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                    <text>1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo

The Effects of Five Avocado Rootstocks on Seedling Properties of
Commercial Avocado Cultivars
Sadettin Küçük
West Mediterrenean Agricultural Research Institute
Antalya-Turkey
Recep Coşkun
West Mediterrenean Agricultural Research Institute
Antalya-Turkey
Meliha Temirkaynak
West Mediterrenean Agricultural Research Institute
Antalya-Turkey

Abstract: In this study, results of which have been presented, our aim is to determine
avocado commercial cultivars grown in Antalya- Turkey ecological conditions and their
graft compatibity with Persea americana var. drymifolia and P. nubigena var.
guatemolensis avocado rootstocks. In the research as experimental material Topa Topa,
Blace, Mexicola, W1 and W2 rootstocks together with Hass, Fuerte, Zutano and Bacon
commercial avocado cultivars have been used. The study was conducted between 20062007 in BATEM. The results of the experiment have shown that rootstocks were
statistically significant in the graft survival rate (%), rootstock diameter (cm), scion
diameter (cm), shoot length (cm) and in terms of properties, and the best results could
be achived from plants which are Fuerte avocado cultivar grafted on Topa Topa
rootstock.
Keyworlds: Avocado, grafting, scion/rootstock combination, survival rate, Fuerte, Topa
Topa.

Indroduction
Avocado is an important fruit species, belonging to Lauracea family, which is evergreen and
economicaly significant (Zentmyer, 1987). Today avocado is being cultivated in nearly 50 countries in the
world. The first rank of avocado production and trade belongs to countries such as Mexico, USA, Brezil,
Dominic Republic and South Africa. World avocado production, as of 2007, has been realized in 3.2 million tons
(FAO, 2007). These countries are relatively far from North European countries where avocado is consumed
extensively. Turkey, due to its geographical and ecological conditions, has plays a significant role in avocado
production and exportation.
Particularlythe Mediterrenean Region of Turkey, because ofthe factthatitsupplies specialtemperature
avocado requiresisthe mostimportant province in growing this species. There is a 400-ton avocado production
in Turkey all of which is being realized in Antalya, Hatay and Mersin, allsituated in the Mediterrenean region.
In order to investigate avocado growing facilities in our country,initial studies in early 1970’s started
via our Institute by introducing the four important commercial avocado cultivars from California. Through this
study and those in forthcoming years,the yield which isto show various cultivars ofthe Mediterrenean region in
differentlocations will depict the fruit quality,the harvesttime, adaptation to climate, have been examined, and
relative varieties have been selected (Dogrular et al., 1983, Demirkol 1998, Bayram and Aşkın, 2006).
Nevertheless, growing of avocado fruit, which was introduced in Turkey in the 1970’s, has not reached
the required level as yet. At present,thereis an avocado production of 400 tonsin our country, particularlyin the
Mediterrenean region.
In fruitculture, grafting of different scions and rootstocks has been a traditional practise with the aim to
confer dwarfing characteristics and resistance to environmental stress like salinity, cold, drought, pests and
diseases. The new charecteristics obtained in the plant must be the result of an intense interaction between the
rootstock and scion carrying different genetic information (Reyes-Santamaria et all. 2002, Mickelbart1 and
89

�1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo

Arpaia, 2002, Krezdorn, 1973).
Com mercial avocado trees are propagated by grafting of budding scions of desirable cultivars onto
seedling or grafted rootstocks. Avocados can be grown from seeds, but fruit quality and yield potential will be
quite variable. Grafted on budded avokado trees usually produce fruits when three to five years old, while
seedlings often require five to seven years.
Originating in the tropics,the avocado is very sensitive to climatic factors prevailing in the subtropics,
especially drought and extreme temperatures. Extreme temperatures result in low productivity and sometimes
even in severe damage to the tree canopy ( Bergh 1976; Oppenheimer 1978). Avocado is also sensitive to soil
stress and salinity. A very com mon soil stress factor is root rot disease, caused by the fungus Phytophthora
cinnamomi, which is usually associated with lack of aeration ( Ben-Ya’acov and Michelson, 1995). In certain
years, due tothis disease factorin avocado orchard in California,it has been stated that asmuch as 20% tree loss
took place. In avocado growing, there is no resistant to this disease in tropical and subtropical climate zones.
However by using grafting tecniques,itis possibleto reduce loss resulting from this disease factor.
The main climatic factor affecting avocado production in the cooler subtropics is low temperatures.
Indeed, avocado is extremly sensitive to cold, especiallyin the blooming period. Furthermore, chilling problems
associated with avocado growing in the subtropics such as Turkey do occur. Com mercial avocado cultivars are
more sensitive to cold temperature than rootstocks. Grafting is a widely used technique in avocado growing
regions namely Turkey, Israel and Spain, for rootstocks are resistant to cold. Therefore, some rootstocks
belonging to Mexican race, which is widely used in grafting, are more resistantto cold than others.
Referring to the requirements mentioned above, the objective of this study, results of which have been
presented, was to evaluate the rootstock potential of avocado cultivars,‘Topa Topa’,‘Blace’,‘Mexicola’, ‘W1’
and ‘W2’ for commercial avocado cultivars.

Material and Methods
This study was conducted between the years 2006-2007 in a nursery situated in West Mediterrenean
Agricultural Research Institute in Antalya-Turkey (360 52 N',300 43' E).
Inthis study,five Mexican rootstocks (Topa Topa’,‘Blace’,‘Mexicola’,‘W1’ and ‘W2’ were evaluated
as rootstocks.Hass (belonging to Guatemale race), Zutano (belonging to Mexican race), Bacon and Fuerte
(MexiconxGuatemala hybrids) were used as scions. By the time rootstocks levelled to 75 cm on May 2nd 2007,
scions were grafted onto rootstocks with Whip&amp;Tongue Grafting. On July 20th 2007, grafttie was untied; graft
survival rate (%), rootstock diameter (cm), scion diameter (cm) and shoot length (cm; distance between graft
point and the top of shoot) were measured.
All grafting groups were laid out with three replications and 10 plants in each replicants in the
randomised block experimental design. Data were subject to analysis of variance by SAS statistical program
(SAS Institute, Version 7) and means were compared by LSD’s (Least Significant Differences) test at 0.05
significance levels.

Results
1. The Effects of Different Rootstocks on Graft SurvivalRate (%)
The effects of differentrootstocks on graftsurvivalrate(%) is shown in Table 1. Results revealthatthe
effects of rootstocks on graft survival rate (%) are statisticaly significant (Table 1). According to reciprocal
interaction between rootstocka and cultivars, it can be observed that graft survival rate is directly associated
with,rootstocks and cultivars and theirreciprocalinteraction, at main effectlevel. At rootstock level,the highest
graftsurvivalratesthat have been found out and fixed were 92.7 % in TTS rootstocks;the lowest graftsurvival
rate 83.38 % in Y2 rootstock . When graftsurvivalrates of cultivars are evaluated, on the otherhand,the highest
graft survival rate of 96.67 % was determined in Fuerte cultivar.This cultivar is followed by Bacon (90.83) and
Zutano (84.17 %) cultivar. Consequently, in terms of graftsurvival rate, however,the lowest graft survival rate
of 83.34 % has been determined in Hass cultivar. Upon examination of data in Table 1.it can be seen that at
reciprocal interaction level, Fuerte onto which TTS and Mexicola rootstock were grafted with a highest 100%
graft survival rate was found. These differences, most probably resulting from ecological conditions,
maintanence and the differences between cultural practicesthat are applied. Nonetheless,results clearly indicate
rootstocks have affected graftsurvival rates and in the defined experiment conditions,the bestresults have been
achieved from plants grafted onto TTS rootstocks.

90

�1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo

Cultivar
Mean Rootstock
Rootstock
Hass
Fuerte
Zutano
Bacon
Y1
79.17 Ed
91.67 Cc
79.17 Ed
95.83 Bb
86.46 D
Y2
79.17 Ed
95.83 Bb
70.83 Ed
91.67 Cc
84.38 E
TTS
91.67 Cc
100.00 Aa
91.67 Cc
87.50 Dd
92.71 A
Blace
87.50 Dd
95.83 Bb
87.50 Dd
87.50 Dd
89.58 C
Mexicola
79.17 Ed
100.00 Aa
91.67 Cc
91.67 Cc
90.63 B
Çeşit Ort
83.34 d
96.67 a
84.17 c
90.83 b
LSD% 5 A*, LSD%5 Ç*, LSD%5 AxÇ*
*: significant (p&lt;0.05)
Means followed by the same letters within each cultivar are not significantly different according to LSD0,05.
Table 1. Effect of rootstocks on the graftsurvival rate (%)

2. The Effects of Different Rootstocks on Shoot Length (cm)
Table 2. shows the effects of different rootstocks on shoot length (cm). Looking into shoot length and
statistical analyses , it can be seen that rootstock and cultivar reciprocal interaction between rootstock and
cultivar are significantly effective. The highest shoot length of 29.24 cm on rootstock level has been obtained
from plants gtafted onto TTS rootstock. The lowest value, however, is observed in plants grafted onto W2
rootstock. The shoot length in this group has been fixed as 18.60 cm (Table 2.).In statistical analyses’ amount
varieties,the highest shoot length of 28.27 cm with Fuerte;the lowest value of 16.62 cm with Bacon has been
recorded (Table 2). At rootstock x cultivar reciprocal interaction level,the highest shoot length value of 36.55
cm has been obtained from Fuerte plants grafted onto TTS rootstock.

Cultivar
Mean Rootstock
Rootstock
Hass
Fuerte
Zutano
Bacon
Y1
18.33 Dd
25.32 Ba
26.37 Aa
15.31 Dd
21.33 C
Y2
21.96 BCd
22.84 BCc
17.67 Dd
11.92 Dd
18.60 D
TTS
29.28 Aa
36.55 Aa
29.97 Aa
21.14 Cd
29.24 A
Blace
23.97 Bb
27.81 Ba
35.38 Aa
16.56 Dd
25.93 B
Mexicola
23.32 Bb
28.82 Aa
30.44 Aa
18.18 Dd
25.19 B
Mean Cultivar
23.37 c
28.27 a
27.97 b
16.62 d
LSD% 5 A*, LSD%5 Ç*, LSD%5 AxÇ*
*: significant (p&lt;0.05)
Means followed by the same letters within each cultivar are not significantly different according to LSD0,05.
Table 2. Effects of rootstocks on the shootlenght (cm)

3. The Effects of Different Rootstocks on Rootstock Diameter (cm)
Data concerning effects of different rootstocks on rootstock diameter and their statistical evaluations
have been presented in Table 3. It has been determined that rootstock diameter indicates different values
according to reciprocal interaction. Upon being evaluated in terms of rootstock,the highest data with rootstock
diameter of 9.39 cm has been measured in plants grafted onto W2 rootstock (Table 3).On the otherhand, when
data in Table 3. are to be examined at cultivar level, the highest rootstock diameter of 9.32 cm with Zutano
cultivar; the lowest rootstock diameter of 8.73 cm at Fuerte cultivar have been found out and fixed. When all
rootstock and cultivars are assesed,the highestrootstock diameter of 9.99 cm has been fixed with Zutano grafted
onto W1 rootstock.

91

�1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo

Rootstock
Y1
Y2
TTS
Blace
Mexicola
Mean Cultivar
LSD% 5 A*, LSD%5

Cultivar
Hass
Fuerte
8.65 BCc
9.55 Aa
9.88 Aa
8.84 ABb
8.84 ABb
8.13 Cc
8.93 Bb
8.51 Cc
9.20 Aa
8.63 Cc
9.10 a
8.73 bc
Ç*, LSD%5 AxÇ*

Mean Rootstock
Zutano
9.99 Aa
9.53 Aa
9.03 Aa
9.10 Aa
8.94 ABb
9.32 a

Bacon
9.17 Aa
9.32 Aa
8.54 Cc
8.87 Bb
9.09 Aa
8.99 ab

9.34 A
9.39 A
8.64 C
8.85 B
8.97 AB

*: significant (p&lt;0.05)
Means followed by the same letters within each cultivar are not significantly different according to LSD0,05.

Table 3. Effects of rootstocks on the rootstock diameter (cm)

4. The Effects of Different Rootstocks on Scion Diameter (cm)
Data related to effects of different rootstock on scion diameter have been presented in Table 4. Upon
examining scion diameter values and theirstatistical evaluations,itcan be stated thatrootstocks, cultivars and the
reciprocal interaction of these two factors have considerable impact on scion diameter. At rootstock level, the
highest scion diameter value of 5.93 cm has been obtained from plants grafted onto W2 rootstock, while the
lowest value of 18.60 cm has been found in plants grafted onto W2 rootstock (Table 4.). Statistical analyses
between cultivars have been recorded as of the highest scion diameter being 5.99 cm in Bacon cultivar; the
lowest scion diameter being 5.29 cm with Zutano cultivar (Table 4.).

Cultivar
Rootstock
Hass
Fuerte
Y1
5.62 Cb
5.56 Cbc
Y2
6.43 Aa
5.33 Cc
TTS
5.66 Bb
6.50 Aa
Blace
5.71 Ba
5.56 Cbc
Mexicola
6.17 Aa
5.40 Cc
Mean Cultivar
5.92 a
5.67 b
LSD% 5 A*, LSD%5 Ç*, LSD%5 AxÇ*

Mean Rootstock
Zutano
5.81 Aa
4.75 Cc
5.16 Cc
5.53 Cc
5.21 Cc
5.29 c

Bacon
6.02 Aa
5.81 Aa
6.41 Aa
5.70 Ba
5.99 Aa
5.99 a

5.75 B
5.58 C
5.93 A
5.63 BC
5.69 B

*: significant (p&lt;0.05)
Means followed by the same letters within each cultivar are not significantly different according to LSD0,05.

Table 4. Effects of rootstocks on the scion diameter (cm)

Discussion and Conclusion
In the previous studies concerning avocado rootstock and cultivar inter relations, the yield has been
emphasized and assesmentsin graftsurvival rateinthese sources have been mentioned to a certain extent.
Research findings revealthatplants grafted onto differentrootstocks vary interms of graftsurvivalrate,
scion diameter,rootstock diameter and shoot length. Nevertheless, in Fuerte cultivar the highest graft survival
rate (%) has been fixed in plants grafted onto Mexicola rootstock. Similar results show similarities between
findings by Ben-Ya’acov A. and Esther Michelson (1995) who researchs on effect of differentrootstock on graft
survival rate that were previously presented in Fuerte and Hass avocado cultivars. These researchers, in their
studies, have obtained the highest graft survivalrate of 90 % from plants grafted onto Mexicola rootstock To put
itin generalterms, as a resultof such studies,itcan be stated thatthe Fuerte cultivar grafted onto TTS rootstock
seems to be the bestrootstock, scion combination,inthe light of allfindings.

Acknowledgements
The authors greatfully thank Mrs. Sedef Bircan for proofreading the material.

92

�1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo

References
Bayram S and M. A. Aşkın, 2006. Using of Oil and Dry Matter Parameters in Some Avocado
Cultivars for Determination of Harvest Date. Süleyman Demirel Üniversitesi Ziraat
Fakültesi Dergisi 1(2):38-48
Ben-Ya’acov A. and E. Michelson, 1995. Avokado rootstocks. In: J. Janick (ed.)
Horticultural Reviews. Volume 17:381-429. John Wiley and Sons, Inc. New York, NY.
Coffey M. D, 1987. Phytophthora Root Rot of Avocado — An Integrated Approach to
Control in California. California Avocado Society 1987 Yearbook 71: 121-137
Demirkol, A. 1998. Avocado Growing in Turkey. World Avocado Congress III, 22–27
October, Tel-Aviv. Procedings, 451–456.
Dogrular, H.A, M. Tuncay ve A. Sengüler, 1983. Antalya Ve Alanya Kosullarında Avokado Çesitlerinin Adaptasyonu (Ara
Sonuç Raporu). Turunçgil Arastırma Enstitüsü, Antalya, Yayınlanmamıs.
FAO, 2007. Statistical Database. http://www.fao.org
Kadman, A. and A. Ben-Ya'acov. 1982. Selection of avocado rootstocks for calcareous soils. J. Plant Nutr. 5:639-643.
Krezdorn, A.H., 1973. Influence of Rootstock on Cold Hardiness of Avocados. Proc. Fla. State Hort. Soc. 86:346-348
Mickelbart1 M. V. and M. L. Arpaia, 2002. Rootstock Influences Changes in Ion Concentrations, Growth, and
Photosynthesis of ‘Hass’ Avocado Trees in Response to Salinity. J. AMER. SOC. HORT. SCI. 127(4):649–655.
Reyes-Santamaría I., T. Terrazas, A. F. Barrientos-Priego and C. Trejo, 2002. Xylem conductivity and vulnerability in
cultivars
and
races
of
avocado.
Scientia
Horticulturae,
Vol.92,
Issue
2,
pages
97-105.
Zentmyer G.A.,1987. Avocados Around The World. Calif. Avoc. Soc.Yearb., 71:63-77.

93

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Coskun, Recep
Temirkaynak, Meliha</text>
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                <text>In this study, results of which have been presented, our aim is to determine  avocado commercial cultivars grown in Antalya- Turkey ecological conditions and their  graft compatibity with Persea americana var. drymifolia and P. nubigena var.  guatemolensis avocado rootstocks. In the research as experimental material Topa Topa,  Blace, Mexicola, W1 and W2 rootstocks together with Hass, Fuerte, Zutano and Bacon  commercial avocado cultivars have been used. The study was conducted between 2006-  2007 in BATEM. The results of the experiment have shown that rootstocks were  statistically significant in the graft survival rate (%), rootstock diameter (cm), scion  diameter (cm), shoot length (cm) and in terms of properties, and the best results could  be achived from plants which are Fuerte avocado cultivar grafted on Topa Topa  rootstock.</text>
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                    <text>The Effects of Five Avocado Rootstocks on Seedling Properties of
Commercial Avocado Cultivars
Sadettin Küçük
Recep Coşkun
Meliha Temirkaynak
West Mediterrenean Agricultural Research Institute, Antalya-Turkey

Abstract: In this study, results of which have been presented, our aim is to determine avocado commercial
cultivars grown in Antalya- Turkey ecological conditions and their graft compatibity with Persea americana
var. drymifolia and P. nubigena var. guatemolensis avocado rootstocks. In the research as experimental material
Topa Topa, Blace, Mexicola, W1 and W2 rootstocks together with Hass, Fuerte, Zutano and Bacon commercial
avocado cultivars have been used. The study was conducted between 2006-2007 in BATEM. The results of the
experiment have shown that rootstocks were statistically significant in the graft survival rate (%), rootstock
diameter (cm), scion diameter (cm), shoot length (cm) and in terms of properties, and the best results could be
achived from plants which are Fuerte avocado cultivar grafted on Topa Topa rootstock.

Keyworlds: Avocado, grafting, scion/rootstock combination, survival rate, Fuerte, Topa Topa.

Indroduction
Avocado is an important fruit species, belonging to Lauracea family, which is evergreen and
economicaly significant (Zentmyer, 1987). Today avocado is being cultivated in nearly 50 countries in the
world. The first rank of avocado production and trade belongs to countries such as Mexico, USA, Brezil,
Dominic Republic and South Africa. World avocado production, as of 2007, has been realized in 3.2 million tons
(FAO, 2007). These countries are relatively far from North European countries where avocado is consumed
extensively. Turkey, due to its geographical and ecological conditions, has plays a significant role in avocado
production and exportation.
Particularly the Mediterrenean Region of Turkey, because of the fact that it supplies special temperature
avocado requires is the most important province in growing this species. There is a 400-ton avocado production
in Turkey all of which is being realized in Antalya, Hatay and Mersin, all situated in the Mediterrenean region.
In order to investigate avocado growing facilities in our country, initial studies in early 1970’s started
via our Institute by introducing the four important commercial avocado cultivars from California. Through this
study and those in forthcoming years, the yield which is to show various cultivars of the Mediterrenean region in
different locations will depict the fruit quality, the harvest time, adaptation to climate, have been examined, and
relative varieties have been selected (Dogrular et al., 1983, Demirkol 1998, Bayram and Aşkın, 2006).
Nevertheless, growing of avocado fruit, which was introduced in Turkey in the 1970’s, has not reached
the required level as yet. At present, there is an avocado production of 400 tons in our country, particularly in the
Mediterrenean region.
In fruit culture, grafting of different scions and rootstocks has been a traditional practise with the aim to
confer dwarfing characteristics and resistance to environmental stress like salinity, cold, drought, pests and
diseases. The new charecteristics obtained in the plant must be the result of an intense interaction between the

38

�rootstock and scion carrying different genetic information (Reyes-Santamaria et all. 2002, Mickelbart1 and
Arpaia, 2002, Krezdorn, 1973).
Commercial avocado trees are propagated by grafting of budding scions of desirable cultivars onto
seedling or grafted rootstocks. Avocados can be grown from seeds, but fruit quality and yield potential will be
quite variable. Grafted on budded avokado trees usually produce fruits when three to five years old, while
seedlings often require five to seven years.
Originating in the tropics, the avocado is very sensitive to climatic factors prevailing in the subtropics,
especially drought and extreme temperatures. Extreme temperatures result in low productivity and sometimes
even in severe damage to the tree canopy ( Bergh 1976; Oppenheimer 1978). Avocado is also sensitive to soil
stress and salinity. A very common soil stress factor is root rot disease, caused by the fungus Phytophthora
cinnamomi, which is usually associated with lack of aeration ( Ben-Ya’acov and Michelson, 1995). In certain
years, due to this disease factor in avocado orchard in California, it has been stated that asmuch as 20% tree loss
took place. In avocado growing, there is no resistant to this disease in tropical and subtropical climate zones.
However by using grafting tecniques, it is possible to reduce loss resulting from this disease factor.
The main climatic factor affecting avocado production in the cooler subtropics is low temperatures.
Indeed, avocado is extremly sensitive to cold, especially in the blooming period. Furthermore, chilling problems
associated with avocado growing in the subtropics such as Turkey do occur. Commercial avocado cultivars are
more sensitive to cold temperature than rootstocks. Grafting is a widely used technique in avocado growing
regions namely Turkey, Israel and Spain, for rootstocks are resistant to cold. Therefore, some rootstocks
belonging to Mexican race, which is widely used in grafting, are more resistant to cold than others.
Referring to the requirements mentioned above, the objective of this study, results of which have been
presented, was to evaluate the rootstock potential of avocado cultivars, ‘Topa Topa’, ‘Blace’, ‘Mexicola’, ‘W1’
and ‘W2’ for commercial avocado cultivars.

Material and Methods
This study was conducted between the years 2006-2007 in a nursery situated in West Mediterrenean
Agricultural Research Institute in Antalya-Turkey (360 52 N', 300 43' E).
In this study, five Mexican rootstocks (Topa Topa’, ‘Blace’, ‘Mexicola’, ‘W1’ and ‘W2’ were evaluated
as rootstocks.Hass (belonging to Guatemale race), Zutano (belonging to Mexican race), Bacon and Fuerte
(MexiconxGuatemala hybrids) were used as scions. By the time rootstocks levelled to 75 cm on May 2nd 2007,
scions were grafted onto rootstocks with Whip&amp;Tongue Grafting. On July 20th 2007, graft tie was untied; graft
survival rate (%), rootstock diameter (cm), scion diameter (cm) and shoot length (cm; distance between graft
point and the top of shoot) were measured.
All grafting groups were laid out with three replications and 10 plants in each replicants in the
randomised block experimental design. Data were subject to analysis of variance by SAS statistical program
(SAS Institute, Version 7) and means were compared by LSD’s (Least Significant Differences) test at 0.05
significance levels.

