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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

The Implementation of Information System in Coal Mine
Kakanj
Haris Goralija
International Burch University, Sarajevo, Bosnia and Herzegovina
haris.goralija@live.com
Meliha Handzic
International Burch University, Sarajevo, Bosnia and Herzegovina
mhandzic@ibu.edu.ba
Safety management is one of the most important tasks in the coal mining
sector. It is argued that an appropriate information system that monitors
safety information can improve the coal mine safety management and
reduce the occurrences of disasters. Therefore, the primary aim of this
paper is to study the implementation and impact of a specific information
system implemented in the Coal Mine Kakanj, Bosnia and Herzegovina. The
focus of the study was on examining employees’ satisfaction with their
implemented information system. Data were collected through interviews
of employees who were system users. Their collected responses were
analyzed using qualitative methods. The analyses performed revealed
some interesting results. Their implications for the coal mine safety
management were discussed and several plausible directions for future
research are recommended.
Keywords: Information System, Kakanj, Bosnia And Herzegovina, Coal
Mine

148

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                    <text>International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

Information System Implementation in Kakanj Coal Mine
Haris Goralija
International Burch University, Sarajevo, Bosnia and Herzegovina
haris.goralija@live.com
Meliha Handzic
International Burch University, Sarajevo, Bosnia and Herzegovina
mhandzic@ibu.edu.ba

Abstract
The primary aim of this paper is to report a case study of the implementation of an
information system in the Kakanj Coal Mine, Bosnia and Herzegovina.
The study examined a variety of aspects pertaining to the information system
implementation from the professional and end user perspectives.
Data were collected from the available documentation, and from interviews with the
information systems support staff and surveys of employees who were system
users.
The collected responses were analyzed using a combination of quantitative and
qualitative methods. Due to the time constraint imposed on the authors, only the
preliminary qualitative findings are reported here.
Keywords: Information systems (IS), IS implementation, coal mine, case study,
Bosnia and Herzegovina

Introduction
Literature has widely recognized the importance of information systems in the mining
sector. At the industry level, a web-based one-stop shop information management system
was developed to offer invaluable opportunity to share state-of-the-art knowledge for the
whole coal mining sector in Australia (Porter et al. 2011). Similar portals are made
available by the UK Coal Authority (http://coal.decc.gov.uk/) and by the Indiana Coal
Industry in the USA (http://igs.indiana.edu/Coal/).
At the organizational level, information systems are considered valuable for assisting
mining businesses in operational decision making (Carter 2006), production management
and control (Minfo 2011) and mine safety management (Yang and Song 2010), to mention
just a few technical areas of the mine operations. More than that, information systems may
play an important role in supporting all primary and secondary activities along the mine’s
value chain (Porter, 1985) by providing relevant and trustworthy information where and
when needed.
Coal mining represents an important sector of the economy in Bosnia and Herzegovina.
With its economic significance on one side and the demanding time constraints, high safety
expectations and production goals on the other side, the mining management requires an
appropriate information system support to meet these challenges. The purpose of this study
is to examine the issue in the leading coal mine in Bosnia and Herzegovina: Kakanj Coal
Mine. Specifically, the study will answer the following four research questions:

1

�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

(i)
(ii)
(iii)
(iv)

How does mine’s information system support organisational business
processes?
Do employees use this system and for what purposes?
How satisfied are users with their system, service and information it provides?
Why are some aspects (if any) of the implemented system not in use?

Research Context
The Kakanj Coal Mine is based in the town of Kakanj in Bosnia and Herzegovina.
Established in 1902, the mine boasts over a 100-year-old tradition. The company engages
in both underground and surface coal mining. It also manufactures and markets briquettes.
According to the current information available on the mine’s website
(http://www.rmukakanj.ba/onama.php), the company employs 2020 workers distributed in
six organizational units.
The existing mine capacities enable the production of 1.2 million tons of coal per year. By
investing in further development, this amount can be gradually increased to 1.5 - 2.0
million tons per year. Investment in coal mining is linked directly to modernization and
development of production capacities of the Kakanj thermoelectric power facility. By
investing in both the mine and the power facility, Bosnia and Herzegovina can ensure a
stable production of electric energy in the long term.
The mine’s vision and mission statements emphasize its aimed regional and global
positioning in the energy sector; its contribution to local development at the municipal
level of Kakanj; its customer-centric business orientation; and knowledge-based business
operation. The mine bases its current success and future development on continued
improvement of business processes, workplace safety and environmental protection.
As mentioned before, the implementation of an appropriate information system may help
the Kakanj Coal Mine in achieving its desired outcomes. Therefore, the following case
study will attempt to gain an insight into the mine’s information system implementation by
responding to a series of “how” and “why” questions mentioned in the introductory
section.
Research Design
A descriptive case study approach was adopted for our investigation in order to gain a
deeper understanding of the mine’s information system implementation.
Data were collected from multiple sources including documentation, interviews and survey
questionnaires. Since different data sources exhibit different strengths and weaknesses,
multiple sources of evidence are recommended to enable triangulation and increase
research validity (Yin 1994).
The basic information about the research context was obtained from the mine’s website
(http://www.rmukakanj.ba) and from the book entitled Hronika 100 (RMU Kakanj, 2006).
After that, an interview was conducted by researchers with two information systems
professionals employed by the mine to operate and maintain the systems and the
underlying information and communication technology.

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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

This was followed by an interview with two employees from the accounting department
and one employee from the finance department in order to analyses these users’ point of
view regarding the quality and usefulness of the mine’s information system. A more
extensive survey of a wider pool of users is currently under way.
Finally, another interview is planned after the survey with the mine managers to address
any current concerns and future plans.
Following Neuman’s (2011) recommendations, a qualitative analysis of interview data was
performed on the basis of descriptions provided of the characteristics of information
systems implementation in question. The main findings are reported in the next section.
These findings are organized around the four research questions of interest.
Research Findings
How does the mine’s information system support organizational business processes?
The answer to the first research question was obtained from the interviews conducted with
two staff members from the information systems support centre. With respect to
information and communication infrastructure (ICT), the respondents provided the
researchers with a block scheme of the mine have integrated ICT system. This scheme is
presented in Figure 1. The figure shows various locations where and how different ICT
components are installed and connected in an integrated networked system. Two servers
(HPML350 and IBM236) are used for the database (ORACLE) and applications. A mix of
cable and wireless links are provided as communication channels. They are presented in
full and dotted lines respectively.
Figure 1: Block scheme of ICT infrastructure at Kakanj Coal Mine

With respect to applications, the two interviewed respondents provided the researchers
with a list of modules and sub-modules of POINT 2000, a key information system
implemented to support the mine business activities. This list is provided in Table 1.
3

�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

POINT 2000 system is purpose-developed and maintained by a third party. In addition, a
series of internally built systems are provided to accommodate specific needs where
required.

Table 1: List of POINT 2000 modules with usage indicators
Main modules of POINT 2000
1.
2.
3.
4.
5.
6.
7.

Metadata
Accounting and finance
Commerce – procurement and sales
Management reporting
Assets management
Human resources
Administrator

Usage
Indicator
yes
yes
no
no
yes
yes
yes

Do employees use this system and for what purposes?
The answer to the second research question was also obtained from the interview with two
staff members from the information systems support center. The researchers have been
informed that a total of 73 users have access to POINT 2000.
Table 1 shows that five out of seven main modules of POINT 2000 are in use, while two
(commerce-procurement and sales; management reporting) are not in use. Table 1 also
reveals that the used modules support the majority of secondary activities (i.e. accounting,
finance, human resources, ICT) in the mine’s value chain. However, separate systems have
been implemented to support the mine’s primary activities.
For example, specific interest, revenue and price calculations for procurement and sales
activities are supported by internally developed spreadsheet (EXCEL) applications.
Similarly, separate spreadsheet applications are used for dealing with damages (injuries
and material) as well as land expropriation and other real estate issues. In production,
SCADA is implemented for the miners’ safety management purposes. Given the 1965
mining disaster (RMU Kakanj, 2006), safety is considered of utmost importance. In
contrast, the informatization of warehousing is currently excluded from the mine’s
consideration.
How satisfied are users with their system, service and information it provides?
To obtain a full answer to this research question, a survey of users is undertaken across the
mine’s work units. While survey data collection is still under way, probing interviews were
conducted with two employees from the accounting department and one from the finance
department. Their opinions are reported here.
Two accounting employees who are POINT 2000 users stated the following: “The system
is reliable and fast”; “I get all the information that I need”; “The system offers more
functional support than I currently need”; “I am very satisfied with the system”.

4

�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

A finance employee who is the user of an internally developed spreadsheet application
declared the following: “I use a purpose-built spreadsheet program to deal with material
and damages from injuries, as well as land expropriation matters”; “I have to use a separate
application because POINT 2000 provides only partial support for the mine’s financial
activities”.

Why are some aspects (if any) of the implemented system not in use?
The initial answer to this research question was obtained from the interview with two staff
members from the information systems support centre. However, another interview is
planned with the mine managers in order to get a better understanding of the issue.
For now, we turn our attention to Table 1 that shows two modules of the POINT 2000
system which are not in use. With respect to the commerce module (sub-modules of
procurement and sales) the respondents pointed out that the system lacks proper support
for the specific mine’s needs. One of the respondents also remarked that “Alternative
programs made internally are used instead”.
With respect to the “management reporting” module, the respondents could not understand
the reasons for not using it. One of them commented that “It is up to managers to use or
not”. At the same time, the same respondent explained that the module offers valuable
information that can help in cost reduction and better planning. An interview with the mine
managers may offer better insights into potential reasons for their rejection.
An interesting remark was made by one of the interviewed IS professionals regarding the
informatisation of warehousing: “Employees in the mine’s warehouses are former miners,
often injured ones and with little education. If this activity is automated, these people will
lose their jobs”. Since solidarity represents an important characteristic of the mine’s
culture, this issue needs careful consideration.
The planned integration of the mine’s information system within the wider SAP supported
energy system by the mine’s parent organization “Elektroprivreda” may address this
problem within the next two years. It may also attract the mine managers to the highly
sophisticated business intelligence and business analytics solutions offered by SAP for
managerial decision making support.
Conclusions
The main goal of the case study reported in this paper was to examine various aspects of
the information system implementation in the Kakanj Coal Mine, Bosnia and Herzegovina.
The main study results provide an insight into the nature, level and success of the
implemented system from the IS professional-staff and end-user perspectives. These
results also point to several areas that require further consideration and improvement. An
encouraging finding is the future plan to integrate the mine’s system into a wider SAP
supported energy information system. Future research is recommended in order to provide
guidance for smoother transition and further enhancement.

