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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

key in enabling Bosnia to attract foreign investments in this sector. Furthermore, NGOs and
governmental agencies will need to educate themselves in order to be able to apply for various
funds available in EU. Hundreds of millions of euros are available, but the projects proposal
must be of high quality and skillful people are key in bidding for these funds. Overall, Bosnia
and Herzegovina must continue the same way but should accelerate reforms and adjust its
market to more easily accommodate foreign investments in green energy and sustainable
development sector.
REFERENCES
1. NRC (2001). Climate Change Science: An Analysis of Some Key Questions, National
Academy Press, Washington, D.C., U.S.A.
2. Aleksandar Knezevic and Martin Tais (2007) Energetska efikasnost i obnovljivi izvori
energije, Prioriteti energetske strategije u BiH, Fondacija Heinrich Boll, p 91,92,93. URL
http://www.boell.ba/downloads/energetska_efikasnost_i_obnovljivi_izvori_energije_final.pdf
, retrieved on April 23, 2012
3. Schneider, L. (2007), An evaluation of the CDM and options for improvement, URL
http://wwf.panda.org/what_we_do/footprint/climate_carbon_energy/energy_solutions/resourc
es/?118000/An-evaluation-of-the-CDM-and-options-for-improvement , retrieved on February
12, 2012
4. Energis (2010) Hydropower, URL http://energis.ba/?lang=bh&amp;n1=3&amp;n2=17&amp;n3=0&amp;c=16
, retrieved on February 2, 2012
5.
Biomass
Energy
Centre
(2011)
What
is
biomass?,
URL
http://www.biomassenergycentre.org.uk/portal/page?_pageid=76,15049&amp;_dad=portal&amp;_sche
ma=PORTAL retrieved on March 10, 2012
6. International Energy Agency (2011) Solar Energy Perspectives: Executive Summary, URL
http://www.webcitation.org/63fIHKr1S , retrieved on January 15, 2012
7. Bloomberg New Energy Finance (2011) Global Trends in Renewable Energy Investment,
5, ISBN: 978-92-807-3183-5
8. UNDP (2011), Clean Development Mechanism Projects – Pathway to New Investments in
BiH, URL http://www.undp.ba/index.aspx?PID=7&amp;RID=723 , retrieved on January 18, 2012
9. The Carbon Neutral Company (2012) Climate change summary, URL
http://www.carbonneutral.com/knowledge-centre/climate-change-summary/ , retrieved on
February 25, 2012
The Relationship Between Tax Revenue And Economic Growth In Turkey: The Period
Of 1975-2011
Yeşim Helhel,Yakup Demir
Akdeniz University, Tourism Faculty, Antalya, TR
Abstract
In the study, the relationship between tax revenues and economic growth for the Turkish
economy has been examined in the period of 1975-2011. Johansen Juselious cointegration test
32

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

and Granger causality test have been used in order to find long term and short term
relationship, respectively. Impulse-response function and variance decomposition analysis
have been applied via VAR model. The findings have shown that there is interaction between
tax revenue types and the economic growth in the long term and is not such an interaction in
the short term. The effect of the shock given to indirect tax revenue to economic growth rate
has decline; the response of growth rate to shock given to direct tax revenue has been
tendency to rise up towards the end of the period. In the variance decomposition method;
direct tax revenue is more effective than indirect one. But, the growth rate that is expressed by
GDP (gross domestic product) or other factors affecting growth rather than tax revenue has
been appeared affected itself.
Keywords: Direct tax, indirect tax, economic growth, granger causality test, co-integration
test, VAR
1.INTRODUCTION
Turkey has adopted foreign trade policy and strengthening of free market economy as an
economic growth model with the beginning of 1980’s, and applied them so far as basic
principles. In this model, increase of demand, encouragement of private sector and making the
price policy more functional are acceptable principles of the free market. The government that
has fiscal and monetary policy instruments is assumed as a catalyst instead of interference to
economy. The major fiscal policy tools to have sustainable growth process by government are
(Paksoy, S. and S. Bakan, 2010, p.154) ;
 Expenditure
 Income
 Debt policies.
Aside from expenditure and debt policies, tax revenue is the most important tool within the
income policy. Tax is an economic value to finance public services taken by individual &amp;
corporation compulsorily according to their ability to pay ( Pehlivan, O., 2009: p.19). It is
important that while government actualizes fiscal and non-fiscal services, tax burden should
be delivered equitable, and the distribution of tax should balance the condition of stability.
Moreover, tax should be taken in accordance with legal principles, and should increase the
level of welfare. But these considerations are not enough alone. It’s also important that tax
revenue must be used for society services and contribute the country’s economic growth and
development, otherwise, the citizens of the country damage from that wrong policy.
Economic growth is one of the macro variables related to tax revenues. Neo-classic growth
models claimed that economic policies don’t have any impact for long term growth
percentage and they also adverted that government’s interference by means of fiscal policy is
unnecessary, moreover, damages optimal distribution of resources. In spite of these theories,
endogenous growth models revealed that fiscal policy tools, such as public expenditures,
taxation and subsidies etc. have strong impact on long term growth percentage. Many models
have been constituted to prove this case (Yanpar, A., 2007, p.1).
When the impact of taxes on economic growth has been analyzed, the distinction of direct and
indirect taxes has been made in recent years. Due to the importance of that discrimination to
shape tax system vigorously, the relationships between aforementioned tax types and
economic growth have been evaluated by means of Vector Autoregressive Model (VAR) in
our study. Although our study is similar to the other studies related to Turkish economy in
33

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

terms of analysis technique, it is different in terms of the analysis period. The focus of this
study is that the effect of tax revenues to economic growth will be positive in developing
countries in the case of legal regulations are made about tax policy.
2.DIRECT AND INDIRECT TAXES
Direct taxes are taken from individuals and institutions according to their levels of revenue
whose tax payer is also the same with payer on this subject, tax payer cannot transfer own tax
burden to others. Income and corporation tax are both example of direct taxes. Indirect taxes
arise from the use of services and goods. Everyone derived benefit from services or goods
liable to tax has to pay it at the same rate regardless of income level. Tax payer and payer are
different on this subject. Value added tax (VAT) and excise tax are both example of indirect
taxes (Temiz, D. , 2008, p.3).
Direct taxes which consist of income tax, property tax and corporation tax, indirect taxes
which consist of taxes taken from both domestic and foreign trade have different function and
impact on the economies. Direct taxes have the results for high income groups which have
inclination to high savings and investment and also low marginal propensity to consume. On
the other hand, indirect taxes have results for low income groups. The basic aim of the
taxation is to create resources to cover expenses of public for both developed and developing
countries. So, both tax types can also be used as a policy tool. However, the characteristics of
the distribution of tax revenues are expected to impact upon economic growth and
development line in the developing countries where indirect tax revenue is an important part
of total tax revenues (Açıkgöz, Ş., 2008, p.93).

Chart 1. The Percentage of Direct and Indirect Taxes (www.tcmb.gov.tr)
The high ratio of indirect taxes is closely associated with economic growth &amp; development.
Since tax systems &amp; policies are not fully settled in the developing countries, they focus on
indirect taxes (Göçer, İ., M., Mercan et all, 2010, p.99). While the ratio of direct tax to the
total tax revenue in the developed countries is high, it reverses for the developing countries.
This reversal is a result of easier collection of indirect taxes, and that easiness comes from the
unawareness of tax payers about statutory obligation. So, they do not respond to tax
executives. When the progress of direct and indirect taxes have been examined, the
composition of total tax revenue reversed from direct tax to indirect tax revenue after 1990s.
The indirect tax percentage rose up to 67% from 48% between 1990 and 2011. Turkey
distinguishes from developed countries with this tax structure. This deterioration is a result of
increased value added tax rate like excise tax rate. Table 1 shows the distribution of indirect
and direct tax revenue percentages between 1990-2011 years.

34

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

3.LITERATURE REVIEW
Engen and Skinner (1996) shown that tax affects economic growth in moderate levels in the
long-term. But this moderate effect may have large cumulative effect on living standards. Lee
and Gordon (2005) shown that corporation tax rate has negative relationship with economic
growth, and there is no relationship between tax rate associated with manpower income and
economic growth by analyzing 27 years long data set of 70 countries between 1970- 1997.
The relationship between economic growth and tax revenue in the period of 1965-2002 was
tested in the study of Anastassiou and Dritsaki (2005) for Greek economy. According to their
findings; there are relationships between total tax revenues, marginal direct tax rates, savingsincome rate and economic growth in the long term. They have reported that there is one-way
causal relationship from total tax revenue and marginal direct tax rate to the economic growth
in the short term.
The relationship between tax revenue and economic growth was investigated for Turkey by
Durkaya and Ceylan (2006), and they used Engle-Granger co-integration test in order to
search long term relations between direct and indirect tax revenues and economic growth.
Vector error correction model (VECM) and Granger causality test were used to investigate
short-term relations between direct and indirect tax revenues and growth for the years of
1980-2004. The findings show that there is causal relationship between direct tax and growth.
Temiz (2008) analyzed to find relationship between public tax revenues and economic growth
for 1960-2006 years. Temiz used Johansen co-integration test to search long term relations
and VECM to search short term relations. The findings show that there are two way causal
relationships between total tax revenue and economic growth. Açıkgöz (2008) used causality
analysis and impulse-response functions to determine causal relationships between tax types
and economic growth.
The findings are that the direction of casual relations is from economic growth rate towards
the proportion of direct tax revenue in total tax revenue and the proportion of indirect tax
revenue in total tax revenue. Additionally, one-way causal relationship from direct tax burden
(proportion of direct tax revenues to GDP) toward growth rate has also been reported.
Mucuk &amp; Alptekin (2008) applied VAR analysis in order to investigate the casual relationship
between tax types and economic growth for the period of 1975-2006 for Turkey. They
determined the relationships among them by means of co-integration test for the long term
duration, and the granger causality test shows that there is one way relation from direct tax
revenue toward economic growth in the short term
4. DATA SET, METHOD AND FINDINGS
In this study, the proportion of direct taxes to GDP (direct tax burden), proportion of indirect
taxes to GDP and annual GDP have been used for the period of 1975-2011 by using annual
data for Turkey. Annual data have been provided from Central Bank of Turkey and Revenue
Administration of Turkey. “L” and “D” used in front of variables refer to the logarithm of that
variable and first difference of that variable, respectively. ADF test has been applied to series
for stationary of them in order to investigate the relationships between the variables, and
Table1 indicates the ADF test results. Critical values have been evaluated by Eview-5
econometrical program and based on MacKinnon values.
ADF test results have indicated that the levels of variables are not stationary, but first levels of
variables are stationary. Johansen-Juselius test has been used in order to examine long-term
relationships between variables, by then. In Johansen-Juselius test, two different tests called
Trace and Max Eigen value statistics have been applied to determine the number of co35

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

integration vector and whether they are statistically significant or not. Before these tests have
been applied, the length of optimal lag should have been determined under different criteria.
Taking into account annual data usage and shortness of period, the maximum lag length has
been determined as 3. As can be seen in Table 2, the lag length has been found as “0”
according to the all criteria (Mucuk, M. V., Alptekin, 2008, p.165).
Table 1: The Results of ADF Test of Values
Unit Root Test Results Belong to Level of Variables
Constant –Trend

Constant
Variables

m ADF –t

M ADF-t

Ldtax

0

-2.028 (-2.611)

0

-2.051(-3.202)

Lgdp

1

-1.623 (-2.622)

4

-2.822(-3.243)

Lindtax

0

-0.128 (-2.611)

0

-2.951(-3.202)

Unit Root Test Results Belong to First Level of
Variables
Constant

Constant-Trend

Variables

m ADF –t

DLdtax

0

-9.312 (-2.614)

-9.228 (-3.207)

DLgdp

0

-4.131 (-2.627)

-4.327 (-3.229)

DLindtax

1

-6.850 (-2.615)

-6.731 (-3.209)

M ADF-t

Note: “m” given in the table shows dependent variable lag determined by Akaike
Information Criteria the values within parenthesis show critical values of MacKinnon
Table at the level of %10 statistical significance
Table 2: The Criteria of Lag Length Determination (* shows lag length by ciriteria)
Lag
Length

LogL

LR

FPE

AIC

SC

HQ

NA*
0

-21.36558

0.001529* 2.030465* 2.177722* 2.06953*

1

-14.42982

11.55959

0.001833

2.202486

2.791513

2.35875

2

-12.45725

2.794483

0.003437

2.788104

3.818901

3.06157

3

-4.74705

8.995233

0.004270

2.895588

4.368155

3.28626

36

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Johansen-Juselius co-integration test findings have been in Table 3 &amp; Table 4 according to
Trace &amp; Max-Eigen statistics in the framework of determined optimal lag length. Trace
statistics indicates “1” co-integration equation(s) at the (0.05) level. Max-Eigen statistics also
indicates “1” co-integration equation(s) at the (0.05) level. This results show that the variables
of both tax types and economic growth have been acted together in the long term.

Table 3. Cointegration Test According to
Trace Statistics

Table 4. Cointegration Test According to
Max Eigen Statistics

%5
Hypothesi Eigenvalu Trace
Critical
s
e
Statistic
Value

%5
Hypothesi Eigenvalu Trace
Critical
s
e
Statistic
Value

None

0.642802

3.804.75 2.979.70
8
7

None

0.642802

2.470.71 2.113.16
6
2

At most 1

0.326940

1.334.04 1.549.47
1
1

At most 1

0.326940

950.209

1.426.46
0

At most 2

0.147796

383.831

At most 2

0.147796

383.831

384.146

384.146

Short term relations of variables have been evaluated with Granger causality test as shown in
Table 5. There is no any relationship between economic growth and indirect or direct tax
revenues in the short term. It should be pointed out that there should be other factors which
may affect to the economic growth
Table 5: Granger Causality Test Results
Null Hypothesis

Chi-sq

Prob.

Growth is not the granger cause of indirect tax

0.674505 0.7137

Growth is not the granger cause of direct tax

0.273824 0.8720

Indirect tax is not granger cause of growth

2.740258 0.2541

Direct tax is not granger cause of growth

2.503435 0.2860

5. VAR ANALYSIS TEST RESULTS
Size of the effects of direct and indirect tax revenues to economic growth with the help of
VECM has been presented in this part. Evaluation has been completed through impulseresponse functions and variance decomposition analysis. VECM model has been used instead
of VAR models because of long term and consistent relationships among variables. Impulseresponse function (IRF) reflects the effects of one standard deviation shock in one of the
random error terms to the present and future values of internal variables. Chart 2 shows the
impact of the shocks that occur in the variables of direct and indirect tax revenues on variable
of GDP for VECM. While the impacts of one standard error shock occurred in indirect tax
revenue on the economic growth has increased till second term, it has decreased till fourth
term and decreasingly lost its significance. While the impacts of one standard error shock
occurred in direct tax revenue on GDP has decreased till third month and gradually increased.
37

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Response of GDP to INDTAX

Inverse Roots of AR Characteristic Polynomial

Response of GDP to DIRTAX

.12

.12

1.5

.08

.08

1.0

.04

.04

.00

.00

-.04

-.04

-.08

-.08

0.5
0.0
-0.5
-1.0

1

2

3

4

5

6

7

8

9

10

1

2

3

4

5

6

7

8

Chart 2 : Impulse-response Functions
Poly.

9

10

-1.5
-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

Chart 3 : IR of AR Characteristic

It’s necessary to evaluate the variance decomposition results to determine the importance of
potential random shock in any variable. Variance decomposition distinguishes one of the
internal variable deviations affecting all internal variables as separate shocks so that it gives
information about the dynamic situation of the system. Variance decomposition presents
alternative approach to reveal dynamics of VAR system. The source of variance deviation of
variables in the model can be decomposed, thus the percentage of changes resulted from itself
and other variables can be understood easily (Özsoy, C., 2007, S.11).
A change in GDP occurs in the 1st period is resulted from only itself (excluding tax revenues,
other factors affecting growth). In this sense, tax revenues don’t affect GDP in the first period.
The effect of it appears after 2nd period and shows an increase during periods. Direct tax has
the most impact on GDP. Approximately 26% of the variance for GDP is explained by direct
tax in 10th period and approximately 71% of it is affected by itself (or other factors affected).
The effect of indirect tax to change is remained at 3%.
It is necessary to test the model whether it has stationary or not. The stationary of model
depends on eigenvalue of coefficient matrix. If eigenvalues of coefficient matrix are within
the unit circle, the system is stationary or stable. If at least one eigenvalue is out of the unit
circle or on the unit circle, the system is not stationary and it indicates expanding
characteristics (Mucuk and Alptekin, 2008, p.168). The position of inverse roots of AR
characteristics polynomial shown below proves that presented model is stationary as shown in
Chart 3.

Table 6 : Variance Decomposition
PERIOD SE

GDP

INDTAX

DIRTAX

1

0.110236

100.0000

0.000000

0.000000

2

0.115645

96.31835

3.667978

0.013668

3

0.125720

81.65548

3.526506

14.81801

4

0.129691

76.96164

3.674209

19.36416

38

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

5

0.132262

75.07070

3.797569

21.13173

6

0.138779

76.11258

3.588492

20.29893

7

0.142982

76.10009

3.608613

20.29130

8

0.146186

73.90997

3.494080

22.59595

9

0.149230

71.74413

3.359454

24.89641

10

0.151868

70.68551

3.244468

26.07003

6. CONCLUSION
In this study, an interaction between tax revenue types and the economic growth in the long
term has been proved by co-integration test, and Granger causality test does not indicate any
interaction in the short term. In other words, the effects of tax policies applied do not appear
in the short term, but can appear in the long term. In according to IRF; the effect of the shock
given to indirect tax revenue to economic growth rate has declined; the response of growth
rate to shock given to direct tax revenue has been tendency to rise up towards the end of the
period. In the variance decomposition method; direct tax revenue is more effective than
indirect one. But, the growth rate, which is expressed by GDP (gross domestic product) or
other factors affecting growth rather than tax revenue, has been appeared affected itself.
If tax revenue has been channeled to incentives for investment, it can lead to the economic
growth. Since Turkey experienced the national and global crises in between 1975-2011,
governments in preparing their budgets were not investment-oriented, but they were oriented
to overcome the crises. The budget was performed to meet the deficit and scale up tax ratio.
Moreover, a stable tax policy was not applied in Turkey, the policy prevailed by a government
was removed or lessened effectiveness of it by subsequent governments. Although the ratio of
indirect tax has been increased over the years, its impact on economic growth remains weak.
Despite being a relationship between direct tax and economic growth in the long period, this
relationship is weak. The other factors affecting GDP growth rather than tax revenue have
gained weight.
Acknowledgement: This paper has been supported by Akdeniz University, Scientific
Research and Projects Supporting Unit (BAPB).

REFERENCES
Açıkgöz, Ş.(2008), “Tax Revenue, Taxation Mix and Economic Growth Relationship in
Turkey: 1968-2006”, Ekonomik Yaklaşım,V:19, N.68, p.91-113.
Anastassiou, T. and C., Dritsaki (2005), “Tax Revenues and Economic Growth: An Empirical
Investigation for Greece Using Causality Analysis”, Journal of Social Sciences, 1(2), 99-104.
Demircan, Siverekli, E.(2004), “Vergilendirmenin Ekonomik Büyüme ve Kalkınmaya Etkisi”,
Erciyes Üniversitesi, İİBF Dergisi, N.21.
Engen, E.M and J., Skinner (1996), “Taxation and Economic Growth”, National Tax Journal,
49 (4), 617-642
39

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Durkaya, M., S., Ceylan, “Tax Revenues and Economic Growth”, Maliye Dergisi, N.150,
p.79-89.
Ekici, M.Sena (2009), “The Determinants of Tax Revenue &amp; Its Economical-Social Side”,
Electronic Journal of Social Sciences, V.8, ISSN : 1304-0278, p.200-223
Göçer, İ., M., Mercan, et all (2010), “Ekonomik Büyüme İle Vergi Gelirleri Arasındaki İlişki:
Sınır Testi Yaklaşımı”, Dumlupınar Üniversitesi Sosyal Bilimler Dergisi.
Güriş, S, E.Çağlayan and B.Güriş (2011), Eviews İle Temel Ekonometri, Der Yayınları,
İstanbul, ISBN: 9789753533706
Lee, Y., R.Gordon (2005), “Tax Structure and Economic Growth”, Journal of Public
Economics, 89, p.1027-1043.
Mucuk, M. and V., Alptekin (2008), “The Relationship Tax and Economic Growth in Turkey:
VAR Analysis (1975-2006)”, Maliye Dergisi, N.155, p.159-174
Paksoy, S. and S, Bakan (2010), “Tax Policies Which are Applied in Turkey &amp; Effects of
Them on Economic Growth: (After 1980)”, Journal of Social Sciences, V.9, ISSN : 13040278, p.150-170
Pehlivan, O.(2012), Vergi Hukuku, Genel İlkeler ve Türk Vergi Sistemi, Murathan Yayınevi,
Trabzon, ISBN: 9786055451219
Temiz, D.(2008), “The Relationship Between Tax Revenues and Economic Growth in Turkey
: The Period of 1960-2006”, 2.National Economy Congress, İzmir,
Özsoy C.(2009), "Türkiye'de Eğitim ve İktisadi Büyüme Arasındaki İlişkinin VAR Modeli İle
Analizi", The Journal of Knowledge Economy &amp; Knowledge Management, Vol:IV, , 71-83.
Turan, T.(2008), “Maliye Politikası Araçlarının Ekonomik Büyüme Üzerindeki Etkileri: Bir
Literatür İncelemesi”, Sayıştay Dergisi, S.69, p. 17-36
Yanpar, Atila (2007),
Master Degree Thesis,

Gelişmekte Olan Ülkelerde Büyüme Yönelimli Vergi Politikası,

Yılmaz, Ö., V.Kaya(2007), “İhracat, İthalat ve Reel Döviz Kuru İlişkisi: Türkiye İçin Bir
VAR Modeli”, İktisat İşletme ve Finans Dergisi, p.250, 69-84.

The Effect of Exchange Rate Volatility on Import Demand: Evidence from Turkey
Demirgil Hakan1, Keskin Hidayet1, Karaöz Murat2,Şentürk, Canan1
1Süleyman Demirel University, Isparta, Turkey
2Akdeniz University, Antalya, Turkey,
Abstract
Since 2001 financial crisis, Turkey has adopted fluctuating exchange rate regime in order to
make the economy stronger against external shocks. This has lead to a high volatility of
Turkish lira against to foreign currencies. Therefore, it became essential for policy makers to
evaluate the potential effects of exchange rate volatility on international trade. The purpose of
this study is to provide new evidence on the effects of exchange rate volatility on the import
40

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                <text>In the study, the relationship between tax revenues and economic growth for the Turkish  economy has been examined in the period of 1975-2011. Johansen Juselious cointegration test and Granger causality test have been used in order to find long term and short term  relationship, respectively. Impulse-response function and variance decomposition analysis  have been applied via VAR model. The findings have shown that there is interaction between  tax revenue types and the economic growth in the long term and is not such an interaction in  the short term. The effect of the shock given to indirect tax revenue to economic growth rate  has decline; the response of growth rate to shock given to direct tax revenue has been  tendency to rise up towards the end of the period. In the variance decomposition method;  direct tax revenue is more effective than indirect one. But, the growth rate that is expressed by  GDP (gross domestic product) or other factors affecting growth rather than tax revenue has  been appeared affected itself.  Keywords: Direct tax, indirect tax, economic growth, granger causality test, co-integration  test, VAR</text>
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                    <text>Removel Of Chromium (Vi) From Leather Industry Waste Water By Adsorbtion
Methot
Yavuz Mesut
Department of Chemistry, Faculty of Art and Science, Celal Bayar University, 45030
Manisa, Turkey
E-mail: msafyavuz@mynet.com.tr
1. INTRODUCTION
Environmental pollution is an event that causes deleterious changes in the physical,
chemical or biological properties of air, water, soil or nutrients, which in turn negatively
affects humans' or other living organisms' health, living or activities (1).
Development of industry and rapid population growth brought along pollution and
consequently pollution of water sources. Today, the heavy metals present in drinking and
utility waters are amount the most serious pollutions and pose a great threat for public health.
Water used in industry is one of the sources of water pollution. As mentioned earlier, heavy
metals have a respectively more important place in water pollution. Heavy metal pollution is
caused by the liquid wastes of many industries such as metal coating, mining, tanning,
chlorine-alkali, radiator production, melting, battery production and alloy industries. The facts
that water is indispensable for life, and that it is used constantly in all areas of life set forth the
importance of preserving water sources and the necessary level of water quality for drinking
and using. All kinds of substances that may be in water is harmful to health over a certain
concentration. Due to this reason, the pollutants in water have to be removed.
Examining the studies in the literature concerning the removal of Cr(VI) ions from waste
waters shows that the Cr(VI) ion defoliates plants and trees and reduces yield particularly
when the waters of the streams it is discharged to is used for agricultural irrigation, reduces
meat and milk yield when used in breeding, and causes allergic reaction upon contacting
humans. It is also seen from the literature that, in addition to the chemical methods, also
factory wastes (sunflower meal, bagasse, glaze waste, gypsum waste, marble powder, fly ash,
etc.) that are more economical and natural resources (marl, cinder, red loam, etc) are used for
removing Cr(VI) ion, which is classified as a heavy metal, from water and successful results
are obtained from these methods. Our purpose in this study is to plan the removal of the heavy
metals, 90% of which are used in the leather industry and oxidized to Cr(VI) ion causing
pollution in the Menderes river, Nif stream and particularly Gediz river in our region, by
means of the absorbents that can be obtained economically and in a convenient way by
utilizing the wastes generated in the factories of the same region and natural resources.
It is intended to determine the optimum conditions for absorbing chromium from leather
waste water with the use of gypsum waste, which can be obtained in a highly economical
way and the way of utilization is being sought as the abundant waste of the Serel ceramic
factory.