39

�Results
1. The Effects of Different Rootstocks on Graft Survival Rate (%)
The effects of different rootstocks on graft survival rate (%) is shown in Table 1. Results reveal that the
effects of rootstocks on graft survival rate (%) are statisticaly significant (Table 1). According to reciprocal
interaction between rootstocka and cultivars, it can be observed that graft survival rate is directly associated
with, rootstocks and cultivars and their reciprocal interaction, at main effect level. At rootstock level, the highest
graft survival rates that have been found out and fixed were 92.7 % in TTS rootstocks; the lowest graft survival
rate 83.38 % in Y2 rootstock . When graft survival rates of cultivars are evaluated, on the otherhand, the highest
graft survival rate of 96.67 % was determined in Fuerte cultivar.This cultivar is followed by Bacon (90.83) and
Zutano (84.17 %) cultivar. Consequently, in terms of graft survival rate, however, the lowest graft survival rate
of 83.34 % has been determined in Hass cultivar. Upon examination of data in Table 1.it can be seen that at
reciprocal interaction level, Fuerte onto which TTS and Mexicola rootstock were grafted with a highest 100%
graft survival rate was found. These differences, most probably resulting from ecological conditions,
maintanence and the differences between cultural practices that are applied. Nonetheless, results clearly indicate
rootstocks have affected graft survival rates and in the defined experiment conditions, the best results have been
achieved from plants grafted onto TTS rootstocks.
Table 1. Effect of rootstocks on the graft survival rate (%)
Cultivar
Hass
Fuerte
Zutano
Rootstock
Y1
79.17 Ed
91.67 Cc
79.17 Ed
Y2
79.17 Ed
95.83 Bb
70.83 Ed
TTS
91.67 Cc
91.67 Cc
100.00 Aa
Blace
87.50 Dd
95.83 Bb
87.50 Dd
Mexicola
79.17 Ed
91.67 Cc
100.00 Aa
Çeşit Ort
83.34 d
96.67 a
84.17 c
LSD%5 A*, LSD%5 Ç*, LSD%5 AxÇ*

Mean Rootstock
Bacon
95.83 Bb
91.67 Cc
87.50 Dd
87.50 Dd
91.67 Cc
90.83 b

86.46 D
84.38 E
92.71 A
89.58 C
90.63 B

*: significant (p&lt;0.05)
Means followed by the same letters within each cultivar are not significantly different according to LSD0,05.

2. The Effects of Different Rootstocks on Shoot Length (cm)
Table 2. shows the effects of different rootstocks on shoot length (cm). Looking into shoot length and
statistical analyses , it can be seen that rootstock and cultivar reciprocal interaction between rootstock and
cultivar are significantly effective. The highest shoot length of 29.24 cm on rootstock level has been obtained
from plants gtafted onto TTS rootstock. The lowest value, however, is observed in plants grafted onto W2
rootstock. The shoot length in this group has been fixed as 18.60 cm (Table 2.). In statistical analyses’ amount
varieties, the highest shoot length of 28.27 cm with Fuerte; the lowest value of 16.62 cm with Bacon has been
recorded (Table 2). At rootstock x cultivar reciprocal interaction level, the highest shoot length value of 36.55
cm has been obtained from Fuerte plants grafted onto TTS rootstock.

40

�Table 2. Effects of rootstocks on the shoot lenght (cm)
Cultivar
Hass
Fuerte
Zutano
Rootstock
Y1
18.33 Dd
25.32 Ba
26.37 Aa
Y2
21.96 BCd
22.84 BCc
17.67 Dd
TTS
29.28 Aa
36.55 Aa
29.97 Aa
Blace
23.97 Bb
27.81 Ba
35.38 Aa
Mexicola
23.32 Bb
28.82 Aa
30.44 Aa
Mean Cultivar
23.37 c
28.27 a
27.97 b
LSD%5 A*, LSD%5 Ç*, LSD%5 AxÇ*

Mean Rootstock
Bacon
15.31 Dd
11.92 Dd
21.14 Cd
16.56 Dd
18.18 Dd
16.62 d

21.33 C
18.60 D
29.24 A
25.93 B
25.19 B

*: significant (p&lt;0.05)
Means followed by the same letters within each cultivar are not significantly different according to LSD0,05.

3. The Effects of Different Rootstocks on Rootstock Diameter (mm)
Data concerning effects of different rootstocks on rootstock diameter and their statistical evaluations
have been presented in Table 3. It has been determined that rootstock diameter indicates different values
according to reciprocal interaction. Upon being evaluated in terms of rootstock, the highest data with rootstock
diameter of 9.39 mm has been measured in plants grafted onto W2 rootstock (Table 3). On the otherhand, when
data in Table 3. are to be examined at cultivar level, the highest rootstock diameter of 9.32 cm with Zutano
cultivar; the lowest rootstock diameter of 8.73 mm at Fuerte cultivar have been found out and fixed. When all
rootstock and cultivars are assesed, the highest rootstock diameter of 9.99 cm has been fixed with Zutano grafted
onto W1 rootstock.
Table 3. Effects of rootstocks on the rootstock diameter (mm)
Cultivar
Hass
Fuerte
Zutano
Rootstock
Y1
8.65 BCc
9.55 Aa
9.99 Aa
Y2
9.88 Aa
8.84 ABb
9.53 Aa
TTS
8.84 ABb
8.13 Cc
9.03 Aa
Blace
8.93 Bb
8.51 Cc
9.10 Aa
Mexicola
9.20 Aa
8.63 Cc
8.94 ABb
Mean Cultivar
9.10 a
8.73 bc
9.32 a
LSD%5 A*, LSD%5 Ç*, LSD%5 AxÇ*

Mean Rootstock
Bacon
9.17 Aa
9.32 Aa
8.54 Cc
8.87 Bb
9.09 Aa
8.99 ab

9.34 A
9.39 A
8.64 C
8.85 B
8.97 AB

*: significant (p&lt;0.05)
Means followed by the same letters within each cultivar are not significantly different according to LSD0,05.

4. The Effects of Different Rootstocks on Scion Diameter mcm)
Data related to effects of different rootstock on scion diameter have been presented in Table 4. Upon
examining scion diameter values and their statistical evaluations,it can be stated that rootstocks, cultivars and the
reciprocal interaction of these two factors have considerable impact on scion diameter. At rootstock level, the
highest scion diameter value of 5.93 mm has been obtained from plants grafted onto W2 rootstock, while the
lowest value of 18.60 mm has been found in plants grafted onto W2 rootstock (Table 4.). Statistical analyses
between cultivars have been recorded as of the highest scion diameter being 5.99 mm in Bacon cultivar; the
lowest scion diameter being 5.29 mm with Zutano cultivar (Table 4.).

41

�Table 4. Effects of rootstocks on the scion diameter (mm)
Cultivar
Hass
Fuerte
Rootstock
Y1
5.62 Cb
5.56 Cbc
Y2
6.43 Aa
5.33 Cc
TTS
5.66 Bb
6.50 Aa
Blace
5.71 Ba
5.56 Cbc
Mexicola
6.17 Aa
5.40 Cc
Mean Cultivar
5.92 a
5.67 b
LSD%5 A*, LSD%5 Ç*, LSD%5 AxÇ*

Zutano
5.81 Aa
4.75 Cc
5.16 Cc
5.53 Cc
5.21 Cc
5.29 c

Mean Rootstock
Bacon
6.02 Aa
5.81 Aa
6.41 Aa
5.70 Ba
5.99 Aa
5.99 a

5.75 B
5.58 C
5.93 A
5.63 BC
5.69 B

*: significant (p&lt;0.05)
Means followed by the same letters within each cultivar are not significantly different according to LSD0,05.

Discussion and Conclusion
In the previous studies concerning avocado rootstock and cultivar inter relations, the yield has been
emphasized and assesments in graft survival rate in these sources have been mentioned to a certain extent.
Research findings reveal that plants grafted onto different rootstocks vary in terms of graft survival rate,
scion diameter,rootstock diameter and shoot length. Nevertheless, in Fuerte cultivar the highest graft survival
rate (%) has been fixed in plants grafted onto Mexicola rootstock. Similar results show similarities between
findings by Ben-Ya’acov A. and Esther Michelson (1995) who researchs on effect of different rootstock on graft
survival rate that were previously presented in Fuerte and Hass avocado cultivars. These researchers, in their
studies, have obtained the highest graft survival rate of 90 % from plants grafted onto Mexicola rootstock To put
it in general terms, as a result of such studies, it can be stated that the Fuerte cultivar grafted onto TTS rootstock
seems to be the best rootstock, scion combination, in the light of all findings.

Acknowledgements
The authors greatfully thank Mrs. Sedef Bircan for proofreading the material.

References:
Bayram S and M. A. Aşkın, 2006. Using of Oil and Dry Matter Parameters in Some Avocado
Cultivars for Determination of Harvest Date. Süleyman Demirel Üniversitesi Ziraat
Fakültesi Dergisi 1(2):38-48
Ben-Ya’acov A. and E. Michelson, 1995. Avokado rootstocks. In: J. Janick (ed.)
Horticultural Reviews. Volume 17:381-429. John Wiley and Sons, Inc. New York, NY.
Coffey M. D, 1987. Phytophthora Root Rot of Avocado — An Integrated Approach to
Control in California. California Avocado Society 1987 Yearbook 71: 121-137
Demirkol, A. 1998. Avocado Growing in Turkey. World Avocado Congress III, 22–27
October, Tel-Aviv. Procedings, 451–456.
Dogrular, H.A, M. Tuncay ve A. Sengüler, 1983. Antalya Ve Alanya Kosullarında Avokado
Çesitlerinin Adaptasyonu (Ara Sonuç Raporu). Turunçgil Arastırma Enstitüsü, Antalya,
Yayınlanmamıs.
FAO, 2007. Statistical Database. http://www.fao.org
Kadman, A. and A. Ben-Ya'acov. 1982. Selection of avocado rootstocks for calcareous soils.
J. Plant Nutr. 5:639-643.
Krezdorn, A.H., 1973. Influence of Rootstock on Cold Hardiness of Avocados. Proc. Fla.
State Hort. Soc. 86:346-348
Mickelbart1 M. V. and M. L. Arpaia, 2002. Rootstock Influences Changes in Ion
Concentrations, Growth, and Photosynthesis of ‘Hass’ Avocado Trees in Response to
Salinity. J. AMER. SOC. HORT. SCI. 127(4):649–655.
Reyes-Santamaría I., T. Terrazas, A. F. Barrientos-Priego and C. Trejo, 2002. Xylem
conductivity and vulnerability in cultivars and races of avocado. Scientia Horticulturae,
Vol.92, Issue 2, pages 97-105.
Zentmyer G.A.,1987. Avocados Around The World. Calif. Avoc. Soc.Yearb., 71:63-77.

42

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                <text>The Effects of Five Avocado Rootstocks on Seedling Properties of Commercial Avocado Cultivars</text>
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Çoskun, Recep
Temirkaynak, Meliha</text>
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                <text>In this study, results of which have been presented, our aim is to determine avocado commercial  cultivars grown in Antalya- Turkey ecological conditions and their graft compatibity with Persea americana   var. drymifolia and P. nubigena var. guatemolensis avocado rootstocks. In the research as experimental material  Topa Topa, Blace, Mexicola, W1 and W2 rootstocks together with Hass, Fuerte, Zutano and Bacon commercial  avocado cultivars have been used. The study was conducted between 2006-2007 in BATEM. The results of the  experiment have shown that rootstocks were statistically  significant in the graft survival rate (%), rootstock  diameter (cm), scion diameter (cm), shoot length (cm) and in terms of properties, and the best results could be  achived from plants which are Fuerte avocado cultivar grafted on Topa Topa rootstock.</text>
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                    <text>Sources of Pre-Islamic Turkish History
İsmail Mangaltepe
Faculty of Letters Department of History,
İstanbul University
Turkey
ismailmn@istanbul.edu.tr
Abstract: There are not too many sources about the historical events of the periods before the
adoption of Islam of the Turks. Given the thousands years of the Turkish history, the fact that
adequate written and archeological materials have not been left may be criticized. However, it
may be understood if the role played by the Turks in the formation of a crucial stage of history
is taken into consideration. Even though the number of the written sources left by the Turks,
who achieved dominance in many geographical regions from Asia to Europe, is not high it is
possible to shed light on the pre-Islamic history of the Turks thanks to the obtained
archeological materials, oral sources and the information given by the people they were
connected. In this study, we shall try to introduce Orkhon Inscriptions, which are the most
significant written sources of the Turks, after giving brief information about the oral sources,
archeological materials and written sources of the Turkish history.

All scientific studies on history should be based on a source. Sources may be defined as materials of
any kind providing us with information about historical events or we may call any data guiding and aiding
scientists to write out historical events as sources. Sources of the Turkish history are evaluated under three titles:
Oral Sources, Archeological Materials, Written Sources.
A- Oral Sources: It is widely known that in the political and social life of the Turks there are many
oral sanctions which are not written yet agreed. The body of oral laws which we may call usage at the present
day and the Turks called “Töre” (traditional law) is the most important of oral sources. As a matter of fact, it is
much more appropriate to regard Töre as the basic establishment of the political philosophy, mentality and
lifestyle of the Turks rather than just a body of laws. Coming into existence as result of a process based on
centuries, Töre is an essential element, the irresistible law, the constitution that should be abided by and a body
of sanctions and senses keeping national reflexes alive of the community life. For the Turks, the primary
practices of Khagans are to protect and glorify the state and Töre (traditional law). Thus, it is possible to find
tens of examples in Orkhon Inscriptions in this regard:
a- “My ancestors Bumin Khan and İstemi Khan dominated over the humankind. Following this
dominance, they maintained and arranged the state and Töre (made usage dominant)”. (Kül Tigin, East, 1)
b- “My uncle khagan dominated over that Töre” (Kül Tigin, East, 16).
c- “..created and brought up in accordance with my ancestors’ Töre..” (Bilge Khagan, East, 12)
(Ergin, 1988a).
As is seen, for the Turks Töre is considerably alive and has a significant value of source for a
historian as it enters into all realms of life.
In addition, epics and legends which maintain their liveliness for centuries constitute another part of
oral sources. They have spread over different geographies by being talked about. In Chinese sources, stories in
which the adolescence and fights of Mo-Tun are told are the materials having the characteristics of the first epic
of the Turkish history. Since his father does not announce Mo-tun (B.C. 209-174) as the successor of the throne,
he revolts against his father together with the soldiers under his command. He kills his father and takes the
throne of Hun Empire (A. Onat, S. Orsoy- K. Ercilasun, 2004, p. 6).
Epics about the creation and reproduction of the Turkic people provide historians with information
having essential value of source. Epics may be defined as a total of heroic stories of nations, a kind of national
history (Gömeç, 2009, p. 26), the most important source of motivation in indoctrinating rising generations with
the idea of loyalty to their origins and a significant element in the increase of pride and esteem against other
nations. Being the literary reflections of the steppe culture, these epics and legends are the best oral sources
which tell the claim of Turkic nation their place in history, their fights against the enemies and their struggles for
life and existence in the best way. Numerous tragic and pleasant events have been experienced during the travel
in the historical scene of the Turks, who have a special place among the deep-rooted nations. As a result of the
fact that these events developed in the form of story and were talked about, several epics came into existence. It
is possible to list these basic epics which are among the important oral sources of the Turkish history without
going into particulars as follows:

285

�1Epic of Creation (Yaradılış Destanı): The subject is the creation of the world, sources of good
and evil and the order of the world. This epic was edited among Altay Turks by W. Radloff in the 19th century.
(Ögel, 1993, p. 451)
2Alp Er Tonga Epic: According to Mahmud al- Qashqari, writer of “Divan ü Lûgat-it Türk”
(“Diwan Lughat at-Turk”) and Yusuf Has Hajib, writer of “Kutadgu Bilig”, “Alp Er Tunga” is the great and
legendry Turan emperor of the Iranian epic “Şehname” (“Shahnameh”) named Efrasiyab (“Afrasiyab”). There
are three different versions of the epic.( Gömeç, 2009, p. 247).
3Oghuz Epic: Oghuz Epic took form around the life of Hun emperor Mo-tun, who reigned
between 209 and 174 B.C.. (Togan, 1981, p. 68). Oghuz Epic has very different versions. Besides, narratives
which have the characteristics of an epic are encountered in the works of numerous authors under the title of
“Oghuz-Nâme”.
4Ergenekon Epic: The variance identified in Chinese sources is known as “Bozkurt” and the
variance identified in History of the Turks (Şecere-i Türk) by Abu’l-Ghazi Bahadır Khan is known as
“Ergenekon”. The epic is named after Ergenekon, which is a sacred place surrounded by impassable mountains
and where the Turks lived and reproduced for centuries by ploughing, hunting and processing mine. Ergenekon
Epic was written out by a Mongolian historian named Rachid-al Din for the first time in the 13th century. The
epic has five different versions.
5Reproduction and Migration Epic of the Uyghur (Türeyiş ve Göç Destanı): Two epic parts
were identified named Reproduction and Migration of the Uyghur. The part called Reproduction exists in
Chinese sources and the part called Migration exists both in Chinese and Iranian sources.
6Şu Epic: Telling the life and experiences of a Turkic emperor called Şu, who lived in 400 B.C,
and being combined with the march of Alexander the Great of Macedon to the Turkic countries, this epic lived
among the Turks until the 11th century and recorded by Kaşgarlı Mahmud (Mahmud al- Qashqari) in that
century.
7Epic of Manas: Epic of Manas, which came into existence among Kyrgyz Turks, still endures
with all its vividness within Kazak-Kyrgyz Turkic cultural circle. This epic is thought to have been formed
between 11th and 12th centuries. The hero of the epic named Manas is regarded as a hero struggling for spreading
Islam like Satuk Bugra Khan in the Islamic version of Oghuz Epic.
8Dede Korkut Stories: Dede Qorqut Epic comprises of twelve stories. It is possible to find
information about numerous Turkic tribes in these stories as well as the traces of Oghuz people. In this regard, it
is stated that the formation of the epic coincides with the period when the Turks mostly came to the west. The
epic is thought to have been written out in late 16th century. (Ergin, 1988b, p. 12).
B- Archeological Materials: Archeological materials are the base of the material cultures left by
tribes. It is of essential to indicate primarily balbals (kurgan steales), inscriptions, tombs, burial vaults and
tombstones, cooking utensils, guns, coins and clothes among those remnants. Thanks to these materials, social,
cultural and financial life and military powers and materials of societies are understood much more easily.
Additionally, it is possible to determine the development, activities, migrations, cultural backgrounds and
civilizations of societies. As is known, the Turks had to emigrate from their native lands to the west for some
reasons. Due to these emigrations, the archeological materials remaining from the Turks extend over a large area
from Baikal Lake to Danube Basin. The number of archeological excavations has increased especially as of the
19th century in parallel with the increase of the interest in the characteristics of the Turkic people and the states
they established. As a result, very rich materials belonging to the Turks have been brought to light rapidly.
(Mangaltepe, 2008, p. 121). The inscription on a pot which takes the first written source of the Turks back to a
period before Christ is the most significant source of the Turkish history. The most valuable historical document
in terms of the Turkish history and civilization is an inscription comprising of two lines and 26 letters on a pot
broken in half which is stated to belong to 5th-4th B.C (Kafesoğlu, 2003, p. 337) and was found in the tomb of a
Turk Tigin (son of a sovereign or prince) (Donuk, 1988, p. 48) in Kazakhstan in 1969. This inscription is a
treasure that sheds light on and guides the Turkish historical science, language and culture and takes the written
history of the Turks to 25 centuries back. In this tomb, which has not been identified in terms of the Tigin yet,
famous golden garments were found and thus these findings were recorded as “Golden Man” in the scientific
world. The most ancient Turkic inscriptions which had been known until that day were the inscriptions on
Yenisey and Orkhon inscriptions yet these date fourteen centuries back from our days. This inscription on the
document says “Tigin died at the age of 23, May the life of Esik people be spared”.

286

�Esik Inscription

Picture of Khagan and Hatun on a coin

It is possible to list the archeological materials obtained from excavations and are of essential in
terms of the Turkish history, culture and civilization as follows:
1. Casual dresses, military uniforms
2. Coins: may be called as the most important archeological material.
3. Ornaments: mirror, comb, earrings, hairpin, belt, necklace
4. Fighting tools: Arrow heads, spear, sword, knife, axe, mace
5. Harnesses, bridle, stirrup
6. Cooking utensils
7. Tamga (stamps)
8. Small structures: sacred stones, sculptures.
C- Written Sources:
a- Library Materials: Until the 19th century, Chinese almanacs, Byzantine sources, Travel Books and
the works written by Arabian and Mongolian historians in the 12th and 13th centuries were used as sources for the
Turkish history in the scientific world. Information in Chinese sources made use of in the Turkish history writing
are placed under the chapters titled “Turks” of the almanacs called Shih-Chih, Han-Shu, Hou-Han-Shu, San-kuochih, Chin-Shu, Sung-Shu, Nan-Ch’i-Shu, Liang-Shu, Ch’en-Shu, Wei-Shu, Pei-Ch’i-Shu, Chou-Shu, Nan-Shih,
Pei-Shih, Sui-Shu, Chiu T’ang-Shu, Hsin T’ang-Shu (there are 26 Dynasty Histories). Almanacs are divided into
different chapters: Emperor Almanacs, Noble Families, Chronological Tables, Scientific Tracks and
Biographies. The most important and detailed information about the Turks are in “Biographies” sections of the
almanacs (Taşağıl, 1996, p. 116).

Chinese Almanac
There are many Byzantine sources giving information about the Turks. Of these sources, the ones
giving the most important and detailed information are as follows: Priskos (Ahmetbeyoğlu, 2001, p.1), Jordanes,

287

�Ammianus Marcellinus, Eunapios, Olympiodoros, Zosimos (İplikçioğlu, 1997, p. 446) Prokopios, Ioannes
Malalas, Agathias, Paschale Chronicle Menandros, Euagrios, Flavius Corripus, Maurice-Strategicon,
Theophylact Simocatta, Sergios, Georgios Pisides, Theodoros Synkellos, Theophannes, Nikephoros, Konstantin
Porphyrogennetos, Anna Komnena, Niketos Akominotos and Ioannes Kantakuzenos.
As indicated before, the Turks established states in different geographies and contacted with different
nations. Thus, it is very natural that they are mentioned in the works of those states. Furthermore, Arabic and
Islamic sources which are the elements of a different geography and speak of the Turks should be mentioned as
well. Geographical works and other sources evaluated under the name of Islamic sources are as follows: İbn
Havkal, El-İstahrî, İbn Hurdazbih, El-Ya’kûbî, İbn Fakîh, İbn Rüsteh (Yörükan, 2004) İbn Kesir, Makdisî, İdrisî,
Gerdızî, Mesudî, Kazvînî and Birûnî ( Şeşen, 1998) are the most significant authors.
Russian almanacs comprise a part of written sources. Of these almanacs where quite detailed
information about the period between the 9th and 13th centuries of the Turkish history may be found thanks to the
studies carried out especially recently, it is possible to list the ones where particularly the Turks are the subjects
as follows: Povesti Vremennih Let (Story of Previous Years), İpatiyevskaya Letopis (İpatyev Almanac),
Lavrentiyevskaya Letopis (Lavrentev Almanac), Radzivilovskaya Letopis (Radzivilov Almanac), Troitskaya
Letopis (Troits Almanac), Voskresenkaya Letopis (Voskresen Almanac), Nikonovskaya Letopis (Nikonov
Almanac), Novgorodskoye Pervoye Letopis Sinodalnıy Spisok (1st Novgorod Almanac Sinodal Version),
Novgorodskoye Pervoye Letopis Komissionny Spisok (1st Novgorod Almanac Commission Version) and
Novgorodskoye Pervoye Letopis Akademiçeski Spisok (1st Novgorod Almanac Academy Version) (UyduYücel, 2007).
Easterner and Westerner travelers stopped by the Turkic states during their travels. Having mentioned
the things they saw, experienced and learned among the Turks in their works, authors made significant
observations on the Turkish social, military and economical structure. These works are of essential in
consequence of being the impressions written out by a person from a different culture and community. Giving
information about the Turkic communities, Chinese Hsüan Tsang Travel Book, Wang Yen-Te Travel Book, İbn
Fazlan Travel Book, Plano Carpini Travel Book, William Rubruck Travel Book, Marco Polo Travel Book, İbn
Batuta Travel Book and Ruy Gonzales de Clavijo Travel Book have gone down in history as the most crucial
ones of these works.
The fact that the Turks, who had a steppe culture, gradually adopted a sedentary life and established
cities after Gokturk Empire brought along important changes and developments in the social life. Furthermore,
the Turks started to write large-volume works by making significant contributions to educational activities and
science as a natural result of this process which accelerated upon the adoption of Islam. It is seen that two
important works which are as valuable as a treasure for the Turkish history were created in this period.
1) Yusuf Has Hajib - Kutadgu Bilig
The work named Kutadgu Bilig written by Yusuf Has Hajib is the leading of the most important
works created in this period. The famous work of Yusuf Has Hâjib written between 1069 and 1070 is a political
treatise which can be ignored neither by the history of the Turkic Culture nor by the Turkic Language and
Literature in the Islamic period. The word “Kutadgu” was formed by adding the infix “+ad-” making verbs from
names and then the suffix “-gu” making names from verbs to the word “kut” which means “happiness, bliss”
and together with “bilig”, Kutadgu Bilig it means “the wisdom/science which brings happiness, bliss”. The entire
work comprises of 6645 couplets. Apart from those couplets, there is a poem of 77 couplets added to the book
later on. This poetic prologue provides information about the work itself and its author. Consisting of 88 sections
in this manner, the work includes 173 quatrains (Yusuf Has Hacip, 1994). Has Hajip chose the form of dialogue
in the text section of the work. It added both a different characteristic and a theatrical style to the work. For the
purpose of expressing his ideas and thoughts, the author wrote his work as a discussion or stage writing with
dialogues among four important people. The names and roles of the said four people are as follows:
1- Kün-Toğdı: He is the sovereign and represents justice and law.
2- Ay-Toldı: He is the vizier and represents happiness and state.
3- Ögdülmiş: He is the son of the vizier and represents wisdom and knowledge.
4- Odgurmış: He is the devotee and a relative of the vizier and speaks of conviction and fate.
Kutadgu Bilig is a significant work giving information about the general knowledge, religious and
world views and social lives of the Turkic intellectuals in the period of Karakhanids State, including such true
and realistic ideas and advices that most of them are applicable even today and being exemplary in all respects.
Yusuf Has Hajib identified most of the social and political problems of his time and offered prescriptions for the
solution of these problems in his book.

