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                <text>The Errors of Noun Case Morphemes (suffixes) Kyrgyz Students make While Learning Turkish Language of Turkey and Solutions to them (Kırgızların Türkiye Türkçesi Öğrenirken Ad Durum Biçimbirimleriyle İlgili Yaptıkları Hatalar ve Çözüm Önerileri)</text>
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                <text>Teaching Turkish as foreign language is a new and rapidly developing area. Everyone agrees that teaching Turkish to cognate Turks and teaching Turkish to the foreigners of Turkish is different from each other in various aspects. Despite this acceptance, preparing  special books for  cognate Turk is not still enough .In other words, the realty, which we should prepare different course books and materials for cognate Turks, is not taken seriously into consideration, unfortunately.  While teaching Turkish as foreign language, each grammatical unit must be examined separately and the common error should be corrected via intensive exercises. In this study, we have detected the errors of noun case morphemes Kirghiz students who are learning Turkish make.  Then, we tried to find out the causes of these errors and we seek solutions to eliminate them. In this way we aimed to help the teachers who are teaching Turkish language in Kyrgyzstan. The errors that the students make are limited as “the errors in theme of noun case morphemes” and they were analyzed in this study</text>
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	&#13;  

Journal of Economic and Social Studies

The EU Cohesion Policy’s Impact on Regional Economic
Development: The Case of Bulgaria

Monika Moraliyska
University of National and World Economy
Bulgaria
mmoraliyska@unwe.bg

Abstract:	&#13;   The EU cohesion policy has been a major driver of change
in the Member States, leading to positive effects as growth in
employment, economic development and modern infrastructure.
Since its EU accession in 2007, Bulgaria has been benefiting from
the Union’s investment and structural funds at an increasing speed.
Research shows that not only these funds contribute significantly to
the Bulgarian economy, but they seem to be its major driver.
Without them, the country would have recorded a zero growth in the
EU’s financial framework 2007-2013, and could be dumped in an
economic and social crisis. This paper explores the informational
sources that assess the influence of the EU cohesion policy and its
effects on Bulgaria. The goal of the paper is to make objective
conclusions about the impact of the EU cohesion policy on the
Bulgarian economy and how it has affected the level of economic and
social cohesion between the country’s regions and the most advanced
EU regions. For that purpose, the method of comparative analysis is
applied, as well as a historical analysis..

	&#13;  

Volume 7 | Issue 1 |

Keywords:	&#13;  EU Cohesion policy,
Bulgaria, regional economic
development
JEL Classification: 05, F36,
H77
Article History
Submitted: 16 February, 2017
Resubmitted: 15 June 2017
Accepted: 11 September 2017
http://dx.doi.org/10.14706/JECO
SS17713

5

�Monika Moraliyska	&#13;  

Introduction
Overview of the EU’s Cohesion Policy
The cohesion policy of the European Union aims to support the job creation,
business competitiveness, economic growth, sustainable development, and overall
quality of life in the European regions and cities. It is implemented through three
main funds: the European Regional Development Fund, the Cohesion Fund and
the European Social Fund. Together with the European Agricultural Fund for Rural
Development and the European Maritime and Fisheries Fund, they make up
the European Structural and investment funds. These funds invest in different areas
with the common objective to reduce the economic and social disparities among the
EU Member States. The cohesion policy complements the other EU policies dealing
with education, employment, energy, research and innovation, the environment, the
single market and the like.
The budget of the Cohesion Policy for 2014-2020 is 351.8 billion euros - one third
of the EU’s total budget, which puts it on the second place after the Union’s
Common Agricultural Policy.
The EU’s regions (on NUTS2 leveli) are classified as “less developed” (in which the
GDP per capita is less than 75 percent of the EU average), “in transition” (in which
the GDP per capita is 75-90 percent of the EU average) and “more developed” (in
which the GDP per capita exceeds 90 percent of the EU average). The European
Union can provide 50-85 percent of the total financing of a project, with the poorest
regions getting the highest co-financing rates. The potential beneficiaries of the
funds include public institutions, companies, universities and nongovernmental
organizations.
For 2014-2020 the largest portion of the funds - 182 billion euros - will be used for
the “less developed” regions, which represent 27% of the population in the EU.
These include the bigger part of Poland, the Baltic States, the Czech Republic,
Slovakia, Hungary, Romania, Croatia, Slovenia, Bulgaria, Portugal, as well as
southern Italy and northern Greece. For many of these countries, the cohesion
instruments are a key part of their economies (especially Poland, Romania, the
Czech Republic, Slovakia and Hungary).
The EU’s cohesion policy is very important because it is the investment framework
needed to meet the goals of the Europe 2020.

6

Journal of Economic and Social Studies

�The EU Cohesion Policy’s Impact on Regional Economic Development:
The Case of Bulgaria	&#13;  

	&#13;  
Strategy for smart, sustainable and inclusive growth in the Union. It is the EU's
major investment tool for creating growth and jobs, tackling climate change and
energy dependence, and for reducing poverty and social exclusion.
This policy underpins the European solidarity, because the bigger part of its funding
is concentrated on less developed countries and regions to help them catch up and its
goal is to reduce the economic, social and territorial disparities in the Union. In
addition to that, the EU’s cohesion policy cushioned Member States from the worst
effects of the economic and financial crisis. It also was of critical importance at a
time of sustained fiscal consolidation and according to estimates, without it the
much-needed public investment in the less developed Member States would have
collapsed by an additional 45% during the crisis (European Commission, 2014a).
The EU’s cohesion policy is also considered as a catalyst for further public and
private funding, because it obliges Member States to co-finance the projects with
funds from their national budgets, and also provokes investors’ confidence.
The EU’s cohesion policy is also criticized. The main argument for its existence is
that the funding it provides would eventually raise the different regions in the EU to
the same level of economic development. But it seems like after decades of
integration and billions of euros' worth of EU investment, a very modest level of
economic cohesion in Europe is achieved.
The reasons for the limited positive impact of the EU’s cohesion funds on the
economic and social coherence of the Union are different. A major problem in
numerous of the Member States is the high level of corruption, which prevent
cohesion funds from being exploited exactly where they would be most useful.
Besides that, Member States in many countries, particularly those in Southern and
Eastern Europe, still experience difficulties in absorbing these funds. In some cases,
the national and local authorities lack the know-how and institutional framework to
successfully apply for these funds, while in others the countries lack the capacity to
co-finance the projects supported by the European Union.
Some experts think that the EU’s cohesion policy is too complex and lacks clear
goals, and that the monitoring of the absorption of these funds has been
controversial, because a full control of the use of the money is impossible (Stratfor,
2015). There are often cases of corruption, where state officials in Member States are
bribed to award EU-financed contracts. In other cases, firms report inflated costs.
There are also cases when infrastructure projects are undertaken just because money
is available, and they are consequently abandoned for lack of use.

Volume 7 | Issue 1 |

7

�Monika Moraliyska	&#13;  

The future development of the EU’s cohesion is unknown, as due to the expected
Brexit, the estimated budget of the Union is going to be decreased significantly, and
the discussions between the Member States are likely to lead to a decision towards
cutting particularly the cohesion policy’s budget. Taking other conditions as equal,
the biggest challenge would be to ensure that its resources are used in the most
efficient way, helping the Member States to emerge from the continuing crisis and
the least developed countries to catch up faster with the others. With a budget of
over €450 billion (including national co-financing) for 2014 - 2020, the European
cohesion policy is expected to continue to be the main investment tool of the Union
and to make the largest contribution for supporting the SMEs, R&amp;D and
innovation, education, low carbon economy, the environment, the fight against
unemployment and social exclusion, the infrastructure and Europe 2020 Strategy’s
objectives for smart, sustainable and inclusive growth.
Several sources provide information on the European cohesion policy’s effects and
the extent to which it is successful in achieving these objectives. Firstly, there is
quantitative information on the direct outcomes of the projects and measures
monitored by the Managing Authorities responsible for the programs. These
indicators are in the form either of the output produced (f.e. number of new
businesses supported to start up) or the results which they brought to (f.e. the
time/travel costs saved as a result of a new road opened). Secondly, there are
evaluations of particular programs, which assess the effectiveness of the funding
provided in achieving both the immediate objective of the measure and the wider
aim of strengthening the development potential of the places concerned. Thirdly,
there is an empirical evidence from the macroeconomic models that simulate how
the economies function to estimate the effect of the Cohesion Policy, mainly in
terms of main economic indicators, f.e. GDP, employment and trade. This they do
by simulating the way the economy would have developed in the absence of the
Cohesion Policy. There is also research (mainly econometric models) of independent
organizations.

Key Effects of the EU Cohesion Policy in the Period 2007 - 2013
The European Commission has analyzed the effects of the EU cohesion policy for
the programming period 2007 - 2013 and concluded that it has substantially
contributed to the investments in growth and employment in the Member States,
especially when they cut spending in order to balance their budgets in times of crisis.
The Commission’s estimates show that without the EU Cohesion policy the
investments in the most-affected by the economic crisis Member States would have
8

Journal of Economic and Social Studies

�The EU Cohesion Policy’s Impact on Regional Economic Development:
The Case of Bulgaria	&#13;  

	&#13;  
fallen by additional 50%, particularly in the Member States, which count
significantly on the EU financing. In some of them the cohesion funding represents
more than 60% of their public investment budget – Slovakia (over 90%), Hungary
(less than 90%), Bulgaria (over 80%), followed by Lithuania, Estonia, Malta, Latvia,
Poland and Portugal (European Commission, 2014b). Therefore in 2013, the
Commission acted on the crisis by redirecting some of the cohesion funds - more
than EUR 45 billion, to support measures against unemployment and social
exclusion and in favor of research, business support, sustainable energy, social and
education infrastructure.
The empiric evidence suggests that the Cohesion policy funds have had a significant
positive impact on the economic and social development of the EU Member States
and brought to numerous positive effects in the programming period 2007-2013.
In the first place, the cohesion policy of the EU has led to the creation of jobs and
economic growth. The income has increased in the poorest EU regions with GDP
per capita growing in these areas from 60.5 % in 2007 to 62.7 % of the EU average
in 2010 (European Commission, 2016a).
As a direct result of the cohesion policy, 769,900 new jobs were created in 20072013 (Figure 1), and 2.4 million participants in ESF actions supporting access to
employment found a job within 6 months in 2007-2010 (European Commission,
2014b). In addition to that 225,560 small and medium-sized enterprises received
direct investment aid and more than 274,000 jobs were created in SMEs. 97,640
start-ups were supported (Figure 2).
Figure 1: Number of EU Aggregate
Jobs Created by the Cohesion policy
	&#13;  

Volume 7 | Issue 1 |

Figure 2: Number of Start-Ups
Supported by the Cohesion policy
	&#13;  

9

�Monika Moraliyska	&#13;  

Positive effects were also created by the 72,920 research projects that were supported,
and the 35,125 new long-term research jobs that were created. 27,800 co-operation
projects were financed, and 5 million more EU citizens were covered by broadband
connectivity. Concerning the environment, 11,050 projects connected with the
cities’ sustainability were financed. Water supply systems were modernised,
benefiting 4.2 million citizens (Figure 3).
In terms of transport infrastructure, 3,752 km new roads were built (Figure 4) and
20,104 km were reconstructed. Also 335 km of railways were built and 3,128 km
were reconstructed. In addition to that, more than 5.5 million citizens were served
by waste water projects.
Figure 3: Number of People Served by
Water Projects Financed by the Cohesion
Policy

Source: European Commission, Regional Policy,
https://cohesiondata.ec.europa.eu/en/dataset/CoreIndicators-2007-2013-EU-Water-projects-Chart/vziv5wz2

Figure 4: Km of New Roads Built by the
Cohesion Policy

Source: European Commission, Regional Policy,
https://cohesiondata.ec.europa.eu/en/dataset/CoreIndicators-2007-2013-EU-new-roads-Chart/kb97-pmsd

Monfort, Piculescu, Rillaers, Stryczynski, and Varga (2017), cited by the latest
European Commission’s paper assessing the EU cohesion and rural development
policies during the period 2007 - 2013 and their impact on the European economyii,
provide further evidence that the cohesion and structural funds brought significant
gains and contributed to the achievement of a more balanced structure of the
Member States’ economies. The effects have resulted in increased GDP, which was
on average 4.1% higher in the countries that joined the EU after 2004. The highest
impact was found in Hungary (+ 5.3%), Latvia (+ 5.1%) and Poland (+4.3%)iii.
Other positive effects in the long-term are associated with a significant positive
impact on the factors’ productivity, as a result of the direct investments in
technology but also because of the improved business conditions encouraging
investment in tangible and intangible assets.

10

Journal of Economic and Social Studies

�The EU Cohesion Policy’s Impact on Regional Economic Development:
The Case of Bulgaria	&#13;  

	&#13;  

Economic and Social Cohesion of the Bulgarian Regions
Even though the EU’s cohesion policy is contributing to the growth goals of the
Europe 2020 Strategy by creating jobs and reducing disparities across Europe, it is
far from reaching its goals and the case of Bulgaria is an example that illustrates this
policy’s low efficiency.
Even though the legislative framework of Bulgaria’s regional policy is harmonized
with the Europe’s ten years after the country became an EU member, it hasn’t
shown a big progress in reaching even the EU average levels. The comparison covers
both – the economic development in terms of GDP and the social development
measured by the Social Progress Index (SPI).
The comparison of the Bulgaria’s six NUTS 2 regions to the EU28 average in terms
of generated GDP as purchasing power per inhabitant shows that the poorest region
in Bulgaria (and in the whole EU), Severozapaden region (Northwest region), is
under one third of the EU average, and almost 7 times less than the richest one – the
region of Hamburg, Germany (Table 1).
Table 1: GDP by Selected NUTS 2 Regions in the EU in 2014
Country

Severozapaden
Yuzhen tsentralen
Severen tsentralen
Severoiztochen
Yugoiztochen
Yugozapaden
European Union
(28 countries)
Wien
Noord-Holland
Praha
Île de France
Hamburg

Code

Gross domestic product at
current market prices
(Purchasing Power Standard per
inhabitant, Euro)

BG31
BG42
BG32
BG33
BG34
BG41
EU28

8,200
8,700
9,300
10,800
10,800
20,600
27,500

Gross domestic product at
current market prices
(Purchasing Power Standards
per inhabitant in percentage
of the EU average)
30
32
34
39
39
75
100

AT13
NL32
CZ01
FR10
DE60

43,500
44,300
47,500
49,000
56,600

158
161
173
178
206

Source: Eurostat, 2016

At the same time, the draft version of the regional Social Progress Indexiv shows
significant variations within and between EU Member States in terms of access to

Volume 7 | Issue 1 |

11

�Monika Moraliyska	&#13;  

health care, quality and affordability of housing, personal safety, access to higher
education, environmental pollution, etc.
The SPI is an aggregate index of 50 social and environmental indicators that capture
three dimensions of social progress: Basic Human Needs, Foundations of Wellbeing,
and Opportunity. The index framework is identical to the one of the global SPI. It
includes all 272 European regions and scores absolute performance on a 0-100 scale
for each of the indicators included to measure the twelve social and environmental
(not economic) indicatorsv.
The Southeasteuropean states, among which the Bulgarian ones are, are among the
most undeveloped in social terms (Figure 5).
Figure 5: Map of the SPIin the EU in 2016

Gross domestic product
(GDP) per inhabitant, in
purchasing power standard
(PPS)
Gross domestic product
(GDP) per inhabitant, in
purchasing power standard
(PPS), by NUTS level 2
region, 2013 (% of the EU-28
average, EU-28 = 100) (¹)

Source: European Commission, 2016b.

The SPI is the lowest in Bulgaria and Romania. The Bulgarian Southeast region has
the lowest SPI value (38,7), less than half of the highest value of 81,3 in Övre
Norrland, Sweden (Table 2).

12

Journal of Economic and Social Studies

�The EU Cohesion Policy’s Impact on Regional Economic Development:
The Case of Bulgaria	&#13;  

	&#13;  
Table 2: Social Progress Index in selected EU regions (NUTS2) in 2016
Region’s
Region’s name
Basic
Foundation
Opportunity
ID
BG34
Yugoiztochen
42.5
45.8
28.8

EU SPI
38.7

BG31

Severozapaden

44.7

47.0

28.0

39.4

RO31

Sud - Muntenia

43.9

43.3

35.8

40.9

RO22

Sud-Est

43.3

45.5

37.2

41.9

RO21

Nord-Est

43.4

42.3

41.8

42.5

BG42

Yuzhen tsentralen

47.9

49.7

32.7

43.1

BG33

Severoiztochen

46.3

46.7

40.4

44.4

BG32

Severen tsentralen

47.3

49.3

38.7

45.0

RO41

Sud-Vest Oltenia

47.9

45.9

42.2

45.3

RO11

Nord-Vest

49.1

47.9

45.6

47.5

RO12

Centru

51.2

50.1

44.0

48.4

ITF3

Campania

62.0

48.1

37.3

48.6

RO42

Vest

51.9

49.4

45.5

48.9

ITG1

Sicilia

62.0

49.6

37.1

49.1

BG41

Yugozapaden

52.7

54.8

41.3

49.4

FI20

Åland

………….
88.6
72.8

79.8

80.3

DK04

Midtjylland

87.6

73.2

80.3

80.3

FI1B

Helsinki-Uusimaa

84.6

74.0

82.6

80.4

DK01

Hovedstaden

86.6

71.9

84.6

80.9

SE33

Övre Norrland

89.4

73.9

81.0

81.3

Source: European Commission, 2016b

It is also evident that all six Bulgarian regions are among the 15 least developed
regions in the EU in terms of social progress. This is an indisputable empirical proof
that the EU’s cohesion policy goals are far from achieved. On the other hand, its role
as a major factor for regional development should not be exaggerated. The initial low
level of economic and social progress and still ongoing transition to modern
economy in Bulgaria is another reason why the positive progress of the country
towards EU average levels remains almost invisible.

