Made in turkey

ISSN 1300-2260

www.img.com.tr FEBRUARY 2014 Year: 11 No: 118

The Turkish Central Bank has vowed to use interest rate hike to protect Turkish Lira

A

NKARA- The Turkish Central Bank has vowed to use interest rate hike as one of its main policy tools, during midnight policy meeting of Jan. 28, in its fight to protect the Turkish Lira, while revising its inflation outlook for this year upwards.

“Nobody should have any hesitation about the Central Bank will using all of its available tools. The bank will not hesitate to take steps to make lasting adjustments to tighten the

monetary policy if deemed necessary,” Central Bank Governor Erdem Başçı said on Jan. 28 during a press conference to present the bank’s first quarterly inflation report.

Speaking ahead of an emergency Monetary Policy Committee meeting, Başçı said he expected to start using the interest rate tool in the monetary policy, depicting a U-turn from the bank’s insistence on avoiding a hike.

“We know that tightening moves to halt excessive volatility are way more effective

Turkish Development Minister Cevdet Yilmaz

when they are backed by interest rates,” he said, taking heed of the foreign exchange reserve and currency conditions.

“A rapid decrease of the [foreign exchange] reserves would have other adverse consequences as well. Now, after this point, the interest rate weapon should be put into use,” he said.

“The foreign exchange sales might drop after a recovery in the current account deficit in February and the usage of the interest rate as a weapon,” he added.

“Turkey’s economy holds much promise”

I

n an interview about the IMF’s regular annual report of the Turkish economy, mission chief Ernesto Ramirez Rigo said that Turkey’s geographical locayoung population, vibrant private sector basis for a promising out-

Turkish Central Bank Governor Erdem Basci

In line with the simplification decision taken at the Monetary Policy Committee Meeting

of the Bank, additional monetary tightening policy was announced. Page 7

NASDAQ OMX and Borsa Istanbul sign Landmark Deal

Turkey adopts inclusive development strategy

N

evdet Yilmaz, Turkey’s Minister of Development, delivered a speech at the meeting entitled “New Manufacturing Region in Textile in 21st Century: Production Region Sensitive to Human and Environment. At the conference, he briefed about the 10th Five-Year Development Plan and future objectives aimed to be accomplished by 2023.

Highlighting importance of value-added exports, Yilmaz said, “We will realize the export targets in line with higher quality, conforming to more standards, high income products, as well as more innovative, branding, design. In this scope, the textile sector will contribute to accomplish this target, not through more kilos and more tons. These targets would not be only realized via Istanbul, Ankara, Izmir. These provinces have prominence, but we should try to activate all provinces in this issue. Page 7

C

MUSIAD members improve position in 2013

“Globally 2014 to be better”

IDDMIB mobilizes the ideas remain on the dusty shelves to enter into force

T

he positive breeze in the global capital markets will affect positively Turkey as well, globally 2014 will pass better than 2013, Vahdettin Ertas, President of Capital Market Board (SPK), said.

Vahdettin Ertaş Ertas said exceptional fluctuated development has happened in the global capital markets within recent ten years. The reason of this is a direction related with FED policy, trend change. Page 7

ASDAQ OMX Group (and Borsa Istanbul A.S. have concluded a wide-ranging agreement, which includes the delivery of market-leading technologies and advisory services to Borsa Istanbul, and NASDAQ OMX taking an equity stake in Borsa Istanbul.

Key aspects of the agreement include the provision of NASDAQ OMX’s most advanced and com-

plete selection of market technology solutions and advisory services, based on the globally market-leading Genium INET suite and all associated platforms and applications, with regional resell rights and also eventual self-sufficiency for Borsa Istanbul. Further, the parties are to work closely together to cement Borsa Istanbul’s position and brand as the capital markets hub for the Eurasia region,

serving global issuers, investors, and corporations. As part of the agreement, NASDAQ OMX will take a five percent equity stake in Borsa Istanbul, with an option to increase this by an additional two percent; NASDAQ OMX will also receive a series of cash payments. The parties’ forward cooperation pathway may also include a minority participation

by Borsa Istanbul in NASDAQ OMX.

T

he growth expectation in 2014 would be bigger than the previous year, according to the survey conducted by Turkey’s Independent Industrialist and Businessmen Association (MUSIAD). The association also highlighted that reviving of the economic uncertainty in Europe; especially Turkey’s economy would be affected positively through foreign trade channel. In the scope of the medium term plan either by the international institutions or the expectation of MUSIAD, the foreseeable growth of Turkey in 2014 can be above of the previous year, the survey indicated. The survey continued, “Turkey grew fastest than the countries in the Eurozone. A positive development was enjoyed in the private sector’s investment expenditures, in the 3rd quarter increased 5.3 percent. Despite internal and external shocks, the increase in the investment was a strong message showing the private sector’s confidence in the market.” Page 5

Astana Chamber of Commerce pays a visit to ATO

Salih Bezci, ATO Chairman (R)

C

hairman and members of the Board of Astana Chamber of Commerce, which was founded two months ago, visited ATO Chairman of the Board in his office. Dauren A. Zhaksybek, Chairman of the Board of Astana Chamber of Commerce said that they arranged a visit to Chamber of Commerce of the capital city of Turkey in order to gather information to give a direction to their works right after they completed the foundation period. Page 5

New rules for railway development and greener growth

T

T

he Head of Istanbul Ferrous and Nonferrous Metal Exporters’ Association (IDDMIB) Tahsin Oztiryaki stated, not only they suffice supporting the new ideas and new patent studies, but also would reveal the patents, which did not meet with the production process, remain idle on shelves to the economy. In recent years, attracting attention with the contest of ‘Metallic Ideas’, which is regarded as the peak of events and innovative studies are carried out by the Istanbul Ferrous and Nonferrous Metal Exporters’ Association (IDDMIB) has acted to pioneer for one more unexpected work. Page 5

t ion , a n d provide the look.

But faced with market turbulence and a recent slowdown in economic activity, Ramirez Rigo said, Turkey would do well to raise domestic savings, make progress on key structural reforms, and take steps to guard against possible shocks.

Q- Could you briefly review Turkey’s economic performance so far in 2013?

A- Economic activity picked up in the first quarter of this year due to successive interest rate reductions by the central bank and increased public sector infrastructure spending. The first half of the year saw growth accelerate to 3.7 percent, supported by the policy stimulus. The increase in economic activity was accompanied by an increase in imports which, together with still-subdued growth in exports, has led to a widening current account deficit. Page 8

IDDMIB Chairman Tahsin Oztiryaki (L) presents awards of the firms

he new Sector Understanding on Export Credits for Rail Infrastructure adapts the OECD’s widely-accepted rules on export credits to the sector-specific financing conditions of new railway infrastructure projects. The innovative and unique new framework is designed to meet the variable needs of public authorities and exporters, in both advanced and emerging economies, while helping promote the use of rail as a viable alternative to road and air transportation, in the context of energy scarcity, fuel prices and climate change. Page 4

Made in Turkey Economic Newspaper, February 2014

Letter From The Editor Mehmet Soztutan Editor-in-Chief

Commitment to sustainable growth

W

e think that Greeks have no choice but to stick with a painful austerity program dictated by its lenders or face an exit from the euro zone that would devastate the economy, boost inflation and generate new problems.

What about Turkey? Commitment to sound economic policies since 2002 has placed the Turkish economy in a good position to embark on a sustained path of faster growth.

Progress has been achieved in reducing inflation and real interest rates, improving public finances, restructuring the financial sector, improving the business environment, and reforming the public sector.

The OECD projected that Turkey’s economy would grow 3.3 percent in 2012 and 4.6 percent in 2013, despite the crisis prevailing in the EU. The Turkish government’s growth forecast for this year is more than 4 percent, and the 2013 forecast in the government’s medium-term program stands at 5 percent. According to OECD’s, the ratio of Turkey’s current account deficit to its gross domestic product would be 8.9 percent in 2012 and 8.4 percent in 2013.

The report also said that the acceleration of structural reforms in production and business markets would help reduce and re-balance the pressure of inflation.

This year will be a credibility test for the Central Bank, said Governor Erdem Başçı, adding that Turkey is ready to boost growth with its domestic dynamics, which was the reason the Central Bank has mainly maintained a tight monetary policy.

The Turkish Central Bank prefers its monetary policy remains tight and will not allow deterioration in price stability, the governor noted at a meeting organized by the Turkish Exporters’ Assembly (TİM) in Istanbul.

