160 10 3494 https://omeka.ibu.edu.ba/files/original/9b911e90db144c13056ae52fa6ff6160.pdf e209093da86930f584b0c991386eec4f PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo A Different Banking Methods and the Developing in the Turkish Finance Market-Turkish Participation Banking For 2007-2012 Ferhat Sayım Yalova University, Yalova, Turkey f_sayim@hotmail.com Financial systems and institutions has become the most important reason in the fragility of world economic system. The formation and development process of the financial structure also constitutes the infrastructure of the world economic system. The course of the financial system and development has led to debate with the financial crisis in 2008-2011. One of the discussion topics in order to eliminate problems caused by the conventional banking system is alternative financing systems. In Turkey, the corporations based on profit share system which are named participation based banking spotlight, if the alternative banking systems are considered. These banks which determine different principles in the risk distribution of the portfolio acquired are analyzed more nowadays. Participation based banks are placed in almost every regulation related to banking terms and get their legal infrastructure more stable in the banking legislation of Turkey. This study is a 2007-2012 part of research series. We try to find out the place and the importance of participation based banking with the various sub-headings especially in Turkey. We examine the comparative review 2007-2012 data of participation banks which Collected Turkish Currency and Foreign Currency Funds, Bank Loan Funds, Total Assets, Equity and Net Profit figures for the four participation banks in Turkey. We are comparing the total figures with deposit banks for the same period. One of our primary goals in this essay, to study in the framework of the alternatives of the financial institutions and options. These options could be asserted as a vibrant and viable well established choice as a nonwestern model- different from the classical western interest based dominant banking system in the globe. Moreover, that participation banking systems’ grow and increase with its resourceful bulk of transactions and shares within the financial market. In addition, we intended to delineate the basic functioning structures, rules, norms, principles, procedures, operations of that alternate banking system in the financial market. 119 �International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo After that, we have applied as a descriptive, explanatory, discursive and comparative analytic methodology to expound the matter in detail. Having gathered literature reviews then we have concentrated on Turkey as a model state in that banking system practice; at which, what kind of instruments and tools used by referring basic indicators, data and information related to the growth, flourish and share of that sector within the total banking and financial system in Turkey. Furthermore, that participation banking system positions, researched in the country. Thus, it is explicated more concerns on by investigating its credits, deposits, financing formulation systems and commitments with the banks, customers and investors of the alternate banking system in the country’s financial order. At last, we have attempted to clarify and summarize the concepts, definitions, expositions, demonstrations, rules, assets, liabilities, equities etc.. by giving special cultural internalizations about the organizational and operational activities of the participation banks both similarities and discrepancies, too; so as to draw the attentions of the new researchers and studies in that situation. Keywords: Bank, Finance Market, Finance Sector, Participation Bank, Islamic Bank, Interest Free Banking, Alternative Banking System. 120 � https://omeka.ibu.edu.ba/files/original/b676294e26a04ac1e9317b2fbc288b39.docx 05d60e3bbc9beb874f2f542c4134b3b2 https://omeka.ibu.edu.ba/files/original/97fcc661c7b6f2190adf5e438534a8d6.pdf 68e1cb931c338c1fd1d9b708cadcefc3 PDF Text Text International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo A Different Banking Methods and the Developing in the Turkish Finance Market-Turkish Participation Banking for 2007-2012 FerhatSayım Yalova University, Yalova, Turkey f_sayim@hotmail.com Abstract Financial systems and institutions has become the most important reason in the fragility of world economic system. The formation and development process of the financial structure also constitutes the infrastructure of the world economic system. The course of the financial system and development has led to debate with the financial crisis in 2008-2011. One of the discussion topics in order to eliminate problems caused by the conventional banking system is alternative financing systems. In Turkey, the corporations based on profit share system which are named participation based banking spotlight, if the alternative banking systems are considered. These banks which determine different principles in the risk distribution of the portfolio acquired are analyzed more nowadays. Participation based banks are placed in almost every regulation related to banking terms and get their legal infrastructure more stable in the banking legislation of Turkey. This study is a 2007-2012 part of research series. We try to find out the place and the importance of participation based banking with the various sub-headings especially in Turkey. We examine the comparative review 2007-2012 data of participation banks which Collected Turkish Currency and Foreign Currency Funds, Bank Loan Funds, Total Assets, Equity and Net Profit figures for the four participation banks in Turkey. We are comparing the total figures with deposit banks for the same period. One of our primary goals in this essay, to study in the framework of the alternatives of the financial institutions and options. These options could be asserted as a vibrant and viable well established choice as a non-western model- different from the classical western interest based dominant banking system in the globe. Moreover, that participation banking systems’ grow and increase with its resourceful bulk of transactions and shares within the financial market. In addition, we intended to delineate the basic functioning structures, rules, norms, principles, procedures, operations of that alternate banking system in the financial market. After that, we have applied as a descriptive, explanatory, discursive and comparative analytic methodology to expound the matter in detail. Having gathered literature reviews then we have concentrated on Turkey as a model state in that banking system practice; at which, what kind of instruments and tools used by referring basic indicators, data and information related to the growth, flourish and share of that sector within the total banking and financial system in Turkey. Furthermore, that participation banking system positions, researched in the country. Thus, it is explicated more concerns on by investigating its credits, deposits, financing formulation systems and commitments with the banks, customers and investors of the alternate banking system in the country’s financial order. At last, we have attempted to clarify and summarize the concepts, definitions, expositions, demonstrations, rules, assets, liabilities, equities etc.. by giving special cultural 1 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo internalizations about the organizational and operational activities of the participation banks both similarities and discrepancies, too; so as to draw the attentions of the new researchers and studies in that situation. Keywords: Bank, Finance Market, Finance Sector, Participation Bank, Islamic Bank, Interest Free Banking, Alternative Banking System Introduction With their former name Private Finance Institutions, or with the new one, Participation Banks have no authority to collect deposits but receive fund through special current accounts or profit and loss participation accounts, and utilize fund through methods such as production support, community of profit and loss, financial leasing, buying and selling documents against payment. Even if these institutions are having been allowed in Turkey since 1984, they have been limited in terms of both quantity and scale (Central Bank of Republic of Turkey, 2005). The constitution of the legal base for interest free banking in our country is dated as the end of the year 1983. With the decree dated 16.12.1983 and numbered 83/7506, the foundation of Private Finance Institutions is laid. Participation Banks are banks operating in financial sector, financing real economy and offering banking service. Participation banks collect funds from saving owners, use them in industrial and trade sectors according to the interest free financing principles and shares the profit or loss with saving owners. The word “participation” in their name expresses that this type of banking is based on the principle of participation to profit and loss (The Participation Banks Association of Turkey-FAQ, 2010). Participation banks serve as a means of transformation of saving to capital. Proportional to their advantage of working with a greater number of branches, they also give standard banking services such as investment consulting, safe deposit box, money transfer service, giving check book, mediating cash proceeds etc (Battal, 2007, p. 57). Today, variety of such services given by participation banks is equal or similar to the standards of other banks. Now, in this article, we are going to elaborate as the unit of analysis, the Participation Banks, new financial instruments. In the middle of the first quarter of 21th century, there has been occurred a World Financial Crises. In fact, that crises mainly influenced the capitals of the financial center in the West. For those countries which heavily affected by this financial crises, forced them look for new financial instruments and systems. For that reason, it leaded to the quest for alternative models, opportunities or proposals. The fiscal and financial crises, especially in the European Union Member States, it may be due to of the rigidity of Maastricht Euro criteria, is deepening and deteriorates further. So we think that it proves the need for searching new sort of financial innovations, techniques and tools. It is also our modest propositions that might be recorded some theoretical and practical contributions and amendments to overcome these current troublesome critical financial problematic. One of our primary goals in this essay, to study in the framework of the alternatives of the financial institutions and options. These options could be asserted as a vibrant and viable well established choice as a non-western model- different from the classical western interest based dominant banking system in the globe. Moreover, that participation banking systems’ growth, advancement and increase with its resourceful bulk of transactions and 2 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo shares within the financial market. In addition, we intended to delineate the basic functioning structures, rules, norms, principles, procedures, operations of the Alternate banking system in the financial market. After that, we have applied as a descriptive, explanatory, discursive and comparative analytic methodology to expound the matter in detail. Having gathered literature reviews then we have concentrated on Turkey as a model state in that banking system practice; at which, what kind of instruments and tools used by referring basic indicators, data and information related to the growth, flourish and share of that sector within the total banking and financial system in Turkey. Furthermore, that participation banking system positions has been researched in the country. Thus, it has been explicated more concerns on how it can be investigated by mentioning its credits, deposits, financing formulation systems and commitments with the banks, customers and investors of the alternate banking system in the country’s financial order. At last, we have attempted to clarify and summarize the concepts, definitions, expositions, demonstrations, rules, assets, liabilities, equities etc.. by giving special cultural internalizations about the organizational and operational activities of the participation banks both similarities and discrepancies, too; so as to draw the attentions of the new researchers and studies in that situation. I. Participation Banking in the Literature Banking methods defined in this system called “Islamic Banking” in the international literature are methods such as various kinds of project partnership and others based on prohibition of interest (Moles &Tery, 1999, p. 304). Islamic banks in general referred to the three types of. (1)Development banks, (2) Islamic banks in special purpose, (3) Islamic Commercial Banks. Participation banks may categorize in Islamic Commercial Banks groups (Canbaş&Doğukanlı, 2007, p. 237). Islamic bank works as a trading concern and financial intermediary to perform interest-free activities purely according to principles of Sharia’h. It is a welfare organization that promotes business and trade activities by pooling the financial resources for the sake of profit and loss for mutual benefit (Ahmad, Humayoun, & Hassan, 2010, p. 8). Participation or Islamic banks are not institutions peculiar to Turkey. All around the world, especially in Muslim countries, there are many financial bodies operating according to a similar system. Even if the system consisting of such kind of institutions operating on the basis of partnership of profit and loss is known as “interest free banking” or “Islamic banking” in the world, it is taken first as “special finance house”, and then as “participation banking” in the Turkish regulations. The first modern experiment with Islamic banking can be traced to the establishment of the MitGhamr Savings Bank in Egypt in 1963. During the past four decades, however, Islamic banking has grown rapidly in terms of size and the number of players. Islamic banking is currently practiced in more than 50 countries worldwide. In Iran, Pakistan, and Sudan, only Islamic banking is allowed. In other countries, such as Bangladesh, Egypt, Indonesia, Jordan and Malaysia, Islamic banking co-exists with conventional banking. Islamic banking, moreover, is not limited to Islamic countries (Chong & Liu, 2009, s. 125-126). But, when we look at the books of financial institutions generally we can’t see these institutions among the financial institutions (Rose & Marquis, 2009). (Burton, Nasiba, & Brown, 2009) (Mishkin& Eakins, 2009) On the other hand Islamic banks’ ability to withstand the global downturn has fuelled an expansion of Islamic finance around the 3 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo world. Islamic banks have learned that customer loyalty and brand loyalty must be earned (Omar & Ali, 2010, p. 25). The Islamic banking and finance systems in West will continue to grow in areas like Sukuk, Takaful, hedging funds, mutual funds, equity & asset management, corporate finance, wealth and asset management. These high street banks are far more accessible and popular, and all offer similar services. The main reason for the struggle is that, the Islamic bank is introducing an entirely new banking model into a country that has been built around an existing banking system that has been around for a long time (Malik & Malik, 2011, p. 184). Related Legal Regulations in Turkey Generally six types of regulations seek to enhance the net social benefits of commercial banks services to the economy(1)safety and soundness regulation, (2)monetary policy regulation, (3)credit allocation regulation, (4)consumer protection regulation, (5)investor protection regulation and (6) entry and chartering regulation (Saunders & Cornett, Financial Markets and Institutions, 2004, p. 379). We will deal with some of these regulations in this study for Turkey. Deposit banks, participation banks, development and investment banks, branches of foreign banks, financial holding firms in Turkey, The Banks Association of Turkey (BAT – TürkiyeBankalarBirliği), The Participation Banks Association of Turkey (PBAT – TürkiyeKatılımBankalarıBirliği), Banking Regulation and Supervision Agency (BRSA – BankacılıkDüzenlemeveDenetlemeKurumu-BDDK), Savings Insurance Deposit Fund (SIDF – TasarrufMevduatıSigortaFonu-TMSF) and their activities are regulated by the mentioned Banking Act. With the condition that the provisions of the related law are also valid for the banks founded according to special acts, the provisions of the Banking Act are applied. In case of absence of related provisions in the special act, general provisions are applied (Banking Act no. 5411, article 2). Participation banks are supervised by Banking Regulation and Supervision Agency (BRSA). In 2004, the Uniform Chart of Account was formed for participation banks, and these institutions began bookkeeping as other banks, in accordance with the mentioned chart of account (Central Bank of Republic of Turkey, 2005). Definitions Regarding Participation Banks in the Banking Act In the 3rd article of the Banking Act no. 5411, there are important definitions showing differences and similarities between participation banks and other banks. According to these definitions, both deposit banks and participation banks consist two lower members of the higher definition of “Loan Institution”. There are also two banks associations defined in the Banking Act, one of which is the Participation Banks Association of Turkey, and other is the Banks Association of Turkey with a more widespread structuring. The definition of “bank” in the Banking Act includes 3 types of banks. These are: Deposit bank: Institutions operating mainly by accepting deposit and utilizing loan in accordance with the Act in the name and account of itself, and branches in Turkey of such foreign institutions, Participation bank: Institutions operating mainly by collecting funds through special current accounts and participation accounts and utilizing loan in accordance with the Act in the name and account of itself, and branches in Turkey of such foreign institutions, and Development and investment bank: Institutions operating mainly by utilizing loan rather than accepting deposit or participation funds, in accordance with the Act in the name and account of itself, and branches in Turkey of such foreign institutions. 4 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Permission for Foundation or Branch and Office Establishment (Subsidiary) in Turkey According to the 6th article of the Act no. 5411, the foundation of a bank in Turkey or the first branch establishment in Turkey of a foreign bank, is allowed with the condition that it is in accordance with the conditions proposed in the Act, and with decision taken through positive votes of at least 5 members of BRSA. Allowance applications and principles regarding to this allowance is determined by the regulations published by BRSA. Conditions of Foundation According to the 7th article of the Act, the main conditions for the foundation of a bank in Turkey are as follows: a) It has to be founded as an incorporated company, b) Stocks have to be issued in against cash reserve and all has be written in the title, c) Founders has to have the qualities defined in the Act, d) Board members has to have the qualities defined in the Act and to have professional experience in order to be able to realize planned operations, e) Proposed subjects of operation have to be in accordance with planned structure of finance, management and organization, f) Its issued capital free of every kind of collusion and in cash has to be at least 30 million New Turkish Lira, g) Its founding charter has to be in accordance with provisions of the Act. In addition, it has not so complex structure of organization and partnership which would prevent supervision, and plans regarding proposed operation objects and structures regarding internal organization have to be designed in a realist manner. Provisions Regarding Loans Participation banks are subject to strict provisions of the Banking Act regarding loan and loan limitations. At the end of the detailed definition of “loan” in the 48th article, in the second paragraph, fund utilization styles peculiar to participation banks are mentioned to be seen as loan in the implementation of the Act: (…) funding obtained by participation banks through payments of prices of movable and immovable possessions and services, or through methods such as profit and loss partnership investments; supply of immovable, equipment or commodity; or financial rent; funding of documents against payment, joint investments and so on are accepted as loan (…) Loan Limitations The quality of loans in the assets of the banks is very significant in terms of building banking system on a sound basis and operating with sound balance sheets. The motive behind the Banking Act and regulations made by BRSA is the prevention of these bank owners utilizes collected funds in too risky operation fields or in their own group companies with disregard of objective evaluation. In order to achieve this goal, the Banking Act puts some limitations on the distribution of loans and proposes severe penal sanctions in case of violation. These limitations are valid also for participation banks. These are shown below in general terms. Total loans utilized by a natural entity or a legal entity or by a risk group cannot exceed 25 % of equities. (There are some exceptional cases in which different rates are implicated.)… Loans given to an ordinary partnership are assumed to be given to partners proportional to their responsibilities. 5 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Loans utilized by all partners registered in the stock register holding 1 % or more of the bansk’s capital and entities consisting risk group with them cannot exceed 50 % of equities. Loans utilized by partnerships controlled jointly are assumed to be utilized by the risk group which includes every shareholder controlling the partnership jointly proportional to the rate of its share within the partnership capital to the total share controlled jointly. Loans utilized by a natural entity or a legal entity or by a risk group and equaling or exceeding 10 % of equities are assumed to be “great loan”. Total great loans cannot exceed 8-multiple of the equities. (…) When elements of the same risk group risk is included in the assurance of a risk group’s loans, topics such as how calculations will be made and how assurance elements with guarantee of country’s central government are mentioned in the Act (Banking Act no. 5411, article 54). Operations without Loan Limitations Furthermore, the 55th article mentions operations which are outside of loan limitations. Ones of these which are thought to be related to participation banks are listed below. BRSA can made additions to these operation types. a) Operations paid in cash, values and accounts similar to cash, and precious metals. b) In case of allocation of a new loan to the same entity or same risk group, with the condition of that loans given before in foreign currency or in unit of foreign currency are considered in current exchange rate as of the date when the following loan begins to be utilized, with the exception of use of check book or credit card, increases of loans stemming from change of exchange rate, and interest, profit share and other elements settled to overdue loans. c) Partnership shares obtained free because of every kind of capital increases and value increases of partnership shares which does not require any fund going out. d) Operations between banks according to the principles determined by the Council. e) Partnership shares obtained in scope of undertaking of mediating public offer. f) Operations considered as discount value in the account of equity. Participation Banks Founded in Turkey Special finance houses adopted by Turkish society in short time showed a rapid improvement in terms of collected funds, volume of work and project capacities. These finance institutions are: AlbarakaTürk Special Finance Institution Inc.: The first finance institution of interest free banking in Turkey, AlbarakaTürk Participation Bank, finished its foundation in 1984, and began its operations as of the beginning of 1985. Its name is still AlbarakaTürk Participation Bank. (AlbarakaTürk – About Us, 2010) KuveytTürkEvkaf Finance Institution Inc.: KuveytTürk, founded in 1989 at the status of Special Finance Institution, changed its name in May 2006 as KuveytTürk Participation Bank Inc (The History of KuveytTürk, 2010). Anadolu Finance Institution Inc.: It began its operations in 1991 in Ankara. It is founded with domestic capital. Faisal Finance Institution Inc.: Founded in 1985. In 2001, Faisal Finance Institution Inc. It has been taken over by ÜlkerGroup, its trade name was changed to Family Finance Institution Inc. In 2005, Anadolu Finance Institution Inc. and Family Finance Institution Inc. merged under the name of Türkiye Finance Participation Bank Inc. İhlas Finance Institution Inc: Founded in 1995. As a result of the 2001 economic crisis, it went on bankrupt and its official authorization has been cancelled. That bank still has been 6 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo in liquidation, since 2001. We should underline the fact that the bankruptcy of this finance bank negatively influenced the other participation banks, too. Asya Finance Institution Inc: Founded in 1996. After the Act no. 5411 came into effect, its name has been changed to Bank Asya Participation Bank. After the Banking Act no. 5411 accepted on October 19, 2005 and published in the Official Journal on November 1, 2005, the name “Private Finance Institutions” has been changed to “Participation Banks”. And the name “Private Finance Institutions Association” has been changed to “Participation Banks Association of Turkey” which has also created their own insurance funds so as to prevent their depositors’ loss; because of any of its member’s probability of bankruptcy at which they could compensate similar to other banks. This insurance include some limits like deposit banks insurance. Participation banks operating today among the institutions mentioned above are AlbarakaTürk Participation Bank Inc., KuveytTürk Participation Bank Inc., Asya Participation Bank Inc. and TürkiyeFinans Participation Bank Inc. II. Methods of Fund Collection These organizations collect funds in the form of sharing accounts or current accounts to operate independently within each maturity group (Parasız, 2009, p. 251). Main items of liability side in the balance sheet of all firms consist of equity capital and loan capital. Equities are funds given by partners as capital or profit which is not distributed etc. These express resources belonging to the capital owners. However the share of equity item within the total capital is not so high in finance institutions and especially in banks in comparison to other businesses. It can be read as follows: An important part of resources of banks consist of loan capital. Because of the banking system is based on this. Bank or participation bank transforms funds collected from real or legal entities to loan. And the collected funds are naturally loan capital. Therefore, the growth of a bank depends on that it collects funds as much as possible in order to be able to give loan as much as possible. In deposit banks, fund collection is mostly realized through promise of interest. However participation banks cannot promise any future interest which would mean a predefined return. Participation banks collect funds mainly through three ways below. In addition to them, there are also investment accounts based on gold or precious metals. Current Account Current accounts are funds which belong to physical or legal entities, money in which can be withdrawn every time partly or totally, and which don’t pay any interest or profit to their holders. These accounts are similar to checking accounts in interest banks. Account holders open current account to be free of trouble to protect their money against theft, loss etc., and have opportunity to keep their money in a safe place. They also use services provided by their bank such as use of commercial check book, Money transfer, collection of check and bills. With the help of these accounts, services are provided such as payment and so on, parallel to needs of commercial and daily life. Therefore, these accounts which are mostly dynamic are not proper to bring return and to promise interest. However banks can use these capitals as equity capital after determining average amounts held in these accounts and keeping the needed reserves. 7 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Participation Accounts Participation accounts are funds of interest free banks which belong to physical or legal entities, money in which is deposited as Turkish Lira or foreign currency against contract of profit/loss participation account, and which result in profit/loss participation. Interest free banks pay amount of balance equivalent to unit account value to the account holder according to the state of profit/loss. Payees of interest free banks have no right to demand anything from funds accumulated in these funds (Akın, 1986, pp. 288-299). Returns remaining back from the funds deposited by participation account holders are distributed to account holders after deduction of losses stemming from returns obtained from funds utilized in pools constituted after certain criteria are handled such as their fixed terms and deposit date. When these returns are distributed, certain shares of these returns are hold by participation banks as management share. Special Fund Pools Participation Banks, according to the 60th article 7th paragraph of the Banking Act, can create special fund account pools for 3 or more months by collecting funds in private accounts in order to be utilized for financing planned projects or other investments, without the necessity of adhering time or types determined by the Central Bank of the Republic of Turkey. Participation accounts belonging to funds collected in this manner are operated in different accounts independent from other accounts and with different time. No transfer is allowed from the collected funds to other period groups. The related authority or institution has to be informed in 15 days after opening or closing dates, regarding special fund pools. At the end of the period of funding, special fund pools get closed**. III. Fund Utilization Methods Banking activity is mainly not a sector of trade of goods and service. This sector is a service sector. With its operations, it is a sector aiming to utilize fund surplus – collected from entities which have no opportunity or ability to use funds in their hands – for paving the way for operations based on commercial activities, and to take a share from the added value created. Therefore funds collected in order to create added value have surely to be used for production of goods and service. Otherwise, it is obvious that money etc. held in lockboxes would not increase where they stay, and not create added value. The most important difference of participation banks is that they prohibit for themselves certain methods of fund utilization and certain sectors used by other banks when utilizing collected funds. Fund Utilization Methods based on Commerce The main fund utilization methods of participation banks can be listed under two titles: The first of them is Fund Utilization Methods based on Commerce. Also deposit banks can use these types of financing. However there are some points in certain procedures such as handover of money which participation banks pay more attention. The important points here are that it has to be an operation necessarily based on trade of goods or service, and that payment to be made has to be delivered to the firm which sells the goods. **Published in OfficialJournalno. 