretical and empirical academic literature exists on the subject of financial sector impact on the social welfare. The majority of the papers in the 1990s debated mainly on the relation between financial system development and economic growth in general (Bencivenga & Smith, 1991; King & Levine, 1993; Levine, 1997) and on industrial growth in particular (Rajan & Zingales, 1998). Levine (2004) argues that countries with better functioning banking sector and financial markets grow faster. Bencivenga and Smith (1991) found positive relation between financial intermediation development and increase in real growth rates. Furthermore, they conclude that regulation policies (such as reserve requirements and interest rate caps) might have an impact on economic growth and need to be considered by developing countries. King and Levin (1993) formulated and empirically proved the model showing that better (more developed) financial systems stimulate economic growth by accelerating productivity rates. It is shown that more developed systems make more efficient selection for financing entrepreneurial activities and, therefore stimulating faster economic growth. Fields (2001) argues that through better access to finance poor people have better opportunities to participate in economic activities. Most recent empirical studies shows the existence of a significant positive effect of financial system development on poverty reduction, where countries with more developed financial systems are more likely to have lower poverty rates. (e.g. Akhter et al. 2010; Ho S. and Odhiambo, N. M , 2011; Azra. D et al. 2012; Uddin, G. S. et al. 2012). Honohan (2004) shows that correlation between financial development and sustainable economic growth needs to be drawn by more comprehensive statistics than merely banging sector depth. Furthermore, Quartey (2005) investigated the relation between savings mobilization and poverty reduction showing the existence of correlation between the two variables, but emphasizing the role of the government and its policy in stimulating domestic savings. It was also observed that institutional quality and adequate regulation of financial institutions play a crucial role in positive relationship between financial system development and poverty reduction (Dhrifi, 2013a.) Moreover, Dhrifi concludes that government must cooperate closer with the financial market and the banks acting as the regulator for formalizing models for the poorest access to formal and informal finance. Such actions of policy intervention should normally facilitate institutions providing financial services to the poor. In Volume 6 | Number 2 | Fall 2016 11 �Amra Babajić, Meldina Kokorović Jukan addition, it should foster cultures of households to invest in profitable projects. Political solutions must be tailored to the problems of the financial sector. (Dhrifi, 2013b:477). Having in mind the importance of government involvement in financial sector development aiming to achieve pro-poor economic growth, further research focuses mainly on the government role in BH in reducing poverty through financial sector development. Contribution of Financial Sector Development to Poverty Reduction in BH Overview of the Institutional Framework in BH Supporting the Private Sector and SMEs The general climate in the society should lead individuals to consider the option of starting their own business as attractive, and acknowledge that SMEs contribute substantially to employment growth and economic prosperity (EC 2008:3). In that respect, institutional infrastructure is necessary to support SMEs in proving growth and economic prosperity. When it comes to creating stimulative environment for private sector development in general, government’s role is of the utmost importance. Nevertheless, institutions forming infrastructure for private sector development are not just governments, but also non-government, private and non-profit organizations. There is no unique institutional infrastructure for private sector development and it differs from country to country. Support provided by government institutions is usually related to providing consulting and professional services, presenting good practices, etc. The majority of countries have developed different types of institutions such as government agencies, ministries, associations, chambers, and financial institutions. These institutions operate on different levels, from local, regional, state to international level. In context of creating adequate institutional infrastructure for supporting the private sector, especially for supporting SMEs, the European Union (EU) has made significant improvements. By adopting “Small Business Act” for Europe, the European Commission has laid a set of principles for implementation of policies both at the EU and Member State level in order to improve the legal and administrative environment throughout the EU for SMEs. These principles are the following (EC, 2008:4): 12 Journal of Economic and Social Studies �Role of the State in Financial Sector Development and Achieving Pro-Poor Growth: Evidence from Bosnia and Herzegovina • • • • • • • • • • Create an environment in which entrepreneurs and family businesses can thrive and entrepreneurship is rewarded, Ensure that honest entrepreneurs who have faced bankruptcy quickly get a second chance, Design rules according to the “Think Small First” principle, Make public administrations responsive to SMEs’ needs, Adapt public policy tools to SMEs’ needs: facilitate SMEs participation in public procurement and better use State Aid possibilities for SMEs, Facilitate SMEs access to finance and develop the legal and business environment supportive to timely payments in commercial transactions, Help SMEs to benefit more from the opportunities offered by the Single Market, Promote the upgrading of skills in SMEs and all forms of innovation, Enable SMEs to turn environmental challenges into opportunities, and Encourage and support SMEs to benefit from the growth of markets. By turning these principles into practice, many different institutions supporting SMEs have been established across the EU with coordinating efforts to provide better institutional framework for SMEs. By adopting EU Acquis Communautaire, BH has accepted these principles to create adequate institutional setting for SMEs development. Currently, there are several institutions that provide institutional support for SMEs in BH. This infrastructure is rather complicated due to the elaborate olitical and legal system in the country. BH operates on the state level with two entities: Federation of BH (FBH) and Republic of Srpska (RS), and Brcko District. FBH is further divided into ten cantons, each operating as a state within the state. The overview of BH government institutions and governmental financial institutions supporting SMEs is given in Table 1. On the state level, development of SMEs is coordinated by the Ministry of foreign trade and economic relations. Within this Ministry the Sector for Economic Development and Entrepreneurship is responsible for SMEs development and is in charge of the following basic activities: normative-legal, study-analytical, technicaloperational, information-documentary, and administratively-technical. These activities include different areas such as: macroeconomic analysis and economic Volume 6 | Number 2 | Fall 2016 13 �Amra Babajić, Meldina Kokorović Jukan growth forecast of BH; collaboration with international institutions and organizations; collaboration with domestic and foreign scientific and research institutions; preparation of treaties, agreements, and other acts for projects and programs of economic restoration and development; projects and programs of bilateral and multilateral donations and credits for economic restoration and development; coordination of international economic assistance to BH except the part regarding the European Union assistance; preparation of bilateral and multilateral agreements and other acts regarding economic restoration and development of BH; development of entrepreneurship, support to the development of SMEs; SMEs promotion. 2 Nevertheless, the fund for financial support for SMEs on the state level does not exist. Financial government support for SMEs is under the jurisdiction of the entities. On the level of FBH, SMEs are supported by the Ministry of Development, Entrepreneurship and Crafts and Development and the Development Bank of FBH. Furthermore, each of the ten cantons has cantonal ministry which deals with SMEs. In RS, SMEs development is supported by the three following institutions: the Ministry of Industry, Energy and Mining of RS, the Agency for SMEs and the Development Bank of RS. Table 1: The overview of BH government institutions supporting the private sector and SMEs Level of government State level Entity level Federation of BH Entity level Republic of Srpska Cantonal level Brcko District 2 Government institution Ministry of foreign trade and economic relations of BH Ministry of development, entrepreneurship and crafts Ministry of industry, energy and mining of RS Agency for SMEs Designated ministry for SMEs Government of Brcko District – Government financial institution Does not exists Development Bank of FBH Development bank of RS Development bank of RS. Development Grant Fund of Brcko District www.mveteo.gov.ba 14 Journal of Economic and Social Studies �Role of the State in Financial Sector Development and Achieving Pro-Poor Growth: Evidence from Bosnia and Herzegovina Besides the government institutions, there is a wide network of non-government institutions providing support to SMEs development in BH, such as REDAH Regional Development Agency for Herzegovina, REZ – Regional Development Agency for Central BH region, NERDA - Regional Development Agency for North-East BH, SERDA – Sarajevo Regional Development Agency, etc. This existing legal infrastructure in BH, with different laws adopted on different government levels (state, entities, and cantons) and problems in the implementation of the Strategy for SMEs development, is rather complicated and does not provide proper conditions for enterprises to operate. Laws adopted on different government levels are not harmonized. Furthermore, there is no single state register of SMEs. Other infrastructural problems are related to complicated public administration, high costs of maintaining public administration, redundancy in functions of different institutions on all government levels with unclear responsibilities, etc. The number of registered enterprises in BH is reduced year by year, and conditions for the operation of the existing enterprises are worsened. Overall, it can be concluded that the current infrastructure supporting SMEs in BH is not in favor of achieving sustainable growth in the country. The Strategy of SMEs development is not being implemented properly and Strategy for poverty reduction is nothing more than cold facts on paper, as government is doing nothing to enforce and achieve strategy objectives. These strategies are not producing pro-poor growth. Overview of the BH Financial Sector The BH financial system is bank centric, where the dominant role is played by the commercial banks. The non-bank financial sector is relatively underdeveloped with the following financial institutions operating within the sector: microcredit organizations, leasing companies, investment funds and insurance companies. As Figure 2 shows, commercial banks account for 84% of the total financial asset within the BH financial system, while the remaining financial institutions account for 5% or less of the total assets. Volume 6 | Number 2 | Fall 2016 15 �Amra Babajić, Meldina Kokorović Jukan Figure 2: Structure of financial institutions of the BH financial sector in 2013 5% 4% 4% 3% Banks Leasing companies 84% Insurance companies Investment funds Microcredit organisations Source: CBBH (2014) Stability and security of the overall banking sector is adequate, according to the data provided by the Banking Agencies of Federation of BH and of Republic of Srpska. In 2012, capital adequacy rate of the banking sector, as the most important measure of banking sector performances, was 16.4%, which is substantially above the regulatory minimum of 12%. Regardless of the financial crisis, the financial system of BH remains strong in terms of its ability to provide financial support to nonfinancial sector (companies and households). On the other hand, statistical data shows that credit activity of banks was decreased during 2012, where 51.6 % of total credits (approx. BAM 16 billion) was granted to non-financial companies (public and private), 42.6% to households and 5.2% to the government. In the same period, microcredit financial institutions in Federation BH granted only 2% of the total credits (BAM 400 million) to companies and 98% to households. According to the Annual Report for 2012 of the Central Bank of BH, there were 28 licensed banks in BH, with 18 of them operating in FBH and 10 in RS. There were 19 microcredit financial institutions (13 in FBH and 6 in RS), with 15 of them 16 Journal of Economic and Social Studies �Role of the State in Financial Sector Development and Achieving Pro-Poor Growth: Evidence from Bosnia and Herzegovina organized as microcredit foundation and 4 as microcredit organizations. 3 Leasing companies are less developed financial institutions with only 9 being licensed for providing leasing contracts (7 in FBH and 2 in RS). Furthermore, capital markets in BH are not used to their full potential. Organized capital markets exist within two securities exchanges (Sarajevo Stock Exchange and Banja Luka Stock Exchange), but the annual turnover at these exchanges is rather symbolic. The structure of the securities exchanges turnover shows the lack of foreign investors and dominance of government debt securities. Private companies do not use securities exchanges to raise capital funds through stock or bonds issuing or initial public offerings. Research Methodology and Sample For the purposes of assessing government involvement and policies impact on strengthening the financial sector oriented to poverty reduction and pro-poor growth, we conducted the research among SMEs and government bodies. The aim of the research was to better understand the perceptions of SMEs as the most important creators of work places, as well as of the perceptions of government agencies representatives about the level of government involvement in financial sector development. In order to collect the research data two types of questionnaires were created, one for SMEs and other for government representatives. The questionnaires were structured to collect data about government policies and actions impact on private sector development and poverty reduction focusing on the financial sector impact. 4 The questionnaires were created consulting the OECD document - Promoting Pro-Poor 3 One of the main differences between microcredit foundations and microcredit institutions is related to the maximum amount of granted credit. Microcredit foundations can grant a credit in the maximum amount of BAM 10,000 (approx. EUR 5000 ), while microcredit organizations can grant a credit in the maximum amount of BAM 50,000 (approx. EUR 25,000 EUR). 4 The research results, presented in this paper, are part of the broader research on government role in poverty reduction in BH which, besides its role in strengthening the financial sector, covered government role in strengthening entrepreneurial environment and the overall support to the private sector by eliminating different barriers, such as regulatory, administrative and financial. Volume 6 | Number 2 | Fall 2016 17 �Amra Babajić, Meldina Kokorović Jukan Growth: Private Sector Development and the European Commission document - The European Platform against Poverty and Social Exclusion: A European framework for social and territorial cohesion. The questionnaire for SMEs included thirteen questions, while the one for government bodies included eighteen questions. The sample of the surveyed SMEs was created based on the partial data on the number and types of SMEs from the Indirect Taxation Office of BH and the Agency for Statistics of BH, since the state level database of SMEs operating in BH does not exist. Having in mind that the sample would be rather large to collect the data, it was decided to include 250 SMEs in the sample. The size and structure of the sample is shown in Table 2. The response rate among SMEs was 50%. Table 2: Size and structure of the sample of the surveyed SMEs Group Number of employees 1 0 – 10 2 10 – 50 3 50 – 250 ∑ Type of SME Micro Enterprises Small Enterprises Mid-sized Enterprises Stratums Number of enterprises % Sample Number of enterprises 31,102 78.58 196.45 6,539 16.52 41.3 41 1,938 4.90 12.25 12 39,579 100.00 250.00 250 Number of enterprises in the sample 197 Source: Authors’ research The survey of government institutions included the following institutions and agencies: Federal Ministry of Development, Entrepreneurship and Crafts, FBH Development Planning Institute, Agency for Development of Small and Midsized Enterprises of Republic of Srpska, Government of Brcko District – Development Grant Fund of Brcko District, Federal Ministry of Energy, Mining and Industry, Ministry of Foreign Trade and Economic Relation of BH, and ten cantonal ministries of entrepreneurship. The response rate among government institutions was 81%. 18 Journal of Economic and Social Studies �Role of the State in Financial Sector Development and Achieving Pro-Poor Growth: Evidence from Bosnia and Herzegovina The data was collected in the period from May to November 2014, by e-mail, phone and direct contact. Research Results and Discussion As it was indicated in the previous part of the paper, economic pro-poor growth implies orientation to poverty reduction through different government measures, including financial sector development. Financial sector development contributes to pro-poor growth by creating a network of different types of financial institutions as well as a variety of financial products/services for the private sector and supporting entrepreneurial development, which contributes to poverty reduction by increasing employment and self-employment. SMEs Perceptions of State’s Role in Financial Sector Development in BH In general, the survey shows negative SMEs perceptions of the state’s role in financial sector development and its contribution to entrepreneurial development and, therefore, to poverty reduction. Figure 3 shows the results of the level of the surveyed SMEs agreement with different aspects of government (state) support to financial sector development. Figure 3: Perceptions of SMEs on the state’s role in financial sector development State regulates microcredit organization and… 24,3 State creates positive business environment… 25,7 32,9 State works continuously on development… State ensures guaranties and subventions… State creates conditions for development of… 35,7 State encourage entrepreneurial and… Supporting financial institutions,… 0% Strongly disagress Disagree 28,6 38,6 14,3 14,3 41,4 21,4 40 27,1 21,4 41,4 35,7 25,7 34,3 40% Agree 10 2,9 7,1 4,32,9 47,1 32,9 20% 7,12,9 47,1 31,4 Undecided 14,3 0 28,6 44,3 27,1 State finances investment in equipment,… 28,6 15,7 60% 80% 7,10 7,12,9 4,3 1,4 4,3 1,4 14,3 0 100% Strongly agree Source: Authors’ research Volume 6 | Number 2 | Fall 2016 19 �Amra Babajić, Meldina Kokorović Jukan As Figure 3 shows, 23% to 44% of the surveyed SMEs strongly disagree, while 28% to 41% of the surveyed SMEs disagree that the state supports financial sector development oriented towards helping SMEs and entrepreneurial firms. The majority of the surveyed SMEs disagree that state: • ensures guaranties and subventions for debt financing of the companies (85.7% of the surveyed SMEs), • creates conditions for development of different types of financial products/services for micro/small/mid-sized companies (78.5% of the surveyed SMEs), and • works continuously on development and strengthening of the financial sector (72.9% of the surveyed SMEs). Furthermore, the research results show that most of the surveyed SMEs have either a negative or neutral attitude towards the state regulations on microcredit organizations and prevention of misuse of these organizations, state’s role in creating positive business environment and support to microcredit organizations, and state’s support to financial institutions. It is interesting to observe that less than 15% of the surveyed SMEs expressed a positive attitude towards the state’s role in financial sector development and its impact on entrepreneurial development. Government Bodies Perceptions of its Role in Financial Sector Development in BH In contrast to SMEs negative perception, the survey shows a more positive attitude among government bodies of the state’s role in financial sector development. The results of the survey are shown in Figure 4. 20 Journal of Economic and Social Studies �Role of the State in Financial Sector Development and Achieving Pro-Poor Growth: Evidence from Bosnia and Herzegovina Figure 4: Perceptions of government bodies on the state’s role in financial sector development State regulates microcredit organization and prevent misuse of these… 7,7 7,7 76,9 State creates positive business 7,7 environment and support microcredit… State works continuously on development and strengthening of financial sector 53,8 7,7 State ensures guaranties and subventions for debt financing of the… 7,7 7,7 0% Strongly disagress Disagree 0 30,8 23,1 23,1 30,8 State encourage entrepreneurial and 07,7 investment activities Supporting financial institutions, 0 government contributes to… 15,4 46,2 23,1 38,5 23,1 Undecided Agree 15,4 0 0 23,1 0 7,7 7,7 69,2 40% 7,7 46,2 76,9 20% 15,4 0 61,5 23,1 15,4 State finances investment in equipment, technology and education 23,1 30,8 23,1 State creates conditions for development of different types of financial… 7,7 0 60% 7,7 0 80% 100% Strongly agree Source: Authors’ research The majority of the surveyed government bodies are undecided (neutral) towards the statements related to state policies and to the entrepreneurial development through strengthening the financial sector. Government bodies agree that the state does not create conditions for development of a wide range of financial products/services for micro/small/medium enterprises and, moreover that it does not create positive environment and financial support for microcredit organizations. In contrast to the perceptions of the surveyed SMEs, government bodies express a positive attitude towards the state’s role in creating the conditions for debt financing for start-ups and enterprise development, as well as towards the state’s role in ensuring grants and subventions for debt financing of SMEs. Volume 6 | Number 2 | Fall 2016 21 �Amra Babajić, Meldina Kokorović Jukan Using discriminant analysis existence of the significant difference among attitudes between the private and government sectors on the state’s role in strengthening the financial sector was tested. In that respect, one discrimination function was determined, where the function describes 100% of the variation of the between groups variation, which is shown in Table 3. Table 3: Discrimination analysis for the state’s role in strengthening financial sector F eigenvaules λ % of Variance 1 0.278 100 Cumulative % 100 Canonical Correlation rc 0.467 Wilks’ Lambda λ 0.782 Chisquared χ2 18.788 df Sig. 9 0.027 Source: Authors’ research Squared canonical correlation (rc), the effect size for the discriminant functions, is (0.4672)=0.278. Wilks Lambda is rather high (Wilks λ=0.782) showing low discrimination strength of discriminant functions. Chi-squared test (χ2) for function 1 is statistically significant (χ2=18.788, sig.=0.027), showing that discrimination model is significant, and therefore can adequately measure group membership, but determined differences between groups are rather small. Table 4 shows discriminant function coefficients and group centroids for the state’s role in strengthening financial sector. Table 4: Discriminant function coefficients and group centroid for the state’s role in strengthening financial sector Discriminant Coefficient (DC) State encourages entrepreneurial and investment activities State ensures guaranties and subventions for debt financing of companies State creates conditions for debt financing of start-up/development of firms 0.629 State finances investment in equipment, technology and education 0.569 22 0.823 Group Centroid Private sector -0.225 Government 1.209 0.624 Journal of Economic and Social Studies �Role of the State in Financial Sector Development and Achieving Pro-Poor Growth: Evidence from Bosnia and Herzegovina Supporting financial institutions, government contributes to entrepreneurial development 0.536 * Difference does not exist Source: Authors’ research Table 4 shows differences between the observed groups for chosen variables in the hierarchical order. The mayor difference in perceptions among the private and government sectors is observed in respect to the following: state’s role in encouraging entrepreneurial and investment activities (DC=0.823), and state’s role in ensuring guaranties and subventions for debt financing of companies (DC=0.629). On the other hand, there is no significant difference between perception among the private and government sectors on the state's role in creating positive business environment and support to microcredit organizations. It can be observed that even though some differences in perceptions among the private and government sectors, on the multivariation level, do exists, where the private sector gives a lower grade than the government bodies for the state’s involvement and contributions to financial sector development, those differences are rather insignificant. Conclusions and Recommendations In order to reduce poverty, governments in developing countries need to take necessary actions to assure pro-poor economic growth. Pro-poor economic growth can be achieved by greater role of the state in developing private sector and creating environment for entrepreneurship. In that respect government needs to establish economic environment which would boost private sector to create more work places for the poor. Furthermore, the state needs to engage in development of the financial sector, as financial sector development is one of the preconditions for private sector to develop. Without proper financial sector infrastructure for private sector and entrepreneurs to obtain external financial sources (more precisely, without availability of different types of external financial sources tailored to their needs), it cannot be expected that a pro-poor growth can be achieved through private sector development. As the research shows, based on the BH experience, it is not enough to create the regulation framework of the financial system and regulation for SMEs, but it is Volume 6 | Number 2 | Fall 2016 23 �Amra Babajić, Meldina Kokorović Jukan important that regulations and government actions are in line with the expectation of the private sector. The research shows that private sector is not satisfied with actions undertaken by the state for supporting financial sector. The analysis of SMEs perceptions reveals that SMEs have negative perceptions towards the state’s role in financial sector development. The surveyed SMEs are of the opinion that the state interventions in financial sector are not contributing to entrepreneurial development in BH, regardless of the fact that BH financial sector is well developed and well regulated. On the other hand, the analysis of perceptions of government bodies at all levels (municipal, cantonal, entity and the state level) reveals that the state is not aware of the needs of private sector, as well as of entrepreneurial sector. It is obvious that a huge lack of understanding between the state and private sector exists. In that respect, it is important that government work more closely with private sector as well as with financial sector to identify the needs of private sector and create policies and take actions necessary for private sector to develop. In particular, when it comes to financial sector development, government bodies need to: • rethink and better distribute guaranties and subventions for debt financing of companies, • create conditions for development of different types of financial products/services specially tailored for the needs of SMEs, • work continuously on development and strengthening of financial sector, hold workshops or focus groups where all interested parties (the state, financial institutions and SMEs) would be able to discuss the problems in access to financial products and services. References Akhter, S., Liu , Y., & Daly, K. (2010). Cross Country Evidence on the Linkages between Financial Development and Poverty. International Journal of Business and Management, 5(1), 3-19. Azra, K. D., Ahmad E., & Ullah W. (2012). Financial Development and Poverty Reduction: Time Series Evidence from Pakistan. World Applied Sciences Journal 18(11), 1576-1581. 24 Journal of Economic and Social Studies �Role of the State in Financial Sector Development and Achieving Pro-Poor Growth: Evidence from Bosnia and Herzegovina Beck, T., A. Demirgüç-Kunt, & M. S. Martinez-Peria. (2007). Reaching Out: Access to and Use of Banking Services across Countries. Journal of Financial Economics, 85(1), 234–66. Bencivenga, V.R, & Smith, B.D. (1991). Financial Intermediation and Endogenous Growth, Review of Economic Studies, 58, 195-209. Central bank of Bosnia and Herzegovina (2014). Annual Report of CBBH for 2013. Retrieved from: http://www.cbBH.ba/files/godisnji_izvjestaji/2014/GI_2013_bs.pdf DFID (2004). The Importance of Financial Sector Development for Growth and Poverty Reduction Policy Division Working Paper, Department for International Development, UK. Retrieved from: http://ageconsearch.umn.edu/bitstream/12886/1/fi04im01.pdf Dhrifi, A. (2013a). Financial Development and Poverty: What Role for Growth and Inequality?, International Journal of Academic Research in Accounting, Finance and Management Sciences, 3(4), 119–129 Dhrifi, A. (2013b). Financial Development and the "Growth-Inequality-Poverty" Triangle: A Comparative Study between Developed and Developing Countries, International Journal of Economics, Finance and Management, 2(7), 472 -481. European Commission (2008). “Think Small First” - A “Small Business Act” for Europe {SEC(2008) 2101} {SEC(2008) 2102}, COM/2008/0394 final. Retrieved from: http://eur-lex.europa.eu/legalcontent/EN/TXT/?uri=CELEX:52008DC0394 Fields, G. (2001). Distribution and Development: A New Look at the Developing World. NY: Russell Sage Foundation, and Cambridge, MA: MIT Press. Ho, S., and Odhiambo, N. M. (2011). Finance and Poverty Reduction in China: An Empirical Investigation, International Business & Economics Research Journal, 10(8), 103 -114. Honohan, P. (2004). Financial Development, Growth and Poverty: How Close is the Links, World Bank Policy Research Working Paper 3203, February 2004, Retrieved from: http://www1.worldbank.org/finance/assets/images/3203.pdf Volume 6 | Number 2 | Fall 2016 25 �Amra Babajić, Meldina Kokorović Jukan King. R. G, and Levine R. (1993). Finance, Entrepreneurship and Growth: Theory and Evidence, Journal of Monetary Economics, 32(3), 513-542. Levine, R. (2004). Finance and Growth: Theory and Evidence. NBER Working Paper No. 10766, National Bureau of Economic Research, MA: Cambridge Levine, R. (1997). Financial Development and Economic Growth: Views and Agenda, Journal of Economic Literature, 35(4), 688-726. Quartey, P. (2005). Financial Sector Development, Savings Mobilization and Poverty Reduction in Ghana, UNU-WIDER. 2005, Research Paper No. 2005/71, United Nations University, Helsinki, Finland. Rajan, R.G. Zingales, L. (1998). Financial Dependence and Growth, The American Economic Review, 88(3), 559-586. Rajan. R.G, a Zingales L. (2003). The Great Reversals: The Politics of Financial Development in the 20th Century, Journal of Financial Economics, 69(1), 5-50. OECD (2006) Promoting Pro-Poor Growth - Private Sector Development. Retrieved from: http://www.oecd.org/development/povertyreduction/36427804.pdf Uddin G.S., Kyophilavong P., Sydee N. (2012). The Casual Nexus of Banking Sector Development and Poverty Reduction in Bangladesh, International Journal of Economics and Financial Issues, 2(3), 304-311. UN (2015). Millennium Development Goals: 2014 Fact Sheet. Retrieved from: http://www.un.org/millenniumgoals/2014%20MDG%20report/MDG%202014% 20Progress%20Chart_English.pdf WB (2015). Pro-Poor Growth in the 1990s: Lessons and Insights from 14 Countries. Retrieved from: http://siteresources.worldbank.org/INTPGI/Resources/3426741119450037681/Pro-poor_growth_in_the_1990s.pdf 26 Journal of Economic and Social Studies ���  �   �40,0 35,0 30,0 Raw materials Labour-intensive 25,0 20,0 15,0 10,0 5,0 0,0 Capital-intensive Technologyintensive, easily imitable Technologyintensive, difficultly imitable ������0,3 0,25 Albania 0,2 Bosnia & H. Croatia 0,15 Montenegro 0,1 Serbia (& M.) Macedonia 0,05 0 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 �0,12 Albania 0,1 Bosnia & H. 0,08 Croatia 0,06 Montenegro 0,04 Serbia (& M.) 0,02 Macedonia 0 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 �����Journal of Economic and Social Studies Key Success Factors for Sustainable Strategic Information Systems Planning and Information Technology Infrastructure Zana Pekmez University of Sarajevo, Faculty of Economics Bosnia & Herzegovina zana_pekmez@hotmail.com Abstract: Paper intends to provide an expert view on the approach to transformation of business processes toward business sustainability, or sustainable business processes, with a focus on ecological thinking. Furthermore, it highlights the argument that approach to corporate sustainability is interdisciplinary process spanning from the fields of sociology to applied technological innovation and advances in the IT/IS sphere of influence. Through a review of an amalgam of very recent literature, a versatile business model is recommended bridging together most effective strategic information system planning (SISP) tools for building a sustainable business processes to be deployed in practice. This article intends to help high and middle management extend the notion of sustainable development to their every-day managerial activities while protecting the organization well-accepted business principles. Keywords: Corporate sustainability; Business process management (BPM); Information Systems (IS); Information Technology (IT) infrastructure, Green IT and IS JEL Classification: M15 – IT Management Article History Submitted: 21 March 2016 Resubmitted: 13 July 2016 Accepted: 5 September 2016 http://dx.doi.org/10.14706/JECO SS166110 Volume 6 | Number 2 | Fall 2016 43 �Zana Pekmez Introduction Information systems (IS) and Information Technology (IT) have in many significant ways contributed to the sustainability cause in the past decades as an instrument to raise awareness about ecological thinking, communicate and distribute information, increase productivity and optimize the use of natural resources, as well as reduce travel and transportation (Huang, 2009). However, all these deeds do not excuse these technological systems and constructs from continuing to stand up for the environment advocating and supporting sustainable business practices and systems. Powerful and wide-spread technology and significant role of information systems in our everyday lives are all reasons why IT and IS should be at the forefront of the battle for sustainability. For almost four decades it has been a greatest challenge for IT&IS professionals and business executives to align the overall business strategy with IS&IT development planning and investments. This goal became even more ambitious when executives faced the need to reconcile the corporate IS&IT planning with green strategies and sustainable and ecological thinking. The reality is that the use of IT and IS systems significantly impact the environment at every stage of its life and use cycle: consumption of raw materials, energy and water in the production phase and furthermore the consumption of electricity by use of computer, servers, displays and other hardware. Furthermore, waste of computer components has becoming a tremendous problem due to its toxic content (Murugesan, 2008). Green IS&IT strategy should encompass all the above mentioned stages of IT&IS system life, and at the same time be aligned with corporate business strategy. To achieve this goal companies, need a holistic, systematic and well-planned strategy, deep-seated in the principles of sustainable and ecological thinking toward addressing comprehensive set of environmental concerns. Reconciling the traditional companies’ objectives, such as profits, costs and competitive advantage with environmental and sustainability targets is by far greatest challenge of all, however the following text will demonstrate that there are common factors which inevitably lead in the same direction. Corporate Sustainability and IT&IS Infrastructure In the past two decades the fight for sustainability has expanded from regulators and government agencies to corporate world. Following the ecological thinking 44 Journal of Economic and Social Studies �Key Success Factors for Sustainable Strategic Information Systems Planning and Information Technology Infrastructure principles, aware business executives have formed an organization – World Business Council for Sustainable Development which has grown in 2000 to count 150 international companies (Dyllick and Hockerts, 2002). However, the locus of their fight for sustainability has been mainly dominated by „eco-efficiency“, e.g. energy saving strategies, recycling, utilization of sustainable products, which have for sure colored most of the companies’ green (Dyllick and Hockerts, 2002, 131). Furthermore, companies have mostly focused on consumption of energy by the datacenters and extensive physical hardware machines and servers. According to the analyst from Gartner Research, IT departments of fairly large companies spend about 5% of their total budget on energy costs, however the IT's „dirty secret “is that more energy is consumed during the production and shipping process of hardware (PCs, servers etc.) than during its actual usage (cited in Saran, 2007). Progressively standards for achieving sustainable business practices are becoming more demanding. Besides the efficient use of resources and energy, companies should take into consideration the entire life-cycle of products and therefore reconsider many aspects of doing business to maintain the recognition of being compliant to sustainability standards. The decision to incorporate practices such as, life cycle analysis, environmental auditing and reporting, outsourcing decisions and choice of suppliers depending on their commitment to environment, are becoming a crucial element of companies’ strategy and competitiveness (Elkington, 1994, pp. 91). Environmental policies and guidelines have been primarily the task of government agencies and regulatory to be imposed on the corporates. In this arrangement, the corporate world has adopted by inertia a very reactive role, in addition to the obligation of compliance. However, due to a very dynamic and changing market conditions, companies require an innovative and unique business practices which will add value to the entire business model and products and thus grant these companies a competitive advantage in its respective industry (El- Gayar and Fritz, 2006). A competitive advantage could be measured by an additional value added to products, better cost-management practices, a robust and efficient information system and IT infrastructure. During last decade, many companies have discovered that incorporating sustainability into its overall long-term business strategy would possible grant them all the above, namely: additional value to products, better cost management and