288

�2) Kaşgarlı Mahmud (Mahmud al- Qashqari) - Divanü Lûgat-İt Türk (Diwan Lughat at-Turk)
Having been written in the 466th year of the emigration (1072-1073), Divanü Lugat-it Türk (Diwan
Lughat at-Turk) is a significant source of information with respect to the Turkic language, culture, civilization
and art. The work was written for the purpose of demonstrating the greatness of the Turkic nation and teaching
the Turkic language to Arabic people. It is a work where the Turkic words are listed in accordance with Arabic
principles and their meanings are explained. It is a kind of Turkic-Arabic dictionary. The manuscript version
comprises of 638 pages and includes quite detailed Arabic explanations of approximately 9000 Turkic words.
Additionally, it contains information interspersed in the text and a brief introduction about the history,
geographical spread, tribes, dialects and lifestyles of the Turks (Kaşgarlı Mahmud, 1998). The work is not only a
dictionary but also a grammar book indicating the language properties and throwing light upon the morphology
and phonology of the Turkic language in the 11th century and a source of personal names, tribe names and place
names. Furthermore, it is an encyclopedic work containing rich information about the Turkish history,
geography, mythology, folklore and literature as well as giving information about the medical and therapeutic
methods of that time.

Map drawn by Mahmud al- Qashqari
b- Inscriptions: There is no doubt that inscriptions are the most significant cultural richness and
sources left by the Turks as written sources. Until two centuries ago, the Turkish history had generally been
written based on the information acquired from foreign sources. However, a new leaf was turned over for the
Turkish history in the 17th century and the scientific world was informed about the inscriptions. There are not
many sources for the Turkish history before Christ. Yet the cultural stages identified provide us with an idea
about those periods. It is possible to point out the remnants taken out of the tomb of the above mentioned
“Golden Man” as the first written source for Hun period in spite of the fact that they are not in the form of an
inscription. In addition, it is witnessed that wide range of materials were left especially in Gokturk period. The
unearth of the inscriptions having Gokturk letters which Cüveyni (Djuvaini) reported for the first time in the 13th
century is a landmark (Ergin, 1988a, p.11). Being an orientalist and an envoy of Romanian origin and known as
Nikolay Gavriloviç Mileski Spafariy, Nicolaie Milescu was sent by the Russian Tsar Aleksi Mihayloviç to China
as an envoy and saw and described the stone inscriptions in the canyons of Yenisei River in the summer months
of 1675. Later on, in his Siberian Cartography published in 1697, S.U. Remezov made use of the said
information and informed the Swedish scientists about Yenisei inscriptions thanks to his writing called “Runic
Stones in Russia”. In 1721 and 1722, D.G. Messerchmidt and P.J.T. Strahlenberg found out new inscriptions on
the shores of Uybat, Erba and Tes rivers in Yenisei. On the other hand, new inscriptions were unearthed by P.S.
Pallas in Uybat in 1793. In 1818, G.I. Spasskiy published the pictures of Yenisei inscriptions (Öztürk, 1996, p.
15). N.A Kostrov discovered Açura inscription in 1857 in Koybal steppe on the left shore of Abakan; E.F.
Korçakov discovered Altın Köl inscriptions in 1878 on the shore of Golden Lake on the right side of Abakan;
A.V. Adrianov discovered Kaya Uçı inscription in 1879. A museum was established in Minusinsk city as a result
of the discovery of several ancient works in the vicinity of Yenisey River and its tributaries. Finnish Archeology
Association charged O.H. Appelgren in 1887 and J.R. Aspelin in 1888 with transcribing those stones. Aspelin
published the results of these researches in 1889 under the title of “Yenisei Inscriptions”. In the course of the
studies on Yenisei Inscriptions, N.M. Yadrintsev who was sent to Mongolia in 1889 in order to carry out
researches in the name of Russian Geography Association unearthed Köl Tigin and Bilge Khan Inscriptions in
the vicinity of Koço-Tsaydam Lake and the shore of Orkhon River, 60 km from Karakum and Kara Balgasun
Ruins and 400 km to Urga (Ulan-Bator). Then Fin-Ogur Association sent a committee under the presidency of
A.O. Heikel to Koço-Tsaydam region in 1890 and had the inscriptions transcribed (O, Sertkaya- C. Alyılmaz- T.
Battulga, 2001).
O. Donner presented the album including the pictures and tablet copies of Köl Tigin and Bilge Khan
Inscriptions prepared by Fin-Ogur Association in 1892 in London (Thomsen, 1993, p. 1). Upon these

289

�developments, Petersburg Academy of Sciences sent a committee under the presidency of Radloff to Orkhon
region in 1891. Radloff published the information obtained in series. After the stones located in Orkhon had been
published in Finnish and Russian cartographies and it had been understood from the Chinese texts of these stones
that these inscriptions belonged to Turkic Khans and Tigins, experts started to compete for deciphering the
alphabet on the inscriptions. The deciphering of the inscriptions was accomplished for the first time by Danish
V. Thomsen (1842-1927) who thought that the texts were in Turkish (Thomsen, 1993). It is stated that Thomsen
deciphered the inscriptions within one hour on November 25, 1893. Thomsen sended to Radloff a letter stating
that he had managed to read the inscriptions and the solutions. Having deciphered 11 letters of Gokturk alphabet,
Radloff succeeded in reading the texts with the help of the alphabet sent by Thomsen and published his famous
work in 1895. V. Thomsen published his translations in 1896 under the title of Orkhon Inscriptions. This study is
much more valuable than the work of Radloff due to the fact that Thomsen introduced his work containing a
more accurate translation of the texts together with highly valuable explanatory notes.
New inscriptions were found in the course of these studies. While examining the flora of Northern
Mongolia, botanist N.Z. Klements discovered Tonyukuk inscriptions in Bain-Tsokto region which is 66 km from
Ulan-Bator. Radloff prepared a preliminary report on Tonyukuk inscriptions in 1898 and published the
transcriptions and translations of the inscriptions in 1899. Radloff became a guide who read, translated and
prepared the dictionaries and grammars of a total of 56 inscriptions, namely 40 Yenisei inscriptions, 10 Hoytu
Tamir inscriptions and 6 inscriptions in Mongolia (Köl Tigin, Bilge Khan, Ongin, İhe Aşete, İhe Hanin Nur and
Tonyukuk) between 1894 and 1899 and evaluated new inscriptions from different aspects. (O, Sertkaya- C.
Alyılmaz-T. Battulga, 2001)
On the other hand, the first study on the texts with Gokturk letters was carried out by Şemseddin
Sami who made use of the work of Thomsen in Turkey yet it was not published. In his publication called “The
Most Ancient Turkic Writing” comprising of 35 pages, Necib Asım (Yazuksuz) who was a lecturer of “History
of Turkish Language” in İstanbul Darülfünun (University) introduced Gokturk letters in 1897. Furthermore, N.
Asım published his work “Orkhon Inscriptions” in 1925. Later on, valuable studies were performed on Orkhon
and Yenisei Inscriptions by Ragıp Hulusi Özdem, then in 1990s by Nihal Atsız and Hüseyin Namık Orkun.
Recently, Osman Nedim Tuna, Talat Tekin, Muharrem Ergin, Osman Fikri Sertkaya and Cengiz Alyılmaz have
published new works on the inscriptions.
Of the inscriptions discovered during the studies that have been conducted over the last centuries and
created especially in Gokturk, Uygur and Turgesh periods, important ones are as follows. Bilge Khan
İnscription, Köl Tigin İnscription, Tonyukuk İnscription, Ongin Inscription, Köl-İç Çor Inscription, Bugut
Inscription, Çoyr Inscription, Hoyd-Tamir Inscriptions, Aru-Han Inscription, Sevrey Inscription, Şine-Usu
(Moyun Çor) Inscription, Taryat Inscription, Karabalgasun Inscriptions, Suci Inscription, A-çor Inscription,
Altın Köl Inscription, Uybat Inscriptions, Nagy-Szent-Miklos Treasures of Pechenegs and inscriptions of
Bulgarian Turks written in Ancient Greek. Of these inscriptions which are called by the Turks as Bengü Taş
(Eternal Stone) (Öztürk, 1996, p. 20), let us introduce Bilge Khan, Kül Tigin and Tonyukuk İnscriptions which
include the most comprehensive information and are known as Orkhon Inscriptions as well.
1- Köl Tigin İnscription: Located in Koçho Tsaydam region of Arhangay Aymag in Mongolia, Köl
Tigin Inscription was erected in 732 by Bilge Khan upon the death of his younger brother Köl Tigin in 731.
Being a part of the külliye (social complex) constructed in the memory of Köl Tigin, the inscription has a height
of 331 cm and a width of (eastern and western façades) 138 cm and (southern and northern façades) 41 cm. Of
the inscription having four façades, 40-line and 13-line Turkic texts in Gokturk letters appear in the eastern
façade and southern and northern façades respectively (Alyılmaz, 2005, p. 9). In Köl Tigin Inscription, events
belonging to Gokturk history are narrated by Bilge Khan and a message of unity and integration is conveyed. In
the inscription, whose author is Bilge Khan, it is stated that the Chinese deceive people by means of presents and
pleasant words and do evil and emphasized that people should get hip to such things. In the western façade of the
inscription, the Chinese message which was sent by T’ang Emperor of that period due to the death of Köl Tigin
speaks of the order of the universe, the esteemed personality of Köl Tigin and the importance of peace. In the
western façade of the inscription, except for the Chinese writings, there are two lines in Gokturk letters added
afterwards. The author of the eastern, northern and southern façades of the inscription is Yollug Tigin. The
inscription includes expressions of Yollug Tigin (southern façade, 13th line). On the other hand, the western
façade was inscribed by Çang Sengün (General Çang), nephew of T’ang Emperor Hiuan Tsong. In the
mausoleum complex of Köl Tigin some parts of the inscription, tortoise base, altar stone human sculptures, ram
sculptures, balbals (kurgan steales), floorings, tiles, bricks and clay pipes were found.

290

�Köl Tigin İnscription

A Detail From Bilge Khagan İnscription

2- Bilge Khagan İnscription: It was erected by Tengri Khagan in 735 after the death of his father
Bilge Khagan. It has considerable similarities with Köl Tigin Inscription in terms of shape, structure and content.
Probably Bilge Khagan prepared the texts of the inscription to be erected in the memory of himself before his
death. Placed on a tortoise base, the inscription is approximately 369 cm high and 126 cm wide and comprises of
four façades. 41-line and 15-line Turkic texts in Gokturk letters were detected in the eastern façade and southern
and northern façades of the inscription respectively (Alyılmaz, 2005, p. 103). In addition to a Chinese text in the
western façade, a Turkic text was inscribed in verse in the middle of the upper section. Furthermore, there are
texts in Gokturk letters in the south-eastern, south-western and western façades. The one narrating the events and
giving advices is again Bilge Khagan. Events which occurred after the death of Köl Tigin were included to the
inscription as well. The sections in Gokturk letters were inscribed by Yollug Tigin. There are expressions of
Tengri Khagan and Yollug Tigin in the southern and south-western façades respectively. Four blocks of the
inscription were taken under preservation in Store-Museum-Excavation House building constructed in Koçho
Tsaydam region by the Presidency of Turkish Cooperation and Development Administration (TİKA).
Bilge Khagan gives essential advises which the next generations may make use of as well as
historical warnings to the Turkic nation: “Turkish nation, if you dwell in Ötüken forest you shall have a state
forever”. “Turkish nation; who may disturb your state order unless the sky falls down at the top and the earth is
worn through at the bottom? Turkish nation; come to your senses, turn to your origin!”. “Here, I have inscribed
that the Turkish nation shall be a powerful state if unified as well as that it shall die if not unified and
integrated.” (Ergin, 1988a)
3- Bilge Tonyukuk İnscription: Bilge Tonyukuk inscriptions are located in Bayn Tsokto (Bayn
Çokto) region of Mongolia. The reason why this inscription is mentioned under the title of Orkhon Inscriptions
together with Köl Tigin and Bilge Khagan Inscriptions in spite of the fact that it is not in the vicinity of Orkhon
River is that it belongs to the same period and consists of the same subject matters. Located in Bayn Tsokto
region in the upper bed of Tola River and approximately 360 km from Köl Tigin and Bilge Khagan Inscriptions,
Tonyukuk Inscriptions comprise of two inscriptions with four façades erected by the great vizier, commander
and advisor of Second Gokturk Khaganate Bilge Tonyukuk himself before his death. The first inscription is 243
cm high and the second one is 217 cm high. 35-line and 27-line texts in Gokturk letters were inscribed in the first
inscription and the second inscription respectively (Alyılmaz, 2005, p. 182). The exact date of the erection of the
inscriptions is not known. Some researches state this date to be between 720 and 725 while others point out
between 732 and 734. Just like Köl Tigin and Bilge Khagan Inscriptions, historical events belonging to Gokturk
period are narrated by Tonyukuk himself in Bilge Tonyukuk Inscriptions. While conveying the historical events,
Tonyukuk gives the messages of unity and integration; he highlights that the rulers achieve great successes if
they have wise advisors and work in harmony with those advisors.
As the fact that the Turks are an ancient civilization has been realized recently, especially as of the
20th century, thousands of research works have been introduced on the Turkish history, culture and civilization.
The leaders of these works have been the westerners yet the Turkic scientists succeeded in creating sources
including more reliable and accurate information by making use of these works.

291

�Conclusion
If the sources of Pre-Islamic Turkish history are examined as a whole, the contribution of Turkic
people to the social life, institutionalization, military developments and moral values may be seen explicitly.
Even though the inadequacy of these sources is emphasized from time to time, it is possible to trace the three
thousand years’ historical process of the Turks wholesomely thanks to the works, inscriptions and archeological
materials discovered. However, as may be understood from the text, most of these sources are Turks, Byzantine
and Arabic sources. Even if those works of foreign authors contain historical facts, they should be made use of
carefully due to some partial, wrong and imperfect information from time to time. Data should not be accepted
as exact information without their accuracy is proven and the most accurate and healthy information should be
obtained by means of comparison. The Turks have not left several library materials except for one or two highvolume books and inscriptions. The majority of our sources are based on oral and archeological materials except
for the inscriptions.
The most significant characteristic of the inscriptions, which have an immense source value for us, is
that they are the first Turkic texts where the name of Turkic nation is mentioned. They are the most important
information treasures and sources in the history left by the Turks. In the inscriptions, Khans make their selfcriticism and emphasize the mutual duties of the state and the nation. Being the evidences for the existence of
order, töre (law), civilization and culture of the state, the inscriptions are the biggest documentaries of the history
of the Turkic Literature. Furthermore, they are valuable treasures owing to the contents which have the power of
making a civilization out of a tribe and where the written language, rhetoric and style are excellent.
References
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Kaşgarlı Mahmud. (1998). Divanü Lûgat-it-Türk. Trans.: B. Atalay. Ankara. Türk Dil Kurumu Yayınları.
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Modern Çağ’a Ordular-Oluşum, Teşkilat ve İşlev (pp. 121-152). Ed. M.F. Emecen. İstanbul. Kitabevi.
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Kurumu Yayınları.
Ögel, B. (1993). Türk Mitolojisi I. Ankara. Türk Tarih Kurumu Basımevi.
Öztürk, A. (1996). Ötüken Türk Kitabeleri. İstanbul. Milli Eğitim Bakanlığı Yayınları.
Sertkaya, O.F- C. Alyılmaz- T. Battulga. Moğolistandaki Türk Anıtları Projesi Albümü. Ankara. TİKA (Türk İşbirliği ve
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Şeşen, R. (1998). İslâm Coğrafyacılarına Göre Türkler ve Türk Ülkeleri. Ankara. Türk Kültürünü Araştırma Enstitüsü.
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�</text>
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                <text>There are not too many sources about the historical events of the periods before the  adoption of Islam of the Turks. Given the thousands years of the Turkish history, the fact that  adequate written and archeological materials have not been left may be criticized. However, it  may be understood if the role played by the Turks in the formation of a crucial stage of history  is taken into consideration. Even though the number of the written sources left by the Turks,  who achieved dominance in many geographical regions from Asia to Europe, is not high it is  possible to shed light on the pre-Islamic history of the Turks thanks to the obtained  archeological materials, oral sources and the information given by the people they were  connected. In this study, we shall try to introduce Orkhon Inscriptions, which are the most  significant written sources of the Turks, after giving brief information about the oral sources,  archeological materials and written sources of the Turkish history.</text>
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                    <text>1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo

The Impact of Expectations on International Trade: A Panel Data Analysis
in the Framework of the Gravity Model
Elif NUROĞLU
Faculty of Economics and Business Administration,
International University of Sarajevo, Bosnia and Herzegovina
enuroglu@ius.edu.ba
Abstract: The objective of this paper is to investigate bilateral export flows and its
determinants between European countries from 1964 to 1972 and from 1973 to 1998 to
show how expectations affect the volume of international trade across European
countries. This study extends the gravity model of bilateral trade with population and
volatility of exchange rates. It is demonstrated that during fixed exchange rate period
volatility in exchange rates has a very large impact on bilateral trade volumes, while the
same change causes much lower decrease during floating exchange rate period.
Keywords: gravity model, panel data, fixed versus floating exchange rate

1. Introduction
This study investigates bilateral exports among EU15 countries from 1964 to 1998 by employing panel
data analysis. First, the gravity model of bilateral trade which was developed by Tinbergen to explain bilateral
trade flows between two countries with the product of their income and distances between them is extended by
inserting population of both countries and exchange rate volatility. This augmented gravity model is used in
panel data analysis. In this model, real bilateral exports is the dependent variable on the income and population
of both countries, distances between them and the volatility of exchange rates.
The gravity model has long been used to explain and estimate bilateral trade flows in the international
trade literature. The basic gravity model says that bilateral trade between two countries depends on their GDPs
positively and distances between them negatively suggesting that higher income tends to increase trade by
leading more production, higher exports and also higher demand for imports ( Balogun: 2007; Clark et al.: 2004;
Cushman: 1983; Dell`Ariccia: 1999; De Grauwe &amp; De Bellefroid: 1986; Glick &amp; Rose: 2002; Matyas: 1997;
Rose et al.:2000). Furthermore, larger distances between countries tend to decrease bilateral trade (Clark et al.:
2004; Glick &amp; Rose: 2002; Rose et al.:2000) by imposing higher transport costs and some other difficulties to
trade such as informational and psychological frictions (Huang: 2007). Transport costs are an important barrier
to trade and therefore they tend to reduce international trade (Jacquemin &amp; Sapir: 1988; Neven &amp; Röller: 1991).
The basic gravity model was extended later with the population of both countries to see how the population of
exporting and importing countries affect bilateral trade. In some studies, population is found to have a positive
effect on trade and to increase the level of specialization by creating gains from specialization as a result
(Matyas: 1997). On the other hand, other studies show that population coefficient has a negative sign, suggesting
that imports and exports are capital intensive (Bergstrand: 1989; Dell`Ariccia: 1999).
Some studies which analyze the effects of exchange rate uncertainty and/or volatility on international
trade find significant negative effects (Akhtar &amp; Hilton: 1984; Chowdhury: 1993; Cushman: 1983; Dell`Ariccia:
1999; De Grauwe: 1987; De Grauwe: 1988; De Grauwe &amp; De Bellefroid: 1986; Ethier: 1973; Kennen &amp; Rodrik:
1986; Kowalski: 2006; Lane &amp; Milesi-Ferretti: 2002; Rose et al.:2000; Thursby &amp; Thursby: 1985; Thursby &amp;
Thursby: 1987; Wei: 1999;). Frank and Bernanke (2007) offers one explanation for this negative effect
suggesting that uncertainty in exchange rates under flexible exchange rate systems makes exporters` profits less
predictable, therefore it makes people more reluctant to export and reduces total trade.
On the other hand, there is another side in the literature which claims that there is no significant effect
of exchange rate uncertainty and/or volatility on the volume of trade. Some of these studies argue that even if
there is some small significant effect of exchange rates on trade, this effect is neither stable nor consistent
(Hooper &amp; Kohlhagen: 1978; Gotur: 1985; Bacchetta &amp;Van Wincoop: 2000). One reason for those who could
not find any significant effect may be because they have concentrated on the short term measures.
Recently, Clark et al. (2004) find a negative association between exchange rate volatility and trade in
certain country groupings. However, when they analyze the time of the increase in volatility and decrease in
trade, they see that the decrease in trade may not be attributed only to the increase in exchange rate volatility. At
crises, for instance, even if volatility in exchange rates increases, the fall in domestic demand is a much more
important factor that decreases imports. When they allow time-varying fixed effects they do not find any
negative association between exchange rate volatility and trade.

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International trade history shows that different exchange rate regimes were preferred at different
periods. In the last decades there seems a tendency towards purely fixed or purely floating exchange rate
regimes. A survey (Fischer, 2001) indicates that most countries prefer a purely floating or a purely fixed
exchange rate instead of intermediate exchange rate regimes. The percentage of fixed exchange rate regimes
increased from 16% in 1991 to 24% in 1999 while percentage of the floating exchange rate regimes increased
from 23% to 42% in the same years. On the other hand, the number of intermediate regimes declined from 62%
in 1991 to 34% in 1999. According to Fischer (2001), this move away from the center is towards currency
boards, dollarization or currency unions on the hard peg side, and towards a variety of floating exchange rate
arrangements on the other side. He states that the main reason for this change is that soft pegs are crisis-prone
and not usable over long periods. Moreover, Bubula and Otker-Robe (2003) provide some support for the
proponents of the bipolar view. They find that during 1990–2001, the frequency of crisis episodes has been
higher for intermediate regimes as compared with purely fixed and floating ones, although the latter have also
not been free of pressures.
The choice of exchange rate regime gives a country the freedom to use macroeconomic policies to
manipulate the economy and enables it to fight with recessions, crises etc. Furthermore, exchange rates influence
the level of international trade. Therefore, the effects of changes in exchange rates and of different exchange rate
regimes on the economy and on international trade have been a popular topic among researchers.
The main point of this paper is to study the effects of volatility on bilateral exports during different
exchange rate periods namely fixed and floating exchange rate regimes. When exchange rates are fixed
officially, traders do not expect so high changes in exchange rates and make their plans based on their
estimations of a stable economic environment. Therefore, any volatility or fluctuation in the exchange rates
during fixed exchange rate periods affect their revenues and future plans deeply and reduces the level of exports.
On the other hand, during floating exchange rate periods traders adjust their expectations accordingly and they
are ready to any volatility in exchange rates. Thus, their plans are more flexible during floating regimes and
volatility in exchange rates does not change their plans and hence the level of exports so much.
The structure of the paper is as follows. Section 2 and 3 introduces the data set used and our modified
gravitiy model respectively. Section 4 discusses the results of panel data analysis and finally, section 5
concludes.