References

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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

Carter, A. W. (2006), Application of Geographical Information System in Underground
Coal Mine to assist Operational Management, dissertation, University of
Southern Queensland, Faculty of Engineering and Surveying, Australia
Minfo

Technologies (2011), Mining Information System: Solution Overview,
http://www.minfo-tech.com/MiningInformationSystem.shtml, accessed 13 May
2013.

Neuman, W. L. (2011), Social Research Methods: Qualitative and Quantitative
Approaches, 7th ed., Pearson Education, Inc.
Porter, I, Baafi, E and Stace, R. (2011), Development of a Web-based Underground Coal
Mining Information Management System, in Proceedings of 11th Underground
Coal Operators' Conference, University of Wollongong &amp; the Australasian
Institute of Mining and Metallurgy, 10-11 February 2011, 385-389.
Porter, M. (1985), Competitive advantage: creating and sustaining superior performance,
The Free Press, New York.
RMU Kakanj (2006), Rudnik mrkog uglja Kakanj: Hronika 100, Dom Stampe, Zenica.
Yang l. and Song M. (2010), Coal Mine Safety Evaluation with V-Fold Cross-Validation
and BP Neural Network, Journal of Computers, Vol 5, No. 9, pp. 1364-1371.
Yin, R. (1994), Case study research: Design and methods, SagePublications, Thousand
Oaks, CA.

6

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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

The Effects of European Debt Crisis on the Budget
Deficits and Debt Stocks of Developing Countries
Hüseyin Güçlü Çiçek
Süleyman Demirel University, Isparta, Turkey
huseyincicek@sdu.edu.tr
Süleyman Dikmen
Süleyman Demirel University, Isparta, Turkey
The crisis that had started in the US real estate market in 2007 spread to
the other countries of the world particularly with the strong financial
relations channel and turned into a global fiscal and real sector crisis. The
adverse effects of the crisis were significantly experienced in the EU. The
preliminary effects of the crisis were experienced in the weakest link,
Greece and spread to the other EU countries. The crisis caused budget
deficits and debt stocks to reach crucial levels and put risks on the
sustainability of public finance in Greece, Italia, Spain, Ireland and Portugal.
Developing countries have strong financial links with European countries
and the debt crisis burst in Europe has spread to developing countries.
European debt crisis has affected developing countries through three
different channels: financial contagion, Europe’s fiscal consolidation
effects, and exchange rate effects. In the study, the effects of the crisis on
the budget deficit and debt stock of developing countries are examined
through chosen country samples. Furthermore the fiscal effects of the
crisis on developing countries are compared. The fundamental hypothesis
of the study is that developing countries have affected from the crises less
than developed countries, developing countries are still the basic
determinant of global growth; but the crisis has retarded this growth. On
the other hand, it is thought that, the decrease in the public expenditure of
developed countries has caused financial resources that are reserved for
supporting the development of underdeveloped and developing countries
to diminish.
Two basic financial indicators of the Maastricht Criteria are the debt to
GDP and fiscal deficit to GDP ratios. These two indicators are for the
assurance of fiscal stability. Those countries that experienced the crisis
mostly could not meet these two criteria. In order to ensure budget
stability, developing countries were more successful in maintaining the
rates of debt to GDP and budget deficit to GDP around certain levels. This
162

�International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

success is quite crucial for accomplishing significant and sustainable public
finance policies. In addition it is observed that the duration of crisis periods
in developing European countries is longer than other developing
countries. The debt stocks of European countries caused crisis to last
longer in the developing countries of the region.
Keywords: Budget Deficit, Debt Stock, Developing Countries, European
Debt Crisis, Fiscal Stability.

163

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                <text>The crisis that had started in the US real estate market in 2007 spread to  the other countries of the world particularly with the strong financial  relations channel and turned into a global fiscal and real sector crisis. The  adverse effects of the crisis were significantly experienced in the EU. The  preliminary effects of the crisis were experienced in the weakest link,  Greece and spread to the other EU countries. The crisis caused budget  deficits and debt stocks to reach crucial levels and put risks on the  sustainability of public finance in Greece, Italia, Spain, Ireland and Portugal.  Developing countries have strong financial links with European countries  and the debt crisis burst in Europe has spread to developing countries.  European debt crisis has affected developing countries through three  different channels: financial contagion, Europe’s fiscal consolidation  effects, and exchange rate effects. In the study, the effects of the crisis on  the budget deficit and debt stock of developing countries are examined  through chosen country samples. Furthermore the fiscal effects of the  crisis on developing countries are compared. The fundamental hypothesis  of the study is that developing countries have affected from the crises less  than developed countries, developing countries are still the basic  determinant of global growth; but the crisis has retarded this growth. On  the other hand, it is thought that, the decrease in the public expenditure of  developed countries has caused financial resources that are reserved for  supporting the development of underdeveloped and developing countries  to diminish.  Two basic financial indicators of the Maastricht Criteria are the debt to  GDP and fiscal deficit to GDP ratios. These two indicators are for the  assurance of fiscal stability. Those countries that experienced the crisis  mostly could not meet these two criteria. In order to ensure budget  stability, developing countries were more successful in maintaining the  rates of debt to GDP and budget deficit to GDP around certain levels. This success is quite crucial for accomplishing significant and sustainable public  finance policies. In addition it is observed that the duration of crisis periods  in developing European countries is longer than other developing  countries. The debt stocks of European countries caused crisis to last  longer in the developing countries of the region.  Keywords: Budget Deficit, Debt Stock, Developing Countries, European  Debt Crisis, Fiscal Stability.</text>
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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

Improving the Productivity of Industry-University
Collaboration: The Example of Gaziantep University
Buket Gültekin İnce
Kilis 7 Aralık University, Kilis, Turkey
buketgultekinince@kilis.edu.tr
Nowadays, knowledge has become important as a competitive weapon (Van
Dierdonck et al., 1990) and competitive environment causes to pressure on
organisations to impel their boundaries, when the aim is to be leader of the
knowledge advancement. When there is an inter-organisational collaboration,
more beneficial knowledge can be created compared to each organisation working
alone, because integrative resources and capabilities that emanate from
collaboration of organisations create synergy. (Santoro &amp; Gopalakrishnan, 2000)
Universities are establishments that have strategic roles such as education,
scientific research and publication in the development of societies. The
development of the welfare of the societies requires benefiting from scientific and
technological studies effectively. Scientific thoughts should be integrated with the
lifestyles of the society to show improvements. Relationship between researchers
and external organisations is one of the most important ways for the
transformation of the knowledge to practical implementations. (Çelik &amp; Tufan,
2010)
This paper focuses on relationship between universities that employ a lot of
researchers and industrial establishments which perform practical
implementations. Research on university-industry collaboration has increased in
recent years because of globalisation. With the increasing of globalisation,
competitiveness has become more significant than previous years. Firms,
universities and other organisations must be strong to survive in their areas. To be
strong they may need help about some issues. For instance, firms need to be
innovative for new products or processes and universities need some funds for
their research and development studies.
Single case study will be used in this study and data will be collected by conducting
interview with a specialist of university-industry collaboration development in
Gaziantep University. This study proceeds as follows: First, industry-university
collaboration will be explained. Secondly, components and obstacles of this
relationship will be concatenated. Thirdly, the case of Gaziantep University will be
indicated. Finally, some suggestions will be given on how to improve the
productivity of university-industry collaboration.
Keywords: industry, university, collaboration, knowledge transfer, technology
transfer

69

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                <text>Nowadays, knowledge has become important as a competitive weapon (Van  Dierdonck et al., 1990) and competitive environment causes to pressure on  organisations to impel their boundaries, when the aim is to be leader of the  knowledge advancement. When there is an inter-organisational collaboration,  more beneficial knowledge can be created compared to each organisation working  alone, because integrative resources and capabilities that emanate from  collaboration of organisations create synergy. (Santoro &amp; Gopalakrishnan, 2000)  Universities are establishments that have strategic roles such as education,  scientific research and publication in the development of societies. The  development of the welfare of the societies requires benefiting from scientific and  technological studies effectively. Scientific thoughts should be integrated with the  lifestyles of the society to show improvements. Relationship between researchers  and external organisations is one of the most important ways for the  transformation of the knowledge to practical implementations. (Çelik &amp; Tufan,  2010)  This paper focuses on relationship between universities that employ a lot of  researchers and industrial establishments which perform practical  implementations. Research on university-industry collaboration has increased in  recent years because of globalisation. With the increasing of globalisation,  competitiveness has become more significant than previous years. Firms,  universities and other organisations must be strong to survive in their areas. To be  strong they may need help about some issues. For instance, firms need to be  innovative for new products or processes and universities need some funds for  their research and development studies.  Single case study will be used in this study and data will be collected by conducting  interview with a specialist of university-industry collaboration development in  Gaziantep University. This study proceeds as follows: First, industry-university  collaboration will be explained. Secondly, components and obstacles of this  relationship will be concatenated. Thirdly, the case of Gaziantep University will be  indicated. Finally, some suggestions will be given on how to improve the  productivity of university-industry collaboration.  Keywords: industry, university, collaboration, knowledge transfer, technology  transfer</text>
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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