Volume 7 | Issue 1 |

13

�Monika Moraliyska	&#13;  

Estimated Effects of EU’s Cohesion Policy in Bulgaria
There are several different sources providing information about the effects of the
European cohesion policy on Bulgaria. Even though the analyses made by different
official instuitutions and organizations show overall dominating positive impact of
the EU funds on the Bulgarian economy, it cannot be claimed with certainly that the
EU’s cohesion policy has achieved its main goal aim in Bulgaria – to support the
country in overcoming the enormous economic and social underdevelopment that
differentiates the Bulgarian regions from the other European regions.
The allocation from the Cohesion Policy funding for Bulgaria in the 2007 - 2013
period was €6.9 billion. According to the European Commission, it has helped the
country to: create more than 1,300 jobs; serve over 280,000 more people by waste
water projects; enable more than 137,000 persons to acquire or upgrade their
vocational qualification and over 178,000 persons to acquire key competencies;
implement many transport infrastructure projects (incl. Sofia metro extension, Sofia
Airport); improve urban transport for 1,289,744 citizens, mainly in the 6 biggest
cities (Sofia, Plovdiv, Varna, Burgas, Pleven, Stara Zagora); improve educational
infrastructure for over 30,000 students; enable more than 398,000 m² of renovated
parks, pedestrian areas, bicycle lanes, playgrounds; provide scholarships to 172,000
students; provide social services in a family environment for more than 51,000
persons; modernise 20 cultural facilities; invest in energy saving measures in public
buildings and schools (European Commission, 2015).
A trustworthy model to estimate the effects of EU’s cohesion policy in Bulgaria is the
macroeconomic model SIBILA - a SImulation model of the Bulgaria’s Investment in
Long-term Advancevi (“long-term" because it evaluates the effects of the investment
in human capital, ICT, R&amp;D, infrastructure and physical capital, which are factors
for long-term economic growth). It is based on the EU approaches to modeling of
the impact of structural instruments, as well as on modern macroeconomic theory
and it is adapted to the Bulgarian specifics. It consists of 170 equations, including
econometric estimates, macroeconomic identities and calibrated dependencies (based
on historical links and applying existing knowledge (ECORYS – CPM – NEW i”,
2011).
The main objective of the model is to assess the net effects of the Structural and
Cohesion Funds (SCF) on the Bulgarian economy (key macroeconomic indicators),
as well as to support the decision-making process concerning the allocation of funds
in the next programming period. It examines the economic development in two
scenarios: baseline scenario in which there is no SCF, and an alternative scenario that

14

Journal of Economic and Social Studies

�The EU Cohesion Policy’s Impact on Regional Economic Development:
The Case of Bulgaria	&#13;  

	&#13;  
considers the SCF funding. The difference between the results of these two scenarios
in terms of economic indicators’ performance measures the net impact of SCF.
In 2017, the Ministry of Finance of Bulgaria presented a report with detailed
calculations of the SIBILA model, encompassing the period of Bulgarian
membership in the EU from 1 January 2007 till the end of 2016. It showed that the
overall effect of the EU investments on the added value of the Bulgarian economy is
highly positive:
- A cumulative increase of 11.5% of GDP by the end of 2016 in comparison to the
baseline scenario with no EU funds (mainly through the positive effects of
government spending on the production, and hence on the induced changes in
private consumption and investments);
- A cumulative increase in the volume of private investment by 22.3% by the end of
2016 compared to a scenario without EU funds (a large part of the measures under
the operational programs are intended for investment; they also lead to additional
investments by the business);
- Reducing unemployment and boosting employment (as a result of the absorption
of the EU funds by the end of 2016 the unemployment rate in the country was 6.5
percentage points lower than it would have been without the inflow of these funds.)
At the same time, the number of employees in the economy increased by 15.2%
towards the end of 2016 compared to the scenario in the absence of EU funds
(almost 390 thousand employed people more);
- Higher wage levels in the country - by the end of 2016 the cumulative increase in
average wages compared to the scenario without EU funds was expected to reach
14.9%;
- Increased export potential of the Bulgarian enterprises (By the end of 2016,
Bulgaria's exports would be by 1.7% higher compared to the scenario without EU
funds. The growth of the export potential is a long-term effect and is related to the
improvement of the quantity and quality of the production factors, which in turn
leads to an increase of the economic growth of the country);
- A positive impact on the state of public finances (increased tax revenues outweigh
the spending related to the absorption of EU funds, such as providing co-financing
for some of the projects). By the end of 2016, the cumulative positive effect on the
budget balance was 2.1 percentage points of GDP. The positive impact is expected
to be sustained in the longer term as the increased production potential, higher
employment and higher income imply higher values of the tax base, and hence
higher tax revenues).

Volume 7 | Issue 1 |

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�Monika Moraliyska	&#13;  

The positive impact of the EU funds on the the country's economic development
has been highlighted by eminent NGOs working in the economic field in Bulgaria.
They stress on the fact that in the period between the start of the EU’s membership
talks in 1999 and the country's accession to the EU in 2007, the GDP per capita in
terms of purchasing power has increased from 27% to 40.8% of the EU average, and
in 2016 it reached 48.1%. The EU’s cohesion policy has also helped to minimize the
weight of the global crisis and has kept the unemployment rate in Bulgaria low,
while labor productivity continued to increase. Positive effects are also identified in
terms of improvements in various aspects of the business and civil infrastructure in
the country constructed with the support of EU funding. In general, for the 10-year
period of membership, the average annual net transfer from the EU to Bulgaria is
about 4% of the country's GDP and this influx of funds is assessed to be of great
macroeconomic importance given the unfavorable conditions of the global
environment (Center for Liberal Stragtegies, 2017).
However, the effects from the EU Cohesion policy on the Bulgarian economy and
budget are also criticized by economists, arguing that the European funds in the
country are widely considered as a gift or free money, which is not the case (Ganev,
2016). The data from recent years show that the European projects swallow an
increasing share of the national resource and actually worsen the fiscal position of the
country. The costs of the European programs in the country have been increasing
steadily - in 2008 they were less than 1 billion BGN, in 2010 - 2 billion BGN, in
2014 they reached 4.5 billion BGN and in 2015 they boomed to 6.3 billion BGN.
These costs are not funded only by the EU, as annually the state makes transfers
from the national budget to the European programs. This is in practice the
participation of the taxpayers in the European funding.
In 2011 and 2015 the national transfers to the EU funds increased markedly and
reached about 40% of the costs of the European programs. From almost 6.3bn BGN
spent on EU programs in 2015, 2.5 billion BGN were paid by the Bulgarian
taxpayer. And the share of national financing in the EU aid has been increasing at a
high speed. This is a real cost, and when, in some cases, useless projects are
implemented, or projects’ costs are inflated only to increase the absorption rate, this
inevitably leads to a wastage of national resources (Ganev, 2016).
Other deficiencies stemming from the EU funds’ absorption process also led to the
lower efficiency of the EU’s cohesion policy in Bulgaria. The absorption of financial
resources of the SCF in Bulgaria in the first for the country programming period
2007-2013 was accompanied by numerous problems. The absorption rate of
Bulgaria in comparison to the other Member States was low and a major reason for

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�The EU Cohesion Policy’s Impact on Regional Economic Development:
The Case of Bulgaria	&#13;  

	&#13;  
that was the lack of administrative capacity and experience in the procedures of the
operational programs’ project management. Even though the pre-accession programs
included education and training of the employees in national administration, the
administrative capacity was not satisfactory. One of the causes for the initial strong
ineffiency of the Bulgarian administration, responsible for the EU funds absorption,
is associated with its structure that is ineffectively organized into numerous
operational programmes, which leads to the management of the same types of
programmes in a different way and with varying effectiveness. The result is that
many functions are duplicated and there is an increase in the budget costs
(Nozharov, 2016).
Another important factor was the comparatively small competence of the staff in the
Bulgarian body managing the EU funds’ absorption. At least one third of the staff in
the public administration responsible for this activity is appointed without a
competition, and a big part of them is not highly-qualified, which leads to additional
government costs for employees’ re-qualification and support of their work through
outsourcing. In addition to that, there are considerable variations in the wages of
staff responsible for the management of EU funds and the other staff with the same
qualifications and fulfilling the same tasks (the former receiving five times more than
the latter), which leads to a lack of motivaton and ineffectiveness of the financial
processes at the public administration (Nozharov, 2014).
The unpreparedness of the Bulgarian state administration in the EU funds’
absorption process is acknowledged in the latest report of the Bulgarian Academy of
Sciences (BAS), which blames the Bulgarian institutions for the lower-than-expected
results achieved by the country’s membership in the EU. The public administration
was not ready and was unable to learn for a long time to apply the modern
management style of the European Commission. It turned to be inadequately
trained professionally, unsufficiently expeditious and unable to defend its
independence from other state institutions and corporate interests, a part of which
was due to the low remuneration of its employees that made them susceptible to
corruption (Economic Research Institute of the Bulgarian Academy of Sciences,
2017). BAS has also criticized the European institutions for their policies and
requirements to the Bulgarian authorities that have not always been tailored to the
specific characteristics and traditions of the country, as well as to its citizens’
preferences. Namely the Institute has criticized the international institutions and
European Commission for the full opening the single European market to Bulgaria,
which at that moment has been an unsustainable and low-competitive economy.
The result of that is a total decline in a number of economic sectors, including a
collapse of production, exports, employment, income, consumption, as well as other
Volume 7 | Issue 1 |

17

�Monika Moraliyska	&#13;  

negative trends as emigration, social polarization, decline in budget revenues and
others. However, this part of the analysis has not been supported by any econometric
model or other mathematical or statistical tool that correlate the above-mentioned
negative trends in the Bulgarian economy after 2007 with the country’s EU
membership, which makes the report’s conclusions unreliable. After all, even the
author of this part confesses that it is difficult to define exactly which of the
Bulgarian economy’s weaknesses are a result of the EU membership or represent the
deteorating consequences from the country’s unsuccessful transition to market
economy after 1989vii.
Kaneva (2015) identifies four different groups of problems that hinder the EU
funds’ absorption process on the Bulgarian side – problems of the beneficiaries, a
human capital problem, organizational problems, and specific for the respective
Operational program problems. Her analysis proves that there are unsolved issues for
both - the beneficiaries and the state administration. Many of the problems discussed
are not reserved to Bulgaria only and could be addressed successfully by researching
and applying other Member States’ best practices.
Another serious problem was that the absorption process in Bulgaria was
implemented in contrary to the main principle of the European cohesion policy,
because instead of supporting the country’s underdeveloped regions, it concentrated
on the richest Bulgarian region. During 2007-2013, the EU allocated more than
81.56% of the its budget to the less favored regions, while in Bulgaria 40% of the
available resources were invested in the most developed one – the Southwest region
(incl. the capital Sofia), and only 7.5% in the least developed (Galabinova, 2015).
The Bulgarian Operational Programs in the 2014 - 2020 period follow the same
logic – the country did not choose to create regional Operational Programs, which
could support the underdeveloped regions, but seven national programsviii. There is a
risk that the investment funds continue to be concentrated primarily in the
Southwest region, which, instead of convergence of the level of development of the
six NUTS 2 regions, will lead to even bigger regional disparities. The city of Sofia
could be differentiated as a separate planning region, while the remaining of the
current Southwest region could merge with the South-Central region. In order for
greater socio-economic effect to be achieved, an analytical unit to assess the socioeconomic impact in terms of defined goals, not in terms of the funds utilized and
activities implemented, could be established (Hadjinikolov, 2015).
Besides that, some sectors of the Bulgarian economy still have not been restructured
and even when the absorption of the EU funding followed the common policies, it

18

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�The EU Cohesion Policy’s Impact on Regional Economic Development:
The Case of Bulgaria	&#13;  

	&#13;  
was not efficient. The SMEs’ low awareness of the operational programs in the
country was also a hinder and made it necessary to promote further the European
funds’ opportunities (Nikolova, 2014).

Conclusion
Econometric research has showed that the EU Cohesion Policy funding has been an
important driver for the reforms and economic development of Bulgaria since its
accession to the EU. It will continue to play this role, and for the programming
period 2014 - 2020 Bulgaria has been allocated around €7.6 billion in Cohesion
policy funding. The investment priorities have been set out in a Partnership
Agreement with the European Commission and include the raising of the
competitiveness of the economy, research and innovation, transport infrastructure,
urban development, improved water and waste management, employment, raising
the share of persons with higher education, strengthening the capacity of public
administration and the judiciary and promoting good governance (European
Commission, 2015).
However, in general the EU Cohesion policy has failed to achieve or still has not
achieved its main goal: creating a more homogeneous Europe in economic and social
terms. A proof of that are the vast economic gaps between Southern and Northern,
and between Eastern and Western Europe. The record high unemployment levels,
especially among the youth, the vast emigration from Eastern to Western Europe
and the rise of political parties that criticize the European Union and propose to
reverse the process of European integration, is another symptom of the lack of
cohesion (Stratfor, 2015). However, analyses show that this unsuccessful story is
tightly connected with the poorest Member States’ initial economic situation, which
is the case with Bulgaria, and their inability to make most of these development
funds on a later stage.
The result of the analysis shows that the scientifically-proved (through econometric
model) positive effects of the EU cohesion policy on the Bulgarian economy prevail
over the negative, which remain quite hypothethic. The EU cohesion funds are a
very important source of financing for the Bulgarian economy, the possibilities of
which should be used to the fullest to support the economic growth and
employment in the country. For their absorption rate and efficiency to be enhanced,
however, further steps are necessary towards state admnistration’s strengthening,
project management’s improvement, fight against corruption and others.

Volume 7 | Issue 1 |

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�Monika Moraliyska	&#13;  

References
Bulgarian Academy of Sciences, Economic Research Institute. (2017). Annual
Report 2017. Economic Development and Policies in Bulgaria: Assessments and
Expectations. Focus topic: “The road to the European Union and the first 10 years”,
Gorex Press, Sofia. Retrieved from: https://www.iki.bas.bg/godishen-doklad-2017%E2%80%9Eikonomichesko-razvitie-i-politika-v-balgariia-ocenki-iochakvaniia%E2%80%9D-fokus-%E2%80%9Cpat
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The Case of Bulgaria	&#13;  

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achievements/#1
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Ganev, P. (2016). “Безплатните” европейски средства (“The Free European
Funds”). The Market Economy Institute. Retrieved from:
http://ime.bg/bg/articles/bezplatnite-evropeiski-sredstva/
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05/2017. Retrieved from:

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http://ec.europa.eu/regional_policy/en/newsroom/news/2017/06/06-01-2017working-paper-the-impact-of-cohesion-and-rural-development-policies-2007-2013model-simulations-with-quest-iii
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for Bulgaria. ECONSTOR, A Service of zbwLeibniz-Informationszentrum Wirtschaft
Leibniz Information Centre for Economics. Retrieved from:
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Stratfor. (2015). The Controversial EU Cohesion Policy Falls Short. Retrieved from:
https://www.stratfor.com/analysis/controversial-eu-cohesion-policy-falls-short
	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;   	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  
i

See Nomenclature of territorial units for statistics (NUTS).
Based on a set of simulations conducted with QUEST, a dynamic stochastic general
equilibrium model with endogenous growth and human capital accumulation.
iii
In the EU-15, the impact is more modest but it remains substantial for some Member
States like Greece (+2.2%), Portugal (+1.8%) and Spain (+0.7%) which benefited from
support of the Cohesion Fund.
iv
The index is the result of cooperation among the Directorate-General for Regional and
Urban Policy of the European Commission, the Social Progress Imperative and OrkestraBasque Institute of Competitiveness. It follows the overall framework of the global Social
Progress Index, customised for the EU using indicators primarily drawn from Eurostat data.
It isn’t created for the purpose of funding allocation and doesn’t bind the European
Commission.
v
There are three dimensions of the SPI: 1) Basic Human needs incl: nutrition and basic
medical care; water and sanitation; shelter; personal safety; 2) Foundations of Wellbeing, incl:
access to basic knowledge; access to Information and Communications; Health and Wellness;
Ecosystem Sustainability; 3) Opportunity, incl: Personal rights; Personal Freedom and
Choice; Tolerance and Inclusion; Access to Advanced Education.
ii

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The Case of Bulgaria	&#13;  

	&#13;  
	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;   	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;   	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;   	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  	&#13;  
vi

The development of the econometric model for impact assessment of the Structural and
Cohesion Funds of the EU called SIBILA is implemented under project № 0018-ЦИО-3.2
„Development of a model for impact assessment of SCF”, financed by Operational
Programme Technical Assistance.
vii
The authors of the Bulgarian Academy of Sciences’ report have also reached the conclusion
that “Bulgaria’s membership in the EU has no other alternative”.
viii
“Good Governance”, “Transport and Transport Infrastructure”, “Regions in Growth”,
“Human Resources Development”, “Innovation and Competitiveness”, “Environment”,
“Science and Education for Intelligent Growth”.

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                <text>Abstract: The EU cohesion policy has been a major driver of  change in the Member States, leading to positive effects as growth in  employment, economic development and modern infrastructure.  Since its EU accession in 2007, Bulgaria has been benefiting from  the Union’s investment and structural funds at an increasing speed.  Research shows that not only these funds contribute significantly to  the Bulgarian economy, but they seem to be its major driver.  Without them, the country would have recorded a zero growth in the  EU’s financial framework 2007-2013, and could be dumped in an  economic and social crisis. This paper explores the informational  sources that assess the influence of the EU cohesion policy and its  effects on Bulgaria. The goal of the paper is to make objective  conclusions about the impact of the EU cohesion policy on the  Bulgarian economy and how it has affected the level of economic and  social cohesion between the country’s regions and the most advanced  EU regions. For that purpose, the method of comparative analysis is  applied, as well as a historical analysis..</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

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VAR Analizi ie İncelenmesi, Eskişehir Osmangazi Üniversitesi İİBF Dergisi,2(1),47-63.
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Yaklaşım Dergisi,11(39), 37–67.