26333. Banking BankacılıkDüzenlemeveDenetlemeKurumu (BDDK), article 7, 2006 8 Regulation and Supervision Agency (BRSA) / �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Private Funding Support Participation bank pays the price of goods or services – bought by real entities directly from sellers for personal needs such as vehicle and apartment – in the name of the customer to the seller, with the condition of not to be used in funding of commercial activities, and in return the buyer is charged with a debt (The Participation Banks Association of Turkey, 2008). Financial Rent In the operation which is called “leasing” today, the person who wants to buy a good demands that this good is bought by the participation bank and rent to this person after the agreement between this person and the participation bank. However it is decided the customer of the participation bank will be the owner of that good after a certain period of rent and of paying rents. In this way, the good with financial renting is used by the customer demanding financial renting, and is owned by the bank. At the end of rent period, the ownership is handed over. As investment banks, also participation banks can realize financial renting operations without founding a separate company. Murabaha: (Installment Sale) Murabaha used in banking is sale of goods with an order of sale in which payment is made some time after delivery of the goods transacted. A customer and a bank sign a precontract which proposes that the customer buys a good from the bank. After the contract, upon the customer’s written demand, the bank buys the mentioned good in cash from the seller, and sells it to its customer in accordance with the conditions agreed upon before (Akın, 1986, p. 159). So, participation bank mediates trade, buys the good from the seller in cash, and sells to its customer for the account. Fund Utilization through Profit and Loss Partnership Method Mudaraba: (Venture Capital) Mudaraba is a method of fund utilization used by interest free banks very commonly. One party gives its labor, know-how and experience (entrepreneur), and the other party gives capital (interest free bank). In this method, real and legal entities present their applicable projects to the bank. The manager accepted and funded by the bank is called “mudarib”, and the person or institution funding or supporting the project is called “Rabbul-mal”. After signing a contract with the mudarib, Rabbul-mal (interest free bank) has to keep ready the amount of capital mentioned in the contract, in accordance with mudarib’s demand. Other than conditions mentioned in the contract, bank has no authority to interfere in transactions realized by the project owner. However in case of emergence of danger of loss because of unplanned and irregular work, the bank can make some initiatives in order to prevent loss. Normally, it can control accounts every time, and demand all formal and informal bookings. Profit obtained at the end of mudaraba operation is shared among Rabbul-Mal guaranteeing funding and mudarib using fund according to the proportion determined before. In case of any loss, this loss is met by Rabbul-mal (Küçükkocaoğlu, 2010, p. 8). Muşareke: (Joint Capital Partnership or Capital Invesment) Muşareke is called “şirketu’l-İnan” in the Islamic Law. While One party, i.e. bank, gives capital, and the other party, i.e. real or legal body demanding fund, gives labor in the mudaraba contract, both of these two parties put forward both their labor and capital in muşareke contract. One or more of participants of partnership realize the work, and every partner included ones which does not take part in the work too deserves a certain right 9 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo according to the rate agreed before. Even if capitals are the same, profit shares can be different, or vice versa. The finance method called muşareke is applied in following manner: Islam Bank takes the responsibility to provide a part of the capital which is demanded by its customer as its partner. And the customer provides the rest of project capital due to its own financial opportunities and the qualification of the project. The customer takes the responsibility of management, control and monitoring of the financial aid because of its expertise. Taking these responsibilities, the customer deserves to take a bigger share of the profit (Küçükkocaoğlu, 2010, p. 10). SelemSale: (Current Sale of Future Delivery Goods or Future Markets and Sales) “Selem sale” means buying a good on account with another good bought or sold in cash. The bank buys a good by paying its price in cash which is going to be delivered to the bank in a future date agreed upon in the contract between the bank and the seller. A different style of selem sale, as in funding purchase of building, machinery and equipment, can be used also in purchase of consumer durables in case of that conditions are proper in terms of economy. In other words, this finance technique can be used in order to fund industry, trade and agriculture (Akın, 1986, p. 163). According to another definition, selem is the sale activity which is made with money in cash and goods on account. In selem, type, quality, amount, price, delivery place and date of the product have to be determined in the contract. With the help of selem, goods which will be produced in a future date are sold, and the needed money is obtained. On the other hand, customer buys a good which it will need in a future date. So, both parties meet their needs without using interest (Yılmaz, 2010, p. 14). For example, a farmer which needs money is supported by the bank in terms of capital, and the bank sells the yield in the market. Documents against Payment This type of fund utilization method is used for funding of foreign trade. According to the contract signed between participation bank and the party using fund, the participation banks buy documents against payment in cash, and sells to one using fund on account with a higher price. This type of finance technique is mainly based on the method of murabaha (forward sale) (Akın, 1986, p. 290). However, methods and documents used in foreign trade gain importance at that point. Documents are used in foreign trade especially in operations of documented credit. They are documents which assure importer’s custom clearance of goods sent by exporter. Therefore, these documents which make possible that goods entering in customs in the country of exporter are delivered by customs authorities are undertake the ownership of goods as documents with status of valuable papers. It means that a participation bank buys goods abroad in the name of its customer who gave him order, and sells them to its customer. IV. Personnel and Branch Structure of Participation Banks Growth of Branch Numbers As of the end of 2012, the number of deposit banks founded in Turkey is 32. While 3 of them are based on public capital, 12 of them are based on domestic private capital, and 16 of them are based on foreign private capital, 1 of them belongs to SIDF. Additionally, there are 13 development and investment banks founded in Turkey. When we take also 4 participation banks into consideration, it is seen that the number of banks in Turkey reaches to 49. 10 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo The number of branches of deposit banks was 7.570 in 2007, and reached to 10.234 with an increase of 35, 2 % as of the end of 2012. The number of branches of participation banks was 422 in 2007, and reached to 828 with an increase of 96, 2 % as of the end of 2012. 3 public banks and 1 SIDF bank excluded, each of 28 private deposit banks has average 254 branches, and each of 4 participation banks has average 207 branches. Looking at the growth rates of the number of their branches from 2007 to 2012, it is seen that the growth rate of branches of participation banks is almost three times more than deposit banks. The table below shows the position of participation banks within themselves. Table 1 Growth of Branch Numbers, 2007-2012 END OF YEAR ALBARAKA TÜRK BANK ASYA KUVEYT TÜRK TÜRKİYE FİNANS TOTAL SUM Average 2007-2012 2012 2011 2010 2009 2008 2007 108 137 123 109 101 100 80 174 250 200 175 158 143 118 144 221 180 141 121 113 87 179 220 182 182 180 174 137 605 828 685 607 560 530 422 Table 1/b Increase Rate from Previous Year at Branch Numbers, 2007-2012 END OF YEAR ALBARAKA TÜRK 14% BANK ASYA 19% KUVEYT TÜRK 19% TÜRKİYE FİNANS 11% Increase Rate From Prev.Year Total Sum 15% Average 20072012 2012 11% 25% 23% 21% 21% 2011 13% 14% 28% 0% 13% 2010 8% 11% 17% 1% 8% 2009 1% 10% 7% 3% 6% 2008 25% 21% 30% 27% 26% 2007 27% 30% 10% 12% 19% Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank Association of Turkey, 2012-13) (PBAT, The Participation Banks Association of Turkey, 2012-13). Growth of Personnel Number As of the end of 2012, totally, 201.454 employees are employed in the banking sector in Turkey. Personnel number of deposit banks was 153.212 in 2007, and reached to 181.197 with an increase of 18,3 % as of the end of 2012. The number of personnel of participation banks was 9.215 in 2007, and reached to 15.356 with an increase of 66,4 % as of the end of 2012. Looking at the growth rates of the number of their personnel from 2007 to 2012, it is seen that the growth rate of personnel of participation banks is almost four times more than deposit banks 11 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Table 2Employments in the Banking Sector, 2007-2012 2007 2008 2009 2010 2011 2012 Participation Banks 15.356 9.215 11.032 11.802 12.703 13.857 Deposit banks 153.212 166.325 167.063 173.133 176.576 181.197 >Public banks 41.056 43.333 44.856 47.235 50.239 51.587 >Private banks 75.124 82.158 82.270 83.633 89.047 90.612 >Fund banks 325 267 261 252 243 226 >Foreign banks 36.707 40.567 39.676 42.013 37.047 38.772 Development and investment 5.322 4.901 5.273 5.339 5.370 4.842 banks Total 172.391 182.630 184.204 191.206 195.275 201.454 Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank Association of Turkey, 201213) (PBAT, The Participation Banks Association of Turkey, 2012-13). As of the end of 2012 (December 2012), the average personnel number for branch in participation banks is as follows: Bank AlbarakaTürk Bank Asya KuveytTürk TürkiyeFinans Total Sum Deposit Banks Total Personnel No./Branch No. 2012(2.758/137) 2012(5.064/250) 2012(3.939/221) 2012(3.595/220) 2012(15.356/828) 2012(181.197/10.192) Average Personnel No. Average Personnel for Branch 2011 No. for Branch 2012 21,1 20,1 22,7 20,3 18,5 17,8 18,6 16,3 20,2 18,5 18,0 17,8 Actually, Bank Asya Participation Bank has the biggest personnel number and average personnel number. Apart from Bank Asya, Albaraka’s average is high. In deposit banks, average personnel number reached by dividing the total personnel number to the branch number is 18 in the end of 2011. The same average is 20,2 in participation banks. This means that participation banks employ 12 % more employees for branch than deposit banks for 2011. But both of them is equal almost in the end of 2012. The average personal decreased in the end 2012 for participation banks. Rapidly increase in the brunch number seems the cause of the decrease for average brunch personnel number. Table 3/a Growth of Personnel Number (Participation Banks), 2007-2012 End of year Albaraka Turk Bank Asya Kuveyt Turk Türkiye finance Total sum Average 2007-2012 2.124 4.181 2.767 3.254 12.326 2012 2.758 5.064 3.939 3.595 15.356 2011 2.601 4.548 3.326 3.382 13.857 2010 2.175 4.266 2.850 3.403 12.694 2009 1.935 4.074 2.447 3.346 11.802 2008 1.796 3.806 2.245 3.185 11.032 2007 1.481 3.329 1.794 2.611 9.215 Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank Association of Turkey, 2012-13) (PBAT, The Participation Banks Association of Turkey, 2012-13). 12 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Table 3/b Increase Rate from Previous Year at Personnel Number (Participation Banks), 2007-2012 End of year Albaraka Turk Bank Asya KuveytTurk Türkiyefinance Average20072012 2012 2011 2010 2009 2008 2007 16% 14% 19% 9% Increase rate from prev.yeartotal sum 14% 6% 20% 12% 8% 21% 28% 11% 7% 5% 7% 14% 40% 18% 17% 16% 9% 25% 29% 6% -1% 2% 5% 22% 19% 11% 9% 8% 7% 20% 30% V. Evaluation of Sectorial Quantitative Data Turkish Currency Funds Participation banks showed a quite better performance as of the end of 2012 compared to 2007 in funds of Turkish currency. As of the end of 2012, deposits of Turkish currency reached to approximately 29 billion Turkish Lira after an increase of 265 %.Among participation banks, Bank Asya has the biggest fund of Turkish currency. But highest average grown rate owner is Kuveyt Turk. The second high performance belongs to the AlbarakaTürk. Table 4 Collected Turkish Currency Funds in Participation Banks, 2007-2012 (1000TL) END YEAR OF ALBARAKA TÜRK Average 2007-2012 2012 2011 2010 2009 2008 2007 BANK ASYA KUVEYT TÜRKİYE TÜRK FİNANS TOTAL SUM 3.586.632 6.143.803 3.819.808 4.980.901 18.531.143 5.535.572 4.797.751 4.358.934 3.290.809 2.029.617 1.507.109 6.768.530 5.215.357 4.496.126 2.987.415 2.111.414 1.340.003 7.444.772 6.233.354 5.712.662 4.660.035 3.300.252 2.534.330 9.241.391 7.813.463 7.662.288 5.979.825 3.603.487 2.562.363 28.990.265 24.059.925 22.230.010 16.918.084 11.044.770 7.943.805 Table 4/b Increase Rate from Previous Year at Collected Turkish Currency Funds in Participation Banks, 2007-2012 (1000TL) END OF YEAR ALBARAKA TÜRK BANK ASYA KUVEYT TÜRK TÜRKİYE FİNANS Increase Rate From Prev.Year Total Sum 34% Average 200736% 35% 41% 28% 2012 2012 15% 18% 30% 19% 20% 2011 10% 2% 16% 9% 8% 2010 32% 28% 51% 23% 31% 2009 62% 66% 41% 41% 53% 2008 35% 41% 58% 30% 39% 2007 60% 56% 48% 44% 51% Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank Association of Turkey, 2012-13) (PBAT, The Participation Banks Association of Turkey, 2012-13). 13 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Foreign Currency Funds, 2007-2012 Table 5/aForeign Currency Funds, 2007-2012 (1.000TL) END OF YEAR Average 2007-2012 2012 2011 2010 2009 2008 2007 ALBARAKA TÜRK 2.513.238 3.689.446 3.246.996 2.522.656 2.173.836 1.955.493 1.490.999 BANK ASYA 3.686.636 6.500.467 4.583.580 3.504.294 3.156.753 2.239.334 2.135.387 KUVEYT TÜRK 3.248.656 5.986.513 4.702.970 2.885.347 2.370.842 1.957.958 1.588.305 TÜRKİYE FİNANS 2.660.856 3.984.764 3.275.811 2.685.234 2.222.455 2.012.296 1.784.575 TOTAL SUM 12.109.385 20.161.190 15.809.357 11.597.531 9.923.886 8.165.081 6.999.266 Table 5/b Increase Rate from Previous Year at Foreign Currency Funds, 2007-2012 (1.000TL) END OF YEAR ALBARAKA TÜRK 21% BANK ASYA 28% KUVEYT TÜRK 28% TÜRKİYE FİNANS 15% Increase Rate From Prev.Year Total Sum 23% Average 20072012 2012 14% 42% 27% 22% 28% 2011 29% 31% 63% 22% 36% 2010 16% 11% 22% 21% 17% 2009 11% 41% 21% 10% 22% 2008 31% 5% 23% 13% 17% 2007 23% 37% 9% 2% 17% Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank Association of Turkey, 2012-13) (PBAT, The Participation Banks Association of Turkey, 2012-13). The case in foreign currency funds is some different. Among participation banks, Bank Asya has the biggest fund and the highest increase of performance of foreign currency in 2012. KuveytTürk and Bank Asya have the highest average growing rate in the foreign funds. The second participant bank is KuveytTürk. As of the end of 2012, Foreign currency deposits of participation banks reached to approximately 20 billion Turkish Liras after an increase of 188 % compared to the end of 2007. Total Funds Collected, 2007-2012 Bank Asya is the leading participation bank with an amount of 15.7 billion Turkish Lira; In terms of total funds collected as the end of 2012. KuveytTürk, TürkiyeFinans and AlbarakaTürk follow Bank Asya respectively. As of the end of 2012, total funds collected by participation banks reached to approximately 49 billion Turkish Lira, after an increase of 229 % compared to the end of 2007. Figures of deposit banks and participation banks are shown below which facilitates to make a comparative analysis between them. Table 6 Total Funds Collected, 2007-2012 (1000TL) END OF YEAR Average 2007-2012 2012 2011 2010 2009 2008 2007 ALBARAKA TÜRK 6.099.870 9.225.018 8.044.747 6.881.590 5.464.645 3.985.110 2.998.108 BANK ASYA 9.830.439 15.741.858 12.397.043 11.166.582 9.136.578 5.842.821 4.697.750 14 KUVEYT TÜRK 7.068.463 12.755.043 9.918.327 7.381.473 5.358.257 4.069.372 2.928.308 TÜRKİYE FİNANS 7.641.757 11.429.536 9.509.165 8.397.896 6.882.490 5.312.548 4.318.905 TOTAL SUM 30.640.528 49.151.455 39.869.282 33.827.541 26.841.970 19.209.851 14.943.071 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Table 6/b Increase Rate from Previous Year at Total Funds Collected, 2007-2011 (1000TL) ALBARAKA BANK KUVEYT TÜRKİYE Increase Rate From TÜRK ASYA TÜRK FİNANS Prev.Year Total Sum Average 2007-2012 28% 31% 33% 22% 28% 2012 15% 27% 29% 20% 23% 2011 17% 11% 34% 13% 18% 2010 26% 22% 38% 22% 26% 2009 37% 56% 32% 30% 40% 2008 33% 24% 39% 23% 29% 2007 39% 47% 24% 23% 33% Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank Association of Turkey, 2012-13) (PBAT, The Participation Banks Association of Turkey, 2012-13). END OF YEAR Among participation banks, KuveytTürk has the highest increase rate for total funds in 2012, 2011 and 2010. The second bank is Bank Asya in the same 2012. KuveytTürk also has the highest average growing rate in the foreign funds with Bank Asya. The second participant bank is Bank Asya in the average rates. Table 7 Fund Distributions of Participation and Deposit Banks, 2007-2012 (Million TL) 2007 2008 2009 2010 2011 2012 2007-2012 Inc. Rate Deposit Banks 356.984 453.485 507.258 614.681 656.276 708.079 %98 Participation Banks 14.943 19.210 26.842 33.828 39.869 49.151 %229 Deposit+Participation B. 371.927 472.695 534.100 648.509 696.145 757.230 %104 Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank Association of Turkey, 2012-13) (PBAT, The Participation Banks Association of Turkey, 2012-13). Table 8 Total Deposits in Deposit Banks, 2007-2012 (Million TL) Year 2007 2008 2009 2010 2011 2012* Total 1000TL 356.983.744 453.484.686 507.258.479 614.680.785 656.276.000 708.079.178 27 12 21 7 8 Inc. Rate When figures are compared as of the end of 2007 and 2011, it is seen that participation banks have two times bigger percentage of increase than deposit banks on the percentage basis in terms of rate of increase. Participation banks taken into account, total fund + deposit in Turkey reaches 696 billion TL as of the end of 2011. Funds Utilized, 2007-2012 Increase rate of loan-fund utilization from the end of 2007 to the end of 2012 of participation banks higher than deposit bank’s rate. They are 226% and 166**% respectively. Bank Asya is the leading participation bank with an amount of 16.1 billion Turkish Lira; In terms of funds utilized as the end of 2012. TürkiyeFinans, KuveytTürk and AlbarakaTürk * This Figure Strong Estimate. Calculated via increase rate of 9/2011 and 9/2012 on 12/2011 figures. (Exact figures will publish in the middle of May by BAT) ** Very Strong Estimate. Deposit Banks 2012 Exact Figures will Publish in the Middle of May by BAT. This Figure Calculated via increase rate of 9/2011 and 9/2012 on 12/2011 figures. 15 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo follow Bank Asya respectively. It is seen that Bank Asya has the highest average increase rate for last six years. The second performance is belonging to KuveytTürk. Table 9/a Funds Utilized by Participation Banks 2007-2012 (1000TL) END OF YEAR Average 2007-2012 2012 2011 2010 2009 2008 2007 ALBARAKA TÜRK 5.644.337 9.075.183 7.273.906 6.269.485 4.675.617 3.716.977 2.854.852 BANK ASYA 9.871.255 16.085.168 13.141.380 10.916.732 8.221.427 6.253.160 4.609.665 KUVEYT TÜRK 6.916.123 11.848.419 10.360.917 6.984.989 4.904.932 4.237.341 3.160.138 TÜRKİYE FİNANS 8.092.604 12.971.058 10.327.232 7.913.437 7.109.233 5.526.380 4.708.285 TOTAL SUM 30.524.319 49.979.828 41.103.435 32.084.643 24.911.209 19.733.858 15.332.940 Table9/b Increase Rate from Previous Year at Funds Utilized by Participation Banks 2007-2012 END OF YEAR ALBARAKA TÜRK BANK ASYA KUVEYT TÜRK TÜRKİYE FİNANS Increase Rate From Prev.Year Total Sum 26% Average 200728% 37% 36% 23% 2012 2012 16% 48% 28% 0% 0% 2011 16% 20% 48% 31% 28% 2010 34% 33% 42% 11% 29% 2009 26% 31% 16% 29% 26% 2008 30% 36% 34% 17% 29% 2007 44% 51% 47% 49% 46% Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank Association of Turkey, 2012-2013) (PBAT, The Participation Banks Association of Turkey, 2012-2013). Growth of Net Profit Table10/aGrowth of Net Profit, 2007-2012 (1000TL) END OF YEAR Average 2007-2012 2012 2011 2010 2009 2008 2007 ALBARAKA TÜRK 135.655 191.835 160.870 134.379 105.626 136.242 84.979 BANK ASYA 239.265 190.392 216.090 259.962 301.281 246.529 221.337 KUVEYT TÜRK 151.698 250.156 195.042 159.648 127.133 104.086 74.123 TÜRKİYE FİNANS 199.942 283.573 231.587 205.529 171.388 160.633 146.943 TOTAL SUM 726.561 915.956 803.589 759.518 705.428 647.490 527.382 Table 10/b Increase Rate from Previous Year at Net Profit, 2007-2012 (1000TL) ALBARAKA BANK KUVEYT TÜRKİYE Increase Rate From TÜRK ASYA TÜRK FİNANS Prev.Year Total Sum Average 2007-2012 21% 7% 41% 13% 16% 2012 19% -12% 28% 22% 14% 2011 20% -17% 22% 13% 6% 2010 27% -14% 26% 20% 8% 2009 -22% 22% 22% 7% 9% 2008 60% 11% 40% 9% 23% 2007 22% 51% 105% 5% 35% Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank Association of Turkey, 2012) (PBAT, The Participation Banks Association of Turkey, 2012). END OF YEAR 16 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Looking at deposit banks for the 2007-2012 periods, their profit increased by %71 from 2007 to 2012, and reached to 23 billion TL in 2012. Increase rate of participant banks total net profit is %74 from the end of 2007 to the end of 2012. The rate of participation bank’s is a little higher than deposit banks. In terms of average profit per bank, deposit banks have too high figures compared to participation banks naturally. However it is also obvious that average scales, branch numbers and history of deposit banks are above participation banks. TürkiyeFinans has the biggest share in total profitability of total participating banks at the end of 2011. Bank Asya, KuveytTürk and Al Baraka follow it respectively. Furthermore, KuveytTürk has the highest average net profit increase rate among the others. KuveytTürk has more stable rates at the last six years. Year Table11 Net Profit/Loss of Deposit Banks for the Year, 2007-2012 2007 2008 2009 2010 2011 2012* Total Inc.Rate 13.467.940 11.851.867 18.489.700 20.518.216 19.849.000 23.064.743 16,2 -12 56 11 -3 Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank Association of Turkey, 2012) (PBAT, The Participation Banks Association of Turkey, 2012). Growth of Asset (Equity Capital) Looking at the table regarding the equity capital growth, it is seen that participation banks increased their equity in 2012 212% according to the 2007. Looking at deposit banks for the 2007-2012 periods, their equity capital increased by 129 % from 2007 to 2012. Table12/aGrowth of Equity Capital, 2007-2012 (1000TL) END OF YEAR Average 2007-2012 2012 2011 2010 2009 2008 2007 ALBARAKA TÜRK 826.295 1.218.333 1.004.251 852.635 710.666 638.102 533.780 BANK ASYA KUVEYT TÜRK TÜRKİYE FİNANS 1.732.301 2.349.273 2.137.426 1.941.667 1.707.894 1.403.692 853.856 1.043.379 1.684.037 1.437.978 1.256.685 807.312 685.679 388.583 1.321.276 2.125.162 1.613.659 1.406.096 1.193.692 1.001.456 587.592 TOTAL SUM 4.923.251 7.376.805 6.193.314 5.457.083 4.419.564 3.728.929 2.363.811 Table 12/b Increase Rate from Previous Year at Equity Capital, 2007-2012 (1.000TL) ALBARAKA BANK KUVEYT TÜRKİYE Increase Rate From TÜRK ASYA TÜRK FİNANS Prev.Year Total Sum Average 2007-2012 35% 26% 39% 31% 31% 2012 21% 10% 17% 32% 19% 2011 18% 10% 14% 15% 13% 2010 20% 14% 56% 18% 23% 2009 11% 22% 18% 19% 19% 2008 20% 64% 76% 70% 58% 2007 117% 35% 55% 35% 52% Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank Association of Turkey, 2012) (PBAT, The Participation Banks Association of Turkey, 2012). END OF YEAR * This Figure Strong Estimate. Calculated via increase rate of 9/2011 and 9/2012 on 12/2011 figures. (Exact figures will publish in the middle of May by BAT) 17 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Bank Asya has the biggest share in total equity capital of total participating banks at the end of 2012. TürkiyeFinans, KuveytTürk and Al Baraka follow it respectively. Furthermore, KuveytTürk has the highest average equity capital increase rate among the others. KuveytTürk has biggest equity growing rate at the last six years. Table13Equity Growth of Deposit Banks,2007-2012(1.000 TL) Year 2007 2008 2009 2010 2011 2012* Total 64.533.482 72.060.575 93.832.584 114.978.956 123.007.000 147.585.754 12 30 23 7 20 Inc.Rate Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank Association of Turkey, 2012) (PBAT, The Participation Banks Association of Turkey, 2012) (BAT, The Bank Association of Turkey, 2013) Growth of Total Assets Table14/a Growth of Total Assets in Participation Banks, 2007- 2012 (1000TL) END OF YEAR Average 2007-2012 2012 2011 2010 2009 2008 2007 ALBARAKA TÜRK 7.681.482 12.327.654 10.460.885 8.406.301 6.414.914 4.789.108 3.690.029 BANK ASYA 13.178.446 21.390.024 17.190.099 14.513.419 11.608.955 8.108.129 6.260.048 KUVEYT TÜRK 10.012.683 18.910.513 14.897.592 9.727.117 6.904.526 5.768.034 3.868.318 TÜRKİYE FİNANS 10.542.867 17.616.504 13.528.353 10.691.860 8.699.643 7.104.156 5.616.687 TOTAL SUM 41.415.478 70.244.695 56.076.929 43.338.697 33.628.038 25.769.427 19.435.082 Table 14/b Increase Rate from Previous Year at Total Assets in Participation Banks,200712(1000TL) ALBARAKA BANK KUVEYT TÜRKİYE Increase Rate From TÜRK ASYA TÜRK FİNANS Prev.Year Total Sum Average 2007-2012 27% 32% 37% 27% 31% 2012 18% 24% 27% 30% 25% 2011 3% 18% 53% 27% 29% 2010 31% 25% 41% 23% 29% 2009 34% 43% 20% 22% 30% 2008 30% 30% 49% 26% 33% 2007 48% 50% 32% 36% 42% Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank Association of Turkey, 2012) (PBAT, The Participation Banks Association of Turkey, 2012). END OF YEAR When we look at the table of growth of assets, it is seen that participation banks provide in the 2007-2012 period according to deposit banks. Participation banks increased their total assets 261% owing to deposit banks increased their total assets 119%. Bank Asya has the biggest asset among participation banks, which is followed by KuveytTürk at the end of 2012. * This Figure Strong Estimate. Calculated via increase rate of 9/2011 and 9/2012 on 12/2011 figures. (Exact figures will publish in the middle of May by BAT) 18 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Similarly in this case, KuveytTürk has the highest average increase rate for 2007-2012 periods. Bank Asya, Al Baraka and TürkiyeFinans follow it respectively Table15 Growth of Total Assets in Deposit Banks, 2007- 2012 Year 2007 2008 2009 2010 2011 2012* Total 542.293.125 682.936.916 771.511.791 930.947.266 1.119.911.000 1.190.124.718 26 13 21 20 6,3 Inc.Rate Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank Association of Turkey, 2012) (PBAT, The Participation Banks Association of Turkey, 2012). Table 16The Shares of Participation Banks within the Sector Year Sector 2012 1.315.759 Deposit Banks Total Ratio in Assets the Sector 1.190.125 90,5% * 1.119.911 92,0% Dev. and Inv. Banks Total Ratio in Assets the Sector 55.389* 4,2% Participation Banks Total Ratio in the Assets Sector 70.245 5,3%** 2.01 1.217.695 41.636 3,4% 56.148 4,6% 1 2.01 1.006.667 932.371 92,6% 30.958 3,1% 43.339 4,3% 0 2.00 834.014 773.357 92,7% 27.029 3,2% 33.628 4,0% 9 2.00 732.536 683.823 93,4% 22.943 3,1% 25.770 3,5% 8 2.00 581.606 543.272 93,4% 18.888 3,2% 19.445 3,3% 7 Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank Association of Turkey, 2012) (PBAT, The Participation Banks Association of Turkey, 2012). Share in the Sector 6.00% 4.00% 2.00% Share in the Sector 0.00% The table clearly shows that The Participation banks have increased the theirs shares in the sector. While the share of Participation banks is %3,3 in 2007, the share reaches to %5,3 in the end of 2012. The increasing rate of sector share is %61 as a number. * This Figure Strong Estimate. Calculated via increase rate of 9/2011 and 9/2012 on 12/2011 figures. (Exact figures will publish in the middle of May by BAT) ** Very Strong Estimate. Deposit Banks Exact Figures will Publish in the Middle of May. 19 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo VI. Conclusions Participation banks, with their old name Special Finance Houses, are institutions collecting funds similar to deposit through private current accounts and accounts giving right to profit/loss participation, and utilizing funds through methods such as production support, partnership of profit and loss, leasing, document against payment. In Turkey, the foundation of these institutions has been allowed since 1984. Their number which has increased to 6 decreased to 4 eventually parallel to the consolidation of deposit banks. However growth of volume and branch number in the finance sector especially in the last years is also extremely valid for these institutions. Their share is small today in total sector but it grows in a stable manner with their higher growth rate than other banks. In 2001, participation banks had total asset amount of 2,4 billion TL which meant a share of 1,08 % in the total assets of the sector. These amounts and shares were 7,3 billion TL and 2,34 % in 2004, 13.730 billion TL and 2,83 % in 2006, 25.769 billion TL and % 3,64 in 2008, and 56.148 billion TL and 5,3 % as of the end of 2012.  These companies which are subject to most limitations of general arrangements and loan limitations in the Banking Act no. 5411 differ from deposit banks at most in terms of that they don’t undertake the risk of interest. Because these kinds of banks don’t undertake the risk of interest which is one of the greatest risks which have to be managed in banking sector, we can talk about an asset-liability balance which is less sensitive to financial crisis. However not to undertake the risk of interest, in these kinds of banks, differently from deposit banks, eliminates the opportunity to obtain sudden and high institutional profit based on interest rate difference.  Putting three public banks and one SIDF bank aside, while 28 private deposit banks have 254 branches on an average, each of 4 participation banks has 207 branches on an average. However in terms of the increase rate of branches from 2007 to 2012, it is seen that participation banks reached almost three times bigger increase rate of branch numbers than deposit banks.  Increase rate of loan-fund utilization from the end of 2007 to the end of 2012 of participation banks higher than deposit bank’s rate. They are 226% and 166 % respectively.  Total net profits increasing rate of participant is %74 from the end of 2007 to the end of 2012. Looking at deposit banks for the 2007-2012 period, their profit increased by %71 from 2007 to 2012, and reached to 18,2 billion TL in 2011. The rate of participation banks is a little higher than deposit banks. In terms of average profit per bank, deposit banks have too high figures compared to participation banks naturally. However it is also obvious that average scales, branch numbers and history of deposit banks are above participation banks  It is seen that participation banks increased their equity in 2012 212% according to the 2007. Looking at deposit banks for the 2007-2012 periods, their equity capital increased by 129 % from 2007 to 2012. The difference between them is important.  Thus those given results also all support our thesis in this paper.  Meanwhile, the participation banks also have some problems for instance they have needed such as the Interbank systems which provide urgent proper credits for the depository banks in the short run. Whereas, this situation negatively hinders the participation banks performance. Because they are sharing nearly all of their funds 20 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo for the creditors or investors who uses them for leasing, production, sales, trade, export and imports which composed the real sector of the economy.  For that reason it is very vital interest for the participation banks forming the similar interbank system which would increases their customers and operational transactions, too. For instance, the establishment of guaranty insurance system among the participation banks positively influenced their expansion in the market.  Nevertheless, the depository banks they are the corporations so their rulers and executive bodies are responsible fully form their operations and in any case, the state quarantined their possible bankruptcy situations, but in the Participation Banking systems there was no such kind of full responsibility or insurance system in their financial credit operations because of joint losses or gains. In both theory and practice there is a legal gap that is why it leaded to some corruptions and abuses, the participation banks and companies in Turkey and European countries, too. This problem has been partially solved for Turkey. Those banks and companies forced to adopt the status and the legal structural establishment of banks and companies. Some of them applied to be part of the Capital Stock Exchange Market. That is why they could be checked and controlled by the state audit system.  