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                    <text>Integrated Water Resources Management:
A Path to Achieving Sustainable Development
Mehmet Ali Yurdusev
Department of Civil Engineering, Celal Bayar University, Manisa, Turkey
yurdusev@bayar.edu.tr
Tekin Tezcan
Department of Civil Engineering, Celal Bayar University, Manisa, Turkey
tekin.tezcan@bayar.edu.tr

Abstract: Water resources development is one of the most important national development
factors for developing countries whereas it is a service sector issue in developed countries.
Water management has become one of the conflict areas as the demand for water increases
while the resources available degrade. As a solution to this, integrated water resources
management has been proposed to make tradeoffs among the parties involved. This article
discusses the issues of integrated water resources management with its possible links with
sustainable development.

Introduction
Water resources management comprises a series of water-related activities including developing water resources
schemes for beneficial and protective purposes and managing the system effectively based on both supply and
demand considerations. From beneficial point of view, water resources development deals with the promotion of
necessary infrastructure elements to bring the water in nature to where it is to be used. Thus, it requires huge
investment as it is quite large in scale and time consuming. The development side of water resources
management is referred to as source management. The need for protection from the excess water, namely flood,
has also resulted in the development of large flood control schemes. As such, water resources development has
been one of the most important factors for the national developments of the countries. This is still true for the
developing countries where the water resources have not yet fully developed. On the other hand, it is one of the
issues of service sectors in developed countries and has lost its impact on the development of those countries.
Operational side of water resources management has two dimensions. One is the real operation of the system
developed to sustain water supply for the use for a variety of purposes including drinking, irrigation and power
generation. The other is the management of the demand for water, namely demand management, which
comprises a series of activities to encourage or sometimes to force people to use less water to achieve more
efficient use of water in service. The demand management issue may be shadowed in developing countries as
they are still trying to develop their water resources for irrigation, power generation and even drinking. It can be
seen, however, it is much more popular in developed countries as their main concern is the efficient management
of their already developed water resources.
In so-called developed countries, water management issue has become one of the conflict areas as the water
demanding sectors, namely stakeholders, have increased with also increased quantities as opposed to the
degrading resources available to use. Therefore, integrated water resources management concept has long been
spelled as a compromising tool to achieve an acceptable solution for the parties involved. If achieved, this would
present an efficient regulation of a large portion of national economies of the states as water resources
management covers quite a large variety of activities as mentioned previously. This article discusses the issues of
integrated water resources management with its possible links with sustainable development with the brief
discussions related to both sustainable development and integrated water resources management.

352

�Sustainable Development
Any article on sustainable development (SD) cannot disregard mentioning the first and the most widely accepted
definition given by the so-called Brundtland Report (Brundtland, 1987) as follows:
“Sustainable development is development that meets the needs of the present without compromising the
ability of future generations to meet their own needs.”
Since the Brundtland Commission first defined the concept of sustainable development, much discussion has
been made on the concept on scientific, technical, economical and even political platforms. From the overtwenty-year SD history, it could be possible to find many other definitions for it. Above all, it can be regarded
as a reaction to what it may be called “wild development” that had been observed before. The aim was to
transform the wild nature of development into the one that was acceptable by the weak. The weak are the society
including the future generations and the ecology. Therefore, an acceptable development, e.g. sustainable
development, should consider and integrate the social, environmental and economic issues as depicted in (Fig. 1)
(The President’s Council on Sustainability, 2010). As shown in (Fig. 1), a development considering social and
environmental issues could be bearable; the one with social and economic considerations could be equitable and
the solution with environmental and economic ones could be viable. However, if it is to be sustainable, it should
consider social, economic and environmental issues. A sustainable solution is such a solution which
•
•
•
•
•
•

incorporates the environment and the economy,
protects ecosystems and health of the society,
meets international obligations,
promotes equity,
prevents environmental pollution, and
respects for nature and the needs of future generations (Economic Development Agency of Canada,
2006).

To achieve such a development, an integrated approach to planning and making decisions which considers
environmental and natural resource costs of different economic options and the economic costs of different
environmental and natural resource options is normally required (The President’s Council on Sustainability,
2010). Having formulated such an integrated approach, it is necessary to articulate detailed principles and control
measures to direct the action plans to sustainability. The action plans are equally important elements of achieving
sustainable development and should be built based on the specific features of the issue and by the participation
of the parties that will be affected.

Figure 1. Issues in Sustainable Development, taken from The President’s Council on Sustainability (2010)

353

�Integrated Water Resource Management
As for sustainable development, it is quite possible to find fancy verbal definitions for integrated water resources
management
(IWRM).
One
could
be
taken
from
web-based
Water
Encyclopedia
(http://www.waterencyclopedia.com) as follows:
“Integrated water resources management is the practice of making decisions and taking actions while
considering multiple viewpoints of how water should be managed.”
The above definition is illustrated by the same encyclopedia in (Fig. 2). As seen in (Fig. 2), IWRM describes a
process of managing water resources in an integrated manner taking into account the views of parties involved
such as the stakeholders, governments and interest groups to achieve certain purposes and services using the
knowledge provided by several scientific disciplines. The following quotation (GWP TAC, 2000) well describes
the IWRM process:
Integrated Water Resource Management (IWRM) promotes the coordinated development and management of
water, land and related resources in order to maximize economic and social welfare (in an equitable manner)
without compromising the sustainability of vital ecosystems. This process involves the holistic coordination and
management of natural systems and human activities, which create the demands for water, determine land use
and generate waterborne waste.
The concept of IWRM is somewhat new and as such it was built over more-than-half-century bad water
management experience. As such, it can be regarded a response to the problems encountered in water
management, which has become a major conflict area where several sides are competing for the same quantity of
water.

Figure 2. IWRM process, taken from http://www.waterencyclopedia.com.
Achieving IWRM requires the organization of water industry accordingly. Since water resources and the bodies
demanding these resources spread in a certain geographical area, IWRM should normally be “place-based” or
“enterprise-based”, dealing with a particular location (Clark et al., 2002). River basins have long been regarded
as the spatial unit of water management. However, this should be disputed as the river basins are not isolated
from each other in terms of both the origin of water resources and the close interactions among the human
activities in neighboring basins. Whatever spatial unit is accepted, the main issue is to set appropriate
institutional arrangements towards achieving the IWRM, where the big challenge lays. It is unfortunate to say
that there are not many countries that have organized its water industry accordingly although there have been
several international initiatives such as water framework directive of European Union.
From the discussion provided above, it can be paradoxically said that water resources are expected to be
managed in a manner that those who demand for water including the ecological environment should be made
354

�happy. Expectedly, this is absolutely impossible. What should/can be done is then to reach a compromising
arrangement by which everybody could be a little bit happy. Experiences have shown that such a compromising
solution can only be achieved by the participation of all parties. That is, a participatory approach should be
followed to set up the practices for IWRM. Technical experts can, in this regard, present available methodologies
or acceptable plans/programs to the sides involved. There is also another issue that should be resolved, which is
what mechanism will be used to get together the sides or who are the sides. This is a case-specific issue that
should be considered carefully. Probably, a perfect mechanism will not be established; but any mechanism for
this purpose will somehow work and the outcome will yield much better proposals.

Concluding Discussions on IWRM and Sustainable Development
The discussions provided separately on SD and IWRM have uncovered that what both IWRM and SD try to
achieve is by and large the same. Sustainable development is a little bit older than IWRM. It is also broader and
does not exclude any human activity. It has something to say for every development process. As such, it is much
more difficult to materialize SD although it is also much more popular than IWRM. In other words, it will
require much more time to have “sustainable” development activities.
Unlike sustainable development, IWRM is a little bit restricted to a specific area, water resources, and tries to
realize much more efficient and helpful water management. Since it deals with water issues, there is much more
chance to realize the IWRM purposes although there are several challenges to be overcome (Grigg, 2008). The
world-wide experiences have shown several good examples such as fully privatized but highly regulated British
water industry.
Since water is a natural monopoly, water activities and water management accordingly affect almost every
development issue. A better managed water industry will make positive impact on other sectors. Therefore, the
water resources of a region or a country managed in an integrated manner will contribute the sustainability of
other human activities. In this sense, IWRM can be regarded as a tool, use of which will add positive
contributions to the sustainable development. From another point of view, IWRM is essential to sustain our
water resources. If we continue to use water, which we do not have any other option, we have to think and
explore the ways where the sustainability of our water resources is to be granted.

References
Brundtland G. H. (1987). Our Common Future, World Commission on Environment and Development (WCED), Oxford
University Press, page 54.
Clark, W. C., Lebel, L., Gallopin, G., Jaeger, J.,Mabogunje, A., Dowdeswell, E., Hassan, M., Juma, C., Kates, R., Corell, R.
(2002) in Science and Technology for Sustainable Development (Int. Council for Science, Paris), pp. 12–29.
Economic Development Agency of Canada for the Region of Quebec. (2006). Sustainable Development Strategy 2007-2010.
Montréal, Canada.
Global Water Partnership Technical Advisory Committee (GWP TAC) (2000). IWRM. Publ. Global Water Partnership,
Stockholm, Sweden.
Grigg, Neil S.(2008) 'Integrated water resources management: balancing views and improving practice', Water International,
33: 3, 279 — 292.
http://www.waterencyclopedia.com/Hy-La/Integrated-Water-Resources-Management.html
The President’s Council on Sustainability. (2010) Indiana State University Climate Action Plan, Indiana State University,
USA.

355

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                    <text>A Multilingual Media Monitoring System (MMMS) for Balkans
B. Gültekin ÇETĐNER
Faculty of Engineering and Natural Sciences
International University of Sarajevo (IUS)
Sarajevo, Bosnia and Herzegovina
cetiner@ius.edu.ba
Mete GÜNDOĞAN
Faculty of Economics and Business Administration
International University of Sarajevo (IUS)
Sarajevo, Bosnia and Herzegovina
mgundogan@ius.edu.ba
Osman GÜRSOY
Faculty of Engineering and Natural Sciences
Researcher in Computer Engineering
International University of Sarajevo (IUS)
Sarajevo, Bosnia and Herzegovina
ogursoy@ius.edu.ba

Abstract: This paper describes a developed Multilingual Media Monitoring System (MMMS)
software and reports how it may be utilized to effectively facilitate PR facilities at an academic
institution in Balkans.
There are many international charity projects of Turkey in Bosnia and Herzegovina (BiH).
These institutes comprise the academics and businessmen both from Turkey and Bosnia. Due to
major number of the stakeholders and students from Turkey and Bosnia as well as other
different countries, and the mission of such an institution to become an international Balkan
institution requires the establishment to perform PR facilities in Balkans effectively in a multinational and multilingual manner. Therefore, a software system called Multilingual Media
Monitoring System (MMMS) was developed by the authors herein to manage the PR facilities
more effectively by easing the collection, search and evaluation of the news in Balkan region
and Turkey. The paper describes the system in detail.
Keywords: Media Monitoring, PR, Information Technology, Content Analysis, Balkan
Cooperation

Introduction
After the war, many internatinal educational institutions have been established in BiH. They have both
academicians and students from about many different countries of which the majority is from Turkey and Bosnia.
The decision of the establishments goes back to the start of the post-war period when Alija Izzetbegovic, the first
president of the independent Bosnia and Herzegovina had made a call to Turkey to establish the good relations
with Turkey and help the country to reestablish the economy and development. Educational curricular structures
of these institutions are usually based on a flexible model to allow the interdisciplinary studies and program
changes considerably easy. The inspiration of the educational models is based on the structuring of curriculum at
advanced academic institutions by revising them according to needs of Bosnia and Herzegovina.
The international structure and stakeholders of such institutions from different countries make it
necessary to develop a multilingual effective news monitoring system for PR facilities in Balkan region and
Turkey. Therefore, a project was developed during 2009 to ease the PR facilities of such an institution. The main
purpose of the project was to collect the content in several languages (currently in English, Bosnian and Turkish),
to categorize, evaluate and search this content by predefined staff in several roles. Collection of news and other
content is made by usually editors and evaluated by commentators. The software project shortly called as
PRNews is a Multilingual Media Monitoring System (MMMS) and described herein this paper in detail.

Media Monitoring Systems
356

�Media Monitoring systems are used by modern organizations to collect information for more effective
decisions and often strategic management purposes.
The application of content analysis, linguistic, and information retrieval methodologies are the focal point of the
discussion in media monitoring systems. Content analysis is described as a well-described systematic strategy of
inquiry to the analyzed media content object, or in other words, to a communication text (Arıkan, 2009). From
the very beginning of the research it must be described what is looked after. In this project, Arıkan attempts to
deliver primary information on a content analysis project to analyze Turkish Media by computer assistance. He
discusses the methodological, scientific and application problems and issues related to the project.
Media monitoring can help demonstrate that political competitors and the public at large should have
confidence in the media, electoral authorities and the government that is responsible for providing genuine
elections. Shortcomings in media conduct can be identified through monitoring in time for corrective action.
Abuse of the mass media’s power to affect voter choices also can be documented, which allows the population
and the international community to appropriately characterize the true nature of the electoral process. More may
be found regarding media monitoring for political purposes in (coliver and Patrick, 1994) and (Lange and Palmer,
1995).
A Digital Media Monitoring project for Parliament was reported (Gilbert, 2005). An Electronic Media
Monitoring Service (EMMS) was developed to allow Senators and Members to browse, search and view
television and radio items on desktop PCs. In this system, news and current affairs items are recorded in
Canberra by Parliamentary Library staff and published onto the EMMS web site for access by Senators and
Members in Parliament House and their electorate offices. Using the system developed, media programs may be
digitally captured, encoded and archived for retrieval and playback by the Library’s clients.
A news media monitoring or media tracking system can be used to collect, evaluate and search certain
content of news coverage for more effective PR in an organization. The content may be related to a subject,
person or any organization and may be on a hardcopy magazine and newspaper, or in a digital form. The
collected and evaluated content under different categories may then be sent to related bodies or searched online.
The following sections describe a multilingual news media monitoring system developed by the authors.

Multilingual Media Monitoring System (MMMS)
The Multilingual Media Monitoring System (MMMS) described herein allows administrative staff to
browse, search and view news items online. News and current affairs items are recorded at a centre by staff
arranged as editors and administrators and published onto the MMMS web site for access by staff assigned as
users. It is integrated into the institution's database which means that any staff or client may be assigned the tasks
with predefined users. The Use-case diagram in Figure 1 shows the users as participants and their roles to be
played in the MMMS system.
Multilingual Media Monitoring
System
Add/Modify
Users
Editor

Adm in

Add Languages

Add
Categories
Add/Modify New s
Advisor

Evaluate New s
User
Search
«include»

Rate

Show New s

Figure 1. Use-case Diagram for MMMS
357

�The Admin user has all rights to describe, add and user profiles and their permissions. Admin also may
add additional languages and perform operations of all other users. Besides Admin user, there are 3 other users
as Editor, Advisor and User. Editor may add categories and add/modify news. Editor user is a typical PR user
who can collect, modify the news content. Advisor may add, modify and rate (evaluate) the news content similar
to Editor. User is typically a manager who sees all the results in read-only form. He/she can search and see the
content and its related ratings. The user may rate the content.
The media monitoring service is highly useful and this project has involved technology and ready to be
applied to any academic institution. Using the new technology, media contents for Balkan region are digitally
captured, encoded and archived for retrieval and playback by the MMMS clients. The following part describes
the project, the technology, standards employed, and how certain issues were overcome to provide an in-demand
PR service for administrators.