The Eu Integration And The Monetary Union: Why England Don’t Join The Euro
Akcay Ekrem Yasar1,Akman Elvettin2,Akman Cigdem2
1Ankara Unıversity,Ankara/Turkey
2Suleyman Demirel University,Isparta/Turkey
E-mails: ey_akcay@hotmail.com,elvettinakman@sdu.edu.tr, cigdemargun@sdu.edu.tr
Abstract
EU which was established in 1957 with Rome Treaties and in 1992 with Maastricht
Treaty made process from economic union towards political union, also has tried considering
the harmony many issues such as agriculture, commerce. One of these issues is monetary
union.
Within the Monetary Union that came into make its plans in 1969 and it was thought
that could prevent the cycle and consider the common monetary policy. In this framework, in
1979, The European Monetary System was established and then in 1986 within the Single
European Act, this process continued and in 1992 with Maastricht Treaty it became clearer.
Then in 1997, The European Monetary Institute was established and finally in 1999,
EURO was accepted as monetary unit for EU members. Now, 17 members put the EURO
account but England hasn’t yet. There are many causes about this issues such as political,
economics, social, national interests. for England. In addition, this issue or policy effected the
other relationships of England.
Keywords: EU, England, The Monetary Union, EURO, National Interests.
1. INTRODUCTION
The idea of integration in Europe begins with Dante in the 13. Century, embodied by the
Organization for European Coal and Steel established by the Treaty of Paris (ECSC) after
World War II in 1951 and the European Economic Community (EEC) established by Treaties
of Rome in 1957, the Union lived an important process of deepening and enlargement over
time (Akçay, Akman and Argun, 2011).
268

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

The Union that also goes the political integration with the Maastricht Treaty signed in 1992
and took the name of European Union (EU), started common policy in many areas such as
Common Foreign and Security Policy, Common Commercial Policy, Common Monetary
Policy for providing integration by all means. The foundation of the Common Monetary
Policy which appears as one of these policies was implemented in the 1960s; concrete steps
have been taken in 1999 by the acceptance and implementation of the euro as the currency
(Karluk and Tonus, 1998).
Economic crisis that has started in 2008 and influenced and many Community member
countries such as Greece, Italy, influenced the world in general and the European Union in
particular. Although many countries use the euro especially in a period when the future of the
euro and the European Union is discussed, Britain's not use despite being a member of the
Unity, is seen in the current situation provides an advantage to England.
Our study focuses on why Britain doesn’t use the euro. In this sense, in our study, initially the
Community's Common Monetary Policy’s historical process will be addressed, then British
perception of the Community and the Common Monetary Policy will be mentioned and
finally the question of why Britain did not want to use the euro will try to be answered.
2. Common Monetary Policy’s Historical Development Process
The basis of the Common Monetary Policy are taken to the period starts with La Haye
Summit in December 1969 and report that was prepared under the chairmanship of postperiod Luxembourg Prime Minister Pierre Werner and was named as "Werner Report". By
the report that was completed in October 1970, Common Monetary Policy which is planned
up to 10 years in three-stage is intended. The main objective of the Common Monetary Policy
has been the liberalization of capital movements, fixing exchange rates and the creation of the
single currency (Karluk and Tonus 1998).
While the Common Monetary Policy is being designed in this way, the collapse of the Bretton
Woods system in August 1971 and U.S.A.’s let to dollar fluctuate have created instability and
made it difficult to make planned things. In this sense, monetary integration had been arrested.
Thereupon, in March 1972, member states proposed the concept monetary snake "(Snake in
the tunnel) (Gavin, 2002; Möckli, 2009). Accordingly, this system is the fluctuation of
national coins against U.S. dollars, in a narrow margin (the tunnel). (snake) However, the oil
crisis was lived during this period and the weaknesses of the dollar have completed this
process, and a Mark region consists Germany, Benelux countries, Denmark was created
(Karluk and Tone, 1998).
Then, monetary integration was replicated with the support of France and Germany in 1979
and as a concrete step European Monetary System was established (Tunçsiper and Ruby,
1998). This system is based on fixed but adjustable exchange rates. All member states except
Britain, has been included in this system. However, this system that is applied about 10 years
did not create much change.
A committee chaired by J. Delors who is the president of the European Commission was
established at the European Summit in 1988 in Hanover, for economic and monetary
integration and a report was presented in April 1989. According to this report, establishing an
institution that is responsible for economics, political coordination, national budget deficits
and monetary policy was suggested.

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In the light of this report and proposal, starting the first phase of the Economic and Monetary
Union was decided at the Madrid Summit in June 1989 and even the United Kingdom is
against, fully liberalization of capital movement in eight member states until 1 July 1990 was
intended (Karluk and Tonus, 1998).
However, with the Maastricht or European Union Treaty that was signed after the Maastricht
Summit in 1992 Community came into a political integration process and completion of
Common Monetary Policy process within a calendar was decided.
In addition, in 10 January 1994, member states have agreed to the concrete but non-binding
rules about the approximation of the economic policies. In parallel with these steps, European
Monetary Institute was established for the coordination of monetary policy. After that, related
to the single monetary policy, the national central banks have been left to the European
System of Central Banks created by the European Central Bank and this structure has taken
the place of the European Monetary Institute.
Volatility in the U.S. dollar in 1995 has show that a single monetary policy is needed in the
European Union and required, the decision of pass of the member states before 1 January
1999 to a single monetary policy that has been called "Euro”, is held at the Madrid Summit
carried out at 15-16 December 1995 and the Amsterdam Summit in 1997. The design of euro
banknotes that was accepted in 1999 passed in 2002 and while initially 12 member countries
were participated in Euro, this number today has became 17. (Erçel,
http://www.tcmb.gov.tr/yeni/banka/emu/SORULAR5.html, 2012).
3. View of England to the EU and the Common Monetary Policy
England, throughout history, didn’t look at to an integration that will be lived in Europe too
hot. Because both it doesn’t consider such an integration could be achieved and doesn’t want
the presence of another power in continental Europe except it.
Historically, Commonwealth countries are important for both commercial and foreign policy
in England. Commonwealth countries, has a share of 43% in British trade (Gavin, 2002). But
the main point in here is that England makes cheap agricultural policy with the
Commonwealth countries. In this sense, when look at to Europe, the Common Agricultural
Policy, is a policy that is under the influence of France, and more expensive than Britain's
Commonwealth policy. Because of expensiveness of Europe Common Agricultural Policy
and scarcity of agricultural land in England, and therefore the fact that England will receive
less money from Europe, than it pays, Britain was not hot to the issue, it has created
hesitation. Because this policy will create a deficit on the balance of payments in England
(Young, 2000).
However, deteriorating relations with Commonwealth countries of England in time led it to
the EEC. In fact, although United Kingdom wasn’t hot for EEC membership, it wanted to
make a Free Trade Agreement with the EEC and thus close the trade deficit by continuing
relations with the countries of the Commonwealth. However, the integration of Britain with
EEC delayed due to political events such as both the common agricultural policy, both the
pound and the Fouchet Plan area, Nassau Agreement with the EEC (Young, 2000).
While England was trying to establish a relationship with the EEC, on the other hand, it tried
to continue its relationship with countries of the Commonwealth. One of the important
reasons of this is for this is Sterling Area. England uses Sterling in trade with Commonwealth
countries and also uses excess of the sterling appears in the Commonwealth countries as a
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result of being deposited to London banks, in the banking system and tries to eliminate trade
deficit (Young, 2000).
As addition to this, when it is looked to international conjuncture at the inter-war period,
economic disturbances, and crises carried the world to the World War II, and the world is
connected to dollars by Bretton Woods system that was made after war. With this system,
members of the IMF were attached to a certain extent to the dollar and it was called the fixed
exchange rate. With this system, states were connected their money to dollar, their dollars to
the gold. Now, countries have excess of dollar at the end of trade started to take back this
excess (Gavin, 2002).
In this environment, even though Great Britain caught up advantage with the Pound Sterling
Area, this situation began to deteriorate in 1949. Commonwealth countries wanted to convert
their money in dollars but because of the absence of enough dollars in the hands of England, it
was forced to devalue. In fact, Britain didn’t want to devalue, and resisted until the last point.
In this sense, it banned the exits to abroad for tourism, made restriction of the sterling,
restricted military expenditures, even began to withdraw from east of Suez. Because
devaluation will be a significant loss of prestige for a strong state such as Britain. However,
when the situation deteriorated, it had to go to the devaluation. By the devaluation, moneys
value was devalued against other currencies, the price of manufactured goods was reduced
over other currencies and exports have been encouraged (Parr, 2006). In this case although
trade deficit is reduced and it also increases the value of reserves, Commonwealth countries
that have more Sterling in their hands suffered a loss and England that is a major financial and
banking center has experienced the loss of prestige. In addition, although it tries to reduce its
burden of military spending by making offset agreements with Germany, it couldn’t be
successful, and in 1967 it was forced to make one more devaluation (Zimmermenn, 2000).
Britain's EEC approach was been as result of this situation but was rejected by De Gaulle
because of the political and economic reasons
At the same time, the dollar was connected to gold by the Bretton Woods system and gold
wase demanded with the dollar surplus but because of the absence of gold reserves in the U.S.
that will do so, United States began to fall into difficulty. When U.S.A. considered that it
couldn’t protect the gold, it also directed to Germany like Britain and has worked to alleviate
its burden by Offset Agreements. However, the devaluation in England in 1967 put also the
United States into trouble. Because sterling is now transformed into dollar. Thereupon, when
De Gaulle wanted to exchange gold in its hand to gold for political reasons, the United States
lived a little more trouble and provided not to be gold demanded by applying pressure (Gavin,
2002; Hoffmann, 1964). In the meantime, Britain turned its famous banking infrastructure
into a structure that based on dollars and has become the world's second largest market in
dollar reserves. In other words, Britain now tied up its everything in dollars and became
dependent on dollars by transforming into a structure that is finance dominated than industry
4. Instead of conclusion: Britain and the Euro
Britain, whose EU membership was rejected by the French leader De Gaulle because of
political and economic reasons between 1963 and 1967, became a member of the community
after the death of De Gaulle in 1973. Since this date, although it is a member of the
Community, it approached cautiously because of particularly the Community's Common
Agricultural Policy (even it participates) and Common Monetary Policy.Because, also called
two policies may cause ill effects at England's trade policy and the banking system such as
trade deficit, deterioration in the balance of payments
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Although, England who connected itself to the U.S. dollar in terms of financial and banking
system and convert its system from Sterling into dollars as the world's second largest dollar
reserves, being a member of the community, it didn’t obey the Community's common
monetary policy especially, refused to use the euro came into force in 1999.
Britain's entry into the agricultural policy would harm Commonwealth countries, which have
an important place with Britain, both politically and commercially. Britain that has already
been damaged by the Community's agricultural policy, is working to resolve this situation by
regional development policies (Eraktan, 2006).
If we look at in terms of the Common Monetary Policy, Britain’s which is so dependent to
U.S. Dollar; inclusion to Euro will cause its damage in terms of economic, political and
prestige. In the environment that the EUROZONE whose basis was constructed by The Hague
Summit in 1969 and Werner Report, became a threat to the EU’s future by recently living a
difficult test because of the crisis, it is a fact that it provided a significant advantage to
England.

Eu Economic Integration Process Of Macedonia
Agim Mamuti
International Balkan University (IBU),Skopje, Macedonia
agim.mamuti@yahoo.com
Abstract
The purpose of this research is to provide a general overview of the accession process with a
special reference to the economic integration and the challenges of the Republic of Macedonia
in the road of joining the European Union.
The European Council of December 2005 granted the status of candidate country to the
Republic of Macedonia. The Stabilization and Association Agreement (SAA) between the
Republic of Macedonia and the EU was signed in April 2001 and entered into force in April
2004. The Council adopted the Accession Partnership for the country, including key priorities
for reform, in February 2008. In October 2009, the Commission recommended to the Council
to open negotiations with the country, as well as to move to the second phase of SAA
Implementation. These recommendations were reiterated in 2010. The Council has not yet
concluded its deliberations on the Commission's proposals. Visa liberalization for citizens
travelling to the Schengen area has been in force since 19 December 2009.
The country has a small, open economy, with total trade in goods and services recovering to a
level of 114% of GDP in 2010, following the 2009 recession. Trade integration with the EU is
advanced, with about 63% of all exports currently going to and about 53% of imports
originating from the EU. The CEFTA region is the country's second most important trading
region, accounting for around 24% of exports and around 10% of imports. The export
structure continues to be highly concentrated on a limited range of products, with textiles and
clothing accounting for about 17% of total exports and manufactured iron products for 26% in
272

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                <text>EU which was established in 1957 with Rome Treaties and in 1992 with Maastricht  Treaty made process from economic union towards political union, also has tried considering  the harmony many issues such as agriculture, commerce. One of these issues is monetary  union.  Within the Monetary Union that came into make its plans in 1969 and it was thought  that could prevent the cycle and consider the common monetary policy. In this framework, in  1979, The European Monetary System was established and then in 1986 within the Single  European Act, this process continued and in 1992 with Maastricht Treaty it became clearer.  Then in 1997, The European Monetary Institute was established and finally in 1999,  EURO was accepted as monetary unit for EU members. Now, 17 members put the EURO  account but England hasn’t yet. There are many causes about this issues such as political,  economics, social, national interests. for England. In addition, this issue or policy effected the  other relationships of England.  Keywords: EU, England, The Monetary Union, EURO, National Interests.</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

The European Union Developing As A Political System
And Its Budget

R. Tekeli1,H. Gül2
1 Adnan Menderes University, Faculty of Economics and Administrative Sciences.
2Dokuz Eylül Üniversitesi Faculty of Economics and Administrative Sciences.
E-mails: rtekeli@adu.edu.tr ,huseyingul@adu.edu.tr

Abstract
In this article, the political system of European Union, which holds an important position in
the international system with the Lisbon Treaty in 2009, and its budget procedure, which is
an important issue in the political systems, are examined and investigated. States make the
budget with the aim at achieving the revenues and expenditures effectively. In 1967, with the
establishment of the EC (European Communities), the European Union (EU) as well as
national governments initiated to make the Budget. The dream of setting up the Union in
Europe has become reality as the EU has been formed. The EU plays a role as a political
actor in the international system. In this study, the political institutions of the EU reached a
position of political system and the budget positions of the institutions’ views in the budgetmaking process are discussed. Also, the budget of the period 2007 – 2013 created after the
Lisbon Treaty is studied. The expenditure items given the highest priority in the EU Budget
such as Sustainable Growth are discussed.

1.INTRODUCTION
The European Union and the system introduced by the Union are extensively studied subjects
among the scholars who studied on the international discipline. After the Second World War,
Europe began seeking to build a new Europe took a firm step to turn the Founding Fathers’
dream into reality. In the Treaty of Rome which is the basis of this dream, the following task
areas were determined for the European Economic Community (EEC): to create a common
market, gradually to bring the economic policies of member states closer to each other, and to
promote closer relations among member states within the Community. This target, together
with the phenomenon of globalization, differs in the areas of sovereign states at the
international level and enters into a period that has closely corresponded to a relationship. As
a result of this process, new institutions or structures, where the sovereignty of the state
becoming a matter of debate, have emerged in the international arena. One of the most
important institutions is the European Union with its unique structure.
In fact, the most fundamental feature that separates the EU from other international
organizations is the bodies that took place in the political system of the Union. The central
building blocks in the EU political system make up the organs of the Union. The Organs of
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the Union, using powers just as the authority of the national states (legislative, executive and
judicial), take essentially similar binding decisions and carry out the decisions from a single
center. The Organs of the Union speak on behalf of nearly 500 million citizens of the Union
and 27 members of the country. "Brussels factor" attracted an increasing attention in the
Union takes important decisions concerning the political life and enforces them. This
situation has a legal basis in the Treaty of Lisbon. Significant changes in the EU's
institutional structure and the decision-making processes have been made. A step towards the
idea of "European United States" is successfully accomplished 4.
In this paper, the political system of the EU will be explained and the budget process as an
important issue of political systems will be discussed. The EU budget has taken the present
form by the regulations as a parallel process of deepening the Union. Thus, in terms of
acceptance procedures, operation principles, preparation, and the content, the EU budget
substantially differs from the budget of any state or any international organization. It even
exhibits characteristics which can be found quite complex.

2.The Political System of the European Union
The EU defines itself a family of democratic European countries committed to working
together for peace and prosperity. The decisions including specific matters of common
interest to be taken democratically at the European level, Member States have formed the
partner institutions handing over sovereignty partially. These institutions determine the EU
policies. Just as the duties and the functioning of state organs at the national level, the EU
institutions are also similar to those organs in terms of functions, duties and distribution of
powers. The EU policies are determined by the political decisions taken by three major
institutions. In other words, the political system of the European Union is operated by the
European Council (which represents member states), the European Union Parliament (which
represents the citizens) and the European Commission (which is a politically independent
body established in order to consider the common European interests).
This institutional triangle implements laws and policies throughout the EU. Primarily, the
commission proposes laws, but the Parliament and the Council legislate them. In addition to
these important political institutions, the European Court of Justice that ensures the European
Law, and the European Court of Auditors that controls the activities of the Union's finances
and budget, are two important "state" institutions. The functioning of the duties, powers and
regulations about the Council, the Parliament and the Commission which have the most
important position in the functioning of political systems of the EU will be explained below
in the light of recent developments.