Forecasting EURO/TRY Exchange Rates With Artificial
Neural Networks
Ali Göksu
International Burch University, Sarajevo, Bosnia and Herzegovina
agoksu@ibu.edu.ba
Olcay Erdoğan
International Burch University, Sarajevo, Bosnia and Herzegovina
olcay.erdogan@sarajevocollege.ba
Forecasting of financial data has been a field of research since the
efficiency of prediction is essential for future investments. Forecasting
exchange rates is not a simple task because it is influenced by many factors
and linear models are not able to capture nonlinear relationships in the
data. Therefore Artificial Neural Networks (ANN) have been used in
financial forecasting problems since it is capable of handling complex data.
The aim of this study is to consider predictive accuracy of ANNs with SBP
(Standard Back propagation) and normalized back propagation using the
historical EUR/TRY exchange rates. The data is obtained from CBRT
(Central Bank of the Republic of Turkey) and TSI (Turkish Statistical
Institute) over the period 2008-2013. Several factors affect the accuracy of
neural network in the implementation process. Various structures are built
by changing the number of neurons, number of layers and learning
algorithms to acquire higher performance. This empirical research has
been a comparative study of accuracy in different ANN architectures. The
results are evaluated by MSE (Mean Squared Error) values of each case and
it has been found out that ANNs can closely forecast the future EUR/TRY
exchange rates.
Keywords: ANN, back propagation, exchange rate forecasting, financial
time series

33

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ERDOGAN, Olcay</text>
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                <text>Forecasting of financial data has been a field of research since the  efficiency of prediction is essential for future investments. Forecasting  exchange rates is not a simple task because it is influenced by many factors  and linear models are not able to capture nonlinear relationships in the  data. Therefore Artificial Neural Networks (ANN) have been used in  financial forecasting problems since it is capable of handling complex data.  The aim of this study is to consider predictive accuracy of ANNs with SBP  (Standard Back propagation) and normalized back propagation using the  historical EUR/TRY exchange rates. The data is obtained from CBRT  (Central Bank of the Republic of Turkey) and TSI (Turkish Statistical  Institute) over the period 2008-2013. Several factors affect the accuracy of  neural network in the implementation process. Various structures are built  by changing the number of neurons, number of layers and learning  algorithms to acquire higher performance. This empirical research has  been a comparative study of accuracy in different ANN architectures. The  results are evaluated by MSE (Mean Squared Error) values of each case and  it has been found out that ANNs can closely forecast the future EUR/TRY  exchange rates.  Keywords: ANN, back propagation, exchange rate forecasting, financial  time series</text>
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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

Do e-metrics really matter?
Aida Habul
University of Sarajevo, Sarajevo, Bosnia and Herzegovina
aida.habul@efsa.unsa.ba

Merdzana Obralic
International Burch University, Sarajevo, Bosnia and Herzegovina
mobralic@ibu.edu.ba

Amila Pilav-Velid
University of Sarajevo, Sarajevo, Bosnia and Herzegovina
amila.pilav-velic@efsa.unas.ba

Nermin Kuldija
University of Sarajevo, Sarajevo, Bosnia and Herzegovina
nermin.kuldija@bhtelecom.ba
In contrast to other the most significant advantage of web site as
communication channel in terms of customer relationships is possibility to
count and track visitors’ path and thus provides valuable information regarding
their profiling. This possibility is indicated as e-Metrics. Hence, the Web site is
a great tool for a quick and inexpensive obtaining data about users-visitors. In
the process of measuring visits of Web sites there are two approaches: the
server-based measurement and user-based measurement. In this paper, we
explain the use of both approaches, server-based measurement in the case of
Google Analytics and gemiusAudience, and Alexa tool in the context of userbased measurement. This research is focused on the user-based measurement,
which is observed through the website of the company that operates in the ICT
sector on the domestic-Bosnian market. We studied some of the key
parameters such as "reach", "page views". Furthermore, the identification of
„visitor profile" was made using demographic and other data collected by the
Alexa tool. In line with this, research is extended to a web page in the form of
online questionnaire aimed to define user groups. Therefore, the survey
results are presented and discussed, and then compared with the data
collected by Alexa tools, which is used as a corrective tool for the results
obtained through the survey. This study highlighted possible weaknesses in
user-based measurements of the website audience. More specifically, the
user-based measurement approach could not give a real picture of the actual
website visitors. At the end, recommendations and guidelines for the future
researches are given.
Keywords: E-Metrics, Web Site, Bosnian Market.

27

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                <text>In contrast to other the most significant advantage of web site as  communication channel in terms of customer relationships is possibility to  count and track visitors’ path and thus provides valuable information regarding  their profiling. This possibility is indicated as e-Metrics. Hence, the Web site is  a great tool for a quick and inexpensive obtaining data about users-visitors. In  the process of measuring visits of Web sites there are two approaches: the  server-based measurement and user-based measurement. In this paper, we  explain the use of both approaches, server-based measurement in the case of  Google Analytics and gemiusAudience, and Alexa tool in the context of userbased  measurement. This research is focused on the user-based measurement,  which is observed through the website of the company that operates in the ICT  sector on the domestic-Bosnian market. We studied some of the key  parameters such as "reach", "page views". Furthermore, the identification of  „visitor profile" was made using demographic and other data collected by the  Alexa tool. In line with this, research is extended to a web page in the form of  online questionnaire aimed to define user groups. Therefore, the survey  results are presented and discussed, and then compared with the data  collected by Alexa tools, which is used as a corrective tool for the results  obtained through the survey. This study highlighted possible weaknesses in  user-based measurements of the website audience. More specifically, the  user-based measurement approach could not give a real picture of the actual  website visitors. At the end, recommendations and guidelines for the future  researches are given.  Keywords: E-Metrics, Web Site, Bosnian Market.</text>
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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

Company’s Web Presentation Supported by Web Content
Management System
Aida Habul
University of Sarajevo, Sarajevo, Bosnia and Herzegovina
aida.habul@efsa.unsa.ba
Amila Pilav-Velid
University of Sarajevo, Sarajevo, Bosnia and Herzegovina
amila.pilav-velic@efsa.unas.ba
Nermin Kuldija
University of Sarajevo, Sarajevo, Bosnia and Herzegovina
nermin.kuldija@bhtelecom.ba
Merdzana Obralic
International Burch University, Sarajevo, Bosnia and Herzegovina
mobralic@ibu.edu.ba

Today, companies should be very careful when choosing their online
strategies. It is not enough to only have website at-any-cost. Precisely, it is
necessary to distinguish structure (web design) and content
(presentations), which are placed on the corporate website. To create a
web design, companies can opt for ready-made solutions (outsourcing) or
to produce their own (in-house). But, surely, companies should not
outsource web content creation, its maintenance and management,
considering that reflects their business strategy as well as image.
Implementation of a reliable Content Management System will allow that
every employee of the company can easily and quickly change or update
the content on the website, leaving IT experts to deal with the structure of
the site, not content. For the research purposes, we have analyzed the
case of a domestic company that operates in the ICT sector in Bosnia and
Herzegovina, which web presentation was organized using Website
Content Management System. The specially designed questionnaire was
used as research instrument, and it was placed on the company's Web site.
Therefore, visitors were able to share their opinion about satisfaction with:
(1) web design, (2) content found on the site, (3) optimization of the
website and (4) content for all devices from which it can be accessed. We
found that 33.1% of visitors are not satisfied with web design, while other

25

�International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

visitors/participants in the survey considered it is good or average.
Furthermore, 68.2% of users are satisfied in one way or another how
company manages its site content. In addition, though the majority of
users (44.5%) are accessing a website via desktop PCs, 81.6% of them
considered that the website is well optimized/adjusted for all devices from
which they access to the site. However, the paper findings find that
Content Management System implementation in terms of separated web
design and content can provide quality and effective company’s web
presentation that will attract new but also retain existing customers
(visitors).
Keywords: Web Presentation, Web Content Management System, Bosnia
and Herzegovina

26

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PILAV-VELIC, Amila
KULDIJA, Nermin
OBRALIĆ, Merdžana</text>
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                <text>Today, companies should be very careful when choosing their online  strategies. It is not enough to only have website at-any-cost. Precisely, it is  necessary to distinguish structure (web design) and content  (presentations), which are placed on the corporate website. To create a  web design, companies can opt for ready-made solutions (outsourcing) or  to produce their own (in-house). But, surely, companies should not  outsource web content creation, its maintenance and management,  considering that reflects their business strategy as well as image.  Implementation of a reliable Content Management System will allow that  every employee of the company can easily and quickly change or update  the content on the website, leaving IT experts to deal with the structure of  the site, not content. For the research purposes, we have analyzed the  case of a domestic company that operates in the ICT sector in Bosnia and  Herzegovina, which web presentation was organized using Website  Content Management System. The specially designed questionnaire was  used as research instrument, and it was placed on the company's Web site.  Therefore, visitors were able to share their opinion about satisfaction with:  (1) web design, (2) content found on the site, (3) optimization of the  website and (4) content for all devices from which it can be accessed. We  found that 33.1% of visitors are not satisfied with web design, while other visitors/participants in the survey considered it is good or average.  Furthermore, 68.2% of users are satisfied in one way or another how  company manages its site content. In addition, though the majority of  users (44.5%) are accessing a website via desktop PCs, 81.6% of them  considered that the website is well optimized/adjusted for all devices from  which they access to the site. However, the paper findings find that  Content Management System implementation in terms of separated web  design and content can provide quality and effective company’s web  presentation that will attract new but also retain existing customers  (visitors).  Keywords: Web Presentation, Web Content Management System, Bosnia  and Herzegovina</text>
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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