This study examines the case of each participation bank among each other. The tables and figures show the each participation bank ordering at 9 different criteria. In conclusion, Bank Asya is the leader among the four banks in the eight criteria,TürkiyeFinans is the first profitable bank.  This study examines the more important thing for these banks. The average increasing rate for last five years has been calculated in this study. This figures show that KuveytTürk Participation Bank has the highest average in the almost all of criteria.  This study shows that The Participation banks have increased the theirs shares in the sector also. While the share of Participation banks is %3,3 in 2007, the share reaches to %5,3 in the end of 2012. The increasing rate of sector share is %61 as a number. References Ahmad, A., Humayoun, A. A., & Hassan, U. u. (2010). An Analysis of Functions Performed by Islamic Bank: A Case of Pakistan. European Journal of Social Sciences, 17 (1), 7-12. Akın, C. (1986). Faizsiz Bankacılık ve Kalkınma. İstanbul: Kayıhan Yayınları. Albaraka Türk – About Us. (2010). Retrieved 12 23, 2010, from Albaraka Türk: http://www.albaraka.com.tr/bizi_taniyin/detay.aspx?SectionID=AvW7CcOUELQ lQzfWvBQMfQ%3d%3d&ContentID=SjpzafdvjZK8baQMqwSZQQ%3d%3d BAT, The Bank Association of Turkey. (2008). Bankalarımız 2007. İstanbul: Türkiye Bankalar Birliği. BAT, The Bank Association of Turkey. (2009). Bankalarımız 2008. İstanbul: Türkiye Bankalar Birliği. BAT, The Bank Association of Turkey. (2010). Bankalarımız 2009. İstanbul: Türkiye Bankalar Birliği. 21 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo BAT, The Bank Association of Turkey. (2011). Bankalarımız 2010. İstanbul: Türkiye Bankalar Birliği. BAT, The Bank Association of Turkey. (2012). Bankalarımız 2011. İstanbul: Türkiye Bankalar Birliği. BAT, The Bank Association of Turkey. (2013). 2012 3.Quarter Information. İstanbul: Türkiye Bnk. Birl. http://www.tbb.org.tr/Dosyalar/istatistiki_raporlar/3_Aylik_Banka_Bilgileri_(Son_Donem _Karsilastirmali)_/1210/Ekler/Turkiye_Bankacilik_Sistemi-Eylul_2012.pdf Battal, A. (2007). Bankacılık Kanunu Şerhi (2 ed.). Ankara: Seçkin Yayıncılık. Bilgin Tevfik(2011), The Head of the BRSA, Conferences on The Union of Participation Banks, İstanbul, 18.05.2011. Burton, M., Nasiba, R., & Brown, B. (2009). An Introduction to Financial Markets and Institutions (Second ed.). USA: M.E.Sharpe. Canbaş, S., & Doğukanlı, H. (2007). Finansal Pazarlar-Finansal Kurumlar ve Sermaye Pazarı Analizleri (4 ed.). Adana, Turkey: Karahan Kitabevi. Central Bank of Republic of Turkey, C. B. (2005). Türkiye Cumhuriyet Merkez Bankası, “Finansal İstikrar Raporu 2005”, Ankara; http://www.tcmb.gov.tr/yeni/evds/yayin/finist/bolumII.pdf, 28.06.2010. Retrieved 6 28, 2010, from Central Bank of Republic of Turkey: http://www.tcmb.gov.tr/yeni/evds/yayin/finist/bolumII.pdf Chong, B. S., & Liu, M. H. (2009). Islamic banking: Interest-free or interest-based? Pacific-Basin Finance Journal, 17, 125–144. Küçükkocaoğlu, G. (2010, 6 28). İslami Bankalar ve İslami Finans Kurumları.Retrieved from http://www.baskent.edu.tr/~gurayk/finpazcuma17.doc Malik, A., & Malik, M. S. (2011). An Analysis of Islamic Banking and Finance in West From Lagging to Leading. Asian Social Science, 7 (1), 179-186. Mishkin, F. S., & Eakins, S. G. (2009). Financial Markets and Institutions (Sixth ed.). Boston: Pearson Prentice Hall. Moles, P., & Tery, N. (1999). The Handbook of International Financial Terms. United Kingdom: Oxford University Press. Omar, M. W., & Ali, M. N. (2010). Brand Loyalty and Relationship Marketing in Islamic Banking System. Canadian Social Science, 6 (1), 25-32. Parasız, İ. (2009). Para Banka ve Finansal Piyasalar (9 ed.). Bursa: Ezgi Kitabevi. 22 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo PBAT, The Participation Banks Association of Turkey. (2010). Türkiye Katılım Bankaları Birliği. Retrieved 06 28, 2010, from Statistics: http://www.tkbb.org.tr/index.php?option=com_content&task=blogsection&id=30 &Itemid=382 Rose, P. S., & Marquis, M. H. (2009). Money and Capital Markets (Tenth ed.). Singapore: Mc Graw Hill. Saunders, A., & Cornett, M. M. (2004). Financial Markets and Institutions (Fourth ed.). Sigapore: Mc Graw Hill. Sayım, F. & Alakel, M. (2011). The Participation Banking And Its Comparison With Deposit Banking In The Turkish Finance Market, Scientific Journal European Integration Studies, Kaunas University Of Technology Institute Of Europe, No:5, 152-164 (*This study contains only 2007-2009 year in the sector.) The History of Kuveyt Türk. (2010). Retrieved 12 22, 2010, from Kuveyt Türk Participation Bank: http://www.kuveytturk.com.tr/tr/Hakkimizda_Tarihce.aspx The Participation Banks Association of Turkey, T. (2008). Türk Finans Sisteminde Katılım Bankaları. Türkiye Katılım Bankaları Birliği. The Participation Banks Association of Turkey-FAQ. (2010, 12 28). Retrieved 2010, from The Participation Banks Association of Turkey: http://www.tkbb.org.tr/index.php?option=com_content&task=blogcategory&id=4 6&Itemid=83 Yılmaz, O. N. (2010). Faizsiz Bankacılık İlkeleri ve Katılım Bankacılığı. Antalya, Turkey: Türkiye Katılım Bankaları Birliği. 23 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1505 Title A name given to the resource A Different Banking Methods and the Developing in the Turkish Finance Market-Turkish Participation Banking For 2007-2012 Author Author SAYIM, Ferhat Abstract A summary of the resource. Financial systems and institutions has become the most important reason in the fragility of world economic system. The formation and development process of the financial structure also constitutes the infrastructure of the world economic system. The course of the financial system and development has led to debate with the financial crisis in 2008-2011. One of the discussion topics in order to eliminate problems caused by the conventional banking system is alternative financing systems. In Turkey, the corporations based on profit share system which are named participation based banking spotlight, if the alternative banking systems are considered. These banks which determine different principles in the risk distribution of the portfolio acquired are analyzed more nowadays. Participation based banks are placed in almost every regulation related to banking terms and get their legal infrastructure more stable in the banking legislation of Turkey. This study is a 2007-2012 part of research series. We try to find out the place and the importance of participation based banking with the various sub-headings especially in Turkey. We examine the comparative review 2007-2012 data of participation banks which Collected Turkish Currency and Foreign Currency Funds, Bank Loan Funds, Total Assets, Equity and Net Profit figures for the four participation banks in Turkey. We are comparing the total figures with deposit banks for the same period. One of our primary goals in this essay, to study in the framework of the alternatives of the financial institutions and options. These options could be asserted as a vibrant and viable well established choice as a nonwestern model- different from the classical western interest based dominant banking system in the globe. Moreover, that participation banking systems’ grow and increase with its resourceful bulk of transactions and shares within the financial market. In addition, we intended to delineate the basic functioning structures, rules, norms, principles, procedures, operations of that alternate banking system in the financial market.After that, we have applied as a descriptive, explanatory, discursive and comparative analytic methodology to expound the matter in detail. Having gathered literature reviews then we have concentrated on Turkey as a model state in that banking system practice; at which, what kind of instruments and tools used by referring basic indicators, data and information related to the growth, flourish and share of that sector within the total banking and financial system in Turkey. Furthermore, that participation banking system positions, researched in the country. Thus, it is explicated more concerns on by investigating its credits, deposits, financing formulation systems and commitments with the banks, customers and investors of the alternate banking system in the country’s financial order. At last, we have attempted to clarify and summarize the concepts, definitions, expositions, demonstrations, rules, assets, liabilities, equities etc.. by giving special cultural internalizations about the organizational and operational activities of the participation banks both similarities and discrepancies, too; so as to draw the attentions of the new researchers and studies in that situation. Keywords: Bank, Finance Market, Finance Sector, Participation Bank, Islamic Bank, Interest Free Banking, Alternative Banking System. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 978-9958-834-23-3 https://omeka.ibu.edu.ba/files/original/d91cd0ab9a3f32d7cecad8eabf3622b4.pdf 2490950386f69567a4085541303c9fd2 PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo Efficiency of Experimental Program for the Parental Instruction for Children Hazim Selimovid University of Travnik, Travnik, Bosnia and Herzegovina hazim.selimovic@gmail.com Zehrina Selimovid University of Travnik, Travnik, Bosnia and Herzegovina zehrina.selimovic@gmail.com Parental instruction in terms of helping children with school activities is very important. For this reason, this paper dealt with theoretical and empirical segment of this problem. In the theoretical part, the concept of parental instruction was defined as well as its importance for the success of the child, the commitment of children to such assistance and the aspects of parental instructions. The objective of study was to investigate the level of parents’ ability to provide instruction to children with school activities and learning. For this purpose, an experimental method was applied (experiment with initial and final measurements with one group). In order to examine the effect of experimental treatment the instrument on parental instruction to children was used. The obtained results provided significant findings that lead us to the conclusion that parents' education can improve their instructions to children in school learning. Keywords: Parental Instruction, Parents, Students. 156 � https://omeka.ibu.edu.ba/files/original/91f4632e4809fd1f5c8a1aac825bba5c.docx efaba95c70fa737eb8742e11b301c9a9 https://omeka.ibu.edu.ba/files/original/ceb466bde205d7691a65fb1c3ae93491.pdf ab86cefb860aa8619f38c25c6558712f PDF Text Text International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Application Efficiency of Experimental Program on Parental Instruction to Children Hazim Selimović University of Travnik, Travnik, Bosnia and Herzegovina hazim.selimovic@gmail.com Zehrina Selimović University of Travnik, Travnik, Bosnia and Herzegovina zehrina.selimovic@gmail.com Abstract Privacy can be defined as areas which are peculiar to an individual not to public or society. The concept of privacy is mentioned with the concepts of confidentiality and security of personal information and private areas. While the governments create electronic tools and environment to watch and make observation to provide the citizens more secure and an environment to live, it might cause an individual’s private area to shrink. Parental instructions as a helping tool in children are learning process is highly important. For that reason this paper focuses on theoretical and empirical issues within this topic. The theoretical segment defines parental instruction and its significance for child’s success, as well as the different forms of parental instruction, and child’s openness to that form of assistance. The starting point of this paper is testing the level of parents’ capability to instruct children in learning processes. An experimental method (an experiment with initial and final testing within a single group) is utilized. The instrument of parental instruction to children is used in order to test the influence of the experimental treatment. The obtained data has answered significant questions. A positive effect of the experimental process is determined in five out of seven subtests: complexity reduction of the school matter being studied, parents paying significance to the instruction, instruction frequency, monitoring child’s improvement, parents’ instruction level and capability. A positive level of the experimental program has not been recognized in metacognitive context of the instructions and parents’ emotional support to their children. The data stemming from the research suggests that parents coming from urban communities attach more significance to the instruction than parents from rural or suburban communities. These findings lead to the conclusion that parental instruction in children’s learning processes can be improved by the parental education. Keywords: parental instruction, parents, children, Introduction How well a child adapts depends on the environment by which they are surrounded. School and family are a significant part of that environment. There is no doubt that the family is the basic and the most significant institution in any given society. It is equally 1 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo significant both for the development of the society, and the individuals within that society. Children’s experiences within the family greatly determine future ability to adapt to life and working environment. The role of the family is education and upbringing, as well as creating an environment for child’s continuous development as a cognitive, emotional, social and functional human being in accordance to their affinities and capabilities. Parent-child relations begin with a moment of birth; they develop throughout child’s stay in parent’s house, and continue throughout the life. The quality of the parent-child relationship depends on parents’ interpersonal relationship, their attitude towards the children, as well as the relationship of all the family members and their attitude towards the children. Family relations significantly affect children’s success at school. Parents who attach more significance to parental instruction will largely assistance their children to master the school matters, than those parents who do not view parental instruction as an important part of the learning process. Family and school represent a changing socio-historical category, and with the development of society, science and technology, their role changes, and also becomes more significant to a certain extent. Therefore, the collaboration between school and family in children’s education and upbringing is crucial. The definition of parenting instruction In order to discuss parenting instruction, first we need to clarify the meaning of the word ‘instruction’. It stems from the Latin word ‘instruction’ and means ‘to teach, to educate, to direct, to order.’ (Anić, Klaić and Domović, 2007, pp. 609). The meaning of the word tells us that its essence is to direct on how something should be done. Therefore, parental instruction stands for parents giving their children directions on the easiest way to absorb the school matter. This raises the question of how much significance parents attach to parental instruction. According to pedagogical theory and practice, the level of parental instruction is unsatisfactory. The reasons for it can be the parents themselves, as well as their inadequate ability to instruct. Namely, our patriarchal society which views the mothers as the main caregivers to children, together with the fact that mothers are overwhelmed with housework and other obligations, leaves little room for parental instruction on school matters. On the other hand, the schools’ lack of collaboration with the parents, leaves the parents ill equipped to successfully assistance their children, seeing that they simply are neither aware of the learning methods, nor the school syllabuses. The result is children’s poor results at school, as well as their ‘unfamiliarity with effective learning methods, as a result of children left on their own, overexposed to television, video games or the streets.’(Suzić, 2005, pp. 384). This situation is unacceptable and steps should be undertaken to provide improvement. A good starting point is to inform ourselves in how is Western European countries dealing with this issue? ‘In Western countries it has become a norm for parents to be involved in school education of their children, to monitor their progress at school, and to frequently consult with teachers on ways how to assistance their children in learning process’ (ibid. pp. 384). What is obvious is that parental instruction would assistance the children in their learning process. The question is how open are the children for this form of assistance. They can accept it or not. If children are not open to this form of assistance, it can lead to them feeling overwhelmed and lost. If children are open to parental instruction, they also start to value it and recognize its significance. 2 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Parental instruction needs to be unobtrusive in order for children to be open to it, it needs to take into consideration child’s initial antagonism and offer easy and clear guidelines. Unfortunately the reason for the lack of this form of assistance sometimes lies in parents, when they feel that they are not competent enough to provide this kind of pedagogical communication. In order to help the parents shake off the feeling of incompetence, the schools should organize trainings aimed to enable the parents to help their children in learning process. The parents will be able to annul the feeling of incompetence through workshops and lectures, and also to acquire certain pedagogical competences which will help them alleviate the learning process. The basic question which imposes itself is : How to help a child in the learning process? The desire for success at school, as well as its significance in modern society drives the parents to take an active role in their children’s education. Their help consists of parents explaining how to approach the matter at hand, as well as why it is important for the child to learn it. The purpose of learning is often left unexplained, which leads to children withdrawing because they were not instructed on importance of the learning process. Parents are expected to explain the purpose of learning to their children through everyday communication, in order for a child to grasp the importance of learning and be motivated to master the school matter. Parents should also entice and encourage their children to persist in given tasks on a daily basis, which will help develop their character, determination and confidence. Parents should entice and encourage their children even in moments of setbacks, when that support is needed the most. Finally, parents’ love should also be pointed out as a foundation of parent-child relationship, and a crucial ingredient for future success. Parents’ empathy as an amalgam of all of the above instigates the emotional and rational understanding, ingredients which are crucial for a child to become a physically and mentally balanced adult. There are various forms of parental instruction, and this paper focuses on the following: Metacognitive instruction context, Task complexity reduction, Attaching significance to the instruction, Emotional support to a child, Instruction frequency, Child’s improvement monitoring and Parent’s instruction capability level. Our research Hypotheses The starting points for this research are four hypotheses: 1. Experimental process has a positive effect on parental instruction in child’s learning process; 2. Experimental process has a positive effect on parental instruction in child’s learning process with regards to the environment by which the school is surrounded; 3. Experimental process has a positive effect on correlation between parental instructions and parents’ education and financial status; 4. Experimental process has a positive effect on correlation between parental instructions and parents’ age. 3 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Testing sample Research testing sample are the of 1st, 2nd, 3rd, 4th and 5th grade primary school pupils from Tuzla, Zvornik, Simin Han and Sapna. The testing sample consists of 125 parents. The parents are divided into the following age categories: 25 to 29 - 27 parents (21,6%), 30 to 34 - 34 parents(27,2%), 35 to 39 - 38 (30,4%), 40 to 44 - 22 (17,6%) and 45- 49 - 4 parents (3,2%). Education categories are: 20 parents (16,0%) with four years of primary school education, 35 (28,0%) %) with eight years of primary school education, 48 (38,4%) with secondary education, 10 (8,0%) with college education and 12 (9,6%) with university education. Social categories are: 17 parents (13,6%) without any income, 3 (2,4%) with income up to 100 BAM, 12 (9,6) with income between 100 and 300 BAM, 27 (21,6) with income between 300 and 500 BAM and 66 (52,8%) with income above 500 KM. The Instrument The instrument used in the research is RID- Parental instruction to children (Suzić, 2005, pp. 909). The instrument uses Likert type assessment scale which consists of the five-level list of possible answers, two of which are agreement levels, one is neutral, and two are disagreement. The parents used this scale to express their agreement, neutrality or disagreement with the information provided. RID - Parental instruction to children is an instrument taken from the 21st Century Pedagogy, (Suzić 2005, pp. 909). It consists of seven subtests: Metacognitive instruction context (6 items),Task complexity reduction (5 items), Attaching significance to the instruction (7 items), Emotional support (7 items), Instruction frequency (5 items), Improvement monitoring (5 items), and Parent’s instruction capability level (7 items). The subtests are summary so we reached an overall RID score: The questions are answered using the Likert scale as follows: 1 (none, never), 2 (to a certain extent, occasionally), 3 (medium or 50%), 4 (mostly, often) and 5 (completely, always). Instrument’s reliability is determined by Alpha- Cronbach coefficient which is ( = 0,85). Study Results The first hypothesis of this study states that experimental treatment has beneficial effect on parental instructions to children in relation to acquiring school curriculum. Confirmation of this hypothesis can be seen in the Table 1. Overall, it is evident that application of the experimental treatment has positive effect on parental instructions to children. 4 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Table 1: Differences between parental instructions to children Parameter MKI 01i-06i MKI 01f-06f RKZ 07i-11i RKZ 07f-11f PZI 12i-18i PZI 12f-18f EPD 19i-25i EPD 19f-25f FID 26i-30i FID 26f-30f PND 31i-35i PND 31f-35f NOR 36i-42i NOR 36f-42f RID SUM i ∑ RID SUM f ∑ No of subjec ts 125 125 125 125 125 125 125 125 M 22,63 22,97 18,45 20,05 29,41 30,14 28,54 29,50 17,82 18,36 18,66 20,35 19,33 29,72 150,79 170,79 SD Diff. M 4,30 3,06 3,82 1,98 3,52 2,22 3,63 2,41 2,58 1,56 2,79 1,74 5,27 2,92 18,17 10,11 Level of freedom Signif. 124 0,467 – 1,60 – 0,729 – 4,255 124 0,000 – 0,25 – 2,149 124 0,034 – 0,74 – 1,707 124 0,090 – 0,66 – 2,148 124 0,034 – 0,54 – 5,937 124 0,000 – 1,69 – 20,251 124 0,000 – 20,00 – 11,341 124 0,000 – 0,34 t-time. Note: MKI (01-06) - Metacognitive instruction context RKZ (07-11) - Task complexity reduction PZI (12-18) - Attaching significance to the instruction EPD (19-25) - Emotional support to a child FID (26-30) - Instruction frequency PND (31-35) - Child’s improvement monitoring NOR (36-42) - Parent’s instruction capability level RID (01-42) - Parental instruction to children (summarily) Establishing the significance of the difference between the initial and final states of parental instructions to child (RID) Metacognitive instruction context MKI 01-06 (IF) – the very first parameter of Table 1 demonstrates that there are no statistically significant differences (at p <0.05) in all six components of parental instruction to child, with a statistically insignificant correlation of 0.05 between both sets before and after the experimental treatment. The effect of the experimental treatment did not yield any significant results in terms of metacognitive competence in parents-children relationship. The reasons for these results are to be found in the fact that the development of metacognition in parents was unsuccessful i.e. development of awareness of their own cognition failed. The reasons for this are hard to explain but it is a fact that some parents tend to analyze their own actions while others are mainly engaged in specific activities.Determining the significance of the difference between the initial and final states of parental instructions to child (RID) Reduction of the tasks’complexity RKZ 07-11 (IF) the second parameter of Table 1 shows that there are statistically significant differences (at p <0.01) in all five components of parental instructions to child, with a statistically insignificant correlation of 0.06 between both sets before and after the experimental treatment. The effect of experimental treatments yielded significant results in terms of reduction of the tasks’ complexity at the parents to children instructions. Based on the analysis of the findings it can be concluded that the parents acquired certain knowledge through workshops, knowledge regarding reduction of tasks’ complexity, i.e. they managed to understand the importance of adjusting instructions to the needs of their children. Understanding the specific ways of learning certain subject matters resulted in 5 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo learning how the same matter can be learnt more easily than when applying the method used before the experiment. Determining the significance of the difference between the initial and final states of parental instruction to child (RID) Attributing significance to instruction PZI 12-18 (IF) the third parameter, Table 1 shows that there are statistically significant differences (at p <0.05) in all seven components of parental instructions to child, with a statistically insignificant correlation of 0.17 between both sets before and after the experimental treatment. The effect of the experimental treatment yielded tangible results in terms of the importance that parents attribute to instructions. The effect of knowledge that parents acquired through workshops and relating to the instructions, motivated parents to attribute greater importance to instructions to their children in mastering the curriculum content in terms of time needed for instructions and personal engagement in the success. The fact that they were involved in the experiment contributed to motivating parents, as well as the desire for new knowledge about instructions which parents showed even during the experimental treatment by reading additional literature. Determining the significance of the difference between the initial and final states of parental instructions to child (RID) Emotional support to the child EPD 19-25 (IF) - the fourth parameter, Table 1 shows that there are no statistically significant differences (at p <0.05) in all seven components of parental instructions to child, with a statistically insignificant correlation of 0.03 between both sets of before and after the experimental treatment. The effect of the experimental treatment did not yield significant results in terms of emotional support from the parents to the child. The lack of statistical significance in the emotional support to children points to the fact that parents, during the instructions, paid more attention to the adoption of specific teaching content ignoring the emotional support, which can be interpreted by different levels of aspirations of children and parents where parents focused only on acquiring knowledge while children needed emotional support as well. This also points to the interconnectedness of metacognition which also did not show statistically significant improvement in terms of emotional self-regulation of the parents. Determining the significance of the difference between the initial and final states of parental instructions to child (RID) Frequency of instructions to child FID 26-30 (IF) - the fifth parameter, Table 1 shows that there are statistically significant differences (at p <0.05) in all five components of parental instructions to child, with a statistically insignificant correlation of 0.16 between both sets of before and after the experimental treatment. The effect of experimental treatments yielded significant results in terms of frequency of parental instructions. Parents started to help their children more often, to talk more about the school and school related topics and to share parental concerns with spouses. This last finding is rather interesting because the majority of parents in the initial stage of the study indicated that solely they care about helping children in school activities and they considered it to be justified, but under the influence of all that they have experienced in the workshops their attitude changed and they began to include spouses and considered them to be an equal collaborators/partners. Determining the significance of the difference between the initial and final states of parental instructions to child (RID) Monitoring progress of the child PND 31-35 (IF) - the sixth parameter of Table 1 shows that there are statistically significant differences (at p 6 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo <0.01) in all five components of parental instructions to child, with a statistically insignificant correlation of 0.07 between both sets before and after the experimental treatment. Progress in this subtest came as a result of greater concern showed by parents for the success of their child, as well as by creating a better, trusting relationship with their children, dosing instructions to the needs of their children and monitoring the success of instructions. All this came as a result of experimental treatment. Determining the significance of the difference between the initial and final states of parental instructions to child (RID) Competence level of parents for instructions NOR 3642 (IF) - the seventh parameter of Table 1 shows that there are statistically significant differences (at p <0.01) in all five components of parental instructions to child, with a statistically insignificant correlation of 0.11 between both sets before and after the experimental treatment. Certainly the biggest improvement of all subtests was made with respect to the level of competence of the parents which can be seen from the arithmetic mean. Parents have entered experimental treatment with a very modest knowledge of instructions as a way to help children learning. Active participation in all workshops enabled them to get acquainted with all that is needed for their children to achieve better results. Motivated by the desire to find out everything needed to successfully work with children, parents have improved their instructions to children and it yielded statistical significance compared to the initial test. Determining the significance of the difference between the initial and final states of parental instructions to child (RID) - Summary Table 1 shows that there are statistically significant differences in general (at p <0.01) in all components of parental instructions to child, with a statistically insignificant correlation of 0.12 between both sets before and after the experimental treatment. The effect of the experimental treatment was felt in the aggregate findings of the instruments of parental instructions to children, which confirmed that parents were actively involved in the experimental program and that they had gained considerable knowledge and experience in order to better and improve success rate of instruction for their children in learning process. The second hypothesis of this study is that the experimental treatment has positive influence on parental instructions to children in relation to school children attend. The findings indicate that there are significant differences in terms of parental instructions to the child with respect to school children attend. The results confirming this hypothesis are shown in Table 2 Table 2:Differences between parental instructions to the child with respect to school children attend Parameter MKI 01-06 (I) MKI 01-06 (F) School urbansuburban urbanrural suburban rural urbansuburban urbanrural Subjects tested 50 25 50 50 25 50 50 25 50 50 M SD 23,42 22,52 23,42 21,90 22,52 21,90 22,86 23,04 22,86 23,00 4,23 4,86 4,23 4,03 4,86 4,03 3,29 2,26 3,29 3,20 7 Diff. M 0,90 F Signif. t-time. Signif. 