4 The concept of Europe united by politics was instated by Victor Hugo in the opening speech of
Berlin Peace conference and European Union was set as its goal. The concept’s adoptation in politics
was a big project announced by a famous English statesman W. Churchill in the opening speech of
Zurich University of 19 Sep 1946. (Hocaoğlu 2007, p11 and 28)
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3. The European Parliament
The European Parliament (EP) is the only institution of the European Union directly to the
public on the basis of legitimacy. The EP represents for people of the European Union
member states. In other words, the EP is known as the voice of Community Nationals. In
addition, the EP was established at Strasbourg in 1952 in order to control and provide
information to the Council and the Commission5. The Parliament, currently composed of 785
members, two-thirds of which are female, exercises the legislative activity in Strasbourg.
The Parliament cannot be easily characterized and structured as in conventional patterns. The
jurisdiction of the parliamentary body of the EU system is often limited by the parliaments of
member countries. However, a careful examination of the powers vested in the founding
treaties of the Parliament shows that the parliament resembles the national parliaments. The
purpose is, featuring similar powers to the legislature of the EP, to serve the goal of creating a
political union of the EU. Similar with the National Parliaments, functional powers assigned
to the EP can be listed under the following headings:







With the Treaty of Lisbon, the so-called participation of parliament in decisionmaking mechanisms through co-decision procedure, cooperation procedure,
consultation procedure (consulting), and approval procedure (consent) gained the
Parliament legitimacy by giving the authority to elect the President of the European
Commission.
The authority to make Budget: This authority is granted by the Treaty of Brussels
which has strengthened the existing financial approval authority of the parliament by
the Lisbon Treaty. Combining the expenditures which were approved separately by
the Commission and the Parliament in previous periods, provided for two
organizations to work together and provided a balance between the Commission and
the Parliament6. Lisbon Treaty has given the EP a greater role in the commissioning
of the EU Budget.
Legislative Authority: "co-decision procedure" is re-named as the "natural legislative
procedure", and many new fields have been included in7.
Political Control Authority: The authority introduced by the Single Act includes
authorities which are also used in national parliaments such as to censure, to ask
questions, provide reports to the parliament, the appointment of public auditor and the
right to petition. 8

5 Parliament working in three different cities formally took place in the EU Council Summit in
Edinburgh in 1992 and the Amsterdam Treaty.
6 Akar Sevda, (2010), “Lizbon Antlaşmasının Avrupa Birliği Bütçe Sürecine Getirdiği Yenilikler ve 2010
Avrupa Birliği Bütçesi”, Marmara Üniversitesi İİBF Dergisi, 161.
7 Bayram Hanifi Mehmet, (2010) “Lizbon Antlaşması: Parlamentoların Avrupa Birliği Karar Alma
Sürecindeki Yeni Rolü”, Uluslar arası Hukuk ve Politika, Cilt 6, s.85.
8 Topal Emre, (2008), “Lizbon Antlaşması İle Avrupa Birliği’nde Yasama Niteliğindeki İşlemler ve Yasa
Yapım Süreçlerine Getirilecek Değişikliklere Genel Bir Bakış”, Yasama Dergisi, Sayı:9, 2008, s. 25
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



Approval of the international treaties, the accession to the Union, and the partnership
agreements: With the Treaty of Lisbon, the consent of parliament for international
agreements have been put to obtain9.
The authority of filing a case against the Community institutions in the Court of
Justice.
As mentioned above, the EP does not still have a form of legislative initiative. As an
exception, however, it has the authority to prepare a proposal for a single European
election.

The internal functioning of the EP is similar to its structure and distinct from other
parliaments with its unique position. 785 parliamentarians deal with political issues under the
roof of the European Parties. The parliamentary political landscape reflects a general political
landscape and the diversity of views just as national political parties in National Parliaments.
Number of seats is proportional to population distribution of the member countries.
(Germany have 96 parliamentarians, Luxembourg have 6 parliamentarians). These
quantitative criteria are fixed by the Treaty of Lisbon.

4. The European Council (summit)
The Council is the European Union's main decision-making mechanism. Where the final
decisions on the EU and member states are taken, the Council consists of presidents of a State
or prime ministers who meet twice a year. In a political sense, it is the EU institution that
located at the highest level. 10 In accordance with Article D of the EU agreement, the
European Council provides the driving force required for the development of the Union and
places the general political objectives in a specific location for this development. Although
the authority is specified in this way, both coverage and density of the actual events and
functions are differentiated and largely spread over a wide area. The tasks of the Council of
Europe can be grouped under three main headings: architects who structure, to determine the
basic outlines for the EU, and being the highest decision making body of the EU.
In accordance with their national constitutions members of the Council of Europe are
comprised of the top-level political decision units specified in each member state. Beside the
heads of government, prime ministers and the chancellors, the presidents of France and
Finland in accordance with their national procedures, are also members of the Council.
President of the European Commission is also among the members of the Council of Europe.
The Council is also open to the participation of foreign ministers and members of the
Commission. Decision-making process within the Council of Europe has very different
characteristics. The main element of decision makings is the negotiation among the member
countries. Regarding many political areas only the heads of state and government can balance
9 ibid, p. 33.
10 Tekinalp ( 2000:218). Council of the EU which meet since 1974 was formalized with the Single
European Act (1986) and the European Council became a legal entity which has gained the official
status by the Maastricht Treaty.
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the decision-making process with the reciprocal demands and concessions. Development of
the European Union significantly depends on the summit negotiations. In this regard, the
heads of government mutually try to influence each other.

5.The European Commission
The Commission is independent of national governments. Its duty is to represent and promote
the interests of the EU. It makes the proposals for the EU and submits them to the European
Parliament and the Council. At the same time the Commission is the EU's executive body and
it is responsible for the implementation of the decisions taken by the Parliament and the
Council. This means administration of daily operations such as the implementation of
policies, implementation of programs, and spending of funds. Informally, the Commission
members are known as the 'Commissioners'. The Commission members are committed to
work for the common interests of the Union and do not take instructions from their national
governments. Every five years, a new Commission is appointed within six months after the
European Parliament elections.
The Commission is politically responsible to the Parliament. The Commission attends to
every meeting of the Parliament to explain and defend the policies. In addition, it will
respond to the written and oral questions posed by the members of Parliament. The
Commission's daily operations are carried out by administrative officials, experts,
interpreters, translators, and the secretariat staff.
The European Commission is a central entity in the preparation, the implementation and
control of binding decisions of the European Union. The rights and duties of the Commission
detected and stipulated by the founding treaty. In Agreement on the European Union (the
first column), in addition to other duties and jurisdiction, the European Commission is
equipped with three principal functions:
The most important role of the Commission is being the engine of the EU's integration. The
Council and the European Parliament can make legal regulations only on the suggestion of
the Commission.
The Commission, may take binding decisions about implementation under the jurisdiction of
the executive branch, and may initiate negotiations on international agreements on behalf the
Union.
As the guardian of the Treaties, the Commission supervises the implementation of law arising
from the Agreements.
The formation of the Commission’s decision usually takes in three fields. The decisionmaking committee, which is usually composed of 27 members with the chairman of the
Commission, is Kollegium. Management mechanism of the Commission, headquartered in
Brussels, consists of 26 General Directorate and other services (General Secretariat, Legal
Service, European Community Publications Department, Statistics Department, Translation
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Services, etc.). Comparable to the general directorates at the national level (Department,
Resort) general directorates were created by functional and hierarchical structuring.
Directorate General of Agriculture and Social Policy can be shown as an example. The basis
of the decision formation within the Commission lies on the draft resolution which is
prepared by the general directorate in coordination with other general directorates and Legal
Services. Almost all over the world, the Commission is authorized as an effective entity
because the EU representatives are administratively attached to the Commission in almost
every region of the world.

5.1.Operation of the system
Decision-making process at EU-level includes the institutions above and many other
institutions. The European Commission, the European Parliament, the European Union
Council are important decision makers. In fact, a new legislation is recommended by the
European Commission, but it is the Council and the parliament that pass the laws. There are
other institutions and organizations that have various roles in this process.
The main characteristic of the European Union is that it has the authority in the issues which
are falling entirely within the jurisdiction of a state such as to execute commercial
arrangements and to determine the tax instruments. Organs of the Union provide the
preparation, the execution and the control of decisions. Most notable of these processes is the
decision-making mechanism that leads to the formation of a legal system which binds both
the member states and the citizens of the Union.
Rules and procedures of EU decision-making process are specified in the agreements. Every
European law called "legal basis" based on the article of a specific agreement. There are three
main procedures to implement a new EU law: Joint decision-making procedure, the
consultation procedure and the procedure of finding appropriate (assent procedure).
Legislative activity in the European Community is conducted within the framework of certain
procedures under the above-mentioned institutions. In all of these procedures listed as Codecision, consultation and approval, legislative proposals in general are being prepared by the
Commission. According to the procedures applied, Parliament's binding opinion is taken, and
then the proposal is adjudicated by the Council after consulting with the other advisory
bodies.

5.2.Basic Features of the EU Budget
a - Basic Features of the Budget of the European Union
The European Union's budget was created through the merger of the budgets of three
Communities (ECSC, EEC and Euratom) which were combined with the Merger Treaty
(1967). 11
11 Karluk Rıdvan, AB ve Türkiye, Altıncı Baskı, Beta Basım, İstanbul 2002, s. 415.
261

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

The EU budget significantly differs from the budgets of other international organizations.
Lacking defense and security spending which holds an important place in the state budget
resulted in relatively small budget. 12
Nevertheless, the EU's budget is no different from any state budget in terms of income
resources, revenues, expenses, content, acceptance procedure and provisions for
implementation.
The EU's budget, described as "a complex mechanism”, is still prepared by taking into
consideration of the budgeting principles. 13
These budgeting principles are;
Unity Principle: The community’s all income and expenditure laid down with a single
document in accordance with the provisions stipulated by Article 268 of the Treaty which
establishes the European Community.
Universality Principle: This principle is based on two basic rules. Firstly, budget revenues
cannot be specifically allocated to a certain items of expenditure; in accordance with the
second rule, called "the gross budget rule" (gross budget principle), expenditure and revenue
should take a full part in the budget without offsetting each other.
Annuality Principle: In accordance with this principle, aimed at facilitating the process of
operational control of Community’s expenditure and revenue, the process is considered
within the framework of a budget year.
Equivalency Principle: In accordance with this principle, income must be equal to the
expenditure envisaged during for a fiscal year. Accordingly, additional borrowing cannot be
made to close the budget deficit. If the budget is in surplus, the surplus is recorded as a
revenue in the following budget. In the event of an additional expenditure, which is
unforeseen during the preparation of the budget, either changes to budget (a new amended
budget) is formed, or the additional resources outside of the budget is used. *
Determination (Specification) Principle: this principle is brought to avoid confusion about
how the budget allocations are used in areas. Accordingly, the purposes for which such
expenditures are determined should be clearly identified.
12 Keskin Hakan; Doğru Sanılan Yanlışlarla Avrupa Birliği, Ankara 2010, s. 46.
13 European Commission, Fundamental Principles of the Community Budget,
http://www.europa.eu.int/comm/budget/budget/index_en.htm#principles
* Non budgetary sources are provided from debt financing from capital markets, sources from the
European Investment Bank, or sources from European Investment Fund created by Edinburgh
summit of 1992, and the European Development Fund financed directly by the member states
established to provide financial assistance to African, Caribbean and Pacific (AKP) countries under
the Lomé Conventions (Nugent Neill, The Government and Politics of the European Union,
Macmillan Press, London, 1995, p339-340).
262

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

The final principle related to underlying budget procedures, is that the Euro, the official
currency of the Union from 1 January 1999, is to be used during these procedures.
the Adoption and Process of the EU Budget before the Lisbon Treaty
The formation process of the budget of the European Union is regulated with Article 272 of
Community Founding Treaty that provisions the process of formation of the budget and time
constraints of the rules that the Council and the Parliament, known as "the two wings of the
budget authority", are obliged to comply with.
Accordingly, the procedure of the budget covers a period between September 1 and
December 31 belong to the budget prepared in the previous year. However, while keeping the
validity of these principles established by the Founding Agreement, the Commission is the
main organ which is responsible for preparation and implementation of the budget, in the
case of the application, the budget procedure is considered a slightly longer period of time
within the framework. Accordingly, as applied since 1977 the budget will be formed in the
framework of the following stages:
Until June 15, the first form of the draft budget (preliminary draft budget) prepared by the
Commission presented to the budgetary authority (the Council and the Parliament).14

b- Adoption of the Draft Budget by the Council
The Council reading the preliminary draft budget agrees upon a draft of the budget before
July 31with a majority decision after consulting with a delegation from the Parliament.15 At
this point, especially the distinction between mandatory and discretionary spending can lead
to serious problems. One of these problems is that while on the one hand the Council saying
the last word in determining the mandatory expenditure items, on the other hand Parliament
has the final say on non-compulsory expenditure items. 16

Reading the Draft Budget by the Parliament
During this phase that should occur in October, and also called the "first reading by the
Parliament" the draft bill primarily examined by the Parliament's Budget Committee and then
forwarded to the General Assembly. Two results may occur during the plenary discussions.
The first of these is the draft budget may be adopted by the Parliament. This happens if the

14 European Commission, Main Stages of the Budgetary Procedure,
http://www.europa.eu.int/comm/budget/budget/index_en.htm#stages
15 European Commission
16 Tekinalp, ibid p. 295.
263

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

bill is adopted by the majority of members of the Parliament within 45 days of negotiations
takes place. 17

Council’s Reading Draft Budget for the Second Time
After discussions with the delegates from the Parliament, this phase is expected to be
completed during the 3rd week of November. At this stage, the Parliament's draft budget in
relation to mandatory and non-compulsory expenditure items is re-arranged by the light of
the above-mentioned changes. From the completion of these arrangements, the Council is
authorized to have the final say on mandatory spending. The only exception is the entire
rejection of the bill during the second reading of the Parliament after the second reading by
the Council.

Parliament's Second Reading and Adoption of Budget
After the provisions concerning compulsory expenditure items of the budget bill by the
Council, in the Parliament's second reading, mostly in December, the regulations regarding
non-compulsory expenditure items are reviewed. 18
Then the Parliament, together with the small changes in the non-compulsory expenditure,
accepts the budget by at least three fifths of the votes. Another case in this stage is that the
Parliament rejects the entire budget by at least two-thirds of the members vote. In this case,
the procedure starts again. The other case, which can be seen in the final stage of the
budgetary procedure, is that the Parliament does not decide on the bill received from the
Council. In this case, the budget is adopted as received from the Council.
Although it is an exception, after the budget entering into force, the Commission can
make changes to the budget by preparing the preliminary draft and proposing the necessary
changes. In the event of the budget amendments proposed by the Commission, the abovementioned procedure in the budget preparation applies for.

c -The changes to budget process introduced by the Treaty of Lisbon
According to the budget process in the Treaty of Lisbon, the fiscal year from January 1 to
December 31 has remained as the budget year; the budget will be made by the European
Parliament and the Council. Complied with the condition on the procedure followed before
the Treaty of Lisbon, duties and powers of the Parliament on the budget are expanded, and
timetables are re-arranged. In addition, by removing the distinction between compulsory and
non-compulsory expenditure in the budget, the budget process has become more effective

17 Tekinalp,ibid p. 296.
18 European Commission, ibid.
264

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

with the Treaty. As a consequence, the European Parliament has gained full co-decision
power - together with the Council – over all expenditures including agriculture19.
Based on the estimated expenditure sent to EU institutions as of July 1, the Commission
initiates the budget process of preparing the draft budget. The draft budget submitted to the
Council, becoming the budget bill is sent to the European Parliament for review within 42
days. The Parliament examines the bill through its sub-committees. The bill examined by the
Parliamentary sub-committee is then sent to the General Assembly. As a result of subcommittee review, if the draft is accepted by the General Assembly, the budget is legalized. If
an amendment is decided on the bill by a majority of members of the parliament, the
amended draft budget is sent to the Council and the Commission by the parliament. The
budget is finalized if the Council accepts the amendments of the budget draft within 10 days.
However, if the Council does not accept the amendments made by the Parliament, the
Conciliation Committee is formed. The committee members are formed by the equal number
of members of the Council and the Parliament.
The main task of the Committee is to establish a common bill by agreeing on a compromised
budget bill. If the Conciliation Committee agrees on a common bill within 21 days, and if the
Parliament and the Council review and accept this agreed common bill within 14 days, then
the bill is approved by the Parliament and the Council. To approve the bill by a party shall be
deemed accepted. At the end of the 21 days, if the Conciliation Committee cannot negotiate a
common bill, a new draft budget is prepared by the Commission. When the budget procedure
is completed, the EP President announces the acceptance of the budget. The Commission is
responsible for implementing the new budget. By monitoring the financial situation of assets
and liabilities of the EU, the Commission also delivers the budget evaluation reports to the
Court of Auditors. 20

19 Seifert, Jan (2011:5), Change and stability in the EU budget, EU Centre in Singapore, Working
Paper, no:3, p1-16.
20 European Commission, Treaty of Lisbon, s. 183.
265

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

Graph: The European Union Budgetary Procedure21

6.Structure and Content of the EU Budget
With the Merger Treaty combined the executive organs of the European Communities and
entering into force on July 1, 1967, the Community budget is formed gathering the separate
budgets of the European Coal and Steel Community (ECSC), the European Economic
Community (EEC) and European Atomic Energy Community.
Accordingly, since January 1, 1968 initially two communities made a single budget and from
1971 ECSC joined them. However, ECSC’s "operating budget" is excluded from this
application. 22 The Community budget attains an independent structure of the member
countries with the Luxembourg Agreement signed in Luxembourg April 22 1970 and came
into force on January 1 1971. Accordingly, the Community's own budget resources replaced
21 http://ec.europa.eu/budget/figures/fin_fwk0713/fwk0713_en.cfm
22 Karluk, Rıdvan, Avrupa Birliği ve Türkiye, Beta Yayınları, 5. Baskı, İzmir, Haziran 1998, s. 327.
266

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

the financial assistances received from member countries.23 After the own resources system
was introduced, traditional taxes started to be collected, and as a result of the increase in the
number of member states and the needs of more funding in the Community implemented
programs, the size of the budget has increased over time.24. However, considering activities
of the Union and the geographical area covered by the Union, the European Union's budget is
found to be quite small.
Table:Financial framework 2007 - 2013 Budget Terms of European Union25
Commitment
appropriations