EU Crisis: Economic Collapse
Aida Habul
University of Sarajevo, Sarajevo, Bosnia and Herzegovina
aida.habul@efsa.unsa.ba
Amila Pilav-Velid
University of Sarajevo, Sarajevo, Bosnia and Herzegovina
amila.pilav-velic@efsa.unas.ba
Nermin Kuldija
University of Sarajevo, Sarajevo, Bosnia and Herzegovina
nermin.kuldija@bhtelecom.ba
Adnan Šutrovid
University of Sarajevo, Sarajevo, Bosnia and Herzegovina
adnan.sutrovic@hotmail.com
Merdzana Obralic
International Burch University, Sarajevo, Bosnia and Herzegovina
mobralic@ibu.edu.ba
We consider economic crisis as one of the main problems which effect
whole population on some particular part of geographic area. There are
many factors that significantly took place in triggering the crisis, however,
the main reason was the combination of unequal distribution of wealth
and income and stock market intensified speculation which rampant
during the monitored period. In this research, we discuss the emergence of
the crisis, causes and its influence in the period from 2007 until today.
Further, our main objective will not be only European Union, it will be the
countries most affected by the crisis: Greece, Ireland, Portugal, Spain and
Italy. These counties are frequently referred as PIGS. We will use statistical
data, graphs etc. to show what the world’s economy went through. This
information is taken from recognized sources for tracking economic
variables. With analyzes of this information, it is going to be easier to
understand what is happening in the EU economy, countries most affected
by the crisis and in the most developed countries resilient to the crisis.
When it comes to Bosnia and Herzegovina, we have identified the
following causes of the financial crisis: political instability, lack of legal
state, poor economic performance, high levels of poverty, etc. Both,
inflation rate and GDP at current prices in Bosnia and Herzegovina for the
23

�International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

period 2006 - 2016 was the subject of our analysis. Furthermore, we
discuss the European crisis and overcoming present financial crisis in the
EU, with special emphasis put on Germany's role in finding future
economic stability and prosperity. The role of The European Financial
Stability Facility (EFSF) is thoroughly discussed and analyzed and the role of
the organization that would continue EFSF activities after 2013, the
European Stability Mechanism. At the end, we came to conclusion that this
is a particular example how the banking crisis evolved into finance crisis,
which is followed by currency crisis and at the end it takes characteristics
of debt crisis.
Keywords: EU Crisis, Economic Collapse, EFSF, Bosnia and Herzegovina

24

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PILAV-VELIC, Amila
KULDIJA, Nermin
OBRALIĆ, Merdžana</text>
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                <text>We consider economic crisis as one of the main problems which effect  whole population on some particular part of geographic area. There are  many factors that significantly took place in triggering the crisis, however,  the main reason was the combination of unequal distribution of wealth  and income and stock market intensified speculation which rampant  during the monitored period. In this research, we discuss the emergence of  the crisis, causes and its influence in the period from 2007 until today.  Further, our main objective will not be only European Union, it will be the  countries most affected by the crisis: Greece, Ireland, Portugal, Spain and  Italy. These counties are frequently referred as PIGS. We will use statistical  data, graphs etc. to show what the world’s economy went through. This  information is taken from recognized sources for tracking economic  variables. With analyzes of this information, it is going to be easier to  understand what is happening in the EU economy, countries most affected  by the crisis and in the most developed countries resilient to the crisis.  When it comes to Bosnia and Herzegovina, we have identified the  following causes of the financial crisis: political instability, lack of legal  state, poor economic performance, high levels of poverty, etc. Both,  inflation rate and GDP at current prices in Bosnia and Herzegovina for the period 2006 - 2016 was the subject of our analysis. Furthermore, we  discuss the European crisis and overcoming present financial crisis in the  EU, with special emphasis put on Germany's role in finding future  economic stability and prosperity. The role of The European Financial  Stability Facility (EFSF) is thoroughly discussed and analyzed and the role of  the organization that would continue EFSF activities after 2013, the  European Stability Mechanism. At the end, we came to conclusion that this  is a particular example how the banking crisis evolved into finance crisis,  which is followed by currency crisis and at the end it takes characteristics  of debt crisis.  Keywords: EU Crisis, Economic Collapse, EFSF, Bosnia and Herzegovina</text>
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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

Speed of Financial Integration before and after European
Union Membership
Aida Halilovid
International Burch University, Sarajevo, Bosnia and Herzegovina
halilovicaida88@hotmail.com
Uğur Ergün
International Burch University, Sarajevo, Bosnia and Herzegovina
uergun@ibu.edu.ba
This paper investigates a dimension of financial integration of developing
equity markets of European Union members which are Romania, Bulgaria
and Croatia with global dominant equity markets. The analysis is
performed at the country level using daily (five days) national stock market
indices. Publicly available data (Yahoo Finance) for US’s S&amp;P500, England’s
FTSE and German DAX; data of Bulgarian SOFIX and Romanian BET indices
received from their Stock market exchange and data for Croatian CROBEX
are used. Closing prices were denominated in local currencies and
considered in three different periods: period before EU membership,
period after EU membership, and whole period starting from September
1997 to December 2012. Comparison the daily stock market indices of
Croatia, Bulgaria and Romania with these mentioned developed and
mature markets is a need to investigate the short-and long-run dynamics
of equity markets that either have been or are prospective members of the
EU and because U.S.’s, German and England’s market play an influential
role in international stock market, all international investment flows are
dominated by these developed markets. Unit root test, Augmented DickeyFuller test statistic, Granger causality, Granger cointegration test and
recursive cointegration method are employed. Empirical results show that
all indices are integrated in whole period. The relationship is significant in
the period after EU membership, but not significant in the period before
EU membership. For Croatia, US’s S&amp;P500 index has the strongest impact
on CROBEX in whole period. The result implies that EU membership has
strong positive impact on the integration of developing EU countries.
Keywords: Financial Integration, European Union, Equity Market, Unit Root
Test, Granger Causality, Cointegration, Recursive Cointegration

28

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ERGÜN, Uğur </text>
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                <text>This paper investigates a dimension of financial integration of developing  equity markets of European Union members which are Romania, Bulgaria  and Croatia with global dominant equity markets. The analysis is  performed at the country level using daily (five days) national stock market  indices. Publicly available data (Yahoo Finance) for US’s S&amp;P500, England’s  FTSE and German DAX; data of Bulgarian SOFIX and Romanian BET indices  received from their Stock market exchange and data for Croatian CROBEX  are used. Closing prices were denominated in local currencies and  considered in three different periods: period before EU membership,  period after EU membership, and whole period starting from September  1997 to December 2012. Comparison the daily stock market indices of  Croatia, Bulgaria and Romania with these mentioned developed and  mature markets is a need to investigate the short-and long-run dynamics  of equity markets that either have been or are prospective members of the  EU and because U.S.’s, German and England’s market play an influential  role in international stock market, all international investment flows are  dominated by these developed markets. Unit root test, Augmented Dickey-  Fuller test statistic, Granger causality, Granger cointegration test and  recursive cointegration method are employed. Empirical results show that  all indices are integrated in whole period. The relationship is significant in  the period after EU membership, but not significant in the period before  EU membership. For Croatia, US’s S&amp;P500 index has the strongest impact  on CROBEX in whole period. The result implies that EU membership has  strong positive impact on the integration of developing EU countries.  Keywords: Financial Integration, European Union, Equity Market, Unit Root  Test, Granger Causality, Cointegration, Recursive Cointegration</text>
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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

The Concept and Development of the Civil Dialogue at EU
Level
Indira Hasanovic
International University of Sarajevo, Sarajevo, Bosnia and Herzegovina
indira.hasanovic@gmail.com
This paper analyzes the concept of civil dialogue as well as its development
in the EU level. Civil dialogue is an expression of participatory democracy;
therefore the participation of citizens in decision-making and policy is
essential to democracy. However, democracy becomes quite complicated
when discussing the issue at the European level because of the structure of
the European Union which is based on an ad-hoc approach. The other
reason for the increasing validity of the dialogue with citizens in the Union
should search for partial and troubling results of public opinion surveys
that show a low level of understanding of mechanisms of action of the
European institutions among citizens of the member states of EU. As
result, French and Dutch referenda on the Constitutional Treaty have
shown that there is a serious disconnection between citizens and policy
makers at the European level. Therefore, the role and contribution of CSOs
(especially NGOs) in the process of EU policy is extremely increased, in the
last decades. Civil dialogue between civil society and public institutions at
all levels is seen as a powerful tool that could help improve communication
and citizen participation in decisions and policies made. Still difference in
the level of development of the dialogue between the various EU
institutions and NGOs is directly related to the degree of their work. From
all EU institutions, European Commission has made the most progress in
formalizing and institutionalizing consultations and dialogue with NGOs.
Importance of growing engagement NGOs within the EU is indeed
evaluated, both in terms of the policy process, and as a contribution to
solving the democratic deficit through more participating forms of
participation. The aim of this paper is to review the current practice of the
civil dialogue at EU level through the analysis of several cases, and through
them deficiencies and problems of previous practices of dialogue between
the EU and NGOs will be shown.
Keywords: European Union, Civil Dialogue, Democratic
Participatory Democracy, Ngos, European Commission.

171

Deficit,

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The Concept and Development of the Civil Dialogue at EU Level
Indira Hasanović
International University of Sarajevo, Sarajevo, Bosnia and Herzegovina
indira.hasanovic@gmail.com

Abstract
This paper analyzes the concept of civil dialogue as well as its development in the
EU level. Civil dialogue is an expression of participatory democracy; therefore the
participation of citizens in decision-making and policy is essential to democracy.
However, democracy becomes quite complicated when discussing the issue at the
European level because of the structure of the European Union which is based on an
ad-hoc approach. The other reason for the increasing validity of the dialogue with
citizens in the Union should search for partial and troubling results of public
opinion surveys that show a low level of understanding of mechanisms of action of
the European institutions among citizens of the member states of EU. As result,
French and Dutch referenda on the Constitutional Treaty have shown that there is a
serious disconnection between citizens and policy makers at the European level.
Therefore, the role and contribution of CSOs (especially NGOs) in the process of
EU policy is extremely increased, in the last decades. Civil dialogue between civil
society and public institutions at all levels is seen as a powerful tool that could help
improve communication and citizen participation in decisions and policies made.
Still difference in the level of development of the dialogue between the various EU
institutions and NGOs is directly related to the degree of their work. From all EU
institutions, European Commission has made the most progress in formalizing and
institutionalizing consultations and dialogue with NGOs. Importance of growing
engagement NGOs within the EU is indeed evaluated, both in terms of the policy
process, and as a contribution to solving the democratic deficit through more
participating forms of participation. The aim of this paper is to review the current
practice of the civil dialogue at EU level through the analysis of several cases, and
through them deficiencies and problems of previous practices of dialogue between
the EU and NGOs will be shown.
Keywords: European Union, civil dialogue, democratic deficit, participatory
democracy, NGOs, European Commission.

