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

Gropp, Reint, Jukka Vesela, (2004), “Deposit Insurance, Moral Hazard and Market
Monitoring”, European Central Bank, Working Paper Series, No. 302.
Ioannidou, Vasso, P., M.F. Penas (2010), “Deposit Insurance and Bank Risk Taking:
Evidence from Internal Loan Ratings”, Journal of Financial Intermediation, Vol. 19, 95-115.
Keeley, M.C., (1990), “Deposit Insurance, Risk and Market Power in Banking”, The
American Economic Review, Vol. 80, No. 5, 1183-1200.
Leaven, L., R. Levine, (2008), “Bank Governance, Regulation and Risk Taking”, NBER
Working Paper Series, No: 14113.
Ng, Tuan Hock, Lim, Y.S., Tan N. L., (2010), “Deposit Insurance and Bank Risks: The Case
of Malaysia”, European Journal of Economics, Finance and Administrative Sciences, Issue
18, 19-27.
Ninimaki, J-P., (2000), “The Effects of Competition on Banks’ Risk Taking with and without
Deposit Insurance”, Bank of Finland Discussion Papers, No. 21.
Şıklar, İ, (2004), Finansal Ekonomi, Anadolu Üniversitesi Ya., No. 1588, Eskişehir.
Silva, Nancy (2008), “Deposit Insurance, Moral Hazard and The Risk of Runs”, Central Bank
of Chile Working Papers No. 478.
Wu, R-J, C-P, Chi, (2006), “Competition, Deposit Insurance and Bank Risk Taking”,
http://centerforpbbefr.rutgers.edu/2006/Paper%202006/16AS02-056-Chien-Ping%20Chi.pdf.
www.dpt.gov.tr
www.tbb.org.tr
Control of a chaotic finance system with passive control
Selçuk Emiroğlu, Yılmaz Uyaroğlu, Etem Köklükaya
Sakarya University, Electrical Electronics Engineering Department, Turkey
E-mails: selcukemiroglu@sakaryaedu.tr, uyaroglu@sakarya.edu.tr, ekaya@sakarya.edu.tr
Abstract
In this paper, complicated dynamical behavior of a finance system is investigated. The change
in behavior of finance system from stable behavior to chaotic behavior is shown with varying
some system parameters. In addition, chaotic finance system with passive control is
considered and the stability of the controlled system is investigated. In order to control the
chaos in finance system, the controller is designed based on passive control technique.
Designed controller is applied to the chaotic finance system for stabilization of system. After
controller is added to the system, the change in behavior of finance system from chaotic
behavior to stable behavior is shown with passive control.
Keywords: Chaotic finance system, chaos control, passive control

125

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

1. INTRODUCTION
In 1963, Lorenz found the first chaotic attractor, which is named as Lorenz chaotic system, in
a three dimensional autonomous system when he studied atmospheric convection (Lorenz,
1963). After Lorenz, many different chaotic systems are proposed in the past few decades
such as Rössler system (OE, 1976), Chen system (G. Chen, 1999), Lü system (C.X. Liu,
2004) and finance chaotic system (Guoliang Cai, 2007). However, when chaotic behavior is
sometimes undesirable, the chaotic behavior of system should be controlled. So, many
methods and techniques have been developed to control the chaotic systems such as OGY
method (E. Ott, 1990), sliding mode control (K. Konishi, 1998), adaptive control (Y.Zeng,
1997), and passive control (Yu, 1999; X. Chen, 2010; S. Emiroğlu, 2010).
In this paper, we study the complicated dynamic behavior and control of chaos in a nonlinear
finance chaotic system which was investigated by reference (Guoliang Cai, 2007). The state
equations of chaotic finance system are written below Eq 1. (Guoliang Cai, 2007)

x  z  ( y  a) x
y  1  by  x 2

(1)

z   x  cz
where variable x represents the interest rate in the model; variable y represents the investment
demand and variable z is the price exponent. The parameter a is the saving. b is the perinvestment cost. c is the elasticity of demands of commercials. And they are positive
constants.
Mathematical model of a finance system is constructed by using Matlab-Simulink program as
shown in Figure 1.
u

2

x

z

y
1

1
s

1
s

x
z
1
s

a
b

c
y

Figure 13 Matlab-Simulink model of finance system
By using Matlab - Simulink model of finance system, chaotic time series and phase portraits
of the system is shown in Figure 2.

126

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

Figure 14 Phase portraits of the system
2. THE THEORY OF PASSIVE CONTROL
Consider a nonlinear system (2) modelled by ordinary differential equation with input vector
u(t) and output vector y(t) (Yu, 1999),

 x  f ( x)  g ( x)u,

 y  h( x),

(2)

m
n
m
where the state variable x   , the input u   and the output y   . f(x) and g(x) are
smooth vector fields. h(x) is a smooth mapping. We suppose that the vector field f has at least
one equilibrium point and without loss of the generality, we assume the equilibrium point
x=0.

Definition 1. System (2) is a minimum phase system if Lgh(0) is nonsingular and x=0 is one
of the asymptotically stabilized equilibrium points of f(x).
Definition 2. System (2) is passive if the following two conditions are satisfied:
(1) f(x) and g(x) exist and are smooth vector fields, h(x) is also a smooth mapping.
(2) For any

, there is a real value β that satisfies the inequality

127

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

t

u

T

( ) y( )d   ,

(3)

0

or there are real values β and
t

t

0

0

that satisfy the inequality

T
T
 u ( ) y( )d     y ( ) y( )d ,

(4)

When we let z  (x) system (2) can be changed into the following generalized form

 z  f 0 ( z )  p( z, y) y,

 y  b( z, y)  a( z, y )u,

(5)

where a( z, y) is nonsingular for any (z, y).
If system (2) has relative degree [1,1, ...] at x = 0 and system (1) is a minimum phase system,
then system (5) will be equivalent to a passive system and will be asymptotically stable at
equilibrium points through the local feedback control as follows:

u  a( z, y) 1[b T ( z, y) 

W ( z )
p( z, y)  y  v]
z

f ( z)
where W (z ) is the Lyapunov function of 0 ,
signal which is connected to the reference input.

(6)

is a positive real value, and

is an external

3. CHAOS CONTROL OF CHAOTIC FINANCE SYSTEM
In this section, the control of chaotic system (7) is achieved using passive control theory. The
controlled model given by

x  z  ( y  a) x
y  1  by  x 2  u

(7)

z   x  cz
The controller is designed based on passive control theory (Yu, 1999). The controller is
shown in Eq. 8 and also controlled system is written in Eq. 7.

u  1  y(b   )  v

(8)

Time series of system and controlled system are shown in Fig. 3. After the controller is
activated at t=300s, the system converges to zero equilibrium point as shown in Fig. 3.

128

�4

4

2

2

0

0

x

x

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

-2

-2

-4

-4
0

100

200

300

400

500

0

100

200

4

4

2

2

0

0

400

500

300

400

500

300

400

500

-2

-2

-4

-4
0

100

200

300

400

0

500

100

200
t(s)

t(s)
2

2

1

1

0

0

z

z

300
t(s)

y

y

t(s)

-1

-1
-2

-2
0

100

200

300

400

0

500

100

200
t(s)

t(s)

(a)

(b)

Figure 15 x, y and z time series of (a) system, (b) controlled system
Figure 16 x, y and z time series of (a) system, (b) controlled system
4. CONCLUSION
We investigate chaos control of a 3D chaotic finance system via passive control method in
this paper. Based on the passive system theory, passive controller is proposed to realize the
global asymptotical stability of the 3D chaotic finance system. Finally, numerical simulations
are provided to verify the theoretical analysis and also show that the proposed method works
effectively.
REFERENCES
C.X. Liu, e. a. (2004). A new chaotic attractor. Chaos, Solitons &amp;Fractals, Vol.22, No.5 ,
1031–1038.
E. Ott, C. G. (1990). Controlling chaos. Phys.Rev.Lett.,vol.64 , pp.1196-1199.
G. Chen, T. U. (1999). Yet another chaotic attractor. Int. J. Bifurcation and Chaos, Vol.9,
No.7 , 1465-1466.
Guoliang Cai, J. H. (2007). A New Finance Chaotic Attractor. International Journal of
Nonlinear Science Vol. 3 (2007) No. 3 , pp. 213-220.
129

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

K. Konishi, M. H. (1998). Sliding mode control for a class of chaotic systems. Phys. Lett. A,
vo1.245 , pp.511-517.
Lorenz, E. ( 1963). Deterministic non-periodic flows. J. Atmos.Sci., Vol.20, No.1 , 130–141.
OE, R. (1976). An equation for continuous chaos. Phys. Lett. A,;57 , 397–398.
S. Emiroğlu, Y. U. (2010). Passivity based Chaos Control of the T System,. IMS 2010 (s.
118-125). Sarajevo, Bosnia Herzegovina: International University of Sarajevo.
X. Chen, C. L. (2010). Passive control on a unified chaotic system. Nonlinear Analysis: Real
World Applications 11 , 683-687.
Y.Zeng, S. N. (1997). Adaptive control of chaos in Lorenz system. Dynamic Contr., vol. 7 ,
pp 143 - 154.
Yu, W. (1999). Passive equivalence of chaos in Lorenz system. IEEE Trans.Circuits Syst. I,
vo1.46, no.7 , pp.876-878.

Synchronization of a chaotic finance system via active control
Zekeriya Özdemir, Selçuk Emiroğlu, Yılmaz Uyaroğlu
Sakarya University, Electrical Electronics Engineering Department, Turkey
E-mails: zozdemir@sakarya.edu.tr, selcukemiroglu@sakarya.edu.tr,
uyaroglu@sakarya.edu.tr
Abstract
This paper discusses chaos synchronization of the three dimensional finance system based on
active control technique. Using active control theory, chaos synchronization of three
dimensional chaotic finance system is realized with three input. The designed controllers
ensure the stability of error dynamical system between two identical chaotic finance systems.
Also, the controllers provide that the error dynamical system converges to zero equilibrium.
Numerical simulations show that the proposed method is effective for chaotic finance system.
Keywords: Chaotic finance system, chaos synchronization, active control
1. INTRODUCTION
Since the control of chaotic systems is firstly proposed by Ott, Grebogi and Yorke, chaos
control has become one of the much interesting research subject. Also, chaos synchronization
has received a huge increasing interest and has been studied in the past two decades, after
Pecora and Carroll introduced the synchronization method. Recently, many control methods
are proposed to the control and the synchronization of the chaotic systems. The control
strategies applied to control and synchronization of chaos such as OGY method (E. Ott, C. G.
1990), linear feedback control (A.E. Matouk, 2008), passive control (S. Emiroğlu and Y.
Uyaroğlu, 2010; X. Chen, C. L. 2010), active control (S. Emiroğlu, Y. Uyaroğlu, 2011) etc..

130

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                <text>In this paper, complicated dynamical behavior of a finance system is investigated. The change  in behavior of finance system from stable behavior to chaotic behavior is shown with varying  some system parameters. In addition, chaotic finance system with passive control is  considered and the stability of the controlled system is investigated. In order to control the  chaos in finance system, the controller is designed based on passive control technique.  Designed controller is applied to the chaotic finance system for stabilization of system. After  controller is added to the system, the change in behavior of finance system from chaotic  behavior to stable behavior is shown with passive control.  Keywords: Chaotic finance system, chaos control, passive control</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012,
Sarajevo

Ackerman T., Söder, L., An Overvief of Wind Energy - Rewiews Status 2002,
Renewable and Sustainable Energy Rewiews, Vol. 6, 67-128 p.,2002.
AWS Scientific Inc., Wind resource assessment handbook, National Renewable
Energy Laboratory, 1997.
Aydın, İ., Yılmaz, S.S., The determination of dominant wind speed to increase
efficiency of wind energy in Manisa province, 1st International Conference on
Architecture and Urban Design, 19-21 April., Tirana-Albania, 2012.

Environmental Welding: The Friction Stir Welding
Selim Sarper Yilmaz1, Bekir Sadık Ünlü2, İbrahim Aydin2
1Celal Bayar University, Vocational High School, Department of Machinery,
45020, Manisa, Turkey
2Celal Bayar University, Faculty of Engineering, Mechanical Engineering,
45040, Manisa, Turkey
E-mails: selim.yilmaz@cbu.edu.tr, bekir.unlu@cbu.edu.tr,
ibrahim.aydin@cbu.edu.tr
Abstract
In this study, microstructural and mechanical properties of pure aluminum joined
by friction stir weldingusing different parameters were investigated.
Hardness, tensile, bending and impact mechanics tests were applied to the
welded samples.In addition, optical and SEM tests were carried out. The effects of
the welding progress rate on the microstructure and mechanical properties were
investigated in these materials.Then, the optimal conditions for friction stir
welding were determined for pure aluminum.
Keywords:Friction stir
welding, aluminum alloy, microstructure, mechanical properties.
1. INTRODUCTION
Aluminum metal and its alloys are economical and attractive material due to their
superior mechanical properties. These features include the appearance,
lightness, ease
of production, physical and
mechanical properties and corrosion strength.
Aluminum is
known
for two mechanical properties; namely, lightness and corrosion resistance. The
weight of aluminium is approximately a third of the same volume
steel, aluminum, copper or brass and its specific gravity is 2.7 g/cm3.
Aluminum
has
an
excellent
atmosphere, water, salt water, oil
6

corrosion
resistance
against
and many chemicals.

the
In

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

addition, electrical and thermal conductivity of aluminum is superior. In addition,
the strengths of some aluminum alloys are higher than strength of structural steels
(ASM Metals Handbook, 1979).
Friction stir welding (CCT) is a solid-state welding technique developed
bythe Welding Institute (Cambridge, United Kingdom) in 1991 and is used for the
combination of the non-ferrous metals and alloys. Although friction stir welding
can be used to combine a large number of materials, the first studies and the
industrial interest have focused on the combination of aluminum alloys.
Friction stir welding has become an important and rapidly developing welding
technique in combining these alloys (Boz and Kurt, 2004; Fonda, Bingert and
Colligan, 2004; Somasekharan and Murr, 2004; Meran, 2006)
In friction stir welding, tools which are cylindrical, rotating, inexhaustible, and
hard, has got a tip in thecenter and is composed of a shoulder. The tip of the
tools is firmly immersed in between the two workpieces to be welded and brought
forehead to forehead firmly. During the welding, while the tip is going forward in
a rotational movement, the shoulder moves towards the welding in contact with
the upper surface (Meran, 2006; Ericsson, 2005; Smith, Hinrichs; Crusan and
Leverett 2003; Butlerworth-Heinemann,2001; Staron,Koçak, Williams and
Wescott, 2004).
Friction stir welding of welding connections found in the welding region is a
typical form
of onion
rings and weld
metal, as the
format consists
of many variables. This format depends on the type of alloy being welded and the
parameters of welding process (Özsoy and Kaluç, 2002).
The
position
of
the half-circles on
the
surface of
the
tool during rotation and forward movement provides necessary heat for the
welding and pushes hot metal on the surface and appears to stay on the surface.
The continuous nature of welding provides the consistency of semi-circular rings
and the distance between the rings is equal to the distance the tool travels during
one rotation. The material is pushed towards the sides and back in a semicircular ring during each rotation of the tool. There is more mixing near the upper
surface. All these results lead the researchers to the idea that the process
mentioned is an extrusion process (Mert and Kaluç2003). Although the
main material or the material resistant to heat is far from the welding point, they
are affected by the thermal cycle of the process. But this does not affect the
microstructural or mechanical properties(http://tech.plymouth.ac.uk/sme/UoA30/
Weld_Microstructure.PDF).
The objectives of this study are to investigate mechanical properties of pure Al, to
study the hardenability of welding region and the region under the heat effect, to
further investigate internal structures of these regions and the resistance value of
welded parts.
2. EXPERIMENTAL STUDIES
Plates of 5 mm x 110 mm x 300 mm size were processed using an universal
milling machine. Afterwards, 8 mm thick base material was placed on the milling
table. After clamping the plates to be joined on the metal sheet base, the material
7

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

was ready for welding process. The mechanical characteristics of the materials
used in the experiments are summarized in Table 1.
Table 1. Mechanical properties of materials used in the experiments
Material

Pure

Tensile
Strength
(MPa)

Break
Elongation
(%)

R0.2 Yield
Strength

105

40

25

Hardness
(HV)

(MPa)
20

In the experiments, tip geometry of the material and revolution per minute
was kept constant, but, travelling speed of the tip was varied (Table 2).
Table 2. Friction stir welding parameters
Material

Pure

Spindle Speed
(rpm)

1250

Traveling Speed
(mm/min)
20
40
63

After cleaning the surface ofthe plates to be joined with the help of bind mold
head to head, friction stir welding was successfully realized. There was neither
distortion nor deformation ofwelded plates after joining process.
Tensile tests were applied to determine the maximum stress values of plates of
welded joints. The tensile samples prepared in accordance with DIN 50109 as
shown in Figure 1 were processed perpendicularly to the welding direction of the
sheets in a CNC milling machine. The tensile tests were carried out at across head
speed of 2 mm/min using an Universal Testing Machine (AG- 50kNG Shimadzu
Autograph, Japan). True stress and strain curves were determined by computer
connected to the device. Threepoint bend tests at 180° were conducted at a
bending speed of 10 mm/min.

8

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

Fig.1. Samples prepared for tensile test and subsequent measurements
For optical microscope examinations, samples from the base material and welding
region were taken out, before and after welding process. Samples measuring 10 x
20 x 5 mm were cut. The surfaces of the samples were polished by means of
abrasives having a 220, 400, 600, 800 and 1200 grid, respectively. After the
process ofthe last polishing the materials with 10 micron alumina polish, the
sample surfaces were etched in Keller solution with 2 ml hydrofluoric acid (HF),
10 ml nitric acid (HN03) and 88 ml water immersion for 12 seconds. Henceforth,
the structural changes occurring in the junction area were determined. In the
analysis of samples, an optical microscope (Nikon Eclipse U50, Japan) was used.
3. RESULTS AND DISCUSSION
3. 1. Mechanical Properties
Figure 2 shows the microhardness results of pure aluminum groups.
70
60
50
40

1-I

30

1-II

20

1-III

10
0
-9 -8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9

Fig.2. Microhardness distribution of pure aluminum
When hardness of all samples was examined, four different regions of hardness
distribution were found to change significantly. Hardness values of the samples
joined by friction stir welding were higher than those of the base material.

9

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

The samples broke in the HAZ (heat affected zone) region adjacent to the weld
seam, as the tensile tests were applied to the welds. This region was identified as
the thermo-mechanically formed region under the influence of the welding heat.

Maximum Tensile Strength
(N/mm2)

The results of the tensile tests are given in Figure 3.

120
100
80
60
40
20
0
1

2

3

Traveling Speed (mm/min)

Fig.3. Maximum tensile strength distributions for pure aluminum
The tensile strength of pure aluminumdecreased with an increase in welding
speed. The reason was that low heat input of HAZ due to increasing travelling
speed caused largedecreases in the HAZ width, the samples experienced fewer
necks which could cause decreases in tensile strength. This was not the case for
pure aluminum. The highest tensile strength for pure aluminum was observed at
the 20 mm/min travelling speed.

Maximum Bending
Strength (N/mm2)

As a result of bending tests, no failure occurred in the weld region. The results of
bending test are given in Figure 4.

195
190
185
180
175
170
165
160

20
63
40

1

2

3

Traveling Speed (mm/min)

Fig.4. Aluminum bending test results for pure aluminum
Charpy test results of pure aluminum welds are given in Figure 5.

10

�Notch Impact
Strength (Joule)

3rd International Symposium on Sustainable Development, May 31 - June 01 2012,
Sarajevo
50
40
30
20
10
0
1-I

1-II

1-III

Traveling Speed (mm/min)

Figure 5. Charpy test results for pure aluminium
For the Charpy notch impact test, a standard test device with a capacity of 300
Joule was used. A 2 mm deep notch with a 450 angle was opened in the middle of
the specimens which measured 55 x 10 x 5 mm due to the dimensions of the
friction stir welded plates.
3. 2. Microstructure Properties
The schematic cross-section of a typical friction stir weld shows four distinct
zones which are illustrated in Figure 6, as reproduced from another study. Friction
stir welding is a solid state welding method which produces joints below the
melting temperature. Friction stir welding produces a very narrow he at affected
zone compared to other welding methods, because not very high temperatures are
involved in this process.

RCR
HAZ
BM

TMAZ

Fig. 6Macrostructure of the friction stir welding
These areas are the dynamical recrystallized region (RCR), the thermomechanical affected zone (TMAZ), the heat affected zone (HAZ) and the base
material (BM). The following four different regions were thus determined
throughout the experiments:
A: base material
B: he at affected zone (HAZ)
C: thermo-mechanical affected zone (TMAZ)
D: dynamically recrystallized zone (DXZ)
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Sarajevo

In the DXZ, the grains become smailer as a result of severe deformation and
extrusion, whereas in thermo-mechanical affected zone (TMAZ), the grains were
observed to grow gradually. The fine-grained structure of the dynamical
recrystallized zone (DXZ) contributed to strength and hardness improvement after
welding. The cause of changes in the structures of grain is associated with the heat
of friction.
When the number of revolutions was kept constant and the traveling speed was
increased, in the buffer zone, the widths of the mix of bands gradually increased.
This case can be related to the amount of material transported per unit time and
increasing travelling speed.
This region of intense plastic deformation and high friction temperature is called
as "dynamical recrystallized zone" or "welding center". Dislocation density is
lower and thinner in this region and it is composed of oriented grains. In the
friction stir welding applications of similar types of alloys, this region resembles a
pool of onion rings. The TMAZ zones are shown in the Figures 7, 8.