Total
2007

2008

2009

2010

2011

2012

2013
2007- 2013

1. Sustainable Growth

53.979

57.653

61.696

63.555

63.974

66.964

69.957

437.778

1a. Competitiveness for

8.918

10.386

13.269

14.167

12.987

14.203

15.433

89.363

45.061

47.267

48.427

49.388

50.987

52.761

54.524

348.415

55.143

59.193

56.333

59.955

60.338

60.810

61.289

413.061

45.759

46.217

46.679

47.146

47.617

48.093

48.574

330.085

1.273

1.362

1.518

1.693

1.889

2.105

2.376

12.216

637

747

867

1.025

1.206

1.406

1.661

7.549

636

615

651

668

683

699

715

4.667

4. EU as a global player

6.578

7.002

7.440

7.893

8.430

8.997

9.595

55.935

5. Administration

7.039

7.380

7.525

7.882

8.334

8.670

9.095

55.925

6. Compensations

445

207

210

Total commitment

124.457

132.797

134.722

140.978

142.965

147.546

152.312

975.777

1,02%

1,08%

1,16%

1,18%

1,16%

1,13%

1,12%

1,12%

Growth and Employment
1b. Cohesion for
Growth and Employment
2. Preservation and
Management of Natural Resources
of which: market
related expenditure and direct
payments
3. Citizenship,
freedom, security and justice
3a. Freedom, Security
and Justice
3b. Citizenship

862

appropriations
as a percentage of GNI

23 ibid,p. 329.
24 Nugent, p.340.
25

http://ec.europa.eu/budget/figures/fin_fwk0713/fwk0713_en.cfm

267

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

The expenditure items included in the budgets of the EU fiscal year 2007-2013 is given in the
table above. As clearly seen from the table the most important item of the EU budget is
devoted to sustainable growth. In the expenditure item international competitiveness for
sustainable growth, there are goals such as to do international research, to focus on new
technologies, to support projects to help the EU is leading in key areas, to modernize etc. 26.
Expenditure item in the second row is reserved for Natural Resources. The purpose here is to
support the sustainable development of the rural population in the EU, to improve farmers'
living standards by creating a healthy environment and to reduce greenhouse gas emissions
by promoting organic farming. 27.
The EU as a global player transferred resources to the Budget, in order to create global
changes and democratic institutions of the EU. Citizenship, freedom, security and justice
areas are targeted for the use of this resource.
In fiscal year 2010 budget of the EU is 141.5 billion Euros. Every year there is approximately
2% gradual increase in the budget. For example, budget for fiscal year 2007 is 121.6 billion
Euros; budget for fiscal year 2008 is 129 billion Euros and fiscal year 2009 budget is 133.8
billion Euros. 28

7.CONCLUSIONS
Budget is an important issue in functioning the political system and administering the Union.
Since the Lisbon Treaty which plays a in the EU role came into force, some important
changes have been made in the Budgeting process. The most important change is the status of
legislature which is an important factor in the political systems. Along with the Treaty it
seems that the Parliament has an important position in the budget process as in many areas.
Indeed, in order to reform a constitution of Europe, the Lisbon Treaty came into force on
December 1, 2009 and introduced important regulations. Besides being an actor in the
international system, the Union has laid the foundations to be the state entity symbolizing
people’s unification such as flag, anthem, motto, currency, day of the establishment.
One of the regulations is the budget reminiscent of the formation of a State. The budget of the
European Union has gradually occurred as a part of EU integration process over time. The
new budgets made, if it was necessary in the course of the changing, are quite different from
the ones of any other states or institutions and have unique features and mechanism. This
situation is connected to two reasons; unidentified economic and political structure in part
26 EU Commission EY Budget 2010.
27 EU Commission EY Budget 2010.
28 EU Budget Details, official web site of the EU is; //ue.europa.eu/budget/budget_detail/last
year_en.htm
268

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

due to the complex characteristics of the European Union, on the other hand the integration
process has not reached the final stage yet. Thus the EU budget has not finalized yet. These
impressions and observations are confirmed by the changes in the preparation of the budget
procedure as well as regulations depending on needs changing over the period for the income
and expenditure items in terms of both content and ratio.
Being significantly different from the budgets of other international organizations, the
absence of defense and security spending, which hold an important portion in a state budget,
resulted in relatively small EU budget. While the EU budget is prepared, the budgeting
principles are in some way complied with. However, income and spending are equalized
within the EU Budget. Consequently, the EU cannot borrow. When the EU budget is
carefully examined, every year the budget is increased by 2%. The budget of this size is
inversely proportional to the size of its own political system which appeals to a large
geographic area and more than 500 million citizens. Member states are reluctant to transfer
resources to the EU budget yet. This situation seems to become clearer by the EU integration
process.
Despite all these limitations, when we look at the expenditure items in the budget the largest
share of the EU's budget sources are transferred to sustainable growth and sustainability of
natural resources. The Treaty of Lisbon, bringing changes to ensure the EU's and its organs’
democratic legitimacy and representation, has created new structures for the EU to allow
representation in the international arena and to eligible for the providence. The Treaty,
besides being a single and under a new identity unified the Europe as "the Union", enhancing
the role of the European Parliament in the legislative process and increasing the functional
effect of important issues such as the budget of the Union are important steps towards
becoming "United States of Europe". Adoption of the budget process being determined
through the European Parliament stands out as an important regulation of the Lisbon Treaty.

REFERENCES
European Commission, Allocation of 2001 EU operating expenditure by Member State,
Brüksel, Eylül, 2002.
European Commission, Fundamental Principles of the Community Budget,
http://www.europa.eu.int/comm/budget/budget/index_en.htm#principles , 06.03.2003.
European
Commission,
Main
Stages
of
the
Budgetary
Procedure,
http://www.europa.eu.int/comm/budget/budget/index_en.htm#stages, 06.03.2003.
Güran, Nevzat, Uluslararası Ekonomik Bütünleşme Ve Avrupa Birliği, Anadolu Matbaacılık,
İzmir, 1999.
Karluk Rıdvan, AB ve Türkiye, Altıncı Baskı, Beta Basım, İstanbul 2002
Nugent, Neill, The Government And Politics Of The European Union, Macmillan Press,
Londra, 1995.
269

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

Şahin, Ragıp, Avrupa Birliği Bütçesi - Fonları Ve Türkiye'nin Tam Üyeliği, Dpt, Ab İle
İlişkiler Genel Müdürlüğü, Ankara, 1998.
Seifert, Jan (2011:5), Change and stability in the EU budget, EU Centre in Singapore,
Working Paper, no:3, p1-16.
Tekinalp, Ünal, Tekinalp/Tekinalp, Avrupa Birliği Hukuku, Güncelleştirilmiş 2. Baskı, Beta
Yayınları: İstanbul, Mayıs 2000.
Hocaoğlu Durmuş, (2007), Türkiye ve Avrupa Birliği: Olmak ya da Olmamak, Türkhaber
Yazılar Sıra No:08-27, İstanbul, No:08-27.
Keskin Hakan; Doğru Sanılan Yanlışlarla Avrupa Birliği, AB Genel Sekreterliği Yayınları,
Ankara 2010
European Commission, Fundamental Principles of the Community Budget,
http://www.europa.eu.int/comm/budget/budget/index_en.htm#principles (access, 20.04.2012)
http://www.europa.eu.int/comm/budget/budget/index_en.htm#stages, (access, 20.04.2012)
European
Commission,
Treaty
of
Lisbon,
http://europa.eu/lisbon_treaty/full_text/index_en.htm, (access, 25.04.2012)
EU Commission EY Budget 2010.
EU 2009 Budget in figures, AB resmi internet sitesi ue. europa.eu/budget/budget_detail/last
year_en.htm
EU Budget Details, AB resmi internet sitesi ue. europa.eu/budget/budget_detail/last
year_en.htm
Akar Sevda, “Lizbon Antlaşmasının Avrupa Birliği Bütçe Sürecine Getirdiği Yenilikler ve
2010 Avrupa Birliği Bütçesi”, Marmara Üniversitesi İİBF Dergisi, 2010.
Topal Emre, “Lizbon Antlaşması İle Avrupa Birliği’nde Yasama Niteliğindeki İşlemler ve
Yasa Yapım Süreçlerine Getirilecek Değişikliklere Genel Bir Bakış”, Yasama Dergisi,
Sayı:9, 2008.
Bayram Hanifi Mehmet (2010) “Lizbon Antlaşması: Parlamentoların Avrupa Birliği Karar
Alma Sürecindeki Yeni Rolü”, Uluslar arası Hukuk ve Politika, Cilt 6.
European Commission (2008), European Union Public Finance, 4th Edition, Printed in
Belgium.

270

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                <text>In this article, the political system of European Union, which holds an important position in  the international system with the Lisbon Treaty in 2009, and its budget procedure, which is  an important issue in the political systems, are examined and investigated. States make the  budget with the aim at achieving the revenues and expenditures effectively. In 1967, with the  establishment of the EC (European Communities), the European Union (EU) as well as  national governments initiated to make the Budget. The dream of setting up the Union in  Europe has become reality as the EU has been formed. The EU plays a role as a political  actor in the international system. In this study, the political institutions of the EU reached a  position of political system and the budget positions of the institutions’ views in the budgetmaking  process are discussed. Also, the budget of the period 2007 – 2013 created after the  Lisbon Treaty is studied. The expenditure items given the highest priority in the EU Budget  such as Sustainable Growth are discussed.</text>
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                    <text>The Evaluation of an Online Practice Tool, the Views of Students and Teachers on How to
Better Use the Online
Practice Center
Ufuk Bilki &amp; Hakan Aydoğan
Celal Bayar University/ Manisa, Turkey
Key words: Online practice, evaluation, implementation, self-study

ABSTRACT
This study aims to investigate the possible reasons behind the unsuccessful implementation of an online practice
program by Oxford University Press in Celal Bayar University’s School of Foreign Languages and also attempts to
find ways to turn around this unfortunate event in the following years. After looking at the numerical data, which
showed that only 8 of the 589 students completed more than half of the practice program, the evaluator decided to
set up interviews with select students and teachers to investigate the reasons behind the unsuccessful
implementation.These 16 students along with 8 volunteer teachers from the institution were then asked several
questions in the format of a semi-structured interview. The results show that there were several different reasons
behind the unsuccessful implementation. The participants also offered some insights on how to deal with these
issues and achieve a healthier practice program. The researcher hopes that this evaluation would prove useful in
providing new ideas for future administrations of the program.
Today most language schools boast big computer labs with state-of-the-art computers for each student, many
teachers prefer to ‘hand out’ the external materials on-line, libraries slowly wane while search engines and ‘wikis’
grow to fill in, and students often ‘blog’ for millions to read and comment on instead of writing to their pen-friends
who may or may not respond within the month. The self-study books and resources also grew in abundance and
students can now easily find many opportunities to practice the target language in a number of paid or free sites
which cover the language thoroughly from exercises on form to authentic listening or speaking tasks.
This study aims to investigate the several possible reasons behind the unsuccessful implementation of such an
online practice in the Celal Bayar University School of Foreign Languages.

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                <text>Key words: Online practice, evaluation, implementation, self-study  ABSTRACT  This study aims to investigate the possible reasons behind the unsuccessful implementation of an online practice program by Oxford University Press in Celal Bayar University’s School of Foreign Languages and also attempts to find ways to turn around this unfortunate event in the following years. After looking at the numerical data, which showed that only 8 of the 589 students completed more than half of the practice program, the evaluator decided to set up interviews with select students and teachers to investigate the reasons behind the unsuccessful implementation.These 16 students along with 8 volunteer teachers from the institution were then asked several questions in the format of a semi-structured interview. The results show that there were several different reasons behind the unsuccessful implementation. The participants also offered some insights on how to deal with these issues and achieve a healthier practice program. The researcher hopes that this evaluation would prove useful in providing new ideas for future administrations of the program.  Today most language schools boast big computer labs with state-of-the-art computers for each student, many teachers prefer to ‘hand out’ the external materials on-line, libraries slowly wane while search engines and ‘wikis’ grow to fill in, and students often ‘blog’ for millions to read and comment on instead of writing to their pen-friends who may or may not respond within the month. The self-study books and resources also grew in abundance and students can now easily find many opportunities to practice the target language in a number of paid or free sites which cover the language thoroughly from exercises on form to authentic listening or speaking tasks.  This study aims to investigate the several possible reasons behind the unsuccessful implementation of such an online practice in the Celal Bayar University School of Foreign Languages.</text>
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                <text>THE EVALUATION OF EFL TEACHER EDUCATION PROGRAMS IN TURKEY FROM THE PERSPECTIVES OF PRE-SERVICE EFL TEACHERS AND THEIR INSTRUCTORS</text>
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                <text>The fact that teacher education programs need a systematic evaluation has been emphasised by many researchers (i.e. Richards, 1990, Wallace, 1991)). The present study aims to investigate the pre-service EFL teachers’ views on EFL teacher education programs they attend in Turkey and their instructors by means of Peacock’s (2009) recent evaluation model. The present study is based on the data collected from fourth grade pre-service EFL teachers and their instructors via questionnaires and interviews. The results obtained through data collection tools revealed that the pre-service EFL teachers had a strong agreement in general with the program they were attending. However, the program seemed to have some shortcomings from the perspectives of pre-service teachers and their instructors and they put forward some suggestions to be taken into consideration to overcome those shortcomings.</text>
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                    <text>2nd International Symposium on Sustainable Development, June 8-9, 2010 Sarajevo

The Examination of Relationship between Social Support, Social Selfefficacy and Submissive Behavior
Mehmet Çardak
Ministery of Education, Turkey
mcardak@hotmail.com
Murat Đskender
Sakarya University, Faculty of Education, Turkey
iskender@sakarya.edu.tr
Mustafa Koç
Sakarya University, Faculty of Education, Turkey
mkoc@sakarya.edu.tr

Abstract: The purpose of this research is to examine the relationship between social support,
social self-efficacy and submissive behavior. Participants were 317 university students who
completed a questionnaire package that included the Submissive Behavior Scale, the Social
Self-efficacy Scale and the Multidimensional Scale for Social Support. The data were tested
by correlational analysis. According to results; submissive behavior was related positively to
social support and negatively to social self-efficacy. Results were discussed in the light of
literature.

Introduction
Submissive behavior is a set of observable personality traits which involve avoiding to break others, trying to
make everyone happy, being inclined to be very helpful, having difficulty with expressing the conditions s/he
does not approve, having difficulty with expressing his/her anger, having difficulty with saying “no" and being
inclined to say "yes", feeling the urge for continuous approval, being unable to defend their rights and thoughts
(Göktuna, 2007). behaviors which start in an early age of childhood is a desired and admired feature as
unconditional submission to orders of the state and authority in the local culture (Cüceloğlu, 2003) and in other
words is dominant in the interpersonal relationships in Eastern culture rather than Western culture (Yildirim,
2003). There are cultural differences in the ways of submission. Some cultures give more importance to
submission than other cultures (Karaoğlu, 2007). Individuals who feel themselves to be low rank, with a
tendency to behave submissively, may be more self-focused to ensure monitoring of expressed behavior
(Cheung, Gilbert, Irons, 2003). There are views, which suggest that submission is emerged with the effect of
imitation and learning from a model. As it is in many behavior types, an individual may be inclined to act the
way he observed in someone else.
It was found that submission is more frequently observed in those who live in the nuclear family and males.
Even if it is accepted that women are exposed to more violence and pressure in a male dominant social structure,
it is a wonder that males are more inclined to develop conformist behavior (Kaya, Güneş, Kaya, Pehlivan, 2004).
Based on findings on different researches, one can assume that dominance is more male-typed whereas
submissiveness is more female-typed. However, this interpretation is only speculative and the gender-typed
nature of dominant and submissive acts has yet to be clearly ascertained (McCreary &amp; Rhodes, 2001).
democracies, it is possible and expected not to be conformist; in totalitarian systems only a few outlaw heroes
and people fighting for an aim are expected to reject submission. But despite this difference, conformism is
observed in the overwhelming majority in a democratic society. The reason for this lies in the fact of having to
find an answer for the concept of unity or be a part of the group by conforming if a better solution cannot be
found. If the core of necessity of thinking differently is understood, the strength of the fear of being different and

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�2nd International Symposium on Sustainable Development, June 8-9, 2010 Sarajevo
being a few steps away from the flock may be understood. Fear of not being conformist turns into a potential
threat of the fear of practical principles in the mind of the nonconformist. But in reality, people, at least in
Western democracies, are more willing to conform than they are compelled to act so (Fromm, 1998).
Gilbert et al (2003) claim that submissive behavior is then a tactic of defense and not a personal judgment.
Apsler (1975) found that humiliating people and making them anxious increases submission. According to this,
the reason of increase in submission results from the fear that person’s fault will be displayed or the willing to
get rid of the uneasiness rather than the self-anxiety of showing himself/herself better in public (Freedman,
Sears, Carlsmith, 1993). Lewis and Michalson (1983) one of the four factors in the emergence of anger is to
have to obey the orders and sanctions or pressure or force to do something that the individual does not want to
(Özmen, 2006). This condition constitutes an important factor in the deterioration of mental health of people.
Studies conducted revealed significant relations between submissive behavior and depression (Gilbert, 2000;
Gilbert, Cheung, Grandfield, Campey, Irons, 2003).
Social support attributes to the supportive behaviors and resources of our social ties, including emotional
support, intimacy, positive interaction, and tangible support (House, 1981; Williams et al, 2008). It can include
emotional support, instrumental support, appraisal support, and informational support (House, 1981; Glazer,
2006). Social support has a positive influence on the ability to cope with negative life events. The beneficial
effects of social support may occur through protecting individuals from the harmful effects of stress (Lakey &amp;
Cohen, 2000), contributing to adjustment and development (Clark, 1991), raising self-esteem (Lakey &amp; Cassady,
1990; Kinnunen, Feldt, Kinnunen, Pulkkinen, 2008), and well-being (Sarason, Pierce, &amp; Sarason, 1990; Cohen,
&amp; Wills, 1985). It reduces the intensity of the post-traumatic reactions and predicts better overall adjustment
following a traumatic experience (Keppel-Benson, Ollendick, &amp; Benson, 2002; Neria, Solomon, &amp; Dekel, 1998),
symptoms of distress and psychopathology (Lindorff, 2000), and symptoms of illness (Dolbier &amp; Steinhardt,
2000). Studies about social support have shown significant relations between lower social support and
depression (Keiley, Lofthouse, Bates, Dodge, &amp; Petit, 2003; Young, Berenson, Cohen, &amp; Garcia, 2005), conduct
problems (Appleyard, Egeland, &amp; Sroufe, 2007), academic performance (Heard, 2007), and depressive
symptoms and hopelessness (Yang, &amp; Clum, 1994).
Social self-efficacy, one aspect of effective social skills, refers to a readiness to initiate behavior in social
conditions (Sherer &amp; Adams, 1983; Smith &amp; Betz, 2000) and it also can be considered as the student’s
expectancy that they can successfully perform or complete a target behavior in an academic or everyday
situation involving social interaction (Connolly, 1989; Gresham, 1984). It is important not only in its possible
relationship to effective social behavior but also it has been widely applied to psychological adjustment and
mental health. Social self-efficacy skills mediated the relationship between stressful life events and depressive
symptoms (Maciejewski, Prigerson, &amp; Mazure, 2000). It has been consistently shown to be related to higher
levels of global self-esteem (Connolly, 1989; Hermann &amp; Betz, 2004, 2006; Smith &amp; Betz, 2002). Bandura,
Barbaranelli, Caprara, and Pastorelli (1996) found that social self-efficacy was related to the emotional wellbeing of high school students. Research has also indicated that lower levels of social self-efficacy are related to
higher levels of depression (Hermann &amp; Betz,2004, 2006; Smith &amp; Betz, 2002), attachment anxiety
(Mallinckrodt &amp; Wei, 2005) and positively related to loneliness and social dissatisfaction (Galanaki &amp; KalantziAzizi, 1999).