Introduction
Development of an idea of civil society is coming from different roots, where many
scholars have contributed by their discourses and definitions. John Locke was the first in
modern times who defined civil society "as a separate entity independent from the
State."(Schade, 2000, p.10) According to his definition people are the members of the
community in which their social life is developed without government interference. He
believes that the state should be preserve, complete and regulate the natural state of
society. Unlike Locke, Thomas Paine considers the ideal civil society as one in which civil
society regulates its own affairs in order to leave as less space as possible for the
interference of the government. On the other hand, Alexander de Tocqueville emphasizes
that the role of an independent association of a civil society, is where "associations are
1

�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

schools of democracies where the democratic thinking, attitudes and behaviors are taught
in order to protect individual rights against potential authoritarian regime." (Paffenholz and
Spunrk, 2006, p.4) He also believes that these associations should be on a voluntary basis
and be built at all levels (local, regional, national).
Jurgen Habermas has focused his concept of the role of civil society in the public sphere.
Habermars believes that "the political system needs to articulate the interests of the public
space by putting different views on the political agenda," (Habermas, 1992, p.374) while
marginalized groups should be organized and a way should be found in order to articulate
their interests. This is necessary primarily because the political parties and parliaments
should "take into account public opinion outside the established structures of power",
(Habermas, 1992). The conclusion to be drawn from this review of the basic principles of
the concept of civil society is that different understandings and interpretations of civil
society have influenced the theoretical debate and empirical research as well as the
historical relationship of political emancipation of citizens. In an early stage, the civil
society in Western Europe (18th and 19th century) was enhanced by economic and
academic elites who demanded civil and human rights and political participation.
The Definition and Role of Civil Society
In 1960 new social movements such as the liberalization of women, environmental
movements were emerging which significantly expanded the scope of activities of civil
society. Eastern Europe has faced political, economic and social transformation where civil
society played an important role in the establishment of democratic structures. Their
success is dependent on various factors, the incorporation of democratic procedures in its
own structure and organization, especially after the changes of the system. Democratic
functions of civil society are the ones that build and increase the level of democratic
political culture and develop appropriate democratic values, and create the conditions for
democratic institutions of government action. "The basis for considering all variants of
concepts and practices of civil society is an ideal-typical paradigm of civil society and
legal state." (Vujadinovic, 2007, p.22) Edward's model of the concept of civil society is
reflected by three items as the "civil society means different things to different people"
(Edwards, 2004, p.3):
1. Civil society as a world of voluntary association that aims to develop values such as
tolerance and cooperation.
2. Civil society as the good society aims to foster positive norms and values, where
activities are directed towards specific social and political goals.
3. Civil society as part of the public space that aims to provide a space in which
citizens can discuss issues of common interest. This role is essential when it comes
to finding appropriate solutions and making decisions that are important to
society.(Edwards, 2004, p.18-54)
Edwards' main hypothesis is that each of these roles can independently achieve results in
terms of social change, as well as other results that are usually attributed to civil society.
"Civil society is based on the principles of autonomy (for the autonomous, voluntary,
spontaneous highlighting the identity of the citizen), associatively (self-organization of
citizens and associative effects on the spontaneous association in the form of civic
initiatives, social movements, non-governmental organizations) and the public (for the
public and media disclosure issues and goals of activities and specific actions of self-civil
society actors with the aim of problems resolved individually, pressing the
government)."(Vujadinovic, 2007, p.23) Civil society activism is the control mechanism in
2

�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

the political control of the actions of state bodies, holders of political power. Seven basic
functions of civil society are:
1. The protection of citizens, whose main function consists of the protection of life,
liberty and property, and the state of despotism
2. Monitoring responsibilities, but mainly monitoring activities that may relate to
different issues, such as human rights advocacy
3. Public communications which are based on lobbing interest especially of
marginalized groups, as well as raising public awareness of issues important to
society.
4. Socialization, which should contribute to the creation of democratic attitudes
among citizens, mutual trust and tolerance
5. Building community through participation in voluntary associations that strengthen
ties between citizens
6. Mediation between the state and citizens, i.e. role of balancing power and
negotiations with the government, the establishment of relations among various
interest groups.
7. Provision of services is an important part of the activities of civil society groups.
(Paffenholz and Spunrk, 2006, p.23)
State-civil society relations consider well organized state that guarantees the rights that
enable the functioning of civil society. The discourse of civil society in the last decade
appears to struggle against the totalitarian form of government, which contributes to the
destruction of civil society. Namely the development of a democratic political culture is
essential for civil society, which is itself in a reciprocal relationship. From the above
mentioned, we see that these factors influence the development of civil society as the
quality of political culture, political institutions, the law and public opinion, etc. Thus, civil
society is defined as a public space in which citizens seek to actively and freely participate
in all spheres of social life through self-organization, in order to publicly control and
evaluate the work of government institutions, raise public awareness and knowledge of
performance authorities outside of the state institutions.
According to many contemporary theorists, the definition of civil society is in relation to
the "totality of institutions, organizations and individuals located between the family, the
state and the market, where people voluntarily join to contribute to the common
interest."(Anheier, Regina, 2005, p.54) Here the concept of civil society is based on
democratic ideals of liberalism in which a citizen is referred to as an individual, who
participates in various elements of a democratic and community life. This vision of society
means that citizens are formed into groups or associations to influence the political
process, i.e. "creating channels of communication between citizens and government
directly and indirectly."(Mavrikos-Adamou, 2010, p.516) This means that civil society
occupies a key site between the elite and the citizens, and between the state and the market.
Civil society is experiencing its expansion in the 1980s and early 1990s in Eastern Europe,
the emergence of mass movements that aimed at the democratization of society, which
until then was almost unheard of. As a reason it could be also included, the collapse of the
Soviet Union which opened many discussions about: what is actually civil society and their
actual role. Deepening of the integration process, the EU has a growing direct influence on
the everyday issues of EU citizens. The Treaty of Amsterdam further contributed to the
development of civil society, transferring some of the areas subject to interstate
cooperation in justice and home affairs. This is also contributing to greater EU powers and
this rank the issues on the agenda of the EU. European Citizen Action Service (ECAS) i is
one of the first organizations that the EU has contributed to strengthening of the NGO
sector in relation to the EU institutions in order to develop Europe’s citizenship. According
3

�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

to many writings, the development of civil society at the European level initiated in the last
decade a very strong effect and great interest of the European institutions, primarily
because the concept of civil society is offered as an universal solution to social and
political problems.
The definition of civil society organizations and their role in participatory democracy
at the EU level
Today there is controversy in terms of different interpretations about what is the role of
civil society in modern societies, and which correlation is between the civil society and the
state. Starting from Theda Skocpola that emphasizes "the crucial role of the state is in the
development of civil society" (Howard 2003, p.44), Jonah Levy insists that “the
relationship between state and society civil should not be hostile, and that the state
exclusion is not enough to develop a good civil society."(Howard 2003, p.38) From this we
can conclude that the citizen as an individual modern society should have the opportunity
to pursue their interests in a social space. Most citizens are the easiest to realize their
interests through involvement in the work of civil society organizations (CSOs). From a
legal point of view there are several different names for the civil society organizations that
can be classified into several forms such as: associations, NGOs, cooperatives, non-profit
sector, voluntary organizations, etc. The way in which the citizens will act depends on their
interest, which can be characterized as a professional activity within the civil society
through voluntary work, providing public support for the initiative or for an exit to the
street. The meaning of civil society should primarily lie in the strength of arguments and
supporting certain values and interests.
Michael Edwards believes that "the organization of the civil society should be part of the
public sphere, and their actions in the public arena can contribute, and thus positively
affect the rendering of a decision."(Edwards, 2005) According to many authors, civil
society organizations are considered "social phenomenon which represent fifth economic
power in the world."ii In further defining civil society, Wesley Scott and Likanen see civil
society as "the political power of the central development of values and social goals of the
community that is reflected in the function of modernization and democratization of the
state and social relations." (Wesley Scott J. and Likanen, 2010, p.424) From this we see
that civil society is a major political factor in articulating and shaping social and collective
rights. Different interpretations of the role of civil society are coming from different
historical experiences, which are in the process of globalization, the changing role of the
state in everyday life. "Thus, in the Western countries to strengthen civil society linked to
any questioning of the traditional role of the state in social protection …….or the
development of civil society will be brought into connection with dissatisfaction progress
in economic development .... while in Central and Southern Europe, the development of
modern society civil is most commonly associated with the collapse of the socialist
concept of the state and changes in the model of collective behavior." (Žeravčić, 2011, p.4)
For the definition of civil society, the EU institutions typically use the definition adopted
by the European Committee Economic and Social Committe gave in his opinion, "The
Role and Contribution of Civil Society Organizations in the Building of Europe."iii Civil
society organizations include:
1. Participants in labor market (i.e. trade unions and employers' associations, socalled. social partners)
2. Organizations representing social and economic participants which are not social
partners in the strict sense (consumer organization)
3. Non-profit organization (NGOs)

