Made In Turkey

Italian Minister Elsa Fornera cries during austerity announcements

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taly’s new Welfare Minister Elsa Fornero broke down in tears as she announced a new batch of austerity measures aimed at getting the government’s spending back under control.

Fornero was overcome as she took part in a press conference, when she was discussing proposals to cut the traditional link between state pension and the rate of inflation. The plans also include moves to raise the retirement age for women to 66 by 2018, in line with the move already planned for men. Page 7

Italian Welfare Minister Elsa Fornera

Turkey’s coasts enjoy tourist hike in 2011 Key countries signal recession, data show

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NKARA The number of tourists visiting Turkey exceeded 13 million in the first half of the year, 12.5 percent more than the same period in 2010, according to recently released data. Page 3

www.img.com.tr

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ONDON - November manufacturing data from the world’s three key economies became another proof that a global economic slowdown could be in the making – raising worries over the possibility of another recession. Page 5

ISSN 1300-2260

December 2011 Year: 10 No: 111

What is next for the EU? E

urope’s top leaders have moved forward to turn the sovereign debt crisis into opportunity, announcing plans to establish a fiscal union. German Chancellor Angela Merkel talks of ‘budgetary intervention,’ while French President Nicolas Sarkozy says there can be no common currency without ‘economic convergence.’

German Chancellor Angela Merkel declared that European nations were on the verge of establishing a “fiscal union” with rigorous budgetary oversight to battle the eurozone debt crisis.

The announcement came after French President Nicolas Sarkozy said Paris and Berlin will push for a broad treaty “refounding and rethinking the organization of Europe.”

The French leader warned that that without some new “convergence” among European countries, the crisis could destroy the euro.

The most powerful signal for that convergence came from Merkel.

“We are not only talking about a fiscal union, we are beginning to establish it,” she said in a speech to parliament, adding it would be a “fiscal union with strict rules, at least for the eurozone.”

“Anyone who had said a few months ago that we, at the end of 2011, would be taking very serious and concrete steps toward a European stability union, a European fiscal union, toward introducing (budgetary) intervention in Europe would have been considered crazy,” Agence France-

Merkel and Sarkozy aim to rebuild the EU on euro

What makes Merkel and Sarkozy laugh?

OECD calls for urgent action to boost ailing global economy

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ecisive policies must be urgently put in place to stop the euro area sovereign debt crisis from spreading and to put weakening global activity back on track, says the OECD’s latest Economic Outlook.

IMF: Emerging markets regarded as part of the solution

The euro area crisis remains the key risk to the world economy, the Outlook says. Concerns about sovereign debt sustainability are becoming increasingly widespread. If not addressed, recent contagion to coun-

tries thought to have relatively solid public finances could massively escalate economic disruption. Pressures on bank funding and balance sheets increase the risk of a credit crunch.

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Minister Yazici: “We work on options for transit shipment” egarding Syria suspended the free trade agreement, Turkey considers shifting transit transport via Iraq, and in addition another alternative is that R0-RO shipping is evaluated via Alexandria.

Turkey’s Customs and Trade Minister Hayati Yazici said that after Syria suspended the free trade agreement they had set options about transit shipment.

After the panel under the title ‘What New Turkish Trade Law Brings to Our trade Life’ which was held at Gazi University, Minister Yazici responded questions of reporters. Page 10

R Turkey’s Customs and Trade Minister Hayati Yazici,

The year 2011 world’s tenth warmest on record, UN report finds

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emperatures this year are the tenth highest on record since 1850, and the highest ever in a year which experienced a La Niña event, a meteorological phenomenon which is supposed to have a cooling influence on Earth’s atmosphere, a United Nations agency reported. Page 3

Presse quoted her as saying. “Now these items are on the agenda, we are on the verge of it, there are still difficulties to be surmounted but their necessity is now widely recognized.”

Merkel will hold talks with French President Nicolas Sarkozy to hammer out a common position.

Sarkozy warned that the developed world was entering a “new economic cycle” dominated by austerity, heralding tough times ahead for jobs and business.

“There can be no common currency without economic convergence, without which the euro will be too strong for some, too weak for others, and the eurozone will break up,” Sarkozy said that in Europe this would require a new political and budgetary consensus that would win back the confidence of the markets.

“France is fighting with Germany for a new treaty. More discipline, more solidarity, more responsibility ... true economic government,” he said, urging members to adopt a “Golden Rule” obliging them to balance their budgets.

Sarkozy spoke after the European Central Bank, the Federal Reserve and the central banks of Canada, Japan and Switzerland moved together to make it easier for commercial banks to borrow dollars. It was a move intended to calm financial markets, which had grown increasingly worried about European debt.

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MF Managing Director Christine Lagarde, wrapping up a visit to Latin America, said that the balance of economic power was shifting and that emerging economies were part of the solution to global problems.

Lagarde, completing a trip to Latin America during which she met with leaders of Brazil, Mexico, and Peru, said that over the past decade, Brazil has had a remarkable trajectory, “combining economic stability, growth and significant progress in reducing poverty and inequality—even becoming an international benchmark

in that area. In the IMF Managing Director process, the country Christine Lagarde has established itself as a leading actor on the global economic stage.”

Lagarde, who was in Mexico ahead of it taking over the leadership of the Group of Twenty (G-20) industrial and emerging market countries, met on December 1 with Brazilian President Dilma Rousseff, and held productive meetings with Finance Minister Guido Mantega and Central Bank President Alexandre Tombini. Page 6

Emerging star of foreign trade: Turkey

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ccording to the report conducted by HSBC Foreign Trade volume in 10 sectors across 36 countries, Turkey’s trade volume with the rate of 109 percent is quite higher than average 73 percent of the world trade.

Deputy General Manager of HSBC in Turkey Virma Sokmen said that

Turkey would continue to boost in exports and total foreign markets as well as taking place in 20 big markets which HSBC foresees growth.

Virma Sokmen said, “As an indicator of our knowledge accumulation, the report of HSBC Foreign Trade Trust Index and HSBC Foreign Connections has proved the impor-

tance of Turkey once more.