0,166 0,685 0,826 0,411 1,52 0,317 0,575 1,840 0,069 0,62 0,001 0,970 0,586 0,560 – 0,18 – 0,14 2,700 0,105 – 0,245 0,807 0,037 0,849 – 0,277 0,783 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo RKZ 07-11 (I) RKZ 07-11 (F) PZI 12-18 (I) PZI 12-18 (F) EPD 19-25 (I) EPD 19-25 (F) FID 26-30 (I) FID 26-30 (F) PND 31-35 (I) PND 31-35 (F) suburban rural urbansuburban urbanrural suburban rural urbansuburban urbanrural suburban rural urbansuburban urbanrural suburban rural urbansuburban urbanrural suburban rural urbansuburban urbanrural suburban rural urbansuburban urbanrural suburban rural urbansuburban urbanrural suburban rural urbansuburban urbanrural suburban rural urbansuburban urbanrural suburban rural urbansuburban urbanrural 25 50 50 25 50 50 25 50 50 25 50 50 25 50 50 25 50 50 25 50 50 25 50 50 25 50 50 25 50 50 25 50 50 25 50 50 25 50 50 25 50 50 25 50 50 25 50 50 25 50 50 25 50 50 25 50 50 25 50 50 23,04 23,00 19,36 17,76 19,36 17,88 17,76 17,88 20,76 19,56 20,76 19,58 19,56 19,58 30,76 29,32 30,76 28,10 29,32 28,10 30,56 31,12 30,56 29,24 31,12 29,24 29,96 28,64 29,96 27,08 28,64 27,08 29,30 28,68 29,30 29,36 28,68 29,36 18,52 17,28 18,52 17,40 17,28 17,40 18,68 17,96 18,68 18,24 17,96 18,24 19,60 17,64 19,60 18,24 17,64 18,24 20,62 20,12 20,62 20,20 2,26 3,20 4,12 3,91 4,12 3,32 3,91 3,32 2,11 1,32 2,11 1,94 1,32 1,94 2,37 3,50 2,37 4,01 3,50 4,01 1,79 1,42 1,79 2,60 1,42 2,60 3,42 3,12 3,42 3,56 3,12 3,56 2,56 1,60 2,56 2,59 1,60 2,59 2,51 2,81 2,51 2,43 2,81 2,43 1,45 1,10 1,45 1,80 1,10 1,80 2,35 3,09 2,35 2,81 3,09 2,81 1,94 1,39 1,94 1,69 8 0,04 3,005 0,101 0,231 0,926 1,60 0,307 0,581 1,611 0,111 1,48 2,231 0,139 1,976 0,051 – 0,12 1,20 0,397 0,531 – 0,139 0,890 9,573 0,003 2,589 0,012* 1,18 0,407 0,525 2,908 0,004** – 0,02 1,44 7,835 0,007 – 0,046 5,466 0,022 2,106 0,039* 2,66 8,007 0,006 4,037 0,000** 1,22 0,166 0,685 1,294 0,200 – 0,56 1,32 1,532 0,220 – 1,364 0,177 6,871 0,010 2,959 0,004** 1,88 9,618 0,003 3,365 0,001** 1,32 0,039 0,845 1,620 0,110 2,88 0,686 0,409 4,123 0,000** 1,56 0,907 0,344 1,860 0,067 0,62 5,602 0,021 1,107 0,272 – 0,06 – 0,68 1,24 0,023 0,880 – 0,116 0,908 4,191 0,044 – 1,120 0,234 0,036 0,850 1,939 0,056 1,12 0,001 0,982 2,266 0,026* –0,12 0,014 0,829 –0,191 0,849 0,72 1,323 0,254 2,187 0,032* 0,44 3,647 0,059 1,346 0,182 – 0,28 1,96 7,390 0,008 – 0,712 0,479 2,679 0,106 3,058 0,003** 1,36 1,488 0,225 2,626 0,010** – 0,60 0,50 0,340 0,562 – 0,843 0,402 3,355 0,071 1,149 0,254 0,42 1,278 0,261 1,155 0,251 0,963 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo suburban 25 20,12 1,39 rural 50 20,20 1,69 NOR 36-42 (I) urban50 21,04 6,23 suburban 25 17,56 3,12 urban50 21,04 6,23 rural 50 18,50 4,61 suburban 25 17,56 3,12 rural 50 18,50 4,61 NOR 36-42 (F) urban50 31,04 1,95 suburban 25 30,84 1,07 urban50 31,04 1,95 rural 50 27,84 3,35 suburban 25 30,84 1,07 rural 50 27,84 3,35 RID 01-42 (I) urban50 157,8 19,7 suburban 25 146,0 15,6 urban50 157,8 19,7 rural 50 146,2 15,7 suburban 25 146,0 15,6 rural 50 146,2 15,7 RID 01-42 (F) urban50 173,8 10,2 suburban 25 171,3 6,99 urban50 173,8 10,2 rural 50 167,5 10,4 suburban 25 171,3 6,99 rural 50 167,5 10,4 Note: RID (01-42) – parental instructions to the child ** - level of significance of 0,01 * - level of significance of 0,05 – 0,08 3,48 0,860 0,357 – 0,204 13,93 0,000 2,625 0,011* 2,54 6,779 0,011 2,316 0,023* – 0,94 0,20 2,654 0,108 – 0,918 0,362 3,532 0,064 0,478 0,634 3,20 3,583 0,061 5,836 0,000** 3,00 6,442 0,013 4,352 0,000** 11,8 3,259 0,075 2,606 0,011* 11,6 3,281 0,073 3,271 0,001** – 0,12 2,50 0,209 0,649 – 0,031 0,975 1,627 0,206 1,097 0,276 6,32 0,098 0,755 3,053 0,003** 3,82 0,773 0,382 1,650 0,103 0,839 Determining the significance of difference between the parental instructions to child, with respect to school children attend (urban, rural and suburban, i.e. educational institution location) Table 2 shows that there are significant differences of the initial condition related to attributing significance to instructions to child, emotional support for the child, the frequency of instructions to the child, the level of competence of the parents for instructions and parental instruction to the child (cumulative) before the experimental treatment, in favor of the city (urban) schools, compared to suburban and rural schools Also, it was found that there were statistically significant differences in the final condition for reducing the complexity of the task, attributing importance to instructions to child, frequency of instructions to a child, the level of competence of the parents for instructions and parental instruction to the child (cumulative) before the experimental treatment, in favor of the city (urban) schools, compared to suburban and rural schools. This significance is not present in the context of metacognitive instructions which shows that parents do not differ significantly in this subtest. Significance can be found in reducing the complexity of the tasks in the favor of the city (urban) schools, and the reasons for this are related to better understanding and understanding of these issues by parents living in the urban areas as opposed to the parents from the country. Analysis of the arithmetic means shows that there has also been progress with parents in suburban and rural schools, but it is not statistically significant. As for the subtests Attributing significance to the instructions it shows a statistically significant difference between parents from urban area versus those from rural ones in both 9 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo initial and final study, which means that the parents from urban areas attribute greater importance to instruction in relation to the parents from the rural areas. The reason for this lies in the fact that the parents from the urban areas are more motivated for their child to succeed than parents from the rural areas. The lack of statistically significant differences between the parents from urban and rural areas (regardless of location of the school) with regard to the emotional support to a child can be explained by the fact that parents still value cognitive achievement of children above all other competencies , even emotional ones. Frequency of instructions was also present with parents of all schools and there were no statistically significant differences except between urban and rural parents in the initial study, and urban and suburban parents in final study. Regarding monitoring progress there is no statistically significant change from the initial to the final state of the study which suggests that parents of all schools paid great attention to this aspect of helping children learning. The biggest statistical difference was between parents of urban and rural schools in the subtest Parents’ instruction capability level. This shift indicates that parents in urban schools are on the more advanced level in relation to the parents of suburban and rural schools. The reasons behind this are greater motivation to learn demonstrated by parents from urban schools. The analysis of parental instruction to children in general shows a statistically significant difference in the initial study of the parents from urban areas as compared to parents from suburban and rural areas, and in the final study between parents from urban and rural areas which suggests that parents from urban areas invest more and are more willing to help their children learning. The third hypothesis is that there is a positive correlation between parental instructions to educational and economic status of the parents. Results are given in Tables 3 and 4. The results show that the experimental treatment did not have positive effect on the association of parental instructions to child and their level of education, as well as economic status of parents, compared before and after the experimental treatment. Analysis of the results of linear regression Table 3, prior to the experimental treatment, indicates that the overall regression is statistically significant at the 0.01 level (Sig). It was demonstrated by univariate analysis of variance (ANOVA short). The only conclusion that can be drawn is that we should reject the basic hypothesis, i.e. the assumption that the differences between parental instructions to child and educational status of parents does not exist. The coefficient of determination (R2) and multiple correlations (R) show that the variance of parental instructions to child (before experimental treatment) is possible to explain by 24 percent by educational status of their parents, because their correlation is 0.49. Therefore, it can be argued that parental instructions to child can be predict based on educational status of parents. Only one regression (before experimental treatment) was statistically significant for the parent’s instructions to child and to Parent's instruction capability level, given the educational status of the parents. Parental instructions to child (RID-summary) in the initial state confirm that it is in general statistically significant in explaining the educational status of parents. Table 3:Correlation between parental instructions to a child with their educational status before and after the experimental treatment Ri =0,49 - Rf=0,40 R2i=0,24 - R2f=0,16 F-ratio =5,15/3,20 10 Significance F =0,00/0,01 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Br. 1. Parameters Metacognitive instruction context (i) Metacognitive instruction context (f) 2. Task complexity reduction (i) Task complexity reduction (f) 3. Attaching significance to the instruction (i) Attaching significance to the instruction (f) 4. Emotional support to a child (i) Emotional support to a child (f) 5. Instruction frequency (i) Instruction frequency (f) 6. Child’s improvement monitoring (i) Child’s improvement monitoring (f) 7. Parents’ instruction capability level (i) Parents’ instruction capability level (f) ∑ Parental instruction to child (sum-i) Parental instruction to child (sum-f) Note: ** - level of significance from 0,01 * - level of significance from 0,05 Beta 0,02 -0,01 -0,04 0,22 0,14 -0,07 0,05 -0,31 0,01 0,03 0,04 0,07 0,39 0,32 0,41 0,14 B 0,01 -0,01 -0,01 0,13 0,05 -0,04 0,02 -0,15 0,01 0,02 0,02 0,04 0,08 0,13 0,05 0,01 t-time 0,149 -0,131 -0,284 2,083 1,498 -0,680 0,481 -2,628 0,107 0,315 0,419 0,682 4,236 3,029 4,925 1,539 Signif. t 0,882 0,896 0,777 0,039* 0,137 0,498 0,632 0,010** 0,915 0,754 0,676 0,497 0,000** 0,003** 0,000** 0,126 Analysis of the results of linear regression Table 3, after the experimental treatment, indicates that the overall regression is statistically significant at the 0.01 level (Sig). It was demonstrated by univariate analysis of variance (ANOVA Short), and the only conclusion that can be drawn is that we should reject the basic hypothesis, i.e. the assumption that the differences between parental instructions to child and educational status of parents does not exist .The coefficient of determination (R2) and multiple correlations (R) show that the variance of parental instructions to child (before experimental treatment) is possible to explain by 24 percent by educational status of their parents, because their correlation is 0.40. Therefore, it can be argued that parental instructions to child can be predicted based on educational status of parents. Three regressions are (after experimental treatment) determined to be statistically significant for parental instructions to child: Parent's instruction capability level and Task complexity reduction, with respect to the educational status of parents whereas emotional support to a child bears negative value. This negative value indicates the fact that we are dealing with tendencies of opposite directions, which means that when one tendency is growing (educational status of parents) the other decreases (Emotional support to a child), and vice versa. Parental instructions to child (RID-summary) in the final state confirm the fact that it is not generally statistically significant in explaining the educational status of parents. Analysis of the results of linear regression Table 4 (prior to the experimental treatment) indicates that the overall regression is not statistically significant at the level of 0.05 (Sig). It is demonstrated by univariate analysis of variance (ANOVA Short), with the only conclusion that that we cannot reject the basic hypothesis, i.e. the assumption that the differences between parental instructions to child and economic status of parents does not exist. The coefficient of determination (R2) and multiple correlations (R) show that the variance of parental instructions to child (before experimental treatment) is possible to explain by only 10 percent by the economic status of parents, because their correlation is 0.32. Therefore, it cannot be argued that parental instructions to child can be predicted based on economic status of the parents. Only one regression (before experimental treatment) was statistically significant for the Parental instructions to child and to Parent's instruction capability level, given the economic status of the parents. Parental instructions to child (RID-summary) in the initial state indicate that it is in general statistically significant in explaining the economic status of the parents. 11 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Table 4: Correlation between parental instructions to a child with their economic status before and after the experimental treatment Ri =0,32 - Rf=0,20 R2i=0,10 - R2f=0,04 Br. Parameters 1. Metacognitive instruction context (i) Metacognitive instruction context (f) 2. Task complexity reduction (i) Task complexity reduction (f) 3. Attaching significance to the instruction (i) Attaching significance to the instruction (f) 4. Emotional support to a child (i) Emotional support to a child (f) 5. Instruction frequency (i) Instruction frequency (f) 6. Child’s improvement monitoring (i) Child’s improvement monitoring (f) 7. Parents’ instruction capability level (i) Parents’ instruction capability level (f) ∑ Parental instruction to child (sum-i) Parental instruction to child (sum-f) Note: ** - level of significance from 0,01 * - level of significance from 0,05 F-ratio =1,93/0,69 Beta B 0,02 0,01 0,01 0,00 -0,03 -0,01 0,03 0,02 -0,14 -0,05 -0,11 -0,07 0,19 0,07 0,15 0,09 -0,20 -0,11 -0,07 -0,06 0,07 0,03 -0,03 -0,02 0,23 0,06 0,12 0,06 0,18 0,01 0,11 0,01 Signif. F =0,07/0,68 t-time Signif. t 0,172 0,863 0,083 0,934 -0,242 0,809 0,274 0,784 -1,333 0,185 -1,034 0,303 1,724 0,087 1,173 0,243 -1,934 0,055 -0,698 0,487 0,646 0,520 -0,285 0,776 2,290 0,024* 1,035 0,303 2,087 0,039* 1,230 0,221 Analysis of the results of linear regression Table 4 (prior to the experimental treatment) indicates that the overall regression is not statistically significant at the level of 0.05 (Sig). It is demonstrated by univariate analysis of variance (ANOVA Short), with the only conclusion that that we cannot reject the basic hypothesis, i.e. the assumption that the differences between parental instructions to child and economic status of parents does not exist. The coefficient of determination (R2) and multiple correlations (R) show that the variance of parental instructions to child (after experimental treatment) is possible to explain by only 4 percent by the economic status of parents, because their correlation is 0.20. Therefore, it can be argued that parental instructions to child cannot be predicted based on economic status of the parents. Not a single regression (after experimental treatment) was statistically significant for the Parental instructions to child and to Parent's instruction capability level, given the economic status of the parents. Parental instructions to child (RID-summary) in the initial state indicate that it is not in general statistically significant in explaining the economic status of the parents. The fourth hypothesis is that there is a correlation between parental instructions to child and age of parents. The findings relevant to this correlation association are given in Table 5. They demonstrate partial correlation between parental instructions to child and parents’ age, as a result of the influence of experimental treatment. Analysis of the results of linear regression Table 5 (prior to the experimental treatment) indicates that the overall regression is not statistically significant at the level of 0.05 (Sig).It is demonstrated by univariate analysis of variance (ANOVA Short), with the only conclusion that that we cannot reject the basic hypothesis, i.e. the assumption that the differences between parental instructions to child and age of parents does not exist. The coefficient of determination (R2) and multiple correlations (R) show that the variance of parental instructions to child (before experimental treatment) is possible to explain by 6 percent by the economic status of parents, because their correlation is 0.24. Therefore, it 12 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo cannot be argued that parental instructions to child can be predicted based on the age of the parents. Not a single regression (before experimental treatment) was statistically significant for the Parental instructions to child, given the age of the parents. Parental instructions to child (RID-summary) in the initial state indicate that it is not in general statistically significant in explaining the age of the parents. Conclusion Parental instruction in learning process significantly affects the overall success a child achieves at school. This form of assistance depends on the parents, as well as the children. Their motivation is a key factor for instructions to be successful. The process of parental instruction can be implemented by using various methods, usually by empathy, helping children to reduce the amount of effort and energy needed to master the matter,emotional support, supervising what is being learned as well as how, and creating the environment to raise child’s awareness or metacognition on what is being learned. These are all the methods that are largely unknown to parents. The workshops that were organized from September to December 2008 sparked the interest of the parents, and also enabled them to acquire basic pedagogical tools on how to help their children. The results of the research show that there is statistically significant difference in parental instruction in five out of seven subtests: complexity reduction of the school matter being studied, parents paying significance to the instruction, instruction frequency, monitoring child’s improvement, parents’ instruction level and capability. A positive level of the experimental program has not been recognized in metacognitive context of the instructions and parents’ emotional support to their children . The experimental program has not given positive results in all of the subtests with regards to the school environment, although the parents from city schools achieved a certain progress compared to parents from suburban or rural schools. The conclusion that can be reached from the results obtained is that an improvement in parental instruction in learning process can be achieved by working with parents. Emotional support and metacognition require more time, seeing that the former clashes with the traditional communication which does not recognize emotions, while the latter is something which is largely unknown to the parents and requires more time to be improved. Reference Anić, Š., Klaić, N., Domović, Ţ. ( 2007). Riječnik stranih riječi. Zagreb: Sani-plus. Bakovljev,M. (1995). Statistika u pedagoškim istraţivanjiima. Beograd: Naučna knjiga CURO, Učiteljski fakultet. Brkić,M. iKundačina,M. (2003). Statistika u istraţivanju vaspitanja i obrazovanja. MostarSarajevo: Educa d.o.o. Sarajevo. 13 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Brown, A. L. (1987): Metacognition, excutive control, self-regulation and other more mysterious mechanisms. Weinert, F. E. & Kluwe, R. H. (Eds) Distributed cognitions: Psychological and educational considerations, Cambridge University Press, pp. 188227. Demirović, M. i Kukić, S. (2003). Metodologija naučnoistraţivačkog rada društvenih nauka. Bihać- Mostar: Pravni fakultet univerziteta u Bihaću i Ekonomski fakultetsveučilišta uMostaru. Došen-Dobud, A. ( 2001). Predškola. Vodič za voditelje i roditelje. Zagreb: Alinea. Flavell, J. (1979). Metacognition and cognitive monitoring, a new area of cognitive developmentalinquiry, American Psychologist, Vol. 34, No. 10, 906–911. Flavell, J. H. (1976). Metacognition Aspects ofProblem Solving. In Resnick, L. (Ed.), TheNature ofIntelligence (str. 231-236). Hillsdale, W.: Lawrence Erlbaum Associates. Fortunato, 1., Hecht, D., Tittle, C., Alvarez, L. (1991). Metacognition and problem solving, Arithmetic Teacher, 39(4), pp. 38-40. Handrin– Goakin, S. (1999). Roditeljstvo za neupućene. Beograd: Mikro knjiga i IDG Books Worldwide Inc. Ljubetić, M. (1998). Samoprocjena kompetentnosti roditelja za roditeljsku ulogu. Napredak br. 139, str, 290–297 Mandić, P.(1980). Saradnja porodice i škole. Sarajevo: Svjetlost. Muţić, V.(2004). Uvod u metodologiju istraţivanja i obrazovanja. Zagreb: Educa. Raboteg-Šarić, Z. (1993). Empatija, moralno rasuđivanje i različiti oblici prosocijalnog ponašanja. Zagreb: Sveučilište u Zagrebu-Filozofski fakultet. Suzić, N. (2006). Traţenje pomoći kao kognitivna strategija učenika. Nastava i vaspitanje br. 3, str. 239-257. Na sajtu: http://www.suzicnenad.com/knjige.html. Očitano: 24.10.2008. Suzić, N.(2005). Pedagogija za XXI vijek. Banja Luka: TT–CentarRepublike Srpske i UNICEF Kancelarija u Banjaluci. Termiz, Dţ. (2003). Metodologija društvenih nauka. Sarajevo: Svjetlost. 14 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1605 Title A name given to the resource Efficiency of Experimental Program for the Parental Instruction for Children Author Author SELIMOVIĆ, Hazim SELIMOVIĆ, Zehrina Abstract A summary of the resource. Parental instruction in terms of helping children with school activities is very important. For this reason, this paper dealt with theoretical and empirical segment of this problem. In the theoretical part, the concept of parental instruction was defined as well as its importance for the success of the child, the commitment of children to such assistance and the aspects of parental instructions. The objective of study was to investigate the level of parents’ ability to provide instruction to children with school activities and learning. For this purpose, an experimental method was applied (experiment with initial and final measurements with one group). In order to examine the effect of experimental treatment the instrument on parental instruction to children was used. The obtained results provided significant findings that lead us to the conclusion that parents' education can improve their instructions to children in school learning. Keywords: Parental Instruction, Parents, Students. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 978-9958-834-23-3 https://omeka.ibu.edu.ba/files/original/f4a266bb865a3e92e880a32ae9e34977.docx 740a40f683a5437c89ddaaa1086b87e7 https://omeka.ibu.edu.ba/files/original/adff77be9f1deb25f80112016b842056.pdf 0dc96fb65fdd3af006f2764006a25476 PDF Text Text International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Optimization Models Performances for Transportation Cost Minimization Fevzi Serkan Ozdemir OndokuzMayıs University, Samsun, Turkey fsozdemir@gmail.com Ahmet Ergulen Erciyes University, Kayseri, Turkey aergulen@gmail.com Abstract Transportation is the foremost activity at every stage of logistics (supply, production and distribution stages). It constitutes the huge part of logistics, because of its relativesize intotallogistics costs. The rate of the transportation in all logistics activities is approximately around 50-65 percent, however, that might be different sector by sector. Transportation is a term which can be defined as the physical movement of inventories such as raw materials, semi-finished goods and finished goods from one location to another. Shipping of products into firm storage after they have bought from suppliers, carrying of the storage items to manufacturing, and delivery of the manufactured items to warehouses or dealers to be sold, and delivery of the sold products to customers are some sub-activities of transportation.In order to achieve transportation with minimal cost, first of all the optimal transportation alternatives should be implied. In the literature there are many researches which confirm this statement. But the applied technique for decision problem is as important as transportation alternatives. For determining of optimal solution there are certain models. The aim of this study is comparing the performances (possible cost savings) of employed models (linear programming [LP], goal programming [GP], and fuzzy logic based integer linear programming [FLIP]) in the case analyses. Keywords: Optimization models, optimization of transportation activities, integer linear programming, goal programming, fuzzy logic. Introduction Due to the fact that developing communication facilities, rapidly changing technologies and constantly increasing competitive pressure in the economy have encouraged the managers to be in the triangle of short time, high quality and low cost. Managers have had to search possible solutions which could provide higher added value. Also there has been a decrease in the numbers of current alternatives for the firm value maximization which is the prior aim for the businesses because of the changing environmental conditions. Providing higher added value has started not to be managers’ price and selling policies any more. It makes managers to be more concentrated on their production and cost policies. Controlling the costs of value drivers, and removing the ones which don’t create value become the basic principle for the managers, whom search for optimal solutions for certain decision problems. In this context, transportation costs (especially with respect to physical distrubition) have begun to be prominent inception for the managers. In order to obtain cost minimization for transportation, optimum decision alternative should be taken. In other words the question of “what should be the proportional rate of 1 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo using internal and external sources for transportation to make the cost minimum?” can be answered by only optimization. In literature there are many case studies which prove that using quantitative and nonquantitative optimization techniques provide increase of efficiency in the conducted activities (Chen and Wang (1997); Shih (1997); Ulucan and Tarım (1997); Kim and Kim (2000); Balakrishnan, Natarajan and Pangburn (2000); Ruiz et al. (2003); Ergulen, Kazan and Kaplan (2005); Chu (2005); Ergulen (2005); Olsson and Lohmander (2005); Gül and Elevli (2006); Ergulen and Kazan (2007); Özdemir (2007); Özdemir and Ergülen (2012). The aim of this study is not only comparing the performances (possible cost savings) of employed models (linear programming [LP], goal programming [GP], and fuzzy logic based integer linear programming [FLIP]) in the case analysis. Transportation & Decision Alternatives Transportation consists of fetching the products to company warehouses after being purchased from its suppliers, from warehouses to production phase, dispatching finished goods to the distributors or vendors for sale, or delivery of them to the customers. Moreover transporting of the consumed products for recycling should be also considered as a transportation activity. From this point of view, transportation is an immense activity distresses the managers about finding effective solution to transport the products from one location to another rapidly and safely with regards to following parameters: “via which vehicles?”, “how?”, “by whom?” and “for how much?” Since these parameters are important in determining the transportation cost (Kobu, 2003, p. 237), the managers deal with evaluating the available options and choosing the most appropriate alternative or combination. The main objective of managers is transporting the right products to the market at the right time, at the right place. Otherwise customer dissatisfaction and increasing of transportation costs are become inevitable. But, the more transporting service is fast, the more transportion cost must be faced. Basically, transportation costs consist of expenses related to the product transfered between the points of supply and demand. And in order to obtain efficient transportation results, managers should determine an optimal solution among the parameters such as the size and/or weight of the transported products, the capacity of the transportation vehicle under the given set of conditions (Gökçen, 2003, p. 66-67). Transporting activity is divided into two as inbound and outbound transportation, in terms of place it is held. Inbound transportation; implies transporting the products from suppliers to storage. Outbound transportation; implies transporting the finished products from storages to distributers, vendors, or to the customers. And there may be three options available for both transportation phases. These are as follows (Özdemir, 2007, p. 41): First option is using rented vehicles as well as performing transporting activities through a unit which formed within the organization and a fleet of vehichles which are bought by the firm. In that case it is obvious that costs which arise as depreciation or rent expenses due to this option can ratherly be qualified as fixed costs. The other option is procurement of transportation service from third parties such as courier companies, subcontractor firms or transporting cooperatives. The firm contacts with them when service demand occurs. This demand can be covered by one of them which meet the 2 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo firm’s requirements related to intended level of speed and quality with a favorable price. In that case a particular transportation cost cannot be expressed. But they can usually know what transporting rate for per unit (e.g. km.kg/TL or etc.) is, and it allows the firm to determine the costs of transportation depending on amount of freight to be transported. As the firm chose this option instead of the first option, depreciation and/or rent expenses become qualified as variable costs. The final option is procurement of transportation service from the organizations which are specialized in transportation. This is called as “Outsourcing” in the literature. Outsourcing is a good way for achieving resource efficiency through having required activities performed by experts in a “strategic partnership”. Moreover the firm that demand logistics support can focus more on its core business activities when it uses outsources rather than insources. As the firm chose third option, like in the second, expenses such as depreciation and/or rent become qualified as variable costs too. But it affects the behaviors of transportation cost. It means when transporting activities are held by the firm’s own vehicles, the proportion of the fixed cost -like depreciation- in total cost would be high. On the contrary, when transporting activities are held by rented vehicles from the suppliers, courier companies or expert organizations, this makes the proportion of variable costs in total cost would be higher. Nutshell, whatever the transporting choice is, it is certain that the firm bears cost. Firms, which use their own resources for transportation, bear 15-20 % higher costs than firms which perform transportation activities through outsourcing (Hacırüstemoğlu and Şakrak, 2002, p. 96). Also managing of outsourcing variable costs is more rational rather than managing of fixed investment costs of the resources when transportation has been held by the firm itself. Actually the relevant variable costs are manageable, while the fixed costs are accepted unmanageable due to the fact that they are also sunk costs. This means from the point of managerial accounting view that managers have a chance for decision making for transporting alternatives, it is really important to decide on whether using the firm’s own vehicles or making a deal with courier firms or outsourcers. Procuring of transporting services from expert organization gives the firm an opportunity to dedicate their available funds and time for their core business activity. Secondly it also gives the firm another opportunity to focus its own activities and become more productive and profitable. Additionally for estimating transportation cost of the product being transported, the qualitative attributes (whether hazardous, or not etc.) is as important as the quantitative attributes (its weight, dimensions, etc.). In this context, even if raw materials are less valuable than the goods, due to their dimensions, weights, variety, and so forth, their transportation cost per unit may have a significant proportion in total cost of the final product. How Transportation Activities to Be Optimized In terms of outputs, optimization is a practice which attempt to reach the most favorable and the best results under the given set of conditions (Bal, 1995, p. 1). In terms of inputs, optimization means finding the most effective alternative which makes the cost minimum or the profit maximum by making the idle capacity useable under the given constraints. 