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4. Organizations in the community, i.e. organizations established within the company
level following goals focused on the members (youth associations, all organizations
through which citizens participate in local and city life)
5. Religious communities. (Petrenko and Kallins, 2007, p.29)
Contemporary debates increasingly put emphasis on civil society when it comes to the
process of democratization and social reform as an important player in the overall political,
social and economic development. The assignment of the role of civil society organizations
is reflected in their increasing efforts to solve social problems, and representing the general
interests through participation in the political process. By this we mean the participation of
civil society in the formulation, adoption and implementation of public policy in society.
According to Diamond, civil society organizations are "important in strengthening
democracy as opposed to authoritarianism, check the state and make it accountable to the
citizens, to represent the interests of citizens, enabling the flow of information, stimulate
democratic participation by improving democratic values."(Kunac, 2066, p.16)
As a direct result of the challenges that representative democracy is facing in the context of
contemporary global trends appear to participatory democracy and civil dialogue. Citizen
participation in the decision-making and enforcement is an integral part of participatory
democracy. However it is important to emphasize that participatory democracy is not
replaced for a representative democracy, i.e. it does not eliminate the powers of the
representatives of the executive and legislative powers in decision-making and
enforcement. The purpose of representative democracy in principle would mean that the
citizen through the electoral process give his/her voice for legitimacy to certain parties that
make political decisions which represent their interests. Together with representative
democracy, participatory democracy is the foundation on which the modern democratic
society is based. However, globalization has caused significant social and political
changes, and therefore as a result people develop feelings that through representative
democracy they cannot directly influence the factors that have an impact on their lives.
The process of decision-making has become more or less technical work that could enable
more citizens through their representatives to contribute to quality of life. The inability of
representative democracy to allow ordinary citizens to participate in decision-making is
born in the idea of participatory democracy, which is now standard in developed countries.
The idea of participatory democracy is based on two key principles:
1. Individuals should have the opportunity to participate in political decision making,
which directly determines the quality and direction of their lives
2. Society should be organized to encourage individuals (citizens) to participate in
political decision-making and to ensure public media space for joint participation in
the process. (Žeravčić, 2011, p.3)
In addition to enabling the continuous participation of citizens in the political process,
participatory democracy allows citizens to advocate and defend their interests in policymaking. The role of civil society in this process is very important, "first by enabling
citizens to successfully advocate for their interests over the public authorities, and second
direct protection of enjoyment of certain rights from which the right to participate in the
decision-making process derives"(Žeravčić, 2011, p.3) These two reasons mentioned
above and the role of CSOs in the process of adoption and application of the law has been
recognized in international documents, the Lisbon Treaty of the EU and Recommendations
of the Committee of Ministers of the Council of Europe to member states on the legal
status of civil society in Europe. EU Lisbon Treaty, Article 11. “Institutions' of Union
allows citizens and organizations to express their views and share public opinion in all
areas of Union action. It also states that institutions maintain an open, transparent and
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regular dialogue with civil society organizations and civil society"(EU Lisbon Treaty,
2010).
According to the recommendations of the Committee of Ministers of the Council of
Europe states that all levels of government need to provide an effective and equal
participation of civil society in dialogue, exchange of views on issues of importance to the
community. It also points out that "civil society organizations should be consulted on draft
legislation and other documents affecting their status."(Council of Europe, 2007) What is
important to emphasize is that the institutional mechanisms citizen participation in the
legislative process and other public policy differs from country to country. Differences
appear in the scope of mechanisms, types of documents and entities involved in this
mechanism.
From this we see that the CSOs plays a very important role in providing public services
that take place in cooperation with the authorities. Their functioning as informal actors in
the political process allows them to influence the decision-making process, the formulation
of alternatives and keeping up the pressure for better implementation of decisions. It is
important to emphasize that the role of NGOs in the political process is not only
influencing the decision-making power but also an attempt to find solutions to specific
problems. The increasing engagement of civil society based on participatory democracy
makes the democratically elected government more transparent and closer to the citizens.
One of the most important activities of CSOs to influence the process is best described by
the term advocacy (policy advocacy). The concept of advocacy by Reid means "to
influence social groups in shaping social and political outcomes in government and
society." (Reid, 2003, p.3) Advocacy is "raising the voice" on important issues and guide
them towards a resolution in favor of those who "do not hear" or those who are not “loud
enough”.
When we talk about the orientation towards advocacy Reid suggests two types of
advocacy:
1. Advocacy directed at government relating to actions to public institutions, i.e.
decision-making and the process of making and implementing policy.
2. Advocacy oriented society emphasizes the important role of NGOs in creating
public opinion, setting priorities and actions of citizens. This type of advocacy
NGOs is responsible for the analysis, interpretation and transmission of information
in society, which is usually carried out through public media campaigns, education,
publications, and act. (Reid, 2003, p.6).
It should be noted that the state is still obliged to immediately accept all requests and
suggestions from civil society organizations, but it shall maintain a dialogue based on
arguments and facilitate the participation of the same conditions to all civil society
organizations wishing to participate in the creation and implementation of public policy. It
is important to emphasize that the structured dialogue between the state and civil society
can contribute to strengthening the role of civil society and thereby strengthen the state to
cope with modern challenges.
The role of NGOs and advisory mechanisms of dialogue at the European Union level
Modern democratic society means a society that allows its citizens to achieve its set
objectives within the public space. Citizens' interests can be divided into economic, social
or political. The citizen is to realize "their social interests within civil society formation, or
engaging in the work of civil society" (Žeravčić, 2010, p.6). NGOs are considered the most
distinguished actors of civil society. When it comes to non-governmental organizations
(NGOs) and their definition it is often described as very diverse, heterogeneous
organizations with very different goals, motivations, structures, but the important point is
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that NGOs are very deeply rooted in the development of civil society. We can say that by
giving greater importance to civil rights in Europe, people increasingly founded such
organizations which dealt with social issues and needs and protection of interests of
citizens. Because of the different definitions of non-governmental organizations, the
general definition of non-governmental organizations should include the following
elements as basic:
1. NGO are independent, especially the government and other public bodies.
2. NGOs act in the public interest, i.e. addressing issues related to the welfare of the
people and society.
3. Non-profit organization’s
4. Democratic organizations that are formed voluntarily (COM, 2000).
Specifically, the role of non-governmental organizations in EU policy has a particularly
important role in the broader European management; we can say that the European
decision-making very much depends not only on several European institutions and nations.
Based on this we can conclude that the dialogue with non-governmental organizations play
a crucial role in European governance. Traditional forms of democracy should be
strengthened by including citizens and their associations in a consistent dialogue on certain
issues and thus contribute to EU policy. Civil society needs to find a way to increase their
abilities, acting as an intermediary in the exchange of information and opinions between
citizens and government.
Also, one of the reasons for giving greater importance of dialogue with NGOs and EU are
worrisome poll results by which it was found that EU citizens have very little knowledge
and understanding of the structure and mechanisms of action of the European institutions.
These results were reflected in a declining turnout of citizens in elections for the European
Parliament, as well as a rejection of the Irish people in the referendum to give their support
to the ratification of the Nice Treaty. "Thanks to the new institutional and symbolic
framework as given by the Treaty of Maastricht and the concept of citizens' Europe, a
sudden increase in the number of networks of NGOs actively involved in lobbying and
dialogue with the European institutions and the gradual explicit recognition of their role in
the strategic documents of the EU"(Vidačevak, 2008, p.238).
Out of all institutions, the European Commission has made the greatest progress in
formalizing and institutionalizing consultation and dialogue with non-governmental
organizations. In 1997 the issuing of the first important document that sets the principles
based on which the cooperation of European institutions with NGOs are developed.
Notification of the European Commission entitled Promoting the role of voluntary
organizations and associations in Europe.iv This document is intended to promote a
stronger civil dialogue at European level, to highlight the growing role of nongovernmental organizations within the EU, and to point out the problems and challenges
they face. Another goal of this paper is to enhance the role and capacity of NGOs to be
involved in the process of European integration. In 2000, followed by a Discussion paper
European Commission called the Commission and NGOs: Building a Stronger
Partnershipv, standing in the same, had two goals: "The first objective is to review the
existing relations between existing problems of the European Commission and NGOs, and
the second is to suggest possible guidelines in order to strengthen mutual relations” (COM,
2000, p.2).
According to this document the existing cooperation and desire to improve relations
between the European Commission and NGOs would be based on five main guidelines:
1. Participation in the democratic decision-making process in the EU is primarily
legitimized by the elected representatives of European citizens. However, NGOs
can contribute to promoting more participatory democracy in the European Union
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2.

3.

4.

5.

and beyond. The fundamental right of the citizens is the freedom to form
associations for mutual benefit. Belonging to an association provides an
opportunity for citizens to participate actively in the new modes of action in
addition to options for action through political parties and trade unions. The role of
the association is recognized as an important component of civil society in
supporting the democratic system of government, which is of particular importance
in the context of EU enlargement. According to the so-called Copenhagen criteria,
EU membership requires that the candidate country has achieved stability of
institutions guaranteeing democracy, the rule of human rights and respect and
protection of minorities. Non-governmental organizations can make a significant
contribution to the development of democracy and civil society in the candidate
countries.
Representing the views of certain groups of citizens before the European
institutions-The role of NGOs is that the views represented in front of the European
institutions, certain groups of people (such as people with disabilities, ethnic
minorities) or on specific issues (such as environment, life standard). In particular,
many NGOs have the opportunity to come into contact with the poorest and most
vulnerable groups of the population, and to ensure that they are the voice for those
who are not loud enough through other communication channels. Their
participation in the shaping of policy principles and policy implementation is of
great importance for the EU. In some cases, they can act as a balance of activities
and exchange views with other stakeholders in the society.
Contribution to decision-making is the specific expertise of non-governmental
organizations that put them in political debates. Through connections at local,
regional, national and European level, NGOs can provide assistance in the
development of EU policy. In particular, NGOs can provide feedback on the
performance or other results of certain political decisions, and thereby contribute to
the task of the Commission in defining and implementing policies. There are also a
number of institutional mechanisms for consultation with NGOs that are
significantly different in terms of the degree of openness, technical details, as well
as the actors involved in it (for example, forums for dialogue sessions hearing at the
European Parliament, individual consultations with members of the committee
NGOs, focus groups, round tables, workshops, seminars, etc.).
Contribution to manage project-specific expertise that NGOs can bring to the
management, monitoring and evaluation of projects funded by the EU. The
contribution of NGOs Especially important in the fight against social exclusion and
discrimination, protecting the environment and providing humanitarian and
development assistance. The expertise and dedication of NGO staff and their
willingness to work in difficult operating conditions makes NGOs a vital partner of
the Commission, both within the EU and beyond.
Contribution of European integration-encouragement of national NGOs to work
together to achieve goals, a European network of non-governmental organizations
provide an important contribution to the formation of a "European public opinion"
in order to recognize NGOs as a true European political entity. At the same time,
through a convenient way they contribute to support of European integration. The
strengthening of relations between the European Commission and NGOs can help
both parties to be successful in achieving their goals. At the same time, the
Commission should recognize and support the development and independence of
NGOs (COM, 2000, p.4-5).

