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

An Inter-Rater Perspective for the Researches on Assessing Writing
Turgay HAN
Kafkas University, Faculty of Science and Letters,
Department of English Language and Literature, Kars, Turkey
turgayhan@yahoo.com.tr
Hüseyin EFE
Atatürk University, Faculty of Letters,
Department of English Language and Literature, Erzurum, Turkey
hefe@atauni.edu.tr
Erdinç Parlak
Atatürk University, Kazım Karabekir Faculty of Education,
Department of English Language Education, Erzurum, Turkey
erdincparlak@hotmail.com

Abstract:In assessing EFL students’ writings consistently, there are various factors that
must be taken into consideration while rating. Especially those who want to make
quantitative researches using raters or who aim to give suitable feedback to written
productions should be responsible for fulfilling the requirements in marking and scoring
process. In this context, this paper looks insight for some issues related to the raters, such
as inter-rater reliability, analytic or holistic examinations, rating criteria, and others. This
study includes 8 native raters and 8 non-native raters, each of whom rated an ESL essay
both holistically and analytically. Every participant rater’s background of scoring ESL
writings was similar. The result showed that there was no significant difference between
raters, that is, participants’ grading of the essay is irrespective of their being native
speakers. At the end of the study, some important implications for essay rating practices
and both the researchers and language teacher were emphasized.
Key Words: Rater, Reliability, Assessing Writing, EFL

Introduction
Many researches based on assessing writing and error treatment incline some variables with regard to the
scoring each ESL writing accurately. In the process of deciding the effects of any types of feedback given to the
EFL students’ writings, there are some sorts of musts that researchers fulfil in the course of doing their statistical
analyses related to the data obtained by their scorings methods. Even though several factors influence scoring
and the process of raters’ decision makings, researchers in the field of ESL essay rating delve into varying issues
such as task requirement, rater characteristics and essay characteristics (Barkaoui, 2010; p.54). Assessing L2
writing accurately is very important for the validity of the inferences. Therefore, essays judged by more than one
examiner will be closer to the fair score than judgement made by only one rater (Hamp-Lyons, 1990; p.79).
Writing assessment process involves a multi-dimensional evaluation; for this reason, clarity, coherence and
grammatical quality are some of the core points to be assessed for a writing paper. In this context, inter-rater
reliability, one of the components of writing assessment process, is considerably the critical issue in scoring
EFL/ESL writings as there are a few interfaces that raters are prone to experience such as the idiosyncratic,
rating methods, and criteria during assessment. Since it is a subjective phenomenon, the decisions made through
the scores given have some potentialities that effect overall research. In this research, to assure objectivity in
scoring, two types of raters were chosen. As Stemler (2004) emphasizes, “Raters are often used when student
products or performances cannot be scored objectively as right or wrong but require a rating degree. The use of
raters results in the subjectivity that comes hand in hand with an interpretation of the product or performances
(cited in Bresciani, Oakleaf, et al, 2009; p.3)”.

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Potentialities of Writing Assessment
Hyland (2003) states that there are four basic elements in the design of writing assessment: Rubric (the
instructions), prompt (the task), expected response (what the teacher intends students to do with the task), posttask evaluation (assessing the effectiveness of the writing task) (cited in Coombe, Folse, &amp; Hubley, 2007; p.71).
Sudweeks et al (2005) explain the factors involved in the rating a particular writing paper as external and
internal ones. Sudweeks et al advocate that as students vary in their writing abilities it is difficult to expect them
to receive the same rating or they cannot be measured the same, and the external factors can be counted for
receiving rating are: (a) the nature of the particular writing prompt or task posed, (b) the raters who judge
students’ essays (c) situation-specific factors (d) students’ background and interests related to the topic that will
be developed (e) interactions among these varying sources (p.240).
Raters are the fundamental variables in the assessing process. According to Weigle (2002) there are two foci
points in assessment: a consideration of what attributes of the compositions raters focus on and the effects of
background rater characteristics and of the process of reading compositions and ultimately on the scores that
raters use (p.70). Researchers in recent years have looked for the effects attributed to the raters on ratings.
Sweedler-Brown (1985) realized that rater trainers were more unforgiving in their scorings when compared to
the ratings of novice raters (cited in Weigle, 2002; p.71).
There are also some methods developed for analyzing writings accurately. For example, Generalizability
Theory and Many-Facet Rasch Model are used in some researches to (a) estimate the sources causing rating
errors, (b) to achieve reliability estimates, and (c) to make recommendations for improving rating process
(Sudweeks, Reeve, &amp; Bradshaw, 2005; p.239).
In this context, scoring involves defining the rating scale and ensuring that raters use the scale appropriately
and consistently as two central considerations (Weigle, S.C. 2002, p.108).
Stemler (2004) explains that inter-rater reliability requires consensus estimates, consistency estimates and
measurement estimates approaches to assure the accuracy and consistency in scoring. Consensus estimates come
into meaning that the degree to which markers give the same scores. Consistency estimate is a sign of the extent
of the similarities of the high and low scores among the markers. Additionally, measurement estimates show the
degree to which scores can be attributed to common scoring rather than error components (cited in Brown,
Glasswell, &amp; Hardland, 2004; p.106).
Moreover, consistency in scoring requires two sub-processes to eliminate the sources causing unreliable
scoring. Weigle(2002) indicates two main types of inconsistencies: “[…] (1) Inconsistencies in the ratings of a
single scorer across different scripts of similar qualities or the same script on different occasions, and (2)
inconsistencies between different scores…” (pp.128-129).
The Aspects in Rating
Two main aspects of reliability involve raters’ markings which are the indications of consistencies of scorings.
Inter-Rater Reliability and Intra-Rater Reliability
Subjective marking of writing requires a measurement of reliability within a rater’s marking and among
raters. The term ‘inter-rater reliability’ refers to the self consistency and the extent of similarity of ratings of
different markers, that is, scoring of a single writing of a rater has not significant difference when compared to
the one of other independent raters (Weigle, 2002), whereas intra-rater reliability contrasts with inter-rater
reliability. Bachman (1995) advocates that “Ratings given by different raters can also vary as a function of
inconsistencies in the criteria used to rate and in the way in which these criteria are applied…” (p.180). Bachman
(1995), further, explains that when several essays are given to some independent raters for their ratings, the
results probably will not be the same. The variability of the criteria of the raters can be counted as the
outstanding source for these inconsistencies as some raters may look for the quality of content and some other
may look for the organization (p.180).
On the other hand, “[…]intra-rater reliability refers to the tendency of a rater to give the same score to the
same script on different occasions, while inter-rater reliability refers to the tendency of different raters to give the
same scores to the same script…” (Weigle, 2002; p.135).
Rationales for Holistic Scoring and Analytic Scoring
Making inferences from the scores given to writings is variable as it depends on the method of scoring. In
this context, “[...]Traditionally a student’s writing performance was judged in comparison with the performance

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of others, but this norm-referenced method has largely given way to criterion-referenced practices where the
quality of each essay is judged in its own right against some external criteria, such as coherence, grammatical
accuracy, contextual appropriacy, and so on...” (Hyland, 2008; p.226).
Moreover, scales that will be used for rating should cover objective characteristics as possible. Therefore,
two questions can be raised to inquire a system for scoring a script: whether to give a single score to each script,
or score each script depending on several different features. Three main approaches consisting of primary trait
scales, holistic scales, and analytic scales are available in the composition assessment literature. Holistic
scoring, or general impression marking, means that giving single scores to the writing by judging an overall
impression. On the other hand, analytic scoring depends on several aspects of writing rather than a single score
(Weigle, 2002; pp. 64-115).
There are, of course, some probable limitations for both types of scoring. In holistic scoring, using the scale
for analytic scoring bears some problems as it includes several sub-categories for rating. Then, again, the
practicality of analytic scoring can be judged in terms of time consuming and difficulty of applying the criteria to
each script (East, 2009; p.91). Furthermore, holistic scoring can be used to attract the attention of the readers to
the strength of the scripts and not to the lack of it and thus, writers can be reinforced and awarded (White, 1984,
1985). Nevertheless, “analytic scoring schemes thus provide more detailed information about a test taker’s
performance in different aspect of writing and are for this reason preferred over holistic schemes by many
specialist” (Weigle, 2002; pp.114-115).
There are some researches on the reliability of different scale types. In this context, Weir (1990) explains
that analytic scoring is more reliable than holistic scoring (cited in Weigle, 2002, p.73). Also, Bauer (1981)
found that even though holistic scoring is more cost effective, analytic scoring is more reliable than holistic
scoring (cited in Weigle, 2002; p.73).
Additionally, in the scoring process, validity is another decisive factor referring to the writing course goals
and outcomes. In order to ensure that writings are scored objectively and to obtain high inter-rater reliability,
there are some internal and external factors in the setting for marking errors in compositions of subjects under
questions. Therefore, as defined in the Standards for Education and Psychological Testing, “Validity… is a
unitary concept. Although evidence may be accumulated in many ways, validity always refers to the degree to
which that evidence supports the interferences that are made from the scores. The interferences regarding
specific uses of a test are validated, not the test itself” (American Psychological Association, 1985, p.9). It must
be noted that “…any type of assessment should reflect the course goals…” (Coombe, Folse, Hubley, 2007, p.70).

Background
In this study, scoring reliably the learners’ scripts by the researchers gains the importance. Participants of
the present study are 8 experienced and non-native English language teachers and 8 native English language
teachers holding at least MA degree in language teaching.
A writing paper was randomly selected from the administered writing exams given to the first year students
studying English Language and Literature during the academic year 2010, and the paper was assessed by those
16 language teachers through scoring at two levels: holistic and analytic. Scoring processes of the paper were
done according to a predetermined rubric. The scores of the participants got from holistic scale and analytic scale
were statistically analyzed. Two research questions are addressed:
1. Is there any difference between the holistic ratings and analytic ratings of the participants in terms of
inter-rater reliability?
2. To what extent do the mean of the scores of those 8 non-native English language teachers and 8 native
English language teachers deviate?

Methodology
In this study, the raters used a “Direct Measures of Writing Assessment” approach while scoring the papers.
In the direct approach, in contrast to indirect approach, students’ success in communicating through the written
mode of texts is taken into consideration. This type of assessment process includes the quality of content,
appropriate vocabulary, grammar and syntax (Coombe et al, p.71).
Scoring Holistic Rubric
The intermediate level ESL/EFL script was rated according to a pre-determined rubric for holistic scoring
which includes 5 types of categories and in which general writing ability can be judged (see figure 1).Using such

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

a rubric, of course, has some advantages besides having disadvantages. Hyland (2003; p.227) compares and
contrasts the gain and loss of Holistic scoring:
Table 3.1. Advantages and Disadvantages of Holistic Scoring
Advantages
Disadvantages
Global impression no a single ability
Provides no diagnostic information
Emphasis on achievement not deficiencies
Difficult to interpret composite score
Weight can be assigned to certain criteria
Smooths out different abilities in subskills
Encourages rater discussion and agreement
Raters may overlook subskills
Penalizes attempts to use challenging forms
Longer essays may get higher scores
One source reduces reliability
May confuse writing ability with language proficiency
The participants of the study, both 8 native raters and the other 8 non-native raters, scored the intermediate
level script according to the holistic scale (see figure 1). The requirements of the settings for the raters, rater
training, and others were supplied in the process of reading.
Scoring Analytic Rubric
The paper under question was also rated by the participant raters through using a multiple-trait scoring
rubric (see figure 2). This type of rubric is considered to be an ideal compromise on account of requiring raters to
provide separate scores for different writing features. Furthermore, it is like a multifaceted scoring and in
particular contexts and purposes, such rubrics can address the traits that do not occur in more analytic score
(Hyland, 2003, p.230).
Hyland (2003, p.230) explains the advantages and disadvantages of analytic scoring in the below table:
Table 3.2. Advantages and Disadvantages of Analytic Scoring
Advantages
Encourages raters to address the same features
Allows more diagnostic reporting
Assists reliability as candidates gets several scores
Detailed criteria allow easier rater training
Prevents conflation of categories into one
Allows teachers to prioritize specific aspects

Disadvantages
May divert attention from overall essay effect
Rating one scale may influence others
Very time consuming compared with holistic method
Writing is more than simply the sum of its parts
Favors essays where scalable into easily extracted
Descriptors may overlap or ambiguous

Obtaining High Inter-rater Reliability
In this study, to keep raters reliable in their scoring marks there are some requirements that should be
applied in the setting. Therefore, the following practice was taken into consideration while preparing the raters
for the large-scale assessment of the single paper given to each of them.
• White (1984) puts forward some practice to maintain high reliability in large-scale assessment:
• At least two independent raters must score each script, and if there is any discrepancy a third rater’s
score may be taken into consideration.
• Scoring should be done in a controlled reading, that is to say, a group of readers meets together to grade
scripts at the same place and time. There are two advantages of doing so: (a) the circumstances under
which scripts are read are controlled. Therefore there will be a low variance as unnecessary sources
causing erroneous scoring will be eliminated, and (b) a positive social environment which helps to set
the rating standards is formed.
• Checks on the reading in progress by reading leaders (also called Table Leaders) help to ensure that
every reader participated in the process is maintaining the agreed-upon standards for grading.
Evaluation and record keeping are essential for the ongoing assessment program. So unreliable raters may
be eliminated (cited in Weigle, 2002; p129).

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Results
The distributions of two groups of raters’ holistic and analytic marks given to a single paper were
shown in the below tables. The scores were analyzed by the statistical software SPSS 16.00 v.

Native
Speakers’
Markings

Table 4.1. The Comparison of Native Speakers’ Holistic and Analytic Scores
Participants
1
2
3
4
5
6
7
8

Holistic
Marks
Analytic
Marks

13

12

13

13

12

13

13

12

16

13

14

16

13

14

16

14

Table 4.1. shows the marks given by 8 native English teachers. It can be easily realized that the marks given
by analytic scoring is regularly a small amount higher than holistic scoring.

NonNative
Speakers’
Markings
Holistic
Marks
Analytic
Marks

Table 4.2. The Comparison of Non-Native Speakers’ Holistic and Analytic Scores
Participants
1
2
3
4
5
6
7
8

15

11

11

16

13

15

11

11

12

13

14

16

12

12

13

14

In table 4.2., the marks given by 8 non-native speaker teachers of English depending on analytic and holistic
scales were slightly different from those of native ones. It can be realized easily that the marks given by analytic
scoring were to some extent higher than holistic scoring (the mean of holistic marks is 12.8750; the mean of
analytic marks is 13.2500).
The distribution of the marks given by native speakers (NS) and non-native speakers (NNS) can be seen on
the table 4.3 and table 4.4.
B

Table 4.3. The Marks Given by the Native Speakers
Analytic Marks
Holistic
Scores

Content

Organization

Cohesion

Vocabulary

Grammar

Punctuation

Spelling

Total Score

Participant
1
2
3
4
5
6
7
8

13
12
13
13
12
13
13
12

2
2
2
2
2
2
2
2

2
2
2
2
2
2
2
2

2
2
1
2
2
1
2
2

3
2
3
3
2
3
3
2

2
2
2
2
2
2
2
2

2
1
2
2
1
2
2
2

3
2
2
3
2
2
3
2

16
13
14
16
13
14
16
14

Table 4.4. The Marks Given by the Non-Native Speakers

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B
Analytic Marks
Holistic
Scores

Content

Organization

Cohesion

Vocabulary

Grammar

Punctuation

Spelling

Total Score

Participants
1
2
3
4
5
6
7
8

15
11
11
16
13
15
11
11

1
1
2
3
2
1
1
2

2
2
2
3
1
2
2
2

1
2
2
2
3
1
2
2

2
2
2
2
1
2
2
2

2
2
2
2
2
2
2
2

2
2
2
2
1
2
2
2

2
2
2
2
2
2
2
2

12
13
14
16
12
12
13
14

The mean of holistic marks scored by NS raters was a little lower than analytic ones. Yet, it can be said that
there was no significant difference between two types of scores (see table 4.5).
Table 4.5. Paired Sample Statistics: Native Speakers’ (NS) Scoring Holistic and Analytic Marks
N
Minimum
Maximum
Range
Mean Std.
Std.
NSs’
deviation
Error
Scoring
Marks
Mean
8
12,00
13,00
1,00
12,6250
,51755
,18298
Holistic
8
13,00
16,00
3,00
14,5000
1,30931
,46291
Analytic
Table 4.6. shows that NNS gave more points in their analytic ratings than holistic ratings. And also this
situation is similar to the results shown on Table 4.5.
Table 4.6. Paired Sample Statistics: Non-Native Speakers’ (NNS) Scoring Holistic and Analytic Marks
NSs’
N
Minimum
Maximum
Range
Mean
Std.
Std.
deviation Error
Scoring
Mean
Marks
8
11,00
16,00
5,00
12,8750
2,16712
,76619
Holistic
8
12,00
16,00
4,00
13,2500
1,38873
,49099
Analytic
Table 4.7. and table 4.8. show that there are high correlations between both groups raters’ holistic and
analytic marks (p&gt;0,05 level).
Table 4.7. Paired Sample Correlations: Native Speakers’ Scoring Holistic and Analytic Marks
N
Correlation
Significance
Holistic and Analytic
8
,738
,037
Pair
Marks
1
Table 4.8. Paired Sample Correlations: Non-Native Speakers’ Scoring Holistic and Analytic Marks
N
Correlation
Significance
Holistic and Analytic
8
,059
,889
Pair
Marks
2

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Discussion and Conclusion
Assessing L2 writing, in fact, is a subjective process where there is no exact correct answer that could
be given to any test item when compared to other types of testing language skills such as multiple choice tests.
However, to obtain high level of objectivity in assessing writing there are some requirements that scorers must
fulfil. Therefore, the term ‘inter-rater reliability’ gains importance in scoring marks to L2 written productions. In
this study, the amount of consistency between the ratings of both the groups of native speakers and non-native
speakers were statistically analyzed. Scoring marks depending on analytic and holistic scales showed that both
groups of raters are consistent in their analytic and holistic ratings. The correlation of native speakers’ scoring
holistic and analytic marks is ,738 and significance is ,037 at p&gt; 0,05 level and the correlation of non-native
speakers’ scoring holistic and analytic marks is ,059 and significance is ,889 at p&gt; 0,05 level. However, the
mean of native speakers’ analytic scoring marks is a little higher than their holistic scoring marks. Similarly, the
mean of non-native speakers’ analytic scoring marks is a little higher than holistic ones. Overall, native and nonnative raters rated the same paper consistently (12-15= good). In conclusion, the study is limited to 16
participant-raters and to replicate for confirming the outcomes of the present study, the participants and task may
be varied in the further studies.

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References
American Psychological Association Standards for Educational and Psychological Testing (1985). Washington, D.C:
American Psychological Association.
Bachman, L. F. (1995). Fundemental Considerations in Language Testing. Oxford: Oxford university Press.
Barkaoui, K. (2010). Variability in ESL essay rating process: The role of the rating scale and rater experience. Language
Assessment Quarterly, 7, 54-74.
Bresciani, M. J., Oakleaf, M., Kolhorst, F., Nebeker, C., &amp; et al. (2009) Examining design and inter-rater reliability of a
rubric measuring research quality across multiple disciplines. Practical Assesment Research &amp; Evaluation, 14, 12, p.3.
Brown, G.T.L., Glasswell, K., &amp; Harland, D. (2004). Accuracy in the scoring of writing: studies of reliability and validity
using a new zealand writing assesment system. Assessing Writing, 9, 106.
Coombe, C., Folse, K., &amp; Hubley, N. (2007). A Practical Guide to Assessing English Language Learners. US: The
University of Michigan Press.
East, M. (2009). Evaluating the reliability of a detailed analytic scoring rubric for foreign language writing. Assessing
Writing, 14, p.91.
Hamp-Lyons, L. (1990). Second language writing: assessment isssues. In Coombe, C., Folse, K., Hubley, N. (2007). A
Practical Guide to Assessing English Language Learners (p.84). US: The University of Michigan Press.
Hyland, K. (2003). Second Language Writing. Cambridge: Cambridge University Press.
Stemler, S.E. (2004). A comparison of consensus, consistency, and measurement approaches to estimating, interrater
reliability. Practical Assesment Research &amp; Evaluation, 9, 4.
Sudweeks, R. R., Reeve, S., &amp; Bradshaw, W. S. (2005). A comparison of generalizability theory and Many-Facet Rasch
Measurement in an analysis of college sophomore writing”. Assessing Writing, 9, 239.
Sweedler-Brown, C. O. (1985). The influence of training and experience on holistic essay evaluation. English Journal, 74, 5,
49-55.
TEEP Test of English for Educational Purposes, Associated Examining Board, UK, 1984.Weir, C. J, (1990). Communicative
Language Testing. NJ: Prentice Hall Regents.
UCLES International Examinations in English as a Foreign Language General Handbook, 1987.
Weigle, S. C. (2002). Assessing Writing, Cambridge: Cambridge University Press.
White, E.M. (1984). Holisticism. College Composition and Communication, 35, 4, 400-409.
White, E.M. (1985). Teaching and Assessing Writing. San Francisco, CA: JosseyBass.

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Appendix A. Holistic and analytic scales used in the study.
Figure 1: Holistic Scale, Source: UCLES International Examinations in English as a Foreign Language General
Handbook, 1987
Grade
Excellent
18-20

Characteristics
Natural English with minimal errors and complete realization of the task set.

Very Good
16-17

More than a collection of simple sentences, with good vocabulary and structures. Some non-basic
errors.

Good
12-15

Simple but accurate realization of the task set with sufficient naturalness of English and not many
errors.

Pass
8-11

Reasonably Correct but awkward and non-communicating or fair and natural treatment of subject, with
some serious errors.

Weak
5-7

Original vocabulary and grammar both inadequate to the subject.

Very Poor
0-4

Incoherent. Errors show lack of basic knowledge of English.

2. Some inappropriacies in vocabulary for the task.
Perhaps
some
lexical
inappropriacies
and/or
circumlocution.
3. Almost no inappropriacies in vocabulary for the task.
Only rare inappropriacies and/or circumlocution.

A. Relevance and Adequacy of content
0. The answer bears almost no relation to the task set.
Totally inadequate answer.
1. Answer of limited relevance to the task set. Possibly
major gaps in treatment of topic and/or pointless
repetition.
2. For the most part answers the task set, though there
may be some gaps or redundant information.
3. Relevant and adequate answer to the task set.

E. Grammar
0. Almost all grammatical patterns inaccurate.
1. Frequent grammatical inaccuracies.
2. Some grammatical inaccuracies.
3. Almost no grammatical inaccuracies.

B. Compositional Organization
0. No apparent organization of content.
1. Very little organization of content. Underlying
structures not sufficiently apparent.
2. Some organization skills in evidence but not
adequately controlled.
3. Overall shape and internal pattern clear. Organization
skills adequately controlled.

F. Mechanical Accuracy I (Punctuation)
0. Ignorance of conventions of punctuation.
1. Low standard of accuracy of punctuation.
2. Some inaccuracies of punctuation.
3. Almost no inaccuracies of punctuation.
G. Mechanical Accuracy II (Spelling)
0. Almost all spelling inaccurate.
1. Low standard of accuracy in spelling.
2. Some inaccuracies in spelling.
3. Almost no inaccuracies in spelling.

C. Cohesion
0. Cohesion almost totally absent. Writing is so
fragmentary that comprehension of the intended
communication
is virtually impossible.
1. Unsatisfactory cohesion may cause difficulty in
comprehension of most of the intended communication.
2. For the most part satisfactory cohesion though
occasional deficiencies may mean that certain parts of
communication are not always effective,
3. Some use of cohesion resulting in effective
communication.
D. Adequacy of Vocabulary for Purpose
0. Vocabulary inadequate even for the most basic parts of
the intended communication.
1. Frequent inadequacies in vocabulary for the task.
Perhaps frequent lexical inappropriacies and/or
repetitions.

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Figure 2. Analytic Scale, Source: Test of English for Educational Purposes, Associated Examining Board, UK, 1984.
Appendix B. Sample section from the composition scored by 8 NS and NNS raters.

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

University Intellectual Capital: Measurement Model and Application
Meliha HANDZIC
International Burch University, Sarajevo
Bosnia and Herzegovina
Elif ÖZTÜRK
International Burch University, Sarajevo
Bosnia and Herzegovina
elifozturk@ibu.edu.ba

Abstract: There is the widespread recognition of the importance of intellectual capital
(IC) as a major source of competitive advantage for any organisation operating in today‘s
knowledge economy (KE). In particular, universities are recognised as being essential to
the new economy as the prime producers and transmitters of knowledge in a society.
Therefore, it is not surprising that the management and measurement of IC by universities
is becoming an increasingly important issue in the knowledge management (KM) research
and practice. It is argued that universities need to use the IC model as a tool to aid them in
meeting new management challenges and diffuse their intangible resources and activities
to their stakeholders and society at large. This study addresses this need by developing a
specific model for measuring intellectual capital of universities and by applying it in the
specific context of a new private university in Sarajevo, Bosnia and Herzegovina. It is
hoped that the use of this model can help the university in reaching its scientific and
educational goals.
Keywords: Importance of Intellectual Capital, Competitive Advantage, Knowledge
Economy, Knowledge Management, Intangible Resources.