System Design for MMMS

The MMMS developed herein is a web based software application using open source application
development standards such as PHP programming language and MySQL as Database Management System. The
data model for the designed database is given in Figure 2.
Languages
category

notification

Language

Category_ID

Description

catName

Notification_ID
User_ID (FK)
category
keywords
Language (FK)
users

media

User_ID

Media_ID
title
source
author
date
summary
keywords
Category_ID (FK)
Language (FK)
Editor_User (FK)

Comments
comment_ID
Comment
Rating
Media_ID (FK)
Commentator_ID (FK)

username
password
email
name
middlename
surname
lastlogin
profile

Figure 2. Data Model related to Database for MMMS
The media content has title, source, author, date of information, summary, and keywords which are used
to search later the media document. Each media content is categorized with related category ID. The PR user
(editor or advisor) is also recorded as Editor User. Each Media content has also language associated with. User
table is integrated into the Database of hosting institution. Therefore, new users from the academic and
administrative personnel may be added to the user pool in MMMS easily. Comments may be given and ratings
may be added by different users. Category table keeps all categories added into the system. Categories may be
edited by both Admin and editor users. Currently there are 3 languages in the system but more languages may be
added to the system.
Notification is perhaps one of the most important tables in the system. Users are notified through their
emails if there is a new media content in the system related to their category, keywords and language of interest.
Users may also search inside the media content based on the filtering of language, keywords and category.

User Interfaces for MMMS
The user interfaces are many and difficult to show all herein. Therefore, only several important ones are
described in this section. User interfaces are related to the Cases given in Figure 1. The participants are given
different permissions according to their roles. The Figure 3 shows menu options for users with the roles Admin,
Editor and User. The Admin user has permission to add/modify users whereas editor cannot change the users but
can add News and Categories. The normal user has only read-only permission to search and see the news. The
users can manage the CRUD (Create/Retrieve/Update/Delete) operations depending on their security levels. The
users may be added by administrators with different privileges depending on the role of the user selected from
358

�the human resources associated with the institution’s database for employees. The alternative usage of the
system may involve people from different organizations in Balkan region and Turkey to monitor the news media
for research and other purposes. In this case, the actors described in Figure 1 may be distributed throughout the
countries. For example, advisors from Istanbul may rate the content produced by an editor in Albania and users
of Kosovo may see the content related to Kosovo produced by Istanbul editors etc. This kind of usage of the
system requires a network of users from different countries with different roles.

Figure 3. Menu Options for (a) Admin (b) Editor, and (c) User
The most important part of the system is the search facility as shown in the left side of Figure 4 which
shows the screenshot to be seen by admins, advisors, editors and users. The right part in the figure may be seen
by only admins, advisors and editors. It contains a pool of the news produced mainly by editors. The search
mechanism contains certain criteria for search and sort facilities. Filtering is available for category, language,
search keywords and dates. Search is made on the html content based on the OR function of Boolean algebra.
The html content may include pictures and videos. However, the system cannot search for information yet in
binary content such as videos and pictures. The html results related to content are brough to the user as pdf files.
Editing of the content is made over html. Sorting is possible based on the Title, Source of Information, Author,
Category and Date. Editing of the content is possible via related functions. Although rarely used deletion of a
content is also possible. This may be an option to be used by editors and advisors if the content’s rating and
evaluation require so. Currently system does not allow the users to share selected content via sending through
emails. A workflow management system may also be added in future versions to accept content in a hierarchical
manner. This means approval of content by advisors and certain editors. Currently system is very useful for
copying and pasting digital information from digital soft copies related to events. For facilitating hard copy
information, the editor needs to scan and convert the hardcopy contents (such as newspaper, leaflet etc) manually
to soft copy formats through Optical Character regognition (OCR) softwares.

359

�Figure 4. A typical screen to be seen by editors

Conclusions
The paper has described a Multilingual Media Monitoring System (MMMS) developed by the authors
for the purpose of tracking the media for news content of both Balkan region and Turkey related to the conduct
of PR facilities at any educational institution. The main purpose was to provide up-to-date information needed by
the managers of the institution to help in their decision making processes for more effective PR. It was found
useful by higher level managers in tracking the news in three different languages. The system may be utilized in
a way to monitor the information gathering throughout the Balkan region by embedding editorial board members
and advisors from different countries. The system is ready to be operated by any educational or academic
institutions as well as any governmental institutions.

References
Arikan, Aykut (2009), “Computer Assisted Turkish Based Media Content Analysis System - Project 107k209: A
Case Study“, Bilgi Dünyasi, 10 (2)
Coliver, Sandra And Patrick Merloe (1994) “Guidelines For Election Broadcasting In Transitional Democracies”,
United Kingdom, Article 19, National Democratic Institute For International Affairs
Lange, Yasha And Palmer, Andrew (1995) “Media And Elections: A Handbook”, European Institute For Media,
Brussels:Tacis
Gilbert, Catherine (2005) “Digital Media Monitoring Project For Parliament”, 12th Information Online
Conference, Sydney, 1-3 February, Australia

360

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                <text>This paper describes a developed Multilingual Media Monitoring System (MMMS)  software and reports how it may be utilized to effectively facilitate PR facilities at an academic  institution in Balkans.  There are many international charity projects of Turkey in Bosnia and Herzegovina (BiH).  These institutes comprise the academics and businessmen both from Turkey and Bosnia. Due to  major number of the stakeholders and students from Turkey and Bosnia as well as other  different countries, and the mission of such an institution to become an international Balkan  institution requires the establishment to perform PR facilities in Balkans effectively in a multinational  and multilingual manner. Therefore, a software system called Multilingual Media  Monitoring System (MMMS) was developed by the authors herein to manage the PR facilities  more effectively by easing the collection, search and evaluation of the news in Balkan region  and Turkey. The paper describes the system in detail.</text>
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                    <text>2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

The Determination of University Selection Based Upon Analytic Hierarchy
Process
Orhan ADIGÜZEL
Assistant Prof., University of Suleyman Demirel
Isparta, TURKEY
orhanadiguzel@gmail.com
Ali Cüneyt ÇETĠN
Assistant Prof., University of Suleyman Demirel
Isparta, TURKEY
ccetin@iibf.sdu.edu.tr

Abstract: The most important factor in career planning of a person is to direct him depending
upon his features. The best way of choosing career is to compare the wishes of a person with the
requirements of that career so that he can decide the best one. Particularly, those who think to have
a university education for their careers come across difficulties while deciding on their career path
on account of the fact that the global world can offer various opportunities for education in a great
many places. The student must choose by taking into account some criteria. As an example,
several factors play a crucial role in this process such as the academic success of the university, the
working opportunities provided, the distance of the university to the hometown of the student, the
economic status of that city, the facilities of accommodation. Considering all these factors, the
student should give an optimal decision. In this context, the common decision including both the
personal different opinions and convincing for all is strongly needed. AHP (Analytic Hierarchy
Process) has gained a very big momentum at these kind of situations.

Introduction
The key to help to a student in the process of career planning is to give him an encouragement that will have
an impact in the future for the career planning activities (Laker &amp; Laker, 2007, p.138). The fact to be known about
career is that the person is responsible for the career development himself (Walker &amp; Levesque, 2006, p.28). The
reason is that in terms of career development and management in the literature, much has been emphasized personally
gained and experienced career instead of organization based career development .( Kidd &amp; Green, 2006, p.229). The
person in the personal planning stage while choosing his career, he has been affected by a number of factors. The best
career choice is, to reach the best by comparing what he wants and what he needs. The matter is to decide upon the
best among the alternatives and upon the methods by which the decisions will be taken.
The selection of the department in high schools until the university exam, even the selection of the type of
the high schools and the private courses for the preparation of the university exam is determined by the selections
following the decisions. The selection of the university after high school is particularly significant for the students
who are at the beginning of their careers. In this term, the students are a little bit confused due to the efforts to choose
the best among a number of alternatives. In this case, the most important moment for decision is to choose the best
alternative of the university.
The student is supposed to choose by taking into account some criteria such as the academic achievement
of the university, the chance of the graduates in having jobs, the distance of the university to the homeland, the
economic status and the opportunities for accommodation of the city. Considering all these factors, the student
should give an optimal decision. By means of this, throughout undergraduate study, some of the regrets should be
prevented and motivation and concentration should be used for the productivity and the efficiency of the education.
In this case, a common decision is needed by means of which both the differences of personal opinions can be
assessed and everyone can be persuaded at the same time.
From this perspective, AHP is a mathematical method which lays emphasis on the features of a person as
well as group, and which assesses both the qualitative and quantitative variables together (Dağdeviren et al., 2004,
p.132). At the same time, it provides opportunity for deciding effectively in the solution of decisional problems
(Dündar &amp; Ecer, 2008, p.198). AHP enables to modeling in a hierarchical way showing the relationship between

528

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

decision makers with complex problems, the ultimate goal of the problem, criteria, sub criteria, and the alternatives
(Kuruüzüm &amp; Atsan, 2001, p.84). Recently, this problem has captured attention a lot, and it is used in the solution of
decision making problems in real life. Particularly, in the efficiency analysis, in the productivity analysis, and in the
problems of performance asessment, the AHP is seen to be widely used.

The Determination of University Selection
There are many application processes all around the world in the higher education system. Recruitment
structures and college admissions vary widely from country to country. For example, mostly, all British higher
education institutions are members of the UCAS, therefore, nearly all those wishing to study for their first degrees in
the UK have to apply through the UCAS. In the USA, students apply to one or more colleges or universities by
submitting an application which each college evaluates according to its own criteria. For the graduate education,
virtually all graduate programs require applicants to submit scores on standardized tests. In Turkey the Student
Selection and Placement Center (ÖSYM) prepares the centralized University Entrance Examination (Yamamato,
2006, p.59).
In addition to the differences of the applications depending upon the countries, there are also some
differences in the selection of the university of a student. In occurrence of these differences, the impacts of the
opportunities are effective. While some of the universities bring forth the the quality of their education, the others
mention about the technological facilities. At the same time, some of the universities are boastful about the employed
students, but the others are important for their social opportunities in the campus. The students on the verge of
choosing the university will be affected from all these differences and will need to search the reality of these
opportunities and they will focus on the criteria and the factors determined well in advance. These factors and the
criteria become more clear after collecting informations from many sources about the universities (Veloutsou et al.,
2005, p.281). The location of the the university, local social life and campus, the future career prospects and
opportunities, financial considerations, the quality of education, the institutions‘ infrastructure, job prospects,
personal motives have impacts on selection (Keskinen et al., 2008, p.639-640; Soutar &amp; Tourner, 2002, p.40-41;
Veloutsou et al., 2005, p.161-162)

The Analytic Hierarchy Process
The Analytic Hierarchy Process is decision-making process that breaks complex problems down into levels
of decision criteria that can be managed more readily. The AHP synthesizes information and evaluates decision
criteria in a way that enables the use of both real data and qualitative evaluations of factors in one model (Liu et al.,
2008,p. 437). As Saaty mentions that it also organizes the basic rationality by breaking down a problem into its
smaller constituent parts and then guides decision makers through a serious of pairwise comparison judgments to
express relative strength or intensity of impact of the elements (Varma et al., 2008, p.346).
The AHP method can support managers in a broad range of decisions and complex problems including
supplier-selection decisions, facility-location decisions, forecasting, risks and oppurtunities modeling, choice of
technology, plan and product design, and so on. Further more the AHP approach also shows some interesting
advantages (Costa &amp; Evangelista, 2008, p.71):
 Effectiveness also in presence of descriptive and evaluative lacks;
 Effectiveness when there is a co-presence of qualitive and quantitive;
 It overcomes the diffuculty of the evaluation of decisional factors;
 Control of the answers consistency and the final results coherence;
 Possibility to focus on every aspect of the problem always going down to a greater level of detail
and stratifying the analysis; and
 Dynamism and adaptability of the method
The calculation procedure of AHP is presented below (Hsu and Chen, 2008, p. 46):
Establishment of pair-wise comparision matrix A. Let C1,C2,C3,…..,Cn be the set of criteria, while aij represents a
quantified judgement on a pair of criteria Ci, Cj. The relative importance of two criteria is rated using a scale with
the digits 1, 3, 5, 7 and 9, where 1 denotes ―equally important‖, 3 for ―slightly more important‖, 5 for ―strongly more
important‖, 7 for ―demonstrably more important‖ and 9 for ―absolutely more important‖. The digits 2, 4, 6 and 8
areare used to facilitate a compromise between slightly differing judgments. A n-by-n matrix A is derived as fallows

529

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

 a11 a12 ... aj 
a

 21 a 22 ... aj 
 .
. 
A

. 
 .
 .
. 


 ai1 ai 2 ... aij 

(1)

Where aij = 1 and aji = 1/ aij, i,j = 1, 2, …..,n.
In matrix A, the problem involves assigning a set of numerical weights W1, W2, W3, ……Wn to the n
criteria C1, C2, C3, …….Cn that ―reflects the recorder judgments‖. If A is a consistency matrix, the relations
between weights Wi and judgments aij are simply given by Wi / Wj = aij (for i,j = 1, 2, 3, ……n)
Eigenvalue and eigen vector. Saaty suggested that the largest eigenvalue λmax
If A is a consistency matrix then eigen vector X can be calculated by the equation (2):
(A – λmaxI) X = 0
(2)
Consistency test. Saaaty proposed utilizing consistency index (CI) and consistency ratio (CR) to verify the
consistency of the comparison matrix. Additionally, CI and CR are defined as fallows:
CI = (λmax – n) / (n – 1)
(3)
CR = CI / RI
(4)
Where RI denotes the average consistency index over numerous random entries of same order reciprocal
matrices. If CR ≤ 0,1 the estimate is accepted; otherwise, a new comparison matrix is solicited until CR ≤ 0,1.

The Study
Imagine that any high school graduate student determined some of the criteria about the university planned
by means of the decision either collectively or individually. These criteria are such as the image and the prestige of
the university, the knowledge in education and the technological opportunities, the career opportunities, the
possibility of employment of the university graduates, the atmosphere of the campus and the social life, the
opportunities for accommodation, and transportation, yet still, let‘s consider that the student gives more paramount
importance to the five of them more than the others. Let‘s say these are the criteria like ―the image and the prestige
of the university‖, ―the knowledge in education and the technological opportunities‖, ―the career opportunities in the
university‖, ―the possibility of employment of the university graduates‖, ―the atmosphere of the campus and the
social life‖. The university alternatives and the results of these alternative universities out of 100 point in terms of the
criteria are shown below in Table 1:
1.
1. UNIV. 2.
2. UNIV.
3. UNIV.
4. UNIV.
5. UNIV.
80
100
70
60
90
IMAGE-PRESTIGE
90
70
80
100
80
KNOWLEDGE-TECH.
50
80
90
60
70
CAREER
70
70
60
60
80
EMPLOYMENT
60
60
100
90
90
CAMPUS
Table 1
In this stage of the application, initially, the comparison of the criteria was done in accordance with the method of
AHP and indicated in Table 2. In the process of the determination of the level of importance, the opinion of the
student and the environment left impacts, and comparisons were made depending upon these opinions.
I-P
K-T
CAR
EMP
CAM
I-P
K-T
CAR
EMP
CAM
Table 2

1
2

1/2
1

3
2

1/3
1/4

5
4

1/3
3
1/5

1/2
4
1/4

1
5
1/3

1/5
1
1/7

3
7
1

530

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

 1 1/ 2 3
 2
1
2

1 / 3 1 / 2 1
A 
4
5
 3
1 / 5 1 / 4 1 / 3



1/ 3
1/ 4
1/ 5
1
1/ 7

5
4 
3

7
1



0.184
0.195


0.094
W 

 0.481
0.044





The Consistency Ratio of Matris A = 0.0545
The calculated vector in the column W shows values of numerical importance. In the framework of these
results, the most important criteria with the percentage of 48 % is ―employment‖ whereas the least criteria is ―the
atmosphere of campus‖ with the percentage of 5 %. In the Table 3 below, the criteria‘s values of importance in
percentage are given sequently.
The Sequence of The Assessment Criterium
Approximate
Values
of
Importance
Importance in Percentage
Employment
% 48
1
2

Knowledge-Technology

% 20

3

Image-Prestige

% 18

4

Career

%9

5

Campus

%5

Table 3
The formula used while finding W is, at the same time, used to compare and contrast the criteria of all the
candidates with one another. In this context, the stages of finding out matris C such as C1, C2, C3, C4, and C5 in the
results of all the contrasts in every criterium is in the following:
3. UNIV.
4. UNIV.
5. UNIV.
1. UNIV.
2. UNIV.
1
1/5
3
5
1/3
1.UNIV.
5
1
7
9
3
2. UNIV.
1/3
1/7
1
3
1/5
3. UNIV.
1/5
1/9
1/3
1
1/7
4. UNIV.
3
1/3
5
7
1
5. UNIV.