Serel Ceramics gypsum waste
324

% Amounts

�Total Alkali

0.00

Na2O

0.00

Fe2O3

0.03

MgO

0.19

Al2O3

0.30

SiO2

0.38

CaO

32.51

SO3

45.85

Lime saturation factor

118.84

The works intended to determine the Cr(VI) absorption percentage and absorption parameters
of gypsum waste will continue to be carried out in the next season
2. EXPERIMENTAL PART
In consequence of the measurements made on the sample taken in the waste water
purification facility established in order to purify the waste water of Manisa Horozkoy
Leather Enterprises, ph = 9 and Cr+6=14,82 ppm values were obtained. Heavy metal
determinations were measured with an AAS equipment and gypsum structure was determined
by means of a x-ray spectrometer.
Table 1.Results of the structural analysis of Serel factory gypsum wastes, conducted with xray spectrometer.
Component SiO2

CaO

%

32,51

0,38

Fe2O3

0,03

Al2O3

0,30

MgO

0,19

SO3

Loss
on
Ignition

45,85

21,11

The K2Cr2O7 solution formed for determining the optimum conditions was prepared as 20
ppm. No centrifugation was applied after the treatment with gypsum and sample was taken
after a waiting time of 5 to 10 minutes

325

�Table 2. Absorbed Chromium amount concentration (ppm) according to the gypsum amount
added to the solution prepared at 100 ml, 200ppm, pH = 9, T = 15C0, t =1 hour,
Mixing speed = 500 rpm

Gypsum amount added (g)

Absorbed
(ppm)

Chromium

Amount

3g

5g

10 g

15 g

20 g

25 g

14,864

15,272

15,66

16,252

16,232

16,253

Figure 1. Absorbed chromium amount concentration (ppm) according to the gypsum amount
added
Table 3. Absorbed Chromium amount concentration (ppm) according to the granule size of
gypsum added to the K2Cr2O7 solution prepared at 100 ml, 200ppm, pH = 9, T = 15C0 t
=1 hour Mixing speed = 500 rpm Gypsum amount = 15 g

Granule Size of Gypsum (mesh)

Absorbed Chromium Amount
326

1

2

3

4

5

16,120 16,422

16,534

16,765

16,925

�(ppm)

Figure 2. Absorbed chromium amount concentration (ppm) according to the gypsum amount
added
Since 500 mesh size gypsum was dissolved in 1 hour with 500 rpm mixing speed and left
layer of sludge at the bottom, greater granule size gypsums were given priority in the tests.
Table 4. Absorbed amount of chromium according to the mixing speed applied to the 100 ml
200 ppm K2Cr2O7 solution prepared at ph = 9 T = 15 C0, t = 1 hour , gypsum amount = 15
g, gypsum size = 5 mesh
Mixing Speed (rpm)

100

Absorbed
Chromium
12,120
Amount (ppm)

327

200

300

400

500

700

12,850

14,450

16,700

16,910

14,550

�Figure 3. Absorbed chromium amount according to mixing speed.
Table 5. Absorbed amount of chromium according to the mixing duration applied to the 100
ml 200 ppm K2Cr2O7 solution prepared at ph = 9
T = 15 C0, t = 1 hour ,
gypsum amount = 15 g, gypsum size = 5 mesh Mixing speed = 500 rpm
Duration Hours

1

Absorbed
Amount

16,825 17,155 17,875 18,110 19,220 19,180

(ppm)

328

2

3

4

5

6

Chromium

�Figure 4. Absorbed chromium amount according to mixing duration.
Table 6. Absorbed chromium amount according to different temperatures of 100 ml, 200 ppm
K2Cr2O7 solution prepared at ph = 9 , gypsum amount = 15 g, gypsum granule size = 5
mesh, mixing speed = 500 rpm, t = 6 hours

Solution Temperature (Co)
Absorbed Chromium Amount
(ppm)

329

15

20

25

19,080

19,180 19,300

30

35

40

19,280

19,220

19,240

�Figure 5. Absorbed chromium amount according to the varying temperatures of the solution.
Due to the observation that the temperature does not have a significant effect on absorption, it
was decided to use the temperature 15 Co in economical terms.
Table 7. Absorbed chromium amount at varying pH values of the 100 ml, 200 ppm K2Cr2O7
solution prepared with gypsum amount = 15 g, gypsum size = 5 mesh, mixing speed = 500
rpm, t= 6 hours T = 15 Co
Ph
Absorbed Chromium Amount
(ppm)

330

9

8

19,200 18,875

7

6

5

18,920

18,850

18,540

�Figure 6. Chromium amount absorbed at varying levels of pH applied to the K2Cr2O7
solution.
The optimum absorption conditions obtained with the implementation of 6 different
parameters to the 200 ppm, 100 ml K2Cr2O7 solution were determined as follows.
Granule size

Gypsum amount

pH

Mixing speed

t(time)

T CO

5 Mesh

150 g/L

9

500 rpm

6 hours

15 CO

When all these parameters are implemented on the 200 ppm, 100 ml K2Cr2O7 solution, the
total absorbed amount of chromium was 18,252 ppm and exhibited that 91,26% of chromium
can be absorbed. When the same parameters were implemented on the leather waste water
sample taken before purification with pH = 9 and 14,82 ppm chromium content the absorbed
amount of chromium was measured to be 13,894 ppm and the remaining chromium content in
the solution was 0,926. With this, it was determined that 93,75% of chromium was absorbed.
Table 8. Absorbed amount of chromium in the standard solution and leather waste water
under the optimum conditions are given in the table below.

pH = 9
Mixing Speed = 500 rpm
Granule Size = 5 Mesh
t = 6 hours
T = 15 CO
Gypsum amount = 150 g/L
331

Absorbed amounts in Absorbed amounts in the
the 200 ppm, 100ml
14,82 ppm, leather waste
water
K2Cr2O7 solution

�18,252 ppm

13, 894 ppm

91,26%

93,75%

3. DISCUSSION
For the purpose of achieving 90% tanning in leather industry CrCl3 component is used and
oxidized to Cr(VI) with the various salts, oils and chemicals in the medium. While Cr(VI) is
toxic for livings, a trace amount of Cr(III) is necessary for the main structure of glucose, fat
and protein metabolism. Cr(VI) causes liver destruction in livings and defoliates plants and
trees (4). Cr(VI) limits set forth by the water control regulation is zero for drinking waters, 20
ppb in utility waters and 50 ppb in irrigation waters (5).
The Cr(VI) amount was measured as 14,82 ppm and pH=9 in the waste water of Manisa
Horozkoy leather industry. Examining the use of various natural absorbents on Cr(VI) shows
that bone dust absorbs 66,6% (2), nutshell absorbs 80% (1), CACMM2 absorbs 83% (11),
marl soil absorbs 86,3% (6) and activated clinoptilolite absorbs 0,624 mg/g (7) of Cr(VI). In
our study it was aimed to absorb the Cr(VI) content in the waste waters of Horozkoy leather
factory in our region, which pollutes Gediz river and is highly toxic for livings and plants, by
means of the gypsum wastes of Serel ceramic factory that is not utilized in any way and that
constitutes a stock problem.
After determining and applying the optimum conditions in terms of pH, temperature, gypsum
amount, mixing speed, mixing duration and gypsum granule size parameters to leather water
at solution temperature and pH, the 14,82 ppm of Cr(VI) was reduced to 0,926 ppm and an
absorption of 93,75% was achieved. It was aimed to absorb a waste with another kind of
waste and it was determined that gypsum substantially enabled this. It was observed that
Cr(VI) can be absorbed by only breaking gypsum into nut size and after a mixing of 6 hours.
REFERENCES
Gunden U., Uysaler K., Advisor: Prof. Dr. Ali Celik, ―Usability of Nutshell in Cr(VI)
Absorption‖, Undergraduate Thesis, Manisa-2004.
Kaymakci U., Ozenen E., Advisor: Assoc. Prof. Dr Yuksel Abali, ―Absorption of Cr+6 Ion in
Leather Waters into Bone Dust‖, Manisa-2004.

332

�Carrillo_Morales G., Davila-Jimenez M.M., Elizalde-Gonzalez M.P., Pelaez-Cid A.A,
Removal of Metal Ions From Aqueous Solution by Adsorption on the Natural Adsorbent
CACMM2, Jaurnal of Chromatography A, 938, 237-242, 2001.
Townshend, A; Encylopedia of Analitical science, Academic Pres, Londan, 1995.
Water Pollution Control Regulation Official Gazette: 31 December 2004, Issue: 25687.
Özdemir C. et al., ―Examination of purification of leather industry wastewaters with the use of
the marl soils of Basyayla(Karaman) region‖, D.E.U Science and Engineering Journal, Issue:
3 5.57-64, October 2004.
Toprak R.Girgin I., ―Removal of chromium from leather industry wastewaters with activated
clinoptilolite‖, Turk J Engin Enviran Sci 24(2000), 343-351 TUBITAK.

Water Resources Conservation for Sustainable Agricultural Development
F. Ozge Uysal, Onder Uysal
Faculty of Agriculture, SuleymanDemirel University, Isparta, Turkey
E-mail: onderuysal@sdu.edu.tr
1.INTRODUCTION
1.1.Water resources consumption
Increase of population and insufficient water resources has led to environmental pollution has
reached substantial levels with use of synthetic and chemical inputs as a result of the increase
in production. Decreasing available water resources brings on a serious water shortage
problem. Allliving things are negative affected by theenvironmentalpollution. The loss of
speciesin nature, instead of use of biological control use chemical control, thehormonesto
increasefood production have a verynegativeforecology. The main reason for environmental
pollution and degradation of the natural balance in ecosystem, consumption increased rapidly
due to increasing population and increased use of fossil proliferation of products.
1.2.Water resources conservation
One
of
themostimportantaim
of
sustainableagricultureandruraldevelopment
is
toprotectandconservethecapacity of thenaturalresourcebasetocontinuetoprovideproduction,
environmentalandculturalservices.

333

�</text>
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                <text>Environmental pollution is an event that causes deleterious changes in the physical,  chemical or biological properties of air, water, soil or nutrients, which in turn negatively  affects humans' or other living organisms' health, living or activities (1).  Development of industry and rapid population growth brought along pollution and  consequently pollution of water sources. Today, the heavy metals present in drinking and  utility waters are amount the most serious pollutions and pose a great threat for public health.  Water used in industry is one of the sources of water pollution. As mentioned earlier, heavy  metals have a respectively more important place in water pollution. Heavy metal pollution is  caused by the liquid wastes of many industries such as metal coating, mining, tanning,  chlorine-alkali, radiator production, melting, battery production and alloy industries. The facts  that water is indispensable for life, and that it is used constantly in all areas of life set forth the  importance of preserving water sources and the necessary level of water quality for drinking  and using. All kinds of substances that may be in water is harmful to health over a certain  concentration. Due to this reason, the pollutants in water have to be removed.  Examining the studies in the literature concerning the removal of Cr(VI) ions from waste  waters shows that the Cr(VI) ion defoliates plants and trees and reduces yield particularly  when the waters of the streams it is discharged to is used for agricultural irrigation, reduces  meat and milk yield when used in breeding, and causes allergic reaction upon contacting  humans. It is also seen from the literature that, in addition to the chemical methods, also  factory wastes (sunflower meal, bagasse, glaze waste, gypsum waste, marble powder, fly ash,  etc.) that are more economical and natural resources (marl, cinder, red loam, etc) are used for  removing Cr(VI) ion, which is classified as a heavy metal, from water and successful results  are obtained from these methods. Our purpose in this study is to plan the removal of the heavy  metals, 90% of which are used in the leather industry and oxidized to Cr(VI) ion causing  pollution in the Menderes river, Nif stream and particularly Gediz river in our region, by  means of the absorbents that can be obtained economically and in a convenient way by  utilizing the wastes generated in the factories of the same region and natural resources.  It is intended to determine the optimum conditions for absorbing chromium from leather  waste water with the use of gypsum waste, which can be obtained in a highly economical  way and the way of utilization is being sought as the abundant waste of the Serel ceramic  factory.</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Oswald A. (1996) A conjecture on the explanation for high unemployment in the
industrialized nations: part I, Warwick Economics Research Paper 475, University of
Warwick, Coventry, pp. 197-206.
Puri A.K. and Lierop J.V. (1988) Forecasting Housing Starts, International Journal of
Forecasting, 4, 125-134.
Rapach D.E. and Strauss J.K. (2009) Differences in housing price forecastability across US
states, International Journal of Forecasting, 25(2), 351-372.
Rosen, H.S. and Rosen, K.T. (1980) Federal taxes and homeownership: evidence from time
series, Journal of Political Economy, Vol. 88 No. 11, pp. 59-75.
Sander W. and Testa W.A. (2009) Education and Household Location in Chicago. Growth
and Change, 40(1), 116–139.
Stephenson, c. (2010) Home Sales as an Economic Indicator, http://voices.yahoo.com/homesales-as-economic-indicator-5362321.html?cat=3.
Taylor J. B. (2007) Housing and Monetary Policy), NBER Working Paper No. W13682.
Available at SSRN: http://ssrn.com/abstract=1077808.
Thom R. (1985) The Relationship between Housing Starts and Mortgage Availability, The
Review of Economics and Statistics, 67(4), 693-696.
Vargas-Silva C. (2008) Monetary Policy and the U.S. Housing Market: A VAR Analysis
Imposing Sign Restrictions. Journal of Macroeconomics, 30(3), 977-990.

Corporate Environmental Reporting: Approaches And Challenges
Yasemin Köse
Bulent Ecevit University, Faculty of Economics and Administrative Sciences
Business Department, Accounting and Finance
67100, Zonguldak, Turkey
E-mail:yekose@gmail.com
Abstract
Sustainable development issue have become increasingly important to a range of stakeholders
and attention has focused on the environmental impacts of corporate activities. Within this
context, investors and other stakeholders demand for reliable and accurate information
regarding environmental performance. Thus sustainable or environmental reporting has arisen
as a challenging and attractive growth area for accounting professionals (Bell and Lehman
1999). One of the most challenging issue in environmental reporting is how and what
corporations should report to meet demands of various stakeholders.
Reporting about environmental issues may embrace information both in traditional financial
reports and in any other reports. For environmental reporting, guidelines have been published
by various parties since the beginning of the nineties (IIIEE Report 2002). Considerable
274

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

debate has taken place among the international bodies on the recognition, classification and
quantification of environmentally significant information. A number of recommendations
were put forward in the 1990s by standardization and Professional bodies. Yet, there are
considerable contradictions among these recommendations leaving management a large
element of discretion when deciding which issues to recognize, how to measure these and
what to disclose about environmental activities (Schalteger and Burrit 2000).
The aim of this study is to present approaches and guidelines of corporate environmental
reporting (CER) in an international context. For this purpose development of CER is
presented which is then followed by approaches to environmental reporting such as the Global
Reporting Initiative (GRI) reporting framework, initiatives of Standard setters and some
governmental regulations.
Keywords: Corporate Environmental Reporting, Sustainable Accounting, Sustainable
Reporting, Environmental Reporting Guidelines.
1. INTRODUCTION
Although used interchangeably, terms of sustainability reporting, corporate social
responsibility reporting, triple bottom line reporting and environmental reporting can describe
different things. The most widely accepted definition of sustainable development can be
found at Brudlent Report released by the UN in 1987. According to this report sustainable
development is “development that meets the needs of the present without compromising the
ability of future generations to meet their own needs” (UN 1987). Corporate environmental
reporting represents only one form of sustainable or environmental reporting. The term
environmental reporting means any disclosed information on environmental issues by
companies including corporate environmental reporting.
Corporate environmental reporting (CER) is the process by which a corporation
communicates information regarding the range of its environmental activities to its
stakeholders such as shareholders, customers, employeesgovernmental agencies, creditors and
public in general. CERs are publicly available generally stand-alone reports issued
voluntarily, by companies on their environmental activities (Broph and Starkey 1996).
An increasing number of corporations began publishing regular environmental reports in
detail. These reports disclose information about the impacts of the environment and the
methods of measuring and monitoring environmental impact. Disclosure of information may
voluntary or regulatory. Yet considerable debate continues on the recognition, classification
and quantification of environmentally sound information.
2. DEVELOPMENTS IN CORPORATE ENVIRONMENTAL REPORTING
Gray, Owen and Adams (1996) provided a number ofincentives for corporate environmental
reporting. These incentives include ethics, individual commitment, accountability, legal, code
of practice, anticipated regulation, to forestall regulation, marketing, public image, defence, to
distract attention, influence perceptions, response to pressure, go ahead of /stay with
competitors, experimentation, prior commitment, ethical investors, to overcome fears of
secrecy, and to maintain a position of power and legitimisation.
First corporate environmental reporting practices began in the 1980s. At first it started in a
voluntary basis. Later on mandatory requirements were introduced by a number of countries
275

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

such as Denmark, Norway, Sweden and the Netherlands (Scott, 2001). Also, in Australia,
corporations are legally required to report on economical, social and environmental activities
(DEAT 2005).
Surveys published by the KPMG since 1993 showed that the growth of stand-alone
environmental reports is significant. As seen in Table 1, environmental reporting rose
significantly in all the European countries examined, especially in countries with mandatory
rules.

Table 1. % of Companies Published Environmental Reports.
Years

TOP 100

TOP 250

1993

12

-

1996

18

-

1999

24

35

2002

28

45

2005

41

64

2008

53

83

2011

64

95

Source: Adapted from KPMG(2011). International Survey of Corporate Responsibility Reporting.

Another significant report published by UNEP (1997) showed that CERs were increasingly
being used to monitor companies. A more recent survey conducted in the UK for FTSE 100
companies showed that 81% of companies pulished separate environmental reports. 13 % of
these companies report on environmental issues within their annual reports (Spada 2008).
The 2002 KPMG Survey of Corporate Responsibility Reporting (2002, p.18) suggests that the
increased adoption of sustainability assurance arises from “…the demand for reliable and
credible information from management, for managing the company’s environmental and
social risks, and from stakeholders who want assurance that the report truly represents the
company’s efforts and achievements”.
3. APPROACHES TO CORPORATE ENVIRONMENTAL REPORTING
Reporting about environmental issues may embrace information both in traditional financial
reports and in any other reports. For environmental reporting, guidelines have been published
by various parties since the beginning of the nineties (IIIEE Report 2002). Considerable
debate has taken place among the international bodies on the recognition, classification and
quantification of environmentally significant information. A number of recommendations
were put forward in by standardization and Professional bodies such as the Financial
Accounting Standard Board (FASB), Fédération des Experts Compatibles Européens (FEE)
276

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

and the International Accounting Standards Committee (IASC). Yet, there are considerable
contradictions among these recommendations leaving management a large element of
discretion when deciding which issues to recognize, how to measure these and what to
disclose about environmental activities (Schalteger and Burrit 2000).
An important factor in the improvement of the quality environmental reports has been
organizations involved in corporate reporting. Although environmental reporting is a
relatively new phenomeno, compared to financial reporting, many guideline/approaches have
been developed so far for the structuring of environmental reports. It appears that three groups
are attempting to develop guidelines for the same (Pramanik et al. 2008). These are:
-International / National Industrial Organization;
- Government Initiatives; and
- Initiatives from Accountancy Bodies.
One well-known organization is the Global Reporting Initiative which set out a common
framework for sustainability. The launch of the G3 Guidelines in 2006 led to a dramatic
increase in the number of sustainability reports produced by organizations. The G3 Guidelines
are made up of two parts. Part 1 features guidance on how to report. Part 2 features guidance
on what should be reported, in the form of disclosures.
The GRI framework provides a nonprescriptive approach through which organizations are
guided in developing performance reporting that is relevant for their own business. Users are
provided with concepts on how to develop what is to be reported, including issues such as
materiality, and are provided with a framework for what are called standard disclosures,
supported by a series of sector or industry guides. These currently include financial services,
logistics, transportation, mining and metals, public agency, tour operator,
telecommunications, and automotive. The framework then provides support on how to collect
and report information, including guidance on what areas should be included in each ltogether
with ideas as to what types of performance metrics can be developed.
By means of GRI reporting guidelines, corporate sustainability reports, also frequently
referred to as corporate social responsibility (CSR) reports and health safety and environment
(HSE) reports, appear on the websites of many of the world’s largest firms, These reports
characteristically document corporate environmental and social policy, objectives, initiatives
and performance, and are increasingly accompanied by third-party assurance statements (Kolk
and Perego 2008).
Mandatory requirements for certain countries have also put pressures for environmental
reporting. Denmark was the first country regulated the environmental reporting in 1996,which
was followed by the Netherlands and Norway in 1999. Sweden also made the environmental
disclosure mandatory. In U.S.A., companies having more than 10 employees will have to
report on specified toxic emission to the US Environmental Protection Agency.
Environmental disclosures are also encouraged through the voluntary local and international
guidelines. These guidelines design and build acceptance of a common framework for
reporting environmental information in sustaining corporate public accountability. Yet, in the
U.S.A adoption of sustainability as a concept has been more cautious than in other areas
around the world. As in many new initiatives, the great concern is and will continue to be.
Accountancy bodies have also taken part in the environmental debate in recent years and have
issued some guidelines regarding environmental reporting. The Canadian Institute of
Chartered Accountants (CICA) has produced a guidance document aimed at developing a
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framework for the reporting information about how organizations perform in accordance with
standards and expectations of environmental conduct and responsibility. The Association of
Certified Chartered Accountants (ACCA), U.K. and the Institute of Chartered Accountants of
England and Wales (ICAEW) have also issued their guidelines regarding corporate
environmental reporting.
Similarly, the Federation of European Accountants encourages companies to raise shareholder
confidence by enhancing the credibility of their sustainability reporting with third-party,
independent assurance. Two international standards, the AA1000 Assurance Standard
(AA1000AS) was launched in March 2003 by AccountAbility and the IAASB’s International
Standard on Assurance Engagements is available since January 2005. Further, a number of
national (draft) standards has also emerged, for instance in Australia and in The Netherlands.
The accounting profession has a role to play in contributing to the business understanding of
sustainability and focusing beyond the adoption of standards for their own sake, to a
perspective where connections can be made between nonfinancial reporting, financial value,
and the sustainable worth of the entity (IMA 2008).
4. CONCLUSION
Environmental reporting requires companies to monitor and measure their environmental
impacts and communicate them. In order to achieve this efficiently, there must be an
accounting system that fully account for all environmental inputs and impacts to generate data
and communicate.
Accountants have a responsibility to those whom they support with Professional advice to
address the sustainability of the enterprises within which they operate by understanding the
implications of nontraditionally-measured assets, liabilities, and income that form the basis of
an organization’s worth and wealth in the 21st century economy.
In different countries, the accounting and reporting practices in respect of environmental
issues have become mandatory. But in many countries, no such mandate has been issued.
Now, an urgent need prevails to take steps globally for accounting and valuation technique as
well as the reporting guidelines to incorporate these issues in the corporate accounting and
reporting system. For doing businesses in future, corporate world should turn their attention
towards the long-term sustainability of the environment.
REFERENCES
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accounts?” Accounting Forum, Vol. 23, June 1999, 175-192.
Brophy, M., and Starkey, R. (1996) Environmental Reporting. In R. Welford (Ed.), Corporate
Environmental Management Systems and Strategies, 150-176. London: Earthscan.
DEAT (2005) Environmental Reporting, Integrated Environmental Managemnet Information
Series 17, Department of Environmental Affairs and Tourism (DEAT), Pretoria.
EEA (2001) Business and the Environment: Current Trends and Developments in Corporate
Reporting and Ranking, European Environment Agency, Copenhagen.
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Gray R., Bebbington, J. and D. Walters (1993) Accounting for the Environment, Paul
Chapman Publishing, London, UK.
Gray, R., Owen, D. and C. Adams (1996) Accounting and Accountability, Prentice-Hall,
London, UK.
IIIEE Report (2002) Corporate Environmental Reporting: Review of Policy Action in Europe,
International Institute for Industrial Environmental Economics, Lund University.
IMA (2008) The Evolution of Accountability-Sustainability Reporting for Accountants,
Institute of Management Accountants.
Kolk, Ans, Seb Walhain, and Susanne van de Wateringen (2001) "Environmental Reporting
by the Fortune Global 250: Exploring the Influence of Nationality and Sector." Business
Strategy &amp; the Environment 10:15-28.
KPMG (2002) "KPMG International Survey of Corporate Responsibility Reporting 2002.
KPMGInternational.
KPMG (2011) "KPMG International Survey of Corporate Responsibility Reporting 2011."
KPMG International.
Pramanik, A. K., Shil, N. S., and Das, B. (2008) “Corporate Environmental Reporting: An
Emerging Isuue in the Corporate World”, International Journal of Business and Management,
Vol. 3, No.12, 146-154.
Schaltegger, S. And Burritt, R. (2000) Contemporary Environmental Accounting: Issues,
Concepts and Practices, Greenleaf Publishing.
Scott P.(2001) “The Pittfalls in Mandatory Reporting”, Environmental Finance, April 2001,
p.24-25.
Spada (2008) Environmental Reporting: Trends in FTSE 100 Sustainability Reports, A White
Paper Series from Spada, November 2008.
SustainAbility and UNEP (1997) Engaging Stakeholders: the 1997 Benchmark Survey,
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                <text>Sustainable development issue have become increasingly important to a range of stakeholders  and attention has focused on the environmental impacts of corporate activities. Within this  context, investors and other stakeholders demand for reliable and accurate information  regarding environmental performance. Thus sustainable or environmental reporting has arisen  as a challenging and attractive growth area for accounting professionals (Bell and Lehman  1999). One of the most challenging issue in environmental reporting is how and what  corporations should report to meet demands of various stakeholders.  Reporting about environmental issues may embrace information both in traditional financial  reports and in any other reports. For environmental reporting, guidelines have been published  by various parties since the beginning of the nineties (IIIEE Report 2002). Considerable debate has taken place among the international bodies on the recognition, classification and  quantification of environmentally significant information. A number of recommendations  were put forward in the 1990s by standardization and Professional bodies. Yet, there are  considerable contradictions among these recommendations leaving management a large  element of discretion when deciding which issues to recognize, how to measure these and  what to disclose about environmental activities (Schalteger and Burrit 2000).  The aim of this study is to present approaches and guidelines of corporate environmental  reporting (CER) in an international context. For this purpose development of CER is  presented which is then followed by approaches to environmental reporting such as the Global  Reporting Initiative (GRI) reporting framework, initiatives of Standard setters and some  governmental regulations.  Keywords: Corporate Environmental Reporting, Sustainable Accounting, Sustainable  Reporting, Environmental Reporting Guidelines.</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Available http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1516837
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Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, Sayı:13 (1): 367-390.

