207 10 3494 https://omeka.ibu.edu.ba/files/original/71c74360e34717b720f00f9a7874c442.pdf 6e90788b66d7c15f7459b9791b1228ff PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo Optimizing Bosnian (BH) Macroeconomic Policy Adisa Omerbegovic Arapovic Sarajevo School of Science and Technology, Sarajevo, Bosnia and Herzegovina adisa.omerbegovic@ssst.edu.ba Postwar economy of BH has adopted free market economy mechanisms while inheriting most of the policies in the area of pension system, health care system, and market regulation from the time of centrally planned economy, which is unsustainable. BH has also adopted EU membership as the aim, which provides the constraint to policy making in many areas including macroeconomics, economic system and regulation of the market mechanisms. The additional constraints imposed on small open economy limit the macroeconomic policy of BH in achieving the external and internal balance. This paper analyzes present macroeconomic policy of BH using the standard open economy framework along the lines of Dornbush model, within the above mentioned limitations and constraints, and provides the optimum macroeconomic policy for BH, assuming the set objectives of economic growth, price stability and employment. We show that macroeconomic goal of employment can be reached, within constraints placed on BH economy, only through structural reforms that increase labor market flexibility, policies that tackle issues of efficient use of resources and effective mechanisms of market regulation. Keywords: Open Economy Macroeconomics, Economic Policy, Bosnia 6 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1462 Title A name given to the resource Optimizing Bosnian (BH) Macroeconomic Policy Author Author ARAPOVIC OMERBEGOVIC, Adisa Abstract A summary of the resource. Postwar economy of BH has adopted free market economy mechanisms while inheriting most of the policies in the area of pension system, health care system, and market regulation from the time of centrally planned economy, which is unsustainable. BH has also adopted EU membership as the aim, which provides the constraint to policy making in many areas including macroeconomics, economic system and regulation of the market mechanisms. The additional constraints imposed on small open economy limit the macroeconomic policy of BH in achieving the external and internal balance. This paper analyzes present macroeconomic policy of BH using the standard open economy framework along the lines of Dornbush model, within the above mentioned limitations and constraints, and provides the optimum macroeconomic policy for BH, assuming the set objectives of economic growth, price stability and employment. We show that macroeconomic goal of employment can be reached, within constraints placed on BH economy, only through structural reforms that increase labor market flexibility, policies that tackle issues of efficient use of resources and effective mechanisms of market regulation. Keywords: Open Economy Macroeconomics, Economic Policy, Bosnia Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2303-4564 https://omeka.ibu.edu.ba/files/original/f74b0d75111f438a94c289b8dfce1a94.pdf 36b18c1eb6bc2f0bfebe66e168a054bf PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo The Limits of the SCO: Rethinking the Enlargement Dilemma and Implications for Turkish Foreign Policy Shatlyk Amanov Melikşah University, Kayseri - TURKEY shatlyk@meliksah.edu.tr The question of whether the Shanghai Cooperation Organization (SCO), which has been seen by some scholars as the Russo-Chinese “strategic partnership”, can manage both deepening and widening of the organization simultaneously has been a central concern of many public and academic debates in recent years. Since its debut, SCO proved to be a potential platform where upon Beijing – Moscow cooperation on a wider Central Asia was enhanced further. Although the differences in the areas of security, foreign policy and trade orientations of the member states impede furthering the coordinated efforts towards enlargement, the SCO members and observers alike, share lots of ideals and are longing for a similar future for this extremely vast region. Nevertheless, it still remains to be seen whether the expansion of the organization would facilitate or make it more difficult in achieving and sustaining coherent policies among the member countries. In a time of global economic crisis and drastic changes in its immediate neighbors linked to the Arab Spring, the question of enlargement renders a bunch of challenges and intricate choices, among one of which is the recent overtures made by Turkey for joining the SCO as an alternative to the European Union (EU). This paper discusses the development of the SCO as an organization by analyzing first its founding principles and objectives. Secondly, the work sheds light on the converging and divergent aspects of the country specific approaches to the enlargement issue and thirdly, addresses the prospects of Turkish bid for full member status at SCO. Keywords: The Shanghai Cooperation Organization, Russia, China, Turkish Foreign Policy, Arab Spring, Eurasian Security. 257 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1660 Title A name given to the resource The Limits of the SCO: Rethinking the Enlargement Dilemma and Implications for Turkish Foreign Policy Author Author AMANOV, Shatlyk Abstract A summary of the resource. The question of whether the Shanghai Cooperation Organization (SCO), which has been seen by some scholars as the Russo-Chinese “strategic partnership”, can manage both deepening and widening of the organization simultaneously has been a central concern of many public and academic debates in recent years. Since its debut, SCO proved to be a potential platform where upon Beijing – Moscow cooperation on a wider Central Asia was enhanced further. Although the differences in the areas of security, foreign policy and trade orientations of the member states impede furthering the coordinated efforts towards enlargement, the SCO members and observers alike, share lots of ideals and are longing for a similar future for this extremely vast region. Nevertheless, it still remains to be seen whether the expansion of the organization would facilitate or make it more difficult in achieving and sustaining coherent policies among the member countries. In a time of global economic crisis and drastic changes in its immediate neighbors linked to the Arab Spring, the question of enlargement renders a bunch of challenges and intricate choices, among one of which is the recent overtures made by Turkey for joining the SCO as an alternative to the European Union (EU). This paper discusses the development of the SCO as an organization by analyzing first its founding principles and objectives. Secondly, the work sheds light on the converging and divergent aspects of the country specific approaches to the enlargement issue and thirdly, addresses the prospects of Turkish bid for full member status at SCO. Keywords: The Shanghai Cooperation Organization, Russia, China, Turkish Foreign Policy, Arab Spring, Eurasian Security. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2303-4564 https://omeka.ibu.edu.ba/files/original/d94a7fcf660a228a8ab7fac432e9e127.pdf 2b0e48de2b053f275d30e98d11a856ca PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo The Role of Work Hope on Entrepreneurial Self-efficacy and Entrepreneurial Intentions: Evidence from Business Students in Turkey Gültekin Altuntaş İstanbul University, İstanbul, Turkey altuntas@İstanbul.edu.tr Aytuğ Sözüer Yalova University, Yalova, Turkey sozuer@hotmail.com Altan Doğan İstanbul University, İstanbul, Turkey altand@İstanbul.edu.tr H. Talha Demirtaş İstanbul University, İstanbul, Turkey talha@İstanbul.edu.tr Based on Bandura’s (1977; 1982) ‘self-efficacy’ concept within socialcognitive theory, management scholars derived ‘entrepreneurial selfefficacy’ (e.g. Boyd & Vozikis, 1994; Chen, Greene & Crick, 1998; De Noble, Jung & Ehrlich, 1999), which is defined as an individual’s thoughts or beliefs of whether he or she has the abilities attributed to an entrepreneur’s role in respect to his or her self-perceptions of their skills (Chen, Greene & Crick, 1998; Wilson, Kickul & Marlino, 2007). Widely accepted entrepreneurial skills are opportunity identification, relationship building, managerial capacity and tolerance for working effectively under conditions of stress, pressure, conflict, and change (Barbosa, Gerhardt & Kickul, 2007). Besides this definition, it is noted that individuals are motivated by their self-efficacy rather than their objective ability to achieve an important tasks as well as a chosen outcome (Bandura, 1989; 1997; Markham, Balkin & Baron, 2002). Individuals with high level of entrepreneurial self-efficacy share another belief of possessing a viable idea for a new business (Wilson, Kickul & Marlino, 2007) on which it is expected for them to have an aspiration to act reflecting a high level of entrepreneurial intention (Chen, Greene & Crick, 1998; De Noble, Jung & Ehrlich, 1999; Krueger, Reilly & Carsrud, 133 �International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo 2000; Krueger, 2007). In other words, individuals engage in entrepreneurship not by accident but by an entrepreneurial intention defined as a conscious state of mind, which directs their personal attention, experience, and behavior toward planned entrepreneurial behavior (Krueger, 2007; Bird, 1988). In order to understand the relationship between self-efficacy and career choice or particularly entrepreneurial intentions, there is extant research (e.g. Barbosa, Gerhardt & Kickul, 2007; Boyd & Vozikis, 1994; Kruger, 1993; Krueger, Reilly, & Carsrud, 2000; Markham, Balkin & Baron, 2002; Shapero & Sokol, 1982; Wilson, Kickul & Marlino, 2007). However, there is limited application of a newly developed construct, i.e. ‘work hope’ within this interaction. Adapted from Snyder’s (2000) hope theory, Juntunen and Wettersten (2006) defines work hope as “a positive motivational state that is directed at work and work-related goals and is composed of the presence of workrelated goals and both the agency and pathways for achieving those goals”. Furthermore, they developed an instrument to assess work hope, which would offer empirical information in vocational research (Juntunen & Wettersten, 2006). In respect, ‘work hope’ is assumed as a promising variable to provide additional perspective to the understanding of individuals’ entrepreneurial intentions. To sum up, this study aims to investigate the role of work hope on the relationship between entrepreneurial self-efficacy and entrepreneurial intentions. The scope of the research would be students enrolled in İstanbul University, School of Business Administration and a cross-sectional survey is intended for data collection. In attempt to expand previous literature, this study is expected to shed light on the moderating effect of students’ vocational prospects on their perceived self-efficacy and entrepreneurial intentions. Keywords: Entrepreneurial Self-Efficacy, Entrepreneurial Intentions, Work Hope. 134 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1573 Title A name given to the resource The Role of Work Hope on Entrepreneurial Self-efficacy and Entrepreneurial Intentions: Evidence from Business Students in Turkey Author Author ALTUNTAS, Gultekin AYTUG, Sozuer DOGAN, Altan H. TALHA, Demirtas Abstract A summary of the resource. Based on Bandura’s (1977; 1982) ‘self-efficacy’ concept within socialcognitive theory, management scholars derived ‘entrepreneurial selfefficacy’ (e.g. Boyd & Vozikis, 1994; Chen, Greene & Crick, 1998; De Noble, Jung & Ehrlich, 1999), which is defined as an individual’s thoughts or beliefs of whether he or she has the abilities attributed to an entrepreneur’s role in respect to his or her self-perceptions of their skills (Chen, Greene & Crick, 1998; Wilson, Kickul & Marlino, 2007). Widely accepted entrepreneurial skills are opportunity identification, relationship building, managerial capacity and tolerance for working effectively under conditions of stress, pressure, conflict, and change (Barbosa, Gerhardt & Kickul, 2007). Besides this definition, it is noted that individuals are motivated by their self-efficacy rather than their objective ability to achieve an important tasks as well as a chosen outcome (Bandura, 1989; 1997; Markham, Balkin & Baron, 2002). Individuals with high level of entrepreneurial self-efficacy share another belief of possessing a viable idea for a new business (Wilson, Kickul & Marlino, 2007) on which it is expected for them to have an aspiration to act reflecting a high level of entrepreneurial intention (Chen, Greene & Crick, 1998; De Noble, Jung & Ehrlich, 1999; Krueger, Reilly & Carsrud, 2000; Krueger, 2007). In other words, individuals engage in entrepreneurship not by accident but by an entrepreneurial intention defined as a conscious state of mind, which directs their personal attention, experience, and behavior toward planned entrepreneurial behavior (Krueger, 2007; Bird, 1988). In order to understand the relationship between self-efficacy and career choice or particularly entrepreneurial intentions, there is extant research (e.g. Barbosa, Gerhardt & Kickul, 2007; Boyd & Vozikis, 1994; Kruger, 1993; Krueger, Reilly, & Carsrud, 2000; Markham, Balkin & Baron, 2002; Shapero & Sokol, 1982; Wilson, Kickul & Marlino, 2007). However, there is limited application of a newly developed construct, i.e. ‘work hope’ within this interaction. Adapted from Snyder’s (2000) hope theory, Juntunen and Wettersten (2006) defines work hope as “a positive motivational state that is directed at work and work-related goals and is composed of the presence of workrelated goals and both the agency and pathways for achieving those goals”. Furthermore, they developed an instrument to assess work hope, which would offer empirical information in vocational research (Juntunen & Wettersten, 2006). In respect, ‘work hope’ is assumed as a promising variable to provide additional perspective to the understanding of individuals’ entrepreneurial intentions. To sum up, this study aims to investigate the role of work hope on the relationship between entrepreneurial self-efficacy and entrepreneurial intentions. The scope of the research would be students enrolled in İstanbul University, School of Business Administration and a cross-sectional survey is intended for data collection. In attempt to expand previous literature, this study is expected to shed light on the moderating effect of students’ vocational prospects on their perceived self-efficacy and entrepreneurial intentions. Keywords: Entrepreneurial Self-Efficacy, Entrepreneurial Intentions, Work Hope. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2303-4564 https://omeka.ibu.edu.ba/files/original/2acce459dd997e552e02671e01d21dd1.pdf e6b2544544a6dac54f5556fcd29d2d4a PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo Evaluation of Roadmap of Turkey for Public Management in the Postmodern Era: Challenges and Prospects Hakan Altıntaş University of Gaziantep, Gaziantep, Turkey hakanaltintas@hotmail.com Seyhan Taş Kahramanmaraş Sütçü İmam University, Kahramanmaraş, Turkey seyhantas1@hotmail.com In reality, government is virtually the only sector in society today that has yet to embrace the total philosophy of reinventing and reengineering in this Information Age. Public sector world that previously contained a dearth of relevant theory. Moving beyond the orthodoxies of policy and management. In this study, the current situation of public management system in Turkey was analyzed, the positive and negative aspects were stated through, Political, Economic, Socio-cultural, Technological Factors. Method and SWOT Analysis, postmodern public management indicators of different countries were compared and finally a roadmap of Post-modern public management cases was suggested for a successful post-modern public management implementation. Keywords: Roadmap, Management and Organizations, Postmodern Era, Turkey 139 � https://omeka.ibu.edu.ba/files/original/1b4ce98e2a6e0660083bfc60871d7764.docx 3688d5542f9e497d4e87fc42643ad599 https://omeka.ibu.edu.ba/files/original/aca873892509c55d8bbf79e4745c5325.pdf cca6f84390ef88ec66ef26e933ae7aff PDF Text Text International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Evaluation of Roadmap of Turkey for Public Management in the Postmodern Era: Challenges and Prospects Hakan Altintas University of Gaziantep, Gaziantep, Turkey hakanaltintas@gantep.edu.tr Seyhan Tas Kahramanmaras Sutcu ImamUniversity, Kahramanmaras, Turkey seyhantas@ksu.edu.tr Abstract In reality, government is virtually the only sector in society today that has yet to embrace the total philosophy of reinventing and reengineering in this Information Age. Public sector world that previously contained a dearth of relevant theory. Moving beyond we have the orthodoxies of policy and management. In this study, the current situation of public management system in Turkey was analyzed; the positive and negative aspects were stated through, Political, Economic, Socio-cultural and Technological Factors. Method and SWOT Analysis, postmodern public management indicators of different countries were compared and finally a roadmap of Post-modern public management cases was suggested for a successful post-modern public management implementation. Keywords:New Public Management, Public Management, SWOT, Public Management System Introduction During the 1980s and 1990s, through to the now, public management system have been experiencing significant reform and portrayed as a global paradigm emerging in response to economic, institutional, political, and ideological changes with both a rhetoric and reality focused on change in regimes. A growing literature has discussed these reforms around concepts of “New Public Management” (Hood, 1995) and more recently a literature has been building around “New Public Financial Management” (Guthrie et al., 1999; Olson et al., 1998). Hood‟s (1995) depiction of NPM was presented as an aid to comparative research in public sector management yet it is ironic that with the exception of the landmark study by Olson, et al. (1998a), little work has been devoted to comparative studies of reforms such as performance measurement change”. “By arguing for a “new global paradigm” in public sector management, Osborne and Gaebler (1992) sowed the seeds for a growing body of literature which examined the phenomenon known as “New Public Management” (NPM). The literature on NPM is now quite wide and includes official exhortations to adopt various elements of NPM, academic considerations of the advantages and disadvantages of NPM and various texts dealing with specific elements of NPM techniques” (Mark and Yoshimi, 2003:2). Studies of change in organizations may take different approaches; our interest is the current situation of public management system in Turkey was analyzed, the positive and negative aspects were stated through, Political, Economical, Socio-cultural, Technological Factors. 