Introduction
Intellectual capital has gained the increased prominence as a business and research topic principally due to
the rise of the knowledge economy. Knowledge economy is described by OECD as the economic activities and
systems which are directly established by creation, circulation and application of knowledge and information (Chen,
2008). Intellectual capital (IC) has been widely recognised as a major resource of organisations in the knowledge
economy (KE).
The concept of IC combines the idea of the intellect power with the economic concept of capital for the
purpose of producing innovative or more efficient and effective goods and services. Typically, the term IC refers to
all knowledge resources that determine the competitiveness of an organisation. It includes intellectual property such
as patents and licences, as well as the skills and know-how of people, documents and information systems (Kleiner et
al, 1996). Intellectual capital is synonymous with knowledge assets, intellectual assets or intangible assets (Guthrie,
2001).
In recent economic and social developments, intellectual capital is implicated as the instrumental in the
determination of enterprise value and economic performance. From the IC perspective, the aim of an organisation is
to create and/or extract value from knowledge assets by maximizing the interrelationship between different types of
its intellectual capital (Handzic and Zhou, 2005). It has also been widely recognised that the success of the
knowledge economy or society depends on the effective utilisation of its intangible assets such as knowledge, skills
and innovative potential (ESRC 2007, Critical 2009).
In research, the current emphasis is on important theoretical and empirical contributions relating to the
measurement and reporting of intellectual capital. Therefore, in this study, we address the issue of IC measurement
by developing and applying a specific IC measurement model for universities.
The paper is structured as follows. It starts with this introductory section. In the following section, we
review relevant literature on universities and their IC models of interest to this study. Next, we describe the survey
research method applied in the current investigation. Then, we present results of our quantitative and qualitative data

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo
analyses. A discussion of our findings in the light of past literature follows. Finally, conclusions and contributions to
research and practice are offered in the last section.

Literature Review
This section draws from past research and practice in order to develop a more comprehensive and holistic
understanding of IC frameworks as a common ground for developing a specific IC measurement model for
universities. First, the section looks into the place of universities in knowledge economy. Then it presents some
recent efforts at developing IC models and examines their use in measuring and reporting human, structural and
relational capital categories. In the end, it states the objectives of the present study.
University and Knowledge Economy
In his recent review, Ozlen (2010) states that the central task of universities is to create new knowledge and
thereby engender innovations. Innovations are based on information and knowledge processes of various kinds. Such
processes cannot take place without accurate, up-to-date knowledge in the focal areas of the universities‘ research
interests and efforts. Alliances and social network theory provide one potent perspective for the analysis of relevant
relationships. Networking is based on reciprocity and the exchange of the resources, ideas, information, knowledge,
and social support that mediate all relationships. The purpose of internally driven networking is to break down
internal barriers and boundaries, thereby allowing members to create quick and open person-to-person and group-togroup communications for exchanging information and sharing knowledge for the improvement of organizational
performance.
According to Ozlen (2010) IC is the most vital and strategic resource for universities. Actually, IC is at the
core of the University‘s mission and reason of existence. Attracting and retaining qualified intellectual capital plays a
vital role in reinforcing the University‘s educational standards. IC is not only an input resource for a University, but
it is also a product in the sense that faculty members‘ IC is used to nurture that of its students. As an institution earns
a reputation as a superior quality provider of education, it will be able to attract more local and foreign students
which will contribute in turn to the institution‘s prosperous continuity. IC reports recognise that the ―the efficient use
of IC is essential for a university‘s performance‖
University Knowledge Assets Portfolio
There are many classification schemes which attempt to categorise knowledge assets or IC in organisations.
Handzic and Zhou (2010) presented a widely-accepted scheme of three sub-categories: human capital, organisational
(internal) capital and customer (external) capital. In addition to this, knowledge assets can be divided into core and
supporting assets Core knowledge assets comprise a firm‘s core skills and competencies. They lie in the areas in
which the firm has competitive strengths. In contrast, supporting knowledge assets are complementary generic and
operational assets that support or enable the delivery, storage and acquisition of core knowledge assets. Every
organisation possesses valuable intellectual materials in the form of data, documents, procedures, capabilities, etc.
These can be found in people, organisational structures and processes, and customer relationships. To succeed,
organisations need to have a clear understanding of which knowledge assets are important to their success and how
these assets are distributed over different parts of the company and among different functions and workers.
The portfolio of knowledge assets is typically determined by an organisation‘s strategic plan. The following
sections present some examples of knowledge assets of universities under human, structural and relational subtitles.
Typically, key indicators of human capital of universities include the ability to attract and retain staff of good
caliber,, dedicated staff, implementation of effective staff and student equity measures. Indicators of structural
capital (customer capital) include projecting a highly visible positive image, ability to attract good students,
technological support, quality research, relevant tuition programmes, quality research, internationalization, visionary
participative strategic management, adherence to mission, financial health of the institution.
Study Objectives
There is a growing evidence in support of the application of IC tools in universities and the potential benefit
this would bring (Sanchez et al., 2009). Up to now, only a few universities have taken the challenge of trying to
measure and report on intangible assets (Ramirez et al., 2007). In this study, we evaluate IC capital of the case
university by assessing its human, structural and relational facets. Human capital was evaluated in terms of explicit

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo
and tacit knowledge of the universities‘ personnel acquired through formal and informal educational and
actualization processes embodied in their activities; Structural capital captured the explicit knowledge related to the
internal process of dissemination, communication and management of scientific and technical knowledge in the
organization; and relational capital gathered the wide set of economical, political and institutional relationships
developed and maintained by the university (Ramirez at al., 2007). A mix of objective and subjective, financial and
nonfinancial measures can be used to assess these IC aspects. For the purpose of this study, we adopted the
subjective nonfinancial measurement approach. The approach has been described in more details in the following
section.
Research Method
This section describes the design of the study, the population and sample, the operationalisation of
examined variables, and the instrumentation development, procedures, and data analyses employed.
Research Design and Instrument
Our intention in this study was to produce a broad picture of intellectual capital in the higher education
institution. A new private university in Sarajevo, Bosnia and Herzegovina was chosen as a study case for
convenience reasons and a descriptive survey was adopted as a preferred method for this research (Judd et al. 1991).
The name of the case university has been concealed for the purpose of privacy protection. The survey design was
based on a range of insights from the theoretical IC literature and the review of prior related survey research. The
design of the survey took into account time requirements, emotional cost, trust, nature of the relationship between
respondents and researchers. Thus the survey form was compact and no personal information was required.
The questionnaire was written on a single page with 18 questions written in 10-point font. This layout was
selected based on the time cost to the respondents. It was tested to take approximately 15 minutes to complete in the
participants‘ own chosen time. The survey was also formatted for clarity. It was divided into 5 major parts, and
included short starting instructions. The 5 sections of the survey comprised: (i) Demographic information (role,
gender); (ii) Human capital (importance and actual status); (iii) Structural capital (importance and actual status); (iv)
Relational capital (importance and actual status); and (v) Comments.
Subjects and Procedure
Participants in this survey included employees across the case university departments. Respondent
demographics sought included employee role (academic or support) and gender (male or female). The names of the
respondents were unknown and not required for the purpose of collecting data.
The questionnaires were distributed to the recipients by one of the authors. Given that surveys receive the
low fraction of responses, we tried to lift the response rate by personally contacting colleagues at the case university,
handing out the questionnaires, reminding the recipients that the survey should be completed and collecting them
when done. Data collection was carried out over a period of one week. A total of 32 responses were received. The
maximum response rate was achieved.
In replying to the questions and statements the respondents were required in most questions to tick
appropriate responses using attitude questions in the questionnaire. This allowed respondents to rank their agreement
to a statement relative to positive and negative end-points of a seven-point Likert scale. Some questions were
multiple choice or required textual responses.
The questionnaire responses were encoded, entered into a computer and then analysed using Microsoft
Excel spreadsheet program. The survey responses were combined into one file and the descriptive statistics were
calculated for each variable from the responses to each of the items. Relevant descriptive statistics and any
uncharacteristic results are described in the following results section of this paper.

Results
This part presents the results of the analysis of the collected survey data. The first section examines the
respondents‘ demographic information. The next three sections present respondents‘ views about the case
university‘s human, structural and relational capital. The final section presents the most notable comments on all
three IC facets.

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

Respondent Demographics
The profile of the sample is examined in terms of the respondents‘ role at the case university (academic
staff, support staff) and gender (male, female). Of the total of 32 survey respondents, 72% were academics and 28%
were support staff. Furthermore, 81% of the respondents were male and 19% female. This distribution suggests that
the survey responses generated may reflect more closely the views of male academics (Table 1).

Role

Male

Female

Academic staff

56%

16%

25%
Table 1: Respondent Demographics

3%

Support staff

Human Capital
This section examines the respondents‘ opinions about the importance and actual status of human capital at
the case university. When asked about their opinion about the importance of human capital, 92% of the respondents
agreed (rates &gt; 4) and only 3% disagreed (rates &lt; 4) with the given statements on a variety of aspects of human
capital.
The next table (Table 2). shows the distribution of respondents‘ opinions about existent human capital at
the case university. Opinions were separated into those that agree (rates &gt; 4) and those that disagree (rates &lt; 4) with
given statements. Thus, it was possible to identify more clearly positive and negative feelings about various
evaluated aspects. Each statement was rated separately by the respondents.
There was a shared view by 65% of the respondents that the case university provides high quality teaching
in small groups (statement 5). Furthermore, 50% of the respondents held the view that the case university offered full
administrative support for teaching and research (statement 4). In addition, 47% of the respondents recognised that
the university had strong and visionary leadership (statement 1) and that academic staff were motivated to do
research (statement 6). Finally, 45% respondents felt that the university hired high quality academic staff (statement
2) and 44% believed that academic staff were dedicated researchers and instructors (statement 3).

Statements

Agree

Disagree

1. The university has strong and visionary leadership

47%

28%

2. The university hires high quality academic staff

45%

23%

3. Academic staff are dedicated full time researchers/instructors

44%

19%

4. The university provides full admin support for academics

50%

28%

5. Academic staff work with small groups of students

65%

26%

6. Academic staff are motivated to do research
Table 2: Human Capital

47%

34%

To eliminate any possibility of academic bias, the responses for human capital were cross-tabulated against
the roles of the respondents. No major differences were found in ratings between respondents from academic and
support staff. (Table 3).

Role

Agree

Disagree

Academic staff

70%

30%

Support staff
55%
45%
Table 3: Opinions about Human Capital by Role

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

Structural Capital
This section examines the respondents‘ opinions about the importance and actual status of structural capital
of the case university. With respect to respondent opinions about the importance of structural capital, 87% agreed
(rates &gt; 4) and 3% disagreed (rates &lt; 4) with given statements on a variety of the structural capital aspects.

Statements

Agree

Disagree

1. Wide variety of disciplines are taught at the university

38%

28%

2. The university has several specialty domains

34%

44%

3. The university has contributed to many scholarly outlets

16%

56%

4. Own research outlets have been started by the university

53%

19%

5. The university offers necessary library and info-services

38%

47%

6. IT provides reliable infrastructural support for teach/research
Table 4. Structural Capital

25%

38%

With respect to the existent structural capital at the case university, the respondents‘ opinions were divided.
(Table 4). There was appreciation by 53% of the respondents that the university started own research outlets
(statement 4) and agreement by 38% with the observation that a wide variety of disciplines were taught at the
university (statement 1). However, 56% respondents disagreed with the assertion that the university contributed to
many scholarly outlets (statement 3). Similarly, 44% respondents disagreed with the proposition that the university
had specialty domains (statement 2). Furthermore, 47% and 38% of the respondents opposed the claim that the
university offered necessary library/information services (statement 5) and IT support for teaching and research
(statement 6).
Relational Capital
This section examines the respondents‘ opinions about the importance and actual status of relational capital
at the case university. Regarding the importance of relational capital, 91% of the respondents agreed (rates &gt; 4) and
4% disagreed (rates &lt; 4) with the view that relational capital was important to the case university. The remaining
respondents were unsure or provided no answers.

Statements

Agree

Disagree

1. High quality students are being attracted to the university

56%

31%

2. University offers expertise to external stakeholders

16%

41%

3. There is close partnership established with other universities

25%

28%

4. The university is a member of scientific/professional assoc.

19%

44%

5. The university encourages academic networking

56%

28%

6. The university promotes positive public image
Table 5: Relational Capital

41%

19%

Respondents‘ opinions concerning the existent relational capital at the case university were divided. (Table
5). There was agreement by 56% of the respondents that the university encouraged networking (statement 5) and
attracted high quality students (statement 1). There was also agreement by 41% of the respondents with the view that
the university promoted positive public image (statement 6). However, 44% and 41% of the respondents opposed the
claim that the university was a member of scientific and professional associations (statement 4) or established close

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo
partnership with other universities (statement 3). Finally, 28% rejected the proposition that it offered expertise to
external stakeholders (statement 2).

Comments
Respondents were asked to give textual comments about the three facets of intellectual capital. From the
responses obtained, the most notable comments were: (1) barriers to research created due to teaching overload and
lack of time and opportunity to attend conferences; (2) inadequate study space provided in the library; and (3) deeply
felt belief that the case university would attain a position among top 100 universities in Europe.

Discussion
This section analyses and interprets empirical data from the survey of IC importance and actual status at the
case university. It seeks to establish whether IC has developed adequately and whether and how it differs from the
desired ideal state. Responses to survey questions and comments about human, structural and relational assets expose
the following current IC status at the case university.
Analysis of Key Findings
In summary, the study findings for human capital indicate a positive overall picture. These findings reveal
that there is the universal recognition of the importance, as well as the positive collective view of the existent human
capital at the case university. This implies that human capital is the major strength of the case university. Such
contention is reinforced further by deeply felt belief that the case university has the potential to attain a position
among the 100 best universities in Europe. This is an important and encouraging finding.
In contrast, the findings for structural capital are divided. Although there is a widespread acknowledgement
of its importance, the distribution of current results implies a rather negative overall judgement of the case
university‘s structural capital at present. Major shortcomings have been identified in the areas of (i) specialty
research domains and scholarly contributions; and (ii) supporting information technology and library infrastructure
and services. The first problem is reinforced by comments of teaching overload and the lack of necessary time and
opportunity to do and present research. This suggests the need for the case university‘s leadership to find a way to
eliminate current barriers to research by rebalancing teaching and research activities at the case university. The
second (infrastructural) problem is currently being addressed through major construction work. With a new building
construction well underway, it is expected that the sophisticated teaching and research infrastructure will be available
to students and employees at the beginning of the next academic year.
The findings with respect to relational capital are similarly divided. While they show a common
understanding of the importance of relational capital at the case university, its actual status suggests the need for
building closer institutional relationships with educational, professional and industrial segments. It appears that the
case university‘s promotion of positive public image and networking enables it to attract high quality students.
However, its institutional presence and involvement in academic and professional associations, government and
industry sectors, as well as the society at large is lacking. the case university‘s leadership should take a closer look at
the issue and find a way to contribute to national (BiH and/or Turkey) and regional (Balkan and/or Europe)
development.
The overall tone of this application case is mixed. The visualisation and analysis of key elements indicate
some aspects of IC that are fairly well aligned with educational strategy and successful in the context of the case
university. However, there is room for further improvement in a number of IC issues. There is also an opportunity
for further development. The greatest challenge for the case university is to move in the direction of its mission of
advancing learning and transforming life by consciously and deliberately addressing its strategic IC.
Implications and Limitations
The results of this IC model development and application have a number of important implications for
university in continuing its education and research journey. The high number of unsure and no responses indicate the
need for raising awareness of IC throughout the university. The proposed IC model may be helpful in this regard by
creating a common understanding of the IC phenomena including basic components and indicators. It should also
help to avoid any danger of misconception and misunderstanding by promoting the use of a common terminology.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo
It is obvious that the results of this research are limited by a specific higher education context and a group of
academic and support staff participants in which the evaluation of intellectual capital was investigated. In order to
generalise the findings, further research is required involving other contexts and subject groups. Future research is
also required to study the impact of various tasks, environment and people related contingencies on IC, and how they
relate to performance outcomes. Only by systematically investigating fundamental aspects of IC, by cultivating
better measures and by critically examining alternative theoretical models, can the IC field continue to progress.

Conclusions
This analysis provides some insights into Intellectual Capital (IC) at a specific case within the higher
education sector: a new private university in Sarajevo, Bosnia and Herzegovina. The study applied a subjective IC
measurement approach to explore the importance and actual state of IC at the case university. From the conceptual
point of view, the applied measurement model and terminology were adapted from a general IC framework. The
assessment was performed subjectively, taking into account the employees‘ perspectives on importance and actual
state of human, structural and relational capital at the case university. The findings reveal some interesting IC
dynamics and identify current shortcomings. Most importantly, they point to human capital as the case university‘s
major strength. They also identify several weaknesses in structural and relational capital. These points may define
the agenda for future research in the field for the benefit of both theory and practice of IC reporting and management
in universities.

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                <text>There is the widespread recognition of the importance of intellectual capital  (IC) as a major source of competitive advantage for any organisation operating in today‘s  knowledge economy (KE). In particular, universities are recognised as being essential to  the new economy as the prime producers and transmitters of knowledge in a society.  Therefore, it is not surprising that the management and measurement of IC by universities  is becoming an increasingly important issue in the knowledge management (KM) research  and practice. It is argued that universities need to use the IC model as a tool to aid them in  meeting new management challenges and diffuse their intangible resources and activities  to their stakeholders and society at large. This study addresses this need by developing a  specific model for measuring intellectual capital of universities and by applying it in the  specific context of a new private university in Sarajevo, Bosnia and Herzegovina. It is  hoped that the use of this model can help the university in reaching its scientific and  educational goals.</text>
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                    <text>2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Effects of Implementing to Total Quality Management on the Busıness
Performance and a Research
Mustafa HOTAMIġLI
Faculty of Economics and Administrative Sciences,
Afyon Kocatepe University
Turkey
hotamisli@aku.edu.tr
Feyyaz YILDIZ
Faculty of Economics and Administrative Sciences,
Afyon Kocatepe University
Turkey
feyyaz.yildiz@gmail.com
Ali ELEREN
Faculty of Economics and Administrative Sciences,
Afyon Kocatepe University
Turkey
eleren@aku.edu.tr

Abstract: Total quality management (TQM) has been mentioned to have positive effect on
business performance considerable attention in the literature and researches. The aim of this
study is to analyse the performance changes in a shopping center. A research model was
composed of four performances dimensions. Qualification and quantitive data of the model
were groupped and evaluated by using statistical methods. In the end of the study, after
implementing of TQM the performance increase was observed in the all sized of the business
by years .

Introduction
With the increasing competitive, business survival pressure and the dynamic, changing customeroriented environment, total quality management (TQM) has been recognized as one of the important issues and
generated a substantial amount of interest among managers and researchers (Samson and Terziovski, 1999, p.
393-409;Adam at all.,2001,p. 39-43; Samson and Daft, 2005, p.250-265). Some authors conclude that TQM
positively influences business performance through the development of a series of competencies (Powell, 1995,
p 15-37; Douglas and Judge, 2001, p. 158-169; Brah et all, 2002, p.356-379, Garcı et all.2010, 363-382).
Furthermore TQM has an impact on the way organization members apply their knowledge in the organization,
and therefore it affects organizational performance.
Firms that focus on continuous improvement, involve and motivate employees to achieve quality output
and focus on satisfying customers' needs are more likely to outperform firms that do not have this focus (Seth,
and Tripathi, 2006, p.811-826; Joiner, 2007, p. 617-627; Jitpaiboon and Rao, 2007, p. 78-102). Business
performance management (BPM) is a key business initiative that enables companies to align strategic and
operational objectives with business activities in order to fully manage performance through better informed
decision making and action. In other words, BPM is a process that enables to meet business performance
measurements and objectives. It enables to proactively monitor and manage business processes, and take the
appropriate actions that result in meeting objectives (Ballard et all. 2005. p.27-29; Alfaro et all.,2007, p. 643;
Kanjı, 2002, p.1116). Business performance basicly composed of three approaches. Those are; financial;
financial and operational; and organisational effectiveness (Venkatraman and Ramanujam, 1986,p .801-14).
From other side business performance reviews put in action and bring the firm's performance measurement
models to life, such as balanced scorecards, performance prisms, budgeting systems, assessment frameworks and
accounting systems. (Martinez and Kennerley, 2009, p.12-21; Sardana, 2008, p. 32).

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

The Study
In this section, information on purpose, scope, method of the application and model is provided. The
purpose of this study is that comparative evaluation of performance results before and after TQM applications in
an organization and investigating to what extend TQM applications contribute to the organization. The scope of
is limited to 2005-2009 data from an shopping center in Afyonkarahisar, is a province of Turkey is a gas station
belonging to the shopping center out of the building. As of 2007, the shopping center started using TQM
applications.
Performance model; this model was first used in Eleren and Soba (2009:1309). Originally, there are six
dimensions and scales of the model. The model included marketing, finance, internal and external customer
dimensions. To determine the dimensions of the model, the organization‘s database was used and the most
appropriate ones were selected. Availability of database including questionnaire data administered to the internal
and external customer of the organization in pervious years and finance and sale data affected determining these
four dimensions. Data collection: In evaluating first two dimensions, a scale composed of likert-type questions
was used. In the other two dimensions, quantitative data was used. Data was gathered from a large database
including years between 2005 and 2009.

BASIC DIMENSIONS

1. External Customers

2.
Internal
(Employees)

Customers

INDICATORS

Customer Satisfaction

Fidelity, Productivite

3. Marketing Function

Market Performance

4. Financial Function

Financial Performance

SUB INDICATORS
Re-De
Cost/Quality
Diversity
Flexibility
…………
……………
Job Satisfaction
Working Conditions
Fee and Responsibility
Quality of Work life
Job
Healty
and
security
…………
……………
Sales
Market Shares
Sales Refund
…………
……………
liquidity
Loans
Profitability
Action/Effectiveness

Table-1: Proposed New Performance Model and Its Dimensions

Findings
In this section, four dimensions of the model are separately reported. Those are; Customer Satifaction
Dimention, Employee Satisfaction Dimention, Market Performance Dimention, Fınancial Performance
Dimention.
Customer Satifaction Dimension; a questionnaire including five-point likert-type items were
administered to customers between 144 and 172 to measure customer satisfaction. The results are provided the
table below.

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

Performance Criteria
We have been getting sufficient and quick
answers to our problems and complaints
Product game is wide
The staff is friendly and well dressed
The products ratio of price / quality are
appropriate
Quality performance of business is high at all
products and services of it
Service areas are, clear,regular and sanitary
Business provides convenience on chancing
of the faulty products
Business takes into account of our choices
and tastes on it products
Product price, quantity, manufacturer,
manufacturing and expiry dates availables on
labels
The design of our products are suitable
fashion and our tastes.
Brands offered by the business is reliable and
I always prefer
Introductions of product are reasonable and
attractive
It has been providing convenience at the
shoppings
Products
packages are adequate and
attractive.
AVR.
N=2500

2005

2006

2007

2008

2009

AVR.

2,58

2,61

3,22

3,45

4,68

3,31

2,78
2,89

2,74
2,94

3,43
3,2

3,53
3,39

3,61
3,46

3,22
3,18

2,91

2,87

3,34

3,36

3,28

3,15

2,65

2,68

3,15

3,11

3,44

3,01

2,41

2,36

2,84

2,98

3,24

2,77

2,31

2,65

2,57

2,96

3,13

2,72

2,21

1,91

2,52

2,59

3,22

2,49

2,17

2,15

2,51

2,61

2,95

2,48

2,27

2,22

2,59

2,56

2,63

2,45

2,21

2,24

2,32

2,52

2,49

2,36

1,86

1,91

2,12

2,34

3,33

2,31

1,29

1,73

1,66

1,93

2,26

1,77

1,13

1,47

1,69

1,48

2,69

1,69

2,26
n=60

2,32
n=60

2,65
n=60

2,77
n=60

3,17
n=60

2,64

Table-2:Performance to Based on Customer Satisfaction
As of 2007 when TQM was started to use, the averages were above the hypothetical average of 2.5
and has continuously improved. This shows that customer satisfaction improved. When propositions customers
positively rated were evaluated it was seen that the following TQM applications were effective in the
organization: qualities and varieties of products, quick response customer needs and compliance and friendly
sales personnel. To measure employee satisfaction, a questionnaire including five-point likert scale was
administered to 60 employees out of 67 excluding 7 mid-level managers. The results were reported in the table
below. As given above, before and after TQM evaluation results were not be able to given here because there
were not data available on employee satisfaction in previous years. The evaluation was provided only for a term
for 2008. Responses of average as of 2007 are above hypothetical average of 2.5. This shows the positive views
of participants after TQM applications. The propositions on the following issues show that TQM applications
reach their goals: consultations before decisions, participation in management, fair work and fair pay.
Market Performance Dimensions; international and domestic sale performances were considered.
Two separate indices for two separate years were prepared. The sales of the organization were grouped in four
categories. Based on 2005 sales, an increment index was created using data simplified by inflation rate. It
showed that sale started to increase in and after 2007.