1. Method
1.1. Participants
Participants were 317 university students enrolled in various undergraduate programs at Sakarya University,
Turkey. Of the participants, 91 were first-year students, 67 were second-year students, 79 were third-year
students, and 80 were fourth-year students. One hundred and fifty-two of the participants (48%) were females
and 165 (52%) were males. A large majority of the students (94%) were between 17 and 22 years of age.

1.2. Measures
Submissive behaviors were measured by Submissive Acts Scale (SAS, Gilbert &amp; Allan, 1994). Turkish
adaptation of the SAS had been done by Şahin and Şahin (1992. The adolescents were asked to indicate their
degree of agreement with each statement on a 5-point scale ranging from this is a very bad description of me to

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�2nd International Symposium on Sustainable Development, June 8-9, 2010 Sarajevo
this is a very good description of me. The scale consists of 16 items (e.g., ‘‘Even if I don’t like it, I do things just
because other people are also doing them.’’ and, ‘‘I allow other people to criticize and let me down and do not
defend myself.’’).
The Perceived Social Self-efficacy Scale (PSSS) was developed by Smith and Betz (2000) and contains 25 items
on a 5-point Likert-type scale (1 = strongly disagree to 5 = strongly agree). A sum of all scores yields a total
score that ranges from 25 to 125; higher scores indicate higher level social self-efficacy. Turkish adaptation of
this scale had been done by Palanci (2004). The Cronbach a internal consistency coefficient of the adapted
Turkish form was .89. For test–retest reliability the scale was administered to 100 undergraduate students twice
in 4 weeks. The Pearson correlation coefficient was .68.
Social support was measured using Turkish version of the Multidimensional Scale for Social Support (MSPSS,
Zimet et al., 1988; Eker, Arkar, 1995). The MSPSS consists of 12 items on a 7-point Likert scale, from not
suitable at all (1) to very suitable (7). The students’ self reports also provided scores on three subscales, each
subscale comprising four items:
(a) family social support subscale, containing items such as ‘‘I can discuss my problems with my family’’ and ‘‘I
get help and emotional support from my family’’;
(b) friends’ support, consisting of items such as ‘‘I have friends with whom I can share my happiness and pain’’
and ‘‘I can count on my friends when problems arise’’;
(c) the significant other’s support, with items such as ‘‘I have a close person who can encourage me’’ and ‘‘I
have a close person who supports me when I am in need’’.
Scores for each of this scale range from 12 to 84, where a higher score expresses higher social support.

2. Results
2.1. Descriptive Data and Inter-correlations
When Table 1 is examined, it is seen that there are correlations between submissive behavior, social self-efficacy
and social support. Submissive behavior related positively to social support (r = .11) and negatively to social
self-efficacy (r = -.51).
Variables
1. Submissive behavior
2. Social self-efficacy
3. Social support
Mean
Standard deviation
**
p&lt;.001, *p&lt;.01

1
1.00
-.51**
.11*
51.30
7.49

2

3

1.00
-.09
77.86
10.56

1.00
60.98
14.57

Table 1: Descriptive Statistics and Inter-correlations of the Variables

2.2. Gender differences
When Table 2 is examined, there were no significant gender differences in submissive behavior, social selfefficacy and social support.

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Variable
Submissive
behavior
Social self-efficacy
Social support
***
p&lt;0.001

Females (N=152)
Mean
SD

Males (N=165)
Mean
SD

t

p

51.52

6.79

51.09

8.10

.60

.61

77.86
60.98

11.15
14.83

79.55
61.32

9.96
14.37

-1.42
-.21

.15
.83

Table 2: Gender Differences in Submissive Behavior, Social Self-efficacy and Social Support

3. Discussion
The aim of this study was to investigate the relationships between social support, social self-efficacy and
submissive behavior. Findings have demonstrated that there are relationships among these variables. Firstly, as
hypothesized, submissive behavior predicted social self-efficacy negatively and social support positively.
Recent studies on lower levels of social self-efficacy are related to higher levels of depression (Hermann &amp; Betz,
2004, 2006; Smith &amp; Betz, 2002), attachment anxiety (Mallinckrodt &amp; Wei, 2005) and positively related to
loneliness and social dissatisfaction (Galanaki &amp; Kalantzi-Azizi, 1999) and emotional well-being (Caprara, &amp;
Pastorelli, 1996). Similarly, higher social support was found associated positively with well-being (Zimet et al,
1988) and negatively with depression (Keiley et al, 2003; Young et al, 2005), conduct problems (Appleyard et al,
2007), academic performance (Heard, 2007), depressive symptoms and hopelessness (Yang, &amp; Clum, 1994).
Research findings have demonstrated that there are no gender differences among social support, social selfefficacy and submissive behavior. The gender-typed nature of dominant and submissive acts has yet to be clearly
ascertained (McCreary &amp; Rhodes, 2001).
This study has several implications for future research. Firstly, further research investigating the relationships
between social support, social self-efficacy and submissive behavior, and other psychological constructs are
needed, to reinforce the findings of this study. In addition interventions focused on increasing social support and
social self-efficacy can be useful in decreasing submissive behavior.
This study has several limitations. First, participants were university students and replication of this study for
targeting other student populations should be made in order to generate a more solid relationship among
constructs examined in this study, because generalization of the results is somewhat limited. Second, the data
reported here for social support, social self-efficacy and submissive behavior are limited to self reported data. So,
the current findings increase our understanding of the relationships social support, social self-efficacy and
submissive behavior.

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İskender, Murat
Koç, Mustafa</text>
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                <text>The purpose of this research is to examine the relationship between social support,  social self-efficacy and submissive behavior. Participants were 317 university students who  completed a questionnaire package that included the Submissive Behavior Scale, the Social  Self-efficacy Scale and the Multidimensional Scale for Social Support. The data were tested  by correlational analysis. According to results; submissive behavior was related positively to  social support and negatively to social self-efficacy. Results were discussed in the light of  literature.</text>
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                    <text>The Exchange Rate in Albania and its Connection with Import-Export
Alba Cani
Epoka University
Albania
acani10@epoka.edu.al
Abstract: Recently, trade agreements among different countries are becoming more and more
important. Exchange rate and its volatility are important elements taken into consideration
when these trade agreement and exchanges are done. The history of Albania has had crucial
developments in different periods. These changes and developments have had an impact not
only in policy making process but also in the way how economic policies are compiled.
Among the most important economic actions undertaken in the transition period is the
adoption of flexible exchange rate. This paper is an attempt to explain the relationship that
exists through the exchange rate and import-export as this is one of the traditional methods
for long-term analysis taken into consideration in studying this connection. The aim of this
research paper is to analyze the way how these variables are connected to each-other and to
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Albania. This study examines the effect of exchange rate volatility in imports and exports by
using multiple regression analysis with exchange rate as dependent variable and trade
balance, remittances, government spending as independent variables. Thus, an empirical
method is used in order to prove whether there is a relationship between the exchange rate
and its variables and import-export. Moreover, a detailed analysis of exchange rate volatility
on trade balance connection is included. All the data are taken by Bank of Albania, Instat and
World Bank and all the values of variables are in million Albanian Leke. The analysis is
based on respective values of above mentioned variables for the period from 1996-2010 for
Leke-Dollar exchange rate and from 1999-2010 for Leke-Euro exchange rate. The findings of
this study conclude with the result that exchange rate volatility does not have significant
impact on import because some of the products that Albania imports are basic products
regarding the inelastic demand of these products. On the other hand, exchange rate volatility
affects exports as exports are directly related with exchange rate volatility.
Keywords:Exchange Rate, Volatility, Import, Export, Regression Analysis, Trade Balance,
Government Spending.

86

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                <text>Recently, trade agreements among different countries are becoming more and more important. Exchange rate and its volatility are important elements taken into consideration when these trade agreement and exchanges are done. The history of Albania has had crucial developments in different periods. These changes and developments have had an impact not only in policy making process but also in the way how economic policies are compiled. Among the most important economic actions undertaken in the transition period is the adoption of flexible exchange rate. This paper is an attempt to explain the relationship that exists through the exchange rate and import-export as this is one of the traditional methods for long-term analysis taken into consideration in studying this connection. The aim of this research paper is to analyze the way how these variables are connected to each-other and to explain which factors have influenced in the volatility of exchange rate in these years in Albania. This study examines the effect of exchange rate volatility in imports and exports by using multiple regression analysis with exchange rate as dependent variable and trade balance, remittances, government spending as independent variables. Thus, an empirical method is used in order to prove whether there is a relationship between the exchange rate and its variables and import-export. Moreover, a detailed analysis of exchange rate volatility on trade balance connection is included. All the data are taken by Bank of Albania, Instat and World Bank and all the values of variables are in million Albanian Leke. The analysis is based on respective values of above mentioned variables for the period from 1996-2010 for Leke-Dollar exchange rate and from 1999-2010 for Leke-Euro exchange rate. The findings of this study conclude with the result that exchange rate volatility does not have significant impact on import because some of the products that Albania imports are basic products regarding the inelastic demand of these products. On the other hand, exchange rate volatility affects exports as exports are directly related with exchange rate volatility.    Keywords:Exchange Rate, Volatility, Import, Export, Regression Analysis, Trade Balance, Government Spending.</text>
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                    <text>2nd International Symposium on Sustainable Development, June 8-9, 2010 Sarajevo

The Experimental Fieldwork Study of Methodology, With Classification,
On The Collected Bosniak Folk Tales and Identification of These Tales
With Their Evaluation
Yusuf Ziya Sümbüllü
Adnan Menderes University
Faculty of Arts and Sciences /Turkey
yzsumbullu@yahoo.com
Abstract: Tale, which has been the subject of research studies in Bosnia-Herzegovina and
around the world, is a type of oral narrative which doesn’t have to be plausible, yet may make
the reader believe in its plausibility; based on morality, useful and didactic; whose source
dates back to ancient times and which are marked with characteristics from time and culture
they were created in. There has been different opinions about the sources and classification of
the tale which is in close relation with different sorts of narration. The history of tale extends
back to the ages without writing however the history of tale studies could only be extended to
the beginning of 20th century. The aim of this study is to bring interpretation to in particular,
Bosanski tale culture, and in general, study of tales, in relation with the function and context
of the fairy tale, the narrator, and the listener. By transferring social values from one
generation to another, tales provide the continuity and unity of community in terms of training
the young generations in a better way. Therefore, tales are important with their role and power
on guiding and shaping new generations lives.

Introduction
The Balkans which are found on the strategic point where Black sea and Mediterranean sea touch each
other are on the position of extension where old continent Europe connects with the East.( Selver, 2003) This
strategic position which stems from geographical position of the Balkans is reflected in historical, political, and
cultural facts.( Yürür, 2007)
The region of overlapping Muslim, Christian and Jewish believes, the geography for triggering I and II
world wars, this seems that as in history being away from the centers of heat and movement it will not loose on
own importance in present and future. (Seyhan, 2007) Located in the center of Balkan region Bosnia and
Herzegovina consists of three founding nationalities Bosniaks, Croats and Serbs. In the country word the
Bosniak is usually identified with Muslim, Croat with Catholic, and Serb with Orthodox religion. Only in the
Bosnia and Herzegovina from time to time ‘Bosnian’ and ‘Bosniak’ can be used as synonyms. On the “Muslim
Intellectual Congress” in 1993 the name Bosniak was accepted and in this sense nation in question prior to 1993
was defined as “Bosniak”. Bosniaks, Croats, and Serbs all together belong to the South Slavic branch of people,
but when ethnicity is taken into account other factors in terms of cultural and religious preferences are peculiar
to them.
Each society preserves own cultural values and national identity with the lookout for their continuity.
Be it material or if necessarily spiritual facts of culture, important part of them is consisted of the oral products.
Among the fruits of oral culture the fairy tales play more important role in educational sense then the other
kinds, they do not serve only the purposes for spending of time or to have a fun, but they rather firstly aim to be
coding products of the society’s views on life. Important part of the Bosniak oral culture is fairytales whose
structural characteristics constituted the starting point for our study.
Types of Fairy Tales
In the scope of folk literature products which are based on narration at the first place comes fairytales. The
fairytales are anonymous works in an unknown time, at undetermined place, happening to imagined persons
narrating a dangerous situation(s) happened to those persons. They are based on past and are important but at the
same time are related to present. The most popular in the oral literature is the type of fairytale depicting
knowledge models of individual and social life which is orally transferred from generation to generation. (Elçin,
1986) The fairytale which is defined as story said to children and mostly decorated with the supernatural events
to attract attention (Agakay, 1966 ), was subject to many researches in the world. Definition of the fairytale can
change in accordance of time and people. While Ahmet Vefik Pasa in his work called Lehçe-i Osmânî
say:”Saying , still story, saga, in paragraph without thesis, informal postulate” Muallim Naci the word fairytale
defines as: ”Saga, the famous story”.

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As opposed to this Semseddin Sami in Kâmûs-i Türkî defines fairytale as: “A small story related to
manners, morals and advices”, while Hüseyin Kâzım Kadri define in Türk Lügati:”Arabic parable, example of
story, legend, saga” , Ferit Devellioglu in Ottoman-Turkish encyclopedic dictionary defines as: “Useful story
purposed for discipline and good manners” (Sakaoğlu, 1995)
While according to the Pertev Naili Boratav fairytale is; “Short narration said with prose, independent from
religious and magic beliefs and customs, entirely fiction, unrelated to reality without pretension to convince
those who listen to it. (Boratav, 1982) While Şükrü Elçin defines fairytale as:”In such a time, connected to a long
tradition, with collective character, with a set of topics like; ‘dream-reality’, ‘abstract-concrete’, ‘materialspiritual’, then set of elements like adventure, case, problem and motive, narrated with the language of prose to
spend a time, to educate people while having fun with the idea of moving, is written or said in a distinctive
style”.
Bilge Seyidoğlu says: “Fairytale is a specific oral type said among folk for centuries, contains supernatural
persons and events, starts with clichés like “once upon time”, has a certain length, ends with words like “ate,
drank, reached goal”, or “they achieved their goals let us be on their positions now”, “three apples have fallen
from the sky one to the narrator, one to listener and one to me”, it is also without specified place and time.
(Seyidoğlu, 1986)
Umay Günay says:”According to the most widely assent logic of fairytales are life stories narrated in a
distinctive way. Those life stories generally reflect the world different than ours, realize impossible, make heroes
happy at the end and give hope to those who listen.(Günay, 1992) While Esma Şimşek defines fairytale as
following: “Type of oral narration product which starts with cliché words, said by private persons in self
purposeful framework of (supernatural) time, place and person, describes the real life lived together with
imagined life in a systematic way” ( Şimşek, 2001)
General Characteristics of The Bosniak Fairytales
Bosniak fairytales from the general aspect of structure, framework, topic and heroes have common
characteristics of the other fairytales. In this sense it easily can be expressed that Bosniak fairytales are generally
similar to the other fairytales. But, with all similarities to the fairytales of the other people Bosniak fairytales
again have their own distinctive characteristics. This distinction can be explained with the society’s cultural,
economic and historical development in the civilization process. (Nametak, 1998) The Bosniak fairytales as
stated above, although in terms of structural characteristics are universal, their mainline is national. It is because
Bosniak fairytales reflect altogether interests of the Bosniak society, its needs and expectations with the views of
life.
These fairytales from the core give knowledge about Bosniak cultural structure, language
characteristics, ways of life, religious and historical facts in such a way that from these aspects Bosniak fairytales
are different than other fairytales in the world. Perhaps one of the most important distinction of the Bosniak
fairytales which makes them national is the synthesis format that stems from the interaction of belief and culture.
As a members of the South Slavic branch Bosniaks were exposed to the beliefs of Bogumil Christianity for a
long time, in 1463 when starts Ottoman conquest they are directed to the process of Islamization that lasted for
200 of years. Be it ethnic structure or the cultural one, the influence of the new civilization circle was inevitable,
and by the time ambivalent expressions in fairytales like mosque-church, Ayşe- Stefan, imam-monk, sultan-tzar
seem to become a national character. ( Goric, 1976)
One of the most important features of the Bosniak fairytales is stability in the specter of optimist views.
In these fairytales there is no insurmountable obstacle, punishments are not creepy, the evil ones instead of
being negative are rather passive and sometimes even in a funny role, narrator and listener are not concerned that
heroes and good ones will succeed and this is more obvious than in the fairytales of other nations. In the
Bosniak fairytales the most important stance is being very flexible with status quo.
The youngest son of the poor family, the only son, the only daughter, extraordinary intelligence, taking
help from supernatural beings because of the benevolent structure can be reason for changing the social class at
once. Motives like; poor young man who becomes tzar, young man who marries tzar’s daughter, poor girl who
becomes sultan’ bride, king who is in pathetic situation, expulsion of evil vezir from palace, when step-mothers
evil becomes obvious and etc. are characteristics which show that Bosniak cultural structure does not have
strong influence of bourgeois as it is case in the European fairytales. It is important to emphasize that during
collecting and reviewing of 50 Bosniak fairytales which we had chance to find beside fairytales with
supernatural characteristics there are also tales which focus the real life.
Characters like king, tzar, ban, sultan, vezir, poor young man, poor girl, step mother, black smith,
landlord, baker and etc. are the heroes which turn Bosniak fairytale to real life. Of course it is completely
normal in Bosniak fairytales to meet frequently together with characters from the real life supernatural characters
like demon, devil, nymph, titan, witch and etc. As it is known the fairytale is distinguished from other narrations
not only by fiction but also by inquiries of time, place and person.