1 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Turkey has been going through a dynamic transformation process in public life in the last decade due to heavy internal and external pressures. The elements of the internal pressures can be listed as the two big economic crises of 1994 and 2001, the earthquake in 1999 and the increasing demand by citizens for more democracy and freedom. In terms of external pressure, Turkey faces pressures stemming from being part of the international community. Fulfillment of the requirements of the IMF and the WB and the ongoing harmonization. Process for EU membership result in dynamic changes in Turkey. The Constitution of Turkey has been amended seventeenth times. In many fields related to public administration and human right issues, major changes have been realized. Within this transformation process, even for the experts, following and learning the changes has become difficult (UNDP, 1994). A relatively new concept in organizational management, SWOT is a tool that assists organizations assessesthem by evaluating their internal and external competencies, challenges, opportunities and threats, with a view to enhancing their performances. Economic and budgetary restraints are common elements in studies of both external and endogenous determinants of organizational change. In addition to budgetary restraints and other resource problems. The challenge for all societies is to create a system of governance that promotes, supports and sustains human development - especially for the poorest and most marginal. But the search for a clearly articulated concept of governance has just begun. New Public Management (NPM) can be seen as the exercise of economic, political and administrative authority to manage a country's affairs at all levels. It comprises the mechanisms, processes and institutions through which citizens and groups articulate their interests, exercise their legal rights, meet their obligations and mediate their differences. New Public Management (NPM) is, among other things, participatory, transparent and accountable. It is also effective and equitable. And it promotes the rule of law. New Public Management (NPM) ensures that political, social and economic priorities are based on broad consensus in society and that the voices of the poorest and the most vulnerable are heard in decision-making over the allocation of development resources. New Public Management (NPM) has three legs: economic, political and administrative. Economic governance includes decision-making processes that affect a country's economic activities and its relationships with other economies. It clearly has major implications for equity, poverty and quality of life. Political governance is the process of decision-making to formulate policy. Administrative governance is the system of policy implementation. Encompassing all three, New Public Management (NPM) defines the processes and structures that guide political and socio-economic relationships (UNDP, 1994). The institutions of governance in the three domains (state, civil society and the private sector) must be designed to contribute to sustainable human development by establishing the political, legal, economic and social circumstances for poverty reduction, job creation, environmental protection and the advancement of women. Much has been written about the characteristics of efficient government, successful businesses and effective civil society organizations, but the characteristics of New Public Management defined in societal terms remain elusive. Participation - All men and women should have a voice in decision-making, either directly or through legitimate intermediate institutions that represent their interests. Such broad 2 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo participation is built on freedom of association and speech, as well as capacities to participate constructively. Rule of law - Legal frameworks should be fair and enforced impartially, particularly the laws on human rights. Transparency - Transparency is built on the free flow of information. Processes, institutions and information are directly accessible to those concerned with them, and enough information is provided to understand and monitor them. Responsiveness - Institutions and processes try to serve all stakeholders. Consensus orientation - Good governance mediates differing interests to reach a broad consensus on what is in the best interests of the group and, where possible, on policies and procedures. Equity - All men and women have opportunities to improve or maintain their well-being. Effectiveness and efficiency - Processes and institutions produce results that meet needs while making the best use of resources. Accountability - Decision-makers in government, the private sector and civil society organizations are accountable to the public, as well as to institutional stakeholders. This accountability differs depending on the organization and whether the decision is internal or external to an organization. Strategic vision - Leaders and the public have a broad and long-term perspective on good governance and human development, along with a sense of what is needed for such development. There is also an understanding of the historical, cultural and social complexities in which that perspective is grounded. Conceptual Analysis: Public Management System in Turkey Turkey has a prominent place among today‟s developing countries due to the length of its experiences on the fields of economy, culture, law and public administration. Since the beginning of 19th century, during the Ottoman as well as the Republican period, Turkey has always strived to develop her public administration in line with the needs of society and internal and external developments. Within this period, six constitutions, two of which were in the Ottoman Empire period, have been enacted. In line with the Constitutions there are more than 10,000 laws in force. The Turkish administrative system is based upon certain fundamental political and legal principles stated in the Constitution of 1982. However, this Constitution was subject to many amendments in the last 20 years. In addition to the six amendments made in the last five years, the seventh one is underway. After these amendments it is going to be necessary to examine the administrative structure again. It is worth giving an example to understand the nature of the forthcoming amendments to the constitution. With these amendments, in  This section is prepared from Assessment of Public Administration in Turkey, United Nations Public Administration Network. 3 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo addition to securing democracy, equality between men and women will become a constitutional principle. The Constitution starts with announcing that the political system is a republican democracy and outlines fundamental characteristics of the Republic such as separation of powers, secularism, supremacy of law, and constitutional government. These political and legal principles also apply to the organization and the functioning of the Administration as well. Some of these principles may be enumerated as follows: • Legality of the Administration, • Rule of Law, • Concept of the Social State, • State Intervention in the Economic Field, • Secularism, • Integrity of Administration, • Judicial Review through Administrative Courts. All of the above-mentioned principles are the cornerstones and inseparable characteristics of the contemporary Turkish Administration. According to the structure of the Constitution and the principles of the Turkish Administrative System, the “Administration” is not a satellite of the Executive; it is within the Executive branch, but a separate entity. It operates, however, in close relation with the Executive and under the supervision of the legislative, executive and judicial branches. Public administration in Turkey is divided between the central and local administrations. Article 126 of the Constitution states that the formation of the central administration is organized so that the land mass of the country is divided into provinces and the provinces into further smaller divisions according to geographic and economic conditions, and the need for public services. In relation to this, Article 127 of the Constitution states that, for the purpose of meeting collective local needs, the populations of provinces, municipalities, and villages are to be administered by units of local government established by law as legal public entities and governed in accordance with the principle of self-government. Article 123 of the Constitution, however, states that in order to maintain integrity in public administration in terms of organizations and duties, national, provincial, urban, and rural administrations should function in unity and coherence. As a unitary state, Turkey has 81 provinces, and within those provinces there are 850 districts, and about 35,000 villages. However, even though there has been a greater support for self-government and the delegation of the powers from the institutions of the central government to the provincial level Over the past decade, the structure and tradition of a highly centralized public administration still persists today. Central Administration Central Administration is the core of the administrative structure, both from structural and functional aspects. The central administration includes The Office of the Prime Minister, the Council Of Ministers and Consultative Agencies. Provincial Organizations are the provincial units of the Ministries. Each Ministry is headquartering in Ankara, with units at the provinces serving as their field organizations. The Council Of Ministers is appointed by The President of the Republic, who is part of the executive, exercises various administrative powers with limited liability. The Council of Ministers acts with the confidence of Parliament and is at the head of the Central Administration. The Prime Minister, according to the 1982 Constitution (articles112, 109) is the head of both the Council Of Ministers and the Administration in general. The Prime Minister, as Chairman of the Council of Ministers, ensures co-operation among the Ministers and supervises the implementation of the government‟s general policy. Each 4 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Minister is responsible to the Prime Minister, for the conduct of affairs under his jurisdiction and for the acts and activities of his subordinates. The Prime Minister ensures that the ministers exercise their functions in accordance with the constitution and the law. If necessary, the Prime Minister may take corrective measures such as the dismissal of a minister through a proposal to the President of the Republic. Within the Central Administrations, the head of each agency –Ministers, Under-secretariats Governors, Subgovernors-enjoys hierarchical supervision, includes disciplinary authority over the decisions and actions of subordinates, towards of expediency and legality. Autonomous bodies Regulatory bodies Turkey has made tremendous progress on the way to integrating with the world economy since the establishment of the Republic in 1923. Looking at where we stand, we see that Turkey now has a more market oriented and competitive economy, resilient both to domestic and external shocks. High public deficits and concomitant chronic inflation, together with the relatively slow pace in taking regulatory measures under an open capital account made the economy vulnerable to external and internal shocks in the 1990s. Most significantly ongoing crises including 1994 foreign exchange crisis; 1997 Asian and 1998 Russian crises, the earthquake in 1999 and the 2001 financial crisis had a serious impact on the economy. By the end of the 1990s, it was obvious that the macroeconomic imbalances had to be dealt with permanent measures. Therefore in late 1999 the government embarked upon a comprehensive economic reform program to address the long-standing structural problems of the economy, to cut inflation to single digits and to achieve sustainable growth. As the economy was moving towards a private sector driven structure, regulatory policy has become more important. With a view to separating the ownership, policymaking and routine super visionary functions in the liberalized sectors such as infrastructure (telecommunications, electricity and natural gas), agriculture, and finance, the authorities established: Telecommunication Authority, Energy Market Regulatory Authority, Board to regulate tobacco and alcoholic beverages, Board to regulate sugar markets, • Banking Regulation and Supervision Agency (BRSA), Capital Markets Board of Turkey, Competition Authority, • Public Tender Authority, Radio Television Supreme Council. State Economic Enterprises In Turkey the intervention of the state in the economy increased from the 1930s to the 1980s. State Economic Enterprises, functionally decentralized organizations, had constituted 2/3 of the Turkish economy. However, within the liberalization policy pursued since the 1980s, the privatization process also started. Despite all these efforts, 40% of the Turkish economy still is composed of SEE. However, recently the petro-chemical and tobacco industries have come close to being fully privatized. Higher Education Board The Higher Education Board, which was established in 1981, is an autonomous body according to the Constitution. All the public and private universities are supervised by the academic and administrative decisions of the Board. The Board is governed by a Council and The president of the Board is appointed by the President of the Turkish Republic. 5 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Local administration Local Administration, which functions under the administrative tutelage of the central administration, is divided into three main administrative tiers. These are the special provincial administrations, municipalities, and village administrations. The functionaries of the special provincial administrations, established in all of the 81 provinces, are the provincial general assembly, whose members are elected to office, and the governor who is appointed directly by The central government - The duty of the special provincial administrations is to provide public services deemed necessary on the outlying lands not under the jurisdiction of municipalities. There are 3,215 municipalities in Turkey; currently 16 are “metropolitan municipalities” established but 14 metropolitan municipalities will be establishing in 2014 according to a law enacted in 1984. In addition to the Constitution, the status of municipalities is explicated by the Law on Municipalities dated 1930, and by various other codes, statutes, and, regulations enacted since then. According to the Law on Municipalities, the municipalities are vested with powers in two large domains - service provision and administrative tutelage. Administrative tutelage pertains to, among others, construction, environment, local transportation, and workplace permits. SWOT Analysis Framework As already noted above, SWOT is an acronym for Strength, Weaknesses, Opportunities and Threats. It is sometimes called situational analysis. According to Carysforth and Neeld (2004), SWOT is a technique for comparing or matching an organization‟s internal strengths and weaknesses with opportunities and threats found in the external environment. It is a useful strategic planning tool for evaluating the strengths, weakness, opportunities and threats involved in a project or in a business. SWOT analysis is based on the assumption that if managers carefully review internal strengths and weaknesses and external threats and opportunities, they can formulate and select a useful strategy for ensuring organizational success. Lewis and Trevitt (2000) provide a useful insight into what constitute the strength, weakness, opportunities and threats of an enterprise as follows: Strength These are resources and capabilities of an organization that can be used as a basis for developing a competitive advantage. It is an important organizational resource which enhances an organization‟s competitive position. Some of the internal strengths of an enterprise are:  Distinctive competence in key areas.  Manufacturing efficiency like exclusive access to high grade natural resources.  Skilled workforce.  Adequate financial resources.  Superior image and reputation such as strong brand names.  Insulation from strong competitive pressures.  Product or service differentiation.  Proprietary technology such as patents and resultant cost advantages from proprietary know-how. 6 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Weakness A “weakness” is a condition or a characteristic which puts the organization at disadvantage. The absence of certain strengths may be viewed as weakness. Weakness makes the organization vulnerable to competitive pressures. Weaknesses require a close scrutiny because some of them can prove to be fatal. Some of the weaknesses inherent in public service organizations include:  No clear strategic direction.  Outdated facilities.  Lack of management vision; depth and skills.  Inability to raise capital.  Weak distribution network.  Obsolete technology.  Low employee morale.  Poor track record in implementing strategy.  Poor market image.  Higher overall unit costs relative to competition reflected in: o a weak brand name o poor reputation among customers o high cost structure o lack of access to the best natural resources o Lack of access to key distribution channels, etc. Opportunities An “opportunity” is considered as a favorable circumstance which can be utilized for beneficial purposes. It is offered by outside environment and the management can decide as to how to make the best use of it. Such an opportunity may be the result of a favorable change in the external environment. It may also be created by a productive approach by the management in modeling the environment to its own benefit. Some of the opportunities may include the following:  Strong economy.  