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Turkey plans to manufacture aircrafts Turkish Technology Minister Nihat Ergun

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urkey plans to produce its own regional aircraft and jets by 2023, the centenary of the Republic of Turkey, according to the statement of Nihat Ergun, Turkey’s science, industry and technology minister.

During his visit in the USA, Minister Ergun toured Boeing plant in Seattle; the Deputy Chairman of Boeing, Dan Mooney briefed the Minister Ergun and said that 350 - 400 Turkish engineers contributed to the company.

This is one the significant steps that the country aims to take place in aviation sector, Minister Nihat Ergun said.

“Boeing take place among companies we can cooperate with,” Ergun added.

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Made in Turkey Economic Newspaper, December 2011

Letter From The Editor Mehmet Soztutan Editor-in-Chief

i of intermediary Profıt i institutions up in fırst 9 months of 2011

Letters to the Editor turkey@ihlas.net.tr Treacherous practices

Turkey safe for foreign investors A

s known, the ongoing uncertainty stemming from the European sovereign and banking crisis is leading to broader contagion outside Europe and global credit markets.

The leading analysts say that Europe’s problem is not just that governments are over borrowed. There are an unknown number of European banks that are effectively insolvent if their holdings of government bonds are “marked to market”—in other words, valued at their current rock-bottom market prices.

What about Turkey?

Turkish Deputy Prime Minister, Ali Babacan, has stated that Turkey is a safe haven for foreign investors to put their money and enjoy huge profits.

Speaking at the first Turkish-German CEO Forum in Berlin, Babacan said that foreign companies who have invested money in to Turkey are now reaping the rewards as potential profits are maximized in Turkey. Babacan pointed out: “The government’s policy of building confidence on matters relating to fiscal discipline has led to a very strong financial system in Turkey.”

Babacan noted the fact that no Turkish bank has really suffered any enormous difficulty during the global economic crisis while banks around the world are crumbling. Babacan said: “Turkey is the only OECD member country that has not resorted to bank bailouts. Foreign companies investing in today’s Turkey are proving to be highly successful.”

Babacan talked about the problems that the current world is facing with the economic crisis engulfing many countries, and compared that with the situation in Turkey at the moment, Babacan said: “Turkey’s earlier public finance and banking reforms made it more resilient to the global economic contraction in 2009. Turkey’s growth rates following the crisis are among the world’s highest; 9 percent in 2010 and a predicted 7 percent in 2011.”

He noted that Turkey achieved its growth targets for 2010 and 2011, however the United States and European countries resorted to measures to just to save the day instead of mediumterm programs.

He also argued that the reason of economic crisis in Europe was political will problem, and Europe was in a significant lack of vision.

One thing is for sure, while the rest of the world faces a bleak future, Turkey is looking to onwards and upwards as a growing power nation.

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ssociation of Capital Market Intermediary Institutions of Turkey gained the total revenue worth TL 897 million, as for their net profit became TL367 million in the first 9 months of 2011 over the same period last year.

Association of Capital Market Intermediary Institutions of Turkey (TSPAKB) unveiled the financial data of the Turkish brokerage firms in the first 9 months of 2011. According to this, the total revenues of the brokerage firms increased 17 percent to TL897 million over the same period last year.

As for the net profit raised 31 percent to TL367 million.

Volume of stock exchange trade exceeded worth TL1,1 trillion As of September 2011, the total assets of the brokerage firms achieved worth TL9,6 billion increasing 20 percent, over the same period previous year.

Having the liquidated structure, 92 percent of the sector’s total assets composed current assets.

The capital stocks of the sector reached by TL2,6 billion.

In January-September, the volume of stock trade of the brokerage establishments increased 25 percent to TL1,1 trillion. 44 percent of the trading was realized by the 10 brokerages. 85 percent of stock trading was made by the foreigners.

The trading of Turkish Derivatives Exchange reached by TL 670 billion, increasing 7 percent in the first 9 months of 2011, over the same period last year.

The trading via internet continued to rise in the mentioned period. The stock exchanging trade increased 51 percent (accounting for 24 pct of the total trading) to TL273 billion via internet in the first 9 months of 2011.

German Chancellor Angela Merkel slammed “treacherous” practices by banks during the Greek crisis and said governments must crack down on speculators hunting profits in the turmoil.

“First the banks failed, forcing states to carry out rescue operations. They plunged the global economy over the precipice and we had to initiate recovery packages. Because of these packages, we have become indebted and now, they are speculating against these debts -- that is really very treacherous,” she said.

“Governments must regain their supremacy over the markets, which they no longer have, and for that we need much stricter global rules,” she added, at a debate on Europe organised by a public broadcaster. Actually, these statements do not cure the disease of the EU.

G.Krent/ Berlin

The architects The architects of the Bretton Woods regime kept the lesson in mind when they redesigned the world’s monetary system in 1944. They understood that democratic countries would need the space to conduct independent monetary and fiscal policies. So they contemplated only a “thin” globalization, with capital flows restricted largely to long-term lending and borrowing. John Maynard Keynes, who wrote the rules along with Harry Dexter White, viewed capital controls not as a temporary expedient but as a permanent feature of the global economy.

D.Freng/ Paris

The leadership deficit Europe’s leaders are still failing to confront, or even fully acknowledge, the scale and urgency of the European financial crisis. They need to quickly come up with a refinancing and reform package that is both large enough to calm jittery credit markets in Portugal, Spain and beyond, without choking off future growth.

The longer European leaders deny and temporize, the higher the risk that panicked investors could set off a chain reaction of defaults and bank failures that could fracture the 16-country euro zone .

F. Bren/ Basel

Market fundamentalists According to George Soros, market fundamentalists believe that markets tend towards equilibrium and the common interest is best served by allowing participants to pursue their self-interest. It is an obvious misconception, because it was the intervention of the authorities that prevented financial markets from breaking down, not the markets themselves. Nevertheless, market fundamentalism emerged as the dominant ideology in the 1980s, when financial markets started to become globalised and the US started to run a current account deficit.

Globalization allowed the US to suck up the savings of the rest of the world and consume more than it produced.

Ease of credit generates demand that pushes up the value of property, which in turn increases the amount of credit available. A bubble starts when people buy houses in the expectation that they can refinance their mortgages at a profit. The recent US housing boom is a case in point.

