<?xml version="1.0" encoding="UTF-8"?>
<itemContainer xmlns="http://omeka.org/schemas/omeka-xml/v5" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:schemaLocation="http://omeka.org/schemas/omeka-xml/v5 http://omeka.org/schemas/omeka-xml/v5/omeka-xml-5-0.xsd" uri="https://omeka.ibu.edu.ba/items/browse?output=omeka-xml&amp;page=215&amp;sort_field=added" accessDate="2026-06-22T20:34:28+01:00">
  <miscellaneousContainer>
    <pagination>
      <pageNumber>215</pageNumber>
      <perPage>10</perPage>
      <totalResults>3494</totalResults>
    </pagination>
  </miscellaneousContainer>
  <item itemId="2248" public="1" featured="0">
    <fileContainer>
      <file fileId="3302">
        <src>https://omeka.ibu.edu.ba/files/original/9edeeaf430df68abae993679141b43df.pdf</src>
        <authentication>15bb98e5a755a17e23f5656aff2fa2e1</authentication>
        <elementSetContainer>
          <elementSet elementSetId="4">
            <name>PDF Text</name>
            <description/>
            <elementContainer>
              <element elementId="52">
                <name>Text</name>
                <description/>
                <elementTextContainer>
                  <elementText elementTextId="18180">
                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Erkoyuncu, I., (1995). Fisheries biology and population dynamics. Ondokuz Mayıs
University, Faculty of Fisheries, Sinop, Turkey, pp. 265 (in Turkish).
Froese, R. (2006). Cubelaw, condition factor and weight-length relationships: history, metaanalysis and recommendations. J.Appl.Ichthyol. 22, 241-253.
Gonçalves, J.M.S., Bentes, L., Lino, P.G., Ribeiro, J., &amp; Canaroo, A.V.M., (1997). Weightlength relationships for selected fish species of the small-scale demersal fisheries of the south
and south and southwest coast of Portugal. Fish. Res., 30(3), 253-256.
Koutrakis, E.T., &amp; Tsikliras, A.C., (2003). Length-weight relationships of fishes from three
northern Aegean estuarine systems (Greece). J. Appl. Ichthyol. 19, 258-260.
Lalèyè, P.A., (2006). Length-weight and length-length relationships of fshes from the Ouémé
River in Bénin(West Africa). J. Appl. Ichthyol. 22, 330-333.
Moutopoulos, D.K., &amp; Stergiou, K.I., (2002). Length-weight and length-length relationships
of fish species of the Aegean Sea (Greece). J. Appl. Ichthyol. 18(3), 200-203.
Pauly, D., (1993). Fishbyte section editorial. Naga, the ICLARM Quarterly, 16, pp. 26.
Petrakis, G., &amp; Stergiou, K.I., (1995). Weight-length relationships for 33 fish species in Greek
waters. Fish. Res. 21, 465-469.
Wootton, R.J., (1990) Ecology of teleost fishes. Chapman and Hall, London.

Could government legalize illegal settlement by improving their energy efficiency?
Janjusevic Jelena, Begovic Radojevic Milica,
UNDP, Podgorica; Montenegro
Abstract
In recent months we are faced with serious budget problems in Montenegro, the solution of
which, among other things is seen in reducing the number of employees in state
administration. On the other hand, the costs of living are significantly above the disposable
budget of households. Particular problem is the high cost of electricity, which recently
132

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

resulted in the street protests of discontented citizens. On one hand we have a government that
alerts the lack of electricity, and on the other hand we have citizens that may hardly cover
these costs. In addition, Montenegro is dealing with a double-challenge of inefficient space
use (country features over 100,000 illegal homes, if distributed evenly implying that every
other family lives in an illegal home) and inefficient energy use (Montenegro needs on
average 8.5 times more energy per unit produced than an average EU country).
1.How to solve a problem and please both sides? Is that feasible at all?
UNDP office in Montenegro came up with the idea to link solving the big problems in
Montenegro, such as the problem of illegal construction, with increasing the level of energy
efficiency in households, businesses and other facilities. Namely, UNDP proposes an
integrated policy solution to the double-challenge in providing energy efficiency measures to
incentivize households to legalize their homes. The idea and research that was recently
conducted show how the legalization of illegal buildings by the introduction of mandatory
energy efficiency measures in them, may at the same time result in the increase of revenue to
the central and local budgets, reduction of negative impact on the environment, increase of
employment, engagement of the economy, reduction of electricity consumption and thereby to
reduce the need to import electricity, and ultimately to contribute to the welfare of the
population.
Our research (energy audits) conducted on 30 illegal houses in three pilot municipalities
showed that significant savings in energy consumption could be realized (up to 60%). Based
on these results, we propose an approach to formalizing informal settlements in Montenegro
through implementing an energy efficiency incentive system for the households. The scheme
is broken down into 2 steps: (1) a household receives a loan to improve energy efficiency. On
average for a 100m2 household, €3,800 loan (with 4.5% interest rate) results in 59% of
energy savings or €630 per year at the current energy prices; (2) a household enters into a
contractual agreement with the Government/municipality to use the savings from energy
efficiency to pay off the low-interest loan it received for the retrofit and the formalization
cost.
The benefit for the household is dual- a title to the house and improved energy
efficiency/resulting financial savings. The benefit for the municipality/Government is the
steady supply of funding for the property tax. The benefit for the private sector is the increase
in demand for retrofits and upgrading of the infrastructure that services informal settlements.
Keywords: energy efficiency, sustainable development, illegal construction, energy audits,
retrofitting

133

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

2.INTRODUCTION
The world is experiencing three inter-related crises at the moment. One regards the rising
trend of resource prices. The resource price index in the 20th century fell by 50% even
though the population quadrupled, economic output rose 4 times, and demand for fossil fuels
and water increased by 16 and 9 percent respectively. The first decade of 21st century
reversed this trend, and relative to the beginning of 20th century in 2010 the index rose by
147%1. This is a result of a combination of factors: rising demand and population, decreasing
sources of supply, volatility of supply (most fossil fuel deposits are located in conflict prone
locations such as Iran, Saudi Arabia, Venezuela). If we continue on this path, by 2050 we
would need three times more resources and this is simply no longer an option, which brings us
to the second crises.
This crisis regards the rising inequality globally within countries. During the last several
decades, millions of people around the world have been lifted out of poverty. In Central and
Eastern Europe, some 90 million people or 18% of its population moved out of poverty since
1999. Despite this, 30% of the region’s population is still considered poor or vulnerable, with
the number rising by 5 million for each 1% of decline in GDP2. The recent ILO report echoes
this in noting that the ‘society is becoming increasingly anxious about the lack of decent jobs.
The findings show that Social Unrest Index in 2011 rose in 57 out of 106 countries, as more
people were pushed out of labor market, predominantly impacting youth and women. So
what does this mean for societies across the world? The recent research shows that more
unequal societies feature far more social problems including high rates of suicide, obesity,
teenage pregnancy, imprisonment, and low levels of literacy, trust, life expectancy3. In short,
the economic growth does not yield human development returns in those high developed
countries that features high levels of inequality and that subsequently invest the bulk of their
public resources into prisons, policy, and defence and health services to deal with the growing
amount of social problems.
Finally and linked with the other two crises, the world is at a tipping point in regard to the loss
of vital ecosystem services and extreme events- both connected to the changing climate.
Some 60% of ecosystem services that underpin our economies and life on earth have been
degraded, some beyond the point of return. Recently published research in the Journal of
Nature that for the first time compared effects of biodiversity loss to other human-caused
environmental changes analyzed 12 peer-reviewed articles and concluded that reduced
biodiversity affects ecosystems at levels comparable to those of pollution and global

1 McKinsey’s ‘Resource Revolution’ The report last accessed on May 4th 2012.
http://www.mckinsey.com/Features/Resource_revolution
2 This World Bank study quoted in ‘The Economic and Financial Crisis in CEE and CIS: Gender
Perspectives and Policy Choices’ last accessed on May 4th 2012 at:
http://www.levyinstitute.org/pubs/wp_598a.pdf
3 Richard Wilkinson, Kate Pickett ‘The Spirit Level: Why More Equal Society Almost Always Do Better’
Allen Lane, 2009
134

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

warming4. In layman terms, this means that environment’s ability to provide clean water,
food and stable climate is seriously undermining the quality of life and human development
globally. In terms of disasters, in November last year IPCC published first scientific proof
that the changing climate results in an increase in frequency and intensity of extreme weather
events5. Our region experienced some $70 billion disaster-related losses during the last two
decades6.
The three crises are related, mutually reinforcing one another and creating a vicious cycle that
impacts all segments of sustainable human development- economic competitiveness, social
inclusion and environment. Any viable solution must match the complexity of the crises,
addressing them in an integrated manner that will unleash economic growth and job creation,
while at the same time conserving the biodiversity and maintaining the balanced environment.
This paper will present one such integrated solution that aims to resolve the multi-dimensional
development challenge of informal housing (low economic empowerment, rising pressure on
environment, high exposure to extreme events, inefficient resource use, low quality of life). It
will demonstrate how UNDP plans to utilize main principles of green economy to provide
economic empowerment to the citizens in Montenegro.
3.What is a Green Economy?
UNEP defines a green economy as one that results in improved human well-being and social
equity, while significantly reducing environmental risks and ecological scarcities. In its
simplest expression, a green economy can be thought of as one which is low carbon, resource
efficient and socially inclusive. In a green economy, growth in income and employment
should be driven by public and private investments that reduce carbon emissions and
pollution, enhance energy and resource efficiency, and prevent the loss of biodiversity and
ecosystem services. These investments need to be catalyzed and supported by targeted public
expenditure, policy reforms and regulation changes.7
The development path should maintain, enhance and, where necessary, rebuild natural capital
as a critical economic asset and as a source of public benefits, especially for poor people
whose livelihoods and security depend on nature.
4 http://www.clickgreen.org.uk/research/trends/123462-biodiversity-loss-is-as-damaging-as-climatechange-and-pollution.html
5 The IPCC Special Report on Managing the Risks of Extreme Events and Disasters to Advance Climate
Change Adaptation, PDF presentation last accessed on May 4th 2012
http://www.ipcc.ch/news_and_events/docs/srex/SREX_slide_deck.pdf
6 From Transition to Transformation: Sustainable and Inclusive Development in Europe and Central
Asia, report last accessed on May 4th 2012 at
http://www.unece.org/fileadmin/DAM/publications/oes/RIO_20_Web_Interactif.pdf
7 UNEP, Towards a Green Economy, Pathways to Sustainable Development and Poverty Eradication,
2011
135

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

It is very important to understand that the concept of a “green economy” does not replace
sustainable development. However, there is a growing recognition that achieving
sustainability rests almost entirely on getting the economy right.
Perhaps the most widespread myth is that there is an inescapable trade-off between
environmental sustainability and economic progress. There is now substantial evidence that
the “greening” of economies neither inhibits wealth creation nor employment opportunities,
and that there are many green sectors which show significant opportunities for investment and
related growth in wealth and jobs.
Also, many theorists and practitioners believe that green economy is a luxury only wealthy
countries can afford, or worse, a developed-world imposition to restrain development and
perpetuate poverty in developing countries. Contrary to this perception, there are numbered
examples of greening transitions taking place in various sectors in the developing world,
which deserve to be emulated and replicated elsewhere.
The last two years have seen the idea of a “green economy” float out of its specialist moorings
in environmental economics and into the mainstream of policy discourse. It is found
increasingly in the words of heads of state and finance ministers, in the text of G20
communiqués, and discussed in the context of sustainable development and poverty
eradication.
Over the last quarter of a century, the world economy has quadrupled, benefiting hundreds of
millions of people. In contrast, however, 60% of the world’s major ecosystem goods and
services that underpin livelihoods have been degraded or used unsustainably. Indeed, this is
because the economic growth of recent decades has been accomplished mainly through
drawing down natural resources, without allowing stocks to generate, and through allowing
widespread ecosystem degradation and loss.
Meanwhile, for the first time in history, more than half of the world population lives in urban
areas. Cities now account for 75% of energy consumption and 75% of carbon emissions.
Rising and related problems of congestion, pollution, and poorly provisioned services affect
the productivity and health of all, but fall particularly hard on the urban poor. With
approximately 50% of the global population now living in emerging economies that are
rapidly urbanizing and will experience rising income and purchasing power over the next
years – and a tremendous expansion in urban infrastructure – the need for smart city planning
is paramount.
4.Energy efficiency
People have always used energy to do work for them. Thousands of years ago, early humans
burned wood to provide light, heat their living spaces, and cook their food. Later, people used
136

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

the wind to move their boats from place to place. A hundred years ago, people began using
falling water to make electricity.
Today, people use more energy than ever from a variety of sources for a multitude of tasks
and our lives are undoubtedly better for it. Our homes are comfortable and full of useful and
entertaining electrical devices. We communicate instantaneously in many ways. We live
longer, healthier lives. We travel the world, or at least see it on television and the internet.
In 1973, when Americans faced their first oil price shock, people didn’t know how the
country would react. How would Americans adjust to skyrocketing energy prices? How
would manufacturers and industries respond? We didn’t know the answers.
Now we know that Americans tend to use less energy when energy when energy prices are
high. We have the statistics to prove it. When energy prices increased sharply in the early
1970s, energy use dropped, creating a gap between actual energy use and how much the
experts had thought Americans would be using. The same thing happened when energy prices
shot up again in 1979, 1980, and 2008—people used less energy. When prices started to drop,
energy use began to increase.
In 2009, the United States used 27 percent more energy than it did in the 1970s. That might
sound like a lot, but the population increased by over 43 percent and the nation’s gross
domestic product (the total value of all the goods and services produced by a nation in one
year) was 2.6 times that of the 1970s.
If every person in the United States today consumed energy at the rate we did in the 1970s,
we would be using much more energy than we are - perhaps as much as double the amount.
Energy efficiency technologies have made a huge impact on overall consumption since the
energy crisis of 1973.
Mankind is facing one of the greatest challenges in its history: developing in order to “meet
the needs of present generations without compromising the ability of future generations to
meet their needs”8. Increasing demands for natural resources, weakening of ecosystems,
global warming and soaring population growth are just a few of the global issues confronting
us. Since the end of the 1960s there have been more and more global initiatives to reduce
social and ecological imbalances. The movement is now speeding up: those involved are
becoming aware of the role they can play within their sphere of influence and of the
interdependence between the various aspects of sustainable development.
Improving energy efficiency is mostly connected with buildings, both residential and
business, changes and the main challenge now is to design, build and renovate buildings to
8 Our Common Future, Brundtland Report, 1987
137

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

reduce their environmental impact and create areas that are healthy and comfortable for the
occupants.
Throughout their life cycle, buildings consume natural resources, generate waste and emit
large amounts of CO2, contributing significantly to global warming. A large proportion of the
world's population, particularly in the developed countries, spends 90% of its time indoors
(source: OECD). In this context, questions of hygiene standards inside buildings and the
comfort of occupants are also central issues in the debate.
At building level, energy efficiency covers all the methods used to reduce the energy used for
a given service (heating, lighting, operating machines, etc.). Two types of energy efficiency
are generally taken into consideration:
Energy efficiency associated with the framework This corresponds to the structural properties
of the building that will reduce energy requirements (and in particular heating and lighting).
This category includes: optimized insulation, double glazing, treatment of heat bridges,
management of openings (doors and windows) and coverings (blinds and shutters).
Energy efficiency from high-performance equipment and as a result of the management of
this equipment. High-performance equipment is that providing the best efficiency.
Equipment management is used to adapt the level and duration of the provision of energy to
requirements. It corresponds to the installation of products and systems that will regulate and
automate energy consumption in the building in order to avoid unnecessary consumption.
Energy efficiency retrofits provide an opportunity to reduce greenhouse gas emissions,
generate economic activity, save billions in energy costs, and ensure the long-term viability of
affordable housing. However, there is insufficient data on how much energy these upgrades
actually save, and therefore little data on what the return on investment would be for lenders.
Without this data, it is very difficult to secure upfront capital investments in retrofits,
inhibiting this sector’s capacity to scale.
5.Montenegro and legalization problem
In the past decade, Montenegro has witnessed rapid urbanization fuelled by foreign direct
investment on the Adriatic coast and in mountain resorts. This growth, which has significantly
increased the GDP of the country for several years has, in parallel, caused negative effects
such as urban sprawl in previously natural landscapes along the coast and around the capital
Podgorica, resulting in large numbers of informally built constructions (that is without a
construction permit), both commercial and residential, that have very low energy efficiency
characteristics, resulting in an overall increase in CO2 emissions due to rising energy demand
in buildings. According to one estimate, there are approximately 100,000 such informal
constructions, though there are no clear statistics. Approximately 62% of the population of
Montenegro lives in urban areas and the quality of their life is under pressure from urban
development problems. Uncontrolled urbanization, especially in the central area (around
138

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

Podgorica and other cities) and the coastal areas (seaside tourist development), is having
negative impacts, such as overcrowded settlements and inaccessibility to infrastructure.
Informal constructions in Montenegro generally fall under three broad categories:
A building constructed on a parcel of land that legally belongs to the owner. The owner
obtained the necessary ‘construction permit’ but did not secure the ‘use permit’ from the
municipal authorities, which is required by law to ensure that the housing unit was built
according to specifications approved in the ‘construction permit’. Owners are required to pay
specified municipal fees to obtain the ‘use permit’.
A building constructed on own land by the owner of the land, but without both the
‘construction permit’ and the ‘use permit’.
A building constructed on state or municipal land without the express consent of the owner
and without the necessary ‘construction or ‘use permit’.
Nearly all Montenegrin households (&gt;99%) are connected to the electricity grid and metered.
Based on the latest available data, average monthly electricity consumption in Montenegro in
2001 was 367 kWh per household. This makes that average monthly bill for electricity per
household amounts cca 100 euro. According to the estimation of Ministry of Economy of
Montenegro 80% of the electricity in the household is used for the heating. Most homes are
heated through an electric radiator system, an electric thermal accumulator or an individual
heating system. Wood is one of the most popular heating sources in individual houses in
Montenegro, especially in the North, but almost absent in the South and in apartment
buildings.
Assuming that the 100,000 informal constructions have the same average energy consumption
profile as regular houses (a highly conservative assumption given their generally sub-standard
workmanship and hence low EE), the informal housing sector is estimated to account for over
one-quarter of Montenegro’s residential energy consumption and 7% of the country’s energybased GHG emissions. The irregular sector is also characterised by relatively high energy
poverty: systematic data are scarce but some observations suggest that up to 40% of people
living in the irregular housing sector do not have access to sufficient energy services to ensure
a healthy lifestyle for themselves and their families.
Buildings constructed without building permits in most cases have not been subject to the
process of verification of application of standards, neither in the course of design
development nor during performance of works, particularly from the aspect of seismic risk.
Existence of a large number of informal buildings, primarily residential facilities, highlights
the urgent need for organized approach to resolving the problem of regularization of such
buildings and verifying achieved level of their static and seismic protection.

139

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

The Government of Montenegro has adopted a National Formalisation Program (NFP) and
Action Plan to regularize the vast stock of informal individual housing. The new
Regularization Law will mandate all owners of illegal houses to undergo mandatory building
registration process; it will impose penalties (up to building demolition) for those property
owners who fail to comply with the requirements. The Law and bylaws will also stipulate the
administrative procedures and financial costs associated with legalization.

6.UNDP approach to the legalization problem
National Formalization Program, will result in new policies, regulation and significant
investment to transform illegal housing stock into regularized and law-compliant buildings.
However, if implemented as designed, NFP will not bring in energy efficiency improvements
in individual houses, which are now characterized by poor thermal performance, high energy
use and offer major opportunities for cost-effective GHG emission reduction. In order to
address this problem, UNDP design the National Formalization Program in such manner that
it would incorporate mandatory requirements and financial support package for energy
efficiency improvements as outlined in the following section.
The formalisation of Montenegro’s large informal buildings sector represents a unique
opportunity to not only insert EE considerations into regulation of this building stock (for the
first time ever), but also to integrate informal neighbourhoods and settlements into municipal
governments’ spatial planning in order to address urban-system GHG mitigation opportunities
in a ‘joined up’ manner.
7.UNDP research in energy efficiency of the illegal houses
In the beginning of 2011 Ministry of Sustainable Development and Tourism of Montenegro
and UNDP agreed on join implementation of three new pilot projects which deal with
problem of transformation of informal settlements to formal. This is related to three
municipalities: Zabljak, Bijelo Polje and Bar.
Projects activities resulted in:
identifying alternative solutions for formalization of informal settlements
giving initial study on the energy efficiency characteristics of the informal building sector in
Montenegro and an assessment of the economic mitigation potential of the sector, with
particular focus on the Government’s Formalization Programme and how the Programme can
be harnessed to maximize mitigation outcomes – in terms of the buildings themselves and
also how they can be best integrated into broader urban planning.
proposing different economical scenarios for formalization process
140

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

encouraging housing opportunity for people of low and moderate income by creative, flexible,
and innovative approach to resolving this issue
Purpose of the energy audits was to determine a baseline for consumption and potential
savings giving the most basic renovation/retrofit measures. Every energy audit consisted of
basic information about the existing object, its current use, dimensions, number of inhabitants,
heating periods during the day and the whole year, local climate characteristics etc. Data on
average yearly consumption of electricity and consumption of water was collected from
Public Utility Companies. This was provided with assistance of municipal officials9.

Figure 1: The appearance of used software
Energy audit team used the following measuring equipment during the inspection of the
buildings :Thermal Imager-3 Testo880 PROSet; Data loggers for measuring temperature and
humidity Testo 175 and Testo 635-2 Luksmetar.

9 Calculation of building energy performance was performed using: ENSI (Energy Savings
International AS) "ENSI EAB CG 8.1". The algorithm for calculation in the current version of the Key
Number software relies mainly on the EN ISO 13790:2004 standard. Economic calculation is done in
the "ENSI Profitability Software - Version 7.0".
141

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

Figure 2: Results of thermal camera imaging (one of the audited buildings in Bijelo Polje)
After revision of all provided audits, a general conclusion regarding possibilities for EE
retrofitting in informal settlements is that, on average, with €3,800 investment in retrofits the
annual savings are €700 (payoff in less than 6 years), and this is in accordance with current
energy prices (€ 0.7/kWh as opposed to € 0.17 kWh which is average within liberalized
energy market in Europe).
More detailed average results are, as follows:

Average building (heated) area
Average electricity bill [€/god]
(for 2009/2010/2011)
Baseline
(kWh/m2 year)
Baseline
(kWh/year)
After EE retrofit measures
(kWh/m2year)
After EE retrofit measures
(kWh/year)
Calculated savings
(kWh/m2year)
Lowering of CO2 emission
(tons/year)
142

116.80
1240.32

468.81

52771.05

169.74

20122.85

303.49

0.82

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

Assessment of the investment in EE retrofit
measures
4458.20
[€]
Net savings
[€/year]
Return on investment [year]

736.15
5.60

Savings in delivered energy / wooden logs
32945.80
(kWh/ year)
Savings in delivered energy / electrical energy
(kWh/ year)

574.65

The most cost effective and most often basic EE measures that have been suggested are:
appropriate isolation of external walls
replacement of windows/doors
isolation of roofs
EE audits also suggested implementation of additional measures, such as installation of
central heating, which will not significantly improve EE performance, but will in general raise
a living comfort for the inhabitants. These measures are relatively expensive, and with longer
return on investment, but they are also included in narrative part of audits, in order to be
considered by the owners as possibility for additional improvement of living conditions.
General conclusion is that energy efficiency measures can be used as a tool for encouraging
owners of the informal object to apply for legalization. Calculation showed that that each
household that apply for formalization will have almost the same cost as it pay regularly for
electricity today, but now this cost covers electricity bill, but also retrofitting and
formalization. This means that with the same amount of financial resources, they will have
legal object, energy efficient and safer house.
Energy efficiency measures can be used as a tool for encouraging owners of the informal
object to apply for legalization. The main idea is to increase number of applicants, and on the
other side to provide solution that would be in line with principles of sustainable development
and status of Montenegro as ecological state.
Below is explained one of possible the scenarios for formalization using energy efficiency
measures as incentive, for average residential building of 100m2.

143

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

EE measure as incentives – calculation:
(Example – residential house of 100m2, with average monthly energy bill – 100 euros.)

Size of
Houshold

Cost
for Saving
energy
per
month (euro)

Formalization
(50e per m2)

100

90

5000 €

59%

cost Retrofitting
cost(interest
rate 4.5% on investment
3800eur)
5760

Scenario after retrofitting
(costs)
Electricity bill Monthly
Monthly
Total
(euro)
formalization
retrofit cost, 15
cost, 20 yr yr period
period
Monthly

36.9

20.9

32

89.9

The idea is to use possibility of getting soft loan with no or very low interest rate, with 20
years period for repayment that will be used for retrofitting the object. The main condition for
loan is IF household apply for formalization process.
This calculation shows that each household that apply for formalization will have almost the
same cost as it pays regularly for electricity today, but now this cost covers electricity bill,
but also retrofitting and formalization. This means that with same amount of financial
resources, they will have legal object, energy efficient and safer house.
Revenue from formalization to government
Monthly

Yearly

After 20 years

2,083,333.33€

25,000,000€

500,000,000€

Through identifying alternative solutions for formalization of informal settlements and
integration of sustainable development principles into planning process, this project will
contribute to establishment of the link between economic growth, poverty reduction and
environmental sustainability.

144

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

8. CONCLUSION
The paper demonstrates potentials for using energy efficiency as an incentive for
formalization of illegal households. Building on the wealth of research on decision making
and behavioral economics, the solution features a revenue-neutral option that addresses dual
challenges from the consumers’ perspectives (households: inefficient use of energy and illegal
house) and dual challenge from the providers’ perspective (Government: low real estate tax
collection and low investment in infrastructure).
This solution has never been tested before. It will require a multidimensional approach to
systemic level change (new regulation and policy development), institutional level change
(establishing novel links between the municipal and national level, designing novel processes
for financial management) and individual level (capacity building, behavioral change). On
the positive note, regardless of its success, this proposal is likely to yield important lessons on
the potential for manipulating incentives for green economy.
Implications for future research include consideration of incentives related to clean energy
production (e.g. solar and wind power) and sustainable urban development (e.g.
municipality’s capacity to manage incoming funding for a greener and sustainable
urbanization).
LITERATURE
„More Urban—Less Poor, Fighting poverty in an urban world“, Göran Tannerfeldt and Per
Ljung, August 2006
„Trade and Development Report, UNCTAD, 2011,
“Trends and Progress in Housing reforms in South Eastern Europe, Sasha Tsenkova, CEB,
October 2005
„Towards a Green Economy, Pathways to Sustainable Development and Poverty
Eradication“, UNEP, 2011
“Energy Efficiency: Engine of Economic Growth”, Jamie Howland &amp; Derek Murrow, Lisa
Petraglia &amp; Tyler Comings, Economic Development Research Group, Inc, October 2009
“Our Common Future”, Brundtland Report, 1987
“Why More Equal Society Almost Always do Better’ Richard Wilkinson, Kate Pickett ‘The
Spirit Level: Allen Lane, 2009
145

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

“From Transition to Transformation: Sustainable and Inclusive Development in Europe and
Central Asia”, report, 2011
Web:
http://www.mckinsey.com/Features/Resource_revolution
http://www.clickgreen.org.uk/research/trends/123462-biodiversity-loss-is-as-damaging-asclimate-change-and-pollution.html
http://www.levyinstitute.org/pubs/wp_598a.pdf
http://www.ipcc.ch/news_and_events/docs/srex/SREX_slide_deck.pdf
http://www.unece.org/fileadmin/DAM/publications/oes/RIO_20_Web_Interactif.pdf
www.undp.org.me
www.mek.gov.me
www.energetska-efikasnost.me

Situation Of The Dikili Gulf Fishes For Sustainable Fisheries
Mehmet İkiz1, Hatice Koç Torcu 2, Fatih Güleç1
1- Ege Üniversitesi, Su Ürünleri Fakültesi, 35080 İzmir
2- Balikesir University, Faculty of Science and Arts, Balikesir-Turkey
E-mails: mikiz@mynet.com, htorcukoc@hotmail.com, mc305@live.com
Abstract
Conservation fish stocks in the aquatic ecosystem is important for sustainable fish production.
Continuation of the fish species generations in a habitat is affected by environmental
conditions and hunting pressure. For the sustainability of the reproductive abilities of fishes, it
is essential to know interactions with the the other species that live in habitat. In this way the
production models, that encourage the fish to grow in its natural habitat, can be developed. In
this study, the fish species that live in Dikili Bay of Izmir City and their economic features
were investigated. Fish species that live in Dikili Bay were examined systematically and
biologically; also identification keys of the species were formed. Morphometric and meristic
characters of obtained species were identified. In the examination, 70 species belonging to 39
families were identified. 9 species of these belong to chondrichythyes and 61 to osteichtyes.
31 of these species are economically important species and are hunted. 2 of them (Sea bream
and sea bass) are farmed in Turkey, also. As a result of inadequate protection measures and
mindless hunting, it was observed 31 economically important and identified species, that live
146

�</text>
                  </elementText>
                </elementTextContainer>
              </element>
            </elementContainer>
          </elementSet>
        </elementSetContainer>
      </file>
    </fileContainer>
    <elementSetContainer>
      <elementSet elementSetId="1">
        <name>Dublin Core</name>
        <description>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/.</description>
        <elementContainer>
          <element elementId="79">
            <name>Extent</name>
            <description>The size or duration of the resource.</description>
            <elementTextContainer>
              <elementText elementTextId="18174">
                <text>1238</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="50">
            <name>Title</name>
            <description>A name given to the resource</description>
            <elementTextContainer>
              <elementText elementTextId="18175">
                <text>Could government legalize illegal settlement by improving their energy efficiency?</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="96">
            <name>Author</name>
            <description>Author</description>
            <elementTextContainer>
              <elementText elementTextId="18176">
                <text>Janjusevic,  Jelena</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="94">
            <name>Abstract</name>
            <description>A summary of the resource.</description>
            <elementTextContainer>
              <elementText elementTextId="18177">
                <text>In recent months we are faced with serious budget problems in Montenegro, the solution of  which, among other things is seen in reducing the number of employees in state  administration. On the other hand, the costs of living are significantly above the disposable  budget of households. Particular problem is the high cost of electricity, which recently resulted in the street protests of discontented citizens. On one hand we have a government that  alerts the lack of electricity, and on the other hand we have citizens that may hardly cover  these costs. In addition, Montenegro is dealing with a double-challenge of inefficient space  use (country features over 100,000 illegal homes, if distributed evenly implying that every  other family lives in an illegal home) and inefficient energy use (Montenegro needs on  average 8.5 times more energy per unit produced than an average EU country).</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="40">
            <name>Date</name>
            <description>A point or period of time associated with an event in the lifecycle of the resource</description>
            <elementTextContainer>
              <elementText elementTextId="18178">
                <text>2012-05-31</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="97">
            <name>Keywords</name>
            <description>Keywords.</description>
            <elementTextContainer>
              <elementText elementTextId="18179">
                <text>Conference or Workshop Item
PeerReviewed</text>
              </elementText>
            </elementTextContainer>
          </element>
        </elementContainer>
      </elementSet>
    </elementSetContainer>
    <tagContainer>
      <tag tagId="24">
        <name>S Agriculture (General)</name>
      </tag>
    </tagContainer>
  </item>
  <item itemId="2249" public="1" featured="0">
    <fileContainer>
      <file fileId="3303">
        <src>https://omeka.ibu.edu.ba/files/original/68a47120ae18ec74cd7d533e54a2be14.pdf</src>
        <authentication>f7ba5d25d9c3b40841699af4cf75665e</authentication>
        <elementSetContainer>
          <elementSet elementSetId="4">
            <name>PDF Text</name>
            <description/>
            <elementContainer>
              <element elementId="52">
                <name>Text</name>
                <description/>
                <elementTextContainer>
                  <elementText elementTextId="18187">
                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Talinli, I., Topuz, E. and Akbay, M.U. (2010) Comparative Analysis for Energy Production
Processes (EPPs): Sustainable Energy Futures for Turkey, Energy Policy, 38, 44794488.
Toksarı, M. and Toksarı, M.D. (2011) Bulanık Analitik Hiyerarşi Prosesi (AHP) Yaklaşımı
Kullanılarak Hedef Pazarın Belirlenmesi, ODTÜ Gelişme Dergisi, 38, 51-70.
Tseng, M-L., Lin, Y-H. and Chiu, A.S.F. (2009) Fuzzy AHP-Based Study of Cleaner
Production Implementation in Taiwan PWB Manufacturer, Journal of Cleaner
Production, 17, 1249-1256.
Wang, L., Xu, L. and Song, H. (2011) Environmental Performance Evaluation of Beijing's
Energy Use Planning, Energy Policy, 39, 3483-3495.
Zheng, G., Jing, Y., Huang, H., Shi, G. and Zhang, X. (2010) Developing a Fuzzy Analytic
Hierarchical Process Model for Building Energy Conservation Assessment,
Renewable Energy, 35, 78-87.
Zheng, J. (2011) Enterprise Knowledge Management Application Evaluation Based on Cloud
Gravity Center Model and Fuzzy Extended AHP, Journal of Computers, 6(6), 11101116.