3 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo From the perspective of management, optimization is a technique which helps the managers to determine and select the most appropriate component(s) and to act on the purpose of profit maximization or cost minimization while they need to make decision. In this context, the optimization facilitates to determine the best plan related with a decision problem or constructed model. Optimization of transporting is also a type of decision problem which helps to reach the lowest transporting costs through making idle transporting capacity usable under the given constraints. This can be also used for reaching the best solutions for these problems followings: How will transportation be held? Whether by vehicles belongs to company or procurement of third parties, or etc.? Which combination of the vehicles and the size of the fleet should be used for transportation? How many hours at least are required to transport products? How many times transporting should be done to the regions? Which route should be followed? And which combination of the load capacity of the vehicles should be employed? The main determinants of decisional these decisions are the qualification of the product, anticipated speed, service quality of transporting and the balance between the load and the vehicles. Thus the logistic managers may apply optimization techniques in order to minimize the transportation costs considering these issues. The possible decision problems for the managers to decrease transportation cost through optimization can be listed as followings (Özdemir, 2007, p. 101): - Choosing the most appropriate transporting alternative, Determining the most appropriate storages (choosing the site of establishment in asense), Determining the most appropriate route, Minimizing vehicle usage inside the storage and the activities non-vehicle, Improving the loading durations and decreasing the labor usage on loading, Choosing the most appropriate packaging alternative with regard to storing and transportation. The number of the decision problems listed above can be increased. However the firm would try to optimize transportation can use one or more of them, it can be expressed that themost commonly usedof them is the choosing the most appropriate transporting alternative. Mathematically reaching a solution on transportation problem within a potential solution interval should not mean that this problem has been solved ideally. Even though transporting the whole product within a given time with different transporting combinations in different ways represents possible solutions, ideal solution is one of them makes the firm or activity efficient. This is called as optimal solution for the decision problem. And when the optimal solution is obtained, it can be expressed that maximum products are transported within the shortest time and by the lowest cost by means of the chosen combinations of the sources. The optimal combination for transporting is determined according to past experiences, but conditions which are determined under given variables and data may change over time and optimum solution is needed to be revised. From the point of considering the effects of the developments on the solution sets, optimization is not a permanent situation. 4 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Literature Review of Optimization Techniques for Transportation The positive effect of optimization on transportation cost can be revealed by comparing transportation costs and the freight counts to the regions before and after optimization. And it shows that if the firm could have applied the optimal distribution plan ex-ante, the transportation cost would be less than actual transportation cost. There are many empirical studies related to minimization of transportation costs which have employed various operational research techniques and/or computer software based on these techniques. These studies have been evaluating transportation problems which have different requirements and assumptions related to various subjects such as timing, distance, number of the transporter and the quantity of the product to be transported. In the most of these studies decision problems and the objectives have been modeled by using LP, integer linear programming [ILP] and complex integer linear programming, GP, and fuzzy logic based programming. Chen and Wang (1997), Shih (1997), Ulucan and Tarım (1997), Kim and Kim (2000), Balakrishnanet. al (2000), Ruiz et. al (2003), Ergulen et. al (2005), Chu (2005), Ergulen (2005), Olsson and Lohmander (2005), Gül and Elevli (2006), Ergulen and Kazan (2007), Özdemir (2007), Özdemir and Ergülen (2012) can be listed as the instances of these studies in literature. LP is a mathematical modeling developed by the Russian economist Leonid Kantorovich and the US economist C. Koopmans, on the basis of the work of the Russian mathematician Andrei Nikolaevich Kolmogorov (Tamiz and Jones, 1997, p. 29). LP is a specific case of mathematical programming used for determining a way to achieve the best outcome (such as maximum profit or lowest cost) in a given mathematical model for some list of requirements represented as linear relationships (“Linear Programming”, 2013). There are many academicians who were rather attracted by LP. They have used it successfully for many industries such as transportation, energy, telecommunication, communication (Stapleton et al. 2003, p. 54). Sometimes decision problems require integer solutions. In that case in order to create optimum integer solutions to decision problems, a special form of LP should be employed which is called as ILP (Lee, 1988, p. 174). In these models the entire or some of the variables are integer values and the limiters of those consist of linear inequalities, and objective functions consist of linear equations. GP is a different technique used for minimizing transportation cost. In the cases that there are many goals under certain conditions, this technique used for decision making (Levin et al, 1989, p. 631). The algorithm of goal programming does not endeavor to optimize a certain goal as LP. Instead of this it endeavors to minimize the deviations from the goals (Tamiz and Jones, 1997, p. 29).There are certain studies which employed GP for different decisions. Lee and Roy (1974) exploit GP for doing a case analysis for marketing decisions. Chen and Wang (1997) employ it for integrated steel production and distribution planning, and Balakrishnanet. al (2000) use it for optimizing delivery fees for a network of distributors. Another important technique for minimizing transportation costs is FLIP. Theoretically FLIP model provides the best solution the highest amount of savings among all other models due to usage of values not only (0) and (1) values like under classical logic, but also values between (0) and (1). For example in fuzzy logic, distance as a variable is not addressed only far and close, but also how far and how close. There are not many 5 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo examples that FLIP model is used for optimization. Therefore beside the studies used FLIP models, the studies about only fuzzy logic are also as followings: Teodorovic and Vukadinovic (1998) use fuzzy logic rules for vehicle guidance, and to control signalized intersections, and urban highways. Kelsey and Bissets (1993) use fuzzy sets in many classic operational research problems in mathematical models. Chanas (1982) use fuzzy sets in most of classic mathematical models for operational research. Gazdik (1983) do a network planning with fuzzy sets and minimizing the costs by the help of network usage. Kamburowski (1983) use fuzzy sets for activity timing restraint in critical road analysis. Kelley (1961) use fuzzy as a mathematical based approach in critical road planning and programming. Lootsma (1989) use fuzzy models for network-planning based on stochastic and fuzzy models of the activity durations. There are some other studies such as: fuzzy distribution application based project management (Mon et. al, 1995), range of activity durations at PERT (Golenko-Ginsburg, 1988), describing expected values (Shipley et. al, 1996) and analyzing the change of cost via fuzzy set theory (Zebda, 1984). Özdemir and Ergülen (2012) have compared the ILP and FLIP models performances by using income statements. They have also evaluated the impacts of these two models on the firm’s financial ratios which are specified as a tool of measuring performance of the case firm in terms of financial ratios 1. Case Analysis The firm on the case analysis is from Turkey and it is running in food sector. It distributes the products from the city of Adana, where manufacturing is done, to the dealers in the certain cities of Turkey. These are as followings: Diyarbakır, Erzurum, Hatay, Kastamonu, Malatya, Mardin, Mersin, Samsun, Sivas, Tokat and Trabzon. In determining the actual distribution cost, actual transporting costs of per unit weight (kilograms) are used. Actual transporting costs of per unit kilograms are fixed by the agreement between the firm and the sub-contractors. According to agreement, prices start with January prices but the sub-contractors give a 7.5 % rise to the agreement prices at the following months March, June, July, August and November. This shows that actual transporting prices are fixed. The case firm distributes its products by using only 13 tones-capacity vehicles, and the total amount of loading is 26,165 tones which have been transported through 2,218 trips. The actual cost can be calculated by multiplying the load amounts delivered to the regions with actual freight counts. In that case the total actual distribution cost of the firm has been calculated as 447,547,099-TL. Table 1: Available vehicle types, numbers and capacities 1 Vehicles types I. Type II. Type III. Type Carrying Capacity 13 Tonnes 20 Tonnes 25 Tonnes Number of Vehicles 42 Unit 24 Unit 9 Unit Özdemir and Ergülen (2012) have used the rest part of the same firm’s data and they have compared just ILP and FLIP models. Moreover the cities from Turkey the case firm transport its products are as followings; Afyon, Ankara, Antalya, Balıkesir, Burdur, Bursa, Edirne, Eskiş ehir, İstanbul, İzmir, Kayseri, Kırşehir, Konya. 6 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Typically if the firm had had different loaded vehicle capacities as 20 and 25 tones besides 13 tones ex-ante, actual transportation costs could have been less than the cost under the given actual conditions. Therefore the case analysis has been designed to search in the case of the firm could run 24 unit 20 tones, and 9 unit 25 tones vehicles as well as 42 unit 13 tones capacity vehicles in the actual distribution plan, and has been intended to reveal how much savings could be provided by the certain models below. Naive integer linear programming (ILP) model The ILP model is a mathematical optimization or feasibility program in which some or all of the variables are restricted to be integers. ILP model is a kind of decision model which has decision variables, parameters, limiters and objective functions. Symbols which are used in a naive ILP model are given below: i m J n Type of vehicles which are used in distribution(i = 1, 2, ..., m) Number of the usable vehicle types Distribution to the region (j = 1, 2, ...., n) Number of the regions The identified objective function for ILP model is given below: m n Z m i n  (d i jX i j) i 1 j 1 (1) The decision variable at the canonical form of ILP models can be expressed as followings: X1j : Essential trip count to the j-th region with the first type of vehicle, X2j :Essential trip trip count to the j-th region with the second type of vehicle, X3j : Essential trip count to the j-th region with the third type of vehicle. ILP decision models also have the parameters in the objective function called as coefficient. It is symbolized as d ij and represents the unit cost of one trip which is done by the i-th type vehicle to the j-thjone. Also there are other parameters which do not exist in the general pattern of the ILP model. They exist in limits and they should be identified also. They can be divided into two groups: I) Parameters for time limiters and II) Parameters for load limiters. Parameters for time limiters are represented as a ij and bi . The a ij parameter represents the time of the trip which is done by the i-th type of vehicle to the j-thjone. And the bi parameterrepresents the total essential trip time which is done by the i-th type vehicle in one year2. 2 For determining the trip time, there are two important drivers. One of them is the distance of regions to city of Adana in where the headquarters running and second one is the time limit in a day for drivers in Turkey. That might be different country by country but in Turkey legal arrangements says “drivers can drive five hours continuously in one day and after 5 hours they have to have a rest. By this way the total driving time must not exceed 9 hours according to current Highway Traffic Law in Turkey. Therefore while the estimates are calculated, it is assumed that there is enough number of drivers on the vehicles. 7 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo In that case the limiter of trip time is as below: n  (a j 1 ij X i j )  bi (2) Parameters in load limit are represented as f ij and h j . The f ij parameter represents the load of the trip which is done by the i-th type vehicle to the j-thjone. And the h j parameterrepresents the total amount of the load demand from the regions. In the formulation of load limits, the trips of the i-th type vehicle to the j-th region is guaranteed sufficient counts of trips which should meet the total amount of the load demand from the regions. In that case limiter of load is as below: m f i 1 ij X ij  hj (3) Finallythe limit of being positive and integer meansthatdecision parameters must be greater than zero and must be an integer in integer linear programming models. For this reason the limit of being positive and integer is integrated in model also as following: X i j  0 and Xi j  Z (4) Goal programming (GP) model The identified objective function for GP model is given below: n Z min  W j Pk (d i  d i ) i 1 i k j (5) Type of vehicles which are used in distribution( i = 1, 2, ... , n ) Distribution to the region ( k = 1, 2, ...., m ) Number of vehicles types ( j = 1, 2, … , t ) Limits; n a x i  ei yi  d1  d1  bi (6) c x i  f i yi  d1  d1  b j (7) i 1 n i 1 i i n h x i 1 i i  d1  d1  bk (8) Limit of being positive; xi , yi , d1 , d1  0 (9) And the other important compulsory issue in the same legal arrangement is that heavy vehicles can have a maximum speed of 80 km/h apart from the residential unit. 8 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo The used variables for objective function are given below: W j : The value of its own weightinthe samepriorityobjectives Pk : Theprimaryobjective ofthe deviationof eachvariable d i : Negative deviation variableof the i-th objective d i : Positive deviation variableof the i-th objective The used variables for goal function are given below:  Variables in first limit x i : Trip count of the i-th vehicle y i : Trip count of the i-th rented vehicle a i : Trip cost of the i-th vehicle ei : Trip cost of the i-th rented vehicle bi : Goal level of the i-th  Variables in second limit: c i : Duration of a trip with the i-th vehicle f i : Duration of a trip with the i-th rented vehicle b j : The obtainable maximum trip time of the i-th vehicle  Variables in third limit: hi : The loadings value of the i.th vehicle bk : Total loadings need to transport to the k-th region Fuzzy logic based integer linear programming (FLIP) model The general ILP model of fuzzy distribution problem is different from naive ILP model. For this reason general form of model, decision parameters, and parameters related to model, limits and symbols used in model are re-identified as below. Objective function identified for FLIP model is given below: n m n n Z min   j   cij X ij   g i Yi j 1 i 1 j 1 i 1 i = 1, 2, ... , m (m:number of vehicle type) j = 1, 2, ... , n (n: region number) 9 (10) �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo In fuzzy logic based distribution model, parameters which “i” shows vehicle type and “j” shows regions to the vehicle trip in objective function are identified below:  j : j interval usage rate stated in the j-thregion request cij : Trip cost to the j-th region with the type of the i-thvehicle g i : 10-days rent amount of the i-thtype rental vehicle Decision parameters are identified below; X ij : Trip count to the j-thregion with the type of the i-th type of vehicle Yi : The i-thtype of vehicle which is included in vehicle fleet of company In the present instance parameters in ime limit are identified as a ij , bi and hi . a ij and bi have same meanings as ILP model; but the hi parameter should need to re-identify. It represents obtainable running time within 10-days with the i-th type of rented vehicle (in hours). In that case the time limiters can be expressed as below: n  (a j 1 ij X ij  hi Yi )  bi j = 1, 2, ... , n (11) (n: the number of regions) The parameters in load limits are considerably different than in ILP model. The parameters in this model are symbolized as, f i , Q j and d j . The f ij parameter represents load amount in tones of the i-th type vehicle to the j-thjone in one trip. Load limits of the distribution of goods; m f X i 1 i = 1, 2, ... , m i ij  d j  j  wkj  u jt  Q j (m: The number of vehicle type) ( j  k) ( j  t) J = 1, 2, ..., n (n:region number) k = 1, 2, ..., n (n: region number) t = 1, 2, ..., n (12) (13) (n: region number) f i : Tonnage value of the i-th capacity vehicle in trip Q j : Load amount requested by the j-thjone (in kg) d j : Negative deviation value in the j-thjone request Wkj : Load amount (in kg) which is allowed by one vehicle in the k-th region to the j-th region where is on the road of this vehicle 10 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo U jt : Load amount (in kg) which is allowed by one vehicle in the j-th region to the t-th region where is on the road of this vehicle In addition, if necessary, it is accepted that the demand amount of the j-th region can be decreased as d j , which is identified as the fuzzy part of the demand, is equal to allowed negative deviation in demand amount. The value of  j variable represents the usage rate of deviation. In order that  j variable take the value between 0 and 1, load limits have been set up. Mentioned aims below are located in this model in order of their priority. 1. Aim: Minimization of total transportation cost, 2. Aim: Minimization of used part of allowed negative deviation for demand capacity. The coefficients in objective function of variables that related the second priority objective is very lower value than coefficients in objective function of variables that related the first priority objective so coefficients of (  j ) parameters is accepted as 1. Another limit is related to usage rate of fuzzy interval.  j 1 j = 1,2, ... , n (14) (n: region number)  j : Usage rate of fuzzy interval of the j-th region’s request. Finally “The limit of being positive and integer” is valid limit in FLIP model. Decision parameters must be greater than (0) and must be an integer. For this reason, this limiter is included in model as mentioned below. X ij  0 and integer, Yi  0 and integer (15) (16) Wkj  0 , W jt  0 (17) 0  j 1 (18) The Assumptions and the Limitations of the Case Analysis This study aims to compare the employed mathematical models (ILP, GP, and FLIP) in terms of optimization performances on a real case hypothetically. But naturally, this study has a few limitations. The main limitation of this study is that only distribution process has been focused on, since there is no possibility to determine transporting costs during premanufacturing and manufacturing processes separately. Therefore while decision problem is stated, both processes costs’ have been assumed as fixed and just distribution process cost could be minimized through optimization. The other limitation is related with data of the analysis. The case firm actually has more cities to distribute its products than the areas 11 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo in analysis have been evaluated. Therefore some part of data from the case has been excluded for the analysis. There are some other assumptions and limitations stated in this research. In actual distribution, only 13 tonnage vehicles of sub-contractor employed for the firm and these vehicles are considered as they are homogenous in terms of their engines and models. In identifying actual costs, the agreement between the firm and sub-contractor has been considered and the statements reported by means of accounting information and documents have been utilized. In estimating of the achievable total trip times with the vehicles in a year, trips from region to headquarters of the firm is not important for the analysis due to the fact that transporting is run by sub-contractor. In taking into account of times of the trip for returning the vehicles to the headquarters, those are subtracted from the achievable total trip times. That is, in time limits not only trip time to the headquarters to the regions, but also the trip time from the regions to the headquarters is considered. Another limitation is related with the demand of the firms’ product. Typically demand is not fixed during the year, but in this kind of analysis the demand should be fixed for a particular duration. In this analysis the fixed demand duration is accepted 10-days. Therefore by performing optimization models, the optimization period has considered as every 10-days period of every month and 36 times optimization has been done. This means that accepted fix demand period is in the analysis is 10 days. Findings Transportation costs after cost savings which are obtained according to actual distribution costs and optimum distribution plans of business in application example are given in Table 2. Table 2. Actual and Programmed Distribution Costs and Provided Savings Actual ILP Based GP Based FLIP Based Estimated Total Cost 447,547,099 416,560,712 398,317,012 374,627,403 Estimated Trip Count (Amount) 2,218 1,505 1,340 1,055 Cost Savings --- 30,986,387 49,230,087 72,919,696 Cost Savings (Percent) --- 6.92 11.00 16.29 Trip Count Difference --- 713 878 1,163 Trip Count Savings (Percent) --- 32.15 39.59 52.43 According to Table-2, the followings findings can be expressed:  Estimated total cost could be minimum, if the firm had applied FLIP based optimization models. The estimated cost of transportation in this model is 374.6 million Turkish Liras and the estimated trip counts are 1,055. This means that this model provides 72.9 million Turkish Liras savings and this amount of savings is equal to 16.29% according to actual cost, however the rate of decreasing trip counts is 52.43%. 12 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo  In GP model the estimated cost of transportation is 398.3 million Turkish Liras and the estimated trip counts are 1,340. This means that this model provides 49.2 million Turkish Liras savings and this amount of savings is equal to 11.00% according to actual cost, however the rate of decreasing trip counts is 39.59%.  The model which ensures the least savings is ILP model. In this model the estimated cost of transportation is 416.6 million Turkish Liras and the estimated trip counts are 1,340. This means that this model provides 31.0 million Turkish Liras savings and this amount of savings is equal to 6.92% according to actual cost, however the rate of decreasing trip counts is 32.15%. Summary and Conclusions As a result of optimization, it is expected that the costs decrease or at least not to increase due to managers’ decisions depending on various decision alternatives beyond the company. However additional costs occasionally become inevitable up to decisions taken. Anticipating the effects of the decision on the firm is important in terms of in which margin managers behave flexible. In this context optimization models enable managers to determine this margin can be reached by various decision alternatives. In this hypothetical case analysis, it is determined to what extent transportation costs can be minimized through optimization models employed. According to findings, FLIP model is observed as the model provides the best solution and the highest amount of savings due to usage of values not only (0) and (1) values like under classical logic, but also values between (0) and (1). Despite that ILP, which can be referred to the most primitive optimization technique, is observed as it provides the least savings. And it is expressed that the GP model results are in the middle of these two models’ results. Additionally there is another important issue observed in the results. The rate of decreasing trip counts and the rate of cost savings are not the same in these three models. Actually when optimization models are set up perfectly, these rates might decrease parallel in each model. But for this, first of all, every way of the problem about the case should be able to formulize mathematically as limiters. It is theatrically possible, but also expensive and exhausting. Therefore, it should not miss out that it is normal due to the employed models’ superior and inferior attributes. It is concluded that the turnout between the rates of decreasing trip counts and the rates of cost savings have become bigger in order of the employed models (ILP, GP, and FLIP). In ILP model, the rate of decreasing trip counts is 32.15%, while the rate of cost savings is 6.92%, on the other hand the rate of decreasing trip counts in GP model is 39.59%, while the rate of cost savings is 11.00%. Also in FLIP model the rate of decreasing trip counts is 52.43%, while the rate of cost savings is 16.29%. Nevertheless these models show to what extent transportation costs can be minimized through for the managers and indicate their flexibility while they need to make any decision related to improve their transportation activity. 13 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo References Akdoğan, N., &Tenker, N. (2007).FinansalTablolarve Mali AnalizTeknikleri (11th ed.) [Financial Statementsand Financial Analysis Techniques]. Ankara: GaziKitabevi. Bal, H. (1995). OptimizasyonTeknikleri [Optimization Techniques]. GaziÜniversitesi Fen EdebiyatFakültesi, İstatistikBölümü. Ankara: Balakrishnan, A., Natarajan, H. 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Atatürk ÜniversitesiİktisadiveİdariBilimlerFakültesiDergisi, 19(1), 325-342. Ergülen A., Kazan, H.,& Kaplan, M. (2005). İşletmelerdeDağıtımSistemiMaliyetleriMinimizasyonuİçinÇözümModeli: Bir Firma Uygulaması. SelçukÜniversitesiSosyalBilimlerEnstitüsüDergisi, 13, 163172. Ergülen, A., & Kazan, H. (2007).TaşımacılıkSektörününİşleyişSüreci, BulanıkDağıtımProblemininTamsayılıDoğrusalProgramlama Model Denemesi.ZonguldakKaraelmasÜniversitesiSosyalBilimlerDergisi, 3(6), 109–125. Gazdik, I. (1983). Fuzzy Network Planning-FNET. IEEE Transactions on Reliability, 32(3), 304-313. Golenko-Ginzburg, D. (1988). On the Distribution of Activity Time in PERT. The Journal of Operational Research Society, 39(8), 767-771. Gökçen, G. (2003). LojistikMaliyetler. MuhasebeÖğretimÜyeleriBilimveDayanışmaVakfıDergisi, 5(3), 63-74. 14 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Gül, M. L., &Elevli, S. (2006). TamsayılıDoğrusalProgramlamaileBirÇimentoFabrikasınınNakliyeProblemininÇö zümü.ErciyesÜniversitesi Fen BilimleriEnstitüsüDergisi, 22(1), 229-241. Hacırüstemoğlu, R., &Şakrak, M. (2002).MaliyetMuhasebesindeGüncelYaklaşımlar [Contemporary Approaches in Cost Accounting]. İstanbul: TürkmenKitabevi. İslamoğlu, A. H. (2000).PazarlamaYönetimi (2nd ed.) [Marketing management]. İstanbul: Beta Yayınevi. Kamburowski, J. (1983). Fuzzy Activity Duration Times In Critical Path Analyses, International Symposium on Project Management (pp.194-199). New Delhi. Kelley, J. E. (1961). Critical Path Planning and Scheduling: Mathematical Basis. Operational Research, 9(3), 296-320. Kelsey, R. L., &Bisset, K. R. (1993).Simulation of trafficflowandcontrolusingfuzzyandconventionalmethods. In M. Jamshidi, N. Vadiee& T. J. Ross (Eds.), FuzzyLogicand Control: Software and Hardware Applications (pp.262-278). New Jersey: PrenticeHall. Kim, J-U., & Kim, Y-D.(2000). A Lagrangian Relaxation Approach to Multi-Period Inventory / Distribution Planning. Journal of the Operational Research Society, 51(3), 364-370. Kobu, B. (2003). ÜretimYönetimi (11th ed.) [Production Management]. İstanbul: AvcıolBasımYayın. KoçYalkın, Y. (1988). İşletmelerde Mali AnalizTeknikleri (6th ed.) [Financial Analysis Techniques for Businesses]. Ankara: SiyasalBilgilerFakültesiYayınları. Lee, S. M. (1988). Introduction to Management Science (2nd ed.). New York: Saunders College Publishing. Lee, S. M.,&Nicely, R. E. (1974). Goal Programming for Marketing Decisions: A Case Study. Journal of Marketing, 38(1), 24-32. Levin, R. I.,Rubin, D. S., Stinson, J. P., &Gardner, E. S. (1989). QuantiativeApproachesto Management (7th ed.). New York: McGraw-Hill Publishing Company. Linear Programming. (n.d.). RetrievedfromtheWikipediawebsite: http://en.wikipedia.org/wiki/Linear_programming Lootsma, F. A. (1989). Stochastic and fuzzy Pert. 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(2003).A Decision Support System for a Real Vehicle Routing Problem. European Journal of Operational Research, 153(3), 593-606. Shih, L. H. (1997). Planning of Fuel Coal Imports Using Mixed Integer Programming Method. International Journal of Production Economics, 51(3), 243-249. Shipley, M., De Korvin, A., & Omer, K. (1996). A Fuzzy Logic Approach for Determining Expected Values: A Project Management Application. Journal of Operational Research. Society, 47(4) 562-569. Stapleton, D.M., Hanna, J. B., &Markussen, D. (2003). Marketing Strategy Optimization: Using Linear Programming to Establish an Optimal Marketing Mixture. American Business Review, 21(2), 54-62. Şen, E. (2006). Kobi’lerinUluslararasıRekabetGüçleriniArtırmadaTedarikZinciriYönetimininÖne mi.Unpublished internal document, BaşbakanlıkDışTicaretMüsteşarlığıİhracatıGeliştirmeEtüdMerkezi. Tamiz, M.,&Jones, D. F. (1997). An Example of GoodModellingPractice in Goal Programming: MeansforOvercomingIncommensurability. LectureNotes in Economicsand Mathematical Systems 455, 29-37. Teodorovic, D. and Vukadinovic, K. (1998). Traffic Control And Transport Planning: A Fuzzy Sets And Neural Networks Approach, Massachusets: Kluwer Academic Publishers. Ulucan, A., &Tarım, Ş. A. (1997). Petrol ÜrünlerininDenizYoluileTaşınmasındaMaliyetMinimizasyonu: Petrol Ofisi A.Ş. İçinKarışıkTamsayıProgramlamaUygulaması. HacettepeÜniversitesiİktisadiveİdariBilimlerFakültesiDergisi, 15(1), 189-197. 16 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Ünalan, S. (2006).UluslararasıKarayoluYükTaşımacılığındaSeferMaliyetlerininOluşturulmas ı, YaklaşımDergisi, 164. Zebda, A. (1984). The Investigation of Cost Variances: A Fuzzy Set Theory Approach, Decision Science, 15(3), 359-388. 