F. Habsburn/ Berlin

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Made in Turkey Economic Newspaper, December 2011

What is next for the EU?

Continued From Page 1 eventeen countries share the euro, and those countries plus 10 more make up the European Union. All 27 would have to approve a change in the Maastricht Treaty, which initiated the euro in 1999. Sarkozy said the treaty “has revealed itself to be imperfect.”

Merkel said the “fiscal union” should lead to a new “European debt brake” to stop countries from spending their way to the brink of insolvency. “We must strengthen the foundations of the economic and currency union,” she said.

Merkel said there was “no alternative to treaty change” which would codify

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budgetary discipline in the eurozone.

“Rules must be respected. Respect for them must be supervised. Their violation must have consequences,” she said.

But Merkel once again ruled out eurobonds, a proposal to pool European debt to keep a lid on borrowing costs for member states, which European Commission chief Jose Manuel Barroso formally tabled .

“Whoever has not understood that they (eurobonds) cannot be the solution to the crisis has not understood the nature of the crisis,” she said.

Mario Draghi, the governor of the Frankfurt-based European Central Bank, calls on eurozone governments to align their budgetary policies – a first step toward a tighter fiscal union.

European Central Bank (ECB) chief Mario Draghi said the 17 countries that use the euro must tether their economies more tightly to avoid a repeat of the debt crisis that is threatening the global financial system.

He also hinted that the ECB may play a more pivotal role in the resolution of the crisis, but he insisted that the gov-

ernments must first back proposals to align their budgetary policies.

“Other elements might follow, but the sequencing matters,” Draghi told the European Parliament. “And it is first and foremost important to get a commonly shared fiscal compact right.

“Confidence works backwards: if there is an anchor in the long term, it is easier to maintain trust in the short term,” he added. “After all, investors are themselves often taking decisions with a long time horizon, especially with regard to government bonds.”

Draghi’s speech came amid growing speculation Europe is readying a plan to tie the eurozone closer together with stricter budgetary rules. That, analysts said, could allow the ECB to take a more central role in the crisis The ECB cannot lend directly to governments, including by buying their national bonds. It can, however, buy national bonds on the secondary market, lowering borrowing costs for governments. But it has resisted such action because it believes that would take the pressure off politicians to cut spending.

The year 2011 world’s tenth warmest on record, UN report finds

Continued From Page 1

he number of tourists visiting Turkey exceeded 13 million in the first half of the year, 12.5 percent more than the same period in 2010, according to recently released data. The findings are among the highlights of the provisional UN World Meteorological Organization (WMO) Statement on the Status of the Global Climate, which provides an annual snapshot of weather and climate events around the world.

The report was released at the UN Climate Change Conference in Durban, South Africa, where thousands of representatives from governments, international organizations and civil society met to advance ways to cut global carbon emissions and pollution.

“Despite La Niña, it was a very, very warm year to the point that it is the

warmest decade on record,” said WMO Secretary-General Michel Jarraud during a press briefing in Geneva, adding that the extent of Arctic sea ice this year was the second lowest, and its volume the lowest on record.

According to the report, the 13 warmest years have all occurred after 1997, and the period between 2002 and 2011 is the warmest-ever decade, registering 0.46 degrees Celsius above the long-term average.

The report also warns of high levels of concentrations of greenhouse gases in the atmosphere, which are bringing average global temperatures closer to surpassing the recommended two degree Celsius target, which could trigger irreparable changes on the planet.

“Concentrations of greenhouse gases in the atmosphere have reached new highs. They are very rapidly approach-

ing levels consistent with a rise of 2 to 2.4-degree Centigrade rise in average global temperatures which scientists believe could trigger far-reaching and irreversible changes in our Earth, biosphere and oceans,” Mr. Jarraud said.

According to WMO, 2011 was heavily influenced by a strong La Niña event which developed in the tropical Pacific at the end of last year and continued until May. Scientists have closely linked this event with the droughts in East Africa as well as in islands in the central equatorial Pacific and the southern part of the United States. It is also associated with the floods in Southern Africa, Southern Asia, eastern Australia and Central and South America. In March, WMO will publish final updates and figures for 2011 in its annual statement on the status of the global climate.

Turkey’s coasts enjoy tourist hike

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ermans topped the list of tourists to Turkey with a 14.7 percent share of the total sum, according to the data from the Culture and Tourism Ministry.

Russians (11.4 percent), Britons (7.4 percent) and Iranians (7 percent) followed.

Russian tourists were the top visitors in June, during which there were 3.7 million total visitors, constituting an 8 percent increase over the same month a year earlier. A total of 680,681 tourists came to Turkey in the year’s first half on day trip A recent study by Turkey’s Interbank Card Center shows that transactions by foreign cards have increased by 35 percent in the first half of the year. Tourists from Arabic countries who prefer Turkey for their summer holidays and shopping trigger the increase, according to Soner Canko, general manager of the center.

More tourists from Arab countries are splurging in Turkey’s shops, playing a significant role in the 35 percent rise in foreign credit card transactions in Turkey in the first

half of 2011, according to a recent report.

The rise in the total volume of foreign credit card transactions reached $2.3 billion in the first half of the year, a 35 percent rise in volume compared to the same period last year, according to The Interbank Card Center, or BKM, report.

“A few years ago, the total volume of transactions through foreign credit cards was really small in Turkey,” Soner Canko, general manager of BKM, told a press meeting in Istanbul regarding the report. “It has risen thanks to Arab tourists who have chosen Turkey as a holiday and shopping destination in the region.”

The total volume of the transactions reached $1 billion in May and June.

“This shows a trend in foreigners spending in Turkey,” Canko said. He also said the radical political changes currently occurring in the Middle East and North Africa played an important role in the recent rise in the number of Arab tourists visiting Turkey. Arab tourists tend to shop more and pay for each service separately rather than purchasing pack-

age tours or all-inclusive holidays offered on the southern coast of the country, he said.

The total number of tourists visiting Turkey increased 14.6 percent in the first five months of the year compared with January-May last year, according to official data from the Tourism Ministry. In May, tourists from Yemen were up 87 percent from last year, while the rise in tourists from Saudi Arabia and Iraq was 79.3 percent and 45.84 percent, respectively.