Using Artificial Neural Networks To Forecast Gdp For Turkey

Karaatli Meltem, Göçmen Yağcilar Gamze, Karacadal Hüseyin, Sezer Fırat Suleyman
Suleyman Demirel University, Isparta, Turkey
E-mails: meltemkaraatli@sdu.edu.tr,gamzeyagcilar@sdu.edu.tr,
huseyin_karacadal@hotmail.com,cihangir_07_@hotmail.com

Abstract
Artificial Neural Networks (ANN) is a system resembling biological neural systems and uses
working principles of human brain as a base. ANN can be applied in various fields for the
purposes of forecasting, classification, optimization, data binding and so on. ANN has been
frequently used in financial applications in recent years. In this study, ANN is used in
forecasting Gross Domestic Product of Turkey. Gross Domestic Product (GDP) refers to the
market value of all final goods and services produced within a country in a given period. GDP
can be thought as the size of an economy and it is the foremost important measure of
macroeconomic performance of a country, a country’s health and standard of living.
Therefore, expectations about future GDP can be the primary determinant of investments,
employment, wages, profits and even stock market activities. With respect to its economic
326

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

significance mentioned above, the purpose of this study is to forecast Gross Domestic Product
(GDP) for Turkey and to test the ability of ANN Method in forecasting GDP.

Keywords: Importance of Gross Domestic Product, Forecasting, Artificial Neural Networks.

1. INTRODUCTION
Gross Domestic Product (GDP) is the total market value of all the final goods and services
produced within a country’s boarders in a given year. This production is generated by both
citizens of the country and foreigners living in its borders. GDP is one of the most important
indicators of an economic growth, health and welfare. Therefore, it tells us a lot about the real
economic activity.
Calculation of GDP can be basically done in one of two ways: either by adding up what
everyone earned (income approach), or by adding up what everyone spent (expenditure
method) in a year. Logically, both measures should arrive at roughly the same total
(www.investopedia.com). In Turkey, GDP is measured quarterly by TUİK. To compute
economic growth, each quarter is compared to the previous one.
Considering its large impact on almost everybody in an economy, forecasting GDP has a great
importance both theoretically and practically. First of all, GDP represents economic
production and growth. So it gives a signal about the future employment and wages. GDP also
determines stock market return rates. If GDP growth rate is positive, then investors may
expect to gain revenue (www.investopedia.com).By using GDP reports, it can be seen which
sectors of the economy are growing and which ones are declining. This would help investors
to determine whether they should invest in or which sectors they should invest in
(http://useconomy.about.com/od/grossdomesticproduct/p/GDP.htm).
The GDP statistics can help the economists a lot in solving the problems of inflation in the
country. The national income figures throw light as to how much general price level has
increased or decreased, how much of their income people spend on consumption goods and
how much they save? Government can devise measures of controlling inflation or deflation on
the basis of these figures of consumption, saving and investment in the country
(http://www.economicsconcepts.com/gdp_as_a_measure_of_welfare.htm).
In the existing literature, forecasting GDP is widely studied with different methods. In this
paper, we wish to determine whether the forecasting performance of this variable can be
improved using neural network models. In this context, the purpose of this study is to forecast
GDP of Turkey using Artificial Neural Networks (ANN) Method. The rest of this paper is
organized as follows: Section 2 reviews some of the literature on GDP forecasts. Section 3
describes the methodology, while Section 4 presents the results. Finally, section 5 concludes
the paper.

2. Literature review
327

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

Tkacz and Hu (1999) have determined whether more accurate indicator models of output
growth, based on monetary and financial variables, can be developed using neural networks.
The authors have used ANN model to forecast GDP growth for Canada. The main findings of
this study are that, at the 1-quarter forecasting horizon, neural networks yield no significant
forecast improvements. At the 4-quarter horizon, however, the improved forecast accuracy is
statistically significant. The root mean squared forecast errors of the best neural network
models are about 15 to 19 per cent lower than their linear model counterparts.
Marcellino (2007) has evaluated whether complicated time series models can outperform
standard linear models for forecasting GDP growth and inflation for the United States. In the
study, it is considered as a large variety of models and evaluation criteria, using a bootstrap
algorithm to evaluate the statistical significance of the results. The main conclusion is that in
general linear time series, models can be hardly beaten if they are carefully specified.
Schumacher and Breitung (2008) have employed factor models to forecast German GDP
using mixed-frequency real-time data, where the time series are subject to different statistical
publication lags. In the empirical application, the authors have used a novel real-time dataset
for the German economy. Employing a recursive forecast experiment, they have evaluated the
forecast accuracy of the factor model with respect to German GDP.
Guegan and Rakotomarolahy (2010) have conducted an empirical forecast accuracy
comparison of the non-parametric method, known as multivariate Nearest Neighbor method,
with parametric VAR modeling on the euro area of GDP. By using both methods for now
casting and forecasting the GDP, through the estimation of economic indicators plugged in
the bridge equations, the authors have got more accurate forecasts when using nearest
neighbor method. It is also proven the asymptotic normality of the multivariate k-nearest
neighbor regression estimator for dependent time series, providing confidence intervals for
point forecast in time series.
Mirbagheri (2010) has investigated the supply side economic growth of Iran by estimating
GDP growth. In this study, the predictive results of Fuzzy-logic and Neural-Fuzzy methods
are also compared. According to the findings of the study, forecasting by the Neural-Fuzzy
method is recommended.
Ge and Cui (2011) have used process neural network (PNN) into the GDP forecast and
established the forecast model based on PNN by choosing the main factors influencing GDP
and using the dual extraction capacity on time and space cumulative effect of PNN. By means
of comparing and analyzing with traditional neural network forecast model, the result shows
that GDP forecast model which bases on PNN has a better performance.
Liliana and Napitupulu (2010) have also used ANN method in forecasting GDP. In this study,
authors have forecasted GDP for Indonesia and they put forward many advantages and
disadvantages of the method. According to the results, the authors have concluded that the
ANN model has better ability in forecasting the macroeconomic indicators.

3. Methodology
328

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

Artificial neural networks (ANN) may be identified as computing technologies containing
performances and general features of biological neural networks (Deng v.d., 2008:1118).
ANN, developed by imitating the human brain's operating mechanism with the aim of
realizing the basic operations performed by the brain, is a logical computer programming
technique. In a computer media, an algorithm, which attempts to operate as the brain does,
makes a decision, makes a conclusion, arrives at a conclusion on the basis of the existing data
when data are missing, accepts new data input constantly, learns and remembers, is called as
"Artificial Neural Networks".(Kaltakçı, 1997:411-420)
Artificial neural networks consist of many simple processing elements called as nodes or
nerves. Each nerve is attached to the other nerves with weights. These weights indicate the
information used by the network to solve a problem. Nerves are located in each layer and
these layers are interconnected to the other nerves in adjacent layers. A weight gives the
mathematical value of the relative power of information's connections that have been
transferred from one layer to another. Addition function calculates the sum of all the weighted
inputs of a nerve. Activation function is used for the conversion of output in an acceptable
range. (usually 0-1 range). Input layer is identified with the independent variables while
output layer is identified with the dependent variables (Deng v.d., 2008:1118).
Networks having one layer are called single-layered neural networks while networks having
more than one layer are called multilayered neural networks. In a multilayered neural
network, number of neurons in each layer may vary (Hines, 1997; 206). While a singlelayered network consists of an input and output layer, a multilayered network may consist one
or more middle (hidden) layers. As the number of middle layers increases, the ability of
artificial neural network to get statistics from input data also increases (Nygren, 2004).
If an artificial neural network is required to solve a nonlinear problem, a more sophisticated
type of network is needed for these types of problems. Multilayered sensors (MLS) are
network architectures developed for this purpose. This network has a forward network
architecture and a supervised learning method is used (Deng, 2008:1118). MLS consists of an
input layer, one or more middle layers and an output layers. Each layer has one or more
processing elements. All processing elements in a layer is interconnected to all processing
elements in a top layer. The flow of information is forwards and there is no feedback.
Therefore, these types of networks are called as feed-forward neural network model. There is
no information processing in input layer. The number of processing elements in input and
output layers is totally dependent on the practiced problem. The number of middle layers and
the number of processing elements in middle layers are found by trial and error method
(Lippmann, 1987; 24-25).
Each produced output in these types of networks is compared with the target output in each
learning iteration and errors are calculated. By propogating backwards in neural network, this
error is used to correct the weights. This process goes ahead so long as the mean squared error
between target output and output produced by network is minimized (Deng, 2008:1118). For
this reason, this type of network is also called as error propogation model or backpropogation

329

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

network model (Öztemel, 2003:76). These types of networks are illustrated (exemplified) in
Figure 1).
Figure 1: A Multilayered Network Model
Output
Backward
Error Flow

Forward
Activation Flow
Output Layer

…..

Middle Layer

Input

…..

Layer

Input 1

Input 2

Input N

Kaynak: (Hamid ve Iqbal, 2004:1118)

4. Forecasting Gross Domestic Product with ANN
In this study, by the method of artificial neural networks, the gross domestic product has been
estimated on the basis of the calculated data by the method of three-monthly expenditures for
the years of 1998-2010. Data have been drawn from the website of Turkish Statistical
Institute. In the study, 52 pieces of data have been used for each variable covering the threemonthly periods of 13 years. 20% of the data consists of tests and 80% of it consists of
trainings which thus randomly creates 4 different groups.
Gross domestic product consists of a composite of macroeconomic variables such as resident
household consumption, government final consumption expenditure, gross fixed capital
formation, stock exchanges, export and import of goods and services. Gross domestic product
is considered to be dependent variable while household consumption, government final
consumption expenditure, gross fixed capital formation, stock exchanges and export and
import of goods and services and time are considered to be independent variable. Together
with their symbols, the dependent and independent variables used in the study are shown
below.
Gross National Product: GDP
Time: T
330

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

Resident Household Consumption: RHC
Government final consumption expenditure: GFCE
Gross fixed capital formation: GFCF
Stock Exchanges: SE
Goods and Services Expenditures: GSE
Import of Goods and Services: IGS
In the study, as the values of independents are unknown during the desired terms accept the
time variable, GDP ,which is a dependent variable, has been predicted after each independent
variable has been estimated separately depending on the time. Namely, each independent
variable has been considered as dependent variable and they have been predicted depending
on the time variable. Different neuron numbers and hidden layer numbers have been tested to
find the most appropriate network which will be used in the prediction of all variables. The
estimated performance metrics have been evaluated in determining the most appropriate
network. The network structure, of which forecasting measurements are the smallest, is
identified as the most suitable one. The most appropriate network structures used to predict
the all variables are illustrated in Table 2. Yet, as the stock exchanges, taken as independent
variable, have so many sharp rises and falls, each quarter is estimated and combined within
itself. The estimation performance metrics; MSE (Mean Square Error), RMSE (Root mean
square) and MAPE (Mean absolute percentage error), which are commonly used in the
literature, are shown in Formula 1,2 and 3 (Zhang ve Hu, 1998:500, Cho, 2003:328, De
Lurgio, 1998:53).

 (y

RMSE 



t

 yt )2

T

(1)


MAPE 

1
T



yt  yt
yt

 100

(2)


MSE 

  y

t



 yt 


2

T

Here;

yt

= The actual observation values,



yt
= Estimated values,
T = Estimated numb
331

(3)

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

Table1: The network structures used for estimation of variables
Number of
neurons in
the input
layer

The number
of
intermidiate
layer neurons

Number of
neurons in
the output
layer

R

MAPE

µ ( The
number of
iteration)

RHC

1

3

1

0,97

3,73

3

GFCE

1

4

1

0,96

3,94

5

GFCF

1

3

1

0,81

9,32

10

1

0,83

70,5

20

SE

Independent
variables

2

3

2

SE1

1

SE2

1

3

1

0,86

88,6

20

SE3

1

5

1

0,78

6,6

15

SE4

1

1

0,97

19,5

20

2

3

GSE

1

2

1

0,94

5,20

15

IGS

1

3

1

0,95

6,6

12

GDP

7

3

1

0,99

2,77

2

Estimation performance metrics of Gross domestic product (GDP) are obtained as
MSE=0,000042, RMSE=0,006451 ve MAPE=2,775746%. On the basis of these
measurements, Witt and Witt (2000) classified the estimation models and called those whose
MAPE values are under 10% as the models having " high accuracy" and those whose values
are between 10% nd 20% as the "correct predictions". Similarly, Lewis classified the models
and called those hose MAPE values are less than 10% as "very good", those between 10% and
20% as "good", those between 20% and 50% as "acceptable" and those under 50% as "false
and erroneous" (Aktaran, Çuhadar ve Kayacan, 2005:6).

332

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

Figure2: The optimum network structure to estimate the GDP
Input layer
RHC
Hidden layer
GFCE
Outputlayer
GFCF

SE

GDP

GSE

IGS

T

In this study, Matlab 7.9 computer package program has been used. For
training function 'trainlm' , for learning function 'learngdm', for performance function 'MSE'
and for the transfer function 'tansig' have been selected. In the study, predicted and
actual values have been given in Table 2.

Table 2: Actual and Estimated Values of GDP

333

Actual(1.000TL)

Estimated (1.000TL)

2011 GDP

85.139.293

109.708.230

2011-Q1

26.205.423

26.070.548

2011-Q2

27.904.922

27.911.332

2011-Q3

31.028.948

28.430.643

2011-Q4

---------

27.295.707

2012 GDP

---------

111.233.502

2011-Q1

---------

26.813.588

2011-Q2

---------

28.153.427

2011-Q3

---------

28.500.755

2011-Q4

---------

27.765.733

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

5. CONCLUSIONS
Gross Domestic Product is an important indicator for all economic units including companies,
investors and households. Because it determines their future incomes, returns of their
investments, cost of capital and so on. So economic units make their decisions and set
economic policies depending on future economic conditions determined by what the future
GDP will be. Here the question is which methods can be more suitable and successful in
forecasting GDP. In this paper we applied Artificial Neural Networks method as a prediction
model. Results suggest that forecasting performance of this variable can be improved using
neural network models.

REFERENCES
Cho, V. (2003). “A Comparison of Three Different Approaches to Tourist Arrival
Forecasting”, Tourism Management, 24: 323-330.
Çuhadar, M. ve Kayacan C. (2005), “Yapay Sinir Ağları Kullanılarak Konaklama
İşletmelerinde Doluluk Oranı Tahmini: Türkiye’deki Konaklama İşletmeleri Üzerine Bir
Deneme”, Anatolia:Turizm Araştırmaları Dergisi, 16(1): 1990-2005.
De LURGIO, A. S. (1998), Forecasting Principles and Applications, Irwin McGrawHill:Singapore.
Deng, Wei-Jaw, Wen-Chin Chen, Wen Pei “Back-propagation neural network based
importance–performance analysis for determining critical service attributes”, Expert Systems
with Applications 34 (2008) 1115–1125.
Ge, L., Cui, B., (2011), “Research on Forecasting GDP Based on Process Neural Network”,
IEEE 2011, 7. International Conference on Natural Computation, 821-824.
Guegan, D., Rakotomarolahy, P., (2010), “Alternative Methods for Forecasting GDP”,
University of Paris, CES Working Papers, 2010.65.
Hamid, Shaikh, A. ve Zahid Iqbal (2004), “Using Neural Networks for Forecasting Volatility
of S&amp;P 500 Index Futures Prices”, Journal of Business Research, 57: 1116-1125.
Hines, J, W., MATLAB, Supplement to Fuzzy and Neural Approaches in Engineering, John
Wiley&amp;Sons, Inc., 1997.
Kaltakci, M, Y., Dere, Y., Yapay Sinir Ağları Uygulamalarının İnşaat Mühendisliğinde
Kullanımı, Prof. Dr. Rifat Yarar Sempozyumu, Editör: Semih S.
Liliana, Napitupulu, T.A., (2010), “Artificial Neural Network Application in Gross Domestic
Product Forecasting- an Indonesian Case”, 2. International Conference on Advances in
Computing, Control and Telecommunication Technologies, IEEE 2010, 89-93.
Lippmann, R., “An Introduction to Computing with Neural Nets”, Vol.4, 1987.
Marcellino, M., (2007), “A Comparison of Time Series Models for Forecasting GDP Growth
and Inflation”, http://www.eui.eu/Personal/Marcellino/1.pdf.
334

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

Mirbagheri, M., (2010), “Fuzzy Logic and Neural Network Fuzzy Forecasting of Iran GDP
Growth”, African Journal of Business Management, Vol.4, No.6, 925-929.
Nygren, K., Stock Prediction: A Neural Network Approach, Master Thesis, Royal Institute Of
Technology, KTH, 2004.
Öztemel, E., Yapay Sinir Ağları, Papatya Yayıncılık, İstanbul, 2003.
Schumacher, C., Breitung, J., (2008), “Real-time Forecasting of German GDP based on Large
Factor Model with Monthly and Quarterly Data”, International Journal of Forecasting, Vol.
24, 386-398.
Tkacz, Greg, Hu, Sarah, (1999), “Forecasting GDP Growth Using Artificial Neural
Networks”, Bank of Canada Working Papers, 99-3.
Zhang, G., Hu, M.Y. (1998) “Neural Network Forecasting of the British Pound/US Dollar
Exchange Rate”, Omega Int. J. Mgmt. Sci, 26(4): 495-506.
(http://useconomy.about.com/od/grossdomesticproduct/p/GDP.htm).
(http://www.economicsconcepts.com/gdp_as_a_measure_of_welfare.htm).
(www.investopedia.com).

The Importance And The Place Of Ombudsman In Law State

Feyzullah Ünal
Dumlupinar University, Faculty of Economics and Administrative Sciences
E-mail: feyz_unal@mynet.com

Abstract
In analyzing the ombudsman from the respesct of its historical roots, it is understood that this
institution has been inspired by Islam state system and Otoman state system. The institution
ombudsman has been implemented in countries more than 100 today and overtaken the
mission of protecting the citizens against the maladministration, securing the fundamental
rights and liberty and constituted security for both governing and governed. In this study, it is
offered that the fundamental rights and freedoms should be under the security, all activities of
the government should be under the control of jurisdiction and the significance of this
institution sould be awared in realizing the legal governance.

Keywords: Ombudsman, law state, fundamental rights and freedoms, justice, control and
judicial control.

335

�</text>
                  </elementText>
                </elementTextContainer>
              </element>
            </elementContainer>
          </elementSet>
        </elementSetContainer>
      </file>
    </fileContainer>
    <elementSetContainer>
      <elementSet elementSetId="1">
        <name>Dublin Core</name>
        <description>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/.</description>
        <elementContainer>
          <element elementId="79">
            <name>Extent</name>
            <description>The size or duration of the resource.</description>
            <elementTextContainer>
              <elementText elementTextId="18181">
                <text>1129</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="50">
            <name>Title</name>
            <description>A name given to the resource</description>
            <elementTextContainer>
              <elementText elementTextId="18182">
                <text>Using Artificial Neural Networks To Forecast Gdp For Turkey</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="96">
            <name>Author</name>
            <description>Author</description>
            <elementTextContainer>
              <elementText elementTextId="18183">
                <text>Karaatli, Meltem</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="94">
            <name>Abstract</name>
            <description>A summary of the resource.</description>
            <elementTextContainer>
              <elementText elementTextId="18184">
                <text>Artificial Neural Networks (ANN) is a system resembling biological neural systems and uses  working principles of human brain as a base. ANN can be applied in various fields for the  purposes of forecasting, classification, optimization, data binding and so on. ANN has been  frequently used in financial applications in recent years. In this study, ANN is used in  forecasting Gross Domestic Product of Turkey. Gross Domestic Product (GDP) refers to the  market value of all final goods and services produced within a country in a given period. GDP  can be thought as the size of an economy and it is the foremost important measure of  macroeconomic performance of a country, a country’s health and standard of living.  Therefore, expectations about future GDP can be the primary determinant of investments,  employment, wages, profits and even stock market activities. With respect to its economic significance mentioned above, the purpose of this study is to forecast Gross Domestic Product  (GDP) for Turkey and to test the ability of ANN Method in forecasting GDP.  Keywords: Importance of Gross Domestic Product, Forecasting, Artificial Neural Networks.</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="40">
            <name>Date</name>
            <description>A point or period of time associated with an event in the lifecycle of the resource</description>
            <elementTextContainer>
              <elementText elementTextId="18185">
                <text>2012-05-31</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="97">
            <name>Keywords</name>
            <description>Keywords.</description>
            <elementTextContainer>
              <elementText elementTextId="18186">
                <text>Conference or Workshop Item
PeerReviewed</text>
              </elementText>
            </elementTextContainer>
          </element>
        </elementContainer>
      </elementSet>
    </elementSetContainer>
    <tagContainer>
      <tag tagId="6">
        <name>H Social Sciences (General)</name>
      </tag>
    </tagContainer>
  </item>
  <item itemId="2250" public="1" featured="0">
    <fileContainer>
      <file fileId="3304">
        <src>https://omeka.ibu.edu.ba/files/original/b26595efc28ad1061041d54c95c6f372.pdf</src>
        <authentication>194b2e51a734a9a514c96b5039f69e48</authentication>
        <elementSetContainer>
          <elementSet elementSetId="4">
            <name>PDF Text</name>
            <description/>
            <elementContainer>
              <element elementId="52">
                <name>Text</name>
                <description/>
                <elementTextContainer>
                  <elementText elementTextId="18194">
                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Clustering Balkan Countries Based on Competitiveness Factors: A Strategic
Perspective

Kazim Develioglu1, Kemal Kantarci2
1Akdeniz University, Alanya Faculty of Business,Department of Human Resource
Management
2Akdeniz University, Alanya Faculty of Business
Department of Tourism Management
E-mails: kdevelioglu@akdeniz.edu.tr, kantarci@akdeniz.edu.tr

Abstract
Prior to directing their investments, strategy makers at national and firm level need to know
competitive advantages and disadvantages in a country or region. By bearing this need in
mind, this study aims to examine competitive factors in Balkan countries to develop a road
map for investors. To do this, we used World Economic Forum’s “Global Competitivenes
Index” to analyse the case of Balkan countries as a region to cluster and compare them based
on Global competitiveness factors. Analysis results pointed out that Balkan countries were
clustered in two groups and scored lower or medium level on almost all competitive factors
as the region. Based on these findings, authors suggested various strategic recommendations
at micro and macro level.

Keywords: Cluster, Competitiveness, Strategic Management, Balkan Countries

1.Literature review
In an era of great competition among nations and firms, it is vital for firms’ strategy makers
to develop strategies to adapt to environmental changes and speed their processes. Vietor
(2006) indicates that, in national level, as a result of globalizaton, countries compete each
other in terms of markets, technology, skills, and investment to grow and raise their standards
of living. Although, macroeconomic competitiveness creates the potential for high
productivity, it is not sufficient. Productivity ultimately depends on improving the micro
economic capability of the economy and sophistication of local competition (Porter, 2009).
Economic Forum (2011) defines competitiveness as the set of institutions, policies, and
factors that determine the level of productivity of a country. The level of productivity, in turn,
sets the level of prosperity that can be earned by an economy. The productivity level also
determines the rates of return obtained by investments in an economy, which in turn are the
199

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

fundamental drivers of its growth rates. In other words, a more competitive economy is one
that is likely to grow faster over time.
“Competitive strategy is the search for a favorable competitive position in an industry, the
fundamental arena in which competition occurs. Competitive strategy aims to establish a
profitable and sustainable position against the forces that determine industry competition”
(Porter, 2004: 1).
To be competitive, nations are struggling to remain competitive by having regional
specializations in terms of hihger value added – non manufacturing industries and Research
&amp; Development intensive manufacturing niches (OECD, 2007). Similarly, Porter (2009)
indicates that competitiveness depends on the productivity with which a nation uses its
human, capital, and natural resources. Economic coordination among neighboring countries
can significantly enhance competitiveness. By the similar vein, as developing countries,
economic collaboration among Balkan countries is expected to enhance sustainable
competition. At this point, it has to be noted that competition policies of advanced countries
might not be appropriate for the stage of development of most developing countries (Singh,
1999). Singh (1999) indicates that “It is important for developing countries to have a
competition policy which is designed to take appropriate account of their level of
development and the long term objective of sustained economic growth. This is in part due to
the potential effects of the international merger movement and also because of privatization,
deregulation and liberalization which have occurred in the domestic economies of most
developing countries” (pp. 1).

As a developing region, the Balkan peninsula is becoming recovered and develop after postsocialist and instable period because of the war among some of states. “The Balkan Peninsula
is an important area, having witnessed important historical and political experiences and
incidents for ages” (Çelebioğlu 2011: 112). Having a population of, nearly, 140 million
citizens, the Balkan region provides a promising market for firms from international arena
and especially Balkan countries. As it is indicated in WEF’s (2011-2012) Global
Competitiveness Report, “national competitiveness, we note that despite much work in the
area of sustainability, there is not yet a well-established body of literature on the link between
productivity (which is at the heart of competitiveness) and sustainability. However, at the
World Economic Forum we believe that the relationship between competitiveness and
sustainability is crucial (pp. 52). Developing economically sound strategies, especially for
international firms and firms from the region, it is crucial to examine competitiveness
indicators of Balkan countries. This will help firms to develop a sustainable competitive
edge by investing and selling in the region. Taking this neccessity into account, this study
aims to fill the gap for lack of comparative studies for Balkan countries. More specifially, we
analyse Balkan countries’ competitiveness factors by, first, clustering them and, second,
compare the clusters to grasp which cluster perform in which competitive factor well.

200

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

In this study, we used the data of The World Economic Forum’s (WEF) classification of
“Global Competitiveness Index” factors to examine indicators that are expected to influence
sustainable competition in the region. for the years between 2008-2011. WEF’s classification
consists of three subindexes and 12 factors that measure these subindexes, which are reported
below:






Basic requirements
(Institutions, Infrastructure, Macroeconomic environment, and Health and primary
education)
Efficiency enhancers
(Higher education and training, Goods market efficiency, Labor market efficiency,
Financial market development, Technological readiness, and Market size)
Innovation and sophistication factors
(Business sophistication and Innovation)

2.Methodology
As it is mentioned above, in this study, we used the data of The World Economic Forum’s
(WEF) “Global Competitiveness Index” for the years between 2008-2011. By using the
secondary data, we aimed, first, to cluster the Balkan countries in terms of above mentioned
“Global competitiveness index factor”s and second to compare these clusters to reveal which
of them are more competitive in subindexes and factors.

3.Findings
In order to cluster the Balkan countries in terms of Global competitiveness factors, we
employed a k-means cluster analysis and derived two clusters, which is reported in Table 1
below. One of these clusters (Cluster 1) includes countries: Bulgaria, Croatia, Greece,
Romania, Serbia, and Turkey. The second cluster (Cluster 2) countries are Albania, Bosnia
and Herzegovina, Macedonia, Montenegro, and Slovenia. Scores in Table 1 betray that only
in market size competitiveness factor, Cluster 1 countries have a competitive advantage
compared with Cluster 2 countries.
Table 1: Cluster Analysis Results
Cluster
Global Competitiveness Factor

1

2

F

p

Institutions

3,63

4,35

1,784

0,214

Infrastructure

4,00

3,38

0,401

0,542

Macroeconomic environment

4,70

4,93

1,827

0,209

Health and primary education

5,45

5,90

0,033

0,860

Higher education and training

3,95

4,38

0,022

0,885

201

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

Goods market efficiency

4,33

4,35

0,396

0,545

Labor market efficiency

3,60

4,58

3,599

0,090

Financial market development

4,18

4,83

0,021

0,889

Technological readiness

3,78

4,05

0,105

0,754

Market size

5,20

2,05

15,499

0,003

Business sophistication

4,20

3,80

0,018

0,897

Innovation

3,13

3,30

0,120

0,737

Table 2: t-test Results for Cluster Membership and Global Competitiveness Subindexes
Std.
Deviation
Variable
Basic requirements

Efficiency enhancers

Innovation and sophistication factors

Cluster

Mean

1

4,38

0,246

2

4,47

0,449

1

4,06

0,161

2

3,87

0,326

1

3,39

0,214

2

3,34

0,473

t

p

-0,858

0,396

2,547

0,015

0,479

0,634

In order to compare Cluster 1 and Cluster 2 countries, we used t-test analysis and obtained
the results, which are reported in Table 2 and Table 3. In table 2, we compared two clusters in
terms of Global Competitiveness subindexes. Results in Table 2 portray that Cluster 1
(Mean= 4,06) and Cluster (Mean= 3,87) countries both had medium-level but statistically
significant difference (t= 2,547; P= 0,015) in efficiency enhancers subindex. For the other
two subindexes, namely basic requirements (t= 0,858; P= 0,396) and innovation and
sophistication factors (t= 0,479; P= 0,634), both of the clusters showed no statistically
significant results. It has to be noted that in both, basic requirements and innovation and
sophistication factors, Cluster 1 and Cluster 2 countries had medium level competitiveness
scores.
Table 3: t-test Results for Cluster Membership and Global Competitiveness Factors

Variable

202

Cluster

Mean

Std.

t

p

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

Deviation
Institutions

Infrastructure

Macroeconomic environment

Health and primary education

Higher education and training

Goods market efficiency

Labor market efficiency

Financial market development

Technological readiness

Market size

Business sophistication

Innovation

1

3,53

0,233

2

3,84

0,515

1

3,70

0,691

2

3,43

0,851

1

4,55

0,482

2

4,89

0,435

1

5,73

0,228

2

5,76

0,319

1

4,21

0,254

2

4,17

0,625

1

4,00

0,239

2

4,12

0,376

1

4,04

0,325

2

4,34

0,208

1

4,04

0,224

2

4,07

0,504

1

3,82

0,286

2

3,74

0,616

1

4,20

0,579

2

2,83

0,479

1

3,75

0,313

2

3,72

0,427

1

3,45

0,131

2

2,97

0,507

-2,657

0,011

1,158

0,254

-2,406

0,021

-0,332

0,741

0,305

0,762

-1,194

0,239

-3,592

0,001

-0,255

0,800

0,597

0,554

8,427

0,000

0,268

0,790

0,705

0,485

Examination of Table 3 revealed mixed results for Cluster 1 and Cluster 2 countries. In Table
3, the results betray that Cluster 2 countries scored better in three of twelve Global
Competitiveness factors than Cluster 1 countries. Only for market size competitiveness
factor, Cluster 1 countries had statistically significant difference scores (t= 8,427; P= 0,000).
203

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

4.Discussion
Analysis results at the findings section pointed out that competitiveness scores of Balkan
countries, whether it belongs Cluster 1 or Cluster 2, are relatively low or medium and need to
be developed. Specifically, Cluster 2 countries (Albania, Bosnia and Herzegovina,
Macedonia, Montenegro, and Slovenia) should have a national strategic plan to improve their
competitive position in infrastructure (quality of roads, railroads, ports, and airtransport
infrastructure), higher education and training (secondary education enrollment, tertiary
education enrollment, quality of the educational system, math &amp;science education,
management schools, internet access in schools, availability of research and services), goods
market efficiency (intensity of local competition, extent of market dominance, effectiveness
of anti-monopoly policy, extent and effect of taxation, total tax rate, number of procedures to
start a business, agricultural policy cost, buyer sophistication), labor market efficiency
(cooperation in labor-employer relations, flexibility of wage determination, hirin and firing
practices, women in labor force), financial market development (availability of financial
services, effordability of financial services, ease of access to loans, ventur capital
availability), technological readiness (availability of latest technologies, firm-level
technology absorption, FDI and technology transfer, internet related factors), business
sophistication (local supplier quantity and quality, state of cluster development, nature of
competitive advantage, control of international distribution, extent of amrketing, willingness
to delegate authority), and innovation (capacity for innovation, quality of scientific research
institutions, company spending on R&amp;D, utility patents granted).
Similarly, Cluster 1 countries should emphasize on development of institutions,
infrastructure, financial market, and technological environment and better conditions in
macroeconomic environment, higher education and training, goods market efficiency,
business sophistication, and innovation. It seems from analysis results that the major
advantage for these cluster is their population and market size. This picture warns us that
firms plan to invest in the Balkan region should be aware of disadvantageous competitive
factors in both cluster countries. It seems that eventhough both clusters have disadvantages
for investors they also offer certain advantages for them. We believe that for strategy makers
in national governments and firms, these findings provide useful insights to develop their
strategic plans.

REFERENCES
Çelebioğlu, F. (2011). Investigation of Development Indicators in the Balkan Countries for
the Post-Socialist Period, Journal of Economic and Social Studies, Volume 1, Number 1,
111-122.

Porter, M. E. (2004). Competitive Advantage, Free Press, New York.
204

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

Porter, M. E. (2009). The Competitive Advantage of Nations, States, and Regions, Harvard
Business School, Advanced Management Program.

OECD, (2007). Competitive Regional Clusters: National Policy Approaches,
(http://www.oecd.org/document/2/0,3746,en_2649_33735_38174082_1_1_1_1,00.html),
(22.04.2012).

Singh, A., (1999). Competition Policy, development and developing Countries, Indian
Council for research on international economic relations, New Delhi.

Vietor, R.H.K. (2006). Strategy, Structure, and Government in the Global Economy, Harvard
Business School Press ,Boston, Massachusetts.

World Economic Forum, The Global Competitiveness Report, (2008-2009).

World Economic Forum, The Global Competitiveness Report, (2009-2010).

World Economic Forum, The Global Competitiveness Report, (2010-2011).

World Economic Forum, The Global Competitiveness Report, (2011-2012).