The bank is confident that year-end inflation will be at 6.5 percent and would prefer the Turkish Lira remain a “strong currency,” Başçı added. “The relative value of the lira will continue to be better than other currencies because the Turkish Central Bank thinks this will be right for price stability,” he said.

We are confident that economic stability would prevail in Turkey.

Beautyeurasia Istanbul increases its success with ITE, a leading worldwide exhibition organizer

E

urasia’s number one, world’s leading cosmetics, beauty, hair exhibition – BeautyEurasia joined UK based ITE Group Plc family.

BeautyEurasia is stronger than ever after joining its power and network with ITE Group. ITE is the leading trade exhibitions and conferences organizer in the new market economies of Russia, Ukraine, CIS, and Eastern Europe which has over 1.100 staff in 40 offices worldwide. The group will contribute to each year growing visitor and exhibitor numbers of BeautyEurasia.

ITE organizes over 230 exhibitions and conferences each year focusing on industries such as food, tourism, automotive, construction and building, energy-oil and gas. ITE Group’s Turkey Office (EUF) has been organizing numerous events for the last 15 years. World Food Istanbul, Ipack – packaging, ANKOMAK - Construction Machinery, IFF- Furniture and Emiit- the biggest travel/tourism exhibition organized by EUF’s sister company Ekin and Turkeybuild organized by YEM, another subsidiary of ITE. In recent years ITE Group has also been focusing on the cosmetics/beauty industry, strengthening its beauty event portfolio; Ukraine’s most important exhibition “Intercharm” and “Estet Beauty Expo”, BeautyExpo in Azerbaijan, far east region’s main beauty exhibitions “Cosmebeaute” – organized in Malaysia, Vietnam, Thailand, Indonesia and Myanmar, and pharmaceutical industry’s important event - Pharmtech held in Moscow / Russia. ITE has enriched its “beauty events” with exhibitions organized in Caucasus region of Russia, Krasnodar, Novosibirsk in Siberian region. Recently BeautyEurasia Istanbul has joined the chain as flagship event.

ITE Group’s worldwide offices in Rus-

sia’s cities including Moscow, St. Petersburg, Ekaterenburg, Novosibirsk, Krasnodar, Kazakhstan - Almaty, Astana, Aktau; Kyrgyzstan - Bishkek, Uzbekistan - Tashkent, Azerbaijan - Baku, and Ukraine – Kiev, United Arab Emirates - Dubai, Malaysia and India will significantly increase the visitor numbers coming from post Soviet Union countries and Asia – Pacific region as well as Gulf countries to BeautyEurasia 2014.

ITE’s large portfolio of World Food exhibitions in different regions such as Turkey, Russia, Kazakhstan, Azerbaijan and Ukraine will surely increase the professional visitor profile of BeautyEurasia 2014, which will enhance the opportunity to BeautyEurasia 2014 exhibitors to meet huge retail chains.

Additionally, ITE’s experience of organizing travel events in Moscow, Baku, Almata, Kiev and Istanbul will be another advantage for BeautyEurasia.

By inviting travel/tourism exhibition’s professional visitors, mainly in spa and wellness industry; BeautyEurasia 2014 visitor profile will certainly increase.

With all these promotion activities BeautyEurasia 2014 targets to increase visitors not only from all Africa but also from post Soviet Union countries and Far East.

BeautyEurasia’s last edition hosted 475 exhibitors from 46 countries and more than 26 000 visitors from 99 countries.

BeautyEurasia team and ITE Group continue its worldwide promotion activities.

This new synergy will increase BeautyEurasia 2014’s visitor and exhibitor numbers at least by 20%.

For exhibiting or visiting please contact: T– 0090.212.603 33 33 e – info@beautyeurasia.com See you on June 12th -14th of 2014 at our new venue Istanbul Expo Center, IFM (Halls -9-10-11)

2

Letters to the Editor turkey@ihlas.net.tr The euro zone The 17 nations using the euro must cooperate more closely and prevent any country defaulting on its debt as that would jeopardize the region’s healthy economies, Turkish Deputy Prime Minister Ali Babacan said.

“No country should be allowed to default because if any country defaults, it is going to hurt overall confidence, and would open the door for more countries to follow the same route,” Babacan said, “It would increase the risk premium of the whole euro zone, and even those countries that have relatively healthy public finances would be hurt,” he noted.

Exports to the euro area are important for the Turkish economy. The Turkish government may have to lower its 4 percent growth forecast for this year if the situation in the currency bloc worsens.

B. Hall/ Frankfurt

Greece’s credit rating Years of unrestrained spending, cheap lending and failure to implement financial reforms left Greece badly exposed when the global economic downturn struck. This whisked away a curtain of partly fiddled statistics to reveal debt levels and deficits that exceeded limits set by the eurozone.

Greece’s credit rating -- the assessment of its ability to repay its debts -- has been downgraded to the lowest in the eurozone, meaning it will likely be viewed as a financial black hole by foreign investors. This leaves the country struggling to pay its bills as interest

rates on existing debts rise.

M. Hagg/ Brussels

Socializing thecosts..

Some of the bail-outs have also been accompanied with charges of hypocrisy due to the appearance of “socializing the costs while privatizing the profits.” The bail-outs appear to help the financial institutions that got into trouble (many of whom pushed for the kind of lax policies that allowed this to happen in the first place). Some governments have moved to make it harder to manipulate the markets by shorting during the financial crisis blaming them for worsening an already bad situation.,

D.Fren/ New York, New York

Worries about Euro Worries that Greece might default on its debts or even leave Europe’s currency union have deepened since May 6, when Greeks voted in shocking numbers for a left-wing party willing to tear up Greece’s $170 billion international bailout agreement. These days, even though 80 percent of Greeks say they want to stay with the euro, talk of “drachmageddon” can be heard in conversations all around Athens. Democracy has never been the European Union’s strongest suit. It’s an institution where the unelected and the barely accountable have always called the shots – and electorates are routinely made to vote again if they get the answer wrong in a referendum.

B. Harrng/ Brussels

EMS-Innovative in approach, outstanding in quality

I

STANBUL- “We operate under the motto of innovative in approach, outstanding in quality” say EMS officials.

Actually, EMS Emergency Mobile Systems and Hospital Materials Industry and Trade Inc. has turned out to be a global player in its area of specialization. In addition to special customer requests and project-based designs, EMS’s manufacturing line focuses on the following product groups: -Diverse range of ambulance production, including intensive care ambulances, snowtrack ambulances, wheeled snowtrack ambulances -Ambulance equipments -Mobile Health Care Vehicles (Van, midibus, bus, truck, container types) - Mobile Command Control Ve-

hicles -National Medical Rescue Teams Tool (Designed for operation in disasters and extreme cases) - Mobile Laboratory Vehicles - Mobile Screening Vehicles -Ambulance stretchers -Stretcher platforms -Medical devices - Medical materials By keeping the pulse of the sector, EMS has been participating in major medical fairs and exhibitions for years. This month, EMS participates in the Arab Health Exhibition and Congress (27-30 January 2014 Dubai International Convention & Exhibition Centre) to display its emergency mobile vehicles, equipment and systems.

EMS puts emphasis on R&D in order to serve its customers in ef-

ficient manner. The ambulances, medical products and equipment manufactured by EMS comply with the international technical standards.

According to EMS officials, innovation and dynamism have become a way of life for us in order to survive in the competitive markets.

They noted: “Innovation is a major business priority; simply put, companies become more competitive when they have a clear process that produces a reliable stream of new and innovative products. As known, permanent change is the rule of the game in the global markets.” “Competitiveness at the domestic level has been replaced with competitiveness on a global scale. Technology and competitive power would always be the two keys for the survival of the sector. Therefore, in line with growing demand from abroad, we have been diversifying and expanding our export markets.

We think that the Arab Health Exhibition and Congress would pave the way for a series of new business opportunities.”

The Arab Health Exhibition attracts great interest The Arab Health Exhibition and Congress (27-30 January 2014 Dubai International Convention

& Exhibition Centre) hosts a wide range of visitors across the spectrum of healthcare including medical manufacturers, general practitioners, hospital doctors, hospital managers, hospital nursing staff, hospital technical managers, laboratory managers, physiotherapists, medical assistants and dealers and distributors.

Arab Health is the largest healthcare exhibition and congress in the Middle East and Asia, attracting visitors and delegates from countries and regions that include Middle East, North Africa, Asia and Europe. Visitors will benefit from meeting global industry leaders from regional, national and international organisations over the four days, showcasing an extensive range of the latest products and services all under one roof.