The aim of the BKM is to produce a society using “no cash at all,” Canko said. This would help the actors of the economy, sector representatives and officials to fight against the black economy as well, he added. Ecommerce business hits over 57,000 There has also been a dramatic surge in purchases over the Internet, Canko said. The number of e-commerce businesses reached 57,387 by the end of June – up from 1,993 in 2003, the BKM report said.

“Now there is a self-service lifestyle trend,” said Canko, noting that not many people were purchasing flight tickets through travel agencies anymore. One of the main responsibilities of the card center, he said, was to implement new methods in using bank cards for shopping. “We aim to boost the growing trend of e-commerce.”

In the first half of the year, the total number of e-commerce transactions reached 58.1 million, a 40 percent rise compared to the same period of last year, according to the BKM report. The total transaction volume through e-commerce sites hit 10.4 billion Turkish Liras in the first half of the year.

Turkey: An emerging base in Eurasia

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oreseeing the future is becoming even harder vis a vis the complex and concurrent developments experienced in almost all parts of the globe. However, every player and every country that wants to protect or improve its global position should have its own strategies for the future.

In this context, a policy document named as Industrial Strategy Paper, has been published. The document has set forth a comprehensive vision of “being the production base of Eurasia in high and medium technological products”. In accordance with this vision, the paper has certain mid term objectives that can be summarized as increasing the competitiveness and efficiency of Turkish Industry and expediting the transformation to an industry structure which has more share in world exports, where mainly high-tech products with high added value are produced. The need for qualified labor and skillful managers sensitive to the environment and the society were also emphasized.

Three main strategic objectives have been set in accordance with the vision and objectives of the Strategy Paper namely increasing the weight of mid- and high-tech sectors in production and exports, transition to high added value products in low-tech sectors, and increasing the weight of companies that can continuously improve their skills.

Industrial Strategy Paper for Turkey prepared for the terms 2011-2014. This paper is a revision of the industrial strategy paper entitled ‘Industrial Policy for Turkey’ published in 2003.

Turkey has been quite successful in maintaining macroeconomic stability. The structural economic reforms played a prominent role in maintaining the economic stability. The record of growth rate of Republican history was broken in this term. In the years 2005, 2005, 2006, 2007 and 2008 the growth rates of Gross Domestic Product (GDP) were in order 9.4, 8.4, 6.9, 4.7 and 0.7 percent.

The Strategy Paper deals with horizontal and sectorial policies. In horizontal industrial policy areas are the improvement of investment and business environment, maintaining international trade and investment specifically maintaining the policies that will contribute to diversity of trade goods,

adoption of a strategy that will maintain consistency in industrial policies and human resources policies, easing SMEs’ (Small and Medium Sized Enterprises) access to finance, improving the innovation and technological infrastructure and thus reducing the input costs, sensitivity to the environment and maintenance of governance for regional development.

Sectorial industrial policy areas have been constituted in order to identify the obstacles to the competitiveness of the sectors and implement policies to eliminate them. The sectors examined in terms of their competitiveness were identified as the automotive, machinery, white goods, electronics, textile and garments, food and iron-steel sectors were included in the strategy paper.

The sectorial competitiveness analysis is assessed on innovation capacities of the companies in knowledge and technology, the competition environment in the domestic market, the impact of legal regulations on the sectors, measurements concerning the environment and energy within the frame of existing regulations and those that will be effective in the medium term, adverse effect of the competitiveness of the industry and anti-dumping and trade obstacles that could create unfair competition in the international arena, the obstacles to the expansion of employment within the context of relevant employment figures.

Under the coordination of the Ministry of Industry and Trade, and with the participation of all other relevant organizations and companies, the implementation process will be monitored and coordinated so that the goals can be achieved.

Conditions are ripe for Turkey to become a major production and logistics base for technologic and high value-added products in the Prof. Dr. İsmail region.

Kaya

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Made in Turkey Economic Newspaper, December 2011

İletişim Magazin Gazetecilik Sanayi ve Ticaret A.Ş.

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

(ikupeli@img.com.tr)

Ömer Faruk Görün

(fgorun@ihlas.net.tr)

Advertising Sales Staff: Mustafa Bekir Karaca

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Yılmaz Özkan

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2012, a tough year in economy

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ebt crisis has kept its spotlight in new term. the circles of the economy and The two big of Eurozone states seem depublic opinion almost through- termined to maintain a stable euro and out 2011, but it seems that discussions want to see structural changes by carryof this issue would continue in the next ing out new checks and sanctions. months of 2012 as well.

These tough measures would have negaIt has been nearly three years, the global tive effects on the economy across the economic crisis maintains its effect and world. recovery is risky. In 2008, it was the sub- As for concerns of the International prime crisis happened in America. But Monetary Fund the crisis would spread this time the sovereign-debt crisis in Eu- across the world. For these reason, the rope is being an anxiety for the global head of the IMF checks the pulse by economy. touring.

Across the world foremost institutions As for how the European sovereign debt hold meetings and conference in order crisis happened it is commented that to attract attention and constitute aware- “the European sovereign debt crisis has ness on the matter. Also meetings and been made by a combination of complex conferences are held to keep the im- factors. For example the globalization portance of the subject on the agenda. of finance; easy credit conditions durAlmost every discussion ing the 2002-2008 pegives place for the issue. riod that encouraged Solution seeking for the high-risk lending and possible economic crisis borrowing practices; is continuing in the related international trade imcircles, especially in Eubalances; real-estate rope. bubbles; slow growth The two big bosses of the economic conditions Euro area, German Chan2008 and after; fiscal cellor Angela Merkel and policy choices related French President Nicolas to government revenues Sarkozy held meetings and expenses; and apIbrahim Kupeli one after the other to find proaches used by nations ikupeli@img.com.tr solution for the debt crisis to bailout troubled bankwhich caused being replaced the prime ing industries and private bondholders, ministers of Spain, Italy and Greece. assuming private debt burdens or socialThese two leaders’ efforts seemingly izing losses.” would not be enough to find solution to European Central Bank comments on remove the challenge which Euro area the issue, “Since the introduction of the has been currently face to face. euro, our common currency, times have The leaders seem that they were deci- never been as challenging as at present. sive to make a new treaty, if they achieve Despite ongoing efforts by policy makby March to ensure such a crisis never ers, the sovereign debt crisis is still onhappen again. A new treaty is foreseen going, putting growth and welfare of our to set up a sound economic situation in citizens at risk.”