Implementation Of Critical Path Method And Project Evaluation And Review
Technique

Ali Göksu, Selma Ćatović
International Burch University,Faculty of economics Management and information
technologies
Sarajevo, Bosnia and Herzegovina

Abstract
Because of the growing effects of the globalization in various business environments,
the manufacturing industry is expected to be effective and yet efficient. According to this, in
205

�</text>
                  </elementText>
                </elementTextContainer>
              </element>
            </elementContainer>
          </elementSet>
        </elementSetContainer>
      </file>
    </fileContainer>
    <elementSetContainer>
      <elementSet elementSetId="1">
        <name>Dublin Core</name>
        <description>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/.</description>
        <elementContainer>
          <element elementId="79">
            <name>Extent</name>
            <description>The size or duration of the resource.</description>
            <elementTextContainer>
              <elementText elementTextId="18188">
                <text>1113</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="50">
            <name>Title</name>
            <description>A name given to the resource</description>
            <elementTextContainer>
              <elementText elementTextId="18189">
                <text>Clustering Balkan Countries Based on Competitiveness Factors: A Strategic  Perspective</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="96">
            <name>Author</name>
            <description>Author</description>
            <elementTextContainer>
              <elementText elementTextId="18190">
                <text>Kazim, Develioglu</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="94">
            <name>Abstract</name>
            <description>A summary of the resource.</description>
            <elementTextContainer>
              <elementText elementTextId="18191">
                <text>Prior to directing their investments, strategy makers at national and firm level need to know  competitive advantages and disadvantages in a country or region. By bearing this need in  mind, this study aims to examine competitive factors in Balkan countries to develop a road  map for investors. To do this, we used World Economic Forum’s “Global Competitivenes  Index” to analyse the case of Balkan countries as a region to cluster and compare them based  on Global competitiveness factors. Analysis results pointed out that Balkan countries were  clustered in two groups and scored lower or medium level on almost all competitive factors  as the region. Based on these findings, authors suggested various strategic recommendations  at micro and macro level.  Keywords: Cluster, Competitiveness, Strategic Management, Balkan Countries</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="40">
            <name>Date</name>
            <description>A point or period of time associated with an event in the lifecycle of the resource</description>
            <elementTextContainer>
              <elementText elementTextId="18192">
                <text>2012-05-31</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="97">
            <name>Keywords</name>
            <description>Keywords.</description>
            <elementTextContainer>
              <elementText elementTextId="18193">
                <text>Conference or Workshop Item
PeerReviewed</text>
              </elementText>
            </elementTextContainer>
          </element>
        </elementContainer>
      </elementSet>
    </elementSetContainer>
    <tagContainer>
      <tag tagId="6">
        <name>H Social Sciences (General)</name>
      </tag>
    </tagContainer>
  </item>
  <item itemId="2251" public="1" featured="0">
    <fileContainer>
      <file fileId="3305">
        <src>https://omeka.ibu.edu.ba/files/original/b7bc98d09981b7daf894effbf5781231.pdf</src>
        <authentication>b40a53b0771d61acf2bad3e7fa9bf8d4</authentication>
        <elementSetContainer>
          <elementSet elementSetId="4">
            <name>PDF Text</name>
            <description/>
            <elementContainer>
              <element elementId="52">
                <name>Text</name>
                <description/>
                <elementTextContainer>
                  <elementText elementTextId="18201">
                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Clustering Balkan Countries Based on Competitiveness Factors: A Strategic Perspective
Kazim Develioglu1 ,Kemal KantarcI2
1Akdeniz University, Alanya Faculty of Business,Department of Human Resource Management
Alanya-Antalya / TURKEY
2Akdeniz University, Alanya Faculty of Business,Department of Tourism Management
Alanya-Antalya / TURKEY
E-mails: kdevelioglu@akdeniz.edu.tr ,kantarci@akdeniz.edu.tr
Abstract
Prior to directing their investments, strategy makers at national and firm level need to know
competitive advantages and disadvantages in a country or region. By bearing this need in mind,
this study aims to examine competitive factors in Balkan countries to develop a road map for
investors. To do this, we used World Economic Forum’s “Global Competitivenes Index” to
analyse the case of Balkan countries as a region to cluster and compare them based on Global
competitiveness factors. Analysis results pointed out that Balkan countries were clustered in two
groups and scored lower or medium level on almost all competitive factors as the region. Based
on these findings, authors suggested various strategic recommendations at micro and macro level.
Keywords: Cluster, Competitiveness, Strategic Management, Balkan Countries
1.Literature review
In an era of great competition among nations and firms, it is vital for firms’ strategy makers to
develop strategies to adapt to environmental changes and speed their processes. Vietor (2006)
indicates that, in national level, as a result of globalizaton, countries compete each other in terms
of markets, technology, skills, and investment to grow and raise their standards of living.
Although, macroeconomic competitiveness creates the potential for high productivity, it is not
sufficient. Productivity ultimately depends on improving the micro economic capability of the
economy and sophistication of local competition (Porter, 2009).
Economic Forum (2011) defines competitiveness as the set of institutions, policies, and factors
that determine the level of productivity of a country. The level of productivity, in turn, sets the
level of prosperity that can be earned by an economy. The productivity level also determines the
rates of return obtained by investments in an economy, which in turn are the fundamental drivers
of its growth rates. In other words, a more competitive economy is one that is likely to grow
faster over time.
125

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

“Competitive strategy is the search for a favorable competitive position in an industry, the
fundamental arena in which competition occurs. Competitive strategy aims to establish a
profitable and sustainable position against the forces that determine industry competition”
(Porter, 2004: 1).
To be competitive, nations are struggling to remain competitive by having regional
specializations in terms of hihger value added – non manufacturing industries and Research &amp;
Development intensive manufacturing niches (OECD, 2007). Similarly, Porter (2009) indicates
that competitiveness depends on the productivity with which a nation uses its human, capital, and
natural resources. Economic coordination among neighboring countries can significantly enhance
competitiveness. By the similar vein, as developing countries, economic collaboration among
Balkan countries is expected to enhance sustainable competition. At this point, it has to be noted
that competition policies of advanced countries might not be appropriate for the stage of
development of most developing countries (Singh, 1999). Singh (1999) indicates that “It is
important for developing countries to have a competition policy which is designed to take
appropriate account of their level of development and the long term objective of sustained
economic growth. This is in part due to the potential effects of the international merger
movement and also because of privatization, deregulation and liberalization which have occurred
in the domestic economies of most developing countries” (pp. 1).
As a developing region, the Balkan peninsula is becoming recovered and develop after postsocialist and instable period because of the war among some of states. “The Balkan Peninsula is
an important area, having witnessed important historical and political experiences and incidents
for ages” (Çelebioğlu 2011: 112). Having a population of, nearly, 140 million citizens, the
Balkan region provides a promising market for firms from international arena and especially
Balkan countries. As it is indicated in WEF’s (2011-2012) Global Competitiveness Report,
“national competitiveness, we note that despite much work in the area of sustainability, there is
not yet a well-established body of literature on the link between productivity (which is at the
heart of competitiveness) and sustainability. However, at the World Economic Forum we believe
that the relationship between competitiveness and sustainability is crucial (pp. 52). Developing
economically sound strategies, especially for international firms and firms from the region, it is
crucial to examine competitiveness indicators of Balkan countries. This will help firms to
develop a sustainable competitive edge by investing and selling in the region. Taking this
neccessity into account, this study aims to fill the gap for lack of comparative studies for Balkan
countries. More specifially, we analyse Balkan countries’ competitiveness factors by, first,
clustering them and, second, compare the clusters to grasp which cluster perform in which
competitive factor well.
In this study, we used the data of The World Economic Forum’s (WEF) classification of “Global
Competitiveness Index” factors to examine indicators that are expected to influence sustainable
competition in the region. for the years between 2008-2011. WEF’s classification consists of
three subindexes and 12 factors that measure these subindexes, which are reported below:
126

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





Basic requirements
(Institutions, Infrastructure, Macroeconomic environment, and Health and primary
education)
Efficiency enhancers
(Higher education and training, Goods market efficiency, Labor market efficiency,
Financial market development, Technological readiness, and Market size)
Innovation and sophistication factors

(Business sophistication and Innovation)
2.Methodology
As it is mentioned above, in this study, we used the data of The World Economic Forum’s (WEF)
“Global Competitiveness Index” for the years between 2008-2011. By using the secondary data,
we aimed, first, to cluster the Balkan countries in terms of above mentioned “Global
competitiveness index factor”s and second to compare these clusters to reveal which of them are
more competitive in subindexes and factors.
3.Findings
In order to cluster the Balkan countries in terms of Global competitiveness factors, we employed
a k-means cluster analysis and derived two clusters, which is reported in Table 1 below. One of
these clusters (Cluster 1) includes countries: Bulgaria, Croatia, Greece, Romania, Serbia, and
Turkey. The second cluster (Cluster 2) countries are Albania, Bosnia and Herzegovina,
Macedonia, Montenegro, and Slovenia. Scores in Table 1 betray that only in market size
competitiveness factor, Cluster 1 countries have a competitive advantage compared with Cluster
2 countries.
Table 1: Cluster Analysis Results
Cluster
Global Competitiveness
Factor

1

2

F

p

Institutions

3,63

4,35

1,784

0,214

Infrastructure

4,00

3,38

0,401

0,542

Macroeconomic environment

4,70

4,93

1,827

0,209

Health and primary education

5,45

5,90

0,033

0,860

Higher education and training

3,95

4,38

0,022

0,885

127

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

Goods market efficiency

4,33

4,35

0,396

0,545

Labor market efficiency

3,60

4,58

3,599

0,090

Financial market development

4,18

4,83

0,021

0,889

Technological readiness

3,78

4,05

0,105

0,754

Market size

5,20

2,05

15,499

0,003

Business sophistication

4,20

3,80

0,018

0,897

Innovation

3,13

3,30

0,120

0,737

Table 2: t-test Results for Cluster Membership and Global Competitiveness Subindexes

Variable
Basic requirements

Efficiency enhancers

Innovation and sophistication
factors

Std.
Deviation

Cluster

Mean

1

4,38

0,246

2

4,47

0,449

1

4,06

0,161

2

3,87

0,326

1

3,39

0,214

2

3,34

0,473

t

p

-0,858

0,396

2,547

0,015

0,479

0,634

In order to compare Cluster 1 and Cluster 2 countries, we used t-test analysis and obtained the
results, which are reported in Table 2 and Table 3. In table 2, we compared two clusters in terms
of Global Competitiveness subindexes. Results in Table 2 portray that Cluster 1 (Mean= 4,06)
and Cluster (Mean= 3,87) countries both had medium-level but statistically significant difference
(t= 2,547; P= 0,015) in efficiency enhancers subindex. For the other two subindexes, namely
basic requirements (t= 0,858; P= 0,396) and innovation and sophistication factors (t= 0,479; P=
0,634), both of the clusters showed no statistically significant results. It has to be noted that in
both, basic requirements and innovation and sophistication factors, Cluster 1 and Cluster 2
countries had medium level competitiveness scores.
128

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

Table 3: t-test Results for Cluster Membership and Global Competitiveness Factors

Mean

Std.
Deviation

1

3,53

0,233

2

3,84

0,515

1

3,70

0,691

2

3,43

0,851

Macroeconomic
environment

1

4,55

0,482

2

4,89

0,435

Health and primary
education

1

5,73

0,228

2

5,76

0,319

Higher education and
training

1

4,21

0,254

2

4,17

0,625

Goods market efficiency

1

4,00

0,239

2

4,12

0,376

1

4,04

0,325

2

4,34

0,208

Financial market
development

1

4,04

0,224

2

4,07

0,504

Technological readiness

1

3,82

0,286

2

3,74

0,616

1

4,20

0,579

Variable

Institutions

Infrastructure

Labor market efficiency

Market size

129

Cluster

t

p

-2,657

0,011

1,158

0,254

-2,406

0,021

-0,332

0,741

0,305

0,762

-1,194

0,239

-3,592

0,001

-0,255

0,800

0,597

0,554

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

Business sophistication

Innovation

2

2,83

0,479

1

3,75

0,313

2

3,72

0,427

1

3,45

0,131

2

2,97

0,507

8,427

0,000

0,268

0,790

0,705

0,485

Examination of Table 3 revealed mixed results for Cluster 1 and Cluster 2 countries. In Table 3,
the results betray that Cluster 2 countries scored better in three of twelve Global Competitiveness
factors than Cluster 1 countries. Only for market size competitiveness factor, Cluster 1 countries
had statistically significant difference scores (t= 8,427; P= 0,000).
4.Discussion
Analysis results at the findings section pointed out that competitiveness scores of Balkan
countries, whether it belongs Cluster 1 or Cluster 2, are relatively low or medium and need to be
developed. Specifically, Cluster 2 countries (Albania, Bosnia and Herzegovina, Macedonia,
Montenegro, and Slovenia) should have a national strategic plan to improve their competitive
position in infrastructure (quality of roads, railroads, ports, and airtransport infrastructure), higher
education and training (secondary education enrollment, tertiary education enrollment, quality of
the educational system, math &amp;science education, management schools, internet access in
schools, availability of research and services), goods market efficiency (intensity of local
competition, extent of market dominance, effectiveness of anti-monopoly policy, extent and
effect of taxation, total tax rate, number of procedures to start a business, agricultural policy cost,
buyer sophistication), labor market efficiency (cooperation in labor-employer relations, flexibility
of wage determination, hirin and firing practices, women in labor force), financial market
development (availability of financial services, effordability of financial services, ease of access
to loans, ventur capital availability), technological readiness (availability of latest technologies,
firm-level technology absorption, FDI and technology transfer, internet related factors), business
sophistication (local supplier quantity and quality, state of cluster development, nature of
competitive advantage, control of international distribution, extent of amrketing, willingness to
delegate authority), and innovation (capacity for innovation, quality of scientific research
institutions, company spending on R&amp;D, utility patents granted).
Similarly, Cluster 1 countries should emphasize on development of institutions, infrastructure,
financial market, and technological environment and better conditions in macroeconomic
environment, higher education and training, goods market efficiency, business sophistication, and
innovation. It seems from analysis results that the major advantage for these cluster is their
population and market size. This picture warns us that firms plan to invest in the Balkan region
should be aware of disadvantageous competitive factors in both cluster countries. It seems that
eventhough both clusters have disadvantages for investors they also offer certain advantages for
130

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

them. We believe that for strategy makers in national governments and firms, these findings
provide useful insights to develop their strategic plans.
REFERENCES
Çelebioğlu, F. (2011). Investigation of Development Indicators in the Balkan Countries for the
Post-Socialist Period, Journal of Economic and Social Studies, Volume 1, Number 1, 111-122.
Porter, M. E. (2004). Competitive Advantage, Free Press, New York.
Porter, M. E. (2009). The Competitive Advantage of Nations, States, and Regions, Harvard
Business School, Advanced Management Program.
OECD, (2007). Competitive Regional Clusters: National Policy Approaches,
(http://www.oecd.org/document/2/0,3746,en_2649_33735_38174082_1_1_1_1,00.html),
(22.04.2012).
Singh, A., (1999). Competition Policy, development and developing Countries, Indian Council
for research on international economic relations, New Delhi.
Vietor, R.H.K. (2006). Strategy, Structure, and Government in the Global Economy, Harvard
Business School Press ,Boston, Massachusetts.
World Economic Forum, The Global Competitiveness Report, (2008-2009).
World Economic Forum, The Global Competitiveness Report, (2009-2010).
World Economic Forum, The Global Competitiveness Report, (2010-2011).
World Economic Forum, The Global Competitiveness Report, (2011-2012).

131

�</text>
                  </elementText>
                </elementTextContainer>
              </element>
            </elementContainer>
          </elementSet>
        </elementSetContainer>
      </file>
    </fileContainer>
    <elementSetContainer>
      <elementSet elementSetId="1">
        <name>Dublin Core</name>
        <description>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/.</description>
        <elementContainer>
          <element elementId="79">
            <name>Extent</name>
            <description>The size or duration of the resource.</description>
            <elementTextContainer>
              <elementText elementTextId="18195">
                <text>1372</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="50">
            <name>Title</name>
            <description>A name given to the resource</description>
            <elementTextContainer>
              <elementText elementTextId="18196">
                <text>Clustering Balkan Countries Based on Competitiveness Factors: A Strategic Perspective</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="96">
            <name>Author</name>
            <description>Author</description>
            <elementTextContainer>
              <elementText elementTextId="18197">
                <text>Kazim , Develioglu</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="94">
            <name>Abstract</name>
            <description>A summary of the resource.</description>
            <elementTextContainer>
              <elementText elementTextId="18198">
                <text>Prior to directing their investments, strategy makers at national and firm level need to know  competitive advantages and disadvantages in a country or region. By bearing this need in mind,  this study aims to examine competitive factors in Balkan countries to develop a road map for  investors. To do this, we used World Economic Forum’s “Global Competitivenes Index” to  analyse the case of Balkan countries as a region to cluster and compare them based on Global  competitiveness factors. Analysis results pointed out that Balkan countries were clustered in two  groups and scored lower or medium level on almost all competitive factors as the region. Based  on these findings, authors suggested various strategic recommendations at micro and macro level.  Keywords: Cluster, Competitiveness, Strategic Management, Balkan Countries</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="40">
            <name>Date</name>
            <description>A point or period of time associated with an event in the lifecycle of the resource</description>
            <elementTextContainer>
              <elementText elementTextId="18199">
                <text>2012-05-31</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="97">
            <name>Keywords</name>
            <description>Keywords.</description>
            <elementTextContainer>
              <elementText elementTextId="18200">
                <text>Conference or Workshop Item
PeerReviewed</text>
              </elementText>
            </elementTextContainer>
          </element>
        </elementContainer>
      </elementSet>
    </elementSetContainer>
    <tagContainer>
      <tag tagId="6">
        <name>H Social Sciences (General)</name>
      </tag>
    </tagContainer>
  </item>
  <item itemId="2252" public="1" featured="0">
    <fileContainer>
      <file fileId="3306">
        <src>https://omeka.ibu.edu.ba/files/original/557a01d95dfab9ce26616e0e07c7014a.pdf</src>
        <authentication>e304bdfe06c06eb41b2549572016f466</authentication>
        <elementSetContainer>
          <elementSet elementSetId="4">
            <name>PDF Text</name>
            <description/>
            <elementContainer>
              <element elementId="52">
                <name>Text</name>
                <description/>
                <elementTextContainer>
                  <elementText elementTextId="18208">
                    <text>An Empirical On Knowledge Sharing In Learning Organizations In Kutahya, Turkey
Kemal Demirci1, Nuray Mercan1, Yaşar Aksanyar1, Bayram Alamur2, Vasfi Kahya3
1Dumlupınar University Instıtute of Social Sciences, Kütahya, Turkey,
2Balikesir University Havran Vocational School Of Higher Education,
3Dumlupinar University Instıtute of Social Sciences, Kütahya, Turkey
E –mails: mkdemirci26@hotmail.com, snmmercan@yahoo.com, ayyasari@gmail.com,
alamur_bayram@hotmail.com, vasfikahya@hotmail.com
Abstract
Comunities today and in the future have to process, evaluate and internalize the information
more than past. Comunities and enterprises, which don't understand the environment, and are
unconscious about changes, and which don't read the world, are obliged to deteriorate, even
to die. Fiber speed and continious changes of present world, makes compulsory to learn
continiously and to educe information. Enterprises have to be open to continiously learning to
carry on their growth and development and they have to gain capability to share
knowledge.This paper undertakes to contribute to this search by addressing some
fundamental questions about the nature, domain, conceptual foundations, and practical
challenges of knowledge management and organizational learning. A positive relationship
has been found between continiously learning which are learner dimensions of organization,
dialog and research, team learning, sharing systems, empowered workers, connection
between the systems, sharing information of supportive leadership and openness of in-house
cognitive canals through the correlation and multiple regression analysis done in the result of
the research.
Keywords: Knowledge Management, Knowledge Share, learning organization.
1.INTRODUCTION
The term organizational learning may refer to individual learning within the organization, the
entire organization learning as a collective body, oranywhere in between these extremes.
However, most organizational learning refers to team ororganizational level learning. Of
404

�course, individual learning, or learning in small or large groupsor as an entire organization
may be needed for the firm to possess the requisite knowledge totake effective action. From a
knowledge management perspective, all levels of learning areimportant and all must be
nurtured and made a natural part of culture. To date, most of the knowledge management
emphasis has been put on locating, creating and sharing knowledge. For this reason, we
consider or ganizational learning to refer to the capacity of the organization to acquire the
knowledge necessary to survive and compete in its environment. (Bennet and Bennet, 2006:
1-3).
Knowledge sharing in an organization is an important issue. Because knowledge is
considered as being the source of organizational competitive and a kind of strategic capital in
an information economy, the more the knowledge is expanded in an organization, the more
the capacity of competition is (Yaghi Et Al, 2011:20).
Knowledge sharing can be defined as transferring knowledge from one place or one person to
another (Sharrat and Usoro, 2003:4-5). It is possible to define knowledge sharing basically as
making knowledge useable for the individuals in an organization. In other words, knowledge
sharing is a process of bartering knowledge with other individuals so that they can
understand, claim and use it (Ipe, 2003:341); knowledge sharing is that employees share their
knowledge, thoughts, suggestions and experience in their organization with others (Bartol
and Srivastava, 2002:65).
The first section of the paper considers conseptual analysis of knowledge sharing.In the
second section, we will try to explain conceptual analysis of learning organization. In the
third section, the results and the findings of the study will be evaluate, in the conclusion
section, the importance of knowledge sharing in learning organizations will be evaluate by
using the findings.
2.Conseptual analysis of knowledge sharing
Knowledge sharing is a social mutual interactive culture and involves knowledge, skill and
experience exchange of employees in an organization. For an organization, knowledge
sharing is capturing knowledge based on experience, organizing it, making it reusable and
transferring it; it depends on making knowledge available for others in an organization or a
business. Many studies have shown that knowledge sharing is compulsory because it allows
organizations to increase their innovation performance and to decrease unnecessary learning
efforts (Lin, 2007:315-316).
405

�Knowledge is about knowledge exchange between two individuals. It can also be expressed
as “willingness of individuals in an organization to share their knowledge with others” (Mc
Neish and Mann, 2010:19-20). Sharing knowledge also allows administrators and employees
keep what they know and to practice it (Yang, 2007:84). The aim of sharing knowledge is
either to create new knowledge out of existing knowledge or to improve it (Christensen,
2007:37).
Knowledge sharing is thought as a social behaviour and many physical, technological,
psychological, cultural and personal factors have effective roles in not only supporting but
also limiting knowledge sharing. Despite many advantages of knowledge sharing, researchers
and implementers often argue that in many cases, in fact, individuals abstain from sharing
their knowledge with others (Davenport, 2007); moreover, they say that act of sharing
knowledge is unnatural and there are many reasons for people to abstain from sharing their
knowledge with others. Some of what obstruct sharing knowledge between colleagues are the
following factors: the relations between the source of knowledge and the receiver of the
knowledge aren’t extensive, according to Smith and McKeen (2003) rewards and motivation
aren’t enough for sharing, according to Ikhsan and Ronald (2004) time is insufficient, and
knowledge sharing culture is lacking. Furthermore, inadequacy in understanding what to
share with whom, limited appreciation of sharing knowledge and fear of acquiring false
knowledge may also hinder knowledge sharing acts (Cited in Majid and Wey, 2009:22).
2.1. Conseptual analysis of learning organizations
Organizational learning can be said to occur when there is a change in the
content,conditionality, or degree of belief of the beliefs shared by individuals who jointly act
on those beliefs within an organization knowledge can be articulated and codifiedto create
organizational knowledge assets. Knowledge can be disseminated (using information
technologies)in the formof documents, drawings, best practicemodels, etc.Learning processes
can be designed toremedy knowledge deficienciesthrough structured, managed, scientific
processes (Sanchez, 2005: 3).
Organizational learning requires a sharing of language, meaning, objectives and standards
that are significantly different from individual learning. When the organization learns, it
generates a social synergy that creates knowledge, adding value to the firm’s knowledge
workersand to its overall performance. When such a capability becomes embedded within
theorganization’s culture, the organization may have what is called a core competency. These
areusually unique to each organization and can rarely be replicated by other firms. The
406

�knowledge behind a core competency is built up over time through experiences and successes
and rests morein the relationships and spirit among the knowledge workers that is the sum of
each workers knowledge (Bennet and Bennet, 2006: 1-3).
3.Research Method and Sample
The “Questionnaire of Learning Organizations’ Dimensions” which we referred to was
devbeloped by Watkins and Marsick (1997). The reliability and the validity of the
questionnare, learning continuum, dialog and research, learning as a team, sharing system,
connections between systems, empowered employees, supporting leadership.
The data were collected through a questionnaire based on literature. Surveys of Chow, Deng
and Ho (2000) were utilized in evaluating the employees' knowledge sharing. There were 24
questions by Chow, Deng and Ho (2000) in the questionnaire: 5 about the perspectives of the
employees about knowledge, 5 about the cases requiring knowledge sharing, 9 about the
cases obstructing knowledge sharing and 5 about the elements of knowledge sharing that is
the basic variable of intellectual capital.
This research was conducted by questionnaire method to totally 124 people who work in
different segments of Altintas District Governorship.
3.1. Demographical Characteristics of the Subjects
Shows demographic features of the subjects: Age Distribution: 20-25 Yaş %14,5; 25-30 age
%36,5 ;30-35 age %16,5; 35-40 age %14,5 ; 40-45 age %8,9 ; Over 45 %13,7 Marital Status
Distribution Married 92 - % 74,2 ; Single 32 - %25,8 Distribution According To Position
Officer 47 - %37,9 , Office Boy 2 - %1,6 ;Teacher 50 - %40,3;Policeman 2 - %1,6; Sağlıkçı
5 - % 4 ;Health Worker 18 - %14,5. Distribution Accoding To Departments Land Registry 5 %4; Education 67 - %54; Governorship 15 - %14,1 ; Health 1 - %13,7; Forestry 13 %10,5; Treasury 7 - %5,6. Working Time Distribution 1-5 Years 77 %62,1 ; 5-10 Years 25
%20,2 ; 10-15 Years 10 %8,1 ; 15-20 Years 1 %8 ; Over 20 Years 11 %8,9 Distribution
Of Education Level High School 24 - %19,4 ; University 99 - %79,8 ; Masters Degree 1 %0,8
4.Research Hyphothesis
The hypothesis can be said like this;
H1:There is a statistically significant correlation between the participants’ (officers’)
viewpoints about sub-dimension of learning organization; knowledge management, dialog
407

�and research, learning as a team, sharing systems,empowered employees, connections
between systems and supporter leadership.
H2:There is a statistically significant correlation between the participants’ (officers’)
viewpoints about openness of the internal channel and learning organizations, dialog and
research, learning as a team, sharing systems, empowered employees, connections between
systems and supporter leadership.
4.1.Findings and analysis
4.1.1. Reliability of the Questionnaire
In order to testthe reliability of questionnaire after analyzing the findings the Likert type data
of the questionnaire, Cronbach’s Alpha value was found as 0,95. Some 28 questions which
take part in the questionnaire were analysed to test reliability and Cronbach’s Alpha value of
Likert type questionnaire findings was found as 0,80.
1. Analysis of correlations between sub-dimensions of sharing information and learning
organizations

SITUATIONS

Pearson
Correlatio
n

DIALOG

TEAM

SHARING

,536**

,424**

,387**

,000

,000

,459**

,000

EMPOWERING

SYSTEM

SUPPORT

,388**

,405**

,360**

000

000

000

000

,442**

,374**

,407**

,428**

,349**

,000

,000

,000

,000

,000

REQUIRING
THE
SHARING INFO

OPENNESS
of IN-HOUSE
COGNITIVE
CANALS

Sig. (2tailed)
Pearson
Correlatio
n

Sig. (2tailed

**İlişki 0,01 düzeyinde anlamlıdır (çift yönlü) Relationship is significant at the 0,01 level.
(two ways)
408

�In the result of correlation analysis, at the 0,01 significance level situations requaring the
sharing info and relationship in a positive way have been observed between dialog and
research team learning, sharing systems, empowered workers, connection between the
systems, sharing information of supportive leadership and openness of in-house cognitive
canals which are dimensions of sharing information.
2. Multiple regression analysis between learner dimensions of organization and sharing
information
2
R

= 30,1 ADJUSTED

2
R

=25,9

F=7,150

INDEPENDENT VARIABLES

P VALUE =,000



P VALUE

t VALUE

PARAMETER

-,038

-,377

,707

DIALOG

,458

3,523

,001

TEAM

,044

,333

,739

-,030

-,244

,808

EMPOWERING

,018

,144

,886

SYSTEM

,087

,589

,557

SUPPORT

,049

,400

,690

CONTINUOUSNESS

SHARING

.
Continiously learning which are learner dimensions of organization, dialog and research,
team learning, sharing systems, empowered workers, connection between the systems and
sharing information of supportive leadership explains 25,9 % part of total variance of sharing
info perceptions.
3. Multiple regression analysis between learner dimensions of organization and openness of inhouse cognitive canals

2
R =

27,1

ADJUSTED

INDEPENDENT VARIABLES

2
R =22,1

F=6,167



P VALUE =,000

t VALUE

P VALUE

PARAMETER

-,127

-1,233

,220

TEAM

,284

2,140

,034

SHARING

,211

1,564

,120

-,043

-,342

,733

SYSTEM

,049

,386

,700

SUPPORT

,176

1,165

,246

DIALOG

EMPOWERING

409

�Dialog and research which are learner dimensions of organization, team learning,
sharing systems, empowered workers, connection between the systems and sharing
information of supportive leadership explains 22,1 % part of total variance of
openness of in-house cognitive canals of perceptions.

5. CONCLUSION
Named as a knowledge era and since 1990 and onwards which are the beginning of
the new era it has been observed that many academic studies on knowledge management and
knowledge sharing and also it is thought that this interest will become more dense in the
following years. At the end of the study, a positive relationship has been found in the
correlation analysis and regression analysis between learner organization and sharing
information. Knowledge management has been influential both reaching the individual aims
and organizational aims and targets by catalyzing.Today, knowledge society has become an
economical system with new occupational structures, new production relationships and social
structures in which knowledge is produced densely. In the knowledge society, the main
motivation factor which leads the individuals and entrepreneurs to produce knowledge is to
desire self realization. The race to success, as a success competition, it makes feel not only in
local level but also in global level. Knowledge management- in learner organizations- is to
provide a common language which will reflect the organization’s own identity for reaching
the aims of organizations, adopting sharing vision which is desired to be composed, and
abolishing the resistance against wanting to apply to administrative approaches. (Karahan and
Yılmaz,2010).
REFERENCES
Bennet A. and Bennet D. (2003) The partnership between organizational learning and
knowledge management. In Handbook on Knowledge Management (HOSAPPLE CW, Ed),
Vol. 1, pp 439–455, Springer, New York.
Ipe M. (2003). ‘Knowledge Sharing On Organizations: A Conceptual Framework’, Human
Resource Development Review. Thousand Oaks: Dec. Vol:2, Iss.4.
Bartol M. K. And Srıvastava A. (2002) “Motivation and Barriers to Participation in Virtual
Knowledge-Sharing Comminities of Practice”, Journal of Leadership and Organization
Studies, Vol.9, No.1, pp.64-75.

410

�Chow C.W. Deng F. J. Ho J.L. (2000) “The Openness of Knowledge Sharing Within
Organizations: A Comparative Study in The United States And The People's Republic Of
China”, Journal of Management Accounting Research; Vol.12, pp.65-95.
Chrıstensen H. P. (2007) “Knowledge Sharing: moving away from the obsession with best
practices”, Journal of Management, Vol.11, No.1. pp.36-47.
Karahan A.and Yılmaz H. (2010) “Learning Organizations and Knowledge Management”
Osmangazi University Instıtute of Social Sciences Review, Nisan 2010, 5(1), s.147-174
Lin H.F. (2007) Knowledge Sharing and Firm Innovation Capability: An Emprical Study,
International Journal of Manpower, Vol.28, No:3/4, pp. 315-332.
Majid S. and Wey S. M. (2009) Perceptions And Knowledge Sharing Practices Of Graduate
Students In Singapore, International Journal of Knowledge Management, 5(2),pp. 21-32.
Mc Neısh J. and Inder J. S. M. (2010) “Knowledge Sharing and Trust in Organizations”, The
20 IUP Journal of Knowledge Management, Vol. VIII, Nos. 1 &amp; 2, pp.18-38.
Sanchez R. (2005) “ Knowledge Management and Organizational Learning: Fundamental
Concepts for Theory and Practice” Lund Institute of Economic Research Working Paper
Series
Sharrat M. and Usoro A. (2003), ‘Understanding Knowledge-Sharing in Online Communities
of Practice’, Journal of Knowledge Management, Vol: 1, Issue: 2, Dec., pp. 4-5.
Yaghi B. And Alfawaer S. N. (2011) Knowledge-sharing degree among the undergraduate
students: A case study at applied science private university - Middle East University for
graduate studies, Amman (JORDAN)
Yang J.T. (2007) The Impact of Knowledge Sharing on Organizational learning and
Effectiveness, Journal of Knowledge Management, Vol.11, No:2, pp.83-90.