Possible new markets and an unfulfilled customer need.  Emerging new technologies.  Complacency among competing organizations.  Vertical or horizontal integration.  Expansion of product or service line to meet broader range of customer needs.  Removal of international trade barriers.  Loosening of regulations, etc. It must however be mentioned that an organization needs not necessarily pursue more lucrative opportunities. Rather it may have a better chance at developing a competitive advantage by identifying a fit between its strength and upcoming opportunities. Threats Change in the external environment also may present threats to an organization. Management should anticipate such possible threats and prepare its strategies in such a manner that any such threat is neutralized. Some examples of threats include:  Shifts in customer tastes away from the organization‟s products or service. 7 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo           Emergence of substitute products. New regulations. Increased trade barriers. Entry of lower cost foreign competitors. Cheaper technology adopted by rivals. Raising sales of substitute products. Shortages of resources Recession in economy. Adverse shifts in trade policies of foreign governments. Adverse demographic changes. SWOT analysis can help an organization to formulate strategies that will take advantage of all these factors. SWOT Analysis in the Turkish Public Management System SWOT analysis emerged in the 1960s from research at Stanford Research Institute into the failure of current corporate planning methods (Lomax and Roman, 2005). It provides a framework for analyzing the market position of an organization and can be applied in a range of planning and strategic contexts including strategy development, market planning, and the evaluation of strategic options for a whole business or an individual department. In the Turkish public management system SWOT analysis can be an effective way of identifying the strengths and weaknesses of public enterprises, and of examining the opportunities and threats they face. Carrying out a self-awareness exercise using the SWOT framework would help equality among social groups, humanization of the workplace, empowerment, and expanded political participation so a public organizations to focus its activities into areas where it is strong and where the greatest opportunity lie. The use of SWOT analysis becomes necessary for an organization while developing a strategic plan or planning a solution to a problem, after it has analyzed the internal and external environment, such culture, economy, health, sources of funding, demographics, staffing, etc. A SWOT analysis, usually performed early in the project development process, helps organizations to evaluate the environmental factors and internal situation facing the project. Because it concentrates on issues that potentially have the most impact, the SWOT analysis is useful when a very limited amount of time is available to address a complex strategic situation. The internal and external situation analysis can produce a large amount of information, much of which may not be highly relevant. The SWOT analysis can serve as an interpretative filter to reduce the information to a manageable quantity of key issues. The SWOT analysis classifies the internal aspects of the organization as strengths or weaknesses and the external situational factors as opportunities or threats. Strength can serve as a foundation for building a competitive advantage, and weaknesses may hinder it. By understanding these four aspects of its situation, an organization can better leverage its strengths, correct its weaknesses, capitalize on golden opportunities, and deter potentially devastating threats. When the analysis has been completed, a SWOT profile can be generated and used as the basis of goal setting, strategy formulation and implementation. Strength 8 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo We look at the concept of transparency, Public authorities in Turkey started to appoint public spokesman for the illumination of public. In addition some steps have been taken in the last years. These are: • The Law on the Organization of the Prime Ministry that requires the ministries to consult with relevant institutions and organizations during the preparation of new legislation before the draft legislation is submitted to the Prime Ministry. • The Civil Code was amended through a participatory drafting process, consisting of consultative methods such as meetings, workshops, and correspondence among relevant parties, including women‟s NGOs. The amended Civil Code guarantees equality between men and women. • Legislation guaranteeing the right of information (Right of Information Act), which is in the possession of the administration, will enter into force on 10 April 2004. With the new act, information about all administrative acts and actions with the exception of national security issues will be disseminated to citizens upon request. • The plenary sessions of the Turkish Grand National Assembly is now broadcast live by the Turkish Radio and Television. We look at the concept of accountability some of the mechanisms for enacting accountability in Turkey are as follows: • Political accountability is exercised through democratic institutions and practices. The most evident practice is Turkey‟s general elections. Votes are given to any number of approximately 11 political parties with different political ideologies participating in elections that constitute the final link in the accountability process. • In their attempts to influence political decisions as well as by channeling reactions, criticisms, evaluations, and affirmations of the voters, NGOs, and the media also constitute a form of accountability. There are 1500 NGOs with 3 million members and the strengthened role of NGOs also contributes to political accountability in Turkey. • In terms of administrative and financial accountability, the State Supervisory Council attached to the Office of the President was established with the purpose of performing and furthering the regular and efficient functioning of the administration and its observance of the law. • Several public institutions and organizations are pursuing a “total quality” approach in for the improvement of quality of services. Currently, some hospitals managed by the Ministry of Health, the Social Security Institution, and universities have received “ISO 9001 and “ISO 9002” Quality Certificates. • Legal accountability is embodied in a constitutionally and legislatively defined system of judicial review. At the apex of this system are the higher courts such as the Constitutional Court, the High Court of Appeals, and the Council of State. Every citizen has the right to appeal to administrative courts against the actions of the public administration that damage his/her interests with the argument that such actions are against the law. In addition to these tools, draft laws on public administration and local governments provide the framework and the instruments for the achievement accountability as a principle of good governance. We look at the concept of participation, it is observed that political participation in Turkey usually takes the form of participation in elections and election campaigns; and, individual or collective petitioning to political organizations in order to convey demands, complaints, or requests. The Ninth Five-Year Development Plan (2007-2013 ) foresees a change in the outlook of the public administration. They call for the restructuring of the central government and a 9 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo decentralized implementation of “a participatory and people-based administrative system. Civic public administration is seen as being more effective in local administrations with the example of Local Agenda 21. However, progress in general has thus far been limited. Public participation in environmental issues takes place under the leadership of political parties, professional organizations, associations, foundations, and voluntary organizations. The Regulation on Environmental Impact Assessment (EIA), prepared by the Ministry of Environment is the most notable effort in this respect. The EIA is compulsory for all largescale economic projects. In order to prepare the EIA, the administration is required to follow a participatory process, which includes method such as “submitting written views” and “holding public meetings”. We look at the concept of responsiveness in Turkey, in line with country needs, and adoption of effective methods for the provision of quality goods and services is necessary. The bureaucracy in general has a tendency of concealing regulations and procedures from citizens, instead of trying cooperate with them and understand the nature of their needs. In order to overcome this bureaucratic attitude two major steps have been taken. • The Right to Information Act (mentioned above under the heading transparency) will contribute to the responsiveness of the administration. With the Act the administration will be obliged to respond to the citizens „demands for getting information. • With the Administrative Procedural Act is still in the phase of debate before the Cabinet; taking into consideration the views and demands of related parties before taking any administrative act or decision will become compulsory. Weakness We look at the concept of transparency, there is not an accurate system to provide accountability in Turkey since the supervision is based on bureaucratic and administrative supervision within central administrative structure. Central government uses two tools: supervision by the superintendents and administrative tutelage over local administration. Administrative tutelage is used by the central government to control and supervise the local governments. Within this context, decisions of the local governor related to budget are subject to the approval of the representative of the central government. We look at the concept of accountability, Public administrations in Turkey traditionally had the tendency to keep information regarding the whole public administration issues as state secret. The issues not related to national security such as public debt are also considered to be secret. There was no obligation by the laws or regulations for the dissemination of information. Therefore, the public authorities did not feel any obligation to disseminate information and illuminate the citizens even on the issues that would affect people deeply, such as in the case of emergence of a disease. This attitude prevailed from top administrator to the desk clerk. We look at the concept of participation, a “mandatory legal procedure”, which facilitates the participation in the decision-making processes of those who” may be affected by administrative decisions, and the sharing of information and documents, continues to be a problem in Turkey. An explicit procedure requiring consultations with all the relevant and affected parties or for incorporating their comments and views into the regulations during the preparation of laws, statutes and by-laws does not yet exist in Turkey. The Economic and Social Council, originally established to enable affected parties to take part in the economic decision-making process of the government, is not functioning; thus, preventing the initiation of the aforementioned consultation process. 10 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo We look at the concept of woman participation, In addition to the challenges in term of participation in general, there is a problem concerning women‟s participation in Turkey. Although women‟s suffrage rights were established in 1930 and 1934, female participation in elections as candidates is low. We look at the concept of responsiveness in Turkey, existing structures make it difficult for public institutions to adapt to changing conditions. Public services cannot sufficiently meet the requirements and expectations of the people; inefficiency and extravagancy in the public institutions lead to distrust towards these institutions. Complexity and excessive redtape in administrative procedures cripple the effective functioning of public institutions and make it difficult for the private sector and the people to benefit from public services. The role of public sector in economy The Turkish economy has developed under the leadership of the public sector since 1930s. This tradition still prevails although the size of public sector in the economy has already decreased (from approx. 80% to 40%). The problems and developments regarding the public sector will be mentioned again under the heading of privatization. We look at the concept of Auditing, despite the fact that professional standards conform to international auditing standards and auditing organs are adequately diversified and sufficient in number, auditing services are not as effective as desired. The main reason for this ineffectiveness is that the system of auditing is largely based on compliance audits. In other words, statutory verification is the prevalent. The current auditing practice puts the emphasis on the formal elements of auditing, and therefore, is ritualistic. Since the results of auditing functions are not disclosed to the public, it does not allow for true transparency of information. We look at the concept of Centralist tradition and highly bureaucratic culture, the centralist nature of public administration is not only a tradition which has been inherited from the Ottoman period, it has also been developed and enhanced by Republican administrations during the consolidation of the nation state. This centralist structure is also furthered by the democratic representative system within the multi-party system since 1946. Members of Parliament are elected on a provincial base according to population of the province. Members of Parliament set up their ties through their parties‟ local leaders in their constituency. Therefore, they play an intermediary role between local demands and central decisions, resources that can be aligned to meet local needs. Consequently the deputies prefer to solve local problems through the resources of central government instead of adopting local solutions. We look at the concept of E-government process in Turkey; • Lack of sound infrastructure for e-government: In the World Economic Forum‟s recent study “Global Information Technology Report (2012), different countries were ranked according to their readiness to information society. Among 142 countries, Sweden (5.94), Singapore (5.86), Finland (5.81) takes the top three, Bosnia and Herzegovina 84th (3.65) the US (ranked as 8), the Haiti (2.27) and Turkey is ranked as 52th (Score:4.1), demonstrating the limited usage and access to internet. • Lack of well-defined vision and mission statement: Instead of national priorities, the needs and priorities of each organization affected the development of e-government implementation and this did not result in great success. Therefore, all information society activities need to be coordinated in such a way as to ensure increased economic value added and social welfare, as well as be carried out in a participatory manner. 11 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo • Lack of cooperation among governmental agencies: Although every ministry has its own web page, the linkage between them and a standard system is missing. The system, therefore, is not interactive. • Lack of information in the Internet environment: Not all the information for which the public access should exist can be found on the web pages of the public administration authorities. On the positive side, all ministries have also an English version of their web pages, but not all the documents are available in English. • Lack of cooperation between governmental agencies and private sector agencies: In the private sector, there exists the capacity, technology and qualified personnel regarding IT. However this knowledge has not been used efficiently towards the need of e-government implementation in public administration. • Lack of willingness in the usage of e-government tools within bureaucracy: Bureaucracy in general tends to resist change. Due to the perception that wide usage of the internet would decrease its dominance, the bureaucracy sees e-government implementation as a threat. • The lack of formal education regarding the usage of computers and the internet: School curriculums have not been designed according to the needs of this technology century. Therefore, there is insufficient education in the schools regarding the usage of computer and internet. • The lack of legal framework in the field of e-government: The needs which stem from the developments in telecommunication technologies are not fully met by regulations, such as legislation on the preservation of privacy and personal information, provisions regarding information technology crimes in Penal Code, and legislation on intellectual property rights. Opportunities 1) Turkey must be dealt wealth an extraordinary explosion of new knowledge and technological innovations, especially in the areas of information sciences, genetics, materials, instrumentation, automation, and space. 2) Changing institutional patterns resulting from the emergence of postindustrial economies and structures of governance based on information, knowledge, and services. In the future, Turkey even more than today, knowledge and information will prevail. And if knowledge is power, then those Turkey have knowledge will indeed have power in the political system. 3) Turkey must focus on, the increasing integration and globalization of business, politics, culture, and environmental concerns. The globalization of society is obvious today, though in twenty five years or so, we may experience trans-globalization or beyond, as the frontiers of the oceans and space are extended even further. 