Each year, Arab Health becomes an even more international event, attracting healthcare and medical professionals from the region as well as from across the globe.

Arab Health is for all healthcare professionals across the globe.

By attending Arab Health, you have the opportunity to: -Source new suppliers, products, information and services -Keep abreast of all the latest changes occurring across the healthcare sector -Meet the key decision-makers from local government authorities as well as leading private sector healthcare organisations / institutions -Compare thousands of products and services under one roof -Network with major suppliers, healthcare professionals and healthcare providers The Arab Health Congress is a scientific and educational platform for healthcare professionals who wish to remain up-to-date in their area of specialisation.

Intravenous low energy laser treatment: No more organ loss! Let diabetics not lose toes!

I

ntravenous low energy laser treatment is a treatment, which has been used in Europe countries frequently and a very new one for our country, and it is among the most recent and important treatment in diabetic feet. The sessions in intravenous low energy laser treatment is arranged in accordance with embolism and the level of embolism, without any blood or knife. Low energy laser is applied directly through veins.

The laser light is absorbed by blood cell especially by hemoglobin under the effect of blood circulation.

It goes to oxygen free area with the help of hemoglobin or blood cells. Thus, it provides oxygen free area with high level of oxygen and it feeds the bloodless and oxygen free tissue.

The tissues fed as a result of laser treatment form thin capillary vessels in

time. As a result of these thin capillary vessels, the tissues are fed and they gain blood under the effect mechanism of laser.

This way, open leg injuries are closed easily in a short time, without having to cut the legs or organs of the patient. Leg swelling reduces and the pains end.

As a result of this treatment, the average sugar analysis decrease and the patients keep up with the ordinary life increasing their life standards with their own legs.

Combined Intravenous Oxygen and Laser Treatment:

In diabetic foot treatments, in case there is embolism, critical limb ischemia in feet related to diabetes and arteriosclerosis, combined intravenous low energy laser treatment and intravenous oxygen treatment is applied to the patients.

Thus, the sharp ache, which is related to anoxia of the tissue, which is seen in critical ischemic limb syndrome, and the patients quickly go back into circulation.

Cardiovascular Surgery Specialist Op. Dr. Cafer Abbasoğlu

Made in Turkey Economic Newspaper, February 2014

3

Turkish fruit exports up 16 percent in 2013 Turkish fruit exports jumped 16 percent to $708,5 million in 2013; grapes were the highest exported fruit from Turkey.

T

urkish fruit exports rose 16 percent in 2013 over the previous year, reaching $708.5 million, according to the Turkey Fresh Fruit and Vegetable Exporters Associa-

tion (TYMSIB).Grape exports experienced a 15 percent rise in profit, reaching $187 million, making it the highest exported fruit in Turkey.

Turkish cherries’ export amount and value

dropped 3 percent last year, but took the second place in the export sector. Cherries constituted 22 percent of the fruit export sector with $155 million.

Russia constituted 33 percent of the fruit export sector in terms of value and amount in 2013, featuring the highest fresh fruit exported country.

Although the amount of exports to Russia dropped two percent, the value of the exports rose 14 percent and reached $235 million.

Countries receiving most Turkish fruits exports following Russia were Germany with $127 million, Bulgaria with $43 million and Iraq with $40 million and Ukraine with $31 million. The export income of grapes increased 15 percent to $188 million. Despite decreasing 3 percent as amount and value, the export income of cherries became $155 million accounting for 22 percent of the sector’s total exports. Pomegranates, which increased 59 percent as amount and value 49 percent, ranked third in the exports of the sector following cherries. Pomegranates followed by the exports of apples, apricots and figs respectively in the exports.

Eastern province of Van aims $1 billion of exports

T

urkey’s eastern province of Van can achieve exports $1 billion, when border gates will be opened in addition to removal of the hindrances, Necdet Takva, Chairman of Van Chamber of Commerce and Indus-

try, said.

In his statement, Takva said that Van has borderline with Iran in 280 kilometers length, but regarding some problems trade was not in the wanted level between our city and Iran.

“When we compare with the years 2012 and 2013 each other in the aspect of exports volume, reduction is regarded in exporting firms and increase in importing firms. The exports of Van were $21,7 million in 2012; as for the first 11 months of 2013 the exports became $21 million. We have 280 kilometers borderline along with Iran, so our export potential must be improved. For this, our demand about opening of

specialized customs office should be reviewed and if there are problems on the ground, they should be removed,” he recorded.

The export figure of $21 million does not match with the potential exports of Van province, in return worth $48 million of imports were made, Chairman Takva said, adding that the second border gate should be opened without losing time. Takva also stated they were working to contribute to $500 billion of Turkey’s export target in 2023. He highlighted that if the troubles related to border gates would be removed, the businessmen in Van could achieve exports worth $1 billion by 2023.

Baghdad welcomes KRG oil, gas agreements with Turkey Iraqi Deputy PM Hussain al-Shahristani welcomes recent deals between Turkey and the KRG, but stresses that Baghdad ‘shouldn’t be marginalized’ ‘We support and seek to increase our oil and future natural gas exports to Turkey,’ al-Shahristani told Anadolu Agency in an interview.

Iraqi Deputy Prime Minister for Energy Hussain alShahristani has welcomed recent agreements between Turkey and the Iraqi Kurdish administration on oil and natural gas exports to Turkey, provided that the central government in Baghdad is not marginalized in any such agreements.

“We support and seek to increase our oil and future natural gas exports to Turkey,” al-Shahristani told Anadolu Agency in an interview. “This is something that we seek to achieve.”

However, al-Shahristani stressed that the quantities of Iraqi oil exported to Turkey must be known to the central government, oil must be sold at international market prices, and revenues from oil sales must be channeled to the account of the Iraq Development Fund in New York, in line with previous U.N. Security Council resolutions.

Meanwhile, Turkish Energy Minister Taner Yıldız told reporters during his visit to Antalya that test flows in Iraqi Kurdistan’s crude oil pipeline to Turkey had started, adding that one of the pipelines had not been working for a long time and was thus being tested.

“In order to understand destruction and corrosion in the empty pipeline, we sent crude [from northern Iraq].

We sent crude to the existing tanks there. We made our first attempt , and there haven’t been any problems yet,” Yıldız said.

He visited Iraq two weeks ago to discuss means of bringing energy cooperation between Turkey and Iraq back to normal after a two-year chill. The Turkish government has signed a package of oil and natural gas deals with the Kurdistan Regional Government (KRG) of northern Iraq, which will bring Iraqi oil and natural gas to international markets via pipelines crossing Turkish territory.

A Turkish company will start working on 13 different sites in the Iraqi Kurdish region, while an oil and natural gas pipeline will help raise oil exports from the KRG to a million barrels a year. Exports are due to

commence in 2017.

Al-Shahristani said Iraq was mindful that Turkey needed more oil to keep the engine of its economic and industrial growth going. He also stressed that apart from being a major oil exporter, Iraq would soon become a major natural gas exporter as well.

“Iraq views Turkey as an important neighbor with whom it has historic relations. We view relations with Turkey through the prism of integration, not only cooperation in specific fields,” al-Shahristani said.

He went on to emphasize that decisions on oil and natural gas exports must be made by the elected Iraqi government because oil and natural gas resources were owned by the Iraqi people, not by a specific region. He also welcomed what he described as the desire of KRG officials to sit with central government officials to settle pending disputes, particularly on oil.

Al-Shahristani said his government was keen on solving pending disputes in accordance with the conditions it set for the exportation of Iraqi oil.

He also noted that Ankara was seeking to encourage Turkish companies to work in Iraq. “We told them that Iraq has an ambitious plan to diversify its exports. We do not want to depend on one source only,” al-Shahristani said.

Responding to reports that Baghdad had restricted visits by Turkish officials to the Kurdish region, alShahristani said foreign officials always needed to get permission from the central government first.

“Any foreign official seeking to visit any part of Iraq on an official visit must first contact the foreign ministry.

Iraq does not allow planes carrying foreign officials to cross its borders without official permission from the foreign ministry,” he said, adding that the Baghdad government was keen to deliver the same message to Yıldız during his recent visit.

He said Yıldız had been told that he was most welcome in the capital first and was then he free to visit any region in Iraq.

“This applies to all foreign officials who visit our country on a formal visit,” al-Shahristani said.

Istanbul gets more tourists each year Istanbul attracts more tourists in comparison to last year’s four months.

I

stanbul has received 2.9 million tourists within four months. This figure marks an increase of 21 percent when compared to 2012.

