Made In Turkey April 2012 by İstmag Magazin Grubu

Nisan_SAYFA 1 4/17/12 2:50 PM Page 1

Turkey arises on shoulders of ‘dedicated Anatolian tigers’

TOBB joins UN world tourism organization

P Turkish Prime Minister Recep Tayyip Erdogan

rime Minister Recep Tayyip Erdogan addresses the members of the Turkish Confederation of Businessmen and Industrialists (TUSKON), at its general assembly meeting held in Istanbul by thanking cordially regarding their contributions to the Turkish economy. Prime Minister Recep Tayyip Erdogan said that Turkey develops on the shoulders of “Anatolian tigers” that run under the mission to serve to their country and contribute to the economic growth. Page 9

Page 7

April 2012 Year: 11 No: 115

ISSN 1300-2260

www.img.com.tr

TOBB President M. Rifat Hisarciklioglu

No deviation from sustainable growth and development B

Turkish TIM Chairman Mehmet Buyukeksi

Turkey’s exports boost 8.1 percent in March

urkey’s exports were up by 8.1 percent in March over the same month preceding year, reaching $12.6 billion, according to data from the Turkish Exporters’ Assembly (TIM). TIM Chairman Buyukeksi said that they as the association began the year 2012 in a good way, in the first three months the exports boosted 10.5 percent to $34 billion 35 million. Page 5

UN Secretary-General Ban Ki-moon

“New economic paradigm needed, including social and environmentalprogress”

ecretary-General Ban Ki-moon highlighted the need for an economic paradigm that incorporates social and environmental progress in efforts to achieve sustainable development. “Gross National Product (GDP) has long been the yardstick by which economies and politicians have been measured. Page 9

Turkish Deputy Prime Mininster Ali Babacan

URSA - The Turkish government has targeted a 4 percent growth rather than 8 percent for 2012, to remain cautious in the face of global economic uncertainty, says Deputy Prime Mininster Babacan at the Uludağ Summit, Bursa, Turkey Turkey is cooling down its economy as it faces global economic uncertainty, in order to gain maneuvering capability, the Deputy Prime Minister said, emphasizing that Turkey was falling behind in attracting foreign direct investment compared with emerging nations.

“We could have targeted eight percent economic growth easily, but we wanted to prioritize the sustainability of the economy by targeting four percent,” said Ali Babacan, speaking at the first “Uludağ Economy Summit,” considered Turkey’s equivalent to the Davos Economic Forum. Noting that the economic crisis was still continuing in different phases, Babacan said: “We are trying to prepare for all possible scenarios … When the fog is dense, you need to slow down due to unpredictability.” Reiterating the Turkish government’s target to become one of the top 10 global economies by 2023, Babacan noted that Turkeywas weak in attracting enough foreign direct investments due to heavy red tape. Page 5

Nisan_SAYFA 1 4/17/12 2:50 PM Page 2

Made in Turkey Economic Newspaper, April 2012

Letter From

The Editor Mehmet Soztutan Editor-in-Chief

Good news is good news!

urkey will not revise its forecast of 4 percent growth this year. There might be various scenarios for Turkey it is estimated that the country will grow by 4 percent this year. This projection might be subject to revision if the economic situation in Europe deteriorates in 2012. As known, the Turkish government has recently revealed the new currency symbol of the Turkish Lira. The new icon resembles an anchor, which emphasizes that the Turkish Lira has become a safe investment haven. The parallel lines of the new design faced upward, which symbolized the steadily increasing value of the lira and the Turkish economy. The lira has been increasingly used in international markets in recent years. Meanwhile, the use of Turkish Lira in foreign trade transactions jumped 21.1 times in last 10 years. Turkish Economy Minister Çağlayan says this performance will be the biggest vehicle for promotion of the lira’s recently introduced currency symbol. The use of the Turkish Lira in foreign trade transactions has increased 21.3 times in the past 10 years, said Turkish Economy Minister Zafer Çağlayan, noting that foreign trade would be the biggest vehicle for promotion of the lira’s new currency symbol. “The total value of Turkish liras used in foreign trade transactions was only $516.6 million in 2002, but this figure had risen 21.3 times to $11.1 billion by the end of 2011. The rate of use of the Turkish lira in foreign transactions was 0.6 percent in 2002 and had risen to 3 percent in 2011,” Çağlayan said. The value of the Turkish lira used in foreign trade in 2011 increased $794 million in exports and $1.8 billion in imports compared to 2010, he added. It is clear that foreign trade would be the biggest source of support for making the national currency’s new symbol known in international markets. Figures for the first month of this year are also encouraging. A total of $820 million in trade was conducted in Turkish liras in January.

Turkish CB keeps key rate unchanged at 5.75 pct Turkey’s Central Bank decided not to make any changes to its benchmark one-week repo rate in the meeting held late March.

ccording to the statement after the meeting of the bank’s Monetary Policy Committee, the short-term repo rate remained at 5.75 percent while the overnight borrowing and lending rates were not either changed from the current 5 and 11.5 percent, respectively. “The interest rate used when lending to market maker banks through repo transactions remained at 11 percent,” according to the decision. The late liquidity lending and borrowing rate in the interbank monetary market also stayed the same at 0 and 14.5 percent, respectively. “An additional round of monetary tightening can be implemented when it becomes necessary based on a close scrutiny over factors that impact inflation in the period ahead of us,” the statement said. The statement of the Central Bank commented, “Recent data confirm that the rebalancing between the domestic and external demand continues as envisaged. While consumption demand shows a significant slowdown in the first quarter, leading indicators suggest a modest recovery for the second quarter. Exports continue to grow at a steady pace. Accordingly, despite the elevated oil prices, the improvement in the current account balance is expected to continue in the forthcoming period. Inflation developments are in line with the path projected in the January Inflation Report. Yet, the Central Bank has implemented a new round of additional monetary

tightening in order to eliminate the impact of recent cost developments on inflation expectations. Factors affecting inflation will be closely monitored in the forthcoming period and additional monetary tightening will be repeated, when necessary. Taking the liquidity projections into account, the ranges for weekly and monthly Turkish lira funding have been revised. In addition, certain revisions regarding the fraction of required reserves that can be held in gold have been approved. Given the prevailing uncertainties regarding the global economy, it would be appropriate to preserve the flexibility of the monetary policy. Therefore, the impact of the measures undertaken on credit, domestic demand, and inflation expectations will be monitored closely and the funding amount will be adjusted in either direction, as needed.”

High speed train between Ankara-Istanbul to be launched in 2013 Turkish Transportation Minister Binali Yildirim

he high speed train is expected to reduce travel time between Turkey's two most populous cities to three hours. A high speed train line connecting Turkey's capital, Ankara to Istanbul, which is the country's main commercial and financial hub, will be operational in 2013, Transpor tation Minister Binali Yildirim said. The groundbreaking ceremony was held for the 56 km the last phase of the Ankara-Istanbul High Speed Train. Binali Yildirim said the line received the biggest pre-accession fund the European Union ever provided for a single project in an EU member candidate country. The EU provides nearly 125 million euro in preaccession assistance, equal to 85 percent of

the 147 million euro high speed train project. The high speed train is expected to reduce travel time between Turkey's two most populous cities to three

hours. Turkey has recently launched speed train between Ankara and Eskisehir -- a part of Ankara-Istanbul project -- and with the central city of Konya. Transportation, Minister Binali Yildirim said HST would be completed in 2013 and travel time from Ankara to Istanbul to drop by 3 hours.

“We will open the complete line in 2013 to link Istanbul to Kocaeli, Sakarya, Ankara, Konya, Bursa and Sivas,” Minister Yildirim said. The length of the last stage of Kosekoy-Gebze part of the HST project is 56 kilometers. In the scope of the project 9 tunnels and 10 bridges would be built.

Letters to the Editor

turkey@ihlas.net.tr

Emerging markets

Exit strategy

The current financial turmoil is confronting emerging market economies (EMEs) with two shocks: a “sudden stop” of capital inflows driven by global deleveraging, and a collapse in export demand associated with the global slump. Although some EMEs were already ripe for a homegrown crisis following unsustainable credit booms or fiscal policies, and face large debt overhangs, the majority were just innocent bystanders. This note outlines policies to help solve the debt overhang and bring about recovery in both groups of countries. A key ingredient will be greater official financing to expand the “policy space” available to EMEs to pursue supportive macroeconomic policies—including, in countries with large debt overhangs, by helping to meet the fiscal outlays (such as bank recapitalization costs) associated with the resolution of that overhang.

It is critical that emerging markets have a

M. Greeted / Berlin

When it comes to emerging market economies, except where the loss of confidence in the currency precludes it, the basic thrust of monetary policy should be toward easing, given the evident global deflationary pressures and widening interest differentials with respect to advanced countries. Quantitative measures may also be appropriate in some cases. However, central banks need to remain mindful of the trade-off between the growth-enhancing effects of looser policy versus the negative impact of exchange rate depreciation on unhedged balance sheets. Foreign exchange reserves can be used to prevent excessive depreciation or—in some cases—to substitute for foreign credit lines to banks, allowing the latter to maintain domestic lending operations. Depending on the available fiscal space, expansionary fiscal policy should also be deployed to support economic activity.

China “China’s banks and financial sector are healthy, but there are vulnerable elements that need to be addressed by the government, and experience in other countries has demonstrated the sooner these are addressed, the better,” said Jonathan Fiechter, deputy director of the IMF’s Monetary and Capital Markets Department and the head of the IMF team that conducted the assessment. “ China is one of the major 25 financial sectors that must undergo a review of its financial health as part of the IMF’s surveillance. The global economic crisis laid bare the devastating economic consequences a financial crisis in one country can have on the global economy. Countries with financial sectors that have the greatest impact on global financial stability are now required to undergo in-depth reviews of their financial health by the IMF every five years.

H. Jren/ Frankfurt

credible exit strategy. Monetary policy should not be loosened too quickly, as a rapid reversal would damage credibility. The same holds for fiscal policy interventions, where the stimulus should not be withdrawn too soon but may require a credible exit strategy that places government finances on a long-term sustainable footing. This would help contain the costs of financing the short-term stimulus, and have an additional benefit of strengthening investor confidence and facilitating the resumption of capital inflows in the recovery phase.

T. Trlen/ Basel

Loss of confidence

D.Drun/ Nice

Nisan_SAYFA 1 4/17/12 2:50 PM Page 3

Made in Turkey Economic Newspaper, April 2012

Incentives for more investments

urkish government has recently launched a new incentive package as part of the other political, economic and commercial steps taken with an aim to build a stronger, more powerful and more respected future for Turkey. In line with prospective changes in the law concerning trade and businesses the package is expected to improve Turkey’s rankings in global scales. Accompanied by other ministers who deal with industry, trade, labor and economic issues, Prime Minister announced the new package, at a press conference in Ankara. He especially invited local businesspeople of less developed regions to engage new investments in their hometowns. He said that some of the ongoing investments in infrastructure would increase the level of development in the east in the near future. However, he added, it is not possible to maintain sustainable development in all regions while some of them are deprived of investments. The economic incentive package, the most comprehensive announced so far, seems to be built on a strategy of positive discrimination for new investments in certain provinces that were relatively less developed. It also expected to help reduce Turkey's chronic current account deficit while minimizing differences in regional development with some large investments. The tools, schemes, kinds and amounts of incentives are to be applied differently at six categories. The provinces were classified on their needs for incentives, their current levels of economic development and investment opportunities they may have. The first category, is the most developed provinces mostly in the west, while the sixth category includes the least developed regions, particularly in the eastern and southeastern parts of the country. The incentive package offers incentives to increase production capacities and competition powers in six particular sectors. The sectors were chosen on their contributions in the country’s growing current account deficit. The six industries, namely, machine manufacturing, iron and steel production, automotive, food and agriculture, chemical production and textiles, have also larger shares in Turkey’s exports. These also are among the larger importing industries. Under the framework of new incentives the businesses will be exempt from the

costs of social security employment premiums that they usually have to pay for their new employees, for seven to 10 years, depending on the region in which they invest. One part of the new incentive package is that it offers analytical solutions and takes changes in regional development levels into consideration. Incentives, however, are initially focused on the establishment of new investments with high added value with an aim to lower their burden on the current account deficit, rather than maintaining existing investments. Another major aspect of the new system is that it supports the concentration of businesses and industries at more efficient zones and locations. It aims to make Organized Industrial Zones, both present and prospective, more attractive centers for new investments. The new incentives will be applied by assessing the development level of each province on 61 separate development criteria. The incentives are to be evaluated and offered after comprehensive analysis made by utilizing official data provided by Institute of Statistics. Incentives are to be provided differently as their strategic value and as their potential to produce added value in the national economy. The government expects relatively more wealthy provinces to support investments in poor cities with their know-how and capital. Current account deficit reducing investments, which were called as the strategic investments by the Prime Minister, should be more than TL 50 million in size and produce an added value representing 40 percent of this figure. One of the brand-new applications included in the new package is that the government provides incentives for school projects carried out by the private sector. We hope that, this time the incentives produce Prof. Dr. İsmail Kaya more value than their cost to the nation.