4) Turkey should know demographic and socio-cultural shifts toward more and more diversity and potential conflicts. We have already introduced this issue by referring to the concern for maintaining diversity within the wholeness we desire from the idea of community. We point suggesting that “the „common good‟ is first of all preservation of a system in which all kinds of people can - within the law - pursue their various visions of the common good, and at the same time accomplish the kinds of mutual accommodation that make a social system livable and workable. The play of conflicting interests in a framework of shared purposes is the drama of a free society.” 5) An erosion of confidence in traditionally structured institutions to cope with the consequences of these challenges. Already this phenomenon is reaching crisis proportions around the world. In the Turkey, where 2001 some twenty-nine per cent of the people trusted the government to do the right thing, today that number is sixty-two per cent. In the 12 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Turkey, where 1990 some fifty-eight per cent of the people trusted the parliament to do the right thing, today that number is same. In the Turkey, where 2008 decreasing the people trusted the army, now seventy-six. In the Turkey, where 1990 some thirty-six per cent of the people trusted the European Union to do the right thing; today that number is thirtynine. What‟s more there is a similar erosion of confidence in other social institutions business, labor, the media, and even religion. Threats We look at the concept of transparency; debates in the Parliament in Turkey were also affected by this attitude. Opposition parties could obtain information not through official channels but through unofficial ones. Thus, leakage of information had become a source of media. Dissemination of information even about very simple matters through unofficial channels to the public through media, conceived as a big crime. When the public authorities were subject to criticism about the lack of information disseminated they tended to use an excuse that related laws had not stipulated the dissemination of information as compulsory. This is a real threat about it however; recently there has been a change in this attitude. We look at the concept of accountability, this system does not provide real accountability; therefore, Turkey has been witnessing a huge amount of corruption, bribery, favoritism and nepotism. Public opinion researches conducted in the last year‟s show that lack of accountability is one of the reasons for decreasing confidence towards public authorities, as well as towards politicians. Within the existing system, there are some tools for providing accountability. However, accountability has been perceived as only a legal issue rather than a principle of good governance. Therefore, the tools have been directed to provide accountability in legal context. We look at the concept of participation; in general, the public tends to exercise their participation and scrutiny functions through the NGOs, local governments, and the media. Thus, the mode of political participation is influenced by the political elite. However, elite-driven political participation is not as prevalent, though there are various examples of the impact of civic initiatives. The “One Minute of Darkness for Enlightenment “campaign was effective in pressuring the TBMM to commence an investigation into a matter which was brought to public attention by a traffic accident that surfaced the obscure relationship between state forces and the mafia. We look at the concept of woman participation, it is also observed that particularly in rural regions women‟s votes are often mobilized by male figures such as husbands, fathers, or brothers. We look at the concept of Centralist tradition and highly bureaucratic culture, one of the results of this centralist tendency is the unfairness in revenue sharing between central and local administrations. The bureaucratic structure also supports this “taking and giving “with politicians to preserve its powerful position. This is as a major obstacle towards decentralization. This centralist nature of the government eventually results in the weakness of local administrations. Since local needs cannot be satisfied by the local authorities all attention turns to the central government. Conclusions There is no room for dogmatism, either for or against the new public management. We have seen how different situations can call forth responses that are diametrically opposed to one another. Reformers in the new public management mould make much of the „three Es‟ (economy, efficiency and effectiveness). Two more are needed: experimentation and eclecticism. The search for solutions to the problems of government in Turkey and 13 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo developing countries requires open-mindedness and addictiveness above all else. Turkey‟s performance reporting has changed because NPM changes have been observed in the world. However, there are sufficient differences in the observations to conclude that NPM alone cannot fully explain the path taken in the performance developments of Turkish public management system. There is apparent worth in adding post-modern public administration theory, the role of epistemic communities and governance to our toolbox but additional work is required before we can be confident of the strength of these tools in explaining complex matters such as the role of performance reporting in Turkish public management system with social and economic change. In applying additional explanatory factors it is important to recognize that NPM paths are varied across the many countries experiencing change in their public management system. References Assessment of Public Administration in Turkey,United Nations Public Administration Network, http://www.unpan.org/ Christensen, Mark and Hiroshi Yoshimi, “Public Sector Performance Reporting: New Public Management and Contingency Theory Insights “Government Auditing Review, Volume 10 (March, 2003). http://www.jbaudit.go.jp/english/exchange/pdf/e10d06.pdf Competition Authority, http://www.rekabet.gov.tr Evaluation Report on Draft Law on Local Governments, Istanbul Policy Center and Evaluation Report on Public Administration Basic Draft Law, Istanbul Policy Center Lomax, W. and Raman, A. (2005),Analysis and Evaluation. London. Heinemann. 61th Government Program, http://www.basbakanlik.gov.tr Nineth Five Year Development Plan, http://www.basbakanlik.gov.tr Republic of Turkey, Prime Ministry, http://www.basbakanlik.gov.trState Planning Organization, http://www.dpt.gov.tr The Global Information Technology Report (2012), http://www.weforum.org/reports/globa l-information-technology-report-2012 TESEV, www.tesev.org.tr Turkish National Programme for the Adoption of the Acquis, 2013, http://www.abgs.gov.trTurkish Treasury, http://www.treasury.gov.tr Turkey Atlas of Values 14 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo http://www.bahcesehir.edu.tr/files/files/ATLAS%20SUNUM%202_10_2012%20(2).pdf UNDP, (1994), http://www.undp.org/content/undp/en/home.html Urgent Action Plan, http://www.basbakanlik.gov.tr 15 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1522 Title A name given to the resource Evaluation of Roadmap of Turkey for Public Management in the Postmodern Era: Challenges and Prospects Author Author ALTINTAS, Hakan TAS, Seyhan Abstract A summary of the resource. In reality, government is virtually the only sector in society today that has yet to embrace the total philosophy of reinventing and reengineering in this Information Age. Public sector world that previously contained a dearth of relevant theory. Moving beyond the orthodoxies of policy and management. In this study, the current situation of public management system in Turkey was analyzed, the positive and negative aspects were stated through, Political, Economic, Socio-cultural, Technological Factors. Method and SWOT Analysis, postmodern public management indicators of different countries were compared and finally a roadmap of Post-modern public management cases was suggested for a successful post-modern public management implementation. Keywords: Roadmap, Management and Organizations, Postmodern Era, Turkey Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 978-9958-834-23-3 https://omeka.ibu.edu.ba/files/original/8d87bcb332d34e2aa465189f37ef0861.pdf 6dfc2b9d13178c24d0fbe638a6a02c8f PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo Economic Crisis and Social Issues - The use of Islam by French politicians Farkhad Alimukhamedov Turgut Özal University, Ankara, Turkey falimukhamedov@turgutozal.edu.tr In our paper we aim to analyze how French parties use the rhetoric of social life problematiques during economic crisis and try to avoid direct responsability. Among the social problematiques we will focus on especially the issues relating to Islam as Muslims are among the most used rhetorics while economic crisis in Europe. According to the archives of Le Monde since the year 2000 the use of the term Islam is much higher than the use of the word Christianity and Judaism. The same applies to the use of the word Muslim which is higher than Christian or Jew. We find out the similar tendencies in Le Parisien, the journal which is mostly sold in France. Islam is mostly cited term among the religions which is unproportional to its presence in France. This shows that Islam overpasses purely religious aspects and includes more than other religions when it comes to its media visibility. French politicians use the different social problems in a critical situations. Islam is one of these easy scapegoats that is oftenly utilized by politicians in their difficulties. This shows that from one side Islam and Muslims are very weak in France which are unable to defend, but from the other part, it becomes a necessary tool for all parties to participate willingly or unwillingly on the debate related to Islam. Our work will be based on two steps: firstly, we focus on the main critical events related to Islam in France and analyze the positions of the main parties. Afterwards, we observe their approaches to Islam and compare their methods and outcomes. We believe that, economic difficulties could be resolved, but social impacts of the crisis may remain for the decades. Keywords: Economic Crisis, Islam, Christianity, Judaism, Europe. 112 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1518 Title A name given to the resource Economic Crisis and Social Issues - The use of Islam by French politicians Author Author ALIMUKHAMEDOV, Farkhad Abstract A summary of the resource. In our paper we aim to analyze how French parties use the rhetoric of social life problematiques during economic crisis and try to avoid direct responsability. Among the social problematiques we will focus on especially the issues relating to Islam as Muslims are among the most used rhetorics while economic crisis in Europe. According to the archives of Le Monde since the year 2000 the use of the term Islam is much higher than the use of the word Christianity and Judaism. The same applies to the use of the word Muslim which is higher than Christian or Jew. We find out the similar tendencies in Le Parisien, the journal which is mostly sold in France. Islam is mostly cited term among the religions which is unproportional to its presence in France. This shows that Islam overpasses purely religious aspects and includes more than other religions when it comes to its media visibility. French politicians use the different social problems in a critical situations. Islam is one of these easy scapegoats that is oftenly utilized by politicians in their difficulties. This shows that from one side Islam and Muslims are very weak in France which are unable to defend, but from the other part, it becomes a necessary tool for all parties to participate willingly or unwillingly on the debate related to Islam. Our work will be based on two steps: firstly, we focus on the main critical events related to Islam in France and analyze the positions of the main parties. Afterwards, we observe their approaches to Islam and compare their methods and outcomes. We believe that, economic difficulties could be resolved, but social impacts of the crisis may remain for the decades. Keywords: Economic Crisis, Islam, Christianity, Judaism, Europe. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2303-4564 https://omeka.ibu.edu.ba/files/original/a91c99eb16de67a4863ec4bbe8ef1fe5.pdf 2d9f1cc6083e24750a62524e9456517d PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo Anti-Dumping Measures in European Trade Sato Alexej University of Economics, Prague, Czech Republic sato@vse.cz Evolution of the globalization process is closely connected with a separation of free-standing and independent macro-regions of North America, Asia-Pacific and Europe. Despite their narrow and intense mutual economic and political contacts in the process of globalization, each of them try to defend the interests of its own members. The European Commission has expressed its intentions and interests in New business strategy, introduced in November 2010. This paper shows an example of protection of EU interests in the form of price dumping and anti-dumping measures, whereby the two macro-regions (European and Asia-Pacific) trying to find solutions to some of their internal economic problems. Keywords: Anti-Dumping Measures, Globalization, New Business Strategy 30 � https://omeka.ibu.edu.ba/files/original/9318b225c6501f411e9e96130b562fb7.docx fdac596a927800229e2b8f13aec841b8 https://omeka.ibu.edu.ba/files/original/f932bad7af73ad63e9e611598a10127a.pdf fe59d1a90eae4d2e12d7e61709e40b4e PDF Text Text International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Anti-dumping measuresin EuropeanTrade AlexejSato University of Economics,Prague, Czech Republic sato@vse.cz Abstract Evolution of the globalization processisclosely connected with a separation of freestanding and independent macro-regions ofNorth America, Asia-Pacific andEurope. Despite theirnarrowandintensemutualeconomicandpoliticalcontacts inthe process ofglobalization, eachof them try to defend the interests ofitsownmembers. The EuropeanCommission hasexpresseditsintentions and interests inNewbusinessstrategy, introducedinNovember 2010. Thispaper showsan exampleof protectionof EU interestsinthe formof pricedumpingandanti-dumping measures, whereby the twomacro-regions (EuropeanandAsia-Pacific) trying tofindsolutions tosome oftheirinternaleconomicproblems. Keywords:Anti-dumping measures, Globalization, Newbusinessstrategy Introduction The process of globalization is perceived by the public as a process of interconnecting national, regional and local economies and their markets, accompanied by an increasing dynamics of the exchange of goods, services, capital and labor, while also transferring technologies and know-how. However, such processes, which we have been witnessing for several decades, is neither an unexpected nor incidental phenomenon and it is not by far so balanced, smooth and non-conflicting as has been presented to us. Quite the contrary: it becomes apparent that the interconnection of regional economies is accompanied by the separation of their structures and that while these processes concur, they demonstrate a number of mutual contradictions. The development of global economies as a whole is thus accompanied by the separation of three relatively independent and in many aspects closed economic blocks – macroregions. In this respect, North American, Asian-Pacific and European macroregions are usually mentioned, each of them being characterized by a number of its own, distinctive integration tendencies and the related measures. The economic and financial crisis we have been facing over the past several months has revived considerations about the necessity, extent and intensity of regulation of integration processes, both at the national and regional level. New Trade Strategy EU 2020 In the EU countries, the extent and form of regulation in foreign trade is defined by the principles of the common commercial policy. Article 207 of the Treaty on the Functioning of the European Union (the so-called Treaty of Lisbon) states that it shall be based on uniform tariff rates, common non-tariff measures, bilateral and multilateral agreements relating to goods, services and intellectual property rights, foreign direct investment and measures to protect trade, including dumping and subsidies. In order to be sufficiently efficient, the common commercial policy must continuously adapt itself to the surrounding economic environment and flexibly react to changes in such environment. The last reaction 1 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo to global economic changes is the strategic communication from the European Commission of 9 November 2010 entitled „Trade, Growth and World Affairs“, which indicates the way to increasing the openness of European economy and to improving trade relationships with non-EU partners. In its New Trade Strategy EU 2020, the European Commission mentions six current priorities for its forthcoming negotiations: - To finalize, under the auspices of WTO, negotiations with the main trade partners (such as India, Mercosur and others) and to achieve an increase in the EU GDP growth by another, more than 1%. - To improve trade relationships with strategic partners (U.S., China, Russia and Japan), in particular by removing non-tariff trade barriers. - To improve European companies' access to world markets by creating a mechanism of balance renewal between open markets in the EU and more closed markets of trade partners outside the Union (in the form of public procurement, for instance). - To initiate negotiations with key trade partners concerning profound changes of investment conditions. - To ensure a wider applicability of EU law-based rules in trade. - To improve access to trading activities for all those who might be interested, to change rules for providing trade preferences to developing countries. In mentioning New Trade Strategy EU 2020, the European Commission expects that by 2015, 90% of world growth will be generated outside Europe, with approximately a third from China. Nevertheless, it intends to continuously seek to maintain world trade openness. In this respect, the European Commission works on the basic presumption that open economies tend to grow faster than closed economies and therefore, open markets are necessary to support its own, European competitiveness. These considerations also match with the Commission's effort to further reduce tariff rates, to conclude on-going negotiations concerning multilateral world trade liberalization, to open markets for services and investment