1
 5

1 / 3
V1  
1 / 5
3



1/ 5 3
1
7
1/ 7 1
1/ 9 1/ 3
1/ 3 5

5
9
3
1
7

1/ 3 
3 
1/ 5 

1/ 7 
1 



0.134
0.502


0.067 
C1  

0.034
0.260





The Consistency Ratio of Matris C1= 0.0541
The Comparison of the University in terms of “Image and Prestige”

531

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo
Assessing from the perspective of ―Image and Prestige‖, it can be stated that the university in the second
order is much more preferable with the percentage of 50.2 %.
1. UNIV.
2. UNIV.
3. UNIV.
4. UNIV.
5. UNIV.
1
5
3
1/3
3
1. UNIV.
1/5
1
1/3
1/7
1/3
2. UNIV.
1/3
3
1
1/5
1
3. UNIV.
3
7
5
1
5
4. UNIV.
1/3
3
1
1/5
1
5. UNIV.

 1
1/ 5

1/ 3
V2  
 3
1/ 3



5 3
1/ 3
1 1/ 3 1/ 7
3 1 1/ 5
7 5
1
3 1
1/ 5

3
1 / 3 
4

5
1



0.245
0.046


0.105
C2  

0.497 
0.105





The Consistency Ratio of Matris C2= 0.0284
The Comparison of the University in terms of “Knowledge and Technological Opportunities”
As for the criteria of ―Knowledge and Technological Opportunities‖, the university in fourth order is
leading the others with the percentage of 49.7 %.
The Comparison of the University in terms of “The Opportunites of Career in the Unıversity”
1. UNI.
2. UNI.
3. UNI.
4. UNI.
5. UNI.
1. UNI.
2. UNI.
3. UNI.
4. UNI.
5. UNI.

1
7
9
3
5

1/7
1
3
1/5
1/3





V3  





1
7
9
3
5

1/ 7
1
3
1/ 5
1/ 3

1/9
1/3
1
1/7
1/5

1/ 9
1/ 3
1
1/ 7
1/ 5

1 / 5
3 
5 

1 / 3
1 



1/ 3
5
7
1
3

1/3
5
7
1
3

1/5
3
5
1/3
1

0.034
0.260


0.502
C3  

0.067 
0.134





The Consistency Ratio of Matris C3= 0.0541
According to the criterium of ―The Career Opportunities in the University‖ the university in the third order
is in a better state with the percentage of 50.2 %.
The Comparison of the University in terms of “The Possibility of the Graduate Employment”
1. UNI.
2. UNI.
3. UNI.
4. UNI.
5. UNI.
1
1
3
3
1/3
1. UNI.
1
1
3
3
1/3
2. UNI.
1/3
1/3
1
1
1/5
3. UNI.
1/3
1/3
1
1
1/5
4. UNI.
3
3
5
5
1
5. UNI.

532

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

1
1
 1
1

1 / 3 1 / 3
V4  
1 / 3 1 / 3
 3
3



3
3
1
1
5

3
3
1
1
5

1/ 3
1/ 3
1/ 5
1/ 5
1

0.195
0.195


0.073
C4  

0.073
0.462















The Consistency Ratio of Matris C4= 0.012
The university in the fifth order is much more successful in the criterium of ―The Possibility of Graduate
Employment‖ with the percentage of 46.2 %.
The Comparison of the University according to the criteria of “The Atmosphere of Campus and Social Life”
1. UNIV.
2. UNIV.
3. UNIV.
4. UNIV.
5. UNIV.
1
1
1/9
1/7
1/7
1. UNIV.
1
1
1/9
1/7
1/7
2. UNIV.
9
9
1
3
3
3. UNIV.
7
7
1/3
1
1
4. UNIV.
7
7
1/3
1
1
5. UNIV.

1
1

9
V5  
7
7



1
1
9
7
7

1/ 9 1/ 7
1/ 9 1/ 7
1
3
1/ 3 1
1/ 3
1

1/ 7 
1 / 7 
3 

1 
1 



0.038
0.038


0.476
C5  

0.222
0.222





The Consistency Ratio of Matris C5= 0.025
The results of the last criterium of ―Campus Life and Social Life‖ are as in the Matris of C5. In this
criterium, the university in the third order is more likely to be preferred with the 47.6 % percentage.
After this point, to calculate the sequence is of great significance. Depending upon the values, it can be
mentioned that the decision about the university selection will be optimal. In this way, the decisions of the students
would be rational, not regretful.
The decision matris is seen in the last part of this application through this Formula [ Cij ] m×n ×[ Wi ]n×1.

0.134
 0.502

 0.067

 0.034
 0.260



0.245
0.046
0.105
0.497
0.105

0.034
0.260
0.502
0.067
0.134

0.195
0.195
0.073
0.073
0.462

0.038   0.184 
 0.171



 0.221
0.038   0.195 


0.476  ×  0.094  D= 0.136
 



0.222  0.481.
0.154
0.312
0.222   0.044 
 




 



When the values in the Matris D are assessed regarding the Table 4, 5 th university is in the first sequence
with the percentage of 32%. And this choice is the best and optimal one for the student.

533

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

The Sequence
Importance
1

of

Universities
5th UNIVERSITY

Approximate
Values
Importance in Percentage
31%

2

2nd UNIVERSITY

22%

3

1st UNIVERSITY

17%

4

4th UNIVERSITY

16%

5

3rdUNIVERSITY

14%

of

Table 4

Conclusion and Suggestions
All of us wants to have a very prestigous job at the end of our education for which we spend a great amount
of time on account of the fact that a job that makes us happy enables our life meaningful and productive. The
efficiencies of a certain job, perhaps, are presented to a great number of students in many universities. However, the
universities have some ups and downs in terms of the opportunities. Even this is the case for the same faculties of the
same university. To say in another way, the university that can offer opportunities should be prefered, not an
ordinary one. From this perspective, the decision of university selection which is the most critical stage of the
education should be given rationally. AHP is the method of mathematical decision by means of which the qualitative
and the quantitative cases can be assessed together.
As in the example of here, the university candidate ascertains some certain criteria both with group and
individual decisions. These criteria are ―the image and the prestige of the university‖, ―the knowledge in education
and the technological opportunities‖, ―the career opportunities in the university‖, ―the possibility of employment of
the university graduates‖, ―the atmosphere of the campus and the social life‖. The candidate student decides the
university of 5th university among the five university alternatives through the AHP method. It can be demonstrated
that this result is the most optimal and rational one. This method enables the student to reach the most liked
occupational efficiencies in the best and useful atmoshere.
AHP can be used not only in the university selection, but also in all of the management and the
organizational activities as the solution to the decisional problems. By means of this, the interested people, the
workers, and the managers can find the opportunity to reach the most suitable decision in a shortest way and thanks
to the consistency of the decisions, the unnecessary repetitions of the same procedures will be prevented.

References
Costa, R. &amp; Evangelista, S. (2008). An AHP approach to assess brand intangible assets, Measuring Business Excellence, Vo.12,
No.2, 68-78.
Dağdeviren, M.,Akay, D., Kurt, M. (2004). ĠĢ değerlendirme sürecinde analitik hiyerarĢi prosesi ve uygulaması, Gazi Üniversitesi
Müh. Mim. Fak. Dergisi, Vol.19, 131-138.
Dündar, S. &amp; Ecer, F. (2008). Öğrencilerin GSM operatörü tercihinin analitik hiyerarĢi süreci yöntemiyle belirlenmesi, Celal
Bayar Üniversitesi Ġ.Ġ.B.F Yönetim Ekonomi Dergisi, Vol.15, No.1, 195–205.
Hsu, P. F. &amp; Chen, B. Y.(2008). Integrated analytic hierarchy process and entropy to develop a durable goods hain store
franchisee selection model, A Pacific Journal of Marketing and Logistics, Vol.20, No. 1, 44-54.
Keskinen, E., Tiuraniemi, J., Liimola A. (2008). University selection in Finland: How the decision is made, International Journal
of Educational Management, Vol. 22, No.7, 638-650
Kidd,
J. M. &amp; Green, F. (2006). The careers of research scientists: Predictors of three dimensions of careeer commitment and
intention to leave science, Personnel Review , Vol. 35, No.3, 229-251.
Kuruüzüm, A. &amp; Atsan, N. (2001). Analitik hiyerarĢi yöntemi ve iĢletmecilik alanındaki uygulamaları‖ Akdeniz Ġ.Ġ.B.F. Dergisi,
No.1, 83-105.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Laker, D. R. &amp; Laker, R. (2007), The five- year Resume: A career planning exercise, Journal of Management Education, Vol.31,
No.1, 128-141.
Liu, L.B., Berger, P., Zeng, A., Gerstenfeld, A.(2008). Applying the analytic hierarchy process to the offshore outsourcing location
decision, Supply Chain Management: An International Journal, 13(6), 435-449.
Soutar, G. N. &amp; Turner, J. P.(2002). Student‘s preferences for university: A conjoint analysis, The International Journal of
Educational Management, 16(1), 40-45.
Varma, S., Wadhwa S., Deshmukh S.G.(2008). Evaluating petroleum supply chain performance, A Pacific Journal of Marketing
and Logistics, Vol.20, No.3, 343-356.
Veloutsou, C., Lewis J. W., Paton R. A.(2004). University selection: Information Requirements and importance, The International
Journal of Educational Management Vol.18, No.3, 160-171.
Veloutsou, C., Lewis J. W., Paton R. A.(2005). Consultation and realibility of information sources pertaining to university
selection, International Journal of Educational Management Vol.19, No.4, 279-291.
Walker, H. F. ve Levesque, J. /2006). Climbing the career ladder : It is up to you , Quality Progress , Vol 39, No.10, 28-32.
Yamamato, G. T. (2006). University evaluation-selection: A Turkish case, International Journal of Educational Management,
Vol.20, No.7, 559-569.

535

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                <text>The most important factor in career planning of a person is to direct him depending  upon his features. The best way of choosing career is to compare the wishes of a person with the  requirements of that career so that he can decide the best one. Particularly, those who think to have  a university education for their careers come across difficulties while deciding on their career path  on account of the fact that the global world can offer various opportunities for education in a great  many places. The student must choose by taking into account some criteria. As an example,  several factors play a crucial role in this process such as the academic success of the university, the  working opportunities provided, the distance of the university to the hometown of the student, the  economic status of that city, the facilities of accommodation. Considering all these factors, the  student should give an optimal decision. In this context, the common decision including both the  personal different opinions and convincing for all is strongly needed. AHP (Analytic Hierarchy  Process) has gained a very big momentum at these kind of situations.</text>
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                    <text>2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

The Effects and Role of Regional Development Agencies
in Economic Crises
Yusuf AKAN

Prof. Dr., Gaziantep Üniversitesi
Ġ.Ġ.B.F. Ġktisat Bölümü
yusufakan@hotmail.com
Ġbrahim ARSLAN

Doç. Dr., Gaziantep Üniversitesi
Ġ.Ġ.B.F. Ġktisat Bölümü
arslan@gantep.edu.tr
Eda GURSEL

AraĢ. Gör., Gaziantep Üniversitesi
Ġ.Ġ.B.F. Ġktisat Bölümü

Abstract: Regional development agencies,when looked at their historical.development
started to be constructed after the World Economic Crisis of 1929. Especially due to the
economic and social effects of the Second World War and interregional imbalances
,regional development agencies around the world became prominent. Countries have
began to understand that to get rid of the effects of the Economic crisis or to minimize
them , emphasizing the potentialities of the region themselves are so important that they
could compete with the world. Regional development agencies play the most important
role in the development of the region, considering the properties of each region.
Globalization has to adapt itself to the recent circumstances in order for all the unıts in
economy to be competitive. At the same time,we must benefit from the potentials of all
the regions to improve the economic conditions of the countries. Efficient use of
resources must be provided by preparing crisis programmes suitable to the region and
presenting them to the government to take which has been an effective precautions in
the crisis times. Regional imbalance problem has been an agenda in Turkey for years and
planned development started in the 1960s,thereby supporting the regional development
with the help of 5- year development programmes. In order for Turkey to increase the
competition power of the regions and to accelerate development , ıt has to give primary
importance to regional development and the agencies which play an important role in
it.In this study, the primary focus is to investigate the role and effects of development
agencies especially in the face of economic crises.
Key words: economic crisis, regional development agencies, Turkısh economy.

Introduction
It was understood that regional differences, seen almost in all countries of the world, is a problem to be
solved and there has been attached importance to development plans for regions. This situation was realized
immediately by developed countries and there has been tried to solve this problem by regional development
agencies. Development of regions and also country is provided by highlighting potential of the region by
development agencies and executing all situations, which are not followed by government, in coordination. At
globalization period, all units in all over the world are forced for competition and they have to integrate to these
conditions. Because of capital accumulation is not enough in Turkey, there is political uncertainty and it is a
country, to be face with crisis, it has been very difficult to apply stable policies for regional development. To
develop in high competition environment is enable by making long-term programs for taking place in
international area and taking provision for all kind of negative situations. There should be produce policies,
peculiar to the region for increasing prosperity level and decreasing economic and social instabilities between the
regions. In this study, regional development agencies, used as the most effective tool in performing policies and
policies, applied for decreasing crises will be discussed.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Definition of regional development agencies
The concept of ―region‖ is defined as community of countries, have same benefits under international
laws and in geographical, political and economic relationship. Producing and using of information , qualified
manpower, instable distribution in social, physical and economic infrastructure attach importance to necessity of
regional development. (Aktakas, 2006:1-7)
Generally, regional development agencies are agencies which accelerating economy, determining
regional problems, establishing strategies for solving these problems and supporting projects, developing these
strategies by gaining foreign capital to the country and giving consultancy services to domestic and foreign
investors with professional personnel.(Oskay, Kubar, 2007:204). Regional development agencies are institutions
which executing regional planning activities, providing technical and financial support to entrepreneurs by
determining advantaged and disadvantaged sectors of the region and taking full support of political and social
institution by gathering them together. (Tas, 2008:7). We will have been benefited from our own resources
rather than foreign resources by taking required precautions to use regional resources efficiently by the help of
regional development agencies and we can become nonreactive against to effects of outside at the time of crisis
and therefore we can be saved from crisis with the cheapest way.
The most comprehensive scope fields of regional development agencies are to collect information for
region by inspecting physical and humanly infrastructure of the region, and to develop development strategies,
which will improve the regional competitive power. (Tutar, Demiral, 2007:76).

Aims of regional development agencies
The most important aim of regional development agencies is to determine the specific characteristics
and problems of region and to develop economy of the region by improving policies, special to it and to provide
participation of local society to this development and to be benefited either the region and the country. To
provide technical support for planning studies of local administrations, to support regional plan and program
applications, to provide coordination gathering public organizations, civil organizations and private
organizations, to discover business and investment opportunities and to make the region an attraction centre are
the other aims of the region.(Oskay, Kubar, 2007:206). One of its duties is to prepare projects with universities
and education institutions for regional development(Arslan,2005:287). Improving of quality manpower, giving
educational services and forming a competition based business environment are also main aims of it.

Regional instability problem in turkey and development agencies
Regional development agencies were firstly established in 1930 at United States of America as
Tennessee Valley Authority (TVA). When developing countries are compared with developed countries, it was
seen that regional planning and regional development agencies there has not provided a sufficient development.
(Arslan,2005:275). As a result of destructive effects of Second World War, regional instability has increased in
European Countries. This situation has made necessity to form development plans in the world. There was
passed to planned development, related with DPT in Turkey on 1960. It was applied to priority regions for
development to remove regional development differences.
Also inequal spread of natural resources in Turkey could not provide stable spread of region at growth
and development period. (Aktakas, 2006:12). Trade centers generally major on west of Turkey. Because of
limited capital, high birth rate and unskilled manpower, there is an intensity from the eastern to the western of
Turkey. (Tas,2008:7). There is undercapitalization, high unemployment rate and undeveloped industrial structure
at less-developed countries. However, a faster development is provided for undeveloped regions rather than
other developed regions, the regional manpower rate will increase and the orientation to other developed regions
will decrease. (Benek:57).