2. Data
The data used in this study is obtained from IMF`s International Financial Statistics, World Bank`s
World Development Indicators 2005, and OECD`s International Trade by Commodity Statistics. The sample
period covers 35 years from 1964 to 1998. Countries included are EU15 countries where Belgium and
Luxemburg are taken as one country because of data availability. The model was estimated using bilateral trade
flows among EU15 countries from 1964 to 1972 for the fixed exchange rate period and from 1973 to 1998 for
the floating exchange rate period.
Nominal exports in the data set are converted into the export volumes by using GDP deflators.
Volatility of exchange rates is calculated as the moving average of standard deviations of the first difference of
logarithms (i.e. percentage changes) of quarterly nominal bilateral exchange rates (Kowalski, 2006). Vol ( xrijt )
is 5-year (“t-4,...,t”) average of standard deviations from the average quarter-on-quarter percentage change in
bilateral nominal exchange rate calculated over the last 4 quarters, given by the following formula:

1 q −19
Volxrijt =
∑δ q
20 q

Eq. 1

where q is the last quarter in year t,
where:

δq =

q −3
1
1

de
−
∑q 3  q ∑q 4 deq

q −3

)2

Eq. 2

δ q is a standard deviation from the average quarter-on-quarter percentage change in bilateral nominal exchange
rate calculated over the last 4 quarters where
at the end of quarter q.

274

deq = eq − eq −1 and eq is a logarithm of bilateral exchange rate

�1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo

3. The Gravity Model of Bilateral Exports and its Application to Panel Data Analysis
According to the Gravity Model, trade flows between two countries depend on their income and on the
distances between them as shown in Equation 3.

Tij = C ×

GDPi × GDPj

where c is a constant term,
income,

Eq. 3

Dij

Tij is the value of trade between country i and country j, GDPi is country i`s

GDPj is the country j`s income and Dij is the distance between two countries (Krugman &amp; Obstfeld,

2006).
This original gravity model can be extended with population, exchange rates, common language,
common borders, foreign currency reserves etc. to explain the variation in bilateral trade better. We insert
population of both countries and volatility of exchange rates into the equation.
The modified gravity model of bilateral trade used is given by:
Eq.4
ln Expijt = β 0 + β1 Dij + β 2 ln Yit + β 3 ln Y jt + β 4 ln Popit + β 5 ln Pop jt + β 6 vol( xrijt ) + ε ijt
where (i=exporter and j= importer)
�
Expijt represents the volume of exports from country i to country j in year t,
�

Dij is the distance between country i and country j measured in kilometres,

�

Yit is the exporting country`s real GDP in year t,
Y jt is the importing country`s real GDP in year t,

�

�

Pop it is exporter country`s population in year t,
Pop jt is importer country`s population in year t,

�

Vol ( xrijt ) is the volatility of nominal exchange rate between exporter and importer country in year t,

�

ε ijt

�

is the error term.

4. Results of Panel Data Analysis
The data set used in this study consists of trade flows, GDPs, population, volatility of exchange rates
and distances between EU15 countries from 1964 to 1972 (fixed exchange rate period) and from 1973 to 1998
(floating exchange rate period). For each country pair we have 35 years of data. The objective of this paper is to
investigate how trade flows across European countries can be explained by income, population, distance and
especially by the volatility of exchange rates under different exchange rate regimes. Since we have cross
sectional data, the best way is to conduct a panel data analysis by using equation 4.
(Table 1) shows the results of panel data analysis for the fixed exchange period from 1963 to 1972
while (Table 2) gives the results for the floating exchange rate period from 1973 to 1998. The results indicate
that as distance becomes larger, bilateral trade between countries tends to decrease. Furthermore, higher income
in the exporting country has a positive affect on bilateral trade by leading more production and higher exports.
As the tables show, as the income of exporting country increases by 1%, its bilateral exports increases by 0.41%
during the fixed exchange rate regime and 0.38% under the floating exchange rate regime. For a very similar
reason, higher income tends to increase the level of imports as well. According to Tables 1 and 2, 1% increase in
the importing country’s real GDP increases its imports by 1.24% and 0.91% during fixed and floating exchange
rate periods respectively.
Moreover, population of the exporting country has a positive effect on bilateral exports. This shows that
higher population will create opportunities for specialization which will boost production and exports from that
country.
The last variable of interest is the volatility of exchange rates. Our results indicate that volatility of
exchange rates has a negative effect on real bilateral exports. However, exchange rate volatility affects bilateral
exports by different amounts depending on the exchange rate regime. As Tables 1 and 2 show, the effect of
volatility in exchange rates on bilateral exports is much higher during the fixed exchange rate regimes (8.12)
than the floating exchange rate regimes (3.74).

275

�1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo

Table 1: Panel least squares with period fixed effects, for the period from 1964 to 1972
C
Distance
Exporter GDP
Importer GDP
Exporter Population
Importer Population
Volatility of Exchange Rate
R-squared
Adjusted R-squared
Akaike info criterion
Schwarz criterion
Number of observations

Coefficient
Std. Error t-Statistic
Prob.
1,64
-16,01
0,00
-26,30
-0,0003
0,00
-5,11
0,00
0,41
0,11
3,83
0,00
1,24
0,08
16,09
0,00
0,42
0,11
3,86
0,00
-0,54
0,09
-6,30
0,00
-8,12
2,44
-3,33
0,00
0,72
0,71
2,66
2,74
804

Table 2: Panel Least Squares with period fixed effects, for the period from 1973 to 1998
C
Distance
Exporter GDP
Importer GDP
Exporter Population
Importer Population
Volatility of Exchange Rate
R-squared
Adjusted R-squared
Akaike info criterion
Schwarz criterion
Number of observations

Coefficient
Std. Error t-Statistic
Prob.
-22,56
0,87
-25,86
0,00
-0,0008
0,00
-30,45
0,00
0,38
0,05
6,95
0,00
0,91
0,04
22,28
0,00
0,43
0,05
7,96
0,00
-0,17
0,04
-3,81
0,00
1,05
-3,56
0,00
-3,74
0,84
0,84
2,03
2,10
2334,00

R-squared given by panel data analysis is 72% for the fixed exchange rate period and 84% for the
floating exchange rate period, which shows that 72% and 84% of the variation in bilateral exports can be
explained by distance, GDPs and population of exporting and importing countries and the volatility of exchange
rates during fixed and floating exchange rate periods respectively. For all variables that are used to explain the
variation in bilateral exports, our coefficients are highly significant which makes our model and data set reliable.

5. Conclusion
This study compares the results obtained by panel data analysis during fixed and flexible exchange rate
periods. Volatility in exchange rates seem to affect the volume of exports negatively but this negative effect is
much higher during fixed exchange rate period than the floating exchange rate period. Under fixed exchange rate
regimes traders do not expect high volatility in exchange rates. When there is any volatility, the effect of it on the
trade volumes is really high. On the other hand, during floating exchange rate regimes all agents in the economy
are ready to fluctuations; therefore, the impact of any volatility in exchange rates is smaller. It can be concluded
that expectations of agents in the economy should be given special importance to avoid any decrease in the level
of trade. Even if there is a high possibility for any fluctuation or unusual movement in the economy, when
people are ready to overcome with it, the negative effects tend to be smaller.

References
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Reinvestigation of the Exchange Rate Volatility Channel. PhD Thesis, University of Sussex.
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                    <text>1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo

Using the Advantage of Being in Between, with the Example of Fuzzy Set
Theory: Opportunities for Bosnia
Hüseyin Hayri NUROĞLU
International University of Sarajevo
Faculty of Economics and Business Administration
Bosnia and Herzegovina
hnuroglu@ius.edu.ba

Abstract: This article analyses how culture, tradition and perception of the science affect the
creation and application of techniques used in industry and management. Although it is
thought that there are some global rules in business, cultural perspectives have an enormous
effect on the application of the theories. This difference can be seen in the early fuzzy set
theory applications. Fuzzy set theory has been accepted and applied by the eastern firms
earlier than western firms. Despite its usefulness, western corporations met the fuzzy theory
very suspiciously at the beginning, and they started utilizing it after its success has been
proven. The biggest obstacle for the west for being late in using fuzzy set is their loyalty to
the crispness and their crisp way of thinking. Bosnia, as a country which has both west's
crispness and east’s mystical insight, can use the advantage of this feature. Bosnia can convert
this characteristic of being a country between east and west and being familiar with the two
different mind-sets into a competitive advantage. Instead of following only one trend, Bosnia
can harmonize the characteristics of two sides and enjoy the early application of some
promising theories.
Keywords: Fuzzy Set Theory, Cultural difference, perceptions of science, Bosnia

1- Introduction
It has always been a research question how and to what extent culture affects human beings. Does it
only affect how to behave in the environment we exist or does it also affect how we think? There are thousands
of studies about this issue but there isn’t any compromise between the researchers. First of all, there is a debate
on the definition and content of the culture. However, one acceptable definition can be made as “a distinctly
human means of adapting to circumstances and transmitting this coping skill and knowledge to subsequent
generations. Culture gives people a sense of who they are, of belonging, of how they should behave, and of what
they should be doing.” (Harris et al., 2004). Researchers believe that culture shapes the way we behave, our
productivity at work, our values; shortly all human being’s behavior. Trompenaars (2003) defines culture as “the
contextual environment, defining much of the essence of the relationships between an organization and the
environment in which it operates.
In the world, there are more than 200 nations, and Hofstede (1993) offers to focus on cultural factors in
separating or uniting nations. In order to understand and differentiate cultures better, many different models have
been developed. Some researchers have offered ten different categories to identify the culture (Harris et al.,
2004). Some others claim that firms will be able to limit imitation and create competitive advantage if they
concentrate on retaining the relationship between their corporate culture and their national/regional culture
(Moran et al., 2007). We should also understand national culture to explain differences in international
operational decision making (Pagel et al., 2005), because managers make their decisions and manage their
resources under the shadow of their culture.
In an interesting cross-cultural research, Kirkman et al. (2006) review empirical studies that have used the
cultural values framework of Hofstede for the years between 1980 and 2002. They identify 180 studies in which
culture has the main effect or moderator. 148 of these studies out of 180 cases, examine culture as a main effect,
32 of them as a moderator. Hofstede (1991) claims that national culture explains 50% of the differences in
managers´ values, beliefs and attitudes.
Culture shows its effect on many different areas of business and industry. For example, due to the
cultural differences various types of Computerized Numerical Control (CNC) use have been seen in Japan and
UK. Britain preferred to utilize CNC tools by operators with previous experience, but Japanese tried to use their
CNC tools with no previous experience of machine tool operation. Moreover, British firms appointed one worker
per machine, while Japanese were attempting to achieve multi machine operation (Kambayashi, 2004). This
example explains individualism in the UK and collectivism in Japan with the cultural values framework of
Hofstede.

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According to the Hofstede (1980)´s research, German and Anglo-Saxon worlds specifically and western
world in general are less uncertainty avoidant than eastern countries. Moreover, western countries have been less
open to new experiences, sceptical about new theories such as Total Quality Management (TQM) and Fuzzy
Logic. They applied these theories only after the success of these theories have been proven. The more
interesting thing is, Deming´s ideas about total quality management hadn’t been accepted by Americans, but
welcomed by Japanese businessmen first. Bensaou and Earl (1998) compare the Japanese and Western “mindsets” and approaches to the management of IT. Westerners use IT to have the smartest and cheapest result and to
improve performance, while Japanese use IT to reach their goals after identifying performance goals.
As mentioned so far culture is an important factor for the development and application of new theories.
However, in some cases it can be misleading to consider the entire region as the basis for analyzing the culture.
For example, the culture of UK is closer to the culture of USA even though UK is geographically closer to the
European countries. The same is true for Mexico and USA as well. Although they are neighbors, they have
different management cultures. In this case, besides cultures of the nations and similar culture of the regions, the
perception of science of the cultures is another important factor in the development and application of new
theories.
Although TQM and Fuzzy Logic have enormous applications and benefits, western world was late to
accept and to utilize these theories. As mentioned above, culture might be one reason but cannot explain the
whole story alone. At this point looking at the science perception of the cultures might be helpful.
The structure of the paper is as follows. Section 2 discusses fuzzy logic, the possible reasons why it has
been accepted by the eastern world earlier than the western world, applications of fuzzy logic in commercial and
industrial products and historical development of it. Section 3 analyzes the differences between eastern and
western logic and connects these differences with the developments of fuzzy logic. Section 4 concludes.

2- Fuzzy Logic
2.1. Why fuzzy logic has been exploited in the east before the west?
McNeil and Thro (1994) suggest two possible reasons for western nations for being late on accepting
fuzzy logic. One reason is traditional cultures of west which rely on Aristotelian either-or-approach. Western
people avoid uncertainty and risk. In the West, individual competitiveness is the main force of technological
progress, whereas in the eastern cultures strength and success is achieved through consensus and group work
which was also explained by the Hofstede’s (1980) analysis. As easily seen, eastern characteristics are more
compatible with the fuzzy logic than mathematically oriented western attitudes. Another reason they suggest is
Japan may be more open to new ideas than management- and bottom-line oriented western firms.
Lotfi Zadeh, the founder of fuzzy logic, says that one important reason for Japan for being so advanced in fuzzy
logic is that they are really consumer oriented. Japanese can immediately adapt new ideas and technologies
which have a potential to serve the consumers (Blair, 1994).
“When the only tool you have is a hammer, everything begins to look like a nail”(Zadeh)
According to Zadeh, in Aristotle's day people tried to be as precise as possible. This Aristotelian or
Cartesian tradition makes people to look at everything as being totally white or black. As Zadeh states,
sometimes people may perceive things as being bad at the beginning, but then they turn out to be good or not so
bad as people thought originally. One failure of classical logic is paying so little attention to approximate
reasoning and perceiving things only in absolute terms. This allows solving many problems in real life but
prevents us from solving many other everyday problems which are not crisp, subjective or have many possible
solutions. He says that: “When the only tool you have is a hammer, everything begins to look like a nail.
Classical logic simply doesn't provide the means to solve the problems. They concerned themselves with models
of precise knowledge. But such models are so far removed from the real world that they don't do you any good”
(Blair, 1994).
2.2. The Differences between Crisp Sets and Fuzzy Sets
The difference between conventional dual logic and fuzzy set theory is that in conventional dual logic a
statement can be either true or false; in set theory, an element can either belong to a set or not. However, real
world situations are very often uncertain. Lack of information may cause the future state of the system to be
unknown or unpredictable. This type of uncertainty has been handled by statistics and probability theory sofar.
Fuzziness is possible to be found in many areas of life such as meteorology, medicine, engineering,
manufacturing etc. where it is possible to define one situation in different ways or it is possible for an element to
belong to different sets. In daily life, the meaning of words is often imprecise. Fuzzy set theory provides a

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mathematical framework to study vague phenomena precisely. It is defined as a modeling language for fuzzy
relations, criteria and situations (Zimmerman, 2001).
In fuzzy set theory, normal sets are called crisp sets to be differentiated from fuzzy sets (Driankov et al.,
1996). Let C be a crisp set and F a fuzzy set defined on the universe U. For any element u of U, either
u ∈ C or u ∉ C . However, in fuzzy set theory it is not necessary that either u ∈ F or u ∉ F . In fuzzy set
theory, a membership function µ F is assigned to every u ∈ U from the unit interval [0, 1], instead from the
two element set {0, 1} as in crisp sets. If an element belongs to a fuzzy set with certainty, it has a membership
value of 1. If this element does not belong to a fuzzy set, its membership value will be 0. On the other hand, an
element can take the membership values of 0.9, 0,8, 0,7 or 0,2, 0,1 according to the degree at which it is near or
far away from the target value which can be inferred from the definition of fuzzy set.
According to Zimmermann (2001), major objectives of fuzzy set theory are to model uncertainty and to relax or
generalize classical methods based on dual logic from a dichotomous to a gradual feature. Furthermore, it aims
to reduce the complexity of data to a reasonable degree via linguistic variables. Computational units use these
linguistic expressions and membership functions of fuzzy sets and finally retranslate the fuzzified result into the
words via linguistic approximation and produce the output for the crisp world.
2.3. Advantages and Disadvantages of Fuzzy Systems
Fuzzy logic has been used and become quite popular in different fields due to its advantages (McNeill
and Thro, 1994). In fuzzy logic, linguistic variables are used instead of numerical ones which makes it similar to
the way human beings think. Another advantage is that fuzzy logic needs fewer values, rules and decisions than
conventional models. However, it is hard to develop a model from a fuzzy system. Even though they are
cheaper, easier to design and faster to prototype than conventional systems, fuzzy systems may face cultural bias
in some countries who favor mathematically crisp systems and linear models. This may be the reason why
Japanese firms exploited fuzzy systems before the United States and European countries. Moreover, as the
complexity of system increases, it becomes more difficult to specify the correct set of rules and membership
functions to describe the behavior of the system appropriately (Aliev et al., 2004).

2.4. Fuzzy Set Mathematics
In classical or crisp sets an element either belongs to a set and has a membership value of 1 or this
element does not belong to the mentioned set and has a membership value of 0. However, an element of a fuzzy
set may have various degrees of membership value between 0 and 1.

~

Definition (Zimmermann, 2001): If X is a collection of objects denoted generically by x, then a fuzzy set A is a
set of ordered pairs:

~
A = {( x, µ A~ ( x) | x ∈ X }

~

µ A~ is called the membership function of x in A that maps X to the membership space M. The range of the
membership function is a subset of the nonnegative real numbers whose supremum is finite. The membership
function is the crucial component of a fuzzy set. Therefore, operations with fuzzy sets are defined with their
membership functions.

2.5. Historical Development of Fuzzy Logic
Fuzzy Logic was developed in the 1960s by Lotfi Zadeh claiming that this new paradigm will be able to
model the own uncertainty of human reasoning. He believed that computer logic didn't have to be restricted to
only 0 and 1. However, the acceptance of this technique by the “highly deterministic scientific society” has taken
some time (Dualibe et al., 2003). The earliest supporters of fuzzy set theory were Japanese scientists and
engineers (McNeil and Thro, 1994). Another country, which has the highest number of fuzzy-oriented scientists
and engineers is China. The theoretical studies and practical applications on fuzzy theory have been caught in the
US and in Europe later than eastern nations. Once it has been proven that fuzzy logic can be applied in the
productions of commercial and industrial products quite successfully, western nations started to use and develop
it. Nowadays, Germany has quite a lot of fuzzy oriented researchers and applications, and can be counted as the
second country in fuzzy related developments after Japan.
2.6. Fuzzy Business and Industrial Systems

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Fuzzy systems have been used heavily in industrial production (McNeil &amp; Thro, 1994). For example,
Fujitsu Laboratories developed a neuro-fuzzy system for rating the investment safety of bonds. A method of data
analysis has been developed at a German company, INFORM, which is used for many purposes such as for the
design of automobile and truck parts by Mercedes-Benz and to determine creditworthiness. Furthermore, at Los
Alamos Scientific laboratory an experiment was conducted to design the best techniques for improving the
recovery of oil from the ground which was a complex optimizing problem. A Portuguese company has
implemented a fuzzy based digester management system and achieved a higher degree of automation (Driankov
et al., 1996). The main advantages of this system were the consistent control strategy, up to 60% reduction of the
variation of product quality, and a significant reduction in energy and base material consumption.
Another interesting fuzzy product, an automated storm-sewage pumping station for Shanghai, was
developed by a Chinese scientist Hong Chen. It aimed to correct the deficiencies of crisp pump controllers which
either start too late to prevent backflow, run too long or stop too soon. Fuzzy system can easily determine when
the pumps should be started and stopped according to the water level, change in water level and also to the
weather. Moreover, fuzzy insulin infusion system for diabetics, some consumer products such as vacuum
cleaner, washing machine, fuzzy air conditioner, dishwasher, video camera-recorder, heater, rice cooker, and
clothes dryer can be counted how fuzzy theory is applicable and useful in practice. These machines arrange their
own speed, water level and when to work and when not by easily adapting to their environments and save a lot
of energy. In Japan, a home appliance which has the label “fuzzy-controlled” raises a positive sense of modern,
high quality and user friendly machine (Driankov et al., 1996).
On the other hand, the use of fuzzy logic is not restricted only to home appliances (Karray et al., 2004).
Nissan, Subaru and Mitsubishi use the fuzzy control transmission systems which sense vehicle speed and
acceleration, throttle opening, the rate of change of throttle opening, engine load, and driving style. Fujitec and
Toshiba use a fuzzy scheme in elevator control which is said to reduce waiting time and improve the efficiency
and reliability of operation. Even a subway train is being used in Sendai, Japan which determines the speed and
stopping routine. Ride comfort and safety are performance requirements of this train.
However, it is not so simple to implement fuzzy control in the production immediately; it requires well-trained
personnel in the industry as well as researchers at the universities and laboratories. This is seen one of the
bottlenecks that prevents a broader exploitation of fuzzy technology by European countries at the end of 1990s
by Driankov et al. (1996).
By 2002, Japanese firms who utilize fuzzy logic were Canon, Hitachi, Matsushita Electric, Minolta,
Mitsubishi Electric, Ricoh, Sanyo and Sharp. In the USA, General Electric, Texaco and US Air Force Office of
Scientific Research were the main users of fuzzy logic. At the same time in Europe, AEG, Bosch, Cerberus,
Viessmann, INFORM, Endress and Hauser and DASA were utilizing fuzzy logic in their products (Kazemian,
2002).

3. Analysis
Fuzzy logic is a very important and beneficial theory which is subject to change the electric, electronic
and computer sciences deeply. Surprisingly, this theory was introduced by someone (Professor Zadeh) whose
roots are in the east and was developed by the eastern nations firstly; but not by the western world which has
been industrialized and developed before all other nations. Fuzzy logic has been started to be used by the western
world first after it has been developed to some extent in the east and its usefulness has been proven. With this
characteristic, it shares the same destiny with the Total Quality Management. These examples show one
important fact: the invention and development of new ideas is not only dependent on the development level of
countries. Culture and the perception of science play the key roles in inventing or accepting new theories.
Western world which follows the paths of Aristo, Newton and Renaissance has been pioneers of many
developments in the world but could not go beyond perceiving the world as crisp. However, we cannot
understand and solve all the problems of human beings and of the world only with crisp theories. On the other
hand, eastern way of thinking perceives the world not only with “0 and 1” or “true and false” concepts. This way
of thinking makes the east luckier in solving the problems that cannot be solved by the crisp theories. The
examples from the past prove these ideas. It is also possible to see new examples in the future as well.
When we analyze the situation of Bosnia, we see that if Bosnia can concentrate on its national/regional
culture and follow western and eastern world closely, it will be able to follow the latest trends in the industry and
become more competitive in the region. Bosnia like the founder of fuzzy logic Professor Zadeh, witnessed
different cultures (Catholics and Orthodox Christian culture, Muslim culture, Austria-Hungarian Culture,
Ottoman Culture) and belongs to the western world from one perspective and also is a part of the eastern world
from another perspective. For example, Bosnia has adopted western education system, and at the same time is
familiar with the eastern philosophy, and mind-set. All these features offer Bosnia big chances for the future
developments.

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4. Conclusion
As a conclusion, under the shadow of culture and tradition, perception of the science affects the creation
and application of techniques used in industry and management. This can be seen in the background of the fuzzy
logic founder and by looking at the nations which applied fuzzy set theory first. The reason why western
companies were late in accepting and utilizing fuzzy logic can be explained mainly by their science perception.
Different than eastern ancient tradition, western tradition and taught teaches to be always precise and crisp.
However, many unsolved problems we face are not crisp and cannot be solved by crisp logic. On the other side,
the contribution of western nations to the science and technology is not possible to ignore. At this point, Bosnia,
as a country which has both west's crispness and east’s mystical insight, can use the advantage of this feature.
Bosnia can convert this characteristic of being a country between east and west and being familiar to the two
different mind-sets, into a competitive advantage. Geographically it is in west, but has experienced both western
and eastern cultures in different time periods. Instead of following only one trend, Bosnia is able to observe and
understand two traditions, and can enjoy the early application of promising theories.