411

�Watkıns K. And Marsick
V. (1997) Dimensions of The Learning Organization
Questionnaire [survey] (Warwick, RI: Partners for the Learning Organization)

Civil Law Notaries in Bosnia and Herzegovina: Actors in Preventive Justice
Bakšić Šukrija1, Oruč Esad2
1University of Zenica, Faculty of Law, Zenica, Bosnia and Herzegovina,
2International Burch University, Sarajevo, Bosnia and Herzegovina
E –mails: sukrijabaksic@gmail.com,eoruc@ibu.edu.ba
Abstract
Civil law notaries are professional lawyers and public officials appointed by the State to
confer authenticity on legal deeds and contracts contained in documents drafted by them and
to advise persons who call upon their services. Institution of the notary was introduced for the
first time in the legal system of Bosnia and Herzegovina in 2007. Introduction of the office
of notary was one of the steps taken to ensure independent and impartial judiciary and to
adapt legal system with European Union law. Before its introducing there was no institution
or legal profession which acted impartially on behalf of all parties to a contract or transaction.
Notarial services are very wide and complex. It encompasses all judicial activities in noncontentious matters, ensure legal certainty to clients, thus averting disputes and litigation. As
a guarantor of legal certainty, notary is one of the most important actors of preventive justice
which include all means of reducing resort to the courts for the settlement of controversies.
In this study we analyzed contribution of notary office to preventive justice in Bosnia and
Herzegovina.
Keywords: civil law notary, preventive justice, legal certainty, realising justice, avoiding
disputes

412

�</text>
                  </elementText>
                </elementTextContainer>
              </element>
            </elementContainer>
          </elementSet>
        </elementSetContainer>
      </file>
    </fileContainer>
    <elementSetContainer>
      <elementSet elementSetId="1">
        <name>Dublin Core</name>
        <description>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/.</description>
        <elementContainer>
          <element elementId="79">
            <name>Extent</name>
            <description>The size or duration of the resource.</description>
            <elementTextContainer>
              <elementText elementTextId="18202">
                <text>1196</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="50">
            <name>Title</name>
            <description>A name given to the resource</description>
            <elementTextContainer>
              <elementText elementTextId="18203">
                <text>An Empirical On Knowledge Sharing In Learning Organizations In Kutahya, Turkey</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="96">
            <name>Author</name>
            <description>Author</description>
            <elementTextContainer>
              <elementText elementTextId="18204">
                <text>Kemal, Demirci</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="94">
            <name>Abstract</name>
            <description>A summary of the resource.</description>
            <elementTextContainer>
              <elementText elementTextId="18205">
                <text>Comunities today and in the future have to process, evaluate and internalize the information  more than past. Comunities and enterprises, which don't understand the environment, and are  unconscious about changes, and which don't read the world, are obliged to deteriorate, even  to die. Fiber speed and continious changes of present world, makes compulsory to learn  continiously and to educe information. Enterprises have to be open to continiously learning to  carry on their growth and development and they have to gain capability to share  knowledge.This paper undertakes to contribute to this search by addressing some  fundamental questions about the nature, domain, conceptual foundations, and practical  challenges of knowledge management and organizational learning. A positive relationship  has been found between continiously learning which are learner dimensions of organization,  dialog and research, team learning, sharing systems, empowered workers, connection  between the systems, sharing information of supportive leadership and openness of in-house  cognitive canals through the correlation and multiple regression analysis done in the result of  the research.  Keywords: Knowledge Management, Knowledge Share, learning organization.</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="40">
            <name>Date</name>
            <description>A point or period of time associated with an event in the lifecycle of the resource</description>
            <elementTextContainer>
              <elementText elementTextId="18206">
                <text>2012-05-31</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="97">
            <name>Keywords</name>
            <description>Keywords.</description>
            <elementTextContainer>
              <elementText elementTextId="18207">
                <text>Conference or Workshop Item
PeerReviewed</text>
              </elementText>
            </elementTextContainer>
          </element>
        </elementContainer>
      </elementSet>
    </elementSetContainer>
    <tagContainer>
      <tag tagId="88">
        <name>H Social Sciences (General),T Technology (General)</name>
      </tag>
    </tagContainer>
  </item>
  <item itemId="2253" public="1" featured="0">
    <fileContainer>
      <file fileId="3307">
        <src>https://omeka.ibu.edu.ba/files/original/8f6acb07f42253e9d92cdf547d2e78d4.pdf</src>
        <authentication>20319426275d286f511ae95d59bac5ff</authentication>
        <elementSetContainer>
          <elementSet elementSetId="4">
            <name>PDF Text</name>
            <description/>
            <elementContainer>
              <element elementId="52">
                <name>Text</name>
                <description/>
                <elementTextContainer>
                  <elementText elementTextId="18215">
                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Burdur’un Sesi Newspaper, 27 February 1960, S.1459, p.1

ANOTHER REFERENCE
1.Keleş, R.(1992), Yerinden Yönetim ve Siyaset, İstanbul: Cem Yayınları,
2.Koçak, C(2007), “Siyasi Tarih 1923-1950”, Türkiye Tarihi 4, Çağdaş Türkiye 19081980,Yayın Yönetmeni Sina Akşin, İstanbul: Cem Yayınları.

3.http://tr.wikipedia.org/wiki/1957_T%C3%BCrkiye_genel_se%C3%A7im

leri

4.http://www.msxlabs.org/forum/soru-cevap/319505-yetki-merkezi-yonetim-yerel-yonetimnedir.html#ixzz1pf2hRDvL.
.

An Empirical Research On Relation Between Learning Organization And Visionary
Leadership In Kutahya, Turkey

Kemal Demirci1, Nuray Mercan1, Yaşar Aksanyar1, Bayram Alamur2, Ayşenur Altinay3
1Dumlupinar University Institute of Social Sciences, Kutahya, Turkey
2Balikesir University Havran Vocational School Of Higher Education,
3Usak University Vocational School Of Higher Education, Kutahya, Turkey
E-mails: mkdemirci26@hotmail.com, snmmercan@yahoo.com, ayyasari@gmail.com,
alamur_bayram@hotmail.com, aysenuraltinay@hotmail.com

Abstract
EINSTEIN, has seen the future dream and information power, then performed his genius
by dreaming. To dream the aimed future and to focus on, to endeavour on targets, to build a
''vision'' are the powers which a leader has to have. Visionary leadership is persuading the
communities and formuizing the targets. Enterprises today, can not brand , grown and carry
on without having a vision. In the organizations which aim continious development and
continious learning, it will be easier to carry the enterprise to the future and to show visionary
leadership qualifications if they achieve to become open to changes and should be in
interaction with the others and if they should be a living organization. At the end of the study,
by making a multiple regression analysis, a positive relationship has been found between
learning organisation dimensions; (continious learning, dialog and research, learning as a
team, sharing systems, empowered employees,connection between systems and supporting
192

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

leadership) and
visionary leadership dimensions(planning, visionary organizational
leadership, visionary creative leadership)

Keywords: Learning organizations, Vision, Visionary Leadership, Living Organism, Future.

1.INTRODUCTION
Peter Senge argues that learning organizations require a new view of leadership. He
sees the traditional view of leaders (as special people who set the direction, make key
decisions and energize the troops as deriving from a deeply individualistic and non-systemic
worldview (1990: 340). At its centre the traditional view of leadership, ‘is based on
assumptions of people’s powerlessness, their lack of personal vision and inability to master
the forces of change, deficits which can be remedied only by a few great leaders’ (op. cit.).
Against this traditional view he sets a ‘new’ view of leadership that centres on ‘subtler and
more important tasks’. In a learning organization, leaders are designers, stewards and
teachers. They are responsible for building organizations were people continually expand
their capabilities to understand complexity, clarify vision, and improve shared mental models
– that is they are responsible for learning…. Learning organizations will remain a ‘good
idea’… until people take a stand for building such organizations. Taking this stand is the first
leadership act, the start of inspiring (literally ‘to breathe life into’) the vision of the learning
organization. “Leader as teacher” is not about “teaching” people how to achieve their vision.
It is about fostering learning, for everyone. Such leaders help people throughout the
organization develop systemic understandings. Accepting this responsibility is the antidote to
one of the most common downfalls of otherwise gifted teachers – losing their commitment to
the truth. Learning organizations demand a new view of leadership, leader as designer
(Senge 1990: 356). Culture begins with leadership, but because culture is the result of a
group’s accumulated learning the culture itself will later define the wanted leadership
(Schein,2004). To be a LO has no value in itself, it must always serve the broader aims of the
organization (Jensen,2005). A Learning Organization has a design and a culture which takes
into account the needs of the individuals in the organization (Kline and Saunders,1993) and
in a LO members know why. In other organizations they know how (Jensen,2005).

2. Conceptual Analysis Of Learning Organizations

According to Peter Senge (1990: 3) learning organizations are: …organizations where
people continually expand their capacity to create the results they truly desire, where new and
expansive patterns of thinking are nurtured, where collective aspiration is set free, and where
people are continually learning to see the whole together.
Organizations learn. Just like individual people, organizations sense circumstances
within their environment and they respond. They observe the results of their responses and
193

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

remember the results, along with information gathered from other sources, for reference in
designing future responses. This process of sensing, responding, and observing/remembering
goes largely unnoticed by the individuals working within the organization due to the
complexity of the "anatomy" of organizations. But consciously or not, effectively or not, all
organizations are doing these activities over and over. In studying the concept of learning
organizations we seek the tools and methodologies that will help an organization learn
consciously and proactively in pursuit of its goals. In a learning organization, our purpose for
dialogue is to let the meaning of our words permeate through the group, or, to develop fully
shared, even synergistic understanding of important information, experiences, goals, etc.
among all the people involved (Agarval, 1999).

3. Conceptual Analysis Of Visionary Leadership

Visionary leadership refers to the capacity to create and communicate a view of a
desired state of affairs that clarifies the current situation and induces commitment to an even
better future. A visionary leader as one who “established goals and objectives for individual
and group action, which define not what we are but rather what we seek to be or do”
(Colton:1985). The visionary leader inspires, challenges, guides, and empowers. This
articulated link between dreams and action, between vision and leadership, is well
documented in the literature. Bennis and Nanus (1985) claimed that a compelling vision is
key to effective leadership in excellent organizations. The visionary leader is not a mystical
person somehow connected to intelligences or powers beyond what others know. The
visionary leader is one who can clearly articulate what is and what ought to be. But the
person who can only articulate a set of descriptors of what ought to be is like the person who
accurately predicts rain but cannot envision the need to build an ark. The visionary leader in
action has the necessary skills and knowledge to build a new reality (Brown, Anfara, 2003).

4.Method And Sampling

The data were collected through a questionnaire based on literature. It was conducted totally
124 officers who work in different departments of Altıntaş District Governership. Learning
Organisation Dimensions' Questionnaire was developed by AnketiWatkins ve Marsick (1997)
and the reliability of the questionnaire was tested. Seven dimensions of the Learning
Organisation Dimensions Questionnaire are continious learning, dialog and research, learning
as a team, sharing systems, empowered employees,connection between systems and
supporting leadership. (Basım ve Şeşen, 2007; Basım vd., 2007). In Visionary Leadership
Questionnaire, the phd thesis of Garry Forrest (2001), named “Investigation of the
Relationship Among Leaders’ Responses on Four Leadership Inventories” was used by
adapting into Turkish. (Öztürk, 2009). Dimensions, planning, motive of succeeding,
194

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

leadership of organizational, risk management, utilizing the opportunities, creative leadership
and motivation.

4.1. Hypotheses Of The Research
4.1.1.The hypotheses of the research are as the following;

H1: There is a statistically significant relationship between the participants’ (officers)
viewpoints about ''planning in visionary leadership'' and some learning organisation's
dimensions; ''dialog and research'', ''learning as a team'', ''sharing systems'', ''empowered
employees'','' connections between systems'' and ''supporting leadership'' .

H2: There is a statistically significant relationship between the participants’ (officers)
viewpoints about visionary organizational leadership'' and some learning organization’s
dimensions; ''dialog and research'', ''learning as a team'', ''sharing systems'', ''empowered
employees'','' connections between systems'' and ''supporting leadership''

H3: There is a statistically significant relationship between the participants’ (officers)
viewpoints about visionary creative leadership'' and some learning organisation's dimensions;
''dialog and research'', ''learning as a team'', ''sharing systems'', ''empowered employees'',''
connections between systems'' and ''supporting leadership''

5. Sampling &amp; Data Collection Tools

The sampling was composed of 124 officers(sivil servants) employed at different
departments of Altıntaş District Governership.

5.1. Reliability of the Questionnaire

In order to test reliability of the questionnaire, a pre-study was conducted. As a result of the
analysis conducted to test consistency and reliability of 43 questions about Learning
oarganisation, (N of items= 43), the Likert type questionnaire data was found to have
Cronbach Alpha value of 0,95, which is very close to 1.00. This showed that the questions
about Learning Organisation were reliable and could be used in the research. As a result of
the analysis conducted to test consistency and reliability of 28 questions about Visionary
Leadership (N of items= 28), the Likert type questionnaire data was found to have Cronbach

195

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

Alpha value of 0,80, which is very close to 1.00. This showed that the questions about
Visionary Leadership were reliable and could be used in the research.

5.2. Demographical Characteristics of the Subjects

Shows demographic features of the subjects: Age Distribution: 20-25 Yaş %14,5; 25-30 age
%36,5 ;30-35 age %16,5; 35-40 age %14,5 ; 40-45 age %8,9 ; Over 45 %13,7 Marital Status
Distribution Married 92 - % 74,2 ; Single 32 - %25,8 Distribution According To Position
Officer 47 - %37,9 , Office Boy 2 - %1,6 ;Teacher 50 - %40,3;Policeman 2 - %1,6; Sağlıkçı
5 - % 4 ;Health Worker 18 - %14,5. Distribution Accoding To Departments Land Registry 5 %4; Education 67 - %54; Governorship 15 - %14,1 ; Health 1 - %13,7; Forestry 13 %10,5; Treasury 7 - %5,6. Working Time Distribution 1-5 Years 77 %62,1 ; 5-10 Years 25
%20,2 ; 10-15 Years 10 %8,1 ; 15-20 Years 1 %8 ; Over 20 Years 11 %8,9 Distribution
Of Education Level High School 24 - %19,4 ; University 99 - %79,8 ; Masters Degree 1 %0,8
1. Multiple Regression Analysis between ''Planning In Visionary Leadership'' and ''Learning
Organisation's Dimensions''
2
R

= 41

2
Adjusted

R

=38

F=13,558

P Value=,000

INDEPENDENT VARIABLES

 Parameter

t Value

P Value

DIALOG AND RESEARCH

,026

,234

,815

LEARNING AS A TEAM

1,128

1,104

,272

SHARING SYSTEMS

,-200

-1,770

1,079

EMPOWERED EMPLOYEES

,-087

,759

1,450

CONNECTIONS BETWEEN SYSTEMS

,500

3,713

,000

SUPPORTING LEADERSHIP

,274

2,446

,016

The sub-dimensions of Learning Organisation; dialog and research, learning as a team,
sharing systems, empowered employees, connection between systems and supporting
leadership , can explain %38 of the total variance of the viewpoints about ''Planning in
Visionary Leadership''.
2. Multiple Regression Analysis between Visionary Organisational Leadership'' and ''Learning
Organisation's Dimensions''

2
R =

79,3

Adjusted

F=33,037

P Value =,000

 Parameter

t

DIALOG AND RESEARCH

,-033

,-371

,711

LEARNING AS A TEAM

,072

,778

,438

SHARING SYSTEMS

,014

,154

,878

INDEPENDENT VARIABLES

196

2
R =61

t Value

P

Value

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

EMPOWERED EMPLOYEES

,058

,637

,526

CONNECTIONS BETWEEN SYSTEMS

,373

3,496

,001

SUPPORTING LEADERSHIP

,388

4,359

,000

The sub-dimensions of Learning Organisation; dialog and research, learning as a team,
sharing systems, empowered employees, connection between systems and supporting
leadership , can explain %61 of the total variance of the viewpoints about '' Visionary
Organisational Leadership''
3. Multiple Regression Analysis between ''Visionary Creative Leadership'' and
''Learning Organisation's Dimensions''

2
R =

48,6

2
Adjusted

R

=46

F=18,459

P Value=,000

 Parameter

t Value

P Value

DIALOG AND RESEARCH

,-010

,-093

,926

LEARNING AS A TEAM

,-117

1,079

,283

SHARING SYSTEMS

,010

,099

,922

EMPOWERED EMPLOYEES

,019

,177

,860

CONNECTIONS BETWEEN SYSTEMS

,207

1,645

,103

SUPPORTING LEADERSHIP

,433

4,135

,000

INDEPENDENT VARIABLES

The sub-dimensions of Learning Organisation; dialog and research, learning as a team,
sharing systems, empowered employees, connection between systems and supporting
leadership , can explain 46 % of the total variance of the viewpoints about '' Visionary
Creative Leadership''

6.CONCLUSION
After making a multiple regression analysis, there is a statisticallay significant relationship
between visionary leadership and learning organisation's dimensions. In the future, the most
successful people and the institutions will be the one, which learn easily and fast learn.
Today, they have knowledge and experience, but it wll not be enough in the future.
Information and technology are developing and the only way to gain speed is to identify the
learning needs and then, try to achieve effective learning. (Braham, 1998: 13-14).
Developing learning structure and capacity, and to keep up with fast imrovements and
innovations will be the main qualifications of the successful organisations. An executive, who
has visionary and innovative approach must have a qualification in reading different
developments and cases different from the others. In learning organisations which have this
197

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

qualifications, it will be easier to show vision development and visionary leadership
qualifications.
REFERENCES
Agarwal A. (1999) “Learning Organization” www.hrfolks.com
Bennis, W. And Nanus, B. (1985). Leaders: The strategies for taking charge. New York:
Harper &amp; Row.

Braham, Barbara J. (1998), A Learning Organizations Creative, Rota Press, İstanbul.

Brown K. M. and Anfara V. A. (2003) “Paving the Way for Change: Visionary Leadership
in Action at the Middle Level” Jr. NASSP Bulletin ,Vol. 87 No. 635 June ,p. 16-34.

Colton, D. L. (1985) “Vision” National Forum, 65(2), 33–35.

Davenport T.H. and Prusak L. (1998) Working Knowledge. Harvard Business School Press
Boston.
Jensen P.E.(2005) “A Contextual Theory of Learning and the Learning Organization”
Knowledge and Process Management”, Vol.12, No.1, 53-64.

Kline P. And Saunders B. (1993) Ten steps to a learning organization. Library of Congress
Cataloging in Publication Data 1993, ISBN: 0-915556-24-3.

Oztürk E. (2009) “Visionary Leadership Characteristics Of School Administrators”
Academic
dissertation, Çanakkale.

Senge P.M. (1990) The Fifth Discipline The Art &amp; Practice of The Learning Organization.
Currence Doubleday, 1990, ISBN: 0-385-26095-4

Schein E.H. (2004) Organizational culture and Leadership. (3rd edition) John Wiley &amp; Sons,
Inc., 2004, ISBN: 0-7879-6845-5.

Schultz, J. R. (1999) “Peter Senge: Master of Change” Executive Update Online,
http://www.gwsae.org/ExecutiveUpdate/1999/June_July/CoverStory2.htm
198

�</text>
                  </elementText>
                </elementTextContainer>
              </element>
            </elementContainer>
          </elementSet>
        </elementSetContainer>
      </file>
    </fileContainer>
    <elementSetContainer>
      <elementSet elementSetId="1">
        <name>Dublin Core</name>
        <description>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/.</description>
        <elementContainer>
          <element elementId="79">
            <name>Extent</name>
            <description>The size or duration of the resource.</description>
            <elementTextContainer>
              <elementText elementTextId="18209">
                <text>1112</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="50">
            <name>Title</name>
            <description>A name given to the resource</description>
            <elementTextContainer>
              <elementText elementTextId="18210">
                <text>An Empirical Research On Relation Between Learning Organization And Visionary  Leadership In Kutahya, Turkey</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="96">
            <name>Author</name>
            <description>Author</description>
            <elementTextContainer>
              <elementText elementTextId="18211">
                <text>Kemal, Demirci</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="94">
            <name>Abstract</name>
            <description>A summary of the resource.</description>
            <elementTextContainer>
              <elementText elementTextId="18212">
                <text>EINSTEIN, has seen the future dream and information power, then performed his genius  by dreaming. To dream the aimed future and to focus on, to endeavour on targets, to build a  ''vision'' are the powers which a leader has to have. Visionary leadership is persuading the  communities and formuizing the targets. Enterprises today, can not brand , grown and carry  on without having a vision. In the organizations which aim continious development and  continious learning, it will be easier to carry the enterprise to the future and to show visionary  leadership qualifications if they achieve to become open to changes and should be in  interaction with the others and if they should be a living organization. At the end of the study,  by making a multiple regression analysis, a positive relationship has been found between  learning organisation dimensions; (continious learning, dialog and research, learning as a  team, sharing systems, empowered employees,connection between systems and supporting leadership) and visionary leadership dimensions(planning, visionary organizational  leadership, visionary creative leadership)  Keywords: Learning organizations, Vision, Visionary Leadership, Living Organism, Future.</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="40">
            <name>Date</name>
            <description>A point or period of time associated with an event in the lifecycle of the resource</description>
            <elementTextContainer>
              <elementText elementTextId="18213">
                <text>2012-05-31</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="97">
            <name>Keywords</name>
            <description>Keywords.</description>
            <elementTextContainer>
              <elementText elementTextId="18214">
                <text>Conference or Workshop Item
PeerReviewed</text>
              </elementText>
            </elementTextContainer>
          </element>
        </elementContainer>
      </elementSet>
    </elementSetContainer>
    <tagContainer>
      <tag tagId="6">
        <name>H Social Sciences (General)</name>
      </tag>
    </tagContainer>
  </item>
  <item itemId="2254" public="1" featured="0">
    <fileContainer>
      <file fileId="3308">
        <src>https://omeka.ibu.edu.ba/files/original/45ac167ad3c579e598ac126fc5cf5ece.pdf</src>
        <authentication>b03ffda85c01921a6f426eedebf232ea</authentication>
        <elementSetContainer>
          <elementSet elementSetId="4">
            <name>PDF Text</name>
            <description/>
            <elementContainer>
              <element elementId="52">
                <name>Text</name>
                <description/>
                <elementTextContainer>
                  <elementText elementTextId="18222">
                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

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

Menu Planning With Fuzzy 0-1 Integer Programming

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

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

6

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

The growth in the number of people necessitates that an effective menu planning must be
done in order to keep the continuity of sustainable public nutrition systems.
In this study, detailed plans of 20 days’ lunch menu lists are prepared for workers who are at
the age of between 19 to 30 years old. Fuzzy 0-1 integer linear programming technique was
used during the planning process with the consideration of data’s fuzziness. CarlssonKorhenon approach, which is offered for the situations when all parameters are fuzzy in the
model configuration, is applied.
Keywords: Menu Planning, Nutrition, Fuzzy, 0-1 Linear Programming.
Jel Codes: C44, C61, Q01
1.INTRODUCTION
Brundtland Report defines sustainable development as a development understanding which
meets the needs of today’s generations without endangering the meeting ability of future
generations (Çetin, 2006). Sustainable development involves environment, economy, sociodemographic and health elements (Çelik, 2006). Health, as one of the main components of
sustainable development is under the influence of some factors such as nutrition, heredity,
climate and environmental conditions. Among them, nutrition is the primal one (Baysal,
2009).
Public food service system (PFSS) has become an important part of our lives as a result of
recent changes such as technological developments, transition from agricultural society to
industrial society and socio-economic and cultural changes of urban life. PFSS is defined as
the system via which people, who are either at home or working outside of their home, can
meet the food needs just as they wish to have it without going outside from their place. PFSS
institutions are those kinds of establishments that can programme and manage nutritional
needs and problems of specific groups from a single center. Places and institutions in which
people usually exist publicly and eat together are hospitals, schools, universities, nursing
homes, prisons, armies, hotels, offices, restaurants, institutions and factories (Atılan, 2008).
In the past, it was thought that only 10 or 15 percent of the general population benefit from
PFS. According to 2010 census data the rate of working people in Turkey reached up to %
50.5 (TÜİK, 2011). Therefore it can be inferred that the rate of people who benefit from PFS
also increased (Atılan, 2008).
The rapid growth in the world population increases the need for food and inadequacy of
agricultural production rises food prices (Kaypak, 2011). If the rapid growth tendency in
population, food production and consume of resources continue without any change, human
being will reach development limits of the planet in the next century (Kaypak, 2011).
In sustainable development the biggest target is to maximize the benefits and values of
sources for society. It is necessary in terms of exhaustible sources to determine optimal usage
levels of them (Çetin, 2006). With the increasing number of PFS people, an effective menu

7

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

planning should be made in PFSS in the context of providing the continuity of human health
and efficient use of resources.
Menu planning is a complicated process that many factors should be taken into consideration
in planning such as cost, taste, variety, energy, need of nutrient etc. and mathematical models
are used in the planning of the process (Şenol, 2011). It is possible to see many studies on
menu planning in science literature some of which as follows: Anderson and Earle (1983),
Colavita and D’orsi (1990), Soden and Fletcer (1992) Sklan and Dariel (1993) Kılınç (2007),
Ediz and Yağdıran (2009), Şenol (2009), Mamat et al. (2011) and many other scholars.
The data is quite important to perform an accurate mathematical modeling. However, it is not
always possible to reach required exact/precise data for menu planning. Fuzzy modeling is
performed on the bases of fuzzy set theory which is developed by Zadeh (1965) when a given
date is inaccurate or fuzzy.
In this study, sample lunch menu is planned to be served in three or four vessels as
nonoptional menus for moderate activity job workers who are at the age of 19 to 30 years old.
This plan is prepared for the companies that work 5 days a week and the schedule is thought
monthly that means menus are for 20 days. Fuzzy 0-1 integer linear programming method is
used during the planning process of the study and fuzziness were taken into account. In this
model, 1280 decision variables and 752 constraints were used. Carlsson-Korhenon (1986)
approach, which is offered for the situations when all parameters are fuzzy in the model
configuration, is applied. GAMS 22.5 package program was used for all solutions.
2.Fuzzy Linear Programming
Fuzzy linear programming models are constructed by adding the concept of fuzziness to
linear programming models. These models are suggested for the solutions of problematic
models that have fuzziness in their parameters and can be modeled by using linear functions.
Especially it provides an opportunity to express the demands of decision maker flexibly
(Bozdağ and Türe, 2007).
There are many offered fuzzy linear programming models by scholars such as Zimmermann
(1983), Werners (1987), Carlsson-Korhonen (1986). These models change according to their
fuzziness in coefficients of the objective function, all parameters, objective function etc. or
membership function of the fuzzy number.
0-1 integer linear programming model, which its’ all parameters are fuzzy and with a
objective function that is based on minimization, can be expressed as follows:
Objective Function:
n
~
Zmin   cjx j
j1

Constraints:
8

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

n
~
~
 a ij x j  b i

i  1, 2,....,m

x j  0 or 1

j  1, 2,....,n

j1

According to fuzzy set theory each fuzzy number is a cluster. In the fuzzy sets each cluster
members are included to set by taking a degree (µ) ranging from 0 to 1. If the cluster element
takes a degree of 1, it is a full member of cluster, but if it takes a degree of 0, it cannot be a
member of cluster (Abdel Kader and Dugdale, 2001:457). The function of membership can
be defined in many ways depending on the situation of problem. The fuzzy number
which has monotone increasing or decreasing membership function and upper and lower limit
values are known can be defined as (Baykal, 2004):

 X~ (x)









x  x L  x U  x L  ~x

xU

xL

x

Graphic 1.Monotone Increasing Membership Function
 X~ (x)

x

L

x

U

x  x U  x U  x L  ~x

x

Graphic 2.Monotone Decreasing Membership Function

(x) values that are calculated according to (µ) refers to the degree of belonging to fuzzy set
( ) of (x).
Carlsson-Korhonen (1986) suggest a linear model, which can be used in the cases when
upper and lower limits of fuzzy numbers are known (namely
,
,
).
The model can be applied to solve for different membership functions of the fuzzy number by
valuing it from the applicable value (namely µ=1) into nonapplicable one (namely µ=0).
For the application of the model, it is needed that membership functions of fuzzy numbers
either should be increasing or decreasing. In the model, membership function of each fuzzy

9

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

number is composed thus it is clarified from fuzziness. According to preferred (µ)
value/values of decision maker, the model is solved.
3.Menu Planning in PFSS

Nutrition is the use of nutrients to protect health and provide maintenance of life. The science
of nutrition deals not only with composition of nutrients (energy and nutrient quantities) but
also age, gender, working conditions etc. (Baysal, 2009). In this study the nutrient amounts
and quantities of required energy list in a lunch is given in table 1 as menu planning which is
prepared for those who are at the age of between 19 to 30 years old and work in medium
activity jobs.
Table 1. Average Amounts of Energy and Some Nutrition List Except Bread in a Lunch
Energy - Nutrition
Elements

Symbols That Are Used For
Parameter In The Study

Values

Energy (kkal)

E

750

Protein (g)

P

22,7

Vitamin A (μg)

A

750

Thiamin (mg)

T

0,38

Vitamin C (mg)

CV

34

Source: Ediz and Yağdıran, 2009, 73.

Non optional menu systems, which do not give permission to choose food, are generally used
in the PFSS that serve working staff. The number of the food menus in the container is
limited from 3 to 4 (Ediz and Yağdıran, 2009, Beyhan and Ciğerim, 1995). A skeleton of
menu is created while creating non optional menus. During this process, food groups are
taken as ground and later on sample food are taken from each group. Here are the main food
groups as follows (Ediz and Yağdıran, 2009, Beyhan and Ciğerim, 1995):
The First Group Meals: Meat food as large and small pieces, meatballs, fish, meat and
vegetable ones, dolma and sarma (Special Turkish meals), food legumes with meat.
The Second Group Meals: Soups, rice dishes, pasta, pastries, olive oil dishes.
The Third Group Meals: Fruits, salads, desserts and others.
In this study, menu plannings are prepared for in total 64 dishes groups, 22 of which are set
as the first group and 18 for second group and 24 for third group. Food names and codes
given for food in the study, values of energy and nutrition of a portion of food, and costs is
given in the table 2. The model is established on basis of the standards below. (Note 1)
 Food Costs (Ci): The cost of each meal is determined as portion. However, the term “a
portion” is relative itself when the weight of it and the amount of the content in a portion
10

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








are considered. The amount of water, meat, onion, potato etc. in a given portion to a
worker is not going to be equal with another. In addition to this, prices of materials which
are used in the preparation of a meal can also be relative; moreover it is possible to meet
rotten materials in the meal too. But, it is not precisely possible to take all these variables
into account in the calculation of costs. Thanks to this fact, the costs of portions are
fuzzied from right and left with the percentage of 5. The feasibility of lowering the cost of
a meal gets lower as the cost of meal goes down. In other words, the more the price of
food increases, the more the degree of membership increase. For this reason, it is assumed
as that the fuzzied number has membership function that monotonically increases.
The Number of Meals: In each menu, 3 or 4 kinds of food are served by choosing from
first and second groups one for each and in addition to these one or two from third group.
[1-2-3]
Variety of the Menu: To be able to provide the menu diversity during planned time; each
food should be chosen from first and third groups meals maximum 1 time and minimum 1,
maximum 3 times from second group. [4-5-6] Each food served any day should be given
again 5 days later at the earliest.[7]
Energy and Nutrient Values: Due to the fact that the term of a portion is relative, the
amount of nutrients and energy in a portion will be different. Therefore, the energy and
nutritional values of a portion is fuzzied with 5 percentage from left and right. The
applicability of increasement in the energy and values of nutrient of food decreases as the
values of energy and nutrient increase. In other words, as a meal’s energy and nutrient
value increase, so as the degree of membership decreases. For this reason, the fuzzied
number is assumed to have a membership function that linearly decreasing.
Energy and Nutrient Element Needs: The values in the table 1 are average values and
calculated without bread. But, energy and nutrient element needs change for each staff in
real life according to gender, age, physical characteristics, occupation and so on.
Moreover, because of the fact that the amount of bread that is eaten by each worker is
different, the nutrient element and energy amount that are taken from eaten bread will also
be different. That is why the value of energy and nutrient element needs are fuzzied with 5
percentages from right and left and then used in the model as functional membership that
linearly increases. [8-9-10-11]

Here are some rules to be taken into consideration while creating skeleton of meal groups.
These rules can be listed as follows (Ediz and Yağdıran, 2009):













Meaty vegetable meats should not be served next to the olive oil vegetable meals. [12]
Dolmas (a Turkish food) should not be served next to rice. [13]
Rice based meals should be preferred next to meaty legume meals. [14]
With rice, pasta and pastries, dessert should be served. [15]
Salad should not be served next to olive oil vegetable dishes. [16]
Salad should not be served next to meaty vegetable dishes. [17]
Mutter milk should not be served next to soups. [18]
Dishes include potatoes should not be served together. [19]
Dishes include yoghurt should not be served together. [20]
Dishes include rise should not be served at the same time. [21]
Dishes include carrots should not be served together. [22]
Dishes include beans and squash should not be served together. [23]

11

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

Establishment of the Model
Decision Variables:
1
FGij  
0

if i. food is served on j. day

1
SGij  
0

if i. food is served on j. day

1
TGij  
0

if i. food is served on j. day

if i. food is not served on j. day

if i. food is not served on j. day

if i. food is not served on j. day

i  1, 2,...,22

j  1, 2,....,20

i  1, 2,....,18

j  1, 2,....,20

i  1, 2,....,24

j  1, 2,....,20

Objective Function:
20 22 ~
20 18 ~
20 24 ~
Zmin    Ci * FGij    Ci * SGij   Ci * TGij
j1i 1

j1i 1

j1i 1

Constrains:
22

 FGij  1

j  1, 2,....,20 …...……….[1]

i 1

18

1   SGij  2

j  1, 2,....,20 ……...…....[2]

i 1

24

 TGij  1

j  1, 2,....,20 …...………[3]

i 1
20

 FGij  1

i  1, 2,....,22 …...………[4]

j1

20

1   SGij  3

i  1, 2,....,20 ……...…....[5]

j1

20

 TGij  1

i  1, 2,....,22 …...………[6]

j1

n 4

 TGij  1

n  1,2,....,16

j n

22 ~

i  1, 2,....,22 …...………[7]

18 ~
24 ~
~
 Ei * FGij   Ei * SGij   Ei * TGij  7 5 0

j  1, 2,....,20 …...……….[8]

22 ~
 Pi
i 1

j  1, 2,....,20 …………….[9]

i 1

i 1

i 1

18 ~
24 ~
~
* FGij   Pi * SGij   Pi * TGij  22,7
i 1

i 1

12

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

22 ~
 Ti
i 1

18 ~
24 ~
~
* FGij   Ti * SGij   Ti * TGij  0, 3 8
i 1

i 1

22 ~

18 ~
24 ~
~
 CVi * FGij   CVi * SGij   CVi * TGij  3 4

i 1

i 1

i 1

22

6

i 13

i 1

20

13

i 19

i 12

22

6

18

i  21

i 1

i 14

18

4

i 12

i 1

 FGij   SGij  1

j  1, 2,....,20 …………..[13]

 FGij   SGij   SGij  1

j  1, 2,....,20 …………...[14]

 SGij   TGij  1
8

i 1

i 5

22

8

i 13

i 5

j  1, 2,....,20 …………..[11]

j  1, 2,....,20 ….……….[12]

 FGij   SGij  1

6

j  1, 2,....,20 …….......…[10]

j  1, 2,....,20 …………...[15]

 SGij   TGij  1

j  1, 2,....,20 …………...[16]

 FGij   TGij  1

j  1, 2,....,20 …………...[17]

11

 SGij  TG22 j  1

j  1, 2,....,20 …………...[18]

i 7
6

 FGij  FG10 j  FG12 j  FG16 j  SG6 j  TG8 j  1

j  1, 2,....,20 …………..[19]

FG15 j  FG20 j  SG5 j  SG8 j  TG22 j  TG23 j  1

j  1, 2,....,20 …………..[20]

i 1

20

3

i 19

i 2

FG 4 j  FG 7 j  FG11j   FGij   SG ij  SG8 j  SG12 j  TG1j  1
9

FG3 j   FGij  SG6 j  1

j  1, 2,..,20 ………...…..[22]

i 7

9

17

21

i 8

i 16

i  20

j  1, 2,..,20 …….[21]

 FGij   FGij   FGij  SG4 j  1

j  1, 2,..,20 …………….[23]

The membership function of energy need fuzzy data can be calculated as follows:
E  787,5E~  712,5(1  E~ )  712,5  75E~

13

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

The constrains, of which right side constants are fuzzy, are written below as in the form of
membership function. All other fuzzy data and membership functions are given in the table 3.
22 ~

18 ~
24 ~
 Ei * FGij   Ei * SGij   Ei * TGij  712,5  75E~

j  1, 2,....,20 ………..……[8]

22 ~
 Pi
i 1

18 ~
24 ~
* FGij   Pi * SGij   Pi * TGij  21,57  2,27~P

j  1, 2,....,20 …..………....[9]

22 ~
 Ti
i 1

18 ~
24 ~
* FGij   Ti * SGij   Ti * TGij  0,36  0,04T~

j  1, 2,....,20 ..…………..[10]

i 1

i 1

i 1

i 1

i 1

i 1

i 1

22 ~

18 ~
24 ~
~
 CVi * FGij   CVi * SGij   CVi * TGij  32,3  3,4C
V

i 1

i 1

i 1

j  1, 2,....,20 …………..[11]

4.CONCLUSIONS
According to suggested model; menus that are obtained for the 3 different membership
functions (0, 0,5 ve 1) are given at the table 4. Menus that are not possible to apply are shown
in the column of µ=0 and certain applicable menus are shown at the µ=1. 20 days’ menu
costs of each person for these membership degrees are found respectively as 27,34 TL, 28,34
TL and 32,38 TL. In other words, the costs of menus for each person can vary between 27,34
TL - 32,38 TL
As it is clearly seen in this study, menu planning is such a complicated process that many
different elements should be taken into consideration during the period. It is quite hard in a
handmade menu planning to take all necessary conditions into consideration to obtain
minimum costs. Because of this reason, making a menu planning via mathematical models
not only helps to save time but also helps to eliminate possible mistakes. Additionally
regarding the fuzziness of the data gains a flexibility for models.
REFERENCES
Abdel Kader, M.G. and Dugdale, D. (2001) Evaluating Investment in Advanced
Manufacturing Technology: A Fuzzy Set Theory Approach, British Accounting Review, 33,
455-489.
Anderson, A.M. and, Earle, M.D. (1983) Diet Planning in the Third World by Linear and
Goal Programming, Journal of Reseach Society, 34, 9-16.
Atılan, M. (2007) Adana’da Toplu Beslenme Yapılan Bazı Kurumların Menülerinin
Değerlendirilmesi ve Tüketici Görüşlerinin Belirlenmesi, Master’s Thesis, Adana.
Baykal, N. and BEYAN, T. (2004) Bulanık Mantık İlke ve Temelleri, Bıçaklar Publishing,
No: 9, Ankara.
Baysal, A. (2006) Beslenme, Hatipoğlu Publishing, 12. Ed., Ankara.