Fig.7. The microstructural zones of pure aluminium after welding

Fig. 10. Fracture surfaces pure aluminium

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Sarajevo

4. CONCLUSIONS
The following conclusions can be drawn from the present investigations ofpure
aluminiumtypes:
Micro-structural analysis indicated an expansion in the size of the heat affected
zone with reduced travelling speed.
In the dynamical recrystallized zone, the grains became smaller as a result of
severe deformation and extrusion while in the thermo-mechanical affected zone,
the grains were observed to grow gradually.
The travelling speed of 40 mm/min produced the best microhardness, bending,
tensile and Charpy test results for all the samples studied, and thus, has to be regarded as the optimum travelling speed.
After complete bending, no microcracks were observed in the weld zones
REFERENCES
ASM Metals Handbook(1979). Properties and Selection: Nonferrous Alloys and
Pure Metals, American Society for Metals, Metals park, Ohio.
BozA.,KurtA.(2004). The influence of stirrer geometry on bonding and
mechanical properties in friction stir welding process.Materials and Design(25),
343–347.
FondaR. W.,BingertJ. F., ColliganK. J.(2004). Development of grain structure
during friction stir welding. Scripta Materialia(51), 243–248.
SomasekharanA. C.,MurrL. E.(2004). Microstructures in friction-stir welded
dissimilar magnesium alloys and magnesium alloys to 606l-T6 aluminum
alloy.Materials Characterization(52)49–64.
MeranC.(2006). The joint properties of brass plates by friction stir
welding.Materials and Design(27)719–726.
Ericsson M.(2005). Fatigue strength of friction stir welded joints in
aluminum.Ph.D Thesis, Royal Institute of Technology. Sweden.
SmithC. B.,HinrichsJ. F., CrusanW. Leverett(2003). FSW stirs up welding
process competition.Forming &amp; Fabricating(2)25–31.
David J. E.,(2001). Ship Construction, 5th Edition, Butlerworth-Heinemann, India
StaronP.,KoçakM., WilliamsS., WescottA(2004).Residual stress in friction stirwelded Al sheets, Physica B(350) 491-493.
ÖzsoyM.,KaluçE.(2002). Sürtünen eleman ile birleştirme kaynağının esasları,
Mühendis ve Makine Dergisi (513)21-35 (in Turkish).

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Sarajevo

MertS.,KaluçE. (2003). Sürtünme karıştırma kaynağında kullanılan takımlardaki
gelişmeler.TMMOB Makine Mühendisleri Odası Kaynak Teknolojisi IV.Ulusal
Kongresi Bildiriler Kitabı, 103-ll5 (in Turkish)
http://tech.plymouth.ac.uk/sme/UoA30/ Weld_Microstructure.PDF

Investigation Of Fracture Toughness Of Calcium Phosphate Coating
Treated Onto Ti6A14V Substrate
İbrahim Aydın1, Hakan Cetinel2, Ahmet Pasinli3
1Celal Bayar University, Vocational Collage, Machine Programme
Manisa, Turkey
2Celal Bayar University, Faculty of Engineering, Mechanical Engineering
Manisa, Turkey
3Ege University, Vocational Collage, Machine Programme
İzmir, Turkey
E-mails: ibrahim.aydin@bayar.edu.tr, hakan.cetinel@bayar.edu.tr,
ahmet.pasinli@ege.edu.tr
Abstract
In this study, we aimed to investigate the fracture toughness of the calcium
phosphate (CaP) coating, that was formed with Vickers indentation method, by
the new method with the new patent. The activation process was done with NaOH
+ H2O2 on the Ti6Al4V material surface. Elasticity module, hardness values and
coating thickness of the CaP coating that is formed by activation process was
calculated. SEM micrographs and EDS analysis were gathered of the coating.
Fracture toughness was determined by Vickers indentation. At the end of this
study, fracture toughness (K1C) value for the CaP coating on Ti6A14V that was
activated by NaOH+ H2O2 was found to be 0.43 MPa m1/2.
Keywords: Calcium phosphate, coating, vickers indentation, fracture toughness
Ti6Al4V.
1. INTRODUCTION
Titanium alloy (Ti6Al4V) hip prosthesis is a material used in orthopedic implant
production just as widely as bone plates and bone screws (Hench, 1991).
Hydroxiapatite (HA) coatings are used in Ti6Al4V alloys in implant materials in
14

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                <text>In this study, microstructural and mechanical properties of pure aluminum joined  by friction stir weldingusing different parameters were investigated.  Hardness, tensile, bending and impact mechanics tests were applied to the  welded samples.In addition, optical and SEM tests were carried out. The effects of  the welding progress rate on the microstructure and mechanical properties were  investigated in these materials.Then, the optimal conditions for friction stir  welding were determined for pure aluminum.  Keywords:Friction stir  welding, aluminum alloy, microstructure, mechanical properties.</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

TERZIOVSI, M., SOHAL, A., MOSS, S.,(1999) “Longitudinal Analysis Of Quality
Management Practices in Australian Organizations”, Total Quality Management, Vol:10,
NO:6, s.915-926.

YANMAZ, Ö., (2005). ‘‘Hastane İşletmelerinde Kalite Fonksiyon Göçerimi’’, Ahmet Yesei
Üniversitesi, İşletme Yüksek Lisans Tezi,

YÜKSEL, F., SADAKLIOĞLU, H. (2007). “Sağlık Hizmetlerinde Kalite ve Yerel
Yönetimler”,Uluslararası Sağlık ve Hastane Yönetimi Kongresi, 01-03 Haziran 2007 Yakın
Doğu Üniversitesi Lefkoşa Kıbrıs

ZERENLER, M., Öğüt, A., (2007). "Sağlık Sektöründe Algılanan Hizmet Kalitesi ve Hastane
Tercih Nedenleri Araştırması: Konya Örneği", Selçuk Üniversitesi Sosyal Bilimler Enstitüsü
Dergisi, Sayı:18, s.35-40.

Sustainable Security: The Role of Promoting Democracy and Protecting Human Rights

Selim Kanat1, Bahadır Eser2
1Vise Chairman of Dept. of International Relations.
Suleyman Demirel University. I.I.B.F Oda no. 210
Isparta/Turkey
2Dept of Public Administration
Suleyman Demirel University. I.I.B.F Oda no. 209
Isparta/Turkey

Abstract

Today’s security threats are more complex than traditional ones, such as HIV, climate
change, human rights violations, anti-democratic laws and measures forced us to think about
the definition and the context of security again. With the effect of these new threats,
sustainable security concept emerged from a post- Cold War multi-disciplinary understanding
of security. Sustainable security redefines how we think about national security in today's
shifting, after Cold War era. Struggling with these new threats, especially struggling with
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terrorism requires new approaches to security. The traditional understanding which predicts
balancing human rights and security measures is not valid anymore. In today’s security
understanding promoting democracy and protecting human rights are not causes of insecurity,
contrarily terrorism, which considered as the greatest threat to world security after Sept 11,
wants to create a “police state” to find support their own ideology. Further more terrorism
aiming to demolish democracy and human rights in society; with this, life become insecure,
state become more totalitarian and terrorist acts become more reasonable. For this
characteristic, terrorism called the “disease of democracies”. For this reason promoting
democracy and protecting human rights are the key elements of sustainable security
especially in struggling terrorism

Keywords: Sustainable Security, Human Security, Terrorism, Sept. 11, Human Rights,
Democracy.

1.Traditional Approaches towards Security.
From traditional view, national security effectively can maintain only with military means.
Protecting boarder lines via strong and destructive armies is typical way of ensuring security.
Traditional approaches to national or international security are dominated by political realism
in practical level, but also traditional approaches to security find its philosophical basis in
Hobbes’ minds. For Hobbes maintaining security is the basic reason of formation of the state
(Hobbes, 1651, pp. 103-107). Because, state of nature is insecure and anarchical for
individuals. Every men gives up his some basic freedoms, and rights which he has naturally
in the state of nature, simultaneously and permanently to being secure under the rule of
commonwealth (Kanat, 2011, p. 124-125). So in traditional approaches if a one want being in
secure, he should give up some basic freedoms and rights which he already has. For this
understanding security and freedoms are two controversial concepts which have to be
balanced.
This philosophical opinions, found its modern application basis after the The Peace of
Westphalia. Under the logic of Westphalia system the security of the state is “being secure of
border, territory and the sovereignty of the state and for this holding the military capacity and
political power of the state in the possible highest level” (Bislev, 2004, p. 282). State has a
central position about security issues in traditional understanding. (Bilgin, 2002, 102).
Ensuring the security of the state is the primary goal of the government. For this, some rights
of the individuals can be sacrificed.
After the World War II traditional approaches toward security has adopted by political
realism, and security studies began as an independent field of study, but was absorbed as a
sub-field of international relations (Buzan &amp; Hansen, 2009, p. 1). Similarly ensuring the
security of the state should be the primary goal of a government. In international level,
security can be maintained by military force and “balance of power” politics. Also in realist
thought, balance of power is the key element of traditional approaches towards international
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security during the Cold War era. Kenneth Waltz, a major contributor to neorealism
underlines the importance of “balance of power” approach. He expressed in his book,
"Theory of International Politics" that "if there is any distinctively political theory of
international politics, balance-of-power theory is it."(Waltz, 1979, pp.13-16)
According to Morgenthau, who is regularly identified as the father of modern realism, and the
precursor of neoclassical realism, within a balance of power system, a state may choose to
engage in either balancing or bandwagoning behavior. (Morgenthau,1948, pp. 125-134). In a
time of war, also in an anarchical structure of the relations between states, the decision to
balance or to bandwagon may well determine the survival and the security of the state. For
traditional view every state should behave individually to maintain own security, because in
an anarchical nature, everyone is an enemy for everyone and a state or a man can’t trust to
another. This situation is a result of mercenary and selfish character of human nature.
(Neacsu, 2009, pp. 54-56) Morgenthau points to the limitless character of humans’ lust
for/will to power: while man’s vital needs ‘are capable of satisfaction’, the lust for power
‘would be satisfied only if the last man became an object of his domination, there being
nobody above or beside him, that is, if he became like God’ (Morgenthau, 1948, p. 165). As
Morgenthau maintains, ‘the selfishness of man has limits; his will to power has none’
(Morgenthau, 1948, p. 165)
For the anarchical structure of international relations, threats towards security are usually
generated by enemy states or enemy groups like terrorist organizations or criminals in
domestic level, from traditional view. Every state must be powerful and ready to being in a
possible war every time. Because everyone and every state has a “will to power” (Jütersonke,
2007, p. 101). We can see this understanding in maintaining security in Cold War era. States
generally maintain their security via strong armies, establishing or joining alliances and
conventional-nuclear weapons in international level.
Traditional security relied on the anarchistic balance of power, a military build-up between
the two superpowers, and on the absolute sovereignty of the nation state. (Owen, 2004, p.
16). Under the “balance of terror” and nuclear deterrence, states takes the security of the state
as a prior issue and push some freedoms and rights like right to live in a clean environment
which people have against state, in to the background. Because, during the Cold War, the
issues about national security have seen as “high politics” (Waltz, 1970, p.212) and the
politics which aims to improve welfare and wealth in cooperation have seen as “low politics”
(Gürkaynak &amp; Yalçıner, 2009, p. 78). But with the end of Cold War old type of security
threats lose their importance in ensuring national security. World have faced new threats
which endanger human life, like climate change, and this new threats can be solved in
cooperation. So, states forced to expand the scope of security. Ensuring welfare and wealth,
protecting human life and right became an element of national security, and also “high
politics”
2.Emerge of Sustainable Security Concept.
Sustainable security redefines how we think about national security in today's shifting, after
Cold War era. Also this post-Cold War debate about security has been the issue of
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broadening the concept from its Cold War norms. One harbinger of this, from within
neorealist International Relations, was Barry Buzan’s People, States and Fear, written in the
early 1980s (Booth, 1997, p. 86). Buzan emphasis that although the military-oriented
approaches to the security, during the 1970’s economic and environmental concerns started to
rising up (Buzan, 1991, p. 4). With the finish of the Cold War era, traditional security
understanding has been started to be questioned. The opportunity for a new global order,
based on protecting humans rather than states, presented new hope.( Bedeski, 2007, p. X).
With the collapse of Soviet Union and Eastern Block, the old type of enemies has been
collapsed simultaneously all over world. Rapid change of international system, the
globalization process, the reduced threat of nuclear war between superpowers and the emerge
of complex new threats such as HIV, climate change, human rights violations, antidemocratic laws and measures forced us to think about the definition and the context of
security again (Mcrae, 2001, p.22.). With the effect of these new threats, we can say that
sustainable security concept emerged from a post- Cold War multi-disciplinary understanding
of security.
Sustainable security focuses on the interconnected, long-term causes of insecurity around the
world. We can say climate change, competition over resources, marginalization of the
majority world, global militarization as threats for sustainable security. Sustainable security
promotes a comprehensive, systemic approach to maintain the safety of the entire world
people. It also places particular attention on how the current behaviour of international actors
and western governments is contributing to, rather than reducing, insecurity. The politics of
the states, which has described according to national interests, creates insecurity rather than
security. Sustainable security goes beyond analysis of threats to the development of a
framework for new security policies.
From this perspective, sustainable security concept also refers to human security
understanding as well. Because sustainability in security, can not be achieved with pushing
people and their minds into the background. States can not be secure notwithstanding
insecurity of its people. Also, if we think about origins of state, all we should agree that
human security is the primary purpose of organizing a state in the beginning as Hobbes,
Locke, Rousseau concluded (Owen, 2004, p. 16- 17). Human security offers much to this
vibrant field of sustainable development. Most notably, human security—like human
development—highlights the social dimension of sustainable development’s three pillars:
environment, economy, society (Khagram &amp;Clarck &amp;Raad, 2003, p. 290)
If we mention about sustainability in security we have follow the foresights of human
security understanding. Human security derives from the traditional concept of security from
military threats to the safety of people and communities.(Tadjbakhsh &amp; Chenoy, 2007, p. 81,
228). Because the nature of the conflicts has been changed. During the Cold War, in conflict
analyses, there was no room for people. But in recent decades, this trend has been changing.
Take for example the armed conflicts of Rwanda, Sierra Leone, Afghanistan, East Timor,
Macedonia, Kosovo, Bosnia, and the international terror organizations that target the western
world. (Gough, 2002, p. 145)
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For “Human Development Report” of United Nations human security is an extension of
mere existence (survival) to well-being and dignity of human beings. 1994 Human
Development Report of United Nations Development Programme can be considered
milestone publication about human security and also sustainable security. Report defines
security as “freedom from fear” and “freedom from want”( Human Development Report
1994). As a result of this almost everything which endangers human life and standards can be
consider a threat in this understanding. For this reason there is no single definition of human
security, and also there is no single and constant definition of threats to security. Today
global warming and climate change can be consider as a threat, but tomorrow the greatest
threat would be lack of clean water sources. But we can say that the definition varies from a
narrow term of prevention of violence to a broad comprehensive view that proposes
development, human rights and traditional security together. Human security argues that the
core target of national security should be individual rather than state. Human security is the
life-safety of individuals. In other words human security put the human in the center of
security debates (Thakur, 2003, p. 347). In this context it has a human-centered view of
security, that necessary for national, regional and global stability and peace in today’s world.
With a general discourse, human security offers a critique of and advocates an alternative to
the traditional state-based conception of security. Essentially, it argues that the proper
referent for security is the individual and that state practices should reflect this rather than
primarily focusing on securing borders through unilateral military action. Because the threats
to human well-being are undoubtedly greater in number and scope today than when the
United Nations system came into being in 1945. The scale of security challenges has ‘‘blown
out’’ as a consequence of rapid population growth and the increased sophistication of
communications and weapons technologies, which in turn has quickened the pace at which
security threats can be transmitted within and across national boundaries ( Battersby &amp;
Siracusa, 2009, p. 9)
Furthermore some threats which endanger individual security can and also should be solved
in cooperation. Because, sometimes the nature of the threat requires this. For instance climate
change, environmental pollution are global security problems, and all states should struggle
them in cooperation. For this reason, the human security approach is said to be that the
traditional conception of security is no longer appropriate or effective in the highly
interconnected and interdependent modern world in which global threats such as poverty,
environmental degradation, and especially terrorism supersede the traditional security threats
of interstate attack and warfare.

3.New Security Threats: Terrorism and Sustainable Security
With the end of Cold War, old types of treats have lost their importance in maintenance
national security. Because world was not divided any more and enemy states faced
simultaneously new same treats. For example climate change began to be seen as the mother
of all security problems (Brown &amp; Hammill &amp; McLemman, 2007, 1141). Like that;
environmental pollution, failed states, international piracy become more important than
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before. But as an international threat, terrorism has the biggest effect on security after the
Cold War. Especially after Sept. 11 terrorism became the major threat to international
security.
But actually terrorism isn’t a new type of treat. This type of violence has been used for ages.
We can see first samples of modern terrorism in first-century Palestine. The history of
terrorism back almost 2000 years ago when the Jewish resistance group known as SicariiZealots (AD 66–72) “carried out terrorist campaigns to force insurrection against the Romans
in Judea.(Garrison, 2003, p. 44) The Zealot sect was one of the very first groups to practice
systematic terror of which we possess a written account (Chaliand &amp; Blin, 2007, p.55). The
Zealot sect, also known in Latin as Sicarii, use terrorism to create terror in their enemies’
minds. They murdered their enemies and even innocent victims to achieve their own political
aims with creating terror and fear. Their acts were symbolic to give messages to public.
Sicarii’s can be accepted first group which use terrorism toward authority.
After Zealots, we can mention Assasins, which use violence as a weapon for their political
aims too. The Assassins were an order of Nizari Ismailis, particularly those of Persia and
Syria that formed around 1092. Posing a strong military threat to Sunni Saljuq authority
within the Persian territories, the Nizari Ismailis captured and inhabited many mountain
fortresses under the leadership of Hassan-i Sabbah (Combs &amp; Slann, 2007, pp 47-48).
We can increase the number of pre-examples but all these are in the same side of violence:
towards to authority. However the first case study of “state terror” have seen after the French
Revolution, with Robespierre administration. Robespierre use terror to maintain
administrative stability after the revolution. He used terror to defeat probable opposite
revolution. The historical study of terrorism largely focused on the French Revolution and the
reaction to it. The “Reign of Terror” and the activities of the Committee of Public Safety
provided the foundation for the study of modern terrorism with the emphasis on how states
engaged in “terrorism from above,” “regime terrorism” and “state terrorism”(Sloan, 2008,
pp.4-5). But at that time Robespierre sees terrorism as a rational and virtuous policy, and as
necessity to protect revolution and state. He said that “virtue without which terror is fatal,
terror without which virtue is impotent” (Herbst, 2003, p. 164).
Before the next evolution of the concept, we mention World War II and Cold War period,
world have testified Nazis’ and Fascists’ state terrorism. Mussolini and Hitler use terrorism to
suppress opposition and strengthen their authority (Kanat, 2011, p.87). Historians estimated
that five- six million Jews were tortured and killed during the Hitler’s administration, also
named Third Reich (Laqueur &amp; Baumel, 2001, p.xiv). After the World War II, states gathered
around two super power and world dived as West and East. During the Cold War, with the
effect of nuclear deterrence, super powers both fear from engaged to a possible hot war.
Especially after the Cuban Missile and U2 Crisis super powers realize that a possible nuclear
war could be the end of the humanity and world.
During this period, terrorism becomes a tool in struggling with enemy states which were in
the opposite block. Eastern states gave support to terrorist groups which were harmful for
western states. We can say that during the 1960s, opposition to the Vietnam War produced a
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wave of "New Left" terrorism, as radical groups in Europe, Latin America and the United
States, undertook campaigns of political kidnappings, assassinations and bombings in
furtherance of vague Marxist-Leninist-Maoist political agendas and woolly headed demands
for "social justice" (Shughart, 2006, p. 21). Also Hoffman agreed that at the height of the cold
war, the majority of terrorist groups were left-wing revolutionary Marxist Leninist
ideological organizations. (Hoffman, 2006, p.85) At the same time Western states condoned
anti-democratic measures of their own allies in struggling with terrorist groups. Worldwide,
74% of countries that used torture on an administrative basis were U.S. client states,
receiving military and other support to retain power. They concluded that the global rise in
state terror was a result of U.S. foreign policy (Sluka, 1999, p.8).
With the end of Cold War, terrorism began to have seen the primary threat to international
security. The last and most significant change in terrorism concept happened with the end of
Cold War. This significant change creates a “new” terrorism. 1993 World Trade Center
attack, Tokyo subway attacks, Oklahoma city bombing and so many incidents showed to us
and also states, terrorism became a very important threat for security than ever (Weinberg&amp;
Eubank, 2006, p. 1-3).If we look the motivations behind the attacks we can easily say that
ideological motivation in terrorism has mostly ended by the end of Cold War. As a result of
this, terrorism became more independent and more imponderable. We can easily say that
terrorism today is a worldwide phenomenon (Garrison, 2003, p. 39).
The logic of terrorist attacks have changed in the new terrorism. Formerly terrorist not aimed
to kill so many people in their attacks. The symbolic characteristic of the attacks in terrorism
is primary. Terrorist organizations didn’t aim to kill so many innocents in their attacks. But in
new terrorism, besides the symbolic characteristic, killing so many people is becoming an
aim of the attacks. For example IRA (Irish Republican Army) have killed 2618 people in its
attacks between the years 1969-1987, but only the Sept 11 attack there are 2823 people have
died ( Eriş, p. 361-362). In the new terrorism the success of the attack began to describe with
the number of people who died in the attack. Besides this fact, terrorism start to use high
technology in explosives, weapons and communication, information technologies. This
reality makes terrorism a global, unpredictable, very close and important threat.
It’s important because, it has “double effect” on sustainability of security. First, terrorism
aims to take people life to achieve its own political goals. Yes it’s true that the main aim of
attacks is not killing people, the real aim is create terror in people’ mind. But it’s obvious and
clear that terrorism endangers security in individual and public level both. This is the direct
effect of terrorism on security. Second, terrorism has an indirect effect on security. When a
terrorist campaign launched in one state, that state usually strengthened its security measures.
For this states occasionally suspend and even scarify some basic rights and freedoms of
citizens in struggling with terrorism. But this tendency of states generally doesn’t maintain
the security in public. Ironically precautions which have taken to maintain the security
become the one of the source of terrorism in time. Because while the state behaving to
innocent civilians as a terrorist, no one feels himself secure. This situation endangers the
security in life. Because of this, one can easily liken terrorism to a double edges sword
(Friedland &amp; Merari, 1985, p. 592-595). A life bereft of democracy and filled with human
58

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

right violations can not be secure. Sustainability in security requires promoting democracy
and protecting human rights.