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

SALES (TL) (*)
Textile&amp;
Home
Application&amp;Electronic
Incrase (2005 base)
Market
Incrase (2005 base)
Cafe&amp;Restourant&amp;Enter
.
Incrase (2005 base)
Fuel
Incrase (2005 base
TOTAL
Incrase (2005 base)

2005

2006

2007

2008

2009

1.256.172

1.268.949

1.688.320

1.844.997

1.746.584

1,00
1.010.127
1,00

1,01
1.008.965
1,00

1,34
1.101.918
1,09

1,47
1.372.173
1,36

1,39
1.201.328
1,19

323.878

338.842

372.751

528.519

540.120

1,00
139.462
1,00
2.729.640
1,00

1,05
161.919
1,16
2.778.674
1,02

1,15
127.703
0,92
3.290.693
1,21

1,63
183.674
1,32
3.929.363
1,44

1,67
241.205
1,73
3.729.237
1,37

Table-3: Marketing Performance Scores
(*)The total value amounts belonging to years and rates have been corrected by inflation.
TQM applications affected the sales positively. That increase in sales in 2009 was less than the increase
in 2007 and 2008 shows the effects of the global crises.
Financial Performance Dimension; the organization‘s 2005-2009 fiscal years financial tables were
used for financial performance. Data firstly converted to financial ratios by ratio analysis was converted to
financial accomplishment performance scores using Altmna‘s Zeta model. The basic evaluation of this model is
based on Z-value calculations developed by Altman (Altman vd.., 1977:26-51). Although the Zeta model was
designed to determine level of bankruptcy and accomplishment levels it helps compare organizations‘ financial
performances by years.
Z=
+ 1.2 * (Net business asset/total assets)
+ 1.4 * (distrubuted profits/Total assets)
+ 3.3 * (profit before Interest and tax//total assets)
+ 0,6 * (capital/debts)
+ 0.999 (sales/total assets)

Altman Zeta
Increases(2005 base)

2005
2,81
1,00

2006
2,89
1,03

2007
3,06
1,09

2008
3,45
1,23

2009
3,36
1,20

Table-4: Financial Performance Scores
According to table, based on 2005, in 2007 and after, there was a significant increase in the financial
performance. Although there was a little decrease in recent year it is projected the performance will increase
after the global crisis.

Results
Total Quality Management affects organization competitive positions positively. Increase in internal
and external customer satisfaction, marketing, production and financial performance as a result of successful
application, is expected goal theoretically. While these developments are experienced that will affect competition
positively the results of these developments will reach to other shareholders, such as associates, customers,
society, government etc. In this study, the theoretic level of performance of an organization owning a shopping
center was tested using a performance measurement model. The model is composed of internal and external
customers, marketing and finance dimensions. Based on this relationship, the model was used to determine the
expected performance increase of the organization. That a positive increase was observed in all dimensions when
TQM was started to be used means that TQM positively contributed to organizations‘ performance. In a
successful TQM application, a similar performance increase should be seen in other organizations. However, the
position of the organization, professionalism in management, size, quality of technology and workforce etc.
factors will affect performance reached. These differences have to be investigated in other studies.

196

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

References
Adam, E.E., Flores, B.E. &amp; Macias, A. (2001) Quality improvement practices and the effect on manufacturing firm
performance: evidence from Mexico and the USA, International Journal of Production Research, Vol: 39, pp. 43-63.
Ahmed S., Masjuki Hj. Hassan and Yap Hui Fen,(2005), Performance Measurement and Evaluation in an Innovative
Modern Manufacturing System, Journal of Applied Sciences pp. 385-401. http://docsdrive.com/pdfs/ansinet/jas/2005/385401.pdf, acc.date:5/5/2010.
Alfaro J., A. Ortiz ; Poler R (2007) Performance measurement system for business processes, Production Planning &amp;
Control, Vol.:18:, no:8, pp.641-654, http://www.informaworld.com/smpp/title~content=t713737146, acc.date:5/5/2010
Altman, E., (1977) ―Zeta Analysis‖, Journal of Banking of Finance,pp.26-51.
Ballard, , Colin White, S. McDonald ,Myllymaki J., McDowell S., Goerlich O., Neroda (2005),A., IBM Redbooks. Business
Performance
Management.
Meets
Business
Intelligence,
Durham,
NC,
USA:
IBM,.
p
.27-29,
http://site.ebrary.com/lib/afyon/Doc?id=10112499&amp;ppg=1,acc.date:5/5/2010
Brah, S.A., Lee, S.L., Rao, B.M. (2002), Relationship between TQM and performance of Singapore companies, International
Journal of Quality &amp; Reliability Management, Vol. 19 No.4, pp.356-79.
Douglas, T.J., &amp; Judge, W.Q., Jr. (2001). Total quality management implementation and competitiveadvantage: The role of
structural control and exploration. Academy of Management Journal,44, 158–169.
Eleren A.and Soba, (2009),Multı-Dımensıonal Performance Measurement In Organısatıons And An Ap Mplıcatıon In Usak
Leather Industry, International Davraz Congress, 24 -27 September 2009,Isparta, Turkey,.pp.1309.
Garcı J.´ Bernal_A- and Rez-Aleso´N Marisa Ramı,(2010),Increasing The Organisational Performance Benefits Of TQM:An
Approach Based On Organisational Design, Total Quality Management,Vol. 21, No. 4,pp.363–382
Joiner, Therese A. (2007).The role of organization support and co-worker support, Journal: International Journal of Quality &amp;
Reliability Management,Volume: 24,Number: 6,School of Business, La Trobe University, Bundoora, Australia,pp. 617-627
Kanjı G.,(2002), Business Excellence: Make It Happen, Total Qualıty Management, Vol.. 13, No. 8, 1115-1124.
Martinez, V.; Kennerley, M. (2009) Performance measurement systems: Benefits. EURAM Annual Conference, Munich,
pp.11-21.
Powell, T.C. (1995), "Total quality management as competitive advantage: a review and empirical study", Strategic
Management Journal, Vol. 16 pp.15-37.
Samson, D., Terziovski, M. (1999), The relationship between total quality management practices and operational
performance, Journal of Operations Management, Vol. 17 pp.393-409.
Samson, D., &amp; Daft, R.L. (2005). Management, Second Pacific Rim Edition. South Melbourne: Thomson.pp.250-265.
Sardana G. D.,(2008),Measuring Business Performance:A Conceptual Framework With Focus On Improvement,
Performance Improvement, Vol. 47, no. 7, August 2008, International (www.interscience.wiley.com)
Seth, D &amp; Deepak T, (2006), A Critical Study Of TQM and TPM Approaches On Business Performance Of Indian
Manufacturing Industry, Total Quality Management Vol. 17, No. 7,pp. 811–824.
Venkatraman, N., Ramanujam, V. (1986), Measurement of business performance in strategy research: a comparison of
approaches, Academy of Management Review, Vol. 11 No.4, pp.801-14.

197

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                <text>Total quality management (TQM) has been mentioned to have positive effect on  business performance considerable attention in the literature and researches. The aim of this  study is to analyse the performance changes in a shopping center. A research model was  composed of four performances dimensions. Qualification and quantitive data of the model  were groupped and evaluated by using statistical methods. In the end of the study, after  implementing of TQM the performance increase was observed in the all sized of the business  by years .</text>
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                    <text>2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Economics of Boron Mining in Turkey
Bayram KAHRAMAN
Dokuz Eylül Üniversitesi, Müh. Fak., Maden Müh. Bölümü, Izmir, Turkey
bayram.kahraman@deu.edu.tr

Abstract: Boron minerals are one of the most important richness of Turkey. Turkey has a great
potential in boron minerals regards to the reserves and the quality of these minerals. Boron
minerals have an intensive and increasing usage ranging from glass to detergent industry and in
metallurgical, agricultural and nuclear applications. Despite the important potential, Turkey gains
only an average of 300 million US Dollars per year. Therefore, this income should be increased
proportionally to the potential. In this study, production and export of ETĠBOR A.ġ. since 1978,
future targets are reviewed.

Introduction
Boron, which has the world's most common application, is one of the most important elements.
This is why the industry is one of the most important foundation stones. Boron minerals are structures in
different proportions of boron oxide (B2O3) which are naturally formed. There are over 200 naturally
occurring boron containing minerals which have major commercial importance; tincal, colemanite,
kernite, ulexite, pandermite, boracite, szaibelyite and hydroboracite (Table 1). Boron minerals in Turkey,
which are widely available, are tincal, colemanite and ulexite. These minerals are sodium, calcium and
sodium+calcium boron-based compounds. First of these minerals can be physically processed enriched
(concentrated boron) can be refined later converted to a variety of boron chemicals (Köse et al., 2002).
Mineral

Tincal (natural borax)
Kernite (rasortie)
Ulexite (boronatrocalcite)
Probertite (kramerite)
Colemanite
Priceite (pandermite)
Boracite (stassfurite)
Szaibelyite (ascharite)
Hydroboracite
Table 1:

Chemical composition
Na2B4O7 .10H2O
Na2B4O7 .4H2O
NaCaB5 O9 .8H2O
NaCaB3O9.5H2O
Ca2B6O11.5H2O
CaB10O19.7H2O
Mg3B7O13Cl
MgBO2OH
CaMgB6O11.6H2O

% B2O3
36.5
51.0
43.0
49.6
50.8
49.8
62.2
41.4
50.5

Production Place
Kırka, Emet, Bigadiç, A.B.D
Kırka, A.B.D., Argentina
Bigadiç, Kırka, Emet, Argentina
Kestelek, Emet, A.B.D
Emet, Bigadiç, Küçükler, A.B.D
Sultançayır, Bigadiç
Germany
B.D.T. (Old S.S.C.B.)
Emet

Boron mineral which are commercially important [2]

Boron is consumed mostly in the form of boron chemicals. Moreover, the concentration of boron
can be consumed directly. Boron products are used in many areas including aerospace and aircraft, nuclear
applications, military vehicles, fuel, electronics and communications industry, agriculture, glass industry,
chemical and detergent industries, ceramic and polymeric materials, nanotechnology, automotive and
energy sector, metallurgy and construction. Nearly 75% of boron products are consumed in glass, ceramic,
agriculture and detergent industry (Figure 1).

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

Figure 1.

World Boron Consumption in Sectors

The important boron deposits are located in Turkey, USA and Russia. Turkey has 72 percent of world reserves of
boron (Table 2).

Total Reserve
Turkey1
USA2
Russia2
China2
Chile3
Bolivia3
Peru2
Argentina2
Serbia5
Iran2
Kazakhistan4
TOTAL
Table 2:

866,000
80,000
100,000
47,000
41,000
19,000
22,000
9,000
16,200
1,000
1,201,200

Percent in Total
(%)
72
7
8
4
3
2
2
1
1
0
100

World Boron Reserve (x103 Ton - B2O3) [Boron Sector Report 2009]

1.
2.
3.
4.

1. Eti Mine reserves information was used in 2006.
USGS Mineral Commodity Summariers, January 2009, was taken.
USGS Mineral Commodity Summariers, January 2002, was taken.
Satimola region of Kazakhstan on the basis of reserves of 102 million tonnes B 2O3 at www.borates.co.uk is given as the other
sources are given very different and contradictory figures, these figures reflected in the table. Given this value is 67 percent of
ETI shares.
5. http://www.riotinto.com/whatweproduce/17056_inferred_resource_at_jadar_lithium_project.asp

The borate deposits known in Turkey are especially located in EskiĢehir-Kırka, Balıkesir-Bigadiç,
Bursa-Kestelek, and Kütahya-Emet (Figure 2). From two main ores, tincal and colemanite, boron and
boron compounds are obtained. The important tincal deposits are in Kırka while the colemanite deposits
are around Emet and Bigadiç. Ulexite is located in Bigadiç. Since the boron minerals in Turkey are only
run by Eti Mine Works General Management. Eti Mine‘s operating base consists of five competitive
mining operations: Kırka, Emet, Bigadiç and Kestelek (Table 3).

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

Production Place

Natural Borates

Kırka, EskiĢehir
Bigadiç, Balıkesir
Emet, Kütahya
Kestelek, Bursa
TOTAL

Tincal
Colemanite, Ulexite
Colemanite
Colemanite

Total Reserve
(Million Ton)
750,620
623,459
1,682,562
6,995
3,063,636

Grade
%B2O3
26
29-31
28-30
29

Table 3: Turkey Boron Reserves and Types [BOREN web pages, 2010]

Figure 2:

Sources of boron distribution in Turkey

Trade of Turkey’s Boron Products
Turkey owns the biggest and highest quality boron reserves in the world. Turkey is the largest
boron producer and seller of the world. The entire boron demand in the domestic market is met. The most
important countries in the world production of boron are Turkey, USA, Argentina, Russia, China, Chile,
Bolivia and Peru. In 2008, global boron production was about 1.91 million tons of B2O3. The production
of these countries is given in Table 4 (BOREN web pages, 2010).
Countries

Market ratio (%)

Turkey

42

USA

35

Chile, Argentina, Bolivia and Peru

11

Russia and China

12

Table 4: Position of Turkey in World Boron Market

504

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

Boron ore in the country is converted to concentrated boron (colemanite, ulexite, Tincal) and
refined boron (boric acid, borax pentahydrate and borax decahydrate) products are sold to domestic and
foreign markets. Boron concentrate production is done in Emet Kestelek and Bigadiç. Refined boron
products are made in Kırka Bandırma and Emet (EMW, 2009).
In Turkey, selling high value-added product (boron chemicals and equivalent) was identified as
the main policy. As a result, while reducing the share of exports concentrated boron, increasing constantly
share of boron chemicals and equivalent products. In 1998, 53 percent of total sales consisted of the sales
of concentrated boron and 47 percent of total sales consisted of from the sales of boron chemicals and
equivalent boron (Figure 3).
In 2009, 96 percent of Turkey's total borax products sales revenue consisted of foreign sales.
Borax pentahydrate has the highest share in boron chemicals exports. Boric acid is the second coming one.
Covering the period 2002-2009 in Turkey concentrated boron and boron chemicals and equivalent
products export sales are given in Figure 4 (EMW, 2008).

Figure 3.

Concentrated boron and boron chemicals and equivalent products sales of percentage in total sales

Figure 4.

Turkey Concentrate Boron, Boron Chemicals and Equivalent Products Exports (as the value US$)

505

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

Conclusions
Boron ore is easily and economically obtained in Turkey. Even the B2O3 grade of boron stored in waste
dams is higher than the B2O3 grade in lake waters of world‘s locomotive countries. For this reason, high grade and
easily mineable boron ores make Turkey an advantageous country.
While the boron market share of Turkey in the world during 1980‘s was 25% in terms of production, it has
been achieved as 37 % in the year 2009.
As Turkey and USA meet the boron demand of the world at a rate of 65-70 %, in the forthcoming years
countries like Russia, China, Chile and Argentina have begun to take share in the international boron market. In the
year 2009, Turkey has met the need at a rate of 37 % whereas USA met the need at a rate of 28 %. On the other
hand, Turkey has sustained its leadership in the past year which it gained back in 2005.
The total sale income of Turkey from boron products in 2009 was achieved as 451 million US$, 435 million US$ of
which were in the form of export. The sale income of exported boron chemicals and equivalence has increased by
232 % when compared to 2002 and happened as 402 million US$.
The revenue of world boron market is 1.5 billion US $ annually. Turkey, which owns 72% of the world
boron reserves, get revenue of an average of 300 million US $. Turkey aims to increase its capacity and profit with
the help of new investments.

References
EMW (Eti Mine Works General Management), web pages, http://www.etimaden.gov.tr
EMW (Eti Mine Works General Management) (2009), Boron Sector Report 2009
EMW (Eti Mine Works General Management) (2008), Activity Reports 2008.
BOREN (National Boron Research Institute) web pages, http://www.boren.gov.tr/
KÖSE, H., BATAR, T., KAHRAMAN, B. (2002), Dünya Bor Statejisi ve Bor‘un Türkiye için Önemi, EGĠAD GiriĢimcilikYönetim-Ekonomi AraĢtırmalar Dizisi.

506

�</text>
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                <text>Economics of Boron Mining in Turkey</text>
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                <text>KAHRAMAN, Bayram</text>
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                <text>Boron minerals are one of the most important richness of Turkey. Turkey has a great  potential in boron minerals regards to the reserves and the quality of these minerals. Boron  minerals have an intensive and increasing usage ranging from glass to detergent industry and in  metallurgical, agricultural and nuclear applications. Despite the important potential, Turkey gains  only an average of 300 million US Dollars per year. Therefore, this income should be increased  proportionally to the potential. In this study, production and export of ETĠBOR A.ġ. since 1978,  future targets are reviewed.</text>
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                    <text>2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Analyzing the Sustainability of Current Account in ASEAN Countries: Test
of Intertemporal Borrowing Constraints
Hüseyin KALYONCU
Department of International Trade and Business
Meliksah University
Turkey
hkalyoncu@meliksah.edu.tr
Muhittin KAPLAN
Department of Economics
Meliksah University
Turkey
mkaplan@meliksah.edu.tr

Abstract: The objective of this paper is to investigate the sustainability of current account
imbalances by using the data of five ASEAN countries, namely, Indonesia, Malaysia, Philippines,
Singapore and Thailand over the 1981-2008 periods. Sustainability of current account for ASEAN
countries is analyzed under intertemporal borrowing constraint (IBC) approach by performing an
empirical analysis of Pedroni (1999) panel cointegration between exports and imports plus net
transfer payments plus net interest payments. The empirical results of panel cointegration test
show that these variables are cointegrated for whole period and two sub-periods. To find
regression coefficient we use panel FMOLS and DOLS estimators. It is found that the coefficient
is not significantly equal to one but very close to one. The overall results provide evidence in
favour of the sustainability of the current account for five ASEAN countries as a group.
Keywords: panel data unit-root test, current account, solvency

Introduction
The sustainability of current account has been receiving increasing attention from economist. Since current
account represents an indicator of a country‘s economic performance, it is an important barometer to both
policymakers and investors. As Fountas and Wu (1999) stated that short-run current account deficits may not be
considered bad, as they may reflect reallocation of capital to the country where capital is more productive. However
persistent payment imbalances can have serious effect. One of them is that they might increase interest rates to attract
foreign capital to sustain an increasing current account deficit. Other effect is that these measures impose an
excessive burden on future generations as the accumulation of larger debt will imply increasing interest payments
and thus lower future standards of living.
The importance of the current account is witnessed by its widespread use in early warning indicators of currency
crises (Aziz et al., 2000 and Edwards, 2001)). Large and persistent external imbalances are often assumed to lead to
financial /currency crises. For example, the currency crises in Chile and Mexico (early 1980s), the UK and Nordic
countries (late 1980s), Mexico and Argentina (mid 1990s), East Asian countries (late 1990s) and more recently in
Turkey (2001) are often associated with large and persistent current account deficits.
In the empirical literature on current account sustainability there have been basically two main approaches. Both
approaches suggest possible techniques to test the sustainability of a current account under intertemporal borrowing
constraint (IBC) approach. The first approach is based on the univariate time series properties of the current account;
the second approach is based on the long-run relationship between exports and imports (bivariate approach). In this
paper we followed second approach.
The question of sustainability of current account has been studied in recent years by a large literature. Unit root
and cointegration tests have provided useful tools in gaining insight into the long-run implications of current account.
Husted (1992), Wickens and Uctum (1993), Ahmed and Rogers (1995), Milesi-Ferretti and Razin (1996), Wu et al.
(1996), Cashin and McDermott (1998), Fountas and Wu (1999), Ho-Don Yan (1999), Apergis et al. (2000), Wu

135

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

(2000), Wu et al. (2001), Baharumshah et al. (2003), Onel and Utkulu (2006), Kalyoncu (2005,2006) are examples
of these large literature.
In this study we investigate sustainability of current account imbalances by using the data of five ASEAN
countries, namely, Indonesia, Malaysia, Philippines, Singapore and Thailand. The remainder of the paper is
organized as follows. Section 2 defines the analytical framework. Section 3 explains econometric methodology.
Section 4 describes data and presents empirical results. Section 5 concludes.

Analytical Framework for Testing
Husted (1992) present a theoretical framework to test for sustainability based on Hakkio and Rush‘s (1991)
procedure. Husted‘s approach began by noting that an open economy faces the following budget constraint for each
period t:
(1)
C  Y  B f  I  (1  r ) B f
t

t

t

t

t

t

where Ct is current consumption (public and private) in period t, Yt is the output in period t, It is investment in
f

period t , rt is the one period world interest rate, Bt is the size of international borrowing which could be positive or
negative.
Since this budget constraint must hold for every time period, the period by period budget constraint can be added
up to form the intertemporal budget constraint is given by

(2)

Bt f    i Yt i  Ct i  I t i   lim  i Bt f
i 

i 1

where

TBt  X t  M t  Yt  Ct  I t . Here TB denotes trade balance.

Therefore the economy‘s budget constraint can be expressed as


(3)

Bt f   i TBt  i   lim i Bi f
t 

i 1

Equation (3) says that when the last term (limit term) equals zero, the amount that a country borrows (lends) in
international market equals the present value of the future trade surpluses (deficits). If, for example, the current stock
of foreign debt is bigger than the present value of future trade balances, then the country‘s debt is in a ―bubble‖ and
thus the current account is not sustainable.
In order to derive a testable model, Husted (1992) makes several assumptions following Hakkio and Rush (1991).
Assuming that the world interest rate is stationary with unconditional mean r and making further manipulation
equation (3) may be expressed as

X t i  Z t i
Bt fi
 Xt  
 lim
i  (1  r ) i 1
(1  r ) i 1
i 0


M t  rB

f
t 1

(4)

where Zt  M t  (rt  r ) Bt 1 . Now, subtracting Xt and then multiplying both sides of the later equation by minus
f

1, we get


CAt  X t  M t  rBt f1  
i 0

Z t i  X t i
Bt fi

lim
i  (1  r ) i 1
(1  r ) i 1

(5)

Assumed that X and Z are both I(1) processes, equation (5) becomes

B f t i
 t
i   (1  r )i 1

X t    MM t  lim
where MM t  M t  rt Bt 1 .
f

Assuming that the second term in (6) equals zero, then (6) can be written as a simple regression equation
(7)
X    bMM  
t

t

t

136

(6)

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

Under the null hypothesis that the economy is satisfying its intertemporal budget constraint, b should be equal to 1
(b=1) and  t sould be stationary. In other words, as shown by Hakkio and Rush, if X and MM are I(1), then under the
null, they are cointegrated.
In this study we follow Husted (1992) model. In the empirical analysis we estimated
X t    bMM t   t co-integration regression. In this equation, X is exports of goods and services and MM is
imports of goods and services plus net transfer payments and net interest payments.
The empirical results may allow establishing several conclusions related to the sustainability of the current
account:
- if there is no co-integration the current account is not sustainable;
- if there is co-integration with b = 1, the current account is sustainable,
- if there is co-integration, with b &lt; 1, economies exports growing lower than economy‘s imports, and the current
account may not be sustainable.
As Hakkio and Rush (1991) demonstrate in the context of government finance also if MM and X are non
stationary variables in level, the condition 0 &lt; b &lt; 1 is a sufficient condition for the budget constraint to be obeyed.
However, when X and MM are expressed as a percentage of GDP or in per capita terms, it is necessary to have b = 1.

Methodology
Panel Unit Root and Panel Cointegration
In this paper, current account sustainability in the five countries is studied by testing the existence of cointegration between exports and imports plus net transfer payments and net interest payments. Co-integration
analysis developed in the mid-80s introduced the idea that even if underlying time series are non-stationary, linear
combinations of these series might be stationary. Therefore, before employing panel co-integration techniques, it is
essential to verify that all variables are integrated of order one in levels. In recent years some tests for unit root
within panels are developed in the literature. Levin and Lin (1992, 1993), Im, Pesaran and Shin (1997), Maddala and
Wu (1999), Kao (1999) and Quah (1994) have developed panel unit root tests. In this study Im, Pesaran and Shin
(hereafter IPS) tests are used. The IPS test is more important because it is appropriate for a heterogeneous regressive
root under an alternative hypothesis. We briefly describe the IPS model:
Suppose that there is a group of N series, Xit, which have the following time-series representation:
wij

X it   i   i X it 1    ij X it  j   it , i 1,...., N and t  1,....., T .

(8)

j 1

The IPS test examines the null hypothesis:

H 0 : 1   2  ......   N  0, against
H a :  i  0, for some i.

The IPS statistic is defined as:

z  N t  E (t )/ Var (t ) ,

(9)

N

where

t  (1 / N ) t i . ti is the t statistics of ˆi  0 , E( t ) and Var( t ) are the mean and variance of t ,
i 1

respectively.
In recent years some tests for unit root within panels are developed in the literature. Pedroni (1995, 1999, 2000),
Phillips and Moon (1999), Kao (1999) and Kao and Chiang (2000) have developed panel cointegration test. This
paper uses the panel cointegration test of Pedroni (1999) to research the relationship between X and MM. The
equation for the panel cointegration tests for Pedroni (1999) is as follows:
(10)
X       MM   , i 1,...., N and t  1,....., T .
it

i

t

i

it

it

This formulation allows the investigation of heterogeneous panels, in which heterogeneous slope coefficients (  i ),
fixed effects (  i ) and individual specific deterministic trends (  i ) are permitted. This framework provides
cointegration tests for both heterogeneous and homogenous panels with seven regressors based on seven residual-

137

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

based statistics. Pedroni proposes these residual based tests for the null of no cointegration. Rejection of the null
hypothesis means that the variables under consideration are cointegrated.