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With this document, the Commission has recognized NGOs as partners in policy as
representative of different groups of people and project management. The Commission
also considered that the involvement of NGOs in the policy process could be a way of
solving the problem of "democratic deficit" in the EU. "The impact of this particular
document confirms many reactions to the document that were received from Member
States and candidate countries." (COM, 2000) In response to the results of public opinion
in the Member States which show a very low level of trust in the EU institutions and
informing the citizens about the work thereof, the Commission in the midyear of 2001
published a White Paper on European Governancevi. White Paper on European
Governance is the Commission's effort in upgrading and creating greater accountability,
transparency and obligations of the parties involved in the policy process.
It is very important that the Commission consultative process include mechanisms for
response, evaluation and review, and also NGOs are expected to provide mechanisms to
monitor the consultation process and to contribute to the creation of more transparent, open
and accountable system. In addition to these general principles, the Commission has
established minimum standards for consultation of the consulting process with NGOs.
Minimum standards of consultation are meant for the general public and refer to "clear the
contents of the consultation, publication of documents that are subject of counseling in a
format adapted to a wider range of target groups, information (raising awareness about a
particular counseling, for example. portal Your Voice in Europevii) the time limit for
participation in a particular consultation and the establishment of mechanisms to check and
pending feedback on the proposed new legislative measures and proposals for new
policies." (COM, 2001) Minimum standards are systematically applied to all relevant
policy initiatives.
Civil society groups are becoming more active in lobbying in the European Union over the
past decade, but this engagement, even when successful, often does not coincide with the
interests of private interest groups. As Varleigh points out, "the EU's position towards civil
society groups in the past was questionable, because the Commission shall be responsible
for consultation only with certain non-governmental organizations that are essentially
supportive of the Commission's policy, and sometimes even its role in the institutional
process” (Warleigh, 2006, p.200). It is clear that in designing consultative forum for
members experts are invited. The Commission has launched a debate on the role of civil
society on the management of the European Union. She believes the institutionalization of
relations with civil society as part of new management methods to increase legitimacy
European Union through participation, thus empowering civil society. White Paper on
Governance refers explicitly to the transnational public sphere as a single in which "the
consultation becomes part of the discussion on the re-legalization of complementary
models (representative) democracy" (Garcia, 2009 p.179).
The Commission still refuses to grant consultative status to official associations; today
there is no register of associations that lobby at the Commission. The only elements that
have a registration system database is a CONECCS (Consultation, the European
Commission and Civil Society)viii, founded by the Commission for greater transparency.
"As part of the consultative forums and boards standards and criteria have been created
which the Commission should follow in determining the relevant NGOs who will be
involved in the consultation process."ix Into consideration following factors will be taken:
"the potential impact of proposed policies in other areas, need for specific experience,
expertise or technical knowledge, previous participation in consultations and the need for a
balance where it matters, i.e. among representatives of large and small organizations, social
and economic subjects, rower target groups and organizations from EU and non-member
states"(Vidačevak,2008, p.242). Although not legally binding force, these codes should

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confirm its value over time and thus become the foundation on which to develop dialogue
between NGOs and the European institutions, as well as a step in the harmonization of
policies towards non-governmental organizations at the national level of the current and
future Member States.
Cooperation between the European Commission and non-governmental
organizations in the process of EU enlargement
The literature says that the EU has a benevolent impact when it comes to the process of
democratization in post-communist countries, "but notes that the EU Member States, as
well as potential members strengthen the executive and bureaucratic power without
adequate active participation of citizens" (Goetz and Hix, 2000). The integration into
European structures largely depends on the potential candidates, namely that any country
who wants to became a full member state must accept the values and standards of the EU.
However, when it comes to the EU accession process it is very important to note that the
rules are a big difference when it comes to the countries of Eastern and Central Europe and
the Balkan countries. Both groups of countries are countries of the communist regime, but
the difference between the first and second group of countries is that the second group of
countries certainly gave a picture of instability, ballast of the past, historical events, etc.
However, efforts of the EU when it comes to joining the post-communist Balkan countries
certainly have made progress along the results, but still in front of them there is a huge task
when it comes to meeting the set criteria.
The Copenhagen political criteria set for the EU membership candidate countries seeking
stability of institutions guaranteeing democracy, development, human rights, and
particularly the respect for and protection of minorities at the EU's increasing attention to
points. According Pridhamu, the EU's influence on the democratization of the candidate
countries varies between three phases:
1. Phase 1 negotiations which preceded, when necessary to meet the Copenhagen
criteria before negotiations
2. Phase 2 negotiations, when supplemented regularly monitors compliance policy
conditions
3. Phase 3 after admission to membership, as a direct impact of the EU on a new
application of weak countries, but also strengthen the indirect effects of European
integration in the consolidation of democracy intensified creating networks that EU
membership brings (Pridham, 2002, p.15).
Based on this we can conclude that the most effective phase of democratization in postcommunist countries is 1 and 2, because from experience it is known that negotiations can
begin without all the political conditions satisfied, and the establishment of provisional
membership negotiations or termination of negotiations for serious violations of political
conditions given. When the second case in the process is slow due to procedural reasons.
"The whole process of implementation of institutional changes and a law course sees as
great importance the development of civil society and exclusion of non-governmental
organizations which complement the country. For the EU, NGOs are very important,
independent source of information, and also they can act as a control mechanism in the
field of reforms that are sensitive in political terms"(Pridham, 2002, p.17).
The European Commission in its document entitled "Dialogue of civil society organization
between the EU and the candidate countries" in 2005 confirmed its views that NGOs play
a key role in the ongoing reforms for the candidate countries and potential candidates. In
what the European Commission insists is "the need for stronger civil dialogue among civil
society in the EU and candidate countries with understanding the best practices when it
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comes to the enlargement process in which NGOs have an important role and a significant
contribution" (Pridham, 2002, p.17). The EU's insistence on strong dialogue stems from
the experience of the previous enlargement during which citizens demonstrated a low level
of awareness of EU enlargement. Dialogue with non-governmental organizations for years
is seen as an integral part of the political and social culture in member countries.
However, the fulfillment of the above mentioned requirements is a prerequisite for joining
the EU, as well as a complete success of the process of European integration. Dialogue
with non-governmental sector for decades in the EU Member States an integral part of the
political, social and economic culture cannot be passed as regulation or directive into the
country or organizations because of its political history, this culture could not be
developed. Exchange of experiences and knowledge among current and future member
states are very important in building a civil society because there are no clearly defined
standards when it comes to cooperation between governmental and non-governmental
organizations. In helping meet the criteria for EU membership, the European Union has
launched a series of initiatives to strengthen the role of civil society in these countries. This
primarily refers to the pre-accession aids that act as the development of democratic
processes, strengthening the capacity of NGOs in the sectors which are relevant for the
implementation of the acquis. The Concept of the Commission on the role of civil society
in the Western Balkans is set in the Enlargement Strategy 2010 which states that:
"The activities of civil society are essential for a more mature democracy, respect for
human rights and the rule of law. Such activities should improve political accountability,
and encourage and expand the space for dialogue on social choices and strengthen the
consensus for a pluralistic society; tolerance and reconciliation in society also contribute to
more open, participatory and dynamic democracy. "Here we see the emphasis on tolerance
and reconciliation because they are clearly recognized in the EU policy in the region that
has not yet developed a pluralistic society among the fellowship. The EU has significant
power in influencing the path of development, and proposes concrete and practical level
for the Commission: "The culture of acceptance and appreciation is the role that civil
society needs to take in order to enable the organization of civil society an engagement in
effective political dialogue. Public consultation on policy initiatives and draft laws should
be considered as general principles. Support to civil society by the government is often
hampered by a lack of transparency and under-developed criteria “(COM, 2010, p.13).
As you can see from the above example, a key objective of the Commission is to involve
NGOs in effective dialogue with public and private actors, as well as involvement in
monitoring the developments in the field of rule of law and respect for fundamental rights.
In line with the previous extension the Commission insists on strengthening the role of
civil society not only through communication and cooperation between the Member States
and the candidate, but also to pay considerable attention to the role of civil society in the
process of democratization and reconciliation which take place in these countries. "One of
the main objectives of the program of NGOs is involvement of candidate countries in the
activities of the networks and platforms of NGOs operating at EU level" (COM, 2010,
p.14).
The experience of the candidate countries and EU member states and the role of
NGOs in the process of joining the EU
Challenges which European Commission faced in regards to relations between the
European Union and the new democracies established in the Central and Eastern Europe,
were different for the Commission from all the other experiences she faced so far which
were related to the enlargement of the European Union. Commission as a representative of