Eurozone.

In its statement, European Central Bank However the new treaty is not accepted seems decisive to maintain price stabiliby the UK, by pushing an argument that ty in the euro area. It aims inflation rates everyone to sort out their problems. in the euro area to drop by 2% over the Thereby, the foremost matter of the medium term. agenda of Europe, the sovereign debt The second stage of the bank is to maincrisis, would cause to open a new page tain price stability for the euro area as on the union. a whole over the medium term.Finally, Maybe sovereign debt crisis would trig- fear of the economic crisis push the peoger the Eurozone states towards a new ple into anxiety while wounds of previcrossroads that would be beginning of a ous one cannot be healed.

THOUGHT OF THE MONTH It is a thousand times better to have common sense without education than to have education without common sense.

Humor 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

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***************************** The Dictionary: what hi-tech salespeople say and what they mean by it New: Different color from previous design.

All new: Parts not interchangable 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 ECONOMİCST What is the major difference between change and progress?

Well!

Change is inevitable but progress is optional

EASY

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1 Prayer ending 5 Wield 8 Cooking grease 11 Secret language 12 Change color 13 Remake 14 Baby’s bed 15 Tip 16 Black 17 _ Tayyip Erdogan 19 Strike 21 Alternative (abbr.)

22 Speak 24 Whiz 27 Jewish scribe 28 Trounce 30 Craze 33 Giant’s wife 34 Artist’s need 35 Agape 36 New York City 37 Nothing inside 39 American Cancer Society (abbr.)

42 Official document 43 Devour (2 wds.)

45 Baseball player Ty 48 Zero 50 Lounge 51 Alert 52 Elf 53 Opposed 54 Also known as (abbr.)

55 Human 56 Bird’s home

1 Capital of Ghana 2 Pitted mushroom 3 Decree 4 Northeast by east 5 Shoshonean 6 Sacred places 7 Enable 8 Second month (abbr.)

9 Hoopla 10 Large weight unit 13 Ump 18 Trickster 20 What frogs see with 23 Stress 24 Dined 25 Disks 26 Aurora 27 East northeast 29 Pot 30 Swamp 31 Stinging fish 32 Escudo 33 Choose 35 Type of American Express card 38 Something very small 39 Repent 40 Religious systems 41 Divide 42 Compass point 44 Actor Alda 45 Communication Workers of America (abr.)

46 Grows acorns 47 Undergarment 49 Licensed practical nurse

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Made in Turkey Economic Newspaper, December 2011

OECD calls for urgent action to boost ailing global economy

Key countries signal recession, data show Continued From Page 1 hina’s manufacturing activity contracted in November for the first time in 33 months, Agence France-Presse reported, as deepening global economic woes hit exporters.

The official purchasing managers index (PMI) fell to 49 down 1.4 points from October, marking the first contraction since February 2009.

HSBC said its manufacturing activity index also fell to a 32-month low of 47.7 in November from 51 in October, signalling “solid deterioration.”

A reading above 50 indicates the sector is expanding while a reading below 50 suggests a contraction.

Meanwhile, the eurozone’s manufacturing sector contracted at its fastest

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pace in two years, according to November data released.

The Markit Eurozone Manufacturing Purchasing Managers’ Index (PMI) fell to 46.4 in November, its lowest level since July 2009, down from October’s 47.1, Reuters reported.

“The final PMI data confirm the downbeat picture from the earlier flash results. It was also the first month since mid-2009 that all countries saw output fall, highlighting the broadening-out of the downturn from the periphery to the core,” said Chris Williamson, chief economist at data compiler Markit.

Earlier data from Germany showed its manufacturing sector contracted at its fastest pace in over two

Continued From Page1

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years while in France the index sank to its lowest reading since June 2009.

Italian factory activity contracted for the fourth consecutive month while Spain’s shrank for the seventh month.

In November, Britain’s manufacturing sector shrank for a second successive month and at its fastest pace since June 2009 as output and orders fell on weak global demand.

The Markit/CIPS Manufacturing Purchasing Managers’ Index (PMI) fell to 47.6 in November,

its lowest level since June 2009, from an upwardly revised 47.8 in October.

The only bright manufacturing data came from Russia. The HSBC Purchasing Managers’ Index rose in November to a seasonally adjusted 52.6 points from 50.4 a month earlier, HSBC said in a statement, citing data compiled by Markit Economics.

The data “suggest that Russia’s economy is weathering the deterioration in global economic conditions,” Bloomberg News reported.

Turkey: Emerging star of foreign trade Continued From Page 1 s one of the biggest international Banks of Turkey, we will continue to provide important advantages to our customers in the scope of Leading International Bank strategy of ours in 2012, as well as growing in the foreign trade and in line with the global experience.”

Turkey is emerging star of foreign trade

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Carried out a survey in 36 countries with 10 sectors, the survey of HSBC foresees for 5, 10 and 15 yearterms in exports, imports and total trade growth figures. The reports forecasts that the world trade would increase 73 percent in the next 15 years and currently being $27,2 trillion goods trade volume will reach by $48,5 trillion in 2025.

According to the research, in order to achieve this

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figure the worldwide companies’ activities are predicted to achieve averagely annual 4.1 percent trade rate between 2011 and 2025. As for Turkey’s trade volume, it is expected to increase in the rate of 109 percent over the world trade average.

As Turkey shown a key trade center connects to Europe, the Mideast and Central Asia, it is expected that Turkey will grow aver-

age 4.8 percent per annum within the upcoming 10 years. Over a question, Virma Sokmen said that the foreseen growth in the report was prepared by taken into consideration the current data and conjuncture, adding that Turkey’s 2023 foreign trade vision foresees much more targets and very big positive table and the results of the report also confirmed the foreseen objectives.

nother serious downside risk is that no action would be agreed to offset the large degree of fiscal tightening implied by current law in the United States.