and the possibility to participate in public procurement. This time, liberalization efforts should be more selective rather than general, in particular with respect to the main initiators of world growth, such as the BRIC countries, U.S. and Japan, which is also demonstrated by the current on-going process of negotiations. Of course, the previously mentioned vision is not completely original; the European Commission took numerous similar steps already in the past, although not always with clear positive results. One of the serious problems which occurred in the past was the relatively limited accessibility of liberalization steps for certain business entities. Especially small and medium-sized enterprises, which face a number of restrictions and barriers of administrative, legislative or fiscal nature when entering foreign markets, could not make use of the negotiated benefits. According to the 2010 Eurobarometer survey, only 8% of the total number of small and medium-sized European companies have been doing business abroad. As results from the strategic communication, the European Commission intends to be helpful, but not naive, towards its potential trade partners in trade policy matters in the future. The efforts to enhance the protection of intellectual property rights, to achieve the global harmonisation of technical and technological standards and to fight unfair practices 2 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo as well as the infringement of global trade rules are evident. In particular, the efforts to create and strengthen the role of tools for the enforcement of interests and rights, for instance through the World Trade Organisation (WTO), are significant. The content of the previously mentioned visions in discussions about the future trade and political strategy is sometimes termed „Assertive Europe“. Anti-dumping measures Anti-dumping measures are relatively frequently used and very controversially viewed protective tools of the EU trade policy. They allow to restrict the import of goods from third countries in such cases when the seller (producer) offers its product in the EU market at a price that is lower than the normal price for that product in such seller's (producer's) domestic market, thus causing material injury to domestic (European) producers. Such behavior (price dumping) is defined in Article VI of GATT, according to which dumping occurs if the price of a product is lower than the price of the like product sold by the exporter in the exporter's domestic market. If the producer does not sell the product in the domestic market, the price of goods is considered to be lower in the following cases: - If it is lower than the price of other domestic producers of the like (comparable) product destined for export to any other third country in the ordinary course of trade; - If the price is below the cost of production of the goods in the exporter's domestic economy, increased by a reasonable profit on sales. The investigation of complaints from the EU industry concerned due to alleged price dumping is conducted by the European Commission, which also proposes measures if dumping is ascertained. In the Czech Republic, protective measures associated with the implementation of the common commercial policy are governed by the Ministry of Industry and Trade. The Ministry collects and analyses information and opinions from the interested parties, professional associations and unions, its own specialist departments and other state administration bodies and institutions and formulates official opinions of the Czech Republic through its Anti-Dumping and Anti-Subsidy Advisory Committee and for the purpose of optimal defense of Czech entrepreneurs' interests. The industries most frequently affected by international dumping include, in particular, chemical and metallurgical production or clothing and textile industries. In the past, all these industries gained a very strong position in the Union market, which they were, however, not able to maintain being confronted with the competition from developing and newly industrialized countries (mainly from Asia). In the past decade, the European Commission initiated more than 330 investigations related to dumping allegations, in particular in the manufacturing of chemical, steel or metallurgical products, of which around 20% concerned exports from China. Almost 70% of investigations did prove the existence of dumping and were concluded by announcing an anti-dumping measure. However, in the same period, China applied only six measures of similar nature. The stated reasons for alleged price dumping include, in particular, the low wages of Chinese employees with relatively low production costs and the resulting high competitiveness. In 2010, the EU-China trade reached 320 billion EUR with an annual increase of almost one fifth. The growing volume of Chinese exports resulted in a rapid increase in the EU trade and payment 3 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Balance deficit towards China and a number of Union industries became dependent on imports from China.The individual EU member states have different opinions about the trade policy in terms of dumping stations. Discrepancies exist mainly between the countries with a more liberal view of the functioning of international trade (UK, Scandinavia) and the countries who rather prefer protectionist principles of trading (Germany, Italy, Portugal, Spain), mostly those most deeply affected by dumping. In order to be able to objectively recognize the need for anti-dumping measures, the following facts required by international conventions should be objectively identified and supported with evidence: - The existence of dumping – which means to demonstrate the fact that a dumped product is present in the market and is offered at a price that is lower than the price for that product in the exporter's domestic market. - The existence (or threat) of material injury to an EU industry (for instance, the loss of market share, a significant drop in sales, profit or productivity of the industry). - The causal link between the existing dumping and the injury caused. A complaint leading to an anti-dumping investigation may be lodgedby any natural or legal person, or any association, acting on behalf of the whole Community industry. The preparation of the complaint, which is quite a demanding task from the administrative, financial, technical and linguistic point of view, can be entrusted to national control and administrative bodies before the complaint is lodged with the European Commission; in the Czech Republic it is the Ministry of Industry and Trade. The Commission initiates the investigation only when it makes sure that the complaint is supported by Union producers whose production accounts for at least 25% of the total Union production of the product to be investigated. Proceedings are not initiated against countries whose alleged dumped imports represent a Union market share of below 1%, or against a group of countries whose collective share does not exceed 3%. In exceptional cases, the Commission may initiate proceedings also of its own decision and without any complaint being lodged. When assessing the content and legitimacy of the complaint, the Commission follows Council Regulation (EC) No. 384/96 of 22 December 1995 on protection against dumped imports from countries not members of the European Community, which imposes an obligation on the Commission to decide on the complaint within 15 months of the date of lodging. Investigation may be terminated by one of the following steps: - Without adopting definitive measures the investigation is terminated if the complaint does not comply, formally or materially, with the established requirements, or if the complaint is withdrawn by the complainant and the Community has no interest to continue the investigation. - By announcing a definitive anti-dumping duty, which however requires, besides discussion in the European Commission, also approval from the EU Council. This measure can also be used if it is demonstrated during the investigation that the effects of a previously imposed anti-dumping duty are intentionally circumvented or frustrated. - The investigation may be terminated by accepting a price undertaking if the exporter is willing to change the price of its goods by the dumping difference so that the European Community interests are not harmed. 4 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Both anti-dumping duties and price undertakings remain valid for a period of five years and their existence is published in the Official Journal. The Official Journal also publishes information about the expiration of the validity of individual protective measures, which allows to assess whether there is a significant risk of dumping to continue or recur and whether the Community might be exposed to injury. If no request for a further investigation of the case is presented after the lapse of the five-year period, the duty or the undertaking expires. Conclusion Within WTO and compared to other economic macroregions, the European Union is a very frequent user of anti-dumping measures against third countries, and the most frequent one in the long-term history. As regards dumping from Union producers, its share is significantly lower and has been decreasing in the long-term. In 2009, only 5% of the total number of complaints was lodged against Union producers.China is the leader among the countries with which the European Union has to solve dumping disputes most frequently: approx. 40% of all investigations are conducted against China, which is followed by other countries of Southeast Asia. Trade disputes between the EU, China and other countries of Southeast Asia have been rising proportionately to the deepening of the mutual trade and payment balance deficit. The protective measure recently adopted by the European Commission and aimed at roughly two hundred Chinese producers of screws and jointing material aroused considerable displeasure in business circles also because it includes a number of exceptions for Chinese branches of European companies raising concerns that double standards are often used with respect to the entities affected. Globalization is undoubtedly a necessary and inevitable process which brings the human society to a higher evolutionary stage. However, it is by far not as smooth and natural as is sometimes presented. Globalization is surely paralleled by a process which leads to the separation of relatively independent and distinctive economic and political structures – macroregions. Each of them uses, to a greater or lesser extent, their own organization, control and executive tools by means of which they defend, in particular, economic interests of their members on a global scale. References Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade (1994) Busch, K. (2010), World Economic Crisis and the Welfare State: Possible Solutions to Reduce the Economic and Social Imbalance in the World Economy, FriedrichEbert-Stiftung, Berlin. Available at: http://library.fes.de/pdf-files/id/ipa/07000.pdf ECIPE (European Centre for International Political Economy)Occasional Paper 2/2011: Chinese Trade Policy after ten years in the WTO: A post-crisis stocktake Communication from the Commission COM (2010) of 3 March 2010 A strategy for smart, sustainable and inclusive growth Commission Communication COM (2010) 612/4 of 9 November 2010Trade, Growthand World Affairs 5 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Council Regulation (EC) No 384/96 of 22 December 1995 on protection against dumped imports from countries not members of the European Community Kellermann, Ch., Ecke, M., Petzold, S., (2009): A new growth strategy for Europe beyond 2010, Friedrich-Ebert-Stiftung, Berlin. Available at: http://library.fes.de/pdffiles/id/ipa/06219.pdf 6 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1467 Title A name given to the resource Anti-Dumping Measures in European Trade Author Author ALEXEJ, Sato Abstract A summary of the resource. Evolution of the globalization process is closely connected with a separation of free-standing and independent macro-regions of North America, Asia-Pacific and Europe. Despite their narrow and intense mutual economic and political contacts in the process of globalization, each of them try to defend the interests of its own members. The European Commission has expressed its intentions and interests in New business strategy, introduced in November 2010. This paper shows an example of protection of EU interests in the form of price dumping and anti-dumping measures, whereby the two macro-regions (European and Asia-Pacific) trying to find solutions to some of their internal economic problems. Keywords: Anti-Dumping Measures, Globalization, New Business Strategy Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 978-9958-834-23-3 https://omeka.ibu.edu.ba/files/original/fa756564102332343460761ad248edc1.pdf 6cd10b18217a99ac23b0c9e8cf4c02a2 PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo The Effects of Deepening Debt Crisis in the Member Countries of European Union on Turkish Economy Erdal Alancıoğlu Harran University, Şanlıurfa, Turkey ealancioglu@harran.edu.tr H. Mustafa Paksoy Kilis December 7 University, Kilis, Turkey hmpaksoy@yahoo.com Sadettin Paksoy Kilis December 7 University, Kilis, Turkey spaksoy@kilis.edu.tr The world's second largest market after the United States is the European Union that has an important position in the context of the global economy. Since the last quarter of 2008, the global financial crisis spread to Europe from the U.S. Currently, the european Union crises which is perceived as an international problem has a negative effect on also our economy as well as on all over the world. Althought, Turkey is not a member of European Union the country is effected by each kind of crises by the Europen Union easily. The effect of European Union on Turkish economy is are examined in this study; foreign trade, credit and finance, dimensions of investment channels and perspective of Turkey in terms of being member of European Union will be evaluated. Keywords: European Union, the Debt Crisis, Economy of Turkey. 105 � https://omeka.ibu.edu.ba/files/original/16212f904fc2e48adab6acd7c6577681.pdf 16e14d9ecbb24475119443c1cd709d1d PDF Text Text International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo The Effects of DeepeningDebtCrisis in the Member Countries of European Union on TurkishEconomy ErdalAlancıoğlu Harran University, Şanlıurfa, Turkey ealancioglu@harran.edu.tr H. Mustafa Paksoy KilisDecember 7University, Kilis, Turkey hmpaksoy@yahoo.com SadettinPaksoy KilisDecember 7University, Kilis, Turkey spaksoy@kilis.edu.tr Abstract In the context of the global economy, the world's second largest market after the United States, the European Union has an important position. Since the last quarter of 2008, the global financial crisis spread to Europe from the U.S., and especially in the last period, the economy and the policy dilemmas and in this sense the observed Debt Crisis in the European Union, which has become an international problem in our country, along with the effects observed in the entire world. Although Turkey is not a member state of the European Union, the European Union, the historical, social and economic ties affected by any development which is due to causes in Europe. In this study, the effects of the European Union Debt Crisis, Turkey's economy foreign trade, credit and finance, and Turkey's European Union membership perspective to the size of investment channels will be evaluated. Keywords: European Union, The Debt Crisis, Economy of Turkey 1. Introduction Integration of nations is getting stronger through increasing international goods and services’ trade volume and capital-labor flows across borders especially from the late of 1980s until now. “Economic globalization” has been experienced thanks to technological progress which enables faster and wide expansion all around the world. Global financial crisis appears at the end of 2008 in USA affects very fast because of characteristics of globalization. When the global crisis continues, European Union which is the biggest international economic organization in the world, is the most affected part of world economy. Financial fluctuations in European countries caused a devastating problems on real economies and financial markets. Diminishing of aggregate demand and financial markets involve lower trade volume. In one sense, governments increase their public spending to lower the effects of global financial crisis in EU countries. On the other hand, tax income of governments declines due to economic recession and these circumstances cause series budget deficits and higher debts in EU economies. The global financial crisis that shown as a debt crisis in Europe, influenced the UE deeply. Member states such as Ireland, Spain, Italy, Portugal and Greece are the first countries impressed by the global crisis. These five EU member 193 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo countries had a crisis not only economic but also political way. Eventually, it involves changes of governments in charge and shows the scope of the debt crisis. With a globalization process in recent years shows that countries which have regional integration and high trade volume are fully integrated on financial markets. Although Turkey is not a member state of EU, consolidation of Turkey and EU exists in a quiet high level. In this paper, current situation of EU debt crisis, effects through Turkish economy; foreign trade, financial conditions, investment performances are evaluated with respect of full membership process of Turkey. 