efficiency of IS&IT infrastructure. Achievement or retention of competitive Volume 6 | Number 2 | Fall 2016 45 �Zana Pekmez advantage in its respective industry and stable stream of income are much valued end-results of incorporating sustainability issues as important features of business processes and overall business goals. The following table summarizes some of the key success factors critical to achieve sustainable and versatile operating model. All these factors summarized below stem from various disciplines. Table 1: Summary of Key Factors IT INFRASTRUCTURE STRATEGIC IS PLANNING Virtualization and cloud computing – consumes less energy; prevents the need for a data centers and prevents the need for extensive cooling systems. CIO&COO awareness – Nexus between Operations and IT toward sustainable business practices Using virtualization software to divide servers into multiple machines BPM – a holistic management practices of measuring and re-designing the processes –transformation. Replacing the old equipment with new energy efficient one – EPEAT and ENERGY STAR certified systems (LCD monitors instead of CRT technology) LEAN methodology – elimination of all kinds of waste. Deployment of optimization systems Remote workers – less office space, less heat, less power, less commuting. Power management – activate the power management features on servers and devices; system settings to hibernate and shut down. Video-conferencing – with employees, customers and suppliers. Using thin-client computers Eco –metrics –measuring the use of energy & the levels of emission. Recycle IT equipment properly: not carefully recycling practices are for companies’ serious financial and information security liability. Corporate environmental 46 reporting Shared service centers Journal of Economic and Social Studies �Key Success Factors for Sustainable Strategic Information Systems Planning and Information Technology Infrastructure Use of renewable energy Selecting a supplier according to their commitment to the environment (IS Value Chain) Use Green IT Standards – Epeat (www.epeat.net), the Energy Star 4.0 standard and the RoHS Directive (www.rhos.gov.uk) Eliminate printing and use of paper. Source: Table is compiled by the author from various sources listed at the reference list. Building the Theory of Corporate Sustainability Business Process Management (BPM) approach An approach to transformation and innovation in business practices is an interdisciplinary process with business-related and people-related content and issues concerning design and architecture. To measure the efficiency and effectiveness of processes in terms of the general behavior and practices, a maturity models have been introduced to the fields of Business Process Management (BPM) and Software engineering. These models guide organizations toward prioritizing activities and designing the roadmaps. De Bruin and Rosemann (2007) and Rosemann and vom Brocke (2010) developed a concept of BPM maturity model which contains six crucial components for successful and effective business management namely: strategic alignment of corporate goals, corporate governance, overall methods, information technology, people and culture (cited in Pernici, Aiello, vom Brocke, Donnellan, Gelenbe and Kretsis, 2012, 284). Thus, in order to get the most accurate diagnosis of companies processes to fix them and achieve better and more efficient business practices interdisciplinary approach as an amalgam of different fields of studies and perspectives are most needed. Since corporate sustainability is entire company's target/goal affecting all of the business practices and departments – from hygiene maintenance, operation processing and high level executive decision making – the most encompassing way to address this issue is through the Business Process Management (BPM). This phenomenon has been revolving throughout the decades and is very flexible to changes and innovation thus manager should use it as a tool to diagnose inefficiency and tailor the processes that will be highly efficient (supporting the main business Volume 6 | Number 2 | Fall 2016 47 �Zana Pekmez goals) and highly sustainable (supporting the environment)- all at the same time. Seidel, vom Brocke and Recker (2011) emphasize that only through the employment of business process change and BPM methodology (process analysis, process performance measurement and process improvement) the altering capability and function of IS and the subsequently the role of IT, will be fully effective in transforming the business toward sustainable practices. Coinciding roles of IS and IT in making of sustainable business It is important at the very beginning to make a distinction between IS and IT systems as both are integral tools to sustainable business, however they differ in terms of ways of contribution to the cause, for example: IT is a set of products, mostly hardware, that processes, transmits and stores the data and promotes sustainability with a focus on energy saving, reducing the equipment waste and optimizing utilization. On the other hand, IS (information systems) is an amalgam of organizational goals and strategies brought to life through information system and software to achieve sustainable business practices (Boudreau, Chen & Huber, 2008). For example, Pernici, Aiello, vom Brocke, Donnellan, Gelenbe and Kretsis (2012) discussed the process of IS engineering with the focus on energy efficiency pointing out that application could be more or less efficient depending in the infrastructure in which it is running (different platform would require different levels of energy). Therefore, it is crucial to discuss the existing theories on the role of the hardware components (IT) in the building process of sustainable business model. On the role of Information technology In IT processes consumption of power by data centers and hardware have been popular topics; however, the power usage by networks has not been mentioned that often in the context of sustainable IT infrastructure. The fact is that networks consume more energy than data centers and this trend will be constantly increasing. Thus it is of crucial importance to consider the organization of business practices and systematization of human resources in regard to information processing and information sharing (Pernici, Aiello, vom Brocke, Donnellan, Gelenbe and Kretsis, 2012). Huang (2009) defined the sustainable IT development as a set of principles that takes into account at the same time and with equal importance the business goals and the environment. He proposes a new theoretical approach for the lifecycle 48 Journal of Economic and Social Studies �Key Success Factors for Sustainable Strategic Information Systems Planning and Information Technology Infrastructure analysis of IT equipment with an explicit focus on the sustainability and he calls it „sustainable system development lifecycle “(SSDLC). SSDLC includes six stages: sustainable planning, sustainable analysis, sustainable design, sustainable implementation, sustainable maintenance and sustainable disposal (Huang, 2009). At each of these stages environmental requirements should be in focus: energyefficient equipment and power-management software should be used in the planning and design stages; system testing for energy consumption, proper installation, proper system migration during testing and implementation and proper maintenance to ensure that system if working in the most efficient state to extend its endurance and detect any inefficiencies in time. In addition, effective and sustainable disposal of the equipment is a final, however, most important stage that has been in most cases neglected. (Huang, 2009). This theory of SSDLC should be guiding principles for all IS&IT and business executives in the process of transformation and changeover to sustainable business practices. A more dynamic theory approach through the classification of degrees of effects of IT infrastructure on the environment has been developed by Hilty at al. (2006) and Kohler and Erdmann (2004) isolating three types of effects: first-order, second-order and third-order. (Cited in Dedrick, 2010, pp. 175). First-order effect is direct impact on the environment from IT hardware and equipment through the entire product lifecycle - from production to disposal. Second-order effects are impacts on the subsidiary processes such as transportation and industry and third- order effects are more complicated constructs whose effects have a power to change people's lifestyle and the economy, such as an example of home-business built on ecommerce platform (Dedrick, 2010). Information systems Even though their means of contribution to the sustainable corporate practices differ, a well-designed IS shall not be successful without efficient hardware components and in the long run such business model will not be sustainable in every aspect of its functional performance and end-result. The overview of the following theories will demonstrate the operational interdependence of IS and IT in the process of reaching long-term sustainable business-model. Besides the Real Theory of Management, that represents the gold-standard guidelines for competitive and successful business practices, new theories have been emerging with a focus on ecological thinking and sustainability that besides the Volume 6 | Number 2 | Fall 2016 49 �Zana Pekmez obvious fight for the environment, still guards the traditional profit-making and competitiveness mantra: such theories revolve mainly around the ideas of ecoefficiency, eco-effectiveness, life-cycle analysis, Lean & Green methodologies etc. (ElGayar and Fritz, 2006). Hart (cited in Boudreau, Chen & Huber, 2008, pp. 7) identifies three major sustainability goals, namely: pollution prevention, sustainable product utilization and clean technologies. On the level of firm or organization there are many means by which IS and IT could effectively contribute to all three mentioned goals, such as; using virtualization instead of physical servers (to prevent pollution), recycling computer (sustainable product utilization) and video conferencing or SharePoint for clean technology (Boudreau, Chen & Huber, 2008). Among these three frameworks of integrating sustainability into SISP, Boudreau, Chen & Huber (2008) also mention the key concepts of strategic alignment of business processes by using IS to achieve „aggregation, adaptation and arbitrage “, as well as the principles of ecological thinking („eco-efficiency, eco-equity and eco-effectiveness “) as drives toward sustainability of business practices trough the IS/IT deployment (Boudreau, Chen & Huber, 2008, pp.16). Furthermore, Dyllick and Hockerts (2002) recognized the need to contribute to building a systematic theory of corporate sustainability and they introduced the model approach of six criteria defining three cases for sustainability, namely the business case, the natural case and the societal case. In most firms’ executives follow solely the principles of eco-efficiency in order to achieve positive net value (economic value) in contributing to environment. Dyllick and Hockerts (2002) add to this business case yet another important criterion, namely the socio-efficiency as a new concept that correlates the firm's value to social impact suggesting that when designing a business case besides the eco-efficiency, socio-efficiency should also be used as a guiding principle. In addition to business case, two authors presented the natural case for corporate sustainability driven by the concept of eco-effectiveness and the societal case defined by socio-effectiveness and ecological equity. (Dyllick and Hockerts, 2002). Belief-action-outcome (BAO) & Energy Informatics Nigel P. Melville (2010) adds to the theory of corporate sustainability by analyzing the role of IS and innovation through the prism of two new disciplines, namely behavioral science and design science. A micro-macro model, called belief-action50 Journal of Economic and Social Studies �Key Success Factors for Sustainable Strategic Information Systems Planning and Information Technology Infrastructure outcome (BAO), has been developed with an intention to research sustainability issues on diverse levels of granularity and through the different theories and constructs since the field of IS applies many theories among which are some from its own field and many are from different disciplines such as behavioral studies, psychology, sociology, economics etc. (Melville, 2010). Watson, Boudreau and Chen (2010) contributed to theoretical background by demonstrating a new conceptual framework – Energy Informatics. It is a solutionoriented interdisciplinary idea on how IS should contribute to sustainability with a focus on reducing energy consumption. In other words, energy informatics is a concept that models the relationship between energy and information using the tools from management science, design science and policy formation. It also important to mention that their interpretation and understanding of ecological goals is driven by above mentioned Dyllicks and Hockerts (2002) theories of eco-efficiency, eco-equity and eco-effectiveness. (Watson, Boudreau and Chen, 2010). Besides developing groundwork for a new theory, Watson, Boudreau and Chen (2010) underlined a several fronts where IS scholars and business executives should practice energy informatics, namely: research (9 core research questions have been proposed), teaching, Journals (by migration to electronic format and by actively publishing issues in sustainable IS) and through IS Association (Watson, Boudreau and Chen, 2010). Competitive advantage: “undeniable” fallout of sustainable business practices Translating its business practices and infrastructure to ecological and sustainable processes most practitioners and executives identify with high costs and low returns, however sustainability has become a global goal and most of organizational and firms had recognized sustainability issues as critical by incorporating it in its overall longterm business strategy. Those companies that have not done this yet are exposed to high risk of competitive disadvantage for many reasons: costumers worldwide are more environmental consciousness and prefer to buy products with green labels. Furthermore, elimination of many forms of waste (waste of resources, time, and energy) will ultimately lead to lower costs, higher profitability and returns (Boudreau, Chen & Huber, 2008). Practitioners warn that also the outsourcing decision should include, as a grading criterion, vendor’s commitment to sustainable business practice. Companies will be ultimately more. Volume 6 | Number 2 | Fall 2016 51 �Zana Pekmez motivated to comply with the sustainable standards due to the increased disclosure from companies in relation to their ecological profiles which will directly impact label, image and ratings in their respective industries. Commoditization leading to sustainability Making economic value of goods and services eventually will lead to reducing overheads and transactions costs, however according to Editor in Chief of Computer Weekly Bryan Glick, such commoditization could be a fertile ground for innovation. Consequently, innovation boosts competitive advantage and cost advantage if it channeled in the right direction toward sustainable development. As an example of services being commoditized for greater good, Glick mentions “cloud services” – large and expensive to maintain IT infrastructure (storage, processors and physical servers) is now replaced by 1GB archive disk space for a one US cent on monthly basis. Thus, cloud computing directly eliminates investing heavily in expensive IT infrastructure which enables firms from very beginning to save on large capital costs which further reduces the barriers for market entry for many firms. (Sako, 2012). Conclusion There are many approaches to corporate sustainability and environmentally sound business practices, but the question remains how are we to select the business model that will be committed to the environment, profitable and affordable at the same time. The most recent literature on SISP declares this to be a scientific question suggesting that academic research will eventually reveal a manual for the practitioners on how to bring together the costs and benefits of corporate environmental initiatives and transformations (Dedrick, 2010). Current literature mostly agrees that the competitive advantage from new IT technologies and IS innovations will be assured once these are accompanied with other factors such as corporate governance focused on creativity and exploiting new opportunities introduced by competitive top and middle management. (Del Giudice and Straub, 2011) In the meantime, practitioners should keep in mind some of the key approaches to corporate sustainability highlighted in this paper. Most importantly, in designing a sustainable business model one should focus on interdisciplinary approach bringing 52 Journal of Economic and Social Studies �Key Success Factors for Sustainable Strategic Information Systems Planning and Information Technology Infrastructure together sociological, psychological, economical, technological and financial components to construct efficient and lean processes with minimal waste. References Anandarajan M., & Lippert K.S. (2006). Competing Mistresses? Academic vs. Practitioners Perceptions of Systems Analysis. Journal of Computer Information Systems, Special Issue 2006, 114-126. Bansal, P., & Roth, K. (2000). Why Companies go Green: A Model of Ecological Responsiveness. Academy of Management Journal, 43 (4), 717-736. Boudreau, M.-C., Chen, A.J. & Huber, M. (2008). Green IS: Building Sustainable Business Practices in Watson R.T. (Ed.), Global Text Projects, Athens, GA, 247-261. Byrd, A.T, Lewis, R.B., & Bradley, V.R. (2006). IS Infrastructure: The Influence of the senior IT leadership and Strategic Information Systems Planning. Journal of Computer Information Systems, Fall 2006, 101-113. Cone, E. (2006). The Greening of the CIO, CIO Insight, 31-38. de Bruin, T., and M. Rosemann (2007). Using the Delphi Technique to Identify BPM Capability Areas. Paper presented at the Proceedings of the 18th Australasian Conference on Information Systems (ACIS 2007), Toowoomba, Australia. Del Giudice, M., & Straub, D. (2011). IT and Entrepreneurism: An On-Again, Off-Again Love Affair or a Marriage? MIS Quarterly, 35 (4), 5. DiRamio, D. (2009, January). 10 Tips to Green IT. Communications News, 32. Drucker, F.P. (2006, February). What Executives Should Remember? Harvard Business Review, 144-152. Dyllick, T., & Hockerts, K. (2002). Beyond the business case for corporate sustainability. Business Strategy and the Environment, 11, 130-141. Volume 6 | Number 2 | Fall 2016 53 �Zana Pekmez El-Gayar, F.O., & Fritz, D.B. (2006). Environmental management information systems (EMIS) for sustainable development: A Conceptual Overview. Communications of AIS, 17 (34), 2-49. Elkington, J. (1994). Towards the Sustainable Corporation: Win-Win-Win Business Strategies for Sustainable Development. California Management Review, Winter 1994, 90-100. Forester Research (2008). The Down of Green IT services. Gladwin, N.T., Kennelly J.J., & Krause T.-S. (1995). Sifting Paradigms for Sustainable Development: Implications for Management Theory and Research. Academy of Management Review, 20 (4), 874-907. Glick, B. (2012, September/October). Among the uncertainty of the cloud sits a platform for innovation. Computer Weekly, 14. Hart, S.L. (1997). Beyond greening: Strategies for sustainable world. Harvard Business Review, 75 (1), 66-76. Hasan, H. M., Ghose, A. K., & Spedding, T. A. (2009). IS solution for the global environmental challenge: An Australian initiative. 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Harnessing Green IT: Principles and Practices. IT Professionals, 24-33. Newkirk, E.H., & Lederer, L.A. (2007, spring). The Effectiveness of Strategic Information Systems Planning for Technical Resources, Personnel Resources, and Data Security in Environments of Heterogeneity and Hostility. Journal of Computer Information Systems, 34-44. Pernici, B., Aiello, M., vom Brocke, J., Donnellan, B., Gelenbe, E., & Kretsis, M. (2012). What IS Can do for Environmental Sustainability: A Report form CAiSE’11 Panel on Green and Sustainable IS. Communications of the AIS, 30 (18), 275-292. Piccoli, G., & Ives, B. (2005). Review: IT-Dependent Strategies Initiatives and Sustained Competitive Advantage: A Review and Synthesis of the Literature. MIS Quarterly, 29 (4), 747-776. Rosemann, M., & vom Brocke, J. (2011). The Six Core Elements of BPM in vom Brocke, J., and M. Rosemann (Eds.). Handbook on Business Process Management, vol. 1, New York, NY: Springer. Sage, P.A. (1999). Sustainable Development: Issues in Information, Knowledge, and Systems Management. Information, Knowledge and Systems Management, 1, 185-223. Sako, M. (2012, July). Technology Strategy and Management Business Models for Strategy and Innovation. Communications of the ACM, 55 (7), 23. Saran, C. (2007). Green IT goes beyond the datacenter. Computer Weekly, 10. Seidel, S., vom Brocke, J., & Recker, J. (2011). Call for Action: Investigating the Role of Business Process Management in Green IS. Paper presented at the Proceedings of SIG Green Workshop. Sprouts: Working Papers on Information Systems, 11(4). Retrieved from: http://sprouts.aisnet.org/11-4 Watson, T.R., Boudreau, M., & Chen J.A. (2010). Information Systems and Environmentally Sustainable Development: Energy Informatics and New Directions for the IS Community. MIS Quarterly, 34 (1), 23-38. Volume 6 | Number 2 | Fall 2016 55 ��Journal of Economic and Social Studies Trends and Challenges of Female Unemployment in the Republic of Macedonia: A Regional Comparative Study Remzije Rakipi Faculty of Business and Economics South East European University in Tetovo Republic of Macedonia r.rakipi@seeu.edu.mk Shpresa Syla Faculty of Business and Economics South East European University in Tetovo Republic of Macedonia s.syla@seeu.edu.mk Abstract: The Republic of Macedonia has since its independence made great progress in terms of economic reform and social development; prompted often by the county’s aspiration to become part of the European Union. However, in spite of these advances, weak labour market indicators in particular among females remains a great concern and a persisting challenge for the country. Based on official data from the Labour Force Survey (LFS) conducted by the State Statistical Office (SSO) for the case of the Republic of Macedonia, the aim of this study is to examine the development of female unemployment in the past decade (2004-2013) in the Republic of Macedonia from a multi-dimensional perspective. This while comparing national trends with other Balkan countries already in the EU using LFS data provided by Eurostat. Findings show that the female unemployment rate in the R. Macedonia is moving in the right direction with a decreasing trend throughout the observed period with drop of 8.8 percent point from 2004 to 2013 (observed at 29% in 2013). Compared to Balkan countries in the EU, findings show that the R. Macedonia has been performing relatively better than these countries, who have all experienced negative fluctuations in female unemployment rates in the observed period with rates at higher levels compared to 2004. Furthermore, the findings show no evidence of inequality between male and female unemployment rates in the country, however notable disparities are evident when observing unemployment among various age groups and the level of education attainment.The paper concludes with clear policy recommendations for boosting female employment to include increasing female access to education and entrepreneurial programs, increased access to childcare, etc. Volume 6 | Number 2 | Fall 2016 Keywords: Labour market, female unemployment; unemployment, employment JEL Classification: J01, E24 Article History Submitted: 17 December 2015 Resubmitted: 12 August 2016 Accepted: 24 August 2016 http://dx.doi.org/10.14706/JEC OSS16619 57 �Remzije Rakipi, Shpresa Syla Introduction Issues related to the labour market are the heart of social and political debate in the Republic of Macedonia. The country has since its independence made great progress in terms of economics reforms and social development. However, in spite of these advances, weak labour market indicators in particular among females (15-64 years) remains a great concern and a persisting challenge for the country. High unemployment amongst females is however not a recent phenomenon in the country, nor is the country an exception in this regards. As argued by MojsoskaBlazevski, Najdova, Stojkov, and Asenov (2009), the labour market in the Republic of Macedonia is considered insufficiently inclusive of females similar to other Western Balkan countries, this despite legislation being in place on labour relations, gender equality, anti-discrimination and equal employment opportunities. Job creation for the most vulnerable groups in society, and especially women, is a key component in the fight against social exclusion, and the most effective way to provide vulnerable groups such as females a sense of independence, financial security and a sense of belonging. Women represent a category in society that is traditionally excluded or underrepresented in the labour market not only due to discrimination and inequality in the labour market, but significantly also due the role they play within the household which makes it often more difficult for them to enter the job market and pursue careers. In this context, it is the aim of this study to shed some light on the development and challenges of female unemployment in the past decade (2004-2013) in the Republic of Macedonia from a multi-dimensional perspective. This while comparing national trends with trends in other Balkan countries, more specifically with Balkan countries in the European Union. Literature Review Gender based unemployment in general does not present a new or an unexplored area. However not much study exists on this particular topic that is specific to the R. of Macedonia. At the least no known studies exist covering trends in female unemployment for the observed period that additionally compares female unemployment trends with Balkan countries already in the EU. Available studies on female unemployment specific to the R. of Macedonia is predominately found in non-scientific studies and reports (European Training Foundation, 2013; United Nations, 2013; World Bank, 2008 and 2013) where female unemployment is usually covered lightly as part of a more general studies of labour market indicators in the R. of Macedonia; serving primarily policy making objectives. The closest 58 Journal of Economic and Social Studies �Trends and Challenges of Female Unemployment in the Republic of Macedonia: A Regional Comparative Study scientific research in this field can be attributed to a few (Mojsoska-Blazevski et al., 2009; Lehmann, 2010; Mojsoska-Blazevski, 2012; Mojsoska-Blazevski and Kurtishi, 2012; Avlijaš, Ivanović, Vladisavljević and Vujić, 2013; Mickovska-Raleva and Dimitrijevska, 2013) who try at various levels to depict a picture of female unemployment in the R. of Macedonia; sharing the common understanding that women in the R. of Macedonia are traditionally underrepresented in the labour market. Mickovska-Raleva and Dimitrijevska (2013) further arguing that special attention needs to be given to policies for greater inclusion of women. This in particular women from rural areas and young women. Mojsoska-Blazevski and Kurtishi (2012) argue to greater depth in this context and state that the main reason why the female unemployment rate is not much higher is the relatively high willingness of women to take low-paid, secure public sector jobs, or jobs in newly created small private firms, since by tradition, they are second-income family earners. Methodology To properly understand female unemployment, it is essential to consider the development of the labour market from a much broader perspective and to also observe changes in the labour market in general. A close look at other labour market indicators such the rate of economically active and inactive population and employment trends is deemed warranted in this case. This in respect to both gender gaps and aggregate level (National Level) rates. A valuable source in the capturing of events in the labour market is the Labour Force Survey (LFS), which is executed annually by the State Statistical Offices of various EU countries and EU candidate countries. Hence, for the sake of harmonised labour market data, in particular for comparison purposes, data analysis of trends in female unemployment in Republic of Macedonia is based on official Labour Force Survey data published by the State Statistical Office of the Republic of Macedonia and Labour Force Survey data of selected Balkan countries published by Eurostat. Data Analysis Female Labour Market Participation and Inactivity Labour force participation rate (Economic Activity Rate - EAR) of women in the Republic of Macedonia has shown a slight increase in the last decade (2004-2013). The participation of women in the labour market has increased in the observed period by 12.8% (Figure 1) which is slightly higher than the increase experienced in Volume 6 | Number 2 | Fall 2016 59 �Remzije Rakipi, Shpresa Syla the case of male labour force participation (8.9%) in the same period. Noteworthy, is that a noticeable gap exists when comparing activity rates amongst females and males. As shown in Figure 1, female activity rates are significantly lower than male activity in each year of the observed period. According to the World Bank (2008), lower female participation rates are believed to be mainly driven by very low levels of participation of young-rural-unskilled women. Furthermore, according to the same report, most women who are not in the labour force are either in school or undertaking household activities. While, according to Mojsoska-Blazevski et al. (2009), the main factors influencing low participation of women in R. of Macedonia include the tradition and cultural habits in the country, the low level of education and skills, ethnicity in combined with the education, the availability and cost of child care services and care for older family members, labour market discrimination towards females, etc. Mojsoska-Blazevski et al. (2009) further state that young, rural and unskilled females are less likely to be active in the labour market. Another important aspect to consider in this context is women’s participation in the informal economy. As stated by Huyer (2014), the low labour force participation rate of women in the labour market may also indicate a much greater reliance by women on the informal economy. This particular in the case of rural women, and of women with Albanian and Roma origin (Lehman, 2010). Female labour force participation slightly increased during the global economic crisis opposite to what could have been expected. As stated by Avlijaš et al. (2013) this could be understood as a coping mechanism of households facing income shocks by adding a family member to the labour market or replacing a family member who lost their employment. From an educational attainment perspective, female participation in the labour market is highest among women with tertiary education which saw a slight but steady increase until 2010 (89.4%) following a slight decrease in the following years reaching 87.6% in 2013. 60 Journal of Economic and Social Studies �Trends and Challenges of Female Unemployment in the Republic of Macedonia: A Regional Comparative Study Figure 1: Labour Force Participation in R. of Macedonia 2004-2013 by Gender and Level of Education Attained Among Females (%) Source: LFS, State Statistical Office of the R. of Macedonia Compared to Balkan countries in the European Union (Figure 2), data show that R. of Macedonia has had the lowest female labour market participation rate throughout the observed period followed by Croatia and Greece with slightly higher rates. R. of Macedonia lies significantly below the average participation rate of these countries collectively, however noted with the highest increase in rates in the study period with 12.8% followed by Bulgaria with 10.4%. Women in Slovenia are much more active compared to other Balkan countries with an activity rate of 66.6% in 2013, which is 13.9% higher than the R. of Macedonia (52.7%) in the same year. Figure 2: Female Labour Force Participation in Selected Balkan Countries 20042013 (%) Source: LFS, State Statistical Office of R. of Macedonia and Eurostat Volume 6 | Number 2 | Fall 2016 61 �Remzije Rakipi, Shpresa Syla The inactivity rate of females depicted in Figure 3 as a percentage of the total population in R. of Macedonia show that female inactivity is twice as high as male inactivity in the country. Looking at the period 2006-2013, data show that inactivity amongst both females and males is on the way down, but with a very slow and marginal downwards trend and an overall fall of app. 7% in both cases from 2006 to 2013. Figure 3: Inactive Population as a Percentage of the Total Population in R. of Macedonia by Gender (%) Source: Author’s own work based on LFS data, State Statistical Office of the R. of Macedonia According to data, female inactivity in R. of Macedonia is mostly resulting from household responsibilities and secondly as a result of undergoing education and training (Table 1). While, female inactivity in benchmark countries (Table 1) can be explained primarily due to education and training and secondly to retirement; indicating a much older female population in these countries compared to R. of Macedonia. As reported by the World Bank (2008), who has studied female inactivity at sub-group level in R. of Macedonia, the large share of females who are inactive due to household activities can mainly be attributed to a large number of full-time housewives among women who are less educated and live in rural areas. 62 Journal of Economic and Social Studies �Trends and Challenges of Female Unemployment in the Republic of Macedonia: A Regional Comparative Study Table 1: Inactive Female Population - Main Reasons not Seeking Employment in Selected Balkan Countries in 2013 (%) Awaitin Own Other Looking Pursuing Retire Believes Other g recall illness family/ after education/traini d no reason to work or personal children or ng work is s (on lay- disabilit responsibiliti incapacitate availabl off) y es d adults e Bulgaria 0.9 11.9 10.2 13.3 28.4 19.4 11.6 4.2 Greece : 4.3 18.0 7.8 27.7 16.0 2.2 24.0 Croatia 0.5 6.8 17.8 7.3 31.7 26.1 7.7 2.1 Slovenia 0.3 8.9 9.1 3.4 32.6 38.4 3.7 3.5 : 3.1 38.7 11.2 26.8 11.9 5.2 3.1 Macedoni a Source: Author’s own work based on LFS data from the State Statistical Office of R. of Macedonia and Eurostat Female Employment Looking at female employment in the R. of Macedonia in the study period, data show that the female employment rate is slowly but constantly on the rise with an 8.4 p.p. increase from 2004 to 2013. Positive and noteworthy in this context is that no spill-over effects seem to have been observed on both female and male employment following the global economic crisis in 2008/09. On the adverse side, noteworthy is that data show female employment rates to be significantly below male employment rates with a gap of 1.5 time higher male employment rate compared to the female employment rate in 2013. Volume 6 | Number 2 | Fall 2016 63 �Remzije Rakipi, Shpresa Syla Figure 4: Female vs. Male Employment Rates (15-64 years) in R. of Macedonia 2004-2013 (%) Source: Author’s own work based on LFS data from the State Statistical Office of the R. of Macedonia In a semi regional perspective, data show (Table 2) that the R. of Macedonia is not the only country to struggle with low female employment rates. A similar problem is observed in Greece with a slightly higher female employment rate; 39.9% compared to 37.3% in the case of R. of Macedonia in 2013. Looking at the trend over the study period, all countries included in the study have observed increases in female employment except for Greece and Slovenia who registered a decline of 5.6 p.p. and 2.1 p.p., respectively, from 2004 to 2013. The R. of Macedonia is the only country that has observed a relatively consistent increase in rates throughout the study period; reaching an 8.4 p.p. increase from 2014-2013. Table 2: Female Employment Rates (15-64 years) in Selected Balkan Countries 2004-2013 (%) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Macedonia 28.9 30.1 30.7 32.3 32.9 33.5 34.0 35.3 35.3 37.3 Bulgaria 51.6 51.7 54.6 57.6 59.5 58.3 56.4 55.6 56.3 56.8 Greece 45.5 46.0 47.3 47.7 48.6 48.9 48.0 45.0 41.7 39.9 Croatia 47.8 48.6 49.4 51.6 52.7 53.7 52.1 49.5 48.5 48.5 Slovenia 61.3 61.3 61.8 62.6 64.2 63.8 62.6 60.9 60.5 59.2 Source: Author’s own work based on LFS data from the State Statistical Office of R. of Macedonia and Eurostat 64 Journal of Economic and Social Studies �Trends and Challenges of Female Unemployment in the Republic of Macedonia: A Regional Comparative Study Based on available data (since 2006 only), from an educational attainment perspective (Figure 5), female employment in R. of Macedonia shows a decreasing trend for educated women with a 4.2 p.p. decrease from 2006 to 2013. An opposite trend for women with lower levels of education is however observed. Observed data show that female employment amongst women with primary and lower secondary education (levels 0-2) has increased by 18.4% in the study period and 12.8 % in the case of women with upper secondary and post-secondary non-tertiary education (levels 3 and 4). Figure 5: Female Employment Rate in R. of Macedonia by Education 2006-2013 (%) Source: LFS, State Statistical Office of the R. of Macedonia Compared to benchmark countries (Table 3), the R. of Macedonia lies significantly below each of the countries and across all educational levels. While looking specifically at female employment with tertiary education attainment a similar trend is seen with declining rates across all countries, but with Greece experiencing the most notable decline by 14.1 p.p. Opposite to other countries, R. of Macedonia is the only country that has observed an increase from 2006-2013 in female employment amongst lower education levels. Volume 6 | Number 2 | Fall 2016 65 �Remzije Rakipi, Shpresa Syla Table 3: Female Employment Rate by Education (Highest Level Attained) in Selected Balkan Countries (%) 2006 Bulgaria Greece Croatia Slovenia Macedonia Level 0-2 23.6 33.2 27.9 37.5 15.2 Level 3-4 62.6 47.9 54.4 63.5 40.6 2013 Level 5-8 79.7 76.7 79.6 86.6 68.3 Level 0-2 23.7 27.7 23.7 27.2 18.0 Level 3-4 59.2 36.4 50.9 58.8 45.8 Level 5-8 79.1 62.6 75.1 80.8 64.1 Change from 2006 in Percent Point Level Level Level 0-2 3-4 5-8 0.1 -3.4 -0.6 -5.5 -11.5 -14.1 -4.2 -3.5 -4.5 -10.3 -4.7 -5.8 2.8 5.2 -4.2 Source: Authors’ own work based on LFS data from the State Statistical Office of R. of Macedonia and Eurostat One of the ways to boost employment is through fostering entrepreneurship. In this context, R. of Macedonia shows progress. As can be seen from the number of selfemployed females in the country (Table 4), the number is on the rise going from app. 19.500 cases in 2008 to app. 27.900 cases in 2013. Approximately, one third of self-employed females are at the same time also employers, and although this category has increased, the highest increase in the observed study period (20082103) has been observed among self-employed females without employees (app. 6500 persons). The study period has in this case been reduced to include only observed figures from 2008-2013 due to missing data for period 2004 to 2007. Table 4: Female Self-Employment in R. of Macedonia from 2008 - 2013 (in thousands) Self-employment Type/Year 2008 2009 2010 2011 2012 2013 Self-employed Total Self-employed persons with employees (employers) Self-employed persons without employees (own-account workers) 19.5 17.8 20.2 23.9 24.0 27.9 7.1 7.3 8.5 9.1 8.2 9.0 12.4 10.5 11.7 14.8 15.8 18.9 Source: LFS, State Statistical Office of the R. of Macedonia Compared to benchmark countries (Table 5), the R. of Macedonia is the only country with increasing trends throughout the period 2008-2013, while all other countries have had an interruption in their positive trends following 2010; registering decreasing number in both 2011, 2012, and 2013. 