References
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Springer Verlag: Berlin Heidelberg.
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118–128.
Blair Betty (1994). Interview with Lotfi Zadeh: Creator of Fuzzy Logic. Azerbaijan International, 2.4, 46-57.
Driankov Dimiter, Hans Hellendoorn &amp; Michael Reinfrank (1996)., An Introduction to Fuzzy Control. Springer Verlag:
Berlin-Heidelberg-NewYork.
Dualibe, Carlos, Verleysen, M., &amp; Jespers, P. (2003). Design of Analog Fuzzy Logic Controllers in CMOS Technologies:
Implementation, Test and Application. Kluwer Academic Publishers.
Harris, Philip R., Moran, Robert T. &amp; Moran, Sarah V. (2004). Culture and its Characteristics, Global Leadership Strategies
for the 21st Century. Elsevier Butterworth–Heinemann: Oxford.
Hofstede, G. (1980). Culture’s Consequences: International Differences in Work-related Values. Beverly Hills, CA: Sage.
Hofstede, G. (1991). Cultures, Organizations: Software of the Mind. London: McGraw-Hill.
Hofstede, G. (1993). Cultural Constraints in Management Theories. The Executive, 7(1), 81-94.
Kambayashi, N. (2004). Culture-specific IT Use in Japanese Factories. Asian Business &amp; Management, 3, 241–262.
Karray F.O., &amp; de Silva C. (2004). Soft Computing and Intelligent System Design: Theory, Tools and Applications. Addison
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Kazemian H. B. (2002). Fuzzy Logic Applications. Expert Systems, 19(4), 189-190.
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research incorporating Hofstede's cultural values framework. Journal of International Business Studies, 37(3), 285-320.
McNeill F. Martin &amp; Ellen Thro (1994). Fuzzy Logic: A Practical Approach. Academic Press Limited: London.
Moran, F., Palmer, D.W.,&amp; Borstorff, P.C. (2007). The Relationship between National Culture, Organizational Culture,
Causal Ambiguity and Competitive Advantage in an International Setting: An Explanatory Analysis. Proceedings of the
Academy for Studies in International Business, 7(1).
Pagell M.; Katz J. P; &amp; Sheu C. (2005). The importance of national culture in operations management research. International
journal of Operations &amp; Production Management, 25(¾), 371.
Trompenaars Fons &amp; Peter Woolliams (2003). Business Across Cultures. Capstone Publishing: England.
Zimmermann Hans-Jürgen (2001). Fuzzy Set Theory and Its Applications, USA: Kluwer Academic Publishers.

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                <text>NUROĞLU, Hüseyin Hayri</text>
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                <text>This article analyses how culture, tradition and perception of the science affect the  creation and application of techniques used in industry and management. Although it is  thought that there are some global rules in business, cultural perspectives have an enormous  effect on the application of the theories. This difference can be seen in the early fuzzy set  theory applications. Fuzzy set theory has been accepted and applied by the eastern firms  earlier than western firms. Despite its usefulness, western corporations met the fuzzy theory  very suspiciously at the beginning, and they started utilizing it after its success has been  proven. The biggest obstacle for the west for being late in using fuzzy set is their loyalty to  the crispness and their crisp way of thinking. Bosnia, as a country which has both west's  crispness and east’s mystical insight, can use the advantage of this feature. Bosnia can convert  this characteristic of being a country between east and west and being familiar with the two  different mind-sets into a competitive advantage. Instead of following only one trend, Bosnia  can harmonize the characteristics of two sides and enjoy the early application of some  promising theories.</text>
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                    <text>Business Process Management in Educational Institutions
Dr. Tarik OBRALIĆ
Bosna Sema Educational Institutions
71000 Sarajevo, Bosnia and Herzegovina
obralict@hotmail.com
Abstract: Management education is a specific part of management as a general
phenomenon of organized, institutionalized society. In social practice, on the modern level
of development, there are in all known countries of the world prescribed systems of
organized education and, in parallel with them, or even contrary to them, specific systems.
The educational system is a regulated and highly organized, programmed system which is
necessarily controlled, and within it there are certain terms, factors, and relations, typical
for management in general, but not all are used in the same way.
In the economy, which is relatively independent, based on private ownership and markets,
in a direct competitive relationship with the arbitration market, management is necessarily
independent (within the ownership powers) and possesses relatively high powers and
responsibilities.
The educational system is under the direct jurisdiction of state and government bodies that
make strategic decisions on the establishment, development, organization, and programs of
education, the manner of the exercise, and the performance of the duties of supervision and
evaluation of results. In the system there are different areas and levels of education that
mutually differ. As mentioned above, the differences between management and
management education emanate. They are in practice relatively wide even when it comes
to education in a market - oriented education organization.
Key words: educational management - management in education, top manager,
manager of university

The Study
Process of education, the result of which has always been some level of education of human subject,
belongs among the most complex and most spread social realities. That is a real social change which saturates all
social relationships and entire history of human society; it is in the basis of social development and development
of personality as a rational, socially competent, successful social being.
Management, the essence of which is managing of processes, relations, groups, communities,
organizations and institutions in society and society of people, but also managing or at least its adequate
intervention, aimed – relevant and meaningful – at people's environment, is a real social activity – social
phenomenon.
Exposed dominant understandings of education and management impose to us a number of important
complex scientifically methodological, scientifically professional and practical issues. Therefore, let us tackle
this one by one:
Management understood as an aimed, relevant activity of managing processes has various natures and
attributes – from managing of organized processes to managing of crisis and disasters, but always understood as
social process and always understood as social relation. Management is a form of work and influence, primarily
of intellectual and psychical, and only sporadically manual nature. Its important role is in defining objectives,
making orders that have to be performed during work process, according to defined rules, establishment of
specific rules of conduct, control of performance and validation of performance and effects achieved by
execution performance. Management is formed at different levels of organization.
We understand education as a process of acquiring of socially useful and personally applicable
knowledge within the framework of occupation and profession and in realization of social communication and
social position. Acquiring of knowledge is guided precisely by needs for socially useful work and social
promotion, wherein education plays an important role. Education, as a term and reality, imposes the need of
processing and terms of upbringing and training, and among other for application – practicing of acquired
knowledge and capacities.
A derived construct „educational management“ – „management in education“ belongs to the important
terms of this theme. On one hand, that term designates an educational area as a set of manageable processes, and
on the other hand, as a management area.

68

�We understand the term educational management in the widest meaning – so that indirect orientating
influence belongs to its contents in entirety, and not only in educational system.
The term „educational institutions“ encompasses a very wide circle of independent and other social
institutions, with their relevant features: 1) relatively permanent existing as an organized form of work of which
it is primary role and overall task; 2) it has relatively stable plans and plans and programs of education; 3) these
are legal institutions. Among those institutions the following certainly belong: A) all types of schools, whether
as schools of a defined level, „state“, private-owned, or as one of functional forms of some other institution; B)
relatively permanent forms of education in the framework of some economic organizations – enterprises.
Business side of work and business management are particularly different between private-owned
educational institutions and state-owned institutions or those owned by some economic or other organization. In
this sense, we should differentiate educational institutions that acquire all funds in open, external market and
have free use of them, from institutions that do not acquire funds in market or they acquire them only partially.
The most obvious example is the difference between state- and private-owned primary schools and the
management within them.
Education in state-owned primary schools has the following important characteristics:
(1) materially – financial basis provided by the state according to its standards;
(2) schools are obliged to work according to prescribed programs with relatively low possibilities for their
varying, especially through the choice between more text-books for the same subject;
(3) only those people who meet prescribed requirements can realize a teacher’s role;
(4) working hours, way of assessment of results and material compensation for certain work and success in
work are approximately prescribed.
In such institutions possibilities for realization of management functions are very restrictive. Their
restrictiveness is strengthened by the fact that citizens of a defined age are obliged to attend and to complete if
possible corresponding primary school degree.
In those schools, be they simple or complex (central (master) school with more units separated in terms
of territory) it is possible and as a rule it is so, one subject is the „TOP MANAGER“ – authorized and
responsible for material – financial activities and for managing of educational processes.
Does such person suit to the model of „top manager“? Top – managers, in understanding of Aziz Šunje
PhD, are: „managers positioned on the top of an organization, or managers who are responsible for business
activities of entire organization. They, in contrast to middle-line managers, have so-called cross – sectoral
responsibility, or responsibility for business activities of entire organization – all organizational units. Seen in
that context, organizational top managers really are organizational key managers.“ (Šunje, 2003: 15)
According to opinion of the quoted author, „The role of business decision-making makes the essence of
manager’s job, and according to this concept, we can distinguish the following roles of business decisionmaking:
(1) Role of entrepreneur, role within which a manager shows up as initiator of changes, most often on the
basis of information collected through the role of monitor (identification of external „opportunities“ and „risks“,
initiating of new ideas...).
(2) Role of disturbance handler, within which a manager reacts to all kinds of disturbances that appear as
result of pressures (and changes) out of manager’s control – from a quarrel between two subordinates, to
complaints made by a customer or a supplier...
(3) Role of resource allocator, role in which a manager shows up as central subject who decides which
resources will be engaged and how the given resources will be deployed and mutually connected.
(4) Role of negotiator, with notice that managers, especially top – managers, spend a big part of time
negotiating with different partners – customers, suppliers, unions, government and all stakeholders. Negotiation
skill is however one of most appreciated manager’s skills...managers, performing one role, most often
simultaneously perform some other managerial roles.“ (Šunje, 2003: 15) Although this model does not show
decision-making process, it is important because it allows comparing the most important function of a manager
and a top – manager.
Top manager deals, relatively freely, with overall consent of the owner, with all key functions and
businesses playing the role of supreme order issuing authority and controller in all matters of business activities,
and business success is his/her main task and responsibility. That is also main criterion in measuring of his/her
success.
Business making in budgetary, non-economic institution, certainly is not primary object of interest, but
is satisfying of social needs for which the institution was established, and understanding is primarily directed
towards usage of funds put at disposal by the budget, in the most effective and most functional way. Of course,
we do not dispute the fact that, within business activity of a budgetary primary school there are necessarily
procurements of means for maintenance of the school, the school hygiene, teaching materials, articles for pupil’s
kitchen (if applicable) as well as that selling of written off material, certain kinds of waste or, maybe services
and products of pupils’ cooperative. But, that cannot approach by any means to business transactions happening

69

�in market, with competence and in order to gain profit. Top manager (principal of a state primary school) by
his/her real role and functions in business activities of school, does not fit in ideal type of manager that can be
found in postulates of manager as strategist and visionary of business.
With private-owned primary schools the thing is completely different. Indeed, they are also as regards
relevant educational and upbringing activities due to fulfill their legally prescribed obligations and set standards.
However, in business part they have very broad opportunities.
First of all, private-owned schools do not have obligatory attendants. On the contrary, they face strong
competition of developed network of free-of-charge primary schools owned by the state. In that competition,
they have to attract clients who can pay for it, and to succeed in that, it has to offer to those clients certain
exclusivity – but without disturbing of basic, prescribed educational programs and standards of work. It has to
(and should) offer and realize more and better, something that in clients’ opinion you cannot obtain in state
schools and which is worth of extra-paying for. We emphasize, it is about normal schools. It could be said that
business part in such schools has all factors and characteristics of market business with limitations related to
program realization and diplomas being conditioned by successful realization of those programs, implementers
of which have to possess prescribed worker profile and attendants of defined age and health status.
Private owner of such school can be any subject (except the one prohibited by the law) whether as
group or collective. However, specificity of management of such school is that its general manager and his
deputy have to be from educational profession, which means subjects who acquired through their own schooling
certain corresponding levels of professional education and verified practice. Other composition of management
has to be in accordance with a school’s needs (its organization and level of development) and regulations in
effect. Most often, there occur middle-level managers from legal and financial profession.
An example of private-owned primary school points to appearing of a type of manager educated to
perform unified managerial functions. Possibly the owner and top manager can be connected in the same subject
with corresponding qualifications and that these, with support of expert associates who do not have status of
manager or are ’’first-line managers’’ – „managers at first level of organization – people who coordinate work of
operative executors at the bottom of organization.“ He/she performs all roles of top manager (interpersonal,
informational, business decision-making) and all relevant functions of management (planning, organising,
human resources function, leading, marketing, and control) with assistance of expert executants or with support
from specially engaged people and institutions.
The most complex situation with identification of management and managers is at universities,(Franz
and Nemeth, 2002; Shepherd, 1998) both at state- and private-owned. According to law, faculties remain
corporations, which implies, in principle, rights and responsibilities of faculties in business activities, as well as
corresponding management. However, by legal regulation of relation between faculties and universities where
faculties can only exist within the framework of universities, by regulation of professional and academic
education and position of institutions in interrelations, as well as schedule of competences and responsibilities of
collective organs, makes big difficulties to application of ideal – typical concept of management in their business
activities.
As for state universities and faculties, it is clear that in business sphere we can speak only about strictly
restrictive management because: a) Ministry with influence of universities makes decision on number of students
who will be admitted by certain faculties in certain status; b) for one number of students, the budget provides
funds; c) costs of studying of ’’self-financed’’ students are formed under control and influence of competent
Ministry, etc. These all lead to a situation that faculties introduced, beside Dean, status of ’’manager’’, as
persons with special responsibility for extra-curriculum business activities, but everything is subject to the Dean.
Hence, at state faculties and universities we cannot speak about standard type of management and manager,
although those faculties can deal with non-educational profitable activities, in certain cases, (e.g. renting
premises, providing certain intellectual services, expert advice, etc.) Private-owned university, especially if it is
an individual subject, seeks to manage material and financial assets, to centralize them and use them with the
least expenses and with profit. There are two typical situations: 1) University is the only activity and exclusive
(or main) source of income of its owner; 2) University is only one specific business unit in owner’s business
system. In addition, head of university may be owner of university if he meets legal requirements – and then he
embodies them, he is supreme governor of activities out of and in process of educational activity. Head of
university can be any other person who fulfils conditions, for example a prominent scientist, but he is also,
although competences of a head of university are defined by law and statutes of university, is greatly dependent
on owner. Because, private-owned university is private property of ’’landlord’’ and he is in system, his business
unit that has to be profitable. Since head of university (as well as deans) does not have to be familiar with
economy and applied economics, with legal – administrative and other non-educational business aspects, we
encounter manager of university, who leads extra-curriculum activities, but also some closely related to
educational processes and their function.
At such universities it is very difficult to identify real managerial roles, authority and responsibilities of
head of university, dean, managers of faculties and universities on one hand and owner and management of a

70

�system in which and within which university operates. Even when a university does not belong to another, wider
business system, it is very difficult to distinguish between normatively defined competences and responsibilities
between managerial organs and collective organs, as well as between organs of university and of faculty. It is
even more difficult to make it in practice. A very complex and important issue arises: what in educational
management sphere brings a concept that it is state and private-owned institutions that are independent in
performing of educational business? Is not it a new concept of independence of universities? It is obvious that it
is a very complex concept that can be realized with extreme difficulties. Independence is always under material
and legal independence, and that material – legal independence is a condition for independence of educational
and upbringing process, which means management in education as well. From the above exposed, it can be
relatively clearly seen executive character of management in education. The state sets basic frameworks, it more
or less defines our plans and programs and conditions to be fulfilled by their executors, prescribes conditions
under which those programs can be performed – including organizational structure, as method of acquiring of
funds through these activities. Management of educational institutions mainly makes influence indirectly, and its
main task is to organize execution of tasks posed by the state. Generally taken, this relates to state- and privateowned educational institutions equally.
Do the above considerations allow us the mentioned conclusion? Basis of the issue is the fact that all
legal organisations have to comply with legal frameworks. However, regulation relating to institutions, and
especially to the educational ones, is far more detailed and concrete, and possibilities of management more
reduced. In that sense, even in private-owned educational organizations, only one specific form of restrictive
management can be established. And secondly, it is evident that management of educational institutions is
clearly divided into two spheres: (1) conditionally named ’’business sphere ’’ and (2) educational sphere.
In business sphere, no matter how limited it might be, we discover functions of management and
managerial roles where this is manifested in private sector of education in a more evident and more accented
way. Everything that we said until now on management in business sphere of education is valid for special
schools as well (army, police, diplomacy, etc.), and for educational forms in enterprises and other forms of
education that perform their functions in framework of other systems, and with all that it is more emphasized. It
is possible that such forms do not even have their management in area of material – financial business activities.
Examples for this are those forms of education in enterprises without permanent organizational forma or plans
and programs of education. All their material – financial transactions are related to and mediated for manager of
human resources (human resources, cadre) of an enterprise. Reason for that is activity which imposes domination
of educational and upbringing process and its results as criteria of a successfully achieved goal.

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Poggeler Franz, Nemeth Balazs,˝Ethics, Ideals and Ideologies in the History of Adult Education“, in: Studies in
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Šunje Aziz, „Top-menadžer, vizionar i strateg“ (Top-manager, visionary and strategist), Tirada, Sarajevo, 2003.
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United Nations, ˝In larger freedom: Towards Security, Development and Human Rights for All“, Report of the
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72

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                    <text>1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo

Corporate Code of Conduct of Japanese Transnational Corporations:
Analysis of Corporate Social Responsibility in Supply Chain Management
Naoko OGAWA
Master of European Studies
Department of Economic and Social Sciences
University of Hamburg, Germany
naokostream@yahoo.co.jp
Abstract: This paper verifies that there is an absence of monitoring system and sanctions in
corporate codes of conduct of Japanese transnational companies in supply chain by analyzing
corporate social responsibility reports or sustainable reports of 40 firms which participate in
the Global Compact Japan Network. I argue that setting a proper monitoring system is
urgently needed, but setting sanctions does not fit to Japanese firms’ behaviors.
Keywords: Corporate Social Responsibility, Corporate Governance, Outsourcing,
Sustainable Development

Introduction
The notion of corporate social responsibility (CSR) is widely spread in Japanese firms. However the
concept of CSR is differently understood in Japan comparing with western countries. In general, there is a trend
among Japanese firms to see CSR as the responsibility that a firm is expected after it has been caught doing
something illegal or unethical or CSR as a charity (ed. Fujii &amp; Mizuno 2006). It can be said that the notion of
CSR is close to the primary notion of CSR in the United States where it appeared first in the world (Kolk,
Tulder &amp; Welters 1999). On the other hand, European Commission defines CSR as “A concept whereby
companies integrate social and environmental concerns in their business operations and in their interaction with
their stakeholders on a voluntary basis”1. European Commission emphasizes an aspect, which is how enterprises
interact with their internal and external stakeholders (employees, customers, neighbors, non-government
organizations. public authorities, etc). Currently, the notion of CSR by European Commission would be
dominant widely because corporate cross-boarder operations are occurring under globalization and transnational
corporations are required to take responsibility for their activities outside of their home countries. As the policy
of CSR, a number of firms set up firms’ code of conduct. Hepple (2005) mentions in his book, ‘Labor Laws and
Global Trade’, that private initiative such as corporate code of conduct indicates promoting sustainable social
development in the world’s poorest and most disadvantaged countries, with active participation of the people of
those countries. From this point of view, corporate code of conduct has a possibility to build win-win
relationship between home-country (developed country) and host country (developing country) instead of “race
to bottom” under globalization, which is often discussed. However, as realistic perspective, Hepple (2005)
points out two main problems regarding to corporate codes based on his research reviews. Firstly, the most
codes are limited in coverage. This means even though the companies have corporate codes in home countries,
they don’t formulate any practices for suppliers. Secondly, there are lack of effective monitoring and sanctions
in the consequence of non-compliance especially in host countries. As the conclusion, Hepple (2005) mentions
that private initiatives impose lower standards, which are inadequately monitored and enforced.
Corporate code of conduct became quite popular for Japanese transnational corporations (TNCs) and
these codes can be seen as an expression of CSR. However, as Japanese trend of CSR, there is a lack of the
wide aspect of suppliers in Japanese TNCs’ code of conduct. Moreover, as the Hepple’s indication (2005), there
is an absence of monitoring system and sanctions in corporate codes of conduct of Japanese TNCs. Based on
these backgrounds, this paper assesses empirically that there is an absence of monitoring system and sanctions
in corporate codes of conduct of Japanese TNCs in supply chain.
In the first chapter, CSR in supply chain management (SCM) is explored in general. Moreover, the
historical transition of the notion of Japanese CSR and the current situation of Japanese CSR is also looked by
literature review. Based on literature review, the hypothesis is reintroduced in the second chapter. In the third
chapter, data analysis is conducted by using the specific analysis model. Then the results of analysis are
explained and whether hypothesis is supported or rejected is shown. Finally, in the fourth chapter, as
conclusion, the actual condition of TNCs’ codes of conduct in Japan is discussed and some suggestions are
given for that.

Literature Review
1

European commission home page; http://ec.europa.eu/enterprise/csr/index_en.htm

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�1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo

Corporate Social Responsibility in Supply Chain
In 1990s the social and environmental concerns expanded to in the developing countries under the
acceleration of the economical globalization (Umino 2004). The TNCs became large size under the
globalization and they have had huge influence to the society. The activities of TNCs have caused problems in
the developing countries such as child labor and bad working conditions through their supply chains and
outsourcing. To resolve these concerns in the developing countries, it is more efficient and more effective to
request the TNCs to take actions against the problems concerned rather than to request to the governments in
the developing countries (Umino 2004). In this perspective, CSR in SCM has been required for TNCs.
Svendsen and Laberge (2006) pointed out that TNCs themselves cannot ignore the stakeholder networks around
the world for their firms’ sustainability. Social responsibility by a firm is now required in the all sphere where a
firm effects in the business activities. Meanwhile, code of conduct issued by a firm figures prominently as an
indicator of socially responsible business (Kolk, Tulder &amp; Welters). To think about TNCs code of conduct in an
international business context, the perspective of Wartick and Wood (1998) would be relevant. Wartick and
Wood (1998) introduced three principles of social responsibility, namely, the principle of legitimacy, the
principle of the public responsibility, and the principle of managerial discretion. They tried to apply these
principles to an international business context. According their arguments, the principle of legitimacy means to
fulfill the requirements of legitimacy in the home country in an international business context. If I try to
combine their arguments with firms’ code of conduct, it can be understood that the code of conduct in the host
countries should fulfill the home country level at least. The principle of public responsibility means that firms
should try to reduce the negative environmental impacts relating transporters, sellers, buyers, and users. It can
be considered that firms have responsibility all stakeholders both inside the home countries and outside the host
counties. The principle of managerial discretion indicates that managers can try to make environmentally sound
choices, even more higher standard than is required by any government. It suggests the possibility that private
code of conduct can be higher standard than code of conduct by international organization such as ILO and the
United Nation. As we saw, CSR in supply chain is indispensable for TNCs nowadays under globalization. As
the tool of the CSR procurement, TNCs code of conduct is relevant and they have possibilities, such as being a
driving force for exceeding legal standard in a host country and setting the higher standards than those by any
government or international organization.

The Transition of Corporate Social Responsibility in Japan
In this section and the following section, CSR in Japan is focused because the notion of CSR has been
changed time-to-time and place-to-place. Since the social and environmental concerns depend on the regions
under the certain date, it can be said that CSR holds regional characteristic. CSR in supply chain, which I
mentioned in the first section, is a trend for American and European countries, but in Japan the trend of CSR
would be different. First, I would like to overview briefly the Japanese CSR transactions because I believe it is
necessary to see the historical transition of CSR to know the current situation of CSR in Japan. Here I
summarized very briefly the stream of CSR from 1960s to today. The all historical information in this chapter is
upon the work by Ishikawa (2006).

1960s-1990s
In 1960s and 1970s, main CSR for Japanese firms was against environmental pollution because
environmental destructions or pollution diseases were caused under the economic growth. The aspect of
environmental protection has been continued until today. In 1980s, the Japan experienced bubble economy.
Many firms implemented tremendous philanthropic actions as a part of CSR. However, after “bubble economy”
collapsed in 1990s, the notion of CSR shifted to “compliance” since many scandals by firms were disclosed.

Today
Besides “compliance” and “environment”, the issued related to “human right” and “working life” have
arisen as the basic components of CSR today, because a remarkable increase in the damage to mental and
physical health, even death and suicide commitment due to overwork. Business activities are developed globally
and the global standard of firms’ behavior is brought forth. However those issued are a new frontier in CSR for
Japanese firms.

The Current Situation of Japanese Corporate Social Responsibility

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�1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo

Notion of CSR
From the historical review, we can recognize that the notion of CSR in Japan has been changed time to
time under the certain social and economical situations. The latest issue, CSR in the global business activities,
namely CSR in supply chain, would be not familiar for Japanese firms. The current notion of CSR can be seen
also in the empirical data from the surveys, which were conducted in 2002 and 2005 by Keizai Doyukai (Japan
Association of Corporate Executives). Keizai Doyukai implemented questionnaires concerning CSR against
2697 firms which were members of Keizai Doyukai and the other firms listed on the first and second section of
the Tokyo Stock Exchange. The respondents were the represents of the firms such as CEOs. The result of one of
the questions is below (Table 1). We can see the firms’ view regarding CSR currently. Most of the firms in
2005 regard CSR as compliance and acting moralistically, offering qualified products and service, and the
protection of environment. As current trend, less than the half of firms consider CSR as philanthropy and less
than 20% of firms think CSR as the contribution to the resolution of poverty or conflicts in the world.
Table 1: The components of CSR for Japanese Firms

Even between 2002 and 2005, the differences can be observed. The items highlighted are the top five
of those where the points were increased. To compare with 2002, the concerns of CSR have been expanding
from the management to the aspect of humanity such as human rights and contribution to the regional society.