Incentive program offers large opportunities for direct investments I STANBUL - The government’s new incentive program offers large opportunities for direct investments, according to Turkish Economy The Çağlayan, Minister Turkish Industry and Business Association backs the scheme in the name of sustainability. Economy Minister Zafer Çağlayan reveals the details of the government’s new incentives at a meeting in Istanbul. The minister says support for investments in Turkey’s poorest regions may even reach 100 percent. Economy Minister Zafer Çağlayan said April 6 that now was the time for businesses to take advantage of growing support for more investment, as he introduced the details of a new incentive comprehensive scheme. Investments will be

supported to varying degrees based on four categories: region, scale of investment, strategic investment and general incentive applications, Çağlayan said. According to the scheme, provinces fall under six categories in terms social and economic development. “Let’s say an investment project of 5 million liras and with 40 employees receives a regional incentive. The amount of the support will amount to 1.3 million liras if the investment is made in the first region, 1.7 million liras in the second region, 2.6 million liras in the third region, 3 million in the fourth region and 3.7 million in the fifth region. If the investment is made in the sixth region, the support exceeds the nominal investment cost reach-

ing 5.2 million liras,” he said. The government was applying positive discrimination to the sixth region, he said, also adding that the social security contribution of businesses investing in the region would be paid by the government for 10 years. The sixth region generally comprises of the poorest provinces in east and southeast Turkey. While the minister said that one of needs of the country was to manage a transition from labor intensive technology to information intensive technology, the government was aiming to attract labor intensive industries to the sixth region. Industrialists have welcomed the government’s new incentive system. The Turkish Industry and Business Association (TÜSİAD) said the new incen-

tive scheme was “a quite positive step in terms of supporting economies of scales.” “The new system brings a strategic approach to eliminate structural problems that prevent the Turkish economy from entering a sustainable growth path,” the mouthpiece of the largest Turkish businesses said. “The new incentive package will lift our country to the Super League (of developed Ekrem said countries),” Demirtaş, the head of İzmir Chamber of Commerce, adding that it was in line with Turkey’s targets. economic high “Althouh İzmir does not have [attractive] regional incentives [in the scheme], there is a great deal of support to technological and strategic investments,” he said. Information center Meanwhile, the Economy

Ministry has founded an “Incentive Information Center” to promote the new system, Minister Zafer Çağlayan said in a written statement. Çağlayan said that foreign investors may send in questions to incentives@economy.gov.tr, or call +90 312 444 43 63.

Turkish Economy Minister Zafer Çağlayan

Eurobank sells stake in Turkey I STANBUL A man walks next to policemen outside a Eurobank branch in Athens on March 21. Eurobank sells its stake in its Turkey. Eurobank, the third-largest Greek bank, said it had agreed to sell 70 percent its Turkish subsidiary Eurobank Tekfen to Kuwait’s Burgan Bank, as the total value of the unit is calculated at 272.7 million euros ($359 million).

“Under the terms of the transaction, Burgan will acquire 99.3 percent of Eurobank Tekfen from Eurobank EFG and the Tekfen Group for an upfront cash consideration of 641 million Turkish Liras,” Agence France-Press quoted a Eurobank statement issued. The statement added that the deal, scheduled to be completed in the third quarter of 2012, would increase the Greek group’s core tier I capital

by almost 300 million euros and improve its liquidity position by 800 million. The deal is subject to regulatory approval. Greek banks have been trying to bolster their shareholder funds after the government accomplished a bond swap in March that canceled nearly a third of its huge debt. Eurobank Tekfen’s General Manager Mehmet Sönmez said that 70 percent of the bank has been sold to

Burgan Bank, and the two parties will negotiate on the remaining 30 percent stake, according to Reuters. “If agreed, the 30 percent stake will be sold [to Burgan Bank] at the same overall valuation,” he said. Tekfen Holding said it had signed an agreement with Eurobank that Tekfen Holding is eligible to sell its nearly 30 percent stake to either

Eurobank or to a third party, in a filing to the Istanbul bourse. Burgan Bank runs trade activities for Kuwait’s largest investKuwait company, ment Investment Projects Company (KIPCO). KIPCO also has a stake in United Gulf Bank and other financial firms in the Middle East and North Africa. The Kuwaiti emir and his family own 44.63 percent of KIPCO, according to Reuters.

Mercedes Turkey to import cars in Turkish liras

s of April 1, Mercedes Benz Turkey has been paying in Turkish Liras instead of euros for cars imported from its Germanheadquarters. The company will also sell its cars in the Turkish market for a lira price tag. “Last year we bought 250 million Euros worth of Mercedes cars from Germany and expect the same this year. This means this year we will send at least 600 million liras to Germany,” said MercedesBenz Turkey Marketing and Sales Director Süer Sülün to daily Hürriyet. According to Sülün, the company’s total turnover was 2.5 billion euros. “In time we expect to increase

this amount to 6 million liras. By switching to the lira we hope to finance the country’s current account deficit,” he added. Mercedes Turkey had been discussing the switch to the lira with its German headquarters since December. “Now we have Daimler, which also conducts its business in liras,” said Sülün explaining that Daimler’s decision demonstrates that company’s belief in the strength of the lira. In the past two years Mercedes has made similar decisions regarding the Russian ruble and the Mexican peso.

Consumer satisfaction awards distributed

STANBUL- The Turkish Quality Foundation distributed consumer satisfaction awards in Istanbul. The Turkish Quality Foundation (Kalder) awarded its customer satisfaction awards in Istanbul late on April 2. The results were based on a survey that has been conducted for over six years in 81 different provinces in Turkey, in which 240,000 survey respondents participated. Turkish Airlines, Turkcell, Ülker, Nokia, and Opet were voted number one in their sectors for over six years and received the black trophy. Other firms such household appliance company Bosch, meat and poultry retailer Banvit, Golf ice cream, İş Bankası, the BİM supermarket chain, Tamek (producers of canned goods, tomato sauce, and sauces), Toyota, BP, bottled water producer Erikli, and public-sector bank Ziraat Bankası went home with gold and silver trophies for customer satisfaction in their respective sectors. The gala was attended by several upper-level business leaders including the editor-inchief of Ekonomist and Capital magazines, Rauf Ateş, Opet General Manager Cüneyt Avcı, Turkish Airlines Assistant General Manager Asaf Bora, Ülker Butter Group General Manager Şükrü Çin, Turkey Bankers’ Union President Hüseyin Aydın, Yapı Kredi Bankası General Manager Faik Açıkalın, and Toyota General Manager Ali Haydar Bozkurt.

Nisan_SAYFA 1 4/17/12 2:51 PM Page 4

Made in Turkey Economic Newspaper, April 2012 GROUP CHAIRMAN: H. FERRUH IŞIK

İletişim Magazin Gazetecilik Sanayi ve Ticaret A.Ş. Adına Sahibi ve Sorumlu Genel Yayın Müdürü (Publisher and Editor in Chief):

New paradigm: gross national happiness

Mehmet Söztutan

Editor

Ibrahim Kupeli (ikupeli@img.com.tr)

Editorial Consultants: Ömer Faruk Görün (fgorun@ihlas.net.tr) Advertising Sales Staff:

Mustafa Bekir Karaca (mbk@img.com.tr) Adem Sacin, Yılmaz Özkan Recep Arslantaş, Eda Şişik

Advertising Consultants

Aydın Emir Erkoç

Correspondents:

Hakan Alkan (hakanalkan@img.com.tr)

Technical Manager:

Tayfun Aydın (tayfunaydin@img.com.tr)

Chief Accountant:

Mustafa Aktas (maktas@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 KONYA: Metin Demir H.Uluşahin İş Merkezi C Blok Kat: 6 No:603-604-605 KONYA Tel:(90.332) 238 10 71 Fax: (90.332) 238 01 74 PRINTED BY İhlas Gazetecilik A.Ş., 29 Ekim Cad. No: 23, 34197 Yenibosna ISTANBUL / TURKEY Tel: (0.212) 454 21 93 Fax (0.212) 454 34 83

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

r o um

It is a thousand times better to have common sense without education than to have education without common sense.

(msoztutan@img.com.tr)

ontinuously changing and developing con- We know that today many countries have annualditions in the world urge human beings to ly big growth rates, but their peoples cannot get find new solutions, new evolutions and enough shares from those growth, wellbeing and prosperity. Also achieving only growth - disrenew paradigms. Continuously developing new technologies, garding other basic values - has come a point that increasing population, quick urbanization, con- cannot be maintained in the world. suming habits, ecological deterioration push the The UN marks the need for a new economic paraglobal society to adopt new paradigms in human digm that recognizes the parity between the three life. In recent times, a new paradigm has being dis- pillars of sustainable development such as social, cussed. The new paradigm in the economic and economic and environmental well-being are insepsocial areas would be “gross national happiness” arable. Altogether, they define gross (GNH) instead of gross global happiness. domestic product (GDP). The It is also marked to the new new paradigm would be more paradigm in favor of the planinclusive including economic et, which suffers from envigrowth, environment and ronmental pollution, require a wellbeing in the form of new economic paradigm to democracy. In the future take into account not only ecogrowth of any country may be nomic growth but also protect measured by “gross national environment. happiness” (GNH) instead of The expectation from the new GDP. paradigm to bring a more The said paradigm has a nearinclusive, equitable and bally 40-year history which goes anced approach that would Ibrahim Kupeli back to the early 1970s and promote sustainability, eradihad been introduced by the ikupeli@img.com.tr cate poverty and enhance Himalayan nation of Bhutan well-being and happiness. as a new measurement of national prosperity, focusing firstly on people’s Basic and humanitarian reason of the new paradigm is to constitute human rights and justice, well-being rather than economic productivity. The assessment of gross national happiness (GNH; opportunities and decent jobs, affordable health was designed in an attempt to define an indicator care, education, good governance and energy that measures quality of life or social progress in access rather than only letting gross domestic prodmore holistic and psychological terms than only uct grow. the economic indicator of gross domestic product United Nation expects that by 2015 the international community will have adopted a sustainabil(GDP). In recent years, there has been growing interest in ity-based economic paradigm, committed to prothis concept– known as “gross national happiness” moting true human well-being and happiness, and (GNH) – with the UN General Assembly adopting at the same time ensuring the survival of all species a resolution in 2011, regarding the gross domestic with which we share this planet. product (GDP) indicator “does not adequately The new paradigm would be also discussed at reflect the happiness and well-being of people in a the UN Sustainable Development Conference, also known as Rio+20, in Brazil in June. country. The reason for the new paradigm stems from If the new paradigm is adopted across the world today’s unprecedented ecological, economic and as the new yardstick to measure economic social challenges which have made the achieve- growth, new concepts would enter into force ment of happiness and well-being an unachievable and new paradigm will take human beings in the front plan instead of only economic develgoal for many. The experiences and developments across the opment, as well as mew sanctions will be carworld urge to build a new, innovative guiding ried out. Besides efforts for a better future for all in order vision for sustainability and the future. The new concept will aim happiness of people to achieve this goal, also action should be taken to implement the rhetoric. instead of nations itself…

THOUGHT OF THE MONTH

ow To Identify Where A Driver Is From

· One hand on wheel, one hand on horn: Chicago · One hand on wheel, one finger out window: New York · One hand on wheel, one hand on newspaper, foot solidly on accelerator: Boston · One hand on wheel, cradling cell phone, brick on accelerator: California. With gun in lap: Riverside · Both hands on wheel, eyes shut, both feet on brake, quivering in terror: Ohio, but driving in California. · Both hands in air, gesturing, both feet on accelerator, head turned to talk to someone in back seat: Italy · One hand on latte, one knee on wheel, cradling cell phone, foot on brake, mind on game: Seattle ***************************** The Dictionary: what hi-tech salespeople say and what they mean by it New: Different color from previous design. All new: Parts not interchangeable with previous design. Unmatched: Almost as good as the competition. Designed simplicity: Manufacturer’s cost cut to the bone. Foolproof operation: No provision for adjustments. Advanced design: The advertising agency doesn’t understand it. Field-tested: Manufacturer lacks test

equipment. High accuracy: Unit on which all parts fit. Direct sales only: Factory had big argument with distributor. Years of development: We finally got one that works. Revolutionary: It’s different from our competitiors. Breakthrough: We finally figured out a way to sell it. Improved: Didn’t work the first time. Futuristic: No other reason why it looks the way it does. Distinctive: A different shape and color than the others. Re-designed: Previous faults corrected, we hope. Hand-crafted: Assembly machines operated without gloves on. Performance proven: Will operate through the warranty period. Meets all standards: Ours, not yours. Broadcast quality: Gives a picture and produces noise. High reliability: We made it work long enough to ship it. New generation: Old design failed, maybe this one will work. MIL-SPEC components: We got a good deal at a government auction. Customer service across the country: You can return it from most airports. Unprecedented performance: Nothing we ever had before worked this way. Built to precision tolerances: We finally got it to fit together. Microprocessor controlled: Does things we can’t explain.