According to the information taken from the Culture and Tourism Directorate, the first four months of tourist figures have increased. The city received a total of 2.4 million last year between January and April.

This year it has seen a significant rise.

In April the figure rose by 14 percent to become 936,961. According to the latest data taken from the Culture and Tourism Ministry of Turkey, Topkapı Palace is the most-visited monument in Turkey. The palace attracted the highest number of visitors during the first two months of 2013. After Topkapı, the Mevlana Museum ranked second on the list.

Antalya achieves export target

A

ntalya Exporters’ Union has achieved its export target and reached $1 billion 535 million for 2013. “As Antalya Exporters’ Union, we have achieved our exports over target which set as $1,5 billion for 2013. The provinces of Antalya, Burdur and Isparta have accomplished extra exports which had not been seen in their history, so we are proud and happy,” Mustafa Satici, chairman of Antalya Exporters’ Union, said.

Satici recorded the expected recovery in the global economy has not realized somehow, adding however they increased the export rate some 22 percent in 2013 over the last year.

He noted exports of fresh fruit and vegetables accounted for $533,2 million with 11.61 percent rise. As for the mining sector, it contributed with 80 percent export rise as the second item in the exports of the union. “Earthenware, chemical, wood and forestry products, ferrousnonferrous metals and textile sectors followed these two sectors. The air-conditioning and automotive industries also increased their exports in 2013. We congratulate our exporters with my deep heart regarding their successes in the exports,” he recorded. The union exported mostly to Russia, China and Germany in 2013.

The chairman Satici said that they believe the good situation would continue in 2014 too. Antalya Exporters’ Union has set the export target as $2 billion for 2014.

Exports from Aegean Region make faces smile

T

he Aegean Region’s exporters accomplished $12 billion 179 million of exports increasing 7 percent in 2013 over the previous year.

The Aegean Exporters’ Association (EIB) posted its exports worth $6 billion 776 million as the industrial products in 2013.

As for the agricultural exports boosted 15 percent to $4 billion 274 million.

Mining exports reached by $1 billion 115 million with 20 percent rise.

While 11 of 12 exporters unions boosted the exports, only the Aegean Textile Exporters’ Union decreased 4 percent in 2013 over the previous year.

The EIB Coordinator Chairman Mustafa Turkmenoglu stated they were proud of their unions that exceeded first time $12 billion of exports. Turkmenoglu reminded the unions accomplished exports over $1 billion for 7 months in 2013.

In the statement said that

Turkey’s economy grew 4 percent in the first 9 months, for the years 2014-2015, the growth is expected to be between 3.5 – 4.5 percent. Paralleling this expectations, Turkey’s exports are foreseen to be $166,5 billion, as for the year 2015, the objective is $184 billion. The Aegean Exporters aim to achieve $13 billion of exports in 2014.

Turkmenoglu continued, “In the last month the foreign currency increased 10 percent. This kind of

movements damages all balances. We do not want extreme raises both either in TL or foreign currencies. Our wish is a competitive and stabile foreign currency. Along with the foreign currency increase, the price increases in the inputs are not possible to get back when the foreign currencies turn downward trend. We do not pay such an unjust cost for 11 months regarding the fluctuations in foreign currencies which happen in a short time.”

NASDAQ OMX and Borsa Istanbul sign landmark deal Continued From Page 1 “We are delighted to have put in place a highly impactful global partnership with NASDAQ OMX, anchored on the objective of together serving the financial community worldwide,” said Dr. Ibrahim M. Turhan, Chairman and CEO of Borsa Istanbul. “I am confident that our combined team, powered by one of the most advanced technology suites available in the world today, will consistently offer cutting edge trading facility, innovation, platform breadth, and flexibility to customers worldwide.”

The partnership positions

Borsa Istanbul as a leading, integrated, multiasset class exchange that operates a best-of-breed platform serving issuers, investors and traders globally. Borsa Istanbul will integrate and operate NASDAQ OMX’s suite of world-class systems for trading, clearing, market surveillance and risk management, covering all asset classes. The agreement underscores a long-term commitment that will benefit member firms and customers of both exchanges.

“We are pleased to be working side-by-side with Borsa Istanbul as they evolve toward

becoming an international hub that will attract global investors to the Eurasia region,” said Bob Greifeld, CEO, NASDAQ OMX. “Building and powering the world’s capital markets is at the heart of NASDAQ OMX’s Global Technology Solutions business, and we are thrilled to be partnering and investing in the Turkish exchange.”

“This new partnership is a milestone for our market technology business,” said Lars Ottersgård, Senior Vice President and Head of Market Technology, NASDAQ OMX. “By delivering our entire suite of technology solu-

tions, including our advisory services, to Borsa Istanbul we show the depth and breadth of NASDAQ OMX’s global offering. Establishing global capital markets is core to NASDAQ OMX’s mission and we are pleased to be Turkey’s partner in building efficient and effective functioning markets.”

The contract is a culmination of substantial work between the parties, following their signature of a first indicative agreement in July 2013.

Borsa Istanbul is advised

by Sardis Capital Limited; legal counsels are Turunc and Linklaters.

Made in Turkey Economic Newspaper, February 2014

Outlook cautiously optimistic for 2014 İletişim Magazin Gazetecilik Sanayi ve Ticaret A.Ş.

Adına Sahibi ve Sorumlu Genel Yayın Müdürü (Publisher and Editor in Chief): Mehmet Söztutan (msoztutan@img.com.tr) Editor Ibrahim Kupeli

(ikupeli@img.com.tr)

Advertising Sales Staff: Talha Elitez,

talha.elitez@imgajans.com

Adem Sacin,

Sedat Karadayı,

Recep Arslantaş, Advertising Consultants Emir OCAL

( eocal@img.com.tr ) Correspondents: Anıl analan

(anil.analan@img.com.tr) Technical Manager: Tayfun Aydın

(tayfun.aydin@img. com.tr) Chief Accountant: Mustafa Aktas

(mustafa.aktas@img. com.tr) Subscription: İsmail Özçelik

(ismail.ozcelik@img.com.tr) HEAD OFFICE: İhlas Medya Plaza, 29 Ekim Cad. No: 23 34520 Yenibosna - ISTANBUL / TURKEY Tel: (0.212) 454 25 00 Pbx Fax: (0.212) 454 25 98 www.img.com.tr E-mail: img@img.com.tr LIAISON OFFICES: BURSA: Ömer Faruk Görün Buttim D Blok Kat: 4 No: 1267 BURSA Tel: (90.224) 211 4450 , 51 Fax: (90.224) 211 4481 PRINTED BY İhlas Gazetecilik A.Ş., Merkez Mah. 29 Ekim Cad. İhlas plaza No: 11/41 pk: 34197 Yenibosna Bahçelievler ISTANBUL / TURKEY Tel: (0.212) 454 30 00 Fax (0.212) 454 34 83

IHLAS MAGAZINE GROUP Please mention “Made in Turkey” when writing to advertisers

E

conomic growth stays atop of decades of double digit expansion. the agenda across the world. Japan’s economy is enjoying a vigorous Economy means the system of rebound, but will lose steam in 2014 as production, distribution and fiscal policy tightens… consumption.

The basic troubles, which prevent ecoAs long as these three legs of the econo- nomic activities across the world, are exmy do not operate healthily, at that time perienced in the Middle East and Africa pains appear in the system. in recent years.

The foremost economies of the world Some of the Arab Spring countries, which seemingly appraise the event cautious remain unstable with regard to political optimistic regarding not having enough uprising, expected to experience economstability. ic difficulties in 2014 too.

After seven years passed since appear- Dramatic strife and atrocities in some of ance of the global financial crisis, still the countries in Africa, in addition to Syrthere is no entire recovery for the global ia and Iraq are increasingly converting to economy. an impasse and chaos. Along with huFurthermore, this illness situation in the manitarian dignities, economic activities global economy would continue regard- have also collapsed in these countries. ing shifting in the ecoOver ten years Iraq nomic system according to could not get rid of the interpretations. strife. We can also add Some say the big structural Afghanistan and so on problems and imbalances to this category. Without that have dogged the world finding solution to these economy have not gone principal problems, away. would it be possible to Maybe this stems from let the global economy lack of the institutional or reach a stable condition? holistic approach in terms In conclusion, despite of the range of events! some negativeness in When the events are rethe global economy, Ibrahim Kupeli garded wholly, solving the the growth is expected ikupeli@img.com.tr problems could be easy. to increase in 2014 after The key problems in the global economy having been stuck in low gear in 2013, that remain intact on the agenda of the according to the IMF’s latest World Ecoworld are listed as high unemployment, nomic Outlook (WEO). in addition to high deficits and debt as a So, 2014 expected to be better year than concern in many countries…

2013; IMF expects global economic Currently, Europe’s debt crisis is not seen growth 3.7 percent in 2014, from roughfar from over. In Euro zone, growth would ly 3 percent in 2013 and to rise to 3.9 be slowing in the 18 nations that use euro percent in 2015. with unemployment likely to inch higher As for Turkey’s growth, it is foreseen to in the new year. achieve some 4 percent in 2013.