This could tip the economy into a recession that monetary policy could do little to counter.

“Prospects only improve if decisive action is taken quickly,” said OECD Chief Economist Pier Carlo Padoan.

“In the euro area, the risk of contagion needs to be stemmed through a substantial increase in the capacity of the European Financial Stability Fund, together with a greater ability to call on the European Central Bank’s balance sheet. Much greater firepower must be accompanied by governance reforms to offset the risk of moral hazard,” he said.

Improved prospects would also depend on the enactment of a credible medium-term fiscal programme in the United States.

The Outlook’s baseline scenario assumes that policy-makers take sufficient action to avoid disorderly sovereign defaults, a sharp credit contraction, systemic bank failures and excessive fiscal tightening. It sees GDP across the OECD countries slowing from 1.9% this year to 1.6% in 2012, before recovering to 2.3% in 2013. Unemployment in the OECD area is also projected to remain high for an extended period, with the jobless rate staying at around 8% through the next two years.

“We are concerned that policymakers fail to see the urgency of taking decisive action to tackle the real and growing risks to the global economy,” Mr Padoan said during the launch of the report in Paris.

“We see the US growth recovering only slowly, the euro area entering into mild recession and Japan growing faster because of reconstruction, but this boost is temporary and will

fade away.”

US GDP is projected to rise by 2.0% in 2012 and by a further 2.5% in 2013, after an expected expansion of 1.7% this year. Euro area growth is forecast to slow down from 1.6% this year to 0.2% next year, before picking up to 1.4% in 2013. In Japan, GDP is expected to expand by 2% in 2012 and 1.6% in 2013, following a contraction of 0.3% in 2011, which reflects the impact of the earthquake and tsunami and subsequent reconstruction activity.

Chinese economic growth is seen easing to 8.5% in 2012, from 9.3% this year, before climbing back to 9.5% in 2013. Weaker activity in China and other emerging-market economies together with modest falls in commodity prices should put inflation in these countries on a downward trend, allowing some easing of monetary policy.

World growth will be sustained by the non-OECD countries Contribution to annualised quarterly world real GDP growth, percentage points Under the baseline scenario, weak activity, low levels of inflation and predominantly downside risks should trigger strongly accommodative monetary policy in OECD countries. Central banks should provide ample liquidity to calm tensions in financial markets and prepare contingency plans that could be implemented swiftly if needed.

On the contrary, a continued lack of effective action could trigger an alternative, downside scenario where the outlook becomes much bleaker. This scenario could be prompted by a worsening of existing concerns about the banking system, con-

tagion in euro-area sovereign debt markets or an excessively tight fiscal policy in the United States linked to the current political gridlock.

In the Strategic Response section of its Outlook, the OECD identifies country-specific policies that should be implemented if the macroeconomic situation derails: the financial sector must be stabilised, the social safety net protected and monetary policy eased further. Where feasible, governments should provide fiscal support while strengthening fiscal frameworks to reassure markets that public finances can be brought under control.

Under this scenario, a wide range of structural measures to boost jobs and economic activity, all desirable in their own right, will become urgent. Effective labour market policies are needed to tackle unemployment which risks turning from cyclical to structural, thereby sapping potential growth, hitting confidence and weakening public finances.

Made in Turkey Economic Newspaper, December 2011

IMF: Emerging markets regarded as part of solution to global problems Continued From Page 1

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hifting balance of power “As the balance of economic power shifts, emerging economies are a key part of the solution to the global problems.

Brazil consistently presents an important voice to the world on behalf of the interests of emerging and developing economies,” she said in a press release.

“This is a critical role. We welcome the Brazilian authorities’ willingness to consider contributing additional resources to the IMF. The country’s active involvement in governance reforms has been an instrumental force for positive change. This is a critical contribution to making the IMF more representative of the global reality, thus more legitimate and effective.”

Lagarde with Globonews network anchor William Waack during an interview in São Paulo, Brazil Less visible

During a television debate on the final day of her visit to Brazil, Lagarde said the IMF was working behind the scenes to help with the European crisis.

“I’m very happy if the IMF is in the middle of it, but in an effective way, not necessarily a visible way,” Lagarde said in the recording of a Globo News TV news program in São Paulo.

Lagarde urged euro zone countries to find a collective, comprehensive solution to the crisis or risk enduring a lost decade.

Not immune Lagarde praised the management of the Brazilian economy.

“The marked resilience of the Brazilian economy is the product of a strong track record of competent macroeconomic management based on the three pillars of fiscal responsibility, inflation targeting and flexible exchange rate. In the last few years, Brazil has also benefited from a solid and well-capitalized banking sector, which has so far softened the impact of one important channel of contagion

Construction sector “emerging star” Economy Minister Caglayan, “Turkey takes place in the foremost countries in the basic construction materials’ production and exports across the world.”

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from the global financial crisis,” she said.

“But that is not to say Brazil is immune to the crisis. In our highly interconnected world, nobody is. For Brazil, the challenge is now is to find the right balance between supporting growth and at the same time guiding inflation to converge to the central bank’s target. And do all that while at the same time protecting— and even expanding—its social spending and improving infrastructure.”

Turkey plans to manufacture aircrafts Turkey’s Science, Industry and Technology Minister Nihat Ergun, “Turkey is scheduling to produce regional aircrafts by 2023”

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Turkish Technology Minister Nihat Ergun

Continued From Page 1 urkish companies could manufacture more Boeing parts, Ergun said. “Some parts of Boeing wing and tail systems are already manufactured in Turkey.”

Ergun said that Turkish aviation sector was considering to take outstanding steps, one of them to make regional aircrafts in the scope of Turkey’s 2023 vision,

adding that they would like to achieve production of jets in the certain size in Turkey.

“Turkey can make a close relation with Boeing in the issues of R & D, components and technology production. In order to enlarge in these areas we have suggested to Boeing,” Minister Ergun said.

Ergun highlighted the importance of the aircraft technology. “In the future of Turkey’s schedule, there

is production of regional aircraft in the scope of 2023 vision of Turkey.