14

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

Beyhan, Y., and Ciğerim, N. (1995) Toplu Beslenme Sistemlerinde Menü Yönetimi ve
Denetimi, Kök Publishing, Ankara.
Bozdağ, N. and Türe, H. (2007) Bulanık Doğrusal Programlama ve İMKB Üzerine Bir
Uygulama, 8. Congress of Econometrics and Statistics, Malatya, Turkey.
Colavita, C. and D’orsi, R. (1990) Linear Programming and Pediatric Dietetics, British
Journal of Nutrition, 64, 307-317.
Carlsson, C. Korhonen, P. (1986) A Parametric Approach to Fuzzy Linear Programming,
Fuzzy Sets and Systems, 20, 17-30.
Çetin, M. (2006) Teori ve Uygulamada Bölgesel Sürdürülebilir Kalkınma, Cumhuriyet
University Journal of Economics and Administrative Sciences, 7 (1), 1-20.
Çelik, Y. (2006) Sürdürülebilir Kalkınma Kavramı ve Sağlık, Hacettepe Journal of Health
Administration, 9 (1), 19-37.
Kaypak, Ş. (2011) Küreselleşme Sürecinde Sürdürülebilir Bir Kalkınma İçin Sürdürülebilir
Bir Çevre, KMU Journal of Social and Economic Research, 13 (20), 19-33.
Ediz, A. and Yağdıran, Y. (2009) Hedef Programlama Tekniği ile Menü Planlaması, Gazi
Üniversitesi The Journal of Faculty of Economics and Administrative Sciences, 11
(1), 45-74.
Mamat, M., Rokhayati, Y., Noor, M. M. and Mohd İ. (2011) Optimizing Human Diet
Problem with Fuzzy Price Using Fuzzy Linear Programming Approach, Pakistan
Journal of Nutrition, 10 (6), 594-598.
Şenol, S. (2011) Menü Planlama Sorununa Karma Tamsayılı Programlama Modeli İle
Çözüm Önerisi, Master’s Thesis, Isparta.
Sklan, D. and Dariel, I. (1993) Diet Planning for Humans Using Mixed-Integer Linear
Programming, British Journal of Nutrition, 70, 27-35.
Soden, P.M. and Fletcer, L.R. (1992) Modifying Diets to Satisfy Nutritional Requirements
Using Linear Programming, British Journal of Nutrition, 68, 565-572.
Kılınç, E. (2007) Diyet Problemlerinin Optimizasyonu ve Bir Uygulama, Master’s Thesis,
Isparta.
TÜİK, (2011) Newsletter, http://www.tuik.gov.tr/PreHaberBultenleri.do?id=8570.
Werners, B. (1987) An Interactive Fuzzy Programming System, Fuzzy Sets and Systems, 23,
131-147.
Zadeh, L.A. (1965) Fuzzy Sets, Information and Control, 8, 338-353.
Zimmermann, H.J. (1983) Fuzzy Mathematical Programming, Computers and Operations
Research, 10 (4), 291-298
15

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

Note 1: Numbers that are in the square brackets indicate constraint numbers in model.

16

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

Table 2. The Information of the Meals
Total Energy and Nutrient Values
of a Portion Meals

With Meat

Vegetable Dishes

The First Group Meals

Meat Dishes

Meal
Kods

The Name of Meals

The Cost of
Energy Protein Thiamin Vitamin The Meals
(kcal)
(gr)
(mg)
C (mg)
(TL)
Ei

Pi

Ti

Ni

FG1

Cold Cuts

339

19,6

0,1

12,4

1,227

FG2

Roast Meat

348

18,4

0,1

12,3

1,191

FG3

Boiled Veal

369,4

36,6

0,1

8,8

1,209

FG4

Kadınbudu Meatballs

417

16,2

0,2

15,2

0,985

FG5

Oven Meatballs

309

15,4

0,2

15,2

0,905

FG6

İzmir Meatballs

343

14,6

0,2

14,1

0,877

FG7

Rosted Lamb

416,6

43

0,2

0,3

1,708

FG8

Schnitzel Chicken

534,2

54,7

0,3

18,1

1,047

FG9

Grilled Chicken

337,6

47,8

0,2

18,4

0,978

FG10

Boiled Chicken

259

26,2

0,2

14,6

0,646

FG11

Chicken with soy sauce

315,1

39,9

0,1

0,1

0,795

FG12

Whitefish

489,6

52,3

0,3

33

0,916

FG13

Cabbage stew

190

10,3

0,1

65,8

0,662

FG14

Cauliflower

187

11,3

0,2

121,3

0,799

FG15

Spinach and rice with
minced meat

276

15,6

0,2

77,8

0,853

FG16

Mixed vegetable pot

221

10,1

0,1

31,7

0,700

FG17

Green beans with meat

222

11,1

0,2

41,3

0,774

FG18

Stuffed Eggplant

270

9,6

0,1

22,8

0,845

FG19

Rice and minced meat
stuffed bell peppers

226

11,2

0,1

84,2

0,908

FG20

Stuffed courgettes

247

11,1

0,1

21,7

0,862

FG21

Dry bean with meat

336

19,1

0,3

3,3

0,518

17

�With Olive Oil

The Second Group Meals

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

FG22

Chick peas with meat

350

17,4

0,3

2,3

0,516

SG1

Imambayıldı

194

2,1

0,1

18,3

0,293

SG2

Stuffed green peppers
with olive oil

265

4,6

0,1

88,8

0,444

SG3

Stuffed grape leaves with
olive oil

268

4,7

0,1

42,1

0,327

SG4

Green runner beans

177

3,5

0,1

38

0,267

SG5

Horse bean with olive oil

266

11,3

0,5

46,5

0,362

SG6 Kidney bean with olive oil

328

13,3

0,2

10

0,274

Table 2. The Information of the Meals (Cont.)
Total Energy and Nutrient Values of
a Portion Meals

The
Thir
d
Gro
up
Dess
Meal
erts
s

Pies

Pilafs and Pastas

Soaps

Meal
Kods

The Cost of
The Name of Meals Energy Protein Thiamin Vitamin The Meals
(kcal)
(gr)
(mg)
C (mg)
(TL)
Ei

Pi

Ti

Ni

SG7

Tomato

161

3,4

0,1

1,3

0,094

SG8

Yoghurt

115

3,3

0,1

0,3

0,092

SG9

Lentil

183

7,9

0,2

2,2

0,063

SG10

Noodle

115

1,8

0

0,3

0,066

SG11

Flour

184

2,8

0,1

0

0,043

SG12

Rice Pilaf

336

4,7

0,1

0

0,129

SG13

Bulgur Pilaf

291

6,5

0,2

10,5

0,068

SG14

Macaroni timbale

505

19,4

0,2

0,4

0,433

SG15

Macaroni with cheese

354

10,7

0,1

0

0,208

SG16

Rolled pastry

421

15

0,3

3,3

0,610

SG17

Water heurek

293,1

9,4

0,1

6,7

0,237

SG18

Spinach Pie

368,5

11,1

0,1

22,4

0,326

TG1

Rice Pudding

347

8,4

0,1

2,2

0,372

18

�Others

Fruits

Salads

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

TG2

Syrup-soaked pastry

512,3

4,3

0

0,2

0,218

TG3

Sekerpare

482,6

5

0

0,2

0,215

TG4

Revani

367,6

4,8

0

0,2

0,208

TG5

Mixed Salad

123

1,3

0,1

28,8

0,278

TG6

Curly Salad

84

0,9

0,1

10,6

0,241

TG7

Shepherd Salad

113

1,8

0,1

52,2

0,301

TG8

Potato Salad

184,9

3,8

0,2

63,5

0,261

TG9

Apple

101

0,5

0

10

0,281

TG10

Apricot

72

0,9

0

11

0,270

TG11

Banana

153,3

1,8

0

13,8

0,529

TG12

Cherry

63

1,6

0

14

0,413

TG13

Grape

108

0,9

0,1

4

0,300

TG14

Melon

77

1,4

0,1

80

0,233

TG15

Watermelon

73

1,3

0,1

15

0,175

TG16

Orange

69

1,1

0,1

83

0,186

TG17

Mandarin

70

1

0,1

46

0,238

TG18

Pearch

83

1,1

0

39

0,247

TG19

Pears

113

0,5

0

10

0,248

TG20

Strawberry

57

1,1

0

100

0,180

TG21

Plum

59

0,7

0

9

0,188

TG22

Buttermilk

45

2,6

0

0

0,250

TG23

Yogurt

194

10,56

0,2

3

0,330

TG24

Pickle

10

0,6

0

0,7

0,480

Source: Şenol 2011, 74-125.

19

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

Table 3. Fuzzy Data and Membership Functions
M.
Kods

Energy (kcal)
EL

EU

M.Ship Funct.

Protein (gr)
PL

PU

M.Ship Funct.

Thiamin (mg)
TL

TU

M.Ship Funct.

Vitamin C (mg)
CVL

CVU

The Cost of The Meals

M.Ship Funct. CL

CU M.Ship Funct.

FG1

322,05 355,95

355,95-33,9µ 18,62 20,58

20,58-1,96µ

0,10

0,11

0,11-0,01µ

11,78

13,02

13,02-1,24µ 1,17 1,29

1,17+0,12µ

FG2

330,60 365,40

365,4-34,8µ 17,48 19,32

19,32-1,84µ

0,10

0,11

0,11-0,01µ

11,69

12,92

12,915-1,23µ 1,13 1,25

1,13+0,12µ

FG3

350,93 387,87 387,87-36,94µ 34,77 38,43

38,43-3,66µ

0,10

0,11

0,11-0,01µ

8,36

9,24

9,24-0,88µ 1,15 1,27

1,15+0,12µ

FG4

396,15 437,85

437,85-41,7µ 15,39 17,01

17,01-1,62µ

0,19

0,21

0,21-0,02µ

14,44

15,96

15,96-1,52µ 0,94 1,03

0,94+0,1µ

FG5

293,55 324,45

324,45-30,9µ 14,63 16,17

16,17-1,54µ

0,19

0,21

0,21-0,02µ

14,44

15,96

15,96-1,52µ 0,86 0,95

0,86+0,09µ

FG6

325,85 360,15

360,15-34,3µ 13,87 15,33

15,33-1,46µ

0,19

0,21

0,21-0,02µ

13,40

14,81

14,81-1,41µ 0,83 0,92

0,83+0,09µ

FG7

395,77 437,43 437,43-41,66µ 40,85 45,15

45,15-4,3µ

0,19

0,21

0,21-0,02µ

0,29

0,32

0,312-0,03µ 1,62 1,79

1,62+0,17µ

FG8

507,49 560,91 560,91-53,42µ 51,97 57,44

57,44-5,47µ

0,29

0,32

0,32-0,03µ

17,20

19,01

19,06-1,81µ 0,99

1,1

0,99+0,1µ

FG9

320,72 354,48 354,48-33,76µ 45,41 50,19

50,19-4,78µ

0,19

0,21

0,21-0,02µ

17,48

19,32

19,32-1,84µ 0,93 1,03

0,93+0,1µ

FG10

246,05 271,95

271,95-25,9µ 24,89 27,51

27,51-2,62µ

0,19

0,21

0,21-0,02µ

13,87

15,33

15,33-1,46µ 0,61 0,68

0,61+0,06µ

FG11

299,35 330,86 330,86-31,51µ 37,91 41,90

41,9-3,99µ

0,10

0,11

0,105-0,01µ

0,10

0,11

0,11-0,01µ 0,76 0,83

0,76+0,08µ

FG12

465,12 514,08 514,08-48,96µ 49,69 54,92

54,92-5,23µ

0,29

0,32

0,32-0,03µ

31,35

34,65

34,65-3,3µ 0,87 0,96

0,87+0,09µ

FG13

180,50 199,50

9,79 10,82

10,82-1,03µ

0,10

0,11

0,11-0,01µ

62,51

69,09

0,7

0,63+0,07µ

FG14

177,65 196,35

196,35-18,7µ 10,74 11,87

11,87-1,13µ

0,19

0,21

0,21-0,02µ 115,24 127,37 127,37-12,13µ 0,76 0,84

0,76+0,08µ

FG15

262,20 289,80

289,8-27,6µ 14,82 16,38

16,38-1,56µ

0,19

0,21

0,21-0,02µ

0,81+0,09µ

199,5-19µ

20

73,91

81,69

69,09-6,58µ 0,63

81,69-7,78µ 0,81

0,9

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

9,60 10,61

10,61-1,01µ

0,10

0,11

0,11-0,01µ

30,12

33,29

33,29-3,17µ 0,67 0,74

0,67+0,07µ

233,1-22,2µ 10,55 11,66

11,66-1,11µ

0,19

0,21

0,21-0,02µ

39,24

43,37

43,37-4,13µ 0,74 0,81

0,74+0,08µ

9,12 10,08

10,08-0,96µ

0,10

0,11

0,11-0,01µ

21,66

23,94

23,94-2,28µ

0,8 0,89

0,8+0,08µ

214,70 237,30

237,3-22,6µ 10,64 11,76

11,76-1,12µ

0,10

0,11

0,11-0,01µ

79,99

88,41

88,41-8,42µ 0,86 0,95

0,86+0,09µ

FG20

234,65 259,35

259,35-24,7µ 10,55 11,66

11,655-1,11µ

0,10

0,11

0,11-0,01µ

20,62

22,79

22,79-2,17µ 0,82 0,91

0,82+0,09µ

FG21

319,20 352,80

352,8-33,6µ 18,15 20,06

20,06-1,91µ

0,29

0,32

0,32-0,03µ

3,14

3,47

3,47-0,33µ 0,49 0,54

0,49+0,05µ

FG22

332,50 367,50

367,5-35µ 16,53 18,27

18,27-1,74µ

0,29

0,32

0,32-0,03µ

2,19

2,42

2,42-0,23µ 0,49 0,54

0,49+0,05µ

SG1

184,30 203,70

203,7-19,4µ

2,00

2,21

2,205-0,21µ

0,10

0,11

0,11-0,01µ

17,39

19,22

19,22-1,83µ 0,28 0,31

0,28+0,03µ

SG2

251,75 278,25

278,25-26,5µ

4,37

4,83

4,83-0,46µ

0,10

0,11

0,11-0,01µ

84,36

93,24

93,24-8,88µ 0,42 0,47

0,42+0,04µ

SG3

254,60 281,40

281,4-26,8µ

4,47

4,94

4,94-0,47µ

0,10

0,11

0,11-0,01µ

40,00

44,21

44,21-4,21µ 0,31 0,34

0,31+0,03µ

SG4

168,15 185,85

185,85-17,7µ

3,33

3,68

3,68-0,35µ

0,10

0,11

0,11-0,01µ

36,10

39,90

39,9-3,8µ 0,25 0,28

0,25+0,03µ

SG5

252,70 279,30

279,3-26,6µ 10,74 11,87

11,87-1,13µ

0,48

0,53

0,53-0,05µ

44,18

48,83

48,83-4,65µ 0,34 0,38

0,34+0,04µ

SG6

311,60 344,40

344,4-32,8µ 12,64 13,97

13,97-1,33µ

0,19

0,21

0,21-0,02µ

9,50

10,50

10,5-1µ 0,26 0,29

0,26+0,03µ

SG7

152,95 169,05

169,05-16,1µ

3,23

3,57

3,57-0,34µ

0,10

0,11

0,11-0,01µ

1,24

1,37

1,37-0,13µ 0,09

0,1

0,09+0,01µ

SG8

109,25 120,75

120,75-11,5µ

3,14

3,47

3,47-0,33µ

0,10

0,11

0,11-0,01µ

0,29

0,32

0,32-0,03µ 0,09

0,1

0,09+0,01µ

SG9

173,85 192,15

192,15-18,3µ

7,51

8,30

8,3-0,79µ

0,19

0,21

0,21-0,02µ

2,09

2,31

2,31-0,22µ 0,06 0,07

0,06+0,01µ

SG10

109,25 120,75

120,75-11,5µ

1,71

1,89

1,89-0,18µ

0

0

0

0,29

0,32

0,32-0,03µ 0,06 0,07

0,06+0,01µ

FG16

209,95 232,05

FG17

210,90 233,10

FG18

256,50 283,50

FG19

232,05-22,1µ

283,5-27µ

21

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

Table 3. Fuzzy Data and Membership Functions (Cont.)
M.
Kods

Energy (kcal)
EL

EU

M.Ship Funct.

Protein (gr)
PL

PU

M.Ship Funct.

Thiamin (mg)
TL

TU

Vitamin C (mg)

M.Ship Funct.

CVL

CVU

The Cost of The Meals

M.Ship Funct. CL

CU M.Ship Funct.

SG11

174,80 193,20

193,2-18,4µ

2,66

2,94

2,94-0,28µ

0,10

0,11

0,11-0,01µ

0

0

0 0,04 0,05

0,04+0µ

SG12

319,20 352,80

352,8-33,6µ

4,47

4,94

4,94-0,47µ

0,10

0,11

0,11-0,01µ

0

0

0 0,12 0,14

0,12+0,01µ

SG13

276,45 305,55

305,55-29,1µ

6,18

6,83

6,83-0,65µ

0,19

0,21

0,21-0,02µ

9,98

11,03

11,03-1,05µ 0,06 0,07

0,06+0,01µ

SG14

479,75 530,25

530,25-50,5µ 18,43 20,37

20,37-1,94µ

0,19

0,21

0,21-0,02µ

0,38

0,42

0,42-0,04µ 0,41 0,45

0,41+0,04µ

SG15

336,30 371,70

371,7-35,4µ 10,17 11,24

11,24-1,07µ

0,10

0,11

0,11-0,01µ

0

0

SG16

399,95 442,05

442,05-42,1µ 14,25 15,75

15,75-1,5µ

0,29

0,32

0,32-0,03µ

3,14

SG17

278,45 307,76 307,76-29,31µ

9,87

9,87-0,94µ

0,10

0,11

0,11-0,01µ

SG18

350,08 386,93 386,93-36,85µ 10,55 11,66

11,66-1,11µ

0,10

0,11

TG1

329,65 364,35

364,35-34,7µ

7,98

8,82

8,82-0,84µ

0,10

TG2

486,69 537,92 537,92-51,23µ

4,09

4,52

4,52-0,43µ

TG3

458,47 506,73 506,73-48,26µ

4,75

5,25

TG4

349,22 385,98 385,98-36,76µ

4,56

TG5

116,85 129,15

129,15-12,3µ

88,20

107,35 118,65

TG6
TG7

79,80

0,2 0,22

0,2+0,02µ

3,47

3,47-0,33µ 0,58 0,64

0,58+0,06µ

6,37

7,04

7,04-0,67µ 0,23 0,25

0,23+0,02µ

0,11-0,01µ

21,28

23,52

23,52-2,24µ 0,31 0,34

0,31+0,03µ

0,11

0,11-0,01µ

2,09

2,31

2,31-0,22µ 0,35 0,39

0,35+0,04µ

0

0

0

0,19

0,21

0,21-0,02µ 0,21 0,23

0,21+0,02µ

5,25-0,5µ

0

0

0

0,19

0,21

0,21-0,02µ

0,2 0,23

0,2+0,02µ

5,04

5,04-0,48µ

0

0

0

0,19

0,21

0,21-0,02µ

0,2 0,22

0,2+0,02µ

1,24

1,37

1,365-0,13µ

0,10

0,11

0,11-0,01µ

27,36

30,24

30,24-2,88µ 0,26 0,29

0,26+0,03µ

88,2-8,4µ

0,86

0,95

0,95-0,09µ

0,10

0,11

0,11-0,01µ

10,07

11,13

11,13-1,06µ 0,23 0,25

0,23+0,02µ

118,65-11,3µ

1,71

1,89

1,89-0,18µ

0,10

0,11

0,11-0,01µ

49,59

54,81

54,81-5,22µ 0,29 0,32

0,29+0,03µ

8,93

22

0

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

TG8

3,61

3,99

3,99-0,38µ

0,19

0,21

0,21-0,02µ

60,33

66,68

66,68-6,35µ 0,25 0,27

0,25+0,03µ

106,05-10,1µ

0,48

0,53

0,53-0,05µ

0

0

0

9,5

10,5

10,5-1µ 0,27

0,3

0,27+0,03µ

75,6-7,2µ

0,86

0,95

0,95-0,09µ

0

0

0

10,45

11,55

11,55-1,1µ 0,26 0,28

0,26+0,03µ

145,64 160,97 160,97-15,33µ

1,71

1,89

1,89-0,18µ

0

0

0

13,11

14,49

175,66 194,15 194,15-18,49µ

TG9

95,95 106,05

TG10

68,40

TG11
TG12
TG13

75,60

14,49-1,38µ

0,5 0,56

0,5+0,05µ

66,15

66,15-6,3µ

1,52

1,68

1,68-0,16µ

0

0

0

13,3

14,7

14,7-1,4µ 0,39 0,43

0,39+0,04µ

102,60 113,40

113,4-10,8µ

0,86

0,95

0,95-0,09µ

0,10

0,11

0,11-0,01µ

3,8

4,2

4,2-0,4µ 0,29 0,32

0,29+0,03µ

59,85

TG14

73,15

80,85

80,85-7,7µ

1,33

1,47

1,47-0,14µ 0,095 0,105

0,105-0,01µ

76

84

84-8µ 0,22 0,24

0,22+0,02µ

TG15

69,35

76,65

76,65-7,3µ

1,24

1,37

1,37-0,13µ 0,095 0,105

0,105-0,01µ

14,25

15,75

15,75-1,5µ 0,17 0,18

0,17+0,02µ

TG16

65,55

72,45

72,45-6,9µ

1,05

1,16

1,16-0,11µ 0,095 0,105

0,105-0,01µ

78,85

87,15

87,15-8,3µ 0,18

0,2

0,18+0,02µ

TG17

66,50

73,50

73,5-7µ

0,95

1,05

1,05-0,1µ 0,095 0,105

0,105-0,01µ

43,7

48,3

48,3-4,6µ 0,23 0,25

0,23+0,02µ

TG18

78,85

87,15

87,15-8,3µ

1,05

1,16

1,16-0,11µ

0

0

0-0µ

37,05

40,95

40,95-3,9µ 0,23 0,26

0,23+0,02µ

107,35 118,65

118,65-11,3µ

0,48

0,53

0,53-0,05µ

0

0

0-0µ

9,5

10,5

10,5-1µ 0,24 0,26

0,24+0,02µ

105-10µ 0,17 0,19

0,17+0,02µ

TG19
TG20

54,15

59,85

59,85-5,7µ

1,05

1,16

1,16-0,11µ

0

0

0-0µ

95

105

TG21

56,05

61,95

61,95-5,9µ

0,67

0,74

0,74-0,07µ

0

0

0-0µ

8,55

9,45

TG22

42,75

47,25

47,25-4,5µ

2,47

2,73

2,73-0,26µ

0

0

0-0µ

0

203,7-19,4µ 10,03 11,09

11,09-1,06µ

0,19

0,21

0,21-0,02µ

0,63-0,06µ

0

0

0-0µ

TG23
TG24

184,30 203,70
9,50

10,50

10,5-1µ

0,57

0,63

23

0,2

0,18+0,02µ

0

0 0,24 0,26

0,24+0,03µ

2,85

3,15

3,15-0,3µ 0,31 0,35

0,31+0,03µ

0,67

0,74

9,45-0,9µ 0,18

0,74-0,07µ 0,46

0,5

0,46+0,05µ

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

Table 4. Menus According to Membership Degrees
Day

µ=0

µ=0.5

µ=1

Yoghurt Soap

Lentil Soap

Roast Meat

Cauliflower

Mixed vegetable pot

Horse bean with olive oil

Macaroni with cheese

Bulgur Pilaf

Sekerpare

Apricot

Plum

Lentil Soap

Flour Soap

Yoghurt Soap

Rosted Lamb

Stuffed courgettes

Stuffed Eggplant

Shepherd Salad

Macaroni with cheese

Rolled pastry

Melon

Cherry

Flour Soap

Noodle Soap

Rosted Lamb

Boiled Chicken

Cabbage stew

Bulgur Pilaf

Stuffed grape leaves with
olive oil

Rolled pastry

Potato Salad

Grape

Apricot

Roast Meat

Schnitzel Chicken

Lentil Soap

Horse bean with olive oil

Stuffed green peppers with
olive oil

Dry bean with meat

Revani

Grape

Rice Pilaf

1

2

3

4

Strawberry

5

Soya Soslu Tavuk (Rice
Pilaf G.)

Yoghurt Soap

Soya Soslu Tavuk (Rice
Pilaf G.)

Kidney bean with olive oil

Stuffed Eggplant

Kidney bean with olive oil

Melon

Spinach Pie

Tomato Soap

Mandarin

Orange

Grilled Chicken

Kadınbudu Meatballs

Rice Pilaf

Stuffed grape leaves with
olive oil

Yoghurt Soap
6
Mixed vegetable pot

24

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

Macaroni timbale

Potato Salad

Apple

Flour Soap
Melon

Lentil Soap

Flour Soap

İzmir Meatballs

Cabbage stew

Cauliflower

Green runner beans

Rice Pilaf

Water heurek

Noodle Soap

Plum

Pears

Yogurt

Flour Soap

Lentil Soap

Yoghurt Soap

Green runner beans

İmambayıldı

Boiled Veal

Oven Meatballs

Roast Meat

Bulgur Pilaf

Sekerpare

Watermelon

Mixed Salad

Dry bean with meat

Noodle Soap

Lentil Soap

Bulgur Pilaf

Stuffed grape leaves with
olive oil

Cabbage stew

Sekerpare

Boiled Chicken

Rolled pastry

Yoğurt

Plum

Whitefish

Kadınbudu Meatballs

Tomato Soap

Spinach Pie

Maccaroni with cheese

Spinach and rice with
minced meat

Buttermilk

Mixed Salad

Spinach Pie

7

8

9

10

Watermelon
Table 4. Menus According to Membership Degrees (Cont.)
İzmir Meatballs

Boiled Veal

Flour Soap

Water heurek

Horse bean with olive oil

İmambayıldı

Curly Salad

Revani

Grilled Chicken

11
Rice Pudding

12

25

Noodle Soap

Soya Soslu Tavuk (Rice
Pilaf G.)