Activity of CSR
Concerning the real activity of CSR by the Japanese firms, the other survey conducted by Keidanren
(Japan Business Federation) in 2005 indicates. Keidanren conducted the mail survey towards 1324 member
firms. The results to be focused are below (Table 2). Firstly, about 75% of respondent firms are doing business
with conscious of CSR. It means that they have the committees or the organizations capping “CSR” internally
and issue the CSR reports. Secondly, the half of the respondents started CSR activities after 2004 (Table 3). In
this question of the survey, the definition of CSR activities is not clear. Therefore, it is not clear what activities
did the half of firms start as CSR after 2004. However, it could be interpreted that the word and the current
notion of CSR were spread among Japanese firms quite recently. Thirdly, the most of respondent firms have
management principles, firms’ code of conduct and employees’ code of conduct (Table 4). Specifying the
policy seems to be very common for Japanese firms.

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�1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo

Table 2: CSR activities, Yes or No

Table 3: The year when firms started CSR activities

Table 4: CSR Policies

CSR in Supply Chain
Regarding CSR in the global business activity by Japanese firms, Ikuta (2007) researched empirically.
Ikuta (2007) investigated 118 Japanese firms, which were chosen in the Newsweek Global 500, a world ranking
of the firms around the world. According to his research, the firms, which consider CSR in supply chain, were
only 39 firms. He concluded that even though they are the worldwide enterprises, the firms that do CSR
activities in supply chain were only one third of them. CSR activities in supply chain were more observed in the
electronic industries and chemical, medical industries, but they are slow in car industries. On the other hand, the
survey by Keizai Doyukai in 20051 shows that 31% of 527 firms have CSR procurement standard in supply
chain and about 12% of them give suppliers advice or supervise them. From these both researches, it seems that
CSR procurement in supply chain is still not popular for Japanese firms as Ishikawa (2006) mentions.

社団法人 経済同友会 2006 「日本企業のCSR：進歩と展望」. (Japan Association of Corporate Executive,
CSR of Japanese firms: progress and foresight, viewed 20 March 2008,
http://www.doyukai.or.jp/policyproposals/articles/2006/pdf/060523b.pdf).
1

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�1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo

Hypothesis
From the literature review, it was known that most of Japanese firms hold firm’s code of conduct and
employee’s code of conduct as expression of CSR. However there are not so many firms that try to procure
CSR in supply chain in their international business context. The action of CSR in supply chain has been started
quite recently in Japan. When we focus their quite new actions for CSR in supply chain, the two problems
would be assumed according to Hepple (2005). As it were, there is an absence of monitoring system and
sanctions in corporate codes of conduct of Japanese TNCs.

Analysis
Data
To assess the hypothesis, I evaluate official information of 40 firms, which are members of the Global
Compact Network Japan (GCNJ). Precisely, the official information means sustainability reports or CSR reports
which are available to assess on the firms’ official websites and the information, which are written on the firms’
official websites. The reason why the firms in GCNJ were chosen as the data to analyze is that these firms can
be expected to make an effort for prevailing the firms’ codes of conduct in their suppliers. The Global Compact
asks companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas
of human rights, labor standards, the environment, and anti-corruption1. Moreover, it seems that the participants
of GCNJ have relatively higher concern for CSR. Therefore, it is expected that they practice CSR in supply
chain, which is relatively new area for Japanese firms as the target of CSR. GCNJ was officially launched in
2003 and at present, 59 firms, 1 city, and 1 university join the network. To analyze the CSR in supply chain, I
excluded the data of all small and medium enterprises, companies in the sector of finance and insurance, the
sector of professional, scientific and technical services (a consulting firm), and a newspaper company, a city
and a school. Therefore, only companies, which are considered to procure the materials from foreign suppliers,
are focused.

Method of Analysis
To assess the data, I set the criteria and classification as shown in Table 5, which is based on the Tulder
and Kolk’s (2005) model to analyze and compare codes of conduct and the evaluation criteria of CSR in SCM
by Ikuta (2007). The criteria are divided two main categories, ‘company policy’ and ‘compliance likelihood’.
‘Company policy’ is the criterion whether a firm has a code of conduct, which is addressed to business partners.
Business partners mean here suppliers, subcontractors and manufacturers. A code of conduct, which refers only
to environment protection, is excluded in this paper.
Regarding the classification, if a firm has a specific code of conduct, which is addressed to business
partners both in Japan and outside Japan, 2 is given. If a firm has a code of conduct in which business partners
are partly touched or it is not clear whether the business partners in outside of Japan is included, 1 is given. If
there are no mentions about codes of conducts for business partners, 0 is given. The second category,
‘compliance likelihood’ has four components. First one is ‘request to business partners’. It asks how a firm
requests a code of conduct to business partners. There are three degrees of criteria. If a firm requests business
partners concretely through regular seminars or meetings, 2 is given. If a firm inform business partner the policy
only, 1 is given. If there are no mentions about this, 0 is given. Secondly, ‘Monitoring system and process’
shows whether there is a monitoring system and process and if it is yes, how the content is. When there is good
insight into system and process, which means that monitoring details with certain criteria and time frames, 3 is
given. If there is only reference to some parts without criteria or time frames, 2 is given. If there is only general
reference to monitoring without details, 1 is given. At last, if none is mentioned, 0 is given. Thirdly, the
question is who is monitoring actor. If the actors come from outside of companies, 2 is given. It is based on the
idea that the monitoring by the third party (here, business partners: first party, companies: second party) is more
objective and reliable. If the monitoring is conducted by companies or business partners or both of them, 1 is
given. When nothing is written about monitoring actors, 0 is given. Finally, whether sanctions exist or not is
observed. The degree of criteria is similar to that of monitoring system and process. Point 3 is given for good
insight of sanctions measures including details, criteria, and time frames. Point 2 is given for only reference to
some parts without criteria or time frames. Point 1 is given for only general reference to sanctions without
details. Point 0 is given for none mentioned. The crucial problem of this analysis is that the companies are
determined as no practice of CSR in SCM if they do not present their practices on websites and there would be

1

The United Nation homepage, http://www.unglobalcompact.org/AboutTheGC/TheTenPRinciples/index.html

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�1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo

time lag until a firm uploads information on the web. Even though the United Nation suggests a company or any
other group in GCJN to present the content of activity for GC in the annual report or the company report, it is
assumed some firms do not explain details of activities in the annual reports. However, in reality, the
information on the official webpage is the tool to be accessed easily by the public and the information would be
what a firm wants to send to the public on the first stage. Therefore, the information seems to be relevant to be
evaluated and in this analysis, no information regards as there is no actions.
Table 5: Analysis Model

Result
The possible classification of each criterion varies on three or four scale. Figure 1 shows that the
proportion of the classifications that whether a firm has a code of conduct including the business partners. 22
firms (55%) declared business partners both in Japan and outside of Japan as the target. Most of them have
supplier code of conduct. The others declare that they require suppliers to keep firms’ code of conduct. 8 firms
(20%) only touched business partners regarding to CSR, but they do not clarify which codes they require to
business partners or they do not clarify the extent of business partners. 10 firms (25%) do not ask anything
business partners about code of conduct.

55

0%

10%

20%

30%

20

40%

50%

60%

25

70%

80%

90%

Business partners are declared as t he t arget in t he code.
Business partners are partly t ouched in the code.
None

Figure 1: Organization targeted

96

100%

�1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo

In 30 firms which require business partners require code of conduct, 12 firms of them (40%) explain
their requirements to business partners by holding regular seminars or meeting (Figure 2). 11 firms of them
announce specific supplier code of conduct for internal and external of Japan. Similarly, 12 firms (40%) inform
the business partners the policy by mail or before making contracts. 6 firms (20%) explain nothing how they
request business partners code of conduct.

40

0%

20%

40

40%

Request

20

60%

80%

100%

Inform only the policyNone

concretely

Figure 2: Request to business partners
If I look the more details of CSR in supply chain, I find that the fewer firms refer to monitoring
systems. However, in this paper, no information is interpreted as non action. Based on this point of view, it can
be said that a few firms monitor business partners’ behaviors. Figure 3 shows the degree of monitoring system
and process. In 30 firms, which require business partner code of conduct, none of them has good insight. 2 firms
(7%) reference to some parts of monitoring.

0 7

0%

20

20%

73

40%

Good insight
Only general reference wit hout det ails

60%

80%

100%

Reference t o some parts
None

Figure 3: Monitoring system and process
For example, AEON which is a retailing industry has Supplier Code of Conduct with 13 principles
including forbidden child and forced labor, working conditions, business dealing and so on. To check that
compliance is being carried out and any necessary improvements to be taken, AEON overseas operations are
subjected to either a second party (AEON auditing stuff) or third party (external specialist auditing bodies) audit
once a year. Second party audit covers 90 items and third party audit covers 370 items. AEON has also a system
whereby complaints can be reported to third party via complaints notification forms. In the case of Nippon
Paper Industries Co., Ltd., employees of the firm are stationed in all countries where provide major sources of
woodchips, including Australia, Chile and South Africa. They gather information daily about the operations of
suppliers, as well as information on the social conditions in the local areas. Suppliers are surveyed annually by
Nippon Paper Industries in details with respect to the applicable laws and regulations, the classification of
forests, their ownership and the status of forest certification, considerations given to human rights, labor, and
society, conservation of biodiversity, ecosystems, soils and water resources. 6 firms (20%) refer to the existence
of monitoring system without its details. 5 of 6 firms conducted the survey by questionnaire about the
compliance of code of conduct as monitoring. However, a survey by questionnaire cannot be said reliable
because suppliers could fake the answers. Besides the monitoring by questionnaires, Toshiba (a consumerelectrics maker) established the Clean Partner Line, a whistle-blower system for business partners. Toshiba
encourage business partners to point out any problems or concerns about persons affiliated with Toshiba Group

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�1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo

from the standpoint of compliance or fair trading and promptly correct any improper behavior. The problem of
this system would be the Clean Partner Line is linked directly to Toshiba itself. Under this system, a whistleblowing could be erased by Toshiba or a business partners would be hesitate to announce problems to keep
good business relationships with Toshiba. 22 firms (73%) do not mention about monitoring.
Concerning monitoring actors (Figure 4), only AEON takes a third party monitoring. 7 firms conducted
monitoring by the first (business partners) and second parties (firms). 6 firms of these 7 firms ask business
partners to implement questionnaire made by the second party. This case is interpreted that monitoring is
conducted by the first party that answers the questionnaire and the second party that gathers the answers and
investigates them. 74% of firms which require business partners code of conduct do not mentions anything
about who implements audit.

3

0%

23

74

20%

40%

Actors from out side

60%

80%

Firms t hemselves

None

100%

Figure 4: Monitoring actor
From the results of criterion 3 and 4, it seems that most of firms do not take account of monitoring
itself. Furthermore, no firms mention to sanctions. Many of 30 firms refers that they choose suppliers who
fulfill their code of conduct prior to the others who do not. Only Anritsu Corporation (an electric equipments
maker) mentions the possibility that the contract will be reconsidered if a business partner has a problem of
human right. Cancellation of a contract could be a sanction, but the expression of Anritsu Corporation is very
indirect. It could not be considered as a sanction, which will be really implemented.
Due to the all results, it can be said that there is an absence of monitoring system and sanctions in
corporate codes of conduct of Japanese TNCs participating in Global Compact Japan Network. Therefore, the
hypothesis is validated.

Conclusion
The procurement of CSR in supply chain both inside and outside of Japan has not been so popular
among the Japanese TNCs focused in this paper, even though they declare to support the Global Compact.
However, it is true that some of them are preparatory stage. It is assumed that the number of firms, which have
code of conduct for suppliers, will increase in years to come. Even though the firms have the code of conduct,
more than half of them do not explain their policy to suppliers through the regular seminars or meetings.
Moreover, the point to be considered would be the monitoring way because if code of conduct is not complied,
then it has no meaning to have code of conduct. Obviously there is a lack of monitoring system in the firm’s
code of conduct of the Japanese TNCs. At present, these codes are not good enough as tools to procure social
responsibility globally. They are nothing more than words on paper. There is only one firm who has a
monitoring system with a third party audit in GCJN. Therefore Japanese TNCs should arrange urgently the
monitoring systems with specific criteria, time frame, and third party audits to ensure the compliance.
Regarding the sanction, I do not believe the setting sanction for the incompliance fits to Japanese business
behaviors. The characteristics of Japanese firms’ transactions would be a long term transaction, familiar
relationship through the information sharing and developing human resources among the business partners, and
a long-term employment in the business affiliations. Therefore, Japanese firms would not prefer applying a
sanction for the incompliance, which could break a long term relationship. These characteristics can be an
advantage for Japanese firms to procurement CSR in supply chain. Because it is possible that they diffuse their
code of conduct through conversation with their suppliers for a long term and it could be more effective for
compliance than a top-down directions of CSR with sanctions. Moreover, if there have been already close and
reliable relationships, it is easier for the suppliers to accept the code of conduct. Japanese TNCs would need not

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only to set the monitoring system, but also to support CSR management of suppliers through regular seminars
for the manager class and developing human resources, for example.

Acknowledgment/ Note
The views reported in this paper are those of me alone, and not those of any institution. All errors and omissions,
which may unwittingly remain are the sole responsibility of me.

References
生田孝史 2007，「サプライチェーンのCSR戦略」 『研究レポート』 富士通総研 経済研究所. (Ikuta, T.
(2007). “CSR strategy in supply chain”, Research Report of Economic Research Center, Fujitsu Research Institute, no. 283,
viewed 20 February 2008, http://jp.fujitsu.com/group/fri/report/research/2007/report-283.html).
Ishikawa, A. (2006). “Changing Patterns of Corporate Social Responsibility in Japan”, in S György (eds), Labour,
Education &amp; Society, Europäischer Verlag der WIssenschaften, Frankfurt am Main.
藤井敏彦・海野みづえ
編，2006「グローバルCSR調達―サプライチェーンマネージメントと企業の社会的責任」 日科技連出版社.
(Fujii, T. &amp; Umino, M. (ed.) (2006), Global CSR Procurement ~Supply chain management and corporate social
responsibility~, JUSE Press, Ltd.)
Hepple, B. (2005), Labour Laws and Global Trade, Hart Publishing c/o, Oregon.
社団法人 経済同友会 2006 「企業の社会的責任(CSR)に関する経営者意識調査」. (Japan
Association
of
Corporate Executive, The survey of the managers’ attitude toward CSR, viewed 20 March 2008,
http://www.doyukai.or.jp/policyproposals/articles/2005/pdf/060307.pdf).
社団法人 経済同友会 2006 「日本企業のCSR：進歩と展望」. (Japan Association of Corporate Executive, CSR
of
Japanese
firms:
progress
and
foresight,
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March
2008,
http://www.doyukai.or.jp/policyproposals/articles/2006/pdf/060523b.pdf).
社団法人 日本経済団体連合会 2005 「CSR（企業の社会的責任）に関するアンケート調査結果」 (Japan
Business Federation, The reports of the survey regarding to CSR, viewed 20 March 2008,
http://www.keidanren.or.jp/japanese/policy/2005/066.pdf#search='企業の社会的責任に関する調査').
Kolk, A., Tulder, R. &amp; Welters, C. (1999), “International codes of conduct and corporate social responsibility: can
transnational corporations regulate themselves?”, Transnational Corporations, vol. 8, no 1, viewed 20 February 2008,
http://www.unctad.org/en/docs/iteiit20059_en.pdf#search='Transnational%20corporation%20Kolk%20Tulder%20Welters%
201999%20can%20transnational%20corporations%20regulate%20themselves'
Kolk, A. &amp; Tulder, R. (2005), “Setting new global rules? TNCs and code of conduct”, Transnational Corporations, vol. 14,
no 3, viewed 15 February 2008, http://www1.fee.uva.nl/pp/bin/269fulltext.pdf#search='Kolk%20%20tulder
海野みづえ

2004

「グローバル化するサプライチェーンでのCSR」『CSR企業価値をどう高めるか』高

巌

編 日本経済新聞社. (Umino, M. (2004), “CSR in globalizing supply chain”, in I Taka (eds), CSR, How firms enhance
their value, Nikkei Inc, Tokyo).
Svendsen, A. &amp; Laberge, M. (2006), “A New Direction for CSR: Engaging Networks for Whole System Change” in J
Jonker &amp; M de Witte (eds), The Challenge of Organizing and Implementing Corporate Social Responsibility, Palgrave
Macmillan, New York.
Wartick, S.L., &amp; Wood, D.J. (1998), International Business &amp; Society, Blackwell Publishers Ltd, Oxford.

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                    <text>1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo

Open Market Integration in the Balkans: Slovenia’s Success, Bosnia’s
Failure
Amir OMEROVIC
Faculty of the Economy and Business Administration,
International University of Sarajevo, Bosnia and Herzegovina
amir1608@gmail.com
Abstract: Dissolution of the former Yugoslavia resulted in creation of newly
formed states in Balkans. The stories of market transition of two Balkan countries:
namely, the success of Slovenia and the struggle of Bosnia and Herzegovina are
examined here. Several aspects of these two economies are investigated such as
current regional overview, regional economy, conditions for direct foreign
investment, government incentives for FDI, and economic and social reforms
required in order to draw interest of global foreign investments.
Keywords: Bosnia and Herzegovina, Slovenia, Market Integration, Economy
Overview,Investnment Climate

1. Introduction
The globalization of the world economy resulted in the rapid growth of industrial production, which in
effect generated higher levels of Gross Domestic Product (GDP) among many developing countries. However,
the shift in the economic systems of the countries in transition toward a market economy meant global changes
and a new quality in the overall social relations. The transition process has affected most intensely the postsocialist countries. Under the influence of the “Velvet Revolution” in 1989-1990, totalitarian socialist regimes
collapsed throughout Europe, including the Balkans region of the former Yugoslavia.
With the collapse of the social order and the disintegration of the Eastern bloc, the newly created
independent countries faced challenges that were unprecedented in many respects. After the change of regime,
the independent societies of the former Yugoslavia decided in favor of a pluralistic democratic social order and
market economy. However, the transfer of the development model of the Western European democracies has
encountered greater obstacles in some regions of the former Yugoslavia. The newly established countries in
transition had a beginner’s problem of being recognized as independent countries. In the region of former
Yugoslavia, Slovenia had established its independence within a couple of weeks, while in Bosnia and
Herzegovina the desire for independence has escalated into four years of brutal war. The war has had a
destructive impact on the overall economy of Bosnia and Herzegovina. With the establishment of independence
and the decentralization of power, all the countries of the former Yugoslavia were facing issues of economic
renewal, becoming accustomed to the rules of the market economy, and incorporation into the European Union.
This paper will compare two Balkan countries – the prosperous nation of Slovenia, and the struggling Bosnia
and Herzegovina, with respect to successful integration into Open Market Economy, specifically the
development of conditions necessary to draw interests of Globalizing Foreign Investments.

2. Current Regional Overview
2.1 - Slovenia Slovenia is a high-income country with a gross national income per capita of $17,290 in 2005.
Strategically located at the gateway to Balkans, Slovenia has been a star performer since its independence in
1991. With a population of 2 million, the country is strategically located at the crossroads between Eastern and
Western Europe and is endowed with highly skilled human capital. It is considered an important model of
success and stability for the neighboring countries in the former Yugoslavia. Slovenia joined the European
Union in 2004 and is set to become the first among the new EU member states of Central and Eastern Europe
and the Baltics to adopt the euro in January 2007.

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2.2 - Bosnia &amp; Herzegovina On the other hand, Bosnia and Herzegovina is a lower middle-income country with an official gross
national income per capita of US$2,440 in 2005. Approximately 62 percent of GDP is created in the services
sector, 29 percent in industry, and 9 percent in agriculture. Since the Dayton Peace Agreements ended the war
in the former Yugoslavia in 1995, Bosnia and Herzegovina has made tremendous progress in post-conflict
reconstruction, social integration, and state building. It is now working towards accession to the European
Union (EU), membership in the World Trade Organization (WTO), and membership in NATO’s Partnership for
Peace program. Based on its impressive economic recovery and sustained social stability, which have been
supported by high levels of international assistance, the country can be considered a post-conflict success story.
The country was among the last of the republics of the former Yugoslavia to declare independence, following a
referendum in 1992. The Dayton Peace Agreements set the current administrative framework for Bosnia and
Herzegovina. The framework is comprised of a central state government and two separate and distinct entities
that enjoy substantial autonomy - the Federation of Bosnia and Herzegovina and Republika Srpska. The war
caused extensive destruction of physical capital and a huge loss of output. Real GDP plummeted by 80 percent
and over 2 million people - nearly half the prewar population - became refugees, either abroad or internally. In
1996, a major donor assistance program set the stage for reconstruction and economic recovery. According to
the World Bank, overall donor commitments are estimated at US$5.4 billion. (World Bank, 2003).

3. Regional Economy
3.1 - Slovenia As the most prosperous republic of the former Yugoslavia, Slovenia emerged from its brief 10-day war
of secession in 1991 as an independent nation for the first time in its history. Since that time, the country has
made steady but cautious progress toward developing a market economy. Economic reforms introduced shortly
after independence led to healthy economic growth. Slovenia's economic success clearly illustrates the benefits
of embracing liberal trade, following the rule of law, and rewarding enterprise. This success, however, is not
unprecedented for Slovenia. Although it comprised only about one-thirteenth of Yugoslavia's total population,
it was the most productive of the Yugoslav republics, accounting for one-fifth of its GDP and one-third of its
exports. The country already enjoyed a relatively prosperous economy and strong market ties to the West when
it gained independence in 1991. Since independence, Slovenia has pursued diversification of its trade toward
the West and integration into Western and transatlantic institutions vigorously. In so doing, it has made
substantial progress in its transition to a market economy, particularly becoming party to a number of bilateral
and regional free trade agreements
Slovenia is one the best economic performers in Central and Eastern Europe, with a GDP per capita in
2005 estimated at U.S. $17,008 (Shane,ERS 2008) - slightly more than 75% of the EU-15 average. Slovenia
benefits from a well-educated and productive work force as well as dynamic and effective political and
economic institutions. Although Slovenia has taken a cautious, deliberate approach to economic management
and reform, with heavy emphasis on achieving consensus before proceeding, its overall record is one of relative
success.
Slovenia's economy is highly dependent on foreign trade. Statistics by Eurostat favorably reflect
performance of Slovenian economy. Economic management in Slovenia is relatively good. Public finances
showed modest deficits on the order of 1.5% of GDP in 2003. The budgets for 2004 and 2005 constrain public
deficit to 1.7% of GDP. The current account balance has improved significantly as a result of stronger exports
and a changed composition of imports by economic purpose. In 2003, the current account balance showed a
surplus for the second year in a row. Controlling inflation remains a top government priority. The authorities
have been successful in stabilizing the Slovenian currency and in bringing inflation down from more than 200%
in 1992 to just 3.6% in 2006. (Eurostat 2008). Due to its macroeconomic stability, favorable foreign debt
position, and successful accession to the EU, Slovenia consistently receives the highest credit rating of all
transition economies.

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Figure 1: Slovenia Key Economic Ratios, % change on previous year, 1994-2004

Figure 2. Slovenia’s Growth, GDP and GDP per capita as a % of EU-25 average 2005
Source: Eurostat, 2006

3.2 - Bosnia &amp; Herzegovina To understand the state of the current Bosnian economy, one must look at the state of the region even
before the war. Before the war, Bosnia and Herzegovina ranked next to Macedonia as the poorest republic of
the former Yugoslavia. Although industry accounted for over 50% of GDP, Bosnia and Herzegovina was
primarily agricultural. Farms were small and inefficient, thus necessitating food imports. Industry was greatly
overstaffed, with Bosnia and Herzegovina accounting for much of the former Yugoslav’s metallic ore and coal
production. Timber production and textiles also were important. The destructive impact of the war on the
economy led to a 75% drop in GDP. Since the Dayton Accords, reconstruction programs initiated by the
international community financed the construction of infrastructure and provided loans to the manufacturing
sector. External aid amounted to $5 billion from 1995 to 1999. This aid caused growth rates to increase to
30%, but as of 2003, that rate had stabilized to around 6%. Actual GDP growth by that year had reached half its
pre-war level. Bosnia has made significant progress in achieving microeconomic stability. On the monetary
side, Bosnian central bank guarantees the most stable currency in the South Eastern Europe, which contributed

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to near-zero inflation rate of 0.2%. Economic stability is reinforced by a treasury system which is sustained by
budgets which are kept within required limits. The GDP has risen steadily since 1997 and for 2006 is estimated
at 5.5%. Even if this is considered a slowdown compared to 25% average of post-war reconstruction, the rate of
5.5% is more sustainable and in line with the neighboring countries.