Effect of crisis to economic development
It is to break stability of country with crisis and to cause a political and social problem and to create an
insecurity in society(Turk-Is, 2008: 5). As a result of global crisis effects on country and also structural problems
in economy, the problems of country get deeper. (Turk-Is, 2008:1). Generally, economic development means
completion of social, cultural, political development period of a country with economic growth. At the time of
crisis, not only economic but also social, cultural and political deterioration is occurred. Crisis, generally, causes
decreasing in economy and production quantity and increasing in inflation and unemployment rate and
instability in income distribution. (Altuntepe,131).

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Macroeconomic Variables
Growth Rate
Unemployment Rate %

2009
-4.7
14.0

Cpı (2003 Index)
Export (Million Dollars)

6.8
102.129

Import (Million Dollars)
Gdp (Million Dollars)

140.926
617.611

Table 1: In 2009, macroeconomic variables in Turkey
Source: www. tuik.gov.tr
After crisis in 2001, the important developments have been made in financial reform, R&amp;D,
information, communication, infrastructure fields to increase competitive power in Turkey. Turkey is effected
in respect of financial sector as well as real sector at the time of crisis. There is faced with problems such as
considering foreign investment as insecurity, increasing of short-term capital transactions and also high foreign
debt. (Kaya, Unal; 2009:1). At the time of crisis, the important thing is whether countries are prepared to these
situations. If countries whether this crisis with minimum effects, they will be able to protect their situations or
they will be able to increase their competition orders.

Role and effects of regional development agencies at economic crisis
The main subjects, should be interested by government are to remove regional instabilities in a country,
to solve their macro variables such as employment, growing and unemployment. It is clear that the developing
countries is effected from this situation rather than the others at crisis terms (Altuntepe:129). There should be
provided a specified coordination for applying these strategies from base to ceiling. The long-term and shortterm effects of crisis on countries are determined by precautions, taken against to crisis by countries before crisis
(Aktan,Sen, 2002:2). If Turkey becomes well-prepared for these situations, it will be integrated to the world
positively at the time of crisis. Turkey has been entered to structuring period with crisis in 1970 and a period in
which regional development takes first place and there is effective role of regional development agencies.
Regional development agencies can develop strategies, confirmed with the facts of country and it may make
national economy strong, without needed to foreign resources by an effective planning which will be guiding for
private sector and will be binding for public sectors. Development agencies should make studies for protecting
and widening the employment by gathering private sectors and government together(Turk-Is, 2008:2).
It is to take required actions against problems which will be able to occurred by the planning through
regional development agencies. There is an important duty of regional development agencies about developing
of industry by discovering internal potential of the region, drawing investments to the region and inciting SMEs
and increasing them to competitiveness level. (Arslan,2005:286). After crisis in Turkey in 2000‘s, regional
policy applications were realized and the period of conformity to EU has been accelerated. Regions should be
pen for innovations and opportunities. Therefore they can provide their development by using information and
technologies(Cetin, 131).
Especially there should be taken precautions for financial problems of SMEs, which is faced with crisis terms.
Also, credit resources should be retained fresh to help them for weathering their financial problems. Supports for
R&amp;D studies should be continue at those uncertainty terms. Supportive policies should be continued for
providing conformity of manpower with the situations.

Conclusion
Developed countries discovered the importance of increasing of life standards, raising welfare level,
increasing employment rate and to be a competitive country years ago and saw that regional development
agencies should be used effectively.
It was understood that regional instabilities could not be removed with central plannings and it is needed
to the plans and strategies which will be able to use regional resources effectively. Regional development
agencies cover with the most important work for realizing these plans and strategies. The importance of regional
development agencies has not been discovered for years and it has entered to our life as a liability for EU
adaptation process.
It will help for regional development by using limited resources of the country effectively with regional
development policies and so that it will be provided national development. Regional development agencies can

332

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

carry the country to an international platform by help of high technology and knowledge confirm with the
region. There is shown a changing in the direction of well-attended and cooperation with not programs, which
will come from centre but by using own information of regional development agencies.
If there is not enabled to be given an effective charge to regional development agencies, there will be
continued to contend with macro economic problem is, the main problem of the country, for years and it will
become a dream fort he country to take place at international competitive area. There con be weathered the crisis
periods with minimum damage by using long-term programs made by regional development agencies and by its
economic and social advantages.
Against to technologic developments in the world, all units at the world are forced for competition. We effect
from economic developments in the world and we have to account for move according to these effects. Its aim is
to discover region potential with cooperation of civil, special and public institutions via regional development
agencies, to make it competitive situation by using information and technology and to make us well-advised at
the time of crisis.

References
AktakaĢ,B.G.(2006). Bölgesel Yerel Kalkınma, Bölgesel geliĢme için bir model,Çukurova üniversitesi Sosyal Bilimler
Enstitüsü Yüksek Lisans Tezi Ankara .
Aktan, C. C.,&amp; ġen,H.(2002). Ekonomik Kriz : Nedenler ve Çözüm Önerileri,Yeni Türkiye Dergisi
Arslan,K.(2005). Bölgesel Kalkınma Farklılıklarının Giderilmesinde Etkin Bir Araç: Bölgesel Planlama Ve Bölgesel
Kalkınma Ajansları, Ġstanbul Ticaret Üniversitesi Sosyal Bilimler Dergisi Yıl:4 Sayı:7 s.275-294.
Altuntepe,N.(---). 2008 Küresel Krizinin Ülkelerin Ġstihdam Yapısı Üzerine Etkilerinin Dinamik Bir Analizi Süleyman
Demirel Üniversitesi, ĠĠbf, iktisat Bölümü.
Benek,.S. Ortaya ÇıkıĢı, GeliĢme Seyri Ve Bölgeye Etkileri Bakımından Güneydoğu Anadolu Projesi (GAP), Ankara
Üniversitesi SBF Dergisi 64-3,
http://dergiler.ankara.edu.tr/dergiler/42/998/12142.pdf
Çetin, M. Yerel Kalkınma Ajansları, Bozok Üniversitesi, Yozgat Ġktisadi ve Ġdari Bilimler Fakültesi, Ġktisat Bölümü,
http://eab.ege.edu.tr/pdf/6_2/C6-S2-M12.pdf
KarataĢ,A.(2009).Kalkınma Ajansları ve Kümelenme ĠliĢkisi, Çerçeve Haziran.
Oskay,C.S.&amp; Kubar,Y. (2007).Avrupa Birliği‘ne Uyum Sürecinde Türkiye‘de Bölgesel Kalkınmanın Finansmanında
Kalkınma Ajansları,Selçuk Üniversitesi Karaman Ġ:Ġ:B:F Dergisi Yerel Ekonomiler Özel Sayısı.
Özer,Y.E. Küresel Rekabet - Bölgesel Kalkınma Ajansları ve Türkiye, Review of Social, Economic &amp; Business Studies,
Vol.9/10, 389-408.
TaĢ;C.(2008). Kalkınmaya giden yol kalkınma ajanslarından mı geçer?, Gündem,Eylül
Tutar, F.,&amp;Demiral,M.(2007). Yerel Ekonomilerin Yerel Aktörleri: Bölgesel Kalkınma Ajansları,EskiĢehir Osmangazi
Üniversitesi ĠĠBF Dergisi Nisan, 2(1), 65-83.
Türk ,ĠĢ(2008), Türkiye ĠĢçi Sendikaları Konferasyonu, Ekonomik Krize KarĢı Önlemler Raporu , kasım,Ankara.
Yazkan,E. (2008).Bölgesel geliĢme politikalarının baĢarısında kalkınma ajanslarının rolü, . Yüksek Lisan Tezi,Kocaeli
Üniversitesi Sosyal Bilimler Enstitüsü Siyaset Bilimi Ve Kamu Yönetimi, Kocaeli.
http://www.planlama.org/new/imp/bolgesel-kalkinma-ajanslari.html
http://www.dpt.gov.tr/bgyu/kalkinmaajans/ajans.html
http://www.ttb.org.tr/mevzuat/index.php?option=com_content&amp;task=view&amp;id=698&amp;Itemid=41, Orta Vadeli Program (20102012)

333

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                    <text>2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Instrument for Pre-accession Assistance (IPA) to Turkey: Expectations and
Results
Hasan AKCA
Çankırı Karatekin University
Faculty of Economics and Administrative Sciences
Department of Economics
18100 Çankırı – Turkey
akcahasan@yahoo.com
Abstract: Turkey has benefited from the pre-accession financial aids of the EU to meet the
criteria for EU membership. As from 2007, all the EU assistance to candidate and potential
candidate countries has been brought under a single heading IPA. All components of the IPA
are open to Turkey as a candidate country. According to database of the Central Finance and
Contracts Unit (CFCU), totally 2 312 projects were carried out by various bodies in Turkey.
About €286 million were distributed to governmental and non-governmental organizations,
SMEs via projects. Literature review shows that information about EU funded projects in
Turkey is limited. Therefore, this study aims at analyzing EU funds towards Turkey in terms
of programme, organizations, performance ranks, expectations from projects and their results.

Introduction
In September 1959, as the European integration project gathered pace following the signing of the
Treaty of Rome, Turkey applied for Associate Membership of the European Economic Community (EEC). Four
years later, in 1963, the Ankara Agreement put Turkey on the road towards a customs union with the EEC, with
a view to eventual membership (Akcakoca 2006). At the same time, the EEC provided financial assistance to
Turkey under the First Financial Protocol (1963-1970) (ABGS 2007). Turkey was accepted as a ―candidate
country‖ by the EU at Helsinki Summit held in December 1999. Therefore, a new strategy was formulated for
supporting EU membership bid of Turkey (Anonymous 2007). The EU is committed to supporting Turkey in its
path for membership. The initial objective of EU financial support towards Turkey was the extension of an area
of peace, stability and prosperity within and beyond Europe. Once the EU accepted Turkey as a candidate,
financial assistance began to focus on supporting Turkey in its preparation for EU membership. Between 2001
and 2006 EU funds for Turkey were programmed on an annual basis under National Programmes for each year.
From 2007 onwards, this pre-accession financial instrument for Turkey has been replaced by the Instrument for
Pre-Accession Assistance (IPA) (Dimireva 2009).
Literature review shows that information about financial assistance of the EU to Turkey is very limited.
Therefore, aim of this study is to analyze EU funds for Turkey point of view of programme, organizations,
performance ranks, expectations from projects carried out by governmental and non-governmental organizations
and their results.

Brief Information about IPA
As from January 2007, the Instrument for Pre-Accession Assistance (IPA) replaces a series of EU
programmes and financial instruments for candidate and/or potential candidate countries, namely PHARE,
PHARE CBC, ISPA, SAPARD, CARDS and the financial instrument for Turkey (Anonymous 2006).
The IPA consists of five components (Table 1) (EU 2009):
 Component I: Assistance for transition and institution building
 Component II: Cross-border cooperation (with EU Member States and other countries eligible for IPA)
 Component III: Regional development (transport, environment, regional and economic development)
 Component IV: Human resources development (strengthening human capital and combating exclusion)
 Component V: Rural development.

The IPA beneficiary countries are divided into two categories (EU 2009):

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo



EU candidate countries (Croatia, Turkey and the Former Yugoslav Republic of Macedonia) are eligible
for all five components of IPA,
Potential candidate countries in the Western Balkans (Albania, Bosnia-Herzegovina, Montenegro,
Serbia, and Kosovo under UN Security Council Resolution 1244/99) are eligible only for the first two
components.

Component

1.Transition
Assistance &amp;
Institution
Building
2.
CrossBorder
Cooperation
3. Regional
Development
4.
Human
Resources
Development

5.
Rural
Development

Content
Addressing priorities as fully meeting the Copenhagen political
criteria, ability to assume the obligations of membership; as well as
the promotion of an EU-Turkey Civil Society Dialogue. Institution
building includes supporting programmes aimed at strengthening
the institutional capacity for the management of EU funds as well
as covering Turkey‘s participation in Community Programmes
Promoting good neighbourly relations, fostering stability, security
and prosperity in the mutual interest of all countries concerned, and
of encouraging their harmonious, balanced and sustainable
development
Preparing candidate countries in the development of policies,
investment planning and implementation, with a view to their
participation in Community Cohesion policy
Assisting Turkey in policy development as well as preparations for
the future implementation of the European Social Fund (ESF). It
will support a single operational programme addressing three major
areas of intervention: employment, education and training as well
as social inclusion
Preparing the candidate countries to implement the EU Common
Agricultural Policy (CAP) upon accession by helping them to align
their agricultural sectors to the Community standards that will be
applicable to them after accession and assisting them to develop a
policy for the agricultural sector and rural areas

Candidate
Countries

Potential
Candidate
Countries

√

√

√

√

√

---

√

---

√

---

Table 1: Components of the Instrument for Pre-Accession Assistance (IPA)
Annual or multi-annual programmes (depending on the component) are designed in accordance with the
strategic Multi-annual Indicative Planning Documents and adopted by the Commission following consultation
with the beneficiary countries and other stakeholders. They are implemented in one of three ways: by centralized
(assistance is managed by the Commission Headquarters in Brussels), decentralized (assistance is managed by
the authorities of the beneficiary country as a result of an accreditation process carried out by the Commission)
or shared (assistance is managed by the authorities of one of the Member States participating in the cross-border
programme) management (Anonymous 2010).
Types of assistance under IPA include finance investments, procurement contracts, grants, including
interest rate subsidies, special loans, loan guarantees and financial assistance, budgetary support, and other
specific forms of budgetary aid, and the contribution to the capital of international financial institutions or the
regional development banks (Anonymous 2006).

IPA and Turkey
In the past, the EU has provided support to Turkey under a variety of financial instruments, including
CARDS (2001-2004), PHARE and ISPA (2005-2006) as well as SAPARD (2006) (Anonymous 2010). IPA
provides countries seeking EU membership with a total amount of € 11.5 billion in the seven-year term from
2007 onwards (Anonymous 2009).
Pre-accession funding is directed mainly at state or civil institutions. Individuals are not eligible, except
for specific community programmes. In addition to state institutions, there are also programs open to
universities, civil society groups, media organizations and business interest groups. Projects benefit both the
administration and Turkish citizens directly: i) Ministries &amp; other governmental organizations, ii) Municipalities,
iii) Civil society, iv) SMEs, v) Unemployed and vulnerable groups especially youth and women, vi) School
children, vii) Farmers in poor areas (Anonymous 2008).

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

For 2007-2010, allocations of EU financial assistances to Turkey are shown in Table 2 (Anonymous
2010).