Noodle Soap

Schnitzel Chicken

Kidney bean with olive oil

Cauliflower

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

Potato Salad

13

Bulgur Pilaf

Macaroni timbale

Orange

Grape

Stuffed courgettes

Lentil Soap

Schnitzel Chicken

Rolled pastry

Spinach and rice with
minced meat

Stuffed green peppers with
olive oil

Mandarin

Sekerpare

Mandarin

Kadınbudu Meatballs

Flour Soap

Cold cuts

Bulgur Pilaf

Cold cuts

Horse bean with olive oil

Mixed Salad

Spinach Pie

Revani

14
Curly Salad
Lentil Soap

Whitefish

Tomato Soap

Green beans with meat

Rice Pilaf

Chick peas with meat

Syrup-soaked pastry

Apple

Rice Pilaf

15
Pearch

16

Spinach and rice with
minced meat

Tomato Soap

Lentil Soap

Macaroni timbale

Stuffed grape leaves with
olive oil

Oven Meatballs

Pearch

İzmir Meatballs

Water heurek

Syrup-soaked pastry

Shepherd Salad

Cold cuts

Green beans with meat

Flour Soap

İmambayıldı

Macaroni timbale

Mixed vegetable pot

Yoğurt

Buttermilk

Rolled pastry

17
Apple

18

26

Flour Soap

Noodle Soap

Boiled Chicken

Stuffed green peppers with
olive oil

Dry bean with meat

Green runner beans

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

Boiled Veal

Bulgur Pilaf

Bulgur Pilaf

Orange

Strawberry

Pears

Grilled Chicken

Oven Meatballs

Yoghurt Soap

Bulgur Pilaf

Green runner beans

Green beans with meat

Pears

Rice Pudding

Macaroni timbale

19
Apricot
Tomato Soap

Chick peas with meat

Whitefish

Stuffed Eggplant

Rice Pilaf

Maccaroni with cheese

Maccaroni with cheese

Pearch

Curly Salad

20
Watermelon

Awareness-rasing Sustainable Business and Corporate Social Responsibility Among
Small and Medium-sized Enterprises

Huseyin Onlem Ersoz1,Ramazan Kilic2
1Adnan Menderes University, Karacasu Memnune Inci Vocational School, Aydin, Turkey
2Adnan Menderes University, Faculty of Economics and Administrative Sciences, Aydin,
Turkey
E-mails: hoersoz@adu.edu.tr, rkilic@adu.edu.tr

Abstract
Sustainable business and corporate social responsibility (CSR) activities have been raising in
Turkey since 2001 Economic Crisis. Corporate social responsibility (CSR), is an approach
developed with the concept of sustainable development. CSR is a kind of self-regulation
management and organization model. CSR means that a company's business model should
be socially responsible and environmentally sustainable. It refers to responsible corporate
action beyond legal requirements; CSR manifests itself throughout the value chain, in a
company’s treatment of its employees and in its dealings with the relevant stakeholders.
Especially, most large-sized companies in Turkey at least have played some roles on
sustainable development with their projects, activities or reports. Most of them have relations
with the world business environment. That’s why they could find chance and had to use
sustainable strategic management methods to prevent their stakeholders. But many small and
27

�</text>
                  </elementText>
                </elementTextContainer>
              </element>
            </elementContainer>
          </elementSet>
        </elementSetContainer>
      </file>
    </fileContainer>
    <elementSetContainer>
      <elementSet elementSetId="1">
        <name>Dublin Core</name>
        <description>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/.</description>
        <elementContainer>
          <element elementId="79">
            <name>Extent</name>
            <description>The size or duration of the resource.</description>
            <elementTextContainer>
              <elementText elementTextId="18216">
                <text>1095</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="50">
            <name>Title</name>
            <description>A name given to the resource</description>
            <elementTextContainer>
              <elementText elementTextId="18217">
                <text>Menu Planning With Fuzzy 0-1 Integer Programming</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="96">
            <name>Author</name>
            <description>Author</description>
            <elementTextContainer>
              <elementText elementTextId="18218">
                <text>Kenan, Oğuzhan Oruç
Ibrahim, Güngör
Sezgin, Irmak
Semih, Şenol</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="94">
            <name>Abstract</name>
            <description>A summary of the resource.</description>
            <elementTextContainer>
              <elementText elementTextId="18219">
                <text>For the sustainability of development, effective usage of sources and the determination of  their optimal usage levels are very important. Healthiness, as one of the main components of  sustainable development, is under influences of many factors one of which is nutrition, and  the number of people who benefit from public nutrition services are increasing every day.The growth in the number of people necessitates that an effective menu planning must be  done in order to keep the continuity of sustainable public nutrition systems.  In this study, detailed plans of 20 days’ lunch menu lists are prepared for workers who are at  the age of between 19 to 30 years old. Fuzzy 0-1 integer linear programming technique was  used during the planning process with the consideration of data’s fuzziness. Carlsson-  Korhenon approach, which is offered for the situations when all parameters are fuzzy in the  model configuration, is applied.  Keywords: Menu Planning, Nutrition, Fuzzy, 0-1 Linear Programming.</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="40">
            <name>Date</name>
            <description>A point or period of time associated with an event in the lifecycle of the resource</description>
            <elementTextContainer>
              <elementText elementTextId="18220">
                <text>2012-05-31</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="97">
            <name>Keywords</name>
            <description>Keywords.</description>
            <elementTextContainer>
              <elementText elementTextId="18221">
                <text>Conference or Workshop Item
PeerReviewed</text>
              </elementText>
            </elementTextContainer>
          </element>
        </elementContainer>
      </elementSet>
    </elementSetContainer>
    <tagContainer>
      <tag tagId="89">
        <name>H Social Sciences (General),HB Economic Theory,HF Commerce</name>
      </tag>
    </tagContainer>
  </item>
  <item itemId="2255" public="1" featured="0">
    <fileContainer>
      <file fileId="3309">
        <src>https://omeka.ibu.edu.ba/files/original/d69e7fef77014540d59a832dc2fc1424.pdf</src>
        <authentication>8ba2147f93420fa7b9e2747d4569c4e8</authentication>
        <elementSetContainer>
          <elementSet elementSetId="4">
            <name>PDF Text</name>
            <description/>
            <elementContainer>
              <element elementId="52">
                <name>Text</name>
                <description/>
                <elementTextContainer>
                  <elementText elementTextId="18229">
                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Report on : Students expenditure and the economic recession
Kerim Hadziabdic
Inetnatinal Burch University Sarajevo, Bosnia and Herzegovina
Abstract
All subjects were selected from International Islamic University Malaysia (IIUM),
data was collected using questionnaire which is attached to the research paper. There are two
types of data which is local student’s data and foreign student’s data. The findings from
research are representing that foreign students as well as local students are affected by current
economic recession.
1.INTRODUCTION
THE ECONOMIC recession which had taken place on 2008-2009 had a global implication
all around the world. Like any other economic recessions before, it had been triggered by a
widespread contraction succeeding an economic bubble. As for the case of 2008-2009, the
bubble that blew before the event was the increasing number of subprime mortgages and
lending of individuals due to low interests. It had mainly originated from the United States,
and when it had a dire critical economic meltdown, no other country in the world could
escape the repercussions. Contingency ripple took place and country as far as Malaysia too
were well effected by the economic recession.
An economic recession is a phenomena of which it effects almost any if not every aspect of
individuals who rely on money and the common market. Thus students, like any other
individuals are part of this economic equation and are subject to impact to any economic
circumstances. Malaysia has over 900,000 students currently enrolled in public and private
higher education institutions (Ministry of Higher Education, 2009). This number includes
foreign students who had become part and element of the Malaysian financial market. Both
students wether local or foreign are well included in economic activities, either by saving
money in banks, selling or buying things, or spending on services provided by the higher
institutions. The great number of university students thus cannot be easily overlooked in the
implications of the economic recession. The economic crisis has had an impact on their
family’s finances and many have felt an effect on their own financial lives. The crisis also
ultimately affected students’ confidence, behavior, trust in financial institutions and overall
well-being.
2.SELECTION OF PROBLEM
The economic recession may had happened almost two years ago, but no one could
deny the economic repercussions still lingers today. Students engaged in many economic
activities on a daily basis. Many like foreign students that recite at IIUM deal with money
transactions that involve external as well local curacies. The global economic crisis 20082010 influences these transactions in many ways. Whilst Malaysians claim they were not
badly affected by global economic crisis which originates mainly in US and Europe none the
less on a longer time scale it would have altered the economic behavior of locals. The issue
299

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

here is how economic recession indirectly have an impact on the students pockets beat it the
local students or foreign students of IIUM. Both types of students leave in a quiet similar and
controlled environment and even consume common life style. What should differ on these
students is their source of savings or money gotten of their parents whom would be more
directly affected by the economic recession. Thus, the study aims to look into aspects of
expenditure on a much localised scenario. It would be interesting to note how this particular
phenomenon would have direct or indirect implication on student’s expenditure of various
backgrounds.
2.1.Objective of study
This paper tries to examine the two main components which are the type of student of IIUM
and the level of changes on their expenditure habits after the global economic recession.
These students which are between ages 18 to 30 are at their beginning of financial maturity
and independence. Many of which decide their own economic decisions. However they still
rely on a given source of income weather it is from their parents, scholarships or any other
forms of financial assistance. By identifying the students of these various backgrounds it is
possible for us to analyse the indirect impact of current economic recession on the students,
furthermore they are also the factor of foreign and local students of IIUM who may act
differently on the level of economic implications they meet with. This study also hopes to
identify whether the economic behavior of students on the account of their expenditure are
influenced by where they are from (foreign or local) in the event of an economic recession.
The findings of this research would help in many ways of decision making of related
authorities such as the university, or even at a personal financial management on a similar
economic circumstances.
2.2.Research Questions
Are student’s spending habits effected by an economic recession?
Which type of student is more responsive towards the change in an economic recession, the
locals or foreign?
3.Literature Review
Malaysia had its bumpy road in facing the uncertainties of modern global economy.
Global economic crisis of recession, inflation, bubble burst, and oil crisis are the examples of
problem faced by Malaysia and without exception, most countries in the world. The global
economic recession of 2008-2009 like any others before had effected considerably on all
aspects of life of the public. What had actually caught my attention is that how many had
undermined the role of young adults , typically students had anything at all to do with such
global economic crisis. Many argue that students; whom may still heavily rely on parents or
government in funding them, are best unaffected by the greater economic phenomenon.
Students simply don't care, since they do not work or earn for money and oblivious to the
hardship of their parents. Of course, these are generalization and a well attained myth of
ungrateful sons and daughters who would plunder the money of their parents if not the tax
payers money. The truth is that students are at a great stage of transitional period to financial
300

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

and psychological maturity. They’ve begin to deal problems and issues identical to those
faced by working adults and had become a more responsible individual part of a greater
society. Issues of monetary crisis that may had happened on a greater international and state
level definitely trickles down to the general public and to students with no exception.
Malaysia has over 900,000 students currently enrolled to both private and public
universities (a good 3% of the population of Malaysia as of 2010) and a number that much
could not escape any of the country’s economic equation. The well known by-product of any
economic recession is the increasing number of unemployment as well as prices of goods,
followed by the mass withdrawal from ordinary expenditure. Replicating this at the very
micro level, a student has as much to worry about it than any other regular working adult.
The scarcity of jobs offered by the market and the constant struggle of fresh graduates with
existing unemployed workforce had become a nightmare of students who yearns for a sense
of approval from the society and parents. While enrollment was related directly to salaries
and employment opportunities for college graduates, it was related inversely to wage and
employment opportunities for non college graduates (Freeman 1975; Handa and Skolnik
1975; and Mattila 1982).
Whilst many studies focuses on the financial troubles faced by students who intends
to pursue their studies ( i.e unaffordable tuition fees ) and prospect of working after
graduating, little attention had been laid on financial difficulties faced when they are still
enroled to a particular university. A review of university choice studies examined the
differences changes in student responses to five key components of university cost: tuition,
room and board(hostels), travel, cost of foregone earnings, and financial aid ( Leslie and
Brinkman 1987, pp 195-197 ). These variables are the focus of a students financial planning,
and come what may an economic recession or financial abysmal that may had befallen them,
this issues still holds a primary importance.
However, on an account of an economic recession may well effect how students
handle their money, on a fixed cost ( i.e. books, transport, food ) or for leisures. An
assessment done by National Institute of Endowment for Financial education on how a
recession impact cripples student’s finances, they've concluded that 93% of students have felt
and effect on their own financial lives. The crisis also ultimately affected student’s
confidence, behaviour, trust in financial institutions and overall well being. This data stems
from the landmark study Arizona Pathways to Life Success in University Students (APLUS),
funded by the National Endowment for Financial Education. At the height of the economic
crisis (February 2009 to April 2009), researchers at the University of Arizona completed
Wave 1.5 of a longitudinal study of how young adults develop financial attitudes and
behaviors.*
In addition to that, this study stresses on how the economic recession of 2008-2009
would have direct or indirect implication on student’s expenditure and it would have to be
addressing to students enrolled to local Malaysian university. IIUM fits in this category and
boasts to have almost 13,000 students studying there. By implicating the idea of students
difficulties in their finances (which is more or less covered under their expenditure
behaviour) I hope to define not just how a student’s pocket can relate to an economic
301

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

recession but also on what are the common patterns that drive a typical students expenditure
on day to day basis. By principle, a student will face either shortage of financial funds from
their parents (as parents too had to reshuffle their expenditure planning due to an economic
recession ) or the scarcity of financial aids from the government ( loans, endowments
PTPTNs). This will deliberately alter their lifestyle and expenditure (ie, going less outings,
and reside on cheap hostel food). I have also noticed that under the administration of Prime
Minister Najib Tun Razak, much emphasis had been focused on students financial aids and
welfare. According to his speech in introducing the supplementary supply (2009) bill, he
mentions that the Government is willing to provide various subsidies, incentives and
assistance for fuel consumption, food security, scholarships and educational assistance as
well as social welfare programs. The allocation for subsidies and other assistance in 2008
totaled RM 34.1 billion or 22% of total operating expenditure and RM6 billion is accounted
for helping students (Najib, 2009; Supplementary Supply (2009) Bill ).
Finally, the study sets to look at the differences of expenditure behaviour that exists
between local and foreign students on similar economic condition. IIUM is well known to
have a great number of foreign students which stays for the average period of 3 - 5 years to
complete a course. Given the long tenure of these students in Malaysia, foreign students may
endure similar economic activities just as the locals do. However, there are many more
variables that may influence their behaviour of spending, for which this study is trying to
analyse. In comparison to the local students, a foreign student is expected to be more
responsive to an economic recession. Thus , I am determined to have a full study of
behaviour of the students expenditure on a given economic climate, namely due to the
economic recession of 2008-2009 and discuss how local and foreign students cope up with it.
THEORETICAL FRAMEWORK

-

Change in
currency 40,00
rates

10,0
Decrease of
Economic0
expenditure
Crisis
20,
00

Increase
price of
goods

Parents 200
decrease 2
expenditure
50,0
on
20,
0
00

Increase in
savings
Foreign
students

Local
students

DI
TXV
10
,0 Decrease in
Spending less
time on outings
0 students
income

0,
00

DI
TİV

Reluctance of
using credit
services

(EXPENDITUR
E)
Area of interest
This study’s theoretical framework is inspired in replicating the research done by
Fig. 1.1 - A model of Students expenditure and the economic
University of Arizona
completing a longitudinal study of how young adults develop financial
recession
302

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

attitudes and behaviors. However, due to limited sources and time frame given this study
seeks to carry a vertical cross-section of a given number of students of IIUM in a single
survey.
It is, perhaps, easier to understand the nature and function of a theoretical framework if it
is viewed as the answer to two basic questions:
1. What is the problem?


Why is this study’s approach a feasible solution?
Starting with the sample, it should be noted that this study is conducted on a short

semester period, and that the number of students enrolled for the semester is considerably
much lower than of a normal long semester. Nonetheless, this study aims to produce a set of
sample of students replicable to the population of students in IIUM.
This study assumes that there shall be no expenditure differences between male and
female students on a given economic circumstances, although these numbers should be well
noted. In addition to that, variables such as student’s ethnicity, home of residence, and their
GPAs are well accounted for analyzation. The data collection method preferred in the study is
survey questionnaire, which respondents can complete in less then 10 minutes about their
family financial environment, attitudes and behaviour on the recent economic crisis and etc.
Figure 1.1 demonstrates how variables should relate to one another, forming the proposed
research question;
Would students spend less following an economic crisis, if so are foreign students more
responsive in such circumstances?
Taking the economic crisis of 2008-2009 as a starting point, it led to several foreseeable
effect, namely decrease of expenditure in the public and the increase price of goods. As stated
earlier, the sample is taken from within the student population of IIUM; the university is thus
a controlled environment for which all students reside. All students are assumed to be
financially dependent on their parents, at least on the term of student’s monthly additional
income.
Decrease in students income should indicate the following effect of parents decreasing the
amount spent on their university enrolled child. I am therefore to generalize the spending
habits of students narrowing them down to increase of savings, spending less time on outings,
and or reluctance of using credit services all of which signifies student’s expenditure. Note
303

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

also there is an added variable to foreign students, for which involves in transnational
financial transaction and should be responsive to the change of currency rates of their country
to Malaysia.

Data collection

A questionnaire survey of 30 respondents had been carried out through a non
probability sampling method. They had been approached at random, however, the research is
conducted under quota sampling method. In order to match the real representation of the
student population of IIUM, the study restricts the number of foreign students respondents to
7 out of 30 bringing the percentage to 23,3 % of the whole sample. This number reflect
closely to the ratio of foreign student to local students in IIUM. Sample questionnaire is
attached to Appendix.

304

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

Data analysis
Data analysis of respondents identity

Figure 1.5 Student’s monthly
income

We can see that in figure 1.5, most students
receive in an average monthly income of Rm300
to Rm600. However, for the top range of students
monthly income of Rm700 and above is received
by all foreign students. This importantly signifies
that foreign students needs more money than local
students.

Figure 1.6 Occupation of Guardian

It is important to also note the minimal
background of students by knowing how their
guardian is employed and financing them. 12
students out of 30 answered that their guardians
are in private sector followed by 11 whom are self
employed. This data signifies that average of
students comes from a middle income families.

Figure 1.7 Campus status

As shown on figure 1.7, we can see that it
correlates with figure 1.5, of students monthly
income. The major 83% of students whom stays
in-campus has the average income of 300-600rm.
Many can rely on this minimal income because
lifestyle is considerably cheaper by living in
campus.

Accommodation

305

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

Gathering the data, we could see on figure 1.2, that the respondents consists of more female
than male. As stated earlier, there shall be no distinctions between the expenditure habit of
male or female.

In figure 1.3, the ratio is maintained to reflect the original student population of IIUM.

The significance of year of intake tell us that there are more senior students compared to
juniors. The fact is senior students would have much more financial awareness and
experiences in managing their monthly income.

Figure 1.2 Gender

306

Figure 1.3 Nationality

Figure 1.4 Year of intake

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

Figure 1.8 Social outings

However, it is interesting to note that despite most
having only up to 600rm to spend on monthly basis,
still there are many students (11 of them ) who
enjoys a good social outings for 2 to 4 times a
week. It just shows that , come what may,
economic recession or not, socializing is still the
main primary importance in a student’s life.

Figure 1.9 Use of credit/debit card

Most of the students does not use or own a credit or
debit card. This number represents the number of
local students whom rely mostly on cash based
transactions

whilst

the rest

(mostly foreign

students) are dealing with credit/debit cards.

Figure 2.0 Savings

A lot of students find it unimportant to save if they
have just enough cash for the monthly expenditure.
However, there are students who would reserve not
more than 25% of their monthly income for
savings. If you could relate to figure 2.3 of students
interest in part time employment, it goes to say that
many are interested to have a minimal saving whilst
increasing their monthly income.

307

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

Figure 2.1 Students perception towards price of goods
Figure 2.1 explains that the economic recession has
a greater and prolonged effect. Up to 93% of
students believe that prices of goods are getting
much expensive than before.

Figure 2.2 Financial Assistance
According to the result of the survey, up to 60% of
the sample still greatly rely on their parents for
financial assistance and difficulties. They feel more
comfortable by gaining monetary help from their
parents because it has been their primary source of
income anyway. This data is followed by an equal
distribution of respondents who would rely on
friends or simply wait till difficulties is overcome.

Figure 2.3 Part time employment

As said earlier, figure 2.3 in students perception of
having a part time job whilst studying shows the
correlation of student’s need for extra money to
cope up with the rise of price of goods. More over,
many students also believe that they are mature
enough to offer services to the job market, a
determination to be part of the bigger society. 80 %
of the students also consider that part time job
would not effect their studies immensely.

308

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

The questionnaire also provides an open ended question, enquiring on how students feel the
economic recession of 2008-2009 had effect on them. This question tries to sum up the
overall feeling and perception towards such economic scenario where prices goes up and how
it influences their monthly expenditure. Up to 70% of respondents have the impression that
the economic recession has little or no impact on their lifestyle or expenditure. This leaves us
the rest 30 % (which represents 9 respondents ) all of whom said that they are uneasy with the
increase price of goods and thought that they ought to get more money to handle difficult
situations up. 6 out of this 9 respondents are foreign students and 3 are locals. This shows that
foreign students are more conscious to the changes brought by an economic recession and is
determine to deal with it.
The survey continues by providing questions specifically asked on foreign students. These
questions are designed to ask about activities done by foreign students in handling their
finances.
Foreign students response

309

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

Students’s response :
“ Prices are much expensive and more
pocket money is needed to maintain such
current lifestyle.”
Effected by
economic recession
“ Things are getting pricier than
usual, there is less to spend. “

Figure 2.4 Frequency in dealing with international banking transaction
Almost all of foreign students deal with
international banking transaction. 43% of who
deals on a monthly basis. International students
whom still rely on their parents who are back
home get their money through international
banking. International banking is one of the
sector most vunerable to economic crisis.
Following this question, many students said that
at the recent currency exchange, they had less to
spend.

310

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

Discussion
Consistent with the research question proposed, the questionnaire conducted had
intended to get as much data to prove of disapprove the argument. Reviewing back to the
question, are students spending habits effected by an economic recession, it is undeniable that
students do admit changes. Although, infinite factors does influence in giving such result, I
am certain that economic crisis plays a big and important role in effecting the financial lives
of not just working adults but students as well. There is indeed a link between students
financial management and the bigger economic picture, and we can well discard the myth
that students are unaware of economic crises.
From that the study gathered how students generally feel about the economic recession.
Most of the local students receive in average of Rm300-Rm600 monthly and comes from a
middle income family status. I believe them having to live on around Rm 400 a month would
be modest at best. Yet, with prices of good increasing either through gradual inflation or
economic crisis, they managed to maintain with that amount and many feel that they are least
effected by the economic crisis, though they acknowledge their ability to spend less.
On the other hand, the foreign students has been projected to have more for their monthly
income, some up to more than Rm 1500. Comparing this to the local, it shows that the locals
have greater confidence in their financial securities than that of the foreign students. Local
students are surrounded by elements familiar to them, whilst foreign student having to adapt
to a foreign culture, may think they need more to spend.
Take for example, Ali ; a Palestinian student may not be easily accustomed to normal
day to day food like rice and sambal belacan, a cheap source of food for local student. He
may have to reside if not occasionally to an Arab food restaurant which is considerably more
expensive. This is a classic example involving just food, though many other factors may lead
as to why foreign students need more monthly income. ( communication, room, etc.)
Ironically, where both foreign and local students differ in their monthly income, they still
think social outing should not be missed. Most of the respondents continues to go for social
outings despite the increase prices of goods. This agrees with such longitudinal study carried
out by a research that confirms how university students spend time, 16 hours for which is
dedicated to socializing (National Survey of Student Engagement, 2006; Nonis, Philhours &amp;
Hudson, 2006).
311

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

Coming to the second proposed research question, the result shows that there are no clear
sign that economic recession is a direct factor to their expenditure behaviour. The study can
only conclude that due to foreign students avid involvement in international banking
transaction compared to local student, they are more responsive and vulnerable to global
economic consequences. Foreign students also replied that due to the recent currency
exchange rate, many felt that they have less to spend. This somewhat is aligned to the
hypotheses proposed by this study that ultimately, foreign students are relatively more
responsive to global economic conditions than local students.
Conclusion
In conclusion we can say that student’s expenditure is affected by current economic
recession. Foreign students are affected more because of currency rates, increase of prices of
basic needs, and it always more expensive to study abroad than to study at home.
There are several limitations in this study. The findings, among other things may not
represent wider population of both types of students due to limited number of respondents.
However, the number of respondents in this study still provides the insight indeed. As
findings presented, foreign students have more expenditures compare to local student and
their pockets are affected by economic recession.
Bibliography
Freeman, Richard B. 1971. The Market for College. Trained Manpower. Cambridge, Mass.:
Harvard

University Press.

Handa, M.L , and Skolnik, M.L 1975 “Unemployment, Expected Returns, and the Demand
for

University Education in Ontario: Some Empirical Results.” Higher Education 4: 27,

43.
Hilgert, M. A., Hogarth, J. M., &amp; Beverly, S. G. (2003). Household Financial Management:
The

Connection Between Knowledge and Behavior. Federal Reserve Bulletin July: 309-

322.
Leslie, Larry I., and Brinkman, Paul T. 1987. “Student Price Response in Higher Education:
The

Student Demand Studies.” Journal of Higher Education 58(2): 181, 204.

Najib Tun Abdul Razak, 2009. “In Introducing the Supplementary Supply (2009) Bill 2009.”
Ministry
312

of Finance. 12.

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

Nonis, S. A., Philhours, M. J. &amp; Hudson, G. I. (2006). Where Does the Time Go? A Diary
Approach to

Business and Marketing Students’ Time Use. Journal of Marketing Education,

28, 121-134.
Mattila, J. Peter, 1982 “Determinants of Male School Enrollments: A time Series Analysis.”
Review of

Economics and Statistics. 64, 242, 51.

Ministry of Higher Education, 2009.( http://www.mohe.gov.my/educationmsia/index.php?
article=mohe )

Green Economy-Green Sustainability-Green Ethics
Nilgün Dolmaci, Nurdan Kuşat
Süleyman Demirel Üniversity, Isparta, Turkey
E-mails: nilgundolmaci@sdu.edu.tr, nurdankusat@sdu.edu.tr
Abstract
Although the concept ‘environment’ is perceived as a space where people live, it narrates an
ecosystem in the broad sense. Ecosystem is described as a raw material store which fulfills
the physical and biological needs. However, considering that the resources are scarce and the
needs of people are limitless, it is clearly seen that the environmental resources are scarce as
well. Within this content, efficient use of environmental resources has a great importance for
sustainable development.
Green economy approach brings a new perspective for the sustainable development. Since
the degeneration in economic, cultural and historical environment led to development
problems, green economy is an important instrument achieving sustainability in
environmental values.
In this study, green economy and green sustainability is handled from the point of decreasing
the damage that environment and ecosystem are exposed. When it comes to solve the paradox
between economic development and environment, the study touches on the green ethics
perception which can be defined as getting and adopting the information, attitude and
behavior that will preserve the living space and living quality of human beings both
individually and globally.
Keywords: Green Economy, Sustainable Development, Green Sustainability, Green Ethics
1. INTRODUCTION
The words ‘green’ and ‘sustainability’ are usually used together. While the word ‘green’
represents the environment, ‘sustainability’ refers to convection of current resources to the
next generation without any loss. Sustainable development, which is one of the most popular
313

�</text>
                  </elementText>
                </elementTextContainer>
              </element>
            </elementContainer>
          </elementSet>
        </elementSetContainer>
      </file>
    </fileContainer>
    <elementSetContainer>
      <elementSet elementSetId="1">
        <name>Dublin Core</name>
        <description>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/.</description>
        <elementContainer>
          <element elementId="79">
            <name>Extent</name>
            <description>The size or duration of the resource.</description>
            <elementTextContainer>
              <elementText elementTextId="18223">
                <text>1338</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="50">
            <name>Title</name>
            <description>A name given to the resource</description>
            <elementTextContainer>
              <elementText elementTextId="18224">
                <text>Report on : Students expenditure and the economic recession</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="96">
            <name>Author</name>
            <description>Author</description>
            <elementTextContainer>
              <elementText elementTextId="18225">
                <text>Kerim , Hadziabdic</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="94">
            <name>Abstract</name>
            <description>A summary of the resource.</description>
            <elementTextContainer>
              <elementText elementTextId="18226">
                <text>All subjects were selected from International Islamic University Malaysia (IIUM),  data was collected using questionnaire which is attached to the research paper. There are two  types of data which is local student’s data and foreign student’s data. The findings from  research are representing that foreign students as well as local students are affected by current  economic recession.</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="40">
            <name>Date</name>
            <description>A point or period of time associated with an event in the lifecycle of the resource</description>
            <elementTextContainer>
              <elementText elementTextId="18227">
                <text>2012-05-31</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="97">
            <name>Keywords</name>
            <description>Keywords.</description>
            <elementTextContainer>
              <elementText elementTextId="18228">
                <text>Conference or Workshop Item
PeerReviewed</text>
              </elementText>
            </elementTextContainer>
          </element>
        </elementContainer>
      </elementSet>
    </elementSetContainer>
    <tagContainer>
      <tag tagId="81">
        <name>H Social Sciences (General),HB Economic Theory,HG Finance,HJ Public Finance</name>
      </tag>
    </tagContainer>
  </item>
  <item itemId="2256" public="1" featured="0">
    <fileContainer>
      <file fileId="3310">
        <src>https://omeka.ibu.edu.ba/files/original/420badc84095e83d23957322ebbf4162.pdf</src>
        <authentication>f0ddc75bfa35c7a190eeb4c650e4eccf</authentication>
        <elementSetContainer>
          <elementSet elementSetId="4">
            <name>PDF Text</name>
            <description/>
            <elementContainer>
              <element elementId="52">
                <name>Text</name>
                <description/>
                <elementTextContainer>
                  <elementText elementTextId="18236">
                    <text>Zhu, Jiang, FeiXiong, DongzhenPiao, Yun Liu, Ying Zhang (2011). “Statistically Modeling
the Effectiveness of Disaster Information in Social Media”, 2011 IEEE Global Humanitarian
Technology Conference, s. 431-436.

Does predefined erp implementation methodology work for public companies in
transitioning country?
Classification of EEG signals for epileptic seizure prediction using ANN
JasminKevric, AbdulhamitSubasi
International Burch University, Faculty of Engineering and Information Technologies,
FrancuskeRevolucije bb, Ilidža, Sarajevo, 71210, Bosnia and Herzegovina.
E-mails:jkevric@ibu.edu.ba, asubasi@ibu.edu.ba
Abstract
In this paper, we developed a model for classification of EEG signals. The aim of the study is
to determine whether this model can be used for epileptic seizure prediction if “pre-ictal”
stages were successfully detected. We analyzed long-term Freiburg EEG data. Each of 21
patients contains datasets called “ictal” (seizure) and “inter-ictal” (seizure-free). We extracted
4096-samples (or 16 seconds) long segments from both datasets of each patient. These
segments were decomposed into time-frequency representations using Discrete Wavelet
Transform (DWT). The statistical features from the DWT sub-bands of EEG segments were
calculated and fed as inputs to Multilayer Perceptron (MLP) and Radial Basis Function
(RBF) network classifiers using 10-fold cross validation. We also applied multiscale PCA
(MSPCA) de-noising method to determine if it can further enhance the classifiers’
performance. MLP-based approach outperformed RBF classifier with or without MSPCA,
which significantly improved the classification accuracy of both classifiers. The proposed
MLP-approach with MSPCAachieved a classification accuracy of 95.09%. We showed that a
high classification accuracy of EEG signals can be accomplished in cases when additional
“pre-ictal” class is introduced. Therefore, the proposed approach may become an efficient
tool to predict epileptic seizures from EEG recordings.
Keywords: Electroencephalogram (EEG); Epileptic seizure; Discrete Wavelet Transform
(DWT); Multilayer Perceptron (MLP); Radial Basis Function (RBF) network; Multiscale
PCA (MSPCA); Machine learning.
491

�1.INTRODUCTION
Noninvasive electrodes on the scalp can record the brain's electrical activity called as
electroencephalogram (EEG), produced by billions of neurons firing within the nervous
system. The EEG signal is characterized by a nonstationarity in the waveforms and
semistationary time-dependent states, and detection of these characteristics is a difficult task
(Bigan, 1998). Over 50 million people in the world are affected by the epilepsy, the second
mostcommon neurological disorder after stroke (D’Alessandro et al., 2003). Abnormal
movements and seizures, resulting from the brain cells' excessive electrical discharge, are the
signs of epilepsy.
One of the most important causes of stress, morbidness and anxiety in epileptic patients is the
inability of predicting seizure onset (Murray, 1993; Buck et al., 1997). Thereliable
predictability of seizure onset would dramatically improve the safety and quality of life of
these patients who cannot be treated successfully by common therapeutic options (Schachter,
1994). For example, patients would be able to prevent dangerous situations when being
warned of upcoming seizure. Various automated intervention systems and measures could be
implemented like applying electrical brain stimulations or delivering short-acting
anticonvulsant drugs by using implanted devices (Stein et al., 2000;Elger, 2001).
Additionally, the investigation of the pathophysiological mechanisms causing seizures could
be improved by the accurate detection of states preceding seizures.
Mormann et al., (2007) stated that seizure prediction is the long and winding road in their
review article. D’Alessandro et al., (2003)used intelligent genetic search technique to classify
preseizure and non-preseizure classes from four patients by a probabilistic neural network,
reporting a sensitivity of 62.5% with 90.5% specificity. Costa et al., (2008)compared 6 types
of neural network architectures which used 14 features extracted from EEG of two patients to
classify brain states into four classes: inter-ictal, pre-ictal, ictal and pos-ictal. The accuracies
of up to 99% were achieved. Mirowski et al., (2009)achieved 71% sensitivity and 0 false
positives using convolutional networks combined with wavelet coherence. Chisci et al.,
(2010) used Autoregressive (AR) models to classify pre-ictal and inter-ictal classes from nine
patients, reporting 100% sensitivities and average false positive rates of 0.174/h (on the interictal dataset).
This paper is organized as follows. Section 2 describes the EEG data, signal processing and
feature extraction methods, and the artificial neural networks with a brief description of each
one. In section 3, the performance of the proposed system is presented and discussed. Finally,
section 4 presents concluding remarks and perspectives for future work.

492

�2.Materials and methods
2.1 Subjects and data recording
We analyzed long-term EEG data recorded during invasive pre-surgical epilepsy monitoring
at the Epilepsy Center of the University Hospital of Freiburg, Germany. The Neurofile NT
digital video EEG system with 128 channels, 256 Hz sampling rate, and a 16 bit analogue-todigital converter was used to acquire the EEG data. Each of 21 patients, suffering from
medically intractable focal epilepsy, contains datasets called “ictal” and “inter-ictal”. The
“ictal“ dataset consists of files containing epileptic seizures, each having a seizure-free "preictal" period of at least 50 minutes. The “inter-ictal“ dataset consist of approximately one day
of seizure-free EEG recordings for each patient. Each patient had between two and five
seizures, with an average of 4.2 seizures per patient or a total number of 87 seizures(Maiwald
et al., 2004).The onset and end times of each seizure were determined by visual examination
of skilled epileptologists.
2.2 Multiscale Principal Component Analysis
Multiscale Principal Component Analysis (MSPCA) combines the wavelet analysis with
PCA. The MSPCA method incorporates the decomposition of each variable on a selected
family of wavelets during which the wavelet coefficients are thresholded. After that, the PCA
model is separately built for the coefficients at each scale. In order to yield one model for all
scales together, the models at important scales, which show process disturbances or abnormal
operation, are merged in an effective scale-recursive way(Bakshi 1998; Ganesan, Das, &amp;
Venkataraman, 2004).Because of its multiscale type, it is suitable to use MSPCA for
modeling of data consisting of contributions from events which behavior changes over time
and frequency. MSPCA is powerful tool for monitoring autocorrelated measurements without
time-series modeling or matrix augmentation due to approximate decorrelation of wavelet
coefficients. The MSPCA method not only selects and monitors the significant signal features
but also conforms to the nature of the signal (Bakshi 1998).
2.3 Discrete Wavelet Transform
Signals like EEG may contain transitory or non-stationary characteristics. That is why
Fourier Transform, which can be applied to the stationary signals, is not an ideal method to
be directly applied to signals like EEG. Therefore, time-frequency methods like Wavelet
Transform should be used.
The analysis based on Discrete Wavelet Transform is best explained in terms of filter banks.
Multi-resolution decomposition of a signal is the procedure of using a group of filters to
separate that signal into various spectral components. Every stage of this procedure consists
of two digital filters and two down-samplers by 2. The first filter is the discrete mother
wavelet, being high-pass in nature. The second filter is its mirror version, being low pass in
493

�nature. Outputs of the first high-pass and low-pass filters, once being down-sampled, provide
the detail D1 and the approximation A1, respectively (Adeli, Zhou, &amp; Dadmehr,
2003;Marchant, 2003; Semmlow, 2004).
In DWT analysis it is very important to choose the appropriate number of
decomposition levels and appropriate wavelet selection. The components of the dominant
frequency of the signal are the main base for choosing the number of decomposition levels.
Distribution of energy of the EEG signal in frequency and time is shown by a compact
representation of the extracted wavelet coefficients. Using statistics over the wavelet
coefficients sets helped in decreasing the dimensionality of the extracted feature vectors
(Kandaswamy et al., 2004).Subasi (2007) and Subasi&amp;Gursoy (2010) achieved high
accuracies in classifying EEG signals using statistical feature vectors extracted from wavelet
coefficients.