The Banks And Sustainable Development
Violeta Madzova
University Goce Delcev, Faculty of economics-Stip , Republic of Macedonia,
violeta.madzova@ugd.edu.mk
Abstract
This paper focuses on the role of the banks in supporting sustainable development.
Its objective is to examine recent trends in banking and sustainable development, as well as
to assess the implementation and application of the sustainable development policies adopted
by the banks in the banking sector in Republic of Macedonia.
For that purpose it is made a comprehensive analysis on the trends of “sustainable finance”,
as well as research on the practices in the Macedonian banking sector in supporting
sustainable society.
Namely, at the beginning of the 21st century, the banks in the industrial world have become
complex financial organizations that offer a wide variety of services to international markets
and control billions of dollars in cash and assets. Supported by the latest technology, banks
are working to identify new business niches, to develop customized services, to implement
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innovative strategies and to capture new market opportunities. By means of their financing
policy, banks can then take specific measures to contribute to sustainable entrepreneurship.
As the analysis indicates, with few exceptions bank policies in the West Balkans are lagging
significantly behind relevant international standards and best practices.
Until recently, most Macedonian banks did not consider environmental and social concerns
to be particularly relevant to their operations.
Today, however, the integration of sustainability into the banking sector of Macedonia has
taken two key directions:
Support the environmental and social responsibility through
environmental initiatives and socially responsible initiatives

financial contribution in

Integration of environmental and other sustainable development criteria into lending and
investment strategy of the banks
Therefore, the paper reviews the environmental and social policies of the selected big and
medium sized banks in Macedonia, as well as policy and the practices if the specialized
promotion bank-Macedonian Bank for Development Promotion.

1.INTRODUCTION
Sustainability is about meeting the needs of the present without compromising the ability of
future generations to meet their needs.5 It is about preserving the environment and
biodiversity for future generations, and about being cautious with our natural resources and
climate. But sustainability is also about guaranteeing human rights and a life in dignity, free
from want and poverty for all people living today.
In the present, globalizing world, private banks play a crucial role in allocating financial
resources. As a large majority of all companies and governments in the world is dependent on
the financial services of private banks, these financial institutions play a key role in every
segment of human activity. While their financial services are used too often for activities
which are harmful to the environment, human rights, and social equity, banks can also be
powerful agents of change.
In fact , due to their intermediary role in the economy, banks hold a unique position with
regard to sustainable development. This intermediary role is both quantitative and qualitative.
Through their efficient credit approval systems, banks are well equipped to weigh risks and
attach a price to these risks. Through the price differentiation, banks can foster sustainability.
Banks can also develop more sustainable products, such as environmental or ethical
investment funds. In addition, there is great scope for banks to improve their internal
environmental performance.
2.THE TRENDS IN SUSTAINABLE FINANCE
The banking sector’s emerging recognition of environmental and social responsibility was
5 Jan Willem van Gelder “The do’s and don’ts of Sustainable Banking - A BankTrack manual”- 2004,
pg.3
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driven to a large degree by outside pressures.
Namely, at the very beginning of 21 century (i.e. in 2000) the environmental organizations
such as Friends of the Earth and the Rainforest Action Network challenged the industry with
high-profile campaigns that highlighted cases in which commercial banks were “bankrolling
disasters”. In 2002, a global coalition of non-governmental organisations (including FoE,
RAN, and WWF-UK) promoted sustainable finance in the commercial sector. 6This informal
network subsequently evolved into BankTrack, whose vision for a sustainable finance sector
was expressed in the Collevecchio Declaration of January 2003.
Now endorsed by more than 200 organisations, the Collevecchio Declaration remains the
benchmark by which civil society will measure the banking sector’s commitment to
sustainable development.
The discernible shift that many banks have made in recent years towards addressing the
environmental and social impacts of their financial services is a welcome and important first
step in this direction. More and more banks realize that ignoring social and environmental
issues could considerably increase their exposure to credit, compliance and reputational risks.
The progress banks make in this field, however, will be measured not by good intentions or
even by strong policies on paper. To advance sustainability, banks must seek improved
performance and results on the ground in affected communities and environments.
The fall-out of the financial crisis continued in 2011, affecting many people around the world
and in the communities where we live and work. The current economic environment has
prompted some to examine the global banking system, asking fundamental questions about
the role banks play.At the same time, the need for a stable international financial services
system has never been greater. Volatility in global markets, risk of contagion in the euro zone
, high unemployment levels across North America and increased levels of household debt can
affect each and every one of us.
Today the question is no longer whether commercial banks should address the sustainable
development aspects of the activities they support, but how they should do it – what
substantive standards should they apply? How should they implement them? And how should
they assure compliance?
3.THE ROLE OF THE BANKS IN SUSTAINABLE DEVELOPMENT
As mentioned before , the banks are the most important intermediaries in an economy. This
intermediary function centres on bringing together and coordinating savings and investments.
As a financial intermediary between entities on the market, a bank has four functions:
transforming money by size, duration, place and/or time, and risk.
It is particularly this last function (the distribution and management of risks) that will
probably be the most important one for attaining a sustainable society. Between borrowers
and lenders of money what develops is information asymmetry, including that which concerns
environmental aspects.
Banks have extensive and efficient lending operations and have a comparative advantage in
information (as a result of the knowledge they have of economic sectors, regulations and
market developments). By in principle having a solid view of environmental and financial

6 Marcel Jeucken “Sustainable Finance and Banking” November 2001, pg.5.
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risks, banks fulfil a key role in reducing information asymmetry between entities in the
market. A bank can attach a value or price to reduce that uncertainty.
Interest rate differentiation among sustainability aspects is justified from risk perspectives.
The scope for interest rate differentiation increases if banks can raise funds more cheaply
because they have a relatively ‘well qualified’ credit portfolio. Banks can go a critical step
further by applying interest rate differentiation on the basis of the will to stimulate sustainable
development. By means of their financing policy, banks can then take specific measures to
contribute to sustainable entrepreneurship.
By now, various banks have drawn up their own methods to determine the environmental
risks associated with potential clients. 7
A number of banks are also marketing specific environmental loans for SMEs.
Investing for proprietary trading (in which the same risks as previously described are
generally applicable) and investing as commissioned by clients are becoming increasingly
more important activities for banks.
In cases where clients are interested not only in financial rewards but also in ecological and
social rewards, an interesting market develops. The market for funds that invest exclusively in
companies demonstrating progressive environmental care, for example, is growing
dramatically.
Also available are funds specialising in solar energy, wind energy and environmental
technology. It is no longer pure idealism, however, that is driving the success of these funds
since the financial yields of several of the more ‘sustainable’ funds are above the market
average.
Dealing openly with this process of change, both internally and externally, will lay the
foundations necessary for sustainable banking. This is not a process than can or will take
place overnight. A key factor in this process of change is how a bank sees itself within the
global setting.
Thus, companies have to implement the idea of the Corporate Social Responsibility, which is
an equivalent of the sustainable development at the microeconomic level.
The basic principle of the sustainable development and Corporate Social Responsibility is the
combination of needs important both from the point of view of an institution, as well as a
group of entities operating in its environment (employees, shareholders, stakeholders,
borrowers, local society) within its business policy. 8Thus, the goal of a contemporary
organisation should be to maximise its shareholders’ value satisfying, at the same time,
expectations of other stakeholders (stakeholders’ value) by integrating economic, social and
environmental operations.
4.SUSTAINABLE FINANCE IN MACEDONIAN BANKS
Until recently, most Macedonian banks did not consider environmental and social concerns
to be particularly relevant to their operations.
In the recent years , however, the integration of sustainability into the banking sector of
Macedonia has taken two key directions:


Support the environmental and social responsibility through financial contribution in
environmental initiatives and socially responsible initiatives
7

8

WWF &amp; BankTrack Report - “ Shaping the future of sustainable finance” – WWF , 2006, pg 11

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

Integration of environmental and other sustainable development criteria into lending
and investment strategy of the banks.
The development of sustainable financing in both direction are partly due to the more
favorable legal environment created by the Government of the Republic of Macedonia
focused towards enabling sustainability , fair competition, competitiveness and better social
inclusion at the labor market . In that given environment, the banks were just trying to
accommodate and include some of the Governments directions in their strategies and credit
policies .
The other reason for more social responsible banks lays partly to the general policies of the
international banks which in recent 10 years entered in almost all Macedonian banks and
therefore brought a new philosophy of bank management .
Additional reason for the acceptance of so called sustainable finance by the commercial banks
was the strengthened position of the Macedonian Bank for Development Promotion which
credit lines were mostly focused on financing sustainable development while the commercial
banks were agent banks for these lines..
4.1.Legal preconditions for developing” sustainable finance” in Macedonian banks
a) Legal environment promoting and supporting social corporate responsibility

The concept of social responsibility was basically recognized by the Government through
adopting the Law on donations and sponsorship in 2007 , envisaging many tax exemption for
the sponsorship and donation provided by legal entities ( including banks’) as well as citizens
in the areas of ecology, social inclusion issues , human rights , social care, health, science and
culture. The same year , the social responsibility concept was even more acknowledge by
establishment of the National coronation body for corporate social responsibility as permanent
working group within the Macedonian Government Socio-economic Council .
In 2008 the body created and the Government adopted National Strategy (Agenda) for
corporate social responsibility which was a platform for further raising awareness for the
social responsibility concept, capacities and competences development for further
incorporating of the CSR concept in all business strategies of the real sector as well as
creating more favorable environment for the further promotion and establishment of social
responsibilities in Macedonian legal entities.
All this was strong incentive for the banks in their efforts to be recognized as social
responsible entity who acts like a good citizens and contribute to the community more that the
common banking operations envisaged. In the banking competitive market the banks were
quite aware that the tax exemption and the good image that would be created through
corporate social responsible actions will just strengthen their position at the market, and even
increase the profitability.

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As of 2010 the the National body for CSR organizes competition called as “ National award
for the corporate social responsible best practices in the area of : relationship with employees,
ethical management , market relations with suppliers/customers, environment protection and
investment in community. In almost all areas, the banks turns out to be either winner or one
of the best in certain area of CSR activities.
b) Legal environment for incorporation of the sustainable development criteria in bankin
strategy and lending policy

Trying to create favorable environment for sustainable development in the country the
Government of Macedonia created and adopted numerous of law, bylaw as well as strategic
documents mostly in the area of:
 environment with special emphasize on energy efficiency and renewable energy production ;
 entrepreneurship , startup companies and SME development ;
 labor rights, active measures for employment, poverty reduction and social inclusion at the
labor market
 developments and restructuring of the agro-sector.
 Environment – Energy efficiency and renewable energy production and usage

In order to stimulate the energy efficiency as well as the production and usage of
renewable energy the Government has adopted the following strategic document and laws:






Energy law (in 2006 and new Energy law in 2011)
Strategy for energy efficiency till 2020 year
Strategy for Energy development (2008-2020) with vision till 20130
Strategy for renewable energy usage in Republic of Macedonia till 2020
National programme for energy efficiency in public buildings (2012-2018) draft

Besides the document the Programme for enhancing the usage of renewable energy in RM
was adopted and the Energy Efficiency Agency as well as the Energy efficiency Fund were
established in 2010. This was a strong signal first for MBDP as well for some commercial
banks to create special credit products for financing environmental including energy
efficiency and renewable energy project offering special and more favorable terms of
crediting.
 Entrepreneurship , competitiveness and SME development

The Ministry of Economy as responsible authority for creating favorable business climate ,
has created and Government adopted the following documents which support SME
development :
 National strategy for SME development ( which was drafted in 2002 , reviewed in 2004
and amended in 2004)
 Four years Programme for SME development ( first adopted in 2006) envisaging support
and subsidies for micro and small enterprises and special support for establishment of
SME
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

 Programme for SMEs’ entrepreneurship, competitiveness and innovation development
2012 envisaging financial support to handicrafts and micro enterprises in standardization
of their work.

Knowing that the micro and small enterprises are financially not strong enough and need
loans at least in first years of their work, the Government adopted so called Law on banks for
micro financing, envisaging the banks which will be established for micro financing only ,
with more favorable lending policy in terms of interest rate, collateral and repayment period.
It gives the incentives for all other banks to incorporate special and more favorable conditions
in their lending policy when financing micro and small enterprises.
 Labor rights, active measures for employment, poverty reduction and social
inclusion at the labor market

One of the most favorised area in terms of creating favorable conditions through legislation is
the area of labor and social policy , tackling the issues of labor rights, active measures for
employment, poverty reduction and social inclusion at the labor market .
Therefore , the following law and strategic document have been adopted:






Labor law
Employment Strategy 2006-2010
Employment Strategy 2011-2015
National Strategy for poverty reduction and social exclusion in RM 2010-2020
National Strategy for youth (envisaging special measures for employment of youth in RM

As of 2007 the Government has been adopting the Operation plan for implementing Active
measures for employment envisaging measures for :
 Smart growth – program for preparation for employment
 Sustainable growth – Programme for self-employment and Programme for financial support
of the SME for new employments
 Inclusive growth – Employment Subsidy programme , Programme for social useful work,
Progaremme with packages for employment support

The active measures supported the self employment initiatives by giving financial support in
amount of 3000 EUR for start up businesses with special focus of unemployed young people.
Although these fund were highly welcomed by unemployed youth, in many cases they were
not enough and additional fund in terms of loans were needed. This directly impacted the
banks to create the special lines for start up business and self-employment which was seen as
a complementary funding for successful outcome from the active measures created by the
Government.
 Developments and restructuring of the agro-sector

Over 10 years the agro sector ( primary producers and food processors) are supported through
the fund provided by IFAD-International Fund for Agriculture Development . Some of the
banks have been even specialized for crediting the agro-sector being additionally supported
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by IFAD funds, or they have created complementary credit packages (comprised of both
banks and IFAD funds)
In recent years the agriculture was seen as a part of the rural development and gives a new
light in respecting the principles of rural development in the EU context.
Therefore the Government adopted several laws and bylaws enabling favorable environment
for agro sector development (within rural development umbrella) through financial and other
support:
 National strategy with action plan for organic production 2008-2011
 Law on organic production
 Law on agriculture and rural and development (envisaging among the other issues measures
for support of rural development , the state aid in agriculture and rural development )

As of 2010 the Ministry of agriculture, forestry and water economy , has been creating the
Programme for financial support of the rural development aimed to increase
competitiveness in agro sector
Additionally , in the period 2007-2011 the state withdraw over 60 milion EUR for
implementing the IPARD measures for rural development in order to prepare the agro sector
for EU accession .
The IPARD fund are aimed for investments for restructuring the farms and food processing
facilities according to Community standards requirements as well as for diversivication and
development of rural communities .
As the IPARD funds cover 50% of the total costs, the rest should be financed by the farmers
own resources ( i.e own savings or loans by commercial banks). The Government even has
formal discussion with the banking sector , for providing additional 50% of the fund through
crediting with special favorable conditions in order to support implementation of the project
for agro sector restructuring and rural economy diversification.
4.2.The role of the Macedonian Bank for Development Promotion (MBDP) in
supporting “sustainable financing”
Although the Government of the RM has given strong incentives towards corporate social
responsibility concept implementation and promotion of further aspects of sustainable
financing, it seems that the strongest initiative in this sense is given by the Macedonian Bank
for Development Promotion as it is already incorporated the concept of sustainable financing
and corporate social responsibility in its strategy business philosophy and policy.
Namely MBDP offers the following financial products:
1. Lending
o

o

export credit financing - working capital for pre-shipment export finance and working
capital for bridging the period between export and collection of payment from the foreign
buyer;
credit support to SMEs - permanent working capital and investment financing from
various fund sources: ICL-Revolving, MBDP, EIB-Revolving, EIB-50 million euros;

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o

credit support to agriculture and agro-industry - primary production, processing and
export;

o
o
o

o
o

micro financing - micro and small scale enterprises, individual entrepreneurs,
handicraft shops, private merchants, market counters, and other micro and small scale entities;
financing energy projects - energy efficiency and renewable energy sources;
loans for reducing unemployement - creation and preservation of jobs and selfemployment financing.
2. Credit insurance of:
domestic accounts receivable (pre- and post-shipment)
export accounts receivable (pre- and post-shipment)against commercial and political
risk.
3. Factoring – i. e . providing finance to:
- small and medium-sized enterprises registered in the R. Macedonia, through commercial
banks, i.e. intermediary banks, and
- export oriented enterprises registered in the R. Macedonia, through commercial banks, i.e.
intermediary banks or directly through MBDP.
For the purpose of the analysis, the most important financial product are credit products, i.e
credit lines for :
-export credit financing – providing working capital for pre-shipment export finance or
bridging the period between export and collection of payment from the foreign buyer ( with
minimum amount: EUR 15,000 and Maximum amount: EUR 2,000,000, repayment period of
2 year and interest rate of 6%). These loans is distributing through 14 intermediary Banks (out
of 18 banks) in Republic of Macedonia.
-SME financing – permanent working capital and investments from different sources: ICLrevolving, MBDP, EIB-revolving, EIB-50,000,000 euros . The minimum amount per
beneficiary is EUR 5,000 while maximum amount is over 600.000 EUR , with repayment
period of 3 years/grace period of 6 months and interest rate of 5,5%). These loans is
distributing through 11 Macedonian intermediary Banks .
-financing agriculture and agro-industry – for primary production, processing and export
of agricultural products , including investments supported by IPARD Programme ( with
different conditions relating the sub- purpose and the beneficiaries of the loans) and being
disbursed through 11 Macedonian intermediary banks.
- micro financing - micro and small scale enterprises, individual entrepreneurs, handicraft
shops, private merchants, market counters, and other micro and small scale entities ( with
amount up to 15.000 EUR and repayment period of 2 years for micro loans and up to 50.000
EUR and repayment period of 4 years for small loans ) . These loans is distributing through
5 Macedonian intermediary banks .
- financing energy projects – i.e. energy efficiency and renewable energy projects,
environmental care and improvements of energy climate ( with amount up to USD 500,000
per beneficiary , envisaging repayment period of 6 years and floating interest rate). The loans
are being distributed through 5 Macedonian intermediary banks .
- loans for reducing unemployment – total amount of 10.000 EUR for creation and
preservation of jobs and self-employment ( with the individual loans up to 400.000 EUR ,
repayment period of 7 years and grace period of 2 years and floating interest rate.This credit
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

line is expected to create 950 new jobs and the loans are distributed through 3 Macedonian
intermediary banks.
The fact that all above mentioned credit lines are distributed through the commercial banks,
the lending policy of the commercial banks is affected in two ways:
-Being the intermediary banks for MBDP credit lines they accept the credit products as their
own and further more create credit conditions regarding their general credit policy ,
respecting terms from the agreement signed with MBDP.
-In case of positive experience related to sustainable financing, the banks dedicate certain
amount of their own banking fund and create special credit lines that support sustainable
development areas.
5.MACEDONIAN BANKS IN FINANCING SUSTAINABLE DEVELOPMENT
The Macedonian banking sector is composed by 17 banks among which , 3 of them are
categorized as big, 9 as medium and 5 as small banks . The structure of the assets is highly
concentrated in the hands of the small and some medium banks . Namely 13 out of 17 banks
individually participate with less than 5 % of the total banks assets , while 11 of them
individually posses less than 3%. Therefore analyzing the big and selected medium banks
might give us representative and real image in case of sustainable financing research.
In fact, the research for the purpose of this paper was made through desk work and structural
interviewing of the representatives of 3 big and 4 medium banks.
In fact the preliminary analysis included the involvement of 2 small banks , however the
interest and involvement in corporate social responsibility concept and sustainable financing
was very limited if not insignificant for the research.
1. The first area of research was focused on the level of accepting the concept of Corporate social
responsibility in terms of business philanthropy , financing community projects, environmental
initiatives as well as humanitarian , cultural and other socially useful activities.
2. The second area was the assessment of the level and way of integration of environmental and other
sustainable development criteria into lending policy of the selected banks

5.1.Corporate social responsibility concept in the banks philosophy and strategy
The selected banks were interviewed among which the main questions and aspects for
analyzing were as following :
CRS values: Does your bank have incorporated corporate social responsibility values in your
banking philosophy and strategy (bank mission, code of conduct, etc)?
CSR strategy and operational plan: Has your bank developed the corporate social
responsibility strategy and operational plan for supporting/financing CSR projects for each
year?
Transparency: Does your bank is transparent and accountable for supported projects?

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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

CSR areas supported: What areas of corporate social responsibilities does your banks
finance?
Projects supported: How many project per year are supported or /and total amount per year
allocated for CSR projects
The analysis and interviewing the selected banks representatives gives the following results:
Table 1- Concept of CSR in Macedonian banks
Areas/Questions

Big banks (3)

Medium banks (4)

I

II

III

I

II

III

IV

KB

NBG

NLB

Halk

Spar

TTK

Procredit

CRS values

YES

YES

YES

YES

YES

YES

YES

CSR strategy

NO

YES

YES

NO

NO

YES

NO

Transparency

YES

Partly

YES

YES

Partly

YES

Partly

CSR operational plan

Partly

Partly

YES

NO

YES

NO

Partly

CSR areas supported

Sport

Sponso
rship

Culture
Science
Health

Award
for
CSR

Donatio
ns

Social
Humanitar

In details, analyzing the concept of CSR in the selected banks, the following comments and
conclusions can be made:





All banks ( small and medium size ones) have declared their commitment and responsibility to the
community and citizens through incorporating the CRS values in their Code of conducts , the
statements related to the banks’ mission and objectives.
However only few of them (two big and one medium sized bank) have incorporated the concept of
CSR in their business strategies or create special CSR strategy.
In fact the concept of CSR is mostly at the level of business philanthropy and in most cases can’t
assure sustainable component in any of the sponsored or donated project/actions.
Transparency and accountability can be recognized in almost all of the selected banks. Namely most
of the banks have announced officially the CSR project that have been supported ( in terms of
sponsorship and donations) and its considered as their PR activity , however no incentives about the
amount of money spent on certain projects nor official figure about total amount of money allocated
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo









for this purpose. Asked during the interview to precise approximate amount for CSR projects , almost
all interviewers considered this question as confidential one.
Furthermore only several banks have open invitation for those who ask for sponsorship/donations
and /or offer e-application on their web-pages. In most cases the request are made through direct
meeting with high level of management and only in few cases there is un official who has certain
responsibilities about monitoring and follow up of CSR projects/actions.
This all leads to the further conclusions that the annual plans for sponsorships and donations are partly
created in advanced , but most of the activities are sponsored/donated ad hoc as the top management
consider it as interesting one.
Almost all banks have similar CSR areas to support . These banks are involved in practically the most
important humanitarian/health , cultural and sport activities and noting that in recent two years the
social , humanitarian and health project are more sponsored than the sports and cultural events as it
was a case in the years before.
Even more, some of the selected bank has got CSR award for social responsible company which is
awarded by the National Coordination body for CSR in recent two years.
It is also evident the progress that the banks made supporting different projects and actions so that the
number of yearly supported CSR projects ar between 5-6 in the middle sized banks and 15-23 project
in the big banks.

5.2.Credit policy and sustainable development in Macedonian banks
In order to assess, whether the sustainable development criteria are incorporated into the
credit policy of the selected banks, the following issues were discussed/questions asked:
Credit lines: Does your bank have special credit line supporting sustainable development?
Lending policy: Does your bank incorporate sustainable financing in its lending policy?
Number of loans: How many credit products are provided by your bank that finance the
sustainable development projects ?
Intermediary: How many and which credit lines/products does your bank distribute as an
intermediary bank of MBDP?
Own sources: How many and which credit lines/products does your bank distribute from its
own resources supporting sustainable development?
The results from the research are given in the Table 2:
Table 2 – Sustainable development criteria into the banks’ credit policy
Areas/Questions

Big banks (3)

Medium banks (4)

I

II

III

I

II

III

IV

Credit lines

YES

YES

YES

YES

YES

YES

YES

Lending policy

Partly

Partly

YES

YES

Partly

Partly

YES

Number of loans

7

4

7

9

5

4

5

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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Intermediary

Export

Export

Export

Export

Export

Export

SME

SME

SME

SME

SME

SME

Agro

Agro

Agro

Agro

Agro

Agro

Energy

Micro

Micro

Micro

Selfemployment

Energy

Energy

Special
clients

Special
clients

Agro

Start up
business

Eco

ECO plus

Agro

Special
clients

Own sources

Special
clients

Agro

Micro

SME

Energy
Micro

Energy
efficiency

ISO Certif

Additionally the 5 areas of particular environmental or social concerns were analyzed through
selected banks. The results are given down below:
Table 3- Areas of particular environmental/social concerns in the banks’ credit policy
Environment &amp; Energy

Agriculture

Social
aspects

SME
development

Big banks
I Bank

X

X

II Bank

X

X

III Bank

X
X

X

X

x

X

X

X

X

X

II Bank

X

x

X

III Bank

X

x

X

Medium sized banks
I Bank

IV Bank

X

X

X

X

X

Analyzing the types of loans provided by the selected banks in terms of financing sustainable
development , the following comments and conclusions can be made:

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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo













In general all selected banks offer different types of loans for financing sustainable
development
However , despite of high level of awareness to corporate social responsibility projects and
actions , the same level of commitment is not indentified with their credit policy . In fact
only limited number of selected banks truly incorporate sustainable financing in their lending
policy, while the others provide almost all sustainable loans being in a positions of
intermediary bank for MBDP credit lines.
Even two out of three big banks , which were the leaders in supporting ad-hoc CSR projects ,
don’t apply the same rule while creating the structure of their credit portfolio .
Related to the number of the sustainable finance areas that are covered by certain loans it
also important to mention that medium size banks are not much behind the big ones. Just on
the contrary, one of the medium size banks have 9 different types of credit products for
sustainable development support while the big banks provide 5-7 different credit lines for the
same purpose.
The real image is even more obvious when analyze the source of funding for such credit lines.
Namely most of these loans for sustainable development is financed by the international
sources acquired through Macedonian Bank for Development Promotion (MBDP) .
Practicably 3 selected banks have only one credit line for sustainable development purpose,
while all the rest are part of the intermediary agreement with MBDP.
When analyzing the types of loans from the banks own sources ( own capital, deposit and
non deposit sources) most of selected banks have developed loans for special group of
citizens, such as youth, ( students loans), retired old people ( who are not eligible for common
types of loans) , people employed in the health and education , while the loans for selfemployment and start up businesses are provided by one big and one middle sized bank only.
Additional two middle sized banks are providing from their resources so called ECO loans for
environmental projects and energy efficiency actions , while one of them is also support
certification and standardization of the working procedures in small and micro companies.