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Bosniak fairytales usually are realized in unknown part of a time. Long time ago, in very old time, in a
time out of a mind and etc. are concepts of time that we meet in Bosniak fairytales. In the Bosniak fairytales
place is with the main lines of the fairytale lands, sometimes is undetermined and sometimes it is real places
like Istanbul, Sarajevo, Herzegovina and etc. As in the case of place notions Bosniak fairytales give the similar
notions of persons who are sometimes real sometimes imaginary. Those Bosniak fairytales that were subject to
our review give are shaped in framework of the most obvious messages like: the truth will be rewarded, evil will
not be without response, justice will triumph, importance of work, damages of lies and etc.
All Bosniak
fairytales finish with happy end.
This case is appropriate for the usual type of fairy tale fiction. The powers which represent good,
beautiful, the right, fighting with the accumulated powers of evil make that good is rewarded and evil punished
what at the end gives positive sense to the aim of the fairytale. This fact prepares Bosniak fairytales for the
ground of pretty contrast elements like: good-evil, beauty-ugliness, justice-injustice, smart-stupid, big-small and
etc. It is important to emphasize those most important contrasting elements in the Bosniak fairytales.
There is no impossible in the world of fairytales and this base is also important source for the Bosniak
fairytales. Insurmountable mountains, on travelling with winged horses, magic wand with ring, with sword,
unopening doors, with magic word, roads old hundreds of years etc. all this can be opened with just one closure
of eye. ( Softic, 1977)
Classification of The Bosniak Fairytales
As a result of our collecting and translation of the 50 fairytales which we had possibility to reach
according to the international Andre-Arne catalogue of the fairytales it is possible to distinct three main groups
of the Bosniak fairytales: supernatural fairytales, animal fairytales, and realist fairytales. .
A. Supernatural Bosniak Fairytales
Those fairytales which constitute majority of the Bosniak fairytales in the main line are mythological in
the origin. The majority of these fairytales has a universal aspect when characteristics of fiction are taken into
account. In terms of motive patterns these supernatural fairytales are in the parallel view of fairytales that belong
to other nations.
Elements valued in Bosniak culture should not be kept out of a sight. General view of the Bosniak
supernatural fairytale is that they are in the framework where hero with help of other objects crosses many
barriers and takes emperors daughter or takes the power of magical object. Those fairytales usually start when
poor young man in search for solution of the situation leaves his home. Solving quiet hard problems he reaches
his aim with his intelligence and courage and the help taken some times from the supernatural objects. Evil,
unjust, tzar, sultan, witch, titan, step mother, wizard and trouble maker, if they are old die, lose their position or
are turned into some another object.
In the supernatural Bosniak fairytales part of the supernatural beings like nymphs, titans, demons,
dragoons, flying horses, lord of snakes and etc. helps the hero while part of these supernatural beings are in
mission to make the task for hero more harder. In the supernatural fairytales the enemy is usually strong, very
dangerous and particularly very powerful. Their strength is much stronger than the strength an ordinary people.
However as it is said above in the Bosniak fairytales there is no place for the impossible. Tasks like to reach soul
of a hidden titan at the bottom of the sea, taking a magical ring which is source of power from a wizard woman
that she does not feel it, despite of their hardship never can result with failure. (Softic, 1977)

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B. Bosniak Animal Fairytales
As it is known emergence of fairytales related to animals is older compared to other fairytale types.
Considering educational aspect of these fairytales which can have characteristics of human-animal or as allegoric
animal-animal relations we can say that they are the most practical means of communication. In these fairytales
animals identify themselves with human characteristic and in onomatopoeic art speaks, thinks, argues,
humiliates, and understands as a man. Bosniak animal fairytales are in the format where relations humansanimals, and animals-humans are depicted as relations between humans. In some animal fairytales dialogue
between humans and animals even if it is little, still exists. In this fairytales we see animals as helping people
who have right attributes or in a mission of competitor to an evil person or greedy person.(Softic, 1977) As it is
case with the fairytales of other people in the Bosniak fairy tale animals like wolf, fox, bear, lion, snake and etc.
are symbolically identified with some human characteristics which stem from their nature, some of those
characteristics are smartness, greed, honesty and etc. In these fairytales physically stronger and wilder animals
stand in opposition to meeker, small, and thin animal, with their anger, greed, being dishonest and etc, they are in
function of reflecting the human relations.
C. Bosniak Realist Fairytales
The realist fairytales are more focused on the daily life that we know than the other two types. In the
Bosniak realist fairytales, the tale events and heroes are shaped in the framework of heroes and events that we
can meet in any moment in the daily life. Young girl, young man, poor peasant, rich man, step mother, merchant,
robber, end etc. actors and actresses of the daily life, social and moral topics like honesty, injustice, justice,
generosity, helpfulness and etc. the natural manners that man takes altogether. ( Hörmann, 1976)
It is not striking that in the Bosniak realist fairytales this type of characteristics helps to the heroes to
cross all barriers and achieve their aims without any supernatural help. In these fairytales there is no flying horse,
magical stick, or nymph which helps to the hero. The hero with his intelligence, honesty, hard working,
courage, intuition and personal skills succeeds in winning his competitors and reaches the happy end.
In the Bosniak realist fairytales there are opposites on the main lines like; breaking of moral principles
of society or individuals, good-evil, justice-injustice, hard working-laziness, smartness-stupidity, greedsatisfaction. Naturally in this type of the fairytales good is rewarded while evil is sanctioned. However in the
realist fairytales differentiate from other two types because rewards and sanctions are more in reasonable.
(Softıc, 1977)
The Formal Structure of The Bosniak Fairytales
The formal is defined stereotyped expression having exact particular shape. The fairytale formals firstly
aim to take listener from the real life, have listener’s attention, bring him to imaginary world, make him more
interested into the fairytale, give time to the narrator from the unknown point, using own skills of narrator he
gives the purpose of the tale. The Bosniak fairytale formals are in the order as follows below\
1. Staring formals
In the Bosniak fairytales the starting formals are a little bit out of the usual standard rhyme form. In the
Bosniak fairytales the staring formals on the main lines are: once upon time, in ancient times, in one of the times,
in ancient time when demons, titans and humans all lived together., in old times.
2. Passing Formals
The passing formals in the Bosniak fairytales are merely used. Except couple of examples in those
fairytales, we do not have them.
Months and months and years and years have passed after, less gone, nice gone, went one step to go away.
3. Ending Formals
Bosniak fairytales usually finish with the same ending formals.
They reached their goals, they have become happy, were happy, made a huge wedding, and lived happily after.
4. Number Formals
In the Bosniak fairytales the numeric formals show the uniting characteristics of eastan west. Among
the numbers listed below number 3 is seen more frequently than the others. Three girls, three boys, three titans.

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While it can be seen that number 40 is more popular than other numbers after number 3. 40 titans, 40 gates, 40
bandits. Numbers in the fairytales can be listed as following: 3, 5, 7, 9, 10, 11, 21, 22, 40,
5. Time Formals
One of the most important distinctions of the fairytale narrations is undetermined time. The Bosniak
fairytales in this case do not show big structural difference from the fairytales of other people. The expressions
of time in the Bosniak fairytale are as day, month and year. 3 days, 5 days , 7days, 3 months, 5 months, 10
months, 3 years, 5 years, 40 years.
6. Colors
In the Bosniak fairytale we face color as related assets associated with function. For example if the
demon is dark this mean he is very strong and dangerous, of horse is white this means he is supernatural. In this
sense colors used in the fairytales are as following: black, white, yellow, red, blue.
7. Place Formals
The most important characteristic of the fairytale is imaginary plot for place. It is impediment without
which Bosniak fairytale cannot exist. It is possible to compare these places with the places in the real world. It is
important to emphasize that in Bosniak fairytales places are under cultural influence as it is case in Turksih
culture. Istanbul, Bosna, Sarajevo, Krajina, Travnik…
Characters in the Bosniak Fairytales
The first characters who took our attention in the Bosniak fairytales during reviewing is hunter-hero
type. To hunt, it is self desire of a tzar who goes on journey, meets with supernatural beings or fighting with evil
rulers, where he wins and his noble characteristics of hunter and tzar are listed.
Another character that we meet in the Bosniak fairytales is the small boy character. The character of the
small boy is widely spread not only in the Bosniak fairytales but in the fairytales of other nations, in Bosniak
fairy tales it is a character of hunter-hero who either has ability to save people from supernatural beings, or is in
the arbitrary function among siblings who quarrel and fight each other.
One more character that we meet in the Bosniak fairytales is the bald character who with the main lines
belongs to the Turkish fairytale character of the “bald boy” (keloğlan). In the Bosniak fairytales we see him
successful with his vigilance, intelligence, and supernatural adventures which from time to tome need courage.
In those fairytales poor bald thanks to ingenuity and foresight changes his status by marrying the tzar’s daughter.
Another character in the Bosniak fairytales is the character of the poor young boy. In those fairytales
because of search for the solution of material problems young man leaves old mother and father and way leads
to one country. Under very hard conditions he succeeds with supernatural support to kill huge demon or dragoon
which was the main problem of the country and as a reward marries the kings daughter.
One more character that we meet in the Bosniak fairytales is old wise man. This character who is in
mission to help a hero in the hardest times, he fulfills his duty by giving useful advices to hero how travel of
fight efficiently.
One of the very important types that appears in the fairytales is also the type of step mother. We can see
her sometimes having also supernatural abilities, wants to remove daughter of her husband from the previous
marriage, plays with all possible options without fear, but at the end is always defeated and gets punished.
The last character we will present in the Bosniak fairytale is trouble maker or witch. In those fairytales
young girl or old woman, represented as very ugly being, is one the most important rivals of heroes. Despite of
her supernatural abilities, she cannot save herself from the defeat by hero and is mostly punished with death.

Conclusion
Bosniak fairytales in terms of quality and quantity keep very important place in the Bosniak folk
literature. Type of tale which has the duty to save cultural values and transfer them to the new generations, are
big concern because they are unfortunately forgotten very fast from the folk memory and there is lack of interest
into field work to collect products of Bosniak culture. Rich both in fiction and structural elements, pretty rich in
motives the Bosniak fairytales as it is said in the introduction have their own standing between east and west.
Perhaps more attention is needed to the unknown period and elements of Islamic culture which occurred under
specific circumstances when those these fairytales were shaped and re-shaped.
Historical and social processes in their own conditions on the core of the human community transferred
to future generation as any kind of material of spiritual culture as a whole are called culture. Culture which
makes one society to be distinctive from another represent DNA of that society. Concern for protection of

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�2nd International Symposium on Sustainable Development, June 8-9, 2010 Sarajevo
cultural values is so important that question of national independence and national consciousness is nothing less
important. A community’s perception, thinking and way of life directly overlap with the cultural views. As
mentioned before importance of culture is vital what makes especially oral culture being more important with all
types of narration in itself what again makes protection and recording of these types a must. Balkans which
connect the Europe to the east have Bosnia and Herzegovina hosting the richest cultural samples as it is
perceived, that will be even more richer when Bosniaks as one of the three constitutive nations start discover
own cultural treasury.

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References
Boratav, P.N., (1982) 100 Soruda Türk Halk Edebiyatı, Gerçek Yay.,Đstanbul
Elçin, Ş., (1986) Halk Edebiyatına Giriş, Akçağ Yay., Ankara
Goric, M., (1976) Narodna Proza, Price Puslovice Pıtalıc I Zagonetke, Vaselin Masleca, Sarajevo
Günay, U., (1992) Elazığ Masallarının Muhtevası. Fırat Üniversitesi, Fırat Havzası Folklor ve Etnografya
Sempozyumu Bildirileri. Elazığ, s. 109.
Hörmann,K., (1976) Narodne Pjesma Muslimana BĐH, Priredila Denana Buturovic, Sarajevo
Nametak,A., (1998) Traza Zaboravka, Publishing, Sarajevo
Sakaoğlu, Saim., (1992) Masallar Türk Dünyası Ortak Edebiyatı,TAV Yay., Ankara
Selver, M., (2003)Balkanlara Stratejik Yaklaşım ve Bosna, IQ Kültür Yayıncılık, Đstanbul
Seyhan, E. (2007) Bosna-Hersek’in Jeo-Stratejik Önemi ve Türkiye, Yayımlanmamış YL Tezi, Afyon Kocatepe
Ünv. Sosyal Bililimler Enst., Afyon
Seyidoğlu, B., (1975) Erzurum Masalları, Atatürk Ünv., Yay., Erzurum
Softic, A., (1977) Antologija, Bošnjacke Usmene Price, Alef, Izdavacka Kuca, Sarajevo
Şimşek, E., (2001) Yukarıçukurova Masallarında Motif ve Tip Araştırmas, ıKültür Bakanlığı Yay., Ankara
Yürür, P., (2007) Uluslararası Toplumun Bosna-Hersek’i Yeniden Yapuılandırma Süreci ve Modeli,
Yayımlanmamış Doktora Tezi, Gazi Ünv. Sosyal Bilimler Enst., Ankara

380

�</text>
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                <text>Tale, which has been the subject of research studies in Bosnia-Herzegovina and  around the world, is a type of oral narrative which doesn’t have to be plausible, yet may make  the reader believe in its plausibility; based on morality, useful and didactic; whose source  dates back to ancient times and which are marked with characteristics from time and culture  they were created in. There has been different opinions about the sources and classification of  the tale which is in close relation with different sorts of narration. The history of tale extends  back to the ages without writing however the history of tale studies could only be extended to  the beginning of 20th century. The aim of this study is to bring interpretation to in particular,  Bosanski tale culture, and in general, study of tales, in relation with the function and context  of the fairy tale, the narrator, and the listener. By transferring social values from one  generation to another, tales provide the continuity and unity of community in terms of training  the young generations in a better way. Therefore, tales are important with their role and power  on guiding and shaping new generations lives.</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

The Export Exceptional Application In Means Of Value Added Tax: The Example Of
Antalya
Serpil Ağcakaya1, Hidayet Şal2
1 Public Accountants and Financial Advisers for Antalya Room
1 In order to save space, the results from the panel unit root tests are not reported here, but
available upon request.
Abstract
Purpose of this study is constituted by the exceptional VAT applied in export activities and
the lineal and rudiments related to the rejection mechanism process. The exception included
into this study, the one concerned with the exception are initially those real and legal persons
involved in export activities in domestic borders and abroad, secondly the accountants of
these persons, Public Accountant Members and finally the public closely related to the
subject. Therefore; Value Added.
Tax (VAT) is of great importance in means of tax collection in the Turkish Tax Structure. The
11th and 12th articles within the relative Law subjecting to the “export exceptions” and the
32nd article subjecting the discount applied to the process related to the exceptions are of
great importance within the scope of the VAT.
In the final division of the study there is a survey applied to the companies that realize export
in Antalya in order to gain general information about the companies and the issues faced
related to the reject mechanism of VAT that rise from the export realized by these companies.
In general; it is noticed that most of the exporting companies in Antalya constitute of Small
and Medium Size Enterprises and that they are generally complaining about the mass of
official procedures and about the processes realized very slow.
Keywords: Export Realized in Antalya, The Application of Exceptions in Export, Value
Added Tax, Export Survey
1.INTRODUCTION
Limitations in the commercial exchange of goods and services are disappeared with
commerce agreements between countries created commerce and economic system that
associations, and labor, customer, and capital are circulated in worldwide were settled.
Dynamics such as the political changes all over the world, raising gap between rich countries
and poor countries triggered international commerce. Being the world market such a large and
its accessibility directed countries and companies to sell products that are not consumed in
internal market to foreign market. The reason of that the new world pattern countries drag
competition based on export is to expand bracket per country as an element of international
development level.
The purpose of this research is to examine export exemption and refund implementations
since 1985 about refunding VAT to the exporter for goods and services that will export.
VAT export exceptions, analysis of our country and the world export will be discussed, then,
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

a survey about refunding, implemented to exporters in Antalya, arising from the general
export status and exceptions in export VAT will be involved.
2.IMPORTANCE OF VAT IN TURKISH TAX SYSTEM
There have been many definitions of the tax until today. Tax, as a word, means “Impot” in
France, and mainly is a Turkish term. It means generally gifted, disinterested given value.
However, they are values as participation shares to public spending given by taxpayers to the
government (SAYAR; Nihad Public Finance - Public Expenditure and Income Principles I-II,
Sermet Printing House, Istanbul, 1970, pg.77) in financial meaning. Taxis defined with
money today although, in financial meaning, it is actually the meaning of material values paid
with money and goods.
VAT, known as sales tax in tax system, is an impersonal, multi-stage, general turnover tax
that grasps of every phase by the time that every stage of the production-consumption and
import chain reach the final customer, received from the sale of the goods, and based on the
increase in value by allow tax cuts. According to first item of TAX legislation numbered
3065, delivery of goods and services fulfillments in the framework of commercial, industrial,
agricultural activities and independent business activities in Turkey are subjected to be
implemented under all kinds of imports of goods and services, and other proceedings.
As follows, the sum of VAT shown in documents are deducted from the sum of VAT shown
in documents like bill etc. that are issued by that firm due to good sales or service fulfillment
during the same period, because of goods and services bought by a firm with documents like
bill etc. from another firms during the taxation period. Affirmative spread between these will
be paid until the evening of 26th of the following month by declared to relevant tax authority
until the evening of 24th of the following month. Negative spread between these will be
transferred to the next period and the sum of VAT shown in documents like bill etc. that are
issued by that firm due to goods or services during the taxation period will be added on the
memorandum in this period.
The essence of VAT is implemented in every stages from production or importation to
consumption of goods and services, that tax value added in each stage. (YILDIRIM; Muhsin,
BAĞRIAÇIK; Atila, Implemented VAT in Foreign Commerce Operations and Accounting ,
Science and Technology Publishing House, İstanbul 2000, page:1).
In our country, principle adopted for international circulation of goods and services is “arrival
country” principle. In other words, it is essential that Turkey is taxed by the countries where
international movement of goods and services originating from Turkey arrived (consumed),
is not taxed by countries where they emanate (produced).
The two main methods, mainly taxation, are implemented in the Turkish Tax System. First of
them is direct taxation group subjected under the name of income during the investigation
of income. Second is indirect taxation group subjected under the name of tax conditions
during spending income. (Essentials of refunding and VAT in import, İGEME – İSO, Joint
Publication, İstanbul 2010, page:1).
The biggest factor crowning The VAT, as an indirect tax, is the mechanism
of reduction feature. The final customer, not the taxpayers who law is not mentioned as,
undertake tax burden of goods or services by means of this reduction system. The
cumulative tax receipt and the additional tax burden on goods and service will be prevented.