The between-group panel FMOLS and DOLS estimators
To estimate the cointegration vector we will examine two panel cointegration estimators: the between group
fully modified OLS (FMOLS) and dynamic OLS (DOLS). Pedroni (2000, 2001) suggested two methods to apply
fully modified method to panel cointegration for FMOLS. One of them is the within-group (or pooled) panel
FMOLS estimator and the between-group (group mean) FMOLS estimator. In this study between-group FMOLS
estimator will be used.
Between group FMOLS estimators for equation (10) can be written as:
1

T
T

*
2 

N
(
MM

MM
)
(11)
i
1 
GMF
it
  ( MM it  MM i ) X it  Tˆi 
t 1
  t 1

ˆ
ˆ

*
21i
ˆ 0   21i (ˆ 
ˆ 0 ) . Between dimension
MM it and ˆi ˆ 21i 
where X it  ( X it  X i ) 
21i
22i
22i
ˆ
ˆ



ˆ *

1

N

22i

*
1
estimator is ˆGMF  N

22i

N


i 1

*
CFM ,i

where

*
 CFM
,i

is conventional FMOLS estimator applied to ith country of the
N

panel.

t-statistics

are

calculated

as

tˆ * N 0.5 t *
GMF

i 1

where

CFM ,i

0.5

t ˆ *

CFM , i

 (

*
CFM ,i

 1 T
2
  o ) 11
.
i  ( MM it  MM it ) 
t 1



Next, we construct the group mean panel dynamic ordinary least square (DOLS) estimator as:
N



1

 t 1

1
 

T

T

~~ 

*
̂ DOLS
 N 1   Z it Z it'   Z it X it 

where

Z it is a

  t 1

(12)



2( K 1)1 vector of regressors

Z it  MM it  MM it , MM it  K ,.., MM it  K

and

~~
N
*
*
X it  X it  X it . Between dimension DOLS estimator can be constructed as: ˆ DOLS
 N 1   CD
,i where
i 1



*
CD,i

is conventional DOLS estimator applied to i

th

country of the panel. The associated t-statistics can be

T


  o ) ˆ i2  ( MM it  MM it ) 2 
constructed as: t ˆ *
 N  t  * where t ˆ *  ( 
CD , i
DOLS
CD , i
t 1
i 1


T
 1
2
2
long-run variance of the residuals from the DOLS regression  i lim T  E T (it )  .
t 1


Data and Empirical Results
 0.5

N

*
CD,i

0.5

and the

Data
We use annual time series data, and the sample period is begin in 1981 and ends in 2008. The sample consists of
Indonesia, Malaysia, Philippines, Singapore and Thailand. All data are taken from the IMF‘s International Financial
Statistics. Exports (X) include exports of goods and services, while our measure of imports (MM) includes imports
of goods and services plus net transfer payments and net interest payments (see Husted, 1992). The consumer price
index (CPI) is used as a proxy for the national price level.

138

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

Empirical Results
In the first step, IPS panel unit root tests are applied. The results of panel unit root tests are presented in Table 1
and reported intercept and intercept with a trend both in levels and in first differences. It can be inferred from the
Table 1 that the unit root hypothesis cannot be rejected when the variables are taken in levels. However, when the
first differences are used, the hypothesis of unit root non-stationary is rejected. These results enable to test the
cointegration among variables in I(1) level.
Level
Variables
X

MM
*

z INT

Individual intercept
Individual trend and
intercept
Individual intercept
Individual trend and
intercept

First Difference
P**
*

z INT *

P**

z INT

2.30413
0.33663

0.9894
0.6318

-6.82184

0.0000

2.68661
-0.41857

0.9964
0.3378

-7.25144

0.0000

is the test statistic of Im et al. (1997)

** Probabilities are computed assuming asymptotic normality

Table 1. Panel unit root test for X and MM, 1981-2008.
Having established that all variables are integrated of the same order, we proceed with the panel cointegration
tests, which allow us to test for long-run relationship. Of the seven tests, the panel v-statistic is a one-sided test where
large positive values reject the null hypothesis of no cointegration whereas large negative values for the remaining
test statistics reject the null hypothesis of no cointegration. Table 2 shows both the within and between dimension
panel cointegration test statistics. With the exception of the group p-statistics, the other six test statistics reject the
null hypothesis of no cointegration. Null hypothesis of no cointegration is rejected at the 10% significance level for
panel v-statistics, 5% significance level for panel p-statistics, panel PP-statistics, panel ADF-statistics, group PPstatistics and 1% significance level for group ADF statistics. Therefore X and MM series appear to be cointegrated at
a reasonable significance level.
Within dimension Test statistics
Panel v-statistic
2.0133 ( 0.0526)
Panel p-statistic
-2.6650 (0.0114)
Panel PP-statistic
-2.6266 (0.0127)
Panel ADF statistic
-2.5619 (0.0150)

Between dimension Test statistics
Group p-statistic
-1.5757 (0.1153)
Group PP-statistic
-2.5097 (0.0171)
Group ADF statistic
-2.8055 (0.0078)

Note: the value in parentheses indicates probability values.

Table 2: Panel cointegration tests, 1981-2008
Finally, we estimate the cointegrating vector using two methods: the group-mean FMOLS and DOLS estimators.
We consider two cases: with and without common time dummies. Also respective t-statistics for Ho: βi=1 are
provided. Table 3 shows the estimate of cointegrating vector by period, using the between-group panel cointegration
technique. First, we look at the case of a without time dummy for each period. The group-mean FMOLS estimate of
regression coefficient is 1.11 and the DOLS estimate is 1.08 for the whole period. The coefficient is not significantly
equal to one for either method. When we consider two sub-periods (1981-1998 and 1999-2008), Table 3 also shows
that the coefficient is not significantly equal to one. The group-mean FMOLS estimate of regression coefficient is
1.07 and the DOLS estimate is 1.02 for 1981-1998 and FMOLS estimate of regression coefficient is 0.97 and the
DOLS estimate is 1.06 for 1999-2008.
Period
1981-2008
1981-1998
1999-2008
FMOLS
1.11 (8.12)*
1.07 (6.47)*
0.97 (2.20)*
Without Time
Dummies Between DOLS
1.08 (23.10)*
1.02 (6.72)*
1.06 (58.18)*
FMOLS
0.93 (-1.83)*
0.87 (-3.45)*
0.93 (-3.54)*
With Time
Dummies Between DOLS
0.74 (-2.41)*
0.83 (-4.20)*
0.91 (-8.37)*
Note: the value in parentheses indicates t-statistics for Ho:βi=1. * indicate rejection of null hypothesis. Between reports Pedroni
(1996) group-mean panel FMOLS and the group-mean panel DOLS introduced in this paper.

Table 3: Panel FMOLS and DOLS test results

139

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

We also look at the case of a time dummy for each period. The group-mean FMOLS estimate of regression
coefficient is 0.93 and the DOLS estimate is 0.74 for the whole period. When we consider two sub-periods we can
see that the coefficient using FMOLS is 0.87 for the period 1981-1998, whereas it is 0.93 for 1999-2008. The DOLS
estimate is 0.83 in the first sub-period and 1.06 in the second sub-period. The coefficient is not significantly equal to
one for all period and either method.
The presence of cointegration means that there are long run relationship between exports of goods and services
and imports of goods and services plus net transfer payments plus net interest payments. The coefficient is not
significantly equal to one but very close to one. These results show that the current account of these countries as a
panel is sustainable in the long run.

Conclusion
There is a growing literature that examines the sustainability of current account. Unit root and cointegration tests
have provided useful tools for the sustainability of current account. In the literature various type of unit root and
cointegration test are used for individual country or panel country group.
In this study, we use the panel data of export and import for five ASEAN countries using annual data from 1981
to 2008 and also two sub-groups (1981-1998 and 1998-2008). A relationship between export and import is
investigated by employing Pedroni (1999) panel cointegration method.
The empirical results of panel cointegration test show that export and import are co-integrated for whole period
and two sub-periods. In addition we apply panel FMOLS and DOLS estimators. Panel FMOLS and DOLS test
results show that the estimated cointegration factor, , is close to 1 but not significantly equal to 1. As a general
conclusion the finding show that ASEAN countries are likely to be sustainable countries in terms of current account.

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141

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

Outside the Homeland of the Turks Economic Potential of The Diaspora
Adem KALÇA
Associate Professor, Karadeniz Technical University,Trabzon,TURKEY
akalca@ktu.edu.tr
Atakan DURMAZ
Research Assistant, Bayburt University,Bayburt,TURKEY
adurmaz@bayburt.edu.tr
Abstract: Ethno-national diasporas occur from the homeland to one or a few countrıes that
accept guests mandatory or voluntary migration. These type of groups stay in the country
permanently. Diaspora is an ethnic unity that was created by people migrated by force or
voluntarily from the same ethnic origin of individuals in one or more countries to protect their
personal rights ts and to avoid losing their own identity. Diasporas, which were created for this
purpose at first, have become effective even in the administration of the country where they
exist, especially by gaining economic power. In the beginning of the purposes of the
diasporas, it comes not to lose their own identity and to secure them to get a regular
relationships with their home countries no matter where they live and no matter which country
they belong to. The possibility of foreign investment presented with this bond is so important
that it functions a lot in the development of the country. The possibility of foreign capital
which is offered by diaspoara is an important action in the development of home countries.
Countries have used the economic power of the diasporas with different instruments,and the
most common instrument is the diaspora debenture. Dispoara bond is a debenture which is
giyen to a country by a sub-dominant party or a private company to increase funding from the
diaspora abroad. It is an important source for the developing countries that various diasporas
of countries whose citizenship they accepted and their financial situations increases quickly. If
the flow of forein currency claims to set diaspora income in a way of regular basis, the
interests of the bond issues that from the hard money(currency) is a way to raise capital
abroad. Up to this day, Israel and India have reached 35-40 billion dollars by bringing these
bonds out. In this context, when the situation in Turkey is examined, especially Europe and
European Union countries must be taken into consideration primarily. Today, in European
Union countries, approximately 4.2 million Turkish citizens are living; it is nearly 5.7 million
with the new countries participating in the European Union. Annual per capita GDP of this
population is approximately 19.700 Euros. In addition, 80.7 billion Euros in 2006, Turkish
people contributed EU GDP 80.7 billion euros. In European Union countries in 2006, there
were 101,000 Turkish entrepreneurs with Turkish origins who had invested 10.9 billion euros;
they had 43.9 billion euros giro and provided employment for 474,000 people. Taking this
data and the coming footsteps of successful examples of Turkish Diaspora in Turkey into
account, we can create a growing economy and political power to be able to make signifıcant
contributions. The aim of the article which was prepared from the movement of the thesis is
to show that one of the instruments which can be used in supplying the foreign capital is the
power of diaspora. When the diasporas of Israel and India are taken into consideration,
emphasizing especially on that economical diasporas have an important place is the
demonstration of the power of Turks who act like a diaspora and live in Europe.
Keywords: Diaspora, diaspora bond, foreign capital, nationalism

Introduction
At the present time when the wa11s collapsed, when boundaries gradually disappeared, when the
protection with custom walls are replaced in free trade, and when the world became a global village step by step,
the next one is mobilization of capital in the entegration process starting with the mobilization of goods and
services and with the ongoing mobilization of labor. The governments and private sector members which are not
satisfied with the markets in their own borders have turned their eyes to the world market. While exporting
goods and services are the main goal of foreign trade, importing foreign capital was also added to this goal.
However, nowadays when even human is having difficulties in trusting his closest ones, it is not that easy to
import this foreign capital . In such a situation, one of the biggest alternative of the countries is the investors who
live abroad and who are from the same race. The nationalist movements which was born in 1789 with the French
Revolution is used for different purposes by various countries. The purpose of using this in 21st century, on the

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other hand, is the same: to provide foreign capital in the development of the country. So how? Now, with this
question, the concept of diaspora has appeared.
Diaspora; Ancient Grek: διαζπορά – that means ―scattering, broadcasting, scattering particles (Bergsten,
Choin, 2003). In the political literature: it is the name which is given to the spread of a folk or a nation from their
homelands to other countries.
In the present time when countries are running after foreign capital to finance their development and
growth, countries with a high economic power of diaspora have kept one step ahead of other countries.
The purpose of this article is to present the economic power of the Turkish diaspora in Europe and the
contribution to Turkish economy by considreing the contribution of Israel and the Indian diaspora to these
countries.

The Concept of Diaspora
Ethno-national diasporas occur as a result of mandatory or voluntary migration from homeland to one or
a few countries which welcome guests. This type of groups stay in the country permanently. Over the years,
scientists have tried to reduce that broad concept to a more special definition. Social scientists who study on
diaspora today use the concept of diaspora as synonymous of ―Overseas‖, ―ethnic‖, ―exile,‖ ―Minority,‖
―refugee,‘ ―immigrant,‖ expatriate ― etc (Ketkar, Ratha, 2007).
In 21st century, like many other concepts, the concept of diaspora has been so closely linked with
economy that it cannot be considered as just politically. In a strong position in America, the Jewish Diaspora has
a major impact on the U.S. government undoubtedly because of its largest share in the American economy.
The countries in homeland are now trying to enter into a closer relationship with diaspora. Especially in
the 21st Century Economies when foreign investment has come to a very important position, investments
provided from diaspora have come into prominence.
As the forerunners, Israel and Indian did, many countries are now trying to provide the inflow of capital
from diasporas by using different methods. Especially India and Israel have increased their growing trend with
this capital they provided.
In the following section, the methods Israel and India have used to support the inflow of capital and
their success will be reviewed.

Diaspora Bonds, Israel and India Case
Diaspora bond is a debenture which is given to a country by a sub-dominant party or a private company
to increase funding from the diaspora abroad (Ketkar and Ratha, 2007).
Various diasporas who accepted the citizenship of the countries where they live and the rapid rise of
their economic situation are both important financial resources and a kind of honor for developing countries. If
foreign exchange/currency demand claims on a regular basis diaspora income, diaspora is a way of securing
foreign capital in your country and to export the interests of the bond thanks to hard currency.
Diaspora bonds are not still widely used as an instrument of financial development. As mentioned
above, Israel, as of 1951, and India, as of 1991, have noted to increase strong currency finance from its own
diaspora. Bonds which were issued by Development Corporation for Israel (DCI) formalized and Israel has
secured foreign currency resources in a total of more than 25 billion dollars till today. The amount of bonds
which issued by Government-Owned State Bank of India (SBI) is today over 11 billion dollars.
Diaspora bonds are different from foreign currency deposits (FCDs) which many developing countries
uses to ensure the flow of currencies. Diasaora bonds are long-term bond guarantees (valuable paper) that are
typically paid back only over due date. However, FCDs, vice versa, can be withdrawn back at any time.
Certainly, this is valid for demand and saving deposits. Moreover, deposits can be withdrawn at any time by
giving up a portion of accrued interest. FCD is also tend to be more volatile (short term), so banks are required to
keep reserve in exchange for FCD commitments (debts). Thus, their likelihood of a fund investment (into
investment) is reduced. In contrast, diaspora bonds are long-term foreign financing sources. Therefore, income
of these bonds can be used to finance the investment (Ketkar and Ratha, 2007).
Buying the bonds issued by Development Corporation for Israel (DCI), the Jewish diaspora in United
States contributed to the economic development of Israel. DCI was established in 1951 with a public aim to
increase foreign currency sources of Israel through exportation of the bonds which cannot be endorsed. Israel
sees these financial intermediaries as an important instrument to continue the ties with the Jewish diaspora as
well as a constant foreign source in the cross sea countries. Diaspora can be also evaluated as a source of credit
especially when a country experiences debt distress from other extemal sources. We see time and amount
flexibility in bonds issued by DCI. DCI bonds are repaid at date of maturity and any kind of demand is not seen
before the date of maturity. Moreover, 200 million dollar of the expired bonds has not been demanded.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo
In 1951, the Israeli Knesset passed a law authorizing the floatation of the country‘s first diaspora bond issue
which is also known as the Israel's Independent Export Issue. Since the beginning of the program, the export
volume of these bonds has reached to 25 billion dollars. In May 1951, David Ben-Gurion, the first president of
Israel, officially launched the the sales of diaspora bonds of Israel in with a rally New York, USA and then to
support the sales of the diaspora bonds, he traveled to many countries especially where Jewish Diaspora exists.
This effort was so successful that Israel raised $52.6 million in its bond sales. In September 2005, DCI bonds,
composed roughly 32% of the Israel's external debt of $ 31.4 billion (Romano 1998).

1800

$ million

1.569

1400
962

1.000

1.145
924

872

785

1998

1999

2000

1000

1.310

600
0

1996

1997

2001

2002

2003

(Development Finance via Diaspora Bond)

Table 1: Israel‘s Total Diaspora Bond

In the early 1970s, all DCI bonds were the 10-15 year term fixed rate bonds. In the mid-1970s, DCI
aimed to introduce the exports of diaspora bonds to small banks and financial companies in the United States by
issuing 10, 7 and 5 year notes in denominations of $150,000, $250,000 and $1,000,000 at prime-based rates. In
the following years, DCI changed its policy and chose to target Jewish Communities again rather than banks or
companies. DCI sold its floating interest rates of bonds between 1980 and 1999. The minimum amount on
floating rate bonds was set at $25,000 in l980 and reduced to $5,000 in December 1986. The maturity terms on
these bonds were set at 10 to 12 years and the interest rate was calculated on the basis of the prime rate. Of the
total DCI bond sales of $1.6 billion in 2003, fixed rate bonds comprised 89.5 percent, floating rate bonds 2.9
percent and notes 7.6 percent (Ketkar and Ratha, 2006).
Instead of commercial/investment banks or brokers in the marketing of Israeli diaspora bonds, these
bonds directly were sold by DCI to New York Bank which serves a fiscal agent role. Today, there are about 200
DCI employees who are in a close relationship with Jewish communities in different regions of the United State
and thus trying to understand the vision and expectation of the investors. Their main aim is to contact with the
Jewish communities by regulating their investment activities and to sell the bonds. (Ei Qorchi 2005).
To get a long-term debt assurance, India run debt from its non-residence of diaspora of India as a result
of Development Bonds (IDBs)($1.6 billion dollar) following the 1991 balance of payments crisis,Resurgent India
Bonds (4.2 billion dollar) with the burden of the sanctions in 1998 Nuclear explosion and India Millennium
Deposits (IMDs) in 2000 ($5.5 billion).State Bank of India_(SBI) played a role as a mediator. During the years
when the country experienced a balance of payment crisis, IDBs chose to use NRS, non-resident of India, as a
means of fund rather than the currency of foreign investors. IDB, RIBs and IMDs supplied investors a higher
return than they would have received from similar financial instruments in their country of residence.
Furthermore, India benefited as well, because the diaspora investors don't not seek a return as high as they
normally would have demanded from markets. When this may have reflected different assessments of default
probabilities, a more plausib1e explanation resides in investors of Indian origin viewing the risk of default with
much less trepidation(Murray 2006).

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

Bond Type

Amount

Year

Maturity

Minimum

India
Development
Bond
USD
GBP

$1.6 bn

1991

5 years

Not available

Resurgent
India Bond
USD
GBP
DM

$4.2 bn

India
Millennium
Deposits
USD
GBP
EUR

$5.5 bn

Coupon

9.50%
13.25%
1998

2000

5 years
2,000*
1,000**
3,000*

7.75%
8.00%
8.25%

2,000*
2,000*
2,000*

8.50%
7.85%
6.85%

5 years

(Development Finance via Diaspora Bond)

Table 2. Diaspora bonds issued by India
The IDBs, RIBs and IMDs alI had fıve-year bullet maturity. The issues were done in multiple
currencies such as US dollar, British pound, Deutsche Mark/Euro. In contrast to Jewish diaspora, Indian diaspora
did not provided any patriotic discount on RIBs, except a small discount on IMDs. When‘RIBs were sold in
August 1998 to yield 7.75 percent on U.S. dollar-denominated bonds, the yield on BB-rated U.S. corporate
bonds was 7.2 percent. There was thus no discount on the RIBs. As for the IMDs, the coupon was 8.5 percent
while the yield on the comparably rated U.S. corporate bonds was 8.9 percent for a 40 basis points discount. in
any case, Indian diaspora
bonds provided much smaller discounts in comparison to Ġsrael‘s DCI bonds (Zakaria, 2006).
India

Israel

Annual issuance since 1951

Opportunistic issuance in 1991, 1998 and
2000

Development oriented borrowings

Balance of payments support

Large though declining patriotic discount

Small patriotic discount, if any

Fixed, floating rate bonds and notes

Fixed rate bonds

Maturities from 1 to 20 years with bullet

SBI distribution in conjunction with int'l

repayment

banks

Targeted towards but not limited to

Limited to diaspora

diaspora
SEC registered

No SEC registration

Non-negotiable

Non-negotiable
(Development Finance via Diaspora Bond)

Table 3. Comparison of diaspora bonds issued by Israel and India

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

Structure of the Turkish Diaspora
In fact, it is not possible to say that Turkey has the official definition of diaspora. However, by taking
this definition from a broad angle, it is possible put Turkish people living outside of Turkey into this diaspora.
Most of the Turks living abroad accepted the citizenship of the country they live, gathered under the umbrella of
various associations and institutions; however, they could not transform their associations into to a economic
diaspora which will be in cooperation with homeland.
The capital flow which started the international workers‘ has emerged as a result of the labor migration
flow which was from Turkey to Western Europe in 1961 and it has importantly contributed to economy of
Turkey for many years. The economic, demographic and socio-economic conditions of Western Europe
Countries during the previous years has a great affect on the decision of Turks who went to Europe from Turkey
to find a job (Artukoğlu,2005).
As a capital flow, the currency which had been sent by the workers abroad, of course,cannot be
ignored; however, There are lots of people, whose number is quite enormous, live abroad especially in European
Union Countries and many of them have the citizenship of the country where they live and occupy themselves
with commerce. When the savings of those Turkish entrepreneurs is thought, the first question must be about
―how to take this savings into the homeland.‖ The method which first comes to mind should be about power of a
diaspora which will create a closely related economy with Turkey that is the homeland.
With the aim of indicating the importance of this topic, the structure of Turkish population, or the
economic and social conditions of them living in Europe , will be tried to unfurl in the digital data.

Turkish Population in EU Countries
According to the research made by Turkey Research Center, by the end of 2006, numbers of the
Turkish immigrants living in European Union countries has reached 4.2 million. This number reach 5.7 million
when the number of 150.000 Western Thrace Turkish of Greece citizenship, minorities living in Romania and
Bulgaria which are included EU from the date of January, 1 2007 is added. This number is more than 8 members
of EU which has totally 27 members.
Turkish origin immigrants are the largest national immigrant group in EU. Even if it is almost
impossible to determine the total immigrant population living in the EU, the various studies show that there are
about 25 million foreigners living in the EU. When the number of people who are immigrant origins are added
into this number, it reaches over 40 million.
Another feature of the Turkish immigrants in contrast to other immigrant populations is that they are
being intensified in almost all EU countries. Furthermore, 42.1% of that 4.2 million Turks living within the
borders of the EU has the citizenship of the countries where they live.
Datas

Turkish Origin Population(1000)
Total Population
Turkish Citizen

Turkey-based European Turks
130
Belgium
56
Denmark
2.710
Germany
380
France
365
Netherlands
233
Austria
63
Sweden
150
United Kingdom
130
Other 19 EU Countris
Total(1)
4.217
Minority Turks
150
Greek
750
Bulgaria
70
Romania
Total(2)
970
EU-27 Total(1+2)
5.187
(Turkey Research Center )

Citizenship
host country's
citizens

Naturalization
Rate

40
29
1.760
200
99
110
12
70
120
2.440

90
27
950
180
266
123
51
80
10
1.777

69,2
48,2
35,1
47,4
72,8
52,8
80,9
62,5
7,7
42,1

2.440

150
750
70
970
2.747

53,0

Table 4: The Turkish population in EU countries(2006)

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Economic Dimensions of Turkish households in EU countries
According to the research carried by Turkey Research Center, by the end of 2006, average size Turkish
households was calculated as 4 people, and the income of household was also calculated as 2.130 EURO. A big
part of this income (Euro 1800) is spent for the consumption and livelihood of a family and the savings are
approximately 330 euros for each person. The annual net income of all Turkish households in EU countries is
26.9 billion euros. 4.2 billion euros of this annual is being saved.
The labor migration, which was in the 1960s, became an important way of saving and this saving was
assessed in the homeland. European Turks can adopt themselves into the society they are living with their both
consumption and saving attitudes.
Data
Population
The total number
of Turkish citizens
Citizens of EU
Countries
EU'sTotalPopulati
on
of
Turkish
Origin
Household
Total households
Turkish origin
Average monthly
net
household
income(Euro)
The average net
annual household
income(Euro)
The total annual
net
household
income ( Billion
Euro)
Average annual net
consumption
expenditure
(Billion Euro)
Average annual net
savings

2000

2002

2004

2006

2.670.00
0
790.000
3.460.00
0

2.500.00
0
1.270.00
0
3.770.00
0

2.455.00
0
1.448.00
0
3.903.00
0

2.440.00
0
1.777.00
0
4.217.00
0

865.000

944.000

976.000

2.170

2.080

2.100

1.054.00
0
2.130

26.040

24.960

25.200

25.560

22,5

23,6

24,6

26,9

18,5

19,0

19,9

22,7

4,0

4,6

4,7

4,2

(Turkey Research Center)

Table 5:Turkish citizens and Turkish origin of households Economic power in the EU

Economic Contribution of Turks working in Europe Countries
A population of approximately 1.372 million out of 42 million living in Europe constitutes working
population. The unemployment rate among Turks is over unemployment rate in the country they are 1eaving.
The reason of this is that the average age of Turkish population is smaller and the rate of working women is
lower than the total population in EU countries.
In European Union countries, the 1372 million working Turks who makes up the 0.69 of the total
working population have contributed approximately 80.7 billion Euros to the EU‘s current prices Gross
Domestic Product(GDP)in the year 2006 (TAM,2006).