THE ECONOMI$T What is the major difference between change and progress?

Change is inevitable but progress is optional

Well!

EASY

SUDOKU

7 9 3 MEDIUM

ACROSS

DOWN

)RUPHU ZRXQG 5 Vane direction 8 Artful 11 Buckeye state 12 Not cold 13 Band instrument úWDOOLDQ PRQH\ 15 Respiratory disease 16 Nortwest by north 17 Notify 19 Adjoin )UHH RI 22 Assan contry %R[HU 0XKDPPDG 27 On 28 Quuaking tree 7XUNH\·V (8 &KLHI 1HJRWLDWRU %DJLV 33 Subatomic particle 34 Gleans 36 Yield 37 Wipe off 39 Nuke 42 Pawl 43 Cynthia $LU SUHÀ[

48 Atmosphere 50 Minnesota (abbr.) 51 Baby bed /DQND 53 President (abbr.) 54 Brand of non-stick spray 55 Teaspoon (abbr.) 56 Pretty

8 9 3 1 Relating to the sun 2-Con carne 5 1 7 4 Uttared /DXJK HARD ([WUHPHO\ KLJK IUHJXHQF\ DEEU

6 Sedate 3 4 9 7 Compasition 7 5 1 8 Compass point 9 Throw 2 6 8 10 Japanese money 8 7 2 13 Only 18 Compose 9 1 5 20 Gnarly 23 Billion years 4 3 6 24 Able 1 8 4 25 Constellation +RWHO 5 2 3 6SRUWV RIÀFLDO 6 9 7 6XQ·V QDPH 30 Gray sea eagle FIENDISH 31 “To the right!” 32 Snack 5 6 8 2OG IDVKLRQHG )DWKHUV 35 +RRIHG PDPPDOV RI WURSLFDO $PHULFD 7 1 2 38 Cook 3 9 4 39 African country 6 8 3 +LGH RXW +DUG\ ÁRZHU 1 4 7 42 Cry 3L[LHV 9 2 5 45 American College of 2 3 9 Physicians (abbr.)

46 Time period (GJH 49 Rive

Nisan_SAYFA 1 4/17/12 2:51 PM Page 5

Made in Turkey Economic Newspaper, April 2012

No deviation from sustainable growth and development Continued From Page 1 urkey could only attract $14 billion despite all our efforts, while the total volume of FDI was nearly $1.6 billion in global markets,” he said. Turkey will not be able to achieve its target of being among the Top 10 global economies with at least $25,000 average income per capita in 2023 unless it eases the bureaucratic obstacles in front of possible investors, according to the minister. Turkey’s domestic saving ratios are at a histor-

ically low level said Babacan, warning that the country should work on increasing the domestic saving ratio in order to narrow its current account deficit. Noting that the domestic saving ratio was nearly 12 percent of the national income, and that Turkey’s consumer credit in the last two years had hit nearly $95 billion, Babacan said: “we have started to consume too much … Citizens have spent by increasing their household debt.” According to the minister, the currently low

savings ratio is not sustainable. He said the Turkish government was preparing to launch a series of new regulations to encourage people to increase domestic savings through personal insurance funds and alternative tax reductions. Noting that the average total length of education Turkish people above the age of 25 was nearly 6.5 years, Babacan said: “It is just a dream to think of taking place among the top 10 economies with this level of education.” He

said Turkey had to implement strong reforms in its educational system, leaving behind ideological differences. Speaking at the meeting, Ümit Boyner, the Turkish Industry and Business Association (TUSİAD) said Turkey should not only focus on economic growth, but also the developments in women’s workforce participation and human rights. Turkey has to grow approximately 6-8 percent annually in order to compete with Italy,

Mexico and South Korea, all ahead of Turkey in the list of top 10 economies of the world. However, Boyner warned: “We have to lay the tracks of the railroad of this fast train very carefully,” noting that fast economic growth also brought risks such as increasing dependence on imported energy sources, which fuel Turkey’s current account deficit. According to her, Turkey should focus on innovation and manufacturing high value added products to increase its competitiveness.

Turkish Deputy Prime Mininster Ali Babacan

Turkey’s exports boost 8.1 percent in March Turkey’s exports increased 8.1 percent to $12,6 billion in March 2012 compared with the same month last year, the most exports increase enjoyed in the countries of Arab Spring

Turkish TIM Chairman Mehmet Buyukeksi

Continued From Page 1 he year-on-year exports hit almost $138.3 billion as of end of March. TIM Chairman Mehmet Buyukeksi posted the export figures in the central province of Kayseri which accomplished exports as 12th highest in 2011. The

province exported goods worth $1 billion 483 million in 2011 and increased its exports 8 percent in the first 3 months of 2012. Textile, furniture, forest products, irons and non-ferrous metal products have a crucial share in the exports of Kayseri. Commenting about eco-

nomic developments in eurozone, Buyukeksi said, “In the first two quarters recession would continue in the economy of eurozone. In the USA, growth prospect is between 1.8-2.0 percent, we give importance to the recovery in the USA. In 2011, our exports raised 22 percent in the USA. As for the first three months of 2012, the increase to this country is 30 percent.” Germany remained the largest exports market of Turkey with almost $1.3

billion in March, as plunge was experienced in the European Union. It followed by Iraq with more than $900 million worth of exports. The United Kingdom was the third largest exports market of Turkey’s exports with $672 million dollars. Exports to alternative markets in Africa saw noteworthy increase. In the first quarter of the year, Turkey’s exports rose 10.5 percent to $34.7 billion compared with the first quarter of 2011, the automotive sector

characterized the driving force of exports again with $1.9 billion, followed by the chemicals industry achieving exports worth $1.6 billion and the textiles industry $1.49 billion respectively, according to TIM’s announcement. The defense industry registered the highest increase in exports in March hitting 93.2 percent to $123.6 million. Exports of aquaculture and animal products boosted 42 and carpets 39 percent In March 2012, boost enjoyed in the countries of

Arab Springs, so exports to Libya surged 658 percent, Yemen 480 percent, Ethiopia 424 percent, Bahrain 193 percent and to Egypt 102 percent, as for Nigeria 155 percent rise, over the same month last year. Turkey’s exports to

Morocco rose 31 percent and to Iraq 44 percent. By the region, exports rose by 59 percent to African countries, 22 percent to the Commonwealth of Independent States and 16 percent to the Mideast, to the EU plunged 3.5 percent in March 2012.

Turkish exporters enjoyed rapid rise especially to BRIC countries, 18 percent in China, 19 percent in Russia, 14 percent in Brazil, and 43 percent in India in March 2012 over the same month previous year, according to the data from Buyukeksi.

Nisan_SAYFA 1 4/17/12 2:51 PM Page 6

Made in Turkey Economic Newspaper, April 2012

Turkey to comply with EU in livestock bourses A

NKARA - The government is planning to increase the number of livestock markets from 94 to 118, says the Ministry of Food, Agriculture and Livestock. This aims to help combat price speculation and raise standards to the European level. Turkey will add 24 livestock markets and livestock exchanges to the current 94 . The Agriculture and Livestock Ministry aims to modernize them to comply with EU standards. The Ministry of Food, Agriculture and Livestock has started a study to establish modern livestock markets in Turkey, by joining forces with the Union of Chamber and Commodity Exchanges

(TOBB).The Ministry aims to lift the standards of local livestock bazaars to the European Union level and plans to increase the number of licensed markets in 43 different provinces, in a bid to prevent speculations and maintain actual prices based on demand and supply. In a first step, 24 newly licensed markets will be established. The total estimated cost of the new establishments is nearly 34 million liras. The ministry is also working on arrangements to provide better procedures and environments for the well-being of the animals transported to the markets for sale. The animals and vehicles that transport the animals will have to be put through a hygiene tunnel, before

the animals are disinfected against contagious diseases in separate rooms. The markets will also feature special partitions for animals to rest and be foddered. Responsible managers, vets and caretakers will be employed at livestock selling places, where there will also be included offices, cafes, utilities. There are currently a total of 94 livestock markets in Turkey. Some 84 of them are licensed livestock bazaars and the rest are bourses. Such efforts will encourage trade and support the development of higher standards and quality, to maintain healthy livestock markets, he said. The Turkish government is working on lifting obstacles to the local dairy industry that prevent

it from exporting to the European Union, Food, Agriculture and Livestock Minister Mehdi Eker said at an industry-wide meeting. “We have made Turkey comply with EU standards, which are accepted as a reference in terms of food security,” he said, noting that the ministry was fighting to secure a brighter future for the dairy and other food industries. The minister also said a regulatory body regarding the dairy industry was being established. “[The draft law regarding] the regulatory body is in final stage. Soon it will be sent to the Cabinet.” Turkey’s Meat and Fish Institute (EBK) could assume the role of the regulatory body, he added.

Turkey’s economy boosts 8.5 percent in 2011 Turkey's Gross Domestic Product (GDP) grew 8.5 percent to 1 trillion 294 billion 893 million TL (approx. 772.2 billion USD) in 2011

urkish economy grew 8.5 percent in 2011, according to the data of Turkish Statistical Institute, (TurkStat). TurkStat made public the Gross Domestic Product (GDP) figures for the fourth term in 2011. Turkey's economy grew 5.2 percent in the last quarter of 2011. Turkey's GDP was recorded as 339.7 billion Turkish liras in the last quarter of 2011, TurkStat stated. TurkStat announced that the Turkish economy grew 8.5 percent in 2011. Turkey's Gross Domestic Product (GDP) in 2011 was recorded as 1 trillion 294 billion 893 million TL (approx. 772.2 billion USD). In 2011, the per capita income in Turkey was recorded as 10,444 USD. The fourth quarter gross domestic product in 2011 compared to the same quarter of previous year increased by 5.2% in constant prices. The fourth quarter growth rate of gross domes-

tic product in 2011 increased by 14.9% and reached to 339 billion 755 Million Turkish Liras in current prices. The fourth quarter growth rate of gross domestic product in 2011 increased by 5.2% and reached to 29 billion 515 million Turkish Liras in constant prices. Annual gross domestic product in 2011 increased by 17.8% and reached to 1,294,893 trillion Turkish Liras in current prices and increased by 8.5% and reached to 114 874 Million Turkish Liras in constant prices. The per capita gross domestic product in 2011 is 17,510 Turkish Liras and 10,444 USA Dollar in current prices. Calendar adjusted gross domestic product in fourth quarter of 2011 increased by 4.7% compared to the same quarter of previous year, seasonal and calendar adjusted GDP increased by 0.6% compared to previous quarter.