4.The Role of Promoting Democracy and Protecting Human Rights.
After Sept. 11 attacks terrorism became the prior threat to world security. Almost every state
and international organization start dealing with the question of how international terrorism
can be stopped? For instance, United States adopt the PATRIOT Act (PATRIOT Act
http://www.gpo.gov/fdsys/pkg/PLAW-107publ56/pdf/PLAW-107publ56.pdf) immediately,
so was Canada hastily enacted the Anti- Terrorism Act (ATA) and as an international
organization NATO invoked Article 5 of the Washington Treaty for the first time in its
history following the Sept.11 terrorist attacks against the United States (Brown, 2006, pp. 2732) and almost every state around the world started to review its own domestic anti-terrorist
laws and measures. But in reviewing the general tendency is reducing human rights standards
for ensuring security in struggling with terrorism.
For instance the PATRIOT Act gives federal officials greater authority to track and intercept
communications, both for law enforcement and foreign intelligence gathering purposes. It
seeks to further close United States borders to foreign terrorists and to detain and remove
those within our borders by behaving especially Middle Eastern or Muslim foreigners like
potential terrorist. It creates new crimes, new penalties, and new procedural short-cuts for
use against domestic and international terrorists (Doyle, 2002, p. 1) In the wake of numerous
changes made in U.S. law and that of many other countries following the September 11
terrorist attack, civil libertarians, libertarians, and many others have raised concerns that the
nations involved are sacrificing their liberty to enhance their safety.
Likewise Canadian Anti- Terrorism Act (ATA), deeply impacts human rights and civil
liberties. After the Sept. 11 Canada choose scarifying civil liberties in the name of protecting
the nation from terrorism threat. With the changes to the Canadian Evidence Act; the
establishment of INSET (Integrated National Security Enforcement Teams), cross-border anti
terrorism police force; the draconian provisions within the ATA, and also changes to Security
of Information Act, Canada has systematically and secretively undermined core democratic
national values such as human rights, civil liberties and national sovereignty (Lott, 2006, p.
2).
Examples can be increased, England, Spain even Australia and Thailand (Kocher, 2007, p.
25-42) , but the common matter is almost every state have a tendency that reducing human
rights and democracy in struggling terrorism. In another words in the presence of political,
ethnic, or religious strife, governments appear to be more likely to adopt broad
counterterrorism policies and commit human rights abuses. (Omelicheva, 2007, p. 188)
Especially Muslim communities around the world have been victims of violence and
discriminately denied their rights: and governmenet have been able to justify the suppression
of groups and organizations that oppose them (Kocher, p. 43). In addition to spurring a global
proliferation of aggres.sive counter terrorism measures, the United States has at times
59

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actively undermined judicial authority in nations whose court systems are just beginning to
mature. In one such instance, Bosnian authorities transferred six Algerian men into U.S.
custody at the request of U.S. officials, in violation of that nation’s domestic law. The
Bosnian police bad arrested the men, five of whom also had Bosnian citizenship, in October
2001 on suspicion that they bad links with al Qaeda. In January 2002, the Bosnian Supreme
Court ordered them released for lack of evidence. But instead of releasing them, Bosnian
authorities banded them over to U.S. troops serving with NATO [North Atlantic Treaty
Organization]-led peacekeepers. Despite an injunction from the Human Rights Chamber of
Bosnia and Herzegovina expressly ordering that four of the men remain in the country for
further proceedings, the men were shortly thereafter transported to the detention camp at
Guantanamo. (Posner, 2005, p. 222)
But it is obvious that this method of ensuring security is not sustainable. Actually this way is
what terrorism wants. But one want sustainability in security, especially in struggling with
terrorism, should behave in respect to human rights. We shouldn’t forget that in the post-Cold
War 1990s, human rights values and institutions played greater role in establishing stability in
the global order and ensuring more democratic forms of political and economic participation
at the local level. We can easily say those years global security have maintained through
human rights. (Wilson, 2005, p. 3-6).

For sustainability in ensuring the security of individuals "fighting the symptoms" will not
work, you must instead "cure the disease". Granting fundamental rights and promoting
democratic principles makes society more secure. We should not forget that extremist
movements always fed from corrupted democratic structures. Totalitarian and antidemocratic policies in democracies create extremist also terrorist structuring. This is why
terrorism named as “the disease of the democracies”. In this way security and human rightsdemocratic principles are not two controversial concepts which have to be balanced.
Contrarily they are complementary concepts. With respecting fundamental rights and
freedoms one source of nutrition would be eradicated. Terrorist organizations couldn’t be
found supporters to their ideas or actions any more, and with promoting democracy extremist
ideas can be found a discharge area, and this aggressions be solved in peaceful manner.

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Weinberg, L. Eubank, W. L. (2006), The Roots of Terrorism, What is Terrorism, Reno,
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Terror’, New York, NY, Cambridge University Press

Business Diplomacy Management As A Key Role In The Sustainable Development And
Stakeholder Management In The Multinational Corporations: Daimlerchrysler Case

Dinç, Mehmet,Kaygisiz, Ümmühan
Suleyman Demirel University
Vocational School of Isparta
Isparta Turkey
E-mails: mehmetdinc@sdu.edu.tr, ummuhankaygisiz@sdu.edu.tr

Abstract
In the last two decades a dramatic shifts within the business community have been occurred.
Globalization has offered business opportunities to companies around the world and has led
to the development of a multitude of standards that govern business behavior. It is no longer
sufficient to know the business and legal conditions of a multinational companies’
headquarters country and some of the countries where it operates foreign subsidiaries.
Multilateral and intergovernmental organizations are increasingly defining industry standards
that become mandatory for multinational companies. Non-Governmental Organisations
(NGOs), operate at multiple levels ranging from national civil society issues like
environmental protection to observation and investigation of possible human rights violations
of multinational companies or foreign states. They often operate at national, regional and
transnational levels focusing on economic, social and political issues. In addition, growing
internationalization has became increasingly complex, civil society organizations have
exerted increasing pressure on MNCs, especially the concept of sustainable development has
expanded to include the simultaneous consideration of economic growth, environmental
protection and social equity. Thus, in response to these kind of shifts, many have made a
commitment to apply the principles of sustainable development to their activities. To meet
and to handle these commitments, MNCs have required a multitude of policies and new
business competencies. One important factor contributing to the sustained success of MNCs’
operations in foreign markets in the competent use of business diplomacy. Business
Diplomacy Management (BDM) refers to the ability of MNCs to effectively interact with
non-business stakeholders wherever the MNCs have business interests, be they in the form of
local production, distribution channels or sales offices.
63

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                <text>Today’s security threats are more complex than traditional ones, such as HIV, climate  change, human rights violations, anti-democratic laws and measures forced us to think about  the definition and the context of security again. With the effect of these new threats,  sustainable security concept emerged from a post- Cold War multi-disciplinary understanding  of security. Sustainable security redefines how we think about national security in today's  shifting, after Cold War era. Struggling with these new threats, especially struggling with terrorism requires new approaches to security. The traditional understanding which predicts  balancing human rights and security measures is not valid anymore. In today’s security  understanding promoting democracy and protecting human rights are not causes of insecurity,  contrarily terrorism, which considered as the greatest threat to world security after Sept 11,  wants to create a “police state” to find support their own ideology. Further more terrorism  aiming to demolish democracy and human rights in society; with this, life become insecure,  state become more totalitarian and terrorist acts become more reasonable. For this  characteristic, terrorism called the “disease of democracies”. For this reason promoting  democracy and protecting human rights are the key elements of sustainable security  especially in struggling terrorism  Keywords: Sustainable Security, Human Security, Terrorism, Sept. 11, Human Rights,  Democracy.</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

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the Institutional Turn in Local Economic Development, Urban Studies, 36 (5-6): 951-968.

Comparison of linear regression and neural network models forecasting tourist arrivals
to Turkey
Selcuk Cankurt, Abdulhamit Subasi
International Burch University, Faculty of Engineering and Information Technologies,
Francuske Revolucije bb. Ilidza, Sarajevo, 71000, Bosnia and Herzegovina.
E-mail:asubasi@ibu.edu.ba
Abstract
This paper develops statistical and machine learning methods for estimating tourist arrivals
which is one of the donnée for planning the sustainable tourism development. Tourism is
arguably one of the world's largest and fastest growing industries. Sustainable tourism
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development is one of the most promising generators of the sustainable economic
development. Realistic tourism projections based on accurate tourism forecasting contribute
much for the sustainable tourism development. The challenge of the planning and developing
sustainable tourism is to see as the complex paradigm but one of the starting points is the
accurate forecasting tourist arrivals. In this study, linear regression and neural network
multilayer perceptron (MLP) implementations are considered to make multivariate tourism
forecasting for Turkey. Comparison of forecasting performances in terms of correlation
coefficient (R), relative absolute error (RAE) and root relative squared error (RRSE)
measurements shows that MLP model for regression gives a better performance.
Keywords: Tourism forecasting; Tourism demand modelling; Time series; Linear regression;
Neural networks; Multilayer perceptron; Multivariate tourism forecasting.
1.INTRODUCTION
Tourism demand forecasts are of great economic value both for the public and private sector.
Tourism products, such as unfilled airline seats, unoccupied hotel rooms, and unused
facilities, cannot be stocked because of their perishable nature (Archer, 1987). Therefore,
accurately forecasting tourism demand has great importance to the sectors concerned with
tourism, in order to accurate and efficient plans (Petropoulos, Nikolopoulos, &amp; V., 2005; Pai
&amp; Hong, 2005).
According to the World Travel &amp; Tourism Council (WTTC), travel and tourism is the biggest
industry in the world. Since 1992 tourism sector is the largest industry and has the largest
employer in the world (Aslan, Alper, Kaplan, Muhittin, Kula, &amp; Ferit, 2008).
Turkey's economy grew an average of 6.0% per year in last decade. Currently Turkey is in
16th place on the list of the largest economies of the world and the fastest growing economy
among members of the Organization for Economic Cooperation and Development (OECD).
The new goals of Turkish tourism were to establish an efficient tourism sector with high
international competitiveness while preserving and enhancing of the country’s natural and
historical environment and cultural heritage in a sustainable manner (Ministry of Culture,
2007).
The statistical methods such as linear regression are suitable for data having seasonal or trend
patterns, while artificial neural techniques are also efficient for data which are influenced by
the special case, like promotion or extreme crisis (Efendigil, Önüt, &amp; Kahraman, 2009).
One major application area of ANNs is forecasting (Gooijer &amp; J., 2006); see (Zhang, Patuwo,
&amp; Hu, 1998) and (Hippert, Pedreira, &amp; Souza, 2001). Generally the ANNs are increasingly
used to forecast demands for tourism (Law &amp; Au, 1999; Law R. , 2000). (Pattie &amp; Snyder,
1996) used a back-propagation neural network model with two hidden layers to forecast
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monthly overnight stays in US national park systems. (Law &amp; Au, 1999) presented a feedforward neural network with six input and one output nodes to forecast arrivals in Hong
Kong. For more application area of ANN, see (Al-Saba &amp; El-Amin, 1999), (Beccali, Cellura,
Lo Brano, &amp; Marvuglia, 2004), (Hobbs, Helman, Jitprapaikulsarn, Konda, &amp; Maratukulam,
1998), (Sozen, Arcaklioglu, &amp; Ozkaymak, 2005), (Sabuncuoglu, 1998), (Vellido, Lisboa, &amp;
Vaughan, 1999), (Wong, Lai, &amp; Lam, 2000), (Ayata, Cam, &amp; Yıldız, 2007), (Efendigil, Önüt,
&amp; Kahraman, 2009).
According to the brief review of literature especially related to tourism demands approaches,
this study attempts to develop a multivariate linear regression model and a general regression
neural network model for forecasting the number of the tourists coming to Turkey.

2.THEORETICAL BACKGROUND
2.1.Linear regression
Multiple linear regression (MLR) attempts to model the linear relationship called the
regression function between a dependent variable and more than one independent variables as
different from simple linear models with one independent variable. The dependent variable is
sometimes also called the predictand, and the independent variables is called the predictors.
The model for multiple linear regression, given n observations, is

for i = 1,2, ... n.
value of

predictor,

coefficient on the

the intercept, also known as the bias in machine learning,

predictor,

total number of predictors,

predictand,

error.

2.2 MLP Approach
Artificial neural networks (ANNs) (also usually preferred Neural Networks NNs) are
computing structures inspired from the biological neural networks. A neural network is made
of the interconnected processing units (usually called neurons). They have the ability of
learning by adjusting the strength of the interconnections which can be achieved by altering
the values called weights through the input data (Haykin S. , 1999). Neuron sums the
weighted inputs and conveys the net input through an activation function in order to
normalize and produce a result (Jones, 2008).

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The multilayer network architecture consists of an input layer, two or more hidden layers, and
one output layer. Activation function is used for both the hidden and output nodes. While the
sigmoid function can be used to squash the output of the neuron to
in the hidden
layer in order to introduce the non-linearity to NN, linear activation function must use in
output layer to predict the numerical values in the regression problems. MLP is trained with
supervised learning include the Perceptron learning algorithm, Least-Mean-Squares learning,
and Backpropagation. Backpropagation is one of the most popular approximation approaches
for training the multilayer feedforward neural networks based on the Widrow–Hoff training
rule (Bishop, 1995; Haykin S. , 1999; Aslanargun, Mammadov, Yazici, &amp; Yolacan, 2007).
3.EXPERIMENTAL RESULTS
A total of 31 models were obtained on the basis of two regression models and their
corresponding parameter selection which are three of them belong to linear regression models
and remaining 28 ones belong to MLP models. Those models were evaluated with the
validation data through three forecasting accuracy measures: correlation coefficient (R),
relative absolute error (RAE), root relative squared error (RRSE).
Three linear regression models were examined on the basis of attribute selection parameter:
none, M5 and greedy methods. It has been shown that the linear regression model with
greedy attribute selection parameter has the best accuracy when you compare with the other
linear regression models but also the worst when you compare with MLP regression models.
According to result of our linear regression model: 25 attributes don’t affect the results —
WEKA builds the regression function by considering the attributes which only statistically
contribute to the accuracy of the model (measured in
). It will not consider the attributes
that don't contribute the regression equation. So this regression model is telling us that whole
sale price of Turkey, consumer prize index of Canada, Denmark, Spain, Russia, number of
German, France, Syrian, Poland, Romanian, Norwegian, Switzerlandian visitors, Exchange
rate of Russia, Canada, Switzerland don’t affect the arrivals to Turkey. Estimated positive
values (coefficients) tell us as value of those attributes increase number of the total visitors.
Estimated negative values (coefficients) reduce the result — linear regression model is telling
us that the bigger negative value is, the lower the total coming tourist. This can be seen by the
negative coefficient in front of the variables.
Table 1 Overall performance of linear regression and MLP methods
Model

Correlation
coefficient

Relative
Root
relative
absolute error squared error

Linear Regression

0.978

18.73%

307

20.70%

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

MLP Regression

0.9874

14.17%

15.86%

Figure 1 Comparison of MLP and linear regression methods
Among the MLP regression models presented, the best forecasting accuracy was the MLP
model composed of three hidden layers with the neuron numbers of 30, 15 and 10
(abbreviated as 30-15-10). In this model the learning rate 0.03, momentum 0.8, epoch 500
values are used and backpropagation training algorithm, sigmoid activation function for
hidden nodes and unthresholded linear activation function for output node are employed. It
showed R 0.9874, RAE 14.17% and RRSE 15.86% accuracy results.
Results obtained from the experiments in this study, support the discussions in the literature
reviews topic of this paper. As seen in the table (1) apparently, machine learning MLP
regression model have better performance than statistical linear regression model.
4.CONCLUSIONS
This study presents a multivariate time-series forecasting to predict the tourism demand to
Turkey by employing linear regression and multilayer perceptron methods. The real data sets
respect to Turkey and its top ranked 24 tourism clients of the countries are used to compare
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the performance of the those methods and to find out the achievement of them on forecasting
tourism demand to Turkey. Comparison of the experimental results among linear regression
and MLP demonstrated that the MLP method had better forecasting accuracy. Experimental
results showed that the MLP model can produce lower prediction error and higher prediction
accuracy and outperformed the linear regression model. According to the experiments, it can
be concluded that the tuned MLP method with the multivariate time series has enough
satisfactory to forecast the tourism demand to Turkey.
In this study, linear regression model with greedy attributes selection method and MLP
(30:15:10) models have shown better performance when compared with other corresponding
models in forecasting the number of monthly tourist arrivals to Turkey owing to the RAE and
the RRSE measures.
Unfortunately, there is no certain or systematic method to select the appropriate model. Our
studies showed that among the methods mentioned above MLP regression has better
performance but still we need numerous experiments to evaluate and find out the most
suitable MLP regression model which can be employed on the multivariate time series
forecasting.
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Informatisation of the Judiciary in BiH: Success Factors
Nedim Fisekovic, Meliha Handzic
International Burch University, Bosnia and Herzegovina

Abstract
Informatisation of the judicial system covers all aspects of information and communication
technology (ICT), including: equipping the courts with modern information technology
equipment (desktop computers, servers, and printers), setting up a local area network (LAN)
and wide area network (WAN), establishing a system of electronic mail for the judicial
institutions, developing a system for case management system (CMS and TCMS), developing
and establishing judicial web sites (web portal), computer education of all employees in the
courts and prosecution offices, internet access for all users in the judiciary and many more.
311

�</text>
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                <text>Comparison of linear regression and neural network models forecasting tourist arrivals  to Turkey</text>
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            <name>Author</name>
            <description>Author</description>
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                <text>Selcuk , Cankurt
Subasi, Abdulhamit</text>
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            <name>Abstract</name>
            <description>A summary of the resource.</description>
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                <text>This paper develops statistical and machine learning methods for estimating tourist arrivals  which is one of the donnée for planning the sustainable tourism development. Tourism is  arguably one of the world's largest and fastest growing industries. Sustainable tourism development is one of the most promising generators of the sustainable economic  development. Realistic tourism projections based on accurate tourism forecasting contribute  much for the sustainable tourism development. The challenge of the planning and developing  sustainable tourism is to see as the complex paradigm but one of the starting points is the  accurate forecasting tourist arrivals. In this study, linear regression and neural network  multilayer perceptron (MLP) implementations are considered to make multivariate tourism  forecasting for Turkey. Comparison of forecasting performances in terms of correlation  coefficient (R), relative absolute error (RAE) and root relative squared error (RRSE)  measurements shows that MLP model for regression gives a better performance.  Keywords: Tourism forecasting; Tourism demand modelling; Time series; Linear regression;  Neural networks; Multilayer perceptron; Multivariate tourism forecasting.</text>
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                    <text>Classification Of Emg Signals Using Decision Tree Methods
Selami Keleş, Abdulhamit Subaşı
E-mail:keles_selami@yahoo.com, asubasi@ibu.edu.ba
Abstract
Nowadays, Usage of EMG signals are increasing very fast among the Medical Professionals
to determine specific disorders. Recent Computational Intelligence studies show that EMG
signals can be processed by machine learning methods. The aim of our study is to implement
an accurate system to classify EMG signals using decision tree algorithms. We preprocessed
the EMG signals and used autoregressive method (AR) for feature selection. Features are
reduced by different filtering methods and applied to decision tree classification algorithms,
namely Simple CART, C4.5, Random Forest and Random Tree. EMG signals are classified
as Myopathy, Neuropathy and Normal. All the data are compared each other on the table try
to find out the best classification and feature reduction methods. While tree algorithms
classify the data with the accuracy between %89, 82 and %99, 25, feature reduction slightly
affects the accuracy of the classification methods. It has been shown that a successful
automatic diagnostic system implemented to classify EMG signals by using decision tree
algorithms. Furthermore, future reduction may help to increase the accuracy of the system.
Keywords: EMG, Neuropathy, Myopathy, Simple CART, C4.5, Random Tree, Random
Forest, Feature reduction.