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

Category

Total Datas

The data for Turks/contribution

Total Population EU-25(1000)

463.523,4

4.217,0

Total Population EU-15(1000)

389.432,9

4.100,0

Working
population
EU25(1000)
Freelance Staff EU-25(1000)

197.476,8

1.372,0

25.500,0

101

Rate of Freelance Staff EU25(%)
GDP EU-15(Billion Euro)
GDP EU-25( Billion Euro)

12,9

7,4

10.769,8
11.373,6

80,7
80,7

(Turkey Research Center)

Table 6: The total population of working in the EU and the Turkish population‘s income data
In 2006, the 80.7 million Euros contribution of 4.1 million Turks living in former UE countries with 15
members to AB GSYĠH exceeds the contribution of 8 counties out of 25 EU members to GSYĠH.
Country
Belgium
Denmark

Total
Euro)
313,0
221,4

GDP

(Billion

Contribution of the
Turks (Billion Euro)
2,2
1,6

Distribution( %)

Germany

2.307,9

53,4

66,2

France

1.781,1

7,5

9,3

Netherlands

528,0

8,1

10,0

Austria

256,4

4,6

5,7

Sweden

305,2

1,0

1,2

United Kingdom

1.892,7

1,8

2,2

Other EU Countries

3.767,9

0,5

0,6

GDP EU-15

10.769,8

80,7

100

EU-25

11.373,6

80,7

100

2,7
2,0

(Turkey Research Center)

Table 7: Turks working in the EU Contribution to Gross Domestic Product( 2006/current prices)
Turkish population working in former 1 5-member European Union countries had 0.75 percent share
from EGDP in the year 2006. European Turks rate in the population ratio remains at the level of 1 percent. The
main reason why their unemployment is twice bigger than the unemployment of the country they are living in is
that the economic contribution of the Turks is lower in population portion.
When compared with 25 EU Countries, European Turks leave 12 EU member countries behind in the
GDP.
Country
EU-15(Million Euro)
EU-25(Million Euro)
EU-15( Million Population)
EU-25( Million Population)
EU-15 per capital GDP(Euro)
EU-25 per capital GDP(Euro)

Total
19.769,8
11.373,6
389,4
463,5
27.600
24.500

Turks
80,7
80,7
4.1
4.1
19.700
19.700

(Turkey Research Center)

Table 8:Turks living in EU and EU countries in per capita Gross Domestic Product

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

When compared with per capita GDP figures, the annual 19,700 Euro and the Turkish workers reach 71
percent of overall 15 EU members (27 600 Euros).

Economic Power of the Turkish Eııtrepreneurs in the EU Countries
Among 1.372 million Turks working in EU countries, the proportion of entrepreneurs remains at 7.4
percent in 2006. The proportion of entrepreneurs in the European Union (excluding agriculture) is 13.1 percent

(Turkey Research Center)

Chart 1: Development of Turkish entrepreneurs in the EU countries (1996-2006)
Despite the big difference, the increase of the number of entrepreneurs among Turks is stand-out for our
future appraisal. These figures show a change from unemployment to self-entrepreneurship.
Data
Population
The total number of
Turkish citizens
Citizens of EU Countries

2000

2002

2004

2006

2.670.000

2.500.000

2.455.000

2.440.000

790.000

1.270.000

1.448.000

1.777.000

EU'sTotalPopulation of
Turkish Origin
Household
Total
households
Turkish origin
Average monthly net
household income(Euro)
The average net annual
household income(Euro)
The total annual net
household
income
(
Billion Euro)
Average annual net
consumption
expenditure
(Billion
Euro)
Average annual net
savings

3.460.000

3.770.000

3.903.000

4.217.000

865.000

944.000

976.000

1.054.000

2.170

2.080

2.100

2.130

26.040

24.960

25.200

25.560

22,5

23,6

24,6

26,9

18,5

19,0

19,9

22,7

4,0

4,6

4,7

4,2

(Turkey Research Center)

Table 9: Turkish entrepreneurs in the European Union's Economic Power(1996-2006)
According to the survey, results made by Turkey Research Center: While Turkish entrepreneurs in the
EU in 1996 are 56.500, in 2006 it has reached 101.000.
Periods between 1996 and 2006, the total annual of free Turkish entrepreneurs came to 43.9 billion
Euros from 21.8 billion Euros. The same growth can be seen in the volume of investment and employment
figure. Growth rates in investment increased from 5.6 billion Euros to 10.9 billion Euros during the same period.

299

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

The growth rate of the volume of the investment is 94.6 percent. In the same period, total employment number
increased to 474.000 from 232.000
Datas
Sum
Average investment per
business(Euro)
Total
Investment(Billion
Euro)
Average
turnover
per
business(Euro)
Total
annual
turnover(Billion Euro)
The average number of
employees per business
the
total
number
of
employees

1996
56.500
99.500

1998
67.400
104.800

2000
80.600
110.400

2002
82.300
112.000

2004
91.200
110.200

2006
101.000
108.000

5,6

7,0

8,9

9,2

10,1

10,9

386.500

425.400

432.000

425.000

417.600

435.000

21,8

28,7

34,8

35,0

38,1

43,9

4,1

4,8

5,2

5,0

4,9

4,7

232.000

323.000

419.000

411.000

446.900

474.000

(Turkey Research Center)

Table 9: Turkish entrepreneurs in the European Union's Economic Power(1996-2006)
According to estimates of the same center by taking into consideration of the historical data, in 2015,
the population of Turkish origin living in the EU-15 countries is expected to reach 5 million. Turks living in
Romania, Bulgaria and Greece are not included in this study. The estimations done with the help of existing data
claims that the number of Turkish entrepneurs will double in 2015. ıf it is thought that there are 91,200 Turkish
entrepreneurs in Europe, it is estimated that the number of Turkish entrepreneurs will be totally 160,000 in
Europe in 2015.
The estimations show that today 447.000 people are employed in the workplace of 91.200 Turkish
entrepreneurs in EU-15 countries and that this number will be probably 960,000 in 2015.
Datas

Germany

EU

Sum

120.000

160.000

Total Investment(billion Euro)

15.3

20.5

Total annual turnover(billion Euro)

66.5

87.0

Total number of employees

720.000

960.000

(Turkey Research Center)

Table 10: In 2015 the Turkish entrepreneurs in Germany and EU Economic Power

The Result
In the development of the country, it is understood that resting only the internal resources and making
the foreign trade only with export of goods are not suflicient. Countries depends on foreign capital more than
ever while improving their development. Even the world‘s most powerful economies cannot help being caught
up with the magic of foreign capital. Turkey needs foreign capital in order to increase a position to cornpete with
the strong economies. However, the countries with very delicate balance like Turkey and with high rates of risk
have to be much more careful to obtain these investments which are extremely scary.
In such a situation, having a world wide population which cannot be underestimated, Turkey‘s heading
towards this source seems very reasonable. The interest payments which takes almost 60% of the budget of
Turkey are the result of the debt to payments with high interest rate is known by everyone. A diaspora which will
be created by Turks living abroad will be able both to help in economical development of Turkey by moderating
this heavy burden and to support from inside during the EU process.
It is tried to be explained how this unity can be established and how to take economical support from the
examples of Israel and India in this article. When the economic data in Europe is examined, it can be seen the
investment potential of Turkish diaspora is aproximately 40 billion TL. When it is thought that Turkey‘s budget

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

deficit is 52 billion TL and if this investment potantial is transferred into Turkey, it is obvious how much it will
contribute to the national economy.
But the thing that should not be forgotten is that such a process must be established not by the private
sector, but by the government‘s plan and its the active role. Even this process is left to private companies, every
stage of government formation should be monitored closely and be interfered when necessary. This will both
increase the confidence of citizens and prevent the repetition of frauds carried out in account of personal interests
in the past.

References
Chander, Anupam. 2005. ―Diaspora Bonds and US Securities Regulation: An Jnterview‖, Business Law Review, University
of California, Davis, School of Law, May 1, 2005.
Chander, Anupam. 2001. ―Diaspora Bonds,‖ 76 New York University Law Review 1005, October.
C. Fred Bergsten and Inbom Choi,‖The Korean Diaspora in The World Economy‖,Washington,D.C,January 2003
El Qorchi, Mohammed. 1005. ―lslamic Finance gears Up,‖ Finance c Development, Volume 42, Number 4, international
Monetary Fund, December.
Fred W. Riggs,‖Diasporas and Ethnic Nations causes and consequences of Giobalization‖,
www2.hawaii.edulftedr/diaglo.htm, 15 Nisan 2001
Gallya Lahav and Asher Arian,‖Jsraelias in ajewish Diaspora: The Multiple Dilemmas of a Giobalized Group‖,
www2.hawaii.edulfredr/lahav.htm, 19 Nisan 2001
Oğuzhan Sokmen Artukoğlu, YurtdıĢı ĠĢçi Tasarruflarının Türkiye Cumhuriyet Merkez Bankası, Banka Sistemi Ve Türkiye
Ekonomisi Üzerine Etkileri, Uzmanlık Yeterlilik Tezi, Ankara, 2005 Kasım
Rehavi, Yehiel and Asher Weingarten. 2004. ―Fifty Years of External Finance via State of lsrael Non-negotiable Bonds,‖
Foreign Exchange Activity Department, Assets and Liabilities Unit, Bank of Israel, September 6.
Romano Roberta. 1998. ―Empowering investors: A Market Approach to Securities regulation,‖ 107 Yale Law Journal 2359,
2424.
Suhas L. Ketkar And Dilip Ratha, Development Finance Via Diaspora Bonds Track Record And Potential, Paper Presented
At The Migration And Development Conference At The World Bank, Washington DC. May 23, 2007.
Gabi SHEFFER, ―Middle Eastern Diasporas: Introduction and
Readings‖,wwwc.cc.columbia.edulsec/dlc/ciao/olj/merialmeria797sheffer.htm, 17 Nisan 2001
Türkiye AraĢtırmaları Merkezi Vakfı, Hollanda ve Avrupa Birliği‘ndeki Türk Nüfusu, Hane verilen ve giriĢimcilerin
ekonomik gücü, Nisan 2007, Essen
World Bank. 2005. Global Economic Prospects 2006: Economic Impiications of Remittances and Migration, Washington,
D.C.
http://tr.wikipedia.org/wiki/Diaspora
www2.hawaii.edulgredr/diacon.htm
Zakaria, Fareed. 2006. ―How Long Wiil America Lead the World,‖ Newsweek, June 12.

301

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                <text>Ethno-national diasporas occur from the homeland to one or a few countrıes that  accept guests mandatory or voluntary migration. These type of groups stay in the country  permanently. Diaspora is an ethnic unity that was created by people migrated by force or  voluntarily from the same ethnic origin of individuals in one or more countries to protect their  personal rights ts and to avoid losing their own identity. Diasporas, which were created for this  purpose at first, have become effective even in the administration of the country where they  exist, especially by gaining economic power. In the beginning of the purposes of the  diasporas, it comes not to lose their own identity and to secure them to get a regular  relationships with their home countries no matter where they live and no matter which country  they belong to. The possibility of foreign investment presented with this bond is so important  that it functions a lot in the development of the country. The possibility of foreign capital  which is offered by diaspoara is an important action in the development of home countries.  Countries have used the economic power of the diasporas with different instruments,and the  most common instrument is the diaspora debenture. Dispoara bond is a debenture which is  giyen to a country by a sub-dominant party or a private company to increase funding from the  diaspora abroad. It is an important source for the developing countries that various diasporas  of countries whose citizenship they accepted and their financial situations increases quickly. If  the flow of forein currency claims to set diaspora income in a way of regular basis, the  interests of the bond issues that from the hard money(currency) is a way to raise capital  abroad. Up to this day, Israel and India have reached 35-40 billion dollars by bringing these  bonds out. In this context, when the situation in Turkey is examined, especially Europe and  European Union countries must be taken into consideration primarily. Today, in European  Union countries, approximately 4.2 million Turkish citizens are living; it is nearly 5.7 million  with the new countries participating in the European Union. Annual per capita GDP of this  population is approximately 19.700 Euros. In addition, 80.7 billion Euros in 2006, Turkish  people contributed EU GDP 80.7 billion euros. In European Union countries in 2006, there  were 101,000 Turkish entrepreneurs with Turkish origins who had invested 10.9 billion euros;  they had 43.9 billion euros giro and provided employment for 474,000 people. Taking this  data and the coming footsteps of successful examples of Turkish Diaspora in Turkey into  account, we can create a growing economy and political power to be able to make signifıcant  contributions. The aim of the article which was prepared from the movement of the thesis is  to show that one of the instruments which can be used in supplying the foreign capital is the  power of diaspora. When the diasporas of Israel and India are taken into consideration,  emphasizing especially on that economical diasporas have an important place is the  demonstration of the power of Turks who act like a diaspora and live in Europe.</text>
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                    <text>2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

The Role of Energy Economics in Sustainable Development
Tuğrul KANDEMĠR
Faculty of Economics and Administrative Sciences
Afyon Kocatepe University
Turkey
kandemir@aku.edu.tr
Mehmet Emre GÖRGÜLÜ
Faculty of Economics and Administrative Sciences
Afyon Kocatepe University
Turkey
egorgulu@aku.edu.tr

Abstract: For a growing country, the most needed stimulus is energy. Without any access to
adequate energy resources it is hard for a growing country to sustain economic development.
Especially after the 1973 Oil Crisis, the importance of energy resources has been well
understood. Most of the developed countries took measures to avoid the undesirable effects of
reliance on these energy resources since then. This page of the history has contributed the
most to the evolution of the modern day energy economics field. Thenceforth the developing
and the developed world rang the changes to manage their energy policies effectively.
Sustainable development on the other hand - most broadly - implies the effective use of
resources aiming at development not just for present but also for future generations. As
effective managing of the energy policy would entail reaping benefits in the long run, energy
economics becomes a field with crucial role in sustainable development. Therefore, this paper
promotes the effective use of energy resources for a growing country from both perspectives
of energy economics and sustainable development.

Keywords: Energy Economics, Sustainable Development, Effective use of Energy
Resources.

Energy Economics
For a growing country, the most needed stimulus is energy. Without any access to adequate energy
resources it is hard for a growing country to sustain economic development. In this direction, most broadly,
energy economics is the field that deals with efficient usage of the energy resources. As Sweeney states (2001,
pp. 3-4), according to the energy economics standpoint, energy is neither created nor destroyed (except through
nuclear reactions) but energy can be transformed among its various forms. Moreover, energy comes from the
nature and ultimately is released back into the nature. Therefore, in Sweeney‘s own words (Sweeney, 2001, pp.
4-5) ―energy economics is the field of human activities using energy resources from naturally available forms,
through often complex conversion processes, to forms providing energy services‖.
Fossil fuels occupy a remarkable place in the energy economics field. Prior to the 1970s, particularly the
oil market worked unilaterally to the benefit of some major Northern oil companies. Seven large oil companies
known as the ―Seven Sisters‖ dominated the world oil market. The oil-producing countries, especially those in
the Middle East, should have been the rightful owners of their oil resources, but instead they found themselves
almost entirely dependent upon the ―Seven Sisters‖ for the revenues from their oil resources. This dependency
stemmed from the fact that none of those oil-producing countries had the necessary skills, technology or
marketing abilities to turn their resources into cash (Lairson and Skidmore, 1993; Van Suntum, 2005).
In the 1970s, however, the ownership rights of oil began to relay. Political situation in oil-producing
areas of the world gave rise to a boost of economic power of Organization of Petroleum Exporting Countries
(OPEC). In 1973, as a response to US and other Western support to Israel in Yom Kippur War against Egypt, the
Arab members of OPEC cut oil production in remarkable portions and announced an embargo on oil deliveries
to those countries. As a result of those actions, in a market with tight supply conditions namely tight worldwide
oil production capacity, it was inevitable to face with sharp increases in the world price of oil. This was a major

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

indication of relaying ownership rights of oil in favor of oil-producing countries (Lairson and Skidmore, 1993;
Van Suntum, 2005).
It was 1973 Oil Crisis that marked a milestone in the pages of the history. It was that date the economic
system as we know today has been founded. The 1973 crisis was a major cause of the end of the previous
economic system of Bretton Woods. It changed the level of world price of oil and the prices remained in high
levels well after the crisis. Especially after the 1973 Oil Crisis, the importance of energy resources and therefore,
energy economics has been well understood. Most of the developed countries took measures to avoid the
undesirable effects of reliance on these energy resources since then. This page of the history has contributed the
most to the evolution of the modern day energy economics field. Thenceforth the developing and the developed
world rang the changes to manage their energy policies effectively. After this first crisis, particularly US had
realized how dependent she was to the imported oil. Then US decided to carry out policies to lessen the effects
of this dependency (Sweeney, 2001). Accordingly US approached to Kingdom of Saudi Arabia as a new
strategic partner. The importance of this act solely lies in the fact that Saudi Arabia is one of the co-founders of
OPEC and is the largest oil exporter. This partnership with Saudi Arabia led US to secure its oil importing future
free from any other embargos - at least not from Saudi Arabia, given that Saudi oil reserves would have met US
oil demands at that time. These developments after the first oil crisis are very crucial to understand the role the
energy economics played in shaping the new world order.
Today, energy economics is somehow underlies nearly every international political issue. Even though
those issues would seem to be political at the first glance, the energy needs are the motivating factor for almost
all of them. The First Iraq War (The Gulf War) and the ensuing Iraq invasion by US and the dangerous political
game that US plays with Iran nowadays are all point out the fact that depicted above. Even though the fight for
energy resources left its mark on the last century, it has been sharply intensified in the latest decades. As shown
in Figure 1 below world total energy consumption has continued to rise in the last three decades. Moreover fossil
fuels‘ share in world total energy consumption remains at top for the same period and gives us the strong
indication that they will remain as the primary energy resource for the next century. If world‘s energy demand
will continue to rise as it did in the last century - last three decades in particular - then this is going to be a clear
indication of increasing importance of energy economics field. Thus, Figure 1 particularly suggests that energy
economics gains importance within last three decades.
Figure 1 - World Energy Consumption Between 1980-2006
500
Petroleum

Quadrillion (1015) British Thermal Units (Btu)

450
400

Natural Gas

350
Coal

300
250

Hydro

200
Nuclear

150
100

Geothermal, Solar,
Wind, Wood and
Waste

50

20
06

20
04

20
02

20
00

19
98

19
96

19
94

19
92

19
90

19
88

19
86

19
84

Total Energy

19
82

19
80

0

Source: EIA 2008, International Energy Annual 2006

In addition, energy economics is also related with the levels of development of the countries. As the
level of development of a country increases, her energy need will also increase accordingly. Figure 2 below
shows world energy consumption by regions. We can observe from the figure that in relatively more developed
regions such as North America, Europe, Asia and Oceania the energy demand is far more beyond than the need
of relatively less developed - or developing – regions such as Africa or the Middle East.

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

Figure 2 - World Energy Consumption by Regions Between 1980-2006
180
North America

Quadrillion (1015) British Thermal Units (Btu)

160
Central and South
America

140
120

Europe

100
80

Eurasia (Eastern
Europe &amp; Former
Soviet Union)

60

Middle East

40
Africa
20
Asia &amp; Oceania
20
06

20
04

20
02

20
00

19
98

19
96

19
94

19
92

19
90

19
88

19
86

19
84

19
82

19
80

0

Source: EIA 2008, International Energy Annual 2006

Therefore, the effective use of energy economics whets developed countries‘ appetite on one hand, and
on the other hand, is of vital importance for developing countries in the long road of development. The new
technologies that developed for seeking new fossil fuel reserves, efforts to make existing resources more
efficient and investments in alternative energy resources are all indicators that shows us how dynamic the energy
economics field is. As effective managing of the energy policy would entail reaping benefits in the long run,
energy economics becomes a field with crucial role in sustainable development.

Sustainable Development Perspective
United Nations World Commission on Environment and Development in their famous Brundtland
Report (1987, p. 43) defines sustainable development 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‖.
In line with this definition sustainable development implies the effective use of finite resources aiming at
development not just for present but also for future generations.
Contrary to general conception, major part of the energy economics field particularly concerned with
fossil fuels or nuclear energy, when proposes procedures to improve the efficiency of their usage in a cleaner and
safer way, can make a remarkable contribution to sustainable development field.
As the countries continue to develop, their energy needs tend to increase directly proportional to their
level of development and to their population. World‘s total energy need is depicted below in Figure 3. According
to International Energy Outlook 2009 projections (EIA, 2009), world‘s energy demand will increase
substantially in the near future. However, as our primary energy resources are limited, how we will meet these
energy needs is a question of effective usage of energy economics in a sustainable development perspective.

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Figure 3 - World Total Energy Consumption Realized (1980-2006) &amp; Projections (2007-2030)

Quadrillion (1015) British Thermal Units (Btu)

800
700

678
637

600

596
552
508

500

472

400

398
348

300

283

366

308

200
100
0
1980

1985

1990

1995

2000

2006

2010

2015

2020

2025

2030
World Total

Source: EIA 2009, International Energy Outlook 2009

At this point, with the help of Table 1 and Table 2 below, we can have an idea about the remaining
lifetime of our primary fossil fuels, oil and natural gas respectively. If we keep our present levels of oil
production also in the future, then we can observe from Table 1 that on average remaining oil reserve lifetime
will be around 58 years.

Table 1: World's Top 15 Oil Reserves

Countries

Oil - Proved reserves Oil
Production Oil
Production Reserve Life in
bbl (2009 est.)
bbl/day (2008 est.) bbl annual
Years*

Saudi Arabia
Canada
Iran
Iraq
Kuwait
Venezuela
United Arab Emirates
Russia
Libya
Nigeria
Kazakhstan
United States
China
Qatar
Brazil
Total

266,700,000,000
178,100,000,000
137,600,000,000
115,000,000,000
101,500,000,000
99,380,000,000
97,800,000,000
79,000,000,000
43,660,000,000
36,220,000,000
30,000,000,000
21,320,000,000
15,550,000,000
15,210,000,000
12,620,000,000
1,249,660,000,000

10,780,000
3,350,000
3,707,000
2,420,000
2,274,000
2,643,000
3,046,000
9,810,000
1,875,000
2,169,000
1,528,000
8,514,000
3,795,000
797,000
2,422,000
59,130,000

3,934,700,000
1,222,750,000
1,353,055,000
883,300,000
830,010,000
964,695,000
1,111,790,000
3,580,650,000
684,375,000
791,685,000
557,720,000
3,107,610,000
1,385,175,000
290,905,000
884,030,000
21,582,450,000

68
146
102
130
122
103
88
22
64
46
54
7
11
52
14
58

* Proved Reserves / Annual Production ratio gives the estimated remaining reserve lifetime, given that
production remains constant.
Source: All values have been taken from CIA, the World Factbook (2010).
With same conditions in effect 62 years will be the approximate reserve lifetime for natural gas as
shown in Table 2. Thus, keeping present levels of energy production from limited resources becomes more
difficult each day. Consequently, more efficient, alternative solutions are urgently needed in the field of energy
economics.