Transition Assistance &amp; Institution Building
Cross-border Co-operation
Regional Development
Human Resources Development
Rural Development
Total

2007
256.7
2.1
167.5
50.2
20.7
497.2

2008
256.1
2.9
173.8
52.9
53.0
538.7

2009
233.2
9.4
182.7
55.6
85.5
566.4

2010
211.3
9.6
238.1
63.4
131.3
653.7

2011
230.6
9.8
291.4
77.6
172.5
781.9

2012
250.9
10.0
350.8
89.9
197.9
899.5

Table 2: Financial Assistance of the EU to Turkey under IPA (2007-2012) (€ million)
As of December 31, 2009 number of projects implemented in Turkey was totally 2 312 (Table 3)
(CFCU 2010).
Bodies
SMEs
Associations
Municipalities
Chambers
Foundations
Unions
Villages Service Unions
Universities
Others
Cooperatives
Farmer Groups
Special Provincial Administration
Colleges
Villages
Trade Unions
Vocational High Schools
Public Bodies
Primary Schools
Total

Number of Contracts
654
341
291
245
145
95
76
73
68
66
65
50
38
35
33
21
12
4
2 312

%
28.29
12.75
12.59
10.60
6.27
4.11
3.29
3.16
2.94
2.85
2.81
2.16
1.64
1.51
1.43
0.91
0.52
0.17
100.00

Grant (€ million)
47.77
22.86
88.95
21.62
13.19
8.92
21.21
11.79
7.18
5.13
5.31
15.55
3.78
5.00
3.72
1.45
2.62
0.13
286.18

%
16.70
8.00
31.10
7.50
4.60
3.12
7.41
4.12
2.50
1.80
1.86
5.44
1.32
1.75
1.30
0.51
0.92
0.05
100.00

Table 3: Performance Ranks by Bodies (As of 31 December 2009)
The EU provides financial assistance to Turkey and helps it reform and adapt its institutions and
legislations. Financial assistance takes the form of projects on the ground following phases of programming and
contracting. Hundreds of projects are being carried out across all sectors throughout Turkey. Some of the
successful projects are summarized in Table 4.
In recent years, tendency of SMEs, governmental and non-governmental organizations to prepare EU
funded projects have increased day by day. For example, in 2009, nearly 5 000 projects were submitted to CFCU
during the call for projects proposals in the following fields: Strengthening Pre-School Education Grant Scheme,
Civil Society Dialogue: Istanbul 2010 European Capital of Culture, Increasing School Enrolment Rates
Especially for Girls Grant Scheme, Promoting Youth Employment Grant Scheme, Promotion of Life Long
Learning (LLL) Grant Scheme, Promoting Women‘s Employment Grant Scheme, Promoting Registered
Employment through Innovative Measures Grant Scheme.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Subjects
Culture and tourism
Health and food safety
Infrastructure
and
environment
Reform of police and judiciary
Social inclusion and education
Socio-economic development

Examples
Cultural Heritage in South-eastern Anatolia; The power of information
Minimizing the Bird Flu Threat
EU project took Turkish ships off the black list; EU support fot modern
railways
EU supports the fight against child labor
EU Support to Basic Education in Turkey; Call… Don‘t be silent!;
Bizimköy (our village) integrates disabled people into society
Project that breaks new ground in vocational education and training: SVET;
EU loan for small businesses; Quality: key to successful partnership in trade;
Regional Development Programmes reduce economic and social disparities
Table 4: Some Successful Projects in Turkey

Call for
Projects
in 2009

Call for
Projects
in 2010

Strengthening Pre-School Education Grant Scheme
Civil Society Dialogue: Istanbul 2010 European Capital of Culture
Black Sea Basin Joint Operational Programme 2007-2013
Increasing School Enrolment Rates Especially for Girls Grant Scheme
Promoting Youth Employment Grant Scheme
Promotion of Life Long Learning (LLL) Grant Scheme
Promoting Women‘s Employment Grant Scheme
Promoting Registered Employment through Innovative Measures Grant Scheme
Civil Society Dialogue II: Fisheries and Agriculture Grant Scheme
Developing Civil Dialogue among NGO's
The Civil Society Facility: EU-Turkey Intercultural Dialogue - Culture and Arts
Grant Scheme (ICD-CA)
Empowering Civil Participation at Local Level
Voc-Test Centres Grant Scheme
Civil Society Dialogue-II: Micro Grant Scheme
Empowerment of Women and Women NGOs in the Least Developed Regions
of Turkey (Southeastern Anatolia, Eastern Black Sea, Eastern Anatolia)
Civil Society Dialogue-II: Culture and Arts

Total Budget (€)
5 270 000
1 578 900
1 339 401
10 000 000
21 000 000
5 000 000
13 700 000
11 850 000
2 200 000
800 000
1 447 368
200 000
6 000 000
200 000
3 000 000
1 800 000

Table 5: Call for Projects in 2009 – 2010
In the first half of the year 2010, CFCU announced call for proposals: Civil Society Dialogue II:
Fisheries and Agriculture Grant Scheme, Developing Civil Dialogue among NGO's, The Civil Society Facility:
EU-Turkey Intercultural Dialogue - Culture and Arts Grant Scheme (ICD-CA), Empowering Civil Participation
at Local Level, Voc-Test Centers Grant Scheme, Civil Society Dialogue-II: Micro Grant Scheme, Empowerment
of Women and Women NGOs in the Least Developed Regions of Turkey (Southeastern Anatolia, Eastern Black
Sea, Eastern Anatolia), and Civil Society Dialogue-II: Culture and Arts (CFCU 2010).

Conclusion
For a long time, Turkey has benefited from EU financial assistance under different titles or applications.
As from 2007, EU funds are used by candidate and potential countries according to IPA.
Expectations of the EU from Turkey in the context of IPA assistance and results of the implementation
of the EU funded projects in Turkey are given in Table 6.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Expectations of the EU from Turkey
Results of the EU funded projects
 Support economic, political and EU projects were an opportunity for various bodies that did not have
social reforms in Turkey
enough finance
 Prepare
Turkey
for
the Number of EU funded projects have been increased in Turkey day by
management and implementation day
of Structural Funds.
 Number of projects carried out interdisciplinary were increased
 Knowledge transfer among organizations in both EU member
countries and Turkey was achieved
Table 6: EU Financial Assistance, Expectations, Results of the EU Funded Projects
The interim evaluations of EU pre-accession assistance (Phare 1999-2002) and EU pre-accession
support to Turkey (2003-2006) have highlighted a number of lessons that may be drawn for future assistance.
The evaluations of assistance to Turkey lead to similar conclusions (STB, 2007):
 Absence of adequate planning documents and sectoral strategies (particularly as concerns economic and
social cohesion) resulting in weaknesses in needs analysis;
 Insufficient attention to horizontal public administration reforms in the support for the development of
administrative and judicial capacity; and
 Weaknesses in programme management resulting from understaffing and instability of the DIS
institutions.

References
ABGS (2007). History of Turkey-EU Relations. Republic of Turkey-Prime Ministry Secretariat General for EU Affairs
(www.abgs.gov.tr/index.php?p=111&amp;l=2).
Akca, H., Albeni, M. (2009). Benefiting of Turkey from Financial Assistances of the EU: Difficulties and Successes.
Proceedings of 2nd ICES: Political, Economic and Social Challenges of the Balkan Countries in the Process of European
Integration, 6-7 November 2009, Tirana, p: 319-324.
Akcakoca, A. (2006). EU-Turkey relations 43 years on: train crash or temporary derailment? European Policy Centre (EPC)
Issue Paper No: 50.
(www.epc.eu/TEWN/pdf/230573719_EPC%20Issue%20Paper%2050%20-%20EU-Turkey%20relations.pdf)
Anonymous (2006). Instrument for Pre-Accession Assistance (IPA) Multi-Annual Indicative Financial Framework for 20082010 (www.2007-2013.eu/documents/external/ipa_miff_081106_en.pdf).
Anonymous (2007). Financial Assistance between 1999-2006. Delegation of the European Union to Turkey
(www.avrupa.info.tr/AB_Mali_Destegi/2007_Sonrasi,1999-2006.html).
Anonymous (2008). Who is eligible? Delegation of the European Union to Turkey (www.avrupa.info.tr).
Anonymous (2009). Turkey 2009 Progress Report. Commission of the European Communities
(http://ec.europa.eu/enlargement/pdf/key_documents/2009/tr_rapport_2009_en.pdf)
Anonymous (2010). Turkey-Financial Assistance. European Commission. (http://ec.europa.eu)
CFCU (2010). Official web page of Central Finance and Contracts Unit (www.mfib.gov.tr).
Dimireva, I (2009). EU Funding in Turkey (www.eubusiness.com/europe/turkey/funding).
EU (2009). http://ec.europa.eu/regional_policy/funds/ipa/
STB (2007). Turkey Multi-annual Indicative Planning Document (MIPD) 2008-2010
(http://ipa.stb.gov.tr/en/Files/DraftMipd.pdf)

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                    <text>2nd International Symposium on Sustainable Development, June 8-9, 2010 Sarajevo

The Level of Using Technology for Pre-Graduate Students While Preparing
Assignments
Ahmet Ocak AKDEMĐR
Doctoral Student at Ataturk University
Institute of Natural and Applied Sciences
Instructor at Ağrı Đbrahim Çeçen University
ahmetakdemir@agri.edu.tr
M. Emin ÖZDEMĐR
Professor at Ağrı Đbrahim Çeçen University
emos@atauni.edu.tr
Abstract:The aim of this study is to determine the level of using
technology of Pre-Graduate students likewise internet and other basic
technology resources while they are preparing their assignments. The
centre of the research is Pre-Graduate students of AICUNI (Ağrı Ibrahim
Çeçen University), Vocational Training School of Ağrı.
Students have opportunities of accessing some other resources different
from books and papers with the help of developing informative
technologies finding their way through educational settings. Contrary to
traditional teaching/learning methods, developing technologies, especially
educational technologies, make it unavoidable for students to use them
while preparing assignments. While evaluated as information resources,
technologies such as internet and TV undoubtedly provide great
convenience to students for their individual studying. However there exist
some obstacles in the technology use for students such as access to
technology, know-how of tools, anxiety level etc.
With the questionnaires that are applied to our students of Pre-Graduate
students of AICUNI (Ağrı Ibrahim Çeçen University), Vocational Training
School of Ağrı we tried to determine the level of using technologies while
they are preparing assignments.
Determining their level of using technology will be useful for teachers and
lecturers to understand students’ tendencies about internet and other
technological resources as educational materials.
Key Words: Pre-Graduate, technology, assignment, internet, educational
technologies.

Introduction
Technology, which literary means “applying knowledge to process in industry systematically”, broadly
is a collection of knowledge and abilities to actualize effective and productive process that covers research,
development, production, marketing, selling, service during post-selling period. Technological innovation is
defined as “innovation in production processes, mew productions and news types of institutional organizations”.
On the other hand, there are industry branches that are “science and technology oriented” sectors such as
particularly electronic, energy, informatics, space, bio-engineering, organic chemistry and defence industry that
is intersection of these sectors and brings the highest amount value added tax consequently contributes to social
welfare at the highest level. Using technology has become compulsory to get success in many fields now.
Technological opportunities and devices have been started to be used, in recent years, especially in education
fields densely and new teaching approaches have been started to be built considering education outputs.
As a result of common technical infrastructure in classes and buildings of schools using technology has
become one of the standards in all levels from primary to higher education. Access to mass media, on-line
libraries, internet and computer, digital databases and other technology based information sources has caused a
decrease regarding access to written and published sources. Accessibility, broadness and richness in terms of
content, time and financial savings are seen as positive aspects that support using technology.
Due to the high rate of unemployment, problems in the field of employment, increased numbers of
qualified staffs because of the high standard in education consequently there is a competition atmosphere that

289

�2nd International Symposium on Sustainable Development, June 8-9, 2010 Sarajevo
always aims better standards. In order to be different from others under such an atmosphere, receive good
education has gained importance. In parallel with these facts, big steps taken in education field educational
statistics have reached a level that has potential to be raised fast. Especially, everyone has accepted that a higher
education, which focuses on technical and vocational education, has become compulsory.
Increased numbers of universities, increased students placements and new departments and programmes
established in the light of the needs analysis have made higher education a centre of attraction for young people.
There is a focus on technology based education to meet such a demand in the best way. To meet needs in terms
of intermediate staff, numbers of vocational high-school have been increased.
A transition process from traditional education mentality to mentality based on world facts has been
started as a result of schools which are equipped with technical infrastructure and technology opportunities in all
levels e.g. primary to higher education (Özdaş, 1997). There is more research and application based activities in
new education models and student-centred education mentality is practised. Students graduate from schools after
they gain qualities, which are requirements of their departments and potential professions, via fulfilling their
tasks such as research activities, performance projects and they become successful.
Homework, which is important for education, can be defined as out-of-school activities assigned by
teachers. These assignments are given to students as it is aimed that students should improve their knowledge
and abilities they gain inside of schools. While students do their homework, they gain new experiences with new
materials and knowledge. Students realize and improve their ability, interest and knowledge, make up their
deficiencies, gain habit to study lesson regularly, drift away from memorization and establish a studying method
based on research, increase their creativity via these experiences. Therefore, homework has short-term benefits
such as getting high mark and long-term benefits such as supporting aspects to become a successful, responsible,
creative, researcher person.
In this regard, homework can be classified under three topics:
• Application homework, it aims that students shall apply their new knowledge, abilities, repeat and revise
them. It is like practice homework that is about subjects of the concerned day.
• Preparatory homework, it aims to prepare students for next subjects in a better way and provide basic
knowledge about required subjects. It is like preparation for next day.
• Homework to improve, it is generally long time projects that are implemented in parallel with class
activities. It aims to improve students’ personal knowledge and abilities. It is like a research about a
particular subject or writing summary of a book (Aksüt,2005).
One of the most used sources in preparing projects and doing homework is access to internet. Internet,
which is preferred by students at the highest level as it contains more information that a student want and is easy
to use, is a unique education material but it may cause negative effects because of its risks.
Today when we think technology in terms of information source, we remember internet first and then
TV and other mass media tools such as digital databases and other technology based materials (Gentry,1995).
According to a research; information source and benefiting from internet during preparing project and doing
homework period is high among students of faculty of education. 70 % of student state that they benefit from
internet while they do their homework because it saves time. In addition students want to benefit also from
academicians’ personal webpage and universities’ e-libraries. (Aksüt,2005)

Method
Aim of this research is to determine associate degree students’ level of using technology while they
prepare their project and do their homework and their attitudes towards technology. This study is important
regarding the following aspects; associate degree students should be able to question education system that they
attend and verify outputs of education under existing conditions. Screening method has been used in the
research. There are 20 questions in the questionnaire. Subject of the questionnaire is students’ level of using
technology, their opinions and preferences about technology.
Results have been evaluated with five point likert scale. First the questionnaire had been applied to a
small group, which was determined coincidentally among main group and questions were discussed with these
students. In addition to that there were meetings with administrators and academicians of the Ağrı Đbrahim Çeçen
University, where research has been conducted. Sample of the research is composed of 153 students that chosen
randomly from four programmes of Ağrı Vocational High-school.

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�2nd International Symposium on Sustainable Development, June 8-9, 2010 Sarajevo

Programmes

Female

Male

Total

Accounting and Tax Applications

29

27

56

Machinery

1

31

32

Electricity

2

36

38

Furniture and Decoration

1

26

27

TOPTAL

33

120

153

Table 1. Gender of participants

Findings
As student activities are important in modern education mentality, associate degree students are given to
performance projects and this mentality contributes to intensify their knowledge via leading them to project
based studies and keep their high readiness level active during term. Therefore, students think that using
technology is compulsory in order to meet these requirements.
According to research findings; students use technological tools such as internet, TV and etc… at a high
level while they prepare their project and do their homework (4, 45). Most of the students think that preparing
project or doing homework in an internet house saves time (4,02). Students state that using technology makes
them successful (3,97), they are able to use computer programmes that are necessary to prepare their projects and
do their homework (3,86). Students group which took part in the research state that they want to benefit from
schools and academicians’ website as it is important for their success (3,83). Majority of the students defends
that information, which they get from internet is enough for their projects and homework (3,41).
Similarly majority of the students states that they use memory stick (3,35), access to e-book while they
prepare their projects and do their homework (3,03). Associate degree students, which think that homework
should be assigned in the form of performance projects (2,82), do not have clear opinions whether physical
environment is suitable or not to do homework in internet houses (2,69).
According to the research there are students that use town library (1,68) and school’s library (1,19) and
a significant amount of students ask help from staff in internet house (1,86) or pay money to staff for their
homework, projects (1,98).
Some students state that they use on-line libraries (1,45) and some other students defend books and
sources, which they currently have are enough (1,83). A small group of students (1,26) state that they benefit
from academicians’ books.