When analyzing the table 3- Areas of particular environmental/social concerns in the
banks’ credit policy, it can be concluded that:




The most represented area of sustainable development financed by all banks are the area of
agriculture as well as financing of micro and small enterprises. The certain loans for support
of the primary production or food processing , as well as micro and small loans are present in
each of the selected banks credit portfolio .
Energy and environmental issues are however financed mostly from MBDP credit lines while
3 banks create their own credit product for the same purpose.

The least represented credit lines are those who are supporting certain social aspects, employment of
young people, self-employment and other project for certain group of marginalized group of people

6.CONCLUSIONS
The research findings are bringing us to the following conclusions:
1. There is appropriate level of social corporate responsibility among the selected banks the financial support of the social initiatives (culture, science, sport, and other
initiatives) supported by the most of the banks as well as presence of transparent
policies on social corporate responsibility.
2. Limited number of banks are developing sector-specific policies that apply to their
lending activities. They established special credit lines with favorable conditions to
finance agriculture organic production , renewable energy production , micro
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innovative business support , as well as startup companies support for certain social
categories.
3. In fact, despite of high level of awareness to corporate social responsibility projects
and actions , the same level of commitment is not indentified with their credit policy
In fact only limited number of selected banks truly incorporate sustainable financing
in their lending policy, while the others provide almost all sustainable loans being in a
positions of intermediary bank for MBDP credit lines. Therefore MBDP is the biggest
promoter of the special loans for sustainable development , while some of the medium
sized banks are trying to assure better position at the market , with allocating part of
their credit potential for the purpose of sustainable development financing.
LITERATURE
Coro Strandberg ,”Best practices in sustainable finance” – Strandberg Consulting, June 2005
WWF &amp; BankTrack Report - “ Shaping the future of sustainable finance” – WWF , 2006
Marchel H.A. Jeunken , Jan Jaap Bouma “The changing environment of banks “GMI 1999
Marcel Jeucken “Sustainable Finance and Banking” November 2001.
Jan Willem van Gelder “The do’s and don’ts of Sustainable Banking - A BankTrack
manual”- 2004

Post-Modern Criticism of Monetary System and Financial Institutions
Adi Fišević, Ugur Ergun
International Burch University, Faculty of Economics
71000, Sarajevo, Bosnia and Herzegovina
E-mails: adifisevic@yahoo.com, uergun@ibu.edu.ba
Abstract
Monetary System represents a synonym for modern economic era and its functionality. In
order to maintain economic stability it is important to keep major segments of monetary
system in balance. Throughout analysis we will first emphasise on nature of money and basic
characteristics of it by observing its impact on human nature to reach focal points that could
negatively affect monetary system. Since world is reaching toward one unique economic
space we must observe it as compact unity in order to react on time to all negative impact that
could potentially destabilize international monetary system. Crucial part of the analysis will
be based on uncontrolled creation of debt which represents major factor that creates instability
on the global and intra-country scale. Since the debt is mostly created throughout generally
implemented fractional reserve system we will try to indicate how money multiplier
contributes toward debt creation and how it changes over time. Also institutions like IMF and
World Bank contribute to excess debt creation by formally providing loans to counties in
development that eventually sink into deeper crises. One of the most fragile segments of
103

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                <text>This paper focuses on the role of the banks in supporting sustainable development.  Its objective is to examine recent trends in banking and sustainable development, as well as  to assess the implementation and application of the sustainable development policies adopted  by the banks in the banking sector in Republic of Macedonia.  For that purpose it is made a comprehensive analysis on the trends of “sustainable finance”,  as well as research on the practices in the Macedonian banking sector in supporting  sustainable society.  Namely, at the beginning of the 21st century, the banks in the industrial world have become  complex financial organizations that offer a wide variety of services to international markets  and control billions of dollars in cash and assets. Supported by the latest technology, banks  are working to identify new business niches, to develop customized services, to implement innovative strategies and to capture new market opportunities. By means of their financing  policy, banks can then take specific measures to contribute to sustainable entrepreneurship.  As the analysis indicates, with few exceptions bank policies in the West Balkans are lagging  significantly behind relevant international standards and best practices.  Until recently, most Macedonian banks did not consider environmental and social concerns  to be particularly relevant to their operations.  Today, however, the integration of sustainability into the banking sector of Macedonia has  taken two key directions:  Support the environmental and social responsibility through financial contribution in  environmental initiatives and socially responsible initiatives  Integration of environmental and other sustainable development criteria into lending and  investment strategy of the banks  Therefore, the paper reviews the environmental and social policies of the selected big and  medium sized banks in Macedonia, as well as policy and the practices if the specialized  promotion bank-Macedonian Bank for Development Promotion.</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Importance Of Training Aimed At Production In Businesses:
Educational Studies Carried Out By The Turkish Private Sector
Gökhan Ofluoğlu1, Sibel Buzkan2, Sadık Kiliç3
1Zonguldak Karaelmas University
Faculty of Economics and Administrative Sciences,Department of Labor Economics and
Industrial Relations
İncivez – Zonguldak, Tel: (0372) 2574010 2Zonguldak Karaelmas University
Faculty of Economics and Administrative Sciences,Department of Business Administration
İncivez – Zonguldak,Tel: (0372) 2574010 3Zonguldak Karaelmas University
Faculty of Economics and Administrative Sciences,Department of Labor Economics and
Industrial Relations
İncivez – Zonguldak, Tel: (0372) 2574010 – 1669
Emails: kilicsadik80@gmail.com,gofluoglu@yahoo.com,sibelbuzkan@yahoo.com

Abstract
There are basically three kinds of educational activities in the World and in Turkey. These
are formal/organized education, non-formal education, and informal education. In this age the
importance of informal education is increasing. This is due to the inadequacy of formal
education and its complementary, non-formal education, for the postfordist contexture of
production. In Turkey, businesses do not play a part in any of these three kinds of educational
activities. However, their active output are getting larger and larger from formal to informal
education. While there is an indirect participation of the businesses on this issue in formal and
non-formal education, in informal education there is direct participation. Actually, the core of
informal education constitutes the learnings experienced in the work place.
In this study, within the training aimed at production in the businesses, apprenticeship
workshops which are implemented within the frame of formal education and vocational
training which is the extension of formal education, as well as various educational activities
and informal education which are implemented within the formal education are discussed.
The necessity of informal education and its further connection to productivity is emphasized.
Keywords: Productivity, Formal Education, Non-Formal Education, Informal Education.
1.INTRODUCTION
There have been studies on the issue of the importance of education beyond measure. Most of
these studies emphasized the importance and necessity of education. Indeed, when education
is handled efficiently a lot of important development, including productivity follow. In this
13

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

study, educational activities in Turkey are argued. Not the full extent of the educational
activities, but only the activities which the businesses participate in in the process of
education are dealt with. However, educational issues, as they pose an integrated lot, have
occasionally been excluded. In the study, it is assumed that there is a closer relation between
informal education and productivity and with a presupposition the relation between education
and productivity is often assumed to be positive.
Assessment and evaluation is one of the leading issues of economic requirements of our time.
Above all, assessment provides focusing and scrutinizing in case there is a problem. Various
productivity assessments are made. The assessment applied is shaped according to the goal
pursued and data provided. In this manner, classification related to productivity assessment
can be made according to its extent, its field of application, and according to the scientific
discipline. (Akçay, 2011:37-44). Productivity assessments according to their extent are
divided into two as follows: with a single factor and with multiple factors. In single factor
measurements, not only labor productivity but also capital productivity is assessed. In
productivity assessments with multiple factors, on the other hand, input is evaluated as a
whole. At this point, labor and capital are evaluated simultaneously and sometimes inputs
such as energy and supplies are also attached(OECD, 2001:12). Speaking of productivity, in
essence, we comprehend the input-output ratio.
Labour productivity analysis at macro level is calculated either as amount of productivity or
value of yield per laborer or work done per hour. Instead of productivity value, sometimes
wage level can be applied in productivity analysis. However, research has been done
indicating that sometimes the wage level and productivity level are not the same(Dearden,
Reed, Reenen, 2005:22). In Turkey, since 2005, apart from the first quarter of 2009, labour
productivity has displayed a steady increase (General Directorate For Productivity, 2012:1).
Table 1: Productivity Charts
Country/Disctrict Name

Work Done Per Hour GDP
Per capita (USA=100)

Annual Labour Productivity Rate of Increase
2005

2006

2007

2008

2009

2010

Turkey

44,7

5

4.6

4.7

-0.9

-4.4

3.1

Germany

90,7

1.2

3.6

1.7

-0.1

-2.5

1.4

France

97,7

1.5

2.8

0.3

-1.7

-0.2

1.7

England

78,3

1.2

2.2

1.8

-0.5

-2.1

0.9

USA

100

1.5

0.8

1.2

0.7

2.1

3

OECD Total

75,3

1.5

1.7

1.6

-0.1

-0.3

2.2

G7 Countries

87,6

1.6

1.4

1.2

0.1

0.2

2.4

Source: (online), http://stats.oecd.org/Index.aspx?DatasetCode=LEVEL, and
(Online), http://stats.oecd.org/Index.aspx?DatasetCode=PDYGTH, 2012.

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In reference to Table 1, Turkey is considerably behind the other countries and regions with
regard to productivity of workforce per working hour while sharp increases and decreases are
perceived at productivity growth.
This calculation is favourable when we consider labour productivity as input-output ratio .
Yet, when we try to focus on reasons of increase and decrease of labour productivity we do
not have much data because there are a lot of elements effecting labour productivity.
Although some of these may be dependent on other factor productivities such as capital and
provisions they may also be independent of them. A business or an economy are each an
open system. Labour productivity both at macro economic level and management level are
effected by environmental factors extensively. Thereby, the fluctuation of labour productivity
takes form by the influence of intermediary factors. At that point it becomes difficult to
clarify labour productivity. Multi-factor productivity analyses are developed to overcome this
drawback. Moreover calculations are made to indicate which factor is higher (Triplett,
Bosworth, 2003:27). However, these are also far from taking environmental factors into
consideration. A lot of internal and external environmental factors such as the structure of
industrial relations, competition, the international openness of the market and Research and
Development activities effects productivity (Dawkins, Rogers, 1998:196).
“Micro economic reforms” implemented in Australia since 1980 are leading sample cases on
this issue. For, these reforms are an effective insidence of environmental factors.
Privatizations, repealing or reducing the protective taxes against international trade, labour
market deregulation, lifting the impediments in getting into the markets are some of these
reforms (Borland, 2012). It is argued that these reforms have positive effects on productivity
in many researches made in Australia (Mckenzie, 2005). The allegations in these researches
are also supported by ampirical data.
Consequently, there are tens of factors that affect labour productivity. Yet, there is such a fact
that uneducated society is unskilled at the same time. In this respect, the impact of education
on productivity, though it is not possible to prove empirically, has a positive effect.
Education in the World and in Turkey can basically be divided into three. These are formal,
non-formal and informal education. Formal education (with diploma); is the term given to the
kind of education classified traditionally as pre-school, primary education, secondary
education and higher education. Non-formal education (certificated) is qualified as the
supplementary of formal education and apprenticeship and vocational training in Turkey can
be evaluated in this context. As for informal education, it encompasses the education beyond
the two denoted education types above and rather related to educational activities performed
by private sector. These educational activities are set up to make up some shortcomings.
There is usually no diploma or certificate; even if there is a certificate it does not have much
formal value. The core of informal education constitute the kind of training, commonly,
denoted by the expression “uncertificated” which refers to on-the-job-training. Nonetheless,
educational activities arranged to supply with the interests and requirements of the workers of
a business are in the range of informal education (İSO, 2012). Besides, an educational
activity sometimes goes under more than one category. Particularly, non-formal and informal
education may be confused. Hence, certificate is awarded at some kinds of informal
education.
Human Capital Theory also seperates general (formal) and private (informal) education from
one another. Formal education is not an education studied solely for a particular employer or
work place or work. Throughout an individual’s life formal education has the quality of being
used in various jobs. However, non-formal education comprises some special gains and in
general these gains cannot be transfered from one workplace to another(Viele, 2010:584).
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Formal education which is agreeable with the Fordist production structure and its
complementary non-formal education cannot be satisfying enough for today’s markets. For,
postfordist production structure requires keeping the current workforce appropriate to the
volatile market conditions. Similarly, replacement of centralized planning by the market
oriented economic system emerged in 1980s corroborated this course. In this context, the
sample case presented by Lechener (1999:74) for East Germany is basically feasible to a large
extent for the other countries as well. That is; in place of formal and non-formal education
funded by state, informal education funding of which is undertaken by those who need the
education and private sector organization becomes widespread. There is a common belief that
there is a linear and positive connection between education and productivity. Moreover,
economists perceive the widespreading of education as the crucial element of economic
growth(Vinovskis, 1970:550). A lot of writers, such as Schultz, declare that productivity will
rise with the rise of the qualities of workforce(Arrow, 1962:172). As educational level
increases, possibility of easy adaptation to the changes that occur and structure that is more
suitable to technological developments is constituted. Hence it is a known fact that education
also generates a lot of positive externality(Nelson, Phels, 1965:75). The common belief that
relation between formal education and productivity is positive is one of the fundamental
hypothesis of Human Capital Theory.
Arrow considers the method of learning named “learning by doing”, substituted by the
concept of experience, important in many aspects. In view of Arrow, it is not possible not to
observe the importance of experimentation in the growth of productivity (1965:156). Romer
(1986:1002) articulated that, in long term growth, instead of falling marginal productivity of
the classical theory, rising marginal productivity should be debated on the issue of
“knowledge”. According to Romer, when a company’s or an individual’s knowledge
increases this situation cannot be restored by the company or the individual and the
knowledge spreads.
On the issue of decreasing productivities law, which creates indecision, asserting that laborcapital correlation can be positively sloped, there is emphasis on the importance of education,
knowledge and learning on the basis of approaches which weakens the basic assumptions of
the classical theory.
The internal development model elements consist of surge of knowledge, public expenditures
and impact of human capital, constitute the models that are developed as an alternative to
classical theory. In this respect, Kar and Ağır (2006) who examined the years between 1926 –
1994 reached the finding that spending on education increased growth. At another study
researched between the years 1969 – 2001, it is observed that the impact of human capital on
growth is more explicitly highlighed (Taban, Kar, 2006:175). In the same manner, yet in
another study researched between the years 1960 – 2004, it is observed that growth and
education influence one another mutually(Şimşek, Kadılar, 2010:115). Similar findings are
reached in the studies researched between 1950 - 2000(Serel, Masatçı, 2005) and between
1923 – 2005 (Özsoy, 2009). The impact of formal education on productivity is realized in an
adjournment. The return of today’s formal education investments are gained after quite a long
time. The situation on non-formal and informal education is a little different. In these
educational types, as there is the question of supplying certain necessities, the impact on
productivity is expected at a much earlier time. We must also take into consideration that
education that is not befitting for the necessities, may lessen productivity instead of enhancing
it. In essence there are two kinds of education aimed at productivity: the first one is standard
(knowledge) and the second one is flexible (aimed at outcome). Today’s educational activities
tends rather towards the second one. Some of the causes of this are: structural changes such
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

as: privatization, deregulation, decentralization and authorization; for the companies
becoming more international; labour market becoming more flexible, quality and productivity
becoming a strategic instrument in engendering a new market; strategic management
becoming more valuable than hierarchical management; human resources and human skills
being conceived as the most important productivity factor gradually and others (Prokopenko,
North, 1997:A-3).
In education – productivity corrolation, without doubt, the gainings of education related to
work ( the informal education) emerges in a shorter time and it has more direct effect
(Dearden vd, 2005:23). But, the acquisition provided after any educational investment and its
impact on the productivity is quite difficult to assess. Moreover, assessing solely the
production encompasses crucial complications. Labour productivity, on the whole, denotes
output coinciding employment per hour. To find this output in service sector is even more
difficult(Bolino, 1981:5). Service industry is the sector which has the broadest area of the
present day. The business evaluations in this sector are more compelling and evaluation
outputs less precise.The difficulties endured at performance evaluation in this sector are also
valid at productivity evaluation. In this context, Lee’s categoric division between businesses
can be taken into account. Lee divides businesses into two as those that can be evaluated
definitely and those that cannot be evaluated definitely(1985:324). It is possible to make
precise and trustworthy evaluations with works that we can come to a conclusion and count
substantially. The second one is the works that we are trying to evaluate the transformation
process between input and output or means-end relations. The target is whether the
organization is progressing or not and whether it is effective and efficient or not for which the
process requires a variety of behaviours to reach the means-end. The expansion of the service
sector has increased the number of businesses the evaluation of which is difficult to make. In
a research it is found out that education given to industrial sector provided a rate of increase
of productivity more than the education given in services sectors(Maglen, Hopkins, Burke,
2001).
Undoubtedly, every country has some educational problems. However, when we compare
Turkey with countries such as Germany, France and England, we observe that the problems in
Turkey is at a larger dimension.
Table 2: Principal Indicators In Education
Educational
Expenditures As
GDP Percentage

Participation Of
Age Range 1824 In Education

Rate of Participation
Of Age Range 25-64
In Education(Lifelong Learning)

Number of students
per teacher (2009)

Turkey

2,82 (2006)

26,4

2,5

21,1

England

5,40 (2008)

45,4

19,4

15,8

Germany

4,55 (2008)

55,9

7,7

16,6

France

5,58 (2008)

55,3

5

14,6

Europe 15

4,97 (2008)

53,4

10,4

-

Name of Country

Source: data compiled from EUROstat . (Online)
http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/themes, 2012.

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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

In the context of both formal and non-formal education, it can be observed that with compare
to other European countries Turkey has quite unfavourable indicators. Particularly with
indicators related to participation to education and educational expenditures there is a distinct
difference. When the fact that the population of Turkey is comperatively young is considered,
the importance of these negative indicators are doubled.
Further additions can be made to Table 2. The rate of illiterate population, the rate of
schooling, ranged from preschool to higher education, financial troubles, crowded classes
despite excess supply of teaching staff applicants are some of them. To sum up, Turkey’s
educational problems are structural. EU membership is a favourable aim at overcoming these
problems. Whether full membership to EU is actualized or not it is essential for Turkey to
take measures on the issue of education(Gediklioğlu, 2005:70).
2.Participation To Educational Activities In Businesses
Turkish private sector administrations participate in educational activities within the frame of
some exceptional applications of formal education, the workplace applications of non-formal
education and informal education. Contribution to formal and non-formal education shows up
in indirect ways whereas informal education is a matter of direct contribution.
3.Formal Education
Businesses participate in formal educational activities in connection with apprenticeship
applications within the scope of vocational high schools and vocational colleges of higher
education. In this respect, it will be more precise to confine the subject matter to vocational
high schools and vocational colleges of higher education. However, not only apprenticeship
applications are taken into consideration about this issue, but also the common problems of
vocational education is dealth with. For, these issues are interlocking issues and their solution
requires an integrated point of view.
There are a lot of vocational highschools in service. These are basically divided into two;
vocational schools like : industrial vocational highschools, trade vocational high schools,
islamic vocational high schools, vocational schools for girls, vocational schools of justice and
vocational schools of health constitute the first division and the second division constitutes
the technical high schools. There is a relatively negative structure in question from the scope
of vocational education when compared to economically developed countries according to the
percentage of vocational and technical highschools in secondary education.
Table 3: The Percentage of Vocational and Technical Highschools Within Secondary Education in Turkey

Percentage of Vocational and
Technical Highschools Within
Secondary Education

1996-97

1999-00

2002-03

2005-06

2008-09

2009-10

2010-11

%45,8

%39,56

%32,59

%36,2

%40,7

%42,9

%44

Source : TÜİK, “Educational Statistics”, (Online), www.tuik.gov.tr, 2012.

As seen on Table 3, the percentage of vocational and technical highschools from 1996-1999
school years of 45,8% continuously decreased until school year 2002-03 reaching the bottom
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

line of 32,59 % . The percentages that are already behind a lot of western countries
diminished lesser and lesser, until it turned to rising trend from 2004 on, coming closer to the
level of 1996. During this process vocational schools have lost a lot of respectability in the
public eye. Without doubt, the changes on the coefficient applied at university entrance exams
is the main reason why this process is endured (Şahin, Fındık, 2008:79). The circumstances
gave rise to qualitative losses so much so that it overshadowed the quantitative losses that
arose in this respect. Vocational highschools, became the primary educational institutions
preferred by the students who fell below the level of avarage. Therefore, even if the
coefficient comes up to balance today, it will not be able to solve the problem automatically.
German Vocational Educational System could be an agreeable target to enhance the labour
productivity of vocational highschools because Germany holds one of the most successful
educational systems in the World. In this system named The Dual System, predominantly, the
age groups of 15 – 22 get education. 3 – 4 days a week is spent in workplace and 1-2 days a
week at school. Two-thirds (2/3) of the time spent at school is filled by vocational subjects
(BMBF, 2003:34). Those who graduate from this system may also carry on with the
university education. Approximately 2/3 of the age group is involved in The Dual System
(ibid:7). Companies contribute in financing directly, and completely set an example of good
corporatism. A large majority of students who graduate take place in working life, gaining the
status of being “skilled”.
German dual system virtually displays non-formal educational characteristic. But, majority of
vocational education -leaving apprenticeship education aside- materializes within the scope of
formal education. When German system is targeted, 1 we can easily affirm that we are far
behind this aim.
German dual system is also presented as a leading example model by The World Bank.
Hence, this model is even suggested for those countries which are specified as “developed” .
It is frequently disclosed that this model also provides a significant amount of cost advantage.
Herein, Bennell ve Segerstrom (1998:280)’s comments should be given heed. In their view,
German dual system depicts a unique characteristic. Between employers and their uppermost
organizations, workers and labour unions and the government an intrinsic corporatism is in
question and the roots of this characteristic is extended even to middle ages.
It is, in essence, absurd to determine corporatism as a target because corporatism (the
democratic corporatism) is a social structure that occurs spontaneously and is generally
related to culture. However, some of the technical characteristics of German dual system may
be determined as target. The application side of apprenticeship of formal education in Turkish
vocational educational system remains quite primitive with compare to the German dual
system. Training period, summer applications of vocational highschools of health the duration
is as long as it is determined in their programs and it is stipulated 300 hours in other
vocational highschools and between 30 work-days (240 hours) and 60 work-days in
vocational colleges in universities. (Vocational Education Regulations, art.59).
One can easily reach to the conclusion that on the whole the implementation applied as two
days of school and three days of workshop at workplace is important and necessary in the
evaluation with regard to productivity in the final year of vocational schools. Hence, by this
1 See Esin Özdemir, “The Role of German Vocational Education System and Inferences on Vocational
Education in Our Country and Chamber System” for further information on determining the
German system as an aim and why this system is determined, TOBB European Cooperation Board,
(online). www.tobb.org.tr 2012
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means the students have a chance to get to know the work environment. But with regard to the
length of time it can easily be suggested that it is not sufficient. At the same time, there is
grave distrust on the way this short period is put to use.
Principally, the best method of learning is learning by practice (Karcı, 2009:101). Turkey
must absolutely move vocational education to workplaces in steady paces. At workplace also,
it must definitely be operative and forceful. To attain this, both students’ and employers’
awareness must be raised. Broad responsibilities are conferred upon universities, chambers
of industry and commerce and local authorities on this issue.
The concerns of vocational education is not solely confined to secondary education. In higher
education (tertiary education) similar problems exist. It is a known fact that two years spent
in higher education is insufficient, besides, this period is spent with theoretical subjects.
Again if we take the implementations in Germany into consiredation, in Germany at higher
education institutions equivalent to vocational colleges that take 7 semesters, minimum 2
semesters of apprenticeship training is stipulated. Before training starts, minimum 12 weeks
workplace apprenticeship is stipulated as well. Besides, the students who succeed in
graduating are entitled a diploma as engineers (Karcı, 2009:104).
4.Non-formal Education
The non-formal education is constituted by Apprenticeship Training Centers (MEM),
Community Colleges (HEM) and other non-formal educational establishments in Turkey.
There are totally 392 MEM ( Apprenticeship Training Centers) in Turkey, nearly 300
thousand students take courses in these centers. There are three formal levels which are
respectively apprenticeship, journeymanship and workmanship as a result of which students
are granted a workmanship certificate and are allowed to open their own workplace. HEM, on
the other hand, arranges three kinds of courses. These are: reading and writing courses,
vocational technical courses and social cultural courses. Among these only vocational
technical courses are directly related to labour market. Yet, it is observed that even these
courses are generally aimed at people outside labour or employment (especially the
unemployed are considered). Hence within the body of HEM there are 3,4 million trainees
(Turkish Statistical Institute : TUİK, 2010:2). Within the category of other elements various
schools, centers and institutes exist. Advanced Technical Schools For Girls, Applied School
of Art and Craft For Girls, Applied Industrial Apprenticeship Schools, Adults Technical
Training Center, Adult Training Center of Hotel Management and Tourism, Open Education
Vocational – Technical School, Tourism Training Centers are some of them(Kenar, 2009).
In view of Kenar (2009), the most important component of non-formal education is
apprenticeship training. Apprenticeship training is a part of vocational education. There nearly
300 thousand participants receiving apprenticeship education, the number of which
corresponds to 10 % of the total vocational education. The programs of apprenticeship
education that vary between 2 to 4 years is decided by the boards of “provincial employment
and vocational education”.
Educational activities done by İş-Kur, The Turkish Employment Organization is within the
range of non-formal education. By the establishment of unemployment insurance fund, at the
educational activities of the Turkish Employment Organization a huge amount of increase
occurred within active employment policies. Hence, in the body of labour training courses,
while there was 130 courses and 3868 participants, the amount rose up to 1888 courses and 32
206 participants in 2008 (İş-Kur :The Turkish Employment Organization, 2012). The number
of participants reached 224 thousand between January and November in 2011 (General
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Management Of The Turkish Employment Organization, 2011). Specialized Vocational
Course Centers UMEM Skills’10 project and (apprenticeship) or on-the-job training covers
quite reformist practices and it is related to our subject more closely.
The project of Specialized Vocational Course Centers, consists of educational activities which
are set up to overcome the existing structural unemployment. However, as the activities
implemented lead to acquiring a more qualified workforce, it should be expected to effect
productivity. The project of Specialized Vocational Course Centers: UMEM commenced by
signing a protocol between TOBB (Turkish Union of Chamber and Commodity Exchanges,
Ministry of Labor And Social Security, Ministry of Education, TOBB (Turkish Union of
Chamber and Commodity Exchanges University of Economy and Technology and for the
time being it is spread to 81 provinces. In this sense, it displays a good public-private sector
cooperation. The components of the project is consist of strenghtening the foundation of
education, analysis of labour market requirements, matching/replacing implementation
(selection of course trainee, placing to apprenticeship and job replacement of the successful
participants) and the application of the newly envisaged courses. The target aimed as a
consequence of the project is to employ the course trainee in the particular workplace
(UMEM Skills’10 project, 2012). The number of course trainees within the context of
Specialized Vocational Course Centers Project rose up to 35 thousand between January –
November 2011. 20 TL pocket money is given to the course trainees daily.
Another reformist activity by İş-Kur, The Turkish Employment Organization is on-the-job
training (apprenticeship). In 2011 5209 participants practiced on this rather new
implementation of training, which is very few in number. However, by the objective set by
the Ministry Of Labour And Socail Security (MOLSS), deputy under secretary, it is aimed at
rising this amount to 400 thousand until 2015 (Tan, 2011:10). There is no doubt that in case
this figure is reached, a considerable amount of distance will be covered. Is-Kur provides the
participants’ financial support (20 TL daily) for on-the-job training which lasts 6 months.
Besides, in the context of “Operation to Promote Young Employment”, encouraging on-thejob training is planned, again, by the support of İş-Kur :The Turkish Employment
Organization (İş-Kur :The Turkish Employment Organization, 2011:92).
These are pivotal activities because we believe that on-the-job training is the kind of
education that has the biggest impact on productivity. This should not come to mean that
theoretical education should be totally disregarded. The necessity of certain basic theoretical
study is an undeniable reality. Thus, we should avoid making a generalization for all
occupational groups because in some occupational groups, intensive theoretical discussions
are necessary. In this generalization rather the professions in the context of the occupational
education is emphasized.
4.Informal Education
The significance of informal education is increasingly better understood in Turkey,like in the
World. Informal education comes out with two of its aspects. The first one is a completely
informal education (i.e. uncertified), where there is no setup of any kind for education. All
sorts of knowledge and skills a worker in any workplace learns on his/her own is in this
coverage. The second one is not totally informal. In case of resolving the educational demand
of some or all of the workers of a business on any subject, the education acquired by means
of purchasing a service is also informal education. This is because in the end of the training,
on the whole, either a certificate that may not be transfered to another business is given or
else, no certificate of the sort is given at all.
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