66 Journal of Economic and Social Studies �Trends and Challenges of Female Unemployment in the Republic of Macedonia: A Regional Comparative Study Table 5: Female Self-Employment in Selected Balkan Countries from 2008 - 2013 (in thousands) Country/Year 2008 2009 2010 2011 2012 2013 Bulgaria 124.3 121.2 124.9 110.3 103.2 109.2 Greece 370.9 371.7 379.4 368.1 351.8 341.9 Croatia 104.0 104.4 115.6 106.4 90.5 83.4 Slovenia 24.0 24.8 32.0 31.8 30.3 28.9 Macedonia 19.5 17.8 20.2 23.9 24.0 27.9 Source: LFS, State Statistical Office of R. of Macedonia and Eurostat Female Unemployment The female unemployment in the R. of Macedonia stands at a high level, but moving in the right direction (Figure 6). According to data for the observed period, the female unemployment rate shows a decreasing trend and has dropped by 8.8 p.p. in the study period to reach 29% in 2013. This rate coincides with the level of male unemployment in the same year. The Female unemployment has been slightly higher than male unemployment rate until 2010, but on occasions also slightly lower than male unemployment as observed in 2011 and 2012. The discrepancy in gender based unemployment trends in the period 2009-2012 should be seen in light of increased employment in the public sector, and notably in education, which have been favouring women more than men (European Training Foundation, 2013). While labour force participation and employment rates of women are much lower than those of men, unemployment rates are almost equally distributed between the genders. Hence no gender gap is evident. Mojsoska-Blazevski and Kurtishi (2012) argue that this may reflect the relatively high willingness of women to take low-paid, secure public sector jobs, or jobs in newly created small private firms, since by tradition, they are second-income family earners. Volume 6 | Number 2 | Fall 2016 67 �Remzije Rakipi, Shpresa Syla Figure 6: Unemployment rate in Macedonia by gender 2004-2013 (%) Source: Authors’ own work based on LFS data from State Statistical Office of the R. of Macedonia Observed data for 2013 show (Table 6) that R. of Macedonia has the second highest female unemployment rate (29%) compared to the benchmark, surpassed in this context only by Greece (31.6%) who registered a higher female unemployment rate in the same year. Slovenia (11.1%) and Bulgaria (11.9%) represent the two countries in this context with lowest female unemployment rates in 2013. The lowest female unemployment rate in the observed period has been registered in Slovenia in 2008 at the rate of 4.9% and the highest rate in the R. of Macedonia back in 2004, which registered a female unemployment rate approximate six times higher than Slovenia (lowest in 2004) and approximately twice the rate of Greece registering the second highest female unemployment rate in the same year. Looking at the trend in the observed period, all countries have experienced fluctuations in female unemployment rates, and notable fluctuations in the period 2009-2013, due to particular to the spill-over effects of the global economic crisis. The R. of Macedonia is the only country registering an uninterrupted decrease in rates throughout the period. 68 Journal of Economic and Social Studies �Trends and Challenges of Female Unemployment in the Republic of Macedonia: A Regional Comparative Study Table 6: Female Unemployment Rates in Selected Balkan Countries 2004-2013 (%) Country/Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Macedonia 37.8 38.4 37.2 35.5 34.2 32.8 32.2 30.8 30.3 29.0 Bulgaria 11.7 9.9 9.3 7.3 5.8 6.7 9.5 10.1 10.9 11.9 Greece 16.1 15.6 13.9 13.0 11.6 13.4 16.5 21.7 28.4 31.6 Croatia 15.8 14.3 13.2 11.6 10.6 11.0 12.6 14.0 16.3 17.0 Slovenia 6.5 7.2 7.4 6.0 4.9 5.9 7.2 8.3 9.5 11.1 Source: Authors’ own work based on LFS data from State Statistical Office of R. of Macedonia and Eurostat Looking at female unemployment from an age perspective (Figure 7), data clearly suggests that female youth are much more vulnerable to unemployment than other age groups. Although female youth unemployment is showing a decreasing trend (dropped by 9.9 p.p. from 2006 to 2013), it is almost twice as high as females age 25-49 and more than to time higher than females in the 50-64 age group. This can partly be explained by the fact that young people are more vulnerable to economic downturns and the first to be cut from employment. Young people tend to be ‘last in’ and ‘first out’ - last to be hired, and the first to be dismissed. This, together with the challenges they face in making the transition from education and training to the labour market, makes younger generations generally subject to higher rates of unemployment than older generations (United Nations, 2013). Figure 7: Female Unemployment Rate in Macedonia by Age Group (%) Source: Authors’ own work based on LFS data from the State Statistical Office of R. of Macedonia The vulnerability of female youth towards unemployment is according to data (Table 7) a phenomenon applicable for all benchmark countries. Due to missing Volume 6 | Number 2 | Fall 2016 69 �Remzije Rakipi, Shpresa Syla data for 2004 and 2005, the observed period has been reduced to cover only the period 2006-2013. Similar patterns to the R. of Macedonia are observed also in the case of Bulgaria, Greece, Croatia and Slovenia when observing female unemployment rates by age group. The highest female youth unemployment rate in 2006 was observed in R. of Macedonia (60.9%) followed by Greece (34.2%). Although the R. of Macedonia registered a decrease in female youth unemployment in the following years (app. 9.9 p.p.), it still remains among the countries with the highest female youth unemployment rate (51%) compared to the benchmark. Greece observed a great increase in the female youth unemployment rate (app. 30 p.p.) reaching 63.8% in 2013, surpassing thus the R. of Macedonia and registering the highest female youth unemployment among Balkan countries in the EU. Table 7: Female Unemployment Rate by Age in Selected Balkan Countries (%) 15-24 Yrs. Change from 2006 in Percent Point 2006 2013 25-49 50 - 64 15-24 Yrs. Yrs. Yrs. 25-49 50 - 64 15-24 Yrs. Yrs. Yrs. 25-49 50 - 64 Yrs. Yrs. Bulgaria 20.3 8.3 8.3 25.7 11.1 10.9 5.4 2.8 2.6 Greece 34.2 13.2 5.9 63.8 32.0 19.7 29.6 18.8 13.8 Croatia 31.1 12.0 8.6 50.2 16.2 9.6 19.1 4.2 1.0 Slovenia 16.8 6.8 4.3 23.7 10.8 8.2 6.9 4.0 3.9 Macedonia 60.9 35.9 25.1 51.0 27.9 23.1 -9.9 -8.0 -2.0 Source: Authors’ own work based on LFS data from the State Statistical Office of R. of Macedonia and Eurostat Female unemployment in R. of Macedonia, observed from an education attainment perspective (Figure 8), show a decreasing trend over the years for less educated women (Level 0-2), dropping altogether 27.4% from 2006 to 2013. A similar pattern was evident also for level 3-4, which dropped 24.5% in the same period; decreasing from 38.4% in 2006 to 29% in 2013. Whereas, in the case of females with tertiary education (Levels 5-8), an opposite trend is observed throughout the study period with an overall increase of 16.5% (from 23% in 2006 to 26.8% in 2013). 70 Journal of Economic and Social Studies �Trends and Challenges of Female Unemployment in the Republic of Macedonia: A Regional Comparative Study Figure 8: Female Unemployment Rate in R. of Macedonia by Highest Level of Education Attained (%) Source: Authors’ own work based on LFS data from State Statistical Office of the R. of Macedonia Compared to benchmark countries (Table 8), a somewhat different pattern is observed when looking at female unemployment by educational attainment. All countries, except for R. of Macedonia have registered an increase in unemployment rates among women with lower levels of education. Greece and Slovenia have registered the highest increase in the case of education attainment level 0-2 calculated at 18 p.p. and 12.3 p.p. respectively from 2006 to 2013. Greece also stands out when observing levels 3-4 and levels 5-8, registering respectively an increase of 20.9 p.p. and 14.2 p.p. from 2006 to 2013. While, all other benchmark countries have registered more moderate increases across all levels in comparison. Table 8: Female Unemployment Rate by Education (Highest Level Attained) in Selected Balkan Countries (%) 2006 Bulgaria 2013 Level 0-2 Level 3-4 Level 5-8 Level 0-2 Level 3-4 Level 5-8 23.2 8.4 4.1 29.5 11.8 6.4 Volume 6 | Number 2 | Fall 2016 Change from 2006 in Percent Point Level Level Level 0-2 3-4 5-8 6.3 3.4 2.3 71 �Remzije Rakipi, Shpresa Syla Greece 13.8 16.3 10.3 31.8 37.2 24.5 18.0 20.9 14.2 Croatia 14.0 15.2 7.0 21.2 18.5 11.9 7.2 3.3 4.9 Slovenia 7.9 8.9 3.9 20.2 12.3 7.1 12.3 3.4 3.2 Macedonia 45.3 38.4 23.0 32.9 29.0 26.8 -12.4 -9.4 3.8 Source: Authors’ own work based on LFS data from the State Statistical Office of R. of Macedonia and Eurostat According to data presented in Table 9, the number of female unemployment is highest among urban women and more than two times higher than registered rural female unemployed. This is due to particular low activity rates and high inactivity rates among rural females (World Bank, 2008). However, a positive trend is observed. The number of urban female unemployment decreased by app. 9.800 persons from 2008 to 2013, roughly 12%. While, the number of unemployed females in rural areas decreased by 3.7% in the same period (app. 1400 persons). The largest decrease in registered unemployed females in urban areas is noted among females with primary and lower secondary education (in absolute terms), which dropped from 19545 to 11900 (decrease of 7645). To which extend this decrease is related to these women finding employment is subject to further research. Noteworthy in this context is however that opposite to females with lower levels of educations, females with university level education have both in the case of rural and urban women experienced an increase in numbers with registered unemployed rural women with university education going from 2743 in 2008 to 7873. This is an increase of more than 250%. Registered unemployed urban women with university education has increased likewise notably from 10599 in 2006 to 18030 in 2013. Table 9: Number of Unemployed Females in R. of Macedonia by Educational Attainment, Rural vs. Urban, 2008 & 2013 Level of Education Total 2008 2013 Rural Urban Rural Urban 38 686 83 501 37 260 73 665 287 2 300 : 1 358 Without education Incomplete primary and lower secondary education Primary and lower secondary education 2 917 3 920 963 3 063 13 221 19 545 8 849 11 900 3 years of secondary education 5 005 8 622 4 471 6 523 4 years of secondary education 14 309 35 887 14 605 31 365 72 Journal of Economic and Social Studies �Trends and Challenges of Female Unemployment in the Republic of Macedonia: A Regional Comparative Study Higher education 205 2 628 : 1 426 1 University level education 2 743 10 599 7 873 18 030 1) University level education includes: university level education, Master's degree and Doctorate (Ph.D.) Source: Authors’ own work based on LFS data from State Statistical Office of the R. of Macedonia Female unemployment is mostly long-term in nature, as is the case of men (Table 10). Hence, no gender difference is observed in this respect. Due to missing data, the observed period has been reduced to the period 2009-2013. Long-term female unemployment rates have slightly decreased from 2009-2013 by 2.7 p.p. While, the share of long-term female unemployment in total female unemployment is on the rise and increased from 80.8% in 2009 to 82.2% in 2013. Table 10: Long-Term Unemployment by Gender in R. of Macedonia1) % of long-term unemployment 2) Long-term unemployment rate3) 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Women 80.8 82.7 81.0 80.7 82.2 26.5 26.7 24.9 24.5 23.8 Men 82.5 83.7 83.6 83.0 82.7 26.2 26.7 26.6 26.1 24.0 Total 81.9 83.3 82.6 82.1 82.5 26.3 26.7 25.9 25.5 23.9 1) Long-term unemployment - unemployed persons for one year or more. % of long-term unemployment - share of unemployed persons for one year or more in the total number of unemployed persons. 3) Long-term unemployment rate - share of unemployed persons for one year or more in the total labour force. 2) Source: LFS, State Statistical Office of the R. of Macedonia Causes and Challenges of Female Unemployment in R. of Macedonia Gender based unemployment is vastly studied and discussed in literature, and does as such not present a new or unexplored area, and high unemployment levels is rarely attributed to a single factor regardless of the study perspective such as based on gender, age, and so on. Hence, the causes of unemployment are relatively known and widely accepted, and often characterised as being, frictional, structural, voluntary, etc. Having said that, and without going into much detail on this, it is from available Volume 6 | Number 2 | Fall 2016 73 �Remzije Rakipi, Shpresa Syla material clear that limited understanding and research is available to really understand the nature and causes of female unemployment in the specific context of the R. of Macedonia. This area is perceived still as unexplored to the detail that it can be addressed properly and efficiently. Much further research is needed to understand the causes and challenges of female unemployment in the R. of Macedonia, especially from a more holistic perspective including also regional and ethnic disparities given the cultural, religious, and ethnic diversity upon which the R. of Macedonia is founded. However, in general, the high of unemployment in R. of Macedonia, including that of women, can essentially be explained in the absence of significant labour supply constraints and the limited labour demand, stemming especially from the private sector (Micevska, 2008). Although the high level of unemployment among females in the R. of Macedonia can be vastly explained by the general causes of unemployment, the demanding role of women in the household and the difficulty in entering and remaining in the labour market is one aspect that is often underestimated. The World Bank (2013) reported that the opportunity cost of work for most women is higher than their potential wage in the labour market. While this does not explain the reason for the high unemployment in R. of Macedonia, it touches some key aspects hindering women to enter the labour market and actively pursue jobs such as access to child care, pay gaps, etc. Another aspect is the industries/sectors and the field of study often characterising women. Women are i.e. very much underrepresented in the construction industry and in study fields representing this industry, and female employment is vastly oriented towards manufacturing (i.e. garment and textile) and in the human health and social work sectors (World Bank, 2013). While this is a structural issue emphasising skill mismatch, the point herein lies more in the context of the lack, or the type and quality, of career support, orientation, Active Labour Market Measure, etc., rather than on the supply and demand aspects. Hence, the high female unemployment in the country can partly, but rather significantly, be explained also by the failure of the institutional framework governing the labour market to provide the necessary support to unemployed and incentives to stimulate female labour market participation and ultimately employment. While higher education institutions are quite rigid and rather slow or reluctant to adapt to changing industry needs given the high unemployment in general. From a general standpoint, it is clear that in addition to focusing on boosting the economy to create more jobs in areas where women are strong, a deeper recognition that female unemployment is 74 Journal of Economic and Social Studies �Trends and Challenges of Female Unemployment in the Republic of Macedonia: A Regional Comparative Study multidimensional concept with both quantitative and qualitative challenges is imperative to address this issue properly. Conclusions and Recommendations Female labour market indicators show that the Republic of Macedonia is performing poorly in most aspects in comparison to more advanced countries in the Balkan region. More and more women have entered the labour market in the past decade in the Republic of Macedonia, and especially educated women. Still, the female labour force participation is significantly below Balkan countries integrated in the European Union such as Bulgaria, Greece, Slovenia and Croatia; and the female inactivity rates are despite a slow downwards trend still twice as high than that of males in the country. Female employment rates have been on the rise in the study period, but at a much slower pace compared to male employment rated and lies still below most Balkan countries. The increase in female employment is mainly stipulated by increases in employment among lower educated women, while a downward employment trend is observed for women with tertiary education. Female self-employment is on the rise, but still at a very low level to other more developed Balkan countries. Female unemployment in the R. of Macedonia is slowly, but consistently moving in the right direction. The female unemployment rate has dropped by 8.8 p.p. from 2004 to 2013, but remains still at a very high level (at 29% in 2013). The country has the second highest rate compared to benchmark countries, surpassed only by Greece with a higher rate. However, when compared to male unemployment rates in the country, observed data show that no gender gaps seem to exist due to marginal differences in female and male unemployment rates in the study period (20042013). The decreasing trend in female unemployment is mainly witnessed among urban females. Female unemployment is long-term in nature, as observed also with the opposite gender, and a large number of women (app.50%) are unable to enter the labour market due mainly to household responsibilities. Hardest hit by unemployment are especially female youth and lower educated women. Data show a decreasing trend for both categories in the study period, but still both categories display extremely high unemployment rates, especially among female youth. Higher educated women seem to be less vulnerable to unemployment than other categories, but this category Volume 6 | Number 2 | Fall 2016 75 �Remzije Rakipi, Shpresa Syla displays an increasing trend in unemployment which is worrisome as this might be a cause to further discouragement among females to enter labour market in the future or/and pursue higher education. Similar trends are witnessed across the countries compared in the context of higher educated women with Greece and Croatia experiencing higher increases in unemployment rates than R. of Macedonia in this category. However, with opposite trends when observing at lower educated women, where the country is performing much better in the period 2006-2013 comparison to the more developed Balkan countries who have all registered growing unemployment rates in this category. In the case of the R. of Macedonia, a downwards trend is observed in the study period with a decrease of 12.4 p.p. from 2006 to 2013. A high level of complexity is involved in reducing female unemployment and it should be recognized that there is no easy or quick way to do this. Recognition that female unemployment is multidimensional concept with both quantitative and qualitative challenges is imperative to address this issue properly. Further recognition is also needed in terms of the causes and effects of female unemployment in the country. Female unemployment manifests, not only a loss to society in terms of forgone achievement, lost tax income, added expenditure and slower economic growth. Above and beyond all, it causes individual suffering, a loss of personal dignity and material hardship on the part of the jobless and their families which makes it difficult to develop into a socially cohesive society and achieve the kind of sustainability needed to ensure future European integration and general well-being. The Government of the R. of Macedonia should increase efforts to ensure that the institutional framework governing the female labour market addresses and formulates policies and measures in the future in a way that they effectively and inclusively address female employment across all regions and ethnic groups through intervention in key areas impacting female unemployment. Macroeconomic development is the key in this context to ensure job creation, but equally important are also tailored, inclusive, and reasonably funded Active Labour Market Measures (ALMM). To include also promotion and support of female entrepreneurship, reasonable access to child care facilities, improved access to high quality education and training to reduce skills mismatch and the competitiveness of women in the labour market. Key in this context is also the need for improvement of the capacities of the National Employment Agency to be able to better support unemployed females. 76 Journal of Economic and Social Studies �Trends and Challenges of Female Unemployment in the Republic of Macedonia: A Regional Comparative Study References Avlijaš, S., Ivanović, N., Vladisavljević, N., & Vujić, S. (2013). Gender pay gap in the Western Balkan countries: Evidence from Serbia, Montenegro and Macedonia (Research Project). Foundation for the Advancement of Economics Brunnbauer, U. (2000). From equality without democracy to democracy without equality? Women and transition in southeast Europe. South-East Europe Review, 3/2000, 151 – 168. European Training Foundation (2013). Former Yugoslav Republic of Macedonia Review of Human Resources Development. Publications Office of the European Union. EUROSTAT (2015). Labour Force Survey 2014-2013. Retrieved from: http://ec.europa.eu/eurostat/web/lfs/data/database. Huyer, S. (2014). Gender and Climate Change in Macedonia. Report. Third National Communication on Climate Change (TNC). Ministry of Environment and Physical Planning of R. of Macedonia. Kjosev, S. (2007). Unemployment in the Republic of Macedonia - Specifics and possible solutions. Economics and Organization, 4/2, 153 – 160. Lehmann, H. (2010). Macedonia’s Accession to the EU and the Labor Market: What Can Be Learned from the New Member States (Policy Paper). Bonn: Forschungsinstitut zur Zukunft der Arbeit. Micevska, M (2008). The Labour Market in Macedonia: A Labour Demand Analysis. Labour, 22/2, 345–368. Mickovska-Raleva, N. & Dimitrijevska T. (2013). Gender equality in EU: How does Macedonia compare? Center for Research and Policy Making. Mojsoska-Blazevski, N., Najdova, J., Stojkov, A. & Asenov, L. (2009). Labour Market in the Former Yugoslav Republic of Macedonia. A Study for the European Commission Employment. Social Affairs and Equal Opportunities DG. Volume 6 | Number 2 | Fall 2016 77 �Remzije Rakipi, Shpresa Syla Mojsoska-Blazevski, N. (2012). Challenges to successful employment policy in the region: Towards more jobs, quality labour force and greater competitiveness. Discussion Paper for the Western Balkans Investment Framework. Mojsoska-Blazevski, N. & Kurtishi N. (2012). The Macedonian Labour Market: What makes it so different? Journal of Social Policy, 5/.9. State Statistical Office (2008). Labour Force Survey 2008. Retrieved from: http://www.stat.gov.mk/PublikaciiPoOblast_en.aspx?id=3&rbrObl=14. State Statistical Office (2013). Labour Force Survey 2013. Retrieved from: http://www.stat.gov.mk/PublikaciiPoOblast_en.aspx?id=3&rbrObl=14. United Nations (2013). Report of the World Social Situation 2013. Inequality Matters, Department of Economic and Social Affairs. Woman for Economy - Economy for Women (2013). Being a Woman in the Balkans (Project). Southeast Europe and the EU – Leadership Development Programme 2012/13. World Bank (2008). FYR Macedonia Labour Market Profile 2004-2007. Policy Note. Human Development Sector Unit, Europe and Central Asia. World Bank (2013). FYR Macedonia: Gender Diagnostic - Gaps in Endowments, Access to Economic Opportunities and Agency. Poverty Reduction and Economic Management Unit Europe and Central Asia Region. 78 Journal of Economic and Social Studies �Journal of Economic and Social Studies Public Procurement System in Service for Strengthening the Market Economy in Bosnia and Herzegovina Merim Kasumovic University of Tuzla, Bosnia and Herzegovina merim78@hotmail.com Sanela Meholjic-Kalajdzic Foundation for Sustainable Development Bosnia and Herzegovina s.meholjic@hotmail.com Harun Meholjic Elektroprivreda BiH, Bosnia and Herzegovina harunmeholjic@hotmail.com Abstract: Public procurement system in Bosnia and Herzegovina Keywords: Public procurement (BH) is defined by various laws and regulations and is often identified with the legal profession. However, it is actually more significant and relevant for economists and public officials. One of the key challenges remains the application of transparency to the system of public procurement in the context of strengthening market competition in BH, as well as the market economy in general. The research methods applied reveal the market strength of the contracting authorities (buyers) and market competition among suppliers (sellers) in the public procurement market in BH, as measured by their market shares. Based on the research, the connection between the market strength of contracting authorities and the level of development of competition on the public procurement market in BH in the period from 2010 to 2012 was examined in terms of choosing more or less transparent procurement procedures. Volume 6 | Number 2 | Fall 2016 system, transparency, market competition JEL Classification: H57, H44, H41, H76 Article History Submitted: 14 July 2015 Resubmitted: 23 August 2016 Accepted: 31 August 2016 http://dx.doi.org/10.14706/JECOS S16618 79 �Merim Kasumovic, Sanela Meholjic-Kalajdzic, Harun Meholjic Introduction Public procurement market represents one of the key areas for financial interaction of public and private sector. Public procurement regulations are a novelty in domestic legislation. The public procurement system in Bosnia and Herzegovina (BH) is a new system of awarding contracts in public procurement procedures, and it is based on the Act of Public Procurement of BH i (Act), which establishes the rights and obligations of participants in the procurement process as well as the control of public procurement. According to Rička et al. (2008) the purpose of this law is to ensure: (1) the most effective way of using public funds with regard to the purpose and object of the procurement; (2) procurement execution and awarding a public procurement contract that is carried out by contracting authorities in accordance with the procedures established by this act, and (3) contracting authorities will take all necessary measures to ensure fair and active competition among the potential suppliers, by applying equality of treatment, non-discrimination and transparency. The public procurement system in BH has both its theoretical and practical dimensions. While the theoretical dimension is determined by the external environment such as legal, political and economic environment, its practical aspects lie in the accomplishment of various economic goals. – This is important to all countries, especially for countries in development and transition like BH. Just like there is no system that can accomplish all goals, there is no country that can expect that goals of its system will always remain the same. The current objectives of the single public procurement system in BH (Public Procurement Agency, 2010) are: continuous execution of procedures of public procurement and transparent public procurement contract awarding, equality treatment for all participants in procedures of public procurement, encouragement of sustainable market and economic growth and ensuring legal protection at the same time. The European Commission reported that public procurement of goods, services and works, in the European Union in 2010 was estimated at 2.406 billion euros, that is 19.7% from total GDP. The public procurement stake in developing countries was even bigger and ranged from 25% to 30% from total GDP (Knežević, 2007). Therefore, public procurement is considered to be a source of economic growth stimulation, strengthening the private sector and the market economy in general (Rička et al., 2008). Countries in transition accomplish their objectives within different political and economic environments, but their common goal is to establish 80 Journal of Economic and Social Studies �Public Procurement System in Service for Strengthening the Market Economy in Bosnia and Herzegovina an efficient bureaucracy that will support creating politics and manage realization of public procurement in an economical manner, without abuse of power. Economic transition requires that a transparent and efficient system of public procurement has to be placed as a priority, so it can support demonopolisation and privatization (European Commission, 2007). Therefore, we can state that a public procurement system, based on transparency, can be in service of strengthening market competition and private sector development. However, in countries in transition, like Bosnia and Herzegovina, at the beginning stages of a market economy, there are great dangers. Bribes and similar tampering threaten real competition and may discourage and repel domestic and foreign investors, which results in a decrease of growth rate in such countries. Considering the importance and purpose of the public procurement system in BH, the question emerges, how the existing procurement system in BH is applied, and what are its effects in economic terms.That is, whether more transparent procedures for public procurement that strengthen fair market competition are applied, contributing thereby to the strengthening of the market economy in BH, and what are further restrictions on public procurement system which stand in the way of achieving a functioning market economy in Bosnia and Herzegovina? In an effort to find answers to these questions, the subject of research has been defined, and it is reflected in the assessment of theoretical and practical aspects of applying the transparency of public procurement in the context of strengthening the market economy in BH. The overall objective of this paper is to explain the importance of the principle of transparency in the public procurement system, in the context of the creation and growth of a functioning market economy. This is one of the main preconditions for the existence of market competition. Transparency System of Public Procurement in Bosnia and Herzegovina (BH) Public procurement is defined as purchasing goods, services and works by contracting parties in accordance with the rules and regulations of public procurement.They are administrative bodies and enterprises that are subjected to the Law and have to carry out the procedures for public procurement, prior to the conclusion of the public procurement of goods, services and works. Procedures of public procurement and conditions for its execution are also defined by the act, where final decision is made by the contracting authority, depending on the fulfillment of conditions defined by the act. Contract value is estimated by the contracting authority in the beginning of the procedure of public procurement, and Volume 6 | Number 2 | Fall 2016 81 �Merim Kasumovic, Sanela Meholjic-Kalajdzic, Harun Meholjic that value represents the so called value class on the basis of which the types of public procurement procedure to be applied is determined. In the act, there are two categories of value classes: • • primary i.e. domestic value classes – when the contract value is equal or greater then 50.000,00 KM in case of procurement of goods or services, and equal or greater then 80.000,00 KM in case of procurement of works; and international value classes – when contract value is equal or greater then 500.000,00 KM for state authorities or 700.000,00 KM for local authorities and public entities in case of procurement of goods and services, and equal or greater than 2.000.000,00 KM in case of procurement of works. The act establishes five primary procedures for the award of contracts in public procurement, which are equal to or above the primary value class and for international competition (described in Chapter II of the act), as follows: (1) open procedure; (2) restricted procedure with prequalification; (3) negotiated procedure with publication of procurement notice; (4) negotiated procedure without publication of procurement notice; (5) a design contest project. The act provides for the application of two more procedures (as described in Chapter III of the act), as follows: (1) a direct agreement, and (2) the competitive request of quotations, which are applicable to public procurement procedures below the primary value class, or governing contracts of lesser value. The basic principles on which the Act of Public Procurement in BH (Act) is based on, and the EU Directives on public procurement, which the contracting authorities must respect throughout the procurement process are the principles: equal treatment (non-discrimination), transparency, fair and open competition, economy and legality (Rička et al., 2008). The principle of transparency in public procurement procedures demands availability of relevant information to all interested parties, consistent and in a timely manner, via accessible and prevailing medium, at no or at reasonable cost (Public Procurement Agency, 2009). Respect for the principle of transparency is guaranteed by the regulations which are presented in Table 1. 82 Journal of Economic and Social Studies �Public Procurement System in Service for Strengthening the Market Economy in Bosnia and Herzegovina Table 1: Legal regulations that implement transparency requirements LEGAL REGULATIONS Article 11. Article 13. Article 18. Article 19.