2.4 Multilayer Perceptron
Multilayer feedforward networks is composed of a set of source nodes which serve as sensory
units that form the input layer, one or more hidden layers and an output layer. Hidden layers
and an output layer consist of computational nodes. The input signal is transmitted through
the network in a forward direction, layer by layer. This type of neural networks, which
represents a generalization of the single-layer perceptron, is generally known as multilayer
perceptron (MLP). When trained in a supervised manner using highly popular and
computationally efficienterror back-propagation algorithm, multilayer perceptrons can
successfully solve complex and different problems, but certainly do not provide an optimal
solution for all solvable problems. Essentially, error back-propagation learning consists of a
forward pass and a backward pass. In the forward pass, the effect of an input vector, when
being applied to the sensory nodes, propagates through the network. At the end, a set of
outputs, as the real response of the network, is formed. The synaptic weights are all fixed
during this stage. However, these synaptic weights are being tuned according to errorcorrection rule during the backward pass. Namely, an error signal is produced as the real
response of the network is subtracted from a desired (target) response. This error signal is
then propagated backward through the network during which the synaptic weights are tuned
so that the difference between the real and the desired response of the network decreases.One
or more layers of hidden neurons enhance network’s learning of difficult problems by
extracting more significant features from the input vectors(Haykin 1999).
2.5 Radial Basis Function Network
The design of a neural network can also be perceived as a curve-fitting (approximation)
problem in a high-dimensional space,where learning is viewed as finding a surface which
494

�represents a best fit to the training data in a multidimensional space. This multidimensional
surface is then used to interpolate the test data. The method of radial-basis functions is
motivated by such a viewpoint. The early work on radial-basis functions is reviewed in
Powell (1985).A radial-basis function (RBF) network basically consists of three layers having
completely different tasks. The input layer connects the network to the environment via
source nodes that serve as sensory units. A nonlinear transformation from the input space to
the hidden space of high dimensionality is applied in the second layer as the only hidden
layer in the network. The output layer, producing the response of the network to the input
vector, is linear. The effect of applying nonlinear transformation prior to a linear
transformation is explained by Cover (1965). As stated by him, there is a higher change of a
pattern recognition problem to be linearly separable in a high-dimensional space. Therefore,
the dimension of the hidden space in an RBF network is often made high. Moreover, the
higher the dimension of the hidden space, the more accurate the approximation of smooth
mapping is(Mhaskar, 1996; Niyogi and Girosi, 1996).
3. Experimental results and discussion
3.1 Experiment
Classification of EEG signals consists of data acquisition and preparation, signal processing,
feature extraction and classification. We propose a method based on MSPCA for denoising,
DWT for feature extraction and ANNs for classification.We extracted 4096-samples-long
segments from both datasets of each patient. Approximately two segments per hour were
extracted from “inter-ictal” dataset, producing 1050 inter-ictal segments. We also extracted
two types of segments from “ictal” dataset: ictal and pre-ictal. We used minimum number of
4096-samples-long segments to cover all 87 seizure activities, producing 652 ictal segments.
We extracted five segments within a seizure-free "pre-ictal" period of 50-60 minutes,
producing 435 pre-ictal segments. Only one out of six channels was used for extraction of
EEG segments, although results from the different authors presented a poor performance of
univariate measures (Mormann et al., 2005).
We selected the number of decomposition levels for DWT to be 5 since EEG signals contain
no useful frequency components above 30 Hz, and because of 256Hz sampling rate of
Neurofile NT used to acquire the EEG data. Daubechies 4 (DB4) wavelet filter was used to
reconstruct the detail and approximation records.All 2137 EEG segments, which belong to
three different classes, were divided into sub-band frequencies A5 (0-4 Hz), D5 (4-8 Hz), D4
(8-16 Hz), D3 (16-32 Hz), D2 (32-64 Hz) and D1 (64-128 Hz). Sub-band frequencies A5 and
D3-D5 almost perfectly correspond to δ (0-4 Hz), θ (4-8 Hz), α (8-12 Hz) and β (12-26 Hz)
frequencies of EEG signals (Bylsma et al., 1994).
A set of fifteen statistical features was then extracted from the wavelet coefficients
representing these sub-band frequencies and fed as inputs to classifiers. A Multiscale PCA
(MSPCA) de-noising method was also applied to determine if it can further enhance the
495

�classifiers’ performance. We implemented a classification system based on MLP and RBF
network using wavelet statistical features as inputs and 10-fold cross validation method, to
guarantee validity of the results.
3.2 Results
We performed two types of experiment: with and without MSPCA de-noising method
applied.In Table 1, we have seen that MSPCA drastically improved the classification
accuracy of both classifiers, while MLP network achieved higher total classification accuracy
than RBF network. The accuracies for each class are also presented in Table 1.
Accuracy

Accuracy

Accuracy

Total

(Pre-ictal)

(Inter-ictal)

(Ictal)

Accuracy

MLP +DWT

2.76 %

89.43 %

60.58 %

62.99 %

RBFN +DWT

7.13 %

90.57 %

54.45 %

62.56 %

MLP + MSPCA+DWT

87.82 %

97.43 %

96.17 %

95.09 %

RBFN + MSPCA+DWT

71.49 %

97.14 %

94.02 %

90.97 %

Classifier

Table 1. Accuracies of MLP and RBF network classifiers with and without MSPCA.
MSPCA significantly improved the classification accuracy for ictal and pre-ictal
samples, while accuracy performance for inter-ictal class was only slightly improved.
Classifiers are totally useless for seizure prediction if MSPCA is not applied.
3.3 Discussion
The experiment results show that MSPCA is an effective denoising method for improving the
classification performance. Without MSPCA, our method classified many pre-ictal/ictal data
samples as being inter-ictal.Aminghafari, Cheze, &amp; Poggi, (2006) showed that de-noised
signals by MSPCA magnify the spikes more clearly. Therefore, MSPCA enhanced our
classifier's performance for about 50%.
Our approach outperformed the one explained in D’Alessandro et al., (2003). Theyalso used
data of only four patients to developfour different classifiers for each patient. Although Costa
et al., (2008)introduced one more class (pos-ictal) and achieved accuracies of 99%, using data
of only two patients from Freiburg database is insufficient to successfully train and develop a
model. Mirowski et al., (2009) predicted all seizures without false positives for 15 patients,
without mentioning how classifier performed on data belonging to six remaining patients
496

�from Freiburg database. Thus, sensitivity of 71% is reported, which is lower than
classification accuracies for pre-ictal class of both of our classifiers. Chisci et al., (2010)used
nine patients for which additional electro-corticographic recordings (grid–strip electrodes)
were available and achieved 100% sensitivity with low false positive rates. However, they
developed patient-specific system by training nine classifiers, where each classifier used train
and test data of only one patient. Our proposed system is more general because only one
classifier is developed for all patients and it is not bound to specific group of epileptic
patients.
4. CONCLUSION
We showed that a high classification accuracy of EEG signals can be accomplished in cases
when additional “pre-ictal” class is introduced. Many research papers showed that DWT
coefficients well represent the EEG signals and ensure a good differentiation between classes.
However, we managed to achieve high accuracies only when MSPCA de-noising method was
applied to Freiburg dataset. The accuracy may be further improved by applying dimension
reduction or feature selection methods like ICA or LDA on the feature vectors. Measures that
characterize the relations between two or more channels can be used to further enhance the
performance. Using only inter-ictal and pre-ictal samples to train the classifier could be
investigated since our aim is not seizure detection. Freiburg dataset can serve as a challenge
for trying other feature extraction methods rather than DWT. The proposed approach may
become an efficient tool to predict epileptic seizures from EEG recordings.
REFERENCES
Adeli, H., Zhou, Z., &amp; Dadmehr, N. (2003). Analysis of EEG records in an epileptic patient
using wavelet transform. Journal of Neuroscience Methods 123, 69-87.
Aminghafari, M., Cheze, N., &amp; Poggi, J.-M. (2006). Multivariate denoising using wavelets
and principal component analysis. Computational Statistics &amp; Data Analysis, 50, 2381-2398.
Bakshi, B. R. (1998). Multiscale PCA with Application to Multivariate Statistical Process
Monitoring. AlChE, 44(7), 1596-1610.
Bigan, C. (1998). A recursive time-frequency processing method for neural networks
recognition of EEG seizures. In E. C. Ifeachor, A. Sperduti, &amp; A. Starita (Eds.), Neural
Networks and Expert Systems in Medicine and Healthcare. Singapore: World Scientific.
Buck, D., Baker, G. A., Jacoby, A., Smith, D. F., &amp; Chadwick, D. W. (1997). Patients'
experiences of injury as a result of epilepsy. Epilepsia, 38, 439-44.
Bylsma, F., Peyser, C., Folstein, S., Ross, C., &amp; Brandt, J. (1994). EEG power spectra in
Huntington’s disease: clinical and neuropsychological correlates. Neuropsychologia 32(2),
137-150.
497

�Chisci, L., Mavino, A., Perferi, G., Sciandrone, M., Anile, C., Colicchio, G., et al. (2010).
Real-Time Epileptic Seizure Prediction Using AR Models and Support Vector Machines.
IEEE Transactions on Biomedical Engineering, 57(5).
Costa, R. P., Oliveira, P., Rodrigues, G., Leitao, B., &amp; Dourado, A. (2008). Epileptic Seizure
Classification Using Neural Networks with 14 Features. In I. Lovrek, R. J. Howlett, &amp; L. C.
Jain (Eds.), KES 2008, Part II, LNAI 5178 (pp. 281-288). Springer-Verlag Berlin Heidelberg.
Cover, T. M. (1965). Geometrical and Statistical properties of systems of linear inequalities
with applications in pattern recognition. IEEE Transactions on Electronic Computers, 326334.
D'Alessandro, M., Esteller, R., Vachtsevanos, G., Hinson, A., Echauz, J., &amp; Litt, B. (2003).
Epileptic seizure prediction using hybrid feature selection over multiple intracranial EEG
electrode contacts: a report of four patients. IEEE Transactions on Biomedical Engineering
50 (5), 603-615.
Elger, C. E. (2001). Future trends in epileptology. Current Opinion in Neurology, 14, 185186.
Ganesan, R., Das, T. K., &amp; Venkataraman, V. (2004). Wavelet-based multiscale statistical
process monitoring: A literature review. IIE Transactions, 36(9), 787-806.
Haykin, S. (1999). Neural Networks: A Comprehensive Foundation (Second ed.). Prentice
Hall.
Kandaswamy, A., Kumar, C., Ramanathan, R., Jayaraman, S., &amp; Malmurugan, N. (2004).
Neural classification of lung sounds using wavelet coefficients. Computers in Biology and
Medicine, 34(6), 523-537.
Maiwald, T., Winterhalder, M., Aschenbrenner-Scheibe, R., Voss, H. U., Schulze-Bonhage,
A., &amp; Timmer, J. (2004). Comparison of three nonlinear seizure prediction methods by means
of the seizure prediction characteristic. Physica D 194, 357-368.
Marchant, B. P. (2003). Time–frequency analysis for biosystem engineering. Biosystems
Engineering, 85(3), 261-281.
Mhaskar, H. N. (1996). Neural networks for optimal approximation of smooth and analytic
functions. Neural Computation, 8, 164-177.
Mirowski, P., Madhavan, D., LeCun, Y., &amp; Kuzniecky, R. (2009). Classification of patterns
of EEG synchronization for seizure prediction. Clinical Neurophysiology, 120(11), 19271940.
Mormann, F., Andrzejak, R. G., Elger, C. E., &amp; Lehnertz, K. (2007). Seizure prediction: the
long and winding road. Brain, 130, 314-333.
Murray, J. (1993). Coping with the uncertainty of uncontrolled epilepsy. 2, 167-178.
498

�Niyogi, P., &amp; Girosi, F. (1996). On the relationship between generalization error, hypothesis
complexity, and sample complexity for Radial Basis Functions. Neural Computation, 8, 819842.
Powell, M. J. (1985). Radial basis functions for multivariable interpolation: a review. IMA
Conference on Algorithms for the Approximation of Functions and Data. Shrivenham:
RMCS.
Schachter, S. C. (1994). The brainstorms companion: epilepsy in our view. New York: Raven
Press.
Semmlow, J. L. (2004). Biosignal and biomedical image processing: MATLAB-based
applications. New York: Marcel Dekker, Inc.
Stein, A. G., Eder, H. G., Blum, D. E., Drachev, A., &amp; Fischer, R. S. (2000). An automated
drug delivery system for focal epilepsy. Epilepsy Res, 39, 103-114.
Subasi, A. (2007). EEG signal classification using wavelet feature extraction and a mixture of
expert model. Expert Systems with Applications 32, 1084-1093.
Subasi, A., &amp; Gürsoy, M. I. (2010). Comparison of PCA, ICA and LDA in EEG signal
classification using DWT and SVM. Expert Systems with Applications 37, 8659-8666.

Classification of Fetal State from the Cardiotocogram Recordings using ANN and
Simple Logistic
Hakan Sahin, Abdulhamit Subasi
International Burch University, Faculty of Engineering and Information Technologies,
71000, Sarajevo, Bosnia and Herzegovina
E-mail:hakanshah@hotmail.com , asubasi@ibu.edu.ba
Abstract
In this study, we present a comparison of machine learning technics using antepartum
cardiotocographs performed by SisPorto 2.0 in predicting newborn outcome. CTG is widely
used in pregnancy as a technique of measuring fetal well-being, mainly in pregnancies with
increased risk of complications. It is a non-invasive way for checking the fetal conditions in
the antepartum period. CTG is a continuous electronic record of the baby’s heart rate
acquired via an ultrasound transducer placed on the mother’s abdomen. The information
499

�</text>
                  </elementText>
                </elementTextContainer>
              </element>
            </elementContainer>
          </elementSet>
        </elementSetContainer>
      </file>
    </fileContainer>
    <elementSetContainer>
      <elementSet elementSetId="1">
        <name>Dublin Core</name>
        <description>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/.</description>
        <elementContainer>
          <element elementId="79">
            <name>Extent</name>
            <description>The size or duration of the resource.</description>
            <elementTextContainer>
              <elementText elementTextId="18230">
                <text>1208</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="50">
            <name>Title</name>
            <description>A name given to the resource</description>
            <elementTextContainer>
              <elementText elementTextId="18231">
                <text>Classification of EEG signals for epileptic seizure prediction using ANN</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="96">
            <name>Author</name>
            <description>Author</description>
            <elementTextContainer>
              <elementText elementTextId="18232">
                <text>Kevric, Jasmin
Subasi, Abdulhamit</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="94">
            <name>Abstract</name>
            <description>A summary of the resource.</description>
            <elementTextContainer>
              <elementText elementTextId="18233">
                <text>In this paper, we developed a model for classification of EEG signals. The aim of the study is  to determine whether this model can be used for epileptic seizure prediction if “pre-ictal”  stages were successfully detected. We analyzed long-term Freiburg EEG data. Each of 21  patients contains datasets called “ictal” (seizure) and “inter-ictal” (seizure-free). We extracted  4096-samples (or 16 seconds) long segments from both datasets of each patient. These  segments were decomposed into time-frequency representations using Discrete Wavelet  Transform (DWT). The statistical features from the DWT sub-bands of EEG segments were  calculated and fed as inputs to Multilayer Perceptron (MLP) and Radial Basis Function  (RBF) network classifiers using 10-fold cross validation. We also applied multiscale PCA  (MSPCA) de-noising method to determine if it can further enhance the classifiers’  performance. MLP-based approach outperformed RBF classifier with or without MSPCA,  which significantly improved the classification accuracy of both classifiers. The proposed  MLP-approach with MSPCAachieved a classification accuracy of 95.09%. We showed that a  high classification accuracy of EEG signals can be accomplished in cases when additional  “pre-ictal” class is introduced. Therefore, the proposed approach may become an efficient  tool to predict epileptic seizures from EEG recordings.  Keywords: Electroencephalogram (EEG); Epileptic seizure; Discrete Wavelet Transform  (DWT); Multilayer Perceptron (MLP); Radial Basis Function (RBF) network; Multiscale  PCA (MSPCA); Machine learning.</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="40">
            <name>Date</name>
            <description>A point or period of time associated with an event in the lifecycle of the resource</description>
            <elementTextContainer>
              <elementText elementTextId="18234">
                <text>2012-05-31</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="97">
            <name>Keywords</name>
            <description>Keywords.</description>
            <elementTextContainer>
              <elementText elementTextId="18235">
                <text>Conference or Workshop Item
PeerReviewed</text>
              </elementText>
            </elementTextContainer>
          </element>
        </elementContainer>
      </elementSet>
    </elementSetContainer>
    <tagContainer>
      <tag tagId="88">
        <name>H Social Sciences (General),T Technology (General)</name>
      </tag>
    </tagContainer>
  </item>
  <item itemId="2257" public="1" featured="0">
    <fileContainer>
      <file fileId="3311">
        <src>https://omeka.ibu.edu.ba/files/original/31ab889c8926473947fcc11c8a4f3bb4.pdf</src>
        <authentication>36a205a53358663839d102576a94ffd2</authentication>
        <elementSetContainer>
          <elementSet elementSetId="4">
            <name>PDF Text</name>
            <description/>
            <elementContainer>
              <element elementId="52">
                <name>Text</name>
                <description/>
                <elementTextContainer>
                  <elementText elementTextId="18243">
                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Kılıç, S., Kendirli, H. Ç. (2005). Endüstriyel pazarlarda ilişkisel pazarlamanın yeni
ekonomideki yeri ve önemi. Üçüncü Sektör Kooperatifçilik Dergisi, 148 (2). ss: 20-36
Oktay, E., Balkanlı, A. ve Salepçioğlu, A.(2004) Bilgi Toplumunda Yeni Ekonomi ve
Dönüşüm Stratejileri, http://iibf.ogu.edu.tr/kongre/bildiriler/04-02.pdf.
Öztürk, L.(2005), Türkiye’de Dijital Eşitsizlik: TÜBİTAK –BİLTEN Anketleri Üzerine Bir
Değerlendirme, Erciyes Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi, Sayı :24,
S.11-131.
Pau, F. L.(2002) The Communications and İnformation Economy: issues, tarrifs and
economics research areas. Journal of Economic Dynamics&amp; Control, 26:1651-1675.
Sabuncuoğlu, A., Vural, B. A.(2008). Bilgi ve İletişim Teknolojileri ve Ütopyan Bakış Açısı.
Selçuk Üniversitesi İletişim Dergisi, Cilt:5, Sayı: 3, 5-19, Temmuz.
Şahin, L., Çetin, B. I., Yıldırım, K. (2010). Bilişim Teknolojilerindeki Gelişmelerin
İşletmelerin Strateji ve Maliyetleri Üzerine Etkileri.
www.iudergi.com/tr/index.php/sosyalsiyaset/article/view/98.
Toffler A.(1970), Future Shock, A Bantom Book, United States America.
Yeloğlu, H. O.(2004). Bilgi Ekonomisi ve Değişkenleri: Türkiye ve OECD Karşılaştırmaları,
3. Ulusal Bilgi, Ekonomi ve Yönetim Kariyeri, Eskişehir.
www. tuik. gov.tr. (18.08.2010), Haber Bülten, Sayı : 148
http://www.tuik.gov.tr/VeriBilgi.do?tb_id=25&amp;ust_id=8: 26.04.2012
http://www.wrc.org.uk/includes/documents/cm_docs/2011/s/1_statistics_about_women_in_th
e_uk_2009_25_5_10_latest_nn_sr1.doc.:26.04.2012.
unpan1.un.org/intradoc/groups/public/documents/.../unpan023829.pdf. 26.04.2012.
Walter W. Powell and Kaisa Snellman (2004) “The knowledge economy”, Annu. Rev. Sociol.
30:199–220
John Houghton and Peter Sheehan (2000). “A Primer on the Knowledge Economy” Centre for
Strategic Economic Studies, Victoria University

Economic Costs And Benefits Of The Eu Enlargement: The Impact On The Eu And
Seec’s
Kurtagić Haris, Nuroglu Elif
International University of Sarajevo, Sarajevo, B&amp;H
E-mails: kurtagic.h@hotmail.com,enuroglu@ius.edu.ba
Abstract
The South-eastern enlargement of the European Union will be the sixth enlargement since
establishing the European Community in 1957. The research uses the Gravity model, and
measures the factors that have an influence on trade. The Gravity model involves coefficients
186

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

that explain the pattern of trade with GDP, geographical distance, population, and several
dummy variables. Trade that is explained by Gravity model includes two regions, EU-15
(inclusive Bulgaria and Romania) and SEEC’s. The reason why Bulgaria and Romania are
included, even if they are part of the SEEC’s, is to acquire as accurate pattern of trade as
possible. Comparing the data from 2010, the gravity model describes trade flows between 23
countries. Thus, the purpose of this study is to analyze trade flows between two regions.
Taking into consideration the costs of enlargement, this research examines the effects of the
trade, its significance on the development of SEEC’s after enlargement, well-being of
countries that are not part of the EU, as well as it offers a solution for the South-east European
countries. Therefore, the solution that this research proposes is a model based on creation of
the Balkan Union.
Keywords: EU-Enlargement, Gravity model, South-eastern Europe, European union, Trade
flows.
1.INTRODUCTION
The South-eastern enlargement of the European Union (EU) – the sixth since 1973 – is a huge
test for the EU, as well as for the applicant countries. The European Union consists of 27
members. Besides incumbent members, there are candidates, as well as potential candidates.
Inclusive candidates: Croatia, Macedonia (FYR), Montenegro, Iceland, Serbia and Turkey,
the potential candidates will comprise the next enlargement of 9 countries. The potential
candidates are Albania, Bosnia and Herzegovina, and Kosovo. This enlargement will increase
the EU area by 25%, the number of population by 19%, and absolute GDP by 5%. Although,
the exact time pattern of accession is not clear yet, the European Commission plans to start
with a group of 3 states that consist of Croatia, Montenegro and Iceland. Turkey is not sure
yet, whether to access the Union or not, because the country has strong economy, and many
analytics think that joining the Union would hurt Turkish economy.
On the other hand, the applicant countries of South-eastern Europe are relatively poor
countries with a GDP per capita below the EU average. Hence, the average GDP per capita of
nine countries is $10,490 that would be 3 times lower compared to EU-27 or 4 times lower
compared to EU-15.
Similar to the third EU enlargement, the next enlargement would be a new challenge for the
EU countries, as the integration of poor with rich countries increases heterogeneity. The
South-east European countries will enter the EU on the basis of the Treaty of Accession. Once
they access the EU, the members are part of a union and a single market. One union of 27
countries with over 501 million consumers, which have access to a single market, is of huge
importance for customers. Construction of a single market of the European Union has brought
the new impact, and improved the emergence of a common EU policy such as competition
policy. The EU constantly works on improvement of common policies, especially, on a
common market. Those policies have gained great importance that increases over time. The
policies are important, since they strengthen mutual trade, improve the quality of products and
services, then they expand a single market, and the most important thing is that they reduce
trade barriers and increase positive effects of the common market. As a result, the EU policies
preserve the good functioning of market, and the European Commission prevents or corrects
187

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

the non-competitive behaviour of companies. When it comes to South-east European
countries (SEEC’s), the fact is that its consumers enjoy a freedom of choice that is diversified
by almost the same prices, lower quality and a fewer innovations comparing to the EU
standards. The competition is present between SEEC’s, but they are not competitive to the EU
single market. Those companies cannot achieve scale of economies or competitive advantages
as the EU countries do. Thus, this research shows economic costs and benefits that the EU
enlargement brings to SEEC’s. It presents gains from trade for both, the European Union and
South-east European Countries. This paper looks at the economic costs and benefits of the
enlargement of the EU, as well as the impact that the enlargement would bring to the Southeast European countries.
2.MAASTRICHT TREATY, EUROPEAN UNION, SINGLE MARKET, AND SINGLE
CURRENCY – EURO
In order to improve trade, six countries (Belgium, France, Germany, Italy, Luxembourg and
the Netherlands) have adopted first four regulations for a common market in agriculture,
finance and regulation of governing competition. On 1 January 1973, Denmark, Ireland and
the United Kingdom joined the EU. Greece became the 10th member of the EU in 1981 and
Spain and Portugal join Union five years later. The situation was stable until the Berlin Wall
fell in 1989, so the European Economic Community (EEC) member states were negotiating
over a new treaty at Maastricht in December 1991. However, it included intergovernmental
cooperation in foreign policy and internal security that resulted in the Maastricht Treaty,
which created European Union on 1 November 1993. The collapse of communism throughout
Central and Eastern Europe has connected Europeans. As a result of that, in 1993 the Single
Market was completed with freedom of movement of goods, services, people and money.
Three new members came in 1995, Austria, Finland and Sweden.
The euro, Europe’s single currency replaced the old currencies on 1 January 2002, when 12
EU Member States adopted it as their official currency, creating the euro zone. The euro zone
makes life easier for business, consumers and travellers. On 1 May 2004, 10 countries got
memberships in the EU: the Czech Republic, Cyprus, Hungary, Malta, Poland, Slovakia,
Estonia, Latvia, Lithuania and Slovenia, while Bulgaria and Romania on 1 January 2007.
Today, the EU has 27 member states. Enlargement to 27 was one of the most important steps
in the history of European integration. 12 new countries in the EU, not only have expanded
geographical size and population, but they have created an end for splitting the continent into
two since 1945. As the idea of the EU says, democratic freedom was settled in 12 new
member states. The creation of the single market gave European Union countries a strong
incentive to liberalize previously protected monopolistic markets. Within the Union, Member
States have removed all tariffs on trade, while having unified tariffs on imports from outside
the EU. It means that no matter which country is the importer, the tariff paid on products is
the same, and once customs procedures are completed, goods can be shipped throughout the
EU without additional duties. In accordance to rules and regulations of the European Union,
member of the Union should be guaranteed:
188

Price stability,
Stability of currency,
Limitations of public debt, 60% of GDP,
Economic balance with limited deficit of national budget,
Investment stability, in sense of level of long-run interest rates, and

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

-

3% of GDP.

The European Union is formed on the principles of liberty, democracy, respect for human
rights and fundamental freedoms, and the rule of law, principles that are common to the
Member States. The EU has a motto, ‘United in diversity’, and May 9 is commemorated each
year as Europe Day. By singing the Treaty of Rome in 1957, the EU members promised to
abolish barriers to trade freely across the European continent. In Tupy (2003), the benefits of
free movement of goods are seen as major benefits of consumers. Generally, the European
Union has integrated the market, and established common rules. Those rules are implemented
through technical standards of consumer protection, environmental standards, competition
policy, and fairness in the workplace (Tupy, 2003, p. 6). Thus, for the SEEC’s the common
market could be a place for integration of every aspect of the state. Once the boarders are
opened to flow of goods and capital, people would look at historic events less, and they will
go for personal interest.
3.EUROPEAN UNION TODAY
Today, European Union exists as a union that aims to increase economic and political
circumstances. The logic behind that is to deliver a peace, stability, and prosperity, to help
improve living standards, promote a single currency that will build a single market, where
people, goods, services and capital could move within the European Union. It is not a
government or state or international organization, but a novel entity which respects human
rights. Many countries, a huge single market, and single currency provide many benefits, but
for whom? As a single market, the EU is a major world trading power. The single market
aims at putting down barriers and simplifying rules to enable everyone in the EU to take
advantage of the opportunities given to them by having access to 27 countries and 501 million
people. Looking from economics perspective, small countries from Europe cannot achieve
growth and prosperity without the EU. Therefore, in order to compete on the world stage and
achieve economies of scale, the European countries need a broader base, and the European
single market provides it. The single market is one of the European Union’s greatest
achievements. Restrictions on trade and free competition between member countries have
gradually been eliminated; therefore, the whole system helps standards of living to rise.
Within the EU, all border controls on goods have been eliminated, together with customs
controls on people, but the police still conduct random checks as part of the fight against
crime and drugs. When it comes to tax barriers, then tax barriers have been reduced by
partially aligning national Value Added Tax rates, which must be agreed by the EU member
states.
There is also the EU’s competition policy that tries to ensure that within the European single
market competition is not only free but also fair. Therefore, in the EU single market there is
no cartel, or unfair monopoly.
The European Union was created to succeed in political objectives, through achieving
economic cooperation. In modern terms, people call it as an “area of freedom, security and
justice”, where every citizen has an equal justice and protection by the law.
The European Commission represents the EU in international negotiations at the World Trade
Organizations (WTO). Right now, the EU would like to put more emphasis on quality of
food, precautionary principle (“better safe than sorry”) and animal welfare.
189

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

The EU has regional policy stating that European Funds should be used to improve
development in regions that are lagging behind, to increase standard of living in areas that are
in decline, to help young people and the long-term unemployed find work. One important and
interesting thing is that European Funds are also allocating funds to farming and to lessfavoured rural areas.
In order to fund its policies, the European Union has an annual budget that in 2010 amounted
to more than € 140 billion. The budget is financed from the EU’s own resources that cannot
exceed 1.23 % of the total gross national income of all the member states (Fontaine, 2010, p.
35). The resources are mainly collected from:
-

Customs duties on products imported into the EU,
A percentage of the value added tax (VAT) levied on goods and services throughout
the EU, and
Contributions from the member states, reflecting the wealth of each country.

The European Union has more influence on the world stage when it speaks with a single voice
in international affairs such as trade negotiations.
4.European Enlargement
On January 1, 2007, the EU recorded the fifth enlargement. Bulgaria and Romania became
new members of the EU. Before that, on May 1, 2004 the EU enlarged from 15 to 25 member
countries. In the period from 1990 to 1999, the EU invested more than $85 billion to support
the new Member States during the accession process (Delegation of the European Union to
the United States of America, 2011, p. 21). Every new enlargement of the European Union is
seen as a historic step toward long-term objectives of the union. Thus, any country that
respects liberty, democracy, human rights and fundamental freedoms, and the rule of law is
qualified to apply for EU membership. Applying for the EU membership is the start of a long
and rigorous process. Once a country submits an application to the Council of the EU, it
activates a sequence of EU procedures that may, or may not, result in the country being
invited to become a member. After applying for membership, the process starts with
accomplishing the Copenhagen Criteria. There are not many criteria, but, in essence, every
country has to work on it, since the criteria are detailed. Fontaine (2010) mentions these
criteria as follows:
-

Institutions that provides high democracy, the rule of law, human rights and respect
for and protection of minorities.
Strong market economy and the ability to cope with threats and pressure within the
Union.
Ability to take on the obligations of membership, accomplishing the aims of the Union
(Fontaine, 2010, p. 16).

Once the Council unanimously agrees to begin accession negotiations, discussions may be
formally opened. The negotiation has got 35 separate policy areas that are called “chapters”,
and each candidate country proceeds separately from one stage of the process to next. Each
stage must satisfy all conditions, and then the candidate country could move on. Thank to this
process, the prospect of accession acts as a powerful incentive for reform, providing
simultaneously benefits to the EU and to its acceding members.
190

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

A candidate country is one whose EU membership application has been accepted by all
relevant EU institutions, allowing it to begin accession negotiations. Once negotiations are
concluded to the desired level for both sides, a comprehensive Draft Accession Treaty is
submitted for approval by the Council of the EU, the European Commission, and the
European Parliament. After the treaty is approved, it is signed by the candidate country and
the representatives of all EU Member States. Afterward, all Member States and the candidate
get the treaty for ratification. Once the ratification process is done, the treaty enters into force
on its scheduled date, and the candidate country becomes an EU Member State.
5.Enlargement of the South-eastern Europe
The next enlargement in the EU is related to Western Balkan region. The structure and
procedures to be applied on the Western Balkan region are the same as it was for the former
candidates. A first significant step in this process is the establishment of European partnership
with Albania, Bosnia and Herzegovina, Kosovo, Montenegro, and Serbia. It would be a very
important factor that assists the Western Balkan states in preparing for membership within
rational framework and in developing action plans with timetables of reforms.
“The main instrument that created by the European Union for Balkan integration is the
Stabilization and Association Process (SAP), launched in 2000, that was established as a long
process in order to establish development of the Western Balkans both in terms of political
effort and financial and human resources” (Montanari, 2005, p. 59). The aim of the SAP is to
create conditions that alike to the EU. Thus, the candidates work on preparation for future EU
standards.
When it comes to SEEC’s enlargement, conflicts can arise between European Union
members as a result from its redistribution effects. EU members observe SEEC’s as a
geographical area for expanding single market that can import more goods and services from
the current EU members. Once the union is enlarged, there is a new distribution of income
that can create lower income for some of the EU 27. That is not the only threat for EU 27,
high unemployment is another one. Taking this fact into consideration, when more
immigration happens, the neighbouring countries of the SEEC’s might be affected more. First
targets are Slovenia and Hungary as very close countries to candidate of the EU. Previous five
enlargements are observed if they were Pareto efficient for all member states and the
candidate states, and evidence suggests that enlargements were not Pareto efficient in every
enlargement round (Schneider T. P., 2007, p. 570). Thus, as Schneider (2007) states, the next
enlargement is going to be very complicated from aspects of EU redistribution and from the
free movement of labour. Thus, “the EU Eastern enlargement will adversely affect labourintensive and low-tech sectors in the EU member countries but will stimulate growth of skillintensive service industries and some capital-intensive and high-tech industries in Western
Europe” (Schneider T. P., 2007, p. 572).
Table 1
Basic Socioeconomic Indicators for South-eastern Europe (2010)
Population
(millions)

191

Per capita GDP
(current US$)

Unemployment 2009
(percent of labour force)

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

Albania
Bosnia and Herzegovina
Bulgaria
Croatia
Kosovo
Macedonia
Montenegro
Romania
Serbia

3.20
3.76
7.54
4.42
1.82
2.06
0.63
21.44
7.29

3,678
4,409
6,325
13,754
3,059
4,460
6,510
7,538
5,269

6.8
9.1
45.4
32.2
19.1
6.9
16.6

Sources: World Bank, World Development Indicator.
Monstat, Department of statistics of labour market, life conditions, social services
and household consumption.