291

�I use technological facilities such as internet and TV while I prepare project or do
homework
Preparing project or doing homework in internet house saves time
Using technology to prepare projects or do homework contribute to my success
I am able to use computer programmes while I prepare projects or do homework
School’s website and academicians’ webpage provides easiness to us
Content of projects or homework based on internet, TV and other communication tools is
satisfactory
I know and use memory stick
I access to e-book rather than buy books that might be necessary for homework and
projects
Homework and projects should be assigned in the form of performance project
Physical environment in internet house is suitable to prepare projects or do homework
Laboratory and other technological sources in the school are satisfactory to prepare
projects or do homework
Technological facilities are used in a satisfactory level in the classes
I pay money to staff in internet house for my projects or homework
I ask help from staff in internet house for my projects or homework
Books and other sources that I have are enough to prepare projects or do homework
I often go to town library to do homework
I think academicians use computer in a satisfactory level
I can use database, on-line libraries
I benefit from academicians’ books while I prepare projects or do homework
I benefit from school’s library to prepare project or do homework

Average

OPTIONS

Order

2nd International Symposium on Sustainable Development, June 8-9, 2010 Sarajevo

2

4,45

1

4,02

12

3,97

7

3,86

3

3,83

4

3,41

10

3,35

6

3,03

17

2,82

5

2,69

18

2,60

8

2,43

16

1,98

9

1,86

15

1,83

14

1,68

19

1,52

11

1,45

20

1,26

13

1,19

Table 2.Research Questionnaire’s List According to Order of Average
In conclusion, it is understood that associate degree students’ inclination to use technology is on
increase gradually; they are open to using technology and want regulations that shall support using technology in
the school. It is also understood that they complain about lack of sources such as library, database that they need
to prepare project or do homework.

292

�2nd International Symposium on Sustainable Development, June 8-9, 2010 Sarajevo

References
Aksüt M. Nihat Çakın,Đbrahim Battal,Özgür Tuğyan. "Eğitim Fakültesi Öğrencilerinin Ödev Hazırlamada Đnternet
Kullanımına Đlişkin Tutumları" 10.Türkiye Đnternet Konferansı. 9.10.11 Aralık 2005. Bahçeşehir Üniversitesi Đstanbul. inettr.org.tr/inetconf10/bildiri/77.docĐ.
Driscoll M. &amp; Dick W. (1999). New Research Paradigms in Instructional Technology: An Inquiry. ETR&amp;D, 47(2), pp. 7-18.
Gentry, C.G. (1995). “Educational Technology: A question of Meaning. Part 1 in Instructional Technology: Past, Present,
and Future, G. J. Anglin (Ed.), (2nd ed.), Englewood, CO, Libraries Unlimited.
Özdaş, A. (1997). Öğretim Đlke ve Yöntemleri, http://www.dersimiz.com/eyazim/yazi.asp?id=64
Özdaş, Ali, Öğretim Đlke ve Yöntemleri, Đstanbul 1997

293

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ÖZDEMİR, M. Emin</text>
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                <text>The aim of this study is to determine the level of using  technology of Pre-Graduate students likewise internet and other basic  technology resources while they are preparing their assignments. The  centre of the research is Pre-Graduate students of AICUNI (Ağrı Ibrahim  Çeçen University), Vocational Training School of Ağrı.  Students have opportunities of accessing some other resources different  from books and papers with the help of developing informative  technologies finding their way through educational settings. Contrary to  traditional teaching/learning methods, developing technologies, especially  educational technologies, make it unavoidable for students to use them  while preparing assignments. While evaluated as information resources,  technologies such as internet and TV undoubtedly provide great  convenience to students for their individual studying. However there exist  some obstacles in the technology use for students such as access to  technology, know-how of tools, anxiety level etc.  With the questionnaires that are applied to our students of Pre-Graduate  students of AICUNI (Ağrı Ibrahim Çeçen University), Vocational Training  School of Ağrı we tried to determine the level of using technologies while  they are preparing assignments.  Determining their level of using technology will be useful for teachers and  lecturers to understand students’ tendencies about internet and other  technological resources as educational materials.</text>
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                    <text>Nuclear Energy: An Alternative Energy Source For Turkey
Đskender Akkurt
Süleyman Demirel Üniversity
Science and Arts Faculty Physics Department Isparta-Turkey
iskender@fef.sdu.edu.tr
Hakan Akyıldırım
Süleyman Demirel Üniversity
Science and Arts Faculty Physics Department Isparta-Turkey
Betül Mavi
Süleyman Demirel Üniversity
Science and Arts Faculty Physics Department Isparta-Turkey
Murat Öztürk
Suleyman Demirel University,
Hydrogen Technology Res. and Application Center, Isparta, Turkey
Nuri Özek
Süleyman Demirel Üniversity
Science and Arts Faculty Physics Department Isparta-Turkey

Abstract: Energy consumption is an important parameter to show the development level of a
country. Thus the total energy consumption per capita (in 2005) is 1778 (unit is kilograms of
oil equivalent (kgoe) per person) for world average, 4720 for developed countries and 975.9
for developing countries. On the other hand it is 1185.9 for Turkey. Although there are many
different energy sources for many different countries depending on the geological and
geographical conditions, Nuclear energy is one of the most commonly used alternative energy
source in especially developed countries. The first large-scale nuclear power plant opened in
England, in 1956 and nowadays about 16% of the world's energy needs has been produced
from Nuclear power plants where huge amounts of energy from small amounts of fuel can be
obtained without any pollution by burning fossil fuels. This rate is about 24% for developed
countries. In conventional nuclear power plant the energy is generated using Uranium (235U)
fuel. In a typical sample of natural uranium, most of the weight (99.27%) consists of atoms of
238
U and about 0.72% of the weight consists of atoms of 235U. This requires enrichment of the
235
U in the sample which is expensive and high technology. On the other hand recently new
generation nuclear power plant based on the proton accelerator so-called Accelerator Driven
System (ADS) has been proposed. Establishing nuclear power plant will lead to be transferred
nuclear technology to Turkey and it will be possible to be used it in other fields.
Keywords: Energy, nuclear power plant, Turkey, nuclear technology.

Introduction
As a scientific term, energy describes the amount of work performed by a force, an attribute of objects and
systems that is subject to a conservation law (Kittel vd., 1973:134). Different forms of energy such as kinetic,
potential, thermal, gravitational, sound, light, elastic, and electromagnetic energy are available. All living
organism needs energy to continue their life. Especially radiation from the Sun in the case of green plants is
necessary to be fed. For this purposes from the beginning of life people have always been searching new types of
energy sources as the population has increased sharply. Energy consumption of a country is an important
parameter to show the development level. Thus the total energy consumption per capita (in 2005) is 1778 (unit is
kilograms of oil equivalent (kgoe) per person) for world average, 4720 for developed countries and 975.9 for
developing countries. On the other hand it is 1185.9 for Turkey. The world population and related electricity
demand as a function of year is shown in Fig.1. It can be seen from this figure that the world population
448

�increases fast according to world average of 2%. It seems that at the end of this century population and related
energy demand will almost be equal (Omer, 2008).

Energy Sources
Energy sources are not used directly in daily life and also in industry. Those of energies are used in electricity
generation and most of the electricity power plants use turbines to generate electricity and here it is important to
turn turbines. Although some types of turbines can be driven by wind or falling water, most of them are driven
by a steam which can be obtained by boiling water using different types of energy. This is scheduled in Fig.2.
For this purposes it is important to find new energy source. Before construction power plant where different
types of energies are used to generate steam, there are some parameters to be considered. Because energy power
station have to be considered plays an increasingly vital role in national security of any country. Those
parameters
• Economical efficient
• Foreign dependence
• Environmental effect
• Resources potential
• Efficiency
With those of parameters any country should decide which types of energy sources, will be detailed below,
suitable to be used to generate electricity.

Figure 1. World population and electricity demand as a function of year (Omer, 2008).

Nuclear Energy
Nuclear energy is obtained from the fission of heavy nuclei such as uranium, plutonium or thorium and also
from the fusion of hydrogen into helium. When an heavy nuclei is splitted an energy is released due to the
loosing of some part of nuclear mass. The conversion of nuclear mass to energy is described by Einstein as

∆E = ∆ m ⋅ c 2
449

�where ∆E is the energy release, ∆m is mass defect and c is the speed of light (Kaplan, 1965:178-180). The first
large-scale nuclear power plant opened in England, in 1956 and nowadays about 16% of the world's energy
needs has been produced from Nuclear power plants where huge amounts of energy from small amounts of fuel
can be obtained without any pollution by burning fossil fuels. This rate is about 24% for developed countries. In
conventional nuclear power plant the energy is generated using Uranium (235U) fuel. In a typical sample of
natural uranium, most of the weight (99.27%) consists of atoms of 238U and about 0.72% of the weight consists
of atoms of 235U. This requires enrichment of the 235U in the sample which is expensive and also heart of this
high technology.
The Nuclear energy is used to generate steam is used to drive turbines as described previous section. For this
purposes an extra section called “reactor” should be built. Nuclear reactor basically controls chain reactions
(fission) to release heat desired rate. Although there are many different types of nuclear reactor types, most
commonly used types are namely Advanced Gas-Cooloed Reactor (AGR), boiling-water reactors (BWRs), and
pressurized-water reactors (PWRs) and liquid metal fast breeder reactors (LMFBR), high temperature gas cooled
reactors (HTGR). On the other hand recently new generation nuclear power plant based on the proton accelerator
so-called Accelerator Driven System (ADS) has been proposed.
As the energy is an important for developing country such as Turkey, it is vital to spread out energy sources to
generate electricity. It can be concluded that the nuclear energy is an important energy sources for any country
not just for generating electricity also to transfer nuclear technology which can be used a variety of different
fields.

Figure 2. Schematic view of electricity generation.

References
Kaplan, I., (1965), Nuclear Physics, Çev. Nusret Kürkçüoğlu, Berksoy Matbaası, Đstanbul.
Kittel, C., Knight, W.D., Ruderman, M.A., (1973), Mechanics Vol 1, New York.
Omer, A.M. “Energy, Environment And Sustainable Development” Renewable and sustainable energy reviews
12(2008)2265

450

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Akyıldırım, Hakan
Mavi, Betül
ÖZTÜRK, Murat
ÖZEK, Nuri</text>
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                <text>Energy consumption is an important parameter to show the development level of a  country. Thus the total energy consumption per capita (in 2005) is 1778 (unit is kilograms of  oil equivalent (kgoe) per person) for world average, 4720 for developed countries and 975.9  for developing countries. On the other hand it is 1185.9 for Turkey. Although there are many  different energy sources for many different countries depending on the geological and  geographical conditions, Nuclear energy is one of the most commonly used alternative energy  source in especially developed countries. The first large-scale nuclear power plant opened in  England, in 1956 and nowadays about 16% of the world's energy needs has been produced  from Nuclear power plants where huge amounts of energy from small amounts of fuel can be  obtained without any pollution by burning fossil fuels. This rate is about 24% for developed  countries. In conventional nuclear power plant the energy is generated using Uranium (235U)  fuel. In a typical sample of natural uranium, most of the weight (99.27%) consists of atoms of  238U and about 0.72% of the weight consists of atoms of 235U. This requires enrichment of the  235U in the sample which is expensive and high technology. On the other hand recently new  generation nuclear power plant based on the proton accelerator so-called Accelerator Driven  System (ADS) has been proposed. Establishing nuclear power plant will lead to be transferred  nuclear technology to Turkey and it will be possible to be used it in other fields.</text>
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                    <text>Boronizing: Radiation Shielding of Stainless Steel
Iskender Akkurt
Süleyman Demirel University Fen-Edebiyat Fak. Fizik Böl. Isparta-Turkey
skender@fef.sdu.edu.tr
Adnan Çalık
Süleyman Demirel University Teknik Eğt. Fak. Makina Egt. Böl. Isparta-Turkey
Hakan Akyıldırım
Süleyman Demirel University Teknik Eğt. Fak. Yapı Egt. Böl. Isparta-Turkey
Nazım Uçar
Süleyman Demirel University Fen-Edebiyat Fak. Fizik Böl. Isparta-Turkey

Abstract: Boron is an important element and about 75% of the world reserve is in Turkey
and it can be used in a variety of 400 different fields. Moreover it can be used in strategic
fields such as defense or nuclear technologies directly or by boronizing of materials for some
different applications. In the radiation shielding besides some materials such as lead, the
boronizing of the material can be used to increase radiation shielding capability. In this study
the importance of the boron and its application will be detailed and application of the
boronizing on the radiation shielding properties of some types of steel will be presented.
Keywords: Boron, radiation shielding, stainless steel

Introduction
Boron is a black, lustrous material and conducts electricity like a metal at high temperatures and is almost an
insulator at low temperatures. It was first isolated in 1808 by heating boron oxide (B2O3) with potassium metal.
The elemental boron is widely used to increase hardness in steel and also used in the nonferrous-metals industry,
generally as a deoxidizer, in copper-base alloys and in aluminum castings to refine the grain. It is estimated that
about 75% of the known boron reserves of the World are in Turkey. On the other hand the only 22% of the boron
based production are produced in Turkey. The boron can be used in a variety of 400 different fields such as
kitchen staff, defense sector and also agriculture. Radiation always exists in our environment due to the natural
and man-made sources and this is called background radiation. Especially after development of the technology
man-made radiation has significantly increased. Thus the radiation protection became an important subject in
nuclear science. The basic rule for the radiation protections is time, distances and shielding and the latest one is a
most commonly used methods. Although heavy metals such as lead have been used for this purpose, an
alternative method would be investigated. Boron can be an alternative for radiation shielding and boronizing of
the materials used in radiation shielding can be used to improve radiation shielding properties. In this study
radiation shielding properties of the boronized steel has been investigated.

Materials and Methods
Besides utilization of boron itself, boronizing is the most commonly used technology in different fields.
Boronizing processes is an important technology and different types of samples have being boronized in
Suleyman Demirel University Technical Faculty laboratory for different purposes (Calık et al. 2007). This is
achieved in a solid medium using the powder pack method where a commercial Ekabor-II boron source and
activator (ferro-silicon) were mixed. The packed samples are heated in an electrical furnace for required period
(usually several hours) at about 1000 oK under atmospheric pressure. After the bonding process the samples is
cooled at a rate of 15 °C/min to room temperature before removal from the chamber. The samples are sectioned
from one side and prepared metallographically up to 1200-grid emery paper and then polished, using 0.3-Am
alumina pastes.

292

�For the radiation shielding properties, the linear attenuation coefficients have been measured using gamma
spectrometer system (Akkurt et al. 2004, Akkurt et al. 2006, Akkurt et al. 2008). In the system NaI(Tl) detector
connected to Multi-Channel-Analyzer (MCA). Gamma rays have been obtained from the 137Cs and 60Co sources.
Those produce 0.662 and 1.17, 1.332 MeV energy.

Results and Discussions
The linear attenuation coefficients (µ) of steel were measured at the photon energies of 0.66, 1.17 and 1.332
MeV obtained from 137Cs and 60Co γ-ray sources respectively. This measurement has been performed before and
after boronizing. This is displayed in Figure 1 where it can clearly be seen that the boronizing processes
increased linear attenuation coefficients.