-20. Article 38. Article 40. Article 41. Article 42. TRANSPARENCY REQUESTS Rules of selection of the public procurement procedures, and in accordance with them, basic and preferential procurement procedure is an open procedure. Contracting authority has the obligation to prepare tender documentation which contains a collection of information on the procurement. Give the tender documentation to interested suppliers. Publication of public procurement notices. Requesting for informing the candidates and tenderers of the decisions made during the procurement procedure. Requesting for the publication of contract award notices. Report about procurement procedure. Archiving documents of the given procurement procedure by the contracting authority. Source: adapted in accordance to EUPPP Manual (European Commission, 2007) However, depending on whether the act established the obligation to perform certain operations or left it as a choice to the contracting authority, public procurement procedures prescribed by the act can be viewed as more or less transparent compared with each other. Pursuant to the provisions of the Act, authors themselves carry out a qualitative analysis of the transparency assessment of public procurement procedures, according to following criteria: whether it is obligatory or not to publish procurement notice and tender documentation, whether it is obligatory or not to publicly display the offers, whether it is obligatory or not, to have a minimum deadline for offer acceptance and minimum number of offers and bidders, and whether the tender documentation is free or not. Authors classified all procedures in three groups: most transparent procedures, less transparent procedures, and least transparent procedures, as it is show on the Figure 1. ii Volume 6 | Number 2 | Fall 2016 83 �Merim Kasumovic, Sanela Meholjic-Kalajdzic, Harun Meholjic Figure 1: Public procurement procedure in BH - transparency assessment MOST TRANSPARENT PROCEDURES LESS TRANSPARENT PROCEDURES LEAST TRANSPARENT PROCEDURES • Open • Limited with prequalification • Negotiated with publication of notices • Negotiated without publication of notices • Competitor request • Direct agreement The transparency of the public procurement system is not an end in itself; it is a mechanism that is used to accomplish a certain goal. Trepte (2006) states that the transparency of the public procurement system is primarily used as a mean to protect economic efficiency, and ensure control by regulator (national or international), of the whole procurement system. Economic efficiency, as a natural result of free market, is based on establishing perfect competition. Therefore, imposition of transparent procedures, defining conditions and specifications in advance and publishing the criteria for selection and awarding the contract, are mechanisms that are used to avoid direct discriminations that could endanger desired competition. Methodological Framework of the Research The empirical part of the research covered dynamic analysis of two research areas: (1) the existing public procurement system in BH, its framework and limitations considering transparency principle; (2) the public procurement market in BH in determining market power of contracting authorities and suppliers by measuring their individual and collective market shares in period from year 2010. to 2012. Theoretical Concept of Empirical Research The research was conducted using secondary research and available statistical data. According to authors' adaptations, the theoretical concept of empirical research is shown in Figure 2, and it states that the most significant factors for competition development in the public procurement market in BH are: scale and structure of 84 Journal of Economic and Social Studies �Public Procurement System in Service for Strengthening the Market Economy in Bosnia and Herzegovina market demand, eventual barriers for entering the market, purchasing power of buyers (contracting authorities), whether or not procedures are transparent and open, and market power of the suppliers. Figure 2. Most significant factors for competition development in public procurement market in BH BEHAVIOR OF CONTRACTING AUTHORITIES IN TERMS OF PRESENCE OF OPEN PROCEDURE market power of seller MARKET COMPETITION DEVELOPMENT ON THE PUBLIC POROCUREMENT MARKET size and structure of demand market power of buyer barriers in attempt to enter the market Authors are considering the correlation between the most significant factors for competition development in the public procurement market in BH (Figure 3), in the way that scale and structure of demand, eventual barriers for entering the market and individual shares of contracting authorities in the public procurement market determine their market power. Market power of buyers determines their behavior in regards to selection of certain public procurement. Their choice of more or less transparent procedures contributes to the decrease or increase of competition in the public procurement market in Bosnia and Herzegovina. In this context, besides the central research hypothesis: increase in transparency of public procurement contributes to the strengthening of market competition in Bosnia and Herzegovina, two backup hypotheses have been established: Volume 6 | Number 2 | Fall 2016 85 �Merim Kasumovic, Sanela Meholjic-Kalajdzic, Harun Meholjic H1: In the case that contracting authorities have more market power, they will utilize less transparent procedures. H2: In the case that contracting authorities have less market power, they will utilize more transparent procedures – open procedures. Figure 3: Correlation between the factors of market competition in the public procurement market in BH Market power of buyers (contracting authorities) Measured by market concentration of five leading buyers (cr5) Behavior of contracting authorities regarding transparency principle ensurance Selection of less transparent procedures Selection of more transparent procedures Market power of suppliers (sellers) Measured by market concentration of five leading suppliers (sellers)(cr5) Market competition For the assessment of contracting authorities regarding their selection of procedures, authors used the data published by the Public Procurement Agency of BH (Agency). Two hundred of the largest contracts, completed in years 2010, 2011 and 2012, and which refer to: the procurement subject description (goods/services/works), the name of the contracting authority and its supplier for each contract, the type of executed procedure and the contract value. The Agency could not deliver the data for the years 2008 and 2009 because data from those years were not representative. Two hundred of the largest contracts that were completed in 2010 and in 2012 represent more than 50% of the total public procurement market in Bosnia and Herzegovina, and in year 2011, 200 of the largest contracts represented just 34.60% of the total market. In other words, 200 of the largest contracts in the year 2010 constituted 51.57% of the total demand, in the year 2011, 34.60%, and in the year 2012 86 Journal of Economic and Social Studies �Public Procurement System in Service for Strengthening the Market Economy in Bosnia and Herzegovina 58.61% of the total demand for goods, works and services in the public procurement market (Table 2). Table 2: Representativeness of samples for examining the market power of participants in the public procurement market TOTAL VALUE OF COMPLETED CONTRACTS 2010 3.469.981.667,61 TOTAL VALUE OF COMPLETED CONTRACTS IN A SAMPLE 1.789.620.514,48 REPRESENTATIVENESS OF THE SAMPLE 2011 3.128.833.371,96 1.082.513.780,32 34,60 % 2012 3.560.468.418,94 2.086.767.392,45 58,61 % 51,57 % Source: adapted from the Public Procurement Agency of BH data Size and Structure of the Public Procurement Market Considering that there are more than 2000 contracting authorities that are subjected to the act of public procurement of BH, and that annual value of public procurement is getting close to 4 billion KM (Public Procurement Agency, 2013),we can state that it is large and important market. Based on data published by the Directorate of Economic Planning of BH(2013), the public procurement share in GDP of BH in the year 2012 was 12.95%. Structure of the public procurement market can be analyzed by the subject of procurement: goods, services and works. During all observed years, in total value of completed contracts of public procurement, the market of the public procurement of goods was the largest. In other words, demand for goods was the largest, while the lesser demand was for works and the least for services. In the European Union as opposed to BH, services were the predominating demand, and in the year 2010 it constituted 42% of all public procurement. While 36% was the demand for work, and goods were in last place, constituting only 22% (European Commission, 2012). Analyzing the sample of 200 of the largest completed procurement of public procurement in BH (Table 3), the major procurement in years 2010 and 2011 was procurement of goods that consisted 54.4% and 74.16% of total public procurements, respectively. In the year 2012, a slightly larger procurement of works was recorded (48.21%) in regard to procurement of goods (40.70%). Volume 6 | Number 2 | Fall 2016 87 �Merim Kasumovic, Sanela Meholjic-Kalajdzic, Harun Meholjic Table 3: Structure of demand with regard to the subject of the procurement in observed sample YEA R GOODS 2010 2011 2012 SERVICES WORKS TOTAL KM % KM % KM % KM % 973.545.490, 04 802.753.121, 10 849.231.383, 10 54,4 0 74,1 6 40,7 0 213.286.929, 33 158.607.096, 00 231.599.765, 66 11,9 2 14,6 5 11,1 0 602.788.095,1 1 121.153.563,2 2 1.005.936.243, 69 33,6 8 11,1 9 48,2 1 1.789.620.514, 48 1.082.513.780, 32 2.086.767.392, 45 100,0 0 100,0 0 100,0 0 Source: adapted from Public Procurement Agency of B&H data Behavior of contracting authorities in BH – public procurement procedure selection All responsibility for adequate implementation of the public procurement system in BH lies with contracting authorities that make the final decision about utilization of a certain procedure (that can be more or less transparent), depending on the fulfillment of the conditions prescribed by law. Therefore, it was necessary to analyze their behavior in the context of ensuring the transparency principle during the selection of the procedures of public procurement. Transparency of public procurement is identified as an independent variable in the central research hypothesis. The following indicators for transparency of public procurement in BH are used: • • Presence of certain procedures in total public procurement; Variations of open negotiation procedures without notice shares in total public procurement. While in the EU transparency in public procurement procedures is rising year in and year out according to data reported by European Commission (2012), in BH transparency is dropping gradually. Data analysis of applied procedures in public procurement, represented in Table 4, has shown an apparent decline of transparency in conduction of public procurement in observed period of time. Open (most transparent) procedure in year 2012 had only 37.13% of the share in total public procurement, while in the year 2008 it had even 91.89% of the share in total public procurement. A procedure opposed to negotiation without publication of notification that is, the least transparent procedure in group of procedures from 88 Journal of Economic and Social Studies �Public Procurement System in Service for Strengthening the Market Economy in Bosnia and Herzegovina Chapter II of the Act, in the year 2008 had the share of 3.99% of total public procurement. Until the year 2012 its share increased to 49% of total public procurement. Variation of open and negotiation procedure without notice shares are presented in Figure 4. Table 4: Public procurement procedures applied in period between 2008. and 2012. Procedures from the Chapter II of the Act YE AR NEGOTIATION PROCEDURE iii Procedures from the Chapter III of the Act COMPETITIVE DIRECT REQUEST AGREEMENT OPEN PROCEDURE LIMITED PROCEDURE 20 08 KM 1.598.03 7.250,83 % 91, 89 KM 62.150.50 0,68 % 3, 15 78.788.985,5 7 3,9 9 KM 191.465.3 28,57 % 9,7 1 KM 41.829.98 1,63 20 09 1.507.30 6.001,68 82, 95 34.806.81 3,94 1, 91 275.141.970, 96 12,9 5 240.465.4 98,04 11, 32 67.093.63 2,79 20 10 1.343.82 1.679,59 38, 73 47.762.31 2,35 1, 38 1.510.857.88 6,84 43,5 4 423.359.6 03,82 12, 2 144.180.1 85,00 20 11 20 12 1.169.51 5.441,01 1.321.88 2.884,64 37, 38 37, 13 18.256.71 0,88 60.962.41 3,53 0, 58 1, 71 1.549.709.73 3,15 1.744.479.03 7,03 49,5 3 49, 00 * * * 355.389.8 73,35 9,9 8 77.754.21 0,10 % 2, 1 2 3, 1 6 4, 1 6 * 2, 1 8 TOTAL PUBLIC PROCUR EMENT KM 1.972.330. 047,28 2.124.813. 917,41 3.469.981. 667,60 3.128.833. 371,96 3.560.468. 418,65 *data not available because the Agency did not publish the report for year 2011. Source: adapted from Public Procurement Agency annual reports (2008, 2009, 2010 & 2012) and Transparency international BH for year 2011 Figure 4: Open and negotiation procedure -variations of shares 100 91,89 82,95 80 60 40 43,54 38,73 37,38 37,13 20 3,99 49,53 49,00 12,95 0 % OPEN PROCEDURE 2008 2009 Volume 6 | Number 2 | Fall 2016 % 2010 NEGOTIATION PROCEDURE 2011 2012 89 �Merim Kasumovic, Sanela Meholjic-Kalajdzic, Harun Meholjic Source: adapted from Public Procurement Agency annual reports (2008, 2009, 2010 & 2012) and Transparency International BH for the year 2011 With the fact that the least transparent procedures (competition request, direct agreement, negotiation procedure without notice) reached almost a 70% share of the total contracts signed, we can say that the behavior of contracting authorities in the context of ensuring transparency principle has failed and that it violates fair market competition. Competition on Public Procurement Market in BH Business strategies of firms affect the structure and organization of the market as well as their own functioning (Sharma and Tomić, 2011). There are many factors that affect shaping of competitive relations between participants on the market: number and size of individual participants on offering and/or demanding side, limitations and possibility of new competitors emergence, spatial distribution of customers and suppliers, greater or lesser homogeneity or differentiation of products, elasticity degree of demand for certain products, etc. (Jurin and Šohinger, 1990). Useful basic indicators of participants’ market power and the market power of their competitors are determining the market shares and level of market concentration of the observed market (Croatian Competition Agency, 2005). The greater the market share of a concentration participant, the greater the probability that such an entrepreneur has market power as well. Term – market power of an entrepreneur can be defined as a long-term ability to sell its products at a higher price than the market price.On the basis of said we can conclude that entrepreneur has significant market power if he is characterized by a large market share and high financial power that enables him to dictate purchase (market) conditions, and to exclude competitors from the market. His market power is greater if he operates on closed market. The entrepreneur with high market power has the ability to act independent of potential and real competitors, customers’ interest, suppliers, and society on the whole. Market competition is identified as an independent variable. It is also a precondition for strengthening market economy in general. For measurement of market competition on the public procurement market in B&H, based on the observed sample, the following indicators were used: • 90 The market shares of customers and sellers Journal of Economic and Social Studies �Public Procurement System in Service for Strengthening the Market Economy in Bosnia and Herzegovina • The market concentration ratio of the five largest buyers/sellers on submarkets of goods, services and works procurement. • The (Non)Existence of buyers/sellers domination on the public procurement market The Market Concentration ratio (CR) is one of the usual measures of market concentration. It shows the total (joint) market share of a relatively small number of the largest entrepreneurs that operate on the same market. The higher the CR is, the market is more concentrated. Considering a number of entrepreneurs whose market share is observed, the market concentration ratio is denoted with CR2, CR3, CR4, etc. A higher ratio of market concentration indicates that market competition has decreased, and vice versa. To measure (non)existence of dominant buyer/seller on the public procurement market in B&H, the following criteria, established by provisions of the competition Act, ivwere used in this paper: • • • A buyer/seller is dominant on the market if it has more than 40% of market shares. Two or three buyers/sellers are dominant on the market if they, together, have more that 60% of the market shares. Four or five buyers/sellers are dominant on the market if they, together, have more than 80% of the market shares. Market Power of Buyers (contracting authorities) On the procurement of goods, the market concentration ratio of five leading suppliers indicates that they have high market power because their total shares (CR5) ranged from 43.58% in the year 2010, 38.9% in the year 2011 and to 40.53% in the year 2012. They do not have a dominant position but they do have significant power on this market. Three enterprises that emerge in five leading suppliers are: coal mines Kreka Tuzla, brown coal mines Kakanj and brown coal mine Banovići. Their cumulative shares are increasing each year, and in year 2012 they were 32.73%. On the procurement of works market, it has been recorded that the market concentration of the five leading suppliers was the highest in regards to market of goods and services. CR5 was 80.03% in year 2010, 37.31 in year 2011, and finally it Volume 6 | Number 2 | Fall 2016 91 �Merim Kasumovic, Sanela Meholjic-Kalajdzic, Harun Meholjic rose to 82.0% in year 2012. In accordance with set criteria, five leading suppliers are dominant in this market. On the market of services procurement, CR5 indicates that market concentration of the five leading suppliers is rising with each year, ranging from 37.58%, over 47.59% to 48.93% in the year 2012. There are no enterprises or group of enterprises that are dominant on this market. Figure 5: Concentration of public procurement of goods, works and services markets in terms of suppliers (CR5 in period from 2010-2012) 2010 2011 82,00 80,03 43,58 38,90 40,53 GOODS 2012 47,59 48,93 37,58 37,31 WORKS SERVICES Source: adapted from Public Procurement Agency data On the overall public procurement market in terms of suppliers, high market concentration has been recorded for the five leading suppliers in year 2012 (CR was 48.12%), which indicates that these five leading buyers have relatively high market power, but not a dominant position. In regards to the market power of the five leading buyers, their market power is significantly lower. Different companies have had the position of the largest supplier in the years 2010, 2011 and 2012: NISKOGRADNJA with a share of 24.27%, Kreka coal mines with a share of 10.36%, and CHV Czech Republic with 33.63% of the share, respectively. Their individual shares are big but these suppliers were not dominant in the overall market. 92 Journal of Economic and Social Studies �Public Procurement System in Service for Strengthening the Market Economy in Bosnia and Herzegovina Results of Empirical Research of the Public Procurement Transparency Impact on Streightening Market Competition in BH Starting from the theoretical concept of empirical research and the relationship between the most significant factors of market competition development, based on the results obtained, it is possible to test the proposed research hypothesis and examine the impact of increasing the transparency of public procurement to strengthen the market competition in BH. Results of the study based on a sample of the 200 largest, completed public procurement contracts in BH in the period from 2010 to 2012 are presented in Table 5, and refer to the information on:  size and structure of demands for goods, works and services,  market concentration of the five leading buyers on the market of goods, works and services,  market concentration of the five leading suppliers on the market of goods, works and services,  the amount of open procedures in the total procurement of goods, works and services. Table 5: Research results INDICATO RS SIZE AND STRUCTU RE OF THE DEMAND IN % MARKET CONCENT RATION OF BUYERS CR5 AMOUNT OF OPEN PROCEDU RES IN % MARKET CONCENT RATION OF SUPPLIERS GOODS PROCUREMENT MARKET WORKS PROCUREMENT MARKET SERVICES PROCUREMENT MARKET 2010 2011 2012 2010 2011 2012 2010 2011 2012 54,40 74,16 40,70 33,68 11,19 48,21 11,92 14,65 11,10 75,83 64,91 75,16 84,32 42,39 95,66 59,28 62,92 64,56 18,45 29,02 18,85 7,98 8,47 14,32 3,57 10,21 2,91 43,58 38,90 40,53 80,03 37,31 82,00 37,58 47,59 48,93 Volume 6 | Number 2 | Fall 2016 93 �Merim Kasumovic, Sanela Meholjic-Kalajdzic, Harun Meholjic CR5 Testing auxiliary hypotheses will be conducted by re-examining the relationship between market power of the largest buyer in the whole public procurement market in BH (Elektroprivreda BiH) and the amount of the open procedures in its procurement, because research shows that the public enterprise "Elektroprivreda BiH" achieved the highest individual share of 26.55%, 38.34% and 55.44% in the period from 2010th to 2012th year Research Results on the Market of Procurement of Goods In the reporting period, a higher demand for goods than for works and services has been recorded. Considering that a high demand for goods offers possibility to make a profit, many suppliers are present on this market, and therefore larger competition is expected. In the reporting period, the highest reported demand for goods was reported in year 2011 and it amounted to 74.16% from total public procurement in BH. High demand resulted in the decreasing of market concentration of the five leading buyers (CR5 was 64.91%). As a result of the decreased market power of buyers in year 2011, the amount of open procedures was highest (29.02%). This contributed to the increase in competition and in final, decreasing of the market concentration of the five leading suppliers to the smallest level in the reporting period (CR5 was 38.90%). This relationship can be seen in Figure 6. Observing this market in the year 2012, when lower demand was recorded than in the year 2011, the market power of buyers increased again, as they used their higher market power to conclude smaller value contracts with open procedure than in the year 2011. That was the reason why the market concentration of five leading buyers increased, i.e. competition on this market was lower. Figure 6: Relationship between market concentration of suppliers, amount of open procedures of total public procurement procedures and market concentration of buyers (period from 2010 to 2012) in % MARKET CONCENTRATION OF BUYERS CR5 AMOUNT OF OPEN PROCEDURES IN % MARKET POWER OF BUYERS CR5 75,83 43,58 72 38,9 18,45 2010 75,16 64,91 29,02 2011 40,53 18,85 Journal of Economic and Social Studies 2012 �Public Procurement System in Service for Strengthening the Market Economy in Bosnia and Herzegovina Source: data from Table 5 The largest buyer, JP Elektroprivreda BiH, acted in accordance with its market power. This buyer had a dominant position in all observed years on the market of goods with shares over 40%. As its market power as a buyer increased, the amount of open procedures in the market decreased, which can be seen in Figure 7. Figure 7: Relationship between the market share of public enterprise “Elektroprivreda BiH” and open procedure on the market 50 45 40 35 30 25 20 15 10 5 0 47,28 45,41 47,37 OPEN PROCEDURE MARKET SHARES 12,4 7,26 2010 2011 7,82 2012 Researching the impact of increasing the transparency of public procurement on strengthening market competition on the commodities market we came to the following conclusions: • With increase in the market power of buyers, the amount of most transparent procedures decreases i.e. transparency of public procurement decreases. Volume 6 | Number 2 | Fall 2016 95 �Merim Kasumovic, Sanela Meholjic-Kalajdzic, Harun Meholjic • With the decrease of public procurement transparency, market concentration of the five leading suppliers increases i.e. market competition decreases. Research Results on the Procurement of Works Market The highest demand for works was reported in year 2012, when it amounted to 48.21% of the total public procurement in BH. As opposed to the commodities marketwhere very high demand for works did not result in an increase of competition between suppliers; on the contrary, the largest market concentration of five leading suppliers has been reported. That year, they had very high market power and dominant position (CR5 was 82%), in accordance to research criteria (Figure 8). Causes of such phenomenon can be found in the undeveloped market of works in which operates a small number of construction companies that have had difficulties surviving in periods of economic crisis. If we add to it barriers that occur with entering the market (licenses, the necessary references, business expenses etc.), high market (negotiation) power of the five leading buyers that have dominant positions on this market (CR5 95.66%), then it is not surprising that the level of market competition is at such a low level. The market power of buyers and suppliers has contributed that amount of open procedures from the total public procurement procedures was merely 14.3% in the year 2012, although values of signed contracts were high. Considering indicators recorded in the year 2011, when the lowest demand for works was recorded (11.19%), it is clear that the market power of buyers (CR5 42.39%) and sellers (CR5 37.31%) was at the lowest level in the observed period. Due to the low presence of open procedure in all the years, especially in 2010 and 2011 when it was about 8%, contracting authorities, applying the least transparent procedures for the award of public works discouraged the entry of new companies into the market and thereby jeopardizing the development of competition and the market economy in general. 96 Journal of Economic and Social Studies �Public Procurement System in Service for Strengthening the Market Economy in Bosnia and Herzegovina Figure 8: Ratio of market concentration of suppliers, representation of the open procedure and market concentration of buyers (period from 2010 to 2012) Source: data from Table 5 Public Enterprise “Elektroprivreda BiH”, which has almost achieved monopoly in the works market in year 2012, with shares of 71.57% in this market acted in accordance with its market power. The lowest level of amount of open procedure (2.54%) in total procurement of this buyer was in year 2012, when their market power was highest (Figure 9). Figure 9: Market share of public enterprise “Elektroprivreda BiH” and open procedure on the works market ratio 80 71,57 70 60 50 MARKET SHARES 40 30 10 0 OPEN PROCEDURE 19,64 20 0,46 1,1 2010 5,13 2011 2,54 2012 Source: Author’s interpretation according to data from Public Procurement Agency of BH Examining the impact of the increase in public procurement transparency on the strengthening of market competition in works market, the following conclusions were made: • Market power of buyers and suppliers is very high – the five leading buyers and suppliers have a dominating position on the market. • Undeveloped market and the existence of real barriers for new companies to enter the market makes the market power of buyers and suppliers even stronger • The very low level of public procurement transparency on this market is a consequence of very a high market power of buyers i.e. their dominant position. Volume 6 | Number 2 | Fall 2016 97 �Merim Kasumovic, Sanela Meholjic-Kalajdzic, Harun Meholjic • The lower the level of public procurement transparency is, the greater is the market concentration of suppliers i.e. lower is the market competition. Results of the Research on Services Procurement Market On the services market, continual growth of the market power of buyers and sellers has been recorded, as well as the percentage of open procedures on observed submarkets (3% - 10%). The market power of the five leading buyers is growing each year because of low demand for services, specific procurement cases and real barriers for new companies to enter this market. The very small percentage of open procedure on this market contributes to the ever growing concentration of the five leading suppliers i.e. weakening market competition. Figure 10: Market concentration of suppliers, percentage of open procedure and market concentration of buyers ratio (period 2010 to 2012) MARKET CONCENTRATION OF SUPPLIERS CR5 AMOUNT OF OPEN PROCEDURES IN % MARKET CONCENTRATION OF BUYERS CR5 59,28 37,58 3,57 2010 62,92 47,59 10,21 2011 64,56 48,93 2,91 2012 Source: Data from Table 5 The classic example of the market power of buyers and the amount of open procedures ratio is the case of largest buyer on the services market, Public Enterprise “Elektroprivreda BiH”. The higher the market share of the buyer was, the smaller the amount of open procedures and vice versa. When the market share of this buyer was at its lowest level (7.34%) the highest percentage of open procedure was recorded (1.87%), which can be seen in Figure 11. 98 Journal of Economic and Social Studies �Public Procurement System in Service for Strengthening the Market Economy in Bosnia and Herzegovina Figure 11: Market share of “Elektroprivreda BiH” and open procedure percentage ratio on services market 16 14,9 14 12 11,65 10 8 OPEN PROCEDURE 7,34 6 MARKET SHARES 4 2 1,87 0,59 0 2010 2011 0,85 2012 Source: Authors' interpretation according to data received from public procurement agency of BH In examining the impact of increased public procurement transparency on strengthening market competition on the services market, following the conclusions can be stated: • • • • Higher market power of buyers and suppliers is continually increasing each year. Undeveloped market and the existence of real barriers for new companies to enter the market additionally strengthens the market power of buyers and sellers. Very low level of public procurement transparency on this market is a consequence for the high market power of buyers. The lower the level of public procurement transparency, the higher the market concentration of suppliers i.e. market competition is weaker. Conclusion Insights into the public procurement system, the market power of contracting authorities and suppliers, measured by their individual and cumulative market shares, as well as insights into their behavior in the context of ensuring transparency principles in public procurement have contributed in drawing one general Volume 6 | Number 2 | Fall 2016 99 �Merim Kasumovic, Sanela Meholjic-Kalajdzic, Harun Meholjic conclusion: the public procurement system in BH can be used as an instrument for strengthening the market economy altogether with the transparency mechanism by contributing to strengthening (free) market competition, because market competition represents foundation of functional market economy. By the scientific research method, it has been determined that there is a high market concentration of five leading buyers and five leading suppliers on the market. That means a lower level of market competition. It has also been determined that public procurement transparency is decreasing. Based on quantitative evidence about the size of market competition on the public procurement market, and quantitative analysis of the transparency system impact on market competition, we can conclude that the research hypothesis has been confirmed and that: increase of public procurement transparency contributes strengthening market competition in Bosnia and Herzegovina. The results of the research give us one more insight: behavior of contracting authorities in terms of ensuring the transparency principle is determined by their market power i.e. higher their market power, measured in market shares the lower the percentage of open procedures in public procurement.“, Intentionally or not, contracting authorities negatively affect the development of market competition and therefore functional economy in BH, by not preferring most transparent procedure - open procedure. Theoretical, methodical and empirical insights on the impact of the public procurement system’s transparency on market competition and the market economy in general, represent an argument for urgent reform of the existing public procurement system that enables contracting authorities to weaken the development of market competition and the market economy in Bosnia and Herzegovina. References Council of Ministers of Bosnia and Herzegovina (2012). Chapter 5: Public procurement. Retrieved from: http://www.dei.gov.ba/dei/dokumenti/uskladjivanje/default.aspx?id=10896&langTa g=bs-BA 100 Journal of Economic and Social Studies �Public Procurement System in Service for Strengthening the Market Economy in Bosnia and Herzegovina Croatian Competition Agency (2005). Instruction on the procedure for the assessment of horizontal enterpreneurs' concentration. 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Elektronske javne nabavke na Zapadnom Balkanu, Evropsko zakonodavstvo, VI (19-22), 37-41. Madžar, L. European Union Competition Policy. Retrieved from: http://www.vps.ns.ac.rs/Materijal/mat12420.pdf Public Procurement Agency of Bosnia and Herzegovina (2009). How to apply the principles of the Article 1 of the Act of the Public Procurement of Bosnia and Herzegovina? Retrieved from: http://www.javnenabavke.ba/index.php?id=16odg&odg=1&jezik=bs Public Procurement Agency of Bosnia and Herzegovina (2010). Development strategy of public procurement system in Bosnia and Herzegovina for the period 2010-2015. Retrieved from: http://www.javnenabavke.ba/index.php?id=03vij&vij=25&jezik=bs Volume 6 | Number 2 | Fall 2016 101 �Merim Kasumovic, Sanela Meholjic-Kalajdzic, Harun Meholjic Public Procurement Agency of Bosnia and Herzegovina (2013). Annual report on contracts concluded in public procurement procedures. Retrieved from http://www.javnenabavke.ba/index.php?id=11izv&izv=21&jezik=bs Rička, Ž., Buza, H., Petričević, S., & Stanarević, M. (2008). Zakon o javnim nabavkama –komentar i primjena. Sarajevo: Revikon. Sharma, S., & Tomić, D. (2011). Mikroekonomska analiza tržišne moći i strateškog ponašanja preduzeća. Zagreb: Mikrorad. Transparency international BH (2012). Public Procurement Act of BH: Monitoring of implementation. Retrieved from: http://ti-bih.org/wp-content/uploads/2012/12/Monitoring-javnih-nabavki-2012.pdf Trepte, P. (2006). EUPPP Manual: Right and EU public procurement policy: Transparency requests. Retrieved from: http://www.javnenabavke.ba/publikacije/pravo_i_politika_javnih_nabavki_eu_bs_hr _sr.pdf i “Official Journal B&H”, number 49/04, 19/05, 52/05, 94/05, 8/06, 24/06, 70/06, 12/09, 60/10 & 87/13. ii Design contest project as one of the possible procedures was excluded from the analysis due to his specific application. iii The Public Procurement Agency in the Annual reports does not publish data of the value of concluded contracts by negotiated procedure with publication of procurement notice and negotiated procedure without publication of procurement notice separately. iv Criteria have been established based on the provisions of Act of Public Procurement of Bosnia and Herzegovina 102 Journal of Economic and Social Studies �Journal of Economic and Social Studies Investigating the Drivers of Choice Behavior in Tourism: Corporate Image, Perceived Risk and Trust Interactions through Reputation Management Mesut Bozkurt Çanakkale Onsekiz Mart University Turkey mesutbozkurt59@hotmail.com Emrah Özkul Kocaeli University Turkey emrahozkul@hotmail.com Abstract: This study examines how reputation management (RM) Keywords: Tourism, reputation activities influence consumers’ choice behaviors. In order to understand the relationship between them the possible consequences of RM activities such as corporate image, consumer trust, and perceived risk were analyzed as the antecedents of consumers’ choice behavior. Specifically, a structural equation model was developed for hypothesized relations between the constructs of the study. Empirical research was conducted using data from 232 individual consumers in Albania (n=109) and Turkey (n=123) to test our conceptual model. The data were analyzed through t-test and structural equation modelling (SEM). The study shows that RM activities obviously determine the constructs of corporate image and consumer trust positively, whereas they affect perceived risk by consumers negatively. The lower level of perceived risk through RM activities was found as a significant determinant of consumers’ choice behavior. Volume 6 | Number 2 | Fall 2016 management, choice behavior, consumer trust, image JEL Classification: M1, M3 Article History Submitted: 13 April 2016 Resubmitted: 5 August 2016 Accepted: 15 September 2016 http://dx.doi.org/10.14706/JECOS S16617 103 �Mesut Bozkurt Çanakkale, Emrah Özkul Introduction In marketing science, psychological processes behind consumer behaviors and preferences are accepted as key determinants based on a vast body of research on their reactions to products, brands and the names of firms. This understanding prescribes that general beliefs about a firm can determine the way in which consumers make their decisions toward the given firm. Also, marketing research mentions that the factor of consumer trust is another important key determinant in the decision making process (Moorman et al., 1992; Chen and Tan, 2004). Both factors are leading parts of the psychological process although objective evaluations such as firm performance and quality of offerings are significant in addition to these two factors. If market players can manage the psychological processes of consumers successfully, then they are able to increase the possibility of being chosen by consumers among many other competitors. This viewpoint builds a practical question for firms: what strategies and activities positively increase consumers’ beliefs and trust toward the firm? This study examines reputation management activities from the perspective of increasing the positive image of any firm and consumer trust to create choice behavior in favor of the firm. Reputation has been defined as the intangible asset expressing the evaluation of a target market on whether the firm is substantially ‘good’ or ‘bad’ (Weiss et al. 1999), and reflects the cumulative knowledge about the past and present acts of the organization (Suh and Amine, 2007). In today’s highly competitive markets, reputation is not a result that appears by itself, and that can be gained by chance. However, it is an organizational value that could be improved by management perspective with long term strategies. In short, creating a good reputation for a firm requires the understanding of strategic marketing management to transform these activities into reputation management. Reputation gained by successful strategic marketing management can be demolished in very short order if the attention is not sustained. Although reputation is an abstract concept, it has a potential to generate concrete values if it is created successfully by any firm. Fombrun (1996) states the meaning of positive reputation perceived by consumers for an organization in terms of competitive advantages as follows: (1) delaying rival mobility in the industry, (2) charging price premium to customers, at least in highly uncertain markets, (3) attracting higher-quality and larger amounts of investments from the stock market, (4) maintaining a high spirit among employees, (5) supporting and enhancing new product introduction and 104 Journal of Economic and Social Studies �Investigating the Drivers of Choice Behavior in Tourism: Corporate Image, Perceived Risk and Trust Interactions through Reputation Management recovery strategies in the event of a crisis (Fombrun & Shanley, 1990; Fombrun, 1996). However, although there is extensive research on reputation management (Weigelt and Camerer, 1988; Fombrun, 1996; Roberts and Dowling, 2002; Cretu and Brodie, 2007), the literature still suffers from a lack of empirical studies that examine whether reputation management activities shift perceived risk by consumers through creating a positive corporate image in the minds of consumers and establishing consumer trust. Therefore, the aim of this study is to explore the relationship between reputation management activities and consumers’ choice behaviors through perceived corporate image, consumer trust, and perceived risk by consumers exposed to the reputation management activities of firms. The knowledge this study generates is expected to contribute to the competitiveness topic of marketing literature by its research model considering the consequences of reputation management activities as the antecedents of choice behavior. The rest of the paper is organized as follows: First, a literature review is presented to recognize the main variables of the study. Second, we present a research model indicating the hypothesized relationships between constructs. Finally, methodology of the research, data analysis and findings will be presented, followed by a conclusion with the limitations of this research study. Literature Review and Development of Hypotheses Reputation Management Intensive competition, the leading feature of today’s markets, forces market players to find various strategic advantages. A widely accepted theory of the resource-based view of the firm (Barney, 1991) points out that valuable, rare, inimitable, and nonsubstitutable resources of firms are essential for stronger and long-term competitiveness. It should be noted that the resources building competitiveness are not related only to production and technical processes such as R&D, efficiency, and cost, but also to managing the general psychology in the marketplace towards the firm. When consumers have negative associations for a firm then market performance of the firm will probably not be independent of them. In other words, what consumers, competitors, and related institutions in the market are saying about the firm is a direct part of market performance since the words have an obvious power to attract and discourage individuals into a given market player. Thus, the Volume 6 | Number 2 | Fall 2016 105 �Mesut Bozkurt Çanakkale, Emrah Özkul reputation of any firm can play as a rare, inimitable, and nonsubstitutable resource in a highly competitive market environment to encourage consumers toward the firm if it can be built successfully. Reputation of a firm, therefore, can be considered to be a psychological antecedent in the consumer decision-making process. It is possible to consider this dimension as a leading strategic resource for the competitive advantage of any firm (Fombrun, 1996; Capozzi, 2005). In this context, the concepts of reputation, reputation management (RM), and reputation management activities attract attention particularly from the management and marketing areas examining the question of how to be competitive (i.e., Roberts and Dowling, 1997; Hutton et al., 2001; Capozzi, 2005; Cretu and Brodie, 2007). Reputation occurs around individuality, or what a person or an organization is known for. In business literature, it is therefore defined as an overall evaluation of the extent to which a firm is substantially “good or bad”, or “positive or negative” (Deephouse, 2000; Roberts & Dowling, 2002). The reputation created for a firm in the marketplace can include real, perceived and incorrect dimensions. Even if it is sometimes incorrect or unreal, the reputation of a firm has the power to influence consumers’ reactions. There is a consensus among academicians that corporate reputation must be purposefully managed rather than driven by chance so that it can contribute to the competitiveness of the firm (Fombrun, 1996; Formbrun and van Riel, 2004; Simoes et al., 2005). Thus, designing specific activities to manage the process of building reputation comes into prominence in strategic behavior. Corporate Image Corporate image is described as the overall impression made on the minds of individuals about an organization (Finn, 1961; Kotler, 1982; Dichter, 1985; Barich and Kotler, 1991). In marketing literature, image is defined as a mental construct processed internally (Crompton, 1979), or as a mental picture of consumers (Dobni and Zinkhan, 1990) for any given offering such as business name, variety of products, package design and quality, and appearance of store. Some empirical evidence in the marketing field clearly shows that the long-term reputation of the seller has been found to be more important than short-term product quality movements (Landon & Smith, 1997). McKnight et al., (1998) report, based on empirical research, that corporate reputation provides the assurance of consumers’ integrity and goodwill. Assurance also helps to increase trust, particularly when the consumers have not had experience before and hence do not 106 Journal of Economic and Social Studies �Investigating the Drivers of Choice Behavior in Tourism: Corporate Image, Perceived Risk and Trust Interactions through Reputation Management have firsthand knowledge of the firm. A typical example provides a valuable insight into this relationship: there is a perceived notion around the world that products processed in China will not have long-life due to not meeting quality standards. Products from China may really be low-quality and it is normally expected that consumers who have experienced these products before will avoid new transactions, but it is not uncommon to observe consumers avoiding Made-in-China products who have not had experience with them before. It is possible to explain this type of consumer behavior with the poor reputation of China in the marketplace. Poor reputation results in poor image in the minds of consumers. It is expected, therefore, that the more positively consumers think about a firm, the more positive their perceptions towards the corporate image. In line with the foundation built above, the following hypothesis is proposed: H1: There is a positive relationship between RM activities and corporate image. Trust From the view of social exchange theory (Blau, 1964; Cook and Emerson, 1978) trust is a leading factor in a relationship between consumers and the firm. The theory emphasizes the importance of human psychology in forming social exchanges. Research proves that lack of trust can directly disrupt the formation of a relationship from the consumer side. Thus, trust can be described as a psychological antecedent for consumer behavior (Garbarino and Johnson, 1999; Ba and Pavlou, 2002; Pavlou and Gefen, 2004). The creation of a positive reputation for the firm through specific and pre-planned activities, and managing the corporate image, can increase the value of intangible assets such as trust (Calantone, Cavusgil & Zhao, 2002). Positive reputation of the firm and brilliant corporate image are expected to function as preceding states for trust in consumer psychology, based on the social exchange theory. Several researchers (Weigelt & Camerer, 1988; Garbarino & Johnson, 1999; Plank, Reid, & Pullins, 1999) report that corporate reputation has a vital role in reducing the uncertainty consumers encounter when they evaluate firms. Positive corporate reputation is based on superior performance over a certain period of time. In other words, positive corporate reputation can lead to creating confidence, and thus Volume 6 | Number 2 | Fall 2016 107 �Mesut Bozkurt Çanakkale, Emrah Özkul increasing the trust (Morgan & Hunt, 1994). Based on the above reasoning we propose that: H2: There is a positive relationship between RM activities and consumer trust. H3: There is a positive relationship between corporate image and consumer trust. Perceived Risk The factor of risk perceived by consumers has been a major question in the marketing discipline since it is considered to be a leading part of human psychology in the decision-making process. Risk is defined as an individual’s or a group’s perceptions of the uncertainty associated with engaging in an activity (Dowling and Staelin, 1994). Bauer (1960) stated this as “the uncertain consequences resulting from purchase”. From this perspective, risk perceptions of consumers arise from potentially negative results of any engagement. Some academicians (Engel, Blackwell, and Miniard, 1986, p. 109) consider perceived risk as “beliefs about the risks associated with product (service) purchase’’. In marketing literature there is a widely accepted classification based on the study of Jacoby and Kaplan (1972) and Kaplan et al.