1.INTRODUCTION
Early and accurate diagnosis is important for neuromuscular diseases that help the patient to
get full recovery or have better health after therapy. Sometimes, clinical examination is not
enough to diagnose and to find the location of disorders [1]. Therefore, it has high importance
to find correct location of the disorders to accurate diagnosis and therapy. EMG recordings
are more useful than clinical examination to find out the muscle fibers involved in a disorders
and abnormal sensory nerve conduction. It allows the clinician to diagnosis without needing a
muscle biopsy and raises the clinician response time and helps to treat some disorders.
The analysis of EMG signals can be done only by qualified and professional neurologist. The
problem is that, there are few professionals to interpret the EMG waveforms and use the
necessary techniques. Therefore, it is important to develop an automated diagnostic system
by using EMG signals. The application of Computational Intelligence (CI) techniques can be
354

�used to develop an automated diagnostic system that detects and classify the neuromuscular
diseases by processing EMG signals which helps the neurologists to diagnose the
neuromuscular anomalies.
The MUP assessment may not be satisfactory to detect small deviation or miscellaneous
patterns of abnormalities [1]. Therefore, to design an accurate automatic EMG signal
classification system, different EMG analysis algorithms have been developed[2, 3]
To develop an intelligent diagnostic system, fist, EMG signals have to be pre-processed and
extracted the characteristic information. Then, extracted features that contain the time and
frequency domain information, processes by using wavelet coefficients, Fourier coefficients,
autoregressive coefficients or other signal processing techniques. After all, processed
information can be used as input to the classifier such as NNs, SVM or Decision Tree to
classify the disease.
One of the most popular MachineLearning Method ANN has been widely used to classify the
EMG data. In order to increase the classification success, ANN can combine the best of both
time and frequency domain measures, but it is not enough for clinical use [4, 5].
Christodoulou and Pattichis used Self Organized Feature Maps and Learning Vector
Quantization used to classify MUP’s [5]. Genetic algorithms were used by Schizas ve
Pattichis to classify the EMG signals [6]. Multilayer Perceptron Neural Networks (MLPNN),
Dynamic Fuzzy Neural Network (DFNN) and Adaptive Neuro-Fuzzy Inference System
(ANFIS) based classifiers were compared by Subaşı. ANFIS model has reported more
successful than others with the accuracy of 95%. [7]. SVM classifier is used by Katsis at. al.
and the classify the EMG signals whit the correct identification rates of 93, 95 and 92% for
normal, myopathy and neuropathy, respectively [8]. The result of another
comparisonresearch between Combined Neural Network (CNN) and Feedforward Error
BackpropagationANN (FEBANN) classifiers was describedby Bozkurt. Even the CNN didn’t
provide the fast enough classification;itgaveslightly higher success than the FEBANN with
the accuracy of 92% [9]
There are still challenges to develop an accurate and practical automated system. EMG
signals vary patient to patient in a very large range. Signal amplitude and duration changes by
patient age. This problem can be solved by designing a signal processing techniques that
conserve or capture distinctive information in raw EMG readings. High-quality set of
features[10].
2.EMG
EMG can be defined as a method of analyzing neuromuscular conditionsdepends on cell
action potentials for the duration of muscle action. The specification of the EMG signal is
0.01-10mV and 10-2000Hz on average. This signal has information about location, reason of
disorder and type of illness. For example, while the EMG pulse duration shows the location
and metabolic condition of the muscle [11],odd spikes may point to the myopathy.
355

�Electromyograph records the Motor Unit Action Potential (MUAP). EMG can be categorized
into needle or fine wire EMG and surface (sEMG). While EMG signals are recording, some
instruments are required including, electrodes, a signal acquisition system and signal filters.
Generally, EMG instruments are produced with typical settings for signal characteristics such
as filter bandwidth, gain and input impedance [12].
The needle electrode or wire electrode can reach the individual motor unit and get the action
potential more accurately than the surface EMG.Surface EMG electrode is more useful than
needle or wire electrodes, because it is used by attaching the body instead of inserting
anything in it. EMG signals are recorded at hospital lab by Electromyographers[10].
3. Myopathy
Myopathy is a muscle disorder especially skeletal muscle, which is caused by several reasons
such as injury of muscle group or some genetic mutation. It obstructs the proper tasks of
muscle fibers. The patient suffering with myopathy has weak muscle and has difficulties to
perform regular tasks. Depending on the severity of disease, sometimes it is impossible to
make any movement by using affected muscle. There are a number of types of myopathy
including; Muscular dystrophy, Congenital muscular dystrophy, Duchenne muscular
dystrophy, Becker muscular dystrophy, Emery–Dreifuss muscular dystrophy, Myotonic
muscular dystrophy, Distal muscular dystrophy, limb–girdle muscular dystrophy,
facioscapulohumeral muscular dystrophy and oculopharyngeal muscular dystrophy [10]
Neuropathy
Simply, Neuropathy is the term for describing damage to nerves of nerves system. It causes
pain and some disability. Neuropathy can be caused by variety of precipitating factors
including infection, diabetes; alcohol abuse, cancer chemotherapy and injury. When a single
nerve is affected, it is called Mono-neuropathy. When a group of nerves or all nerves of
peripheral nerve are affected, it is called Polyneuropathy. Poly neuropathies are similar
because of inadequate manner in which sensory nerves react to malfunction. EMG diagnosis
is not considerably useful for Polyneuropathy, because the patients with polyneuropathy have
normal electrophysiological characteristics [10]
Decision Tree Classifiers;
The Decision Tree is a classification algorithm
thatclassifies a pattern by asking questions, in which
the next question asked depends on the answer to
the present question [13].It uses a “divide-andconquer” approach to solve the learning problems
[14]. Decision Tree learning methods are one of the
most popular inductive inference algorithms and
356

Figure-1

�have been used a wide range of task about medical diagnosis [15].
The instances are classified by sorting them down the tree from root to some leaf node which
the classification is provided in decision tree algorithms. The attributes of the instance are
tested at each node and sent to the sub node or leaf node from one of the branch which
correspond the possible values of that attribute [15]. The numeric attributes are tested by
comparing a pre-defined constant value at the node and it gives two or three-way split
depends on the several different possibilities. [14]. Trained trees can be shown by a set of ifthan rules to increase human readability [15]. An example of three is shown in the figure-1
which is adopted from Quinlan research [16].
4.C4.5
C4.5 is develop by Ross Quinlan [17] to make complex decision trees more understandable
by using a list of rules of the form “If X and Y and Z and ….then class A” where rules are
grouped together for each class. When the first rule is found which satisfies the condition of
case, the instance is classified. If there is no rule which is satisfied by the case, it is sent to
default class. The basic disadvantage of the C4.5 algorithm is requirement of high amount of
CPU time and system memory[18].

5.Random Tree
Random Decision Tree is a randomly trained ensemble of decision trees which is proposed by
Fan et al. [19]. The features are randomly selected at each node, while training trees phase is
proceeding. A selected discrete feature never selected again till it is vain to use the same
discrete feature more than once.Conversely, it is possible to choose continues features several
times as long as every time, using randomly selected splitting value. Each tree gives raw
posterior probabilities at the classification phase and outputs of each tree in the ensemble are
averaged for last posterior profanities estimation. It is proofed that the Random Decision Tree
is highly accurate classification method for both 0-1 loss and cost-sensitive loss function.
[20].
6.Random Forest
Random forest is a tree algorithm which composed of a number of tree predictors. In this
algorithm, each tree is shown by a random vector which is independently taken from the
same distribution in the forest. As the number of the tree increase in the forest, the
generalization error converges to a limit. The strength of the individual tree and relationship
between the trees affects the generalization error. Once all trees in the forest produce a result,
they are voted for the most passible class [21]. It is one of the most successfulclassification
357

�methods among the available algorithms for many data type [22], but opposite to other
decision tree methods, it makes classification which is difficult to deduce by human [23].
7.Classification and Regression Trees(CART)
Classification and Regression Trees (CART), proposed by Breiman at al., [24], was a
revolutionary improvement of Machine Learning and Data Mining fields which can be used
almost any domain such as electrical engineering, biology and medical researches. It is a
binary repeated division process which can work with the nominal and continues data.
The raw form of data is processed without requiring binning. The growing trees aren’t halted
by using stooping rules till it reaches maximum size and then clipped back to the root by
cost-complexity pruning method. The pruned next split contributes the overall performance
of the tree. The CART algorithm is projected to grow a sequence of nested pruned trees that
all of them are nomine of the optimal trees. To find out the “right sized” tree, the predictive
success of every tree is evaluated at the pruning process. The performance of the tree is
measured by test data or cross validation method and tree is selected after evolution, because
CART doesn’t have any internal performance measurement method depending on training
data. [18]
8.AR model
An Autoregressive (AR) model is used to estimate the different kinds of naturel fact in signal
processing and statistic fields which were originally proposed by Yule. It contains a set of
linear estimation formulas which is used to predict the output of a system depends on the
previous output. [25, 26]
There are a number of methods to estimate the AR model parameters. Some of them are the
Yule-Walker, Burg(1968), covariance and modified covariance methods. It is easy to access
and use these methods in many software packages such as MATLAB
(http://www.mathworks.com/products/matlab/) and Signal Processing Toolbox.
The Yule-Walker technique is based on a partial form of the autocorrelation approximate to
guarantee a positive semi defined autocorrelation matrix. Alternatively, the Burg method uses
a form of order-recursive least square method which approximates the parameters by
minimizing errors of the linear system. [10]
9.Feature selection algorithms
An important issue is handling irrelevant features in pattern recognition field. Feature
Selection (FS) method is necessary to find out the important features to classify the data
accurately, because it was not considered how to overcome a large amount of irrelevant
feature in many pattern recognition methods, while they were designing. [27,28,29] Mostly,
the feature selection methods are used to increase the model performance, to abstain the
358

�overfitting, to get faster and more cost effective models and to understand the processes
which produce the data. Beside the advantages, FS methods add new complexity layer to the
models. [30], searching the optimal subset of relevant features. FS methods can be grouped in
to three categories by the way of allying relevant features search with building classification
model; filter methods, wrapper methods and embedded methods. [31]
10.Materials and Methods
10.1.Subjects and Data Acquisition
The patients which samples are taken from and the control group were chosen at Neurology
Department of University of Gaziantep. Measurements are taken by an EMG system
(Keypoint; Medtronic Functional Diagnostics, Skovlunde, Denmark) with standard settings.
The signal was obtained from biceps brachii muscle by using a concentric needle electrode
(0.45 mm diameter with a recording surface area 0.07 mm2; impedance at 20 Hz below 200
KΩ). 5 Hz to 10 KHz band-pass filter was applied to the raw signal and sampled at 20 KHz
for 5 s with 12-bit resolution. Then 8 KHz low-passed filter was applied.
The signals are recorded from three to five different points in muscle for standardization. And
also the needles are inserted in to muscle until it reaches the medial or posterior border of the
muscle (at least 3-5 mm deep). The needles are moved 3-5 mm to ensure to record different
MUPs at every recoding season.
The signals were taken from the biceps brachii muscle of the patients under isometric
condition at just about 30% of Maximum Voluntary Contraction (MVC). Before the patient
diagnosis, general examination and clinical history of the patient were considered and EMG
and nerve conduction tests were regarded. Unless, the EMG diagnosis results were uncertain
and some other clinical reason; the muscle biopsies were not done.
The data which was used for this study were collected from 27 different subjects and
analyzed. Details about the subject are given below as in [3]




7 healthy subjects, (3 males, 4 females,) ages between 10 to 43 years (mean
age±standard deviation (S.D.): 30.2±10.8 years)
7 myopathic subjects (4 males, 3 females) ages between 7 to 46 years, (mean
age±standard deviation (S.D.): 21.5±13.3 years)
13 neuropathic subjects (8 males, 5 females) ages between 7 to 55 years, (mean
age±standard deviation (S.D.): 25.1±17.2 years)

We used the dataset which is recorded, preprocessedand features are extracted by Subaşı
(2006) for his research namely “Classification of EMG Signals Using Combined Features and
Soft computing” in this study.

359

�10.2.Data set
The dataset has 129 features which were extracted by AR model from recorded EMG signals
and contains three classes which are “Normal”, “Neuropathy” and “Myopathy”. As shown in
the table-2
Class
Normal
Neuropathy
Myopathy
Total

Number of instance
400
399
400
1199
Table-2

11.WEKA
WEKA is open source software issued under the GNU General Public License which
contains machine learning algorithms for data mining tasks. It is developed for contributing
to a theoretical framework for the field by Machine Learning Group at University of
Waikato, New Zealand. It composed of easy to use tools which can be applied directly to the
dataset. Data pre-processing, classification, regression, clustering, association rules, and
visualization are tools in WEKA. And also, well known classification algorithms such as
Neural Network, Bayesian, SVM and Decision Tree are available in this tool. It can either get
the data from a database or a file. The file format “.arff” and “.cvs” are supported by WEKA.
[32]
11.1.Experiments
The data mining tool WEKA was used for both feature selection and classification tasks.10fold-Cross validation method was used to train and test the classifiers. In 10-fold crossvalidation, the original sample is randomly partitioned into 10 subsamples. One of the
subsample is reserved as the validation data for testing the model, and the residual 9
subsamples are used as training data. The cross-validation process is then repeated 10 times,
with each of the 10 subsamples used exactly once as the validation and training data. [33]
The data set weretested by four Decision Tree algorithms which are C4.5, Random Tree,
Random Forest and Simple CART and the results wererecorded on a table. Then, the Feature
Selection methods wereapplied to the data set to determine non effective or comparably less
effective features and ineffectual featureswereremoved from data set. The new data set
360

�wastested by four Decision Tree algorithms and the results wererecorded on a table again.
This process wasrepeated whit elevendifferent feature selection methods which are listed
below. Totally, 48 different testswere done for this study and the total accuracy of each test
wasrecorded on a table (Table-3).
The tested Feature Selection methods:


Information Gain,



One-R Attribute Evaluator



Chi Squared Attribute



Principal Components

Evaluator


Filtered Attribute Evaluator



Relief Attribute Evaluator



Consistency Subset Evaluator



SVM Attribute Evaluator



Filtered Subset Evaluator



Symmetrical uncertainty Attribute
Evaluator



Gain Ratio Attribute Evaluator

Min

Max

Average

Evaluator

Symmetrical uncertainty Attribute

SVM Attribute Evaluator

Relief F Attribute Evaluator

Principal Components

One R Attribute Evaluator

Gain Ratio Attribute Evaluator

Filtered Subset Evaluator

Consistency Subset Evaluator

Filtered Attribute Evaluator

Chi Squared Attribute Evaluator

Information Gain

All Features (No Reduction)

11.2.Results

j48,( C4.5):

96,33 96,25 96,58 96,16 96,25 97,08 96,41 96,25 91,99 96,50 96,41 96,33 96,05 97,08 91,99

Random Forest

98,50 98,67 98,83 99,17 99,25 98,67 98,92 98,92 93,58 98,83 98,50 99,00 98,40 99,25 93,58

Random Tree

96,66 97,16 95,50 97,33 96,00 97,50 97,08 96,91 89,82 97,25 96,75 96,25 96,18 97,50 89,82

Simple CART

96,50 96,41 96,50 96,41 96,58 96,66 96,50 96,41 91,41 96,41 96,58 96,50 96,07 96,66 91,41

Average

97,00 97,12 96,85 97,27 97,02 97,48 97,23 97,12 91,70 97,25 97,06 97,02 96,68 97,62 91,70

Max

98,50 98,67 98,83 99,17 99,25 98,67 98,92 98,92 93,58 98,83 98,50 99,00 98,40 99,25 93,58

Min

96,33 96,25 95,50 96,16 96,00 96,66 96,41 96,25 89,82 96,41 96,41 96,25 96,05 96,66 89,82

361

�Table-3
The accuracy of the classifier varies from %89.82 to %99.25. The most successful algorithm
is Random Forest which can classify the data whit %99.25 accuracy by using feature
selection method “Consistency Subset Evaluator”.The Classification algorithms C4.5,
Random Tree and Simple CART classify the data with the similar accuracy, between %96.33
and %96.50.
Reducing the features by using feature selection methods does not considerably affect the
accuracy of the classification algorithms accept the “Principal Component”. Principal
Component decreases the classification success of all the algorithms which we test.Using
feature selection “Filtered Subset Evaluator” increases the success of C4.5, Random Tree and
Simple CART classification algorithms, but not considerable, less then %1.
Statistics information for Random Forest with the feature selection method Consistency
Subset Evaluator
Correctly Classified Instances: 1190- 99.2494 %
Incorrectly Classified Instances:9 - 0.7506 %
Kappa statistic

:0.9887

Mean absolute error

: 0.023

Root means squared error

: 0.087

Relative absolute error

: 5.1793 %

Root relative squared error

: 18.4468 %

Total Number of Instances

: 1199

362

�Detailed Accuracy by Class

TP

FP Rate

Precision

Recall

F-Measure

Rate

Weighted
Average

ROC

Class

Area

0.990

0.005

0.990

0.990

0.990

0.998

Normal

0.995

0.003

0.995

0.995

0.995

0.998

Myopathy

0.992

0.004

0.992

0.992

0.992

0.999

Neuropathy

0.992

0.004

0.992

0.992

0.992

0.999

Confusion Matrix
Classified as

Normal

Myopathy

Neuropathy

Accuracy

396

2

2

%99.00

Myopathy

1

398

1

%99.50

Neuropathy

3

0

396

%99.25

Normal

Confusion Matrix shows that none of Neuropathy classifiedas Myopathy and the Myopathy is
classified with the maximum accuracy (%99.50) among the 3 classes.

11.3.Discussion
Our study shows that it is possible to implement an accurate automatic diagnostic system to
classify the EMG signals as Myopathy, Neuropathy and Normal by using Decision Tree
algorithms. All the Decision Tree based classification algorithms which we analyses in this
study can be used as classifier for creating such a system, but we recommended using
Random Forest, as classifier and “Consistency Subset Evaluator” among feature selection
363

�methods for reducing the features. The performance of this system gives the maximum
accuracy (%99.25) among the others.The other Decision Tree based Classifiers C4.5,
Random Tree and Simple CART may be used without feature reduction. When the results are
compared at the Table-3,feature selection methods enhance the performance less than %1.
Among the feature reduction methods, we don’t suggest to use “Principle Component” for
selecting effective features, because it noticeably decreases the achievement of all
classification methods. It decreases the performance of Random Tree from % 96.66 to
%89.82.
12.CONCLUSION
This study shows that it is possible to design a high performance automatic diagnostic system
by using EMG signals which are taken from 27 different subjects. It is necessary to test our
system by using data set which is taken more than 200subjects.

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[7] Subaşı. A, Classification of EMG Signals Using Combined Features and Soft Computing
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Sınıflandırılması. T.C. Sakarya Üniversitesi Fen Bilimleri Enstitüsü Doktora Tezi 2007

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[27] Guyon I., Elisseeff A. An introduction to variable and feature selection. J. Mach Learn
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Optimization of Feature Selection and Algorithm Parameter Interaction in Machine Learning
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bioinformatics V. 23 P. 2507–2517 BIOINFORMATICS, Advance Access publication 2007
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                <text>Nowadays, Usage of EMG signals are increasing very fast among the Medical Professionals  to determine specific disorders. Recent Computational Intelligence studies show that EMG  signals can be processed by machine learning methods. The aim of our study is to implement  an accurate system to classify EMG signals using decision tree algorithms. We preprocessed  the EMG signals and used autoregressive method (AR) for feature selection. Features are  reduced by different filtering methods and applied to decision tree classification algorithms,  namely Simple CART, C4.5, Random Forest and Random Tree. EMG signals are classified  as Myopathy, Neuropathy and Normal. All the data are compared each other on the table try  to find out the best classification and feature reduction methods. While tree algorithms  classify the data with the accuracy between %89, 82 and %99, 25, feature reduction slightly  affects the accuracy of the classification methods. It has been shown that a successful  automatic diagnostic system implemented to classify EMG signals by using decision tree  algorithms. Furthermore, future reduction may help to increase the accuracy of the system.  Keywords: EMG, Neuropathy, Myopathy, Simple CART, C4.5, Random Tree, Random  Forest, Feature reduction.</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

How sustainability orientation makes market-oriented firms more market-oriented

Satyendra Singh
Director, Centre for Emerging Markets
Professor, Marketing and International Business
Editor-in-Chief, International Journal of Business and Emerging Markets
University of Winnipeg, 515 Portage Avenue, Winnipeg R3B 2E9, CANADA
T: 204.786.9424, F: 204.774.8057,
E-mails: s.singh@uwinnipeg.ca, I: www.uwinnipeg.ca/~ssingh5

Abstract
Globalization and competition have forced most firms to develop competitive advantage in
order to compete and survive. In this regard, market orientation and sustainability orientation
can play a crucial role in rendering firms a competitive advantage. Market orientation relates
to satisfying current and future customers’ needs. Literature indicates that market orientation
contributes positively to business performance, and that market-oriented firms outperform
non market-oriented firms. As a result, firms are forced to be market oriented even though
becoming or increasing or maintaining a market orientation is costly, complex, and timeconsuming. Therefore, the costs of becoming market oriented must at least be offset by
additional revenue. One of the sources of such additional revenue can be obtained by
adhering to the principles of sustainability orientation (e.g., triple bottom line), which
captures the whole set of values, issues and processes that firms must address in order to
minimize any harm resulting from their activities and to create environmental, social and
economical value. Thus, it is expected that firms that follow sustainability principles in
addition to being market oriented should outperform firms that are market-oriented only. The
premise for such expectation is that customers are more attracted to firms that care also about
social and environmental aspects of society (and not just financial) than firms that are marketoriented only (i.e., care about customers’ needs just for financial reasons). The purpose of this
study is to explore relative contribution of market-oriented firms, and market-oriented firms
with a sustainability orientation. To assess relative contributions of both the orientations, we
speculate a trade-off between them, and recommend that any additional revenue generated
from sustainability initiatives should be redeployed to enhance market orientation that
contributes further to enhancing business performance.
Keywords: Market Orientation, Sustainability, Business Performance, 3BL

1.INTRODUCTION
The premise for this study is that market orientation and sustainability are positively related,
leading to a superior business performance. Market orientation is defined as the extend to
1

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

which a firm engages in generating and disseminating market intelligence pertaining to
current and future customer needs and wants, competitor strategies and actions, and broad
business environment (He and Wei, 2011). Market orientation is an important source of
achieving competitive advantage, as all members of the firm commit to continuously creating
superior value for customers. The purpose of the study is to examine how a firm’s orientation
affects its long-term viability; i.e. sustainability. Firms with a higher level of market
orientation tend to perform better than their counterparts with less market orientation (Liu et
al., 2003); however, the hierarchical structure of a firm can hinder its ability to disseminate
information within a firm, and thus decreasing accountability of each employee (Adhikari
and Gill, 2011). This negatively effects the firm’s market orientation, as firms become less
responsive to customer needs, which is required by the firm to be market oriented.
Considerable research supports the positive relationship between market orientation and
business performance (Jaworski and Kohli, 1993; Narver and Slater, 1990). The majority of
the research is conducted in developed nations, but emerging markets are radically different
from the traditional industrialized countries in that they require us to rethink the core
assumption of marketing such as market orientation (Sheth, 2011). For example, emerging
markets are more customer-based and markets within these nations are created by shaping
customer expectations, and not assessing them. Firms with higher market orientation perform
better and are characterized by their intentions to continuous delivery of superior value to
their customers (Slater and Narver, 1998).
Business sustainability is defined as adopting business strategies and activities that meet the
needs of the enterprise and its stakeholders today while protecting, sustaining and enhancing
the human and natural resources that will be needed in the future (Labuschagne et al., 2005).
A firm’s strategic use of information technology facilitates competitiveness in both the shortand long-term for sustainability. Firms that cannot sustain their competitiveness have only
transient value or offer negative value (Kettinger et al., 1994). Indeed, firm’s capabilities,
resources and technologies contribute to achieving strategic competitive advantage that shape
a firm’s market orientation, and thus ensures its future sustainability. In the following
sections, we discuss the environment, social and economical impacts of sustainability on
market orientation and provide their implications for business managers.

2.Environment
The emerging field of sustainable business has its root in both science and economics,
particularly in the field of environmental science (Guest, 2010). Firms need to develop a
deep-seated understanding of how to create a lasting enterprise based on the concept of
internal decision-making and practices pertaining to knowledge and attitudes toward a
business’ sustainability via environmental science (Sa de Abreau, 2011). The decisionmaking and practices fall in two categories of firms: firms with developed environmental
conduct and those without. The former firms have set procedures, legal requirements,
controls and standards and are aware of the negative effects on the environment; the later is
likely to lack management representation in the field of environmental issues.