Figure 3. Annual growth rate, percentage change on previous year, 1996-2005
Source: Eurostat, 2006

Figure 4. Bosnia Key Economic Ratios, % change on previous year, 1995-2005
However, even with almost ten years of heavy reconstruction and a significant number of structural
reforms, the Bosnian economy is still lagging. 20% of the population lives below poverty line while 30% are
on or just above it. Official unemployment is around 40%. GDP per capita is one of the lowest in Europe.
Bosnia is burdened with a total debt of 2.5 billion Euros (U.S $3.2 billions).

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Figure 5. Composition of Bosnia’s National Debt, 2004-2005
The value of exports in 2006 equaled 25% of its imports. With foreign aid decreasing, Bosnia faces a
mounting current deficit which could threaten economic stability in a matter of years. Current reduction in
donor financial inflows is occurring for three reasons: 1) There is a sense of accomplishment among most
donors that Bosnia has successfully moved beyond most difficult post-conflict reconstruction phase; 2) Many
bilateral donors have other priorities and demands; 3) There is a sense of disillusionment among most donors
with the slow pace of reforms and lack of commitment to improving governance.

4. Investment Climate
4.1 - Slovenia Since independence in 1992, the foreign investment climate has steadily improved, despite constraints
that have inhibited investment in Slovenia. The small domestic economy has been viewed by many prospective
investors as the least risky of the former Yugoslav republics, but to date Slovenia's share of world foreign direct
investment(FDI) flows as been well below its share of world GDP.
Until the late 1990s Slovenia retained several barriers to foreign investment. Any company
incorporated in Slovenia was required to have a majority of Slovenes on its board of directors, or a managing
director or proxy of Slovene nationality. Foreign companies and individuals of foreign nationality were
prohibited from owning land in Slovenia. However, any company incorporated in Slovenia was permitted to
purchase real estate, regardless of the origin of its founding capital. Liberalization laws enacted in 1999
lowered the threshold of foreign direct investment from 50% to 10%. This allowed more foreign investors to
avert the custody account regime. Government efforts and reforms designed to attract foreign direct investment
(FDI) have proven somewhat successful - FDI almost tripled from 2001 to 2002, accounting for nearly 6.5% of
GDP. However, FDI fell sharply in 2003 due to a lack of any major privatization deal or foreign acquisition.
Slovenia's traditional anti-inflation policy in the past relied heavily on capital inflow restrictions. Its
slow privatization process favored domestic investors and prescribed long lag time on share trading,
complicated by a cultural wariness of being "bought up" by foreigners. As such, Slovenia has had a number of
impediments to full foreign participation in its economy. However, a number of these barriers to FDI were fully
removed in 2002. As a result, expected foreign takeovers of Slovenian blue chip companies, as well as EU
membership, have fueled investors' interest in the country. The US Departnment of state reports positively
about FDI in Slovenia saying that recent acquisitions by multinational companies - KBC of Belgium's takeover
of Nova Ljubljanska Banka, and Swiss Novartis' takeover of Lek Pharmaceuticals - clearly demonstrate the
attractiveness of the Slovenian economy, particularly to European investors seeking a platform to support
expansion into southeastern Europe. U.S. investments in Slovenia have been more modest; Goodyear is the
largest American investor. (US Dept of State/Slovenia, 2008).

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4.2 - Bosnia &amp; HerzegovinaAs a result of the political compromise needed to end the war, Bosnia and Herzegovina has been on a
kind of international community life support. Since 1995, billions of dollars of assistance has poured in,
primarily to rebuild destroyed infrastructure and homes of hundreds of thousands of refugees and displaced
people. With much of the reconstruction work complete, Bosnia is now focusing on building a more stable
economy. As with many other transitional economies, Bosnia is starting to recognize the potential of Foreign
Direct Investment and has acknowledged the need for creating a more attractive environment for foreign
investment. However, many economic problems, uncertainty, corruption, lack of information, insolvency, and
the black market are standing in the way of rapid transition and domestic acceptance of FDI. The Bosnian
government is trying to work on these issues and for the most part agreeing with foreign organizations that these
problems exists, but it will take time to solve them.
In addition to some aspects of regulatory environment, the business environment as it stands now has
several major issues that hinder foreign investment in Bosnia. According to the Index of Economic Freedom,
the overall country rating for Bosnia in 2007 is 54.7 out of 100, or ranked 115th out of 157 countries included.
(Index, 2007). This poor country rating, along with a very unfavorable country image by foreign investors,
impedes foreign investment. Bosnia is perceived as an unstable country with high uncertainty. With present
levels of perceived uncertainty and instability, many foreign investors are opting for business prospects in other
less risky countries of Eastern Europe, such as Slovenia. According to Bosnia’s Central Bank Statistics, FDI in
2004 totaled $2.4 billion. The manufacturing industry had the highest percentage of the FDI, followed by the
banking sector. Investments from Austria and Croatia represent the largest percentages of the FDI at the end of
2004.

5. Government Incentives for Foreign Direct Investment
Some fiscally stable countries, such as Slovenia, sometimes provide additional incentives, start-up cost
sharing programs, to attract foreign investors. Other less fortunate countries, like Bosnia and Herzegovina,
although they may plan to provide similar start up support programs in the future, due to lack of monetary
resources are usually not in a position to implement such a benefit for foreign investors. This section will
evaluate additional benefits for foreign investors instituted by Slovenia’s Government.
5.1 Slovenia’s Government FDI Cost-Sharing Grant Scheme
In August 2005, the government published a Cost Sharing Grant Scheme, which invites investors
initiating ventures of more than 1 million euros to negotiate an investment bonus package with the government.
Foreign companies making direct investments in Slovenia may apply for financial grants. The purpose
of the Invitation for Applications is to boost attractiveness of Slovenia as a location for foreign direct
investment by lowering entry (start-up) costs to the investors whose investment will have a positive impact on
new employment, knowledge and technology transfer, facilitation of balanced regional development, and will
foster alliances between foreign investors and Slovenian companies.
Grants are available for investments in industry, strategic services (Customer Contact Centers, Shared
Services Centers, Logistics and Distribution Centers, Regional Headquarters) and R&amp;D. Incentives are eligible
for up to 40% cost of infrastructure and utility connections, cost of construction or purchase of buildings, as
well as purchase of new machinery and equipment. In the year 2007, there are allocated approx. EUR 5.8
million. As stated in (Reform Programme for Lisbon goals 2008), the government heavily supports research
and developments programs through the Structural Funds.

Figure 6. FDI Cost-Sharing Grant Scheme for 2006
Source: JAPTI, 2006

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5.2 FDI Cost-Sharing Grant Eligibility
The program is open to foreign investors, registered in the Republic of Slovenia in which they hold an
interest of at least 10 per cent of equity or foreign investors' subsidiaries. Applicable program requirements:
• Investment projects in the manufacturing
• sector that envisages the opening of at least 50 new jobs within three years of the grant allocation. The
minimum value of the investment for which grants are allocated shall amount to:
- 1 million euros in the regions classified on the regional list A considered to be underdeveloped
(Pomurska, Podravska, Zasavska and Spodnjeposavska), and on the lists A, B, C and D territories
of the municipalities coping with specific development problems;
- 2 million euros in the regions classified on the regional list B (Savinjska, Koroška, Notranjsko-kraška
and Jugovzhodna Slovenija);
- 3 million euros in the regions classified on the regional list C (Goriška and Gorenjska);
- 4 million euros in the regions classified on the regional list D (Obalno-kraška and
Osrednjeslovenska).
• Investment projects in an internationally marketable service activity envisaging the creation of at least
10 new jobs within three years of the grant allocation. The minimum value of the investment for the
grant allocation shall amount to 1 million euros. A service activity eligible for preferential treatment
shall be among the following: Customer Contact Centers, Shared Services Centers, Logistics and
Distribution, and Regional Headquarters.
• Investment projects in research &amp; development activity envisaging the creation of at least 10 new jobs
within three years of the grant allocation. The minimum value of the investment for the grant
allocation shall amount to 1 million euros. An activity carried out by a company or a self-contained
organizational unit whose core activity is the research and experimental development in the area of
technology is considered a research &amp; development activity.
The investment project and newly created jobs must be kept in the region for at least five years. The following
costs shall be deemed eligible for grant allocation:
• Costs of providing utility connections and infrastructure facilities for the site,
• Costs incurred under the construction or purchase of premises,
• Costs incurred under the purchase of plant and equipment, and
• Costs of gross wages/salaries for newly employed staff (for a two-year period).

6. Necessary Economic and Social Reforms
When compared, Slovenia and Bosnia &amp; Herzegovina, in similar ways are still in need of economic
and social reforms in order to successfully complete the transition to free markets and to provide enough
incentives for foreign direct investment.
6.1 - Slovenia –
Owing to the slow pace of change, Slovenia started to lose its advantage in global competitiveness.
Other Central and East European transitional economies, mainly those that have implemented more courageous
and radical structural reforms such as Poland, are catching up and even overtaking Slovenia’s potential markets
in certain areas. Following is a list of possible areas for improvement of Slovenia’s position in the competitive
global market:
1. Tax reform in the direction of introducing a flat tax rate and simplification of tax regulations could
unburden Slovenia's economy. The abolishment of the payroll tax and introduction of a flat tax rate,
while keeping net earnings unchanged, will greatly reduce gross labor costs, especially of the more
skilled employees.
2. New reforms should be introduced for the university system and research and development, which will
create incentives to use current and new capabilities for economic growth, technological development,
and innovation.
3. For efficient and quicker productivity growth, it is necessary to implement the second wave of
privatization. This time, the best Slovenian enterprises will be subject to privatization, being more
suitable for dispersed privatization and diversified financial investors. The domestic non-transparent
consolidation of ownership at low prices must be replaced with a process that will be open to
international participation and that will ensure the respect of small shareholders’ rights. This reform
calls for transparent withdrawal of the State from the economy.

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4.

For effective financing of future development priorities a reduction in general government spending is
necessary in addition to overall restructuring of public expenditure. To narrow the gap between the
needs of the State for investment in infrastructure and the available traditional financial sources,
additional private capital be engaged in the form of a Public Private Partnership.

6.2 - Bosnia and Herzegovina One of the biggest burdens on the Bosnia’s economic development, in addition to overwhelming
government debt, is a dysfunctional bureaucratic system. This section evaluates some necessary changes,
reforms required for successful regional ergonomic growth and for creation of attractive environment for
foreign investors.
1. Disassemble the Payments Bureau - Rapidly reform all existing forms of Payments Bureau (PB). The
transfer of PB activities to commercial banks will both invigorate the banking sector and encourage
other economic activity to move gradually from the black market into the legal economy,
strengthening the government’s tax base. This reform is necessary for removal one of the major
disincentives to foreign investors.
2. Reform of Corporate Legal System is required. The question of Rule of Law in Bosnia and
Herzegovina affects all aspects of society, and economic activity is no exception. In neither entity
does the court system protect legitimate business interests, nor does it work in the interests of good
business practice and common sense. The reform of the judicial system is a massive undertaking, but
some reforms could be made quickly which would improve the climate for business.
• When inspectors seize goods or shut down firms without due process, institute a right of
appeal, with a guarantee of a court hearing within two days;
• Create an effective and quick system of appealing court decisions;
• Create a network of economic courts to handle small claims quickly and with a minimum of
procedure.
3. Reform Taxes – since efficient tax policy is crucial to the economic growth of Bosnia, as well as vital
to the revenues of the municipality, tax reform should be urgently considered. A sustainable tax
regime might be:
• Abolish all current business taxes (except the year-end tax on profit);
•
Replace business taxes with a sufficient VAT tax.
• Lower the level of payroll contributions from 87% to 35% of salaries;
• Lower the tax on profit from 36% to 20%.
4. Streamline Business Registration Procedures - Governments should reform business registration
procedures, so that they are similar to those in Western countries. The new registration system should
have the following characteristics: relatively quick, transparent, inexpensive, standardized paperwork
to be completed in when applying for business license, abolish the requirement to declare all areas of
business activity to the smallest detail, abolish the requirement for detailed company statutes.
5. Reform the Customs System and Increase Control over the Borders - two entity-level customs agencies
should be merged into a single central government customs agency. Revenues from the customs tariffs
should accrue to the central government, and not the entity governments. A portion of the revenues
could be recycled back to entity governments in accordance with a formula to be agreed.
6. Remove Barriers to Inter-Entity Trade- There is no economic advantage to either entity in erecting
barriers to trade within Bosnia and Herzegovina. Internal hidden taxes on inter-entity trade should be
abolished. As a result, inter-entity trade will increase, so raising revenues, and incentives to smuggle
will be removed. Businesses attempting to operate legally (and pay taxes) will get welcome relief
from illegal tax-free competition.
7. Proceed with Privatization - Privatization should not be further delayed, despite the risk that some
enterprises will fall into unscrupulous hands. Greater transparency in the ownership of enterprises will
help to revitalize the economy and force business to work efficiently for profit rather than simply to
keep going through inertia.
8. Ensure priority spending within transport sector – by placing the priority on improving the conditions
of the current transport network. Develop a comprehensive strategy and policy for the transport sector
to identify proprieties and to ensure that all debt-financed public investments are consistent with
available fiscal envelope, especially focusing on the development of corridor 5c.

References
World Bank, Bosnia &amp; Herzegovina. Country Brief 2003, Country’s capital base
http://lnweb90.worldbank.org/ECA/eca.nsf/2656afe00bc5f02185256d5d005dae97/62b3e2e7d301034c85256d5d0067e388?
OpenDocument

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Shane M. (2008). ERS International Macroeconomic Data Set. Real Historical Gross Domestic Product (GDP) Per Capita
and Growth Rates of GDP Per Capita for Baseline Countries/Regions 1969-2008. 1.
Eurostat/EBRD (2008), Slovenia, Slovenia Economic Overview Report
US Department of State (2008).Under Secretary for Public Diplomacy and Public Affairs, Electronic Information and
Publication Office. Reports, Slovenia (7).
Kane T., Holmes R., &amp; O’Grady Anastasia (2007). The Index of Economic Freedom, Bosnia 129-131
Republic of Slovenia, Government Publications (2008). Reform Programme for Achieving Lisbon Goals 1-130

206

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                <text>Dissolution of the former Yugoslavia resulted in creation of newly  formed states in Balkans. The stories of market transition of two Balkan countries:  namely, the success of Slovenia and the struggle of Bosnia and Herzegovina are  examined here. Several aspects of these two economies are investigated such as  current regional overview, regional economy, conditions for direct foreign  investment, government incentives for FDI, and economic and social reforms  required in order to draw interest of global foreign investments</text>
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                    <text>1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo

The Contributions on the Urban Ecology of Green Spaces in the Context of
Sustainable Urban Development
Serpil ONDER
Selcuk University, Agricultural Faculty
Landscape Architecture Department, Konya, TURKEY
sonder@selcuk.edu.tr

Abstract: The world is increasingly becoming an urban place. Urbanization increases the
distance between people and natural space. Urban ecosystems differ from natural or rural
ones in many obvious ways. Green space is an important part of complex urban
ecosystems and provides significant ecosystem services. It benefits urban communities
environmentally, aesthetically, recreationally and economically. In order to improve the
environmental quality in cities and ensure its sustainability, it should be paid an attention
to the establishment of green areas. This paper carried out to describe the importance of
urban open green spaces which effect on urban climate, air quality, biological diversity
and prevents erosion, noise and visual pollution within the framework of sustainable
urban development.
Keywords: sustainable urban development, urban ecology, urban green spaces.

Introduction
Some 65% of the world’s population is expected to be urban by the year 2025 (Schell and Ulijaszek
1999). As a result of urbanization,the world’s population has become increasingly concentrated in cities. Due to
fast urbanization, natural ecosystems areincreasingly replaced by urban development. Urban green spaces are an
important component of the complex urban ecosystem. They have very important functions in the creation of a
sustainable city. Green space has significant ecosystem services, which are defined as “the benefits human
population derives, directly or indirectly, from ecosystem functions” (Costanza et al. 1997). In particular, for
people living in large and dense cities, a good quality of life depends largely on the quality of the urban
environment(Van Leeuwen et al.2006). Originally, merely a decorative elementintowns and cities, green space
has now taken on a new value and function,the importance of which is widely acclaimed within the parameters
of sustainable development (Sanesia and Chiarello 2006). The aim of this paper isto explanation importance of
open green spaces forthe quality of urban life within the framework of sustainable urban development.

Urban ecosystem
Ecology is used to indicatethe study of relations between living organisms (man, animals and plants) and
their environment. Urban ecology is usually associated with ‘nature in cities’. The city is also a part of nature;
the processes of abiotic and biotic nature do not stop atthe urban fringe. Sustainable urban developmentis bound
to ecologicallimits. Urban ecology is the study of urban ecosystems. The city as a whole and parts of it can be
described as ecosystems (Tjallingii 1992). Urban ecosystems differ from natural or rural ones in many obvious
ways and are also often of poorer quality than their rural equivalents (Bolund and Hunhammar 1999). Human
activities,such as building,traffic, orindustrial production affectthe quality of air, water,and soil which impacts
ecosystems in many ways (Sukopp 2004). The future of earth ecosystems is increasingly dependent on the
patterns of urban growth because cities are growing rapidly worldwide. Human activities are part of these
systems and an analysis of their impact on the biotic and abiotic fields may provide us with guidelines for the
planning of urban ecosystems. Thus ecological urban planning may become a way of planning all urban
functions and areas. Ecological planning includes nature conservation and improvement, open and green space
systems and environmentalimpact assessment studies.

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Sustainable urban development concept
Sustainability, in general terms, is the ability to maintain balance of a certain process or state in any
system. It is now most frequently used in connection with biological and human systems. In an ecological
context, sustainability can be defined as the ability of an ecosystem to maintain ecological processes,functions,
biodiversity and productivity into the future. Sustainable development is a pattern of resource use that aims to
meet human needs while preserving the environment so thatthese needs can be met not only in the present, but
also for future generations to come. The term was used by the Brundtland Com mission. The Brundtland
Com mission, formally the World Com mission on Environment and Development (WCED), known by the name
of its Chair Gro Harlem Brundtland was assembled by the United Nations in 1983. The com mission was created
to address growing concern "about the accelerating deterioration of the human environment and natural
resources and the consequences of that deterioration for economic and social development." According to this
report,sustainable development was defined as “meetsthe needs ofthe present without compromising the ability
of future generations to meettheir own needs” (Anonymous 1991). The field of sustainable development can be
conceptually broken intothree constituent parts:environmentalsustainability,economic sustainability and sociopolitical sustainability (Goodland 1995). Environmental sustainability means of ensuring continuity of natural
resources includes biodiversity, human health, air, water and soil quality, protection of animal and plant life.
Sustainable city planning is possible with ecological planning which is based on sustainability of natural
resources. Urban green spaces have taken on a new value and function, the importance of which is widely
acclaimed within the parameters of sustainable development.

Urban green spaces functions
Urban green spaces are an important component of the complex urban ecosystem. Scottish Greenspace
(2008) defined green spaces as pieces of vegetated land within or adjoining an urban area, including parks,
gardens, natural or semi-natural areas, green corridors,and otherfunctional green areas.More studies on benefits
of green space in urban setting can be found in the literature. Green spaces, an important part of urban
ecosystems, have significant ecological, social, cultural and economic functions. Their ecological functions can
be explained as follows;
- Urban green spaces have intrinsic ecological value; they often have a variety of habitattypes, which
allows for high species diversity,including rare and threatened species (Chace and Walsh 2006).
- Green spaces improve air quality. They reduce air pollution, help to settle out,trap and hold particle
pollutants (dust, ash, pollen and smoke) (Yang et al. 2005),can sequester carbon dioxide emissions and adsorb
other dangerous gasses (Nowak and Crane 2002; McHale etal. 2007), produce oxygen, purify air(Jo 2002).
- Green spaces modify local climate,regulate microclimates and reduce the heatisland effect (Shin and
Lee 2005). Trees help cool the "heat island" effect in our inner cities. These islands result from storage of
thermal energy in concrete, steel and asphalt. Heat islands are 3 to 10 degrees warmer than the surrounding
countryside. The collective effect of a large area of transpiring trees (evaporating water) reduces the air
temperature in these areas. They lower airtemperature through shade,increase humidity in dry climates through
evaporation of moisture reduce glare on sunny days and wind speed.
- Green spaces conserve water and reduce soil erosion (Jim 2001). They reduce surface runoff of water
from storms, soil erosion and sedimentation in streams, increase groundwater recharge that is significantly
reduced by paving, reduce wind erosion of soil,lesser amounts of chemicalstransported to streams.
- Green spaces can reduce noise (Fang and Ling 2003). They absorb and block noise from the urban
environment. Tree belts situated between the noise source and the receiver can reduce the noise level perceived
by the receiver.
- Urban green spaces play a pivotalrolein preserving biodiversity (Attwell 2000). Trees and associated
plants create local ecosystems that provide habitat and food for birds and animals. They offer suitable miniclimates for other plants that could otherwise be absent from urban areas. Biodiversity is an important part of
urban forestry.
Furthermore, green spaces such as public parks, natural areas and golf courses can have a statistically
significant effect on the sale price of housesin close proximitytothose resources (Luttik 2000; Kong et al. 2007)
They contributes to public health and produce a vitamin ‘‘G’’ for health, well-being and social safety
(Groenewegen et al. 2006). They create feelings of relaxation and well-being, provide privacy and a sense of
solitude and security, shorten post-operative hospital stays when patients are placed in rooms with a view of
trees and open spaces. People are eagerto access these green spaces for recreation and to experience nature (De
Groot and Van den Born 2003; Lynn and Brown 2003). Green spaces introduce the natural into the urban
environment. They foster a connection between community residents and the natural environmentthat surrounds
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�1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo

them, thus allowing for a more liveable city. This is essentialin order for a community to be sustainable. Trees
add beauty and natural characterto our cities and towns, provide us with colours,flowers,and beautiful shapes,
forms and textures, screen harsh scenery, soften the outline of masonry, metal and glass, can be used
architecturally to provide space definition and landscape continuity.

Results
Green space has significant ecosystem services, which are defined as “the benefits human population
derives, directly or indirectly, from ecosystem functions”. To manage progress towards sustainable urban
development, it is essential to develop suitable indicators, one of which is the quality and quantity of green
spaces and related elements in the city. The planning and management of urban greening is of significance to
urban sustainable development.
In future, the social and spatial implications of new lifestyles, values, attitudes to nature and
sustainability will even lead to higher demands for urban green space. Green spaces provide numerous
ecological, social, economic, health, and recreational benefits. To counter these trends, itis important to make
sufficient provision of quality green space within urban areas as well as improve access to the countryside
around towns.
Consequently, the management of urban green areas is an increasingly important issue. At the end of
the evaluation of urban green spaces functions, some suggestions are cited:
-The management of urban green space including planning, design and resource management requires
the collaborative working ofmany disciplines at different spatialscales.
-Urban green and open space planning policies need to be developed locally in order to satisfy local
needs and to assist also in the achievement of national and international sustainability objectives.
-More integrated approaches as well as active involvement of the urban com munity, local authorities,
local businesses and voluntary groups (e.g., NGOs),forthe development and management of urban green spaces
are needed.
-An improvement of quantity, quality and accessibility of green spaces in order to form the basis for a
vision for urban green space is needed.
-To improve the quality of urban green spaces an up-to-date informative database is needed.
-The orderly and careful maintenance (irrigation, pruning, struggle with undesirable plant and animals
etc.) must be followed after presentation of green spaces.