(1974) that includes financial, physical, psychological, performance, and social risk. Greatoresk and Mitchell (1994) identified social risk as “social loss”, and added the sixth category as time risk. Trust and perceived risk are closely interrelated (Mayer et al., 1995). In terms of managerial perspective, consumer trust and positive corporate image lead to more positive perceptions towards the quality of the products, and the firm as a whole. Marketing literature, based on a vast body of empirical evidence, suggests that the mentioned constructs encourage consumers by cutting negative associations about the firm (McKnight et al., 1998; Garbarino and Johnson, 1999; Pavlou and Gefen, 2004; Cretu & Brodie, 2007). In other words, the level of perceived risk can be decreased by increasing the positive clues. The higher the perceptions of risk, the higher the trust needed to facilitate a transaction. When risk is present, a higher level of trust is needed to make transactions possible. That is, consumer trust towards a product or an organization reduces the perceived risk for a specific offering. As a result, the firms attached to positive associations are expected to behave well and avoid negative behaviors, which 108 Journal of Economic and Social Studies �Investigating the Drivers of Choice Behavior in Tourism: Corporate Image, Perceived Risk and Trust Interactions through Reputation Management strengthen customers' perceptions towards lower level perceived risk. Based on this view we hypothesize that: H4: There is a negative relationship between corporate image and perceived risk by consumers. H5: There is a negative relationship between consumer trust and perceived risk by consumers. Choice Behavior Understanding the essential determinants in the process of the evaluation of consumer behavior has been a supreme aim in the field of marketing. It is possible to state that customers’ evaluations towards a product, a brand or the name of the organization are signals of actual choice behavior (Zeithaml, Berry and Parasuraman,1996), based on structural psychology (George and Jones, 1999, p.532) in which human behaviors are described as the activity done consciously. This description also emphasizes the important difference between “behavior” and “motion”. The underlying indication from the discipline of psychology emphasizing the connection between behavior and its antecedents explains specifically that most human behavior is under volitional control (Ryan, 1970). There are different ways of examining choice behavior of consumers in marketing literature. For example, Bloemer and Odekerken-Schröder (2007) examined price insensitivity in the context of choice behavior. Bansal, Irving, and Taylor (2004) investigated consumers’ choice behaviors in the context of switching intentions. On the other hand, Mittal, Kumar, and Tsiros (1999) measured customers' intention to recommend to other people, which can be considered to be an indicator of choice behavior if it is positive. Consumers’ choice behaviors among competing offerings emerge based on maximizing their benefits as it is implied in the explanations from psychology area (Becker, 1990; Tversky and Kahneman, 1981). Lower level of risk perceived by consumers is a direct part of higher benefits. In other words, reducing risk ensures consumers reach more satisfactory results. A rational theory of consumer behavior (Tversky and Kahneman, 1986, 1991) implies that consumers will employ the level of risk they perceive as a cue for their possible satisfaction. From this perspective, perceived risk by consumers is a main indicator in terms of whether they engage with a brand or a firm. In short, the more risk consumers perceive the less choice behavior they exhibit. More specifically, if they perceive relatively higher levels of risk towards Volume 6 | Number 2 | Fall 2016 109 �Mesut Bozkurt Çanakkale, Emrah Özkul a firm, then they are more likely to have the intention not to prefer, switching intentions, negative word-of-mouth and price sensitivity. Based on this view we hypothesize that: H6: There is a negative relationship between perceived risk and choice behavior of consumers. Building on the literature review and the hypotheses developed, the following model emerged as the research model of this study (figure 1). In the research model, five main constructs and the relations between them are examined through hypothesized paths. Figure 1. Conceptual model and hypothesized relations Corporat e – + RM + + Trust Perceive Choice Behavior – – Research Design The research in this study was conducted by employing a quantitative methodology. In this context, a structured questionnaire was developed as the data collection instrument based on a literature review and previous research (e.g., Sirdeshmukh et al., 2002; Selnes and Sallis, 2003; Dowling, 2006). The sample for this survey consisted of customers who were staying at Sheraton Hotels in Tirana, Albania and Istanbul, Turkey, in the period February – April 2009. The survey was limited only to the businessmen segment due to their constant demand for hotel services, and thus their enhanced familiarity. The design of the questionnaire was based on five different constructs examined in this research. As presented in tables 1, 2, 3, 4 and 5, 110 Journal of Economic and Social Studies �Investigating the Drivers of Choice Behavior in Tourism: Corporate Image, Perceived Risk and Trust Interactions through Reputation Management reputation management (RM) activities were measured using the scale adopted from Fombrun (1998) and Fombrun, Gardberg, and Sever (2000). Items for measuring consumer trust were adopted from Selnes and Sallis (2003). The construct of corporate image was adopted from the study of Wu and Petroshius (1987). For the variable of perceived risk, we employed the well-known definition of Engel, Blackwell, and Miniard (1986, p. 109) and the well-established classification of Jacoby and Kaplan (1972) for perceived risk by consumers. And finally, choice behavior was measured using items from Bansal et al., 2004; Mittal et al., 1999; and Zeithaml et al., 1996). All constructs were measured on five-point Likert scales ranging from Definitely agree to Definitely disagree. The overall value of the Cronbach alpha to assess the reliability of the variables was 0.83, indicating a satisfactory level. Methodology The study was conducted between April - July 2015. Albania and Turkey were selected for the realization if the study and research was made in 2 five star hotels in these countries. Albania and Turkey was selected so as to reach data easier and to compare two facilities belonging to same chain in two different countries. Moreover, the reputation of the aforementioned hotel chain is high. Based on these information, country and facility selection was made by intentional sampling among nonstochastic selection methods. However the selection of customers within these facilities was performed by simple sampling method among the probabilistic sampling methods. Data was obtained by the evaluations of 109 participants from the hotel facility in Albania and 123 participants from the hotel facility in Turkey. During the study, certain number of surveys were conducted each month so as to prevent formation of duplicate results. In the data collection stage of the study, as the universe and sample could not be determined clearly and as the obtained data was insufficient, the frame could not be determined clearly. After this study which can be assumed to be pilot, other comparisons may be supported by other studies in which the number of facilities and participants will be higher. Descriptive Statistics In total, 268 usable questionnaires were collected from participants over the course of three months (February – April 2009) in Albania and Turkey simultaneously. Of those gathered thirty-six forms were eliminated (13.4 %) due to excessive amounts of Volume 6 | Number 2 | Fall 2016 111 �Mesut Bozkurt Çanakkale, Emrah Özkul missing data. Thus, 232 forms were coded for data analysis. The distribution of questionnaires analyzed by country is as follows: Respondents from Albania were 109 (47 %) and from Turkey 123 (53 %) of the overall sample. The analysis of demographic characteristics of the sample revealed that most of them were male (169 respondents; 73 %) and in the 45 – 60 age category (171 respondents; 73.7 %). Just over half had a university degree (131 respondents; 56.4 %). Data Analysis and Results Analysis of Differences between Albanian and Turkish Consumers In the first step of the analysis, the collected data were analyzed by employing the SPSS program. A series of independent t-tests were used to determine if differences existed between Albanian and Turkish consumers across the constructs of the research model. Table 1 indicates the differences between the subgroups of the sample in the evaluation of RM activities. Table 1. Mean Differences between Albanian and Turkish Consumers for RM Activities AL TR 4.80 4.61 4.55 t– value -1.83 -1.81 -1.36 4.46 4.22 4.32 0.068 0.071 0.173 3.96 4.67 -2.61 0.015 4.43 4.38 1.81 0.071 4.51 4.77 -1.62 0.103 4.46 4.49 4.71 4.40 -2.47 0.56 0.022 0.510 4.24 4.65 -2.59 0.011 4.79 4.88 4.63 4.70 4.83 4.61 4.29 4.51 4.27 4.52 0.810 3.26 1.87 2.27 1.75 0.412 0.003 0.062 0.025 0.078 Statement’s Average Declaring to provide high quality offerings every time Declaring to provide value-for-money offerings every time Declaring to provide new and innovative offerings every time Declaring that the philosophy shared by all staff is high customer satisfaction Showing its upper-class level through comments in the media Announcing the names of famous guests staying at Sheraton Employing upper-class marketing channels Creating a feeling of a first-class company through specific advertisements Designing an extraordinary building externally Designing an exclusive atmosphere inside the hotel Providing excellent working environment to its staff Equipping its staff with superior qualifications Building high standards in human relations 112 Sig. Journal of Economic and Social Studies �Investigating the Drivers of Choice Behavior in Tourism: Corporate Image, Perceived Risk and Trust Interactions through Reputation Management Hosting and sponsoring eminent art events Hosting many popular meetings (official meetings, society weddings, cocktail parties) Supporting and announcing many societal projects Declaring its environmental responsibility and sensitivity 4.80 4.66 1.82 0.070 4.21 4.79 -2.51 0.014 3.91 4.27 4.48 4.49 -2.38 -1.77 0.017 0.075 Note: The negative t-values mean that Turkish respondents have higher mean scores than Albanian respondents for the related items. The criteria were based on a fivepoint scale, ranging from “1= Definitely agree” to “5= definitely disagree”. The findings of the comparison between Albanian and Turkish groups showed that Turkish consumers had a slightly higherscore but this finding cannot be confirmed by statistical results (p>0.05). Based on the results in table A, no significant difference was found for the evaluation of RM activities. Although Turkish consumers have higher scores, Albanian consumers also have very positive overall evaluations towards the firm’s RM activities. It should be noted that the largest difference was found in the “designing exclusive atmosphere inside the hotel” (p< 0.01), indicating one of the lowest scores from the Turkish group at 4.29 that means very positive. This means that both groups in different countries have similarly positive perceptions for RM activities of the firm. While analyzing the relationships among the constructs across the research model, the second construct is determined as corporate image. Table 2 reports the view of the corporate image from the respondents’ evaluations. Table 2. Mean Differences Between Albanian and Turkish Consumers for Corporate Image AL TR 4.41 4.48 4.77 4.33 4.44 t– value 1.74 1.80 1.66 2.21 -0.67 Average Has a pleasant atmosphere A well-known brand Has high quality goods and services Well-managed firm 4.61 4.62 4.90 4.82 4.41 0.078 0.073 0.104 0.028 0.498 Has polite staff Has consumer-oriented staff Attracts upper-class customers Means prestigious Exclusive firm 4.33 4.22 4.76 4.60 4.88 4.68 4.31 4.28 4.12 4.36 -1.72 -0.86 2.10 1.99 2.14 0.081 0.397 0.036 0.039 0.033 Statement’s Volume 6 | Number 2 | Fall 2016 Sig. 113 �Mesut Bozkurt Çanakkale, Emrah Özkul Note: The negative t-values mean that Turkish respondents have higher mean scores than Albanian respondents for the related items. The criteria were based on a fivepoint scale, ranging from “1= Definitely agree” to “5= definitely disagree”. Table 2 shows that there is no significant difference between Albanian and Turkish consumers for the evaluations towards CI of the firm. Both groups are seen to have very positive assessments. In comparison with those of Albanian consumers, Turkish consumers had slightly lower scores but this was not confirmed statistically (p > 0.05). Similarly, in both groups the most positive evaluation was reported on the item the firm is a well-known brand (mean scores: 4.90 and 4.77, respectively). For the Albanian group, clearly it is possible to see the reflections of CI since they ranked the item it is an exclusive firm as second highest (4.88). Also, in the Turkish group, it should be noted that overall scores for CI items are above 4.00. The largest difference existed between the groups on the firm has high quality goods and services, which means that the former had much more positive views than the latter (p < 0.05). However, the mean value of the Turkish group for this item can also be considered rather positive (4.33). The data obtained from the sample of this study in two different countries clearly prove a brilliant CI for the firm in the minds of respondents. Table 3. Mean Differences between Albanian and Turkish Consumers for Trust* Statement’s AL TR Average I trust that S is competent at what it is doing I feel that S is trustworthy. I feel that S is honest in fulfilling its promises I think that S is very responsive to customers. I believe that S will respond with understanding in the event of problems 4.59 4.89 4.81 4.70 4.33 4.22 4.42 4.41 4.13 4.19 4.68 4.72 tvalue 1.73 1.81 3.31 2.12 -1.77 -1.87 Sig. 0.081 0.070 0.001 0.034 0.076 0.064 Table 4: Mean Differences between Albanian and Turkish Consumers for Perceived Risk* Statement’s AL TR Average 4.40 4.65 In S, facing offerings that are not value-for-money is a serious risk. (R) 4.32 4.60 114 tvalue 1.82 1.91 Sig. 0.068 0.063 Journal of Economic and Social Studies �Investigating the Drivers of Choice Behavior in Tourism: Corporate Image, Perceived Risk and Trust Interactions through Reputation Management Satisfactoriness of physical environment in S is a serious risk. (R) It is a serious risk that the goods and services offered by S can be inadequate in order to meet my needs (R) 4.45 4.62 4.12 4.71 Staying at S can create unhappiness in my inner world (R) 4.76 4.81 If I say to friends that I prefer S, they may condemn me (R) 4.38 4.53 1.94 2.31 1.35 1.79 0.062 0.024 0.177 0.071 Table 5: Mean Differences Between Albanian and Turkish Consumers for Choice Behavior * Statement’s AL TR Sig. 4.12 4.05 4.37 tvalue 1.57 1.80 1.93 Average I will prefer S in the future. I will consider S the first choice at which to stay. I don’t think that the other brands will provide clearly better offerings. It is a low possibility that I will replace S with a competitor. 4.25 4.13 4.58 4.11 4.07 1.86 0.062 4.18 3.99 1.74 0.081 0.074 0.073 0.058 * Note: The negative t-values mean that Turkish respondents have higher mean scores than Albanian respondents for the related items. The criteria were based on a five-point scale, ranging from “1= Definitely agree” to “5= definitely disagree”. R: Reverse coded. The findings of the comparison between Albanian and Turkish consumers for the dimension of trust are presented in Table 3. Based on average scores from the subgroups of the sample, a statistically significant difference was not reported by significance level (p > 0.05) for t-values computed (1.73). Respondents both in Albania and Turkey seem similar to each other in terms of trust towards Sheraton (grand mean values: 4.59 and 4.42, respectively). The largest difference between the groups was observed for the item I feel that Sheraton is trustworthy, which means Albanian respondents clearly had much more positive attitudes in favor of Sheraton than the respondents in Turkey (mean values: 4.81 and 4.13, respectively). Based on the grand mean values, it is possible to state that the sample as a whole clearly has the feeling of trust towards the firm. Table 4 provides the results of perceived risk by respondents towards the firm, Sheraton. The results reveal that there were no significant differences between the Volume 6 | Number 2 | Fall 2016 115 �Mesut Bozkurt Çanakkale, Emrah Özkul mean scores except one item on risk for inadequacy of offerings to meet individual needs (p < 0.05). It is important to note that this part of the scale measuring perceived risk towards the firm was established with five reverse coded items. The negative signs of the t-values indicate less perceived risk by Turkish respondents than Albanians. However, the mean scores of Albanians can be considered as a strong indicator that they perceive risk at minimum levels towards the firm. Likewise the grand mean scores for both groups report the similarity statistically (t-value: - 1.82 and p > 0.05). This result shows that the respondents both in Albania and Turkey are sure about the standards of the firm, and thus they do not worry about the firm and its offerings. Table 5 summarizes the data obtained from the sample on their choice behavior. According to the results shown in table 5, overall the items were assessed similarly by Albanian and Turkish respondents. These four items all have a probability value that is more than .05. Grand mean scores for both groups (4.25 and 4.12, respectively) did not produce statistically significant differences (t-value: 1.57 and p > 0.05). The mean scores ranged from 4.11 to 4.58 in the group of Albanians, and from 3.99 to 4.37 in the Turkish group, indicating a strong loyalty or very positive choice intention in the future. These findings indicate that respondents preferred the firm, Sheraton, consciously at present and clearly they have a tendency to maintain this behavior. The overall analyses of responses through five t-test operations point out the obvious resemblance between Albanian and Turkish respondents towards the given stimuli. It should be noted that those stimuli are the main constructs within the research model of this study. It is possible, therefore, to put together the subgroups of the sample while analyzing the research model rather than conducting separate analyses. Analysis of the Research Model This study was designed to understand the effects of the factor of reputation management that target markets consider when they prefer a brand or a firm rather than its competitors. In this study, a structured model related to the variables assumed to be influential on choice behavior of consumers was tested by employing Structural Equation Modeling (SEM). The structure, composed of the relationship of four assumed constructs to one main dependent variable (choice behavior) constitutes the model of the study to be tested. As mentioned before, the reliability 116 Journal of Economic and Social Studies �Investigating the Drivers of Choice Behavior in Tourism: Corporate Image, Perceived Risk and Trust Interactions through Reputation Management coefficient of the overall scale was computed as Cronbach alpha ; 0.83. Data analysis involves evaluation of the measurement model and the structural model. The Evaluation of the Overall Model For the overall model, the Chi-square value was found significant as 514.93 with 233 degrees of freedom. This value is not unusual for larger sizes of sample (Doney and Cannon, 1997). The ratio of Chi-square to degree of freedom is 2.21, which is adequate statistically for the fit of the model. Although the values of GFI (0.93) and AGFI (0.92) are lower than those of CFI (0.97), NFI (0.93) and NNFI (0.94), it is accepted that CFI values above 0.95 are suggestive of a meaningful model (Hu and Bentler, 1999). The fit indices calculated here with RMSEA (0.058) and SRMSR (0.073) can be considered as adequate. All related indices are summarized in Table 6. Table 6: Goodness-of-fit summary Fit indices Values Χ2 Ratio ( Χ2/ df ) GFI AGFI NFI NNFI CFI Standardized RMSR RMSEA 514.93 2.21 .93 .92 .93 .94 .97 .07 .06 GFI, Goodness of fit index; AGFI, Adjusted Goodness of fit index; NFI, BentlerBonett normed fit index; NNFI, Bentler-Bonett non-normed fit index; CFI, comparative fit index; RMSR, root mean squared residual, RMSEA, root mean squared error of approximation. Measurement Model The quality of the model was assessed on unidimensionality, convergent validity, reliability and discriminant validity (see Table 7). The unidimensionalityof each construct in the model was analyzed with principal component analysis that reveals the appropriate items loaded at least 0.60 on the hypothesized components. A good overall model fit has provided support for convergent validity of the scale through all Volume 6 | Number 2 | Fall 2016 117 �Mesut Bozkurt Çanakkale, Emrah Özkul loadings that were significant (p < 0.05). Many of the R2 values have exceeded 0.50 proposed by Fornell and Larcker (1981). On the other hand, reliabilityof the measurement model was analyzed based on the values of composite reliability that should be greater than the benchmark of 0.70 to be considered adequate (Fornell and Larcker, 1981). As indicated in table 7, all the reliability values are above 0.70, revealing adequate reliability. Discriminant validity was tested by confirmatory factor model in which correlations between constructs were constrained to one. Chi-square differences were significant throughout the model (p < 0.01). The model of the study, therefore, is proper to be applied for understanding the relationships between the constructs given with the support of reliability, convergent validity, discriminant validity and unidimensionality. Table 7. Measurement Model Reputation Management Activities (Fombrun, 1998; Fombrun, Gardberg, and Sever , 2000 ) 118 1. Declaring to provide high quality offerings every time 2. Declaring to provide value-for-money offerings every time 3. Declaring to provide new and innovative offerings every time 4. Declaring that the philosophy shared by all staff is high customer satisfaction 5. Showing its upper-class level through comments in the media 6. Announcing the names of famous guests staying at S 7. Employing upper-class marketing channels 8. Creating a feeling of first-class company through Composite reliability Variance Explained Loading R2 0.77 0.72 0.88 0.74 0.81 0.63 0.76 0.55 0.89 0.74 0.72 0.52 0.67 0.63 0.92 0.48 0.42 0.79 Journal of Economic and Social Studies �Investigating the Drivers of Choice Behavior in Tourism: Corporate Image, Perceived Risk and Trust Interactions through Reputation Management Corporate Image (Wu and Petroshius 1987) specific advertisements 9. Designing an extraordinary building externally 10. Designing exclusive atmosphere inside the hotel 11. Providing excellent working environment to its staff 12. Equipping its staff with superior qualifications 13. Building high standards in human relations 14. Hosting and sponsoring eminent art events 15. Hosting many popular meetings (official meetings, society weddings, cocktail parties) 16. Supporting and announcing many societal projects 17. Declaring its environmental responsibility and sensitivity 1. Has a pleasant atmosphere 2. Well-known brand 3. Has high quality goods and services 4. Well-managed firm 5. Has polite staff 6. Has consumer-oriented staff 7. Attracts upper-class customers 8. Means prestigious 9. Exclusive firm 1. I trust that S is competent at what it is Volume 6 | Number 2 | Fall 2016 0.76 0.91 0.83 0.78 0.62 0.66 0.55 0.79 0.81 0.63 0.78 0.58 0.66 0.46 0.62 0.42 0.72 0.52 0.63 0.42 0.72 0.52 0.81 0.63 0.70 0.51 0.84 0.68 0.73 0.93 0.52 0.83 0.89 0.74 0.82 0.63 0.90 0.77 0.79 0.56 0.73 0.52 119 �Mesut Bozkurt Çanakkale, Emrah Özkul Trust (Selnes and Sallis, 2003) Perceived Risk (Engel, Blackwell, and Miniard,1986; Jacoby and Kaplan,1972) Choice Behavior (Bansal et al., 2004; Mittal et al., 1999; Zeithaml et al., 1996) 120 doing 2. I feel that S is trustworthy 3. I feel that S is honest in fulfilling its promises 4. I think that S is very responsive to customers 5. I believe that S will respond with understanding in the event of problems 1. In S, facing offerings that are not value-for-money is a serious risk (R) 2. Satisfactoriness of physical environment in S is a serious risk (R) 3. It is a serious risk that the goods and services offered by S can be inadequate in order to meet my needs. (R) 4. Staying at S can create unhappiness in my inner world. (R) 5. If I say to friends that I prefer S, they may condemn me (R) 1. I will prefer S in the future 2. I will consider S the first choice at which to stay 3. I don’t think that the other brands will provide clearly better offerings 4. It is a low possibility that I will replace S with a competitor 0.85 0.72 0.91 0.79 0.82 0.63 0.71 0.52 0.75 0.55 0.70 0.51 0.89 0.83 0.69 0.88 0.74 0.74 0.64 0.51 0.92 0.79 0.83 0.64 0.84 0.66 0.94 0.83 0.88 0.74 Journal of Economic and Social Studies �Investigating the Drivers of Choice Behavior in Tourism: Corporate Image, Perceived Risk and Trust Interactions through Reputation Management Structural Model The estimates and hypothesis results are summarized in Table 8. Furthermore, figure 2 also provides the complete model with the path estimates. The model explained 62 – 74 % of the variance (R2 scores). Overall, the research model accounted for 74 % of the variance of choice behavior. Table 8: Structural Model of RM Activities on CI, CT, PR and CB Parameter (Paths) RM Activities Corporate Image H1 (+) RM Activities Consumer Trust H2 (+) Corporate Image Consumer Trust H3 (+) Corporate Image Perceived Risk H4 (–) Consumer Trust Perceived Risk H5 (–) Choice Behavior H6 (–) Perceived Risk Estimates Hypothesis Squared Multiple Correlations for Structural Equations Corporate Image Consumer Trust Perceived Risk Choice Behavior 0.793* 0.678* 0.423** - 0.447** - 0.763* - 0.872* Estimates 0.71 0.62 0.66 0.74 * p < 0.001 ** p < 0.01 Volume 6 | Number 2 | Fall 2016 121 �Mesut Bozkurt Çanakkale, Emrah Özkul Figure 2. SEM Analysis of the Research Model Corporate 0.79* Image - 0.44** 0.42** RM 0.68* Consumer Trust Perceived - 0.76* Choice Behavior - 0.87* R2 0 74 * p < 0.001 , ** p < 0.01 As seen in table 8, all proposed relationships between the constructs of the model were supported by the statistical results. The standardized estimates of the structural parameters (i.e., RM activities corporate image and consumer trust, and corporate image consumer trust) prove that consumers’ evaluations toward RM activities positively influence the view of corporate image in their minds (see table 8, r: .79 and p < 0.001). Similarly, RM activities to be exposed clearly determine consumer trust positively towards the firm that organized RM activities (r: .68 and p < 0.001). These outcomes confirm H1, in that positive evaluations of consumers towards RM activities of the firm lead to positive corporate image in their minds. Also, the hypothesis H2 was confirmed by the results, in that positive evaluations of consumers towards RM activities lead to higher levels of trust towards the firm in consumer psychology. It is possible, therefore, to state that RM activities organized by firms have a direct influence on both the appearance of the firm in the marketplace, and inner evaluation processes consumers activate. Thus, RM activities of firms have a power to create doubled effect on consumers’ decision making process as external and internal stimuli. Consumer trust is also positively influenced by corporate image, as hypothesized in H3 (r: .42 and p < 0.01). This confirmation for H3 shows that positive corporate image in the minds of consumers plays a supportive role to enhance the feeling of 122 Journal of Economic and Social Studies �Investigating the Drivers of Choice Behavior in Tourism: Corporate Image, Perceived Risk and Trust Interactions through Reputation Management trust in consumer psychology. Therefore, RM activities have both direct influences on consumer trust, and indirect influences on it through corporate image. H4 and H5 investigate the impact of corporate image and consumer trust on the factor of perceived risk. The standardized estimates of the structural parameters reveal that corporate image has a significant effect on perceived risk, but in a negative direction (r: - .44 and p < 0.01). In other words, perceived risk by consumers for a given firm is negatively influenced by corporate image in the mind of consumers. That is, the more positive corporate image consumers assume the less perceived risk they have. Also, the results confirm H5, in that a higher consumer trust toward a firm leads to a lower perceived risk by consumers (r: - .76 and p < 0.001). Thus, perceived risk by consumers is influenced significantly by the two variables in a negative direction, as hypothesized in the research model. Comparing the values of the two coefficients, it appears that consumer trust has greater influence on perceived risk by consumers than corporate image. The analyses of the hypotheses obviously point out that perceived risk by consumers is a significant determinant on their choice behavior (r: - .87, p < 0.001), in support of H6. Perceived risk seems to have a negative impact on choice behavior of consumers, just as hypothesized at the beginning of the research. Based on this test result, one can infer that higher perceived risk will result in lower choice behavior. Thus, it is possible to say that in order to increase the positive attitude toward choice of a firm’s offerings, perceived risk should be cut off through enhancing consumer trust based on RM activities. Overall, all the parameters are significant in the research model. According to Chin (1998), in order for coefficients to be considered meaningful they should be above the value 0.2. In our research model all parameters were computed between 0.42 – 0.87, indicating considerable impact. Moreover, all the structural relationships are in the hypothesized direction (table 8). These findings strongly support the positive relationships between RM activities and corporate image created in the minds of consumers and consumer trust in the psychological structure (figure 2), negative relationships between corporate image - consumer trust and perceived risk, and then a negative relationship between perceived risk and choice behavior. These results are not only consistent with the findings of previous studies (e.g. Benjamin and Podolny, 1999; Keh and Xie, 2008) but also with our expectations of associated relationships among the constructs. Volume 6 | Number 2 | Fall 2016 123 �Mesut Bozkurt Çanakkale, Emrah Özkul Conclusion This paper aims to understand the role of RM activities on consumers’ choice behaviors. Drawing on the literature for reputation management and behavioral intentions of consumers, this research study theoretically develops and empirically measures a model analyzing the effects of RM activities toward the evaluations of consumers and then choice behavior. In conclusion, choice behavior of consumers can be predicated as a dependent variable with a rate of 74 % through antecedent constructs triggered by RM activities. Empirical results clearly reveal that perceived risk by consumers plays a determinative role in the process. Therefore, we should especially focus on how to minimize perceived risk through RM activities. It is possible to say that RM activities influence consumers’ decision making processes with indirect effects by enhancing corporate image and creating trust. The empirical results of this study show that perceived risk can be decreased by increasing consumer trust and positive corporate image based on RM activities of firms. Thus, if firms organize specific RM activities (i.e. making high-volume and continuous commitments to the market for superior customer satisfaction, announcing the famous people preferring the offerings of the firm, sponsoring important events in social life) strategically and systematically, this will function in building positive judgments resulting in lesser perceived risk and finally in more positive tendencies to prefer any given firm’s offerings. We note that the findings of this study should be assessed together with some specific limitations. First, the data required were collected from actual customers of a firm within its business atmosphere rather than in an unrelated place. However, designing a research activity in Sheraton was a result of the difficulties of reaching consumers for examining the reflections of RM activities of any firm. Second, although all hypotheses are supported, the findings of this study were generated from the customers of only one firm. 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(1996), The behavioral consequences of service quality, Journal of Marketing, 60 (2), 31−46. 130 Journal of Economic and Social Studies �Romina ALKIER, University of Rijeka, CROATIA Fatih DEMIROZ, Florida International University, USA Teoman DUMAN, International Burch University, BOSNIA AND HERZEGOVINA Ugur ERGUN, Epoka University, ALBANIA Sanel HALILBEGOVIC, International Burch University, BOSNIA AND HERZEGOVINA Veli KRECI, South East European University, REPUBLIC OF MACEDONIA Muharem KARAMUJIC, University of Sarajevo, BOSNIA AND HERZEGOVINA Mehmet ORHAN, International Burch University, BOSNIA AND HERZEGOVINA Esref RASIDAGIC, International Burch University, BOSNIA AND HERZEGOVINA Iqtidar Ali SHAH, College of Applied Sciences, OMAN Dževada ŠUŠKO, University of Zenica, BOSNIA AND HERZEGOVINA Volkan ULKE, Suleyman Sah University, TURKEY � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3630 Title A name given to the resource FULL BOOK of 6.2. issue Author Author Journal of Economic and Social Studies, Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Book PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/f959626773c98ae0371651747320af30.pdf d5c242399564ec1dbb26467f03920995 PDF Text Text 1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo Functional Categories in the L2 Acquisition of English Morpho-Syntax: A Longitudinal Study of Ten Farsi-Speaking Children Dr. Mohsen Mobaraki Assistant Philosopher, Department of linguistics, Birjand University of Birjand Iran, Mohsenmobaraki@yahoo.com Elaheh Mohammadpour MA student in Linguistics of Birjand University elahehmohammadpour@gmail.com Abstract:There has been considerable debate during the last several decades regarding child and adult second language acquisition of morpho-syntax. This is a longitudinal case study of ten Farsi-speaking children learning English. The research deals with the initial state and further development in the child second language (L2) acquisition of syntax regarding the presence or absence of functional categories, as well as the role and degree of L1 influence in this regard. Some studies in the field of child L1 acquisition are discussed to determine similarities or differences between child L1 and child L2 acquisition. Examining data collected from the children‘s speech over a period of 9 months, the competing claims of the two most prominent hypotheses about early L2 grammars are tested: Vainikka & Young-Scholten‘s (1996) Minimal Trees/Structure Building hypothesis and Schwartz & Sprouse‘s (1996) Full Transfer/Full Access hypothesis. Word order, suppliance of copula be are investigated and the conclusion is reached that functional categories are absent at thei nitial state and that they emerge without the learners‘ reliance on their L1, consistent with Minimal Trees/Structure Building. Introduction There has been considerable debate during the last several decades regarding child and adult second language acquisition of morpho-syntax in a naturalistic environment to find the source of knowledge responsible for the developmental stages observed in the data provided from the learners in those studies. While all these hypotheses of initial second language (L2) acquisition claim that the initial state is a specific grammar involving the first language (L1) grammar, the existence of functional categories in the learners‘ initial state productions, the extent of L1 involvement in the process of L2 acquisition, the reason behind the omission of verbal inflection and use of nonfinite forms in finite contexts, and the morphology/syntax relationship are among those issues left unresolved. The present research is based on L2 English data collected longitudinally from ten L1 Farsi children to investigate the mechanisms involved in the learners‘ development. The data will be discussed in the light of some of the studies discussed in child and adult second language acquisition syntax. This study has a twofold target. It primarily hopes to be able to show which of the adult second language hypotheses is on the right track with regard to the issues mentioned through comparing the results of the present study with those of all these studies. Moreover, the results of this study determine the similarities and differences between child L1 and child L2 acquisition. Whereas numerous studies have been carried out on L1 and adult L2 acquisition, research on child L2 acquisition seems to be scarce. One of the first approaches regarding the second language (L2) acquisition based on structural linguistics and behaviourist psychology was Contrastive Analysis Hypothesis (CAH). In 1957, Robert Lado claimed that individuals tend to transfer the forms and meanings, and the distribution of forms and meanings of their L1 to the L2 both productively when attempting to speak the language and to act in the culture, and when attempting to grasp and understand the L2. These ideas have proved to be influential in the field of second language acquisition (SLA) although the applicability of contrastive analysis hypothesis is nowadays under question. The linguistics part of this hypothesis dealt with providing a comprehensive description of particular languages based on the utterances made by the native speakers of that language. The psychological aspect of the theory was based on the logic that the acquisition of the L1 involves the formation of a set of habits acquired through linking language forms and meanings via reinforcement. Many researchers have doubted the plausibility of the basic ideas of the CAH for not being able to accurately predict transfer phenomena in L2 acquisition. The inability of CAH to accurately predict transfer phenomena in L2 acquisition led researchers in late 1960s and early 1970s to change their attitudes regarding transfer and pay most of their attention to staged development and cross-learner systematicity. 