2

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

Government policies also influence firm’s level of activities relating to environment. A
measurable, clear and concise policy expedites innovation and decision-making process.
Firms need to compete with businesses in countries where clear policies have sharpened the
corporate focus on waste and inefficiency and spurred innovation (Adeoti, 2008). Firms can
develop a progressive strategy if they learn to find alternatives rather than to ignore current
environment conditions. Firms particularly in emerging markets remain inert due to the
assumption that the cost of implementation diminishes the level of priority as far as
environment is concerned. In fact, responding to climate change should be seen not only as a
means of managing risks but also an opportunity for growth, capitalizing on the growing
demand for products and services that address environmental concerns. For example, a South
African utility firm shifted its energy generation mix to renewable energy. Clearly, it
responded to the pressure brought by climate change and the future resource constraints that
threaten its long-term growth and sustainability (Etsy, 2012).

3.Social
When considering the impact of the economic and environmental values in relation to market
orientation and sustainability, it is necessary to address the social aspect of sustainability. A
firm’s social stake in its market orientation suggests that multinational firms increasingly
need to consider local values and the social consequences of their activities. Such
consideration is required for them to gain legitimacy for their business activities, expressing
the notion that, among local stakeholders, the presence of the firm is desirable and deserves
acceptance and support (Reimann et al., 2012). Corporate social responsibility has proven to
be the most effective strategy for multinational to capture the attention and gain support in
local markets. In fact, multinational firms should also evaluate their corporate social
performance to enhance their sustainability. Indeed, firms have an incentive to invest in
corporate social activities in order to augment their reputation, and encourage primary
stakeholders to get involved in firms’ business activities (Brammer et al., 2009).

For a long-term sustainability of market orientation, social orientation may be a key factor in
determining multinational firms’ success, particularly in emerging markets, where attitudes
and practices differ from those of Western multinational firms. To compete, the capabilities
and resources of a firm should be rare, valuable, and difficult to imitate (Adhikari and Gill,
2011). Previous studies have identified human capital resources and physical capital
resources as the resources satisfying the above criteria, and thus capable of delivering
superior customer value. However, firms wishing to be sustainable, it is crucial that firms
consider investing in local communities and solidifying ties with locals. Without capable
local employees, local operations cannot be established. In fact, rapid economic development
in many emerging markets has already led to a shortage of skilled labour. Employees are
more likely to be productive and loyal to a firm which they trust and respect. Reimann et al.
(2012) found support for the notion that employee performance is positively related to both
working condition and firm’s community development efforts. This leads to the fact that

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

firms that provide better working conditions for their employees in emerging markets will be
more sustainable in foreign market and enjoy continued long-term success.

Firms that are the first or early to develop a market orientation gain more in sales and profit
than firms that are late to develop a market orientation (Kumar et al., 2011). When a firm is
first in market, using resources to enhance social initiatives can be the deciding factor in
obtaining employee loyalty and loyalty from the consumers in that community. Whether it is
through donating time, money or simply ensuring above average working conditions,
compared to local standards, firms need to consider as to how to develop their market
orientation to ensure sustainability.

4.Economic
Innovation determines sustainability of an organization, as it stimulates research and
development to come up with new or improved products or services (Getz and Robinson,
2003). The degree of innovation determines the economic performance of a firm’s market
orientation (Gatignon and Xuered, 1997). Successful firms develop superior products that are
attuned to customer wants and needs. It is mainly due to the fact that firms’ products are more
successful because market oriented firms would conduct market research to discover
customers’ needs. As a result, customers’ preferences match firms’ products, resulting in less
product failures, leading to superior business performance as determined by profitability,
return on investment, and market share, among others. Often firms develop market oriented
strategies to be profitable and combat entry of new firms by adjusting their marketing mix
(Robinson, 1988).

5.Conclusion and Implication for Managers
Firms need to examine how their actions affect the physical environment in which they
operate and how these actions will affect their sustainability (Wackernagel and Ress, 1997).
A firm’s ecological footprint impacts environmental consciousness. Ecological footprint is a
useful yardstick for sustainability that firms can create based on level of their activities that
will be necessary to facilitate growth and sustainability. With sustainability as the goal and
intent behind the emergence of a firm, it is necessary for managers that they examine the
external environment and adapt strategies accordingly. Clear policy and regulation should be
the framework within which a firm should develop methods and strategies as well as how it
manages daily operations and long-term actions.
It is the general value toward sustainability that needs to be engrained in a firm. However,
without access to and use of natural resources, a firm would no longer require these values
because they would eventually cease to exist. Implication for managers is that they need to
value natural resource supply and put system in place to strengthen themselves in other areas
if or when the supply of resources diminishes. Indeed, due to increasingly stringent constraint
imposed by the natural environment, the firm’s ability to deal with these constraints will
4

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

depend upon organisational capabilities, leading to economic and social outcome (Chan,
2005).
Some of the challenges in developing market orientation in emerging markets is a lack of
systematic ongoing attention to acquiring and utilizing market intelligence, improper
investing in product and service development that create competitive differentiation, and
reluctance to fostering an organisational culture that internalizes this philosophy and
expresses it in all its actions (Adhikari and Gill, 2011).

REFERENCES
Adeoti, J.O. (2008). Environmental policy and industrial response in Nigeria. International
Journal of Technology Management and Sustainable Development, 7(2), 119-136.
Adhikari, A. and Gill, M.S. (2011). Impact of resources, capabilities and technology on
market orientation of Indian B2B firms. Journal of Services Research, 11(2), 75-98.
Brammer, S., Pavelin, S. and Porter, L.A. (2009). Corporate charitable giving, multinational
companies and countries of concern. Journal of Management Studies, 46(4), 575-596.
Chan, R. (2005). Does the natural-resource-based view of the firm apply in an emerging
economy? A survey of foreign invested enterprises in China. Journal of Management Studies,
42(3), 625-672.
Etsy, D. (2012). Green rule to drive innovation. Harvard Business Review, 1, 120-123.
Gatignon, H. and Xuered, J.M. (1997), Strategic orientation of the firm and new product
performance, Journal of Marketing Research, 34, 77-90.
Getz, I. and Robinson, A. G. (2003). Innovate or die: Is that a fact? Creativity and Innovation
Management, 12(3), 130-36.
Guest, R. (2010). The economics of sustainability in the context of climate change: An
overview. Journal of World Business, 45(4), 326-335.
He, X. and Wei, Y (2011). Linking market orientation to international market selection and
international performance. International Business Review, 20(5), 535-546.
Jaworski, B.J. and Kohli, A.K. (1993). Market orientation: Antecedents and consequences.
Journal of Marketing, 57(July), 53-70.
Kettinger, W.J., Grover, V., Guha, S. and Segars, A.H. (1994). Strategic information systems
revisted: A study in sustainability and performance. MIS Quarterly, 18(1), 31-58.
Kumar, V., Jones, E., Venkatesan, R. and Leone R.P. (2011). Is market orientation a source
of sustainable competitive advantage or simply the cost of competing. Journal of Marketing.
75, 16-30.
Labuschagne, C., Brent, A.C. and van Erck, R.P.G. (2005). Assessing the sustainability
performances of industries. Journal of Cleaner Production, 13(4), 373-385.

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

Liu, S.S., Luo, X. and Shi, Y. (2003). Market oriented organizations in an emerging
economy: A study of missing links. Journal of Business Research, 56(6), 481-491.
Narver, J.C. and Slater, S.F. (1990). The effects of a market orientation on business
profitability. Journal of Marketing, 54(4), 20-35.
Reimann, F., Ehrgott, M., Kaufmann, L. and Carter, C.R. (2012). Local stakeholders and
local legitimacy: MNEs; social strategies in emerging economies. Journal of International
Management, 18(1), 1-17.
Robinson, W.T. (1988), Marketing mix reactions to entry. Marketing Science, 7(4), 368-85.
Sa de Abreu, M.C. (2011). Effects of environmental pressures on company sustainability
strategies: An interview study among Brazalian manufacturing firms. International Journal of
Management, 28(3), 909-925.
Sheth, J.N (2011). Impact of emerging markets on marketing: Rethinking existing
perspectives and practices. Journal of Marketing, 75(4), 166-182.
Slater, S.F. and Narver, J.C. (1998). Customer-led and market-oriented: Let’s not confuse the
two. Strategic Management Journal, 19(10), 1001-1006.
Wackernagel, M. and Rees, W. (1997). Perceptual and structural barriers to investing in
natural capital: Economics from an ecological footprint perspective. Ecological Economics,
20(1), 3-24.

Menu Planning With Fuzzy 0-1 Integer Programming

Kenan Oğuzhan Oruç1, Ibrahim Güngör2, Sezgin Irmak2, Semih Şenol1
1Faculty of Economics and Administrative Sciences
Süleyman Demirel University, Isparta, Turkey
2Alanya Faculty of Business, Akdeniz University, Antalya, Turkey
E-mails: kenanoruc@sdu.edu.tr, igungor@akdeniz.edu.tr,sezgin@akdeniz.edu.tr
semihh_senol@hotmail.com

Abstract
For the sustainability of development, effective usage of sources and the determination of
their optimal usage levels are very important. Healthiness, as one of the main components of
sustainable development, is under influences of many factors one of which is nutrition, and
the number of people who benefit from public nutrition services are increasing every day.

6

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                <text>Globalization and competition have forced most firms to develop competitive advantage in  order to compete and survive. In this regard, market orientation and sustainability orientation  can play a crucial role in rendering firms a competitive advantage. Market orientation relates  to satisfying current and future customers’ needs. Literature indicates that market orientation  contributes positively to business performance, and that market-oriented firms outperform  non market-oriented firms. As a result, firms are forced to be market oriented even though  becoming or increasing or maintaining a market orientation is costly, complex, and timeconsuming.  Therefore, the costs of becoming market oriented must at least be offset by  additional revenue. One of the sources of such additional revenue can be obtained by  adhering to the principles of sustainability orientation (e.g., triple bottom line), which  captures the whole set of values, issues and processes that firms must address in order to  minimize any harm resulting from their activities and to create environmental, social and  economical value. Thus, it is expected that firms that follow sustainability principles in  addition to being market oriented should outperform firms that are market-oriented only. The  premise for such expectation is that customers are more attracted to firms that care also about  social and environmental aspects of society (and not just financial) than firms that are marketoriented  only (i.e., care about customers’ needs just for financial reasons). The purpose of this  study is to explore relative contribution of market-oriented firms, and market-oriented firms  with a sustainability orientation. To assess relative contributions of both the orientations, we  speculate a trade-off between them, and recommend that any additional revenue generated  from sustainability initiatives should be redeployed to enhance market orientation that  contributes further to enhancing business performance.  Keywords: Market Orientation, Sustainability, Business Performance, 3BL</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

The Fishery Potential And Sustainable Aquaculture In Portugal
Samet Kalkan1, Mehmet Ali Canyurt2
1Istanbul University, Faculty of Fisheries, Department of Basic Science
Laleli, Istanbul, Turkey
2Ege University, Faculty of Fisheries, Department of Aquaculture
35100- Bornova, Izmir, Turkey
Abstract
In this research, the history of fishery sector and the current situation of fishery sector in
Portugal have been investigated, capture and development and potential of aquaculture sector
have been studied. Portugal is located in southwestern Europe and it is on the Iberian
Peninsula. Portugal has an important place with its total fishery production in Europe. In
1964, total fishery production which was 601.929 tonnes fell down to 207.058 tonnes in 2009.
The main reasons of this decrease in total production are sustainable production that cannot be
maintainet consistently, misuse of resources and difficult duration of adaptation and
adjustments to European Union Regulations. Nearly 97% of total fishery production is from
catching, whereas 3% is from farming. In this case it is clear that capture production is more
developed than aquaculture production. In 2009, capture production was 200.365 tonnes and
the most captured species are sardine, chub mackerel, Atlantic redfishes nei, Atlantic horse
mackerel.
Fish farming in Portugal, which started with rainbow trout production in 1965, has developed
rapidly by gilthead seabream and european seabass production and reached to 6.693 tonnes
per year according to 2009 data. According to 2008 data Portugal has 1392 fish farms and
they covered 1587 hectares. The main farmed species are grooved carpet shell, gilthead
seabream, turbot, pacific cupped oyster, european seabass and rainbow trout. Import and
export amounts of Portugal on fisferies are very high compared to Turkey. Portugal has great
potential about capture and especially aquaculture production. Thus Portugal has to improve
its aquaculture sector within sustainable productions and there must be proper management by
fish farms and governement to spread sustainability all over sector. In the future aquaculture
of Portugal will start to increase rapidly. Therefore Turkey has to improve the relations with
Portugal and they should collaborate closely.
Keywords: Portugal, Fishery, Aquaculture, Sustainability, Development
1.INTRODUCTION
Portugal is a country situated in southwestern Europe on the Iberian Peninsula. Portugal is
bordered by the Atlantic Ocean to the West and South and by Spain to the North and East.
The Atlantic archipelagos of the Azores and Madeira are part of Portugal. Portugal is defined
with Mediterranean climate (Csa in the south, interior, and Douro region; Csb in the north,
centre and coastal Alentejo; and also Semi-arid climate or Steppe climate, and is one of the
warmest European countries: According to Agencia Estatal de Meteorología-AEMET data the
annual average temperature in mainland Portugal varies from 12 °C (53.6 °F) in the
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mountainous interior north to over 18 °C (64.4 °F) in the South. The sea surface temperature
on the west coast of mainland Portugal varies from 13 °C (55.4 °F)-15 °C (59.0 °F) in winter
to 18 °C (64.4 °F)-20 °C (68.0 °F) in the summer while on the south coast it ranges from 15
°C (59.0 °F) in Winter and rises in the summer to about 23 °C (73.4 °F) occasionally reaching
26 °C (78.8 °F).
2.HISTORICAL DEVELOPMENT AND PRESENT SITUATION OF PORTUGAL
FISHERIES SECTOR
Portugal with regard to its geographic location, climate and other characteristics is quite
suitable for fisheries and aquaculture activities. The total fish production was around 300.000
tonnes before 1950. With controlled fishing since 1950, fishery production reached a value
as high as 601.929 tonnes in 1961 and, with the ups and downs in production period until the
1980’s, the total production in 1982 declined to 259.938 tonnes, rose again to 413.184 tonnes
until 1986 with increasing momentum. During the 2000's showed that the decline in
production compared to previous years (FAO, 2009) .
Portugal shows a complex structure in total fishery production. Possible reasons of decline in
production are the wrong government policies, the unbalanced use of resources,
unsustainability of establishments, lack of qualified labor force, difficulty of obtaining
permission from the governmental institutions, the problems in the EU harmonization process
and some economic problems of the country. In addition to those problems the manufacturers
are also not supported financially.
Nearly 97% of total fishery production is from catching, whereas 3% is from farming. It is
clear that capture production is more developed than aquaculture production. In 2009, the
total aquatic production in Europe was 15.871.701 tonnes. Portugal is ranked 13th among the
European countries in terms of production quantity ranks. While the total production was
601.929 tonnes in Portugal in 1964, Turkey's total production was 121.150 tonnes. Increase in
production in the 1980s, continued to raise and in 2009 the production reached 622.962
tonnes in Turkey, while the production in Portugal reached a value of 207.058 tonnes (FAO,
2009).
Considering the number of personnel in the sector, according to the years, remained almost
the same as the aquaculture sector workers. Number of employees in the fishing and
processing sectors were greatly decreased. As the data indicates this decrease has been
parallel with the decline in production.
Portugal is ranked first in Europe in respect to annual per capita fish consumption. In 2005,
annual fish consumption per capita was 55,6 kg, while the consumption per person was 7,0 kg
in Turkey (European Commission, 2010).
3.FISHERY SECTOR
Portugal, with a 940 km coastline, and a 1.727.408 km2 area is the 3rd largest country in the
EU and 11th in the World with respect to an exclusive economic zone (European
Commission, 2010).
The Fisheries sector in Portugal constitutes a large portion of total production is highly
developed. The amount of fishing in Portugal was 200.365 tonnes in 2009. With this amount
of production Portugal is ranked 12th among the European countries (excluding Turkey).
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Fishing vessels registered in the country according to 2008 data are 8666 pieces. These
fishing vessels have 380.730 kW power and 106.624 grostons (FAO, 2009).
In 2009, capture production is 200.365 tonnes and the most captured species are sardine
(Sardina pilchardus-60.927 tonnes), chub mackerel (Scomber japonicus-14.961 tonnes),
Atlantic redfishes nei (Sebastes spp.-10.452 tonnes) and Atlantic horse mackerel (Trachurus
trachurus-11.841 tonnes) (FAO, 2009).
4.AQUACULTURE
In Portugal, the first fish breeding efforts began in 1965 with rainbow trout. In the 1980s, the
farming of trout and even the shellfish has continued to be growing. In the first half of 1990,
attention is given to marine fish farming, and marine fish production increased and widely
used since that date (Dinis, 1999).
The amount of aquaculture production in Turkey has increased rapidly during last 20 years
with respect to Portugal. In the last 20 years it has increased 8-9 times. By 2009 annual
production reached 165.455 tonnes. However, in Portugal, production was observed to be in a
decrease. By the year 2009, 6.693 tonnes of aquaculture production did not meet the
production expectations (FAO, 2009).
There are 1392 licensed fish farms in the country. Fish farms were located along the coastline
of the country in general, covering 1587 hectares. 1226 licenced farms are extensive fish
farms in the country, 97 are semi-intensive, while 69 of them operate as intensive. 28% of
them has a production capacity of 100-500 tonnes. Aquaculture in the lagoons is very
important because they cover a large area in the country. 85% of total aquaculture production
comes from the lagoons, 7% in from cages and 8% from tanks ( Salz, 2006).
In order to establish a fishery company in Portugal a permission from the Directorate General
of Fisheries-Aquaculture and Hunting (GDPA) should be obtained. As a result of preexamination conducted after obtaining permission from GDPA, the Fisheries Research
Institute (IPIMAR) should be consulted. Deemed appropriate by the regulatory approvals
required for feasibility studies and, respectively, the local Port Management, Veterinary
Directorate (DGV), Nature Reserves Conservation Institute (ICN), Environment Directorate
(DRA), the Regional Public Health Administration (ARS), and finally the Local Council are
to be consulted. After all these transactions, and the application is deemed appropriate in the
circumstances, businesses are given approval to start operating (Vaz, 2008).
Fish farming of Portugal, which started with rainbow trout production in 1965, has developed
rapidly by gilthead seabream and european seabass production and reached to 6.693 tonnes
per year according to 2009 data. The main farmed species are grooved carpet Shell (Ruditapes
decussatus- 2.340 tonnes), gilthead seabream (Sparus aurata-1.345 tonnes), turbot (Sparus
aurata-1.345 tonnes), pacific cupped oyster (Crassostrea gigas-461 tonnes), european seabass
(Dicentrarchus labrax-420 tonnes) and rainbow trout Oncorhynchus mykiss-246 tonnes)
(FAO, 2009).
Examining the data of the last 10 years aquaculture farming fluctuating sea bream and sea
bass were monitored. In the southern regions of Portugal, the temperature is not very suitable
for trout farming and production, for this reason trout culture takes place in northern region at
the suitable temperatures. Very intensive production is in question, although not observed
gradual decrease of production due to various reasons. Turbot hatcheries have shown a rapid
increase in recent years.
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5.IMPORT AND EXPORT OF FISHERY PRODUCTS
The total value of import and export of fishery products in Portugal is €1.755.363.000 in
2008. Export amount is 131.531 tonnes and value is € 484.760.000. Import amount is 376.293
tonnes and value is €1.273.613.000 in same year. The total value of import and export of
fishery products in Turkey is €415.329.000. Export amount is 60.054 tonnes and value is
€288.713.000. Import amount is 120.242 tonnes and value is €126.616.000 (European
Commission, 2010).
6.CONCLUSIONS AND RECOMMENDATIONS
Portugal has a great potential about capture and especially aquaculture production. Fishery
production in Portugal has an important position in the European Union. Portugal aquaculture
with the support of EU in the coming years is expected to rise rapidly. Thus, Portugal has to
improve its aquaculture sector within sustainable productions and there must be proper
management by fish farms and governement to spread sustainability all over the sector. In the
future, aquaculture of Portugal will start to increase rapidly. Therefore, Turkey has to improve
the relations with Portugal and they should be in close collaboration.
REFERENCES
Agencia Estatal de Meteorología-AEMET.
Dinis, M.T., Moreno, C., Noronha, I. (1999) Estudo de Caracterização e Diagnóstico do
Subsector da Aquicultura, 48p.
European Commission, (2010) Fisheries and Aquaculture in Europe, 12p. European
Commission, 2010, Facts and figures on the CFP (Basic Data on the Common Fisheries
Policy), Luxembourg, 44p.
FAO Fisheries and Aquaculture Department, (2010) The State of World Fisheries and
Aquaculture, Rome, 196p.
Salz, P., Buisman, E., Smit, J., Vos, B., (2006) Employment in the fisheries sector: current
situation, 185p.
Vaz, T. (2008) CIHEAM Country Profile: Portugal: Agriculture, Fishery, Food and
Sustainable Rural Development, University of Algarve, 25p.