Construction sector signals soft landing

STANBUL - Turkey’s construction sector grew 11.2 percent in 2011 as 419,000 houses were sold in one year, according to figures provided by the Turkish Construction Industry Center (YEM). However, the center said 2012 growth will not exceed 7 percent. YEM General Manager Barış Onay told Anatolia news agency that the sector grew 7 percent in the last quarter of 2011. “This might be considered hopeful data before 2012,” he said. The sector had grown 2.2, 1.5 and 0.2 percent in the first third quarters in European countries before a 1.4 percent shrinkage in the fourth quarter, Onay added. The public investments share in sum decreased to 35 percent last year from 40 percent in 2010. Overall economic growth is in parallel with that of the construction sector, Onay said, concluding that buildings are the engine power of the Turkish economy. Evaluating Turkish contractors’ businesses abroad in the first nine months of 2011, Onay said Turkmenistan was the top market with a 17.4 percent share in total. Russia followed with 16.7 percent and Iraq with 14 percent.

Exports to Turkey raise Hungarian meat prices

UDAPEST - Hungarians pay more for meat as exports soar. Turkey’s livestock imports have led meat prices in Hungary to rise four-fold, the head of the Turkish-Hungarian Chamber of Industry and Trade told. One kilogram of cattle meat in Hungary was 250 forints (0.90 euro) two years ago, but the price rose to 1,100 forints (4 euros) after Turkeyimported tens of thousands of cattle from the Eastern European country, the chamber’s head, Mehmet Cabir Özel, said. Sheep prices also rose about two-fold, he said. An average-size sheep price rose to 30,000 forints (105 euro) from 17,000 forints (60 euros). There are almost no cattle left for sale, Özel said. The secretary-general of the chamber, Fadıl Başar, said cattle production in Hungary, which has a population of 10 million, is nearly 600,000. Following Turkey the largest buyers of Hungarian livestock are Italy, Germany and Austria, Başar said, adding that now it is very expensive for Hungarian people to eat beef. Livestock exports from Hungary to Turkey have almost come to a halt as the prices hit the ceiling, said Habi Berk, a businessman who has sold tens of thousands of cattleTurkey in the last two years, noting that it will take some time before the livestock market in Hungary recovers.

Nisan_SAYFA 1 4/17/12 2:51 PM Page 7

Made in Turkey Economic Newspaper, April 2012

Residential sales in Istanbul are steadily increasing

he prospect of projects aiming to change the urban face of Istanbul, and [the fact] that Istanbul will be in great favor as the way is paved for foreign investment in local real properties have heated up the sector,” said the report, which was issued by the Association of

Turkish Building Material Producers (İMSAD). Home sales in Istanbul had been below the national average lately, but the last quarter of 2011 showed a different picture, the report said, citing data released by the Turkish Statistical Institute (TÜİK) showing

increasing sales figures. Home sales in Istanbul rose 31.1 percent in the last quarter of 2011 compared with the previous quarter, while the figure was 15.9 percent compared to the fourth quarter of 2010, according to TÜİK’s latest data. At the national level, home sales were up 16.8 percent in the last quarter of 2011 compared with the previous quarter, according to the data. The rate of increase hits 21.8 when compared to the fourth quarter of the previous year. The number of residential sales rose to 118,867 at the end of the fourth quarter of 2011, up from 97,517 registered in the last quarter of 2010. The report said a sales number nearing 120,000 registered at the end of last quarter was the second-highest sales performance since the first quarter of 2008, when TÜİK started disclosing residential sales data. The second quarter of 2009 registered the highest home sales figure with 194,743.

The report said changes in home sales in other regions of Turkey were quite remarkable, showing an upward trend in home sales all over the country. Turkey’s eastern and southeastern regions have registered significant home sales increases. The combined home sales increase in Erzurum, Erzincan and Bayburt provinces was about 30.8 percent, while the provinces of Ağrı, Kars, Iğdır and Ardahan registered a 24 percent rise in the last quarter of 2011.The Istanbul skyline is dotted with sprawling residential complexes. Home sales in Istanbul rose 31.1 percent in the last quarter of 2011 and home sales were up 16.8 percent in the same quarter, according to TÜİK data. More foreign nationals and firms generating prospects for strong demand and urban transformation projects are causing an increase in home sales in Istanbul, according to a monthly report issued by a construction association.

Turkey best production ground for Asian car firms

STANBUL - Out of 200 Asian automotive managers, 81 percent say their favorite production center is Turkey, according to the recent “2012 Global Automotive Managers Study” released by global consulting firm KPMG. The study found the majority of global automotive managers, especially Asian manufacturers, preferred Turkey as a production base to enter emerging markets, especially because of their ambitions to grow their European mar-

kets and produce automobiles close to Europe. After Turkey, Egypt came in second as the most preferred production center at 11 percent, followed by Iran at 4 percent, and Morocco in fourth place at 2 percent, according to the study. After Japan, Turkey also came in second in automobile exports to Europe. Of the 1.1 million vehicles produced in Turkey annually, 80 percent are exported, said the study. Turkey’s custom union with

Europe and its logistical location have made the country an attractive production site for Indian and Chinese producers. Meanwhile, the study also predicts that of the top ten fastest growing auto producers, seven will be Asia-based and four of these will be based in China KPMG consultants also asked automotive managers what they thought would be the leading trends and products over the next five years. Managers said “fuel efficiency” would be the most

important trend. While 45 percent of managers said economic and comfortable products would be the most important, 40 percent said “environmentally friendly vehicles” would take the lead. Of the Turkish managers interviewed, 33 percent said economic and comfortable cars would be the most popular, while 17 percent said “fuel efficiency” would be the most important and another 17 percent gave their vote to “environmentally friendly” vehicles.

Ankara ready to host Mideast tourism fair

NKARA - Turkey will host the Middle East Tourism Exhibition (METEX) this year, hoping to double the number of Arab tourists visiting the country to four million and promote alternative trends in the industry such as health and shopping tourism. At least 300 professionals from more than 30 countries are expected to convene in Ankara on May 25- 27 for the event. The exhibition will feature both local and international stands on various aspects of tourism, such as culture, health care, spas, shopping, education, sports, nature, and ecology. The event will put a special emphasis Turkey’s medical sector and health

opportunities, in a bid to attract visitors from countries where health care is insufficient, such as Iraq, Syria, Iran, Libya, Egypt, Lebanon, Morocco and Tunisia. Turkish participants will also highlight Turkey’s 156 universities, ready to welcome foreign students, especially from countries which enjoy visa-free travel with Turkey. “The number of destinations for people traveling from the region must be increased for sustainable tourism. The exhibition will thus have important contributions to the number of tourists visiting various tourism centers,” said METEX Executive Board head Dr. Cüneyt Mengü in a press release.

Nisan_SAYFA 1 4/17/12 2:51 PM Page 8

Made in Turkey Economic Newspaper, April 2012

Turkey’s Energy and Environment Program Attracts World Bank Support

he World Bank’s Board of Executive Directors approved a Third Environmental Sustainability and Energy Sector Development Policy Loan (ESES DPL 3) for Turkey in the amount of Euro 455.4 million (US$600 million equivalent). The ESES DPL3 is the third operation in a series of three following the Programmatic Electricity Development Policy Loan (PEDPL1) in 2009 in the amount of Euro 548.4 million (US$800

million equivalent) and the Second Environmental Sustainability and Energy Sector Development Policy Loan (ESES DPL2) in 2010 in the amount of Euro 519.6 million (US$700 million equivalent). Grounded in the development goals articulated in Turkey’s Ninth Development Plan, the ESES DPL3 aims to help: (a) enhance energy security by promoting private sector clean technology investments and operations; (b) integrate principles of environmental sustainability, including cli-

mate change considerations, in key sectoral policies and programs; and (c) improve the effectiveness and efficiency of environmental management processes. “Turkey’s ambitious energy sector program is geared to meet the country’s growing energy demand in an efficient and sustainable manner,” said Martin Raiser, World Bank Country Director for Turkey. “In addition Turkey is stepping up its international and domestic engagement on environmental management and climate

action. The World Bank Group is proud to be Turkey’s partner in designing and implementing a program that will support growth and job creation, protect the environment, improve the quality of life for Turkey’s citizens, and make a contribution to the global challenge of containing emissions.”

Turkey's foreign trade deficit enjoys noteworthy recovery in February

urkey's foreign trade deficit dropped by more than one-fifth year-on-year in February, Turkey's statistical Institute said. According to the figures of Turkish Statistics Institute (TurkStat), the gap declined by 20.4 percent from $7.46 billion in February of 2011 to $5.93 billion in February this year. In February 2012, the exports grew by 17.1 percent to $11.77 billion, whereas imports saw only a slight increase of 1.1 percent to $17.52 billion, according to the official data. Calendar adjusted exports increased by 13.2% and imports decreased by 2.9% compared with February 2011. Seasonally and calendar adjusted exports increased by 6.7% and imports

increased by 0.2% compared with previous month. The reduction came as a result of a much weaker lira against major currencies the euro and dollar as well as the government's efforts to diversify export markets in line with the centennial objective to achieve exports worth $500 billion by the year 2023. A dollar was worth TL 1.59 on average in February of last year, against 1.74 in February of this year. A euro, likewise, was also much stronger compared to the national currency. It jumped from TL 2.18 in February 2011 to TL 2.33 three months ago. In February 2012 exports coverage rate of imports was 66.5% while it was 57.4% in February 2011.

İzmir port set to grow

ZMİR - The state railway authority has embarked on a huge rehabilitation project to increase the capacity and returns of the İzmir port. The port in the western province of İzmir has not received new investments for a long time since it has been undergoing a privatization process, the written statement issued by the authority said. Turkey’s Privatization

Administration (ÖİB) is overseeing the process of restructuring the İzmir port to operate as passenger and freight ports, and also a cruise port for the province, the statement read. The authority has planned to construct two piers, which will be able to service five big passenger ships at the same time, as part of the rehabilitation project, before the ÖİB goes out to tender for the construction

of an İzmir cruise port. The rehabilitation project also aims for large,

Panamax-type cargo carriers to dock at the freight port.

Construction turnover, volume up

NKARA Production and turnover in the construction sector increased in the fourth quarter of 2011, according to the Turkish Statistical Institute

(TÜİK). The turnover index in construction increased 10.8 percent in the fourth quarter of 2011 when compared to the same period in 2010, TÜİK said.

The turnover index in building construction increased 16 percent from 170.9 to 198.2, while the turnover index in civil engineering rose 4.9 percent from 244.6 to 256.7 in the fourth quar-

ter of 2011 when compared to the fourth quarter of 2010. The production index in construction increased 7.1 percent in the fourth quarter of 2011 compared to the same period of 2010.

Turkey's industrial production grows in February

urkey’s Statistical Institute (TurkStat) revealed industrial production. According to this, industrial production index increased by 4.4% in February 2012 compared to same month in previous year. In the sub sectors level of industry, Mining and Quarrying Index increased by 6.9%, Manufacturing Index increased by 3.2 % and Electricity,

Gas, Steam and Air Conditioning Supply Index increased by 12.5% in February 2012 compared to the same month of the previous year. Calendar adjusted production index in February 2012 increased by 1.6% compared to the same month of previous year and seasonal and calendar adjusted industrial production index increased by 0.7% compared to previous month.