955 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo The L2 morpheme acquisition order studies on L2 children by Dulay & Burt (1973, 1974), and on L2 adults by Bailey, Madden & Krashen (1974) inspired by the same work on L1 acquisition by Brown (1973), were among the first studies related to staged development and systematicity. Refinements in linguistic theory within the framework of Government and Binding (GB) (Chomsky 1981, 1986a, 1986b) have had considerable impact on the areas of L1 and L2 acquisition. Different proposals have been offered in this area regarding the properties of Universal Grammar (UG) which are believed to constrain all languages. Within a generative framework, Chomsky defines UG as the systems of principles, conditions and rules that are elements or properties of all human languages (Chomsky, 1972).The terms principles and parameters theory, however, have become more popular in recent years as this conveys the unique central claim of the theory that language knowledge consists of principles universal to all languages and parameters that vary from one language to another. Acquiring language means learning how these principles apply to a particular language and which value is appropriate for each parameter (Cook & Newson, 1996). Linguists motivate UG by pointing to the end result of language acquisition, arguing that there is no way that adult grammar is acquired in its complexity without some kind of prior knowledge (Hornstein & Lightfoot, 1981). White (1989) points out that this prior knowledge can not be the input that children are exposed to in the course of acquisition for the reasons that input underdetermines the final grammar, it is often degenerate and it doesn‘t contain negative evidence. For such reasons, language acquisition is often described in terms of a projection problem, a logical problem, or a learnability problem. This means that there is a mismatch between the primary linguistic input or data and ultimate attainment. The proposed solution to this problem is that the final grammar must be mediated by Universal Grammar. UG provides constraints on acquisition stages without necessarily explaining why stages occur in the order that they do (White 1989). Under the most recent version of generative syntax, the Minimalist Program (Chomsky 1995, 2000, 2001), the role of syntax is reduced to Merge and Move operations and in a perfect language the features are mostly semantic or phonetic. Although Minimalism may in itself be desirable, the development of the Minimalist Program has resulted in a situation where there is in effect no established theory of syntax. On the one hand, because many of the fundamental assumptions of the previous version of the theory, Government-Binding Theory, are being questioned by Minimalism, the working syntactician cannot freely continue to maintain the old assumptions, but on the other hand, the new theory is not sufficiently developed to be usable, nor does its future usability appear promising in the area of language acquisition (Vainikka & Young-Scholten, 2006). This study, as a result, does not adopt minimalism as a theory of syntax and works in the domain of Government and Binding. In spite of similarities between L1 and L2 acquisition in terms of the acquisition task, considerable differences have been proposed indicating that L1 and L2 acquisition is different as far as UG is concerned. These differences, according to White (1989), are degree of success attained by L1 versus L2 learners, the role of mother tongue for L2 learners, input, and age. In L2 acquisition, learners are faced with a similar task to that of L1 acquirers, namely the need to arrive at a system accounting for L2 input. L2 Learners are also faced with complex and subtle properties of grammar that are underdetermined by the L2 input (Schwartz & Sprouse 2000; White 1985, 1989). There are many proposals regarding the acquisition of functional categories in child language. According to the maturational hypothesis, child grammars initially project only lexical categories and functional categories develop aturationally (Guilfoyle & Noonan 1992, Lebeaux 1989, Ouhalla 1991, Platzack 1990, Radford 1990, Tsimpli 1992). Syntactic properties related to functional categories are absent in the speech of children and early grammars are different from adult grammars. Radford‘s (1990, 1992, 1995) ‗small clause‘ hypothesis is based on this hypothesis. Within the generative framework, syntactic categories are divided into lexical and functional categories (Abney, 1987). Lexical categories include nouns, verbs, adjectives, prepositions and their projections (NP, VP, PP & AP), and contribute to the meaning of the sentence whereas functional categories refer to determiners, inflections as well as complementizers (DP, IP, CP) and deal with the grammar of the language. The Strong Continuity hypothesis, argues that child grammars have the same structure as the adult one (Boser, Lust, Santelmann & Whitman 1992; Hyams, 1992; Pierce, 1992; Pinker, 1984; Poeppel & Wexler, 1993). According to the weak continuity/gradual development hypothesis (Clahsen, Eisenbeiss & Penke 1996; Clahsen, Eisenbeiss & Vainikka 1994; Vainikka 1993/1994), functional categories are not initially available and emerge gradually via interaction between input and X-bar theory. As far as the nonavailability of functional categories is concerned, this hypothesis is similar to the maturation hypothesis, however, in weak continuity the functional categories develop gradually (see truncation hypothesis in 2.8.2). The child starts with a grammar containing only lexical categories and functional categories emerge developmentally in a way that VP is acquired first followed by IP which is then followed by CP (Clahsen et al.1994). Methodology Collecting data from children is a challenging and demanding activity which requires patience and accuracy. The investigator should make the data collection a pleasant task for the children to feel comfortable while 956 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo being studied. The questionsshould be related to their interests and free of repetitions. If the children are given lots of input regarding a specific structure through repetition, their production will likely e unnatural and based on memorization. There should be, on the other hand, enough production by the learners of a construction under study since a small number of productions can not be a good indication of the subjects‘ underlying grammars related to that structure (Cox, 2005). This contradiction makes data collection a difficult task. The English data in this study is based on oral production gathered longitudinally from ten Farsi-speaking children(range of their ages was 4-6) who at the start of data collection had not been exposed to English. At school there was a teacher responsible for working with elementary students. They had three-hours sessions per week for six months during which the teachers gave them some pictures to describe or ask questions. Data collection started on 20 February 2010 which is about 50 days after the learners‘ exposure to English, and the learners can be considered as being in their initial states of L2 acquisition. This study is different from some child L2 studies (e. g. Grondin & White, Lakshmanan & Selinker) based on data being collected relatively long after initial exposure. The data were collected for 9 months. Audio-recordings were made roughly once a week, but sometimes every other week or even once a month when the assistants were away. Recording would start after five or ten minutes of greetings and warm-up. Each recording varied in length from 90 to 120 minutes. 41 samples were audio-recorded, transcribed and analyzed. Discussion Farsi is an Indo-European language. The standard analyses of Farsi show that VP is always head final both in main clauses (1) and embedded clauses (2) and it has a SOV word order (Mahootian, 1997). When a prepositional phrase is present it typically occurs between the subject and direct object, therefore, a more complete description of constituent order is S PP O V. Verbs are marked for tense and aspect and agree with the subject in person and number and the subject is derivable from bothagreement marking on the verb and from pragmatic clues in the discourse and can be empty. Although Persian is verb-final at the sentential level, it behaves like headinitial languages in noun phrases and prepositional phrases. The head noun in an NP is often followed by the modifiers and possessors and the preposition precedes the complement NP. Sentences in Farsi are negated by attaching the negative prefix næ-/ne- to the left of a main verb or a copula or the beginning of the verbal part of the compound verbs. Early production of copulas shows the nature of early stages of L2 acquisition. Copula be is among the first verbs appearing in the earliest production of subjects mostly in the form of It’s a…., It is a…… . (1)It‘s a flower. It is a duck. Despite the high frequency of these two forms, a high percentage of copulas were non-target-like (inappropriate use, lacking consistent agreement with the subject), which may indicate the unanalyzed nature of early copulas. Although copula is is used in obligatory contexts, there are also many is used out of context. (2)Where is the cup? It is a cat. The researcher devised the following categorization for an accurate picture of the subjects‘ copula be acquisition. The produced copulas are divided into correct suppliance, incorrect suppliance, and missing. To clarify the categorization, an example is given for every category: Correct suppliance: How many are they? - They are two horses Incorrect suppliance: What are they?- Its are animal. Missing: Where is the monkey? The monkey on the lap. The counting procedure for copula adopted in this study is to divide the number of correct suppliance copulas by the total production for it. For convinience the number and percentage of the production of copula be is represented in form of graphs. 957 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo 958 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo 959 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo 960 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo Conclusion In this study the acquisition of English morpho-syntax by ten Farsi-speaking children has been examined in light of different proposals on child and adult L2 acquisition. Here I will review the main findings of this study while comparing them with the general theoretical issues discussed in the literature to find plausible answers for the questions raised in this study. The first issue addressed in this study to provide an answer for is the acquisition of functional categories. Despite Haznedar (1997, 2001, 2003) and FT/FA proponents who take suppliance of a morpheme as the evidence of underlying grammar, following Hawkins (2001) the present study shows that the mere suppliance of morphemes is not indicative since a morpheme may also be used in a context where it should not have been. Although copula as an INFL-related element is found in learners‘ early productions, these copulas are missing when the subjects are lexical, oblique or null. This shows how rote-learned the nature of early copulas is, where the nominative subject and the following copula are memorized as a chunk and a small change in the form of the utterance leads to the omission of copula. Although the results of this study also show the copula (as trigger for IP projection) is more productive than other morphemes (-ed, -s, -ing), the nature of these structures makes them more difficult for learners in the initial stages. Following Zobl & Liceras (1994) and Hawkins (2001) the present study explains late emergence of auxiliary be compared to copula by proposing that complex selectional requirements of auxiliary be make it more difficult to produce. The degree of L1 transfer is the second question raised in the abstract. To see whether the headedness of functional categories is transferred from the L1, the learners‘ negative utterances were taken into consideration. The verbal negation marker in Farsi, just like in English, precedes the lexical verb, where Farsi also has a head-initial NegP. Looking at the early utterances with negative thematic verbs produced by the learners, we see that they produce structures which violate the headedness parameter of Farsi and English NegP since there is no specific order at the earliest stages and the position of the negative marker is determined by the meaning of the verb rather than the syntactic position of the verb. This can be especially noticed in Farsi compound verbs which consist of an element (noun, adjective or preposition) followed by a light verb such as the verbs do, give or hit among others. In these structures, the verb loses its original meaning and joins the preverbal element to form a new verb. In all early negative compound verbs, the negative marker follows the verb, which shows that these verbs have not been identified by the learners as verbs. This, above all, means that early L2 structures are only lexical and the lexical meaning of the verb plays an important role in the syntactic position of the elements. This provides counter evidence for Full Transfer/Full Access hypothesis of Schwartz & Sprouse (1996), which claims the entire L1 grammar constitutes the initial states of L2 acquisition. This also argues against Haznedar (1997) who claims that Erdem transfers the headedness of NegP from his L1 Turkish. Assuming that NegP is a functional projection, the present study supports Minimal Trees Hypothesis of Vainikka & Young-Scholten which argues for the mere transfer of lexical categories. It was found that in line with some of the studies mentioned in the domain of child L1 English (Radford, 1990) and adult L2 (structure building of V & Y-S, 1994, 1996a, b, and modulated structure building of Hawkins, 2001), the results of the present study show that child L2 acquisition is similar to child L1 and adult L2 at least with regard to the absence of functional categories in the initial stages. 961 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo References Abney, S. (1987). The English noun phrase in its sentential aspects. Unpublished doctoral dissertation, Massachusetts Institute of Technology, Cambridge. Bailey, N. Madden, C. & Krashen, S.D. (1974). Is there a ‗Natural Sequence‘ in adult second language learning? Language learning, 24(2):235-243. Boser, K., Lust, B., Santelmann, L. & Whitman, J. (1992). The syntax of CP and V2 in early child German: The Strong Continuity Hypothesis. Proceedings of NELS 23, (ed.). K. Broderick, 51-65. Amherst: GLSA. Brown, R. (1973). A First Language: The early stages. Cambridge: Harvard University Press. Chomsky, N. (1972). Language and Mind. New York: Harcourt, Brace & Jovanovich. Chomsky, N. (1981). Lectures on Government and Binding: the Pisa lectures. Dordrecht: Foris. Chomsky, N. (1986a). Knowledge of Language: Its Nature, Origin, and Use. New York: Praeger. Chomsky, N. (1986b). Barriers. Cambridge, Mass.: MIT Press. Chomsky, N. (1995). The Minimalist Program. Cambridge, MA: MIT Press. Chomsky, N. (2000). Minimalist inquiries: The framework In R Martin, D Michaels and J Uriagereka (eds.) Step by Step: Essays in Minimalist Syntax in Honor of Howard Lasnik. Cambridge, MA: MIT Press. pp. 89155. Chomsky, N. (2001). Ken Hale: A Life in Language. Cambridge, MA: MIT Press. Clahsen, H., Eisenbeiss, S. & Penke, M. (1996). Lexical learning in early syntactic development. In H. Clashen (ed.). Generative Perspective on Language Acquisition. Amsterdam: John Benjamins. PP. 129-160. Clahsen, H., Eisenbeiss, S. & Vainikka, A. (1994). The seeds of structure: A syntactic analysis of the case marking. In T. Hoekstra & B.D. Schwartz, (eds.). Language Acquisition Studies in Generative Grammar. Amsterdam: John Benjamins. Cook, V.J. & Newson, M. (1996). Chomsky’s Universal Grammar: An Introduction, Oxford: Blackwell. Cox, M. (2005). L2 English morpheme acquisition order: The lack of consensus examined from a case study of four L1 Chinese pre-school boys. Working Papers in Educational Linguistics, 20(2):59-78. Dulay, H.C. & Burt, M.K. (1973). Should we teach children syntax? Language Learning, 23:245-258. Dulay, H.C. & Burt, M.K. (1974a). Natural sequences in child second language acquisition. Language Learning, 24:37-53. Dulay, H.C. & Burt, M.K. (1974b). Errors and strategies in child second language acquisition. TESOL Quarterly, 8:129-136. Grondin, N. & White, L. (1996). Functional categories in child L2 acquisition of French. Language Acquisition, 5:1-34. Guilfoyle, E. & Noonan, M. (1992). Functional Categories and Language Acquisition. Canadian Journal of Linguistics, 37:241-272. 962 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo Hawkins, R. (2001). Second language syntax. A Generative Introduction. Oxford, Blackwell. Haznedar, B. (1997). Child second language acquisition of English. A Longitudinal Case Study of a TurkishSpeaking Child, PhD dissertation, University of Durham, UK. Haznedar, B. (2001). The acquisition of the IP system in child L2 English. Studies in second language acquisition, 23:1-39. Haznedar, B. (2003). The state of functional categories in child second language acquisition: evidence from the acquisition of CP. Second Language Research, 19:1-41. Hornstein, N. & Lightfoot, D. (1981). Introduction. Explanation in Linguistics: The Logical Problem of Language Acquisition, (ed.) N. Hornstein & D. Lightfoot, 9-31. London: Longman. Hyams, N. (1992). The genesis of clausal structure. In Jùrgen M. Meisel (ed.). The Acquisition of Verb Placement. Dordrecht, Kluwer. 371-400. Lakshmanan, U. & Selinker, L. (1994). The status of CP and the tensed complementizer that in the developing L2 grammars of English. Second Language Research 10:25-48. Lebeaux, D. (1989). Parameter-setting, the acquisition sequence, and the form of the grammar: The composition of phrase structure. Paper presented at GLOW. Utrecht. Mahootian, S. (1997). Persian descriptive grammar. Routledge. Ouhalla, J. (1991). Functional categories and parametric variation. London: Routledge. Pierce, A. (1992). Language Acquisition and Syntactic Theory: A comparative analysis of French and English child grammars. London/ Dordrecht/Boston: Kluwer. Pinker, S. (1984). Language Learning and Language Development. Cambridge, Mass: Harvard University Press. Platzack, C. (1990). A grammar without functional categories: A syntactic study of early Swedish child language. Nordic Journal of Linguistics, 13:107-126. Poeppel, D. & Wexler, K. (1993). The Full Competence Hypothesis of clause structure in early German. Language, 69:1-33. Radford, A. (1990). Syntactic Theory and the Acquisition of English Syntax. Oxford: Basil Blackwell. Radford, A. (1992). The acquisition of morphosyntax of finite verbs in English. In Meisel, J., (ed). The acquisition of verb placement. Dordrecht: Kluwer, 1-22. Radford, A. (1995). Children: Architects or Brickies? In D. MacLaughlin & S. McEwen (eds.). Proceedings of BUCLD 19:1-19. Schwartz, B.D. & Sprouse, R.A. (1996). L2 cognitive states and the Full Transfer/Full Access model. Second Language Research 12(1):40-72. Schwartz, B.D. & Sprouse, R.A. (2000). When syntactic theories evolve: Consequences for L2 acquisition research. In J. Archibald (ed.). Second Language Acquisition and Linguistic Theory. Oxford: Blackwell. PP. 156-186. Tsimpli, I.M. (1992). Functional Categories and Maturation: The Prefunctional Stages of Language Acquisition. University College London Working Papers in Linguistics, 3:128-198. Vainikka, A. (1993/94). Case in the development of English Syntax. Language Acquisition, 3: 257- 325. 963 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo Vainikka, A. & Young-Scholten, M. (1996a). Gradual development of L2 phrase structure. Second Language Research, 12(1):7-39. Vainikka, A. & Young-Scholten, M. (1996b). The early stages in adult L2 syntax: Additional evidence from Romance speakers. Second Language Research, 12(2):140-176. Vainikka, A. & Young-Scholten, M. (2006). Minimalism vs. Organic Syntax. In S. Karimi, V. Simiian and W. Wilkins. Clever and right linguistic studies in honor of Joseph Emonds. Dordrect: Kluwer. White, L. (1985). The Pro-drop Parameter in adult second language acquisition. Language Learning, 35:47-62. White, L. (1989). Universal Grammar and Second Language Acquisition. Amsterdam: John Benjamins. 964 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 562 Title A name given to the resource Functional Categories in the L2 Acquisition of English Morpho-Syntax: A Longitudinal Study of Ten Farsi-Speaking Children Author Author Mobaraki, Mohsen Mohammadpour, Elaheh Abstract A summary of the resource. There has been considerable debate during the last several decades regarding child and adult second language acquisition of morpho-syntax. This is a longitudinal case study of ten Farsi-speaking children learning English. The research deals with the initial state and further development in the child second language (L2) acquisition of syntax regarding the presence or absence of functional categories, as well as the role and degree of L1 influence in this regard. Some studies in the field of child L1 acquisition are discussed to determine similarities or differences between child L1 and child L2 acquisition. Examining data collected from the children‘s speech over a period of 9 months, the competing claims of the two most prominent hypotheses about early L2 grammars are tested: Vainikka & Young-Scholten‘s (1996) Minimal Trees/Structure Building hypothesis and Schwartz & Sprouse‘s (1996) Full Transfer/Full Access hypothesis. Word order, suppliance of copula be are investigated and the conclusion is reached that functional categories are absent at thei nitial state and that they emerge without the learners‘ reliance on their L1, consistent with Minimal Trees/Structure Building. Date A point or period of time associated with an event in the lifecycle of the resource 2011-05 Keywords Keywords. Conference or Workshop Item PeerReviewed P Philology. Linguistics https://omeka.ibu.edu.ba/files/original/b1a2c478e1b6f3c68818edb20075966d.pdf 216ab1213baf3f7cfb771ffe9ab39fa3 PDF Text Text 1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo 960 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo Conclusion In this study the acquisition of English morpho-syntax by ten Farsi-speaking children has been examined in light of different proposals on child and adult L2 acquisition. Here I will review the main findings of this study while comparing them with the general theoretical issues discussed in the literature to find plausible answers for the questions raised in this study. The first issue addressed in this study to provide an answer for is the acquisition of functional categories. Despite Haznedar (1997, 2001, 2003) and FT/FA proponents who take suppliance of a morpheme as the evidence of underlying grammar, following Hawkins (2001) the present study shows that the mere suppliance of morphemes is not indicative since a morpheme may also be used in a context where it should not have been. Although copula as an INFL-related element is found in learners‘ early productions, these copulas are missing when the subjects are lexical, oblique or null. This shows how rote-learned the nature of early copulas is, where the nominative subject and the following copula are memorized as a chunk and a small change in the form of the utterance leads to the omission of copula. Although the results of this study also show the copula (as trigger for IP projection) is more productive than other morphemes (-ed, -s, -ing), the nature of these structures makes them more difficult for learners in the initial stages. Following Zobl & Liceras (1994) and Hawkins (2001) the present study explains late emergence of auxiliary be compared to copula by proposing that complex selectional requirements of auxiliary be make it more difficult to produce. The degree of L1 transfer is the second question raised in the abstract. To see whether the headedness of functional categories is transferred from the L1, the learners‘ negative utterances were taken into consideration. The verbal negation marker in Farsi, just like in English, precedes the lexical verb, where Farsi also has a head-initial NegP. Looking at the early utterances with negative thematic verbs produced by the learners, we see that they produce structures which violate the headedness parameter of Farsi and English NegP since there is no specific order at the earliest stages and the position of the negative marker is determined by the meaning of the verb rather than the syntactic position of the verb. This can be especially noticed in Farsi compound verbs which consist of an element (noun, adjective or preposition) followed by a light verb such as the verbs do, give or hit among others. In these structures, the verb loses its original meaning and joins the preverbal element to form a new verb. In all early negative compound verbs, the negative marker follows the verb, which shows that these verbs have not been identified by the learners as verbs. This, above all, means that early L2 structures are only lexical and the lexical meaning of the verb plays an important role in the syntactic position of the elements. This provides counter evidence for Full Transfer/Full Access hypothesis of Schwartz & Sprouse (1996), which claims the entire L1 grammar constitutes the initial states of L2 acquisition. This also argues against Haznedar (1997) who claims that Erdem transfers the headedness of NegP from his L1 Turkish. Assuming that NegP is a functional projection, the present study supports Minimal Trees Hypothesis of Vainikka & Young-Scholten which argues for the mere transfer of lexical categories. It was found that in line with some of the studies mentioned in the domain of child L1 English (Radford, 1990) and adult L2 (structure building of V & Y-S, 1994, 1996a, b, and modulated structure building of Hawkins, 2001), the results of the present study show that child L2 acquisition is similar to child L1 and adult L2 at least with regard to the absence of functional categories in the initial stages. 961 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo References Abney, S. (1987). The English noun phrase in its sentential aspects. Unpublished doctoral dissertation, Massachusetts Institute of Technology, Cambridge. Bailey, N. Madden, C. & Krashen, S.D. (1974). Is there a ‗Natural Sequence‘ in adult second language learning? Language learning, 24(2):235-243. Boser, K., Lust, B., Santelmann, L. & Whitman, J. (1992). The syntax of CP and V2 in early child German: The Strong Continuity Hypothesis. Proceedings of NELS 23, (ed.). K. Broderick, 51-65. Amherst: GLSA. Brown, R. (1973). A First Language: The early stages. Cambridge: Harvard University Press. Chomsky, N. (1972). Language and Mind. New York: Harcourt, Brace & Jovanovich. Chomsky, N. (1981). Lectures on Government and Binding: the Pisa lectures. Dordrecht: Foris. Chomsky, N. (1986a). Knowledge of Language: Its Nature, Origin, and Use. New York: Praeger. Chomsky, N. (1986b). Barriers. Cambridge, Mass.: MIT Press. Chomsky, N. (1995). The Minimalist Program. Cambridge, MA: MIT Press. Chomsky, N. (2000). Minimalist inquiries: The framework In R Martin, D Michaels and J Uriagereka (eds.) Step by Step: Essays in Minimalist Syntax in Honor of Howard Lasnik. Cambridge, MA: MIT Press. pp. 89155. Chomsky, N. (2001). Ken Hale: A Life in Language. Cambridge, MA: MIT Press. Clahsen, H., Eisenbeiss, S. & Penke, M. (1996). Lexical learning in early syntactic development. In H. Clashen (ed.). Generative Perspective on Language Acquisition. Amsterdam: John Benjamins. PP. 129-160. Clahsen, H., Eisenbeiss, S. & Vainikka, A. (1994). The seeds of structure: A syntactic analysis of the case marking. In T. Hoekstra & B.D. Schwartz, (eds.). Language Acquisition Studies in Generative Grammar. Amsterdam: John Benjamins. Cook, V.J. & Newson, M. (1996). Chomsky’s Universal Grammar: An Introduction, Oxford: Blackwell. Cox, M. (2005). L2 English morpheme acquisition order: The lack of consensus examined from a case study of four L1 Chinese pre-school boys. Working Papers in Educational Linguistics, 20(2):59-78. Dulay, H.C. & Burt, M.K. (1973). Should we teach children syntax? Language Learning, 23:245-258. Dulay, H.C. & Burt, M.K. (1974a). Natural sequences in child second language acquisition. Language Learning, 24:37-53. Dulay, H.C. & Burt, M.K. (1974b). Errors and strategies in child second language acquisition. TESOL Quarterly, 8:129-136. Grondin, N. & White, L. (1996). Functional categories in child L2 acquisition of French. Language Acquisition, 5:1-34. Guilfoyle, E. & Noonan, M. (1992). Functional Categories and Language Acquisition. Canadian Journal of Linguistics, 37:241-272. 962 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo Hawkins, R. (2001). Second language syntax. A Generative Introduction. Oxford, Blackwell. Haznedar, B. (1997). Child second language acquisition of English. A Longitudinal Case Study of a TurkishSpeaking Child, PhD dissertation, University of Durham, UK. Haznedar, B. (2001). The acquisition of the IP system in child L2 English. Studies in second language acquisition, 23:1-39. Haznedar, B. (2003). The state of functional categories in child second language acquisition: evidence from the acquisition of CP. Second Language Research, 19:1-41. Hornstein, N. & Lightfoot, D. (1981). Introduction. Explanation in Linguistics: The Logical Problem of Language Acquisition, (ed.) N. Hornstein & D. Lightfoot, 9-31. London: Longman. Hyams, N. (1992). The genesis of clausal structure. In Jùrgen M. Meisel (ed.). The Acquisition of Verb Placement. Dordrecht, Kluwer. 371-400. Lakshmanan, U. & Selinker, L. (1994). The status of CP and the tensed complementizer that in the developing L2 grammars of English. Second Language Research 10:25-48. Lebeaux, D. (1989). Parameter-setting, the acquisition sequence, and the form of the grammar: The composition of phrase structure. Paper presented at GLOW. Utrecht. Mahootian, S. (1997). Persian descriptive grammar. Routledge. Ouhalla, J. (1991). Functional categories and parametric variation. London: Routledge. Pierce, A. (1992). Language Acquisition and Syntactic Theory: A comparative analysis of French and English child grammars. London/ Dordrecht/Boston: Kluwer. Pinker, S. (1984). Language Learning and Language Development. Cambridge, Mass: Harvard University Press. Platzack, C. (1990). A grammar without functional categories: A syntactic study of early Swedish child language. Nordic Journal of Linguistics, 13:107-126. Poeppel, D. & Wexler, K. (1993). The Full Competence Hypothesis of clause structure in early German. Language, 69:1-33. Radford, A. (1990). Syntactic Theory and the Acquisition of English Syntax. Oxford: Basil Blackwell. Radford, A. (1992). The acquisition of morphosyntax of finite verbs in English. In Meisel, J., (ed). The acquisition of verb placement. Dordrecht: Kluwer, 1-22. Radford, A. (1995). Children: Architects or Brickies? In D. MacLaughlin & S. McEwen (eds.). Proceedings of BUCLD 19:1-19. Schwartz, B.D. & Sprouse, R.A. (1996). L2 cognitive states and the Full Transfer/Full Access model. Second Language Research 12(1):40-72. Schwartz, B.D. & Sprouse, R.A. (2000). When syntactic theories evolve: Consequences for L2 acquisition research. In J. Archibald (ed.). Second Language Acquisition and Linguistic Theory. Oxford: Blackwell. PP. 156-186. Tsimpli, I.M. (1992). Functional Categories and Maturation: The Prefunctional Stages of Language Acquisition. University College London Working Papers in Linguistics, 3:128-198. Vainikka, A. (1993/94). Case in the development of English Syntax. Language Acquisition, 3: 257- 325. 963 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo Vainikka, A. & Young-Scholten, M. (1996a). Gradual development of L2 phrase structure. Second Language Research, 12(1):7-39. Vainikka, A. & Young-Scholten, M. (1996b). The early stages in adult L2 syntax: Additional evidence from Romance speakers. Second Language Research, 12(2):140-176. Vainikka, A. & Young-Scholten, M. (2006). Minimalism vs. Organic Syntax. In S. Karimi, V. Simiian and W. Wilkins. Clever and right linguistic studies in honor of Joseph Emonds. Dordrect: Kluwer. White, L. (1985). The Pro-drop Parameter in adult second language acquisition. Language Learning, 35:47-62. White, L. (1989). Universal Grammar and Second Language Acquisition. Amsterdam: John Benjamins. 964 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo MUHAMMED: AN EXAMPLE OF MISWRITING OF PERSON NAMES IN KARS CITY ( IN TURKEY) ACCORDING TO ONOMASTIC Asst.Prof.Dr. Mustafa ġenel Tuzla University, Faculty of Filosofia, Turkish Language and Literature Department, Tuzla-Bosnia and Herzegovina, mustafasenel@hotmail.com The national culture as an important essential element propitiouses for an existence nation. This culture gets its source from that national history language, religion , morality, art, traditions, briefly from own esence. Person names( antroponimies) from point of view philologicial, linguistics, cultural, historical and folklore studies have necessity. The calling of the human (middle name, name, surname, nickname and titles) is associated with the culture of nation, proves a necessity of names fort he human. There are different traditions and rules of calling in the each country. The reasons of calling may be religious, national and local charecter as a result of investigation these tendentions we find out that every society has its different specific traditions in calling, there are many common issues in the many parts of the world and among societies has own peculiarity. The name ‗Muhammed‘ is widely popular among the people and often they call their children by this name, because it has a religion mean. The origin of this name is Arabic and used for men. The name ‗Muhammed‘ as a male names the most widely spread in the Kars(Turkey) region. The name ‗Muhammed‘ at the same time used in a wrong spelling. These mistakes did the bureaucrats or men, who did not know the orphography this name. Keywords: onomastik, Muhammed, name, Kars, misspelling The national culture as an important essential element propitiouses for an existence nation. This culture gets its source from that national history language, religion , morality, art, traditions, briefly from own esence. Person names( antroponimies) from point of view philologicial, linguistics, cultural, historical and folklore studies have necessity. The calling of the human (middle name, name, surname, nickname and titles) is associated with the culture of nation, proves a necessity of names fort he human. There are different traditions and rules of calling in the each country. The reasons of calling may be religious, national and local charecter as a result of investigation these tendentions we find out that every society has its different specific traditions in calling, there are many common issues in the many parts of the world and among societies has own peculiarity. The famous scientist lexicolog Adolf Bach says that; ― the name treasure of the nation expressions its past and present mental- spiritual state‖.315 Person names are very important from point of view of linguistic, cultural history and folklore studies. In the Orkhon Ġnscriptions were reproached the men who had lost own national identitiy and took Chinese name. The foreign cultures at first showed themselves in the names. The most of of an important side of names in linguistics in the reflection of alienation or privatizaton of language. Resources of the Turkish names are tombstones, birth certificates, mosque (clergy) registers, charities, the telephone directory in the modern period, school registers, marriage registers, nursing registry, death registry and other documents.316 The calling in the Turkish is a cultural element in itself . The Turkish names show different ways in the history according to their customs, geography and traditions. 317 Atradition to call new borned baby has an ancient history in the Turkish custom. Each name which was given to the children by their parents was according to tradition of ancestors. Every name has its calling reason. While borning of the child each incident, coming of visitors to the house or tent, first seen an object, animal or plant can effect for calling that girl or boy. 318 In the many regions of Anadolu (Anatolia) given names have not much difference. In the calling exists nearly the following rules: 319 1. Calling by religious names: Muhammed, Hasan, Hùseyin, Yakop(Yakup), Yonana(Yahya) etc. 315 Doğan Aksan, Her Yônùyle Dil Ana Çizgileriyle Dilbilim, TDK Yay, Ankara 1995, s. 115 Tuncer Gùlensoy, ―Türk KiĢi Adlarının Dil ve Tarih Açısından Önemi‖, Tùrk Dili, Ocak 1999,sayı 565, s.3 317 Tuncer Gùlensoy, agm., s .3 318 Tuncer Gùlensoy, ―Türklerde Ad Verme Geleneği ve Hektor‖, Millî Folklor, KıĢ 1994, Cilt 3,S. 22, s.5 319 Doğan Aksan, age., s.115-118 316 965 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo 2. 3. 