86

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                <text>In this research, the history of fishery sector and the current situation of fishery sector in  Portugal have been investigated, capture and development and potential of aquaculture sector  have been studied. Portugal is located in southwestern Europe and it is on the Iberian  Peninsula. Portugal has an important place with its total fishery production in Europe. In  1964, total fishery production which was 601.929 tonnes fell down to 207.058 tonnes in 2009.  The main reasons of this decrease in total production are sustainable production that cannot be  maintainet consistently, misuse of resources and difficult duration of adaptation and  adjustments to European Union Regulations. Nearly 97% of total fishery production is from  catching, whereas 3% is from farming. In this case it is clear that capture production is more  developed than aquaculture production. In 2009, capture production was 200.365 tonnes and  the most captured species are sardine, chub mackerel, Atlantic redfishes nei, Atlantic horse  mackerel.  Fish farming in Portugal, which started with rainbow trout production in 1965, has developed  rapidly by gilthead seabream and european seabass production and reached to 6.693 tonnes  per year according to 2009 data. According to 2008 data Portugal has 1392 fish farms and  they covered 1587 hectares. The main farmed species are grooved carpet shell, gilthead  seabream, turbot, pacific cupped oyster, european seabass and rainbow trout. Import and  export amounts of Portugal on fisferies are very high compared to Turkey. Portugal has great  potential about capture and especially aquaculture production. Thus Portugal has to improve  its aquaculture sector within sustainable productions and there must be proper management by  fish farms and governement to spread sustainability all over sector. In the future aquaculture  of Portugal will start to increase rapidly. Therefore Turkey has to improve the relations with  Portugal and they should collaborate closely.  Keywords: Portugal, Fishery, Aquaculture, Sustainability, Development</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

TOWARDS SUSTAINABLE TRANSPORT POLICY AND HARMONIZING EXTERNAL TRADE BY MODE OF
TRANSPORT: MACEDONIAN CASE
Ph.D Riste Temjanovski, Associate Prof.79

Abstract
There is a growing imbalance between modes of transport in all over the world. The increasing success of
road and air transport is resulting in ever worsening congestion, while, paradoxically, failure to exploit
the full potential of rail. But saturation in certain parts of the European Union must not blind us to the
fact that outlying areas have inadequate access to central markets. In this context the main engagement
in the trans-European policy is to pursue the optimization of the interregional transport services at the
European level through a multimodal approach and interoperability for each transport mode. Coherent
transport policy can contribute to reduction of the budget expenses for the transport sector by providing
the conditions for efficient management of infrastructure or the instruments for internalization and
reduction of transport external costs.
For Macedonia case, transport plays essential role for economic development. Regional co-operation in
Western Balkans is of even greater importance today. From a commercial point of view, the Union is the
main trading partner for Western Balkans, and its business cooperation with these countries has
increased in importance.
But, one mode of transport is consistently predominant. Road transport was the main mode of transport
used for trade with European countries. The analysis of external trade shows that road transport was by
far the most used mode of transport for trade with 92% by value. But in terms of volume, this accounted
for 89% over the five years. Also showing a higher percentage in terms of volume than value, rail
transport accounted only between 12-20% by volume and between 5-10% by value.
In addition, the Republic of Macedonia should take advantage of its position, harmonize all transport
modes, because such as South-East European country, it is at intersection of routes to Balkans,
Mediterranean and Caspian Region and Asia. Corridors VIII and X are expected to be ones of the impulses
to generate economic development among countries of Western Balkans.
Sustainable transport is an enormously complex and dynamic subject, and it can be concluded that the
transport system in this region can be improved by favoring those transport modes which are more
effective and environmentally friendly.

79

d-r Riste Temjanovski, vonredni profesor - Associate Prof. Riste Temjanovski, PhD, Goce Delcev" University – Faculty
of Economics – Stip, R.of Macedonia e-mail: riste.temjanovski@ugd.edu.mk

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Key words: sustainable transport, sustainable development, transport modes, road transport, external
trade, Western Balkans

Introduction

Transport is a key element in the development of any society. Advances in transport technology
have extended the range of markets, enabled new methods of production, fostered specialization and
strengthened social, political and economic ties between countries and major geographic areas.
Transport creates valuable links between regions and economic activities, between people and the rest
of the world.
The demand for transport of people and goods is rising from day to day, and the consequences are
reflected in an overburdening of parts of the transport network and an imbalance in the overall
transport infrastructure. In the last few years private passenger road traffic in particular has been
growing at the expense of other modes of transport, which shows up in the unfavorable ratio in the
choice of transport mode.
Transport represents one of the most important human activities worldwide. It is an indispensable
component of the economy and plays a major role in spatial relations between locations. The trade of
goods, finance, information and people among the world’s economies is not new. But in recent decades
the international flow of trade and finance has grown to unprecedented levels and become essential to
the world economy.
Transport is one of Europe’s strengths. European transport systems compare well in terms of efficiency
with other developed regions of the World and they are an essential component of the European
economy. The European countries differ both regarding the level of transport development as well as in
the priorities of development plans. On the one hand are the countries of the European Union with
developed transport systems, and on the other the countries in transition, that have poorer transport
infrastructure and fleet as well as inefficiently organised transport. In transition countries the efforts of
institutional restructuring of government management of transport infrastructure are particularly
noticeable. However, the developed countries as well deal seriously with issues of privatising the
transport sector and the transport infrastructure.
The development and progressive completion of a Trans-European network, as the infrastructure basis
for the flows of goods and the free movement of people in the Internal market, remains a vital policy
objective for the EU that will bring the Western and Eastern part of the Union together and so creating
the future Single European Transport Area.
Trans-European transport policy is key factor to stimulate economic development in Europe. For the
countries from Western Balkans integration in the world economy has three aspects:
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 a regional one, that involves the economic relations between each other and other
countries in Western Balkans and Central and Eastern Europe, (many of which are
members of the Central European Free Trade Area - CEFTA);
 a European one that involves primarily their relations with the European Union (EU), by
far their most important trading partner and source of direct investment; and
 a global one, that involves their trade relations with the rest of the world.
While in many respects they are giving the European dimension the highest attention because of the
importance of their economic links with the EU, they cannot afford to ignore the other two dimensions:
their relations with the EU will yield greater benefits, if they are pursued within a liberal trade
environment towards the rest of the world; and the same is true for their relations with their neighbors
which are also on a path to integrate in the European structures.
Transport systems in the countries in transition differ significantly in both structure and scale. For
instance, some carry exceptionally high volumes, if only because of the surface area they cover and the
size of the population they serve. In addition, progress with the economic reform process varies widely
from one country to another and not all countries are introducing market mechanisms at the same pace,
this being the case in the transport sector.
For Macedonia case, transport plays essential role for economic development. Regional co-operation in
south Eastern Europe is of even greater importance today, in the aftermath of conflict in former SFRJ,
than a two decade ago. Political and commercial ties amongst EU member states and countries from
Western Balkans are strengthening rapidly. Political ties are tighter due to the fact that the Western
Balkans countries aim to become full members of the Union, and their relations with the Union are
based on different agreements bringing them closer to full integration. From a commercial point of view,
the Union is the main trading partner for Macedonia, and its business cooperation with these countries
has increased in importance.

Macedonia and Core Regional Transportation Network
Republic of Macedonia is a landlocked country located in the south-central part of the
Balkan Peninsula. Country area is 25.713 sq km bordering with two EU member states: in the
south - Greece and in the east - Bulgaria. The neighbor in the north is Serbia and Kosovo, and
Albania in the west.
The economy in Republic of Macedonia is ranging on the list of non-so-successful economies in
transition. As a new independent state, it has strived very hard to survive and to maintain
macroeconomic stability, while at the same time implementing all the necessary reforms that were
requested by international organizations. During the last two decades, Macedonia has been
progressively opening its market and has made progress in liberalizing its economy.

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The transport sector has an important role in the national economy. In addition, the
Republic of Macedonia should take advantage of its position, because such as South-East
European country, it is at intersection of routes to Balkans, Mediterranean and Caspian Region
and Asia. Republic of Macedonia is promoting the concept of EU Neighborhood Policy into the
transport field for better connection the EU with the neighboring countries and regions. External
links include all direct links of the Country with neighbouring countries, as they manifest the
most direct relations as parts of the obligations to develop good neighbourly relations and
intensive exchange and cooperation with the surrounding.The major transnational axes are those
which contribute most to promote the international exchanges and traffic as well as to enable
regional cooperation and integration. The High Level Group document has determined the EU
member states Major Trans - National axes, where the South Eastern axis links the EU through
the Balkans and Turkey to the Caucasus and the Caspian Sea as well as to Egypt and the Red Sea.
Access links to the Balkan countries as well connections towards Russia, Iran and Iraq and the
Persian Gulf are also foreseen as well as a connection from Egypt to the South towards other
African countries. SEE axis which are passing through Republic of Macedonia, fully are covering
the existing defined Corridor X and VIII. On the existing Corridor X, with a total length of 172
km, passing the country in North - South direction; at about 71% has been already finalized to
modern highway standards and the remaining sections accounting 29% of the total being ready
for tender procedures.
On the existing Corridor VIII, with a total length of 304 km, crossing the country from
East to West, is less advanced in comparison to Corridor X. Only 36.3 % of the total length is
already built to modern highway standards. Corridors VIII and X are expected to be ones of the
impulses to generate economic development among countries of Western Balkans. In other hand
they also play a main role in domain the Economic and Environmental Programs in this regional
policy. These corridors would be assisted by the establishment of set of multilateral principles
and encourage the transfer of passenger and goods.
Distances from major destinations

Country
Zagreb ( Croatia)
Sarajevo (Bosnia and
511

Distance in
km
815 km
450 km

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

Herzegovina)
Belgrade (Serbia)
Sofia (Bulgaria)
Tirana (Albania)
Prishtina (Kosovo)
Thessalonica (Greece)
Athens (Greece)

420 km
250 km
230 km
90 km
230 km
700 km

The European Community is supporting the implementation of these projects to attain
greater, efficient transport system whish reduce regional disparities and effective better balance
between European countries.
There is strong political commitment to the development of the regional transport
networks is confirmed with the signing of the Memorandum for understanding of the
development of the South East Europe Core Regional Transport Network in June 2004.
More recent efforts for defining the Core Regional Transport Network are made with in the future
Treaty for Establishing a Transport Community between the EU and South East Europe Partners
which should be in force by 2011.
Border crossings
The border cross issue is depending mainly on the successful implementation of the
modernization of customs regulations, improvement and operability of the cross border buildings,
enhancement of the battle against smuggling, corruption and illegal human trade. The other issues
are mostly related with the interaction between the public and private sector and strengthening of
the regional cooperation.
The number of official border crossings in the Republic of Macedonia towards the
neighboring countries is:
a) 15 road border crossings:
3 with Bulgaria (Deve Bair near Kriva Palanka, Novo Selo near Strumica, and
Delcevo);
3 with Serbia (Tabanovce, Sopot and Pelince near Kumanovo);
2 with Kossovo (Jazince near Tetovo; and Blace near Skopje);
3 with Greece (Bogorodica near Gevgelija, Medzitlija near Bitola, and Star Dojran
near Dojran); and
4 with Albania (Stenje near Resen, Sveti Naum near Ohrid, Kafasan near Struga, and
Blato near Debar).
b) 3 railway border crossings:
2 with Serbia (Tabanovce near Kumanovo, and Volkovo near Skopje);
1 with Greece (Bogorodica near Gevgelija).

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

c) 2 airport border crossings in Skopje (Alexander the Great Airport) and Ohrid (St. Paul
the Apostle Airport).
According to the National Strategy for Integrated Border Management, categorization is
carried out at border crossings in regards to their operational capacity (current and prospective).
Improving the throughput of the crossings, with full respect to the previously mentioned concept
of " accessible but secure borders and “Schengen best practice" in this country are implementing
the concept of "Single Window" and "One-Stop-Shop". By applying these concepts, will greatly
reduce the waiting time at the crossings as well as their transfer, which will produce major
positive economic effects. Some of the issues in the near future will be placed among others:
 The harmonization of customs procedures with neighboring countries
 The harmonization of categorization of the borders with neighbors.

The development of border crossings depends largely on successful implementation and
modernization of customs legislation, improving the operation of border crossings and
intensifying the fight against smuggling, corruption and trafficking of human beings, respecting
the basic principles of "accessible but secure borders”. Other issues in greater extent are related to
the interaction between public and private sector and strengthening of regional cooperation.
National Transportation Network
Transport network of the Republic of Macedonia, structured of several communication sub-systems, has
been established through the system of transport and communications, upon which national space is
organized. Transportation system of the Republic of Macedonia is composed of road, railway, air, lake
transport and post traffic and system of communications consists of telecommunications and radiodiffusion system.

- Road transport. Republic of Macedonia has a total of 13.940 km categorized road network, out of which
911 km are national roads, 3771 km ragional and remaining 9258 km local roads. Major part of national
roads or 553 km are included in the European roads "E" system, while only 251 km of motorways may be
included in the TEM TEM (Trans– Europe Motorway) system of roads, these being: Border R.Serbia Kumanovo - Petrovec - Veles - Gradsko -Negotino - (to Demir Kapija); Skopje - Petrovec; HipodromMiladinovci; Skopje (Saraj) - Tetovo; Tetovo - Gostivar. Out of the total length of categorized national and
regional road network, 251 km (4.7%) are at motorway level, 341 km (7.9%) are with tracks width of 7
meters or more, 297 km (6.9%) are of tracks width of 7 meters and less, 1523 km (35.3%) have width
bigger than 5.5 meters, 306 km (7.0%) are of width ranging from 4.5 and 5.5 meters, 872 km (20.2%)
with width less than 4.5 meters and 774 km (17.9%) are with earth tracks.

The national road network is of a high density with the exception of the highways. Today,
the overall road network of the country has a total length of 13898 km. The network itself is a
good starting basis for further development.
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Table 1: Type of roads and total length in Republic of Macedonia
Type of roads

Total length (km)

Highways
251
Magistral roads
911
Regional roads
3771
Local roads
9258
TOTAL
13940
Source: State statistical Office: Statistical Review: Transport, tourism and other services. 8.4.10.04.669. Skopje:
Statistical Office 2010.
Table 2: The assessment of the general conditions of the road infrastructure
Good
Medium

Poor

Highways (Magistral 2x2)
Magistral (M 1x2)
Regional 1 (R1)
Regional 2 (R2)
Gravel (R2)

10%
10%
28%
50%
50%

60%
60%
45%
20%

30%
30%
27%
30%
50%

The overall condition of the road structure (main and important regional roads) is lower in
comparison to European and some Neighboring Countries Standards. The existing constructions are in
fact generally strong and of a good quality. The magistral roads, and in particular the highways, which
have to carry the higher portion of traffic are in a better condition than those of second importance. The
worst conditions can be assessed on low-traffic regional roads; most of them with dead ends. Many of
them don't present neither geometric, structural, nor traffic characteristics and not justifying their
classification into the regional road network.

- Rail transport. The Railway Infrastructure in the Republic of Macedonia was
constructed in 1873 with the first Railway Track from Skopje to Thessaloniki in Greece. Today
the railways network is about 696 km in single track lines and normal gauge of 1435mm.
There are 53 locomotives, 110 passenger cars, and 1323 freight wagons. In 2009 the railway
carried 1.523.000 passengers, equating to 154 million passengers/kms. As for cargo, the railway has
carried 2.929.000 tons, equating to 497 million ton-kms of cargo. The railway carries selected bulk
commodities including fuels, coals, cokes, steel products and clinker/cement.
The main line on Corridor X from Tabanovci to Gevgelija – via Skopje and Veles is a single-track line,
electrified (25Kv, 50Hz) and relay signal system which allows a good exchange of communication by
fiber-optic cable. The last renovation on most sections has taken place 30 years ago. The total length of
the railway infrastructure in Corridor VIII is about 307 km on the territory of R. of Macedonia and 152 km
(or 49%) are constructed and operational. Аbout 89 km or 25% of the total length are remaining to be
constructed on the link with Bulgaria and 66 km or 20% of the total length on the link with Albania
subject to construction.
The railway system suffers from a chronic lack of maintenance that has been evidenced for many
years and the rehabilitation that will be required to recover the position to achieve acceptable levels of
safety at speed are difficult to quantify with any accuracy at this time.
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Besides incomplete basic infrastructure network: the missing part of Corridor VIII and
still no electricity on part of Corridor VIII, which is in function, and branch Xd of Corridor X,
there are several factors that explain the relatively small role of railways in the transport system
of the country. All major issues related to geographical features of the state, i.e. the short distance
among urban centers in the country especially between Skopje - Veles, Skopje - Kumanovo and
Skopje-Tetovo are currently limiting factor for the low level of technical and technological
development. This lack of adequate investment in infrastructure especially in transport can
become a great asset to the extremely large benefit for the country (in all European countries
there is well-organized suburban rail passenger traffic).
In 2007 Macedonian Railways (Makedonski Železnici; MŢ) was reorganized into two separate joint stock
companies—a public enterprise in charge of infrastructure management, Macedonian Railways
Infrastructure (MŢ-I) and a transport company in charge of passenger and freight operations,
Macedonian Railways Transport (MŢ-T). R.of Macedonia adopted a new railway law and rail safety law in
2010, both of which entered into force on April 17, 2010. Since 2007, there are two independent rail
companies as successors to Macedonian Railways—Public Enterprise Macedonian Railways
Infrastructure (MZ Infrastructure) and the joint-stock company Macedonian Railways Transport (MZ
Transport). This change was part of a broader railway reform program aimed at making the Macedonian
rail sector comply with EU directives and the EU rail acquis, and by doing so, increase the commercial
orientation of activities in order to allow the rail system to operate successfully and in competition with
other operators.

Trade and role the transport mode

The adaptation of the national economy to the European market is necessary, considering the fact that the
European Community is important external trade partner, and integration processes in Europe will result
in long-range economic and other implications on future cooperation. The involvement of the economy of
the Republic of Macedonia into integrated developments in Europe has been conditioned by the
commencement of the process of economic restructuring, introduction of modern technical and
technological solutions and international standards. The national economy, due to limited accumulation
and need for intensified economic development and changing of unfavorable economic structure will
remain liable to utilization of additional accumulation from abroad.
One mode of transport is consistently predominant in transport and trade of passengers and goods.
Road transport was the main mode of transport used for trade with European countries other than EU.
The analysis of external trade shows that road transport was by far the most used mode of transport for
trade. Road transport was the main mode for 92% of exports and 79% of imports by value (the same
transport mode participate with 89% over the five past years of export by volume and 72% of import by
volume) with 92% by value. Also showing a higher percentage in terms of volume than value, rail
transport accounted only between 12-20% by volume and between 5-10% by value.
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

The volume of goods exported from the R. Macedonia by rail between 2005 and 2010
decreased by 10.48% (2005) to 5.77 % (2010).
The volume of export by air is 0.10%, mainly on account of the volume of goods traveling by air with EU27, but because of the small volume of this trade, the participations is not as significant as it appears. By
contrast, imports by air scope by 2.63% (by value) over the five years period, with EU-27 as the main
trading partners.

Table 3: Modal split in Macedonian trade in terms of value-volume; export-import.

Modal split in Macedonian trade in terms of value-volume; export-import.

value export

value import

volume export

volume import

Transport mode
USA $

%

USA $

%

kg

%

kg

%

Rail

190.378.973

5.77

726.374.069

5.82

329.528.188

10.03

726.374.069

12.66

Road

3.058.399.535

92.33

4.152.519.023

79.77

2.953.033.151

89.87

4.152.519.023

72.36

Pipeline

3392586

1.03

591558654

10.85

0

0

780694204

13.6

Air

18689889

0.57

146128022

2.68

3169343

0.1

957543

0.2

Mail

401283

0.01

2719638

0.05

3028

0

90947

0

Others

33575

0

45038630

0.83

641

0

77912712

516

1.36

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

Graph 1: Modal split in Macedonian trade in terms of value (USA $) and volume (tonnes) export

Graph 2: Modal split in extra EU-27 trade in terms of value (USA $) and volume (tonnes) imports

Promote the Sustainable transport policy
The twentieth century, more than any other, has seen a considerable growth of the transport demand
related to individual (passengers) as well as freight mobility. This growth is jointly the result of larger
quantities of passengers and freight being moved, but also the longer distances over which they are
carried. Recent trends underline an ongoing process of mobility growth, which has led to the
multiplication of the number of journeys involving a wide variety of modes that service transport
demands.
But how to attain harmonizing transport modes?

The basic strategic determination of transport policy of the Republic of Macedonia is the
achievement of higher level of the overall functional integrity of the space in the Country, as well as
facilitation of conditions for significantly greater infrastructure and economic integration with
neighboring and other European countries. Macedonian transport policy should place rail and road
transportation on an equal footing: the legal provisions and the level of financial contribution of
the state for railway and road infrastructure should be equivalent. This will allow users to make
the socially optimal choice between the two modes for each trip.
The achievement of higher level of integrity of the space in the country assumes reduction of regional
disparities, i.e. quality changes in spatial, economic and social structure, especially in areas with
emphasized malfunctions of social and economic development. An Integrated transportation system
has a key role to play in facilitating economic growth in remaining competitive by having access to fast,
efficient and reliable transport services, as well as ensuring individual mobility through offered transport
services.

 Operating, managing, maintaining and executing new constructions of the transportation
network directly contributes to the economy, linking people to their works and other daily
517

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

activities, promotes employment as a key element of social inclusion which enables
economic growth. Transport can also contribute on releasing the economic and
regeneration potentials of particular areas in the country.
 With developing the transport network, we promote the social inclusion by connecting
remote and disadvantaged communities and increasing the accessibility of the transport
network;
 The immediate expected impact of a transport investment is to reduce general transport
costs, lead times for transportation in general and having a positive impact on the short
term GDP development.
Strategy for sustainable development of the Republic of Macedonia for the next period must
take into account into:
 Improvement of the urban flow and traffic, securing the urban transport infrastructure’s role in
reducing the green house gas emissions;
 Implementation of environmental noise protection, and support for a transport system that
efficiently plans land use while preserving vital habitat and biodiversity;
 Undertaking measures that improve the economic and ecological sustainability of transport;
 Strengthen the broad horizon of policy setting for sustainable development, i.e. without losing
sight of environmental sustainability, look beyond it and treat economic and social sustainability
as equally important aspects in transport policies;
 The new railway line will lead to a reduction of negative externalities in result of the modal shift
of passenger and freight traffic from road to rail. These externalities are mainly the reduction of
road accidents, air pollution, CO2 emissions and noise.
 Space protection and reservation for future strategic transport corridors, for which there are no
transportation and economic arguments at present;
 Interconnection of the Republic of Macedonia and neighbouring countries, for the purpose of
establishing links between Macedonian rail transport and other points.