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the Member States of the European Union has managed to capture a significant
independent role in the eastern extension when it comes to formal policy proposals that
have shaped the relationship between the candidate countries and potential candidates. The
Commission as the institutional representative of the European Union, through capacity
building and compliance functions within the process is the closest in the various activities
of the candidate. The process of involving the civil society in the process of expansion has
been slow, which included a contradiction. "In some of the aspects, the prominence of civil
society in bringing down the communist regime in the late 1980s led to unexpected
progress and impact of the civil society in the reconstruction and consolidation of
democratic institutions and associations in post-communist Europe" (Bostic 2011, p.9). All
this has led the European Union to administer first opportunity for civil society to
participate in the political context of the enlargement process, in cooperation with the
European Commission.
"Under pressure from the EU, and encouraged by the need to gain popular support for
reforms that require adjustment of the EU, most of the applicant countries have developed
certain formal and informal mechanisms for participation in the NGO sector."x For
example, "the Slovenian government, through its Office of European Integration at the
start of negotiations for EU, sent a public invitation to NGOs to get involved in the
preparation of the country for accession to the Union. Consultation with NGOs is
conceived as a public conference to precede the development of the draft positions for
specific thematic areas of the acquits in the various ministries. It was only after discussion
with NGOs, the negotiating position is forwarded to the Government, the Parliament, and
then Brussels" (Vidačevak,2001, p.244). Conducted research revealed very low turnout
organizations, and obstacle to the establishment of a structured civil dialogue were
discovered as well. In this research the main problem is the lack of a separate level of
knowledge and awareness among NGOs, and the lacks of mutual trust between the
government and NGOs.
During 2001,the "Slovenian government adopted a regulation providing for a better
structuring of its dialogue with the associations, most notably the establishment of the
Commission for cooperation with civil society organizations, horizontal body of
government composed of government officials from various ministries and activities that
would gradually create a common government strategy for the development of civil
society" (Vidačevak,2001, p.244). Specifically decision was made on the establishment of
more formal forms of cooperation with NGOs. Another example is Poland, by whose
establishment of the Office for European Integration launched a process of consultation
with NGOs and other civil society organizations. The process of consultation took place in
the partner groups, i.e. professional advisory bodies that participated in parallel with
working groups set up to draft negotiating positions for each of the chapters of the acquis.
The dialogue between the negotiating team and partner groups was significantly hampered
mainly because of language in EU documents, "intelligible only to a small circle of
employees in the administrative structures and the additional hurdle an inadequate
knowledge of foreign languages, because it was feasible to translate hundreds of pages of
documents for each EU meeting with the partner groups" (Vidačevak,2001, p.245). “These
obstacles have led to a gradual weakening of links with partner groups, and are in an
advanced stage of negotiations, dialogue with representatives of NGOs from consulting
into a briefing on the progress of negotiations."(Hausner and Marody, 2001). Challenges
faced by Slovenian and Polish governmental and non-governmental sector are largely
paradigmatic for the other countries of Central and Eastern Europe.
One of the preconditions for a constructive dialogue with the government is certainly
organization and coordination. This problem was tried to be resolved in few candidate

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countries by establishing the center, forums and networks that should facilitate the
consultation process. To facilitate the process of counseling the candidate countries the
NGO Centre of Slovenia (CNVOS), the National Forum of Hungarian NGOs called Civil
Europe - Civil Hungary and the Polish Forum of Non-Governmental Initiatives (FIP) were
founded. In Slovenia CNVOS 2002 was involved in policy and decision-making which
resulted with creation of Resolution on normative activities in 2009 by the government,
which guarantees a minimum standard of advice when it comes to the public and legal
basis for the inclusion of NGOs as partners. "One of the great successes of the Polish NGO
Forum initiative, which has served as an incentive to NGOs in other candidate countries is
the establishment of the Polish NGO Office in Brussels," the organizational and technical
support to organization European Citizens Action Service (ECAS) and the Charities Aid
Foundation (CAF)."xi
The primary objective of the Office is to establish contacts with the European institutions,
the work of sectorial networks and platforms of NGOs at the EU level, participation in
seminars, the possibilities of EU financial assistance and regular information on the work
of the European institutions. "Notwithstanding any effort by the EU to invest in supporting
the development of civil society in the candidate countries, in most of these countries are
characterized by a high degree of confidence in the relationship of governmental and nongovernment sectors."(ESC, 1999) Main reason for this is the fact that the civil society in
the countries of Central and Eastern Europe is considered as an opposition idea. Therefore,
"the culture of consultation and dialogue as the basic democratic process is not
continuously rooted in the tradition of these countries." (Rosenblum and Post, 2002). As
cause of mistrust a technical nature of the negotiations and adjustments Union is
considered.
The neglection of dialogue with citizens and a large emphasis on the normative and
technical aspects of the adoption of the acquis, including major "causes of the poor
population support the candidate, accession to the EU."xii When it comes to the Western
Balkan countries, which are currently undergoing various processes of democratization and
reforms when it comes to EU membership. Many strategic reforms were undertaken in
each of the Western Balkan countries and adoption of laws and policies to improve the
state of the sector and the participation of NGOs in the process of participation in decisionmaking were established.
Conclusion
Civil society involvement in EU governance can improve democratic representation and
also provide citizens with better means for affecting EU policy. Importance of involvement
of civil society can also increase political inequality. Civil society participation in EU
governance should not be seen as alternative, rather as a compliment, because by
participation of civil society EU legitimacy crises can be reduced. It is more than obvious
that national governances and regional authorities are not yet prepared to include civil
society organizations into decision-making process and policy implementation. Opinions
expressed are often not taken into account in European decisions, because groups have
only access to the Commission and barely to the Council and the Parliament, which take
the decisions. Still there are many restrictions to political participation in the institutional
structure of the EU, but also there are more thing that are needed to be done, for example
make political participation more representative, more democratically legitimized and
more effective.

13

�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

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i

European Citizen Action Service (ECAS) was founded in 1991 as an international non-profit organization
which is independent of political parties, commercial interests and the EU institutions. ECAS mission is to
enable organizations and individuals to make their voice heard in the EU, providing advice on how to lobby
and defend the rights of European citizens.
ii
This assertion has been relied by many authors OSNV research by Professor Lester Solomon to the cause of
the 22 countries comparing GDP realized in the framework of civil society in the 22 states with the social
production of certain states. In this study produced the data that the nonprofit sector in the 22 countries
employing more people than jobs than some industries. Also this research has shown that depending on the
democratic tradition there is a significant difference in the structure of the CD in some countries. The results

15

�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

of this researching show very high importance that nonprofit sector has not only on the level of development
of democratic and pluralistic values of a society, but also the degree of social cohesion, employment and
economic development.
iii
Opinion on 'The role and contribution of civil society organizations in the building of Europe' CES
851/1999 Detailed information available at: http://www.eesc.europa.eu/resources/docs/ces8511999_ac_en.pdf
iv
Commission of the European Communities, 1997.Communication: Promoting the role of voluntary
organizations and foundations in Europe. Brussels, COM (97) 241 final; 6.6.1997.
v
Commission of the European Communities, 2000.Discussion Paper: European Commission and Non
Governmental Organizations: Building a Stronger Partnership. Brussels, COM (2000) 11 final, 18.1.2000.
vi
White Paper defines the principles and guidelines for the strengthening of relations with the European
institutions, non-governmental organizations, as well as the active involvement of NGOs in the process of
formulating and implementing policy. Following the White Paper was followed by several attempts to define
a framework for dialogue, though they have not set up a structural framework, coherent and all encompassing
dialogue, and therefore do not define the framework for counseling than just key principles to guide the
process.
vii
More information on: http://europe.eu.int/yourvoice
viii
This database Contains information about the system and working methods of the Advisory Forum and
other bodies through which the Commission shall consult with NGOs and civil society organizations in a
formal and structured manner, as well as a directory of such organizations at the EU level.
ix
It should be noted that the Economic and Social Committee proposed a set of criteria that European NGOs if
they want to become active participants in policy dialogue at EU level. These are permanently at the EU
level; enabling direct access to the expertise of its members as a precondition for constructive consultation;
representation of general interest that are consistent with the interests of European society, active member
organizations in most EU Member States; responsibility to the membership; authority to represent and act on
European level; independence and detachment instructions from external bodies; transparency of financing
and decision-making structure (ECS, CES 357/2002).
x
Detailed information on page of the Slovenian Government, available at: www.gov.si/svez/uk/mainmenu
xi
Detailed information available at: www.eu.ngo.pl and www.ecas.org
xii
Latest Euro barometer survey on the attitudes of public opinion in the candidate countries for EU
membership shows that in half of these countries support for the EU is lower than 50% (from 33% in Latvia
to 46% in the Czech Republic). For more complete information see: European Commission - Euro barometer,
2002

16

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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

Budget Deficits and Democracy: The Case of Turkey
Hakan Hotunluoğlu
University of Adnan Menderes, Nazilli, Turkey
hakanhotunlu@gmail.com
Recep Tekeli
University of Adnan Menderes, Nazilli, Turkey
rtekeli@adu.edu.tr
There is a vast body of literature on the political economy of budget
deficits. These studies used different models to explain the political
motivations behind budget deficits. There are some studies to explain
the budget deficit in developed countries and assume that budget
deficit is an expected outcome of fiscal policy in democratic countries.
However, the studies have come to conclusion before analyzing
whether the democracy affects budget deficit or not. To our
knowledge there have not been many studies to explain whether the
level of a country’s democracy affects budget deficits or not. In this
paper, we will show a country’s level of democracy has a positive effect
on budget deficit using a single country: Turkey. This research based on
a time series analysis covering 35 years between 1975 and 2010 by
using VAR (Vector Autoregressive) method. Our results suggest that
Turkey’s level of democracy has indeed effects on budget deficits. We
also find evidence that before the local election is held governments
uses expansionary fiscal policies in order to increase the reelection
probabilities.
Keywords: Budget Deficits, Democracy, Political Budget Deficit.
JEL classification: D72; H61; H63

141

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                <text>HOTONLUOGLU, Hakan
TEKELI, Recep</text>
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                <text>There is a vast body of literature on the political economy of budget  deficits. These studies used different models to explain the political  motivations behind budget deficits. There are some studies to explain  the budget deficit in developed countries and assume that budget  deficit is an expected outcome of fiscal policy in democratic countries.  However, the studies have come to conclusion before analyzing  whether the democracy affects budget deficit or not. To our  knowledge there have not been many studies to explain whether the  level of a country’s democracy affects budget deficits or not. In this  paper, we will show a country’s level of democracy has a positive effect  on budget deficit using a single country: Turkey. This research based on  a time series analysis covering 35 years between 1975 and 2010 by  using VAR (Vector Autoregressive) method. Our results suggest that  Turkey’s level of democracy has indeed effects on budget deficits. We  also find evidence that before the local election is held governments  uses expansionary fiscal policies in order to increase the reelection  probabilities.  Keywords: Budget Deficits, Democracy, Political Budget Deficit.  JEL classification: D72; H61; H63</text>
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