4. Calling by famous and celebrity men‘s names or their surnames: Ġskender, Kanuni, fatih, M.Kemal etc. Calling by names heroes of tales, miths, destans(epoes): Oğuz, Ayhan, Orhan, Bozok, Üçok etc. Calling by names of geographical places, historical events or names ot tribes and nations:Toponims: Tuna, Fırat. Calling by the names of important days or events :Cuma, Kadir, Bayram, Kurtulush, Ġstiklal etc. 5. Other ways of calling: besides those above mentioned ways we can meet the names of fitonims, zoonims, beaituful lovely things, derivations of favorite and nice names, which existes in the international region and very common among peoples. Language is a common tool for mankind contact. The social life is one of the main featurs of the humanity. This is a reson of language‘s produce. Proceeds includes all process of produce language with covering its development. The language is itself of society. It is interwined with society by its natural structure. We devide the language into two part: spoken or oral language and written language. We use oral and spoken language in our daily life, when we speak. The feature of oral speech or language is in its remain only as a spoken language, being a carrier of production in a small area. On the other side, a spoken language and folklore culture are a main and the most important source for written language.320 A spoken or oral language unlike from written language and its has own characteristies features, usefull for practical purpose in the daily life. A spoken or oral language is older than written language and take it as a base. The language may be considered as seporate from the writing, but can not be considered apart from speech. The mankind before contrive writing was able to understand each other within centuries. That is why the understanding a structure of language depends on knowledge conditions of speech. This language depends on social classes, geographic regions, may show many differents. The patois, accent and dialects are the natural result of the changes.321 Every area has its own unique patois features. From time to time these patois features being shown in the oral speech manifets itself in the written language too. Since the old time the calling tradition in the Turkish society, what has very important role, exposed to influence of oral speech. Especially in the entry birth certificates oral mistakes were reflected in the written language. Therefore sometimes exists a differency between written names in the birth certificates and oral calling of the same man. Generally we see these mistakes in the ancient documents. The bureaucrats often interfered in calling process of the parents , did their corrects and as a result we meet many misuriting, changed names between population. That is why some names has not means from point of view semantic or orphography. The family which need not in correction , used these wrong names. The name ‗Muhammed‘ is widely popular among the people and often they call their children by this name, because it has a religion mean. The origin of this name is Arabic and used for men. Its means: ―1. Many times praising, praying for . 2. possesor many good and nid characters.‖322 This name much useful and in Kars. As a rule at the end of the Turkish words does not have consonants = b,c,d,g=. The consonants = p,ç,t,k = take their place. That is many borrowing words had undergone many changes in the Turkish Language . As a result of these changes the consonants p,ç,t,k substituted =b,c,dg= at the and words.323 Therefore the name ‗Muhammed‘ changed into ‗Muhammet‘ in the Turkish Language. The name ‗Muhammed‘ as a male names the most widely spread in the Kars region. This name sometimes used alone, sometimes with other name togeather. In such composite names the word Muhammed takes the first place, then comes the second naem. The tradition of binary calling comes from religion, because ‗Muhammed‘ is a elerical naem. Of course it is impossible to reflect all binary names. Below we gave some of them for example: 320 http://denizlevent.blogcu.com/konusma-dili-yazi-dili-ayrimi_19430.html http://www.edebiyatsanat.com/dil-bilgisi/61-dil-tarihi/421-konusma-dili-yazi-dili.html 322 http://www.isimbulamadim.com/isimayrinti.asp?isim=Muhammed&isimid=784 323 http://www.dilimiz.com/dil/TurkDili/trkdili2.htm#ÜNSÜZLERDE SES OLAYLARI 321 966 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo MUHAMMED ABDULLAH MUHAMMET AKIN MUHAMMED AKĠF MUHAMMET ABBAS MUHAMMED ALĠ MUHAMMET ADĠL MUHAMMED ALĠ RIZA MUHAMMET AHRAR MUHAMMED ALĠASKER MUHAMMET ALĠ MUHAMMED AVNĠ MUHAMMET ARDA MUHAMMED ARĠF MUHAMMET ARĠF MUHAMMED BAYCAN MUHAMMET BĠLAL The name ‗Muhammed‘ at the same time used in a wrong spelling. These mistakes did the bureaucrats or men, who did not know the orphography this name.some examples: MEHRAÇ MUHAMLET MUHAMED MUHAMED ALĠ MUHAMET MUHAMET ALĠ MUHAMET NECĠP MUHAMET ZEKĠ MUHAMLET MUHAMMAT MUHAMMAT MUHANDIZ MUHANMED MUHANMED ALĠ MUHANMED FAHRĠ MUHANMET MUMAMMET MUMAMMET ALĠ 967 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo Such mistakes do not limited only by name ‗Muhammed‘ . They are in the order parts of our country besides of province Kars. The small child in his childhood does not take care of his name, but by growing he is confronted with mockery of friends. When he growthes he sees the absurd and meaning less own name. Who is facilited changes, correctes or uses another names. Sometimes the registrar gives boy‘s name to the girl or vice versa. As a result such errors some girls are called to the military service, these one of the interesting events in our country. In the ancient times the old Tukish our ancestors were very attentively when they gave the name, in our time we also must be delicate and tactiful. It is necessary that in the goverment agencies works person who had not graduated from university even works in the out of branch. Espicially when the gratueted students from the Turkish Language and Literary are unemployed , in order to avoid with such problems we must review some of our plans again. Kaynaklar Aksan D., Her Yônùyle Dil Ana Çizgileriyle Dilbilim, TDK Yay Ankara 1995 Gulensoy T., ―Türk KiĢi Adlarının Dil ve Tarih Açısından Önemi‖, Tùrk Dili, Ocak 1999,S.565, s.3-9 Gulensoy T., “Türklerde Ad Verme Geleneği ve Hektor”, Millî Folklor, Kış 1994, Cilt 3, S. 22, s.5 http://denizlevent.blogcu.com/konusma-dili-yazi-dili-ayrimi_19430.html,15.08.2008 http://www.edebiyatsanat.com/dil-bilgisi/61-dil-tarihi/421-konusma-dili-yazi-dili.html, 15.08.2008 http://www.isimbulamadim.com/isimayrinti.asp?isim=Muhammed&isimid=784, 15.08.2008 http://www.dilimiz.com/dil/TurkDili/trkdili2.htm#ÜNSÜZLERDE SES OLAYLARI, 15.08.2008 968 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo ESADĠ‘NĠN ― BEHAR‖ ADLI DERGĠDEKĠ METĠNLERĠNĠN KELĠME GRUPLARI BAKIMINDAN ĠNCELENMESĠ Mustafa ġenel Tuzla Üniversitesi ,Tùrk Dili ve Edebiyatı Bôlùmù Bosna-Hersek mustafasenel@hotmail.com Sibel Bayram Sarayevo Üniversitesi ,Tùrk Dili ve Edebiyatı Bôlùmù, Bosna-Hersek sibelbayram02@hotmail.com 1 Kasım 1831 yılında yayım hayatına giren ilk resmi gazete olan Takvim-i Vakayi ile baĢlayan Osmanlı Devletinin basın hayatı daha sonra çeĢitli gazete ve dergilerle devam etmiĢtir. Bu durum sadece Ġstanbul‘da sınırlı kalmayıp Osmanlı devletinin hâkim olduğu diğer bôlgelerde de Osmanlı alfabesi ile Tùrkçe dili ile basılan gazetelerle geliĢmiĢtir. Hakimiyeti altındaki Balkanlarda olaylarla dolu Bosna-Hersek tarihinde de Osmanlı dônemi ônemli bir yer tutar. Ortaçağ Bosna Devletinin bağımsızlığı Osmanlı Devletinin yayılmasıyla bozulmuĢtur. Osmanlı akınları, 1386‘da baĢladıktan sonra Bosna Eyaleti 1463‘de fethedilmiĢ, 1878‘de yapılan Berlin AntlaĢmasıyla Avusturya-Macaristan‘a verilinceye kadar dôrt yùz seneden fazla Osmanlı hakimiyeti altında kalmıĢtır. 1463 yılında, Fatih Sultan Mehmed o zaman Bosna Kraliyetinin merkezi olan Yayçe Ģehrini, II. Sultan Bayezid ise 1482 yılında Hersek bôlgesini fethetmiĢtir. Bu fetihlerle Ortaçağ Bosna Kraliyeti çôkmùĢtùr. Bosna‘da Osmanlılar tarafından fethedilmiĢ olan son Ģehir Bihaç‘tır. Bihaç‘ın fethi XVI. yùzyılın sonuna rastlar. Bu tarihler gôsteriyor ki, Bosna-Hersek‘in Osmanlı tarafından fethi aĢağı yukarı 200 yıl sùrmùĢtùr (ZaĦinoviĤ,2003:9). ( II. Sultan Abdùlhamîd (1876– 1909) 1878 yılında Bosna‘dan çekilmiĢtir (ZaĦinoviĤ,2003:14). Ġlk vilayet gazetesi Tùrkçe ve Bulgarca yayınlanan Tuna Gazetesi, Osmanlı dôneminde eski Yugoslavya‘da bilindiği gibi ilk vilayet NiĢ, Silistre ve Vidin eyaletlerinin birleĢmesiyle meydan gelen Tuna vilayetinde çıkmıĢtır. Sôz konusu gazete Balkanlarda ilk Tùrkçe sùreli yayındır. Bu gazetede genel olarak yayınlanan yazılar, yônetmelikler, resmi bildiriler, kamu kuruluĢların yaptığı iĢler, valilerin konuĢmaları gibi yazılardır. Yayınlanan bùtùn yazıların hemen hemen hepsi imzasız yayınlanmıĢtır. Bununla birlikte bu vilayet gazeteleri Balkanlarda Tùrkçe gazeteciliğinin geliĢmesinde ônemli bir rol almıĢtır. (http://www.balkangunlugu.com) Bu durum Bosna‘daki kùltùrù ve medeniyeti çok etkilemiĢtir. 1866 yılında merkezi Saraybosna olan ve Tùrkçe-Sırpça dilleri kullanılmak ùzere ‗Bosna‘ adlı gazete basılmaya baĢlanmıĢtır. Sahibi Ġgnyat Sopron‘dur. ‗Ġgnyat Sopron‘a aiy basım evinde bir süre hem Bosanksı vjestnik hem de Bosna gazeteleri çıkmıĢtır. Bosna gazetesinin 27 Muharrem ve 1283 ve 30 Mayıs /11 Haziran 1866 tarihli 3. sayısında BoĢnakça olarak çıkan Bosanksı vjestnik gazetesi ve onun sahibi ile ilgili Ģu haber çıkmıĢtı: Gazetemizin muharriri Mösyö Sopron‘a verilmiĢ olan imtiyaza mebni BoĢnakkıyy‘ül-ibare ve gayr-ı resmi olarak mukaddemce tab‘u ihracına baĢlamıĢ olduğu gazete asar-ı medeniyetin ameliyatıyla beraber uluma ve fünuna dair mevadd-ı müteferriayı münderic olduğundan baĢka dahili ve harici havadisçe her nev‘-i vukuatı mitezammın bulunduğundan bunun mütalaası faide-bahĢ-ı umum olacağından ve kıt‘ası dahi büyük olduğu halde seneliği altmıĢ kuruĢa vermekte idüğünden müĢteri olmasını istek eyleyen zevatın Vilayetin matbaasında kendisine müraacat eyledikleri takdirce her hafta bir nüshasını gönderecektir.‘ (Zaçınoviç, 2003:16) Ġki yıl sonra GùlĢen-i Saray gazetesi çıkartıldı. Bu gazetenin de dili Tùrkçe-Sırpça idi. 1867-1878 yıllarında 13 tane salname yayımlandı. Mostar Ģehrinde bir matbaa kuruldu ve ‗Neretva‘ adlı gazete basıldı. 1871 yılında ise Prizren‘de Tùrkçe-Sırpça olan bir gazete basılmıĢ ve iki vilayet salnamesi yayımlanmıĢtır. Prizren‘deki matbaa PriĢtine‘ye taĢınır ve gazete burada çıkmaya devam eder. Daha sonra merkezi Kosova‘ya taĢındıktan sonra Tùrkçe gazete çıkmaya baĢlar. 1873-1875 yılları arasında ise Rumeli gazetesi basılır. ―Daha sonra Osmanlıca harflerle Sırp-Hırvatça Tarik (1908-1911), Muallim (1910- 913), Misbah (1912-1914) ve Yeni Misbah 1914 yılında mesleki ve dini dergiler yayımlanmıĢtır. Bu dört derginin bazı sayfalarında Türkçe ve Arapça yazılara da yer verilmiĢtir. O dönemlerde GliĢa Elezoviç‘in ilk Türk Dilbilgisi eseri yayınlanmıĢtır. Aynı yıllarda Türkçe-BoĢnakça 1911 yılında Sarayevo‘da Zübdetü‘l-Ferais, Tecvid Ġdare-i Bosnavi 1925 yılında Din Dersleri, Kuran-ı Kerim,Türkçe Dersleri gibi BoĢnakça ve Türkçe muallimi adındaki eserler de basılmıĢtır. Ġkinci MeĢrutiyetten sonra Kosova Vilayeti matbaasında resmi gazetelerden baĢka Enva-i Hürriyet, ġar ve Yıldız adlarında özel ve cemiyet gazeteleri yayınlanmıĢtır. Yeni Mektep adlı bir mesleki dergi de yayımlanan diğer yayınlardır. 1908 yılında II. MeĢrutiyet‘in ilanıyla vilayetlerde kaldırılan basın sansüründen 969 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo yararlanılarak Üsküp‘te ve Manastır‘da çeĢitli partiler, topluluklar, azınlıklar ve müesseseler kendi siyasi, edebi, bilim ve mesleki organlarını yayınlamaya baĢladılar.‖ (http://www.rumelibalkanfederasyonu.org/site/index). Osmanlı dôneminde ve daha sonrasında ise Vatan, Rehber gazeteleri Avusturya-Macaristan Ġmparatorluğu dôneminde yayım hayatında etkili olan diğer gazetelerdir. Dili Tùrkçe olan bu gazeteler eğitim, kùltùr, askeri, iktisadi ve gùnlùk hayata dair pek çok zengin bilgi içermektedir. Bu gazeteler dıĢında dili BoĢnakça olmasıyla birlikte birkaç sayısının Osmanlı Tùrkçesi ile basıldığı dergiler de bulunmaktadır. BoĢnak dilinde ve Arap harfleriyle birkaç gazete daha çıkabiliyordu. Bu dônemde Arap harflerinin yerini Latin harfleri almaya baĢladı. BatılılaĢma, bu dônemde ônemli bir konudur. ‗Saffet Beg BaĢagiç, Ethem Mulatoviç, Osman Nuri Haciç, Avdo Karabegoviç, Osman Çikiç, Musa Kazım Çatiç baĢta olmak üzere bu tarihi ve edebi geçiĢ döneminde batılılaĢma amaç edinilmiĢtir.‘ (http://sancak.ihh.org.tr) Bir edebiyat dergisi olan ‗Behar‘ yayımlanmaya baĢlaması ônemli bir olaydır. Ġlk sayı Sırpça basılıp dôrt sayfada Tùrkçeye ayrılır. Bu dergide yayımlanan hikâyeler, Ģiirler dônemin edebiyat hayatının geliĢmesine bùyùk katkı sunmuĢtur çùnkù ‗Behar‘ dergisi kùltùr, eğitim, edebiyat ve sanat konularında yayın yapmaktaydı. ‗Behar‘ dergisi 1906-1907 yılları arasındaki sayıları hem BoĢnakça hem de Tùrkçe diliyle yayın hayatında yer almaya devam etti. Bu dergide yer alan metinlerin dil yapısı dônemin sosyal, kùltùrel yapısı hakkında birer gôsterge niteliğindedir. Tebliğimizde Behar dergisinde yer alan Esadi‘nin324 ―ZAMANIN ÖRFÜNÜ BĠLMEYEN CAHĠLDĠR‖ (s.7) ve ―KĠMYA-YI SAADET‖ (s.14) adlı iki yazısı kelime grupları yônùnden incelenmiĢtir. Kelime grupları incelenirken kelimelerin kôkenleri, kelime grubu olarak gôrevleri325 ve kullanım sıklığı da çıkarılmıĢtır. Terkipler de kôkenlerine gôre ayrılmıĢtır. Dikkati çeken ôzellikler: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. BirleĢik fiiller içierisinde ol- ve et- yardımcı fillerinin kullanımındaki fazlalık dikkati çekmektedir. Arapça kelimelerden oluĢan terkipler oldukça fazladır. Son ek bakımından terkiplerin çoğunda Tùrkçe ekler getirilerek kelimeler Tùrkçe yapılmıĢtır. Terkiplerle yapılın tamlamaların yanı sıra isim tamlamaları da az sayıda gôze çarpmaktadır. 3‘lù terkiplerden AR+AR+AR ve AR+AR+FAR tespit edilmiĢtir. Bazı kelimlerde olumsuzluk Farsça ve Arapça ôn ekler kullanılarak sağlanmıĢtır. Kelime yoğunluğunda en fazla Arapça daha sonra Tùrkçe ek almıĢ Arapça ve daha sonra Tùrkçe, Farsça kelimelerin ve Tùrkçe ek almıĢ Fransızca kelimenin kullanıldığı gôrùlmektedir. Çokluk eki olarak –lAr ekinin yanı sıra Arapça kelimelerin çoğul Ģekilleri kullanılmıĢtır. ve bağlacının ve dA edatının fazlaca kullanıldığı tespit edilmiĢtir. Arapça sıfatlar Farsça ve Tùrkçe sıfatlara gôre fazlaca kullanılmıĢtır. Tùrkçe zarflar Arapça ve Farsça zarflara gôre fazlaca kullanılmıĢtır. bu, Ģu ve o zamirleri oldukça fazla kullanılmıĢtır. Ünlem bakımından sadece 4 ôrnek içermektedir. Sıfat-fiil ve zarf fiil ôrnekleri de fazla olmamakla tespit edilmiĢtir. Dônemin dil ôzellikleri bakımından dikkati çeken en ônemli ôzellik Arapça ve Farsça unsurların hala etkisini devam ettirmesidir. Dônemin diğer ùrùnlerinin de incelenmesiyle dônemim genel dil ôzellikleri tespit edilebilecektir 324 325 Behar 1906/7(Godina VII), (H.M. Dzemaluddin ÇauĢeviç), Islamska Dıonıçka ġtamparıja(Tıskara), Sarajevo(tarihsiz) http://tdkterim.gov.tr/bts/ sôzlùğù kullanılmıĢtır. 970 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo 1.Ġsim Tamlamalari zamanın lùzumunu musikat kendisinden mealinin mayesi zamanın ôrfù zamanın dalaletinde kimyaların kafesi biçare zamanı onun bereketidir ôrfùn isnadı birisinin burnu ağaç Ģekline kùlliyenin fùruidir kimsenin iĢine kùlliyenin fùruidir ferdin arazıdır alemin rùchani ferdin arazıdır mealinin mayesi beytinin mazmunu Ģirin mezakları cehil unvanına 2. Birlesik Fiiller ibaret olup itsaf etmek raci olduğu ibret bırakmıĢlardı ityan ederek talik eder ifade etmek kabul eder tasrih edilen ihsani olmak kabul eder tercih ediyor ihtam etmek kifayet etmek ihtiyar ediyor mahrum kaliyor iltizam eder mahv olmakta muvaffak olamiyor tercih olunur tezahùr edebilir tezahùr eder vakuf etmek yardım etmesi yardim etmek zikr olunmuĢ irem olacak itibarı olup mùdahil etmek itlay etmekle mùnkalib olur 3. Terkipler 1. AR+AR cùmle-I hikemiye kimya-yı daire-i imkan mana-yı ders-i gayret ôrf-i ehl-i zaman ôrf-i Ģehadet ehl-i sahaif-i hikmet envar-ı irfan fùyuzat erbab-ı hakikat eser-i feyz fiil-i hayra hakikat-ı hilafet kabe-i hacat ceza-yı daire-i umur-ı cùmle zaman hakikat hayriye kemal hazret-i 2. tarik-ı saadet AR+AR+TR EK ameli Ģùmuldendir erbab-ı feyz-i gayrettir teavùnden 971 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo hulyayı iktisa-ı isnad-ı hakikatten nùsha-i zamandan saadet-i beĢeriyeyi suret-i mutlakta ulviye-i marufu man-i miski ôrf-i hulyayı mana-yı medeniye vesile-i ulviyeyi hùsne AR.+FAR+AR Kaim-i bilgayr AR+FAR+TR EK mal-i sezadır AR+TR ahval-i 6. kisvesi nuraniye mal-i 5. ulviyesi mertebe-i teavùnle latife-i 4. mani-i mecazidir kimya-yı 3. haylaetten alem AR+AR+AR kelime-i tayibe-i teavùn daire-i imkan teavùn-ù a) AR+AR+AR+TR EK gerde-ehl-I hùkmettir 7. FAR+AR+AR ser-levha-i makal 4. ÖN EKLER bi-haber 2 bitaite 1 bi-hak 1 bil-zarure 1 la 1 bilgayr 1 binane 1 biçare 1 ma-sadak 1 bi-nifad 1 ma-bih-il-iftihar 1 bitaati 1 bi-cevazdır 1 972 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo 5. ARAPÇA KELĠMELER ve KULLANIM SIKLIĞI Teavùn 15 amin 1 ifade 1 netice 1 asar 7 an 1 ihtar 1 nevi 1 asıl 7 arz 1 iktibas 1 nùkteyi 1 zaman 6 asalet 1 iltifa 1 ômùr 1 saadet 5 asil 1 imkan 1 revnak 1 cehli 4 asl 1 inayet 1 sarfiyat 1 Feyz 4 asliye 1 insan 1 selam 1 muavenet 4 ati 1 intisap 1 Silsile 1 cehalet 3 ayar 1 irem 1 suret 1 emir 3 beyan 1 irfan 1 sùbut 1 hakikat 3 bidayet 1 isnad 1 Ģahıs 1 itibar 3 cehl 1 isnadat 1 Ģan-i 1 kesb 3 cehle 1 istiab 1 Ģehadet 1 nazar 3 cùmle 1 istidadi 1 Ģekil 1 tercih 3 dar-ùl 1 istihzar 1 Ģeref 1 ashab 2 dava 1 itham 1 Ģevket 1 cehil 2 ders 1 kabul 1 Ģey 1 cevher 2 devam 1 kaim 1 talik 1 dahil 2 ebul 1 kitap 1 tarik 1 fasl 2 ehli 1 maarif 1 tasrih 1 Gayret 2 el-absard 1 makal 1 tayibe 1 ilah 2 el-hitam 1 maksat 1 teksir 1 iltizam 2 el-makal 1 mana 1 telakki 1 ittihaz 2 el-mùnteha 1 mastar 1 temsil 1 izah 2 eltabayı 1 mazhar 1 terkip 1 kemal 2 elvech 1 Men 1 teslim 1 kifayet 2 essel-esas 1 mertebe 1 tevekkùf 1 kimya 2 fark 1 mesaibi 1 tevellùd 1 marifet 2 hacat 1 mesned 1 ul-usul 1 mizan 2 hacet 1 mevzu-i 1 unvan 1 ôrf 2 hakiki 1 meymenet 1 vakit 1 sahip 2 halas 1 mirat 1 vazife 1 takdim 2 hayatiyeyi 1 Mizan-ùl 1 vecibe 1 tarif 2 hayrat 1 muhabbet 1 vezn 1 tezahùr 2 hayriye 1 muhalif 1 vird 1 vukuf 2 hikmet 1 mukalide 1 vuzuh 1 adem 1 hilafet 1 mùlahaza 1 zebani 1 ait 1 ıtlak 1 mùrùvvet 1 zikr 1 aklen 1 ibraz 1 mùĢahade 1 ziynet 1 alim 1 ibret 1 nefs-ùl 1 aliye 1 icmal 1 nema 1 973 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo 6.TÜRKÇE EK ALMIġ ARAPÇA KELĠMELER ve KULLANIM SIKLIĞI meali 7 unvanına 1 emirde 1 nemayı 1 zamana 4 adetine 1 emsali 1 nihayeti 1 itibara 2 aidatı 1 eseri 1 racidir 1 manasına 2 ameli 1 hùkmettir 1 rùchani 1 babta 2 asaleti 1 itibariyesi 1 saadettir 1 gayrettir 2 babtaki 1 kafesi 1 Ģeyde 1 isnadı 2 bahsimiz 1 kelimedir 1 Ģeyi 1 iĢtirakı 2 belada 1 kisvesi 1 Ģùmullù 1 itibarı 2 bereketi 1 kitaptır 1 Ģùmulùne 1 nuraniye 2 bereketidir 1 kùlliyeyi 1 tabiyeden 1 vùcudu 2 beĢeriyeyi 1 kùllùdùr 1 teavùndùr 1 ahlaka 1 beyanım 1 mahiyeti 1 temine 1 ahvale 1 beyanına 1 mahiyetinde 1 ulviyesine 1 ihlafa 1 cehalete 1 mahrumiyeti 1 ulviyeyi 1 istiaba 1 cihetle 1 mastarı 1 vaadi 1 makama 1 cihetten 1 mazmunu 1 vukufu 1 manaya 1 cùmledeki 1 mecazidir 1 zahirde 1 meydana 1 cùmlesi 1 menafidir 1 zamanı 1 tafsilata 1 cùmlesini 1 muavenetin 1 umura 1 delaleti 1 mùnasebeti 1 7.FARSÇA KELĠMELER bağ 1 bend 1 Meyve 1 numune 1 bahĢ 1 menguĢ 1 nem 1 Ģiraze 1 ziver 1 8.FARSÇA + TÜRKÇE KELĠME(TÜRKÇE EK ALMIġ) bazarda 1 dostla 1 9.FRANSIZCA + TÜRKÇE (TÜRKÇE EK ALMIġ) Ģimendifere 1 974 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo 10.TÜRKÇE KELĠMELER ne 7 ağaç 1 gayrın 1 yardım 1 değildir 5 atayı 1 geri 1 YardımlaĢmak 1 ad 3 Bakın 1 Ġkisi 1 yok 1 alem 2 balada 1 mayesi 1 yùzlerini 1 bundan 2 buyurmakla 1 Öte 1 çekirdek 2 değil 1 tanımaktan 1 gerek 2 dur 1 Ufak 1 nedir 2 durana 1 uluma 1 açık 1 Evet 1 vermeye 1 11.TÜRKÇE FĠĠLLER eder 5 bilin 1 gôstermeye 1 olmuĢ 4 bilmek 1 kaldı 1 olur 4 bırakmıĢlardı 1 kalıyor 1 bulunması 3 bulunamayacağı 1 kalmak 1 etmek 3 çıkarılmalı 1 kalmıĢ 1 olacak 3 demektir 1 kanasa 1 olmayan 3 dursun 1 kanmıĢtır 1 olunan 3 edebilir 1 olabilir 1 demek 2 edebilirler 1 olabiliyor 1 edilmelidir 2 edecek 1 olacağını 1 ediyor 2 eder 1 olamazlar 1 etmekle 2 ederek 1 olamıyor 1 etmesi 2 edilecek 1 oldum 1 olamayacağı 2 edilmiĢtir 1 olmadığı 1 olmak 2 ediyor 1 olmasıyla 1 olmakla 2 etmeden 1 olmazsa 1 olmaya 2 geçse 1 olsa 1 olunabilir 2 giriyor 1 olunduğundan 1 olunur 2 gôrùlebilir 1 olunmuĢ 1 alabiliyor 1 gôrùlmekte 1 olunup 1 almaları 1 gôrùlmektedir 1 olunuyorsa 1 anlaĢıldığ 1 gôrùlmùĢtùr 1 oluyor 1 anlaĢıldığı 1 gôrùn 1 uğrasa 1 anlaĢılırsa 1 gôrùnmekten 1 anlaĢmaktadır 1 gôrùnùrse 1 12.ÇOĞUL KELĠMELER AR ecsam 1 elfaz 1 efradın 1 envayı 1 efraz 1 eslaf 1 975 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo feyza 1 AR+FAR+TR TOPLAM fezail 1 AR+TR fùruidir elfazın 1 1 itibarlarla 1 fùyuzat 1 kimyaların 1 hikayet 1 mevcudiyetlerini 1 hikemiye 1 misaller 1 istidadat 1 fùyuzattan 1 menafi 1 varidattır 1 muktesabat 1 AR+TR TOPLAM nuraniyet 1 TR AR TOPLAM 16 AR+FAR+TR 1 kemalat 1 ve AR Fakat 2 gôzleri 1 3 14.EDATLAR 45 AR 3 AR TOPLAM AR+FAR gôzlere TR TOPLAM 13.BAĞLAÇLAR AR 7 48 kadar 3 AR TOPLAM 3 AR+TR 1 hale veya 1 AR+TR TOPLAM vey h t 1 TR da / de 1 12 AR+FAR TOPLAM 2 gibi 6 FAR ki 5 ise 7 zira 1 iĢte 2 FAR TOPLAM TR 6 bile 1 dahi 7 ile TR TOPLAM 27 11 yoksa 1 TR TOPLAM 20 15.SIFATLAR AR mahrum 3 cehalene 1 maddiye 1 mùmkùn 3 celili 1 mahsus 1 muvaffak 3 cemi 1 makbul 1 cahil 2 cemiyle 1 marufu 1 hasıl 2 hadim 1 masum 1 ibaret 2 hakiki 1 menfurdur 1 lazım 2 iradi 1 mùdahil 1 muhtaç 2 kati 1 mùfid 1 mùyesser 2 kùlli 1 muhtevi 1 cari 1 lazımdır 1 mùmin 1 976 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo mùnasip 1 diniye 1 hangi 3 mùĢrik 1 ibarettir 1 nice 3 mùstelzemdir 1 ibarettir 1 Aksi 2 mùsteniddir 1 maneviyesi 1 az 2 noksan 1 nuraniler 1 Bùtùn 2 raci 1 ruhiyesi 1 biraz 1 sabit 1 zıddı 1 birçok 1 birkaç 1 bôyle 1 bunca 1 bùyùk 1 çok 1 derindir 1 doğru 1 5 dolayı 1 9 gayri 1 gayrı 1 kalan 1 Ģùphesizdir 1 1 ulu 1 vardır 1 zavallı 1 sahih-ùl 1 Ģamil 1 tabii 1 vahid 1 zahir 1 zaruri 1 ziyade 1 AR TOPLAM AR+TR TOPLAM FAR kıymetdar AR+FAR+TR AR+FAR+TR TOPLAM karibanı AR+TR bedihidir 1 cahildir 3 cahili 2 aĢikardır 1 Ģayan 1 Ģayeste 1 sezadır 1 Ģirin 1 FAR TOPLAM 56 AR+FAR AR+FAR TOPLAM 13 1 1 1 1 FAR FAR TOPLAM her FAR+AR FAR+AR TOPLAM na-layıkada TR bir 36 ġu 9 TR baĢka 4 TR TOPLAM var 4 9 1 168 16.ZARFLAR AR hiç Elbette 1 Elhasıl 1 FAR TOPLAM 4 evvel 1 TR ancak 1 Filhakika 2 daha 2 muntazamin 1 dolayısıyla 1 Naklen 1 gôre 1 sırf 1 hakkında 1 AR TOPLAM 8 Herhalde 1 AR+FAR 1 olarak 5 AR+FAR TOPLAM 1 olmakla 1 AR+TR gayeti 1 olmakta 1 nezdinde 1 olmaktan 1 2 orada 1 Gerçi 1 sonra 1 Gùya 1 Ģôyle 1 hep 1 nice 3 Belki AR+TR TOPLAM FAR 1 977 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo ùzere 6 TR TOPLAM 27 17.ZAMĠRLER FAR herkes FAR TOPLAM diğerleri FAR+TR FAR+TR TOPLAM TR 1 buna 1 1 bunlar 1 2 bunların 1 2 kendisinden 1 bu 15 kendisiyle 1 o 10 kime 1 Ģu 9 kimsenin 1 birisinin 3 kimseye 1 kim 2 ne 1 birçoğunun 1 ona 1 biri 1 ondan 1 birisi 1 onun 1 birisine 1 onunla 1 bize 1 TR TOPLAM 60 18.ÜNLEMLER AR vesselam… AR TOPLAM 1 TR ah 3 1 TR TOPLAM 3 19.SIFAT-FĠĠLLER biçtiği 1 eden 1 isteyenler 1 bilmeyen 1 edene 1 kaldığı 1 olan 8 eğdiğini 1 kalmadıktan 1 olduğu 8 etmediğinden 1 kamaĢtıran 1 gelen 3 girmesi 1 olanlar 1 edilen 2 gôrùnmeyen 1 olmadıktan 1 etmediği 2 istediğini 1 olması 1 20.ZARF-FĠĠLLER getirmeğe 1 olup 5 bakup 1 deyùp 1 dikilip 1 bulup 2 978 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo Zùlfikar, BasılmamıĢ Yùksek Lisans Tezi, Ankara Ünv,Sos.Bil.Enst.), Ankara References http://www.balkangunlugu.com http://www.rumelibalkanfederasyonu.org/site/index Behar 1906/7(Godina VII), (H.M. Dzemaluddin Çauşeviç), Islamska Dıonıçka Ştamparıja (Tıskara), Sarajevo(tarihsiz) http://sancak.ihh.org.tr http://tdkterim.gov.tr/bts/ ZaĦinoviĤ , N.(2003) Bosna Kùtùphanelerindeki Eski Tùrkçe Gazetelerin Dili, (DnĢ.Prof. Dr. Hamza 979 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 563 Title A name given to the resource Functional Categories in the L2 Acquisition of English Morpho-Syntax: A Longitudinal Study of Ten Farsi-Speaking Children(conclusion) Author Author Mobaraki, Mohsen Mohammadpour, Elaheh Abstract A summary of the resource. There has been considerable debate during the last several decades regarding child and adult second language acquisition of morpho-syntax. This is a longitudinal case study of ten Farsi-speaking children learning English. The research deals with the initial state and further development in the child second language (L2) acquisition of syntax regarding the presence or absence of functional categories, as well as the role and degree of L1 influence in this regard. Some studies in the field of child L1 acquisition are discussed to determine similarities or differences between child L1 and child L2 acquisition. Examining data collected from the children‘s speech over a period of 9 months, the competing claims of the two most prominent hypotheses about early L2 grammars are tested: Vainikka & Young-Scholten‘s (1996) Minimal Trees/Structure Building hypothesis and Schwartz & Sprouse‘s (1996) Full Transfer/Full Access hypothesis. Word order, suppliance of copula be are investigated and the conclusion is reached that functional categories are absent at thei nitial state and that they emerge without the learners‘ reliance on their L1, consistent with Minimal Trees/Structure Building. Date A point or period of time associated with an event in the lifecycle of the resource 2011-05 Keywords Keywords. Conference or Workshop Item PeerReviewed P Philology. Linguistics Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 887 Title A name given to the resource Functions of + Da Suffix Though Advertising Texts by Teaching Turkish as a Foreign Language Author Author Özçetin, Kübra Yeşil, Funda Abstract A summary of the resource. Turkish teachers taught grammar subjects through dialogs for a long time. But they didn’t use the texts enough. But today this situation has changed and teachers have started to use original texts which we use in our daily life. So understanding the structures of grammar have become easier. A man who is learning a foreign language man must to reach a certain level of vocabulary and build the structure of grammar. To reach this aim texts have a great role. Materials which using for teaching foreign language should contain different types of texts as possible. So that the students can learn different words about different areas. By using this method the students will learn features of grammar structures and they will see how they can use these words in the texts. +DA suffix has lots of functions. This suffix can indicate time, place etc. To realize the differences of these different using of suffix we need concrete examples. +DA suffix is very common in the advertising texts. Because of that using the advertising texts can be very useful when we teaching the functions of this suffix. In this study we aimed to show the functions of +DA suffix through advertising texts which we choose from various media organs. We also hope to determine how these functions can be useful in area of Turkish as a foreign language. Date A point or period of time associated with an event in the lifecycle of the resource 2012-05 Keywords Keywords. Conference or Workshop Item PeerReviewed P Philology. Linguistics https://omeka.ibu.edu.ba/files/original/439fb060701046850ef4368e85145bad.pdf c2c2a0e57837ca7f1cc0143ced5c1b25 PDF Text Text 1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo Functions of Local Governments for the Implementation of Sustainable Development: The Case of Turkey Ethem Kadri PEKTAŞ Assist. Prof. Afyon Kocatepe University pektas@aku.edu.tr Abstract:The term “Sustainable Development” was used for the first time in 1987 by Brundtland Report known as “Our Common Future”. Being about meeting the needs of today without diminishing the capacity of future generations to meet their needs, sustainable development is the most important common goal of human being today. There have been many international efforts to reach this common goal since the United Nations Conference on Environment and Development (UNCED) in Rio de Janeiro, Brazil, in 1992. This conference established a connection between Sustainable Development and Local Governments in its main concluding document Agenda 21. Titled as “Local Authorities’ Initiatives in Support of Agenda 21”, Chapter 28 of this document calls each local authority to enter into a dialogue with its citizens, local organizations and private enterprises and adopt “a Local Agenda 21”. In accordance with this call, the Local Agenda 21 Program has been carried out in thousands of cities all over the world, including Turkey. In this country, local governments especially municipalities provide several services to their inhabitants to ensure Sustainable Development in their cities on the basis of the related legislation. This study aims to examine the functions of local governments towards Sustainable Development. In doing so, the study depends on the case of Turkey. Keywords: Environmental Problems, Sustainable Development, Sustainable Urban Development, Local Agenda 21, Local Governments. Introduction Environmental movement which is started in 1970’s and intensified 1980’s; spread national levels to international level. Environmentalism initially considered as “pollution” later on assessed in a wider and holistic perspective. While these developments are taking place in the sense of environmental protectionism and development international solidarity and cooperation is started take place in international agendas. (Toprak Karaman, 1998: 47). It seems that the belief “economic developments, with the support of technologic developments, are an indicator of wealth of societies” does not seem like a valid belief. Multiple negative affect of economical activities in the nature and artificial environment indicates that plain economical development is not alone a factor of economical development and reminded to the mankind that the economical development should go along with the social and ecological development. Now unlimited development does not accepted and while “sustainable” economical social and environmental objectives are actualized, there is need of local, national and international strategies should be (is) embraced. (Palabıyık, 2005: 611). Sustainable Development With the discussion of global problems such as: global warming, vanishing of rain forests and hunger, sustainable development come into the global agenda. Today, sustainable development is acknowledged as along term concept with the dimensions of economical social and ecological developments. (Adaman et al, 2004: 129130). The concept of sustainable development consists of two components: “sustainability” and “development”. Sustainable development relays on the idea of sustainability. It can simply be described as: “ability of something’s to survive”. Some of the scientists describing sustainability as: a procedure which should provide minimum level of protection to social, economical and environmental (ecological) systems need. Some others mention the “edge of sustainability”. Edge of sustainability is described as: the usage of sources with a minimum balanced level which can fulfill the mankind’s need today and in the future. If this edge is crossed “unsustainability” occurs. (Bozlağan, 2002: 58). 391 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo Development is a term which has subjective elements and is difficult to describe and definitions varies in according to different people. But generally can be described as “activities which provide an increase in welfare”. But since it is difficult to measure the level of increase in welfare, in a narrow sense, it can be defined as “per capita national income”. In the literature, some of the writers mentioned the humanitarian perspective of development such as human rights, local and international democracy, reaching full employment rate, housing, health and ability to have basic infrastructure services and having enough natural sources etc., (Bozlağan, 2002, 58). Sustainable Development and Its Content In general, sustainable development is a balance between the mankind and the nature which does not exploit the sources of nature for the needs of next generations’ and existing society’ needs. These definitions puts forward certain subjects like: usage of limited sources, change, limitation of consumption, protection of land, appliance of democracy, providing justice in between the generations and providing basic needs of mankind (Palabıyık, 2005: 615). One of the most widely known definitions of sustainable development is Brundtl and Commission’s definition: “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” Even though this definition is a bit short, it contains such a wide meaning in it including economical, social and ecological life’s aspects. This report mainly concentrates on balancing the needs of existing society’s needs and the needs of next generations needs without harming the nature. In Brundtland’s report the term “need” is used with a larger meaning which contains all aspects of socioeconomic life. In other words, the term “need” is used for individuals’ and society’s social, economical, ecological needs and the needs of alive and/or un-alive sources. There are two key opinions to be investigated in this definition (Bozlağan, 2002: 60): • All the needs of individuals’ should be met in a safe and suitable way. Priorities should be paid to the poor people in today’s world where many people’s basic needs have not been met. • The usage of sources should be limited in a way that would secure needs of today and future by the technologic, social organizational and limitations. Therefore, nations should give up destructive growth and development strategies and try to implement more sustainable growth strategies in a short time. Additionally, efficient participation of citizens to decision making process should be guaranteed, economical system should be developed in way that would produce technological information and stable output, social system should be able solve the problems related to tensions because of inconvenient development, manufacturing system should be able to respect to ecological protection systems, technologic system should be able to provide new solutions, international system should be able to support sustainable systems in trade and finance and finally, a system which has abilities to restructure it self, should be established. (Bozlağan, 2002: 60). Local Governments and Sustainable Urban Development Sustainable Urban Development expresses implementation of sustainable development the principle for the purpose of improving the life standards the people living in the cities (Palabıyık, 2005: 617). During the preparatory meetings for the Urban 21 Conference (Berlin, July 2000), the following definition was developed for Sustainable Urban Development: “Improving the quality of life in a city, including ecological, cultural, political, institutional, social and economic components without leaving a burden on the future generations1. On the other hand, an unsustainable urban can be defined as the places where the physical environment was destroyed and polluted so that it threats human life; the places which have an economy with inefficient and insufficient infrastructure and also not supporting the expectations of people to increase the welfare and the quality of life; the places in which there is increasing tension, crime, alienation, as a result migration (Palabıyık, 2005: 620). There are different opinions about the necessary factors for sustainable urban development or possibility to attain it. For some views, it is impossible or only a utopia, but for some others, it is an unavoidable necessity. Some people think that cities are under unsustainble conditions because of heavy consumption, unplanned growth, intensive environmental distortions, excessive use of resources, deep inequalities among social classes. Nevertheles, cities are places where people wish to live with its successfull local governments and attractive features beyond everything. Most of the cities may be much better places to live in with the available technological facilities as well as citizens’ ecological attitutes and values (Palabıyık, 2005: 617) 1 http://www.rec.org/REC/Programs/SustainableCities/What.html, 20.05.2009. 