Delivering an optimal solution can only be achieved if the issue is addressed in a cross–
sectoral models. Planning and policy development outside the transport sector must take transport
generation into account and provide the information necessary to find an optimal solution.
Planners and policymakers must essentially decide how they want cities to look and how they
want people and goods to be transported in the future. Transport policy is not some miraculous
tool with which to solve a society's development problems. It must work in unison with national
development programmes, physical planning, investment, economic and monetary policy, legal
regulations and other areas. It must move in step with the implementation of these programmes
and respond with vitality and responsibility to the changes taking place in society. We must all
acknowledge that, in many respects, our quality of life depends on the success of our transport
policy.
Conclusion

The undoubted favorable geographical position of the Republic of Macedonia and its complexity
may lead to greater spatial and functional integration with its neighborhood and wider, through well
518

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

designed and systematic transport infrastructure. The greater integration of the Republic of Macedonia
into European and global transportation developments requires maximum utilization of its geographical
position towards direct surrounding. The fact that one of the most important transportation corridors,
connecting Scandinavian and Baltic regions, through the countries of Central Europe with the countries
of the Near East i.e. South Africa, passes through the Country deserves particular respect.

In the future the especially point will be taken to:


Development of transportation system that will minimize harmful impacts of the traffic
on environment and contribute to an improved quality of living in urban and rural areas
of the country;
 Establishment of transport intermodal centres, as main contact points among different
transport types, as a precondition costeffective transportation system (Goods
transportation via air, railway and combined goods transportation);
 Dynamic implementation of infrastructure, through application of priorities based on
transport and economic criteria, in line with strategic determinants of the country when
transportation acts as initial factor of the overall development;
 Specific development of tracks passing through or by major urban agglomerations;
 Increase of pass through capacity of the Macedonian transportation system, its
connection with neighbouring countries and joint connection to European systems and
trends;
 Maximum utilization of traditional roads when locating the main transportation corridors;
Adjustment of general tracks positioning to natural relief characteristics;
 Adaptation of transportation network to the main generators of future movements of
passengers and goods transport;
 Minimization of transportation time and costs;
It should be noted that external connection of the country will be based on defined communication
corridors in line with international conventions and agreements, reflecting our orientation towards
European and Balkan commitments towards economic and technological communications. The level of
transport system development and its integration into corresponding European systems and trends will
determine the directions and communications of people and products, as well as capital and information
flows within the country and beyond. Development is expected to include expansion, improvement and
modernization of communication subsystems in the Republic of Macedonia. Integrated combined
transport for fast transfer of goods by modern methods and technologies is expected to develop in relation
to the development of supportive goods transportation centres. To this end, synchronization among
terminal blocks for land and air traffic should be established and demands for transit, import-export and
internal goods transportation harmonized.
References:
1.

Borruso G.: The Adriatic Corridor. International Adriatic Conference "Vision Planet project INTERREG
II". Trieste, Italy - 1,2 1999. pp 1. http://www.univ.trieste.it/vplanet.index.htm
2. EUROSTAT (2009): Transport infrastructure in the European Union and Central European Countries 19902009. Statistics in focus: Transport, Theme 7 - 4(2009). 2.0.1105.
3. EC. 2007. Trans-European networks: Towards an integrated approach. Brussels:
Commission of the European Communities, Directorate General for Regional Policy.

519

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

4. EC.

2009. Green Paper TEN-T: A Policy Review: Towards a Better Integrated
Transeuropean Transport Network at the Service of the Common Transport Policy.
Brussels: Commission of the European Communities, Directorate General for Regional
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5. European Comission: Thematic Evaluation of the Impact of Structural Funds on Transport Infrastructures.
(Final Report). Oscar Faber, United Kingdom..et al., 2000, pp.1-3.
6. EC: White paper: European transport policy for 2010: time to decide. Luxembourg: Office for Official
Publications of the European Communities, 2001. pp. 10-15.
7. Kinnock Neil,. http://europa.eu.int/en/comm/dg07/speech/sp9861.htm (31. 03. 1998)
8. Memorandum of understanding on development of the Pan-European Transport Corridor X.
9. Report of the preliminary atudies of the creation of a new transport corridor "west-east": across Albania,
Macedonia and Bulgaria. Sofia: Transproekt, 1993. p. 28.
10. Transproekt (1993): Report of the preliminary studies of the creation of a new transport corridor "WestEast": across Albania, Macedonia and Bulgaria. Sofia: Transproekt, 1993. str. 4.

520

�</text>
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                <text>TOWARDS SUSTAINABLE TRANSPORT POLICY AND HARMONIZING EXTERNAL TRADE BY MODE OF  TRANSPORT: MACEDONIAN CASE</text>
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                <text>Riste , Temjanovski</text>
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                <text>There is a growing imbalance between modes of transport in all over the world. The increasing success of  road and air transport is resulting in ever worsening congestion, while, paradoxically, failure to exploit  the full potential of rail. But saturation in certain parts of the European Union must not blind us to the  fact that outlying areas have inadequate access to central markets. In this context the main engagement  in the trans-European policy is to pursue the optimization of the interregional transport services at the  European level through a multimodal approach and interoperability for each transport mode. Coherent  transport policy can contribute to reduction of the budget expenses for the transport sector by providing  the conditions for efficient management of infrastructure or the instruments for internalization and  reduction of transport external costs.  For Macedonia case, transport plays essential role for economic development. Regional co-operation in  Western Balkans is of even greater importance today. From a commercial point of view, the Union is the  main trading partner for Western Balkans, and its business cooperation with these countries has  increased in importance.  But, one mode of transport is consistently predominant. Road transport was the main mode of transport  used for trade with European countries. The analysis of external trade shows that road transport was by  far the most used mode of transport for trade with 92% by value. But in terms of volume, this accounted  for 89% over the five years. Also showing a higher percentage in terms of volume than value, rail  transport accounted only between 12-20% by volume and between 5-10% by value.  In addition, the Republic of Macedonia should take advantage of its position, harmonize all transport  modes, because such as South-East European country, it is at intersection of routes to Balkans,  Mediterranean and Caspian Region and Asia. Corridors VIII and X are expected to be ones of the impulses  to generate economic development among countries of Western Balkans.  Sustainable transport is an enormously complex and dynamic subject, and it can be concluded that the  transport system in this region can be improved by favoring those transport modes which are more  effective and environmentally friendly. Key words: sustainable transport, sustainable development, transport modes, road transport, external  trade, Western Balkans</text>
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                    <text>Memon et al 2008. Metal accumulation in crops- Human health issues, In : Trace ElementsNutritional benefits, environmental contamination, and health implications, Ed. M. N. V.
Prasad, John Wiley &amp; Sons pp. 81-97
Memon, A. R., Aktoprakligıl, D., Özdemir, A., and Vertii, A. 2000. Gene expression of heavy
metal stress protein in plants. Turkish J. Botany 25, 111-121
Memon, A. R., Yildizhann Y. and Keskin, B. C. Phytoremedıatıon of heavy metals from
contamınated areas of Turkey. 4th European Bioremediation Conference, Sept 3-6, Chania,
Crete, Greece, ID04 pp1-4, ISBN 978-960-8475-12-0.
Baker, A.J.M., McGrath, S.P., Reeves, R.D., Smith, J.C.A. (2000). Metal Hyperaccumulator
Plants: A Review of the Ecology and Physiology of a Biological Resource for
Phytoremediation of Metal-Polluted Soils.In: Terry, N., Banuelos, G. Eds. Phytoremediation
of Contaminated Soils and Water. Boca Raton, Florida, USA.
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125-133.
Claverie,J.M. Cedric Notredame (2007). Bioinformatics For Dummies (2nd). Indianapolis,
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Engineering of microalgae for biofuel production
Recep Vatansever1, Sanija Cavar1,2, and Abdul Razaque Memon1
1Department of Genetics and Bioengineering, Faculty of Engineering and Information
Technologies, International Burch University, 71000 Sarajevo
2Department of Chemistry, University of Sarajevo, Sarajevo, Bosnia and herzegovina
Abstract
Increasing of the world population along with the economic wealth deepens the energy crises
every day. Hence we need to find the new alternative energy sources that will satisfy the
energy demand and concomitantly deliver no emission to the environment.
In this particular situation, plants offer us a highly efficient and effective solutions. However
use of higher plants for such purposes can cause several problems such as food competition,
water shortage, arable land, fertilizer etc. Algae are tiny biological factories that use
photosynthesis to transform carbon dioxide and sunlight into energy so efficiently that they
can double their weight several times a day. As part of the photosynthesis process algae
211

�produce oil and can generate 15 times more oil per acre than other plants used for biofuels,
such as corn and switchgrass. Algae can grow in salt water, freshwater or even contaminated
water, at sea or in ponds, and on land not suitable for food production.
We are working on Chlamydomonas reinhardtii and some other algae to increase their
biomass and lipid production which can in future stand as an alternative energy source for
next generation. We started our research with Chlamydomonas reinhardtii since it was a
model organism. Chlamydomonas reinhardtii is a single celled photosynthetic microorganism
and produces a kind of lipid which can be easily converted for biofuel production. The
process of making biodisel from algae contains a number of seperation steps; separating the
algea from the media, separating the oil from the algea and removing the glycerol from the oil
to lower the viscosity. Hence our aim is to produce a high biomass algea strain containing a
high amount of lipid which can be efficiently used for biodiesel production.
1.INTRODUCTION
Energy is one of the most essential requirements for all living organisms and industry.
Developing technologies and increasing world population also deepens this requirement. In
order to meet this energy demand, today we heavily depend on the conventional energy
sources such as coal, natural gas, oil, firewood etc but estimations show that these energy
sources are not both sustaniable and environmental friendly.
They are also a potential threat for the global climate changes since they contribute the
highest amount of greenhouse gases. So we need to produce global strategies that must be
sustaineble, renewable and environmental friendly [1]. In this particular situation, plants offer
us a highly efficient
and effective solutions. However, intenting to use
higher
plants for such purposes can cause several
problems
Table 1
such as food competition, water shortage, arable
land, fertilizer etc. But lower plants such as
microalgae offer us more sustainable and
permanent solutions. Algae can grow in salt water,
freshwater or even contaminated water, at sea or in
ponds, and on land not suitable for food
production. Recent researches and estimations also
confirmes that algae are one of the most promising
biodiesel source that are able to meet the global
biofuel demand. Some oil containing foods and
crops have been used as a first generation biodiesel
source but none of them has proved that they can
be a candidate for biodiesel production in
comparison with algae. A comparison of some
important food crops and algae is given in Table 1
[2].
2.Choice of the best microalga species
212

Source

Gallons of oil
acre/year

Algae

5000–20,000

Oil palm

635

Coconut

287

Jatropha

207

Rapeseed/Canola 127
Peanut

113

Sunflower

102

Safflower

83

Soybeans

48

Hemp

39

Corn

18

�The word ‗microalgae‘ is a general term that does not specify any particular alga(e).
When we say as microalgae we mean all algal species‘ and strains. Since there are thousands
of algal species‘ and strains, and their lipid content and productivity vary from one another, at
the first step we have to choose the species or strain(s) that is suitable for biodiesel
production. Table 2 shows the lipid content and productivity of some of the fresh and marine
water algal species. Average lipid contents of the some algae specified in Table 2 vary
between 2% and 70% [3].
Table 2
Microalga species

Fresh water

Lipid content

Lipid productivity

(%, w/wDW)

(mg L-1 d-1)

Botryococcus sp.

25.0–75.0

-

Chaetoceros muelleri

33.6

21.8

Chaetoceros calcitrans

14.6–16.4/39.8

17.6

Chlorella emersonii

25.0–63.0

10.3–50.0

Chlorella protothecoides

14.6–57.8

1214

Chlorella sorokiniana

19.0–22.0

44.7

Chlorella vulgaris

5.0–58.0

11.2–40.0

Chlorella sp.

10.0–48.0

42.1

Chlorella pyrenoidosa

2.0

-

Chlorella sp.

18.0–57.0

18.7

Chlorococcum sp.

19.3

53.7

Ellipsoidion sp.

27.4

47.3

Haematococcus pluvialis

25.0

-

Scenedesmus obliquus

11.0–55.0

-

Scenedesmus
quadricauda

1.9–18.4

35.1

19.6–21.1

40.8–53.9

Scenedesmus sp.

Marine water

6.0–25.0

116.0

Dunaliella salina

23.1

-

Dunaliella primolecta

16.7–71.0

-

Dunaliella tertiolecta

17.5–67.0

33.5

Dunaliella sp.

7.0–40.0

-

Isochrysis galbana

7.1–33

37.8

Isochrysis sp.

20.0–56.0

60.9–76.5

Nannochloris sp.

22.7–29.7

84.0–142.0

Nannochloropsis oculata

12.0–53.0

60.9–76.5

213

�Nannochloropsis sp.

29.0–65.0

90.0–134.0

Neochloris oleoabundans

30.9

49.4

Pavlova salina

35.5

40.2

Pavlova lutheri

18.0–57.0

44.8

Phaeodactylum
tricornutum

4.0–16.6

-

Spirulina platensis

Choosing best performing microalgae only by looking at its lipid content must be tricky
because not all types of fats are used for biodiesel production. TAGs are only the fats that are
used for biodiesel. So at strain selection, multicriterion strategies must be adopted. Lipid
content, lipid productivity, growing rate, lipid quantity and quality, response to environmental
stimuli such as nutrient, light, temperature etc, nutrient preference, biomass harvesting, lipid
extraction and purification must be sepearately evaluated and then strain selection must be
done [3]. Since the Chlamydomonas reinhardtii is a model organism, we chose its strains
CC400 and CC125 in our research.
2.1.Availibity of algae for biodiesel production
Researches show that algae are able produce 200 times more oil than that of even bestperforming plants [4]. Theorically algae can be grown at anywhere as soon as sunlight, CO2
and some macro and micro elements are provided but in practise, we need an optimization
process. Algae synthesize lipids for different metabolic purposes such as membrane structure,
storage, energy source and other metabolic activities. But only TAGs can be used for
biodiesel production so optimization processes and molecular engineerings must be done for
improving these TAGs. Today there is no single algae species or strain can be shown that was
already optimized for maximum biodiesel production. Optimization processes such as nutrient
deficient media and different stress factors, gene insertions, limiting different metabolic
pathways etc. are going on researches [ 5, 6, 7].
3.Methods
3.1 Identification and cultivation of the microalga
Chlamydomonas CC400 and CC125 were used for this study. Both strains were grown in
100 ml erlanmeyer flasks, each containing 50 ml TAP liquid media under the constant
illumination with white flourescent light and unlimited CO2. Flasks were shaken at 100 rpm.
Temperature was 20 ± 30 C.
3.2.Verification of strains
18S rRNA sequence analysis was done for the verification of strains Chlamydomonas
CC400 and CC125. For this, genomic DNA was extracted, primers were prepared for 18S
rRNA and then 18S rRNA was amplified and sequenced [8].
214

�3.3 Bioinformatic analysis of 18S rRNA sequence
Sequence alignment analysis was done on the NCBI database by BLAST search
(http://blast.ncbi.nlm.nih.gov/Blast.cgi). Bioinformatic analysis verified that harvesting strains
belong to the Chlamydomonas CC400 and CC125.

3.4 Extraction of lipids
Algae (4g) were seperated from the medium by centrifugation. Fresh algal pellets were
boiled in 10 ml alcohol to inhibit the lipase activity and then were dried under nitrogen gas.
The dried pellet was mixed with chloroform-methanol (1:2) and BHT (antioxidant). After
centrifugation, 1.6 ml ddwater, 10 ml chloroform and 1.6 % potassium chloride were added to
the supernatant respectively. The mixture was vortexed and homogenized layer was collected,
and then concentrated under nitrogen gas [9].
3.5 Esterification of fatty acids
Extracted lipids were disolved in 6 ml ethanol. Sulfuric acid was used as a catalyzer for
the esterification of fatty acids [10]. The mixture was refluxed by Dean-Stark apparatus and
was washed with saturated hydrogen carbonate solution, and then dried over anhydrous
sodium sulfate. To obtain fatty acids, solvent was removed by distillation [11].
3.6 GC/MS analysis
Hewlett–Packard 6890 was used for GC/MS analysis. The gas chromatograph was
equipped with a HP-5M capillary column. The oven temperature was programmed from 85
oC (5 min) to 265 oC at the rate of 7 oC/min and finally held at 265 oC for 10 min. The
carrier gas was helium with the flow rate of 1.2 mL/min.The mass spectrometer was operated
in EI (Electron Ionization) mode at 70 eV. The interfacetemperature was 265 oC and the mass
range was 15–650 m/z.The identification of fatty acids was performed, comparing the
obtained mass spectra with Wiley (275) libraries [11].
4.Results and discussions
We bought our algae from the microalgal collection center and grew them in convinent
media in lab. Genomic DNAs of these algae were isolated for 18S rRNA amplification. 18S
rRNA sequence analysis was done on the NCBI database by BLAST search. Both strains
were verified that they belong to the Chlamydomonas CC400 and CC125 respectively. Total
lipids were extracted by the method specified in 3.4. Extraction of lipids and after
esterification process, GS/MS analysis was carried out. Different types of FAMEs were
detected.
Their easy handling and fast growing rate paved the way for better understanding of
optimization process for different algal species. Since the algae are living organisms, it needs
a systematic approach, meaning that different pathways such as carbohydrate pathway, lipid
pathway, protein pathway etc must be evaluated together at molecular level by microarray
215

�analysis. Researches show that limiting one pathway for giving more allocation to another is
a temporary solution so we should find new systematic and holistic approaches.
5.CONCLUSION
This study shows that microalgae are the best candidate for the biodiesel production
although studied strains have lower lipid productivity in comparison with other algal species.
REFERENCES
[1] Meisam Tabatabaeia, Masoud Tohidfara, Gholamreza Salehi Jouzania, Mohammadreza
Safarnejada, Mohammad Pazoukib. Biodiesel production from genetically engineered
microalgae: Future of bioenergy in Iran. Renewable and Sustainable Energy Reviews 15
(2011) 1918–1927.
[2] Shakeel A. Khana, Rashmib, Mir Z. Hussaina, S. Prasad a, U.C. Banerjeeb. Prospects of
biodiesel production from microalgae in India. Renewable and Sustainable Energy Reviews
13 (2009) 2361–2372.
[3] Helena M. Amaro, A. Catarina Guedes, F. Xavier Malcata. Advances and perspectives in
using microalgae to produce biodiesel. Applied Energy 88 (2011) 3402–3410.
[4] Ayhan Demirbas, M. Fatih Demirbas. Importance of algae oil as a source of biodiesel.
Energy Conversion and Management 52 (2011) 163–170.
[5] Yantao Li, Danxiang Han, Guongrong Hu, David Dauvillee, MiltonSommerfeld, Steven
Ball, Qiang Hu. Chlamydomonas starchless mutant defective in ADP-glucose
pyrophosphorylase hyper- accumulates triacylglycerol. Metabolic Engineering12(2010)387–
391.
[6] Sara Rasoul-Amini,Nima Montazeri-Najafabady, Mohammad Ali Mobasher,Samira
Hoseini-Alhashemi, Younes Ghasemi. Chlorella sp.: A new strain with highly saturated fatty
acids for biodieselproduction in bubble-column photobioreactor. Applied Energy 88 (2011)
3354–3356.
[7] Joseph Msanne, Di Xub, Anji Reddy Konda, J. Armando Casas-Mollano, Tala Awada,
Edgar B. Cahoon, Heriberto Cerutti. Metabolic and gene expression changes triggered by
nitrogen deprivation in the photoautotrophically grown microalgae Chlamydomonas
reinhardtii and Coccomyxa sp. C-169. Phytochemistry 75 (2012) 50–59.
[8] Ghasemi, Y., Rasoul-Amini, S., Morowvat, M.H., Raee, M.J., Ghoshoon, M.B., Nouri,
F.,Negintaji, N., Parvizi, R., Mosavi Azam, S.B., Shokravi, Sh., 2008. Dehydrogenation, C-20
ketone reduction and side-chain cleavage of Hydrocortisone in Chlamydomonas reinhardtii
cultures. Molecules 13 (10), 2416–2425.
[9] Rasoul-Amini, S., Ghasemi, Y., Morowvat, M.H., Mohagheghzadeh, A., 2009. PCR
amplification of 18S rRNA, Single Cell Protein production and fatty acid evaluation of some
naturally isolated microalgae. Food Chem. 116 (1), 129–136.
[10] E.A. Ehimen, Z.F. Sun, C.G. Carrington. Variables affecting the in situ transesterification
of microalgae lipids. Fuel 89 (2010) 677–684.

216

�[11] Mohammad Hossein Morowvat, Sara Rasoul-Amini, Younes Ghasemi. Chlamydomonas
as a ‗‗new‖ organism for biodiesel production. Bioresource Technology 101 (2010) 2059–
2062.