For the informal education to have a positive effect on productivity, before all, this education
has to be productive, itself. The minimum terms for this kind of education to be productive
are as follows:
a) Need-base education analysis: An educational activity done when there is no need to
do it may cause the fall of productivity. what is targeted in analysis is to determine the
absence of any of the three characteristics of an employee. These are knowledge,
skills, and attitute. There is no need for education if there is no inadequacy with any of
these characteristics.
b) Instructional design: In line with the specified necessities, first the present situation is
examined. At this point, the matter of circumstances concerning what to learn and by
whom and the learning medium and its limitations (such as time and money) are
important. These are called educational conditions. The present situation as well as
other circumstances are related to the motivation of the participants and the desired
output. After these conditions are assessed, a method of teaching is selected and
practiced (Reigeluth, 1999:9).
c) The evaluation of the results: Undoubtedly the most complicated stage is this one.
Business managers and their co-workers wish to know the impact of the educational
investment on productivity. An investment has costs. These costs are consist of direct
and indirect costs. Educators’ pay, cost of organisation are direct costs. On the other
hand, as the worker is away from work for that period of time, this causes a loss of
labour. Besides, an opportunity cost also arises at this point. Managers make
educational investment with the expectation that these costs will be covered by means
of a productivity increase. When faced with the difficulty of calculating the
productivity increase, with their intuition, they perceive whether the cost is covered or
is not covered. The way to bring this beyond a thought is to activate the process which
is known as chain of impact. After an educational investment the following stages
must be evaluated respectively (Philips, 1997:5-6):
-

-

-

-

-

Reaction: Whether the anticipation of participation to an educational program is met
or not, is a concern of the satisfaction gained from the program. The level of
satisfaction is usually assessed by a post educational survey. However, in the end of
this survey whether new knowledge or skill is acquired or not cannot be determined.
Learning: It is the study of the evaluation of what the participants gained by the end of
the program. The evaluation, although other methods are also used, is assessed by an
examination by the end of the program. Yet, the result achieved does not reveal any
information about the application of the acquired knowledge about on-the-job practice.
Job applications: The skills learned must be practiced on the job. At this stage, it has
to be evaluated whether the acquired skill is applicable on the job or not by various
methods. Commonly, this is actualized in a few months period after the program. The
outcome of this stage, is a significant assessment that reveals the success of the
program. Still, this also does not give a clue whether the job application of the skills
contributes to organizational success.
Business impact: At this stage, whether the organizational objectives are achieved or
not is scrutinized. For instance, customer satisfaction, quality, outputs and costs are
some of those. However, these also do not reveal information about the amount of the
cost of the program.
Return on investment: This is the final stage of the assessment. In this, the financial
profit is tried to be calculated. That is, answer to the question: “ Does the program
meet the costs?” is searched. The other name for this assessment is cost-benefit
analysis.
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

In the book that Philips wrote in 1994 there were only four levels (1994:7). In 1997, by the
addition of “business impact” the levels rose up to five. As it is summed up on Table 4, the
value of the knowledge acquired at the assessments increase by the rise of the level. Similarly,
the power of displaying the actual results and the difficulty of evaluation is growing. But the
rate of usage diminishes.
Table 4: Chain Of Impact
Chain of Impact

Level 1

Value
Knowledge

of

Power of Exposing
The Results

The least Valueable

Rate of Usage

The least powerful

Difficulty of
Evaluation

Too Frequent

Easy

(Reaction)
Level 2
(Learning)
Level 3
(Behavior)
Level 4
(Results)

The Most Valuable

The Most Powerful

Very Rare

Difficult

Source, 1994: 7)

Human Resources managers or experts assume significant responsibility in informal
education as the unit that determines the educational requirement of the employers are Human
Resources Managements. The duty of Human Resources management is to keep the staff in
the required number and the qualification available for the business. To this purpose
providing workers outside the workplace may be in question as well as the preparation of the
present workers to prospective positions by being trained. The latter is more recognized and a
more preferred alternative. In respect to this, education is one of the primary duties of the
human resources management.
The in-house trainings that are implemented in businesses and educational activities that they
materialize by the method of purchasing services from private educational institutions play an
important role in informal education in Turkey. But besides this, it is known that they
contribute in the process with seminars, conferences and many other educational activities at
universities by the collaboration of universities and the industry. Apart from this, it is viewed
that institutions such as Small and Medium Industry Development Organization (KOSGEB)
also take part in informal education . Hence, KOSGEB (Small and Medium Industry
Development Organization) provides financial support for the firms that require education and
these educational activities are appraised within informal education.
Findings in the research named “Occupational Education In Enterprises Research Results”
made by The Turkish Statistical Institute (TUİK) in 2007 have significance from the
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perspective of our subject. In this research, it is possible to get an idea about the rate of
informal education in Turkey. But there are no completely informal, that is, unplanned
educations here. Unplanned informal education is continuously effective anytime anywhere.
Table 5: Rate of Businesses That Provide Training For Their Employees Among All Businesses, 2007
Case of Producing Occupational Training

Kind Of Occupational Training Activity

The
Size
Of
Workplace Group

The
Rate
of
Enterprises
Providing
No
Occupational
Education Activities

The
Rate
of
Enterprises
Providing
Occupational
Education Activities

The
Rate
of
Enterprises
Providing
Occupational
Education Courses

The
Rate
of
Enterprises
Providing
Other
Forms
Of
Occupational
Education

Total

68,0

32,0

17,1

23,7

10-49

70,6

29,4

14,7

21,7

50-249

59,7

40,3

23,7

30,0

250+

53,4

46,6

35,6

34,2

Source: TUİK (The Turkish Statistical Institute).

When Table 5 is studied, as the the size of workplace grows, it is seen that the rate of
providing occupational education increases. It is a known fact that The Human Resources
Management units in larger, more corporate firms are more effective. Yet, it is seen that,
including even half of those whose workplace is over 250 employees and 32% of the total
businesses organize educational activity.
Graph 1: The Rate of Enterprises Providing Occupational Education According to Course Types,
2007

Source: TUİK(The Turkish Statistical Institute).

The educational activities of (TUİK) The Turkish Statistical Institute are extended to two
divisions, as “courses” and “others”. Courses can be provided internally, organized by the
businesses as well as externally, by paying for the services. The other activities are on-the-job
guided training, rotation and exchange in offices, employment visits, quality and learning
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circles, self-directed learning, participating in conferances, workshops, commercial fairs,
seminars etc. All these are typical examples of informal education.
On Graph 1, the provision of education according to course types and the size ofworkplace is
outlined. It is observed that in Turkey providing an external course is preferred rather than
the others. As the workplace gets larger, especially when the number of employees it holds
becomes more than 250, it is seen providing internal courses is preferred close to 70%.
By and large, the rates commonly indicate that informal education in Turkey is yet at the
phase of development. Without doubt, informal education compared to other education types
has a more effective potential for productivity. This potential has to be used as productively as
possible. Educational need analyses are held in informal education in Turkey.
Generally, educational activities are initiated according to the analyses results. It is gradually
understood better that when the issue of education, which brings out substantial costs for the
businesses that operate by the rules of market economy is governed effectively it has a
beneficial potential that exceeds the costs. By the information obtained from Chamber of
Industry In Istanbul2 , as to whether businesses provide the education in their own
organizations or get external education, educational need-base analyses are held. No
information has been received on educational planning. However, as an educational activity
cannot be implemented without planning, this has to be initially reconciled. That is, no matter
what kind of education is talked about at a certain rate a well-designed educational planning is
made.
The last stage of informal education is evaluation. In Turkey, just like in the world we are
confronted with the same chart (Table 4). In the end of the interview with Istanbul Chamber
of Industry, a finding of impact assessment after all of the types of education organized is
reached. After the impact assessment , the findings show that transition to learning level is
fifty percent less. It is concluded that the third level (job application) is rarely a matter and
no data are reached in the fifth level application.
In essence, it is natural that chain of impact process works in this manner. Hence, each stage
of chain of impact process, although carries on complementing one another, adds some cost.
In this respect, the calculation of the return of informal education is a concern of academics
rather that firms. To conclude, the calculation of investment return seems to remain as an
academic activity-area for some more time to come. By means of some research, it is proved
that this return is at quite a high level. (McLinden, Davis, Sheriff, 1994:140).
Life-long education in particular is a concept which covers formal, non-formal as well as
informal education within its scope. By concept, it is indicated that rather informal education
is emphasized. In accordance with the law no. 5544 issued in 2006, Vocational Qualification
Authority is established. The aim of this institution is to determine the fundamentals of
competence in national technical and vocational areas by taking national and international
occupational standarts as a base, and to establish and administer the national competence
system necessary to implement assessment and evaluation, and to inform and certify related
activities. The professions that require minimum bachelor’s degree are excluded by this law
(Law No.5544, article. 1).

2 Istanbul Chamber of Industry Expert Hakan Çoban is interviewed. We are obliged to extend our
thanks to Hakan Çoban, Expert and to İSO, the biggest chamber of Industry in Turkey for the
invaluable information given on informal education.
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

One of the most important functions of Vocational Qualification Authority(Professional
Competency Board) is to award professional competence certificate. Definitions of all
existing professions, standards of duty, operation and success, competence related to the
instruments used, knowledge and skills requirements, manner and behavior requirements and
finally assessment and evaluation criteria are presented in detail. Although completing these
impressive studies in a short time is difficult, its progress is known to be rapid. Professional
competence certificate is awarded to the labourers who could achieve these standarts. All of
these are formed within the framework of national competency. The congruence of National
competencies to European Qualifications Framework (AYÇ) still continues. European
Qualifications Framework is made up of 8 stages and certification is awarded by these stages.
These certifications mean legalizing informal and non-formal education.
Via the life-long learning process, a rough calculation is made for an individual who goes
through all stages of formal education and is included in the nonformal education regularly
every year and is found that the time spent for formal and nonformal education remains 15%
and 85% of the time is spent in informal education (Borat, 2009:12). Endeavours for the
extention and legalization of this sort of education of no-cost to the public result in
noteworthy developments.
5.CONCLUSION
Although the interdependence of productivity-education is subject to debate, the impact of
education on productivity is an undeniable reality. In Turkey, formal education has multidimentional structural problems. Problems concerning vocational education constitute one of
the central problems of formal education. The rate of vocational education is comperatively
lower. Apprenticeship application is inadequate quantitavely and is undetermined
qualitatively.
Within the scope of non-formal education, apprenticeship education and a lot of certificate
awarding educational activities are conducted. Apprenticeship education is the most
effectively administered area of on-the-job training, which is the best way of learning. Yet, it
has been aimed at a comperatively restricted area and a comperatively restricted amount of
people. İş-Kur, The Turkish Employment Organization, increased its efficiency by using
unemployment insurance fund, which produced significant outcomes for nonformal
education. The project of Specialized Vocational Course Centers, UMEM, and on-the-job
training practices are recognized as extremely successful projects.
Informal education in the World, as well as in Turkey, is widespread. As the effort to
overcome the shortages of knowledge, skills and attitude of employees in informal education
outweigh, it has to be emphasized that these kinds of education are more attached to
productivity. The establishment of Professional Competency Board (Vocational Qualification
Authority) and the acceptance of European Qualifications Framework is an important
development at the point where the knowledge and skills learned for informal education are
officially acknowledged.
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27

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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

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Performance Based Payment (PBP) in University Hospitals
Vahit Yiğit1, Ramazan Erdem2, Mehmet Dinç3
1Süleyman Demirel University, Isparta Vocational School , Health Management, Isparta
2Süleyman Demirel University, The Faculty of Economics and Adm. Sciences –Health
Management, ,Isparta,
3Süleyman Demirel University, Isparta Vocational School , Isparta
E-mails: yigitv@hotmail.com, vahityigit@sdu.edu.tr, ramazanerdem@sdu.edu.tr,
mehmetdinc@sdu.edu.tr
Abstract
The objective of this study is to evaluate the impact of the performance-based payment
system in university hospital and to determine the potential problems with their solutions. The
29

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                <text>The objective of this study is to evaluate the impact of the performance-based payment  system in university hospital and to determine the potential problems with their solutions. The research was carried out at university hospitals in Turkey. In this research, qualitative research  method was used. The content of the survey data, qualitative research method, which is the  most commonly used technique, has been obtained by interview technique. The results of the  analysis has revealed that advantages of this system include; effective and efficient  management of resources, a accessibility to healthcare services, increased patient satisfaction,  ease of patients’ to reach healthcare services, more accurate and correct medical records. The  disadvantages of this system are as follows: left the job of specialist physicians, prohibition of  private health care work of specialist physicians, be a source of conflict among the staff,  misallocation and wasteful expenditure of resources, unnecessary tests, admissions,  interventions, increased unethical behaviors, decrease in the will to work and co operate with  co-workers.  Keywords: Health Policy and Management, Performance, Payment, Motivation, Hospital</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

The Relationship of Destination Image with the Principle of Sustainable Tourism: A Case
of Alanya
Unguren Engin1 ,Yetkin Murat1, Mut Mustafa2, Kuntbilek,Kerime3
1Akdeniz University, Alanya, Turkey,
2Alanya Chamber Of Commerce And Industry,
3Baskent University Alanya Hospital,
E-mails: enginunguren@akdeniz.edu.tr, mourhorse@gmail.com,
altso@altso.org.tr,kerimek@hotmail.com
Abstract
The purpose of this paper is to monitor how the destination image of Alanya is perceived by
tourists as well as by local people and to examine the relationship of the findings with the
principles of sustainable tourism. Alanya is one of the most mature touristic destination in Turkey
and although it is relatively small district with a population of 250.000 people, hosts 6,5 % of the
total foreign arrivals of Turkey which is over 31 Million in 2011. Particularly, the priority of the
economic dimension of sustainability of a destination like Alanya, heavily dependent on tourism,
is continuity rather than growth. This paper aims to contribute to tourism literature since there is
no past research to measure destination image of Alanya has been conducted.
Keywords: Sustainable tourism, destination image, Alanya, sustainable development,
sustainability.
1. INTRODUCTION
Tourism is one of the fastest growing sectors in the global economy considering especially last
two decades. The major difference of tourism compared to other sectors is that tourism has been
steadily growing regardless to general economic conditions with the exception of periods of
security crisis and natural disasters. Therefore, although the economic crisis which started in
2008 particularly in EU and USA and its effects still continue, the international tourist arrivals
and tourism receipts of Turkey have shown uninterrupted growth. Countries and even different
destinations of the same country are in a severe competition in order to take a bigger share from
920 billion USD tourism expenditures worldwide realized in 2010. Destination image, quality,
perceived value and the level of satisfaction of the expectations are gaining importance in the
competition. Number of academic studies on tourism have also been increasing in line with these
developments and as conclusion the conceptualization of sustainable tourism, destination,
carrying capacity, destination life cycle have been added into the tourism literature.

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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

2. ALANYA AS A TOURISM DESTINATION
Alanya is a resort in Antalya, and it’s situated in the 135 km east coast of Antalya Gulf on the
Anatolian Peninsula. Apart from the beach and the sea, there are a number of caves of interest to
visitors. Following the arrivals of Germans in the late 1950s, Alanya met with tourism (Aktas et
al., 2007). Today, Alanya has become one of the most important tourism destinations of Turkey
with its 6.5% share in total, approximately 150.000 beds in 668 hotels and annual tourism
receipts exceeding $1 billion in 2009. Moreover, there is a steady increase in tourist number of
Alanya, Antalya and Turkey, except 2006 and 2009. Due to global crisis, Antalya met with a
decrease of 3,55% in tourist numbers.
At present, Germans, Russians, Dutch, Swedish and Ukranian are some of the largest groups
visited Antalya and Alanya. Contrary to Germans, there is a steady increase in the number of
Russians visiting Antalya and Alanya for last five years (Doğan et al., 2010; Directorate of
Antalya Culture and Tourism, 2009; Economics Report of Alanya Chamber of Commerce and
Industry, 2008). Moreover, some tourists from different countries have bought real estate, after
that, get residence permits in the Alanya. Therefore, Alanya is one of the famous destinations for
the European tourists.
3. DESTINATION IMAGE AND SUSTANAIBLE TOURISM
By simplest saying, destination image concept is the individual’s cognitive / perceptual and
affective evaluation of a place positively or negatively. (Baloglu and McClearly, 1999). As
commonly agreed, psychological factors, such as values, motivations, personality, demographic
factors and stimulus factors such as organic and induced information sources and previous
experience influence the image formation. Destination image is not only the key factor in previsit destination selection process but also influence after-visit tourist behavior like
recommending the place or willingness to revisit.
Sustainable tourism contains three main principles of its parental concept; sustainable
development that affects mechanism of global economy and changes behavioral forms, customs
and perceptions of individuals since worldwide awareness of the concept has grew by the report
called ‘’Our Common Future’’ prepared by WCED and released in 1987. These principles can be
summarized as the planning and realization of economic development can only be achieved by
taking environmental and socio-cultural factors into account dynamically. However, some
important differences especially in priorities may arise between sustainable tourism and
sustainable development. Particularly, the priority of the economic dimension of sustainability of
a destination like Alanya, heavily dependent on tourism, is continuity rather than growth.
4. RESEARCH METHODOLOGY
The purpose of this paper is to monitor how the destination image of Alanya is perceived by
tourists as well as by local people and to examine the relationship of the findings with the
principles of sustainable tourism. In this study, the image of Alanya has been analyzed from the
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point of view of local people and examined the relationship between sustainable tourism and the
image of Alanya. In this study, the pilot survey results are given which is done on the local
communities. This study is going to continue on both local residents and tourists until end of the
year. This paper aims to contribute to tourism literature since there is no past research to measure
destination image of Alanya has been conducted and also to determine the conjunction of
destination image perceived both locals and tourists. The importance of the latest is that, as the
perceived image is the identity of a brand, the finding may play a key role as a component of a
sustainable marketing mix by destination marketers.
Following to literature review, it was decided to apply a structured and unstructured survey in the
pilot test since the destination image consists of two main component which are attribute based
and holistic. The data were collected through a questionnaire designed by the authors (Ilban,
2007; Cakici ve Aksu, 2007; Guzel, 2007;) and 40 questionnaires were answered in the face to
face survey. The data analysis utilizes the 40 usable surveys from the study. Demographic survey
part of the questionnaire is composed of 6 variables. On the second part of the questionnaire,
there are 33 variables to measure the destination image of Alanya. And finally one unstructured
questions were asked. The instrument consisted of the perceptions of image of Alanya questions
answered on a 1-5 likert scales labeled “strongly disagree” (1) and “strongly agree” (5). SPSS
16.0 was used for statistical analysis. Frequency and percentage analyzes were used. In order to
determine the the dimensions of image of a destination, the data, has been applied factor analysis
(Principal Component Analysis).
5. RESEARCH FINDINGS
60 questionnaires were analyzed with using SPSS program. Table 1 presents characteristics of the
sample. Among 60 respondents, 28,3% were Female, 71,7% were male. The participants were
examined according to marital status and almost equal distribution (% 53,3 married, % 46,7
single) is observed. As to the monthly regular income, the majority of respondents is clustered in
the second group which may be considered poor living standards. Education level of pilot test
respondents are mainly high school and university (51% and 31,7 % in a row). The relation of
their employment with the tourism is distrusted equally as directly related to tourism sectors 33
%, indirectly related to tourism is 31.7 % and not related at all is 35 %.
Table 1: Demographic Findings

114

Gender

n

%

Marital Status

n

%

Female

17

28,3

Maried

32

53,3

Male

43

71,7

Single

28

46,7

Total

60

100,0

Total

60

100,0

Age

n

%

Education

n

%

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

18-25 years

11

18,3

Primary education

7

11,7

26-32 years

18

30,0

High school

31

51,7

33-40 years

20

33,3

University

19

31,7

41 years and over

11

18,3

Master’s Degree

3

5,0

Income

n

%

Status of working in the tourism sector

n

%

Minimum wage

14

23,3

To direct

20

33,3

751-1500 TL

24

40,0

To indirectly

19

31,7

1501-2500 TL

17

28,3

Diffrent sectors

21

35,0

2501 TL and over

5

8,3

Unstructured part of the survey is to define Alanya with 3 words. Alanya is most identified with
the sea, tourism and sun by participants. 3S (sea, sand and sun) constitute the basic components
of mass tourism. In this context, it could be said that natural attributes is the mainstream of
tourism in Alanya.
Table 2: Mentioned in Alanya comes first thing to mind

115

Statements

N

%

Sea

17

28,3

Tourism

12

20,0

Sun

8

13,3

Antalya Castle

4

6,7

Banana

3

5,0

Natural Beauties

2

3,3

Entertainment

2

3,3

History

2

3,3

Other

10

16,8

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

According to vast majority of respondents, Alanya has developed through tourism as indicated in
table 3. On the hand, 43,4 % of respondents has no idea or disagree that the total income
generated through tourism is fairly distributed in the society. According to sustainable tourism
principles, tourism income shall serve to develop totally the welfare of the host people. Another
missing point from sustainability point of view is the consideration of society and all stakeholders
while realization of tourism planning. 50 % of respondents (30 % disagree and 30% no idea)
indicates that only a part of the stakeholders define the planning of tourism activities and the
concerns and ideas of the others are not taken into account. On the other hand, 60% of
participants responded as tourists are satisfied and their expectations from Alanya visit are
fulfilled. This finding is also in line with another survey conducted in 2010 (Doğan vd. 2010)
that indicates 62 % of German and 35% of Russian tourists have visited Alanya more than one
time for touristic purposes. Participants of the survey believe that tourists who visit to Alanya
belong to low income group and the total expenditure realized by tourists is low compared to
what is offered.
Table 3: Reflections of Tourism Phenomenon to Alanya: From the point of view of Local People
Disagree

Undecided

Agree

Statements

n

%

n

%

n

%

1. Alanya has developed through tourism.

2

3,3

2

3,3

56

93,4

2. The revenue of all segments of the population has increased through
tourism.

22

36,7

4

6,7

34

56,6

3. Alanya meets holiday expectations of tourists.

15

25,0

9

15,0

36

60,0

4. Tourists are satisfied with their destination choice.

12

20,0

12

20,0

36

60,0

5. Spending of tourists which come to Alanya is high..

36

60,0

11

18,3

13

21,7

6. High income earning tourists come to Alanya.

40

66,7

12

20,0

8

13,3

7. The tourism strategies is generated by taking ideas of all stakeholders
into account.

30

50,0

12

20,0

18

30,0

8. Alanya reflects its cultural characteristics on the tourism

19

31,7

14

23,3

27

45,0

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In order to determine the the dimensions of image of a destination, the data, has been applied
factor analysis (Principal Component Analysis). Thus, the data reduction was provided. The
principle component analysis was performed to identify the dimention of destination. The 25
destination image statements were subjected to factor analyzed with varimax rotation. It has been
decided that factor analysis is interpreted by looking of KMO and Bartlett's test results. The
minimum item loading of 0,35 was selected to interpret variables considered significant. After
the application of factor analysis, six factors was identified. These factors were named as follows.
Tourist Facilities and Infrastructure (Factor 1), Natural Environment and Its Protection (Factor 2),
Destination Identity (Factor 3), Local People (Factor 4), Social and Physical Security (Factor 5)
and Cultural Enrichment (Factor 6).

Table 4: Dimensions/Attributes Determining the Perceived Destination Image
Factors

Disagree

Undecided

n

%

n

%

n

%

Accommodation facilites of Alanya are sufficient.

5

8,3

8

13,3

47

78,3

There are a variety and quality entertainment facilities in Alanya.

8

13,3

11

18,3

41

68,3

Transportation facilities within the city of Alanya is sufficient.

11

18,3

10

16,7

39

65,0

Alanya has a rich and quality leisure facilities.