In the recent years following the global This performance is regarded among economic crisis, emerging market econo- the best compared with peer counmies were regarded as the lifeguard for tries; the prediction for 2014 would be the global economic development. similar percentage in 2013 or over 4 But they are also exposed to a greater percent... risk, because of general conjuncture.

However, the growth of Turkey in 2014 From now on, the emerging economies would exceed the projected percent parcannot be able to carry the entire burden ticularly depending on the positive deof the global economy. velopments in the region.

Because of the second big economy of the Finally, the global economy is foreseen world China’s economy continues to slow. to be better in 2014 than in 2013, but China’s economy has decelerated after outlook is cautiously optimistic.

Humor

4

THOUGHT OF THE MONTH

“Democracy is a device that ensures we shall be governed no better than we deserve.”

I

f you’re looking for a job or looking to hire, you need a smile break. Here are memorable interview moments: • A job applicant challenged the interviewer to an arm wrestle.

• Candidate announced that her long-term goals were to replace the interviewer.

• Applicant said if he was hired he would demonstrate his loyalty by having the corporate logo tattooed on his forearm.

Unusual questions What is it that you people do at this company?

Why aren’t you in a more interesting business?

Why do you want references?

I know this is off the subject, but will you marry me?

Unusual statements Once a week, I usually feel hot all over.

I am fascinated by fire.

I never get hungry.

I would have been more successful if nobody would have snitched on me.

I think I’m going to throw-up.

No matter how badly your last job interview went, it probably wasn’t this bad...

• Said he was so well-qualified [that] if he didn’t get the job, it would prove that the company’s management was incompetent.

• Stretched out on the floor to fill out the job application.

• Wouldn’t get out of the chair until I

would hire him. I had to call the police.

• Pulled out a Polaroid camera and snapped a flash picture of me. Said he collected photos of everyone who interviewed him.

• An applicant came in wearing only one shoe. She explained that the other shoe was stolen off her foot in the bus.

What job am I applying for, anyway?”

“My resume might make it look like I’m a job hopper. But I want you to know that I never left any of those jobs voluntarily.”

“I will definitely work harder for you than I did for my last employer.”

“I don’t think I’m capable of doing this job, but I sure would like the money.”

I demand a salary commiserate with my experience.”

“Instrumental in ruining entire operation for a chain store.”

“Received a plague for Salesperson of the Year.”

“I am loyal to my employer at all costs....

Please feel free to respond to my resume on my office voice mail.”

“It’s best for employers that I not work with people.”

“The company made me a scapegoat, just like my three previous employers.”

“You will want me to be Head Honcho in no time.”

“As indicted, I have over five years of analyzing investments.”

THE ECONOMIST What is your advise?

Well!

Try not to become a man of success but rather to become a man of value!

New rules for railway development and greener growth New international rules on state financing of rail exports will boost the development of cleaner transportation infrastructure and help countries meet green growth objectives, the OECD said.

T

Continued From Page 1 he Rail Sector Understanding (RSU) lengthens repayment periods for contracts involving an overall value of more than SDR 10 million ($15.3 million). Terms provide for repayment up to 12 years for transactions in High-Income OECD countries, subject to conditions aimed at complementing the private sector, and of up to 14 years for transactions in all other countries.

The RSU is applicable to export contracts for essential rail infrastructure assets, including rail control, electrification, tracks, rolling stock, and related construction and engineering work.

“Offering wider terms for the use of export credits in the rail sector

will contribute to the formation of new railway projects, as well as the rehabilitation of existing rail infrastructure, which will reduce road traffic congestion and related carbon emissions and help countries achieve their sustainable growth objectives,” said David Drysdale, head of the OECD export credit division.

The new Rail Sector Understanding took effect on 1 January 2014, for a four-year trial period. Its terms are applicable to an estimated accessible market - projects not reserved exclusively for domestic suppliers – expected to top $120 billion annually over the 2015-17 period.

The OECD is at the centre of multilateral efforts to harmonize state financing of exports. The Arrangement on Officially Supported Export Credits, which came into force

in 1978, plays an important role in the multilateral trading system. It helps ensure that both OECD and non-OECD exporters compete on the price and quality of their goods and services, not on the support received from governments. The OECD export credit rules serve as a benchmark for governments, industry and the financial sector, and are embedded into WTO subsidy rules.

The Participants to the Arrangement on Officially Supported Export Credits are: Australia, Canada, the European Union, Japan, Korea, New Zealand, Norway, Switzerland and the United States. Beyond the new Rail Sector Understanding, sector-specific export credit rules also exist for aviation, climate change projects, nuclear power plants and shipbuilding.

Turkish leather sector atop in wooly leather

T

urkish leather sector ranks atop in fury and suet leather, in other words in wooly leather, but the market share is low regarding these kind of products generally are used in cold countries, Mehmet Ali Dinc, chairman of Turkish Leather Clothing Association (TDKD), said.

In his assessment about the sector Dinc stated, “Turkish leather sector positions after Italy and Spain in normal clothing leather which is called “Zig”, the world market mostly in the monopoly of the brands. This situation makes up price pressure. We have let the

subgroup buyers caught to Pakistan, India and China. However, all brands which are called A+ prefer Turkish leather products in the world.” Dinc remarked the challenges existing in the sector such as rising of the raw leather prices, increase of input prices and financing source.

“Generally there is a trouble in the sector. We think we can be able to overcome this in a short time. In Pakistan, a product is cost to $40-50; as for us, the labor cost is $100. But our products are distinctive. As Turkish leather sector, we have begun to sell A(+)

products to China. Our products see interest in the critical meaning. According to a research, 300 million people in China spend limitlessly. This means an America. Today, we can only address 8 percent of Russian.”

“We support Turkish designers in the leather sector at foreign shows. We also organize training programs and contests to raise the new designers for the sector. Our aim is to be the most preferred and admired brand. With this purpose, we maintain our promotion program in the Far East in Europe too.”

Made in Turkey Economic Newspaper, February 2014

5

MUSIAD members improve position in 2013

P

Continued From Page 1 ointing out dependency of intermediate goods on imports was a shackle in front of growth, the survey said; “Attaching to these, the current account deficit challenge also keeps its stance on the agenda. Current account deficit per annum is at the level of $61 billion in 2013. Our members protect their current position or developed their firms in 2013.

The survey was conducted with 868 members of the association and asked how they appraised the year 2013 as every year. 42% of the members responded ‘good’ to that question, only 20% evaluated 2013 as poor. This shows that 80% of the members both protected their current position and developed their firms in 2013.

Along with recovering of the domestic market, 54% of the members have raised their domestic sales, as for the members that responded their sales decreased

were 18%; 28% of the members’ domestic sales remain the same.

As for the question, how foreign sales changed, the 30% of the members said that they increased their foreign sales, 13% said their exports reduced. So, 87% of the members protected their foreign market or increased in 2013.

Turkish Lira lost its value some 20 percent against dollar within last one year. When asked about this issue, while 59% responded this question negative, only 12% stated the fluctuation in the currency affected positively. 29% of the members were not affected from the fluctuation in 2013. 45% of the members raised employment, 37% did not change it and 18% reduced the number of employment. 79% of the members did not get incentive, 21% benefited from the incentive.

Foresee for 2014 The 64 percent of the members foresee to increase their investment in 2014, 26% will remain the same. In the third quarter of 2013, shifting into positive the private sector’s investments will go on the increase trend in 2014 too. The number of employee will increase in 2014 as in 2013.

60% of the members responded to increase employment figure in 2014, only 7% predicted a reduction in employment; 33% will continue with the same staff rate. As for the question, ‘how do you expect 2014 when make a comparison with 2013? The responders said that 2014 would pass better, 21% stated that would pass similar with 2013. The expectations of the members are

in the positive side. Despite all shocks both from the home and abroad in 2013, our country has increased its power in terms of economy and enlarged its effective area in the foreign policy, according to the survey.