2. Current Situation at EU Debt Crisis European countries did not use its debts effectively. In other words, debts are used in health, education and real estate sectors instead of covering the fields that create more income. Low debt costs enable the loans more attractive. More credits are needed to meet the cost of previous debts. Willingness of financial foundations to give loans and higher returns of financial markets than real markets evolve great debts in European countries. Banks and other institutions did not hesitate to give credits to EU countries and it is not questioned. When credit institutions which affected by global financial crisis increased interest rates, EU countries debt costs rose so that financing of debts is very hard. To conclude Portugal, Ireland, Greece, Italy and Spain called PIGS countries were faced with debt crisis in 2011 (Tunç, 2012:2). Current conditions of EU countries between 2009 and 2012 are shown at Table 1. Table : 1 Current conditions of EU countries Greece GDP (Million Euro) Public Debt 2009 231081 2010 222151 2011 208532 2012 193749 299685 329515 355172 303918 Public Debt / GDP % Portugal GDP (Million Euro) Public Debt Public Debt / GDP % İreland GDP (Million Euro) Public Debt Public Debt / GDP % Spain GDP (Million Euro) Public Debt Public Debt / GDP % 129.7 148.3 170.3 156.9 168 529 172 859 171 065 165 409 141 055 83.7 162 473 94.0 185 241 108.3 204 485 123.6 161 275 156 487 158 993 163 595 104 544 64.8 144 164 92.1 169 226 106.4 192 461 117.6 1 048 060 1 048 883 1 063 355 1 049 525 565 082 53.9 644 692 61.5 736 468 69.3 883 873 84.2 Source: Eurostat, 2013. Using common monetary policy carried out by European Central Bank (ECP) and common currency unit in Europe cause tighter economic relations which facilitate to spread damaging effects fast towards other European countries. Moreover, high integration level of real and financial markets increase response velocity of countries among each other. 194 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Thus, debt crisis appeared in Greece in the second quarter of 2010, treated all of the Euro Zone countries even the existence of economic and monetary union. Euro Zone countries struggled with not only low economic growth but also huge debts of governments and bankruptcy risk of Greece, Spain and Ireland in 2010. Briefly, global financial crisis was turned into European Union debt crisis and then bankruptcy crisis of Euro Zone countries. At this point, European Union faced with the biggest challenge that EU ever seen (Kutlay, 2011:2). Greek debt crisis started in 2009, expand to Portugal and Ireland. With an aid request from Italy and Spain at the end of 2011 and 2012, debt crisis spread much. This deploys mainly affected three ways: foreign trade, interest rates and exchange rates (KöseKarabacak, 2011: 300). When the member states of union are examined, the crisis originated different reasons for any European countries. For instance, Greek crisis was originated from public sector but Ireland suffered from banking sector and real estate. Being higher current account deficit of Portugal caused great risk for banking system; Spain’s inadequate internal and external demand leads to low economic performance with 20% unemployment rate. The weaknesses of public finance of Italy and Belgium make these economies worse (Ministry of EU, 2011:8). 3. Effects of Debt Crisis into Turkish Economy Global crisis appeared firstly in mortgage loans, expanded in financial markets in 20072009 before real markets. USA economy was faced with a serious unemployment rate and recession process. Strong financial relations between USA and other developed countries (especially EU countries) make the crisis easy to spread. Uncertainty and trust problems of credit mechanism restricts the borrowing possibilities and increase costs of debts (Kibritcioglu, 2010:6–7). “ EU and Euro Zone is an important partner with Turkey. Many countries have same position like Turkey and if the crisis deepen global economy will be affected and also Turkey. It will affect Brazil and USA. In comparison with some other countries, Turkey’s portion of trade with Euro Zone is higher but our trade structure is various, that a good thing. Turkish economy either flexible and various and dependence to EU is not too much (Dervis, 2011:1). Financial crisis that surrounds the global markets, affects Turkish economy indirectly, not directly. This indirect impact will continue as the crisis goes on. Euro-USD parity is affected by the crisis and US Dollar became more valuable. This means for the side of Turkey that decrease in export and increase in import because of imbalanced exchange parity. Reflection to the economy will be inflationist impact. Credit volume of Turkey will decrease because Turkish banks will not be able to find appropriate credit from EU financial markets (Tunc, 2012: 2). An economy which has free capital movements and great impacts of capital flows to domestic economy such Turkey, policy volume of government brings different influences on price stability and external balance (Aslan&Korap, 2007: 43). Essentially Greece, Ireland, Spain, Italy, Belgium and Portugal and developing countries such as Turkey is influenced by debt crisis. 195 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo 3.1. Impact Channels of Crisis for Turkey Foreign Trade Impact European Union consists of the biggest part of foreign trade of Turkey. Direct and indirect effects of EU reflect to Turkish economy as well. Intensity of Turkish export on EU originated by country’s export performance is quiet relevant with demand conditions of EU countries. Recession of EU economies influenced Turkish exporters and producers negatively (Vural, 2012: 52). 56 % share of Turkish export in 2007 is covered by EU and EU recession influenced the trade balance of Turkey negatively (TEPAV, 2009: 10). According to floating exchange rate system, exchange rate is determined in free market and it did not work properly because Turkish financial structure is fit with this system. Especially hot money flows and increasing foreign exchange debt of Turkish firms after 2003 put pressure on exchange rates. In addition, higher interest rates prevent the rise in exchange rates. Low exchange rates change the export-import equilibrium, and decrease inflation rate whereas current account deficit grows (Yıldırım, 2010: 50). With contracting external demand, manufacturing shrank. World bigger economies, decrease the interest rate in order to accelerate and exposedemand, in other words, some economic programs are applied to increase the demand. (Karagöz, 2009: 4). Table:2. Share of EU Countries in total Turkish export 16000000 14000000 12000000 10000000 80000000 Total Export (Thousand $) Total Import (Thousand $) 60000000 40000000 20000000 0 2008 2009 2010 2011 2012* Source: Turkstat,2013 *Data for 2012 is for 10 months. Global financial crisis which started as a Mortgage crisis in the USA influenced EU countries substantially. Especially Greece, Spain, Italy and Ireland struggled with a huge 196 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo amount of debt and finally the whole EU countries found themselves in the middle of the crisis. Developments in EU made Turkey worried about because Turkey aimed to solve its current account deficit problem by export activity (Öztürkvd. 2012: 1). EU countries share ($) in Turkey’s total export is shown at Table 2. Turkey’s total export and export to EU started to fall in 2009 and 2010 and total export rose again in 2011 and 2012. Graph: 1.Turkey’s Export (2008–2011). 17.300% AB 1.500% ABD 46.800% Rusya İslam İşbirliği Teş 27.100% Çin Diğer 4.000% 3.200% Source:Turkstat, 2013. Trade relations between Turkey and EU affected negatively due to high budget deficits and financial problems in EU member countries which involve a recession in domestic aggregate demand and insufficient financial facilities. Especially, export amount of Turkey to EU is diminished. Foreign trade is fully related to EU debt crisis and Turkey. Still, EU is mainly trade partner of Turkey but the share of EU is decreasing in past few years and Turkey is trying to create new markets to meet this gap. At this point, a decline in EU import in generally causes a decrease the share of EU on Turkey’s export. Although Turkey did not lose its share in EU market, it is obvious that the crisis narrows Turkey’s export (Boyner, 2012:1). Turkey’s export towards economic groups and organizations between 2008 and 2011 is shown at Graph 1. The biggest share of export is in EU with percentage of 46 % and Muslim countries with 27 %. Notwithstanding economic relationships between EU and Turkey were influenced negatively, the union is still the most important trade partner of Turkey (Akses, 2012:4). A decline in aggregate demand in EU made Turkey to find alternative markets. Thus, Turkey improved its trade relationships with Middle East countries and Commonwealth of Independent States since 2008. Other reason to improve its trade relationship with third world countries is European international trade laws that apply a mutual customs union with inside and other countries. European Union is carrying out many negotiations about free trade agreements with a new perspective of foreign trade. For this reason, it is so 197 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo important that Turkey should execute new free trade agreements parallel to EU negotiations (Akses, 2012:4). Germany (13 billion $), Iraq (10.7 $) and UK (8 billion $) are the top countries in Turkey’s export in 2012 (Graph 2). The most of those countries show that Turkey’s export is still towards EU even though ongoing debt crisis. Additionally, 38.6 % of Turkey’s export is still consisting of EU countries. It shows that an export structure of Turkey which higher quality with low price, gave an advantage to Turkey. Besides, Turkey got a chance to make the crisis an opportunity by using its geopolitical location advantages and responding demands of other countries easily (Karagol, 2012:3). Graph 2. Export of Turkey (billion $), 2012 14 12 10 8 6 4 2 0 Source:Turkstat, 2013 Turkey’s foreign policy decisions are started to applied with integrated economic policy since a new political balance. New policies about the Middle East and African countries made economic relations grown with those countries. It provides country variety in export of Turkey even if it is argued that a huge change of Turkish foreign policy. Free trade agreements that increase the diversity and visa exemption contribute to improve Turkish foreign trade (Karagol, 2012:3). When EU’s free trade agreements with third world countries contain Turkey, Turkey’s trade benefits are not considered by EU because Turkey is still not a full-member of EU. This case creates that third world countries that have an free trade agreement with EU gain a right to get a free trade with Turkey. Also, concessions which are provided by third world countries to EU are not valid for Turkey because of candidate membership of Turkey. Moreover, those countries continue to apply tariffs on Turkey’s export and they are not willing to agree on free trade agreements. For instance, Mexico and Algeria do not negotiate with Turkey about an free trade agreement whereas they have free trade agreement with EU (Akses, 2012:5). Turkey’s export amounts by countries are shown at Table 3. 198 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Table:3. Export with Blocs, 2011-2012 Blocs Total A-EUROPEAN UNION (EU) B-FREE ZONES IN TURKEY C- OTHER COUNTRIES 1-Other European Countries 2-African Countries North African Countries Other African Countries 3-AmericanCountries North American Countries Central American and Caribbean Countries South American Countries 4-AsianCountries Near and Middle East Countries Other Asian Countries 5-Australia and New Zealand 6-Diğer Countries Source: Turkstat, 2013. 134 906 869 62 347 441 2 544 721 70 014 706 12 976 364 10 333 821 6 700 805 3 633 016 7 925 943 5 459 299 626 293 1 840 351 38 134 133 27 934 772 10 199 361 480 755 2011 Share(%) 100,0 46,2 1,9 51,9 9,6 7,7 5,0 2,7 5,9 4,0 0,5 1,4 28,3 20,7 7,6 0,4 152 560 775 59 240 765 2 295 409 91 024 601 14 373 164 13 361 451 9 448 432 3 913 019 9 635 644 6 673 256 769 879 2 192 509 53 058 624 42 476 952 10 581 671 490 446 2012 Share(%) 100,0 38,8 1,5 59,7 9,4 8,8 6,2 2,6 6,3 4,4 0,5 1,4 34,8 27,8 6,9 0,3 163 690 0,1 105 273 0,1 2011 Amount 2012 Amount Change (%) 13,1 -5,0 -9,8 30,0 10,8 29,3 41,0 7,7 21,6 22,2 22,9 19,1 39,1 52,1 3,7 2,0 -35,7 3.1.2. Credit- Finance Impact Another impact of the relationship is about credits. Approximately 75 % of credits that Turkish banks used are originated from EU and problems on banking and finance in EU are very dangerous for Turkey because it can affect Turkey’s growth performance that is dependent foreign savings. Turkish banking system that takes important cautions, still need to conduct profound analysis because of threats about EU debts (Boyner, 2012:2). Instability on foreign resource channel, global uncertainty and lack of confidence about economy cause to decrease credit amount of domestic banks. Especially, a decline in postdated check influences procurement of economy negatively such an environment. Elimination of procurement reflects to SME’s performance like a domino effect. On the other hand, narrowing volume in commercial credits affects in a very bad way to SMEs (TEPAV, 2009:10). Turkish economy applied an economic stability program with IMF after 2001 crisis (İncekara, 2012:4). Great successes are gained and Turkish economy has an outlook as below until debt crisis:  Structural reform and transformation on national economy,  Sustainable growth between 2002 and 2008 and a decreasing growth rate in past few years,  Creates employment and job opportunity,  Increasing export,  More efficient on manufacturing sector,  Increasing foreign direct investment,  Low inflation rates,  Decreasing public debt stock,  Conducting EU negotiations,  GDP per capita above 10.000 $. 199 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Global economic crisis was skipped with a recession because of the reforms on banking and financial after 2001 crisis (Karagol, 2011:3). Significant effect of the crisis was felt on September of 2008. Finance channels are became tight, a strong decline in both internal and external aggregate demand, production and employment losses are occurred in this period. Serious concerns about “bankruptcy again” involved a psychological trauma in the country (MÜSİAD, 2009:14). Global crisis influenced Turkey which is a profound connections with the world. According to both internal and external demand comedown, export and unemployment affected badly. Debt crisis affects occurred in three different ways (Usta, 2010).  Foreign Trade Channel: low external demand and production and employment losses  Credit channel: Scarcity of credit because of global finance system problems  Expectation channel: Domestic aggregate demand is declined because of uncertainties. 3.1.3. Expectation Impact Monthly expectation surveys of Turkish Central Bank did not show any good signal since 2007 and it showed that expectations were getting worse. Real sector confidence index did not get better after the middle of 2007 and it was getting worse on the third quarter of 2008. Consumer’s confidence to the future are gone (Sonmez, 2008). 3.1.4. Investment Impact When we evaluate the improvement on foreign direct investment of Turkey, one of the important factor is investment impact. According to data for past few years , most of the foreign direct investment to Turkey originated from European Union. In this respect, restriction of foreign investment originated from EU debt crisis prevent the opportunities to invest in Turkey and this is another risky factor of the crisis (Boyner, 2012:2). Top 10 countries which attract investment mostly is shown at Table 4. USA, China and Hong Kong are the top three countries and Turkey is the 17th most attractive country for foreign investment in 2010. When we look at the year of 2008 (19.5 billion $), there is a sharp decrease in foreign direct investment of Turkey. Table 4: Most Attractive Countries on Foreign Direct Investment (2010) Rank 1 2 3 4 5 6 7 8 9 10 17 Country FDI* (Billion US $) USA 228,2 China 105,7 Hong Kong 68,9 Belgium 61,7 Brazil 48,4 Germany 46,1 England 45,9 Russia 41,2 Singapore 38,6 France 33,9 Turkey 9,1 World Total 1.243,7 Source: Ministry of Economy of Turkey, Foreign Direct Investment 2012 Report p. 7. *FDI: Foreign Direct Investment 200 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo At present crisis is a situation where both parties are satisfied. Turkey is not insisting about membership and EU is not in a hurry about it. While we're not aware of time passing by this way, the biggest loss for the candidate countries, namely Turkey sees, or will see. Because when the countries join the EU, they must accept all the terms and conditions. Extension of the membership process means the arrival of new issues on the agenda.The EU is a dynamic structure, and continuously develops new rules and practices. As long as the membership process is extending, the candidate country countries have to adapt to the new situations and it must accept the new rules (Ozdemir, 2012:2). The decreasing of the support of EU to Turkey should not be interpreted as giving up the EU projects. Taking a look at the perception of EU in the world and in the EU will be useful to understand this situation. There are serious problems that disturb the public they are not about the state of crisis in the EU. Due to the structure of the EU institutions and decision-making mechanism, the lack of democratic accountability obligation has damaged the legitimacy of the EU institutions and it has reduced the credibility of the EU institutions. EU citizens are now on every occasion give the signal for that they do not like the integration process which is leading by elite class. The EU has to deal with the new regulations which provide legitimacy to overcome those problems. Meanwhile, the financial and debt crisis in the EU up to a short time to exit the growth and employment, rather than based on solid economic discipline and budget constraints compromising stability and social welfare state debate agenda, EU citizens' aspirations for EU integration is reduced(ArısanEralp, 2012: 3). 