10

16,7

13

21,7

37

61,7

Shopping facilities of Alanya is sufficient.

17

28,3

10

16,7

33

55,0

Infrastructure of Alanya is sufficient.

18

30,0

17

28,3

25

41,7

n

%

n

%

n

%

Alanya has an unexcelled natural beauty.

7

11,7

7

11,7

46

76,7

The environment of Alanya is orderly, clean and hygienic.

12

20,0

14

23,3

34

56,7

In Alanya, Sea and beaches are well protected

29

48,3

10

16,7

21

35,0

In Alanya, natural environment is protected in a good way.

26

43,3

14

23,3

20

33,3

Alanya has a pristine and original nature.

33

55,0

9

15,0

18

30,0

n

%

n

%

n

%

Vacation in Alanya is relaxing

7

11,7

9

15,0

44

73,3

Alanya is a global brand in tourism.

14

23,3

8

13,3

38

63,3

Alanya is a cheap region

16

26,7

14

23,3

30

50,0

Tourist Facilities and Infrastructure

Natural Environment and Its Protection

Destination Identity

117

Agree

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Tourism in Alanya is well planned.

24

40,0

16

26,7

20

33,3

n

%

n

%

n

%

Locals of Alanya are helpful and hospitable

12

20,0

13

21,7

35

58,3

Locals welcome tourists in good manner.

12

20,0

14

23,3

34

56,7

Alanya has well educated and skilled population.

24

40,0

13

21,7

23

38,3

n

%

n

%

n

%

Alanya is a safe town.

6

10,0

13

21,7

41

68,3

Shops in Alanya are trustful and offers good quality products

22

36,7

16

26,7

22

36,7

Tradespeople of Alanya are customer oriented

24

40,0

18

30,0

18

30,0

Cultural Enrichment

n

%

n

%

n

%

Alanya offers historical and cultural attractiveness.

5

8,3

6

10,0

49

81,7

Alanya has a wide variety of local food and beverage

12

20,0

11

18,3

37

61,7

Local People

Social and Physical Security

The determinants of destination image is surveyed by having categorized in six dimensions.
According to the findings indicated in table 4, majority of participants believe that
accommodation and entertainment facilities are sufficient in Alanya. The local transportation is
also found satisfactory although general infrastructure is not considered sufficient. Shopping
facilities is one of the weakest point in the tourist facilities and infrastructure dimension. As the
confirmation of the unstructured part of the survey, participants believe that Alanya has a natural
beauty but this is not well protected. The locals perceive Alanya as a clean place as well as
relaxing place but the problem in tourism planning subject is re-confirmed by the participants.
Although it is agreed by 58,3 %, we may consider this number low in a touristic destination.
Another threat to sustainable tourism is the lack of educated and skilled population.
6. CONCLUSION
The early findings indicate that, the core elements of tourism in Alanya which are sea and
beaches must be well preserved and further plans and politics of tourism shall focus on this issue
rather than expansion. Shopping facilities, quality of products in the shops and manners of
retailers shall also improve. Perceived manners of local people towards tourista are not in line
with the past researches, it may be caused of the participants are from low income group and does
not benefit from tourism so this point shall be re-measured.

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REFERENCES
Aktas, A., Cevirgen, A, and Toker, B. (2009), “Assessing Holiday Satisfaction of German and
Russian Tourists Visiting Alanya”, Tourism and Hospitality Management 15 (1): 1-12.
Baloglu, S., McClearly K. (1999), “Model of Destination Image Formation” Annals of Tourism
Research, Vol. 26, No. 4, pp. 868-897.
Cakici, A. C. and Aksu, M. (2007). “Investigating Group Influence on Destination Choice: a
Study on Domestic Visitors” (In Turkish), Anatolia: Journal of Tourism Research, 18(2), pp.183194.
Directorate of Antalya Culture and Tourism (2009) Retrieved from http://www.kultur.gov.tr/ on
March 23, 2011.
Doğan, H., Barutçu, S., Üngüren, E. (2010) “Russian and German Tourist Potential and
Satisfaction in Sustainable Competitive Advantage of Alanya Destination”, 6th International
Strategic Management Conference, Proceeding, July 8-10, St-Petersburg, Russian Federation,
997-1006.
Economics Report of Alanya Chamber of Commerce and Industry (2008) Retrieved from
http://www.altso.org.tr on March 23, 2011
Guzel, F.O. (2007). “The Role Of Professional Tourist Guides On Developing The Image Of
Turkey (A Study On German Tourists)”, Master Thesis, (In Turkish), Tourism Management and
Hotel Hospitality Department, Balıkesir.
Ilban, M.O. (2007). “Brand Image In Destination Marketing And Study On Travel Agents”,
Ph.D. Thesis (In Turkish), Tourism and Hotel Management Department, Balıkesir.

The Role Of Tourism In Regional Development
Oğuztürk Bekir Sami1, Şeker Hilal2, Ertan Adnan1
1Suleyman Demirel University, Faculty of Economic and Administrative Sciences
2Vocational School of Amasya University.
E-mails: bekiroguzturk@sdu.edu.tr ,hilalyanik05hotmail.com ,adnanertan@sdu.edu.tr
Abstract
Along with the acceleration of the globalization phenomenon, the level of development among
the countries has been showing substantial differences. Developed countries have performed their
development levels because they have a number of economic advantages and they have slightly
minimized the imbalance between the regions. One of the most important problems of developing
countries involves the development and underdevelopment. One of the ways to cope with this
problem is to identify the priority sector for development of these countries. Performing the
119

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                <text>The purpose of this paper is to monitor how the destination image of Alanya is perceived by  tourists as well as by local people and to examine the relationship of the findings with the  principles of sustainable tourism. Alanya is one of the most mature touristic destination in Turkey  and although it is relatively small district with a population of 250.000 people, hosts 6,5 % of the  total foreign arrivals of Turkey which is over 31 Million in 2011. Particularly, the priority of the  economic dimension of sustainability of a destination like Alanya, heavily dependent on tourism,  is continuity rather than growth. This paper aims to contribute to tourism literature since there is  no past research to measure destination image of Alanya has been conducted.  Keywords: Sustainable tourism, destination image, Alanya, sustainable development,  sustainability.</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

US Government. (1993). Reengineering through information technology”, Accompanying
Report of the National Performance Review, Office of the Vice President, September,
available at: http://govinfo.library.unt.edu/npr/library/reports/it.html.
Velibeyoğlu, K. (2004). Bilgi Teknolojileri destekli kentsel gelisme stratejileri. Yapi ve
Kentte Bilisim, Ankara
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e-government.

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benefits and barriers of e-government knowledge sharing. Journal of Enterprise Information
Management

An Assessment on Evolution of Regional Development Concept
Ulu Emriye1, Kiymalioğlu S. Umit2
1Akdeniz University Alanya Business Faculty, Alanya, Turkey
2Akdeniz Univesity Faculty of Economics and Administrative Sciences, Antalya, Turkey
E – mails: emriyeulu@akdeniz.edu.tr, umitk@akdeniz.edu.tr
Abstract
Associating the terms, knowledge, innovation and learning, with development is not a
new process. The innovation as the primary source of competitive advantage in capitalist
economies had been postulated firstly in Marx and Schumpeter’s ideas. But in parallel with
evolution process of development theories and studies, addressing the concepts on regional
level and within the framework of sustainability is a new process. It is seen apparently that
interest in “region” concept has a considerable place in development studies from the early
1990s. Now regions are seen as opened identitites and are exposured to the effects of
international competition directly. Right at this point, the development efforts of lagging
regions by “cut and copy” transfer practice of the development models and policy
instruments of advanced regions have lost their meanings. Prior development models which
used to focus on physical infrastructure and capital endowment have been replaced with
internal models emphasizing the accumulation of intellectual capital and intangible assets.
Key source of competitive advantage is defined as the capacities of regions to support
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learning and innovation processes. To achieve and sustain the competitive development on
regional level, such models and instruments are required that, they will consider the unique
features and differences of regions, built on the peculiarities of different regions, , not general
but customized and bottom up participatory, have ability to constitute exploitable advantages.
In accordance with the saying, “think globally, act locally”; the concept of sustainability
also shifted from its global understanding to such an understanding which is fed from local
and regional applications.When a region starts to develop, region’s sustainability must be
examined. An ecological deficit which may emerge, should also affect the neighbour
developed regions inevitably. So regional development should not be thought independent
from sustainability. At this point, two concepts come to the scene; “regional sustainable
development” and “sustainable regional development”. The difference is that, for “regional
sustainable development” enviromental objectives and targets are in the forefront, while
economic goals have priority in “sustainable regional development”. But in the second one,
to maintain the sustainability of regional development, some enviromental precautions and
policies are considered too.
This study aims to offer critics of recent studies and provide some inferences to possible
directions for further research by examining the studies, particularly the ones which
reconsider the innovation, knowledge and regional development relation in framework of
sustainability. In the study, firstly the conditions will be underlined which led the emergence
of “the new regional development approach”, focusing on the local dynamics as driving
forces of regional development. And then, in relation to evolving debates about sustainability
and regional development, the forefront concepts- like “learning regions”, “innovative
milieux”, regional networks- will be held within its intellectual context and clarified how they
are situated and conceptualized in empirical studies. In this context, new development models
and the internal drivers of regional development should be revealed. And finally the reached
findings will be examined in terms of common goals for sustainable development and some
inferences for further research will be offered.
Keywords: sustainable development, innovation, knowledge, regional development,
development models, new regional development approach, sustainability.
1.INTRODUCTION
Prior development models which used to focus on physical infrastructure and capital
endowment have been replaced with internal models emphasizing the accumulation of
intellectual capital and intangible assets. Key source of competitive advantage is defined as
the capacities of regions to support learning and innovation processes. To achieve and sustain
the competitive development on regional level, such models and instruments are required
that, they will consider the unique features and differences of regions, built on the
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peculiarities of different regions, , not general but customized and bottom up participatory,
have ability to constitute exploitable advantages.
This study aims to offer critics of recent studies and provide some inferences to possible
directions for further research by examining the studies, particularly the ones which
reconsider the innovation, knowledge and regional development relation in framework of
sustainability. In the study, firstly the conditions will be underlined by taking a look at the
theoretical background which led the emergence of “the new regional development
approach”. And then, in relation to evolving debates about sustainability and regional
development, the essential concepts of development will be held within in regional
development studies. In this context, new development models and the internal drivers of
regional development should be revealed. And finally the reached findings will be examined
in terms of common goals for sustainable development and some inferences for further
research will be offered.
2. Theoretical Background of Development
The interest to development subject has increased just after the II.World War. The first
reason is the desire for international trade and capital flow revival. And the second reason is
the efforts of countries, which acquired political independence newly, to acquire
independence also from economic aspects. For these countries, national liberation is almost
identified with economic development. Before exploring “new development theories”, it
should be more proper to take a look at the former approaches.
Traditional Development Economics Approach(1950 and 1960s), focusing on national
development, states that countries follow a linear development path and underdevelopment is
a transient phase. According to Rostow, each country should experience the same historical
process inevitably. This approach seeks for the reasons of underdevelopment in internal
structures of countries; like gaps in savings, investment or lack of market size.
According to Structuralist Approach, the key factor of development is capital
accumulation. The inadequacy of capital accumulation is a result of the lack of market size
and other structural problems. To solve the market size problem, international trade should be
seen as a preference. Singer, one of the pioneers of structuralist approach, states that
international trade and foreign investments are not for the benefit of underdeveloped
countries but they constitute obstacles to development. The structuralists, suggested
following a planned import-substitution strategy to support the development efforts and to
protect import-substitutive sectors. But the experiences showed that these implementations
had increased the dependency of underdeveloped countries to imports. The importsubstitutive sectors which benefit from protection facilities had developed against to export
sectors. The import-substitution policies, suggesting the protection of the country’s economy
as a whole, bogged down in many parts of the world and largely abandoned in the early
1980s.
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Traditional development approach, which correlates development to internal factors
couldn’t solve the underdevelopment problems. By the 1960s, other approaches which
correlate development to external factors, rather than internal ones, took their place on
development literature. Dependency theory is the most comprehensive between them. They
connected the underdevelopment directly to the dependency relations with Western countries.
The new developments and the dynamics of World Economy necessitated the
development subject to be handled from different and new perspectives due to the failure of
traditional old development approaches. Thus, New Development Approaches(NDA) have
been proposed: Neo-Liberal Approach, Endogenous Growth, Human-Centered Development,
Egalitarian Approach, Basic Needs Approach, Veblen-Ayres Theory and Sustainable
Development Approach can be counted under NDA(Doğan,2010).
Neo-liberal Development Approaches(early 1980s), claimed that for the problems of
underdeveloped countries there is no need for a new economic approach aside the
neoclassical economics. They take “market” as fundamental variable and see the
interventions of governments as obstacles to development. Governments should reduce these
interventions and make privatizations. As well as, they should implement the structural
adjustment programs to keep pace with globalization. Unlike the former development
literature, this approach offers common solutions for all the countries(Dolun,2006). This
approach exclude all the phenomena placed outside the commodity economy and take human
only by its economic dimension (Partant, 2002). By neo-liberal approaches, government
interventions are replaced by new issues like: technological improvement, specialization,
knowledge and scale economies. With neo-liberal approaches, dynamic optimization models
have been replaced of traditional development models(Saxonhouse,1988). It’s seen that the
implementation of policies based on these approaches by the early 1990s, increased the gap
between developed and underdeveloped countries and the predictions of convergence theory
didn’t happen.
Endogenous Growth Approaches, brought a new perspective in terms of source of
economic development. Differently from neo-liberal approaches, they don’t take the
economic growth as a result of external drivers but a result of economic system’s internal
drivers(Romer, 1994). Knowledge, human capital and technological progress are internalized,
like labor and capital, by this approach. Endogenous growth theories put the technological
issues to the center of the analysis and focus on the dimensions like learning by doing,
external economies, and accumulation of human capital. They reject the convergence theory
and embrace the divergence theory. The biggest lack of these approaches is that, they don’t
include topics like societies’ institutional features and social differences. They depend on a
lot of neoclassical assumptions, inappropriate for underdeveloped countries. Therefore, the
implementation of endogenous growth approaches to development area remains restricted.
Human-centered Development Approaches: They criticize traditional approaches as they
transformed the concept of development into a commodity-based definition; devoid from
human variables and differentiating from emancipatory content (Ingham, 1993).
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Development is associated with life and so must focus on living standards. Development is
such a process that; beside economic growth blessings of this growth is distributed evenly,
during growth rather than destroying environment it is renewed, human choices are increased
and opportunities for participation of people in decisions that affect their lives are also
increased. From this perspective development, neither can be reduced to technological
problems nor restricted with economic growth (Kelleber, 1993).
Egalitarian Development Approach, argued that ensuring the equitable distribution of
income is of great importance as well as increase in income. Almost one quarter of world
population lives in absolute poverty. Beside this, the richest %20 of world population gets the
%80 of world revenue. Negative developments in terms of income distribution created by
neo-liberal policies implemented in recent years, necessitated the development concept to be
addressed in the context of equity.
The understanding behind Basic Needs Approach this approach is that, ensuring directly
the basic needs; such as health, education, nutrition, housing, lead to a reduction in absolute
poverty more quickly than alternative strategies. Increasing the income and productivity of
poor’s is linked to obtainment of their basic needs firstly. Putting basic needs approach into
practice, which has brought a new perspective to development concept, is nearly impossible.
The approach focuses on the social needs covering the poor majority, not on the individual
needs.
Sustainable Development represents transition to environmentally compatible growth
from growth against to environment. Traditional development approaches assume that natural
source supply and the transformation possibility of them to products during production
process is infinite. So they neglect the long-term negative affects of production on natural
environment. The commodification of nature in frame of capitalist production logic led
nature destruction. Sustainable development aims to prevent consumption of sources faster
than renewal rate of them.
3. Essential Concepts (Innovation, Knowledge,
Competitiveness) and Sustainable Regional Development

Sustainability,

Regional

Following the II.World War, after the development policies started to be implemented, it
had been seen that economic and social activities were clustering around a natural center in
every country. This increased the polarity between regions and led to big imbalances. Thus
the economic and social cost of development had increased and it had been understood that
the development plans should give an extra special importance to the regions of the country.
Otherwise these issues would continue to create obstacles against nation’s development.
After this, “development” and “region” concepts were inevitably thought together. But still
the issue had been handled at national level and the dominant approaches were Traditional
Development Approaches summarized above. In early policies and studies, development was
used to be taken at the level of national economy policies. It was believed that, eliminating
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the development differences between the regions of a country was the best solution for
succeeding the national development. The way of ensuring the convergence of the lagging
regions to advanced regions was seen as the same. Lagging regions should follow and imitate
the advanced ones and so the differences between regions should be minimized. Thus
governments started to provide financial incentives to the lagging regions for catching the
advanced ones.
By 1990’s, a big transition occurred in terms of development approaches. With increasing
globalization of production and finance, the meaning of the term “region” also has started to
change. Regions started to be seen as opened economic entities which exposure to the
international competition directly. This has changed the attention focus from national-level to
regional-level intervention if regions are to be able to shape their own development prospects
in a climate of rapid technological change and increased capital mobility. A new approach
has been adopted, focusing to increase competitiveness of all regions by taking privileges,
needs and strong features of each region. Achieving the structural adaptation of regions to
globalization became one of the fundamental problems of today’s policy makers. Also, taking
competitiveness as a goal which should be reached by short term instruments is abandoned by
time. The newest understanding in regional development area is, sustaining the
competitiveness of regions in such a competitive world. This requires taking the subject in a
dynamic perspective. As a result of increasing globalization of World, both consumers and
producers are looking for differentiated products. This transformation requires abandoning
traditional regional development policies, which used to take regions as if they were
homogenous identities. Prior development models have been replaced with internal models
emphasizing the accumulation of intellectual capital and intangible assets. Key source of
competitive advantage is defined as the capacities of regions to support learning and
innovation processes. To achieve and sustain the competitive development on regional level,
such models and instruments are required that, they will consider the unique features and
differences of regions, built on the peculiarities of different regions, not general but
customized and bottom up participatory, have ability to constitute exploitable advantages.
The new economic growth models are interested in dynamic factors like; human capital,
innovation, knowledge and entrepreneurship. For achievement of regional sustainable
development, innovation and innovation capacity are seen as essential factors. (Ionescu,2011)
Innovation is the transformation of an idea into a marketable product or service, a new or
improved manufacturing or distribution process. Innovation and knowledge are fundamental
to the economic development, growth and future competitiveness of regions. Knowledge is
embodied in people and innovation is recombining of existing knowledge into new processes.
Today’s society is dominated by modern information flows and communication technologies.
The concept of knowledge, at the heart of the regional debate during the nineties, was
also influential in constructing some relevant elements of the political discourse at the
national as well at the supra-national level. Public statements like the EU’s ‘Lisbon Strategy’
or the Territorial Agenda of the European Union (2007) reflect the idea that regional and
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national prosperity depends more and more on the rate of knowledge embodied in economic
and social
systems(Segre, 2011; p.2).
Ionescu(2011), aims to create a base of analysis for systems’ parameters’ evaluation , the
territorial dimension of these systems and the role of the institutions inside the regional
innovation, learning and development partnership. According to Ionescu(2011); the
preceding studies on this subject failed to offer the territorial dimension of innovation,
learning and development, the important role of institutions in defining and implementing the
specific regional systems. The approaches to the issue can be classified into two; as analytical
approach and theoretical scientific approach. Analytical approaches generate the empirical
base of the regional innovation, learning and development policies. The scientific approach
analyses and systematizes the most important ideas and argues of the researches in the
regional innovation, learning and development regional systems, to realize a scientific base
for a pertinent analysis. Ionescu(2011); bands two approaches together and goes through with
a new model connected to continuous learning policies, “creative industries” and the regional
development.
From a dynamic and systemic perspective, human resources become crucial in setting up
the region’s innovative capacity (Ho, 2004). Following various currents in the literature,
Ferreira(2011) strives to take Regional Innovation System(RIS) analysis a little further by
adopting an eclectic approach. Ferreira et al. built in an innovation function that links the
ideas promoted by Muller(2009) with regard to the first contribution of Knowledge Intensive
Business Services(KIBS) to regional innovation systems with the notions of entrepreneurship
capital developed by Audretsch(2004) and Acs(2004) and with a helps transform knowledge
spillovers into real economic opportunities is very important for RIS and, simultaneously,
carries a social dimension that is essential when studying a systemic reality. Their results
seem broadly robust and imply that the majority of factors considered contribute to the
regional innovative performance as proxied by a variable that unites patenting and trade
marking. From their results, they point out that the KIBS sector seems to be essential and as
expected, human capital plays a central role in fostering innovation as does regional
technological endowment. They state that data unavailability prevented them from computing
the importance of R&amp;D efforts and R&amp;D personnel, thus their results showed only a weak but
positive role for universities. Nevertheless, they expect to investigate this and other missing
aspects.
Janschitz(2010) adapted Neuro-Linguistic Programming(NLP), an approach to
communication, personal development, and psychotherapy created in the 1970, to regional
development in two ways. The concepts, like learning regions, creative milieus, network
approaches, transdisciplinary case studies are not tackling question of regional identities and
values. Therefore, Janschitz(2010) developed a concept on the basis of a common set of
values and beliefs, which is directing the endogenous, self-organizing and self-sustaining
development measures/actions to achieve value-led results. The introduction of two social
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theory approaches, adapted from NLP, namely “the concept of logical levels” and “the
concept of regional modeling” will result in a value-led and participatory regional
development (Janschitz,2010)
Regional modeling is the result of regional benchmarking and the process of transferring
best-practice cases of successful regions (model region) at different logical levels to a
modeling region. Regional modeling, using the value-led logics of sustainability consists of
different modeling processes to cope with the social, economic, ecological, and institutional
opportunities and challenges of a region. It is clear that this approach is neither a fast nor an
easy option for regional development. It probably needs years of consequent work to achieve
sustainable success and guarantee adaptation, and successful change in regions. But this is the
best approach for applied scientists and regional development actors, who follow the
paradigm of a respectful, human oriented, value based, transdisciplinary research, and who
see regional development no longer as a discipline of “analyzing, constructing and optimizing
a spatial order”, but include the involvement of concerned people in order to attain logical
hierarchy based and value-led results as a response to global challenges. (Janschitz,2010).
Characterizing innovation as a social, non-linear and interactive learning process raises
the question of the role of socio-cultural structures in innovation processes. The socioinstitutional environment where innovations emerge plays an essential role in successful
innovation processes. From a regional point of view, innovation is often understood as a
locally embedded process that takes place within the regional innovation system.The locally
embedded process is formed of heterogeneous groups of different kinds of actors including
representatives of firms, universities, technology centers and development organizations. It is
regionally crucial to increase the capacity of these institutions enhancing regional innovative
capability (Harmaakorpi, 2003)
Regional competitiveness leading to regional success and wellbeing can be measured in
many ways. However, when assessing sustainable regional competitiveness one indicator
rises above the others: productivity. As Krugman(1994) referring to competitiveness and
economic growth puts it “productivity isn’t everything, but in the long run it is almost
everything”. Porter(1998) comes to the same conclusion in his studies concerning the
national level. He determines productivity and innovativeness to be the essential sources of
competitiveness regardless of the assessed geographical entity.
Harmaakorpi(2003), strongly suggests that using the regional level is reasonable in
assessing economic success and questions related to economic development policy. Regional
success is based on the region’s ability to create new paths based on its assets under the rules
of the new techno-economic paradigm. The paths can be very different in nature and no
patent regional recipes can be given. These features being abstract make it hard to measure
them statistically in many cases. However, some resources needed that set the foundation for
regional wellbeing can be embodied in statistical analysis.