Nisan_SAYFA 1 4/17/12 2:51 PM Page 9

Made in Turkey Economic Newspaper, April 2012

Turkey arises on shoulders of ‘dedicated Anatolian tigers’ Continued From Page 1 n his speech at the fourth general assembly meeting of TUSKON, Premier Erdogan marked the dedicated businessmen like TUSKON members find support in the Turkish nation instead of trusting “dark powers” and that they “conquer the hearts” throughout the world. Stating that TUSKON prefers content instead of voracity; instead of exploitation solidarity; as well as sharing and cooperation, Erdogan continued, “Staying at the back of the values by cordially; TUSKON has put forward its distinction by emerging its country and nation to the forefront not for itself.” “Not By weapon, pressure, imposes; not conquering lands; Turkey has become the gentleman of the horizons by conquering hearts, wins hearts ranging from New Zealand to Canada, from Japan to Brazil across the

5 continents. Turkey wins hearts via its successful contractors, businessmen, schools and teachers. Turkey gets place inside of hearts with the contributions to the world peace; stands up without bowing, defending justice in the most powerful way. By the powerful, resistance, stabile growing strong economy, not taking hand but giving hand now Turkey is shown by fingers, being monitored by appreciation. The point where Turkey has reached is the work of the nation indisputably. Turkey walks in the route of its nation, advances in the way which has been drawn by its nation. Turkey advances in line with the wish, demands, and objectives of its nation. For this reason Turkey maintains its growth.” Premier Erdogan highlighted the two secret words in the achievement of Turkey by saying; Erdogan noted those two

words are ‘trust and stability’. “You cannot build in the 15 thousand kilometers length double sided highway in 9 years, before during the history of the Republic only 6 thousand kilometers double ways had been built,” He recorded. PM Erdogan also reminded that currently there have been flights to 46 destinations, which were only in the number of fingers before, across Turkey. Premier Erdogan said they would continue to be remembered as a big state by letting Turkey grow, strengthen in its region, by heightening peace, brotherhood, solidarity, as well in the past. Economy Minister Zafer Caglayan, Science, Industry and Technology Minister Nihat Ergun, Istanbul Mayor Avni Mutlu, Turkish Exporters Assembly (TIM) President Mehmet Buyukeksi, Turkish Union of Chambers and

Commodity Exchanges (TOBB) President Rifat Hisarciklioglu as well as many outstanding businessmen were all in attendance. At the general meeting, current President Rızanur Meral was re-elected to his position; 21 other members were selected for the board of directors. In his speech, Rizanur Meral thanked the participants in the assembly reminding them that the success of TUSKON is

being watched by many countries who wish they had an organization similar to TUSKON and that this responsibility requires members to be more careful and hardworking and pay more attention. Marking the 40,000 TUSKON members and partnerships in 140 countries, Meral stated, “TUSKON strives to add more investors to its members to be able to contribute to Turkey’s growth and export target.”

Turkish Prime Minister Recep Tayyip Erdogan

Turkey leads region in mergers and acqusitions

ccording to the Central and South East Europe Mergers and Acquisitions 2011 Barometer report published by the Ernst & Young, Turkey completed the highest number

of mergers and acquisitions out of 11 central and southeastern European countries in 2011. The report, covering Bulgaria, Croatia, Czech Republic, Greece, Hungary, Poland, Romania, Serbia, Slovakia, Slovenia and Turkey, indicates that

Turkey completed 272 mergers and acquisitions totaling $13.7 billion in 2011. Touching upon the report, Ernst & Young’s Corporate Finance Department Head Musfik Cantekinler said that the report was not surprising to them. “Turkey had become

very attractive for both domestic and international investors in recent years thanks to its political and economic stability, strong growth and demographic factors. We expect Turkey to continue its achievements in the years to come as well,” Cantekinler said.

“New economic paradigm needed, including social and environmental progress” Continued From Page 1 et it fails to take into account the social and environmental costs of so-called progress,” SecretaryGeneral Ban Ki-moon said in his remarks at a high-level meeting at UN Headquarters in New York.Convened by the Government of Bhutan, the meeting – “Happiness and Wellbeing: Defining a New Economic Paradigm” – brought together hundreds of representatives from governments, religious organizations, academia and civil society to discuss the issue. In the early 1970s, the Himalayan kingdom introduced a new measurement of national prosperity, focussing on people’s well-being rather than economic productivity. In recent years, there has been growing interest in this concept – known as “gross national happiness” (GNH) – with the General Assembly adopting a resolution in 2011, which noted, inter alia, that the gross domestic product (GDP) indicator “does not adequately reflect the happiness and wellbeing of people in a country.” “We need a new economic paradigm that recognizes the parity between the three pillars of sustainable development. Social, economic and environmental well-being are indivisible. Together they define gross global happiness,” the Secretary-General told the meeting’s participants. Mr. Ban praised the Bhutanese Government for initiating the meeting, and noted that other countries have also started to explore various ways to measure prosperity that go beyond material wealth, such as Costa Rica, which strongly supports environmentally responsible development, and the United Kingdom, where statistical authorities are experimenting with measuring ‘national

Turkey’s foreign trade deficit records notable improvement

urkey’s foreign trade deficit dropped by more than one-fifth year-onyear in February, the official statistics bureau has said. According to Turkish Statistics Institute (TurkStat) figures, the gap declined by 20.4 percent from $7.46 billion in February 2011 to $5.93 billion the second month of this year. Exports grew by 17.1 percent to $11.77 billion, whereas imports saw a slight increase of 1.1 percent to $17.52 billion, official data show. The reduction came as a result of a much weaker lira against major currencies the euro and dollar – which gave Turkish goods a price advantage in international markets, while

making foreign goods more expensive domestically -- as well as the government’s efforts to diversify export markets in line with its centennial goal of having $500 billion in revenue from sales overseas by 2023. A dollar was worth TL 1.59 on average in February of last year as compared to TL 1.74 this February. The euro, likewise, was also much stronger compared to the national currency, jumping from TL 2.18 in February 2011 to TL 2.33 three months ago. The foreign trade deficit is a highly problematic issue for a country that relies on foreign supplies for nearly all of its energy needs and whose industries are also heavily dependent on foreign

intermediate goods to keep their wheels turning. This gap has grown to a barely sustainable level for the country as it has outpaced almost all world nations in economic growth in the past two years. The foreign trade deficit spiked from $39 billion in 2009 -- when the Turkish economy contracted by nearly 5 percent -- to $72 billion in 2010, when the economic growth rate was at 8.9 percent. It soared to $105 billion, or some 13 percent of Turkey’s gross domestic product (GDP) last year, when the national economy grew by around 8 percent again. The foreign trade deficit is problematic because it causes the country’s foreign reserves to constant-

ly bleed out and could eventually disrupt Turkey’s balance of payments as it also leads to a high current account deficit (CAD). To address this issue, the Central Bank of Turkey teamed up with government to add monetary measures on top of the administration’s fiscal measures last year. Whereas the bank aimed to slow down credit expansion and the weakening of the lira against the euro and dollar, the government imposed higher taxes in the form of what is called the private consumption tax (ÖTV) in Turkey on certain goods such as cars and mobile phones, as well as tobacco and alcoholic beverage, to cut imports.

well-being.’ The Secretary-General stressed that sustainable development is intricately linked to happiness and well-being, and underlined that the UN Sustainable Development Conference, also known as Rio+20, in Brazil in June, will need to provide an outcome that reflects this. The President of the General Assembly, Nassir Abdulaziz Al-Nasser, echoed Mr. Ban’s remarks. He emphasized that “today’s unprecedented ecological, economic and social challenges have made the achievement of happiness and well-being an unachievable goal for many,” adding that a new economic paradigm that takes into account not only economic growth but environmental protection and social development is needed. “It is imperative that we build a new, innovative guiding vision for sustainability and our future,” Mr. Al-Nasser said. “One that will bring a more inclusive, equitable and balanced approach that will promote sustainability, eradicate poverty and enhance wellbeing and happiness.” In a recent interview with the UN News Centre, Bhutan’s Prime Minister, Jigme Thinley, said that GNH is a development paradigm that has guided Bhutan’s development for several decades and that he hoped Monday’s meeting would result in recommendations which governments can act on. “I hope that by 2015 the international community will have adopted a sustainabilitybased economic paradigm, committed to promoting true human well-being and happiness, and ensuring at the same time, the survival of all species with which we share this planet,” he said.

BU ŞEHRİN İÇİNDE DIŞINDA, GÜNDÜZÜNDE GECESİNDE, BİR ÖMÜR, SADECE,

1+1 2+1 3+1

MUTLULUK ve HUZUR VAR!.. BU ŞEHİR KRİSTALŞEHİR!..

Bu şehirde kaliteden konfora, standartlardan ayrıcalıklara, “yaşam kalitesi”yle ilgili tüm bildiklerinizi unutup “çok özel bir dünya”da yepyeni bir yaşama başlayacaksınız!..

Başlayan ﬁyatlarla. İhlas Holding, önceden haber vermeden değişiklik yapma hakkını saklı tutar.

World Bank to finance state projects

STANBULMartin Raiser of the World Bank says Turkey is in the high income status. The World Bank has agreed to provide $4.45 billion in financing for Turkish government programs from 2012 to 2015 as part of its new Country Partnership Strategy (CPS). The CPS is organized around three core objectives, which are enhanced competitiveness and employment, improved equity and public services and deepened sustainable development. As part of these three thematic

areas, the World Bank will facilitate increased employment especially for women and youth, gender equity, a stable health system, improved public services, improved supply of reliable and efficient energy, increased use of renewable energy and implementation of climate action as well as an improved investment and business climate with broadened access to finance. In addition the World Bank will also provide for the financing of private sector investments in Turkey through the International

Finance Corporation (IFC), which will be in the range of $1.7 billion to $2 billion for the CPS period and for guarantees against non-commercial risks from the Multilateral Investment Guarantee Agency (MIGA). IFC and MIGA are members of the World Bank Group, according to the World Bank press release. The strategy serves as the business plan of the World Bank Group in support of Turkey’s own development and reform agenda as outlined in the government’s Ninth Development Plan

and the 2012-2014 Medium-Term Program. “As Turkey has entered high income status, our partnership needs to constantly evolve to ensure Turkey gets the best out of the combination of competitive financing, cutting-edge knowledge and global experience,” said Martin Raiser, the World Bank country director for Turkey. The IFC own-account investment program in Turkey is expected to remain in the range of $425 million to $500 million a year.

KRİSTALŞEHİR SATIŞ OFİ OFİSİ 29 Ekim Caddesi No: 23 34197 Yenibosna / İstanbul İstan

Tel e : 0212 454 25 25 Fax: 0212 454 21

bilgi@kristalsehir HX ZZZ.kristalsehi

Nisan_SAYFA 1 4/17/12 2:52 PM Page 10

Made in Turkey Economic Newspaper, April 2012

Bulgur to be promoted across the world Exports of agricultural produces rise in Jan-Feb In the first two months of 2012, the exports of agricultural products of Turley raised 9.5 percent to $2 billion 605 million

he ministry of Food, Agriculture & Stockbreeding has announced that agricultural produces’ exports

increased 9.5 percent in the first two months of 2012 over the same period last year. In the statement of the ministry, according to the data which was prepared by Turkey’s Statistical Institution (TurkStat), the exports of agricultural produces raised by worth $2 billion 605 million, increasing 9.5 percent compared to the same

period last year. The product groups, which are regarded increase mostly were, milk and dairy products with 53.6 percent in Jan.-Feb. 2012 over the same period last year. Milk and dairy products’ exports became $85,1 million, with 53.6 percent rise, milling products became $159 million with 8.3 percent rise; candy and sweet products became $82 million rising 34.1 percent, fruit-vegetable canned products became $282 million with 10.5 percent rise, pastry and other floury products raised $202 million with 39 percent increase.

urkey’s bulgur (crushed wheat) will be promoted throughout the world.

(Turkey’s Grain, Pulse, Oily Seeds and Products Exporters’ Unions Chairman Sahin Batalli said that clustering work to be made in bulgur (crushed wheat) and 75 percent support to be given by the Ministry of Economy in the scope of “Support for Development of International Competitiveness (Ur-Ge)”. According to the Anatolian Exporters’ Unions (GAIB), a meeting was held to brief about Ur-Ge to boost export of bulgur with participation of bulgur producers. In his speech, Batalli said that the Ministry of Economy would support the project to boost export, adding that bulgur sector would benefit from Ur-Ge supports via constituting the clustering work in the bulgur sector. Batalli continued, “The Ministry of Economy has started a new work to increase our firms’ competition power and to ease branding in the international area by giving importance to the promotion of the sector. I believe the promotion group would be successful in the advertising of bulgur in the world. The state will support necessarily for the firms that come together by forming a cluster of bulgur sector in the scope of Ur-Ge. Serap Gultekin, Coordinator of Gaziantep Clustering Information Center, in his speech said, “In this project, the state will reduce the burden on the shoulders of the firms by meeting 75 percent of the expenditures. Turkey targets $500 billion worth of exports in 2023. In order to accomplish the said exports, the state has planned some subsides for the firms. Ur-Ge is one of them. We wish to constitute some projects in order to get benefit from this subsidy via setting promotion of the products such as flour, bulgur and pulse.”