392 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo Although sustainable development is seen as a global aim, each community/society needs to develop its own concrete policies in the direction of its own necessities to attain this goal. It is more rational to undertake the sustainability in harmony at the local, regional, national and international levels. Given that more than half of the world population and about 80% of European Union population live in cities, it can be easily stated that they are the most important places to implement sustainable development. In fact, with their strong cultural and economic power, cities have important advantages for reaching the sustainability goals by the societies (Palabıyık, 2005: 619). Local governments may be the most important actors to ensure the sustainable development and especially the urban sustainability or sustainable urban development. Being the closest units of public administrations to public, providing efficient and productive local public services, and improving and settling local democracy, local governments have priviliged position in the public administration system. When this position of local governments has been thought, it is basic and natural for them to undertake a dominant role in the success of urban sustainability, too. By ensuring local sustainability through the natural resource management, urban development, management of pollution, public health, public services, and education, local governments also contribute to national sustainability (Gökçeer, 1994: 27-28). Basic strategies that local governments should follow to ensure sustainable development may be listed as follows: • To use the indicators for sustainable development in the developing environmental targets, • To put the sustainable development as the main aim in designing Urban Development Policies, • To develop environmental protection and management systems to protect and improve the environment, • To develope environmental inventory approaches, • To inroduce and spread the environmental protection policies and programs to the public, • To get communicated and cooperated with international institutions about sustainable development. Local governments, which have the responsibilities in designing and implementing policies, especially in the local areas, have to mobilize their available resources towards the goal of sustainable development. It is obvious that the central governments also have to undertake various responsibilities towards the same goal. The most tops of these responsibilities include: • To give flexibility and fiscal autonomy to the local governments in their environmentally friendly enterprises and plannings, • To guide the local governments in both increasing the quality of urban life and using resources, • To support the field and transportation plans of the local governments, which are for sustainable development, • To protect the sustainable development strategy in all central planning policies, • To adopt the legislation and economic mechanism regarding the environmentally friendly enterprises, • To support and encourage the projects which take care of cleaner and rational use of resources, • To develop objective criteria and systems for all economic sectors to make the environmental inventory and monitor the developments, • To ensure relationships and partnerships among the main sectors and channel these into sustainable development and speed up the development (Gökçeer, 1994: 28): In recent years, the relationship between the global and local process related to the sustainable development is noticed, and the importance of bringing forward the sustainable development in the local and regional level as an aim is stressed. Particularly, in various formal declarations, such as in Rio in 1992, at Habitat II in Đstanbul in 1996, in Johannesburg in 2002, it is indicated that the local governments are very important in the application of sustainable development policies succesfully (Adaman and et al., 2004: 130). Sustainable Development and Local Agenda 21 Agenda 21, an output of United Nations Conference on Environment and Development held in Rio de Janeiro in 1992, is defined as action plan which is the ultimate expression of global consensus and politic commitments towards acvieving “sustainable development” that aims to create a balance between development and environment (Kavili Arap, 2004: 163). Agenda 21 brings forward “global partnership” as an indispensable method to reach the goal of “sustainable development”. Because environmental and urban problems have the characteristics of locality, it is necessary to make efforts locally to prevent the problems before they appear or to solve them as soon as they appear. This is a natural result of both conventional decentralization approach and the principle of “providing services by administrative units closest to the public”. The declaration of Agenda 21 is a result of the efforts to build up arrangements on that sense and by this declaration, the duties assigned to local administration and compatriots have been overemphasized (Adıgüzel, 2003: 50). Local Agenda 21 (LA-21) can be defined as a participatory process with multiple agents aiming to reach the targets of Agenda 21 in local level by means of preparation of a long term strategic plan for developing solutions 393 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo to the problems in front of sustainable development and for their implementation (Sağır, 2003:32). The emergence of Local Agenda 21 is related to the process of turning the balance against environment which already exists in human-environment relation. In this process people realize the changing balance between human and environment. Due to the global importance of the problem, humanity initiated solution processes by international organizations (especially United Nations). The first important step of the solution processes was the Stockholm Conference held in 1972. The historical process that lasted since then to Johannesburg Summit in 2002 can be summarized as follows (Emrealp, 2005: 13-25): The United Nations Conference on the Human Environment (Stockholm Conference-1972): The term of “sustainable development” was first defined in the United Nations Conference on the Human Environment held in June 1972 in Stockholm, Sweden. Three principles stated in the Stockholm Declaration as looking after intergeneration equity in using resources, connecting economic and social development with environment and emphasizing the coexistence of development and environment have formed basis for “sustainable development”. The importance and function of participation was also mentioned for the first time in the international documents by this conference, though it was stated in a weak manner. The United Nations convened the Habitat: United Nations Conference on Human Settlements (Vancouver-1976): It became apparent in the UN Habitat I Conference, held in 1976 in Vancouver, Canada, that the policy which only the central authorities can be an object of the UN has steadily bankrupted. At this stage, it came out that international solutions needs involvement of local governments and non governmental organizations. This new expansion resulted in accepting local governments and non governmental organizations as indispensable “partners” at the international level. The United Nations Conference on Environment and Development “Earth Summit” (Rio de Janeiro-1992): The starting point of Agenda 21 was the UN Conference on Environment and Development, so-called “Earth Summit”. This Summit not only put the sustainable development into our life but also enabled the adoption of participatory mechanisms and processes (Toprak Karaman, 1999:60). United Nations International Conference on Population and Development (ICPD), (Cairo-1994): The first important summit following the Rio Conference was held in 1994 in Cairo, the capital of Egypt. The Cairo Conference focused on Chapter 5 of Agenda 21 titled “Demographic Dynamics and Sustainability”. World Summit for Social Development Copenhagen (Copenhagen-1995): The UN Social Development Conference was held in March 1995 in Copenhagen, the capital of Denmark. The conference focused primarily on the Chapter 3 titled “Combating Poverty” and other several subjects dealt with in Agenda 21. The importance of setting up “partnerships” was emphasized in the main chapters of the Action Plan adopted in the conference. A global belief that democracy and a transparent and accountable governance and administration are the indispensable basis of a social and human-centered sustainable development is expressed especially in Chapter 5. The United Nations’ Fourth World Conference on Women (Beijing-1995): Chapter 24 of the Agenda 21 carries the title of “Global Action for Women towards Sustainable and Equitable Development”. In this section, the importance of participation of women in all development activities in full, equal and most useful way was underlined. To ensure this target, various action plans and agreements adopted by the international community. Fourth World Conference on Women Beijing Declaration1 argued that women participaton in the process of economic and social development, equality of opportunity and as practitioners and beneficiaries of people-centered sustainable development full and equal participation of women and man take place in this process. United Nations Conference on Human Settlements (Habitat II) (Đstanbul-1996): Recognization of Agenda 21 in Turkey has been largely through the UN Conference on Human Settlements (Habitat II) held in Istanbul in 1996. At the Habitat Agenda, it was indicated that the indispensable foundation of the sustainable development based on democratic, respect for human rights, transparent, participant and accountable governance features. Thus, the principles of good governance for the 21st century were formulated ib this conference. The Habitat Agenda ended with ephasis that pre-condition of the success of this agenda depends on the participation of local governments, civil society organizations and active participation of other local actors. City Summit was strengthened and riched the movement of LA-21 launched in Rio by underlining the “facilitator” role of the management, by highlighting the basic principles of good governance, and by encouraging cooperation of local governments, civil society and the private sector. United Nations Millennium (Millennium) Declaration (New York-2000): Issued on 6-8 September 2000 at the United Nations’ Headquarter in New York, the United Nations Millennium Declaration as one of the accepted document of today’s most powerful global commitment and priority was signed by the heads of state and government of 189 countries, including Turkey at the beginning of a new millennium. In this declaration, eight goals2 were set to be reached by 2015 for development and poverty 1 2 http://www.un.org/womenwatch/daw/beijing/platform/declar.htm, 28.04.2009. “Eight Millenium Development Goals” are: 394 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo reduction. LA-21’s have a vital fuction in the achieveiment of these goals. The large parts of the document, namely “Development and Poverty Reduction”, “Protection of Common Environment”, “Human Rights”, “Democracy” and “Good Governance” are directly related to LA-21 processes. United Nations the World Summit on Sustainable Development (WSSD) (Johannesburg-2002): Being the first global conference of 21st century, the UN World Sustainable Development Summit was held on 26 August-4 September 2002 in Johannesburg, Republic of South Africa. It was also the first international conference that was named after the term “sustainable development”. It is known commonly as Rio+10 as it aimed to assess the Agenda 21 processes started by Rio Conference in 1992. As two main outputs (results) of the summit “Plan of Implementation of the World Summit on Sustainable Development”1 and the “Johannesburg Declaration on Sustainable Development” have been adopted at the summit. In Johannesburg Sustainable Development Declaration, global commitments to the goal (objective) of sustainable development are repeated, the importance of partnerships is expressed and importance of application is emphasised. Moreover, despite the “best practice” examples of world-scale and well-intentioned efforts, it is argued that very limited and inadequate achievements have been obtained in the evaluation of success of Agenda 21 from ten-year period after the Rio Summit. In various parts of the Local Governments Dialogue Report which took place among the UN documents offered to the Johannesburg Summit, the major steps taken at the local level are mentioned about implementation of Agenda 21. The Report pointed out that LA-21s were the most efficienct and stable output of the Rio Conference. Local Agenda 21: Rise and Scope Local Agenda 21 (LA-21), that aiming to reaching Agenda 21 targets on the local base via preparation and application of a long-term strategic plan which oriented primarily toward the solution of sustainable development problems, is a participatitive and multi-sectoral process (Kaya, 2007: 180). This process colored with volunteerism principle, is a loosely organized civil initiative movement and does not depend to any institution whatsoever. “City Councils”, “City General Assemblies” and the like that main vehicles of LA-21 are constituted via city public institutions NGOs and shared participatition of city-dwellers (Adıgüzel, 2003: 51). At “UN Environment and development conference” the world summit held in Rio de Janerio in 1992, in the scope of Agenda 21 that is welcomed by UN as an application program for sustainable development, LA-21 program included as well. These arguments are placed in 28th chapter of Agenda 21 titled “Local Authorities Initiativer in Support of Agenda 21”: “Because so many of the problems and solutions being addressed by Agenda 21 have their roots in local activities, the participation and cooperation of local authorities will be a determining factor in fulfilling its objectives. Local authorities construct, operate and maintain economic, social and environmental infrastructure, oversee planning processes, establish local environmental policies and regulations, and assist in implementing national and subnational environmental policies. As the level of governance closest to the people, they play a vital role in educating, mobilizing and responding to the public to promote sustainable development.”2 Four main targets are put in place in corresponding chapter: As a first target, every single local authority in all countries is supposed to start a participatitive process with their own communities and constitute a consensus regarding a LA-21 for their cities. Secondly, cooperation is encouraged between international community and local authorities as well as cooperation amongst local authorities at international scope. Thirdly, in order to enhance experience and knowledge/information sharing coordination and cooperation level are targeted to be increased between local authorities and other representatives of local authorities. The last but of course not the least, programs aiming to effective participation of women and young people to the process of decision making, planning and implementation are encouraged at all local authorities in the world. The following objectives are proposed for this programme area: Goal 1: Eradicate extreme poverty and hunger Goal 2: Achieve universal primary education Goal 3: Promote gender equality and empower women Goal 4: Reduce child mortality Goal 5: Improve maternal health Goal 6: Combat HIV/AIDS, malaria and other diseases Goal 7: Ensure environmental sustainability Goal 8: Develop a global partnership for development http://www.un.org/millenniumgoals, 11.05.2009. 1 http://www.un-documents.net/jburgpln.htm, 21.05.2009. 2 http://www.un.org/esa/sustdev/documents/agenda21/english/agenda21chapter28.htm, 03.05.2009. 395 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo (a) By 1996, most local authorities in each country should have undertaken a consultative process with their populations and achieved a consensus on “a local Agenda 21” for the community; (b) By 1993, the international community should have initiated a consultative process aimed at increasing cooperation between local authorities; (c) By 1994, representatives of associations of cities and other local authorities should have increased levels of cooperation and coordination with the goal of enhancing the exchange of information and experience among local authorities; (d) All local authorities in each country should be encouraged to implement and monitor programmes which aim at ensuring that women and youth are represented in decision-making, planning and implementation processes. Every single local organization is encouraged to develop their own LA-21s in cooperation with private sector institutions, local authorities, fellow countrymen and local management authority at the framework of reaching at targets that spesified at 28th chapter of Agenda 21. Each local authority should enter into a dialogue with its citizens, local organizations and private enterprises and adopt “a local Agenda 21”. Through consultation and consensus-building, local authorities would learn from citizens and from local, civic, community, business and industrial organizations and acquire the information needed for formulating the best strategies. At the process that starting from 1992 the world summit in which LA-21 emerged, to 2002 Johannesburg UN world sustainable development summit, a number of universal UN conferences and summits are carried out. These organizations result in the widespread acceptance of LA-21s, which are local projections of “universal partnership”, and became the international pillar of this process. LA-21 is essentially a vision development aimed at city’s sustainable future and subsuquently suggests that a strategic, long-termed local action plans’ preparation and implementation that makes the vision to be carried out. LA-21 process is supposed to be open to all parts of society whether it be organized or not and stimulate participatitive policies and mechanism. Development of a governence approach based on variouss participatitive mechanism and local partnership is crucially important (Kaya, 2007: 181-182). Local Agenda 21 Practices in the World LA-21 has been implementing across the world in 135 countries since 1992. Even “LA-21” concept is directly not used; city numbers that participate to this process under similar names (Sustainable Cities Programs, Healty Cities Program etc.) are being increased day by day. UN development program, which is the coordinator of LA-21 at world scope, supports LA-21 processes that were accepted by around 85 countries that contains Turkey as well. LA-21 initiatives as of Rio and Johannessburg Summits are being accepted by UN as the most successful activities that provides local participatition. The outcome of Local Agenda 21 implementations since the Rio Summit finds its paramount expression in the report entitled “Implementing Agenda 21: Report of the Secretary-General”, prepared by the UN Secretary-General Kofi Annan for WSSD - the World Summit on Sustainable Development, held in 2002 in Johannesburg, which underlines that “At the local level, the most successful umbrella for participation has been the local Agenda 21 initiatives” (UNDP, 2006: 2). In addition, at Johannessburg Summit where “Local Authorities Dialog Report” is presented to UN, it is pointed out that local authorities have answered effectively to the Agenda-21 thanks to LA-21 (Kaya, 2007: 184185) Aalborg Charter has been signed after first Europeen sustainable cities and towns conferences held in Aalborg/Denmark between May 24-27th 1994. With this charter, in the framework of LA-21, in reaching sustainable cities and towns a campaign starting point which supposed to be implemented at local and regional level in Europe has been constituted. City authorities that signed the charter have made commitments of performing actions placed in the charter in order to have more sustainable cities. The Lisboa Action Plan: from Charter to Action , that projects more tangible steps in order to reach sustainable cities and towns, and that has been held in Lisboa at October 1996, has been constituted. After the third European conference on sustainable cities and towns occurred in Hannover, Germany, on 9-12 February 2000, in June 2004 again under the hostings of Aalborg a conference, Aalborg Commitment (Aalborg+10) statement has been accepted and opened to signature. On March 21-24, 2007 at fifth conference held in Spain/Sevilla (Sevilla 2007 Fifth European Conference on Sustainable Cities and Towns: Taking the Commitments to the Streets) according to signature listing around 2500 local authorities in more than 40 countries (for example, 1084 municipalities in Spain, 833 municipalities in Italy) have signed Aalborg Charter. Turkey has 7 municipal signatures of it. Furthermore, Çorum Governorship and Marmara and Vicinity Municipalities Association signed it provisionally. The Aalborg Commitments declared in 2004 has not yet been signed by Turkey. 396 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo 1994 Aalborg Charter that charter of European cities and towns towards sustainablitiy and similar attemps are strong evidence that LA-21s are very important in Europe. European Union carefully supervises cantidates countries practises about LA-21. So, activities in Turkey that are undertaken in the framework of LA-21 bears vital importance. Local Agenda 21 Practices in Turkey As a response to the call made to local governments in Chapter 28 of the Agenda 21, LA-21 Program have been implemented in thousands of cities around 14 countries since 1992. United Nations Development Programme (UNDP), the coordinator organization for Agenda 21 over the world supports LA-21 processes in 85 countries, including Turkey. Today, LA-21 practices in Turkey are being carried out by the support of UNDP and under the coordination of United Cities and Local Governments, Middle East and West Asia (UCLGMEWA). The priority and importance should be given to the openness of LA-21 for the participation of both organized and non-organized social sectors and to the development of policies and mechanisms encouraging participation. Turkey LA-21 Program is open to all local governments, except for village administrations. A total of 71 local governments1 from different geographical regions are partners to this program as of April 2009, including 10 metropolitan municipalities, 1 special provincial administration, 21 provincial municipalities, and 39 town and district municipalities. Phases of Local Agenda 21 (LA-21) Programme in Turkey2 Turkey LA-21 Program has been carried out in four phases since 1997 when it started. The developments in each phase can be summarized briefly as follows. Phase I - Promotion and Development of Local Agenda 21s in Turkey (1997-1999) This is the phase on which the LA-21 processes in Turkey were launched in late 1997 via the project entitled “Promotion and Development of Local Agenda 21s in Turkey”, with the support of UNDP and under the coordination of International Union of Local Authorities Section for the Eastern Mediterranean and Middle East (IULA-EMME). This project was successfully completed in December 1999. Phase II - Implementing Local Agenda 21s in Turkey (2000-2003) In this phase, following the success of the first project, a new project entitled “Implementing Local Agenda 21s in Turkey” started in January 2000. The overall purpose of the Project is to strengthen local “governance” by ensuring that civil society participates in decision making and influences local investment. In a short time, a number of sub-projects and over 50 new partners from local authorities are included into the project. As a result of this, the name of the project was changed into the “Turkey Local Agenda 21 Program”. The Program had five basic objectives: The first objective was to increase the number of local authorities engaging in Local Agenda 21, and to promote and develop participatory processes in new partner cities. The second objective was to prepare local action plans in new partner cities and to implement them in these cities. The third objective was to launch campaigns to inform the public, as well as to work for increasing international support. The fourth objective was to ensure long term sustained support for the Local Agenda 21 processes. The fifth and final objective was to give a facilitating role for Local Agenda 21 in the recovery and reconstruction process of the Marmara earthquake3. Phase III - Localizing the UN Millennium Development Goals and WSSD4 Plan of Implementation through the Turkey Local Agenda 21 Governance Network (2004-2006) The project carried out during this phase had two main objectives: The first objective was to institutionalize LA-21 processes and mechanisms at the local and national levels through campaigns and capacity building initiatives. The second objective was to launch a Local Agenda 21 Small Grants Program to promote and substantiate the MDGs and WSSD Plan of Implementation at the local 1 http://www.la21turkey.net/`http://www.la21turkey.net/dl/yg21/IV_Asama/JanuaryMarch2009Progress.pdf, 13.05.2009. http://www.la21turkey.net, 21.04.2009. 3 http://www.la21turkey.net/index.php?pages=topic&op=cat&cid=118, 08.05.2009. 4 WSSD: World Summit on Sustainable Development (Johannesburg, 2002), http://www.un.org/events/wssd, 09.05.2009. 2 397 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo level1. In order to attain these objectives, there had been several projects supporting each other. In this connection, by the support of UNDP-TTF Program and through the project entitled “Establishment of Sustainable Networking to Encourage Democratic Local Governance in Turkey”, the available web site renewed to be more interactive and the “Local Agenda 21 Governance Network” was developed (IULA-EMME, 2006: 14). In addition, by the support of the MATRA Program of the Government of Netherlands, another project entitled “Enhancing the Role of the Women and the Youth in Local Partnerships and Networking for Transparency” was carried out to increase the participation of women and youth to local decision-making procedures as well as to all fields of local governance2. The third project carried out in this phase was entitled “Localizing the UN Millennium Development Goals and WSSD Plan of Implementation through Turkey Local Agenda 21 Governance Network”. The project envisaged to increase the interest and support of central government and to promote better. By this project, “Supporting the Local Projects Program” was also started to institutionalize LA-21 processes (Kaya, 2007: 186-187). Phase IV - Localizing the UN Millennium Development Goals in Turkey through the Local Agenda 21 Governance Network (2006-2008) In this phase, the project entitled “Localizing the UN Millennium Development Goals (MDGs) in Turkey through the Local Agenda 21 Governance Network” was designed to localize the Government’s MDGs commitments by advocating the prioritization of the UN MDGs in local action. It depended on participatory local governance as the basic means for achieving these goals (UCLG-MEWA, 2009: 21). The specific targets of the project included to launch a campaign at the national and local levels under the name of “Our City Supports the UN Millennium Development Goals”; to build monitoring capacities for local authorities and City Councils; to develop and internalize local governance practices; to establish the support, monitoring and evaluation mechanisms for localizing the MDGs; to promote “best practices” of partnerships between local governance actors and the private sector (UNDP, 2006: 4). This project is still ongoing. The City Councils as One of the Basic Components of Local Agenda 21 The primary decision-making and “enablement” mechanisms for the LA-21 Program are the participatory platforms, namely the City Councils. These councils are supported and complemented by a number of different stakeholders in the city, such as working groups, women and youth councils, and platforms of children, elderly and disabled. Owing to the LA-21 Program, the “City Councils”, along with other participatory mechanisms and processes, are given a legal basis by the Article 76 of the new Law on Municipalities (No. 5393) (UNDP, 2006: 6). City Councils are the forms of governance mechanisms that meet central government, local government, and civil society under a partnership approach. These councils provide democratic and effective platforms for discussions among the participants whose number depends on the size of the cities about development priorities, urgent problems and possible solutions to them. The basic functions of city councils include identification of priorities and targets as well as basic strategies and areas of action for “sustainable development” and forming a common vision for their cities (Emrealp, 2005: 65). In addition they monitor all activities of local governments and prepare reports to be discussed by the public, thus they fulfill the task of democratic follow-up (Palabıyık ve Görün, 2004: 263). Citizens take part in working groups in accordance with their field of interest on the basis of voluntariness. There is no hierarchical relationship in these groups whose main aim is to work in harmony and efficiently (Kayan, 2005: 31). Conclusion Ensuring sustainable development is the common goal of all humanity. To achieve this goal, only the efforts of the central government of course can not be enough. It also requires efforts from local governments, international, supranational, private sector, professional, civil society organizations as well as citizens. Having a dynamic structure, local governments are successful units within the public administration system. Their basic characteristic of being the closest administrative unit to citizens provides them with the opportunity to make local services in an efficient and effective way. This characteristic also makes them to be the driving 1 2 http://www.la21turkey.net/index.php?pages=topic&op=cat&cid=117&tid=365, 10.05.2009. http://www.la21turkey.net/index.php?pages=topic&op=cat&cid=120&tid=328, 07.05.2009. 398 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo force in local and regional development. Finally it provides local governments with leading roles in promoting the culture of local democracy among the citizens. Undoubtedly one of the most successful products of LA-21 process is the establishment of city councils as platforms for local participation and democratic debate. In Turkey, the Law on Municipalities of 2005 makes the establishment these councils obligatory not only in the partner cities to LA-21 Program but also in all districts that have got a municipality. In spite of many shortcomings in legal and practical terms, city councils have become important units in Turkish Local Administrative System. Their importance derives basically from the functions of determining priorities and targets as well as basic strategies and areas of actions for “sustainable development” and forming a common vision for their cities. Despite these effective functions of the city councils, the number of the partner local governments to LA-21 Program is extremely inadequate (71) as of April 2009. Moreover, with a few exceptions, Turkish local governments seem uninterested or unwilling to sign the European Urban Charter (1992), Aalborg Charter (1994), Aalborg Commitments (2004) and similar texts. Therefore it is necessary for local governments to give more importance to LA-21 processes like their counterparts in Europe. Similarly, it is also necessary for central government to continiue its leading, encouraging, and to some extend forcing, supports. Considering European Union member states’ attitudes to LA21 processes, this becomes a more urgent need for Turkey’s compliance in this field. References Adaman, F., et al (2004). Sürdürülebilir Kentleşme: Yalova Örneğinde Bir Yöntem Önerisi, Yerel Yönetimler Kongresi, Dünden Bugüne Yerel Yönetimlerde Yeniden Yapılanma, Bildiriler Kitabı, Çanakkale. Adigüzel, Ş. (2003). Yerel Düzeyde Yönetime Katılım ve Yerel Yönetim Sürecindeki Đşlevleri Açısından “Yerel Gündem 21: Malatya Belediyesi Yerel Gündem 21 Örneği, Çağdaş Yerel Yönetimler Dergisi, Cilt 12, Sayı 1, Ocak 2003. Bozlağan, R. (2002). Sürdürülebilir Gelişme Düşüncesi, Çağdaş Yerel Yönetimler Dergisi, Cilt 11, Sayı 1, Ocak 2002. Emrealp, S. (2005). Yerel Gündem 21 Uygulamalarına Yönelik Kolaylaştırıcı Bilgiler El Kitabı, Yerel Gündem 21 Programı, IULA-EMME Yayını, Đstanbul. Gökçeer, F. (1994). Şehirlerimizde Sürdürülebilir Gelişmenin Değişim Yönleri, Çağdaş Yerel Yönetimler Dergisi, Cilt 3, Sayı 2, Mart 1994. Göktürk, A., & Kavili, S. (2000). Yerel Gündem 21 ve Katılım…!, Yerel Yönetimler Sempozyumu Bildirileri Kitabı, Ankara. IULA-EMME-Uluslararası Yerel Yönetimler Birliği Doğu Akdeniz ve Ortadoğu Bölge Teşkilatı (2006); “Türkiye Yerel Gündem Yönetişim Ağı Yoluyla BM Binyıl Bildirgesi Hedefleri ve Johannesburg Uygulama Planı’nın Yerelleştirilmesi” Projesi Gelişme Raporu. Kavili Arap, S. (2004). Yerel Gündem 21 ve Yerel Yönetişim, Yerel Yönetimler Kongresi, Dünden Bugüne Yerel Yönetimlerde Yeniden Yapılanma, Bildiriler Kitabı, Çanakkale. Kaya, E. (2007). Kent Yönetiminde Yeni Yaklaşım, Yerel Kalkınma Yönetimi, Genişletilmiş Đkinci Baskı, Okutan Yayınevi, Đstanbul. Kayan, A. (2005). Yerel Gündem 21, Belediyelerin Personel Sorunları ve Yerel Gündem 21’in Belediyelere Sağlayacağı Bazı Katkılar - I”, Yerel Yönetim ve Denetim, Cilt 10, Sayı 12, Aralık, 28-31. Orhan, G. (2005). Yerel Yönetimler ve Çevre, Yerel Yönetimler Üzerine Güncel Yazılar 1 Reform, Nobel Yayınları, Ankara. Palabiyik, H. (2005). Sürdürülebilirlik ve Yerel Yönetimler: Uygulanabilirliği ve Ölçümü Üzerine, Yerel Yönetimler Üzerine Güncel Yazılar 1 Reform, Nobel Yayınları, Ankara. Palabiyik, H., & Görün, M. (2004). Belediye Meclislerinde Temsil ve Katılım: Çanakkale Belediye Meclisi Örneği, Yerel Yönetimler Kongresi, Dünden Bugüne Yerel Yönetimlerde Yeniden Yapılanma Bildiriler Kitabı, Çanakkale, 257-272. Sağir, M. (2003). Küreselleşme Süreci ve Siyasal Katılımda Yeni Arayışlar: Yerel Gündem 21 Antalya Kent Konseyi Kadın Meclisi, Çağdaş Yerel Yönetimler Dergisi, Cilt 12, Sayı 4, Ekim 2003, 28-41. Toprak Karaman, Z. (1999). Yerel Siyasetin Dinamikleri ve Yerel Gündem 21, Đzmir Yerel Gündem 21 Siyasette Kadınlar ve Gençler, Đzmir, 53-71. Toprak Karaman, Z. (1998). Çevre Yönetimi ve Politikası, Anadolu Matbaacılık, Đzmir. UCLG-MEWA - United Cities and Local Governments Middle East and West Asia Section (2009). Progress Report, No: 10, 1 January 2009 to 31 March 2009. 399 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo UNDP - United Nations Development Programme (2006); Localizing the UN Millennium Development Goals in Turkey through the Local Agenda 21 Governance Network Project. http://ec.europa.eu/environment/urban/pdf/aalborg_charter.pdf, 03.05.2009. http://www.aalborgplus10.dk/default.aspx?m=2&i=307, 19.05.2009. http://www.bnpparibas.com/en/sustainable-development/text/EN_txt12_lisboa%20action%20plan.pdf, 03.05.2009. http://www.la21turkey.net, 21.04.2009. http://www.la21turkey.net/dl/yg21/OrtaklarListesi.pdf, 13.05.2009. http://www.la21turkey.net/index.php?pages=topic&op=cat&cid=118, 08.05.2009. http://www.la21turkey.net/index.php?pages=topic&op=cat&cid=120&tid=328, 07.05.2009. http://www.mimarlarodasi.org.tr/UIKDocs%5Caalborgsarti.pdf, 02.05.2009. http://www.rec.org/REC/Programs/SustainableCities/What.html, 20.05.2009. http://www.sevilla2007.org, 19.05.2009. http://www.un.org/esa/sustdev/documents/agenda21/english/agenda21chapter28.htm, 03.05.2009. http://www.un.org/events/wssd/, 09.05.2009. http://www.un.org/womenwatch/daw/beijing/platform/declar.htm, 03.05.2009. http://www.un-documents.net/jburgdec.htm, 21.05.2009. http://www.un-documents.net/jburgpln.htm, 21.05.2009. 400 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 280 Title A name given to the resource Functions of Local Governments for the Implementation of Sustainable Development: The Case of Turkey Author Author PEKTAS, Ethem Kadri Abstract A summary of the resource. The term “Sustainable Development” was used for the first time in 1987 by Brundtland Report known as “Our Common Future”. Being about meeting the needs of today without diminishing the capacity of future generations to meet their needs, sustainable development is the most important common goal of human being today. There have been many international efforts to reach this common goal since the United Nations Conference on Environment and Development (UNCED) in Rio de Janeiro, Brazil, in 1992. This conference established a connection between Sustainable Development and Local Governments in its main concluding document Agenda 21. Titled as “Local Authorities’ Initiatives in Support of Agenda 21”, Chapter 28 of this document calls each local authority to enter into a dialogue with its citizens, local organizations and private enterprises and adopt “a Local Agenda 21”. In accordance with this call, the Local Agenda 21 Program has been carried out in thousands of cities all over the world, including Turkey. In this country, local governments especially municipalities provide several services to their inhabitants to ensure Sustainable Development in their cities on the basis of the related legislation. This study aims to examine the functions of local governments towards Sustainable Development. In doing so, the study depends on the case of Turkey. Date A point or period of time associated with an event in the lifecycle of the resource 2009-06 Keywords Keywords. Conference or Workshop Item PeerReviewed HB Economic Theory Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3451 Title A name given to the resource FUNNY AS HELL: CONCEPTUAL INTEGRATION THEORY AND STAND-UP COMEDY Author Author Hot, Irma Abstract A summary of the resource. The construction of meaning in humor research falls within the cognitive group of operations present in everyday human life and occurring at a lightning speed invisible to the conscious human mind. The topic of this paper is, hereby, Cognitive-linguistic analysis of humor in stand-up comedy. The analysis is based on Fauconnier and Turner’s Blending Theory with special attention to jokes with religious content taken from the materials of American stand-up comedians. The aim of the paper is to prove that the conceptual integration theory is able to account for the creation of meaning in this type of humorous discourse. Furthermore, the analysis will try to prove that the theory of conceptual integration can explain the creation of incongruity in the blends of religious jokes and show that disparagement is inherent in this type of humor. Keywords:Conceptual Integration Theory, Stand-up Comedy, Incongruity, Religion Date A point or period of time associated with an event in the lifecycle of the resource 2014 Keywords Keywords. Conference or Workshop Item PeerReviewed PE English https://omeka.ibu.edu.ba/files/original/8b76d88d0e03f7c417eafaf40d0f0066.docx 27b9e3b5a6de120abd45d7fa17bd458c https://omeka.ibu.edu.ba/files/original/c4c1ca66a8f7c0e48f304ebc543b1015.pdf 0c4e86510a2aaf59d572d70b56203ba4 PDF Text Text Futures Market and Derivatives Yusuf Demir Cumhuriyet University Turkey ydemirce@yahoo.com Merve Öz Selçuk University Turkey merveoz589@gmail.com Abstract: The derivatives markets provide an opportunity to investors, farmers, industrialists and other interested groups in their trade transactions to evaluate the formation of prices on future by considering not just past prices but also future prices by eliminating price uncertainty. Derivatives traded in these markets mainly fulfills the transfer function of economic risks and also with these considered derivatives, it is possible to use future instruments, to increase profit while realizing investment, to optimize the structure of portfolio, reaching stabilization for some derivatives markets’ participants’ financial situation, to soften large and reverse fluctuations and to determine the next development trend of spot markets. In today’s international financial system in which financial markets are getting integrated day by day and there are extreme and unpredictable fluctuations in exchange rates and interest rates, the most important element in terms of capital suppliers is achieving the most suitable investment environment to get highest profit with minimum risk. The main aim of international and institutional investors in terms of their portfolios is getting the highest return within the shortest time. And when we define this investment environment as securities market we face two main subsets: Spot or cash markets in which securities are traded directly and derivatives markets in which futures issued over securities or commodities are traded. With Hull’s own words, we are on the stage for anyone interested in finance to understand how constantly growing derivative instruments works, how they are used and are priced. In this paper it is aimed to evaluate the importance of derivative markets, its historical development and functioning principles of derivative markets within the framework of risk management. And also informing individuals, institutions and enterprises interested in instruments traded in derivative markets about the reason why these instruments are the subject of these transactions and quantification of these instruments and establishing the required dynamics in the need of derivatives and derivative markets in order to estimate easily exchange rates, interest rates and commodity prices which can be reveal in the future while these considered interested groups are making investment decision. Keywords: futures market, derivatives, financial instruments. 110 �110 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 2555 Title A name given to the resource Futures Market and Derivatives Author Author DEMIR, Yusuf OZ, Merve Abstract A summary of the resource. The derivatives markets provide an opportunity to investors, farmers, industrialists and other interested groups in their trade transactions to evaluate the formation of prices on future by considering not just past prices but also future prices by eliminating price uncertainty. Derivatives traded in these markets mainly fulfills the transfer function of economic risks and also with these considered derivatives, it is possible to use future instruments, to increase profit while realizing investment, to optimize the structure of portfolio, reaching stabilization for some derivatives markets’ participants’ financial situation, to soften large and reverse fluctuations and to determine the next development trend of spot markets. In today’s international financial system in which financial markets are getting integrated day by day and there are extreme and unpredictable fluctuations in exchange rates and interest rates, the most important element in terms of capital suppliers is achieving the most suitable investment environment to get highest profit with minimum risk. The main aim of international and institutional investors in terms of their portfolios is getting the highest return within the shortest time. And when we define this investment environment as securities market we face two main subsets: Spot or cash markets in which securities are traded directly and derivatives markets in which futures issued over securities or commodities are traded. With Hull’s own words, we are on the stage for anyone interested in finance to understand how constantly growing derivative instruments works, how they are used and are priced. In this paper it is aimed to evaluate the importance of derivative markets, its historical development and functioning principles of derivative markets within the framework of risk management. And also informing individuals, institutions and enterprises interested in instruments traded in derivative markets about the reason why these instruments are the subject of these transactions and quantification of these instruments and establishing the required dynamics in the need of derivatives and derivative markets in order to estimate easily exchange rates, interest rates and commodity prices which can be reveal in the future while these considered interested groups are making investment decision. Keywords: futures market, derivatives, financial instruments. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2014-04 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2303-4564 H Social Sciences (General)