233

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4. Conclusions
For the sustainability of regional development, it must be accepted by local-regional
authorities and dynamics. The success of sustainable development implementations depends
on collective supports of regional actors and dynamics. The latest studies in sustainable
regional development area underline this point and take the subject in this perspective.
Janschitz(2010) brings a very different and exciting perspective to the subject. The
implementation of “the logics of sustainability” is possible for different regional development
strands in research, like learning regions, creative milieus, and transdisciplinary case studies
as well as best practice case oriented concepts.
If NLP method can be very successful at personal development, why not be at regional
development?
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Janschitz, S. and Zimmermann, F.M. (2010), Regional modeling and the logics of
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235

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                <text>An Assessment on Evolution of Regional Development Concept</text>
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                <text>Ulu, Emriye</text>
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                <text>Associating the terms, knowledge, innovation and learning, with development is not a  new process. The innovation as the primary source of competitive advantage in capitalist  economies had been postulated firstly in Marx and Schumpeter’s ideas. But in parallel with  evolution process of development theories and studies, addressing the concepts on regional  level and within the framework of sustainability is a new process. It is seen apparently that  interest in “region” concept has a considerable place in development studies from the early  1990s. Now regions are seen as opened identitites and are exposured to the effects of  international competition directly. Right at this point, the development efforts of lagging  regions by “cut and copy” transfer practice of the development models and policy  instruments of advanced regions have lost their meanings. Prior development models which  used to focus on physical infrastructure and capital endowment have been replaced with  internal models emphasizing the accumulation of intellectual capital and intangible assets.  Key source of competitive advantage is defined as the capacities of regions to support learning and innovation processes. To achieve and sustain the competitive development on  regional level, such models and instruments are required that, they will consider the unique  features and differences of regions, built on the peculiarities of different regions, , not general  but customized and bottom up participatory, have ability to constitute exploitable advantages.  In accordance with the saying, “think globally, act locally”; the concept of sustainability  also shifted from its global understanding to such an understanding which is fed from local  and regional applications.When a region starts to develop, region’s sustainability must be  examined. An ecological deficit which may emerge, should also affect the neighbour  developed regions inevitably. So regional development should not be thought independent  from sustainability. At this point, two concepts come to the scene; “regional sustainable  development” and “sustainable regional development”. The difference is that, for “regional  sustainable development” enviromental objectives and targets are in the forefront, while  economic goals have priority in “sustainable regional development”. But in the second one,  to maintain the sustainability of regional development, some enviromental precautions and  policies are considered too.  This study aims to offer critics of recent studies and provide some inferences to possible  directions for further research by examining the studies, particularly the ones which  reconsider the innovation, knowledge and regional development relation in framework of  sustainability. In the study, firstly the conditions will be underlined which led the emergence  of “the new regional development approach”, focusing on the local dynamics as driving  forces of regional development. And then, in relation to evolving debates about sustainability  and regional development, the forefront concepts- like “learning regions”, “innovative  milieux”, regional networks- will be held within its intellectual context and clarified how they  are situated and conceptualized in empirical studies. In this context, new development models  and the internal drivers of regional development should be revealed. And finally the reached  findings will be examined in terms of common goals for sustainable development and some  inferences for further research will be offered.  Keywords: sustainable development, innovation, knowledge, regional development,  development models, new regional development approach, sustainability.</text>
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                    <text>Evangelista, A. D., Fortes, N. R. &amp; Santiago, C. B., 2005.Comparison of Some Live
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&amp;Ayyappan, S., 2002. Larval Survival and Growth in ‗Wallagoattu‘ (Bloch and Schneider):
Effects of Light, Photoperiod and Feeding Regims. Aquaculture, 213:151-161.
Guppy Culture in Israel Using Closed System. Last Accessed on 3 1, 2012, from
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http://www.akuademi.net/USG/USG2007/Y/y08.pdf
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Different Live Feed on Growth and Survival of Striped Murrel‗Channastriatus‘ larvae. E.U.
Journal of Fisheries &amp; Aquatic Sciences 2008, Cilt/Volume 25, Sayı/Issue (2): 105–110.
Lim, L. C., Dhert, P. &amp;Sorgeloos, P., 2003.Recent Developments in the Application of Live
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Fish Larviculture. Aquaculture, 200, 147-159.
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(Poecilialatipinna)‘ on Larval and Juvenile Term.ÇukurovaÜniv., Su Ürün. A.B.D., M.Sc.
Thesis, Adana, 41pp.
Structural Characterization Of Iron Aluminide Coatings On Aisi 4140 Steel By Trd
Ugur Sen*, Eren Yılmaz, Saduman Sen
Sakarya University, Engineering Faculty, Department of Metallurgy and Materials, Esentepe
Campus, 54187, Sakarya- Turkey.
E-mail: ugursen@sakarya.edu.tr
Abstract
In the present study, structural characterization of iron aluminide coated AISI 4140 steel by
thermo-reactive deposition technique (TRD) in the powder mixture consisting of pure
310

�aluminum, ammonium chloride and alumina at the temperatures of 700°C, 800°C and 900ºC
for 1-5 h were investigated. The coated samples were characterized by X-ray diffraction,
scanning electron microscope and micro-hardness tests. Iron aluminide layer formed on the
AISI 4140 steel was smooth, compact and homogeneous. The phases formed in the coating
layer deposited on the surface of the steel substrates are Fe2Al5, FeAl2, AlN and Al2O3. The
depth of the iron aluminide layer ranged from 37.56±3.46 μm to 280.38±21.58 μm, depending
on treatment temperature and time. The higher the treatment temperature and time the thicker
the coating layer observed. The hardness of the iron aluminide layer was ranged from 952.4 to
1003.2 HV0.005.
Keywords: Coating, aluminizing, iron aluminide, thermo reactive deposition
1. INTRODUCTION
Protective coatings by pack aluminizing are frequently applied to metals to protect them from
high temperature oxidation and hot corrosion attack. Pack aluminizing consists of heating the
parts to be coated in a closed or vented pack to a high temperature for a period of time, during
which a diffusion coating of desired composition and thickness is produced on the metal
(Zhan 2006, Zhan 2007 and Smith 2005). Aluminide coatings were formed at a relatively
lower temperature and in a shorter treatment time by combining the pack aluminizing with the
ball impact process, compared with the conventional pack aluminizing. The pack processes
for simultaneous depositions of Al and Cr, A1 and Si on either steels or super alloys have
been studied using a mixture of alloy powder as the pack component. (Lee 2005).
Conventional processes for fabricating aluminide coatings, such as pack cementation or
chemical vapor deposition (CVD), are typically carried out at elevated temperatures (7001150°C) (Zhang 2007). Iron aluminide coatings are applied on steels to improve their
corrosion resistance in oxidizing, sulphidizing and carburizing environments encountered in
coal gasification plants, crude oil refineries and petrochemical industries. In addition,
Aluminide-containing surface layers of steel provides high resistance to erosion or low-stress
abrasive wear at elevated temperatures, corrosion, and corrosive wear. Iron aluminide-based
coatings have demonstrated excellent oxidation resistance in exhaust/steam environments by
forming a protective alumina scale. With the push towards ultra-supercritical steam coal-fired
power plants, alumina-forming coatings become particularly attractive because at higher
operating temperatures the slow growth of alumina and its stability in the presence of water
vapor are superior to coatings that form chromium or silica-rich scales. (Jhon 2004, Ahmedi
2003, Pereza 2000 and Zhang 2007).
The main objective of this study was to investigate some structural, morphological and
mechanical properties of iron aluminide layers formed on the AISI 4140 steel produced by
thermo reactive deposition technique.

311

�2. EXPERIMENTAL PROCEDURES
The work-piece material used in this study was AISI 4140 steel containing 0.40wt.% C,
0.25wt.% Si, 0.18wt.% Mo, 0.62wt.% Mn and 1.0wt.% Cr. The substrate samples were in the
form of cylindrical coupons that have dimensions of 22 mm in diameter and 5 mm in
thickness and polished progressively with 1200 grit emery papers. Then, these samples were
cleaned ultrasonically in acetone and dried. Aluminizing was performed on the steel samples
by thermo-reactive deposition (TRD) process. The TRD process was performed utilizing a
pack box containing pure aluminum, ammonium chloride and alumina powders, in a high
temperature tube furnace. Pure aluminum, ammonium chloride and alumina were used as
metal supplier (Al), activator and filler materials, respectively. Iron aluminide coated samples
were sectioned from one side and prepared metallographically up to 1200 grid emery paper
and then polished using 1µm alumina paste. Polished samples were etched by 3% Nital before
tests. The thickness of coatings and their morphology were examined using NICKON
ECLIPSE L150 optical microscopy and JEOL 6060 LV scanning electron microscopy (SEM)
on the cross-sections of the iron aluminide coated samples. The chemical analysis of the
coating layers were determined by x-ray diffraction analysis using by RIGAKU XRD
D/MAX/2200/PC x-ray diffractometer with Cu Kα radiation. The hardness of the coated steel
materials was also measured using a FUTURE TECH FM 700 micro-hardness tester fitted
with a Vickers indenter under the loads of 5 gf.
3. RESULTS AND DISCUSSION
Figures 1(a-c) show optical, SEM micrographs and EDS analysis of the iron aluminide coated
AISI 4140 steel at 800ºC for 1h and 800ºC for 3h, respectively. Coating layers formed on the
AISI 4140 steel were compact homogenous, with signiﬁcant regularities in their thickness and
presenting a smooth interface with the substrate (Figure 1a,b). EDS analysis showed that, the
coating layer includes higher aluminum in the coating layer as seen in Figure 1(c). Aluminum
concentration of in the outer of the coating layer is much higher than that of inner parts of the
coating layer and iron concentration of the inner parts of the coating layer is much higher than
that of the in the outer of the coating layer was observed as seen in Figure 1c .
XRD pattern (Figure 2) of the iron aluminide coated sample at 800 ºC for 3 h showed that, the
phases formed on the coated steel sample are Fe2Al5, FeAl2, AlN and Al2O3. This result
agrees with earlier studies of Zhan et al. (Zhan 2007). The thickness of iron aluminide layer
ranged from 37.56±3.46 μm to 280.38±21.58 μm, depending on treatment temperature and
time. The higher the treatment temperature and time, the thicker the iron aluminide layer
became. Figure 3 shows the iron aluminide layer thickness depending on process temperature
and time. For thermo chemical coating processes, the longer the process time and the higher
the treatment temperature, the thicker the coating layer becomes. Bath composition, substrate,
treatment time and temperature affect the coating layer thickness in the TRD processes (Arai
1989). The hardness of the iron aluminide layer formed on the AISI 4140 steel was ranged
from 952.4 to 1003.2 HV0.005 (Figure 4) whereas the hardness of uncoated steel is 390
312

�HV0.005. These results are in good agreement with Zhan et al. (Zhan 2007). These are due to
the presence of hard aluminides (Fe2Al5 and FeAl2) in the coating layer as verified by XRD
analysis (Figure 2).

(a)

(c)

313

(b)

�Figure 1. (a) Optical, (b) SEM micrographs and EDS analysis of the iron aluminide coated
AISI 4140 steel at 800ºC for 1h and 800ºC for 3h, respectively.

Figure 2. XRD pattern of the iron aluminide coated AISI 4140 steel at 800 ºC for 3 h

(a)

(b)

Figure 3. (a) The thickness of iron aluminide layer formed on AISI 4140 steel and (b) contour
diagrams of coating layer thickness depending on process parameters

314

�Figure 4. The variation of hardness of iron aluminide layer formed on AISI 4140 steel from
surface to interior, depending on process parameters.
4. CONCLUSIONS
AISI 4140 steel was the substrate used for the deposition of iron aluminide coating by thermoreactive deposition technique and the treatment was proved to be efficient in the production of
iron aluminide base coatings.The results obtained from present study can be summarized as
follows:
• Coating layers formed on the AISI 4140 steel were compact homogenous, with signiﬁcant
regularities in their thickness and presenting a smooth interface with the substrate.
• EDS analysis show that aluminum concentration of in the outer of the coating layer is much
higher than that of inner parts of the coating layer and iron concentration of the inner parts of
the coating layer is much higher than that of the in the outer of the coating layer was
observed. • XRD analysis showed that the coating layer includes Fe2Al5, FeAl2, AlN and
Al2O3 phases.
• The thickness of iron aluminide layer ranged from 37 μm to 280 μm, depending on
treatment temperature and time.
• The hardness of the iron aluminide layer formed on the steel samples was changingbetween
952.4 to 1003.2 HV0.005 which was much harder than steel (390 HV0.005).
315

�REFERENCES
Zan Z. He Y. Wang D. Gao W. (2006) Preparation of aluminide coatings at relatively low
temperatures, Trans. Nonferrous Met. SOC. China, 16, 647-653.
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Temperature and its Oxidation Resistance, Oxid Met, 68, 243–251.
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Smith A. B. and Kempster A. (2005) Utilization of Aluminide Diffusion Coatings to Improve
High Temperature Performance, NACE Int.Conference, Corrosion, 14.
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Oxidation Protection in Water Vapor Environment, NACE Int.Conference, Corrosion, 12.
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aluminide coating by low pressure chemical vapor deposition: Part II. Model formulation,
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Pereza F.J. Pedrazaa F. Hierroa M.P. Houb P.Y. (2000) Adhesion properties of aluminide
coatings deposited via CVD in fluidized bed reactors (CVD-FBR) on AISI 304 stainless steel,
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Arai T. (1989) Development of Carbide and nitride coatings by thermo-reactive deposition
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international surface modiﬁcation technologies, 587.

316

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                <text>In the present study, structural characterization of iron aluminide coated AISI 4140 steel by  thermo-reactive deposition technique (TRD) in the powder mixture consisting of pure aluminum, ammonium chloride and alumina at the temperatures of 700°C, 800°C and 900ºC  for 1-5 h were investigated. The coated samples were characterized by X-ray diffraction,  scanning electron microscope and micro-hardness tests. Iron aluminide layer formed on the  AISI 4140 steel was smooth, compact and homogeneous. The phases formed in the coating  layer deposited on the surface of the steel substrates are Fe2Al5, FeAl2, AlN and Al2O3. The  depth of the iron aluminide layer ranged from 37.56±3.46 μm to 280.38±21.58 μm, depending  on treatment temperature and time. The higher the treatment temperature and time the thicker  the coating layer observed. The hardness of the iron aluminide layer was ranged from 952.4 to  1003.2 HV0.005.  Keywords: Coating, aluminizing, iron aluminide, thermo reactive deposition</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

European Union Membership Process Of Turkey; Its Pros And Cons For Turkey
Turhan Durmus Gokhan
Suleyman Demirel University
Isparta/TURKEY
E-mail: gokhanturhan@sdu.edu.tr
Abstract
The membership process of Turkey has been carried out since 1959 when Turkey first applied
to join what was then called the European Economic Community. This process had profound
influence on Turkey in many fields such as economy, social life, international policy,
education etc.
The first agreement signed between Turkey and European Union was “Ankara Agreement”
which took place in 12 September 1963. This agreement envisaged establishment of customs
union, which is aimed at integration of Turkey and European Economic Community in three
main phases. Following this agreement additional protocols were signed. The year 1987 was
another turning point for the process that Turkey applied for full membership on this date.
Besides the developments in 1987, in 2004 Turkey realized an important step on the way to
becoming a full member. In 2004 European Union Member States decided that negotiations
with Turkey could be initiated. The negotiations are still carried out. All of the agreements
and protocols in the process required Turkey perform new policies which affect the society in
many fields.
The question of how this process has affected Turkey, which is asked by many, is still one of
the most questioned issues of Turkey. It is obvious that 53 years-old process has had a lot of
advantages and disadvantages for Turkey. To see the main pros and cons clearly, the issue
must be analyzed under three main subtitles; economy, social life and policy.
Keywords: EU, Turkey, Membership Process, Customs Union, Ankara Agreement.
1. INTRODUCTION
The relations between Turkish people and the European civilization have a deep and long
history. Remarkable relations date back till the Seljuk Empire times then it continues with the
Ottomans. The Otoman Empire was recognized as a European state with the Declaration of
Paris in 1856 (Eldem, 2005). After Ottoman Empire’s collapse, Turkish Republic was
founded and its fundamental aim was to reach modern civilizations level.

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The way of reaching modern civilizations level was to internalize developments experienced
in the west without destroying our own values. Till the end of 1950s, the relations ran at an
idle, however 1959 was a landmark in view of Turkey’s relationships with Europe. In this
year the Turkish government applied to European Community to be an associate member.
The second important date is 1963. The Turkish government signed the Ankara Agreement
with the EEC. It was the first financial protocol between the community and Turkey
(Euractive 2004) and constituted legal foundations of the membership process. After Ankara
Agreement, another important component in the relations was The Additional Protocol of 13
November 1970 which meant Turkey would be a part of customs union step by step. After the
long period of negotiations, protocols and different obstacles which took nearly thirty years,
in 1995 Customs Union Agreement was signed. With this agreement, Turkey became a full
member of the Customs Union in 1 January 1996 and almost 60 per cent of Turkey’s trade is
now with European states.
1999 Helsinki Summit followed Customs Union Agreement and Turkey became a candidate
country. After Helsinki Summit, another important date was October 2004 when the
Commission presented the 2004 regular report on Turkey’s progress towards accession and
recommended the opening of accession negotiations with Turkey in this report (Pime Ministry
Undersecretariat of Customs 2007). In October 2005 negotiations started and membership
process took a new route.
As seen above, Turkey has a very long membership process. The main aim of this long and
grueling period was to reach modern civilizations, therefore what must be asked at this point
is what are the pros and cons of this membership process for Turkey. In this study this
question will be examined.
2. Advantages of the Membership Process
The long membership process has had profound affects on Turkey in many areas. Main
advantages of the process can be classified under these subtitles;
2.1. Political Framework
In political area, the membership process has gained Turkey many important aspects. Turkey
is a geographically strategic country which has strong bounds with Asian Turkish Countries,
Muslim World and Balkan Countries. If Turkey can carry out effective policies toward these
areas, it can be one of the key states in the union and increase its effectiveness. Using her
cultural, historical and religious ties, Turkey can be an important bridge between the east and
west, that is because Turkey is one of the unique countries that have such strong ties with both
the east and the west, which makes Turkey an important player.

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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

2.2. Democracy, Social Standards and Human Rights Framework
The process has contributed enormously to the development of democracy understanding in
Turkey. Turkey has been exposed to many military coups and as a result there existed a
morbid understanding that army have right to interfere with the government. This means army
is the power above all foundations, which conflicts with the democracy notion. During the
process positive steps have been taken to eliminate this misunderstanding and democracy has
been strengthened through the laws and regulations passed during the process. Actually the
membership process has been used as an instrument to convince the obsolete pro-militarists
and achieve the real democracy.
During the membership process, human rights and judicial reforms have been one of the most
important issues that should be dealt with neatly. The civil, political, social and economic
rights of humans are likely the main concerns of the union. Some reforms aiming at enriching
human rights, judicial organization and eliminating strict restrictions have been dictated by
European Union as a part of membership conditions and these reforms have had positive
effects in terms of human rights and social standards. Many practices such as capital
punishments, torture, child labor, restrictions on freedoms, poor working conditions, poor
social security etc., which are not suitable for a modern country, have been amended or
entirely abolished in accordance with European Union standards.
2.3. Economic Framework
When examined the economic benefits of the membership process, it is clearly seen that
Customs Union is the key term in this field. With Customs Union Agreement Turkey has
taken an important step in view of her technical regulations in economic fields. To be able to
exist in European markets and compete with other states, Turkey needed production
standards. These high standards and regulations were provided with Turkey by European
Union as parts of the membership process. Customer satisfaction, food security and product
quality are main targets of the regulations and undoubtedly these regulations increased quality
and standards in Turkey.
European Union means a new market for Turkey. European Union lacks of many products
which are abundant in Turkey. If Turkey can achieve quality and high technical standards, she
can make huge profits from the new market. With the process many regulations about export
and import were made flexible and trade among Europe countries became much easier. This
increased Turkey’s economic importance in the region as well.
Turkey’s location resembling a bridge between Asia and Europe became much more
important with the membership process. With Turkey which is dependable partner state,
European Union has broaden its economic affairs to Middle East and Asian states. As a result,
Turkey’s importance and effectiveness got bigger.

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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

2.4. Cultural Framework
Cultural framework is one of the most controversial issues in the membership process. Some
spheres argue that cultural alienation occurs as a result of the reforms, developments and
alterations experienced during the process, while others argue the society has interaction with
other cultures which results in positive feedbacks.
Being aware of different cultures and taking good samples from these cultures may be one of
the most significant outcomes of the process. During the process, many reforms have been
realized in all spheres, a lot of Turkish citizens had chance to visit different countries of the
union, many university students have benefited from different exchange programs and
undoubtedly all of these have contributed to cultural structure of Turkey. For example, many
university students had a chance to travel different countries of the union and these
experiences opened up new vistas for them.
Apart from social interaction, there are cultural outcomes stemming from economical, social
and political developments. Especially social reforms affected Turkey’s cultural structure
more than the others. Many social reforms bettering life conditions have been passed and
cultural aspects started to alter as a result. For example, many restrictions on freedoms have
been abolished and the citizens added freedom understanding to their cultural heritage.
Another good example is that effect of military foundations on fields of politics has been
eliminated and democracy understanding has been internalized as a part of culture.
3. Disadvantages of the Membership Process
In spite of the advantages mentioned above, there are many disadvantages experienced and
foreseen. The main issues centre on fear of cultural assimilation, interference to domestic
policy and possible compatibility problems.
3.1. Possible Compatibility Issues
There are two main roots of a culture; the first one is religion and the other one is national
history. Nearly all of the European Union countries come from the same religious roots and
they have a common historical background. On the other hand, the Christian Europeans put a
distance on every different social, religious and ethnic structures and cultures for ages. They
excluded and tried to destroy the different cultures and these thoughts remained not only in
politician’s minds but also remained in regular European citizen’s mind (Hatipoğlu 2004). At
this point there is a strong controversy that Turkey has a different religious and historical
background. If the union is a Christian Union as implied above, does Turkey have a place in
the union? Even if she finds a place, can she have adaptation? These are the questions which
are asked and examined by both sides.

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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

3.2. Fear of Cultural Assimilation
Each culture has its own unique values and aspects. In the process many values and aspects of
Turkish Culture has degenerated as a result of dominant culture of the union which stems
from economic, social, political and cultural strength of European Union. Many citizens of
Turkey are afraid of cultural assimilations and the signs of cultural assimilations observed till
now have supported their concerns.
3.3. Interference with Domestic Policies
Each state has unique laws, foundations, regimes, state structures... As a result, some laws
necessary for a country can be found exaggerated or insufficient by another country. Similar
conditions can be seen in the membership process. Many regulations and laws had to be
abolished, changed or passed in accordance with European Union’s requirements. This case
raised the questions in minds whether European Union interferes with Turkey’s domestic
policies. Does European Union have right to force Turkey to change any law about her own
domestic policy? This is one of the biggest question marks in minds.
Another worry is that the future of the EU is not certain. It is a big question whether EU is
going to be a union of states or a federal state or something else. But it is certain that the EU
is moving towards to a federation. Modern state has the right to control its domestic affairs
and can decide for its actions.(Tulgar 2009) If European Unions is moving towards federation,
in the future will Turkey be able to decide for her own actions or will Turkey control her own
domestic affairs herself? Is Turkey’s sovereignty restricted?
4. Conclusion
The membership process of Turkey has been carried out since 1959 when Turkey first applied
to join what was then called the European Economic Community. This process had profound
influence on Turkey in many fields such as economy, social life, international policy,
education etc. The question of how this process has affected Turkey, which is asked by many,
is still one of the most questioned issues of Turkey. It is obvious that 53 years-old process has
had a lot of advantages and disadvantages for Turkey. In this paper, main advantages and
disadvantages of the process are mentioned and examined under various subtitles.
REFERENCES
Ulgar F. G., Advantages and Disadvantages of EU Membership for Turkey, M.A. Thesis,
2009, Bahcesehir University, İstanbul.
Eldem E., Ottoman Financial Integration with Europe: Foreign Loans, the Ottoman Bank and
the Ottoman Public Debt, Boğaziçi University, Department of History
257

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Hatipoğlu M. M., Avrupa Birliği: Çağdaş Uygarlığın Yolu mu, Ulusal Egemenliğin Sonu mu?
( Is the EU way to modern civilizations or the end of national sovereignty?) Symposium, 0809.11.2004, Istanbul Hacettepe University Publication
Hakim A., Middle East Needs Turkey’s EU Membership, The Journal of Turkish Weekly
Opinion, 02 October 2005
Euractiv
http://www.euractiv.com, the independent media portal fully dedicated to EU affairs, 2007
Ministry of Foreign Affairs
http://www.mfa.gov.tr/agreement-establishing-an-association-between-the-european
economic-community-and-turkey-signed-at-ankara_-september-1_-1963_.en.mfa, 2008

The Role Of Twin Deficit Problem In Sustainable Growth: An Econometric Analysis
For Turkey
Halil Uçal, Mehmet Bölükbaş
Adnan Menderes University, Faculty of Economic and Administritive Sciences,
09900, Nazilli, Aydın, Turkey.
E-mails:hucal@adu.edu.tr, mbolukbas@adu.edu.tr
Abstract
In economics literature the relationship between budget deficit and current account deficit is
known as twin deficit hypothesis. The Keynesian Approach accepts a relationship between
two deficits. In contrast to this, Ricardian Equivalence Hypothesis defends there is no
relationship between these two deficits. Twin deficit has become the subject of several studies
to test which of these hypotheses are reliable but no consensus has achieved. Some studies
found a relationship from budget deficit to current account deficit but some of them had the
opposite result. Especially after 1980 it is known that many developed and developing
countries encountered with this twin deficit problem. Also Turkey has the problem of twin
deficit. Therefore, it is important to find whether there is a causality between them and the
direction of this causality.
In this study the relationship between budget deficit and current account deficit is examined
by using Johansen Cointegration Analysis. This study is based on period 1996:Q1-2011:Q4.
According to results of co-integration; variable coefficients are statistically significant and
consistent with what we expected in hypotheses. CAD has a significant negative effect on
BD. When there is a 1% increase in CAD, BD decreases 0,12%. This finding is consistent
with economic theory because according to Keynesian Approach two deficits have
258

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                <text>The membership process of Turkey has been carried out since 1959 when Turkey first applied  to join what was then called the European Economic Community. This process had profound  influence on Turkey in many fields such as economy, social life, international policy,  education etc.  The first agreement signed between Turkey and European Union was “Ankara Agreement”  which took place in 12 September 1963. This agreement envisaged establishment of customs  union, which is aimed at integration of Turkey and European Economic Community in three  main phases. Following this agreement additional protocols were signed. The year 1987 was  another turning point for the process that Turkey applied for full membership on this date.  Besides the developments in 1987, in 2004 Turkey realized an important step on the way to  becoming a full member. In 2004 European Union Member States decided that negotiations  with Turkey could be initiated. The negotiations are still carried out. All of the agreements  and protocols in the process required Turkey perform new policies which affect the society in  many fields.  The question of how this process has affected Turkey, which is asked by many, is still one of  the most questioned issues of Turkey. It is obvious that 53 years-old process has had a lot of  advantages and disadvantages for Turkey. To see the main pros and cons clearly, the issue  must be analyzed under three main subtitles; economy, social life and policy.  Keywords: EU, Turkey, Membership Process, Customs Union, Ankara Agreement.</text>
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                    <text>The Effects of Different Feeding Programmes on Growth and Survival Rates of Newborn Guppy (Poeciliareticulata PETERS, 1859)
Tolga Sahin1, Gurel Turkmen2,Dilek Isgoren Emiroglu2
1Çanakkale 18 Mart Uni.,Faculty of Fisheries, Dep.ofAquaculture, Çanakkale / Turkey
2Ege University, Faculty of Fisheries, Department of Aquaculture, Izmir / Turkey
E-mails:tolgasahin@comu.edu.tr,gurel.turkmen@ege.edu.tr, dilek.emiroglu@ege.edu.tr
Abstract
In this trial, five feeding programmes were used to investigate the optimum feeding process of
new-born guppy in five treatment groups. For the study, fish were fed Artemia(nauplii) for 4
weeks (4A), microparticulated feed for 4 weeks(4MF), 1week Artemia+ 3weeks
microparticulated feed (1A+3MF), 2weeks Artemia + 2weeks microparticulated feed
(2A+2MF) and 3weeks Artemia + 1week microparticulated feed (3A+1MF) in related
treatment groups. At the end of the study differences in weight, length, survival and stress
resistance of the fish were calculated. According to the measurements, the best average
growth of19.94±0.161 mm length and0.0732±0.00120 g weightwas observed in the group fed
4MF (p&lt;0.05), whilst the worst average growth of17.74±0.088 mm lengthand0.0425±0.00061
g weight was observed in the group fed 4A (p&lt;0.05).There were significant differences
(p&lt;0.05) in average lengths of18.93±0.038 mm, 18.27±0.055 mm, 17.97±0.025mm in the
groups fed 1A+3MF, 2A+2MF and 3A+1MF respectively. The weights did not show any
differencewith0.0594±0.00032g and 0.0576±0.00026g between the groups 1A+3MF,
2A+2MF (p&gt;0.05),while the group 3A+1MF showed different live weight of
0.0490±0.00041g (p&lt;0.05) according to other treatment groups. The worst survival rates with
%88.14±0.74 has been obtained (p&lt;0.05) in the group fed 4MF while the survival rates has
been determined %97.78±0.00 in the group fed 3A+1MF, %97.04±0.74 in the group fed 4A
and in the group fed 2A+2MF, %91.85±0.74 in the group fed 1A+3MF respectively. There
were no significant differences between the groups fed 4A, 2A+2MF, 3A+1MF (p&gt;0.05)
while the groups 4MF and 1A+3MF showed significant differences (p&lt;0.05). According to
these results, the diet 4MF and 1A+3MF are not enough for a better aquaculture of new-born
guppy. Therefore, it is found in the trial that Artemia supply for the first 2 weeks after birth in
guppy are necessary for better survival and stress resistance.
Keywords:Poecilia reticulata, Artemia, Microparticulated feed.
1. INTRODUCTION
For many fish species, the larval period is considered critical in life history. Success of larval
rearing depends mainly on the availability of suitable feed that is readily consumed,
efficiently digested and that provides the required nutrients to support good growth and health
(Giri et al., 2002). In general, the fish larvae are physiologically immature with little or no
capacity to produce certain hormones and digestive enzymes, and they are dependent to a
300