Nisan_SAYFA 1 4/17/12 2:52 PM Page 11

Made in Turkey Economic Newspaper, April 2012

Turkish leather sector enlarges its exports market Turkish leather businessmen achieved selling leather goods to China which is regarded as a leading of the world leather goods market last year

TUDIS Chairman Burak Uyguner

he Leather Industry Employers Association of Turkey (TUDIS) exported

leather goods worth $1billion 440 million to the world markets in 2011. Burak Uyguner, Chairman of The Leather Industry Employers Association of Turkey and head of the Board of Uyguner Leather, said that the leather businessmen have caught up with the success which Turkish economy has been displaying in recent years. He noted the leather sector’s exports were continuing increasingly with every passing

year and achieved worth $1billion 440 million in 2011. “In fact, the export potential of the leather sector is higher. The leather products are among the other products which are purchased and taken together with many tourists who come to Turkey. When these kinds of leather sales are included, the total leather exports exceed worth $3 billion,” Uyguner said. He highlighted that Turkish leather businessmen have selected China

and Hong Kong as the new markets, in addition exporting intensively to the USA, Russia and the EU. “We have begun to get the results from the Chinese market. Turkish leather sector exports to China. The new generation who has discovered the luxury consumption in China advances on the way to be loyal customer of the Turkish leather sector. Hong Kong which is the gateway of China to the world has taken its share from this develop-

ment. We exported leather goods worth $43 million to China and $45 million to Hong Kong in 2011,” TUDIS Chairman Uyguner concluded.

Real-estate sector contributes TL300 billion to Turkey’s economy

he association of Real Estate Investment Companies (GYODER) Chairman Isık Gokkaya said that their prediction became true about global financial crisis. GYODER Chairman Gokkaya said that real-estate sector was the locomotive in 2011, adding that the construction sector contributed worth TL300 billion to the economy of Turkey. GYODER released the reports entitled, “Basic Indicators of

Turkey’s Real Estate 2011” and “The Q4 of Real Estate Sector in Turkey and the World in 2011”. The figures of residence licenses and construction permissions left behind the figures that belong before crisis. The 642 thousand 972 unit residence licenses, 547 thousand 635 units residence construction permission was taken in 2011. The improvement of real estate in the provinces of Anatolia was clearer than Istanbul, Ankara and Izmir

and the sales of the Anatolian provinces continued to increase their shares with 58.3 percent. He also drew attention to increase of foreigners in commercial real estate. Gokkaya indicated that number of shopping malls to which foreigners either are partner or owner reached by 69, as for leasable sq meter bigness of these malls increased by 2 million 417 thousand 657 sq meters. Construction investments has reached by TL118 bil-

lion The sales of the residences accomplished over the number in 2010. Apart from sales via agreements, number of 419 deeds handed over. Gokkaya continued, “As we foresaw, the 2010 was normalization and recovery year as for 2011 was growth year again. After the crisis, Turkey’s real estate has caught stabile and sustainable growth as favorite of the international investors. The bigness of the total construction investments

TAYSAD aims to achieve powerful industry, powerful brand

urkish Association of Automotive Parts & Component Manufacturers (TAYSAD) accomplished its 34th General Meeting. Following the general meeting TAYSAD has decided to grow its objectives. The new slogan, “Powerful Industry, Powerful Brand” will be also supported along with the targets under the ten headlines. Dr. Mehmet Dudaroglu was elected with consensus as the new chairman of TAYSAD. Bringing the automotive industry together at the 34th meeting of TAYSAD, the current chairman Celal Kaya delivered its duty to the new chairman. He said that they had achieved 98 percent of their targets in 2011, adding that they believed the sector would reach $22 billion worth of exports in 2012. Attending to the general meeting of TAYSAD; Nihat Ergun, Minister of Science, Industry and Technology, said that the automotive industry has come to a very crucial place in terms of the domestic made car. “We have reputation in this sector” In the general meeting Dr. Mehmet Dudaroglu was elected as the new chairman with consensus, the predecessor chairman Celal Kaya thanked for everybody one by one who supported him, wished successes for the new chairman and his team. Sharing the activities during his period with the members, Celal Kaya, - stressing they had achieved 98 percent of their targets which were determined on 17 Feb 2010 -

recorded that the automotive industry had accomplished great successes in 2011. He noted that 2011 totally 1 million 260 thousand vehicles were produced, 801 thousand of them were exported, $20,4 billion worth of exports were gained. He added that the supplier industry’s exports became 44 percent to $9 billion in the overall automotive exports. Highlighting that they had walked towards their targets with the slogan, ‘To global with R & D’ in his chairmanship period, Kaya said, “We have directed to the needs of technologic and know-how and activities in order to improve our industry between 2010-2012. Now R & D center is in the activity for the total of 37 automotive firms, 34 of them is TAYSAD members. In order to make groundbreakings on the way to convey the new developing technological trends to our country, we opened TAYSAD office in Germany. We get feedback beneficially from there. In the new targets of TAYSAD, there are India, China and the USA.” Kaya stated his expectations as the political stability, fiscal discipline and continuity of the new investments in 2012. He underlined that 1,200 million vehicles production, $22 billion worth of exports, sales of 800 thousand unit vehicles in the domestic market. Kaya reminded the objective of $500 billion worth of exports in 2023, adding that the automotive sector has a target to achieve exports worth $75 billion. “For this reason, big

investments should be made in Turkey. We are ready to work about domestic made car,” he noted. “Let’s make pitch together, play altogether” Minister Ergun reminded that Turkish automotive sector is a locomotive sector for the Turkish economy; especially the sector produces for many various countries and very crucial brands. Ergun recalled in 2011 the main industry’s exports increased 10 percent as for the supplier industry’s exports surged 26 percent. “We aim to achieve to enter the biggest ten economies of the world, but we do not own a domestic car brand. Our trust in the supplier industry is full; we can be able to make our domestic brand via our supplier industry’s infrastructure. In Turkey of the year 2023, it is necessary our sectors should have their own brands. Automotive is closest sector to this aim. The OEM firms in Turkey should be able to say to their partners, ‘so far we have been partner to you; from now on, let’s make you the partner to us that to make a new brand together.’ Such a relation must be set up. Let’s make the pitch together and play altogether. Who plays better let’s them to win.” Minister Ergun noted that Automotive’s Strategy Certificate entered into the force one year ago, adding that they had recorded very important developments in R & D which is one of the main milestones of the strategy certificate. Ergun said within a few

years the supplier industry firms’ R & D centers would double. “Electric vehicles will take place in our life quickly” Ergun indicated that rising to the upper level both in the R & D and the new generation technologies are very critical. “Together with the global warming the awareness and expectations in the environmental factors are raising in the entire world. For this reason, the studies in the automotive industry will increase in the matter of new materials and technologies. From now on, it is also extremely important our supplier industry being ready to these changing conditions. In my opinion electric vehicles will enter our life steadily quicker. We must be ready to this new process. We see that some of our industrialists make serious works in electric vehicles. I would like to say in the upcoming process very successful works will appear.” TAYSAD has united the sector Turkey’s automotive authorized sellers association chairman H. Sukru Ilisal said that they had aimed to open branches in every province of Turkey. Automotive Distributors’ Association Deputy Chairman Ali Bilaloglu in his speech he marked he wished the continuity of the supplier industry. Automotive Industry Exporters’ Union Chairman Orhan Sabuncu said 2011 was a successful year in export, but there was a road to be taken.

acted as a driving force in the Turkish economy. The investments of construction reached by TL118 billion which is regarded as a historical figure. TL41,5 billion of the figure belonged to the public sector, TL76,5 billion was private sector. The construction sector contributed worth TL300 billion to the economy. The growth and development in Turkey’s real estate sector steadily deepen, attain to the healthier, more homogenous structure.”

Turkey to open science attachés abroad Continued From Page 16 e want to have a say in the world via trade, diplomacy, and cultural and scientific achievements, the elements of ‘soft power,’ not via military force and imperialism,” Ergun said. Turkey will also launch a Science and Technology Council in order to bring the public and private sectors together in Turkey and abroad in the fields of science, technology, and innovation, Ergun recorded.

Nisan_SAYFA 1 4/17/12 2:52 PM Page 12

Made in Turkey Economic Newspaper, April 2012

Nisan_SAYFA 1 4/17/12 2:52 PM Page 13

Made in Turkey Economic Newspaper, April 2012

Anadolu Agency (AA) aims to ranks in top five “The ruling party, Justice and Development Party has put forward a different vision for 2023, in terms of Turkey’s exports, Gross Domestic Production (GDP), foreign policy, its aspire for being a big state and what will be done to achieve these.”, Arinc said. Deputy PM Arinc noted they were experiencing the excitement of what kind of Turkey they envisage. Arinc continued, “Anadolu Agency is a very rooted establishment. The thing that we do is to enter first 5 big agencies across the world. For this, broadcasting in different languages, preparing exclusive news, taking into consideration social media and growing up correspondents, journalists, members of press in the best way.” Turkish intellectuals Yunus Nadi (Abalioglu) and Halide Edip (Adivar) discussed estab-

elivering a speech at the ceremony, Turkish Deputy Prime Minister Bulent Arinc said Anadolu Agency's deserved place is among the top five news agencies throughout the world. At the meeting which was held at Rixos Hotel in order to celebrate 92nd anniversary of Anadolu Agency (AA) and unveil its centenary vision in the year 2020, Deputy PM Arinc said, “Today is the 92nd anniversary celebration of AA. Anadolu Agency and Directorate General of Press & Information were established during the War of Independence by the directive of Ataturk.” Arinc also reminded that AA has put forward its objective for the centenary celebration when would be celebrated in 2020. He also said that the government had also explained what kind of vision to be achieved in 2023 with a self confidence.

lishment of a news agency in Ankara when they were en route from Istanbul to Ankara five days after Istanbul was occupied (March 16, 1920). Yunus Nadi and Halide Edip

Turkish Deputy Prime Minister Bulent Arinc

thought to name the new agency after "Turk", "Ankara", and "Anadolu" (Anatolia). Mustafa Kemal Pasha heralded establishment of AA with a historical circular issued across the entire country, and AA's first office was opened in agricultural

school in Ankara. AA broadcasted its first story on April 12, 1920, and wrote about the situation of the country and remarked its establishment purpose. The first bulletin included not only domestic but also international stories. Anadolu Agency, which aims to become one of the five most influential news agencies in the world by 2020, the centenary of its, continues to broadcast stories without making concessions of the principles. The agency has prepared strategic plans with contributions of consultants within the scope of its centennial vision, and re-set its organizational structure, definition of duties, logo, institutional identity and web-page, taking into consideration "reliable, objective, ethical and fast" reporting principles. Anadolu Agency set its main target under 100th year vision as being one of the five most influ-

ential news agencies of the world by 2020. In March, AA opened a regional office in Balkans based in Sarajevo, Bosnia and Herzegovina, which broadcast news stories in Bosnian, Croatian and Serbian. The agency also signed cooperation protocols with representatives of 20 media organizations in Bosnia-Herzegovina. Press organizations that signed the protocol with AA include Bosnia-Herzegovina State TV (BHT), Federal News Agency of Bosnia-Herzegovina (FENA), MINA News Agency, Al Jazeera Balkans, TV1, RTV, USK radio and television, Zenica radio and television, BPK TV, TK TV, Sa TV, Nezavisne Novine paper, Dnevni Avaz newspaper and Oslobocenye newspaper. Ozturk recently announced that AA would be opened up to the international community with services in 11 languages.