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Table 2: World's Top 20 Natural Gas Reserves

Countries

Natural Gas - Proved Reserves Natural Gas Production Reserve
cubic meters (2009 est.)
cubic meters (2008 est.)
Years*

Russia
Iran
Qatar
Turkmenistan
Saudi Arabia
United States
United Arab Emirates
Nigeria
Venezuela
Algeria
EU
Iraq
Indonesia
China
Kazakhstan
Malaysia
Norway
Egypt
Uzbekistan
Canada
Total

43,300,000,000,000
29,610,000,000,000
25,260,000,000,000
7,940,000,000,000
7,319,000,000,000
6,731,000,000,000
6,071,000,000,000
5,215,000,000,000
4,840,000,000,000
4,502,000,000,000
3,605,000,000,000
3,170,000,000,000
3,001,000,000,000
2,460,000,000,000
2,407,000,000,000
2,350,000,000,000
2,313,000,000,000
2,190,000,000,000
1,841,000,000,000
1,640,000,000,000
165,765,000,000,000

662,200,000,000
116,300,000,000
76,980,000,000
34,000,000,000
80,440,000,000
582,200,000,000
50,240,000,000
32,820,000,000
24,010,000,000
86,500,000,000
286,590,000,000
1,880,000,000
70,000,000,000
76,100,000,000
35,610,000,000
57,300,000,000
99,200,000,000
62,700,000,000
67,600,000,000
170,900,000,000
2,673,570,000,000

Life

in

65
255
328
234
91
12
121
159
202
52
13
1686
43
32
68
41
23
35
27
10
62

* Proved Reserves / Annual Production ratio gives the estimated remaining reserve lifetime, given that
production remains constant.
Source: All values have been taken from CIA, the World Factbook (2010).
In this context the problem of fair allocation of energy resources among nations, within nations and
most importantly among generations arises. If we leave the first two to international and domestic politics, then
sustainable development is the field to deal with the problem of fair allocation of energy resources among
generations. As Van Suntum (2005, p.133) indicates from a sustainable development standpoint, it should be
expected that all future generations should have the opportunity to access the energy resources that we use today.
But fair allocation of a depletable energy resource among generations is not easy as it sounds. Since depletable
energy resources - let say oil - are limited, even if the present generation consumes a little oil, it will nevertheless
consume some share of the future generation. Thus, Van Suntum (2005, p. 133) argues that only optimal
consumption of oil for the present generation to achieve sustainable development would be zero. However, he
also adds, zero-consumption would not generate any benefit for any generation. Therefore, as a theoretical
answer to the sustainable development question we can rule out the solutions based on absolute re-allocation of
energy resources among generations. Instead the solution lies in either promoting the usage of alternative nondepletable energy resources or making the usage of existing fossil fuels more efficient.

Making “It” More Efficient
The problem with alternative clean energy resources is that they are either too expensive or inefficient.
However, making widely used fossil fuel based energy resources much cleaner and improving safety regulations
on nuclear energy usage would definitely yield far more efficient results in energy economics.
Moreover, most processes of production and consumption of energy cost environmental damages.
Among those damages, most widely known and most notable one is the combustion of fossil fuels which causes
the release of greenhouse gases - in particular carbon dioxide - into the air. However, those environmental costs

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are generally not reflected to the prices of energy consumption which in return generates unconscious
consumption of energy (Sweeney, 2001). As Sweeney suggests (2001, pp. 20-21), one solution could be
assigning monetary values of those costs and therefore, limit the unconscious consumption of energy.
From a sustainable development standpoint, as Bertel and Morrison (2001) state nuclear energy - as it
embodies long term commitments from decision makers - could also offer an attractive alternative way to
approach efficiently to energy economics field. Although investments on nuclear energy is expensive, once
ready to use they have low input and operating costs, which will enable them to amortize their initial investment
- generally more than two decades (Bertel and Morrison, 2001, p. 14). According to Bertel and Morrison (2001,
p. 14), the technical lifetimes of nuclear plants can reach more than 60 years which is in fact in line with
sustainable development perspective of decision makers. Moreover, production of nuclear energy process needs
limited amounts of resources due to effective energy output of nuclear energy. Natural resources that are inputs
for the production of nuclear energy process - mainly uranium and thorium - are relatively cost efficient, easily
accessible and are generally only able to be used in the process of nuclear energy production. Easy access to
those resources and the opportunity to store nuclear energy for years enable us to overcome any potential supply
shortages in the near future. In addition, retrieval of energy from those resources - otherwise would be useless would entail decline in the demand for other energy resources that could inherent environmental damages and
thus, contribute more to sustainable development (Bertel and Morrison, 2001, p. 15).
Cogeneration process, on the other hand, can offer an effective way in energy use. In this process,
energy production is focused on simultaneously generate both thermal and electrical energy. The major
advantage of this process is that less input energy is needed to produce the same energy levels than in separate
processes (Rosen, 1996, p. 24). Additionally, by using less energy this process releases less waste to the nature,
which makes it more economical and safe (Rosen, 1996, p. 24). In his case study for Ontario, Canada, Rosen
(1996, pp. 24-26) finds evidence to support the energy efficiency of cogeneration process. He concluded that by
using cogeneration in Ontario, Canada, energy-utilization efficiency levels have increased more than they do in
independent processes. Due to cogeneration process, energy requirements to satisfy energy demands in the
province in question have significantly reduced and thus environmental emissions have reduced accordingly
(Rosen, 2001, p. 25).
Another viable option to use energy resources can be found in producing energy from coal waste. Prior
to this process, coal waste had no value and was stored in the coal mines as piles. High levels of sulfur are
inherent in these piles, thus when these piles come into contact with water, they generate acid rains. Today
technological advancements allow us to burn this coal waste without creating acid rains or any other
environmental damages and generate electrical energy.
To sum up, in the long road of attaining sustainable development, using alternative and cleaner ways to
produce and consume fossil fuels and applying nuclear energy with improved safety regulations and skilled labor
force would be valuable assets. Additionally, sound governmental institutions that will back up the efficient
energy economics policies in the long-run and altruistic politicians that will not decide policies based on whether
or not they will be re-elected in the next term, would be remarkably important to achieve sustainable
development.

References
Bertel, E., and R. Morrison, (2001), Nuclear Energy Economics in a Sustainable Development Perspective, NEA News, No.
19:1, pp.14-17.
CIA, the World Factbook, the online Factbook, (2010),
https://www.cia.gov/library/publications/the-world-factbook/rankorder/rankorderguide.html (accessed: May 09, 2010).
Lairson, T. D., and D. Skidmore, (1993), International Political Economy - The Struggle for Power and Wealth, Harcourt
Brace Collage Publishers.
Rosen, M., (1996), Energy Efficiency and Sustainable Development, IEEE Technology and Society Magazine, Winter
1996/1997, pp.21-28.
Sweeney, J. L., (2001), Economics of Energy, International Encyclopedia of the Social &amp; Behavioral Sciences, Vol. 4.9,
Article: 48.
United Nations World Commission on Environment and Development, (1987), Our Common Future (The Brundtlund
Report) Oxford, U.K.: Oxford University Press.
U.S. Energy Information Administration, 2008, International Energy Annual 2006,
http://www.eia.doe.gov/iea/wecbtu.html (accessed: May 09, 2010).

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U.S. Energy Information Administration, 2009, International Energy Outlook 2009,
http://www.eia.doe.gov/oiaf/ieo/index.html (accessed: May 09, 2010).
Van Suntum, U., (2005), The Invisible Hand Economic Thought Yesterday and Today, Springer Berlin Heidelberg.

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

Local Evaluation and Efficiancy:
an Evaluation for VAN Municipality

BarıĢ KANDEĞER
Res. Assist.(PhD candidate), Publica Administration
Ġstanbul University, Ġstanbul, Turkey
kandeger@istanbul.edu.tr
M. Akif ARVAS
Res. Assist.(PhD candidate), Economics,
Hacettepe University, Ankara, Turkey
aarvas@hacettepe.edu.tr
Burak UYAR
Res. Assist.(PhD candidate), Statistics,
Ege University, Ġzmir, Turkey
burak.uyar@ege.edu.tr
Mehmet TEKĠNTAġ
Assistant Professor , Departmant of Business Administration
Gaziantep University, Gaziantep, Turkey
tekinkus@gantep.edu.tr

Abstract: This paper aims to define the concept of local autonomy in terms of the duty and the
responsibilities between the central governments and the local governments, to present its
importance and disadvantages and to determine what kind of a situation its practical application at
a micro level for Turkey would create through an analysis of Van municipality. In this context, the
study investigates the concept of the local autonomy in comparison with the European local
governments‘ condition of autonomy, then evaluates it in terms of proponents and opponents and
seeks an answer for what kind of an autonomy approach should be adopted. As a result, a
synthesis of Van Municipality in terms of the local autonomy is determined.
Keywords: Local Government, Local Autonomy, Efficiency, Municipality

Introduction
The local governments have been important in maintaining the progress and change in the historical
process. As a result of the projection of the central government‘s administrative graded ranks, they are able to define
their areas of existence. They have different functions and structures in Unitary and/or Federal State systems. From
this point of view, the local governments are shaped according to the state systems and form their administrative
structures according to the systems. In federal systems, there is a possibility of political and administrative autonomy
of for the local governments, whereas in unitary states the autonomy is in an administrative rather than a political
form. In this respect, the local governments are faced with the problem of autonomy in a unitary and centralist state
mentality. The answer for how and how much autonomy comes into prominence. In this respect, the efficiency and
the close supervision of the central government against the local governments‘ decisions and policies for local
services presents the level of autonomy.
Today, the local governments become significant actors for democracy, the public involvement in
administration and the local improvement. It is a space for the fulfillment of various functions such as the realization
of local services, the shaping of local politics, the organization for civil social movements and the formation of
socio-cultural politics. In this respect, maintaining the share of duty and responsibilities among the local and the
central governments and the use of local initiative would overcome the problem of autonomy.

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In this study, the concept of autonomy will be discussed with different viewpoints. The close relation
between the conceptual definitions of autonomy and the local government will be considered. According to these
explanations, the answers for the questions why the local autonomy is significant and why it is defended by
international organizations will be sought. Presenting the ideas against the dangers of the local governments, the
study will seek to identify the kind of a perception of autonomy that enables the local governments to have a more
functional, efficient and healthy form. Finally, in order to analyze the state of autonomy in municipalities which are
units of the local governments, the state of autonomy in Van Municipality and its functional practice will be
evaluated.

The Concept of Local Autonomy
Almost in every country, in the administrative ranks there is a separation as the central government and the
local government. Its purpose is to define the administrative realms of duty and responsibility and to provide services
in an efficient and productive way. Instead of the idea that favors the withholding of all duties and responsibilities in
the central government and the necessary active role of the state in each service, the idea advocating that the central
government is powerful with the local governments has gained importance. According to Nadaroğlu, ―The central
government fulfills the common needs of the community that lives within the national boundaries; watch for, secure
and represent their general interests. The local governments, on the other side, are defined as the organizations that
fulfills the local needs of the local public, whose overall decision-making bodies are elected by the public and who
are public corporate entities‖(1998:p.15-17). Here the significant points are the necessity of the state to execute its
principal duties through the central government and to define its national and international policies which are
compatible with these duties efficiently and productively while it is vital for the local governments to act in
accordance with the duties and responsibilities that are given to them by law and to fill the public‘s local needs.
According to Tekeli, local governments are defined as ―the institutions that fill the common needs of the individuals
in a local community, provides public goods and services, are administered by the bodies elected by the local public‖
(1983:s.6). In this context, the local governments also define the spheres of the local politics. For these institutions to
fulfill the local services, they should be given the authorization in parallel with their duties and responsibilities and
should be provided with the usable initiative. Its ability to elect its own bodies through local elections, to take local
decisions on its own, to provide financial resources to fulfill its local services and to make its own budget are among
the requirements of its administrative and financial authorities. Along with these concepts that are handled with the
local governments, the concept of autonomy also comes forward.
The concept of autonomy that defines the authority realms of the local governments plays significant roles
in the execution of services and efficient maintenance of the decisions. What is this autonomy? Is this the power and
authority of the local government to self-administer itself and do whatever it yearns to do or the authorities and
responsibilities that are given to it in order to provide local services within the constitutional boundaries. The
question whether it is an overthrow of the sovereignty of the central government or the share of the sovereignty
comes to mind at once. Local autonomy signifies neither the political independence and local sovereignty nor a unit
of the center that is tied to a close supervision and observation. It is a conception of administration that provides the
efficiency and productivity in the local services fulfilled by the local governments. Goldsmith comments on the local
autonomy as ― the situation defined by the local government as having the authority to collect taxes in order to
determine and fulfill the services is also a situation that self-defines the elected autonomies in the administrative
system (1995:p.228-229). The autonomy that can be perceived as the share of service among the central and the local
is the key for the local to produce and present the services. According to KeleĢ, ―Autonomy is the ability of a local
community to handle the local works on its own with its own units and to have the resources that would enable it. At
this point, there are two conceptions of local autonomy. The first one is corporate autonomy of the local government.
As a result of that kind of autonomy, the centre and the local have separate functions and the centre‘s supervision on
the local units is reduced to limited levels. The second group of autonomy is civic autonomy. Among its principal
traits are the determination of the activity realms of the local units by the local organs and the supervision of the local
governments not by the central government but by the people that forms this local community, that is to say by the
public‖(2000: p.49-50).
The corporate autonomy can be perceived as the execution of the local services by the administrative and
financial decisions taken by this local government in accordance with a decentralized administrative conception and
within the constitutional boundaries. The authority for decision making and exercising the decisions taken does not
mean being sole independence for the local governments. The significant point here is the execution of the activities
and operations subject to the local services by means of duty, authority and responsibilities defined within the
constitutional boundaries. The activities and operations peculiar to the local are subject to the supervision of the

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central government within certain bounds and this supervision is only the constitutional supervision and the
supervision of sunbsidiarity. The civic autonomy can be perceived rather as the local elections, the supervision of the
elected and the contribution to the administrative decisions. According to Weber, the idea that ―the necessity of the
local community‘s or the public‘s right to be administered by authorities whose self-administration or elections are
realized with the city dwellers‘ participations‖ supports this condition (2003: p.105). To maintain the participation of
the public in administration and to advance local democracy can be regarded as significant in terms of national
democratic achievements. When we have a look at the progress process of the nations, it is obvious that the existence
of the urban dynamics and the urban identities causes these processes to be healthy. The participation of the public in
the administration and the realization of its own autonomous organization in the medieval cities illustrate the
significance of the concept and identity of the city. For instance, Henry Piren in his study Medieval Cities
emphasizes this role of the city (2006: p.49).

Why Autonomy is Defended?
Civic autonomy emerges as the projection of the activity of providing services with the local governments
that are advanced and maturated in the historical process. In this historical process, providing the local governments
with constitutional status defines its frame of duty and responsibilities and its central-local boundary. In Europe
which is the birthplace of the concept, the local autonomy progresses and interacts along with the democratic state.
The concept of local government which blossoms with the French Revolution, makes progresses with the revolution
movements in 1830, 1848 and 1860 and demonstrates that the local autonomy can find an area of existence in the
axis of the democratic state (Koyuncu,2000:p.98). In this respect, in the countries where democracy blossoms and is
established, the subject of the local governments and autonomy turns into a legal quality and a vital sphere. The
autonomy which qualifies a significant argument in the vital practice of urban area and the attempts for a practice of
efficient subsidiarity can emerge as a dynamic process and can produce politics in this way. The factors such as the
blossoming and establishment of democracy, the local community‘s election of its own organs on its own, the
maintenance of their participation in the decision-making, the subsidiarity of the services and the regulation of the
financial affairs render the autonomy significant.
The autonomy is important since it brings up a form that determines the vital spheres of the local
governments. Today the understanding of providing subsidiarity, the redefinition of the authorities, duties and
responsibilities among the central and the local and the idea that the administrative autonomy of the local
governments should be increased have become important. The central government‘s conception of itself as the
authority in the local subjects leads to difficulties in the fulfillment of services. Over-centralization both leads to
resource dissipation and impedes the efficient and productive execution of services. As a result of the delay in the
bureaucratic procedures, the decision-making in long-terms and the invalid determination of the field of application,
the cost of services increases. The most significant arguments of the proponents of the local governments and
consequently of the autonomy are the release of the local jobs to the locals on the efficient and productive use of
resources and the maintenance of subsidiarity. Another argument of the proponents of the local autonomy is that the
most significant reasons for the overgrowth of bureaucracy are the existence of an over-centralized structure, the
bureaucracy‘s role in the formation of a significant structure for the state‘s execution of power and its effect on the
quality of the services. Actually, in the over-centralized countries, bureaucracy can have a negative function on the
execution of services and their qualities. As a result of the release of certain authorities and duties to the local
governments, not only the efficiency and productivity of the services can be increased and but also over bureaucratic
structure can be avoided and limited.
The local governments that are defined as the schools democracy are the realms where the public
participation in the administration is intense. The local government organs since they are elected by the participation
of the public and are the administrative units closest to the local communities turn into the institutions in which the
democratic values blossom and are established. The public participation, the pluralism principle, the leaders‘ focus
on the solidarity and their responsibilities towards the electorates are the values that emerge with the autonomy.
(Çukurçayır, 2000: p.110). In this respect, participation and democracy while can be an agent in increasing the
quality of the services done by the local governments, also provide the efficiency and productivity of national and
local politics and services.
The maintenance of the public participation in the decisions and policies of the local governments is a
situation that can be realized through the maintenance of the autonomy. The local community that elects its organs
on their own also has the opportunity to supervise these organs more efficiently. The maintenance of the public
participation in the administration brings forth certain advantages. Primarily, the decisions and projects in terms of
the local governments have the qualities to provide the needs of the local. Moreover, not only the constitutional

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

supervision but also public supervision on the local governments is obtained. The local autonomy is an
administrative model that emerges by a more efficient and productive execution of the local services. The
monopolization of the authorities and the decision-making by high-level central organs lead to delays in the
execution and hold back the services. At least, the services slowdown and the reflection of the real experts‘ ideas into
the administration and taking right decisions become hard. However, the involvement of the autonomous
institutions‘ representatives in the administration enables the chance for finding useful solutions in terms of national
interests. The local governments that find areas of existence with the purpose of increasing the welfare level and the
quality of services are important actors of local development and progress. As a result of projects and investments
that are formed in accordance with the local potential, the local development is obtained and they can be transformed
into socio-economic power centers. Since the local development can also help national development, it is significant
in displaying the importance of the common projects and politics among the central and the local, as well. Thus, the
local governments while realizing the local development help the central government for national development and
for the avoidance of the regional instabilities.
The national organizations are endeavoring to bring forth universal principals related with autonomy in
order to enable the local governments to produce more efficient services. With these principals, the Congress of the
Council of Europe, under the title of European Charter of Local Self-Government sets standards for the conception
of local government. The European Charter of Local Self-Government which was approved in Turkey in 1991 with
Law 3723 (21 May 1991, Nr.21877) outlines the standards of autonomy of the local governments. This document
primarily gives legal autonomy to the local governments. The third article of the charter on autonomy defines the
right and opportunity of the local authorities to regulate and administer a substantial share of the public affairs within
the frames determined by the laws, under their own responsibilities and in accordance with the benefits of the local
population. According to The European Charter of Local Self-Government ―the principle of the closeness to the
public in services is significant in efficient and productive rendition of the services and making the administrations
more close to the citizens. The rights and authorizations set out on the local governments are principles for becoming
localized and for the maintenance of the active public participation. The rights and authorizations can be directly
used by the councils or the committee meetings that rests on equal and general ballot, that is formed with the
members elected independently by the system of secret ballot and that can have administrative organs that are
responsible to them. This clause, within the limits of the law, does not impede to consult to citizen councils,
referendum and direct participation in the administration.
It is possible to analyze the local autonomy in two dimensions such as the administrative and financial
autonomy. The administrative autonomy refers to the independent decision-making of the autonomous institutions
with their own organs. On the other side, the financial autonomy envisages the autonomous institutions to have and
to spend separate assets and income resources (Ulusoy,2007:p.32). The financial autonomy refers to the local
governments holding sufficient income resources for an efficient and healthy execution of services. The insufficiency
of financial resources can play an obstructive role in the maintenance of autonomy since it can bring forth the
problem of nonproducing services along with the reality of financing itself through financial aids given the center.
Because the aids given by the center makes the local dependent on the center at the same time and consequently limit
its own scope. In this respect, it is significant for the local governments to have financial autonomy besides its
administrative autonomy. This principle is necessary for having its own incomes, regulating its own budget and
providing services peculiar to its own locality. In this context, when we have a look at the situation in Turkey, in the
centre-local relations, the supervision of trusteeship and financial dependency are prominent situations. While the
supervision in Europe is done within the frames of the compliance with laws, in Turkey the supervision is handled
both according to compliance with the laws and subsidiarity. This situation makes it difficult for the local to take and
carry out efficient decisions. The definition of the supervision boundaries can expand the scope of the local
governments. The supervision of the centre on the local in administrative and financial affairs should be within the
constitutional boundaries and the supervision should be carried out afterwards. Furthermore, the maintenance of the
items that provides local supervision (public, non-governmental organizations and local council) can also localize the
supervision (Tortop,1996: p.13). As a result of the local governments‘ generation of their own financial resources
their financial dependence on the central administration will be lessened and they maintain a more autonomous
structure. According to Kelly and Freeland, ―the fact that the local governments do not have enough initiative in the
field of local financial autonomy, in having resource, income, lobby, political power and responsibility and the
insufficient income resources explain the reasons for financial centralization‖(2004:p.5-6). The financial autonomy
can also be a result of a conception of efficient and sustainable administration and institutionalized local
organization. In the absence of such a structure, a part of the authorities and resources of the local can pass into the
hands of central government. When the local governments offer services directed to the local within the boundaries
set forth for itself, they have to act according to certain criteria. According to Nadaroğlu ―[T]here are three factors

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significant in considerable and efficient production of public goods and services. These factors are defined as the
quality of the services, the realm of services and the size of population. These factors demonstrate the fact that the
production of of public goods in local levels can be efficiently presented by the local production units (local
administrations). This is because if the population and the technology are regarded as data, it is natural that the local
administration produces a more qualified service in comparison with the central administration with the assumption
of the use of equal factors‖ (1998:p.39-40). In the maintenance of local efficiency, area restriction, the briefness of
decision-making process and the smallness of population scale are the items that increase efficiency. Moreover, the
local governments‘ production and presentation of services in parallel with local needs and appropriate to the locale
scale is significant in the maintenance of efficiency. According to Ulusoy ―public services should be left to the
administration that fulfills the needs of the individuals in the most efficient way. In the presentation of public
services, the economic efficiency is obtained when there is no decline in the costs in the situations of the increase or
decrease of the populations or the regional areas. According to economic efficiency criterion, if the cost per unit
decreases when the goods or services are presented by the administrations that serves to larger populations or
regional areas, the services should be presented by higher levels of administration; and if the administration and
coordination costs increases disproportional to the population and regional area, the services should be presented by
a smaller unit of administration‖ (2007:p.70-71). In this respect, the explicit definition of the central government‘s
service area and the local government‘s service area in the production of goods and services and the share of services
lead to a formation of the concept of efficiency in a positive way. The share of the services among the central and the
local also brings forth a function that decreases the cost of services and increases the quality and efficiency of the
service. For instance while the national security or justice services or general health and education services fall
within service areas peculiar to central government inclusive of national space; the city road construction, the
formation of joint-use in urban areas or the areas of water and sanitary services fall within service areas concerning
the local governments.
When the historical process is analyzed, it is possible to argue that the concept of democracy emerges from
the dynamics of the city. The local democracy that provides subsidiarity can be an agent of the formation of urban
participation culture. The local governments can be regarded as the basic item of democracy. In this respect, the local
governments have the most significant function in the political participation of the people in the cities and the
formation of democracy culture. The people‘s election of their own local administrators through elections and their
ability to supervise the elected administrators are closely related with the idea of democracy.
The local democracy is a necessary fact for the development of the public participation in administrative
decisions and of the relations with the civil society. According to Tortop, ―Local governments are the institutions
whose contributions in the development of the nation, in the establishment of a democratic understanding and in the
realization of the ideal of a clean society are et most. In order to provide this contribution, the central administration
should leave the authorities and duties related with the local services to the local governments‖(1996:p.13). The local
institutions which can be autonomous in their own affairs can take and carry out decisions in a better way. The
maintenance of the public participation in these decisions is seen as a reflection of the democratic culture and urban
participation. The relation between the local governments and democracy reveal not only the fact that the urban
problems and solution agents are ascribed to the people living in the local area but also the development of the habit
of self-administration (Kalabalık,2005:p.112-113). Since the people living in the local area have a voice in the urban
politics, the democratic culture should be developed. The democratic culture can only be possible if the individuals
can efficiently participate in the urban political processes, along with the administrators elected independently by
them. The close ties between the political regimes of the states and democracy also reveal the existence of the local
democracy. Furthermore the transparency of the administrations and the maintenance of the subsidiarity are closely
related with the democratic structure. It is necessary to take into consideration not only the thesis that the society
members who do not have an idea about the organizational structures and functions of the local governments cannot
be expected to have an efficient participation and supervision of the administration but also the reality that the public
awareness of the local governments and that the local governments are the vital spheres of the urban politics and the
democratic culture. (Gilbert,1975:p.108).
The access of the individuals living in the local area to information and the attainability of the
communication tools may increase the participation in decision-making processes. The individuals‘ interest in and
close track of the local politics can make them the actors for the solutions of problems and are significant factors in
the existence of the power for influence and the formation of local participation and the democratic culture
(Çukurçayır,2000:108-109). Consequently, it is possible to state that the local administrative areas are the spaces
where the urban dynamics are realized, the democratic culture and urban participation emerge and the nongovernmental organizations become shareholders in the policies and projects.