Figure 1. Linear attenuation coefficients for boronized and unboronized steel

References
Akkurt I. et al. 2004 "The photon attenuation coefficients of barite, marble and limra" Annals of Nuclear Energy 31,577-582
Akkurt I. et al. 2006 "Radiation shielding of concretes containing different aggregates" Cement and Concrete Composites,
28-2,153-157
Akkurt I. et al. 2008 "The effect of boronizing on the radiation shielding properties of steel" Z.Naturfors. A 63a, 445-447
Çalık A. et al. 2007 "Mechanical Properties of Boronized Fe-0.94%Mn Binary Alloy" Z.Naturfors. A 62a, 545-548
Çalık A. et al. 2008 "Specimen geometry effect on the mechanical properties of AISI 1040 steeel" Z.Naturfors. A 63a, 448452

293

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Akyıldırım, Hakan
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                    <text>2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Regulations and Accounting Applications in Insurance Sector of Turkey
Rafet AKTAġ
Dumlupinar University, Turkey
rafetaktas@gmail.com
Süleyman AÇIKALIN
acikalinsuleyman@hotmail.com

Abstract: Insurance is a contract with a premium payment based on the principle of paying claims
when the risk, that is the reason of insurance for an interest, is realized. Trust is the base of
insurance business. This sector especially in developing countries has a potential to raise new
funds for economic development. In Turkey, 61 firms and 16,069 employees work in life, non-life,
life/pension and pension branches of insurance sector in 2008. This sector is one of the developing
areas in Turkey with 73 brokers and 13,250 agencies. Insurance agencies are working according to
the Insurance Law and the regulations of the General Directorate of Insurance and Insurance
Supervisory Board both of which organized under Turkish Treasury. These regulations are about
establishment processes, insurance activities, the way of using funds collected from premiums, and
adequacy of capital and liability compensations. Accounting activities are executed according to
these regulations. In addition, Capital Markets Board (CMB) and Turkish Accounting Standards
Board (TASB) describe standards and accounting applications have to obey these standards too.
The name of this standard is Turkish Financial Reporting Standards (TFRS) 4 – Insurance
Contracts that is arranged parallel to International Financial Reporting Standards (IFRS) 4 –
Insurance Contracts. This study aims to describe the characteristics of insurance sector in Turkey
and also to analyze some specific regulations and accounting applications.

Introduction
Insurance industry performs two important functions in economic life; one is micro and the other one is
macro. Insurance companies create benefits in microeconomic sense by undertaking the risks faced by individuals as
well as companies. Moreover, they contribute to the functioning of the financial markets by supplying the premiums
they collected from their customers as funds to the financial system. Supplying the much needed long term funds for
the real sector is critically important for the countries with limited capital accumulation. Insurance activities in
Turkey are carried out according to Insurance Law No. 5684 and the regulations of the General Directorate of
Insurance and Insurance Supervisory Board, both of which operate under the authority of the Undersecretariat of
Treasury. These arrangements cover the areas of establishing insurance business and insurance processing activities
as well as the use of collected funds, capital and liability coverage adequacy issues.
Accounting practices, on the other hand, are conducted under the above mentioned arrangements as well as
standards prepared by Capital Markets Board (CMB) and Turkish Accounting Standards Board (TASB). Turkish
Financial Reporting Standard 4-Insurance Contracts prepared by TASB is the same as the International Financial
Reporting Standard 4- Insurance Contracts prepared by the IASB. Some special arrangements and their accounting
practices are going to be analyzed after providing a profile picture of the fast developing insurance sector in Turkey.

Definition and Importance of the Insurance Sector
Insurance is an organization which brings people, who is facing the same risk that is determined by a
contract, together in order to pay for the expected damages (Pekiner, 1974, 17). Insurance is the act of guaranteeing
that the payments for damages will be paid in case of the risk under contract is realized (Çaldağ, 1979, 9). The
concept of insurance came to life when people who face the same threat of danger come together to pay for the
damages with the conscious decision that it is not possible to completely eliminating physical dangers.
Insurance companies try to eliminate negative consequences of the risk for the individuals with the help of
other individuals who want to avoid the consequences on the basis of an assurance. Trust is the base of insurance

615

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

business. Insurance sector and its companies are important for the functioning of the financial markets. The
insurance companies play an important role in financial markets by directing the funds they collected as premiums.

Insurance Sector in Turkey
Having enjoyed a spectacular growth consistently after the financial crisis in 2001, the insurance industry in
Turkey experienced a slight decline at the last quarter of the 2008 and concluded the year with a growth rate below
inflation as a result of the global financial crisis (Annual Report 2008, 3). There are total of 61 insurance and pension
companies consisting of 36 non-life, 24 life/pension and 1 reinsuring companies in Turkey in 2008 (Annual Report
2008, 25).
There are 13,250 agencies excluding bank insurance, 73 brokers and 901 loss adjusters (natural entity) in
insurance and private pension sector as of December 31 st, 2008 in Turkey. It is estimated that over 50 thousands of
people are employed in the sector including agencies, brokers and loss adjusters with 16,069 employees in insurance
companies (Annual Report 2008, 26).
When the year 2008 is evaluated by the end of year figures, we could see that insurance companies
concluded 52.4 million contracts and 37.5 million policies during the year. It means that the number of contract and
policies increased by 15% in 2008. The total amount of assets of the industry also rose by 19% to 27.9 billion TL
compared to 2007 (Annual Report 2008, 3).
Turkish insurance sector took 36th place within 88 countries with a share of 0.21% in global premium
production. According to the ratio of premium volume to GDP and premium volume per capita, Turkish insurance
market has been ranked 76th and 65th, respectively. Turkey has a rank of 34 over total of 35 European Countries in
premium volume per capita (Annual Report 2008, 22).

Legal Regulatory Authorities in Insurance Sector in Turkey
The insurance companies must operate under the guidelines of TFRS, Insurance Law, and the Turkish
Commerce Law. At the same time, insurance activities take place inside the framework set by Insurance Supervisory
Board and General Directorate of Insurance both of which operate within the Undersecretariat of Treasury.
Regulations by the Undersecretariat of Treasury
The responsibility of regulating and supervising the insurance sector is given to the Undersecretariat of
Treasury with Insurance Law. There are two units operating within the Treasury about the insurance activities in
Turkey. These are the Insurance Supervisory Board and the General Directorate of Insurance .
Insurance Supervisory Board
The Insurance Supervisory Board was established in 1963 with Law No. 7397 to supervise all activities of
insurance companies.
General Directorate of Insurance
Insurance companies must obey the rules by General Directorate of Insurance . This department is
established by the law establishing the Undersecretariat of Treasury which is dated December 20 th, 1994 and
numbered 4059.
Insurance Law
The purpose of the Insurance Law No. 5684 is to develop the insurance sector in general, to protect rights
and benefits of insured entities and to make sure that the sector could work efficiently in a safe and stable
environment. This law also organizes the start up procedures in the sector and sets the main rules and methods of
operations in the industry.

616

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

The Turkish Commerce Law Regulations
The fifth chapter of the Turkish Commerce Law is devoted to the topic of insurance. The necessary
definitions such as insurance contracts and insurance policy are given and types of insurance are explained in this
book.
Turkish Accounting Standards Board (TASB) and TFRS 4 Insurance Contracts Standard
Turkish Accounting Standards Board is a public entity established with law in order to perform duties
defined by the Capital Markets Law and has financial and administrative independency. TASB published
International Accounting/Financial Reporting Standards as the Turkish Accounting/Financial Reporting Standards on
the Official Gazette on several dates and Turkish Accounting/Financial Reporting Standards which are going to
guide the Turkish accounting practices became in full harmony with the International Accounting/Financial
Reporting Standards.
One of these standards is the TFRS-4 Insurance Contracts Standard, which is published on March 25 th, 2006
No. 26119 issue of the Official Gazette for the first time and some changes are officially made on July 15 th, 2007
No. 26583 issue of the Official Gazette. Even though these standards set the general framework, they do not include
detailed explanations for insurance accounting practices.
However, it is a known fact that the International Accounting Standards Board (IASB) is still working on
the issues of ―recording‖ and ―valuation‖ about insurance contract. Various arrangements are made regarding
financial reporting activities of insurance companies on the directive about TFRS-4.
The main objective of TFRS-4 is to determine the principles of financial reporting of the insurance
companies. TFRS-4 includes all activities of insurance companies including reinsurance (Berk, 2005, 25).

Accounting Practices by Insurance Companies
Accounting practices of insurance companies are quite different from companies in other sectors. The nonphysical nature of the insurance business differentiates the insurance company from companies in manufacturing and
in commerce. There are other differences for the insurance company in other areas such as capital structure, resource
allocation, and working style. Even though the insurance companies locate inside the financial services sector, the
structure of assets and liabilities are quite different from other financial companies (AktaĢ, 2005, 124).
The differences of insurance companies show themselves also on insurance accounting. These are (Candar,
2001; Uyanık, 2001, 510; BaĢpınar, 2005, 6);
a) The amount of receivables and payables of insurance companies show uncertainties in many aspects. The main
source of this uncertainty arises from the fact it is not known whether the risk under insurance is realized and how
big the compensation is going to be if it is realized.
b) In case of insurance companies, it is not possible to determine periodic profit or loss with certainty. Because the
price of every service provided is based on certain possibility calculations. These calculations generally include an
average value according to the law of big numbers. When the damage is realized above the expected rate, there will
be a loss for the insurance company. Otherwise, there will be a profit.
c) A significant portion of premiums collected by insurance companies is paid back to the clients as compensation
payments. However, it is not possible to determine the amount, the timing or the identity of the client with certainty.
d) The allowances for uncertainties are allocated from the premiums collected from clients rather than the profit as in
the case of other businesses. The financial tables carry some margin or errors since the amount of these allowances
depend on possibility calculations.
e) The differences between life insurance and general insurance create some accounting problems in this sector. The
above mentioned policies provide coverage for different periods with their different premium structures. The
different laws and accounting practices, such as these different policies can not be provided by the same company,
led to developments of these two branches completely separately.
f) The probability of determining the revenues and expenses with certainty is low since financial flows of the
insurance companies goes beyond a single period. However, it is assumed that the revenues collected and
compensations made during the same calendar year are assumed to belong to the same calculation period. Profit and
loss calculations in case of commercial and industrial companies, on the other hand, generally belong to the same
calculation period.
Moreover since the insurance sector functions on the principle of trust and the governments feel the need for
protecting the rights and benefits of clients, the sector faced very important legal restrictions and regulations in many

617

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

countries. Establishing technical provisions, giving a bigger weight to the liquid assets in total assets, requirement of
establishing funds, extra capital requirements to make sure they have the compensation payment adequacy are some
examples of the regulations faced by the insurance industry.

Technical Provisions
Technical insurance provision is defined as the funds separated by the insurance companies established as
corporations by the Insurance Law to cover the responsibilities of policies not expiring by the last day of the period
and allowed to subtract from the revenues as an expense according to the Corporate Taxation Law (Arslanhan, 1996,
12).
Insurance technical provisions is the amount separated by the insurance companies because of
responsibilities they carry due risks covered by the policies they prepared. The most important function of these
provisions is guaranteeing the compensation payment must be made by the insurance company when the insured risk
is occurred. Moreover, the provisions show the degree of risk the company faces for the financial information users.
Insurance Law lists the technical insurance provisions as:
- unearned premium provisions
- unexpired provisions
- equalization provisions
- mathematical provisions
- outstanding claims provisions
- promotion and discount provisions
Technical provisions are located on the balance sheet as a liability. In order to understand whether the
technical provisions adequately cover the risk they face, liability adequacy test is performed. The liability adequacy
test for life and non-life insurance companies could be summarized as the following table (Sarıaslan, 2008, 20-21).
A. Future Cash Flows
Expected losses
Related expenses of losses
Related management expenses
B. Insurance Liabilities
Unearned premium provisions
Premium production expense
Related non-physical assets

(+)
(+)
(+)
(+)
(-)
(-)

Table 1. Non Life Insurance Company
A. Future Cash Flows
Expected losses
Related
expenses
of
(+)
Related management expenses
Embedded
options
and
(+)
B. Insurance Liabilities
Actuarial mathematical provisions
(+)
Unearned premium provisions
Premium production expense
Related non-physical assets
Table 2. Life Insurance Company

618

(+)
losses
(+)
warranty

(+)
(-)
(-)

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

TFRS 4 finds such a test outlined above as sufficient for the insurance companies (Sarıaslan, 2008, 21). Liability
adequacy test in Turkey is formulated by the regulations of the Turkish Treasury as the following:
Years
I) Allocated Provisions
A. Accrued
B. Not reported
C. Expense share
II) Realized
D. Accrued
E. Not reported
F. Expense share

2005

2006

2007

2008

2009

Total

2010

150
40
10

130
30
8

120
20
12

200
50
15

220
70
20

820
210
65

210

120
50
15

140
20
13

130
25
10

190
45
10

310
80
20

890
220
68

III) Adequacy ratio
Accrued (A/D) * 100
Not reported (B/E) * 100
Expense share (C/F) * 100

92,1
95,4
95,5

IV) Difference in adequacy Ratio
(The legal adequacy ratio is 95%)
1.Accrued

95-92,1
=
2,9
-

2.Not reported
3.Expense share
*

(210+6,09*)
=
216,09
-

210 x %2,9

Standards allow discounting the general insurance provisions but this practice is not required at this stage.
At the same time, standards do not ban the use of rate of return of insurance assets as the discount rate. Up until the
completion of second stage of establishing insurance standards by IASB, premium production expenses could be
deferred (AktaĢ, 2005, 124-125).

Conclusion
Insurance industry performs two important functions, one micro and the other one is macro, in economic
life. The insurance sector in Turkey operating in the branches of non-life, life, life/pension, and pension with 61
companies and 16,069 employees by 2008 is fast growing sector. Insurance activities in Turkey are carried out
according to Insurance Law and the regulations of the General Directorate of Insurance Business and Insurance
Supervisory Board, both of which operate under the authority of the Undersecretariat of Treasury.
Turkish Financial Reporting Standard 4-Insurance Contracts prepared by TASB is the same as the
International Financial Reporting Standard 4- Insurance Contracts by the IASB. Regulations prepared by the legal
authorities in Turkey satisfy the minimum requirements set by the TFRS-4. There are going to be serious changes in
insurance accounting practices in Turkey when the second stage of Insurance Contracts Standards is completed.

References
AktaĢ, R. (2005). Sigorta ĠĢletmelerinde Gerçeğe Uygun Değer YaklaĢımının Kullanılması ve Değerlendirilmesi, Gazi University
Unpublished Phd Thesis, Ankara.
Annual Report about Insurance and Private Pension Activities in Turkey, 2008
Arslanhan, N. (1996). Sigorta Teknik Ġhtiyatları, Vergi Sorunları Dergisi, Eylül.
BaĢpınar, A. (2005) Finansal Analiz Tekniklerinin Sigorta ġirketi Mali Tablolarına Uygulanması, Maliye Dergisi, Sayı:149,
Mayıs-Aralık.

619

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Berk, N. (2005). AB Sigortacılığı'nda Solvency II Düzenlemeleri ve Türk Sigortacılığı'nın Harmonizasyonu, Türkiye Sigorta ve
Reasürans ġirketler Birliği Yayını, Bilim ve DanıĢma Kurulu Onaylı Eserler.
Candar, S. (2001). Sigorta Muhasebesi ve Mali Tablolarının Diğer Sektörlerden FarklılaĢması ve Analizi, Ankara.
Çaldağ, Y. (1979). Sigorta ĠĢletmeleri ve Muhasebesinin Ġncelenmesi, AĠTĠA Yayınları, Ankara.
International Financial Reporting Standard 4- Insurance Contract
Pekiner, K. (1974). Sigorta ĠĢletmeciliği Prensipleri-Hesap Bünyesi, Ġstanbul.
Sarıaslan, M. (2008). Devam Eden Riskler KarĢılığının TFRS 4‘deki Düzenlemelerle KarĢılaĢtırılması, Sigorta AraĢtırmaları
Dergisi, Sayı:4.
Turkish Financial Reporting Standard 4- Insurance Contract
Uyanık, A. (2001). Denetim, Muhasebe ve Vergilendirme -Sigorta Sektörü Uygulamalı-, Beta Basım Yayım Dağıtım, Ġstanbul.

620

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AÇIKALIN, Süleyman</text>
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                    <text>2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Regulations and Accounting Applications in Insurance Sector of Turkey
Rafet AKTAġ
Dumlupinar University, Turkey
rafetaktas@gmail.com
Süleyman AÇIKALIN
acikalinsuleyman@hotmail.com

Abstract: Insurance is a contract with a premium payment based on the principle of paying claims
when the risk, that is the reason of insurance for an interest, is realized. Trust is the base of
insurance business. This sector especially in developing countries has a potential to raise new
funds for economic development. In Turkey, 61 firms and 16,069 employees work in life, non-life,
life/pension and pension branches of insurance sector in 2008. This sector is one of the developing
areas in Turkey with 73 brokers and 13,250 agencies. Insurance agencies are working according to
the Insurance Law and the regulations of the General Directorate of Insurance and Insurance
Supervisory Board both of which organized under Turkish Treasury. These regulations are about
establishment processes, insurance activities, the way of using funds collected from premiums, and
adequacy of capital and liability compensations. Accounting activities are executed according to
these regulations. In addition, Capital Markets Board (CMB) and Turkish Accounting Standards
Board (TASB) describe standards and accounting applications have to obey these standards too.
The name of this standard is Turkish Financial Reporting Standards (TFRS) 4 – Insurance
Contracts that is arranged parallel to International Financial Reporting Standards (IFRS) 4 –
Insurance Contracts. This study aims to describe the characteristics of insurance sector in Turkey
and also to analyze some specific regulations and accounting applications.