�greater or lesser extent on exogenous sources as live feed (Dabrowski, 1982, Lam, 1994; in
Kumar et al., 2008). For this reason, it has been known that, since no artificial feed
formulation is yet available to completely substitute for live feed, feeding live prey to young
fish larvae still remains essential in commercial hatchery operations (Sorgelooset al., 2001).
Hence, live feed is still the most preferred and reliable food organism in the rearing of fish
larvae. In theornamental fish production, the fish also have commonly been fed live preyfor
several days after hatching depending on the species. The major aim of the aquaculturists are
to provide the fish larvae appropriate size of feed at the first feeding stage and to allow for
better growth with higher survival rates.
However, the mouth-opening is enough to get the microparticulated artificial feed in newborn guppies. Despite the mouth-opening being large enough for exogenous feeding, use of
live-feed in the culture of new-born guppy is important due to lower survival rates and
weakness to the adverse conditions fish fed only microparticulated feed (OrtadoğuAkv., Pers.
Comm., April 4, 2012; ŞirinyerAkv., Pers. Comm., April 4, 2012; Kayhan, S. Email
Interview, Feb. 12, 2012; Clapsaddle, C., Email Interview, Feb. 01, 2012). For that reason,
many freshwater ornamental fish farmers have shifted from only artificial feed to the cleaner
Artemia nauplii to feed their young fish for the first few weeks after hatching.
Although Artemia is advantageous, it also has several disadvantages. The high price of
Artemia cysts has increased the fish production making it one of the biggest outgoings at the
ornamental fish farms. Many studies have been carried out both in marine larvae culture and
ornamental fish larvae culture to determine the optimum period for Artemia feeding to solve
this economical problem.
In this study, the effects of Artemia and microparticulated feed on growth, survival
parameters and stress resistance have been calculated in new-born guppies. The optimum
feeding period of the new-born guppy with Artemia was investigated.
2. MATERIALS AND METHODS
2.1.Experimental setup and the trial
Five treatments, including: Artemiafor 4 weeks (4A), microparticulated feed for 4
weeks(4MF), 1weekArtemia+3 weeks microparticulated feed (1A+3MF), 2weeks Artemia +
2weeks microparticulated feed (2A+2MF) and3weeks A + 1week microparticulated feed
(3A+1MF) were fed to triplicate groups of new-bornguppies. The experimental setup has been
illustrated in Figure 1.
Guppy fry were received from female broodstocks which allthe fish used in the
experimentwereoriginated from the same strain. The trials were conducted in 9-Ltransparent
plastic containers. After determination of the average length and weight of the fry (8.11 ±
0.21 mm total length ‗TL‘ and 0.0064 ± 0.0006 g weight), new-born guppy were stocked at a
density of 45 fish for each experimental tank (Itzkovich, 2011). The containers were
continuously aerated and dissolved O2 was kept &gt;7 mg.L-1. Water temperature was
maintained at 26 ± 1 ºC and 12 h light/12 hdarkphotoperiod conditions were applied.
Filtration was supplied with canister filters in order to filter the tap water in supply tank. % 30
of water was siphoned daily from the experimental containers for removing the uneaten food
301

�and fish waste (Uslu, 2003). The tanks were refilled with filtered tap water from the supply
tank after siphoned.
Measurements were taken every 7th day from the beginning of the trial until the end. On
completion of the trial one final measurement was taken. The sample fish from all the
replicates of five treatments were selected randomly and anaesthetized with clove oil
(Kanyılmazet al.,2007). After anesthetization, lengths were measured and fish were weighed.
The dissolved oxygen, temperature and pH parameters were monitored daily while ammonia,
nitrite and nitrate parameters were monitored once a week.

Figure 1Experimental setup
2.2.Feeds and feeding protocol
The fish were fed Artemianauplii and microparticulated feed throughout the study. As
microparticulated feed, a new commercial artificial feed (ÇağatayEcobio, 300-500µ) was used
on related treatment groups (Table 1). The microparticulated feed contains optimum levels of
significant nutrients according to the information indicated at Shim and Ho (1993), Shim and
Chua (1986) (Sales and Janssens, 2003).
Table 1 Nutritional Composition of the Microparticulated Feed1(MF) and Artemia1(%).
MF

Artemia

Crude Protein

Min.

42

57

Crude Fat

Min.

6

13

Crude Cellulose

Max.

3

-

Crude Ash

Max.

9

8

1Obtained from the feed cards.
302

�The requisite Artemia nauplii were obtained daily by hatching the decapsulated cysts. The
decapsulatedArtemia cysts were placed into a cone shaped container and filled with &gt;8 pH
water. The temperature was set to 27-28 ºC and the salinity was adjusted to ‰ 33. Continuous
strong aeration was carried out to the container and 2000 lux illumination was applied to the
surface of water. Over 18-24 hours, nauplii were hatched. Feeding procedures was set to adlibitum. Newly hatched naupliiwere supplied to treatment groups three times a day at a
concentration of 1 nauplii mL-1 for the first 10 days and then 2 nauplii mL-1 on subsequent
days. Hatched nauplii were stored at +4 ºC after use not to lose its nutritional values (Le´ger
et al., 1983; in Lim et al., 2003).
2.3. Stress test
At the end of the experiment, sample fish were collected randomly from each replicate of the
groups in order to determine the stress resistance. A stress test was used to evaluate the stress
resistanceof the freshwater ornamental fish. The test entailed exposure of thefish to a certain
amount of osmotic shock in a saline solution.Theoptimal salinity for stress tests using guppy
fry reported to be 30 ‰according to procedures described by Lim et al.(2000). Hence, during
the osmotic application, fish were subjected to osmotic shock in a500-mL beaker containing
500 mL of 30-ppt saline solution, made up of pre-aerated culture water and coarse salt.
Themortality was monitored at 15-min intervalsover a 2-h period. The stress resistance of
thefish werecalculated according to the number of survived fish recorded atreadings during
the observation period.
2.4. Statistical analyses
Results were subjected to variance analyses (one-way ANOVA; p&lt; 0.05) and followed by
Tukey‘s multiple range testusing a software package SPSS 17.0 to determine the significant
differences among treatment groups.
3. RESULTS
3.1. Growth
After average measurements were done at the beginning of the experiment, weight and length
measurements were carried out on a weekly basis to evaluate the differences between the
groups as a result of the protocols applied on nutrition programs. At the end of the first week
of the trial, all groups showed approximately similar average live weight and length results
(p&gt;0.05).
In the second week measurements, the best growth results were obtained from the group 4MF
(p&lt;0.05).The groups 4MF and 1A+3MF were significantly different from each other (p&lt;0.05)
but the other groups showed no difference between themselves (p&gt;0.05).
At the end of the third week, another measurement has been carried out. According to the
results, the group 4MF showed the best growth (p&lt;0.05). The groups 4MF, 1A+3MF and
2A+2MF were statistically different from each other (p&lt;0.05) while the others did not show a
difference on growth (p&gt;0.05).

303

�The last measurement has been done in the fourth week on completion of the trial. The group
4MF showed the best growth (p&lt;0.05), while the group fed only Artemia (4A) showed the
worst live weight and length results (p&lt;0.05). The groups1A+3MF and 2A+2MF did not
show a significant difference (p&gt;0.05) in terms of weight while the lengths were significantly
different from each other (p&lt;0.05). The group 3A+1MF also showed significant difference for
the weight measurements (p&lt;0.05) but the lengths were not significantly different from the
groups 4A and 2A+2MF (p&gt;0.05), although the groups 4A and 2A+2MF differ from each
other.The average live weights were shown in Table 2 and Figure 2 and the lengths were
shown in Table 3 and Figure 3.
Table 2Average live weights recorded at weekly measurements (g).

Measurements
Groups
Initial

1. Week

2. Week

3. Week

4. Week

4A

0.0064±0.00
06

0.0103±0.000
12

0.0161±0.0001
5c

0.0349±0.0002
9d

0.0425±0.0006
1d

4MF

0.0064±0.00
06

0.0104±0.000
06

0.0219±0.0002
4a

0.0569±0.0001
7a

0.0732±0.0012
0a

1A+3M
F

0.0064±0.00
06

0.0103±0.000
06

0.0196±0.0002
0b

0.0475±0.0002
7b

0.0594±0.0003
2b

2A+2M
F

0.0064±0.00
06

0.0103±0.000
10

0.0162±0.0002
1c

0.0436±0.0002
6c

0.0576±0.0002
6b

3A+1M
F

0.0064±0.00
06

0.0102±0.000
12

0.0157±0.0001
5c

0.0352±0.0001
2d

0.0490±0.0004
1c

304

�4A

0.08

4MF

1A+3MF

2A+2MF

3A+1MF

3

4

0.07
Weight (g)

0.06
0.05
0.04
0.03
0.02
0.01
0
Initial

1

2
Experimental period (weeks)

Figure 2 Graphical representation of live weights recorded at weekly measurements
Table 3 Average lengths recorded at weekly measurements (mm).

Measurements
Groups

İnitial

1. Week

2. Week

3. Week

4. Week

4A

8.11±0.21

11.54±0.023b

12.77±0.018c

15.11±0.024d

17.74±0.088d

4MF

8.11±0.21

12.01±0.018a

14.50±0.031a

17.19±0.035a

19.94±0.161a

1A+3MF

8.11±0.21

11.52±0.042b

13.91±0.024b

16.92±0.114b

18.93±0.038b

2A+2MF

8.11±0.21

11.56±0.035b

12.76±0.031c

16.16±0.031c

18.27±0.055c

3A+1MF

8.11±0.21

11.51±0.018b

12.71±0.042c

15.13±0.029d

17.97±0.025cd

305

�4A

4MF

1A+3MF

2A+2MF

3A+1MF

20

Length (mm)

18
16
14
12
10
8
Initial

1
2
3
Experimental Period (weeks)

4

Figure 3Graphical representation of the lengths recorded at weekly measurements
3.2. Survival
As a result of observations on each experimental tank, dead fish were recorded daily during
the experiment. At the end of the study, survival rates were calculated according to numbers
of live and dead fish (Table 4). In consequence of survival data, the fish fed 3A+1MF diet
showed the highest survival rates %97.78. The group fed only Artemia and the group fed
2A+2MF also showed better survival rate with both %97.04. The worst survival rates have
been obtained from the group fed only MF with %88.14 and followed by the group fed
1A+3MF with %91.85. According to the statistical analyses, the groups 4A, 2A+2MF,
3A+1MF were not different from each other (p&gt;0.05), while the groups 4MF and 1A+3MF
were both different (p&lt;0.05).
Table 1Survival rates of new-born guppy fry fed different feeding programs (%).
Groups

4A

4MF

1A+3MF

2A+2MF

3A+1MF

Survival
Rates

97.04±0.74a 88.14±0.74c 91.85±0.74b 97.04±0.74a 97.78±0.00a

3.3. Stress Test Results
The stress resistance of the fish were calculated during the observations which have been
done 15 minutes intervals over 2 hour period. The fish fed 4A and 3A+1MF have shown the
best stress resistance between all treatment groups. There were not significant differences
among these two groups despite the others were different from each other. Following groups
can be listedas 2A+2MF, 1A+3MF and 4MF according to their stress resistance and stamina.
The first deaths have been observed in the groups 4MF in the 30th minutes (Table 5, Figure
306

�4). The deaths in all groups have been seen in the 60th minutes. At the end of the application,
there were no alive fish in the group 4MF while the survival rate was %30 in the groups fed
4A and 3A+1MF.
Table 5Survival rates of new-born guppy exposed to salinity stress test.
Survival data recorded at 15 min. intervals (%)
Groups
0

15

30

45

60

75

90

105

120

4A

100.0

100.0

100.0

100.0

80.0

63.3

56.6

53.3

30.0

4 MF

100.0

100.0

96.6

83.3

66.6

50.0

23.3

6.6

0.0

1 A+3 MF

100.0

100.0

100.0

96.6

76.6

60.0

46.6

16.6

10.0

2 A+2 MF

100.0

100.0

100.0

90.0

73.3

70.0

40.0

26.6

23.3

3 A+1 MF

100.0

100.0

100.0

100.0

86.6

66.6

56.6

40.0

30.0

Survival Rates of Fish (%)

4A

4 MF

1 A+3 MF

2 A+2 MF

3 A+1 MF

100
90
80
70
60
50
40
30
20
10
0

0

15

30
45
60
75
90
Observations (15 min. intervals)

105

120

Figure 4 Graphical demonstration of the stress test exposed to new-born guppy
4.DISCUSSION
In this study, new-born guppy showed good feeding response to both Artemia and
microparticulated feed. However, the fish fed 4MF diet ended up with a high performance
growth according to other treatment groups (p&lt;0.05). In the first measurement, the weights of
the fish did not differ from each other (p&gt;0.05). But for the lengths, four groups including 4A,
1A+3MF, 2A+2MF, 3A+1MF resulted in the same growth rate (p&gt;0.05) while 4MF
307

�outrivaled the others (p&lt;0.05). In the second week of the trial another measurement has been
performed and 3 different growth grades have been obtained from the statistical analyses. The
groups 4MF and 1A+3MF were significantly different (p&lt;0.05) in terms of live weight and
length but the other groups did not show any difference(p&gt;0.05). In the following
measurement, the groups 4MF, 1A+3MF, 2A+2MF all showed better weight gain and
increase in length in contrast to 3A+1MF and 4A groups respectively. The groups 4MF,
1A+3MF and 2A+2MF were statistically different from each other (p&lt;0.05) while the others
did not show a difference on growth (p&gt;0.05).At the end of the trial, the last measurement has
been done and the best growth results were obtained from the group fed 4MF (p&lt;0.05), while
the group fed only Artemia (4A) showed the worst growth (p&lt;0.05). The other groupscould
be arrayed as 1A+3MF, 2A+2MF and 3A+1MF according to growth of the fish depending
upon the statistical analyses.Herein, it is clear to see the positive effect of used artificial feed
on growth of new-born guppy.
However, the survival rates were not the same as growth between the treatment groups. The
highest survival rates obtained from the groups 3A+1MF, 2A+2MF and 4A respectively.
According to data obtained from the measurements and observations have done during the
experiment, the fish fed 4MF diet showed better growth while they have had lower survival
rates. In spite of that, the fish fed 4A diet showed lower growth although they have had higher
survival rates. Therefore, as is clear from here, Artemia weighted diets have resulted in better
survival rates despite they cause lower growth in new-born guppies.
Another application has been carried out to determine the stamina of the fish fed different
feeding programs. The salinity stress test used in the trial is one of the stress resistance
determining tests developed for new-born guppies. The groups 4A and 3A+1MF showed the
best survival rates according to stress test results. The groups fed MF weighed diets resulted
in lower stress resistance. Thus, the stress resistances of the fish have given similar results to
the survival data of the fish during the trial. It is clear that, Artemia increased the stamina of
the fish in contrast to MF in this trial.
In a similar study, Başçınar and Çakmak, (2010) have investigated the growth performance of
Black Sea Trout larvae fed Artemia and granulated feed. According to the results, they have
found that the larvae grew better fed only granulated feed for the first 45 days. However, the
survival rates were not high in the groups fed Artemia in contrast to this trial. Callan et al.,
(2003), also have made another experiment to investigate the early weaning of Gadusmorhua
larvae from Artemia to artificial feed. They have found that the groups fed 100% A, 50% A
and 25% A diets did not differ significantly in standard length, dry weight, specific growth
rate or survival. However, the microparticulated diet treatment has had lower growth and
survival rates than any of the treatments receiving Artemia. Çalım, (2010) has investigated the
effects of Artemia and microcapsule feed on guppy fry, and has found that the growth and
survival data were not as well as the fry fed Artemia. In another trial, Kaiser et al., (2003)
have found that the larvae (Carassiusauratus) fed Artemia or Artemia + commercial food have
showed better growth and survival rates than the fish fed only commercial food.
In many studies, Artemia and artificial feed diets show different growth and survival results
due to species and other conditions. There are several researches have been already done
about the first feeding of new-born guppy. According to the data obtained from these
experiments prove that, the use of Artemia nauplii for the feeding of guppy-fry increases the
growth and survival. However, being one of the biggest expenditures of ornamental fish
308

�farms, use of Artemia is an important issue for the farmers. Several interviews followed out
with the fish-farmers (OrtadoğuAkv., Pers. Comm., April 4, 2012; ŞirinyerAkv., Pers.
Comm., April 4, 2012)to investigate the feeding protocols of the culture of new-born guppies
and to consider the use of Artemia in ornamental fish farms. According to interviews, the use
of Artemia as live feed for the culture of new-born guppy have been expressed as necessary
for the first few weeks after birth. The Artemia has been rendered as breast-milk for new-born
guppies due to its effects on increased survival and stamina. Person le Ruyet (1993) has also
indicated that, reducing the live prey utilization in larvae increases the Artemia savings for the
early culture of fish. However, this may lead to deaths, lower juvenile quality, including
skeletal abnormalities.
It is already known artificial feeds got ahead in time and increase the growth and survival
much better in comparison to back. It is because of the recent studies which have provided
better understanding of digestion mechanisms in larvae and have led to proposed dietary
compositions meeting larvae nutritional requirements. The biochemical studies have also
shown that most of the digestive enzymes are present in young larvae to digest the artificial
feed (Cahu and Infante, 2001). Therefore, artificial feeds are being improved rapidly to meet
the needs of larvae. But total replacement of live prey is still formidable for now. For this
reason, Artemia is still the most important live feed in the culture of new-born guppy and
highly important for a better growth, survival and stamina.
In this trial, the efficient use of Artemia and microparticulated feed were investigated.
According to the results Artemia supply to the fish increased the survival and stamina. As a
result, the use of Artemia on new-born guppy for the first 2 weeks after birth has been found
necessary for better survival and stress resistance.
REFERENCES
Başçınar, N. S. &amp;Çakmak, E., 2010. Utilization of Granule and Live Feed at Black Sea Trout
(Salmotruttalabrax PALLAS, 1811) Larvas: Comparison of Growth Performance. Kafkas
Univ. Vet.Fak.Derg. 16 (6): 915-920.
Callan, C., Jordaan, A. &amp; Kling, L.J., 2003.Reducing Artemia Use in The Culture of Atlantic
Cod (Gadusmorhua). Aquaculture 219, 585–595.
Copeman, L.A., Parrish, C.C., Brown, J.A. &amp;Harel, M., 2002. Effects of Docosahexaenoic,
Eicosapentaenoic and Arachidonic Acids on the Early Growth, Survival, Lipid Composition
and Pigmentation of Yellowtail Flounder (Limandaferruginea): a Live Food Enrichment
Experiment, Aquaculture 210, 285–304.
Çalım, Ç., 2010.Determination of Requirements of Artemia and Microencapsulated Diets as
Food for Goldfish (Carassiusauratus) and Guppy (Poeciliareticulata) larvae.ÇukurovaÜniv.,
Su Ürün. A.B.D., M.Sc. Thesis, Adana, 30pp.
Dagar, A., Zilberg, D., Cohen, Z., Boussiba, S. &amp; Goldberg, Inna K., 2010. Short-term
Dietary Supplementation with the Microalga ‗Parietochlorisincisa‘ Enhances Stress
Resistance in Guppies ‗Poeciliareticulata‘. Aquaculture Research, 2010, 41, 267-277.

309

�Evangelista, A. D., Fortes, N. R. &amp; Santiago, C. B., 2005.Comparison of Some Live
Organisms and Artificial Diet as Feed for Asian Catfish ‗Clariasmacrocephalus‘ (Günther)
Larvae. J. Appl. Ichthyol. 21 (2005), 437–443.
Fernando, A. A., Phang,V. P. G. &amp; Chan, S. Y., 1991. Diets and Feeding Regimes of Poeciliid
Fishes in Singapore.Asian Fish. Sci. 4, 99–107.
Giri, S.S., Sahoo, S.K., Sahu, B.B., Sahu, A.K., Mohanty, S.N., Mukhopadhyay, P.K.
&amp;Ayyappan, S., 2002. Larval Survival and Growth in ‗Wallagoattu‘ (Bloch and Schneider):
Effects of Light, Photoperiod and Feeding Regims. Aquaculture, 213:151-161.
Guppy Culture in Israel Using Closed System. Last Accessed on 3 1, 2012, from
http://aquafind.com/articles/guppy1.php
The Use of Clove Oil as a Fish Anaesthetic. Last Accessed on 3 5, 2012, from
http://www.akuademi.net/USG/USG2007/Y/y08.pdf
Kumar, D., Marimuthu, K., Haniffa, M. A. &amp;Sethuramalingam, T. A., 2008.Effect of
Different Live Feed on Growth and Survival of Striped Murrel‗Channastriatus‘ larvae. E.U.
Journal of Fisheries &amp; Aquatic Sciences 2008, Cilt/Volume 25, Sayı/Issue (2): 105–110.
Lim, L. C., Dhert, P. &amp;Sorgeloos, P., 2003.Recent Developments in the Application of Live
Feeds in the Freshwater Ornamental Fish Culture. Aquaculture 227 (2003) 319–331.
Sales, J. &amp;Janssens, G. P. J., 2003.Nutrient Requirements of Ornamental fish.Aquatic. Living
Resources, 16 (2003) 533–540.
Sorgeloos, P., Dhert, P. &amp;Candreva, P., 2001.Use of the Brine Shrimp, Artemia spp.In Marine
Fish Larviculture. Aquaculture, 200, 147-159.
Sales, J. &amp;Janssens G. P. J., 1993, Nutrition of Ornamental Fish. Aquatic Living Resources 16
(2003) 533–540.
Uslu, M., 2003, Determination of Suitable Feed Source Necessity of Blackmolly
(Poecilialatipinna)‘ on Larval and Juvenile Term.ÇukurovaÜniv., Su Ürün. A.B.D., M.Sc.
Thesis, Adana, 41pp.
Structural Characterization Of Iron Aluminide Coatings On Aisi 4140 Steel By Trd
Ugur Sen*, Eren Yılmaz, Saduman Sen
Sakarya University, Engineering Faculty, Department of Metallurgy and Materials, Esentepe
Campus, 54187, Sakarya- Turkey.
E-mail: ugursen@sakarya.edu.tr
Abstract
In the present study, structural characterization of iron aluminide coated AISI 4140 steel by
thermo-reactive deposition technique (TRD) in the powder mixture consisting of pure
310

�</text>
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              <elementText elementTextId="18763">
                <text>The Effects of Different Feeding Programmes on Growth and Survival Rates of Newborn  Guppy (Poeciliareticulata PETERS, 1859)</text>
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              <elementText elementTextId="18764">
                <text>Tolga , Sahin</text>
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                <text>In this trial, five feeding programmes were used to investigate the optimum feeding process of  new-born guppy in five treatment groups. For the study, fish were fed Artemia(nauplii) for 4  weeks (4A), microparticulated feed for 4 weeks(4MF), 1week Artemia+ 3weeks  microparticulated feed (1A+3MF), 2weeks Artemia + 2weeks microparticulated feed  (2A+2MF) and 3weeks Artemia + 1week microparticulated feed (3A+1MF) in related  treatment groups. At the end of the study differences in weight, length, survival and stress  resistance of the fish were calculated. According to the measurements, the best average  growth of19.94±0.161 mm length and0.0732±0.00120 g weightwas observed in the group fed  4MF (p&lt;0.05), whilst the worst average growth of17.74±0.088 mm lengthand0.0425±0.00061  g weight was observed in the group fed 4A (p&lt;0.05).There were significant differences  (p&lt;0.05) in average lengths of18.93±0.038 mm, 18.27±0.055 mm, 17.97±0.025mm in the  groups fed 1A+3MF, 2A+2MF and 3A+1MF respectively. The weights did not show any  differencewith0.0594±0.00032g and 0.0576±0.00026g between the groups 1A+3MF,  2A+2MF (p&gt;0.05),while the group 3A+1MF showed different live weight of  0.0490±0.00041g (p&lt;0.05) according to other treatment groups. The worst survival rates with  %88.14±0.74 has been obtained (p&lt;0.05) in the group fed 4MF while the survival rates has  been determined %97.78±0.00 in the group fed 3A+1MF, %97.04±0.74 in the group fed 4A  and in the group fed 2A+2MF, %91.85±0.74 in the group fed 1A+3MF respectively. There  were no significant differences between the groups fed 4A, 2A+2MF, 3A+1MF (p&gt;0.05)  while the groups 4MF and 1A+3MF showed significant differences (p&lt;0.05). According to  these results, the diet 4MF and 1A+3MF are not enough for a better aquaculture of new-born  guppy. Therefore, it is found in the trial that Artemia supply for the first 2 weeks after birth in  guppy are necessary for better survival and stress resistance.  Keywords:Poecilia reticulata, Artemia, Microparticulated feed.</text>
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