5. Conclusion Starting in 2007, the United States, the EU and other countries, the impact of the global financial crisis still continues to spread. Especially some EU countries are affected more than others. Despite all the problems and crises, the EU's economic model is still seen as a strong economic zooming and transformation mechanism. This situation shows that EU crises are not only financial but also structural. If the debt crisis will not be solved as soon as possible, it is obvious that debt crisis will be long and problematic process. in this case, Turkey should search for alternative markets to sustain, enhance the competitiveness of the international markets and take steps to fill the loss of the perimeter of the EU countries on world markets. With the financial crisis which arise in 2007 and affect all over the world, the dominant problems of economics such as growth dynamics, distribution problems in the financial sector has been started to discussed (Yener, 2010: 1). Mortgage crisis of 2007 put end to liberal economy policies which pretend that government interfere economy and the increasing of the doubt about the future of the liberal capitalist system makes the policies which regulate financial system important. Indeed, in the G-20 Summit of 2 April 2009 (referred to as the London Summit in London to made), it was stated that the cause of the crisis is the failure of financial regulation, the capable global system should be established, the global cooperation should be extended, transparency and market discipline should be given importance (Er,2011: 323). In this respect, derived lessons from mistakes are written below (Yeldan, 2009:16): 201 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo  First of all, neo-liberal economics doctrines which mention about free market without any government intervention will provide a stabilized and balanced economy, is wrong.  Second one is about process of financial system and structural characteristics. Financial system is a world of expectation and manipulation on the contrary of real sector. Financial system gains are came from “fast” decision mechanism that embodied short term point of view, manipulation and risks. Decision makers who ignore the characteristics of financial markets are still defending the thought that transparency is good solution. We can say the main things that should be done after the crisis (YılmazveGaygusuz, 2009):  Strong supervisions and regulations about extreme leverage are needed.  Much transparency should be needed to lower the counterparty risk.  New and different products that comes from financial system should be controlled by international independent foundations.  Standards and rules should be legislated on banking system and other institutions such as “Basel II”  Derived products markets must be controlled and supervised. With all these regulations, financial system will work properly and risks are lowered. Increasing desire for risk with profit maximization which has been in the nature of capitalistic system should be decreased. 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(2009). 2008 KrizininYeni Global EkonomikYapıÜzerineEtkileri, UluslararasıDavrazKongresi,SüleymanDemirelÜniversitesi, Isparta, 24-27 Eylül. (Erişim: http://idc.sdu.edu.tr/tammetinler/kalkinma/kalkinma39.pdf). http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/2-22042013-AP/EN/2-22042013-APEN.PDF 15.04.2013 204 � https://omeka.ibu.edu.ba/files/original/c15df617c2b6e1ed436032788fc8160b.docx ea3e9b61417d7556cf189707164e646d https://omeka.ibu.edu.ba/files/original/a47eeb2ef3ff5dee07ffe00101d89a4c.pdf 16e14d9ecbb24475119443c1cd709d1d PDF Text Text International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo The Effects of DeepeningDebtCrisis in the Member Countries of European Union on TurkishEconomy ErdalAlancıoğlu Harran University, Şanlıurfa, Turkey ealancioglu@harran.edu.tr H. Mustafa Paksoy KilisDecember 7University, Kilis, Turkey hmpaksoy@yahoo.com SadettinPaksoy KilisDecember 7University, Kilis, Turkey spaksoy@kilis.edu.tr Abstract In the context of the global economy, the world's second largest market after the United States, the European Union has an important position. Since the last quarter of 2008, the global financial crisis spread to Europe from the U.S., and especially in the last period, the economy and the policy dilemmas and in this sense the observed Debt Crisis in the European Union, which has become an international problem in our country, along with the effects observed in the entire world. Although Turkey is not a member state of the European Union, the European Union, the historical, social and economic ties affected by any development which is due to causes in Europe. In this study, the effects of the European Union Debt Crisis, Turkey's economy foreign trade, credit and finance, and Turkey's European Union membership perspective to the size of investment channels will be evaluated. Keywords: European Union, The Debt Crisis, Economy of Turkey 1. Introduction Integration of nations is getting stronger through increasing international goods and services’ trade volume and capital-labor flows across borders especially from the late of 1980s until now. “Economic globalization” has been experienced thanks to technological progress which enables faster and wide expansion all around the world. Global financial crisis appears at the end of 2008 in USA affects very fast because of characteristics of globalization. When the global crisis continues, European Union which is the biggest international economic organization in the world, is the most affected part of world economy. Financial fluctuations in European countries caused a devastating problems on real economies and financial markets. Diminishing of aggregate demand and financial markets involve lower trade volume. In one sense, governments increase their public spending to lower the effects of global financial crisis in EU countries. On the other hand, tax income of governments declines due to economic recession and these circumstances cause series budget deficits and higher debts in EU economies. The global financial crisis that shown as a debt crisis in Europe, influenced the UE deeply. Member states such as Ireland, Spain, Italy, Portugal and Greece are the first countries impressed by the global crisis. These five EU member 193 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo countries had a crisis not only economic but also political way. Eventually, it involves changes of governments in charge and shows the scope of the debt crisis. With a globalization process in recent years shows that countries which have regional integration and high trade volume are fully integrated on financial markets. Although Turkey is not a member state of EU, consolidation of Turkey and EU exists in a quiet high level. In this paper, current situation of EU debt crisis, effects through Turkish economy; foreign trade, financial conditions, investment performances are evaluated with respect of full membership process of Turkey. 2. Current Situation at EU Debt Crisis European countries did not use its debts effectively. In other words, debts are used in health, education and real estate sectors instead of covering the fields that create more income. Low debt costs enable the loans more attractive. More credits are needed to meet the cost of previous debts. Willingness of financial foundations to give loans and higher returns of financial markets than real markets evolve great debts in European countries. Banks and other institutions did not hesitate to give credits to EU countries and it is not questioned. When credit institutions which affected by global financial crisis increased interest rates, EU countries debt costs rose so that financing of debts is very hard. To conclude Portugal, Ireland, Greece, Italy and Spain called PIGS countries were faced with debt crisis in 2011 (Tunç, 2012:2). Current conditions of EU countries between 2009 and 2012 are shown at Table 1. Table : 1 Current conditions of EU countries Greece GDP (Million Euro) Public Debt 2009 231081 2010 222151 2011 208532 2012 193749 299685 329515 355172 303918 Public Debt / GDP % Portugal GDP (Million Euro) Public Debt Public Debt / GDP % İreland GDP (Million Euro) Public Debt Public Debt / GDP % Spain GDP (Million Euro) Public Debt Public Debt / GDP % 129.7 148.3 170.3 156.9 168 529 172 859 171 065 165 409 141 055 83.7 162 473 94.0 185 241 108.3 204 485 123.6 161 275 156 487 158 993 163 595 104 544 64.8 144 164 92.1 169 226 106.4 192 461 117.6 1 048 060 1 048 883 1 063 355 1 049 525 565 082 53.9 644 692 61.5 736 468 69.3 883 873 84.2 Source: Eurostat, 2013. Using common monetary policy carried out by European Central Bank (ECP) and common currency unit in Europe cause tighter economic relations which facilitate to spread damaging effects fast towards other European countries. Moreover, high integration level of real and financial markets increase response velocity of countries among each other. 194 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Thus, debt crisis appeared in Greece in the second quarter of 2010, treated all of the Euro Zone countries even the existence of economic and monetary union. Euro Zone countries struggled with not only low economic growth but also huge debts of governments and bankruptcy risk of Greece, Spain and Ireland in 2010. Briefly, global financial crisis was turned into European Union debt crisis and then bankruptcy crisis of Euro Zone countries. At this point, European Union faced with the biggest challenge that EU ever seen (Kutlay, 2011:2). Greek debt crisis started in 2009, expand to Portugal and Ireland. With an aid request from Italy and Spain at the end of 2011 and 2012, debt crisis spread much. This deploys mainly affected three ways: foreign trade, interest rates and exchange rates (KöseKarabacak, 2011: 300). When the member states of union are examined, the crisis originated different reasons for any European countries. For instance, Greek crisis was originated from public sector but Ireland suffered from banking sector and real estate. Being higher current account deficit of Portugal caused great risk for banking system; Spain’s inadequate internal and external demand leads to low economic performance with 20% unemployment rate. The weaknesses of public finance of Italy and Belgium make these economies worse (Ministry of EU, 2011:8). 3. Effects of Debt Crisis into Turkish Economy Global crisis appeared firstly in mortgage loans, expanded in financial markets in 20072009 before real markets. USA economy was faced with a serious unemployment rate and recession process. Strong financial relations between USA and other developed countries (especially EU countries) make the crisis easy to spread. Uncertainty and trust problems of credit mechanism restricts the borrowing possibilities and increase costs of debts (Kibritcioglu, 2010:6–7). “ EU and Euro Zone is an important partner with Turkey. Many countries have same position like Turkey and if the crisis deepen global economy will be affected and also Turkey. It will affect Brazil and USA. In comparison with some other countries, Turkey’s portion of trade with Euro Zone is higher but our trade structure is various, that a good thing. Turkish economy either flexible and various and dependence to EU is not too much (Dervis, 2011:1). Financial crisis that surrounds the global markets, affects Turkish economy indirectly, not directly. This indirect impact will continue as the crisis goes on. Euro-USD parity is affected by the crisis and US Dollar became more valuable. This means for the side of Turkey that decrease in export and increase in import because of imbalanced exchange parity. Reflection to the economy will be inflationist impact. Credit volume of Turkey will decrease because Turkish banks will not be able to find appropriate credit from EU financial markets (Tunc, 2012: 2). An economy which has free capital movements and great impacts of capital flows to domestic economy such Turkey, policy volume of government brings different influences on price stability and external balance (Aslan&Korap, 2007: 43). Essentially Greece, Ireland, Spain, Italy, Belgium and Portugal and developing countries such as Turkey is influenced by debt crisis. 195 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo 3.1. Impact Channels of Crisis for Turkey Foreign Trade Impact European Union consists of the biggest part of foreign trade of Turkey. Direct and indirect effects of EU reflect to Turkish economy as well. Intensity of Turkish export on EU originated by country’s export performance is quiet relevant with demand conditions of EU countries. Recession of EU economies influenced Turkish exporters and producers negatively (Vural, 2012: 52). 56 % share of Turkish export in 2007 is covered by EU and EU recession influenced the trade balance of Turkey negatively (TEPAV, 2009: 10). According to floating exchange rate system, exchange rate is determined in free market and it did not work properly because Turkish financial structure is fit with this system. Especially hot money flows and increasing foreign exchange debt of Turkish firms after 2003 put pressure on exchange rates. In addition, higher interest rates prevent the rise in exchange rates. Low exchange rates change the export-import equilibrium, and decrease inflation rate whereas current account deficit grows (Yıldırım, 2010: 50). With contracting external demand, manufacturing shrank. World bigger economies, decrease the interest rate in order to accelerate and exposedemand, in other words, some economic programs are applied to increase the demand. (Karagöz, 2009: 4). Table:2. Share of EU Countries in total Turkish export 16000000 14000000 12000000 10000000 80000000 Total Export (Thousand $) Total Import (Thousand $) 60000000 40000000 20000000 0 2008 2009 2010 2011 2012* Source: Turkstat,2013 *Data for 2012 is for 10 months. Global financial crisis which started as a Mortgage crisis in the USA influenced EU countries substantially. Especially Greece, Spain, Italy and Ireland struggled with a huge 196 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo amount of debt and finally the whole EU countries found themselves in the middle of the crisis. Developments in EU made Turkey worried about because Turkey aimed to solve its current account deficit problem by export activity (Öztürkvd. 2012: 1). EU countries share ($) in Turkey’s total export is shown at Table 2. Turkey’s total export and export to EU started to fall in 2009 and 2010 and total export rose again in 2011 and 2012. Graph: 1.Turkey’s Export (2008–2011). 17.300% AB 1.500% ABD 46.800% Rusya İslam İşbirliği Teş 27.100% Çin Diğer 4.000% 3.200% Source:Turkstat, 2013. Trade relations between Turkey and EU affected negatively due to high budget deficits and financial problems in EU member countries which involve a recession in domestic aggregate demand and insufficient financial facilities. Especially, export amount of Turkey to EU is diminished. Foreign trade is fully related to EU debt crisis and Turkey. Still, EU is mainly trade partner of Turkey but the share of EU is decreasing in past few years and Turkey is trying to create new markets to meet this gap. At this point, a decline in EU import in generally causes a decrease the share of EU on Turkey’s export. Although Turkey did not lose its share in EU market, it is obvious that the crisis narrows Turkey’s export (Boyner, 2012:1). Turkey’s export towards economic groups and organizations between 2008 and 2011 is shown at Graph 1. The biggest share of export is in EU with percentage of 46 % and Muslim countries with 27 %. Notwithstanding economic relationships between EU and Turkey were influenced negatively, the union is still the most important trade partner of Turkey (Akses, 2012:4). A decline in aggregate demand in EU made Turkey to find alternative markets. Thus, Turkey improved its trade relationships with Middle East countries and Commonwealth of Independent States since 2008. Other reason to improve its trade relationship with third world countries is European international trade laws that apply a mutual customs union with inside and other countries. European Union is carrying out many negotiations about free trade agreements with a new perspective of foreign trade. For this reason, it is so 197 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo important that Turkey should execute new free trade agreements parallel to EU negotiations (Akses, 2012:4). Germany (13 billion $), Iraq (10.7 $) and UK (8 billion $) are the top countries in Turkey’s export in 2012 (Graph 2). The most of those countries show that Turkey’s export is still towards EU even though ongoing debt crisis. Additionally, 38.6 % of Turkey’s export is still consisting of EU countries. It shows that an export structure of Turkey which higher quality with low price, gave an advantage to Turkey. Besides, Turkey got a chance to make the crisis an opportunity by using its geopolitical location advantages and responding demands of other countries easily (Karagol, 2012:3). Graph 2. Export of Turkey (billion $), 2012 14 12 10 8 6 4 2 0 Source:Turkstat, 2013 Turkey’s foreign policy decisions are started to applied with integrated economic policy since a new political balance. New policies about the Middle East and African countries made economic relations grown with those countries. It provides country variety in export of Turkey even if it is argued that a huge change of Turkish foreign policy. Free trade agreements that increase the diversity and visa exemption contribute to improve Turkish foreign trade (Karagol, 2012:3). When EU’s free trade agreements with third world countries contain Turkey, Turkey’s trade benefits are not considered by EU because Turkey is still not a full-member of EU. This case creates that third world countries that have an free trade agreement with EU gain a right to get a free trade with Turkey. Also, concessions which are provided by third world countries to EU are not valid for Turkey because of candidate membership of Turkey. Moreover, those countries continue to apply tariffs on Turkey’s export and they are not willing to agree on free trade agreements. For instance, Mexico and Algeria do not negotiate with Turkey about an free trade agreement whereas they have free trade agreement with EU (Akses, 2012:5). Turkey’s export amounts by countries are shown at Table 3. 198 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Table:3. Export with Blocs, 2011-2012 Blocs Total A-EUROPEAN UNION (EU) B-FREE ZONES IN TURKEY C- OTHER COUNTRIES 1-Other European Countries 2-African Countries North African Countries Other African Countries 3-AmericanCountries North American Countries Central American and Caribbean Countries South American Countries 4-AsianCountries Near and Middle East Countries Other Asian Countries 5-Australia and New Zealand 6-Diğer Countries Source: Turkstat, 2013. 