17 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1476 Title A name given to the resource Optimization Models Performances for Transportation Cost Minimization Author Author SERKAN OZDEMIR, Fevzi ERGULEN, Ahmet Abstract A summary of the resource. Transportation is the foremost activity at every stage of logistics (supply, production and distribution stages). It constitutes the huge part of logistics, because of its relative size in total logistics costs. That might be different sector by sector but the rate of the transportation in all logistics activities is approximately around 50-65 percent. Transportation is a term which can be defined as the physical movement of inventories such as raw materials, semi-finished goods and finished goods from one location to another. Shipping of products into firm storage after they have bought from suppliers, carrying of the storage items to manufacturing, and delivery of the manufactured items to warehouses or dealers to be sold, and delivery of the sold products to customers are some sub-activities of transportation. In order to achieve transportation with minimal cost, first of all the optimal transportation alternatives should be implied. In the literature there are many researches which confirm this statement. But the applied technique for decision problem is as important as transportation alternatives. For determining of optimal solution there are certain models. This study aims that to compare of those models performances on a real case hypothetically. Employed models are integer linear programming; goal programming and fuzzy-logic based linear programming. Keywords: Logistic Activities, Transportation Costs, Optimization. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 978-9958-834-23-3 https://omeka.ibu.edu.ba/files/original/ca658919d9d7eca49f2c7c6d3cfcd78f.pdf ab6da1e2f748f44f8e07213429aeed67 PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo Comparison of the Performance of Banks with Electre Method: The Case of ISE Bilal Şişman Afyon Kocatepe University, Afyonkarahisar, Turkey bilalsis@hotmail.com Mesut Doğan Afyon Kocatepe University, Afyonkarahisar, Turkey mesutdogan@aku.edu.tr The banking sector is one of the most important factor in terms of economic development for a country. Powerful and healthy banking sector is accepted as a precondition for sustainable economic growth. One of the most significant features of firms that survive in a competition environment is able to measure their performance periodically, develop available reactions and proactive solutions by evaluating the results. The purpose of this paper is to measure and compare of 10 bank’s financial performance with ELECTRE method for the period of 2005-2011 that traded İstanbul Stock Exchange (ISE) shares. Because of banks’ financial performance are effected lots of factors, too many criteria need to be considered for measuring them. So, in this paper, we use profitability, liquidity, leverage ratios and asset quality to measure. As a result, Finans bank takes place first and Şeker Bank gets last related to financial performance among the others Keywords: Electre Method, Financial Performance, Banking. 57 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1491 Title A name given to the resource Comparison of the Performance of Banks with Electre Method: The Case of ISE Author Author SISMAN, Bilal DOGAN, Mesut Abstract A summary of the resource. The banking sector is one of the most important factor in terms of economic development for a country. Powerful and healthy banking sector is accepted as a precondition for sustainable economic growth. One of the most significant features of firms that survive in a competition environment is able to measure their performance periodically, develop available reactions and proactive solutions by evaluating the results. The purpose of this paper is to measure and compare of 10 bank’s financial performance with ELECTRE method for the period of 2005-2011 that traded İstanbul Stock Exchange (ISE) shares. Because of banks’ financial performance are effected lots of factors, too many criteria need to be considered for measuring them. So, in this paper, we use profitability, liquidity, leverage ratios and asset quality to measure. As a result, Finans bank takes place first and Şeker Bank gets last related to financial performance among the others Keywords: Electre Method, Financial Performance, Banking. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2303-4564 https://omeka.ibu.edu.ba/files/original/0cbb60ad0f11e88653483ec1f7c7826f.pdf 63d2ff55d24d803fba35fc564c8b8f6c PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo A Comparison of Decision Making Models and Electricity Energy Demand Forecasting for Turkey Bilal Şişman Afyon Kocatepe University, Afyonkarahisar, Turkey bsisman@aku.edu.tr Mahmut Nevfel Elgün Afyon Kocatepe University, Afyonkarahisar, Turkey mahmutelgun@aku.edu.tr Energy is vital for industrialization and development countries like Turkey. Energy, particularly electricity, is essential for improving quality of live and developing as social and economic like European Countries. Projections for Turkey demonstrate positive results from the use of energy, especially for electricity, and identify key areas for improvement by 2023 (ESMAP Report, 2011). Turkey is rapidly growing with a 73 million young and confident people. So, energy requirements have been rising with increasing population for twenty years in Turkey. The development a country and people living of standards is directly related to the energy utilization rate. Authors and researchers claimed that, the Turkish economy is currently the fastest growing economies among the European Union. In addition, there are a lot of and different studies that were published recently on forecasting of Turkey’s electricity demand. But the aim of this study is to compare forecasting models each other with error estimations and estimate future demand. This study is a proposition of a new approach by comparing grey prediction and multiple regression models with Model of Analysis of the Energy Demand (MAED). Turkish Ministry of Energy and Natural Resources carry out MAED. In this study, electricity energy consumption in Turkey is forecasting with grey prediction and multiple regression models from 1970 to 2010. In this model, we used total export, total import, population and GDP data unlike than Akay and Atak (2007). This study also explores new approach by using more data and suggestions regarding to electricity consumption. As a result, proposed approaches estimates have more accurate results than MAED model in the comparison of electricity consumption. Keywords: Turkey’s Electricity Consumption Forecasting; Grey Prediction; Multiple Regressions. 58 � https://omeka.ibu.edu.ba/files/original/fb63c91bdfb805e1f620f202c4ac9fc3.docx 432d696aeac1f50674ed4b6f939c5e12 https://omeka.ibu.edu.ba/files/original/b92322d7120012677b07bb9d12efa4fe.pdf 052a63aaf476fa5d5f64012746e348cc Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1490 Title A name given to the resource A Comparison of Decision Making Models and Electricity Energy Demand Forecasting for Turkey Author Author SISMAN, Bilal NEVFEL ELGUN, Mahmut Abstract A summary of the resource. Energy is vital for industrialization and development countries like Turkey. Energy, particularly electricity, is essential for improving quality of live and developing as social and economic like European Countries. Projections for Turkey demonstrate positive results from the use of energy, especially for electricity, and identify key areas for improvement by 2023 (ESMAP Report, 2011). Turkey is rapidly growing with a 73 million young and confident people. So, energy requirements have been rising with increasing population for twenty years in Turkey. The development a country and people living of standards is directly related to the energy utilization rate. Authors and researchers claimed that, the Turkish economy is currently the fastest growing economies among the European Union. In addition, there are a lot of and different studies that were published recently on forecasting of Turkey’s electricity demand. But the aim of this study is to compare forecasting models each other with error estimations and estimate future demand. This study is a proposition of a new approach by comparing grey prediction and multiple regression models with Model of Analysis of the Energy Demand (MAED). Turkish Ministry of Energy and Natural Resources carry out MAED. In this study, electricity energy consumption in Turkey is forecasting with grey prediction and multiple regression models from 1970 to 2010. In this model, we used total export, total import, population and GDP data unlike than Akay and Atak (2007). This study also explores new approach by using more data and suggestions regarding to electricity consumption. As a result, proposed approaches estimates have more accurate results than MAED model in the comparison of electricity consumption. Keywords: Turkey’s Electricity Consumption Forecasting; Grey Prediction; Multiple Regressions. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 978-9958-834-23-3 https://omeka.ibu.edu.ba/files/original/b5beedd6a1512fbbf5985fc7144b93a9.pdf 7430777c73f0600398b94343d076c73d PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo Absolute Poverty and Regional Disparities in Albania Xhafa Sonila University of Tirana, Tirana, Albania sonilaxhafa@gmail.com Sokol Axhemi University of Tirana, Tirana, Albania sokol.axhemi@unitir.edu.al Albania lies in the southwestern part of the Balkan Peninsula. After 50 years of dictatorial government of communist system, in the early 1991 it suffered radical changes of political character which brought at the same time substantial changes in economic and social development of our country. Poverty and social exclusion as one of the important indicators of economic development level of a region, become some interesting topics of study, in purpose to provide alternative development and adapt strategies in purpose to build specific policies towards mitigating this social phenomenon that lies and developed in severe forms in some regions in Albania. Through analysis of various indicators reflected in the graphical displays and maps, in this paper we will study poverty in Albania, in its social and economic context. According to the World Bank, definition of poverty is lack of income and unemployment, hunger and malnutrition, ignorance and illiteracy, inability to be sheltered, inability to access to public and social services. In this point of view, poverty means exclusion, which will be studied through indicators that values the opportunities that have the community to acquire essential social and public services. In addition, the study of social exclusion as a result of regional disparities is especially important in the construction of local development plans in the service of sustainable development for the entire region. In this study poverty will be treated and will be examined on the basis of all its indicators (economic and social) as well as in its relative and subjective context. At the end of this study will be given a summary of recommendations in the function of mitigating this phenomenon with social impact, in service to promote sustainable development in the country after a long period of transition with fragile economic and social developments. Keywords: Poverty, Political Transition, Unemployment, Social Exclusion, Disparity Development, Malnutrition, Illiteracy Etc. 283 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1680 Title A name given to the resource Absolute Poverty and Regional Disparities in Albania Author Author SONILA, Xhafa AXHEMI, Sokol Abstract A summary of the resource. Albania lies in the southwestern part of the Balkan Peninsula. After 50 years of dictatorial government of communist system, in the early 1991 it suffered radical changes of political character which brought at the same time substantial changes in economic and social development of our country. Poverty and social exclusion as one of the important indicators of economic development level of a region, become some interesting topics of study, in purpose to provide alternative development and adapt strategies in purpose to build specific policies towards mitigating this social phenomenon that lies and developed in severe forms in some regions in Albania. Through analysis of various indicators reflected in the graphical displays and maps, in this paper we will study poverty in Albania, in its social and economic context. According to the World Bank, definition of poverty is lack of income and unemployment, hunger and malnutrition, ignorance and illiteracy, inability to be sheltered, inability to access to public and social services. In this point of view, poverty means exclusion, which will be studied through indicators that values the opportunities that have the community to acquire essential social and public services. In addition, the study of social exclusion as a result of regional disparities is especially important in the construction of local development plans in the service of sustainable development for the entire region. In this study poverty will be treated and will be examined on the basis of all its indicators (economic and social) as well as in its relative and subjective context. At the end of this study will be given a summary of recommendations in the function of mitigating this phenomenon with social impact, in service to promote sustainable development in the country after a long period of transition with fragile economic and social developments. Keywords: Poverty, Political Transition, Unemployment, Social Exclusion, Disparity Development, Malnutrition, Illiteracy Etc. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2303-4564 https://omeka.ibu.edu.ba/files/original/63c77bf32e2ec75fe14c381b407a1bc4.pdf 35ab3269a9ce8cf94cb764d47b88bda8 PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo Development of Fisheries and Aquaculture in Albania Xhafa Sonila University of Tirana, Tirana, Albania sonilaxhafa@gmail.com Albana Kosovrasti University of Tirana, Tirana, Albania albana.kosovrasti@unitir.edu.al Albania has great natural and infrastructure resources for the development of fisheries and aquaculture sector, commerce and industry of fishery processing products etc. So Albania has a coastline of about 474 km long, an extensive network of hydrograph. It ranks in the first countries in Europe in terms of water resources. The hydrographic basin of Albania has an area of 43 300 km² or 57% more than the territory of the state of our country and 50.000 km rivers and streams, 1,100 km² surface of lake water and sufficient artificial reservoirs. In this article all these resources will be analyzed in detail; it will be also analyzed the identification and further development of these resources, which have special importance in building strategies and policies in the direction of further development of this sector aiming at increasing production, paying attention to the sustainable use of these resources without damage on the biodiversity and the environment. Research in this field is carried out mainly by universities, mostly from the Agricultural University of Tirana. The Ministry of Agriculture in collaboration with Ministry of Environment Forests and Water Administration, has played an important role in constructing strategies for the development of this sector as well as commerce and industry of fishery products processing through projects MEDITS and AdriaMed where an important place has the study of ecological and environmental effects, mainly in the lagoons in cases of fishing beyond manufacturing capacity. Very important are also the infrastructure and human resources, which give weight to the development of this sector. In this country there are 4 ports that develop fishing activities, where the most important is the largest port in the country, the port of Durres. Social effects of the development of this sector are also important in studies, mainly in terms of employment and community consumption per habitants, which is 3.3 kg / 281 �International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo year of about 15 kg / year consumed by the countries of the Mediterranean region. At the end of this paper we will list some premises development of this sector, recognizing it as an important output sector with great impact in the economic and social life in the country. Keywords: Fishing, Development. Infrastructure, 282 Water Resources, Sustainable � https://omeka.ibu.edu.ba/files/original/282914286f802c27d3cf8f93d3094c63.docx 7fed2f29b9f29a96522e786c9c5b0f06 https://omeka.ibu.edu.ba/files/original/5b244315d243a0a2a8e39b3afd3eb672.pdf 52853dd741005e2ccaea57ed34c991b0 PDF Text Text International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Development of Fisheries and Aquaculture in Albania XhafaSonila University of Tirana, Tirana, Albania sonilaxhafa@gmail.com AlbanaKosovrasti University of Tirana, Tirana, Albania albana.kosovrasti@unitir.edu.al Abstract Albania has greatinfrastructureandnaturalresourcesforthedevelopment of fisheriesandaquaculturesector, commerceandindustry of fisheryprocessingproductsetc. So Albania has a coastline of about 474 km long, an extensive network of hydrography. Itranks in thefirstcountries in Europe in terms of waterresources. Thehydrographicbasin of Albania has an area of 43 300 km² or 57% morethantheterritory of thestate of ourcountryand 50.000 km riversandstreams, 1,100 km² surface of lake waterandsufficientartificialreservoirs. Inthisarticlealltheseresourceswill be analyzed in detail; it will be alsoanalyzedtheidentificationandfurtherdevelopment of theseresources, whichhavespecialimportance in buildingstrategiesandpolicies in thedirection of furtherdevelopment of thissectoraiming at increasingproduction, payingattentiontothesustainableuse of theseresourceswithoutdamage on thebiodiversityandtheenvironment. Research in thisfield is carriedoutmainlybyuniversities, mostlyfromtheAgriculturalUniversity of Tirana. TheMinistry of Agriculture in collaborationwiththeMinistry of Environment ForestsandWater Administration, has played an important role in constructingstrategiesforthedevelopment of thissector as well as commerceandindustry of fisheryproductsprocessingthroughprojects MEDITS andAdriaMedwhere an importantplace has thestudy of ecologicalandenvironmentaleffects, mainly in thelagoons in cases of fishingbeyondmanufacturingcapacity. Veryimportantarealsotheinfrastructureandhumanresources, whichgiveweighttothedevelopment of thissector. Inthiscountrythereare 4 portsthatdevelopfishingactivities, wherethemostimportant is thelargest port in thecountry, the port of Durres. Socialeffects of thedevelopment of thissectorarealsoimportant in studies, mainly in terms of employmentandcommunityconsumptionperhabitants, which is 3.3 kg / year of about 15 kg / yearconsumedbythecountries of theMediterraneanregion. At theend of thispaperwewilllistsomepremisesdevelopment of thissector, recognizing it as an importantoutputsectorwithgreatimpact on theeconomicandsocial life in thecountry. Keywords: Fishing, Infrastructure, WaterResources, Sustainable Development. 1 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Introduction Albania has a coastline of about 474 km long, an extensive network of hydrograph. It ranks in the first countries in Europe in terms of water resources. The hydrographic basin of Albania has an area of 43 300 km² or 57% more than the territory of the state of our country and 50.000 km rivers and streams, 1,100 km² surface of lake water and sufficient artificial reservoirs. Under these conditions, concluded that Albania has sufficient assets to develop fishing and aquaculture in promising levels. In this context, it is necessary to undertake studies in this field in terms of the assessment of these natural resources, methods of rational using and sustainable development of fisheries. Albania has also infrastructure and human resources that enhance the development of this sector. In this country there are 4 ports that develop fishing activities, where the most important is the largest port in the country, the port of Durres. Research in this field is performed mainly by universities, mostly from the Agricultural University of Tirana. The Ministry of Agriculture in collaboration with the Ministry of Environment Forests and Water Administration, has played an important role in managing strategies for the development of this sector as well as commerce and industry of fishery products processing through projects MEDITS and AdriaMed where an important place has the study of ecological and environmental effects, mainly in the lagoons in cases of fishing beyond manufacturing capacity. In this paper, will mostly analyzed issues of sustainable development of this economic activity, emphasising on integrating its management with other sectors of the economy and services. Factors that have influenced in the development of fisheries and aquaculture In recent years, Albania fisheries have become dynamically developing sectors of the food industry, and many private agencies have takenmeasurest by investing in modern fishing fleets and processing factories in response to growing international demand of international trade for fish and fishery products. Actually, the value of fishery and aquaculture from catches, estimated at about 40 million $, which 22 million $ represents fishing at sea, coastal and inland waters, 8 million $ aquaculture and the remaining represents mussels.1 The factors that influence in the development of fisheries and aquaculture in Albania are: Natural Resources Albania possesses important natural resources in service to the development of the fisheries and aquaculture sector, based mainly on the abundant water resources. Inthiscontext, Albania possesses:  470 km of coastline and 12 miles marine territorial waters. Waters of the Adriatic and Ionian Sea exploited extensively for fishing. Here exert their activity the most important ports in the country like Durres, Vlora, Saranda and Shengjin. In the table below are given the indicators of species that grow along the Albanian coast. Table 1: Indicators of species that grow along the Albanian coast 1 “Analizaekonomike e Peshkimit. Raport Final”, Ministry of Environment, ForestryandWater Administration 2 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Species Kg/km2 N/Km2 Helicolenusdactylopterus 0.24 20 Lophiusbudegassa 6.29 11 Lophiuspiscatorius 1.58 Merlucciusmerluccius 16.69 188 Micromesistiuspoutassou 0.82 6 Mullusbarbatus 8.59 266 Mullussurmuletus Pagelluserythrinus 2.34 Phycisblennoides 1.24 92 Rajaclavata 2.28 2 Spicaraflexuosa 11.14 728 Trachurusmediterraneus 8.52 154 Trachurustrachurus 7.76 1535 Trisopterusminutus 303 225 Zeus faber 5.07 8 Aristaeomorphafoliacea 1.78 72 Parapenaeuslongirostris 10.76 1348 Eledonecirrhosa 7.39 50 Eledonemoschata 4.73 26 Illexcoindetii 2.46 Loligovulgaris 3.55 622 Octopusvulgaris 1.86 Source: Estimates of the General Directorate of Fisheries  50.000 km rivers and streams. Albania's hydrographic network consists of 11 main rivers with average flow about 1,245 m3/sec.  1,100 km² surface of lake water. According to lake country fund counted 247 natural lakes of various types and sizes, with a volume of approximately 60 billion m3 and 5 main artificial lakes. The largest and the most important natural lakes in the country are: Shkodra Lake, Ohrid Lake and Prespa Lake. In the table below are given some indicators of the most important natural lakes in the country. Shkodra lake is the largest lake in the Balkan. Table 2: Some indicators of the most natural lakes in the country Lakes Area(ha) Shkodra Lake Ohrid Lake 36000 Area within state borders (ha) 12000 32000 9500 PrespaMadhe PrespaVogël 12000 9000 4900 400 Location Species North part of Albania south-eastern part of Albania carp, karasin, mullet, bleak, eel, lucioperca lake trout, salmothymus ohridanus, carp, skobus, bleak, rutilus rubilo. south-eastern part of Albania bleak, trout, karasin and carp Source: Author In Ohrid and Prespa Lake produced mostly Trout and Koran. According to the data obtained in the Korca Inspectorate of Fisheries, their contribution to the total production varies 75-80%. For this production are raised several facilities in Lin, Tushemisht, Zagorcan and Zvesda. 3 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo  Important lagoon surface lagoon about 10,000 ha with a fish yield ranging from 4297 kg / ha.Coastal lagoons as intermediate salty ecosystems between land and marine waters are aquatic environments with high productivity and biodiversity which realize the enrichment with fish and clams of the coastal zone. Narta lagoon classified as lagoons with the highest fish production, while for the production of different mollusks distinguishes lagoon of Butrinti. Table 3: Lagoons in Albania, location and fish production Lagoons Area(ha) Narte Karavasta Butrint Orikum Patok 2800 3900 1600 150 250 Kune Vain 250 Vilunit 250 Location NorthWestern of district of Vlora West of Albania, near toLushnja town Southwestern Albania South western of district of Vlora Along the Adriatic Sea in the west of the city of Lezha. On the northern Albanian Coast, near Lezha region. North-west of the port of Shengjin Fish production (Tons per year) 130-140 50-60 96 8-10 30 45 16 Source: Ministry of Environment Forestry and Water Administration  Sufficient artificial reservoirs, 700 with a total area of 12,000 ha. A considerable part of them, mainly in rural areas, used for the cultivation of carp. Table 4: Lakes in Albania, location and fish production Lakes Location Fierza Area (ha) 5000 Shkopeti 80 Ulza 150 On the Mat River On the Mat River Vau Dejes i 247 On theDriniRiver Species Pike perch Stizostedion lucioperca and perch Perca fluviatilis. Ciprinid, carp, salmon, kerosene, eel. Hypophthalmichthys molitrix, albranus albranus alborella, ciprinus carpio, carassius Alborellaalborella, CyprinusCarpio, Carassiuscarassius, Alosafalaxnilotica, Percafluviatilis, Hyphthalmichthesmolitrix. Rosette Fish Production (Tons per year) 50 4 30 30 Source: Ministry of Environment Forestry and Water Administration Early traditions of development of this sector. Fishing and aquaculture are developed very early, through traditional methods mainly in Shkodra, Ohrid and Prespa lakes and in coastal lagoons like Narta, Butrint, etc. The old format and fishing craft were developed mainly in the coastal area, in the area of catkins up to 2-3 miles away from the Adriatic coast and 1 mile from the Ionian Sea.Traditional fishing is inherited from generation to generation. Fishermen in this category have better recognition not only in the preparation of nets, boats and fishing boat for fishing areas but also in the techniques of using fishing vessels . Favorable geostrategic position and proximity to regional markets. Albania possesses a favorable geographical and strategic position. The diversity of hydrological resources and 4 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo typical Mediterranean climate conditions favored the development of the fisheries sector. A special importance is the country's transit position and close distances to markets in the Balkan region and beyond. Albania is bordered by Montenegro to the northwest, Kosovo to the north, the Republic of Macedonia to the east and Greece to the south. Many foreign researchers have evaluated Albania a country "gateway" or "gateway-tie" as an important transit center linking the East with the West. Map 1: Natural Resources, Fishery and Aquaculture Activities Source: SonilaXhafa, ArcMap/GIS 10 The development of tourism as a safe market for this sector. Domestic and foreign tourists represent an important consumer for the market and the 5 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo fishing industry. According to the Ministry of Tourism, in 2011 Albania was visited by 4 million visitors. Numerous recreational marine lakes and lagoons, enhance the alternatives to the development of recreational fishing as a sustainable form of this sector to support the further development of tourism. The concept of recreational fishing entails all types of fishing activities including sport fishing activities undertaken by any individual, with or without a boat, for leisure purposes, and does not involve the selling of fish or other aquatic organisms. As far as could be determined, six countries in the area, namely Albania, Croatia, Greece, Slovenia, Spain and the Syrian Arab Republic, have established a licensing system for individual recreational fishers. Strengthening the legal framework and timely involvement of Albania in important regional and international conventions. Albanian legislation in the field of fisheries is based on the principles of exploitation of fish resources in a sustainable way and precedes the development of the fishing sector. The general principles of this legislation are based on the Code of Conduct for Responsible Fisheries of FAO, and also it defines relations between Albania and other countries for fisheries and aquaculture through the obligations of each country, to ensure compliance with the rules that apply to fishing. Instruments and agreements relating to the management of fishing in Albania are listed below. The 1982 UN Convention on the Law of the Sea (ratified in June 2003) 1995 Code of FAO Code of Conduct for Responsible Fishing (implemented as a voluntary code 1997) Implementation of the 1993 FAO Agreement (received in May 2005) General Fisheries Commission for the Mediterranean (GFCM) (ratified in July 2003) International Commission for the conservation of Atlantic Tunas (ICCAT) (observation status) 1957 European Fisheries Advisory Commission of the Internal Waters (EIFAC) Law 9055 dated 24.4.2003 "On the accession of the Republic of Albania to the" Convention on the Law of the Sea, Organization of United Nations Law No. 9401 dated 19.05.2005 "On the accession of the Republic of Albania" Agreement to promote compliance with international measures of management and conservation of resources by fishing vessels on the open seas In summary Albania through these potentials, has all the possibilities to increase productivity in the domestic and foreign market, to increase exports to the EU and regional markets competing with high quality. The development of coastal and lake fishing The development of fishing and increasing production and consumption of fish goes in parallel with the development of the fishing fleet. The fishing fleet is based on 4 bays (Durres, Shengjin, Vlora and Saranda). In 1946 was built the first professional fishing ship near the port of Durres.The fishing fleet was gradually improved in quality as well as a number, where in 1960 the number of fishing vessels with different power and capacity reached 30. The sardine fleet consisted of 60 vessels fishing out of which 28 in Vlora, 12 in Durres, 12 in Shengjin and 8 in Saranda. For their processing were established the first factories for the production of canned in 1970. With the liberalization of the economy, in 1993 fishing fleet was privatized and at the same time Albania imported about 150 fishing boats, mainly in Italy but also from Greece. Graphic 1: Fishery Production in Albania (1992-2000) 6 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo 1200 1000 Pelalgjik 800 Coastal and lagoons 600 Lakes 400 Aquaculture 200 Bivalvore 0 1992 1994 1996 1998 2000 Source: AdriaMedthe General Directory for Fishery During the first decade of transition production in fisheries has increased at lower rates and this is due to:  Amortization of the existing fish fleet as a result of old age. Most of the fishing vessels have an age range from 25 years to 40 years, but there are also ships over 60 years. Repair of fishing vessels conducted partly in Durres, in military ports and mostly in neighboring ports.  