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The Ideas against the Dangers of Autonomy
Today, as a result of the political and economic developments in the world, the polities of the states and
their efficiency areas are changed and transformed. The globalization which penetrates the world and the consequent
increase of the capital‘s efficiency areas are also evident in the local structure. The positions of various international
institutions and current ideas against this situation lead to the examination of the state‘s giving more initiatives to the
local, the localizations and consequently the local improvement. In several reports of the World Bank, the
significance of localization is emphasized.
The neo liberalism and the new right wing movements that emerge after 1980, stress the significance of
localization by referring to local autonomy. They point out that with localization comes along regional development,
democratic participation and liberation. Here at this point, the problematic of the unitary structure of the state and of
its sphere of sovereignty become the projection of the criticism of autonomy concept. The criticisms of the autonomy
concept are generally related with the scope of boundaries. They are based on the idea that the empowerment of the
local governments and the increase of localization bring forth the change of some of the concepts that belong to the
center. This structure has the potential to define itself as decentralization. The basic argument of the opponents of the
autonomy is that the globalization starts a process that threatens the central administration and gives sovereignty to
the local and that the international organizations support this circumstance. They argue that as a result of these
organizations‘ transfer of the authorities of the center to the local with the expressions of the regional development,
the democratization and the local political participation, the national resources may become an agent of exploitation
by the international capital and the organizations that are tied to them. The 1999-2000 World Bank report displays
that both the globalization and the localization are inevitable and the future of the states are shaped by to what extent
they can manage these two powers (Güler,2000,p.25-26). As can be perceived in the report, it is necessary for the
nation state to transfer some of its authorities to the local and global capital. The criticism directed towards the
principle of subsidiarity that is introduced by the Council of Europe is based on the localization of the authorities and
the narrowing of the power area of the central administration. The reason why this principle is criticized is that it
would lead to decentralization and provide a wide space of autonomy. The opponents of autonomy outline that the
international capital and organizations, with the purpose of eliminating the administrative trusteeship of the central
on the local and maintaining the power space and liberty of the local, have produced certain concepts (subsidiarity,
decentralization) and consequently in this way strive to gain the control and sovereignty of the local resources and
market.
The idea that favors the restriction on the autonomy aims to limit the local governments‘ liberty to do
whatever they want on their own. In this respect, the center has the power to use some of its agents of supervision
efficiently. It is supported that the center‘s supervision of the local government according to the administrative
trusteeship principle is necessary for a unitary state. Thereby, absolute liberty is prevented and the integrity of the
administration is ensured. Here the crucial point is the necessity of the central administration‘s use of the
administrative trusteeship authority according to a constitutional framework. The use of administrative trusteeship on
the local government and its policies produced in its own boundaries and proper local services and its administrative
decisions can result in an unauthorized assumption of the central on the local. This situation has an impact that harms
the existence of the autonomy. For this reason, the criticisms on the concept of autonomy should be debated from
various viewpoints.

How Autonomy Should Be Used?
The share of authorities and responsibilities among the central administration and the local administrations
in the execution of the public services is an important condition for the contemporary administrations. Within the
constitutional boundaries, the efficient production and presentation of the national public services and the local
services are significant. Over-centralization may lead to disabilities in the presentation of services in the local area
and reduce the efficiency. The liberty of the local to do whatever it wants with an independency on the central can
result in troubles in the integrity of the administration and in the performance of supervision mechanism. From this
point of view, it would be wise to put the authorities and responsibilities among the central and the local into action
in a constitutional background and to give the local government a series of authorities and responsibilities that are
restricted to its own area.
The local governments are required to be provided with some resources and authorities in their production
of services in order to fulfill the local needs. The efficient presentation of the services also reveals itself in parallel
with the formation of the resources and the policies on the local. The insufficiency of the share that is reserved by the
central government from the general budget for the execution of the local services necessitates the local governments

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to form their own resources. The local administrators should have the liberty and the structure to take and execute
their own decisions related with the local. However, this liberty should be limited both by the judicial supervision in
light of the constitutional principles and by the social supervision. The local autonomy becomes important in the
circumstance when the local dynamics find vital support. The autonomy can be a significant agent as a result of the
use of some local values such as the achievement of the public participation in administration, the formation of a
democratic culture, the people‘s election of its own organs, and the local government‘s possession of a budget of its
own. This situation signifies a contribution to the unity and integrity of the vital spaces among the central and the
local.
The autonomy given to the local governments should not have a function or structure that limits the state‘s
sovereignty space. The autonomy should be within the constitutional boundaries, proper to the space of local service
and functional. The activities and conditions that would result in the liberty of the local government to do whatever it
wants with an utter independence from the central government should be restricted by the judicial supervision
according to the constitution. The central government‘s regulations which restrict the space of local governments
such as the supervision of trusteeship and subsidiarity should be eliminated and only the judicial supervision and
local public supervision should be provided. The financial initiative should be given to the local governments to
strengthen their financial opportunities and form their own income resources. Under this circumstance, both the
dependency of the local governments to the central administration in terms of financial resources may be reduced
and the trouble to find resources for the production of the local services may be avoided. Therefore, the local
governments should be autonomous enough to provide the local public with efficient services which are related with
their own service areas and there should be a compatible and unified structure among the center and the local.

The Analzsıs of Van Munıcıpalıtz as a Sample
The municipalities are autonomous administrative units that are required to fulfill the duties given to them
within the judicial boundaries and to execute the local services. This autonomy of the municipalities should be within
administrative and financial autonomy frameworks. The administrative autonomy refers to the independent decisionmaking of the municipality in fulfilling the local needs. In this context, it would be wise to analyze Van Municipality
as a sample within a concrete analysis framework of the autonomous structure of the municipality which is the most
authoritative and significant unit of the local governments. This part aims to illuminate the administrative and
financial autonomy of the municipality in the presentation of local goods and services. Taking into consideration the
reality that the production of services are realized in proportion to the municipality‘s financial resources, it is
necessary to question whether the municipality‘s financial resources are sufficient for the production of services or
not. Therefore, an emphasis on the question whether Van Municipality has trouble in finding financial resource for
fulfilling the public local needs would be a good approach in this study. It is significant to elaborate the question
whether Van Municipality‘s own resources or the shares given from the central administration are sufficient for the
presentation of the services and the realization of the local investments is vital. The roles of incorporation and
privatization in the execution of urban services will be investigated. Moreover, the analysis of to what extent the
public participates in the administration would provide us with the information on urban participation. Van
Municipality serves within its 10.500 hectare borders. Within the municipality‘s areas of service, there are 27
districts. Van Municipality has 7000 hectares of the adjacent area and 10.500 hectares of plan for zoning. According
to the results of 2008 population census, the population of Van is 332.000, and there are 65.000 buildings and 20.200
dwellings. Van Municipality, proper to Permanent Staff principles and essentials, with the Municipal Council‘s
decision numbered 347, dated 09.08.2006, with reorganization in the structure , fulfills its services with 28
administrative staff consisting of 4 Vice-Chairman and 24 Unit Manager. The Municipality staff consists of 326
officers, 657 workers and 32 contracted staff with a sum of 1015 personnel.
Van Municipality executes the local services under the sovereignty of the central government, with its own
incomes and shares given by the central government. It can use a part of the services and authorities proposed by the
municipality law and cannot use much initiative in overcoming the financial resource problems. Other than the share
given by the Bank of Provinces‘ General Budget Income, the most significant income resources for Van
Municipality are, the payments for public utilities, rents, estate tax, the tax on the environmental cleanup (ÇTV),
transportation, zoning fees and other different incomes (pecuniary penalties, tax penalties, several installment sales,
the taxes on the entertainment and advertisement, occupancy charge and several other taxes. The municipality should
fulfill necessary activities in order to find financial resources. For instance, utilities such as water, sanitation, road
construction are fulfilled by the municipality‘s own resources (Van Municipality 5 Year Strategic Planning 20062011). Today, in our country, the local governments (municipalities) in their execution of municipal services can pay
for the costs of services through several agents. They can fulfill these services especially by establishing its own

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firms, privatizing the services, and borrowing money from several national or international organizations. The
services should be provided by the municipality‘s own resources, the share from the central budget, the privatization
of limited services, grant from German Development Bank which is an international organization and a firm of its
own. An analysis of Van Municipality illustrates that the perception of the execution of services rest on the
traditional municipal income which are the share from the central budget and the income items given according to
municipal laws.
Van Municipality‘s income items of the year 2007 are illustrated below. When we have a look at the table, it
is possible to state that the municipality‘s income items are comprised of the traditional municipal incomes. The
Municipality could not perform activities which would strengthen its own financial structure, form its own resource
in the execution of services. In recent years, the formations such as municipal economic enterprise (sale of foodstuffs
directly by a municipality or indirectly through a firm awarded a contract by a municipality, bread factories) has
turned into methods that are frequently used by municipalities for the presentation of cheap and qualified services to
the public. Van Municipality has not introduced such a structure up to now.

BETWEEN THE DATES
01/01/2007- 31/12/2007
TABLE OF BUDGET INCOMES

Account
Code

Economic
Code

800

1

800

2

800

3

800

4

800

5

800

6

The
Percentage of
Realization
(%)

Explanation

Given from
The Budget

Collection
/Payments
Received

TAX INCOME
THE INCOMES OTHER THAN
TAXES

9.350.000,00

7.578.284,59

81%

0

0

0%

CAPITAL REVENUE
ENDOWMENTS
DONATIONS
OTHER INCOMES
COLLECTIONS
CREDITORS
TOTAL

25.546.000,00

18.018.349,48

73%

7.058.000,00

1.900.000,00

27%

53.044.000,00

40.268.018,44

76%

2.000,00

0

95.000.000,00

67.764.652,51

AND

FROM

71%

Table 1: 2007 Table of Budget Income (2007 Van Municipality Activity Report).
The Municipality unable to find a way for the formation of income falls to 71 % in the realization
percentage of the 2007 income budget. The reasons for the desired income realization are the socio-economic
situation of the region and the low level of public wealth. For this reason, the attempt raising incomes would be
essential. Therefore, the efficient and productive execution of the services is closely related with the sufficiency of
the financial resources. The low percentage of collections in the municipal tax income, and the limited income items
are among the negative influences. In this context, the formation of new income items would provide betterment in
both for the quality and proportion of the services and for the financial resources.

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Graphic 1: The 2007 Realization Percentage of the estimated Budget Income (2007 Van Municipality Activity
Report).

Graphic 2: 2007 Distribution of Budget Income (2007 Van Municipality Activity Report).

Graphic 3: 2007 Distribution of Spent Budget Income (2007 Van Municipality Activity Report).

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BETWEEN THE DATES 01/01/2007-31/12/2007
TABLE OF BUDGET COST
The Percentage
of
Realization (%)

Eco.
Co.

Explanation

Given from
The Budget

Collection
/Payments
Received

1
2

PERSONNEL EXPENSES
STATE PREMIUM COSTS
TO
SOCIAL
SECURITY
INSTITUTIONS
GOODS AND SERVICES
SALE COSTS
INTEREST EXPENSES
CURRENT TRANSFERS
FINANCIAL EXPENSES
CAPITAL TRANSFERS
BACKUP ALLOCATION
TOTAL

28.010.000,00
5.317.000,00

27.245.604,0
4.639.610,68

97,27%
87,26%

25.728.321,46

23.669.663,0

92,00%

5.779.599,66
4.287.500,00
14.273.434,00
8.841.250,00
5.831.403,00
98.068.508,1

5.601.000,00
1.761.022,03
1.965.569,37
8.010.000,00
5.831.403,00
78.723.872,1

96,91%
41,07%
13,77%
90,60%
100,00%
80,27%

3
4
5
6
7
8

Table 2 : 2007 Table of Budget Cost (2007 Van Municipality Activity Report).

Graphic 4: The 2007 Realization Percentage of the estimated Budget Cost (2007 Van Municipality Activity Report).

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Graphic 5: 2007 Distribution of Budget Cost (2007 Van Municipality Activity Report)

Graphic 6: 2007 Distribution of Spent Budget Expenditure (2007 Van Municipality Activity Report).
When we look at the budget expenditures the estimation fort he expenditures for 2007 has been eventualized
in a ratio of 80,27. When we look at the costs, the personnell expenditures and the purchase costs are the major ones.
Although the equality between the expenditures and the income is important the qualitative and quantitative
evaluation of the services are important as well.
As a wide perspective, in order to reduce the cleaning expenditures and provide an efficient public service
the municipality has privatised the cleaning services. Another privatised service is the urban transportation. By
tender bidding the urban transportation to the private enterprise the municipality has set up a foundation for rising the
public service standards and decreasing the expenditures. In a competitive market the urban transportation has been
privatised, and an effective and cheap service is planned to be provided via the private enterprise (Activity report of
Van Municipality, 2007).The municipality is supplying the environment monitoring with the help of Mavi Kent C.O.
which was built under the authority of the municipality itself. This company is working out to provide some of the
services with the help of the concrete-works staff and fullfilling the needs of the municipality such as materials.For
example, by producing and procuring the stone materials, the company is corresponding the needs of the
municipality.Especially in the districts where the basic facilities were set up, and the sewage and potable water
services are completed; with the help of this company, approximately 56 km of road planning, stabilization and
grading service was fullfilled and opened to public service. Moreover; constructing the pavement, median-strip
bridges and blacktopping the roads are fullfilled with a co-operation of the municipality and the Mavi Kent C.O., as
well. Nowadays, the municipalities can carry out and supply the services with the help of the companies which are
set up under the authority of the municipalities. Mavi Kent C.O. is such a company which was formed under the
constitution of Van Municipality with the regulations mentioned above.
With the influence of the new right-wing and neo-liberal movements the municipalities can hold
collaborations with international institutionsand vast investments can be made by using the financial and technical
aids which are given by these international institutions. The agreement made between the German development bank

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(KFW) and the municipality covers the financing of some of the massive main facilities of the city. This donated
money is used in the investments to the basic facilities.(Türkçesi çok bozuk tümce) Since there is a serious financial
resource challenge arising from the increasing local service areas and service components; in order to present a
better, effective and efficient service it is best for municipalities to use the loaning, privatization, creating new
income instruments and applying to concerns - and this will reduce the financial dependence to the central authority.
Thereby, the municipality will serve effectively as an autonomous constitution.

Conclusion
Within the developing and changing principles of administration and under the principle of "localization in
services and subsidiarity" the local authorities should independently and freely take their decisions on the subjects
under their jurisdiction and can produce local policies. The local authorities should be in an autonomous construction
in order to fulfil these functions. The autonomy has a function as forming a safe habitat and private province, and
increasing the movibility in the radius of action for the local authorities. The local authorities which form the
democratic cultural areas that the municipal dynamics and the attendance of the public to the administration arise,
must have the needed resources and materials. Under the strict monitoring of the central authorities, the local
authorities can confront the problem of under-servicing or not using the local initiative. In the cases where this
monitoring is hold under the constitutional law and public itself, the movibility and effectiveness of the local
authority will increase and the presentation of the services will be more efficient. It would be better to evaluate the
affirmative and negative opinions on local autonomy in the reasonable limits, and constructing a local autonomy
form with the help of constitutional laws. On the other hand, under the view of localization in services, local services
should be taken in the frame of spatial proximity. This administration form which lets the public to attend to the
administration, which leads the diversification of democratic culture and civil movements will surely serve as a
significant function in the usage and application of policies in a more efficivent and effective way. As it is seen in the
Van Municipality, the municipalities which are totally dependent to the central authority in the areas of creating
finance and resources, the problems arise. In order to cope with the problems, some techniques such as creating new
income components, constructing new economic enterprises or privatization of some services are used.

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                <text>This paper aims to define the concept of local autonomy in terms of the duty and the  responsibilities between the central governments and the local governments, to present its  importance and disadvantages and to determine what kind of a situation its practical application at  a micro level for Turkey would create through an analysis of Van municipality. In this context, the  study investigates the concept of the local autonomy in comparison with the European local  governments‘ condition of autonomy, then evaluates it in terms of proponents and opponents and  seeks an answer for what kind of an autonomy approach should be adopted. As a result, a  synthesis of Van Municipality in terms of the local autonomy is determined.</text>
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                    <text>2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Effects of Global Warming on the Tourism Sector in Turkey
Hasan KARA
Faculty of Science and Letters Geography Department
UĢak University
Turkey
hasan.kara@usak.edu.tr
Nurettin BILGEN
Faculty of Education Primary Education Department
Pamukkale University
Turkey
nurettinbilgen@gmail.com
Derya ACAR
Faculty of Science and Letters Geography Department
UĢak University
Turkey
derya.acar@usak.edu.tr

Abstract: One of the most crucial problems in the world is global warming. In recent years mean
temperature values are rising and downfall values are indicating substantial deviations as to years
and months. Even small changes in climates affect many sectors. The leading sector affected by
global warming is tourism sector. Tourism is one of the sectors in Turkey developing in the fastest
way. Numbers of tourists visiting Turkey have been increased beginning from 2000 and exceeded
27 millions in 2009. Tourism revenue of Turkey has passed over 16 billions dollar. A large
number of different sectors such as transportation, food and construction are connected with
tourism. Tourism sector is very interested in temperature rise and prolonging of summer season. In
sea tourism it is expected an expansion to west and north regions of Turkey as well as south
shores. Extreme summer hot will set off immigration from seaboard to uplands and hinterland as
well as increase water and electricity consumptions. Less cold in winter season, delay and decrease
of snowfall will affect winter sports centers negatively. In this study positive and negative effects
of climate changes caused by global warming on the tourism sector which one of leading sectors in
Turkey are discussed.

Introduction
Tourism, which is frequently referred to as ―flueless industry‖ is a substantial source of revenues and a
strategic sector for some countries. When we take the fact of across the globe over a billion people is in tourism
activity into consideration, we understand well how the tourism cake is so large and important. The number of
countries that are getting a large share of the cake is rather limited. The compenents such as climate, latitude, coastal
assets, cultural and historical values, transportation, safety, infrastructure etc. define the finiteness of tourism activity
and determine the number of tourists and revenues.
Some determinants that might affect tourism in next years are misinvestments in tourism field, pollution,
coasts turning into concrete jungles, dissolution of cultural values, destruction of vegetation cover, safety problems
might occur in tourism centers and verious global changes occured depending on climate change. Determinants
except for climate change are the problems caused by local causes in the countries and regions where tourism is
practised and their solutions are relatively easy. By means of correct planning and right management these problems
can be easily avoided. On the contrary some points that appeared as problems can be changed into attraction for
tourism as well. For example, cultural values under dissolution threat can be protected by restoring them and
historical ruins buried in ground may come into light by archaelogical studies. They all may gain advantageous
positions by improvement made by the resources of countries or regions.

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

On the other hand, changes occured in climate caused by global warming are not problems resulting from
countries or tourism regions. They are global problems that are of particular concern to all over the world. Thereby,
global problem caused by wrong applications that was experienced in the past and is existing in present time, will be
a cause to more serious negatives as well as be a concern in our day.
Turkey is one of countries that might be affected by global warming at the most. Temperature rises and
deviations occured in downfalls affect a great number of sectors in Turkey directly or indirectly. Effects have been
seen for years in the sectors of agriculture, animal husbandry and water. Although tourism is not affected much at
present it is one of the sectors that will seriously experience results of global warming in the immediate future.

Global Warming and Turkey
Greenhouse gases hold infrared radiation reflected from globe and prevent them from escaping to space.
Accordingly, they affect energy balance of the earth and cause increasing of surface temperature (ArıbaĢ and Kara,
2009, p.130). Temperature on the surface of the earth rises distinctively. Accordingly, changes occur in climates and
the components of climate affect each other in a complicated way. Ultimately all living creatures take their shares
from changes. While expansion in deserts is seen depending on drought living spaces become narrow, forests and
vegetation cover are reduced, and living creatures migrate in order to keep pace with the new order.
As a result of global warming climate changes occur in the various regions of the world. Climate changes
can be briefly described as changes in climate parameters (downfall, moisture, air movements, drought etc.)
depending on global warming. As changes occured in any region of the world induce other regions, effects of global
warming are inclusive of not only certain countries or continents but all the globe. Turkey is one of the countries
affected by global warming. Effects do not make themselves evident in short time. They appear in a long time
period. Their boundaries are so wide that they affect all the fields from agriculture to animal husbandary, from
desiccation to immigration and from sea level rising to tourism. For example, according to different scenarios it is
estimated that average sea level rising in 2100 will be 15-100 cm in current climate modelling (Öztürk, 2002, Spence
2007 and Evans, 2009). Even only rising of 15-100 cm in sea level can make changes in the map of the earth and
make away with some small island states.
The countries that are much damaged by climate changes are the ones having resources at the very least
despite they have no negative contribution to climate changes. Intergovernmental Panel on Climate Change (IPCC)
reported that ―climate change will affect most developping countries in terms of loss of lives, investments and
economy‖ (Dunn and Flavin, 2002, p.89). Even the factors causing global climate change would completely be
eliminated the effects of the past will reveal themselves for 30-40 years.

Developping Tourism in Turkey
Turkey is a country industrializing rapidly in Western norms. Particularly in the last 20 years the aspects of
development and change have been felt in every sectors. As of 2009 Turkey which is the 16. country with large
economy in the world maintains development and targets to be in the first ten countries having strongest economies.
One of the leading sectors in Turkey is tourism in terms of growing economy. Turkey is one of the countries in the
world having highest tourism potentiality with its historical and cultural assets, unique nature, seas surrounding its
three sides, safety and the people who lean towards tourism. Unfortunately, tourism in Turkey, which is frequently
referred to as ―flueless industry‖, was scarcely any before 25 years. In last 25 years, particularly in last 10 years,
tourism in Turkey has gained substantial speed (Table 1). Number of tourists, which was 2 millions per year in 1985,
has
reached
10
millions
in
2000
and
27
millions
as
of
end
of
2009
(http://www.tursab.org.tr/content/turkish/istatistikler/gostergeler). Revenues of tourism have increased in paralel
with the number of tourists and climbed over 16 billions dolar.

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Years

1

2

3

4

5

6

7

8

9

10

11

12

Total

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009

334
359
307
364
534
699
667
714
783
752

354
405
426
481
608
693
627
787
896
899

435
547
676
500
784
1.107
922
1.100
1.305
1.208

721
885
853
669
1.104
1.349
1.373
1.521
1.648
1.750

986
1.232
1.326
1.146
1.799
2.303
1.919
2.288
2.749
2.719

1.079
1.388
1.458
1.511
1.898
2.403
2.369
2.774
3.306
3.263

1.526
1.777
1.897
2.131
2.591
3.164
3.110
3.624
4.085
4.343

1.419
1.601
1.900
2.275
2.493
2.859
2.906
3.384
3.762
3.760

1.369
1.440
1.771
1.874
2.125
2.502
2.267
2.799
2.981
3.136

1.178
1.066
1.420
1.658
1.842
2.107
1.714
2.153
2.462
2.617

602
521
663
776
950
1.052
1.020
1.177
1.268
1.404

424
398
560
644
789
862
927
1.019
1.091
1.226

10.427
11.619
13.257
14.030
17.517
21.123
19.819
23.341
26.337
27.077

Table 1. Distribution of Tourists Visiting Turkey in Last 10 Years (a thousand persons).

In the ordering of countries attracting most tourists in the world Turkey was barely in the first 20 countries
in 1990‘s and was 11. in 2005. In last 5 years she has deserved to be in the first 10 countries. While the countries
such as France, Spain and the United States of America are by far in advance there is a little difference between the
countries such as Britain, Germany, Mexico, Austria and Turkey in turms of tourist number. In short, if Turkey
would keep the increasement pace and would not go wrong she will be of 5-6 countries attracting most tourists in the
world in next 10 years.

Figure 1: Turkey‘s Important Tourism Regions.
The sub sectors of tourism such as sea tourism (summer tourism), winter tourism, thermal tourism, upland
tourism and religious tourism have been developped in Turkey. While the weight in sea tourism is on South AegeanWest Mediterranean shore corridor, the locations such as Alanya, Antalya, KaĢ, Fethiye, Marmaris, Bodrum,
KuĢadası and ÇeĢme are the most important vacation centers (Figure 1). While Bolu, Uludağ, SarıkamıĢ, Erciyes and
Palandöken catch the attention in winter tourism, leading locations in religious tourism are Ġstanbul, Konya,
ġanlıurfa and Selçuk. The leading natural beauties that have been visited much are Ürgüp surroundings and
Pamukkale. In the Black sea region upland tourism has come into prominence in recent times and the provinces such
as Trabzon, Rize, Giresun, Bolu and Ordu developped much in upland tourism.