Suggestions of MUSIAD In order to reduce energy dependency we welcome pleasingly the developments in energy diversifying policy such as nuclear, alternative energy resources, cheap oil and natural gas accession, as well as the energy stock-exchange. In order to increase economic performance, an approach would be necessary to recover the domestic market performance and increase exports stay in the forefront. In addition to importance of these two cases, it is also highlighted that the production side not should be ignored.

When the last 5 years of the global economy is assessed and looked at the countries - which overcome the crisis uncertainty relatively easy, achieved growth and employment – it is seen that the manufacturing industry has a crucial place in GDP; on the contrary to this, the countries, which could not exceed the crisis uncertainty, the share of service surpassed 80 percentages.

For this, priority should be given to the patriot sectors. According to the general approach which is approved in the economics literature, in order to secure sustainable growth the shares of manufacturing, construction and agriculture in GDP should be over in a certain level. In other words, the share of manufacturing sec-

tor should take 25%, construction sector 7% and agriculture sector 10% totally of these three sectors’ share in the GDP being at least 42% is vital. When we look at our country, the patriot sectors’ share remains insufficient with 30%.

Our objective is not an economy of which industrial side is not light, but service sector is dominant. Otherwise, the economic development will run out of being sustainable and would become more fragile against shocks. As for our agriculture policy should be reassessed in line with approach of industrial agriculture.

In this current conjuncture where the global uncertainty has reduced and growth expectations have turned into positive trend our agriculture policy should be reassessed with the industrial agriculture approach. In a condition, giving importance to the industrial agriculture policy to help reduce the foreign input rate to minimum and close the current account deficit. Besides, reducing the investment support limits related to strategic investment areas has importance when our country’s company profile taken into consideration. MUSIAD also highlighted the SMEs should access easily to the high in quality finance. Provisional tax which belongs to the inflationist terms should be removed in the current conditions. MUSIAD proposes the new regulations in the banking system. “We also consider that the Central Bank can strengthen its monetary policy with other tools,” MUSIAD stated.

IDDMIB mobilizes the ideas remain on the dusty shelves to enter into force Exporters search for patents Continued From Page 1 arking thousands of patents that were taken through great ambitious and various goodwill initiatives in the previous years, however they did not meet with production process, IDDMIB Chairman Tahsin Tiryaki said, they have launched a work for the suitable patents, which have been abandoned into dusty on the shelves, to allow to the economy. He added that they had constituted a “patent hunter” team.

Ranging in the first 1000 exporter firms in the list of Turkish Exporters’ Association (TIM), the 79 members of IDDMIB were awarded at ceremony held. Speaking at the ceremony where the representatives of the ministry of economy, firms’ administrators and exporters, IDDMIB Chairman Tahsin Tiryaki said, “We try to boost quality

M

and value-added of exports. We will achieve our sector’s target set as $25 billion for 2023. We have let the first design school of the world entered into force. We have launched a new independent war for design and innovation.

This year, number of 522 projects was submitted for the contest of metallic ideas. The first 10 products which were qualified in our design contests have been ready for sales in the market. However, we do not see enough to support new works and new projects. We have also set up a team. We will take the patents from the dusty shelves which were previously made and were not offered into economy.

In this case there are tens of thousands patents. We try to add these opinions into life.”

Exports of kitchenware make faces smile The increase in the exports of kitchenware at-

tracted attention.

In 2013, between Jan-Nov. exports of steel kitchenware enjoyed 13.4 percent, aluminum kitchenware increased 29.9 percent.

The exporters of the sector in Turkey won $342,4 million of foreign currency in this period.

Ferrous and nonferrous metals increased its exports 71.6 percent.

IDDMIB Chairman Oztiryaki, stating that the sector had realized the importance of R & D and innovation, said; “I believe that the exports of ferrous and nonferrous will show more increase in the upcoming period.”

In the first 11 months of 2013, the exporters of ferrous and nonferrous achieved worth $656,5 million of exports. As for the exports of the sector became worth $6 billion 300 million.

R & D and innovation will boost exports Oztiryaki highlighted

Turkish exporters must raise quality and unit prices and said; “Our producers and exporters have believed the importance of R & D and innovation.

We have connected very well with universities and designers. I believe that the exports of ferrous and nonferrous would boost hugely in the upcoming period.”

EU market makes us pleased In recent years, regarding the economic crisis in the European Union countries that turned into a difficult market, the exports showed a high increase.

The EU countries were the most exported region in Nov’13 with $320,4 million. The exports towards these countries boosted 10.1 percent over the same month last year. As for the second big market of the sector, exports to the other European countries increased 12.5 percent to $116,7 million.

Astana Chamber of Commerce pays a visit to ATO Salih Bezci, Ankara Chamber of Commerce (ATO) Chairman of the Board said that they want to promote commercial relations between Turkey and Kazakhstan.

C

Continued From Page 1 hairman Zhaksybek denoted that the Kazakhstan government assigned them “to be the best” goal and they will learn this from ATO and they accept ATO as a model.

Always Ready to Help ATO Chairman Bezci conveyed information about ATO’s organizational structure and works during his speech he made. Pointing out that ATO is the second biggest chamber with the number of its members nearing 150 thousand Bezci said: “We are making partnership deals with other countries’ chamber of commerce of capital cities’ in order to make cooperation. We have a common past with Kazakhstan and this is why we are already brothers with

Astana Chamber of Commerce. We are ready to cooperate within this brotherhood context. We will be proud that Astana Chamber of Commerce takes us as model and we are always ready to help them about member relations and services concerning members.”

Bezci gave detailed information about the education given to ATO members as a reply to Zhaksybek’s question and added that as ATO they can be a part of any kind of cooperation with Astana Chamber of Commerce. Bezci told that they are always ready to share their knowledge and experiences as a chamber.

Bezci offered souvenirs, Ankara goat and bibelot of Ankara Castle having ATO logo on them to Zhaksybek as a memoir of the visit.

Made in Turkey Economic Newspaper, February 2014

6

Innovation’s formative effect is displayed Turkey Innovation Week revealed the formative effect of innovation in the fields of science, technology, marketing, design, urban, business and industry world, marketing, energy and medicine.

T

urkey Innovation Week held in Istanbul Congress Center between the dates of 28-30 November

by Turkish Exporters’ Assembly which celebrates its 20th foundation anniversary this year, made the participants explore the innovation world full of information within the scope of the events.

Turkey Innovation Week, held with the honoring presence of the Prime Minister Recep Tayyip Erdoğan and the supports of Turkish Republic Ministry of Economy, brought many international professionals, industrialists, academicians and university students

remarkable for their success together in Istanbul and bought up the significance of innovation and R&D in Turkish economy and exportation to the agenda of Turkey.

With reference to the forecast that the future of the world and exportation is depending on development based on innovation, Turkey Innovation week, the first organization of which was held in the year of 2011, displayed the formative power of innovation in the fields of science, technology, marketing, design, urban, business and industry world, marketing, energy and medicine.

The organization, strategic

sponsorship of which is undertaken by Arçelik, Brisa, Türk Ekonomi Bankası (Turkish Economy Bank) (TEB) and Turkish Airlines, hosted many native and foreign speakers who created a tremendous impression thanks to their inspirational ideas.

Different point of views with 273 R&D projects and 243 design projects With the aim of supporting the sector with quality designs by meeting successful designers with the industrialists, 273 R&D projects and 243 design projects chosen from the 8 different R&D Project Market and 17 different design contest held in 2013 by Exporters’ Association were presented to the participants. And the projects chosen from 168 universities were exhibited during the event.

53 R&D Centers, 16 Technoparks, 8 Science Centers and 53 universities helped participants to develop rich viewpoints based on innovation at their stands.

“We believe in the Innovation Potential of Turkey”

Mr. Mehmet Büyükekşi, President of TIM, said, “As Turkish Exporters’ Assembly (TIM) representing 57 thousand exporters, we think that the 500 billion dollar export rate which we target reaching in the year of 2023 can be achieved through embedding innovation culture, climate and eco system more in Turkey. Under Turkey Innovation Week which we organize with great faith, we introduce the new technologies and production processes more comprehensively and try to clamp together the academy and industry smartly. By supporting the innovation oriented activities of public and private sector and non-governmental organizations, we instill spirits, motivation and confidence in Turkey. We believe in the innovation potential of Turkey as well as the youth of this country. Our dynamic younger generation will shape the future of Turkey. That’s why, we have to pave the way for the youth and lead them up.”