Helicopter production has already been achieved. We are advancing quickly in the aviation sector. The regional aircraft production would enable the technology and industry in Turkey to advance more, as well as making up a more integrated technological structure in the various places of the world,” Ergun noted.

US dollar yields maximum profit in October While dollar yields maximum profit in October, maximum real profit was gained by gold (ingot) investors quarterly, biannually and annually in 2011 n October 2011, maximum monthly real profit rate was obtained in US dollar according to Turkish Statistic Institute (TurkStat).

In October 2011, US Dollar, one of the financial investment tools, yielded the highest monthly real profit with the rate of 0.30% based on the Producer Price Index.

Investors of gold (ingot), deposit interest, stock exchange and euro lost by -5.90%, -1.07%, -0.85% and -0.15%, respectively.

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Based on Consumer Price Index; investors of gold (ingot), deposit interest, stock exchange, euro and US dollar lost by -7.42%, -2.67%, -2.45%, -1.76% and -1.33% respectively.

Maximum real profit was gained by gold (ingot) investors quarterly, biannually and annually based on PPI and CPI. Investors of gold (ingot) yielded the highest real profit with the rates of 11.36% according to PPI and 11.56% according to CPI, quarterly.

The real profit rate of gold (ingot) was 28.71% according to PPI and 28.41% according to CPI biannually. In the same period, Investors of Stock Exchange made the highest loss with the rates

of -19.40% and -19.58% according to PPI and CPI respectively.

In October 2011, financial investment tools were listed in descending order with respect to their yearly real profit rates as follows: Gold (ingot), US dollar, euro, deposit interest and Stock Exchange. The real profit rates of gold (ingot), US dollar and euro were 41.46%, 14.43% and 12.64% respectively, however in the same period deposit interest and Stock Exchange lost by -4.46% and -25.45% respectively, according to PPI. The real profit rates of gold (ingot), US dollar and euro were 47.93%, 19.66% and 17.79% respectively, however according to CPI in the same period deposit interest and Stock Exchange lost by -0.09% and -22.04% respectively.

Railway establishments consolidate in the sector

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urkish Wagon Industry (TUVASAS), Turkish Locomotive and Engine Industry (TULOMSAS) and Turkish Railway Industry (TUMDEMSAS) have signed a common declaration to cooperate in their working issue. According to the announcement, TUVASAS, TULOMSAS and TUDEMSAS which are the partners of Turkish State Railways (TCDD) came together in the host of Ibrahim Ertiryaki, General Manager of TUVASAS. It is stated that at the gathering, the cooperation and coordination issue was taken up and said; “At the end of the meeting a common declaration was signed. In the scope of declaration, the issues such as utilizing corporate capacity in the maximum level, cooperation in R & D studies, institutional planning programs, research for the data sharing opportunities when needed, acting common in the issues such as providing material, ser-

vice and firm inventory. It is also stated that three partnerships would attend to Transport

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Symposium which will be held by Sakarya University.

urkish Economy Minister Zafer Caglayan said that Turkey’s exports of construction materials raised 23 percent to worth $14,8 billion in the first 9 months of 2011 compared to the same period last year.

Sending a message to the 3rd International Quality in Construction Summit which was held by Construction Materials Industrialist Association (IMSAD) under the theme “Global zzz and Sustainability”, Caglayan stated, “Turkey takes place in the foremost countries in the basic construction materials’ production and exports across the world.”

Activating over 200 sub-sectors construction sector is a locomo-

tive sector, Minister Caglayan continued, “When we regard in terms of generating a great employment feature, this sector is accepted as a sponge sector.”

“The total of 6 thousand 500 firms, which operate in the construction material sector, employs over 250 thousand people, as for the related sectors with construction employed 1 million 700 thousand people, even time to time the figure raises by 2 million people,” Minister Caglayan said.

Caglayan noted that the sector has enjoyed continuously dynamism, the construction material sector achieved $16,5 billion worth of increase in 2010, folding 4 times since 2002.

Turkey hosts 28,6 million tourists in 10 months n the first 10 months of 2011, Turkey hosted 28 million 665 thousand foreign tourists, increasing 10.4 percent over the same period last year.

According to the data of the Ministry of Culture and Tourism which gained from the Turkish National Police, number of tourist who visited Turkey in the first ten months of 2011 raised by 28 million 665 thousand. Of which 35.1 percent accounting for 10 million 51 thousand entered Turkey via Antalya, 24.1 percent accounting for 6 million 911 thousand people entered Turkey via Istanbul. The other boarder gates whereby mostly tourists entered Turkey are the provinces of Mugla, Edirne and Izmir with 10.6 percent, 8.2 percent and 4.4 percent, respectively.

In October number of visitor up 7 pct Number of foreign tourist who visited Turkey in October 2011 increased 7pct to 3 million 40 thousand. In October, 34.2 pct of foreign visitors entered Turkey via Antalya, 27 pct via Istanbul, 9.3 pct via Mugla, 6.5 pct via Edirne and 4.5 pct through Izmir.

Majority of visitors from Germany In September 2011, the most tourist came to Turkey from Germany with 14.5 pct (570 thousand 384), 13 pct (510 thousand 456) from Russian Federation ranking second, 9.8 pct (383 thousand 523) from England. This country was followed by Iran, Bulgaria, the Netherlands, Georgia, France, Syria and the USA respectively.

As for the period of January-September, in the list of countries which sent the most tourist to Turkey, Germany ranked first with 14.5 pct (3 million 715 thousand), Russian Federation second with 12.4 pct (3 million 177 thousand), England third with 8.63 pct (2 million 211 thousand). This country followed by Iran, Bulgaria, the Netherlands, France, Georgia, Syria and Italy.

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Number of aircraft passenger rises by 14.2 percent Across Turkey the total aircraft traffic became 76 thousand 645 units increasing 11.7 percent in Nov. 2011 over the same month previous year

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s of the end of November 2011, the number of passenger in both domestic and international lines reached by 110 million 227 thousand, increasing 14.2 percent.