134 906 869 62 347 441 2 544 721 70 014 706 12 976 364 10 333 821 6 700 805 3 633 016 7 925 943 5 459 299 626 293 1 840 351 38 134 133 27 934 772 10 199 361 480 755 2011 Share(%) 100,0 46,2 1,9 51,9 9,6 7,7 5,0 2,7 5,9 4,0 0,5 1,4 28,3 20,7 7,6 0,4 152 560 775 59 240 765 2 295 409 91 024 601 14 373 164 13 361 451 9 448 432 3 913 019 9 635 644 6 673 256 769 879 2 192 509 53 058 624 42 476 952 10 581 671 490 446 2012 Share(%) 100,0 38,8 1,5 59,7 9,4 8,8 6,2 2,6 6,3 4,4 0,5 1,4 34,8 27,8 6,9 0,3 163 690 0,1 105 273 0,1 2011 Amount 2012 Amount Change (%) 13,1 -5,0 -9,8 30,0 10,8 29,3 41,0 7,7 21,6 22,2 22,9 19,1 39,1 52,1 3,7 2,0 -35,7 3.1.2. Credit- Finance Impact Another impact of the relationship is about credits. Approximately 75 % of credits that Turkish banks used are originated from EU and problems on banking and finance in EU are very dangerous for Turkey because it can affect Turkey’s growth performance that is dependent foreign savings. Turkish banking system that takes important cautions, still need to conduct profound analysis because of threats about EU debts (Boyner, 2012:2). Instability on foreign resource channel, global uncertainty and lack of confidence about economy cause to decrease credit amount of domestic banks. Especially, a decline in postdated check influences procurement of economy negatively such an environment. Elimination of procurement reflects to SME’s performance like a domino effect. On the other hand, narrowing volume in commercial credits affects in a very bad way to SMEs (TEPAV, 2009:10). Turkish economy applied an economic stability program with IMF after 2001 crisis (İncekara, 2012:4). Great successes are gained and Turkish economy has an outlook as below until debt crisis:  Structural reform and transformation on national economy,  Sustainable growth between 2002 and 2008 and a decreasing growth rate in past few years,  Creates employment and job opportunity,  Increasing export,  More efficient on manufacturing sector,  Increasing foreign direct investment,  Low inflation rates,  Decreasing public debt stock,  Conducting EU negotiations,  GDP per capita above 10.000 $. 199 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Global economic crisis was skipped with a recession because of the reforms on banking and financial after 2001 crisis (Karagol, 2011:3). Significant effect of the crisis was felt on September of 2008. Finance channels are became tight, a strong decline in both internal and external aggregate demand, production and employment losses are occurred in this period. Serious concerns about “bankruptcy again” involved a psychological trauma in the country (MÜSİAD, 2009:14). Global crisis influenced Turkey which is a profound connections with the world. According to both internal and external demand comedown, export and unemployment affected badly. Debt crisis affects occurred in three different ways (Usta, 2010).  Foreign Trade Channel: low external demand and production and employment losses  Credit channel: Scarcity of credit because of global finance system problems  Expectation channel: Domestic aggregate demand is declined because of uncertainties. 3.1.3. Expectation Impact Monthly expectation surveys of Turkish Central Bank did not show any good signal since 2007 and it showed that expectations were getting worse. Real sector confidence index did not get better after the middle of 2007 and it was getting worse on the third quarter of 2008. Consumer’s confidence to the future are gone (Sonmez, 2008). 3.1.4. Investment Impact When we evaluate the improvement on foreign direct investment of Turkey, one of the important factor is investment impact. According to data for past few years , most of the foreign direct investment to Turkey originated from European Union. In this respect, restriction of foreign investment originated from EU debt crisis prevent the opportunities to invest in Turkey and this is another risky factor of the crisis (Boyner, 2012:2). Top 10 countries which attract investment mostly is shown at Table 4. USA, China and Hong Kong are the top three countries and Turkey is the 17th most attractive country for foreign investment in 2010. When we look at the year of 2008 (19.5 billion $), there is a sharp decrease in foreign direct investment of Turkey. Table 4: Most Attractive Countries on Foreign Direct Investment (2010) Rank 1 2 3 4 5 6 7 8 9 10 17 Country FDI* (Billion US $) USA 228,2 China 105,7 Hong Kong 68,9 Belgium 61,7 Brazil 48,4 Germany 46,1 England 45,9 Russia 41,2 Singapore 38,6 France 33,9 Turkey 9,1 World Total 1.243,7 Source: Ministry of Economy of Turkey, Foreign Direct Investment 2012 Report p. 7. *FDI: Foreign Direct Investment 200 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo At present crisis is a situation where both parties are satisfied. Turkey is not insisting about membership and EU is not in a hurry about it. While we're not aware of time passing by this way, the biggest loss for the candidate countries, namely Turkey sees, or will see. Because when the countries join the EU, they must accept all the terms and conditions. Extension of the membership process means the arrival of new issues on the agenda.The EU is a dynamic structure, and continuously develops new rules and practices. As long as the membership process is extending, the candidate country countries have to adapt to the new situations and it must accept the new rules (Ozdemir, 2012:2). The decreasing of the support of EU to Turkey should not be interpreted as giving up the EU projects. Taking a look at the perception of EU in the world and in the EU will be useful to understand this situation. There are serious problems that disturb the public they are not about the state of crisis in the EU. Due to the structure of the EU institutions and decision-making mechanism, the lack of democratic accountability obligation has damaged the legitimacy of the EU institutions and it has reduced the credibility of the EU institutions. EU citizens are now on every occasion give the signal for that they do not like the integration process which is leading by elite class. The EU has to deal with the new regulations which provide legitimacy to overcome those problems. Meanwhile, the financial and debt crisis in the EU up to a short time to exit the growth and employment, rather than based on solid economic discipline and budget constraints compromising stability and social welfare state debate agenda, EU citizens' aspirations for EU integration is reduced(ArısanEralp, 2012: 3). 5. Conclusion Starting in 2007, the United States, the EU and other countries, the impact of the global financial crisis still continues to spread. Especially some EU countries are affected more than others. Despite all the problems and crises, the EU's economic model is still seen as a strong economic zooming and transformation mechanism. This situation shows that EU crises are not only financial but also structural. If the debt crisis will not be solved as soon as possible, it is obvious that debt crisis will be long and problematic process. in this case, Turkey should search for alternative markets to sustain, enhance the competitiveness of the international markets and take steps to fill the loss of the perimeter of the EU countries on world markets. With the financial crisis which arise in 2007 and affect all over the world, the dominant problems of economics such as growth dynamics, distribution problems in the financial sector has been started to discussed (Yener, 2010: 1). Mortgage crisis of 2007 put end to liberal economy policies which pretend that government interfere economy and the increasing of the doubt about the future of the liberal capitalist system makes the policies which regulate financial system important. Indeed, in the G-20 Summit of 2 April 2009 (referred to as the London Summit in London to made), it was stated that the cause of the crisis is the failure of financial regulation, the capable global system should be established, the global cooperation should be extended, transparency and market discipline should be given importance (Er,2011: 323). In this respect, derived lessons from mistakes are written below (Yeldan, 2009:16): 201 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo  First of all, neo-liberal economics doctrines which mention about free market without any government intervention will provide a stabilized and balanced economy, is wrong.  Second one is about process of financial system and structural characteristics. Financial system is a world of expectation and manipulation on the contrary of real sector. Financial system gains are came from “fast” decision mechanism that embodied short term point of view, manipulation and risks. Decision makers who ignore the characteristics of financial markets are still defending the thought that transparency is good solution. We can say the main things that should be done after the crisis (YılmazveGaygusuz, 2009):  Strong supervisions and regulations about extreme leverage are needed.  Much transparency should be needed to lower the counterparty risk.  New and different products that comes from financial system should be controlled by international independent foundations.  Standards and rules should be legislated on banking system and other institutions such as “Basel II”  Derived products markets must be controlled and supervised. With all these regulations, financial system will work properly and risks are lowered. Increasing desire for risk with profit maximization which has been in the nature of capitalistic system should be decreased. 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(2009). 2008 KrizininYeni Global EkonomikYapıÜzerineEtkileri, UluslararasıDavrazKongresi,SüleymanDemirelÜniversitesi, Isparta, 24-27 Eylül. (Erişim: http://idc.sdu.edu.tr/tammetinler/kalkinma/kalkinma39.pdf). http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/2-22042013-AP/EN/2-22042013-APEN.PDF 15.04.2013 204 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1558 Title A name given to the resource The Effects of Deepening Debt Crisis in the Member Countries of European Union on Turkish Economy Author Author ALANCIOGLU, Erdal PAKSOY H., Mustafa PAKSOY, Sadettin Abstract A summary of the resource. The world's second largest market after the United States is the European Union that has an important position in the context of the global economy. Since the last quarter of 2008, the global financial crisis spread to Europe from the U.S. Currently, the european Union crises which is perceived as an international problem has a negative effect on also our economy as well as on all over the world. Althought, Turkey is not a member of European Union the country is effected by each kind of crises by the Europen Union easily. The effect of European Union on Turkish economy is are examined in this study; foreign trade, credit and finance, dimensions of investment channels and perspective of Turkey in terms of being member of European Union will be evaluated. Keywords: European Union, the Debt Crisis, Economy of Turkey. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 978-9958-834-23-3 https://omeka.ibu.edu.ba/files/original/50b55ab8496a67d63054761aee53f928.pdf 9a0bc79fc3b7717861505f25278d0fc3 PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo Comparison between Industrial Policy of Turkey and Bulgaria İmren Alakuş Dokuz Eylül University, Turkey sandcastle_1989@hotmail.com Paper will make a comparison between Turkey’s industrial policy and Bulgaria’s industrial policy in terms of meeting European Union (EU)’s criteria. The topic is very significant because countries’ level of development depend on their industrial policies. This is why EU gives more importance to this sector and candidate countries have to meet chapter on industrial policy for becoming full membership. The paper will focus on improvement of two countries’ industrial policies year over year for being of a member of EU. Keywords: Industrial Policy, Turkey, EU, Bulgaria. 170 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1591 Title A name given to the resource Comparison between Industrial Policy of Turkey and Bulgaria Author Author ALAKUS, Imren Abstract A summary of the resource. Paper will make a comparison between Turkey’s industrial policy and Bulgaria’s industrial policy in terms of meeting European Union (EU)’s criteria. The topic is very significant because countries’ level of development depend on their industrial policies. This is why EU gives more importance to this sector and candidate countries have to meet chapter on industrial policy for becoming full membership. The paper will focus on improvement of two countries’ industrial policies year over year for being of a member of EU. Keywords: Industrial Policy, Turkey, EU, Bulgaria. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2303-4564 https://omeka.ibu.edu.ba/files/original/740b802fe354836c99c1e7da3bcefa6a.pdf be818cd82e01383ae1aef405518de26a PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo Social Security Expenditure and Income Distribution: An Application of Turkey Gül Aksoğan Kahramanmaraş Sütçü İmam University, Kahramanmaraş, Turkey gulaksogan@hotmail.com Gülferah Bozkaya Kahramanmaraş Sütçü İmam University, Kahramanmaraş, Turkey gul_ferah_85@hotmail.com Social security, in essence, people are likely to encounter in their economic and social risks prior to them taking the necessary measures to ensure that the income generated public expenditure programs. Social security, poverty, unemployment, economic uncertainty about the future and old age and illness that may occur due to the social dangers which includes measures to eliminate or alleviate the negative. Re-distribution of income in the fiscal policy of the State to intervene using the tools of fiscal policy objectives is included. In this respect, the state, directly affect the distribution of income through the tax system and the secondary distribution of income transfer performs. In addition, public expenditures for social services and their financing for the development of infrastructure for the distribution of income through public revenues collected direct. Provision of social peace in a country largely depends on a fair distribution of income. However, a fair distribution of income as self-realization is not possible. State to intervene in the distribution of income through income distribution policies of the welfare state is seen as a requirement. This paper examines the relationship between social security expenditures and the distribution of income in Turkey for the period of 1975-2010. The study aims to reveal whether there is any relationship between the two variables in the long term, utilizing basic cointegration and VAR (Vector Autoregression) model. Keywords: Social Security Expenditures, Distribution of Income. 131 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1550 Title A name given to the resource Social Security Expenditure and Income Distribution: An Application of Turkey Author Author AKSOGAN, Gul BOZKAYA, Gülferah Abstract A summary of the resource. Social security, in essence, people are likely to encounter in their economic and social risks prior to them taking the necessary measures to ensure that the income generated public expenditure programs. Social security, poverty, unemployment, economic uncertainty about the future and old age and illness that may occur due to the social dangers which includes measures to eliminate or alleviate the negative. Re-distribution of income in the fiscal policy of the State to intervene using the tools of fiscal policy objectives is included. In this respect, the state, directly affect the distribution of income through the tax system and the secondary distribution of income transfer performs. In addition, public expenditures for social services and their financing for the development of infrastructure for the distribution of income through public revenues collected direct. Provision of social peace in a country largely depends on a fair distribution of income. However, a fair distribution of income as self-realization is not possible. State to intervene in the distribution of income through income distribution policies of the welfare state is seen as a requirement. This paper examines the relationship between social security expenditures and the distribution of income in Turkey for the period of 1975-2010. The study aims to reveal whether there is any relationship between the two variables in the long term, utilizing basic cointegration and VAR (Vector Autoregression) model. Keywords: Social Security Expenditures, Distribution of Income. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2303-4564 https://omeka.ibu.edu.ba/files/original/3e280d945a4968268cafc256cb63755d.pdf ca4d9717e633e15bf548e2743f93b413 PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo Transformational Approaches to Leadership of Alija Izetbegovic from the Perspective of Bosnian University Students İlker Akkaya International Burch University, Sarajevo, Bosnia and Herzegovina ilkerakkaya@gmail.com Ali Göksu International Burch University, Sarajevo, Bosnia and Herzegovina agoksu@ibu.edu.ba The main aim of this study is making an examination over leadership of Alija Izetbegovic during the 1992- 1995 war period and eight years right after the war. It will be examined that how Alija Izetbegovic manage the crises during the war and post war time period. In order to comprehend the leadership of Alija Izetbegovic some questionnaires will be applied to Bosnian University students. By this way it will be understood the approaches of the students regarding this issue moreover all the approaches of the students will be explained via statistical methods. Keyword: Leadership and Characteristics of Leader, Crises Management, Statistical Methods, Transformational Approaches. 168 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1674 Title A name given to the resource Transformational Approaches to Leadership of Alija Izetbegovic from the Perspective of Bosnian University Students Author Author AKKAYA, Ilker GÖKSU, Ali Abstract A summary of the resource. The main aim of this study is making an examination over leadership of Alija Izetbegovic during the 1992- 1995 war period and eight years right after the war. It will be examined that how Alija Izetbegovic manage the crises during the war and post war time period. In order to comprehend the leadership of Alija Izetbegovic some questionnaires will be applied to Bosnian University students. By this way it will be understood the approaches of the students regarding this issue moreover all the approaches of the students will be explained via statistical methods. Keyword: Leadership and Characteristics of Leader, Crises Management, Statistical Methods, Transformational Approaches. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2303-4564