Introduction
Insurance industry performs two important functions in economic life; one is micro and the other one is
macro. Insurance companies create benefits in microeconomic sense by undertaking the risks faced by individuals as
well as companies. Moreover, they contribute to the functioning of the financial markets by supplying the premiums
they collected from their customers as funds to the financial system. Supplying the much needed long term funds for
the real sector is critically important for the countries with limited capital accumulation. Insurance activities in
Turkey are carried out according to Insurance Law No. 5684 and the regulations of the General Directorate of
Insurance and Insurance Supervisory Board, both of which operate under the authority of the Undersecretariat of
Treasury. These arrangements cover the areas of establishing insurance business and insurance processing activities
as well as the use of collected funds, capital and liability coverage adequacy issues.
Accounting practices, on the other hand, are conducted under the above mentioned arrangements as well as
standards prepared by Capital Markets Board (CMB) and Turkish Accounting Standards Board (TASB). Turkish
Financial Reporting Standard 4-Insurance Contracts prepared by TASB is the same as the International Financial
Reporting Standard 4- Insurance Contracts prepared by the IASB. Some special arrangements and their accounting
practices are going to be analyzed after providing a profile picture of the fast developing insurance sector in Turkey.

Definition and Importance of the Insurance Sector
Insurance is an organization which brings people, who is facing the same risk that is determined by a
contract, together in order to pay for the expected damages (Pekiner, 1974, 17). Insurance is the act of guaranteeing
that the payments for damages will be paid in case of the risk under contract is realized (Çaldağ, 1979, 9). The
concept of insurance came to life when people who face the same threat of danger come together to pay for the
damages with the conscious decision that it is not possible to completely eliminating physical dangers.
Insurance companies try to eliminate negative consequences of the risk for the individuals with the help of
other individuals who want to avoid the consequences on the basis of an assurance. Trust is the base of insurance

615

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

business. Insurance sector and its companies are important for the functioning of the financial markets. The
insurance companies play an important role in financial markets by directing the funds they collected as premiums.

Insurance Sector in Turkey
Having enjoyed a spectacular growth consistently after the financial crisis in 2001, the insurance industry in
Turkey experienced a slight decline at the last quarter of the 2008 and concluded the year with a growth rate below
inflation as a result of the global financial crisis (Annual Report 2008, 3). There are total of 61 insurance and pension
companies consisting of 36 non-life, 24 life/pension and 1 reinsuring companies in Turkey in 2008 (Annual Report
2008, 25).
There are 13,250 agencies excluding bank insurance, 73 brokers and 901 loss adjusters (natural entity) in
insurance and private pension sector as of December 31 st, 2008 in Turkey. It is estimated that over 50 thousands of
people are employed in the sector including agencies, brokers and loss adjusters with 16,069 employees in insurance
companies (Annual Report 2008, 26).
When the year 2008 is evaluated by the end of year figures, we could see that insurance companies
concluded 52.4 million contracts and 37.5 million policies during the year. It means that the number of contract and
policies increased by 15% in 2008. The total amount of assets of the industry also rose by 19% to 27.9 billion TL
compared to 2007 (Annual Report 2008, 3).
Turkish insurance sector took 36th place within 88 countries with a share of 0.21% in global premium
production. According to the ratio of premium volume to GDP and premium volume per capita, Turkish insurance
market has been ranked 76th and 65th, respectively. Turkey has a rank of 34 over total of 35 European Countries in
premium volume per capita (Annual Report 2008, 22).

Legal Regulatory Authorities in Insurance Sector in Turkey
The insurance companies must operate under the guidelines of TFRS, Insurance Law, and the Turkish
Commerce Law. At the same time, insurance activities take place inside the framework set by Insurance Supervisory
Board and General Directorate of Insurance both of which operate within the Undersecretariat of Treasury.
Regulations by the Undersecretariat of Treasury
The responsibility of regulating and supervising the insurance sector is given to the Undersecretariat of
Treasury with Insurance Law. There are two units operating within the Treasury about the insurance activities in
Turkey. These are the Insurance Supervisory Board and the General Directorate of Insurance .
Insurance Supervisory Board
The Insurance Supervisory Board was established in 1963 with Law No. 7397 to supervise all activities of
insurance companies.
General Directorate of Insurance
Insurance companies must obey the rules by General Directorate of Insurance . This department is
established by the law establishing the Undersecretariat of Treasury which is dated December 20 th, 1994 and
numbered 4059.
Insurance Law
The purpose of the Insurance Law No. 5684 is to develop the insurance sector in general, to protect rights
and benefits of insured entities and to make sure that the sector could work efficiently in a safe and stable
environment. This law also organizes the start up procedures in the sector and sets the main rules and methods of
operations in the industry.

616

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

The Turkish Commerce Law Regulations
The fifth chapter of the Turkish Commerce Law is devoted to the topic of insurance. The necessary
definitions such as insurance contracts and insurance policy are given and types of insurance are explained in this
book.
Turkish Accounting Standards Board (TASB) and TFRS 4 Insurance Contracts Standard
Turkish Accounting Standards Board is a public entity established with law in order to perform duties
defined by the Capital Markets Law and has financial and administrative independency. TASB published
International Accounting/Financial Reporting Standards as the Turkish Accounting/Financial Reporting Standards on
the Official Gazette on several dates and Turkish Accounting/Financial Reporting Standards which are going to
guide the Turkish accounting practices became in full harmony with the International Accounting/Financial
Reporting Standards.
One of these standards is the TFRS-4 Insurance Contracts Standard, which is published on March 25 th, 2006
No. 26119 issue of the Official Gazette for the first time and some changes are officially made on July 15 th, 2007
No. 26583 issue of the Official Gazette. Even though these standards set the general framework, they do not include
detailed explanations for insurance accounting practices.
However, it is a known fact that the International Accounting Standards Board (IASB) is still working on
the issues of ―recording‖ and ―valuation‖ about insurance contract. Various arrangements are made regarding
financial reporting activities of insurance companies on the directive about TFRS-4.
The main objective of TFRS-4 is to determine the principles of financial reporting of the insurance
companies. TFRS-4 includes all activities of insurance companies including reinsurance (Berk, 2005, 25).

Accounting Practices by Insurance Companies
Accounting practices of insurance companies are quite different from companies in other sectors. The nonphysical nature of the insurance business differentiates the insurance company from companies in manufacturing and
in commerce. There are other differences for the insurance company in other areas such as capital structure, resource
allocation, and working style. Even though the insurance companies locate inside the financial services sector, the
structure of assets and liabilities are quite different from other financial companies (AktaĢ, 2005, 124).
The differences of insurance companies show themselves also on insurance accounting. These are (Candar,
2001; Uyanık, 2001, 510; BaĢpınar, 2005, 6);
a) The amount of receivables and payables of insurance companies show uncertainties in many aspects. The main
source of this uncertainty arises from the fact it is not known whether the risk under insurance is realized and how
big the compensation is going to be if it is realized.
b) In case of insurance companies, it is not possible to determine periodic profit or loss with certainty. Because the
price of every service provided is based on certain possibility calculations. These calculations generally include an
average value according to the law of big numbers. When the damage is realized above the expected rate, there will
be a loss for the insurance company. Otherwise, there will be a profit.
c) A significant portion of premiums collected by insurance companies is paid back to the clients as compensation
payments. However, it is not possible to determine the amount, the timing or the identity of the client with certainty.
d) The allowances for uncertainties are allocated from the premiums collected from clients rather than the profit as in
the case of other businesses. The financial tables carry some margin or errors since the amount of these allowances
depend on possibility calculations.
e) The differences between life insurance and general insurance create some accounting problems in this sector. The
above mentioned policies provide coverage for different periods with their different premium structures. The
different laws and accounting practices, such as these different policies can not be provided by the same company,
led to developments of these two branches completely separately.
f) The probability of determining the revenues and expenses with certainty is low since financial flows of the
insurance companies goes beyond a single period. However, it is assumed that the revenues collected and
compensations made during the same calendar year are assumed to belong to the same calculation period. Profit and
loss calculations in case of commercial and industrial companies, on the other hand, generally belong to the same
calculation period.
Moreover since the insurance sector functions on the principle of trust and the governments feel the need for
protecting the rights and benefits of clients, the sector faced very important legal restrictions and regulations in many

617

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

countries. Establishing technical provisions, giving a bigger weight to the liquid assets in total assets, requirement of
establishing funds, extra capital requirements to make sure they have the compensation payment adequacy are some
examples of the regulations faced by the insurance industry.

Technical Provisions
Technical insurance provision is defined as the funds separated by the insurance companies established as
corporations by the Insurance Law to cover the responsibilities of policies not expiring by the last day of the period
and allowed to subtract from the revenues as an expense according to the Corporate Taxation Law (Arslanhan, 1996,
12).
Insurance technical provisions is the amount separated by the insurance companies because of
responsibilities they carry due risks covered by the policies they prepared. The most important function of these
provisions is guaranteeing the compensation payment must be made by the insurance company when the insured risk
is occurred. Moreover, the provisions show the degree of risk the company faces for the financial information users.
Insurance Law lists the technical insurance provisions as:
- unearned premium provisions
- unexpired provisions
- equalization provisions
- mathematical provisions
- outstanding claims provisions
- promotion and discount provisions
Technical provisions are located on the balance sheet as a liability. In order to understand whether the
technical provisions adequately cover the risk they face, liability adequacy test is performed. The liability adequacy
test for life and non-life insurance companies could be summarized as the following table (Sarıaslan, 2008, 20-21).
A. Future Cash Flows
Expected losses
Related expenses of losses
Related management expenses
B. Insurance Liabilities
Unearned premium provisions
Premium production expense
Related non-physical assets

(+)
(+)
(+)
(+)
(-)
(-)

Table 1. Non Life Insurance Company
A. Future Cash Flows
Expected losses
Related
expenses
of
(+)
Related management expenses
Embedded
options
and
(+)
B. Insurance Liabilities
Actuarial mathematical provisions
(+)
Unearned premium provisions
Premium production expense
Related non-physical assets
Table 2. Life Insurance Company

618

(+)
losses
(+)
warranty

(+)
(-)
(-)

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

TFRS 4 finds such a test outlined above as sufficient for the insurance companies (Sarıaslan, 2008, 21). Liability
adequacy test in Turkey is formulated by the regulations of the Turkish Treasury as the following:
Years
I) Allocated Provisions
A. Accrued
B. Not reported
C. Expense share
II) Realized
D. Accrued
E. Not reported
F. Expense share

2005

2006

2007

2008

2009

Total

2010

150
40
10

130
30
8

120
20
12

200
50
15

220
70
20

820
210
65

210

120
50
15

140
20
13

130
25
10

190
45
10

310
80
20

890
220
68

III) Adequacy ratio
Accrued (A/D) * 100
Not reported (B/E) * 100
Expense share (C/F) * 100

92,1
95,4
95,5

IV) Difference in adequacy Ratio
(The legal adequacy ratio is 95%)
1.Accrued

95-92,1
=
2,9
-

2.Not reported
3.Expense share
*

(210+6,09*)
=
216,09
-

210 x %2,9

Standards allow discounting the general insurance provisions but this practice is not required at this stage.
At the same time, standards do not ban the use of rate of return of insurance assets as the discount rate. Up until the
completion of second stage of establishing insurance standards by IASB, premium production expenses could be
deferred (AktaĢ, 2005, 124-125).

Conclusion
Insurance industry performs two important functions, one micro and the other one is macro, in economic
life. The insurance sector in Turkey operating in the branches of non-life, life, life/pension, and pension with 61
companies and 16,069 employees by 2008 is fast growing sector. Insurance activities in Turkey are carried out
according to Insurance Law and the regulations of the General Directorate of Insurance Business and Insurance
Supervisory Board, both of which operate under the authority of the Undersecretariat of Treasury.
Turkish Financial Reporting Standard 4-Insurance Contracts prepared by TASB is the same as the
International Financial Reporting Standard 4- Insurance Contracts by the IASB. Regulations prepared by the legal
authorities in Turkey satisfy the minimum requirements set by the TFRS-4. There are going to be serious changes in
insurance accounting practices in Turkey when the second stage of Insurance Contracts Standards is completed.

References
AktaĢ, R. (2005). Sigorta ĠĢletmelerinde Gerçeğe Uygun Değer YaklaĢımının Kullanılması ve Değerlendirilmesi, Gazi University
Unpublished Phd Thesis, Ankara.
Annual Report about Insurance and Private Pension Activities in Turkey, 2008
Arslanhan, N. (1996). Sigorta Teknik Ġhtiyatları, Vergi Sorunları Dergisi, Eylül.
BaĢpınar, A. (2005) Finansal Analiz Tekniklerinin Sigorta ġirketi Mali Tablolarına Uygulanması, Maliye Dergisi, Sayı:149,
Mayıs-Aralık.

619

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Berk, N. (2005). AB Sigortacılığı'nda Solvency II Düzenlemeleri ve Türk Sigortacılığı'nın Harmonizasyonu, Türkiye Sigorta ve
Reasürans ġirketler Birliği Yayını, Bilim ve DanıĢma Kurulu Onaylı Eserler.
Candar, S. (2001). Sigorta Muhasebesi ve Mali Tablolarının Diğer Sektörlerden FarklılaĢması ve Analizi, Ankara.
Çaldağ, Y. (1979). Sigorta ĠĢletmeleri ve Muhasebesinin Ġncelenmesi, AĠTĠA Yayınları, Ankara.
International Financial Reporting Standard 4- Insurance Contract
Pekiner, K. (1974). Sigorta ĠĢletmeciliği Prensipleri-Hesap Bünyesi, Ġstanbul.
Sarıaslan, M. (2008). Devam Eden Riskler KarĢılığının TFRS 4‘deki Düzenlemelerle KarĢılaĢtırılması, Sigorta AraĢtırmaları
Dergisi, Sayı:4.
Turkish Financial Reporting Standard 4- Insurance Contract
Uyanık, A. (2001). Denetim, Muhasebe ve Vergilendirme -Sigorta Sektörü Uygulamalı-, Beta Basım Yayım Dağıtım, Ġstanbul.

620

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                <text>Insurance is a contract with a premium payment based on the principle of paying claims  when the risk, that is the reason of insurance for an interest, is realized. Trust is the base of  insurance business. This sector especially in developing countries has a potential to raise new  funds for economic development. In Turkey, 61 firms and 16,069 employees work in life, non-life,  life/pension and pension branches of insurance sector in 2008. This sector is one of the developing  areas in Turkey with 73 brokers and 13,250 agencies. Insurance agencies are working according to  the Insurance Law and the regulations of the General Directorate of Insurance and Insurance  Supervisory Board both of which organized under Turkish Treasury. These regulations are about  establishment processes, insurance activities, the way of using funds collected from premiums, and  adequacy of capital and liability compensations. Accounting activities are executed according to  these regulations. In addition, Capital Markets Board (CMB) and Turkish Accounting Standards  Board (TASB) describe standards and accounting applications have to obey these standards too.  The name of this standard is Turkish Financial Reporting Standards (TFRS) 4 – Insurance  Contracts that is arranged parallel to International Financial Reporting Standards (IFRS) 4 –  Insurance Contracts. This study aims to describe the characteristics of insurance sector in Turkey  and also to analyze some specific regulations and accounting applications.</text>
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