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3.EXPORT EXCEPTION IN VAT
It is necessary requirement that goods and services relating to export don’t burden VAT. On
the other hand, competitive chance in international markets of these goods and services will
be reduced. (MAÇ; Mehmet, VAT Implementation Electronic Book, 11th item, page: 3).
Countries tent to sell goods and service to the abroad. In order to ease and increase doing this,
they prepare essential substructure. Exportation are exempted in our country like all the
countries where VAT is implemented.
About exception of exportation, with the 11th item of VAT, exportation transactions will be
subjected to a full exemption; in following 12th item, transactions which would meet the
conditions will be exported. In the following 32th item, it is provisioned that taxpayers will
offsetting VAT that they paid in used certificates from VAT counted (payable), but if this
counted VAT is less than deductible VAT, VAT that we couldn’t deduct will be refunded to
taxpayer within the framework conditions determined by the Ministry of Finance. Therefore,
goods and services subjected to the exportation will disburden of VAT and be vested in the
final customer.
Exportation is exempted in countries where VAT is implemented. In our country, parallel
with EU mandates, some principles are adopted during the harmonization process of common
tax system in the unity. One of them is a destination principle (taxation in the country of
destination), adopted by every country where VAT is implemented, goods and services are
subjected to VAT in the countries where they are consumed and used. Importation of every
goods and service is taxed in Turkey when exportation of every goods and services that will
consumed in the abroad is extended. Therefore, competitiveness in international markets for
goods and services can be increased and it is prevented that taxpayers and administration do
the same thing twice by solving the double taxing problem. VAT refund system, refunding of
burdens in goods production and procuration, was an important to international competitive
and finance of exporters. Reason of this is that VAT rates differ between countries so that
exportation are extended for VAT is based on this principle. According to destination
principle, VAT burden on goods that were bought by tourists from Turkey to their countries
and will be consumed in their countries should be vanished. Because, goods that are bought in
such a way in Turkey, and received to abroad should be appraised as exportations, and this
way
in
literature
as
a
term
is
named
as
“retail
exportation”(ÜNALAN;Sedat,http://www.yaklasim.com/mevzuat/dergi/makaleler/199508588
.htm).
Parallel
with
the
international
implementation,
in
our
country,
(http://www.gib.gov.tr/index.php?id=1028);








Refunding of VAT that was paid to exported goods. (VAT , 32th )
Making arrangement to provide exporter buy goods without paying VAT(VAT,
11th/1)
Not computing VAT in refunding relating to exportation (VAT, 11th / 1-a)
With them, exempting exported goods from VAT completely, that means, provisions
providing exceptional implementation are involved in VAT. Therefore, goods and
services exempted from VAT will be subjected to VAT in arrival country. On the
other hand, according to 11th /11-c item of VAT,
It is provided in some conditions that exporter can get goods without paying VAT, and
get rid of having deal with tax refunding.
It is enabled that importer can get VAT that he couldn’t get from exporter from tax
office, and get rid of finance burden by means of billing with VAT and showing this
in his memorandum, and postponing VAT debts with interest free, in fact, offsetting to

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

the other tax debts or in cash this money if he does not pay the debt or the money is
less than probation.
(http://www.divandenetim.com.tr/Makaleler/Details.aspx?MakId=69f68255-0afb4ef4-9564-eb490b78aa1).

4.EXPORTATION ANALYSES IN OUR COUNTRY
Sectors of commodities that are subjected to foreign-trade; agriculture, industry, and mining.
In 2011, the sum of exportation in Turkey have reached 134.571.338 Thousands of USD , the
maximum exportation is in 111.537.870 Thousands of USD in industry sector, second is
17.887.224 Thousands of USD in agriculture sector, and the last is 3.876.383 Thousands of
USD in mining sector. (http://www.tim.org.tr/tr/ihracat-ihracat-rakamlari-tablolar.html).
The maximum contribution to being the maximum exportation sector of Industry is industry
products. In this subtitle, automotive industry has 15,16% of exportation in our country.
(http://www.tim.org.tr/tr/ihracat-ihracat-rakamlari-tablolar.html).
All sector figures that we get is comprised of 13 Exporter Associations General Secretaries
and 61 Exporter Associations in General Secretariats. Each General Secretariat has different
business segment; and it has total 24 different business segments. Exporter Associations
which its members are exporters service as institutions connected with Turkish Republic
Prime Ministry Undersecretariat of Foreign Trade.
According to information in 2011, association that has maximum exportation in Exporter
Unions is Istanbul Mine and Metal Exporters' Association with 37.711.868 Thousands of
USD that has 1/3 of the whole exportation, and association that has minimum exportation is
Antalya Exporters Association with 1.073.591 thousands of USD and 0.8% contribution and
it is the last of the list.(http://www.tim.org.tr/tr/ihracat-ihracat-rakamlari-tablolar.html).
According to information about geographic area in 2011, we exported mostly to Europe. This
found seems to be on the basis of the countries we export mostly. As follows, the first four
countries that we export mostly are the countries that have the largest economy of Europe. We
export mostly to Germany with 13.882.788 thousands of USD, 10.41%, and respectively UK,
Italy and France. At the sum, Turkish products are exported to 229 different countries, pieces
of land not declaring independence, or island communities.(http://www.tim.org.tr/tr/ihracatihracat-rakamlari-tablolar.html).
Any other numerical information that should not be overlooked is increase variety of sector
and country in exportation. This increase is very important to exhibit stable export
performance with decreasing problems that may be in external demands. When looking at
contribution of the first ten exported sectors, there is an increasing variety of products. In fact;
contribution of the first ten sectors of 66 sub sectors in the exportation is 73.8% in 1996, but it
is 65.6% in 2011. In addition, the another method is to look at equivalent sector number in
order to observe change in sectoral variety. Equivalent sector number gives the number of the
main sectors with equivalent contribution to the whole exportation by excluding unimportant
sectors with minor contribution to the exportation. Equivalent sector number is 11 in 2000,
but it is 18 in 2011. (http://www.tuik.gov.tr/Start.do).
After the 2001 crisis, there was reduction in equivalent sector number, and after 2008 global
crisis, there was increase in variety of our exportation. (ÖZLALE; Ümit, CUNEDİOĞLU; H.
Ekrem, Turket Exportation Performance 2: Variety of the basis of sector, Competitiveness
and Adaptation, Economic Policy Research Foundation of Turkey (TEPAV), Ankara 2011).

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5.SAMPLE OF ANTALYA CITY
It can be understood that Antalya is not only a tourism city when information in Table 1 is
examined. In addition to tourism, there are mainly fruit, vegetable and cut flower crops;
industry products mainly cement and iron; mining. To sum up, in addition to city center and
tourism, agriculture and industry was also developed.
TABLE-1: Exportation in Antalya City on the Basis of Sectors (2011)
SECTOR

EXPORTATION (USD)

Wood and Forest Products

77.264.878,18

Cement and Soil Products

15.461.467,49

Valuable Mine and Jewelry

9.311.771,28

Iron and Steel Products

18.225.319,94

Ferrous and Non-Ferrous Metals

19.671.854,44

Leather and Leather Products

23.887.470,28

Other Industrial Products

2.933.431,84

Electricity – Electronics

8.806.940,64

Hazelnut and Products

18.255,59

Ship and Yacht

2.808.782,75

Carpet

242.045,68

Clothing and Apparel

18.577.734,26

Cereals, Pulses, Oil Seeds and Products

21.697.295,84

Chemicals and Chemical Products

88.393.127,25

Dried Fruits and Products

312.435,76

Mining and Metals

154.697.026,55

Machinery and Parts

25.303.093,17

Fruit and Vegetable Products

22.475.160,48

Fisheries and Livestock Products

12.095.172,50

Ornamental Plants and Products

31.501.890,84

Automotive Parts and Supply Industry

7.254.041,52

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Textile and Raw Materials

43.977.145,17

Fresh Fruits and Vegetables

403.389.262,78

Olive and Olive Oil

444.394,38

TOTAL EXPORTS IN ANTALYA

1.008.749.998,61

SOURCE: http://www.tim.org.tr/tr/ihracat-ihracat-rakamlari-tablolar.html
According to information in 2011, total exportation is 133.301.459.479,77 USD. Istanbul has
the maximum exportation with 59.048.557 thousands of USD in the basis of the cities, and
respectively Bursa and Kocaeli. Antalya, area where research was made at the end of the
survey, has 1.008.749 Thousands of USD and it is 16th city in exportation.
(http://www.aib.org.tr/html/).
5.1.SURVEY
The purpose of this survey is to evaluate exportations and problems in duration of exportation
in Antalya that contributed to exportation in our country by operating at the large area from
the mining products to service exportation; agricultural products to industry. During the study,
the main questions of sought answers are towards the intended targets.
• What are the qualifications who carry out export activities?
• What are the characteristics of firms that carry out export activities?
• What do firms care except the financial income when firms export cares what?
• What problems are seen frequently in the process of export?
• What obstacles firms encounter the collection of export exemption arising from the
VAT refund?
• What aspects of Antalya are the advantages and disadvantages for export?
In order to answer these questions, this survey was prepared and exportations in Antalya were
tried to examine. 34 questions were directed to the exporters. This survey was sent to the
2.083 subjects (universe) via electronic message and 115 of them turned back (sample).
Interpretation was prepared from these information to general. These participants were not
chosen random, and it was tried to reach all the exportation firms. (simple random sampling)
Here, it is wanted to help to get electronic mail of firms from professional chambers and
associations.
It should not be underestimated that attendance of exportation firms’ owners, their
shareholders or employees is 5.52%. Time period that survey was done is the period when
implementation of Some of the Restructuring of the Public Debt, and Social Insurance and the
other General Health Insurance Law on Amendments to Some Laws and Decree Law. When
this arrangement that a lot of companies benefit from is considered to make workload
difficult, it can be said that this rate is too much and it is enough to induct.
5.1.1.SURVEY RESULTS
Increase in exportation in our country since integrating European Customs Union in 1996
affected positively exportation in Antalya. Total exportation was increased 315% in the last
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10 years, and exportation in Antalya was increased 706% so it gained acceleration 2 times
higher than total exportation in the country.
TABLE-2: Last 10 Year Analysis of Antalya and Turkey Exportations (Million USD)
YEARS
2002

2
2003

2
2004

2
2005

2
2006

2
2007

6.059

3
7.252

4
3.167

6
3.476

7
5.534

8
1
1
1
1
1
07.271 32.027 02.135 13.682 30.769

60

1
22

2
56

2
89

3
39

4
48

TURKEY

ANTALYA

2
2008

6
90

2
2009

8
13

2
2010

8
.130

2
2011

1
.009

2

1

SOURCE: Turkey Exporters Assembly (www.tim.org.tr)

As the table suggests; hypothesis of “A couple of exportation enterprise in Antalya are the
special exporters in first Mediterranean Sea, then Turkey, and then World in the immediate
future by getting rid of structural problems; or with human capital, organizational capital,
external capital, and exportation performances.” is realistic. As the same, being 500 billions of
USD of our total exportation of TİM in 2023 is not a dream.
6.RESULT AND EVALUATION
These findings are gotten by comparing 34 questions in survey to exportation firms with each
other.Because 66% of attendants in survey says that 500 billions of USD goal is difficult
reach under these current conditions, entrepreneur to export the administrative authority
should be encouraged like free of charge in accommodation. In survey, being 54% of rate of
firm without gadgets in foreign language is because of that 54% of them is comprised from
enterprises that like KOBİ (Small and Medium Sized Enterprises) enterprises providing
interim good to large companies rather than exporting their own brand. Another consequential
result is 59% of real and legal persons dealing with exportations in Antalya are not interested
in the relating activities. In this case, firms can’t know developments relating to their fields
and Ar-Ge (R&amp;D), and if they are going to behave like that, unavoidable results will appear
day after day. However, attending enterprises with their own sectors and activities related to
exportation will affect positively in a city with Expo exhibition and convention area.
In the survey results, enterprises with exportation activities are mostly KOBİs. A lot of
KOBİs begin to export because they emulate the other KOBİs or the foreign customer wants
to goods from them. In this case, KOBİs are not completely related to scientifical facts of
exportation. Most of KOBİs don’t know their rivals, how much rivals they have, whether they
have any rival or not.
In the results of the survey, 60% of attendants complain about plenty of bureaucratic
processes and its loginess in refunding of VAT. In order to solve this problem, number of
physical controls should be decreased in the custom gates, information technologies should be
benefited more, number of qualified servant should be increased and recommended that they
should work more efficiently.
Encouragement implementations like encouragement models in developed countries should
be insurance, guarantee, Ar-Ge, quality control and credit instead of financial encouragements
207

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because directly given government supports make exporters lazy. However, encouragements
integrated to the various stages of exportation may direct them to new pursuits.
It is recommended that certificate system carried out by the authorities of EU countries is
going to be on the electronic system after 2017(TİM, December Europe Agenda, 2010,
page:18). Therefore, it is expected that decreasing bureaucracy that exporters always
complain and saving time and labor.
As a result, exportation enterprises in Antalya are enterprises that are not professional, and
can’t stand on its own legs; but have potential for the future.
BİBLİOGRAPHY
İGEME Essentials of refunding and VAT in import– İSO, Joint Publication, İstanbul 2010,
page:1
MAÇ; Mehmet, VAT Implementation Electronic Book, 11th item, page: 3
ÖZLALE; Ümit, CUNEDİOĞLU; H. Ekrem, Turket Exportation Performance 2: Variety of
the basis of sector, Competitiveness and Adaptation, Economic Policy Research Foundation
of Turkey (TEPAV), Ankara 2011
SAYAR; Nihad Public Finance - Public Expenditure and Income Principles I-II, Sermet
Printing House, Istanbul, 1970, pg.77
TİM, December Europe Agenda, 2010, page:18
ÜNALAN Sedat, http://www.yaklasim.com/mevzuat/dergi/makaleler/199508588.htm
YILDIRIM; Muhsin, BAĞRIAÇIK; Atila, Implemented VAT in Foreign
Commerce Operations and Accounting , Science and Technology Publishing House, İstanbul
2000, page:1
http://www.gib.gov.tr/index.php?id=1028
http://www.divandenetim.com.tr/Makaleler/Details.aspx?MakId=69f68255-0afb-4ef4-9564eb490b78aa1
http://www.tim.org.tr/tr/ihracat-ihracat-rakamlari-tablolar.html
http://www.tim.org.tr/tr/ihracat-ihracat-rakamlari-tablolar.html
http://www.tim.org.tr/tr/ihracat-ihracat-rakamlari-tablolar.html
http://www.tim.org.tr/tr/ihracat-ihracat-rakamlari-tablolar.html
http://www.tuik.gov.tr/Start.do
http://www.tim.org.tr/tr/ihracat-ihracat-rakamlari-tablolar.html
http://www.aib.org.tr/html/

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                <text>The Export Exceptional Application In Means Of Value Added Tax: The Example Of  Antalya</text>
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                <text>Serpil Ağcakaya, Ağcakaya</text>
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                <text>Purpose of this study is constituted by the exceptional VAT applied in export activities and  the lineal and rudiments related to the rejection mechanism process. The exception included  into this study, the one concerned with the exception are initially those real and legal persons  involved in export activities in domestic borders and abroad, secondly the accountants of  these persons, Public Accountant Members and finally the public closely related to the  subject. Therefore; Value Added.  Tax (VAT) is of great importance in means of tax collection in the Turkish Tax Structure. The  11th and 12th articles within the relative Law subjecting to the “export exceptions” and the  32nd article subjecting the discount applied to the process related to the exceptions are of  great importance within the scope of the VAT.  In the final division of the study there is a survey applied to the companies that realize export  in Antalya in order to gain general information about the companies and the issues faced  related to the reject mechanism of VAT that rise from the export realized by these companies.  In general; it is noticed that most of the exporting companies in Antalya constitute of Small  and Medium Size Enterprises and that they are generally complaining about the mass of  official procedures and about the processes realized very slow.  Keywords: Export Realized in Antalya, The Application of Exceptions in Export, Value  Added Tax, Export Survey</text>
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