References
Anonymous. (1991). Our Common Future, Turkish Environmental Problems Foundations, p:452. Önder Publisher, Ankara.
Attwell, K.. (2000). Urban land resources and urban planting – case studies from Denmark. Landscape and Urban Planning
52, 145–163.
Bolund, P., &amp; Hunhammar, S. (1999). Ecosystem services in urban areas. Ecological Economics 29, 293–301.
Chace, J.F., &amp; Walsh, J.J. (2006). Urban effects on native avifauna: a review. Landscape and Urban Planning 74, 46–69.
Costanza, R., D’Arge, R., De Groot, R., Farber, S., Grasso, M., Hannon, B., Laskin, R., Sutton, P., &amp; Van den Belt, M.
(1997). The value of the world’s ecosystem services and natural capital. Nature 387 (15), 253–260.
De Groot, W.T. &amp; Van den Born, R.J.G. (2003). Visions of nature and landscape type preferences: an exploration in The
Netherlands. Landscape Urban Planning 63, 127–138.
Fang, C.F. &amp; Ling, D.L. (2003). Investigation of the noise reduction provided by tree belts. Landscape and Urban Planning
63, 187–195.
Goodland, R. (1995). “The Concept of Environmental Sustainability”, Annual Review of Ecology and Systematics, Vol.26,
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Groenewegen, P.P., Berg, A.E., Vries, S. &amp; Verheij, R.A., 2006. Vitamin G: effects of green space on health, well-being, and
social safety. Study Protocol, BMC Public Health 6, 149. Available at: http://www.biomedcentral.com/1471-2458/6/149S
(accessed 1 February 2009).

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Jim, C.Y. (2001). Managing urban trees and their soil envelopes in a contiguously developed city environment. Environ.
Manage. 28 (6), 819–832.
Jo, H.K. (2002). Impacts of urban green space on offsetting carbon emissions for middle Korean. Journal of Environmental
Management 64, 115–126.
Kong, F., Yin, H. &amp; Nakagoshi, N. (2007). Using GIS and landscape metrics in the hedonic price modeling of the amenity
value of urban green space: a case study in Jinan City, China. Landscape and Urban Planning 79, 240–252.
Luttik, J. (2000). The value of trees, water and open space as reflected by house prices in The Netherlands. Landscape Urban
Planning 48,161–167.
Lynn, N.A. &amp; Brown, R.D. (2003). Effects of recreational use impacts on hiking experiences in natural areas. Landscape
Urban Planning 64, 77–87.
McHale, M.R., Mc Pherson, E.G. &amp; Burke, I.C. (2007). The potential of urban tree plantings to be cost effective in carbon
credit markets. Urban Forestry &amp; Urban Greening 6 (1), 49–60.
Nowak, D.J. &amp; Crane, D.E. (2002). Carbon storage and sequestration by urban trees in the USA. Environmental Pollution
116, 381–389.
Sanesi, G. &amp; Chiarello, F. (2006). Residents and urban green spaces: the case of Bari. Urban Forestry and Urban Greening 4
(3–4), 125–134.
Schell, L.M. &amp; Ulijaszek, S.J. (1999). Urbanism, Health and Human Biology in Industrialized Countries. Cambridge
University Press, Cambridge.
Scottish Greenspace. (2008). What is green space? Available at: http://www.greenspacescotland.org.uk// (accessed 1 May
2009).
Shin, D-H. &amp; Lee, K-S. (2005). Use of remote sensing and geographical information system to estimate green
spacetemperature change as a result of urban expansion. Landscape and Ecological Engineering 1, 169–176.
Sukopp H. (2004). Human-caused impact on preserved vegetation. Landscape and Urban Planning 68, 347-355.
Tjallingii S. (1992). Strategies fort he urban ecosystem. 7th Conference on Urban and Regional Research. p: 72-83, 29 june3 july 1992. Ankara, Turkey.
Tyrva¨inen, L. (1997). The amenity value of the urban forest: an application of hedonic pricing method. Landscape and
Urban Planning 37, 211–222.
Van Leeuwen, E.S., Vreeker, R. &amp; Rodenburg, C.A. (2006). A framework for quality of life assessment of urban green areas
in Europe: an application to District Park Reudnitz Leipzig. International Journal of Environmental Technology and
Management 6 (1/2), 111–122.
Yang, J., McBride, J., Zhou, J. &amp; Sun, Z. (2005). The urban forest in Beijing and its role in air pollution reduction. Urban
Forestry &amp; Urban Greening 3, 65–78.

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                    <text>1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo

To Take advantage of Mass Media Implementation on Agricultural Farms
in Konya; The case of Altınekin District
Cennet Oguz
University of Selcuk Faculty of Agriculture 42031 Konya,TUR KEY
coguz@selcuk.edu.tr
Hüseyin Dogançukuru
Agricultural Engineer Public Agricultural Extension department, TURKEY
hdogancukuru@hotmail.com

Abstract:This study was conducted to supply achievement of Agricultural Extension
work which is being implemented in Konya region. Itis significantly important to
state that which extension implements will be used in which level in order to reach
this objective. The minimum usable sample offarm enterprises was determined as 55
based on stratified sampling technique. The data were collected from Altınekin
districtin Konya. The new technologies application is quite high in the research area
and the producers are open to innovation.
The resultsindicate that agricultural modernization has a positive effect on farm
enterprises in the certain district and the reasons behind this are that the producers
are open to innovation and they have positive future expectation,the producers in an
economy have the right kind of knowledge and information, they can produce
economic output efficiently.
Keywords: Mass media, Agriculture Extension, Konya Province

Introduction
The world we liveinisshrinking withthe same level of changing and developing.Inthe nearfuture,the
nations which can cope with this change and development will have the chance to survive. The certain change is
ongoing with a spectacular speed in all part oflife. Rational and economic production oriented towards needs is
the main part of the modernization. Its centre is without doubt the human being. Modern technology which is
utilized for agricultural production will be the cause of an increase in the technical agricultural production. That
also means that there will be an improvement for the living conditions and a boost income of the farmers who
lives in the rural areas.In the end, better quality food consumption, good nutritive and a growing work capacity
will emerge.
On the other hand, the growing population and the population density in urban areas because of the
migration force the farmers to make a production with more quantity and a high quality. Other wise, this
uncontrolled population which consist of unemployed migrants will cause nuisance and socialturmoil. For that
reason the society have to take their responsibility of improving the living conditions of the rural people and
create methods to provide agricultural technical information that they need. They also have to make those
methods work. Itis called agricultural extension. The developed countries that are conscious about this subject
already established the necessary organisations.
With the 130 thousands registered farmers, Konya is the city that has the highest number of farmers in Turkey.
In terms of the area,the situation is also the same and with 135.886ha registered agricultural area; Konya is the
province that has the largest agricultural area. These figures signify the importance of agricultural extension
work that will be implemented in Konya province. In such a broad area with such a large number of farmers,
stating the usage of which agriculturalextension methods willbe utilized in which level willboostthe success of
the agricultural extension work that will be implemented. The main objective of this study is contributing the
success of the agricultural extension work which is being implemented in Konya region. It is significantly
important to state that which extension implements will be used in which level in order to reach this objective.
For the below reasons, Altinekin district was chosen as the research field; the regions is well-known by the
researchers,thelevel ofthe application ofthe new farming techniquesis quite high and the producers are open to
5

�1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo

innovation.
This study was done in order to revealthe progress in the use of the means of mass communication in
the certain district and the reasons behind this are that the producers are open to innovation and they have
positive future expectations.

Materyal ve Metot
The survey technique was applied for this research. When the survey form was prepared, the research
subject and the features of the agricultural enterprises are considered and we also did benefit from the other
survey forms which have being used for severalresearches.The data which was used forthe research belongs to
years 2006 and 2007. For the purpose of the research, Altinekin district was chosen as the research field and the
reasons behind this are thatthe regions is well-known by the researchers,the level ofthe application of the new
farming techniques is quite high and the producers are open to innovation. With the intention of improving the
accuracy of the findings which is obtained with information gathered from the enterprises and ensuring the
population’s different sections to be represented sufficiently, the stratified sampling methods was used for the
research. The stratified sampling is conducted by considering the factors which affectthe examined populations’
inspected features. With the stratified sampling, the population’s parameters are better estimated because it is
possibleto selectthem from allstratums.(Çiçek and at all. 1996).
Farm SizeGroup(ha)

Sample enterprises (unit)
1-20
13
21-40
29
41- +
13
Total
55
Table 1. The distribution of sample enterprises

Research Results And Discussion
Freehold Land and land use situation
During the research that was carried outinthe enterprises,the case ofland use,freehold land,leasehold
and share land’s width were considered. Enterprises’ ownership in land and their usage can be seen in table 2.
land
FarmSize
Group(ha)

1-20
21-40
41- +
Average

(ha)
14,512
25,664
52,827
31,001

hiring

partnership

Total enterprise area
Avrg.land
(ha)
ratio %
ratio %
(ha)
ratio % area(ha) ratio %
94,61
0,82
5,39
0,00
0,00
15,33
100,00
96,62
0,89
3,38
0,00
0,00
26,56
100,00
100
0,00
0,00
0,00
0,00
52,82
100,00
97,08
0,57
2,92
0,00
0,00
31,57
100,00
Table 2. Land use sitiuation in investigated holdings

In the Research field,the size of land is estimated as 31,57 ha. 97.08% of thisisfreehold and 2, 92 % is
leasehold.In turkey,the percentage ofthe enterprises which use freehold land is 92,7. Butthe percentage ofthe
enterprisesthat use leasehold and share land is 7.3 (Anonym,1997).

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�1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo

FarmSize
Group(ha)

1-20
21-40
41- +
Average
(%)

W heat
6,788
9,647
16,038
10,824
25,60

SugarBarley
beet
bean
sunflower Other
Totalfarm area
3,500
3,092
3,125
3,688
20,194
6,615
5,220
4,208
7,034
4,750
37,475
10,650 9,521
6,500
11,885
8,125
62,719
6,922
5,944
4,611
7,536
6,438
42,272
16,37
14,06
10,91
17,83
15,23
100,00
Table 3. Plant sowing ininvestigated holdings ( ha,%)

The enterprises product proportion isfollowing as; 25,60% wheat, 16,37% barley, 14,06% sugar-beat,
10,91% dryed bean, 17,83% sunflower and 15,23% other plants. The proportion of grain (barley, wheat etc.)
farming and the proportion ofdryed bean and sunflower farming is almost equal. This signifiesthatrotate
cultivation system is working successfully in agriculturalfields.

Substructure situation in village according to the enterprise groups
W hen the villages’infrastructures, where the enterprises are situated, are observed,itis determined that
78, 60% of the enterprises have asphalt-paved road. All ofthe villages have electricity. Only 24, 31% of these
have health centres, 16, 89% ofthese have canalization and 97, 44% of these have telephone. Infrastructures of
the telephone and electricity are completed. Thisindicatesthat farmers easily reach the com munication sources.

Farm Size
Group(ha)
1-20

Asphalt road

Electricity

Health organization

Canalization

Ho me phone

exist

exist

not

exist

not

exist

not

exist

not

69,23

30,77 100,00 0,00

7,69

92,31

15,38

84,62

92,31

7,69

89,66

10,34 100,00 0,00

34,48

62,07

27,59

68,97

100,00

0,00

76,92

23,08 100,00 0,00

30,77

69,23

7,69

92,31

100,00

0,00

97,44

2,56

not

21-40
41- +

Average

78,60 21,40 100,00 0,00 24,31
74,54
16,89 81,96
Table 4. Substructure situation according to the enterprise groups (%)

The situation of machinary equipment possessions according to the enterprise groups
In the research area, when enterprises’ usage ofthe equipment-machine is obtained,itisfound that all
the enterprises have tractor and plough. enterprises %97,44 Driller, %94,87 Atomizer, %67,37 Cultivator, %
8,84 Combine harvester, % 37,44 Sugar-beet harvester, % 87,44 Manure distributor, %35,10 Rotatiller, %22,55
subsoiler
It can be understood that when the largeness ofthe enterprise increase ,the possession of agricultural equipment
alsıincrease butin contrary to this situation we have observed thatitcan seen when the largeness ofthe
enterprise increase, possession ofthe sub-soiler, used for crumbling the hard-pan, begins to decrease.

7

�1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo

Farm Size
Group(ha)
1-20

SugarCo mbine
beet
Cultivator harvester harvester

M anure
distributor

Driller

Atomizer

Rotatiller Subsoiler

92,31

84,62

76,92

0,00

30,77

76,92

30,77

7,69

100,00

100,00

48,28

3,45

27,59

93,10

20,69

13,79

100,00

100,00

76,92

23,08

53,85

92,31

53,85

46,15

97,44
94,87
67,37
8,84
37,40
87,44
35,10
Table 5. The situation of machinary possessions ininvestigated holdings (%)

22,55

21-40
41- +

Average

The situation of using the electrical house equipment (household utensil)
The using Tv and Refrigerator according to the average enterprise groups were observed as 100 %.
Using the washing machine, hoover, dish washer,tv satelitereceiver, bread dough machine were determined as
81,43%,89,12%,13,70% 91,69 % 16,89 respectively. The most noticed resultsisthe increasing of usage of
electrical equipments depending increasing the enterprise largeness.Itshows thatthe results of high usage of
satelite receiverin rural areas put forth the high watching rate of various tv Channels. Nevertheless,itis very
noticeable that usage ofthe Bread Dough machine especially in larger farmer, most ofthe makes/bakes oftheir
own bread isinthe level of 16,89 %.
Farm Size
Washing
(TV satellite Bread dough
Group(ha)
machine
hoover
dish washer
receiver)
machine
1-20
69,23
84,62
7,69
92,31
7,69
21-40
82,76
82,76
10,34
82,76
27,59
41- +
92,31
100,00
23,08
100,00
15,38
Average
81,43
89,12
13,70
91,69
16,89
Table 6. The situation of using the electrical house equipmentininvestigated holdings (%)

Agricultural issues needed assistance for the farmers according to the enterprise groups
Agriculturalissues needed assistance forthe farmers according to the enterprise groups are listed as
below 66,84% for disorder and pests, 80,02 % for growing,88,86 % for market data (prices,support amounts,
credits), 87,98 % for fertiliserand fertilizing, 7,43 % for environmental protection and otherissues. These results
show thatfarmers mostly wonder some issues related to marketing and finance and try to find out support
amounts dealing with supporting their enterprises.itis noticeable situation that farmers needed some knowledge
concerning with environmental protection.
Farm Size
Group(ha)
1-20
21-40
41- +
Average

8

Disorder
Fertilizer and Environmental
and pests
growing
market
fertilizing
protection
61,54
76,92
84,62
92,31
0,00
62,07
86,21
89,66
79,31
6,90
76,92
76,92
92,31
92,31
15,38
66,84
80,02
88,86
87,98
7,43
Table 7. Agriculturalissues needed by assistance in investigated holdings (%)

other
0,00
6,90
15,38
7,43

�1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo

Information centers reached by the farmers according to the enterprise groups
Information centers reached by the farmers according to the average enterprise groups have been come
out as follow 81,43 % from other farmers, 95,14 % from Sub-province agricultural Directorate, 24,58 % from
agricultural, 8,58 % from published journals, 12,29 % from internet, 9,99 % from universities, 23,96 % from
research institutes, 80,02 from vendors and 7,43 % from other knowledge sources. Sub-province agricultural
Directorate, others farmers and agricultural pesticide vendors have come forward asthe mostly made
connections centers.

SubFrom
province
Farm Size other agricultural Agricultural Published
Research
Group(ha) farmers Directorate
engineer
journal Đnternet Univercity institute Vendor Other
1-20
76,92
92,31
23,08
0,00
7,69
7,69
15,38
69,23 0,00
21-40
82,76
27,59
10,34
13,79
6,90
10,34
86,21 6,90
41- +
84,62
100,00
23,08
15,38
15,38
15,38
46,15
84,62 15,38
Average

81,43

95,14
24,58
8,58
12,29
9,99
Table 8.Information centers reached by the farmers (%)

23,96

80,02

7,43

The Consideration of how accurately the agricultural practices have been done
Itis determined that 1,15 % of Producersinthe enterprise areas carried out accurate activities everytime
,27,4 % ofthem accepted the correctness of practices, 62,68 % accepted some inaccuracies, 8,84 ofthem
accepted thatthet made some mistakes in many times.intotal more than 70 % farmers admitted thatthey makde
some mistakes in some acricultural practices.
M any times, inaccurate
agricultural practices are
com mon
Farm Size Accurate
Sometime
Group(ha) everytime
Accurate
inaccurate
1-20
0,00
38,46
61,54
0,00
21-40
3,45
27,59
65,52
3,45
41- +
0,00
15,38
61,54
23,08
Average
1,15
27,14
62,86
8,84
Table 9. The Consideration of how accurately the agricultural practices have been done(%)

The situation of usage mass communication means according to the enterprise groups
W hen researching the situation of usage mass communication means according to the enterprise groups
in agriculturalissues,it was determined that whole farmers utilized from Tv as mass communication means .
Utilization ratio is 6,28 % from the Radio, 1,15 % from VCD, 16,89 % usage internet, 7,43 % from home phone,
40,58 % from newspaper, 18,30 % from magazine and 41,1 % from leaflets.
Farm Size
Group(ha)
1-20
21-40
41- +
Average

Tv
100,00
100,00
100,00
100,00

Radio
7,69
3,45
7,69
6,28

VCD
0,00
3,45
0,00
1,15

internet
7,69
27,59
15,38
16,89

Ho me
phone
0,00
6,90
15,38
7,43

Newspaper
38,46
44,83
38,46
40,58

Journal
0
24,14
30,77
18,30

Leaflet
30,76
31,03
61,54
41,11
9

�1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo

Table 10. Utilizing of Mass-Media implemention in investigated holdings (%)

The State Of Attending The Group Agricultural Knowledge Connection Supplies
According To Groups Of Enterprises
According to the means of enterprises,the farmers have attended asthe sharing place of agriculturel
knowledge to farmer meetings at arate of %73,12, panels at %22,02, conference at %14,59 and seminars at
%7,16.

Farm Size
Group(ha)
1-20
21-40
41- +
Average

Farmer
meetings
84,62
65,52
69,23
73,12

Panel
7,69
27,59
30,77
22,02

Conference
15,38
20,69
7,69
14,59

Seminar
0,00
13,79
7,69
7,16

Table 11. The situation of exchangeable agricultural knowledge (%)

The State Of Attending Individual Agricultural Knowledge Connection Supplies
According To Groups Of Enterprises
In the research field,the farmers getsthe agricultural news and knowledge from coffee houses at
%86,56, other farmers when atthe field at %79,13, village rooms at %44,56, stock market at %54,55, market at
%39,17 and from the fairs at%39,17.
Farm Size
On
Village meeting Stock
On
Group(ha)
farm
room
market market Fair
Đn cafes
1-20
84,62
84,62
30,77
38,46
23,08
7,69
21-40
82,76
75,86
41,38
48,28
24,14
48,28
41- +
92,31
76,92
61,54
76,92
30,77
61,54
Average
86,56
79,13
44,56
54,55
25,99
39,17
Table 12. The situation of sources ofindividual exchanging agricultural knowledge(%)

The State Of Getting Out Of The Village According To The Enterprise Groups
W hen examined the state of getting out ofthe village according to the enterprise groups,itis stated that
%55,97 ofthem everyday, %41,73 once a week and %2,30 once in atwo week gets out ofthe village.
Advances in transport opportunities and getting cheaper in rural areas and diversifying ofneeds increased getting
out of village and according to these %97,70 ofthe farmers atleast once a week feelsto get out ofthe village. As
a result,accepting the innovations level becomes high by the farmers who have strong connections with city
centers.
Farm Size
Group(ha)
1-20
21-40
41- +

Everyday
One at a week
One in every two weeks
61,54
38,46
0,00
44,83
48,28
6,90
61,54
38,46
0,00
Average
55,96817
41,73298
2,30
Table 13.the situation of frequency of visiting intervaltothe city (%)

The State Of Mobile Communication Level According To The Enterprise Groups
10

�1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo

According to the enterprise groups the state of possessing the mobile phone is at a rate of%98,85. The
rate of farmers who constantly have mobile phones nearby is %96,26. The rate of farmers that agricultural
knowledge comes to whose mobile phones is %14,85 and who doesn’t come is %85,15. The rate of farmers who
want to get agricultural knowledges by their phones is % 95,14. The farmers have their phones atthe average of
8,4 years. The farmers have paid 36,23 TL at average for monthly speech fee. Itisimportant to evaluate this
condition and using the form of SMS for farmers to reach knowledge.

Farm Size
Group (ha)

Situation of
Possession of holding the
mobile phone mobile phone

Co ming of
agricultural
knowledge from
mobile phone

Do yo want to
get agricultural
informatin
from phone ?

yes

no

no

yes

no

yes

no

100,00

0,00 92,31

7,69

7,69

92,31

100,00

0,00

8,15

20,5

96,55

3,45 96,55

0,00

13,79

82,76

93,10

6,90

8,28

23,4

100,00

0,00 100,00

0,00

23,08

76,92

92,31

7,69

8,77

26,05

yes

Haw long W hat is
have you
the
had mobile monthly
phone?
cost?
(year)
($)

1-20
21-40
41- +

Average

98,85
1,15 96,29
2,56 14,85
85,15
95,14
4,86 8,40
Table 14. The situation oflevel in mobile communication in investigated holdings (%)

23,3

Result and Suggestions
There are 3.076.650 enterprises in our country and 4.2 %( 130000) of those are in Konya. The following
facts prevent farmers who are disbanded in wide area from gaining accurate, solid information at the correct
time; Konya province has a broad area and itis consist of 31 districts. Our farmers concerns about certain issues
such as; transferring the agricultural technology to the farmers in research fields, announcing the innovations,
strengthening the farmers against the market and transferring the information about agricultural support and
credits. In 2007, agricultural supports was tried to be announced under 102 headings by only the Ministry of
Agriculture (http://www.tugem.gov.tr). Furthermore, there are new headings that need to be announced to
farmers. These are the followings; keeping records during the process of European Union, agricultural support
works based on these records, changes which are made based on figures and practises each years.In the past 3
years including 2005 and 2007, 7 laws, 23 ministers council decisions, 16 com muniqués, 13 circulars and 33
legislations were published by the Ministry of agriculture with the intention of regulating the agricultural
production (http://www.tugem.gov.tr).
The farmers are having difficulties reaching the information and using the communication sources. The
level of following up organs ofthe printed publication islow and the internet use began to increase. Despite the
factthat TV isthe best-known mass communication method, only one channelis consist of agricultural programs
amongst the 373 national TV channels which are revealed in the daily TV listing and the local TV channels
programmes do not have the sustainability. The existing com munication sources do not contain such subjects as
is valuable for the farmers. Furthermore,the farmers are not interested in agricultural subjects which organs of
the printed publication contain. Ministry of agriculture is trying to apply all sort of visual and printed
publications so as to reach banks,the farmer organisations and the private sector farmers. To gain the results of
these efforts, modern communication methods need to be utilized. Mobile communications that present us the
innovations in different sectors has to be included in agricultural extension works.
In the case of mobile communication, one way information flow which isin SMS format requires to be two
way. With the information transfer, sound files also need to be enabled to be sent and received. ARGE works
should be conducted so asto boost and generalizethe effectiveness of mobile communication in orderto produce
communication equipments at the prototype level. Agricultural publications models which are suitable for the
mobile communications methods used by farmers should be generated.
Farmers registration system that is implemented by Ministry of Agricultural, agricultural business
accounting data networks and the software sub-structure of allsort offarmer organisations have to be suitable for
11

�1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo

the mobile communications.

References
Anonymous, http://www.e-kolay.net
Anonymous, Http://tüik.gov.tr
Anonymous, http://www.tugem.gov.tr
Boyacı.M., 1996 Agricultural Extension in EU and Turkey, Ege University publication, Bornova ,Đzmir.
Cicek.A., Erkan.O., 1996. Research and Samples Method in Agricultural Economics, Gazi Osman Paşa University
Publication, Đzmir.
Celep. C., 1995. Public Education Pegem Pub. Number:22,ISBN:975-7251-14-3.Ankara.
Oakley. P., Garforth. C., 1998, The Guide Extension Education, Number:11 TYUAP publication, Ankara.
Özcatalbas.O., Gürgen. Y., Agricultural Extension and Communication, Baki Bookshop, Adana.
Yurttaş.Z.,2006Agricultural Extension and Communication Technics, A.Ü. Agricultural Faculty, Publication Number:67,
Erzurum.

12

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                <text>This study was conducted to supply achievement of Agricultural Extension  work which is being implemented in Konya region. It is significantly important to  state that which extension implements will be used in which level in order to reach  this objective. The minimum usable sample of farm enterprises was determined as 55  based on stratified sampling technique. The data were collected from Altınekin  district in Konya. The new technologies application is quite high in the research area  and the producers are open to innovation.  The results indicate that agricultural modernization has a positive effect on farm  enterprises in the certain district and the reasons behind this are that the producers  are open to innovation and they have positive future expectation, the producers in an  economy have the right kind of knowledge and information, they can produce  economic output efficiently.</text>
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