Istanbul hosts World Economic Forum in June

he pace and complexity of global change in recent years have been unprecedented, with Europe, the Middle East, North Africa and Central Asia emerging as a key mega-region of the future. The World Economic Forum on Europe, the Middle East, North Africa and Central Asia will therefore convene over

1,000 leaders in Istanbul, Turkey, to catalyse new partnerships for growth and human development. • In light of the global economic contraction, how can governments and business leaders design and deliver new models to drive innovation and economic agility across this mega-region? • How can the region strengthen energy cooper-

ation and deliver the highvalue trade and investment in science and research that are critical to knowledge economies? • How can the social

dynamism unlocked by developments in the Middle East and North Africa be transformed into a decade of entrepreneurial opportunity, human security and good governance? The co-chairs of the meeting are Frederico Curado, President and CEO of EMBRAER; Ibrahim S. Dabdoub, Chief Executive Officer National Bank of

Future of automotive sector to be discussed in Istanbul

he 4th edition of the congress entitled “Future of Automotive” will be held at Halic Congress Center on 26 April, 2012. Sukru Ilisal, Head of Automotive Authorized Sellers’ Association, in his press conference stated that the main theme of the congress would be “Power of Branding”, especially the current situation to be analyzed in the axle of domestic car making. Ilisal noted that the aim of congress was to make

up a platform where all shareholders of the sector would state their point of view easily about hot topics of the sector. He added that the main and supplier industries’ representatives, distributors, authorized sellers and top level administrators and staffs of the sector would attend to the meeting. Ilisal recorded that opening speech of the congress would be delivered by Nihat Ergun, Minister of Science, Industry and

Technology and Zafer Caglayan, Minister of Economy and Prime Minister Recep Tayyip Erdogan to be invited to the congress. At the congress also former German Chancellor Gerhard Schröder would speak about “Globalization and Future of EU”, also a swot analyze of the sector to be made at the congress in an interactive way first time, Ilisal said. In the scope of the congress, the chairmen of OIB, TAYSAD, TOBB

and OYDER will analyze risk and opportunity by letting either powerful or weak sides of the sector reveal. Senior administrators and director generals of TOFAS, Oyak Renault, Ford Otosan, Toyota Turkey and Hyundai Assan will put forward importance and power of “Made in Turkey”. Nearly 1000-1300 persons expected to join the congress, the congress will be monitored via www.oydermarkalasmaningucu.com.

Turkey and Turkish Cyprus will gain from water, oil ties

oth Turkey and Turkish Cyprus stand to gain when Turkey begins piping water to the island and The Turkish Petroleum Corporation (TPAO) locates oil there, for which a survey is about to get underway, Turkish Cyprus’ Prime Minister İrsen Küçük has said, adding that “When water combines with oil, no one can stop our economy.” Küçük said drilling equipment has begun to arrive on the island, and the oil exploration will start by the end of April as planned, speaking in an interview with the Anatolia news agency.

“We expect the drilling to start promptly this month,” he said, noting that drilling teams have also arrived on the island. TPAO will carry out the drilling activities in line with a protocol signed between Turkey and Turkish Cyprus. Turkey will also send water to Geçitköy Dam in Turkish Cyprus via underwater pipeline. The foundation for the dam has been laid. “This is [something to celebrate with] festivity,” Küçük said, adding that 75 million cubic meters of quality water coming to Turkish Cyprus will be phenomenal. “We will exercise our rights over

our soil. We have told Greek Cyprus that if there can be a solution [leading to the reunification of the island], then we should do the drilling together, explore natural resources together and share them. But the Greeks have been drilling despite our calls,” he said. “We are complete-

ly dependent on foreign sources of oil. We spend a big chunk of our budget on fuel, for needs including heating and electricity production. Finding local oil would make a significant contribution to our economy. When water combines with oil no one can stop our economy.”

Kuwait; Muhtar A. Kent Chairman of the Board and Chief Executive Officer of Coca Cola; Guler Sabancı Chairman and Managing Director of Sabanci Holding; Andrey L. Kostin Chairman and Chief Executive Officer VTB Bank; Ditlev Engel Chairman and CEO of Vestas Wind Systems; Giuseppe Rechi, Chairman of Eni.

OECD: US and Europe facing separate growth tracks

conomic growth in the G7 countries is expected to be firmer through the first half of 2012, but the recovery remains fragile and will likely proceed at different speeds in North America and Europe, the OECD said in its latest Interim Economic Assessment. The Assessment, presented in Paris by Chief Economist Pier Carlo Padoan, says the G7 economies are projected to grow by 1.9 percent in both the first and second quarters of 2012, although a strong variance in outcomes is expected across this group of countries.

See the Chief Economist’s presentation “Our forecast for the first half of 2012 points to robust growth in the United States and Canada, but much weaker activity in Europe, where the outlook remains fragile,” Mr Padoan said. “We may have stepped back from the edge of the cliff, but there’s still no room for complacency.” In the United States, the ongoing rebound in employment, stronger consumer confidence, higher equity prices and credit growth are underpinning the recovery, with growth projected at 2.9 percent in the first quarter and 2.8 percent in the second. Canada is projected to grow by 2.5 percent during each of the first two quarters.The optimistic view on North America contrasts with the much more fragile outlook in Europe, where weak consumer confidence, climbing unemployment and tight credit all point to further falls in activity.The OECD projects that the euro area’s three largest economies Germany, France and Italy - will shrink by 0.4 percent on average during the first quarter, before a moderate 0.9 percent growth recovery in the second quarter.Seen individually, the German economy is expected to accelerate through the first half of the year, with growth of 0.1 percent in the first quarter and 1.5 percent in the second. The French outlook is more muted, with a -0.2 percent reduction in the first quarter followed by 0.9 percent growth in the second. In Italy, weak industrial production and household sentiment suggest recession for the first two quarters of the year, but the most recent indicators have been more positive, resulting in slightly better projected growth for the second quarter, the OECD said. Growth in Japan is projected to rebound strongly in the first quarter to 3.4 percent, before easing to 1.4 percent in the second quarter. A number of factors threaten the recovery, including rising oil prices, weakening activity in emerging market economies, notably China, and a slowdown in world trade growth that reflects weakening global demand. “Government action will continue to be critical, particularly in the euro area, where unfinished policy business on fiscal frameworks, financial firewalls and fundamental structural reforms must move ahead,” Mr Padoan said.

Nisan_SAYFA 1 4/17/12 2:52 PM Page 14

Made in Turkey Economic Newspaper, April 2012

Cotton International 2012 Global Summit to Debut in Bangkok The global forum for textile mills, cotton merchants and industry partners to connect, engage and transact business

otton International magazine announces its inaugural global event to convene the leading cotton and textile professionals from around the globe and address the challenges and new opportunities for the full cotton value chain in today’s volatile market. The Cotton International 2012 Global Summit is being held April 25-27 at the elegant Landmark Hotel in Bangkok, Thailand – the heart of the increasingly important Southeast Asia region. In cooperation with the International Textile Manufacturers Federation (ITMF), and other prominent industry organizations, the 2012 Global Summit will attract cotton industry leaders from key markets and allied industry partners to connect, engage and transact business. “The incredible market volatility and uncertainty over the last three

to four years has fundamentally changed the way cotton and textile professionals must run their businesses,” said Gary Fitzgerald, CEO and Chairman of Meister Media Worldwide, parent company of Cotton International. “As the voice of the global cotton community, it’s our mission to help all of the stakeholders in the industry turn this market volatility to competitive advantage. The Cotton International 2012 Global Summit is a big step toward fulfilling that mission.” The global financial markets and the global economy are going through a period of cyclical and structural changes that generate

uncertainty and volatility, presenting new challenges for companies all over the world. “The textile industry finds itself dealing with volatile raw material prices and relatively inflexible retail prices, so survival depends on the ability to adapt business models in an everchanging environment,” said Christian Schindler, Director General of ITMF. “That’s why it’s so crucial to meet, discuss and analyze future challenges and opportunities with business partners from all sectors of the cotton and textile industries. The Cotton International 2012 Global

Summit in Bangkok will be an ideal occasion to do that.” The CI 2012 Global Summit program will feature panel discussions by industry leaders on key issues such as the changing market dynamics, emerging market developments, global trade patterns, contract sanctity in the value chain and risk-management strategies for mill owners. “The current health and longterm sustainability of the global cotton industry is best served by direct interaction among industry sectors, in a setting that encourages communication, relationship-building, education and the adoption of best practices to facilitate trade,” Fitzgerald said. “This gathering of leading cotton and textile professionals from across the globe will serve to ensure cotton’s leadership in these challenging times and its position as the world’s most popular and sustainable fiber.”

SUBCONIST to expose companies to new markets

UBCONIST (International Subcontracting Exhibition) is the first and the only industrial subcontracting exhibition in Turkey and in the region. SUBCONIST 2012, with its expanded enclosure, not only will be able to gather main contractors and subcontractors at one location, but also will become the meeting point of the industry. SUBCONIST offers you the opportunity to meet with new business partners and find new markets to operate in, the fair organization states, adding numerous export

opportunities and new customers will be waiting for you at SUBCONIST 2012 which will be held CNR Expo Center, Istanbul. Partnership days Where special meetings take place between the exhibitors and the main contractors, is organized currently with the shows. The meetings are arranged prior to the show, by matchmaking of supply and demand of exhibitors and VIP buyers. Exhibitors have the opportunity to inform the main contractors about their production facilities and capabilities in spe-

cially-designed conference meeting rooms for the four-day-fair. Highlights of Market Automotive industry is currently the key element of Turkey's economy, with US $25 billion exports, US$ 15 billion imports and 15-20% annual growth rate. Subcontracting compose 73% of all automotive imports. Turkish automotive industry exports 80 % of its production to foreign countries. Turkey is the 15th largest manufacturer among 29 machine tool manufacturing countries, with a production value of US $560 million.

White goods market size amounted to US $6 billion dollars. Imports of machine tools shows an annual increase of 10% each year. Turkish machine tools industry exports to and imports from nearly 150 countries worldwide. The number of automotive, electronics, and white goods brands produced in Turkey has dramatically increased in last decades and it is continuously growing. Turkey is the first choice for efficient and low cost transportation. Turkey has a strategic geographical location, which links Asia to Europe.

Turkish furniture sector to furnish every corner of the world

ssociation Turkey’s Furniture Manufacturers (MOSDER) posted the export data of the furniture sector which was accomplished in 2011. In line with this, Turkey will take place in the first ten exporter countries within 5 years. While in 2008, the production in Turkey was worth $4,8 billion, in 2011 the production attained by worth $6 billion, increasing $1,2 billion. As for consumption, rose from $7 billion to $9 billion, with $2 billion rise. Iraq, Germany and Iran ranked in the first three in Turkey’s furniture exports. In 2011, Iraq topped with $286,5 million, Germany ranked second with $168,8 million and Iran became third with $110,75 million and then Azerbaijan with $108,5 million worth of Turkey’s furniture exports. According to the research, in the exports of sitting category, Germany ranked first with $94 million, Iraq was second with $93 million, Iran was third with $56,8 million. The rate of the product groups in the overall exports; sitting furniture had 0.38, furniture which is used in medicine, surgery, dentistry accounted for 0.02 percent, as for other furniture and parts were 0.54 percent; bedsprings, mattresses, quilts, cushion, hassock, covers for knee and foot, etc. were 0.06 percent. World’s furniture production figures show increase

According to the data of the world, in 2010, while the furniture production was worth $5,6 billion, in 2011 the figure became $6 billion, consumption rose from $8 billion to $9 billion. It is marked that Turkish furniture sector shows growth in the world, letting Turkey’s furniture sector in the exports enter the leading countries seems the biggest target in a short time. Ramazan Davulcuoglu, Chairman of MOSDER, said; “As MOSDER, our objective is to range in the first 7 exporter countries. When we take into consideration 20 percent growth in last 2 years and the same growth would occur this as well, we foresee that we will be in the first 10 exporter countries within the next 5 years. We have very active market in Turkey. However making up the Turkish furniture style to be sought-after, wished across the world is our target. In this meaning, we support the designers that take place in the furniture sector reaching by $9 billion in the domestic market and focusing on $2 billion worth of export target. Iraq, Germany, Iran, Azerbaijan, Nakhchvian, France and Turkmenistan and then Russia, Saudi Arabia, Britain, Greece, Netherlands and Libya are among the countries where Turkish furniture is exported intensively. In the upcoming periods, we believe that our furniture will gather great admiration first being the European countries and then every corner of the world.”