Losing a part of the fleet during the mass emigration in 1991, but also in 1997. The ships that were used to send the emigrants in Italy were the type of trawl fishing, the bigger and more able to afford over the Adriatic  Lack of port and ancillary infrastructure  Fall of the workforce in this sector as a result of mass immigration. During the second decade observed fluctuations in the quantity of Fish caught as in marine and lagoon waters. This refers to fluctuations in the production of these ecosystems. During this period, do not always respect the norms of sustainable use of these ecosystems. Furthermore the fishing fleet is growing at the slowest and its maintenance and repair has been restricted. Graphic 2: Fish caught in tonne 2500 2000 Costal line Costal lagoons 1500 Inland waters 1000 Aquaculture Mitylus galloprovicialis 500 0 2001 2003 2005 2007 2009 2011 Source: Ministry of Environment By 2007 the fishing fleet has grown at lower rates. In this period investments were mostly oriented in infrastructure improvements to the existing fleet. 7 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Table 5:Fleet by type of fishing Type of Fishing Total Selective Pelagic Purse seiners 2001 198 62 11 125 2003 213 63 11 139 2005 247 63 15 169 2007 269 68 21 180 Source: Ministry of Environment Forestry and Water Administration According to the data obtained from the General Directorate of Fisheries, Albanian fleet currently consists of 146 registered boats with engine power from 23.75 HP. The average engine power of the fishing fleet is around 321 HP. About 71% of vessels have 120kf engine power. Table 6: Technical indicators of quality of fleet in Albania Ports Ships Engine power (kw) Durres 51 10.168 28 2.371 36 6.582 31 4.631 146 23.752 Sarande Shengjin Vlore TOTAL Daysatsea Workforce Production Value of Average in town Catches of Consume 207 1623 479 232 8.051 74 474 110 55 4.110 144 1126 327 158 5.668 125 1047 223 101 4.612 22.441 550 1.140 546 4.270 Source: FD - MoAF; IREPA Shengjini and Durres ports have greater fishing fleet average engine power compared with other ports (average 300 HP). Mostly fishing fleet is concentrated in the Port of Durres, which constitutes 35% of the total. By calculating an import of fresh fish and 3185 tons of canned, fresh fish export of 550 tons and a local production of 7376 tonnes per capita consumption appears that, for a population of 3 million people, is approximately 3:33 kg / spirit. On the other hand, fish consumption in the country is low compared with the average Mediterranean countries is estimated at 15.1 kg / capita (countries not members of the EU, 8.1 kg / capita and the Mediterranean EU members 30.7 kg / capita). According to a geographical analysis results that fish production is concentrated mostly in the port of Durres with marine production around 1623 tons. This production represents 38% of the total production in the country.The largest concentration of production in the Port of Durres related to technical indicators of quality of fleet and with the greatest potential of the work force. An important issue is the planning of Durres fishing port, in the western part of the commercial port, about 1.8 hectares and with a fleet of 130 fishing ships that anchor in three Pontine. Photo 1: Durres Fishing Port. Source: Ministry of Environment, Forestry and Water Administration 8 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Development of aquaculture and fishing processing industry First Aquaculture developments recognized in the late 60s, mainly concentrated on the cultivation of mussels (M. galloprovincialis) and shrimp (Peneaus japonicas). Albania has only one activity of cultivation of Peneaus japonica shrimp in an area about 215 ha in Kavaja town, built years ago and reactivated as activity through an Italian partnership. Other cultivated species of this activity are: cold water salmonid, Oncorhynchus mykiss, shellfish (especially M. Galloprovincialis), shrimps, and S. Aurata Koce D. Labrax bass etc. Political and economic changes after 1991 brought changes in these activities. All enterprises and fish farms as for carp and trout cultivation was privatized. Currently this activity produced about 8,000 quintals of mussels from 47 subjects, 3,000 quintals of keys and bass from 11 subjects and 50 quintals of shrimp from one enterprise. Processing industry has its origins in 1958 to CanningVlora Combine. Its activity in this period mainly relates to the conservation of sardines, but also the smoked eels, tuna, acreages, shapes and octopus. Till the 1990 this activity was expanded with processing factories in Durres and Lezha. During the transition the private and domestic investment, increased the number of processing entities, mostly in coastal regions. For the development of this activity highlights Lezha Region with 4 fishing processing factories. The development of this industry has positively influenced in employment opportunities for rural communities and improving the quality of life in these areas. Most local products are used for export. The great advantage in this issue is the status of Albania as a "third world country" on "setting in the European market of fishery products". It allows fishing industry to export to neighboring countries such as Greece and Italy. In this condition Albania is in a very favorable position compared to many other neighboring countries. 9 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Actually there are 37 activities approved for export to the EU that perform processing and marketing of fish products.All these activities are private enterprises. About a third of fish caught in the sea that includes size and better quality species such as sea bass and wrasse, shrimp and octopus exported contributing to the economic value of the sector. Sustainable development of fisheries and aquaculture sector After 1991, in terms of the development of an economy in transition, the fishing control process was low.Overexploitation of important fish stocks, modifications of ecosystems, significant economic losses, and international conflicts on management and fish trade still threaten the long-term sustainability of fisheries and the contribution of fisheries to food supply. This situation led to changes in the structure population by overexploitation of productive ecosystems primarily in the family of trout, acorn, mullets, eels, etc..During the second decade of transition, generally exploitation of water resources and fisheries in Albania has been rational and responsible, with the exception of some sporadic cases where fishing takes place outside the rules and general control, mainly in rural areas. However, the transition has generally convey difficulties in economic and legal organizing, dictating a number of risks that affect the sustainable development of fisheries and aquaculture sector. A. Ecological sustainability risks in marine, river and lagoon environments  Many fisheries resources could not sustain an often uncontrolled increase of exploitation. This situation is mainly caused fluctuations in the production of lakes species such as carp, skobuz, gudgeon, which are very desirable for consumption and export. Bleak until 1990 constituted 70-75% of the total fish production, while currently its use for processing, and sale and consumption remains limited, even for research purposes2.  Urban pollution in general, mainly reflected in the waters near the coast have influenced the decrease of production of species. Fluctuations of the trout production have been mainly that of Ohrid, because of the urban and tourist pollution, and because of the phosphorus spill in the lake water. In a year in the lake discharged about 150 tons of phosphorus3.  Developments and irregular forms of fishing are another factor that threatens production in marine, lakes and lagoon waters. Application of abusive forms of traditional fishing as the use of explosives, poisonous etc. threaten production in these ecosystems. Fluctuations in production has lagoons, mainly in the Karavasta and Narta Lagoon, dictated by the irregular fishing forms in time, space, quantity and diversity. An issue that should be noted is the weakening of the role of the embouchure in maintaining a selective fishing, updating resources, recycling of small fish (recruits) etc.  The lack of specific and integrated development plans of marine, lake and lagoon ecosystems with regional economic development and wider, in general weakens the sustainable use of water resources and sustainable development of these ecosystems. B. Infrastructure risks 2 3 Minstry of Environment Forestry and Water Administration NationalGeographic:"Fossil Trout" FacesExtinction in Balkans 10 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo  Fisheries and aquaculture sector but also fisheries processing industry have been developed for years in continual difficulties related to basic and support infrastructure for the production and marketing of fishery products. Old age of vessels is an important indicator in this regard, which should be evaluated in terms of necessity investments for their repair and maintenance. On the other hand, their depreciation increases the cost of fuel and consequently the cost of fishery products in the market by reducing profit. According to data in the General Directorate of Fisheries fuel cost takes a weight about 68% of the average cost, while the cost of the equipment 9.7%, maintenance5.5%, lubricants 2.9%. Based in an economic analysis of the General Directorate for fisheries results that the annual profit coefficient is limited and reaches 3-12% of turnover (2200 to 11460 USD per year per vessel). Another problem is the lack of security and repair centers of ships. Most of them repaired in neighboring ports that increases again the cost of production but also creates difficulties and delays in the marketing of products. A problem to be assessed is the misery of mussel cultivation plants in Lake Butrint, where currently only 20-50% of their capacity utilized C. Institutionaland legal risks  Weakness in the implementation of the development strategies of the sector as well as management plans;  Weaknesses in controls and supervision and enforcement of legal norms regarding the sustainable use of marine, lake and lagoon ecosystems. Suggestions The excess capacity of fishing fleets has been widely recognized as a major reason for overfishing and the degradation of marine fisheries resources throughout the world. In the service of sustainable development of fisheries and aquaculture sector, it is important that through legal instruments, research and operational stock of local and regional authorities be undertaken in the framework of measures: A. Sustainableuse of productiveecosystems  Development of fisheries in depth and shallow waters through alternative forms of fishing in coastal and lagoon waters that are in the protection of biodiversity and fish stocks.  Regulation of fishing gears and methods is a common feature of fisheries legislation in Mediterranean coastal states. This measure is designed to prevent fishers from using particularly destructive gears or methods. One of the most common approaches is for states to establish a list of prohibited gears and methods; explosives, chemical, poisonous substances or electrical devices for fishing purposes are universally prohibited.  Legal assessment on a periodic basis for the determination of fishing days and fishing seasons based on production balance and replication fish species.Some Mediterranean coastal states have taken measures designed to limit the time of operation by duly authorized fishing vessels through the implementation of days-at-sea program. Closed season and temporary suspension of fishing operations are measures designed to ease pressure on fish stocks by stopping fishing operations for a specified period of time. Closed season is intended to allow species reproduction and thus coincides with the breeding time of major commercial species. A temporary suspension of fishing operations is a circumstantial measure that is generally taken in response to an 11 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo   emergency situation, or for the purpose of allowing fishery resource recovery. In service of this goal it is necessary to review and evaluated periodically the number of fishing licenses in the sea and the lagoon, but also in lakes. In this context it is necessary to control the level of fishing effort so as to adjust it to the availability of the fishery resource and to evaluate the fishing capacity of the national fleet to determine whether it should be reduced or could be increased under certain conditions. Development of fishing in order to protect the lagoon ecosystem, through the creation of lagoon areas where fishing is prohibited or restricted, recreating the links between the lagoon and sea water, minimum landing sizes for species of fish and other aquatic organisms are often set to prevent the capture of juvenile fish or non-fish species and allow sufficient time for fish and the other species to mature and thus reproduce. Such measures are necessary in Karavasta and Narta lagoon. Minimize the impact of urban tourism and industrial pollution in marine river, lake and lagoon ecosystems for protection of biotopes and species of special interest. B. Infrastructure improvements in the fisheries sector.      Diversification, restructuring and modernization of the fishing fleet, Expansion of existing ports, primarily that of Durres, maintenance and improvement of fishery space infrastructure since the Durres holds first place among other ports for the quantity of fish and shale production. Establishment facilities for repairing and maintenance of fishing boats in the four ports, in order to increase the readiness of technical indicators and operating in the fishing fleet. Systematic monitoring of the fleet to avoid delays in the production and sale process Establishment of a survey and orientation unit through GIS able to pursue fishing activity in the ports sector and provide the necessary data to support policies of rational use of marine resources. C. Legal andinstitutionalimproving     Establishing fishing zones by legal and institutional instruments as management tool that allows to transfer to the local authorities the right of determining segments of fishing operations spatially by authorizing only certain types of fishing activities by specifying categories of vessels in each fishing zone. Special protection by legal instruments through the establishment of lists of protected species of fish and other marine organisms that regarded as threatened. Legal and organizational approximation of the Common Fisheries Policy of the European Union set by taking into account market factors and perspectives of future development Increasing the implementation of local and regional plans for the fishery. References FAO, Recreational Fisheries, Rome, 2012 Ina Dimireva,The Mediterranean Fisheries Regulation – Briefing, EUbusiness, 2010. 12 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo IUCN, Overview of the conservation status of the marine fishes of the Mediterranean sea, 2011. Ministria e Mjedisit, PyjevedheAdministrimit PeshkimitdheAkuakultures, 2007-2015. te ujrave, Strategjia e Scientific Cooperation To Support Responsible Fisheries In The Adriatic Sea, an Adriamed social survey of Albanian marine fisheries some notes and preliminary information, GFCM-SAC Subcommittee on Economic and Social Sciences. Malaga, 6th-7th May 2004. UNEP/MAP Regional Activity Centre,Analysis of economic activities in Mediterranean: Fishery and aquaculture sectors, December 2011. 13 the � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1683 Title A name given to the resource Development of Fisheries and Aquaculture in Albania Author Author SONILA, Xhafa KOSOVRASTI, Albana Abstract A summary of the resource. Albania has great natural and infrastructure resources for the development of fisheries and aquaculture sector, commerce and industry of fishery processing products etc. So Albania has a coastline of about 474 km long, an extensive network of hydrograph. It ranks in the first countries in Europe in terms of water resources. The hydrographic basin of Albania has an area of 43 300 km² or 57% more than the territory of the state of our country and 50.000 km rivers and streams, 1,100 km² surface of lake water and sufficient artificial reservoirs. In this article all these resources will be analyzed in detail; it will be also analyzed the identification and further development of these resources, which have special importance in building strategies and policies in the direction of further development of this sector aiming at increasing production, paying attention to the sustainable use of these resources without damage on the biodiversity and the environment. Research in this field is carried out mainly by universities, mostly from the Agricultural University of Tirana. The Ministry of Agriculture in collaboration with Ministry of Environment Forests and Water Administration, has played an important role in constructing strategies for the development of this sector as well as commerce and industry of fishery products processing through projects MEDITS and AdriaMed where an important place has the study of ecological and environmental effects, mainly in the lagoons in cases of fishing beyond manufacturing capacity. Very important are also the infrastructure and human resources, which give weight to the development of this sector. In this country there are 4 ports that develop fishing activities, where the most important is the largest port in the country, the port of Durres. Social effects of the development of this sector are also important in studies, mainly in terms of employment and community consumption per habitants, which is 3.3 kg / year of about 15 kg / year consumed by the countries of the Mediterranean region. At the end of this paper we will list some premises development of this sector, recognizing it as an important output sector with great impact in the economic and social life in the country. Keywords: Fishing, Infrastructure, Water Resources, Sustainable Development. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 978-9958-834-23-3 https://omeka.ibu.edu.ba/files/original/47698c9e5743c2bc0233c875f89e1a6d.pdf 3e1fd4c51f0e4c379a09874e0e9d52fb PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo International Entrepreneurial Orientation and Performance Outcomes in Export Markets Aytuğ Sözüer Yalova University, Yalova, Turkey sozuer@hotmail.com Gültekin Altuntaş Yalova University, Yalova, Turkey altuntas@İstanbul.edu.tr Fatih Semerciöz İstanbul University, İstanbul, Turkey fsemerci@İstanbul.edu.tr Global economic integration with the diffusion of information and communication technologies forces many business enterprises to internationalize. This evolution brings opportunities and threats to business management, as well opens up new fields for academic research. The purpose of this study is to investigate the effect of firms’ international entrepreneurial orientation on their export market performances. Based on the literature, which implies entrepreneurial orientation is critical for market success; this research intends to evaluate the phenomenon for Turkish exporter firms. From year 2000 to 2011, Turkey increased its world share in outward foreign direct investment stock by 146% (UNCTAD, 2012). Besides, Turkey’s total merchandise import and export volume is around USD 400 billions, which constituted 1% of world trade in 2011 (World Trade Organization, 2012). In respect to the emergence of Turkish enterprises in world business, it is assumed that their international entrepreneurial orientation would be remarkable to investigate. International entrepreneurship, being considered as the subset of international business and entrepreneurship areas, is defined as “the discovery, enactment, evaluation, and exploitation of opportunities – across national borders- to create future goods and services” (Oviatt and McDougall, 2005). The study of international entrepreneurship is gaining momentum since 1990s. Prestigious academic journals such as Entrepreneurship Theory and Practice (1996), Academy of Management Journal (2000), International Business Review (2005), and European 47 �International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo Management Journal (2008) published special issues on the subject. So, it is evident that international entrepreneurship is an establishing and a wellreceived field of interest in management science. While studies on international entrepreneurship seem increasing, there is still a need to develop measures for this construct. Dimitratos et al. (2012) operationalized international entrepreneurship based on entrepreneurial orientation (EO) research. They developed a scale labeled “international entrepreneurial culture” (IEC) that is composed of six dimensions: (i) international market orientation, (ii) international learning orientation, (iii) international innovation propensity, (iv) international risk attitude, (v) international networking orientation, and (vi) international motivation. This study intends to take this IEC scale for measuring international entrepreneurial orientation as the independent variable. The dependent variable of the research is export market performance. Deriving from the valid scales developed by Zou, et al. (1998), Lages and Lages (2004), Diamantopoulos and Kakkos (2007); export market performance will be measured by firms’ sales revenue, increase of sales, profitability, market share, and new product penetration in the export markets. On the other hand, firms’ international business experience, size, and industry would be evaluated as the control variables. Within this framework, the scope of the research is exporting companies in Turkey. By purposive sampling, a total of 660 members of export association boards under Turkish Exporters Assembly would be inquired. Retrieved data will be analyzed with Spearman and Pearson correlations, as well with multiple linear regressions. As a matter of fact, this abstract is submitted to the International Conference on Economic and Social Studies 2013. The research is at early stage and in case of its acceptance to the Conference; it will indeed advance through further discussions by peer scholars in management. Keywords: International Entrepreneurship, Export Performance, Turkey. 48 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1495 Title A name given to the resource International Entrepreneurial Orientation and Performance Outcomes in Export Markets Author Author SOZUER, Aytug ALTUNTAS, Gultekin SEMERCIOZ, Fatih Abstract A summary of the resource. Global economic integration with the diffusion of information and communication technologies forces many business enterprises to internationalize. This evolution brings opportunities and threats to business management, as well opens up new fields for academic research. The purpose of this study is to investigate the effect of firms’ international entrepreneurial orientation on their export market performances. Based on the literature, which implies entrepreneurial orientation is critical for market success; this research intends to evaluate the phenomenon for Turkish exporter firms. From year 2000 to 2011, Turkey increased its world share in outward foreign direct investment stock by 146% (UNCTAD, 2012). Besides, Turkey’s total merchandise import and export volume is around USD 400 billions, which constituted 1% of world trade in 2011 (World Trade Organization, 2012). In respect to the emergence of Turkish enterprises in world business, it is assumed that their international entrepreneurial orientation would be remarkable to investigate. International entrepreneurship, being considered as the subset of international business and entrepreneurship areas, is defined as “the discovery, enactment, evaluation, and exploitation of opportunities – across national borders- to create future goods and services” (Oviatt and McDougall, 2005). The study of international entrepreneurship is gaining momentum since 1990s. Prestigious academic journals such as Entrepreneurship Theory and Practice (1996), Academy of Management Journal (2000), International Business Review (2005), and European Management Journal (2008) published special issues on the subject. So, it is evident that international entrepreneurship is an establishing and a wellreceived field of interest in management science. While studies on international entrepreneurship seem increasing, there is still a need to develop measures for this construct. Dimitratos et al. (2012) operationalized international entrepreneurship based on entrepreneurial orientation (EO) research. They developed a scale labeled “international entrepreneurial culture” (IEC) that is composed of six dimensions: (i) international market orientation, (ii) international learning orientation, (iii) international innovation propensity, (iv) international risk attitude, (v) international networking orientation, and (vi) international motivation. This study intends to take this IEC scale for measuring international entrepreneurial orientation as the independent variable. The dependent variable of the research is export market performance. Deriving from the valid scales developed by Zou, et al. (1998), Lages and Lages (2004), Diamantopoulos and Kakkos (2007); export market performance will be measured by firms’ sales revenue, increase of sales, profitability, market share, and new product penetration in the export markets. On the other hand, firms’ international business experience, size, and industry would be evaluated as the control variables. Within this framework, the scope of the research is exporting companies in Turkey. By purposive sampling, a total of 660 members of export association boards under Turkish Exporters Assembly would be inquired. Retrieved data will be analyzed with Spearman and Pearson correlations, as well with multiple linear regressions. As a matter of fact, this abstract is submitted to the International Conference on Economic and Social Studies 2013. The research is at early stage and in case of its acceptance to the Conference; it will indeed advance through further discussions by peer scholars in management. Keywords: International Entrepreneurship, Export Performance, Turkey. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2303-4564 https://omeka.ibu.edu.ba/files/original/97b2aeaf7fd9221c1a7e8b5e204777ef.pdf 432c410d2537e5ce62106e057e0d6ff9 PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo An Economic Order Quantity Model For Defective Items Under Permissible Delay In Payments And Shortage Harun Sulak Süleyman Demirel University, Isparta, Turkey harunsulak@sdu.edu.tr Abdullah Eroğlu Süleyman Demirel University, Isparta, Turkey aeroglu@sdu.edu.tr M. Ali Avcı Pamukkale University, Denizli, Turkey aliavci20@hotmail.com Mustafa Bayhan Pamukkale University, Denizli, Turkey mbayhan@pau.edu.tr Inventory control models are classified as deterministic and stochastic models upon the condition that the demand is definitely known, or not. Economic Order Quantity Models are among the most widely used techniques in deterministic inventory control models. Economic Order Quantity models have many assumptions that are not satisfied completely with recent economic conditions such as all items in an ordered lot are perfect quality and the payments are made as soon as the items received. In this study, by loosening these two assumptions, a new model is proposed in the case of defective items, permissible delay in payments and shortage. For two case of permissible delay, the optimal values are determined and the effects of permissible delay in payments on ordering quantity and total profit are analyzed. Result of the analysis show that while permissible delay of payment increases order quantity decreases and total profit increases. Furthermore, numerical examples are given for the developed model and changes in the optimal values are analyzed with sensitivity analysis. Finally some previously published results are deduced as special cases of proposed model. Keywords: Economic Order Quantity, Permissible delay in Payments, Defective items, Shortage. 151 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1582 Title A name given to the resource An Economic Order Quantity Model For Defective Items Under Permissible Delay In Payments And Shortage Author Author SULAK, Harun EROGLU, Abdullah M. AVCI, Ali BAYHAN, Mustafa Abstract A summary of the resource. Inventory control models are classified as deterministic and stochastic models upon the condition that the demand is definitely known, or not. Economic Order Quantity Models are among the most widely used techniques in deterministic inventory control models. Economic Order Quantity models have many assumptions that are not satisfied completely with recent economic conditions such as all items in an ordered lot are perfect quality and the payments are made as soon as the items received. In this study, by loosening these two assumptions, a new model is proposed in the case of defective items, permissible delay in payments and shortage. For two case of permissible delay, the optimal values are determined and the effects of permissible delay in payments on ordering quantity and total profit are analyzed. Result of the analysis show that while permissible delay of payment increases order quantity decreases and total profit increases. Furthermore, numerical examples are given for the developed model and changes in the optimal values are analyzed with sensitivity analysis. Finally some previously published results are deduced as special cases of proposed model. Keywords: Economic Order Quantity, Permissible delay in Payments, Defective items, Shortage. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2303-4564 https://omeka.ibu.edu.ba/files/original/79559c3479101bd2a7a8babd59a9b1ef.pdf 1835c912deeb6e7693617dec4e979039 PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo The Collateral of the Rising Public Diplomacy in Turkey: The Presidency of Religious Affairs and the Religious Diplomacy Burcu Sunar İstanbul University, İstanbul, Turkey bsunar@İstanbul.edu.tr It has been widely discussed whether Turkish foreign policy has been changing since the Justice and Development Party (AKP hereafter) came into power in 2002. Among the new concepts which signal a probable change in the foreign policy, “public diplomacy” seems to be a significant one considering that AKP has even founded the Office of Public Diplomacy in 2010 within the Turkish Prime Ministry. Public diplomacy, the task of serving national interests through influencing foreign states’ peoples, winning their hearts and minds, instrumentalizes a state’s traits and is carried by many public institutions. Religion is one of the cultural traits of a state which serves public diplomacy with its binding influence on public. For a few decades, the terms “religious diplomacy”, “inter-religious diplomacy” or “faith diplomacy” have been used to indicate the positive impact of religion on diplomacy, especially on “public diplomacy” which addresses public rather than the traditional diplomatic institutions. Religious diplomacy has mainly two meanings. On the one hand, it means establishing an interreligious dialogue between states and their societies. On the other hand, it implies promoting religiously based relations with other states and their societies sharing the same religion. In Turkey, Presidency of Religious Affairs is the main carrier of religious diplomacy as it has started be expressed by the Presidency itself. A closer look at the campaigns and policies of the Presidency especially in the Balkans, Africa and the Middle East in the last decade shows that it complements the government’s public diplomacy establishing religious ties with the states especially which have Muslim populations. The Presidency is organizing humanitarian aid campaigns for Muslims suffering all around the world while participating in the ones the government organizes. In press releases, The Presidency addresses all people and all international organizations to free the Muslims from poverty, injustice and violence. It also regulates the education of the religious personnel who are to work outside of the Turkish borders. The Presidency organizes international programs for those willing to “construct a future based on their cultural 71 �International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo origins” and “satisfy the religious, cultural, social and psychological needs of the Muslims with their knowledge on Islamic theology.” Looking at the campaigns, press releases, international programs, conferences, seminars and the discourse used in these, the paper tries to show how the Presidency cooperates with the government serving public diplomacy. In this research, the aim is to stress the contribution of The Presidency of Religious Affairs to the public diplomacy especially in the last decade. It can be easily observed that aid campaigns for Muslim populations outside of the border have become a major divisive issue and divided the Turkish population into two as the ones willing to help poor Muslim people for the sake of God and/or humanity and the ones criticizing this argument insisting that Turkey has itself helpless people inside of its own borders. The motivation of the presentation is to point out the insufficiency of the discussion whether AKP unnecessarily engages with Muslim populations outside of the Turkish borders. For a few decades, public diplomacy and religious diplomacy as its complementary have been crucial tools in international relations, and analyzing the AKP’s partaking in humanitarian campaigns outside the borders without taking this viewpoint into consideration would be fall short. Therefore, the presentation intends to remark that The Presidency of Religious Affairs with the religious diplomacy it carries has also been an element in international relations for a while and analysis on AKP’s foreign policy should also pay attention to this religious diplomacy dimension as a part of public diplomacy strategy. Keywords: Public Diplomacy, Religious Diplomacy, the Presidency of Religious Affairs, the Justice and Development Party (AKP), Foreign Policy 72 � https://omeka.ibu.edu.ba/files/original/c032f650c0accefd4dd12b144c2b1653.docx 31428a3ddc706efc0de10af1f0c9ee11 https://omeka.ibu.edu.ba/files/original/a18e220dec61ad9f2b9a01a4c286dd16.pdf 81c9122fc27c15c470514ec935445de9 PDF Text Text International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo The Collateral of the Rising Public Diplomacy in Turkey: The Presidency of ReligiousAffairs and the ReligiousDiplomacy BurcuSunar İstanbul University, İstanbul, Turkey bsunar@İstanbul.edu.tr Abstract It has been widely discussed whether Turkish foreign policy has been changing since the Justice and Development Party (AKP hereafter) came into power in 2002. Among the new concepts which signal a probable change in the foreign policy, “public diplomacy” seems to be a significant one considering that AKP has even founded the Office of Public Diplomacy in 2010 within the Turkish Prime Ministry. Public diplomacy, the task of serving national interests through influencing foreign states’ peoples, winning their hearts and minds, instrumentalizes a state’s traits and is carried by many public institutions. Religion is one of the cultural traits of a state which serves public diplomacy with its binding influence on public. For a few decades, the terms “religious diplomacy”, “inter-religious diplomacy” or “faith diplomacy” have been used to indicate the positive impact of religion on diplomacy, especially on “public diplomacy” which addresses public rather than the traditional diplomatic institutions. Religious diplomacy has mainly two meanings. On the one hand, it means establishing an interreligious dialogue between states and their societies. On the other hand, it implies promoting religiously based relations with other states and their societies sharing the same religion. In Turkey, the Presidency of Religious Affairs is the main carrier of religious diplomacy as it has started be expressed by the Presidency itself. A closer look at the campaigns and policies of the Presidency especially in the Balkans, Africa and the Middle East in the last decade shows that it complements the government’s public diplomacy establishing religious ties with the states especially which have Muslim populations. The Presidency is organizing humanitarian aid campaigns for Muslims suffering all around the world while participating in the ones the government organizes. In press releases, The Presidency addresses all people and all international organizations to free the Muslims from poverty, injustice and violence. It also regulates the education of the religious personnel who are to work outside of the Turkish borders. The Presidency organizes international programs for those willing to “construct a future based on their cultural origins” and “satisfy the religious, cultural, social and psychological needs of the Muslims with their knowledge on Islamic theology.” Looking at the campaigns, press releases, international programs, conferences, seminars and the discourse used in these, the paper tries to show how the Presidency cooperates with the government serving public diplomacy. In this presentation, the aim is to stress the contribution of The Presidency of Religious Affairs to the public diplomacy especially in the last decade. It can be easily observed that aid campaigns for Muslim populations outside of the border have become a major divisive issue and divided the Turkish population into two as the ones willing to help poor Muslim people for the sake of God and/or humanity and the ones criticizing this argument insisting that Turkey has itself helpless people inside of its own borders. The motivation of the presentation is to point out the insufficiency of the discussion whether AKP unnecessarily engages with Muslim populations outside of the Turkish borders. For a few decades, public diplomacy and religious diplomacy as its complementary have been crucial tools in 108 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo international relations, and analyzing the AKP’s partaking in humanitarian campaigns outside the borders without taking this viewpoint into consideration would be fall short. Therefore, the presentation intends to remark that The Presidency of Religious Affairs with the religious diplomacy it carries has also been an element in international relations for a while and analysis on AKP’s foreign policy should also pay attention to this religious diplomacy dimension as a part of public diplomacy strategy. Keywords: Public Diplomacy, Religious Diplomacy, The Presidency of Religious Affairs, The Justice and Development Party (AKP), Foreign Policydemocracy. Introduction It is a common conviction that the states are not the only actors in international relations anymore. New actors are eager to take part in international relations while the old sole state has been transforming and learning to get along well with the new actors. The Presidency of Religious Affairs (DIB) is one of these new actors which has been working closely connected with the implementation of the Turkish foreign policy since the AKP era began. DIB is so active in international arena that Mehmet Görmez, the President of DIB, stated that a religious diplomacy was born recently. The paper will at first mention the new concepts which make the new actors’ emergence possible, namely the public diplomacy and soft power. Then it will be showed how DIB acts in parallel with the AKP’s understanding of foreign policy and international relations. It will therefore be argued that the role of DIB as an actor in Turkish foreign policy should be analyzed in detail and taken into consideration to understand AKP’s foreign policy. The New Comrades Public Diplomacy and Soft Power, and Their Religious Supporter Public diplomacy is “an international actor’s attempt to manage the international environment through engagement with a foreign public”, while traditional diplomacy is “an international actor’s attempt to manage the international environment through engagement with another international actor” (Cull, 2009, p. 12). This definition of Nicholas Cull, who is a leading scholar working on public diplomacy, raises questions on the nature of being an international actor, the nature of the international environment, the nature of an “attempt” and “engagement” and so on. All these concepts have been changing in a way that embracing a wider space in international relations. The beginning of this change can be dated back to the end of the Cold War, an era which transformed the international system and introduced new concepts, actors and visions on how international politics have been conducted. The paper does not aim to scan all aspects of this transformation since the late 1980s but intends to focus on one comprehensive notion which paves the way for the formulation and application of public diplomacy. “Soft power”, as Joseph Nye coined the term in 1990 and described in detail in 2004, is “the second face of power” which does not differ in the final goal but in means comparing hard power. According to Nye, soft power is the ability to set the agenda and attract the others in world politics to convince them that they want the outcomes that you want. 109 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Shaping the people’s preferences winning their hearts and minds, soft power uses a different currency than force or money to engender cooperation-“an attraction to shared values and the justness and the duty of contributing to the achievement of those values” (Nye, 2004, p. 5-7). A state has three main resources to become a soft power which are cultural values, political values and the foreign policies which are seen legitimate and having moral authority (p. 11). Then public diplomacy is obviously a mechanism that serves a soft power to convince the other societies that the cultural and political values of that power are desirable for all and therefore its foreign policies should be supported. Religion is one of the cultural values of a state that can be used to create a dialogue with the foreign societies. Religious diplomacy, faith diplomacy or inter-religious diplomacy as used in the literature, has the potential of both influencing the people sharing the same religion and at the same time promoting an interreligious dialogue which may surpass some political problems1. For a well-known scholar Douglas Johnston, religious diplomacy is, just like a trump card, “a key resource to be used at the opportune moment”. While it signifies the end of a period of narrow power politics in which religious factors have intentionally being excluded from policy maker’s calculus, it also suggests a new goal for realist politics which is to understand how religion shapes the worldviews and political aspirations of others (2003, p. xi-xii). It should also be mentioned that behind the rising of the religious facet of public diplomacy, the common assessment that there is “a resurgence of religion” in world plays a vital role2. The signals that religion is coming back to the societies and so to the politics directed the policy makers to analyze and produce policies to live with it. Considering that AKP, a party which is known for its Islamic past and which describes itself as conservative, openly sympathizes with the Ottoman Empire, religious diplomacy as a rising value in international relations offers critical opportunities for AKP to conduct a timely foreign policy. The Turkish Case: A Conservative Government Wants to Make Turkey a Soft Power and Calls the Presidency of Religious Affairs for Help Public diplomacy is a recent notion in Turkey which in fact came into question with the foundation of the Office of Public Diplomacy (Kamu Diplomasisi Koordinatörlüğü, KDK hereafter) in 2010 within the Turkish Prime Ministry. KDK describes its mission as to increase Turkey’s visibility and efficiency in international public opinion and to coordinate governmental and non-governmental organizations to improve Turkey’s reputation. KDK actively organizes meetings, conferences, seminars, workshops etc. in the fields such as science and technology, foreign aids, economy, higher education, tourism, culture, art, media, and strengthens Turkey’s communication with the world (Hedefler, 2010). It is not a coincidence that the KDK was established during the AKP government whose foreign policy has been discussed a lot inside Turkey mostly on the basis of the new terminology that Ahmet Davutoğlu, Minister of Foreign Affairs, introduced. Although the aim of the paper is not to discuss AKP’s foreign policy in detail, it is a must to indicate that the vision 1 Inthispaper, inter-religiousaspect of religiousdiplomacy is not included. The main motivation of thepaper is tolook at theDIB’sactivitiestowardstheMuslims. Yet, theproject of “Alliance of Civilizations”, a keydimension of AKP’sforeignpolicy, is a perfectexample of inter-religiousdiplomacy. 2 Formoreinformation on thediscussion on theresurgence of religion, seeThomas, S. M. (2005). The Global Resurgence of ReligionandtheTransformation of International Relations, New York: PalgraveMacmillan. 110 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo and the mission of the KDK is closely connected to the vision and mission of AKP, which is to make Turkey a global but soft power3. KDK does not actually make a direct reference to the DIB. Yet vision of AKP’s foreign policy and the KDK clearly shows that the DIB has a unique role as the religious body of a future soft power4. According to Görmez, the effects of religious values have been increasing all over the world and a “religious diplomacy” was born. There are now ties between all religious bodies and these ties have started to affect the future of the societies. Therefore it is a must for DIB to give religious education and service outside of Turkey (Diyanet İşleri Başkanı Görmez’den Çarpıcı Tespit, 2012). DIB is one of the main team-mates of KDK in almost all foreign organizations. The foreign service team generally includes KDK, DIB, Turkish International Cooperation and Development Agency (Türk İşbirliği ve Koordinasyon Ajansı Başkanlığı, TİKA), Presidency for Turks Abroad and Related Communities (Yurtdışı Türkler ve Akraba Topluluklar Başkanlığı, YTB) and Kızılay. Representatives of these institutions conduct joint humanitarian aid and development campaigns in especially Balkans, Middle East, Caucasus and Africa. DIB also works with another strategic institution of public diplomacy which is Turkish Radio and Television Corporation (TRT) since 2012. TRT and DIB signed a protocol to start the broadcasting of a new channel, TRT Diyanet TV (TRT Diyanet TV Ramazan Ayında Yayında, 2012). In addition it is possible to see that DIB and other state/government institutions organize joint conferences and organizations, and they host one another in a way that they give each other an opportunity to express their own point of view. For instance it is not a surprise to observe that Erdoğan, The Prime Minister, makes the opening speech in the Second African Muslim Religious Leaders Summit which DIB hosts. In his speech that he started with besmele (in the name of God) he mentioned the brotherhood of Turkey and Africa, the common history and civilization, cooperation and affection between two communities etc (İslamofobia Lanetlenmesi Gereken Bir Suçtur, 2012). Moreover, the President of DIB usually accompanies Erdoğan and other party members in their visits to abroad for humanitarian campaigns, for the openings of places such as mosques and student dormitories, for iftars (the breaking of the fast) in Ramadan, for contributing conflict resolution where needed etc. For example, the President of DIB was in the group of officials who went to Indonesia after the tsunami. His presence was needed, with the words of Erdoğan, to be able to evaluate the moral aspect of the disaster (Başbakan Erdoğan Tsunami Felaketinin Yaşandığı Güney Asya’ya Gitti, 2005). 3 For more information on AKP’s foreign policy, please see the following articles of Davutoğlu:Davutoğlu, A. (2008). Turkey’s Foreign Policy Vision: An Assessment of 2007.Insight Turkey, 10, 2008, 77-96; Davutoğlu, A. (2010). Turkey’s Zero Problems Foreign Policy.Foreign Policy.Retrieved May 1, 2013, from http://www.foreignpolicy.com/articles/2010/05/20/turkeys_zero_problems_foreign_policy 4 DIB was established in 1924. According to the Article 136 of 1982 Constitution, “The Presidency of Religious Affairs, which takes place in the general administration,is responsible for the execution of the duties specified in the special law inorder to provide national unity and solidarity, and remain separate from allpolitical views and thoughts in accordance with the principle of secularism.” The article “About the Presidency of Religious Affairs, its Establishment and Obligations” states the DIB’s duties and responsibilities as follows: “to execute the works concerning the beliefs, worship, and ethics of Islam, enlighten the public about their religion, and administer the sacred worshipping places.”Basic Principles, Aims and Objectives.DiyanetİşleriBaşkanlığı.(2013). Retrieved May 1, 2013, fromhttp://www.diyanet.gov.tr/english/tanitim.asp?id=13 111 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo In order to understand the vision of DIB’s foreign activities, they should be examined together with the AKP’s foreign policy. First of all, it should be noticed that AKP’s foreign policy, according to the discourse party members used, is based on moral and humanitarian values. They argue that reason itself is not adequate in international relations unless it is supported with virtue, honor and the sacredness of human being. Therefore AKP states that all these values are the key motivators of their foreign policy and the Party accuses the developed, Western, modern world of lying only on reason and excluding these values (Sarkisyan Görüşmesinden Sonra 1915 Mesajı, 2010). DIB is, for AKP, a way to show that Turkey does not seek for hard power only, but cares about human beings and their humanitarian needs. On the other hand, in AKP’s discourse, it is easily seen that the source of the morality and the value of the human being comes from the religion. That is to say, DIB is a suitable choice for conservative AKP to show that they accept human beings as sacred and serve them modestly. For instance Erdoğan points out the famine and despair in Somalia and criticizes the rest of the world because of their thirst for resources. Saying that Turkey does not perceive Somalian issue based on national interests, Erdoğan asks the ones who are indifferent to Somalia the question “which civilization are you a member of?, which faith do you belong to?” (Somali’ye Devlet Çıkarları Nazarıyla Bakmadık, 2011). The President of DIB Mehmet Görmez also criticizes the West because of their failure to see that the crisis in the world is not only economic or political, but moral as well. Religions, according to Görmez, can show the right way to the world to seek for a moral, conscientious, just and equal order. For Görmez, the guilty of the crisis is not the religion but the indifference to religion and its values. DIB in this context is everywhere to foster moral and humanitarian values for all without seeking any advantage (Prof. Dr. Mehmet Görmez Avrupa Konseyi Parlamenter Meclisi’ne Hitap Etti, 2011). As a part of Turkey’s public diplomacy strategy, DIB not only tries to increase the prestige of Turkey, but also it intends to highlight the indifference of the rest of the world. While the literature on the resurgence of religion has already started to expand, DIB with what it is doing indicates what the others are not doing because of their ignorance of religious values. While faith is about to return to the politics, as some feel threatened and some are pleased, for AKP, it is crucial to give an ear to the people who care about keeping the authenticity of their religion, the religious education of their children, the solidarity of their community etc. DIB as the collateral of the government and KDK, functions as a metaphysical and moral complementary in foreign policy. DIB in this context restores and builds new mosques and places of worships, gives religious education all over the world as an indicator of, as Bekir Bozdağ, the Deputy Prime Minister says, the power of Turkish Republic with the Turkish nation behind. He mentions that Turks are maybe the only nation who cares about their places of worship so much and he is so proud of being a member of Turkish nation. For him, mosques are the deeds of a homeland and they are the indicators of freedom (Camiler Memleketin Silinmez Tapularıdır, 2011). With the work DIB has done, it is said that DIB has a visible prestige outside of Turkey (TİKA Önemli Mesafe Kat Etti, 2011). Even though AKP does not agree with this claim, it is mostly argued that AKP has a NeoOttomanist foreign policy. The aim of the paper is not to discuss whether it is true or not, yet it is obvious that AKP often refers to the historical and religious ties with the old Ottoman regions and they even introduce their campaigns as the fulfillment of a responsibility arising from history. Considering that religion was the main regulatory and social value in the Ottoman era and noticing that DIB is especially active in the old Ottoman regions, it is possible to say that DIB is also a means of consolidating power in 112 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo these regions with an empire-like vision. Likewise, Görmez says that “religion is the most crucial belonging that constitutes identity” (Din, Kimliği Oluşturan En Önemli Aidiyettir, 2012). That is to say, religious identity comes before the national identity just as in the Ottoman Empire. Davutoğlu similarly considers Sarajevo as a homeland to have an iftar in Ramadan (Bizim Ruhumuzun Sılası Saraybosna’dır, 2011). Again focusing on the old system in the Balkans which guaranteed freedom of religion during the Ottoman era5, Görmez states that it should be deeply contemplated how the old system were working well and how the current one is not. Görmez also mentions the constraints on the Muslim populations in the Balkans in his speech he delivered in 5th Meeting for the Presidents of Religious Affairs in Balkan States (Diyanet İşleri Başkanı Prof. Dr. Mehmet Görmez, Balkan Ülkeleri Diyanet İşleri Başkanları 5. İstişare Toplantısı’nda Konuştu: “Vakıf mallarının işgali kabul edilemez”, 2011). In AKP’s foreign policy vision, the world is not divided into states since the borders are perceived as meaningless and artificial. The new motto of Ministry of Foreign Affairs is “there is no diplomacy of line but a diplomacy of zone. That zone is the entire globe 6”. According to AKP’s foreign policy, Turkey should be globally omnipresent and omnipotent. While this vision comprises the interest in the old Ottoman regions, it also makes all activities in foreign lands legitimate. If the whole world is subject to AKP’s foreign policy, then the question what Turkey is doing for example in Africa becomes irrelevant. Africa is not farther than the Balkans or Middle East in the eyes of AKP and wherever there are people in need, Turkey’s helping hand would be there. DIB also believes that there are no borders that can prevent them from helping people. Since the whole world and all people were created by the one and the same God, then one should not distinguish between the borders and the people7. Humanitarian aid campaigns to Somalia and other African countries, Arakan and other Asian countries are the signs of this vision. DIB not only raises donations for these regions but also ensures that a considerable amount of the donations are used for the religious services. Erdoğan states that Turkey’s helping hand is everywhere regardless of distance and all state institutions, including DIB, are actively participating in the campaigns because “we are the servants of the same God” and “our prayers are the same” (Başbakan Erdoğan’ın AK Parti’nin 10. Yıl Kutlamalarında Yaptığı Konuşmanın Tam Metni, 2011). DIB is also actively in connection with the Turks abroad especially in Europe. This is again an attitude which points out that AKP and its public diplomacy strategy privileges own people above the nation-states borders. It is known that Turkish people living in Europe are generally conservative and care for the religious services. DIB tries to create a connection with the Turks abroad to teach Islam and Turkish-Islamic culture especially to the ones who were born outside of Turkey and so that they should be a moral model in the society they live (TİKA Önemli Mesafe Kat Etti, 2011). AKP perceives Turkey as a member of the Islamic world. It does not mean that AKP’s foreign policy concentrates only on Islamic geography. Yet, looking at the discourse the party members use, it is easily seen that AKP perceives “civilization” as a key concept, even as an actor, in international relations, and positions Turkey inside the Islamic 5 He describestheOttomansystem in his speechwithoutgivingdirectreferencetotheword “Ottoman”. Hattıdiplomasiyoktur, sathıdiplomasivardır. O satıhbütündünyadır. 7 YTB has thesamevision as well. Theirmotto is “whereverthere is a citizen, cognate, relative of ours, wearethere”. Yurtdışı Türkler ve Akraba Topluluklar Başkanlığı. (2013).Retrieved May 1, 2013,fromhttp://www.ytb.gov.tr/ 6 113 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo civilization. In the foreign policy discourse of AKP, states which have Muslim populations are Turkey’s friends and even relatives and brothers, and it is a must for the states belonging to same civilization to act together in order to stand strong in world politics. Considering that AKP wants to make Turkey first a regional and then a global power, it is inevitable that the role for Turkey in Islamic geography should be a “model state.” DIB in this picture is again quite active in the regions with Muslim populations in a way that trying to surpass the other alternatives and creating nearly a monopoly with the services they offer. Since Turkey is the only secular and modern state in a Western sense among the other states with Muslim populations, DIB represents a more modest and smiling face of a moderate Islam. As it is discussed in the 8th Meeting of Eurasian Islamic Council in 2012, “Turkey is the center of the Islamic world” and so Turkey should act accordingly. In the same meeting, it was announced that a Eurasian Islamic University will be founded and a General Secretary of the Eurasian Islamic Council will be established. What is significant is both of them will be located in Istanbul which is the cultural capital of the strongest Islamic state. Plus, considering that the services DIB provides are generally based on education and humanitarian affairs, this religious institution of modern and strong Turkey does not pose any danger to foreign societies such as oppressing them under radical Islamic rules. Conclusion DIB is a state institution and therefore it is not a surprise to see that it acts in parallel with the government’s policies inside and outside of Turkey. Yet this was not the case before AKP came into power in 2002. AKP has changed or enhanced the function of DIB as the Party discovered the significance of public diplomacy. Now DIB is one of the most important institutions of Turkish foreign policy which aims to make Turkey a soft power at least in its region conducting a religious diplomacy. To summarize the points raised above, first of all, DIB is a loyal team member of foreign service carried by Ministry of Foreign Affairs and the Prime Ministry. DIB and other state/government institutions organize joint conferences and organizations, and they host each other in order to manifest that they share a similar vision. DIB functions in a way to ensure that Turkey does not sacrifice its cultural and religious values to enjoy hard power but cares about human beings and their humanitarian needs. As a part of Turkey’s public diplomacy strategy, DIB not only serve the prestige of Turkey, but also it seeks to highlight the ignorance of the rest of the world to show the difference between conscientious Turkey and the others. DIB is again active in the old Ottoman regions to serve people Turkey has historical and religious ties as a part of AKP’s vision of foreign policy. Since borders are not absolute but imagined in AKP’s foreign policy, DIB does not distinguish between the borders and peoples to lend a helping hand. DIB also creates ties with the Turks abroad to teach Turkish-Islamic culture especially to the ones who were not born in Turkey. Lastly, DIB functions as a means to support that Turkey is a part of the Islamic world and is maybe the most powerful one among the states with Muslim populations. 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Retrieved May 1, 2013, from http://www.ytb.gov.tr/ 116 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1553 Title A name given to the resource The Collateral of the Rising Public Diplomacy in Turkey: The Presidency of Religious Affairs and the Religious Diplomacy Author Author SUNAR, Burcu Abstract A summary of the resource. It has been widely discussed whether Turkish foreign policy has been changing since the Justice and Development Party (AKP hereafter) came into power in 2002. Among the new concepts which signal a probable change in the foreign policy, “public diplomacy” seems to be a significant one considering that AKP has even founded the Office of Public Diplomacy in 2010 within the Turkish Prime Ministry. Public diplomacy, the task of serving national interests through influencing foreign states’ peoples, winning their hearts and minds, instrumentalizes a state’s traits and is carried by many public institutions. Religion is one of the cultural traits of a state which serves public diplomacy with its binding influence on public. For a few decades, the terms “religious diplomacy”, “inter-religious diplomacy” or “faith diplomacy” have been used to indicate the positive impact of religion on diplomacy, especially on “public diplomacy” which addresses public rather than the traditional diplomatic institutions. Religious diplomacy has mainly two meanings. On the one hand, it means establishing an interreligious dialogue between states and their societies. On the other hand, it implies promoting religiously based relations with other states and their societies sharing the same religion. In Turkey, Presidency of Religious Affairs is the main carrier of religious diplomacy as it has started be expressed by the Presidency itself. A closer look at the campaigns and policies of the Presidency especially in the Balkans, Africa and the Middle East in the last decade shows that it complements the government’s public diplomacy establishing religious ties with the states especially which have Muslim populations. The Presidency is organizing humanitarian aid campaigns for Muslims suffering all around the world while participating in the ones the government organizes. In press releases, The Presidency addresses all people and all international organizations to free the Muslims from poverty, injustice and violence. It also regulates the education of the religious personnel who are to work outside of the Turkish borders. The Presidency organizes international programs for those willing to “construct a future based on their cultural origins” and “satisfy the religious, cultural, social and psychological needs of the Muslims with their knowledge on Islamic theology.” Looking at the campaigns, press releases, international programs, conferences, seminars and the discourse used in these, the paper tries to show how the Presidency cooperates with the government serving public diplomacy. In this research, the aim is to stress the contribution of The Presidency of Religious Affairs to the public diplomacy especially in the last decade. It can be easily observed that aid campaigns for Muslim populations outside of the border have become a major divisive issue and divided the Turkish population into two as the ones willing to help poor Muslim people for the sake of God and/or humanity and the ones criticizing this argument insisting that Turkey has itself helpless people inside of its own borders. The motivation of the presentation is to point out the insufficiency of the discussion whether AKP unnecessarily engages with Muslim populations outside of the Turkish borders. For a few decades, public diplomacy and religious diplomacy as its complementary have been crucial tools in international relations, and analyzing the AKP’s partaking in humanitarian campaigns outside the borders without taking this viewpoint into consideration would be fall short. Therefore, the presentation intends to remark that The Presidency of Religious Affairs with the religious diplomacy it carries has also been an element in international relations for a while and analysis on AKP’s foreign policy should also pay attention to this religious diplomacy dimension as a part of public diplomacy strategy. Keywords: Public Diplomacy, Religious Diplomacy, the Presidency of Religious Affairs, the Justice and Development Party (AKP), Foreign Policy Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 978-9958-834-23-3