As a result, the candidate countries would have an incentive to export workers, rather than to
attract them. Table 1 shows the unemployment rate, population and GDP per capita for
SEEC’s from 2010. From the table it is obvious that for relatively slow countries the
unemployment rate is high. Kosovo has unemployment of 45.4%, but the real unemployment
rate is around 25%, since the country has a problem with a gray economics. The other
countries have acceptable rates, but still high that is a threat for labour migration and labour
inflows in the EU. Two biggest countries of the SEEC’s became the EU members, and
remaining 7 will bring 23 million new customers to the single market. If we take into account
GDP’s of SEEC’s than it is obvious that states have relatively low ones, comparing to the EU15 (4 time lower), and EU-27 (3 time lower). Some of the candidate countries are
economically weak, with high unemployment rate and low wages, and they will be ready to
adapt to the system of free movement of labour. However, the Union could apply the potential
limitations on the free movement of workers of new member. There was a case when the
United Kingdom joined the Union in 1973. The state had to accept the limitations on the free
movement of its workers within Belgium, France, Germany, and Luxembourg (Schneider T.
P., 2007, p. 574). This clause could be used when accepting SEEC’s to the Union, where
Austria, Slovenia, and Hungary might ask for limitations of free movements of these three
countries’ workers in order to sign accession treaty.
Within the EU, the gains from the enlargement could be redistributed from the either
relative winners of enlargement (members of the Union or the candidates) to the relative
losers of enlargement that can also be state from these two groups.
When it comes to trade flows in 2010, than from Table 2 we see that Croatia is a main
exporter to the EU-15 (BG+RO). The total import for the EU-15 (BG+RO) is 32.42% of total
of the SEEC’s. On the other hand, Croatia is the leader in imports, as well. The total export
from the EU (BG+RO) to Croatia is 39.32 of total of the SEEC’s exports. From that fact, it is
not surprising that the country is the first to access the union. After enlargement the imports
will be higher for each country, the members of the EU will export to SEEC’s and try to
import less. Croatia and Serbia to some extent manage their resources properly, but the rest
have to increase an export that is almost 40% of overall exports to SEEC’s.

192

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

Table 2
EU-15 + BG and RO trade with South-eastern Europe by Country (2010)
EU-15+BG and RO Imports
Percentage of
Imports from
Million US$
SEEC’s
Croatia
Serbia
Macedonia
Bosnia and
Herzegovina
Albania
Montenegro

EU-15+BG and RO Exports
Percentage of
Exports to
Million US$
SEEC’s

4,149
3,867
1,738

32.42
30.22
13.59

9,069
6,414
2,081

39.32
27.81
9.03

1,732
1,157
152

13.53
9.04
1.19

2,557
2,442
500

11.09
10.59
2.17

6.Strategy
The strategy of the EU for creating sustainable growth and jobs encourages innovation within
businesses and investment in people that can design a knowledge-based society. Not only that,
but the idea is to attract more people into employment, and keep them in work longer as life
expectancy rises. Besides, the adaptability of workers and enterprises, provide better
education and skills, globalization and mobility would increase the well-being of the society.
By 2020, the EU aims to have accomplished the following targets:
-

75 % of the population aged 20-64 should be employed,
3 % of the EU’s GDP should be invested in R&amp;D,
The “20/20/20” targets in terms of reduction of greenhouse gas emissions, renewable
energy production, and energy efficiency should be met.
The share of school dropouts should be under 10 % and at least 40 % of the population
between the ages of 30 and 34 should have a degree of diploma.
20 million fewer people should be living below the poverty line (Delegation of the
European Union to the United States of America, 2011, p. 38).

In order to accomplish the objectives, the EU adopted a proposal to re-focus R&amp;D and
innovation policy on major challenges; enhance the quality and attractiveness of Europe’s
higher education system; deliver sustainable economic and social benefits from a Digital
Single Market; enable the EU’s industrial base to become more competitive, promote
entrepreneurship, and develop new skills for workers; and ensure economic, social and
territorial cohesion by helping the poor and socially excluded.

193

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

7.COSTS AND BENEFITS OF THE SOUTH-EASTERN ENLARGEMENT
7.1.The Overall Economic Impact of the Enlargement
Taking into account the economic costs of enlargement, as well as the distribution of gain
among incumbent Member States, we should consider the broader benefits and costs for the
Union’s economy that would take place after the enlargement.
The countries of the last EU enlargement were highly welcomed in the EU alliance because
they belong to those of the developed countries in the EU, and, hence, did not only cost
nothing, but contributed to the EU budget with significant amount. In a case of the Southeastern enlargement, the EU incumbents are firstly concerned about the costs, rather than the
possible benefits.
Typically, this enlargement would enable consumers and companies to arrange their
businesses more efficiently, so that there would be higher output and income. Taking into
consideration the costs of enlargement the question is how the distribution of gains is shared
among the EU members. Those countries that have strong trade relations with the SEEC’s
will benefit.
The European enlargement process is by no means a win-win project, but relatively
unpredictable condition that creates both winners and losers. Due to the huge wage-gap
between East and West sides of Europe, there might be a migration wave from East to the
West, as a result of full involvement of East side of Europe in the single market.
On the other side, there are almost certain gains for some new members. Thus, the
incumbent members prolong the acceptance of those candidates. One obvious case is Turkey.
The country has applied for the European Union, and almost 17 years later in 2004, the EU
finally decided to open accession negotiations. This news was a real shock for almost each
member of the Union. That was in the period when Turkey was becoming stronger in its
economy. The country was showing signals of real and healthy economy. Thus, many EU
states appeared unwilling to accept Turkey to the European club. Immediately, some of them
emphasized that the applicant would have to accept few exceptions from the common
policies. Germany asked for permanent restrictions on the free movement of labour while
France and other members of the EU called for refusing an allocation of agriculture subsidies
to Turkish farmers (Schneider C. J., 2007, p. 85). Thus, from the case of Turkey, it is obvious
that EU members are only looking for distribution of gains. Current members will question
enlargement if a new state is to decrease the gains.
In this context, economic integration with the European Union is a challenging issue.
Official unemployment rates are very high, while “unofficial” estimates of unemployment
that include the large gray economy could be lower for 20%. Thus, it is obvious that SEEC’s
will benefit from the enlargement. They can export workers to neighbouring countries, even
they can increase net trade, but the costs will be imposed on the current members of the EU.

Table 3
EU-15 Countries’ Imports + BG and RO from South-eastern Europe (2010)
Country
194

Million US$

Percentage of the EU total
imports from the SEEC’s

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

Italy
Germany
Austria
Greece
Romania
Spain
France
Netherlands
United Kingdom
Bulgaria
Belgium
Sweden
Denmark
Portugal
Finland
Ireland
Luxembourg
Total

4,426
3,047
1,680
744
488
411
396
378
344
338
267
106
60
41
27
23
11

34.61
23.83
13.14
5.82
3.82
3.21
3.10
2.96
2.69
2.64
2.09
0.83
0.47
0.32
0.21
0.18
0.09

12,787

Source: IMF, Direction of Trade Statistics.

When it comes to patterns of trade in the past few years, the EU trade with the South-eastern
Europe has been in surplus; expressed in U.S. dollars. The largest trading partner of the
SEEC’s is Italy, which absorbs 43 percent of EU imports from the region and accounts for 33
percent of the exports (Montanari, 2005, p. 7). This suggests that geographical distance plays
a considerable role in determining trade patterns. Table 3 shows that in 2010 Italy accounts
for 34.61% of total imports from SEEC’s to EU-15 (BG+RO). That is the main reason why
SEEC’s trade mostly with their neighbouring partners. Behind Italy are Germany, Austria,
Greece and Romania. It shows that distance between capitals plays considerable role in
international trade. Countries that are away from the SEEC’s take account of around 10% of
total imports.
7.2.The Costs of Enlargement
When it comes to costs of the enlargement, then the most significant ones are: the costs for
public finances, the costs of labour market disruption, and the costs of wage competition
(Grabbe, 2001, p. 33). On the other hand, we have to take into account costs of the expansion
of membership as well. It means that the EU bureaucratic machinery is likely to grow to be
unmanageable. There is the added cost of preparing translations of all EU documents in
language of member state. However, the cost of preparing is in second place, behind the
reaching decisions.
Reaching decisions on a unanimous or qualified-majority basis is likely to become more
difficult (Richard E. Baldwin, 1997, p. 172). South-eastern countries have problems in
reaching decisions in their parliaments, and accession to the EU would make things worse,
since the new members would, very often, go for personal feelings, rather than for well-being
of the society. Voting prolong, and not reaching decision on time, would increase the costs of
bringing people to the parliament, and most important is the time spent while new regulations
could have already taken place.
195

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

Nowadays, the situation of Croatia and its accession to the European Union is related
to neighbouring countries. Many analysts of macroeconomic issues warn saying that if
Croatia enters the EU; many mechanisms will change, especially for Bosnia and Herzegovina
and its exports and imports, because the EU asks for high criteria of product quality. As a
country with cheaper labour, Bosnia is going to be a place where Croatia produces licensed
products that are expensive to be produced in the EU. There are Croatian media, who speak
about negative consequences of accession to the EU. If Croatia joins the Union, it would
become small, political and economical unessential province inside the European giant
countries (R.I., 2012). The European Union is not a single country, but Union of different
people and countries (big and small), where member states represent their own interests on
European level better and more efficiently, then in a case they would, in today’s globalized
world, without the Union.
Table 4
EU-15 Countries’ Exports + BG and RO to South-eastern Europe (2010)
Country
Italy
Germany
Austria
Bulgaria
Greece
Netherlands
Romania
France
United Kingdom
Belgium
Spain
Denmark
Sweden
Ireland
Finland
Portugal
Luxembourg
Total

Million US$

Percentage of EU total
exports from the SEEC’s

6,116
5,428
2,775
1389
1,344
1,332
1,120
904
785
568
548
254
191
149
109
32
15

26.52
23.54
12.03
6.02
5.83
5.78
4.86
3.92
3.40
2.46
2.38
1.10
0.83
0.65
0.47
0.14
0.07

23,059

Source: IMF, Direction of Trade Statistics.

Table 4 shows almost the same results as Table 3. Italy, with 26% is a leader in
exports from SEEC’s, where Germany, Austria, Bulgaria and Greece come after. One half of
the countries from the table have a total of 15% of overall exports that explains again
importance of distance between capitals.
7.3. The Economic Benefits of Enlargement
After enlargement, benefits will accumulate, not only to the member states of the Union, but
also to us, individual citizens. One of the principles on which the EU is based is that it will
196

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

improve the welfare of its member states and their citizens. This process does not have appeal
to the government of the member state which have initiated the accession process; it is also
expected to have an influence on the citizens and their readiness to assist integration process.
The main economic benefits after enlargement are the classical ones generated by integration
processes. Thus, those benefits can be generated from expansion of the Single Market,
strengthening of the Union’s position in global markets and catching up with EU living
standards. When SEEC’s join the Union they will be passing from a free trade area for
manufactured products to a single market. The major benefit is free movement of workers,
which is a highly sensitive issue.
Enlargement will be good for the European economy. Enlargement will add over million
consumers to the single market that will create many new jobs in both the applicant countries
and the incumbent member states. Looking from perspective of European companies, they are
looking forward to seeing more states on the EU single market that would possibly reduce the
risk of doing business in the other half of the continent.
In the long-run, the applicant countries will need help from the EU in order to increase private
investment that will meet the EU environment and transport standards. The main economic
benefit of EU membership is a potential improvement in the investment climate of the Southeast European countries.
When the SEEC’s join the EU, participation in the single market should involve the end of
contingent protection (anti-dumping and safeguards). In1999, the total number of antidumping investigations opened was 86 (Nello, 2002, p. 296). It is obvious that some countries
will be better-off and some worse-off. Bosnia can increase the sale of its domestic tobacco
company`s products if it proves that the Croatian tobacco company is dumping in Bosnia (this
case was speculated in media in 2010).
The EU imposes environmental regulations that take into account environmental quality
protection, production processes, and products (Tupy, 2003, p. 9). One of the significant
benefits will be quality in the countries of South-eastern Europe. It will affect local producers,
and decrease their profits, but more importantly, the customers will be better-off. Besides,
citizens will enjoy higher air quality, water protection, pollution controls, and all other things
that create negative externality. For instance, people from Zenica (Bosnia and Herzegovina)
could have higher air quality, when Environmental Regulation Agency introduces pollution
control to Metal company.
8.GRAVITY MODEL
8.1. Gravity Model of EU-15 (including Bulgaria and Romania) and SEEC’s
The aim of this research is to analyze trade patterns between the EU and SEEC’s. Thus, the
research devotes much time analyzing trade between the European Union and South-eastern
Europe, and it uses one of the most popular models in International Economics – Gravity
model. Therefore, it is attractive to evaluate whether there could be a potential for trade
growth between the two groups. The answer to this question can be obtained by estimating a
gravity model of trade. Such model as gravity is very often applied to research trade patterns
between countries. The model that is used in this research is very similar to one that
Montanari (2005) uses while explanating trade patterns. Gravity model describes bilateral
trade patterns in accordance with socioeconomic and geographical characteristics of the
197

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

countries measured (Montanari, 2005, p. 60). The gravity model is used to measure bilateral
trade flows between EU-15 and SEEC’s.
The countries included in the analysis are divided into two groups. First group consists of the
EU-15, while the other includes countries from the South-eastern Europe. Even if, Bulgaria
and Romania are the members of the SEEC’s, the research uses them as the EU members, to
get more precise results. EU-15 does not include Bulgaria and Romania, but EU-27 does, so
we obtain a real potential of the SEEC’s only if we include two countries into the first group.
Greece was a part of the EU-15, and, therefore, it counts in the first group of the model.
This research uses the data as from 2010. Thus, there are separate indicators for Montenegro
and Serbia. Due to lack of data, the analysis excludes Kosovo.
The equation of the Gravity model is as follows:
(1)
: is the export flows from EU-15 countries (including Bulgaria and Romania) to SEEC’s.
We take data for exports (2010) that are measured in current US Dollars, Millions.
: represents the GDP of the exporting country expressed in current US Dollars,
Millions.
: is the GDP of the importer country expressed in current US Dollars, Millions.
: is the distance between capitals of exporter and importer in kilometres.
: is the dummy which has 1 if exporter and importer share a common border and 0
otherwise.
: is the dummy variable which is 1 if exporter and importer countries use a common
currency and 0 otherwise.
: is a dummy variable which takes 1 for a specific importer and exporter country and
is used to capture the effects of any political, historical or cultural event between two
countries.
: describes error term.
Appendix A mentions data sources used in the model and explain the functions of the gravity
model. The model says that trade increases if countries have the same border, or they use the
same currency. In a case of signing a bilateral agreement, like CEFTA, the trade barriers
decrease and countries trade more.
8.2.The Basic Gravity Model
Table 5, which consists of 4 models, explains patterns of trade between the EU countries and
SEEC’s. In the first model, GDP of exporter country seems to have a positive effect on trade
flows and its coefficient of 1.06 shows that when GDP of exporter increases by 1%, its
exports increases by 1.06%. Similar result is given for the importer, where the coefficient of
0.78 shows the increase in trade flows when GDP of importer increases by 1%. There is
negative coefficient for the distance saying that when countries are further they trade less. In
order to decrease the cost of transportation, those countries trade mostly with neighbouring
198

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

countries, and the model says that 1% increase in distance will decrease trade by 2.39%.
Besides that, the model uses dummies such as common borders and currency. While common
borders have a positive impact on trade with coefficient of 0.53, the common currency has a
negative effect with -0.62. This negative dummy might be a result of not using Euro.
Montenegro is the only one, who is a member of the Euro zone. The value of R2, 86%, shows
that this model explains 86% of the variation in trade flows between the EU and SEEC’s.
Table 5
Gravity Model: Regression Results
Variable

Model 1

lngdpexp

1.06
(0.07)
0.78
(0.11)
-2.39
(0.18)
0.53
(0.35)
-0.62
(0.30)

lngdpimp
lndist
BOR
CUR
bilateral

Model 2

Model 3

1.06
(0.07)
0.78
(0.11)
-2.34
(0.20)
0.58
(0.36)
-0.64
(0.30)
0.00
(0.00)

expfix

1.06
(0.07)
0.89
(0.09)
-2.52
(0.17)

1.06
(0.07)
0.76
(0.11)
-2.33
(0.20)
0.58
(0.36)
-0.74
(0.33)

-0.01
(0.02)
0.04
(0.05)
-11.54
3.36
0.86
0.81
252.13
273.05
101

cons

-11.30
(3.28)

-11.72
(3.35)

0.00
(0.02)
-0.01
(0.05)
-13.08
(3.07)

R2
RMSE
AIC
BIC
N

0.86
0.81
249.31
265.00
101

0.86
0.81
250.81
269.11
101

0.85
0.84
255.99
271.68
101

impfix

Model 4

8.3.Bilateral Effects Model
The equation used to estimate column 2 is:
(2)
where
is a dummy variable which takes 1 for a specific importer and exporter
country and is used to capture the effects of any political, historical or cultural event between
two countries on their trade flows, and all other variables are the same as Equation 1.
Second model has the same coefficient of GDP as the first one. Thus, if there is any increase
in GDP of exporter and importer countries, the trade would also boost. In the second model,
there is a slightly lower coefficient of distance, because the bilateral variable is included. The
199

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

coefficient of common borders says that trade increases if two countries share the same
border.
8.4.Main Effects Model (Exporter and Importer Fixed Effects)
The equation used to estimate Model 3 is:
(3)
where
equals 1 whenever a country is exporting and 0 otherwise and
equals 1
whenever a country is importing and 0 otherwise. These dummies might differ depending on
the countries’ tendency to export and import.
This model does not include dummies and bilateral effects variables, but it has exporter and
importer fixed effects. In general, the model does not give a better picture; R2 is lower than
the first and second models, and even, Akaike`s information criteria (AIC) are worse.
8.5.Main Effects Model with Dummies
When we enlarge Model 3 with common border and common currency variables, the model
becomes the following:

(4)
The model has a higher R2 with 86%. The distance has a negative coefficient as usual. The
model says that neighbouring countries trade more with each other than other countries.
The results show that trade increases with economic size, measured by GDP in our model
while it decreases with distance between them. This kind of model could be very useful for
analyzing international trade; it is seen in the straightforwardness of explanation of trade
patterns that can be used to test the impact of new policy measures.
8.6.Results
Measuring overall economic impact of EU-enlargement is almost impossible task given that
there are problems of global economy, uncertainties, which could change the whole process.
The main benefits of enlargement for incumbent countries are not economic, but rather they
are related to stability and security. The economic benefits to the EU-27 will not be
significant in the short-run, neither the costs. However, in the long-run the whole European
economy will gain significantly from enlargement.
Table 5 presents four different models, where each of them consists of various variables. Each
model uses GDP of exporting and importing countries. By becoming a part of the single
market, there would be increase in the outputs and the growth of imports and exports that lead
to an increase in GDP. As a result, according to the results of our models, if SEEC’s access
the union, GDP’s will become higher, trade will increase, and at the end export flows become
larger. Therefore, households would benefit from the European enlargement and from the
200

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

removal of tariffs. Removal of tariffs would lead to reduction in import prices, and will affect
the allocation of household income.
The removal of trade barriers would have a clear impact on price setting. As a result, the
scenario would be a reduction in prices. Conversely, the increased demand should be taken
into account, together with the removal of trade tariffs, which at the end will provide a
positive output.
The European Union has to manage enlargement appropriately if it wants to gather all the
potential benefits. Flourishing management depends on developing political strategy that is
behaving in interest of enlargement as a way of gains for the public and for interest groups.
Comparing previous enlargements and next ones, there are significant differences. For
instance, Greece, Portugal and Spain became members of the EU before the single market and
monetary union programs were implemented. Thus, they became members when the EU was
a much less integrated and smaller market. Today, the EU economy is experienced and it has
a faster growth trade than it was in time of accession period of Portugal and Spain.
The main benefits of enlargement for the SEEC’s are not only economic, but they are more
oriented to provide stability and security. The major risks are concerns of large migration
flows, wage competition, and the costs to the EU’s budget.
Results show that there is a room for trade to increase, especially, in neighbouring countries.
SEEC’s would have to invest in new technology in order to be competitive for the EU single
market.
9.POLICY SUGGESTIONS
Yugoslavia was located in the South-eastern Europe, in the heart of the Balkan Peninsula. The
heart connected two continents, Europe with Asia, and was the gate to the Black Sea. The
country had resources and good geographical position to grow and become super power of
Europe. Unfortunately, the country had not been unable to run resources properly.
The economy of Yugoslavia was oriented toward agriculture, so the whole national prosperity
depended on the development of agriculture. The character of Yugoslavia is seen in the fact
that out of 24,849,425 hectares of the whole territory, 11,500,000 hectares, or 46 per cent,
account for agriculture (Roucek, 1933, p. 414). The country produced hemp, cotton, hops,
opium, tobacco, etc. All these, and many other products, were high quality. The important
thing is that no single part of Yugoslavia produced all these products. The country consisted
of 7 parts that are today independent countries (Bosnia and Herzegovina, Croatia, Kosovo,
Macedonia, Montenegro, Slovenia, and Serbia). Hence, each part of Yugoslavia was famous
for the production of a particular good. Exports went mainly to France, Germany, and
Switzerland. The interesting thing is that each province of Yugoslavia has its own special
kinds of fruits. Different fruits and variety of foods and beverages are produced in a way that
is traditional for every region of the country. Besides that, there were plenty of mineral
resources such as coal, iron, copper, etc. Yugoslavia could, by its richness of iron, take a place
as one of the leading countries in Europe. The main importers of Yugoslavian products were
Italy (28.31%), Austria (17.68%), Germany (11.66%), Hungary (7.18 per cent), Greece
(6.05%), etc. (Roucek, 1933, p. 420). The main products of exports were wood, cement,
cereals, and ores.
The economic situation of Yugoslavia gave a real situation of the country, the country`s
potential, and prosperity. Today, the former parts of Yugoslavia need a stabilization process
201

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

that would bring them to previous conditions. It is obvious that countries need capital and
investment in infrastructure.
Taking all of these facts into consideration, a solution for the SEEC’s, among the one of the
European Union, might be the creation of the Balkan Union. The union would consist of 7
countries (Albania, Bosnia and Herzegovina, Croatia, Kosovo, Macedonia, Montenegro, and
Serbia). In that case, the members of the Union would be oriented towards a kind of closed
economy. They would trade more between each other, and try to decrease imports from
countries out of the Balkan Union.
The construction of the Balkan Union would look like the European Union. There would be
institutions to regulate the union, but mainly, ones for culture, education, and trade. If each
member specializes in production of particular goods and services, and achieves comparative
advantage with economies of scale, then that product would be easy to sell, or to exchange for
something else, of course from one of the Union members.
The Union would need to have a supervisor. Currently, the only state that has incentives and
interest to regulate these countries is Turkey. If all countries agreed, Turkey would be the
supervisor and manager of the Union. Even more, as a state with high FDI in South-eastern
Europe, Turkey will be responsible for infrastructure, growth and development of the Union.
Developing countries, as “members” of the Balkan Union, must diversify their productive
structure and strengthen domestic demand. People should buy more domestic products, and
stop buying the similar foreign products, thinking foreign is better. Still, there are many
foreign products that are better, but at least beverages and foods have to be bought from
domestic producers.
Today, the countries not only depend on agriculture and manufacturing, but on tourism. Thus,
economic policy for each country should be taking advantages of potential, which they have.
There are countries such as Bosnia and Herzegovina, and Montenegro that should be oriented
towards tourism, specifically winter and summer tourism.
Recently, Minister of Turkey, Rifat Sait has called for establishing of Balkan Parliament,
where, besides Turkey, there would be Albania, Bosnia and Herzegovina, Bulgaria, Greece,
Kosovo, Macedonia, Montenegro, Romania, and Serbia (Bojadžić, 2011). With headquarters
in Izmir, the initiative of Turkey and its leading party, AK party, would welcome academics,
NGO, politicians, journalists, writers, representatives of private sector, etc. who could invest
money in development of Balkans. The idea might seem unachievable, where some countries
could reject supervision of Turkey, but it is the only country that does not look at historical
problems that occurred on the Balkans, and it wants to establish regular connections with each
state from the Balkans.
10.CONCLUSION
This study discusses economic costs and benefits of South-eastern enlargement of the
European Union. The idea of the united Europe is not a recent idea. Thus, the research starts
with brief overview of the idea of the European Union and its objectives. The purpose was to
maintain a peaceful and prosperous life throughout Europe. At the beginning of the fifties in
the last century, the EU has signed many treaties and brought new policies that would ensure
a zone for free capital movement. Besides that, the Union had five enlargements and
introduced a common currency. Creation of a single market, which today consists of 501
million of consumers, is to provide a better life for every citizen.
202

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

Next enlargement is of the South-east European countries. After accession of the SEEC’s, the
European Union will have more than 30 members, with diverse cultures, histories and
languages. Can such a diverse union of nations create a common political “union”? The EU
was a trial to unify Europe, but it is obvious that it is difficult, since it is impossible to connect
Germany or Sweden with, let say, Mediterranean, and there is no surprise for the failure of
Greece and Italy. Can citizens of the EU establish a sense of being European while deeply
belonging to their country? In essence, they can, if incumbent members follow the example of
the first European Community. The moral legitimacy of the European Community is based on
compromise, while consolidating the peace between former enemies. It stayed within the
principle that all members, large and small, had equivalent rights and respected minorities.
Therefore, the next enlargement should bring equivalence to small countries, and more
important, stable market. EU member states account for almost 1/3 of the entire global
economy, so in that sense the common market is the preferable mean to the global market.
The research uses the Gravity model to test the trade relations between EU-15 (inclusive
Bulgaria and Romania) and SEEC’s. After adding dummy variables such as common borders
and currency to the model, the results show that there is a space for growth of trade between
them. Trade is positively affected by GDP of exporters and importers. Larger GDP means
higher production and increased ability for trade. However, distance has negative effect, and
in this model it decreases trade if country is far away from partner. On the other hand,
common borders positively affect trade, so by diminishing trade barriers, quotas, and taxes
countries could stimulate trade to grow. Since Montenegro is the only one who uses Euro, the
currency seems to affect trade negatively, and this shows that if any of SEEC’s adopts Euro it
would stimulate trade.
Current situation of the EU shows that high unemployment is present in many EU countries,
so the EU has to be focused on achieving growth and creating jobs. In order to make its
economies more dynamic and increase social cohesion, Europe must invest more in research
and innovation, education and training. Thus, President of the European Commission
presented a strategy for next 10 years, which is called the Europe 2020 strategy.
REFERENCES
Bojadžić, J. (2011, November 29). Dnevni avaz. Retrieved November 30, 2011, from
http://www.dnevniavaz.ba/vijesti/teme/67662-sta-se-krije-iza-inicijative-poslanika-rifatasaita-iz-izmira-erdoganova-partija-predlaze-osnivanje-parlamenta-balkana.html
Borchardt, K.-D. (2010). The ABC of the European Union law. Luxembourg: Publications
Office of the European Union.
Delegation of the European Union to the United States of America. (2011). The European
Union: A Guide for Americans. . Washington: Delegation of the European Union to the
United States of America.
Fontaine, P. (2010). Europe in 12 lessons. Luxembourg: Publications Office of the European
Union.
Grabbe, H. (2001). Profiting from EU Enlargement. Centar for European Reform, 1-65.
Montanari, M. (2005). EU Trade with the Balkans: Large Room for Growth? Eastern
European Economics, 59-81.

203

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

Nello, S. S. (2002). Preparing for Enlargement in the European Union: The Tensions between
Economic and. International Political Science Review, 291-317.
R.I.
(2012,
January
4).
Index.
Retrieved
January
9,
2012,
http://www.index.hr/vijesti/clanak/vesna-pusic-bez-cega-sve-ostajemo-kazemo-li-neeu/592030.aspx

from

Richard E. Baldwin, J. F. (1997). The Costs and Benefits of Eastern Enlargement: The Impact
on the EU and Central Europe. Centre for Economic Policy Research, Center for Economic
Studies, 125-176.
Roucek, J. S. (1933). Resources of Yugoslavia. Economic Geography, 413-425.
Schneider, C. J. (2007). Enlargement Processes and Distributional Conflicts: The Politics of
Discriminatory. Public Choice, 85-102.
Schneider, T. P. (2007). Discriminatory European Union Membership and the Redistribution
of Enlargement Gains. The Journal of Conflict Resolution, 568-587.
Tupy, M. L. (2003). EU Enlargement: Costs, Benefits, and Strategies for Central and Eastern
European Countries. Policy Analysis, 1-20.
APPENDIX
DATA AND VARIABLES USED FOR THE ESTIMATION OF THE GRAVITY MODEL
The reporting countries that are used for the analysis are the members of the EU-15 (Austria,
Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,
Netherlands, Portugal, Spain, Sweden, and United Kingdom). Since the Belgium and
Romania are not parts of the EU-15, they are not included in the South-east European
countries, but they are attached to the first group, the EU-15. There are six partner countries:
Albania, Bosnia and Herzegovina, Croatia, Macedonia, Montenegro, and Serbia.
The data GDP and population were taken from the World Bank’s World Development
Indicators. First two figures are measured in current US Dollars, Millions. Bilateral trade
flows, imports and exports, were taken from the IMF’s Direction of Trade Statistics, year
2010. Thus, the reference year for estimating potential trade between the EU-15 + (BG and
RO) and the South-east Europe is 2010.
Distances between capital cities of the countries were taken from
www.viamichelin.co.uk. The most used routes for transportation of goods by trucks and by
ship (in case of Italy and its partner countries) are taken for analysis.
Dummy variable BOR takes a value of 1 if country of EU-15 and its partner share a
common border, 0 otherwise.
Dummy variable CURR takes a value of 1 if country of EU-15 and its partner uses a
common currency, 0 otherwise.

204

�</text>
                  </elementText>
                </elementTextContainer>
              </element>
            </elementContainer>
          </elementSet>
        </elementSetContainer>
      </file>
    </fileContainer>
    <elementSetContainer>
      <elementSet elementSetId="1">
        <name>Dublin Core</name>
        <description>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/.</description>
        <elementContainer>
          <element elementId="79">
            <name>Extent</name>
            <description>The size or duration of the resource.</description>
            <elementTextContainer>
              <elementText elementTextId="18237">
                <text>1325</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="50">
            <name>Title</name>
            <description>A name given to the resource</description>
            <elementTextContainer>
              <elementText elementTextId="18238">
                <text>Economic Costs And Benefits Of The Eu Enlargement: The Impact On The Eu And  Seec’s</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="96">
            <name>Author</name>
            <description>Author</description>
            <elementTextContainer>
              <elementText elementTextId="18239">
                <text>Kurtagić , Haris</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="94">
            <name>Abstract</name>
            <description>A summary of the resource.</description>
            <elementTextContainer>
              <elementText elementTextId="18240">
                <text>The South-eastern enlargement of the European Union will be the sixth enlargement since  establishing the European Community in 1957. The research uses the Gravity model, and  measures the factors that have an influence on trade. The Gravity model involves coefficients that explain the pattern of trade with GDP, geographical distance, population, and several  dummy variables. Trade that is explained by Gravity model includes two regions, EU-15  (inclusive Bulgaria and Romania) and SEEC’s. The reason why Bulgaria and Romania are  included, even if they are part of the SEEC’s, is to acquire as accurate pattern of trade as  possible. Comparing the data from 2010, the gravity model describes trade flows between 23  countries. Thus, the purpose of this study is to analyze trade flows between two regions.  Taking into consideration the costs of enlargement, this research examines the effects of the  trade, its significance on the development of SEEC’s after enlargement, well-being of  countries that are not part of the EU, as well as it offers a solution for the South-east European  countries. Therefore, the solution that this research proposes is a model based on creation of  the Balkan Union.  Keywords: EU-Enlargement, Gravity model, South-eastern Europe, European union, Trade  flows.</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="40">
            <name>Date</name>
            <description>A point or period of time associated with an event in the lifecycle of the resource</description>
            <elementTextContainer>
              <elementText elementTextId="18241">
                <text>2012-05-31</text>
              </elementText>
            </elementTextContainer>
          </element>
          <element elementId="97">
            <name>Keywords</name>
            <description>Keywords.</description>
            <elementTextContainer>
              <elementText elementTextId="18242">
                <text>Conference or Workshop Item
PeerReviewed</text>
              </elementText>
            </elementTextContainer>
          </element>
        </elementContainer>
      </elementSet>
    </elementSetContainer>
    <tagContainer>
      <tag tagId="81">
        <name>H Social Sciences (General),HB Economic Theory,HG Finance,HJ Public Finance</name>
      </tag>
    </tagContainer>
  </item>
</itemContainer>