Mr. Büyükekşi stating that to be among the first 10 econo-

mies of the world and to get more shares from the world commodity exportation, the focus has to be innovation aimed at creating added value more than ever emphasized that the major investment to be made to the future of Turkey will be raising the innovative leaders of future by giving entrepreneurs and entrepreneurship prominence.

CEOs Meet with Students At the career event held during the final day of Turkey Inno-

vation Week, CEOs and General Managers of the most important companies of Turkey came together with the university students and answered their questions.

At the event which hosted Erkan Aydemir, CEO of Avea, Ethem Sancak, Board Chairman of Turkish Media, Gülsüm Arezi, CEO of OMV Turkey, Hüsnü Ozyegin, Founder and Board Chairman of Fiba Holding, Levent Çakıroğlu, Durable Consumer Goods

Winners of the R&D Project Market Announced 150 projects, one more interesting than the other, joined the contest, 12 of them were granted award.

T

he participants dreamt and the not only dreamt but made projects out of their dreams and applied to Chemistry R&D Project Market. 150

projects, one more interesting than the other, showed that Turkey possesses the power which will help reach its goals.

In the activity held in Haliç Congress

Center, 150 projects came together with industrialists and being academician, industrialist, entrepreneur, student, 12 projects were granted award in these 4 different categories.

Kadir Topbaş, Istanbul Metropolitan Mayor, Mehmet Büyükekşi, Turkey Exporters Assembly (TIM) President, Murat Akyüz, İKMİB Chairman of the Board, Necmi Sadıkoğlu, İKMİB Vice President of the Board of Directors and Chairman of the Executive Board of the R & D Project Market with A.Uğur Ateş, AKMİB Chairman of the Board of Directors participated in the award ceremony.

The owners of the award winning projects…

Student Category: First Prize: Tuğba Kul Köprülü / Gaziosmanpaşa Üniversitesi Second Prize: Süleyman Şimşek / Erciyes Üniversitesi Third Prize: Ömer Suat Taşkın / İstanbul Teknik Üniversitesi

Entrepreneur Category: First Prize: Duygu Aksoy, Neşe Bulut / İstanbul Üniversitesi / Kayalar Kimya Second Prize: Merve Kolay, Mete Mercan Third Prize: Fatih Karabey Academician Category: First Prize: Burhan Ateş, S. Köytepe, Mg. Karaaslan, H. Parlakpinar, N. Vardı, C. Ara / İnönü Üniversitesi Second Prize: Yrd. Doç. Halil Şahan, M. Nurullah Ateş, Şaban Patat, Sanjeev Mukerjee, K. M.Abraham / Erciyes Üniversitesi Third Prize: Burhan Ateş, S. Köytepe, Eb. Denkbaş, S. Balcıoğlu, S. Gülgen / İnönü Üniversitesi Industrialist Category: First Prize: Halil Akbulut, Selma Feridunoğlu / Kayalar Kimya Second Prize: Olçun Ekinci, Duygu Aksoy / Kayalar Kimya Third Prize: Hülya Başaran, Seda Gündoğan /Akbaşlar Tekstil Enerji

Group President of Koç Holding and General Manager of Arçelik A.Ş., Temel Kotil, General Manager, Board Chairman and Chief Executive Officer of THY (Turkish Airlines), Varol Civil, Executive Board Member of TEB Holding, Sani Şener, Chief Executive Officer of TAV Airports and Ali Kibar, Board Chairman of Kibar Holding, each executive answered the questions of 4 students from different universities.

Power plant to meet 2.5 percent of dema

Gama Energy CEO Arif Özozan

G

Turkey to transmit Georgian power to EU

T

he Borçka-Akhaltsikhe electricity transmission line will be able to transmit 700 megawatt (mW) power from Georgia to theEuropean Union through Turkey, Turkish Energy Minister Taner Yıldız has said, adding that the capacity would reach 1100 mW in advance.

“Power generated in Georgia will be available to European markets very soon,” Yıldız said during the inauguration ceremony of a power transmission line in Georgian province of Akhaltsikhe. The electricity transmission line between Turkey’s

Black Seaprovince of Artvin’s Borçka district and Akhaltsikhe was built to transmit power fromGeorgia via Turkey to Europe.

Yıldız stated that this facility would also transmit Azerbaijani energy: “Georgia’s energy and also Azerbaijan’s energy will be able to be transmitted to the EU. Turkey is a reliable market. If power generation starts, 700 mW power can be transmitted to Turkey,” he said. The transmission capacity will increase to 1100 mW in the next stage, he noted.

Yıldız also said the transmitted pow-

er can also be supplied, recalling that Turkey’s energy bourse, EPİAŞ, would be established.

The minister noted that Turkey was not only a corridor in the framework of this project but it was also a consumer country. They expect that this project would raise supply that would reduce prices in favor of citizens.

The Turkish Electricity Transmission Company (TEİAŞ) will be choosing a third party to assume the transmission component of the project by way of a tender process at a later date, he said

ama Energy CEO Arif Özozan says the new power plant in Kırıkkale will come into operation by 2016.

Gama Energy, in which GE Energy Financial Services and Turkish Gama Holding are equal partners, is building a power plant in the Central Anatolian province of Kırıkkale, which is expected to meet 2.5 percent of the power needs of the country. The company has guaranteed $600 million loans from five Turkish banks of the $900 million worth of investment, it announced in a written statement. The 840 MW plant, which is planned to come into operation by 2016, is expected to generate 6,300 GWh power a year and provide more than 50 percent of power needs of the capital, Ankara.

“With the financing, a 58-km-long electricity transmission line and 13-km-long natural gas pipeline of the power plant will be built. The electricity generated in the power plant, in parallel with the Turkish developing market’s conditions, will be evaluated in the framework of short, medium and long-term planes in order to meet bilateral deals, final consumers and Turkey’s electricity system’s needs,” Gama Energy CEO Arif Özozan said. The financing package, provided by İş Bank, Garanti Bank, Yapı Kredi Bank, Denizbank and Industrial Development Bank of Turkey.

Made in Turkey Economic Newspaper, February 2014

7

The Turkish Central Bank has vowed to use interest rate hike to protect Turkish Lira Continued From Page 1

T

he Monetary Policy Committee (the Committee) has decided to adjust the short term interest rates as follows: a) Overnight Interest Rates: Marginal Funding

cent. c) Late Liquidity Window Interest Rates (between 4:00 p.m. – 5:00 p.m.): Borrowing rate is kept at 0 percent, lending rate is increased from 10.25 percent to 15 percent.

The Central Bank anRate nounced that: Recent domestic and ex-

is increased from 7.75 percent to 12 percent, borrowing rate from 3.5 percent to 8 percent, and the interest rate on borrowing facilities provided for primary dealers via repo transactions from 6.75 to 11.5 percent. b) One-week repo rate is increased from 4.5 percent to 10 per-

ternal developments are having an adverse impact on risk perceptions, leading to a significant depreciation in the Turkish lira and a pronounced increase in the risk premium. The Central Bank will implement necessary measures at its disposal to contain the negative impact of these developments on inflation and macroeconomic stability.

In this respect, the Committee decided to implement a strong monetary tightening and to simplify the operational framework.

Ac-

cordingly, (i) one-week repo rate is increased from 4.5 percent to 10 percent; (ii) the Central Bank liquidity will be provided primarily from one-week repo rate instead of the marginal funding rate in the forthcoming period.

According to the Bank, tight monetary policy stance will be sustained until there is a significant improvement in the inflation outlook. Under this policy stance, inflation is expected to reach the 5 percent target by mid2015.

Vahdettin Ertaş

“Globally 2014 to be better” Continued From Page 1 “The steps into directed towards to confine in purchasing of bonds was a positive development for the capital markets. Currently, the data in economy paves way very well. So healthily, normal policies begin to be observed.

Every month purchasing worth $85 billion of bonds is an abnormal policy.

Every step directed towards zeroing it is a normalization policy,” Ertas recorded. Ertas pointed out that economy gradually has turned into a global structure and the markets have been in interaction situation to each other.

“Any wind at anywhere of the world makes domino effect in the other point. So every positive step abroad would affect positive us too. These

decisions of FED, growth and employment data of the USA, recovery of the European Union in the last quarter will reflect to us positively. This will also reflect to exports. We expect that the capital market will be positive more in 2014,” Ertas highlighted.

As long as positive winds continue in the global capital, the domestic market will be affected positively through this, he noted. He added that 2014 would be better than 2013. Ertas also reminded that a new capital market regulation would be entering into force since 1 January 2014. “We have newly regulated the entire capital market from top to bottom. I hope we will reap the fruits of that,” he concluded.