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

Negative Effects of Global Warming on Tourism Sector
In recent times numbers of the studies on global warming have been increased as the effects manifest
themselves. We have general studies in regard with tourism sector and global warming. However, they are not
adequate in terms of Turkish tourism (Öztürk, 2002, Gülbahar, 2008 and Yıldız 2009).
Mean temperature rises have made evident themselves depending on global warming. According to the local
and general studies it is certain that mean temperature rises gradually. Mean temperature rises have been increased as
to the previous period. It has been revealed by various researches that mean temperature rises in Turkey in the last
period of 30-40 reach 0,5 oC (Kadıoğlu, 2008). It is predicted that in the following years glaciers will melt away and sea level
will rise about 1 meter. Undoubtedly, all glaciers will not melt away. However, it is certain that glacier dissolving
will be experienced and seal level will rise about 1 cm in every year.
In many climate modellings it is predicted that as a result of global warming downpours will increased. In
general terms, Turkey is located in Mediterranean climate zone in which–except for several areas- winters are rainy
and snowy and summers are dry. Dry summers are an advantage for the areas having dense summer tourism.
Summer precipitations affects tourism negatively. Deviations in precipitation despite dry summers, experiences
summer downfalls and floods caused by cloudbursts will affect tourism regions. Instant floods will damage not only
coastal areas but upland tourism, hunting tourism, golf tourism, mounting climbing and stream sports.
Number of tourists visiting Turkey has exceeded 27 millions. A large part of the tourists come from the
countries which are located in North of Turkey and have relatively colder climates. Tourists prefer Turkey for hot
summers, sea, sand and sun. Sea tourism focuses on Southern and Western coasts of Turkey such as Antalya, Muğla,
Aydın and Ġzmir. As beaches are small and narrow a part of them will be left under the sea level when a rise occurs
at sea level. Some small beaches might be disappeared completely and a part of large beaches might become smaller
by overflowing (Photo 1). Undoubtedly all beaches would not be disappeared by the effects of global warming.
There might be new bech extensions and formation while sea water is rising in a part of beaches. Beaches are
considered to be equivalent with tourism all over the world. Unfortunately beaces in Turkey under the threats of
erosion, climate change and sea level change. Rising in water level will affect not only beaches but settlements at
coastal regions and touristic facilities as well. Touristic facilities, roads, ports, summer residences and other buildings
at seaside and seafront will be at hazard by sea rising.

Photo 1: Small Beach in Southern Coast of Turkey Köyceğiz.
July and August in Turkey are the months in which sea tourism is very dense. About 30% of tourists who
visit Turkey ( 8 millions tourist) prefer July and August. At the same time both are the the hottest months all over

574

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

Turkey. When June is added to them the rate of summer season exceed 40% (Figure 2). The more mean temperatures
the more electricity and water consumptions. In a large part of touristic facilities in South and West regions air
conditioners opererate much due to hot. This means greater costs for the managements. The more hot the more
electricity consumption and greater costs depending on airconditioning.

12000

(1000 Persons)

10000
8000
6000

Seasons

4000
2000
0
Winter

Spring

Summer

Autumn

Figure 2: According to the Seasonal Distribution of Tourists Coming to Turkey (2009).
The most serious problem experienced in coastal regions in summer season is water supply. Providing fresh
water in coastal regions is rather difficult. Water consumption contingent on temperature rise is highly increased in
summer season. Increasing consumptions of both fresh water and potable water give rise to a rise in the costs of
touristic managements. On the other hand, large green spaces and large gulf courses owned by many facilities will
give rise to more water consumption. Therefore, finding new water sources and bringing water from long distances
as well as new investments will be needed.
One of the tourism branches being in the ascendant in recent times in Turkey is winter tourism. Winter
tourism centers such as Uludağ, Kartalkaya, Erciyes, Palandöken and SarıkamıĢ have been rapidly developped.
Increasing in mean temperatures reduces snowfalls. As in some years snowfalls are so late maximum snow thickness
can not reach 50 cm (Gülbahar, 2008, p.180). For this reason, winter tourism is much damaged and reservations are
cancelled. Reduction of snow thickness and shortening time of snow staying on the ground deals death blow to
winter tourism (Spence, 2007, p.90). Danger is more serious at the winter tourism centers having lesser elevation.
The most important winter tourism centers in Turkey are in West regions. These centers take a risk as they have
lesser elevations (Photo 2). Although Turkey has great winter tourism potantiality she takes small share from winter
tourism as investments are not made in there due to the reasons such as important elevations are in East regions,
safety, transportation and underdevelopment. Shortening periods of snow covering due to temperature rise in Turkey
might give rise to instant snow melting and avalanches (Yıldız, 2009, p.83). Instant meltings are a great danger to
both tourism centers and regional settlements.

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

Photo 2: Places Will be Affected More Than Most Global Warming (Uludağ Ski Center).
Together with summer hot rise some streams will be dried wholly that have already lower water levels or
their flow rates will be decreased. This will prevent some water sports such as rafting from practicing. Particularly, in
the shores of Mediterranian rafting over some streams is an activity that have been in demand in recent years (Ertin,
1998, p.204).
While some new tourism centers will appear due to rise in temperature some old tourism centers will be
diminished in importance. In this way, in the old tourism centers unemployment rate will be increased and this will
induce immigration towards other areas. Nature will be under the threat of damage from the pressure of people due
to the interest in new tourism spaces.
Thermal water might be affected as global warming will decrease water sources. Turkey is the most
advantageous country in the region in terms of thermal sources. Turkey has more potantiality than that of countries
which are more advanced in tourism than Turkey. Thermal sources of Turkey is a unique potantiality for the aging
population of Europe. As thermal sources will become more important in the future it must give consequence this
matter and the sources must be exploited productively.

Positive Effects of Global Warming on the Tourism in Turkey
Sea bathing duration in Turkey extends when we go towards Aegean and Black sea in North from the
Mediterranean shores in South. While the sea bathing duration in Mediterranean is over 100 days it reduces a little in
Aegean shores due to latitude and this figure is much shortened in Marmara and Black sea shores. While temperature
rise affect the Mediterranean shores negatively the case in the North of Aegean, Marmara and Black sea shores is
reversed (Yıldız, 2009, p.85). Rises in mean temperatures and sea water temperature particularly in Marmara and
Black sea shores will makr these shores an attraction center (Akıncı Kesim and etc., 2007, 465). In this way, new
tourism centers will appear and the weight on the provinces located in the Southern Turkey will slide towards the
shores of provinces located in the Northern Turkey.
The rise in sea water is an advantage for the shores in Turkey. In our days, due to the lower values in sea
water and air temperature having a sea bathing in Black sea shores is impossible for a long time. Global warming
will revers the case in the long run. While Black sea shores will be changed into the current form of Mediterranean
shores, sea bathing period in the Mediterranean shores will be further extended and spring and fall seasons will be
appraised. Tourism season in all regions of Turkey will be extended. Sea, sand and sun tourisms will go out of the
frame and extend towards spring and fall seasons. In this way, a large part of Turkey will enjoy benefaction of
tourism all the year round. Extension in tourism season will give an opportunity to the small tourism centers to grow
and to obtain more revenues.

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

There are a lot of choices for tourism in Turkey in which average elevation is 1132 m. and land forms are
changed in short distances. While some coastal regions in Turkey are effected negatively by the temperature rise,
some regions in hinterland and some larger sections are effected positively. In this case Turkey will be a more
advantegous country by the effects of global warming.
As rise in temperature in Egypt which is located in South of Turkey and in other Southern Mediterranean
countries will create a sultry atmosphere the effects of global warming will be felt more seriously
Ġn these countries. The tourists who gave up to go to these countries probably would prefer to have their vacations in
Turkey. As global warming will not only affect Turkey‘s shores, the countries such as Spain, France, Italy and
Greece which attract more tourists and located almost in same latitudes as Turkey would be affected by temperature
rise negatively. As there are no seas in the Northern parts of these countries just like Black sea in Northern part of
Turkey, the most advantegeous country in the most developped countries in terms of tourism would be Turkey.
Turkey will be in with a chance to catch up with her important rivals in tourism field such as France and Spain.
Different tourism types will appear in Turkey which has a rich tourism potantiality by the effects of global
warming. As long as Turkey could appraise correctly tourism planning and investments the negative effects of the
global warming will be changed into positive effects in terms of tourism and will be in with a chance to obtain larger
share from tourism sector that that of present time.

Conclusion and Suggestions
Turkey is one of the countries in the world having great economy which is rapidly developped. Tourism is
in the leading role in her revenues. Tourism revenues of Turkey which is almost 20 billiards dollars are of
importance in terms of economy. Global warming and climate changes affecting all the world is also important for
Turkey and tourism sector takes its share from the effect. Number of people who participate in tourism activities is
increased in every year. While the number of people who participate in tourism activities is increased thanks to
economical improvements, transportation possibilities and organizations all over the world the tourism cake is also
enlarged accordingly. Countries all over the world compete for attracting more tourists. When planning regarding the
future is made global warming must be taken into consideration.
Turkey is bound to interest any more in the global warming which might affect particularly coastal areas
and winter tourism centers and exert more efforts to make researches regarding the matter by finding the possible
effects and taking necessary measures. It is possible to reduce the negative effects of climate changes and global
warming and to turn disadvantages into advantages in Turkey which has rich tourism possibilities. We can make
following suggestions regarding the matter:
 Units have to be set up to research the effects of global warming, changes brought about at sea level, and the
matter of which regions to be under the risks.
 Coordination has to be supplied among the Turkish Republic the Ministry of Culture and Tourism, local
administrations and the organizations related to tourism.
 Development plans at the coastal areas have to be arranged again and revised according to the effects of
global warming.
 Road, tourism facilities and port constructions in the coastal settlements must be performed by taking
consideration of the maximum sea level.
 Planning in regard with tourism investments has to be made by taking consideration of global warming in
the future years and its possible effects.
 By keeping in sight that Tourism might show a tendency to slide towards the Northern and internal parts of
Turkey the infrastructure of transportation network in these regions must be completed.
 By appraising the facts of distorted housing and allowing immigrants in the regions where tourism might be
developped the previous defects and faults should not be repeated and necessary measures should be taken.
 Water sources and thermal sources should be used with more attention and wastes in sources should be
prevented by showing regard to the source drought.
 Changes in snowfall must be taken into consideration in the investments regarding winter tourism.

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                <text>One of the most crucial problems in the world is global warming. In recent years mean  temperature values are rising and downfall values are indicating substantial deviations as to years  and months. Even small changes in climates affect many sectors. The leading sector affected by  global warming is tourism sector. Tourism is one of the sectors in Turkey developing in the fastest  way. Numbers of tourists visiting Turkey have been increased beginning from 2000 and exceeded  27 millions in 2009. Tourism revenue of Turkey has passed over 16 billions dollar. A large  number of different sectors such as transportation, food and construction are connected with  tourism. Tourism sector is very interested in temperature rise and prolonging of summer season. In  sea tourism it is expected an expansion to west and north regions of Turkey as well as south  shores. Extreme summer hot will set off immigration from seaboard to uplands and hinterland as  well as increase water and electricity consumptions. Less cold in winter season, delay and decrease  of snowfall will affect winter sports centers negatively. In this study positive and negative effects  of climate changes caused by global warming on the tourism sector which one of leading sectors in  Turkey are discussed.</text>
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                    <text>2nd International Symposium on Sustainable Development, June 8-9, 2010 Sarajevo

Attitudes and Motivation of Learners of French as a Second Language
towards Computer Assisted Language Learning
Assoc. Prof. .Dr. Şeref KARA
Uludag University
serefk@uludag.edu.tr
Abstract: This study focuses on computer assisted language learning and the
attitude of the learners who are enrolled in French department at Uludag
University. A total of 42 learners in French programme at Uludag University
participated in the study as subjects. They were given questionnaire in pre-test and
post-test at the beginning of the academic period and tree months later to observe
whether there were any changes in their attitude towards computer assisted
learning. The data were collected in the 2009-2010 education-instruction year. The
data obtained in the study was analysed using the SPSS statistics computer
programme. It was also found out that the CALL method supported with the
language learning programme was more effective in positive development of
achievement levels of learners. The results exposed that there occurred positive
changes in the attitudes of the subjects towards computer assisted language
learning during three months. Although most learners accept changes in teaching
delivery and welcome the enrichment provided by new educational tools, some
refuse them. Differences in learning styles exist, and will continue to exist, and
cannot be dismissed.
Key words: Computer Assisted Language Learning, French foreign language
teaching, attitude, computer, learner, test, assessment.

Introduction
Recently, computers have become so widespread in schools and homes and their uses have expanded so
dramatically that the majority of language teachers must now begin to think about the implications of computers
for language learning. With technological developments human life is getting easier day by day. Computers are
among the greatest devices presented us by technology. With the introduction of computers in education, there
seemed important changes in teaching and learning method. In recent years, the rapid evolution of information
and communication technology (ICT) has made great changes in societies and education. The Internet,
particularly, has become a useful tool for communication, a venue for experiencing different cultures and a
mediator in diverse political, social and economical situations.The teacher got the role of being a facilitator
rather than being authority. When the modern education conception is examined carefully, it can be seen that
implementation of computers in foreign language education and learner centred approach are practically at the
same time. This research aims to find out the changes in the attitudes of the learners in French programme at
Uludag University towards computer assisted language learning. Are there any differences between the attitudes
of the learners who have participated in French Programme in their previous life and after tree month exposure
process to computer assisted language learning?
A student's attitude and motivation has frequently been reported to be the most critical factor for success within
computer-assisted language learning (CALL) environments (Brandl, 2002). Motivation, according to Winne and
Marx (1989), is both a condition for, and a result of, effective instruction. Based on these claims, it is plausible to
speculate that students' motivation plays an important role in successful CALL implementation and that, if used
effectively, the CALL environment can enhance students' motivation to learn a foreign language. This study
investigated the role of motivation and attitudes on student French foreign learning in an online course context. It
also examined how this new foreign learning environment affected students' attitudes and motivation, and how
this, in turn, affected students' foreign learning.
There are similar definitions of computer assisted language learning. CALL is defined as a method to language
teaching and learning in which computer technology is used as an aid to the presentation reinforcement and
assessment of material to be learned including a substantial interactive element. Most FLT specialists agree that

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CALL is a tool which helps teachers to facilitate language learning process. They think that CALL can be used
to reinforce what has been learned in the classrooms. It might also be used as an alternative help for the learners.
Although most research (Meskill, 1996), suggests that comprehension is aided by the conjunction of aural/visual
processing if there is congruence between the verbal and visual elements, some students may experience
(especially in a non-native language) perceptual/cognitive overload and feel that information in ready-made
multimedia lectures escapes them (Burston &amp; Monville-Burston, 1996; (Monville)-Burston, 1997) )
There is no doubt that CALL has developed a lot since the day it was introduced to education field. Recently
teachers have started to consider the use of computers as an indispensable part of foreign language teaching and
learning process. Due to technological advancement, computer has the potential part of foreign language
teaching and learning. Communicative CALL gained praise among educationalists and communicative CALL is
largely based on communicative method in language learning. In this approach it is argued that computer based
exercises should focus more on using forms. There are many explications suggesting the importance of studentstudent interaction in communicative CALL among French foreign language specialists. In communicative
CALL the focus shouldn’t be on what students do with the computer but rather what they do with each other
while working at the computer.

Gardner's Socio-educational Model of Foreign Language Learning (FLL)
The role of foreign learning motivation has been intensively studied by social psychologists in Canada, where
French and English are the two official languages. Gardner (1985) hypothesized that foreign language learners
with positive attitudes toward the target culture and people will learn the target language more effectively than
those who do not have such positive attitudes. In their earlier studies, Gardner and Lambert (1959) found that
aptitude and motivation were the two factors most strongly associated with learners' second language
achievement. Gardner and MacIntyre (1993) drew together the findings from many studies over several decades
and developed Gardner's “socio-educational model of FLL” (see Figure 1).
Figure 1: Representation of Socio-educational Model of SLA (Gardner &amp; MacIntyre, 1993)

Proponents of this model of SLA (Gardner &amp; MacIntyre, 1992, 1993) claim that individual-difference variables
interact with both formal and informal language acquisition contexts and influence both linguistic and nonlinguistic outcomes. Gardner and MacIntyre (1993, p. 9) argue that this model shows the importance of what
takes place in the learning contexts: “Teachers, instructional aids, curricula, and the like clearly have an effect on
what is learned and how students react to the experience.” The model also predicts that student' linguistic

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outcomes and affects their non-linguistic outcomes and that both types of outcomes will have an influence on
individual-difference variables including language attitudes and motivation.

The role of the computer in French Foreign Language (FFL)
There are diverse opinions among language specialists about the role of computer and the teacher in CALL
programmes. The difference between computer as a tutor and computer as instrument is the most ordinary
discussion in the field. When the character of CALL is examined carefully, it can be easily recognised that the
view of computer as instrument became more prevalent with the arrival of the multimedia computer and internet.
From the teacher’ position, the computer is totally dependant on the teacher in many ways. It is unable to create
educational materials without a human to direct it. The progressive view is that teacher should take a less
intrusive role in managing language learning with the arrival of multimedia. Teacher should take the role of
facilitator rather than being the unique authority. We can refer to the teacher as a mediator between the computer
and learners throughout the learning process, serving the role of keeping things running smoothly.
The computers have some specific advantage as organising of materials, including volume of material and
random presentation, scoring and record-keeping, graphics and animation, including allowing student control,
recording and storage of learner responses. Certain design issues affect just how interesting the particular tool
creates motivation. It must be surely accepted that CALL is a method in which four skills of the target language
can be practised effectively. By choosing the correct software programme, both productive and receptive skills
can be concentrated. Another advantage of CALL is that target culture could be transmitted to the learners
through authentic software programmes.
Computers have a useful contribution to the development of oral skills when they are used wisely. Computer
simulations are really motivating for the learners. For example dialogues studies can be done with the help of the
movie parts in computers and intonation exercises might be added to these activities.
For listening skills in CALL many techniques can be used to develop listening skills of the learners. By listening
to the speakers in software programme without any subtitles, learners will be exposed to natural sounds of the
target language. Learners will pay attention to pronunciation of particular words and compare their own
pronunciation with native ones.
There are a lot of books and research papers that discuss whether classic class lessons or CALL programmes are
more effective in foreign language learning. Several articles have been found which are trying to reflect learners’
feedback about CALL. For example the study of Ayres examines learner attitudes towards the use of CALL and
their perceived view of its relevancy to their course of study. This study reports whether there was any relation
between the perceived usefulness of CALL, and the students’ level of computer literacy, language level and the
age.

Methodology and Subjects of the study
There are two main purpose of this study. French language programme in French programme at Uludag
University is discussed with its main frames and its integration with CALL is focused on. The number of the
participants in the study was limited to the number of 4th grade class students. The attitude of the learners
towards computer assisted language learning and possible changes in their attitudes towards CALL in a tree
month process are examined. For this research, qualitative approach is considered to be the most convenient one
because it is based on the idea of making sense of the data. The data collected from the questionnaire were
evaluated with qualitative approach; but quantitative approach was also used to count and measure the data in
order to analyse the results.
The subjects of this study are the students of French programme at Uludag University during 2009-2010
academic year. It is a well-known reality that questionnaire are used data collection instruments in descriptive
studies. To learn the attitudes of the students who are enrolled in French programme at Uludag University
towards CALL, a questionnaire was applied to them twice in the format of pre-test and post-test. Questions in
both pre-test and post-test were the same so as to observe probable difference in their attitude towards CALL in
tree month process. The questionnaire was applied to the subjects in their mother language and a description

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about the questionnaire was given to the learners. The questionnaire includes totally 7 questions. In the
evaluation phase of the questionnaire, all data were processed in SPSS and analysed using different analysis
programmes.
The purpose of the present questionnaire was to learn whether there occurred any changes in the attitudes of
Uludag University French Programme learner towards CALL in tree-month process. For this motive, the
questionnaire was applied to the learners twice to see the possible changes in their attitudes towards CALL.

The Results and Analysis of learner’s responses
When we examine the answers of the learners to item 1 “I believe that using computers in French foreign
language learning is a motivation”, they seem really positive in pre-test. The aim of this item is to learn the ideas
of the subjects about the motivational aspect of using computers in French foreign language learning. We can
say that the learners think that CALL is really a useful method in French foreign language learning. When we
look the answers of the learners in both pre-test and post-test, we can say that they believe that using computers
in French foreign language learning is a motivation way in many aspects. As well known, learners use computers
in many fields of their life; but it is not frequent to use computers in foreign language learning among the
learners. In item 2 “I think that CALL is really an effective method in French foreign language learning”, the
learners are relatively optimistic to CALL. The learners had a positive attitude towards computers assisted
language learning with arithmetical average more than 85% in both pre-test and post-test. In general, they
believe that CALL is an effective approach in French foreign language learning. It can be said that the learners
have the assumption that CALL can be an effective method. In item 3 “I believe that computers will give me
indispensable feedback when I make mistake”, the learners had the idea that the computers would not give
necessary feedback if they make mistakes and be a good guide for them to reach the right point during their
activities in tests. In pre-test, it can be seen that the learners had a negative attitudes towards computers’ giving
indispensable feedback when they make mistakes during CALL activities. In item 4 “I think that using
computers in French foreign language is more useful than coursebooks in terms of verbal and non-verbal
forms”, the aim of this item is to learn the idea of learners on transmission the target culture through computers
and comparing the use of computers and coursebooks from this perspective. We can conclude that the learners
have positive attitudes towards learning the target culture through computers after tree-month CALL exposure.
They consider that the computers realize superior work than coursebooks in transmission the target culture while
teaching the French foreign language. In item 5 “The studies in computer assisted French language learning are
mainly individual and there is no interaction among the learners”, when the arithmetical average of this item is
examined, it can be say that the learners don’t consider the studies in CALL boring. They don’t agree with the
statement in this item. The situation has not changed in post-test. We can say that the learners do not think the
studies in CALL boring after tree-month. In item 6 “CALL which is not maintained by classic classroom lessons
can cause learners’ teamwork skills to disappear”, from the results obtained in pre-test, it can be put forward
that the learners disagree with the idea that CALL is not supported by classical classroom lessons can cause
students’ teamwork skills to disappear. In item 7 “Can you suggest improvements that could be made to the
physical presentation of lectures?” The aim of the question was to elicit students' comments on various aspects
of the physical presentation of lectures which concerned the researchers. Overall it appears that students were
more tolerant than would have been expected. Two complained about the occasional flickering of the screen, two
about the necessity of having dimmed lights; except for one exception they considered that the larger than
necessary capacity of the lecture theatre was not problematic. Learner performance varied widely and showed a
not unexpected relation with the responses given for item 7. The most adventurous learner the explorers were the
ones who had the most thorough knowledge of the structure and working of the computer. Two felt that
sometimes the “technology got in the way” (i.e. created a distance) and did not make the interaction between the
teacher and the class as easy as it would have been if the lecture had been delivered in a more conventional
fashion.
Informal remarks as well as the end of semester questionnaire seem to indicate that the use of computer by
students became more frequent and varied after questionnaire. We believe too that the interview had the effect of
convincing the students that they were given special attention.
The learners of the corpus do not agree with the description in this item. They may have thought that activities in
computer are not the activities which will cause their teamwork skills to disappear. We can say that majority of
the subjects participating in this research are afraid of failure in CALL process.

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Conclusion
The aim of our research was to collect experiential data on CALL, its application areas, its advantages and
disadvantages. What was investigated was the initial attitudes and reactions of learners after a tree-months of
use. The present research was contextualized at Uludag University French section. It was aimed to examine the
learners’ ideas and attitudes towards CALL. The data for the answers of the research questions were obtained
from the learners of French section. The instrument to accumulate data was a questionnaire which was applied to
the learners in the format of pre-test and post test. The possible needs of the learners for CALL applications were
also taken into consideration. It was recognised that tree months CALL experience process had a positive
consequence in the attitudes of the learners. .According to the answers of the learners to the questions in the
questionnaire, we can recognize that the learners had favourable attitudes towards computer assisted French
language learning. What was obtained was some preliminary indications on the usefulness and efficiency as
perceived by learners of a completely new way of delivering a content course in our language departments and
an innovating tool aimed at facilitating self-study. Learners with aversions to technology also deserve our
attention and support, and need to be provided with learning tools that they prefer. Student attitude to towards
educational technology in the classroom was overwhelmingly favourable. In some cases this positive attitude
was accompanied by enthusiasm, but an instrumentalist reaction was much more the norm. In general, students
felt that, like it or not, they had to adapt to the fact that teaching and learning were bound to become increasingly
computer-based. It may be useful through a self-assessment questionnaire, for example to be aware from the
beginning of the course of the cognitive and learning differences

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Reference
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                <text>This study focuses on computer assisted language learning and the  attitude of the learners who are enrolled in French department at Uludag  University. A total of 42 learners in French programme at Uludag University  participated in the study as subjects. They were given questionnaire in pre-test and  post-test at the beginning of the academic period and tree months later to observe  whether there were any changes in their attitude towards computer assisted  learning. The data were collected in the 2009-2010 education-instruction year. The  data obtained in the study was analysed using the SPSS statistics computer  programme. It was also found out that the CALL method supported with the  language learning programme was more effective in positive development of  achievement levels of learners. The results exposed that there occurred positive  changes in the attitudes of the subjects towards computer assisted language  learning during three months. Although most learners accept changes in teaching  delivery and welcome the enrichment provided by new educational tools, some  refuse them. Differences in learning styles exist, and will continue to exist, and  cannot be dismissed.</text>
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