Counting down for “The Hotel Show 2012”

rganizers of ‘The Hotel Show 2012’, the Middle East’s most important supply, fit-out and service exhibition for the hospitality market, have experienced a surge in interest from international and regional companies wanting to tap the anticipated growth in the GCC hospitality sector. Taking place at the Dubai World Trade Centre from 15-17th May 2012, The Hotel Show is seen as the gateway through which to reach the vast business opportunities in the region.The GCC hospitality industry is expected to enjoy high growth in 2012 as international hotel chains establish new properties in the region to support anticipated increases in inbound tourism. Combined with increased spend on restoration and refurbishment works, the outlook for suppliers to the hospitality sector looks particularly buoyant. A healthy pipeline of hotel projects remains in place for 2012 with a focus on budget hotels and commercial tourism across the GCC. This is being driven by religious tourism

demands in Saudi Arabia, the associated accommodation requirements of the Qatar World Cup 2022, increased tourist arrivals to the UAE and development plans to position Oman as a top tourist destination. Keeping pace with the demands of the region’s burgeoning hospitality market, The Hotel Show has refocused its offering in 2012 to provide an unmatched sourcing platform for buyers and sellers of hospitality supplies and services.The GCC hotel industry is enjoying robust growth, increasing spend in 2011 by a phenomenal 230% or $1.8bn as hotel operators and developers follow aggressive expansion plans across the region. This is excellent news for international industry suppliers looking for the best opportunities globally, and is certainly being reflected in exhibitor confirmation for our 2012 show,” said Frederique Maurell, Events Director, The Hotel Show.in 2011, The Hotel Show attracted 14,800 hospitality professionals from over 45 countries and venue organizers

are delighted at the current outlook for 2011 with 50% of the space already sold eight months prior to the actual event.in 2012, The Hotel Show will offer an impressive program of functions and awards covering five sectors segmenting their 20,000 square meter exhibition floor with clear and easy-to-navigate zones: Interior & Design, Outdoor & Resort Experiences, Operating Equipment & Suppliers, Technology and Sustainability and Hospitality Experience.New to the 2012 exhibition is the ‘Hospitality Experience’, an additional category to support the growing regional trend for ultra luxury and unique hospitality experiences - from lavish weddings, banqueting and private parties to concerts, and luxury yachting excursions. The Middle East is expected to witness US$6 Billion worth of projects reaching completion by 2013 which is why we have added new additions to the program to ensure we service suppliers, hotel owners and hotel managers with all their needs at this exciting time,” said Maurell.

Nisan_SAYFA 1 4/17/12 2:53 PM Page 15

Made in Turkey Economic Newspaper, April 2012

Güneş Hotel, one of popular hotels in Istanbul Güneş Hotel was established in 1989, in the district of Merter, Istanbul.

ince its opening day, serving in the 4-star standard and features one of good and popular hotels. “Our hotel owns 130 rooms, 3 dining salons, two meeting halls with the capacities of 90 and 180 people respectively. Our hotel settles at a distance of 6.5 km to Ataturk Airport and CNR Expo Center, 7 km to Sultan Ahmet (Blue Mosque), Beyazit, 11 km to Taksim districts,” Emin Gude, General Manager said. Gunes Hotel has made principle the slogan, “Gunes Hotel is your home at Istanbul” to let the guests relax akin at their own homes. “Our objective is to offer quality service in the highest standard. In the scope of this consciousness, hospitality, courtesy, smiling face have been importance for us. We believe that those who adopt change continuously to be successful. In order to present high in quality, education is very important, for this reason our experienced administrators who have been working with us for long years, chair these works. The services which are offered at our hotel

are like the rings of a chain. The power of a chain is as much as its the weakest ring. For this reason, cooperation and solidarity make us more powerful. In short, the professional service understanding with amateur spirit constitutes the culture of Gunes Hotel. Throughout discipline, the personnel, who believe amateur spirit, bonds to ethical values in the framework of love, respect,” Emin Gude highlighted. The 65 percent of guests constitute the continuously comers. Especially accommodation rate of women is fairly high in the guest profile, Gude says.

As for the basic reason of that, can be counted featuring reliable and safe, giving importance to cleanness and hygiene, feeling the guests themselves special, Gude recorded. “Our hotel is respectful and sensitive to the environment. Giving importance to green and beauty, Gunes Hotel is aware of the country’s values. So, it follows technology, researches and after the necessary tests and then carries out them indoor quickly, Gude noted. Stating that they, as administration, were trying to reach the new markets in terms of technology,

knowledge and marketing by joining fairs both in the home and abroad to be contemporary, General Manager Enin Gude said, “Today you can reach everywhere from your sitting place, but you cannot enable to make everybody come to you. So, it requires going to there. Who knows very well, those who read much or those who travel much? I say ‘who is able to use knowledge, knows better’.” Gude highlighted that when regarded per capita spending and accommodation cost for one night of tourists who go to the mega cities such as Istanbul, we see that there are many things must be done and more distance to acquire. “As for the level, which has been achieved within the last 20 years, is very important. The macro plans to be outlined either by the municipalities or the governments will let this growth expand more. In this growth, we should not rule out the Turkish Airlines. The new destinations of the airlines allow us approach to the targets that we want to attain,” Emin Gude added.

Mother’s Day brunch at Mövenpick Hotel

övenpick Hotel Istanbul offers different surprises to all members of your family on Mother’s Day. A colorful and entertaining mother ’s day waits for you with a delicious brunch, live music, special pastry decorating special to children. At the brunch which will be presented at AzzuR Restaurant on Sunday 13 May, 2012 between 12.00 a.m.15.00 p.m., you can taste flavors which were prepared by the Italian Chief Giovanni Terracciano, such as different kinds of Turkish breakfasts, perfect examples from the Mediterranean culinary, omelets and crepes, homemade pastas, hot pizzas, delicious sushi, attractive desserts and worldwide known Mövenpick ice-creams in company with live music. While you enjoy the taste of delicious brunch, your children will be interested in the course of pastry decorating which was specially prepared and they will find opportunity to offer heart shape pastry on which they write their moth-

ers’ names. All mothers will be guest of Mövenpick Hotel Istanbul on the Mother’s Day Brunch that is the most delicious way to show

children between 0-6 ages, as for children between 7-12 years of age 50 percent discount to be carried out.

Mövenpick Hotels

your love to your mother and brunch price will not be taken from mothers. Plus VAT costing 98 TL for each person, brunch will be free for the

& Resorts is an international hotel chain with Swiss roots serves with over 16,000 employees, 70 hotels

and holiday villages in 24 countries. There are also 36 more projects planned and to be opened this year in Hurghada, Sharm El Sheikh and Abu Soma (Egypt), Ankara (Turkey), Chiang Mai and Koh Samui

(Thailand), Palawan (Philippines) and Dubai (UAE). Giving importance to grow and develop in its targeted market in Europe, Africa, Mideast and Asia, Mövenpick Hotels & Resorts operates resort hotel, business and conference management. It cares to protect the characteristic features of the places where it is existence.

A solution from Dedeman Ankara to relieve the business world: Executive Lounge edeman Ankara has been watching the intense and stressful pressure of work in the business world closely and, as a result, has started to implement an Executive Lounge service for guests who lodge on the executive floor and in suit rooms so that they can relax and feel better. Guests who prefer the executive floor and suit rooms will be able to have breakfast while watching the news and reading their newspapers and will also be able to benefit from a rich catering services provided at midday and in the evening. The

• Executive breakfast (06.30 - 11.00), • Afternoon Tea-coffee and cookies (12.00 - 14.30), • Appetizers and cocktails before dinner (17.30 - 19.30), • Appetizers and a drink service in the evening (20.00 – 22.00) Some of the relaxing services provided by Ankara Dedeman, whose accommodation arrangements are devoted to the needs of the business world, for guests lodging on the Executive floor and in suite rooms are as follows: early check-in/late check-out according to availability, free

Executive Lounge, situated on the 7th floor of Dedeman Ankara, provides service from 06:30 until 22:00 within the week and from 07:00 until 22:00 during weekends. Daily services rendered in the Executive Lounge are as follows:

ironing of one suit and two shirts on day of check-in, free internet in the Executive Lounge and in the room, free newspaper service in addition to the magazines, books and newspapers available in the room.

Nisan_SAYFA 1 4/17/12 2:53 PM Page 16

Made in Turkey Economic Newspaper, April 2012

Turkey to open science attachés abroad

Central Bank governor praises incentive scheme

he Central Bank Governor Erdem Başçı has welcomed the recently announced incentive system, which puts complementary financial policies into action over the through payroll and corporate tax cuts, diversifying region by region. “We welcome the latest package of measures and think that it sets monetary policy at ease and reinforces it,” the Anatolia news agency quoted Erdem Başçı as saying at a conference on policy responses to commodity price movements on April 7. The package does so in two ways, according to Başçı. Firstly, it eases the output gap and inflationary pressures, increasing the potential production level as a

supply-side expansionary package. Secondly, it takes some of the burden away from monetary policy. “This is a package of measures precisely to maintain profit margins at a stable level. On the one hand the costs of firms rise due to energy prices, but on the other hand firms receive compensatory support via tax [cuts],” he said, adding that fluctuations in commodity prices, and particularly energy imports, still pose risks for the economy. Dependency on energy imports has made the current accounts balance more sensitive to commodity price fluctuations, he said. Temporary tax cuts on labor and capital, rather than sales, as part of the incentive system are there-

fore considered, “as we could face a supply-side or a cost-side shock.” Provincial Imbalances The announced system is the most comprehensive incentive system to date, the Union of Chamber and Commodity Exchanges (TOBB) head Rifat Hisarcıklıoğlu said. According to Hisarcıklıoğlu, there five very important factors: “It is very important to divide provinces into six regions. Thus, imbalances between provinces can be minimized. The [national] economy administration broke a new ground by enabling provinces to change regions. It is a very important step to grant large incentives to the strategic sectors regardless of places of

investments.” He added that traditional industries had not been left out, despite the support for high technology industries in an attempt to the decrease Turkey’s current account deficit. “We especially support the incentives for labor-intensive industries, as the unemployment problem in the whole world is deepening fast,” he said. Comprehensive support on interest rates is one of the main factors propping up private sector investment, as high funding costs are one of the biggest problems faced by firms. Organized industry zones will turn each into a Silicon Valley, with incentives carved out for these zones and investment deductions, Hisarcıklıoğlu also said.

Turkish Central Bank Governor Erdem Başçı

It is expected that the coverage rate of the needs of the Turkish Armed Forces will rise to 60-70 percent, from the current rate of 52 percent, Defense Industry Undersecretary Bilal Aktaş said, without specifying a period. “There are clustering activities in Eskişehir, Istanbul, Ankara [in the defense industry] … Incentives will support such investments,” he said, according to the Anatolia.

urkey is going to open science attache offices at the consulates including San Francisco and Boston in the US, Japan, Germany, according to the announcement of Minister Ergun. Foreign Minister Ahmet Davutoglu and Science, Industry and Technology Minister Ergun signed a “diplomacy protocol” to let efficient cooperation between the two ministries. The attaches would report science and technology developments and search for area of cooperation. Turkey will appoint science attachés to its embassies abroad, and assign volunteer science and technology representatives, Nihat Ergun Minister of Science, Industry and Technology said. “We are going to open the first offices of science attaché at the consulates in San Francisco and Boston in the U.S., Japan, and Berlin, Germany and then later in Los Angeles, London, Beijing, Seoul, Moscow, and India,” Ergun recorded. Ergun noted Turkey has needed to integrate its effort in science and technological fields with other countries. “The attachés will facilitate activities such as reporting scientific and technological developments, developing areas of cooperation between Turkey and other countries, and meetings at which Turkish and foreign academicians and businessmen can network.” The science and technology representatives would work voluntarily to represent promote Turkey and develop networking relationships, he added. FM Davutoglu said that they would be able to intimately monitor any kind of development in science in any part of the world through scientific diplomacy, adding that the new attachés would be an integral part of diplomacy. Ergun said that science and technology were crucial to achieving the country’s target $500 billion worth of exports and becoming one of the 10 largest economies in the world by 2023. “We want to set up relationships with countries around the world based on a win-win approach and common benefits. Page 11