Turkey adopts inclusive development strategy

W

Turkish Development Minister Cevdet Yilmaz

Continued from Page 1 e should do this with the understanding of entire development mobilization. We say this inclusive development.” He note Turkey has a very rich geography, for the region where it exists should make up development strategies meeting needs of the region. Yilmaz said Turkey had come to a crucial position in the

regional policy, adding that the new regional policy has an inclusive concept.

“In the past, when said the regional policy only undeveloped regions were understood.

Today, we do not realize that way. Either Istanbul or Hakkari provinces are in the same category for us. While letting every region potential mobilize, we should eliminate the distance between the regions. We are increasing competition power of the all

regions,” Minister Yilmaz recorded. While they try to raise efficiency, on the other side they act fairly, they make this both within and inter the regions.

About development agencies, Minister Yilmaz said, “Now there are our institutional establishments in every region to set regional strategies and pursue these, manage new studies. We will see this accumulated effect in the upcoming years.”

About innovative implementations, Yilmaz said, “We expect more investors will go to the eastern regions. We supply incentives much in the sums to the 6th regions where had been not supplied previous periods. We wish to be benefited from these incentives.

We also wish the big investors make investments in this region. We should know that there are profitable businesses in all the regions across Turkey.”

Made in Turkey Economic Newspaper, February 2014

8

Istanbul Fire Brigade to compete with the world

Istanbul under "Fire Eagle" fire fighting helicopter wing

A

reception was held at the Golden Horn Congress Center’s parking area and during the reception a fire drill, in which the fire brigade’s new favourite “Fire Eagle” participated too, was conducted.

The citizens watched the

İstanbul Mayor Kadir Topbaş

drill along with Mayor Topbas, Deputy Mayor Goksel Gumusdag, Head of Fire Brigade Department Ali Karahan and Istanbul Metropolitan Municipality bureaucrats.

Mayor Topbas gave the order to strengthen the fire brigade for aerial firefighting after the fire incident at Polat

Tower last year. Following the researches conducted, a 22 meter long, at 195 km. speed Sikorsky S-64 Skycrane helicopter was found suitable. The helicopter, which has a capacity of 10 tons of water, was rented and added to Istanbul Fire Brigade Department.

Shopping malls aim turnover of TL75 billion in 2014

E

xpecting turnover of TL60 billion for the year 2013, Turkey’s shopping malls target to raise turnover by TL75 billion in 2014, Hulusi Belgu, Chairman of Shopping Malls’ Association, stated.

He recorded that in the sector worth $45 billion of investment

in the sector accomplished to date, $15 billion of that belonged to the foreign investors. While the jobs generated in 2012 was the number of 360 thousand, in 2013, the employment raised by 385 thousand people in the shopping malls.Belgu said the turnover per meter increased from 513 TL in 2012 to 551 TL in 2013

and while the total turnover was TL50 billion, expected to rise by TL60 billion in 2013. The visitor number of shopping malls was 1,5 billion in 2012, in 2013 the number expected to reach by 1,6 billion.

“The shopping size on average was 105 TL per capita in 2012.

The highest increase in the index

of 2013 was seen in bags and footwear category. This situation was the same in 2011 and 2012. Clothing and technology shopping was the other categories which were traded much in 2013,” he noted.

In 2014, the shopping malls which to be opened are predicted to be 35 units and the total rental space of these malls would be 1

million 500 thousand sq meters.

The turnover of malls expected to reach by TL75 in 2014. Belgu recorded that the malls would continue to grow and generate value-added to the country economy in 2014 as well. He stated the turnover of the sector boosted 20 percent in 2013, in 2014 growth would be the same.

“Turkey’s economy holds much promise”

Continued From Page 1 owever, in the first 5 months of the year, the good performance of the economy and a second investment credit upgrade provided ample external financing.

The picture changed in late May, when fears that the U.S. Federal Reserve would begin to taper its bond-buying program caused a large swing in market sentiment that affected most emerging markets, including Turkey.

The currency depreciated, interest rates increased, and financing conditions tightened.

However, despite the turbulence and consequent slowdown in economic activity, Turkey is likely to experience growth of close to 4 percent in 2013. This performance is among the best compared with peer countries, although it comes with a deteriorating external account and higher-than-desirable inflation.

Q- What are the main policy priorities—and principal motors of growth--for Turkey, given an uncertain external environment?

A- The priorities are very clear given Turkey’s desire to maintain strong and sustainable economic and jobs growth.

As a first step, and to guard against the volatility induced by the possibility of Fed tapering, the central bank should continue normalizing its monetary policy. This will help support stability in the short term, and investment and competitiveness in the medium term.

The second critical step, which will have a more important bearing on the medium-term outlook, is for the government to increase savings. The authorities have already rec-

H

ognized the need to raise domestic savings in their 10th Development Plan and 2014-16 MediumTerm Plan. However, more needs to be done to ensure that investment is high, while the external deficit is reduced. This can only be achieved with higher domestic savings—and this is an area where the public sector must play a larger role.

These macroeconomic reforms, coupled with further progress on key structural reforms—for example, boosting human capital, strengthening the business environment, and improving the functioning of the labor market—will be important to achieving what we all want: an increasingly sophisticated economy based on highvalue added manufacturing and services that produces a continued rise in incomes, jobs, and the standard of living.

Q- You mention the need to boost Turkey’s domestic savings rate, which has fallen dramatically over the last 15 years. How big a source of concern is that?

A- Private sector savings has indeed fallen significantly in recent years. As a result, the low domestic savings—which has as counterpart a large external deficit—places limits on Turkey’s growth in the medium term. This is why it is a source of concern.

In order for Turkey to grow at 4 percent in a sustained manner, it needs to maintain investment close to 21 percent of GDP. With the savings rate at about 14 percent of GDP, however, the country has to fill this saving deficit of about 7 percent of GDP through external financing, which often is only available in the form of volatile port-

folio inflows or short-term borrowing, and hard to sustain over time.

Thus, Turkey would need to raise domestic savings to about 18 percent to sustain high growth, while reducing its dependence on external financing.

Q-Turkey’s monetary policy framework is not always well understood. What are its key elements and is it delivering as it could be on its objectives?

A-The monetary framework was a response to multiple objectives that naturally required several instruments. A simple explanation is that it aims to maintain price and financial stability, while also discouraging volatility in short-term capital inflows, which can be very destabilizing.

However, while the framework has been useful in some respects, it has not allowed the central bank to meet its inflation target of 5 percent. In addition, its complexity makes it difficult to communicate policy intentions to markets and to manage expectations. Although this may not have been a major problem in the pre-Fed tapering period, the change in circumstances warrants a different approach at this stage. In this connection, the central bank has taken initial steps to address this and I expect the reduced policy uncertainty and further gradual tightening will help steer inflation expectations lower.

Q- Is Turkey able to withstand an eventual normalization of the U.S. Fed policy, or are we to expect more volatility?

A- Turkey’s balance sheets generally remain sound, although the external imbalance requires very careful calibration of economic policies in the period ahead. In particularly, there is a need for tighter monetary and fiscal stance to ensure a decline in the current account deficit and inflation.

But in both the private and public sector, Turkey has buffers in place, which provide protection against a plausible growth and exchange rate shock that could result from normal-

ization of the Federal Reserve’s monetary policy.

All the same, if Turkey’s external deficit remains unaddressed as the Fed exits from its expansionary monetary policy, the economy could face volatility, as is the case with a number of other emerging markets.

Q- Continued economic success depends on structural changes. What is the

most important structural issue that country needs to focus on?

A-There is not one single reform that needs to be undertaken. Turkey needs to prioritize and sequence its reforms in such a way that the competitiveness challenge is addressed and domestic savings increased. Labor market and education reforms are particularly important areas,

and should also help make Turkey a more attractive destination for foreign direct investment.

Q- What can Turkey do to retain its place among the most promising emerging economies?

A-Turkey’s geographical location, young population, and vibrant private sector provide the necessary base for a promising outlook. In addition,

the reforms of the last ten years, together with the strengthening of the macroeconomic policy framework during that period, generate the necessary foundations for Turkey to reach its goal of becoming a high-income economy.

However, Turkey will have to address expeditiously its competitiveness challenges and reduce its external deficit. These two aspects

are intimately linked.

Raising domestic savings, maintaining a strong nominal anchor through a normalized monetary framework, and ensuring that structural reforms result in attracting more foreign direct investment, are all the critical components that will assure Turkey’s place as one of the world’s most promising emerging economies.