The Development of the Clean Technology Industry: A Conceptual Framework
Nir Kshetri
The University of North Carolina at Greensboro
Abstract
The evolutionofanindustrychanges the competitive climate faced by individual firms as well
as nations. Many analysts consider the clean technology (CT)industry as a game changer for
businesses‘ and nations‘ competitiveness in the 21st century.From a theoretical standpoint, the
CT industry contains many idiosyncraticfeatures, which affect the natures of entrepreneurial
opportunities and roles in this industry. The issues of the evolution of the clean technology
industry and nations‘ competitive advantages in this industry area critical but little-examined
problem in the social science research. We contributetofilling this research gap with an
analysis of the entrepreneurship in the global CT industry. Specifically, this paper proposes a
framework to examine the development of the CT industry and assesses some major
economies in terms of the major dimensions in the framework. We also present a case study
of entrepreneurship in the Chinese CT industry.
Keywords: Clean technology, disruptive innovations, solar cells, China, venture capital,
externality mechanisms
1. INTRODUCTION
The evolutionofanindustrychanges the competitive climate faced by individual firms as well
as nations (Utterback 1996). The rapidly evolving clean technology(CT) industry is
toutedasapotential source to bring changes in businesses strategic orientation as well as
significant changesintheglobaleconomic and political power structures. Despite their current
small size, some CT sectors such as solar and wind energy are the fastest growing forms of
electric power (Kennard 2008).
Facing the trend toward CT, some companies have developed new competences and
capabilities that have the potential of being clean and sustainable. To take an example,
DuPont has shifted its portfolio away from its traditional core competencies and is developing
new internal competences and capabilities compatible with therecent global
greenmovement(Hart 2005).
217

�</text>
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                <text>Engineering of microalgae for biofuel production</text>
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                <text>Recep , Vatansever</text>
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            <description>A summary of the resource.</description>
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              <elementText elementTextId="18632">
                <text>Increasing of the world population along with the economic wealth deepens the energy crises  every day. Hence we need to find the new alternative energy sources that will satisfy the  energy demand and concomitantly deliver no emission to the environment.  In this particular situation, plants offer us a highly efficient and effective solutions. However  use of higher plants for such purposes can cause several problems such as food competition,  water shortage, arable land, fertilizer etc. Algae are tiny biological factories that use  photosynthesis to transform carbon dioxide and sunlight into energy so efficiently that they  can double their weight several times a day. As part of the photosynthesis process algae produce oil and can generate 15 times more oil per acre than other plants used for biofuels,  such as corn and switchgrass. Algae can grow in salt water, freshwater or even contaminated  water, at sea or in ponds, and on land not suitable for food production.  We are working on Chlamydomonas reinhardtii and some other algae to increase their  biomass and lipid production which can in future stand as an alternative energy source for  next generation. We started our research with Chlamydomonas reinhardtii since it was a  model organism. Chlamydomonas reinhardtii is a single celled photosynthetic microorganism  and produces a kind of lipid which can be easily converted for biofuel production. The  process of making biodisel from algae contains a number of seperation steps; separating the  algea from the media, separating the oil from the algea and removing the glycerol from the oil  to lower the viscosity. Hence our aim is to produce a high biomass algea strain containing a  high amount of lipid which can be efficiently used for biodiesel production.</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Robinson JC (2001) Theory And Practice İn The Design Of Physician Payment İncentives.
The Millbank Memorial Fund Quarterly 79(2): 149–177
Steffensen J, Larsen H. 2005. Conceptual Basis For Performance-Based Grant Systems And
Selected İnternational Experiences. Background Paper For National Stakeholder Workshop
İn Nepal, Kathmandu, 31 May 2005.
Turhan,E., Inandi, T., Ceylan A.,Gun, I., One, S. The Effects Of Performance Based
Supplementary Payment On Physician Practice; A Cross Sectional Questionnaire Study,
Journal Of Society For Development İn New Net Environment İn B&amp;H, Healthmed - Volume
5 / Number 4 / 2011
World Health Organization. The World Health Report 2008: Primary Health Care Now More
Than Ever. ISSN 1020-3311. Switzerland
Yıldırım, A. Ve Şimşek, H. (2000). Sosyal Bilimlerde Nitel Araştırma Yöntemleri. Ankara:
Seçkin Yayıncılık.

Why Gold Dinar in International Trade as Medium of Exchange: Descriptive Analysis
of History of Gold Money, Trends, Perspectives and Implications
Ramo Palalic, Narela Bajram
Faculty of Economics and Business \ Administration, International University of Sarajevo
E-mails: rpalalic@ius.edu.ba, ramopal@gmail.com, narela@ius.edu.ba
Abstract
This paper argues certain perspectives of using Gold Dinar in bilateral or multilateral
exchange between any nations worldwide. It is to show stability and security of the trades
where no one is negatively affected by fluctuations if merchandises were exchanged in a
particular currency. Globalization and advancement in IT had a huge impact on the world’s
economy in general, and many nations suffer from it while others become richer and richer.
Therefore it is urged to find a better solution for the present and the future generations. It is
obvious that something is not compatible in all those things. In recent times many scientists
and Islamic scholars stress on importance of gold standard and Gold Dinar as a medium of
exchange which a few countries have already introduced. It is the prime time where all
Islamic scholars, economists, professors and any other contributors should be involved to
come up with the best alternative to current fiat money.
After the Malaysian and Indonesian crises in 1997-98 it indeed has happened that many of
the aforementioned are involved to search the way out of this turbulent economic era. In this
regard, we will try to explain fundamentals of Gold Dinar or gold money since the ancient
time where exchange was either in dinar (gold) or dirham (silver). In addition it will be shown
possible implications whether are permanent or temporary issues in international trade.
36

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

Others, like some statistical data will be introduced throughout the history until today. This
paper is divided into several parts like introduction, historical background of the gold,
statistical facts of the gold money/Gold Dinar, fiat money in brief, benefits and disadvantages
of Gold Dinar as well as fiat money, limitations and further research and conclusion.
Keywords: gold, Gold Dinar, silver, dirham, international trade, history, bilateral trade,
multilateral trade, currency, nations,
1.INTRODUCTION
When we mention Gold Dinar, or gold money we cannot neglect the fact that this dates
back since ancient time and nowadays is being put aside as a possible solution for the world
economy to be a future perspective. Why gold as a money? If we get back in the ancient time,
during the last Prophet p.b.u.h., we will find out that he has described money with its features
as following:
Precious metals or other commodities as described above, money with intrinsic value,
Money located within Allah’s creation with value assigned to such money by Allah Most
High Himself, Who is the Creator of wealth. (I.N. Hosein, 2007, pg 16).
One of the reasons why the gold money has been removed from the trade is that the barter
from early times proved to be insufficient so the money was being used to facilitate trade (N.
A. Siegfried, 2001).
As we know that every coin has its two sides this paper will introduce a reader with main
principles and its benefits of using gold in international trade as well as implications that may
come true.
So, this paper consists of eight main parts. The first part is introduction. Second one is a
brief literature review regarding Gold Dinar.. The third part is about its historical background
of the gold money throughout the history since ancient time. It includes its roots of Gold
Dinar its facts via history. In the fourth part we are going to try to prove the gold as a real
wealth which has its intrinsic value from early centuries until today. Data on Stability of Gold
Prices will be introduced. The fifth part argues the fiat money in short and benefits and
disadvantages of gold money and the paper money. The sixth part is about Usage Gold Dinar
in Bilateral and Multilateral Trade. Then we will see the limitation of the research and
possible future mining as the seventh part. And finally, in eight part we are going to conclude
briefly the stand about Gold Dinar or gold money as a possible solution in international trade
between any nations around the globe.
1.1.Literature Review
As any think in this world has its two sides, positive and negative, beautiful and ugly,
worth and useless, etc, usage of the Gold Dinar in nowadays varies depending on how people
sees things. There were many books and articles been written on this topic where discussion
has taken place and both “opposers” and so called dinarists3. The time has been proved as
3 Dinarists have been described as those who promote use of gold dinar especially among Muslim
countries
37

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

rude and very hard for the world economy as a whole. One may argue that is because of the
world disorder caused by different things. Others might say that is because of the total world’s
debt circulating between countries, especially the biggest economy in the world, the USA.
Also, it may be reasonable to say that it this is happening because of the unjust monetary
system based on the Interest (Usury), which is from the Islamic perspective strongly
prohibited and this has caused all of the chaos in this world.
Recent time has been full of discussions especially when Malaysian financial crises
happened. From that time onward, Malaysian’s experts, prominent economists and professors,
as well as professors in Islamic areas (especially in the field of fiqh) put this event as study to
be researched and solution need to be found. In this arena we have many different views
regarding the Gold Dinar to be introduced as a medium of exchange.
Meera (2002) in his book Islamic Gold Dinar promotes an idea that returning back to the Gold
Dinar is a solution for the current world financial chaos. He argues that current fiat money has
capability of creating itself alone. Which may imply that today we have electronic money
recorded somewhere on the binary as a part of memory in the computer. On the other hand, Z.
Hasan, (2008) stands that introduction of the Gold Dinar is not idea that will work. One of the
reasons he poses is that gold standard does not attain internal or external stability. He also
argues that money is just an instrument and what it does – good or bad – depends on how we
use it (2011).
M.A. Haneef argues in his paper that Islamic scholars have (fuqaha4) different views
whereas some stands that the money must be either in gold or silver, while other scholars do
not limit money to these two commodities (2006).
Another view regarding introducing the Gold Dinar is also negative (C. Murat, 2010). He
argued ten points against this trend for the Gold Dinar to be introduced.
2.Historical Background of the Gold and Gold Dinar
One may define money as everything that could be exchanged in buying or selling
transactions. The money has appeared a few thousand years ago. From that time until recent
centuries money had been adopted as precious metals, cowry shells, barley, beards, and later
on it was gold, silver, copper and similar.
The first coin money was from bronze and copper. Gold and silver coins were made in
Lydian (current Turkey) - as early as around 560 BC, which could be classified as the earliest
forms of metallic coins (Z. Hasan, 2011).
The issue of debasement of money (gold and silver) first occurred in the year 64 A.H
During the Prophet s.a.w.s. (M. A . Haneef and E. R. Barakat, 2006). Muslims were using row
metal or Byzantine coins as money while for economic transactions there were used three
kind of precious commodities, gold which implies Dinar, silver; representing Dirham and the
copper (N. A. Siegfried, 2001).
Many verses in God’s Divine Book- Qur’an proof that our Creator is encouraging
mankind to use gold or silver as a medium of exchange, or the money. The next verses are
from the Qur’an mentioning the gold and silver in mutual transactions:
4 Fuqaha are Islamic scholars who deal with Islamic Jurisprudence
38

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

“Amongst the People of the Scripture (i.e., the Torah) there are those who if entrusted (by a
bellow Israelite) with a Qintār (a treasure of money such as a heap of gold coins) for safekeeping, would return it upon demand. Yet amongst them there are those who if entrusted (by
a Gentile, i.e., one who was not an Israelite) with a (single) Dinār (a gold coin) for safekeeping, would not return it on demand unless the owner were to persist in demanding the
return of his property. The reason for this (double standard) is because they argue that the
(religious law) placed no obligation on them to be just and fair in their dealings with Gentiles.
But they tell a lie against Allah (Most High), and they know full well (that it is a lie).”

And for Dirham,
“And they sold him for a few measly Dirham and they did so because they considered him to
be of little worth.”

It is mentioned for many times in the Qur’an that gold and silver are referred as wealth.
Those Qur’anic verses are the following: Āle ‘Imrān: (3:14; 3:91), al-Tauba (9:34), Zukhruf
(43:33-5; 43:71;43:53), an-Nisā (4:20), al-Insān (76:21), al-Fātir (35:33), al-Hajj (22:23), alKahf (18:31), al-Isrā (17:93), (I.N. Hosein, 2007, pp. 17 -24).
According to Islamic Law the Islamic Dinar is a specific weight of 22k gold (917.)
equivalent to 4.25 grams. The Islamic Dirham is a specific weight of pure silver equivalent to
3.0 grams.
Umar Ibn al-Khattab established the known standard relationship between them based on their
weights: "7 dinars must be equivalent to 10 dirhams." So the World Islamic Trading
Organisation
following
the
standard
of
caliph
Umar
Ibn
al-Khattab
(http://www.goldcentro.com/home)
3.Recent History: Data on Stability of Gold Prices
Any currency or commodity to be internationally recognized as medium of exchange it
must be a quite stable and not extreme fluctuating. Particularly, for the gold it is crucial to
know the stability of its price. Following figure, in a chronological order in a range from 1833
to early 1930s shows that the aggregate price of gold was stable amounting $20.67 per ounce.
However, a few years ahead, starting with the year of 1935, the price has begun to increase
gradually up to $35 per ounce. Later on, it has started to fluctuate even in more extreme as we
39

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

can observe a few years back to present. There are two important events that can justify those
changes:
1. The Creation of Brenton Wood System
2. The Abandonment of the Brenton Woods System (A. B. B. M. Yusuf, et al., 2002)

Figure 1. Stability of prices of Gold from 1833 to early 1930s (www.kitco.com, accessed
from3.2.2012)
In early 1990s we can observe that was a dramatic change in gold prices. In fact it was the
most fluctuated period of time for gold prices. It could be justified of the world crises (Golf
war in 1991s, war on ex-Yugoslavia’s region, Central Asia, etc.). See Figure 2.
Figure 2. Gold price from 1990-1994 (www.kitco.com, accessed from 3.2.2012)

Figure 3 shows that from 1995 it was a gradual increase and decrease in gold price.
However, starting from new millennium the gold price rapidly has increased. It could be
justified by certain events in the world, such as World Trade Center attack in 2001, Iraq,
Afghanistan, as well as other natural disasters around the globe.

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

Figure 3. Gold price from 1995-2012 (www.kitco.com, accessed from 3.2.2012)

As we have mentioned that silver has been described in the Qur’an as wealth and
recommended to be also the medium of exchange in the trade. The following figure ensures
that fact and we also may conclude that the silver has its stability over time (up to early
1970s) and its intrinsic value. Its aggregate price was quite stable throughout this period of
time.
Figure 4. Stability of prices of Silver from 1792 to early 1970s (www.kitco.com, accessed
from 3.2.2012)

4.Usage of Gold Dinar in International Trade: Bilateral and Multilateral Trade
Transactions in international trade between nations are done either by transferring money
via current accounts of companies or bringing cash in briefcase to perform a payment. Landry
money is present worldwide and it is not possible to clear it out forever. Transactions’ costs
are high and there is always risk which for some will be in favor while for other it will be as
extra costs, known as currency exchange costs. It is also important to note that every currency
must be hedged and protected from speculators which in turn derive additional costs.
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Therefore, according to these facts, less wealthy countries or developing countries cannot
survive in this trading arena because of all transactions related to the trade where the fiat
money is involved. However, using of gold as the money or Gold Dinar is much better and
protected from such issues in the bilateral and multilateral transactions.
Recent crisis in Malaysia and Indonesia, in 1997-1998, caused a turn point whereas the
many Muslim and non-Muslim scholars urged to think about the Gold Dinar to be as medium
of exchange between nations.
According to Meera and Larbani (2003), the central bank will play a vital role in keeping
the national trade Accounts ensuring a safe place to keep the gold. In bilateral trade, let say
between Malaysia and Indonesia, the total Malaysia’s export to Indonesia 500 million of
Gold Dinar and Malaysia has imported from Indonesia goods and services in amount of 450
million of Gold Dinar. So, Malaysia has its surplus of 50 million of Gold Dinar. In this case
Indonesia needs to settle ONLY difference of 50 million of Gold Dinar to Malaysia.
However, this amount Malaysia can use for the future use to settle transactions between these
two countries and hence the physical transfer of the gold is not necessary. Another benefit is
that exchange avoided. No exchange costs like in fiat money!
The table below shows the multilateral trade how it would be if certain countries agreed to
have Gold Dinar in their mutual trade transactions:
Table 2: Gold in Multilateral Trade Arrangement (A. K. M. Meera &amp; M. Larbani, 2003,)

Gold Dinar (million)
Export to
Malaysia
Iran
Indonesia
Total Import

Malaysia
X
2.8
2.2
5.0

Iran
3.0
X
3.7
6.7

Gold Dinar (million)
Export
Malaysia
5.0
Iran
6.8
Indonesia
5.9

Indonesia
2.0
4.0
X
6.0

Import
5.0
6.7
6.0

Total Export
5.0
6.8
5.9
17.7

Net payment
Nil
+0.1
-0.1

In multilateral trade, countries who are trading in Gold Dinar may have one custodian
bank, like any famous non-interest bank in the world, to keep accounting of the trade (i.e. IDB
bank) (A. K. M. Meera &amp; M. Larbani, 2003,)
5.Limitations and Further Research
As any research it has its limitations, and this paper does so. It is urged to refer more
deepen to the Islamic literature to prove that Islamic money or Gold Dinar is possible and
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

recommended by the wholly Book –Qur’an and the hadith by the Prophet s.a.w.s. On the
other hand, it is necessary to analyze all the parameters of the current world economy in order
to see causes that can be replaced by Islamic alternatives such the Gold Dinar. It is necessary,
indeed, for Islamic scholars as well as world’s economists and experts to merge and together
come up with the solution for the better future. We owe the future generations since we
observe it and did little or nothing to solve current economic crises around the globe.
6.CONCLUSION
Today’s world suffers from economic instability with consequences worldwide known.
Recent scholars and economists recommend changes in today’s economy. On one side, there
are proponents of the Islamic Gold Dinar which states and support for the Gold Dinar to be
introduced in the international trade. They have their reasoning and we are witnesses that a
few countries, have already introduced Gold Dinar in the trade (one state in USA and in
Malaysia).
On the other side, there are scholars who oppose the introduction of the Gold Dinar,
arguing that there will be no change and will be no impact on the world economy. However, it
is important to say that indeed the gold has many benefits over the fiat money by its nature. It
is commodity and it has its intrinsic value which cannot be damaged or faded over time and
since the beginning of the trade on the earth, it was known as wealth till now. We have proved
by the Qur’anic verses where the Creator has stressed and recommended to use the gold and
silver as medium of exchange in daily transactions. As A. K. M. Meera &amp; M. Larbani (2003)
said, instruments backed by gold are vulnerable for easy abuse, which brought about the
failure of the gold standard. In other words whatever currency has been backed in gold, or in
any other currency it is not as gold backed by itself. It is protected from speculators as well as
other abuses. Upon all of this, if we follow the God’s Will, we will definitely have prosperity,
described as just and comfortable for all.
Finally, concluding remarks would be based on all said so far. Therefore, main factor in
our success, in introducing Gold Dinar in international trades (bilateral or multilateral) is that
only if all nations will be willing to back to the base (to use the gold in trades’ transactions) to
use the gold as their monetary system and to let the gold to be freely traded in commodity
market.
REFRENCES
[1]
I. N. Hosein (2007) The Gold Dinār And Silver Dirham: Islam and The Future of
Money, Masjid Jāmi’ah, City of San Fernando,Trinidad and Tobago.
[2]
N. A. Siegfried (2001) Concepts of Paper Money in Islamic Legal Thought, Arab Law
Quarterly, University of Hamburg, Kluwer Law International. Printed in the Netherlands.
[3]
Z. Hasan (2008) Ensuring Exchange Rate Stability: Is Return to Gold (Dinar)
Possible?, Professor, Department of Economics, Faculty of Economics and Management
Sciences
International Islamic University of Malaysia, Selangor Dar-ul-Ehsan

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[4]
Z.Hasan (2001-2002) Recent Financial Crisis in Malaysia: Response, Results,
Challenges, “The Indian Economic Journal, Vol. 49 No.1, pp.28-49
[5]
Z. Hasan (2010) Dubai Financial Crisis: Causes, Bailout and After, Journal of Islamic
Banking &amp; Finance, Vol. 27, No. 3, pp. 47-55
[6]

http://www.cato.org/pubs/pas/pa017.html (accessed from 31.01.2012)

[7]
http://208.43.71.196-static.reverse.softlayer.com/english/politics/3410/429108.html
(accessed from 02.02.2012)
[8]
Z. Hasan (2011) (unpublished), Money creation and control from Islamic perspective,
Department of Economics &amp; Governance, INCEIF: Global University of Islamic Finance
[9]
M. A . Haneef and E. R. Barakat (2006) (A.D/1427 A.H), Must Money Be Limited to
Only Gold and Silver?: A Survey of Fiqhi Opinions and Some Implications, JKAU: Islamic
Econ., Vol. 19, No. 1, pp: 21-34
[10] C. Murat (2010): The Case Against the Islamic Gold Dinar, INCEIF, Kuala Lumpur,
Unpublished.
[11] A. B. B. M. Yusuf, et al. (2002) The Implementation of Gold Dinar is It the End of
Speculative Measures?, Journal of Economic Cooperation, 23-3, pp. 71-84
[12] Reuters. "Malaysia Plans To Initially Use Gold Dinar Within Small Group" The Star,
2/5/2002.
[13] A. K. M. Meera &amp; M. Larbani (2003) The Gold Dinar: The Next Component in
Islamic Economics, Banking and Finance, International Conference on Banking, Monash
University, Prato, Italy.
[14]

A.K.M. Meera (2002) The Islamic Gold Dinar, Pelanduk Publications, Kuala Lumpur,

[15]

http://www.goldcentro.com/home (accessed from 25th January 2012)

[16]

www.kitco.com (accessed from 4.2.2012)
Quality Costs Accounting And A Firm Application
Hilmi Kirlioğlu, Zülküf Çevik,
Sakarya University, Sakarya, Turkey
E –mails: hilmik@sakarya.edu.tr, zcevik@sakarya.edu.tr

Abstract
Contemporarily, the competition in the markets has thoroughly heated up. Many companies
try to decrease their costs in order to survive in this cruel market. In this respects, the quality
costs gain importance in all over the world and in Turkey, too.
Companies need to gaining profit for sustainability. And also gaining profit is one and first of
companies’ two basic goals. In order to achieve this first goal and to gain sustainability,
companies have to provide customers’ and potential costumers’ needs and demand as well as

44

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                <text>Why Gold Dinar in International Trade as Medium of Exchange: Descriptive Analysis  of History of Gold Money, Trends, Perspectives and Implications</text>
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                <text>This paper argues certain perspectives of using Gold Dinar in bilateral or multilateral  exchange between any nations worldwide. It is to show stability and security of the trades  where no one is negatively affected by fluctuations if merchandises were exchanged in a  particular currency. Globalization and advancement in IT had a huge impact on the world’s  economy in general, and many nations suffer from it while others become richer and richer.  Therefore it is urged to find a better solution for the present and the future generations. It is  obvious that something is not compatible in all those things. In recent times many scientists  and Islamic scholars stress on importance of gold standard and Gold Dinar as a medium of  exchange which a few countries have already introduced. It is the prime time where all  Islamic scholars, economists, professors and any other contributors should be involved to  come up with the best alternative to current fiat money.  After the Malaysian and Indonesian crises in 1997-98 it indeed has happened that many of  the aforementioned are involved to search the way out of this turbulent economic era. In this  regard, we will try to explain fundamentals of Gold Dinar or gold money since the ancient  time where exchange was either in dinar (gold) or dirham (silver). In addition it will be shown  possible implications whether are permanent or temporary issues in international trade. Others, like some statistical data will be introduced throughout the history until today. This  paper is divided into several parts like introduction, historical background of the gold,  statistical facts of the gold money/Gold Dinar, fiat money in brief, benefits and disadvantages  of Gold Dinar as well as fiat money, limitations and further research and conclusion.  Keywords: gold, Gold Dinar, silver, dirham, international trade, history, bilateral trade,  multilateral trade, currency, nations,</text>
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