According to the data of General Directorate of State Airports Authority (DHMI), domestic traffic increased 13.8 percent to 46 thousand 530 units over the previous November in Turkey. The international traffic reached by 30 thousand 115, with 8.5 percent rise, as for the total aircraft traffic became 76 thousand 76 thousand 645 units, increasing 11.7 percent.

According to the data of EUROCONTROL, the European Navigation Safety Organization, 1 percent decline happened in Europe due to debt crisis and fuel prices’ rise in Nov. 2011 in the European traffic.

In 2011 Nov. the total 8 million 191 thousand 167 units passengers got service, the number of passenger increased 16.1 percent to 4 million 779 thousand 478 units in the domestic lines, as for the international lines the number raised 13.7 percent to 3 million 411 thousand 689 units over the same month last year. As of Nov. 2011, the cargo transportation became 162 thousand 872 tons with 13.3 percent rise.

As of the end of Nov. 2011, across Turkey domestic line passenger increased 15.6 percent to 53 million 847 thousand 797 units, international lines’ passengers became 56 million 379 thousand 160 units with 13 percent increase, as for the total passenger reached by 110 million 226 thousand 957 units, increasing 14.2 percent.

Made in Turkey Economic Newspaper, December 2011

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TUSIAD: “We have to implement reforms Italian Welfare to increase our competitiveness” Minister cries T during austerity announcements urkish Industrialists and Businessmen

Association (TUSIAD) Executive Board Chairwoman Umit

Boyner said, Turkey needs an industrial policy, but when said industrial policy should not be only understood or predominantly financial or investment support. In the scope of the conferences, which are held by Competition’s Board, Boyner presented a speech about a report entitled “restrictions of growth in Turkey and a Prioritization.”

In her presentation at the Competition Board’s meeting, she said Turkey cushioned four major economic crises over the past

20 years. “The global economic crisis that hit during the last quarter of 2008 highlighted an important reality,” Boyner noted.

She recorded that even though the positive economic indicators, external crises could knock on the door at any time.

Stating that the current economic problems in the scope of the developed economies set a barrier in front of global growth, Boyner said that in conclusion the bottleneck could skip to the developing market economies and

harmed them.

“As TUSIAD, we have said on several occasions that for our country to weather external crises, we have to implement reforms to increase our competitiveness and productivity. Only in this way can we sustain our growth rates.”

She also noted that Turkey’s export sector had undergone basic changes and barriers to investment had been lifted. Crediting the banking sector for its reforms, she said access to financing had become much easier

over the past decade.

Boyner also said that the current crisis which makes up uncertainty in the global dimension, in addition to the risk condition a safe haven could not be found for the countries.

She concluded, “With a high focusing and effort directed to the structural reforms, we can say that current stage enable us to win time and when international conditions do not turn against us, it will provide a big contribution to the Turkey’s economy in mid and long term.”

Development Banks agree new partnership for climate action in Cities

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ive Multilateral Development Banks, who are lending some $8.4 billion annually for climate action in cities, agreed on a new partnership to combat global warming.

With the overall aim to better coordinate and deepen support to cities in adapting to and mitigating climate change, the African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank, and the World Bank have

agreed to work more closely to develop common tools and metrics for cities.

The five MDBs said they would develop a common approach for cities to assess climate risk, standardize greenhouse gas emissions inventories, and encourage a consistent suite of climate finance options.

Hela Cheikhrouhou, Director of the African Development Bank’s Energy, Environment & Climate Change Department said, “Considering that the rates of urbanization in Africa are the highest in the

world, this is a timely initiative and is aligned with the Bank Group’s recently approved Urban Development Strategy.”

Woochong Um, Deputy Director General, Regional and Sustainable Development Department at ADB said, “ADB is working with multilateral development banks through the Climate Investment Funds and other avenues to mobilize the public and private sector financing needed by developing Asia and the Pacific to support climate change.”

Jean-Patrick Marquet,

Director of Municipal and Environmental Infrastructure at EBRD, outlined that “The sustainability and climate change challenges for cities can be managed with a multi-faceted approach involving active stakeholders’ participation in pursuit of both environmental benefits and transition objectives”.

“This is an effort to disseminate best practices on an issue of global importance and where south-south cooperation aided by multilateral banks can really make a difference,” said Walter Vergara,

Sustainable Energy and Climate Change Chief of the IDB. “While cities account for over two-thirds of global energy consumption and an estimated 80 percent of global greenhouse gas emissions, they are also crucibles of innovation.

Cities are critical in the fight to tackle climate change,” said Rachel Kyte, World Bank Vice President for Sustainable Development.

“With this new partnership, the development banks will be able to better leverage citylevel leadership on climate change mitigation

“Solar energy could well become a competitive energy source”

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n 90 minutes, enough sunlight strikes the earth to provide the entire planet’s energy needs for one year, according to a New IEA study.

Solar Energy Perspectives, a new book released by the International Energy Agency, provides relevant information, accurate data and sound analyses on solar energy technologies, market trends, and integration issues. It also considers how policy makers can best favour the deployment of solar energy while furthering cost reductions.

The publication builds upon Energy Technology Perspectives – a biennial IEA publication which outlines possible pathways to a more sustainable and secure energy system – in considering end-use sectors and the ever-growing role of electricity. It also follows on from many IEA Technology Roadmaps in elaborating an integrated approach to various solar energy technologies.

It shows how best to use,

combine and successfully promote the major categories of solar energy: solar heating and cooling, photovoltaic and solar thermal electricity, as well as solar fuels, and how they could combine to respond to our energy needs.

“In 90 minutes, enough sunlight strikes the earth to provide the entire planet’s energy needs for one year,” emphasises Cédric Philibert, the report’s author and a senior policy analyst at the IEA. “While solar energy resources are abundant, their use currently represents only a tiny fraction of the world’s current energy mix. But this is changing rapidly and is being driven by action to improve energy diversification and security, mitigate climate change and provide energy access.”

Yet many questions remain on the costs and benefits as well as who will bear or reap them. The rapid evolution of these technologies makes policy

answers to those questions unusually difficult. Concerns about costs have also sometimes led to abrupt policy revisions. Policies may lapse or lose momentum just a few years before they would have succeeded.

Solar Energy Perspectives looks at which solar technologies are close to competitiveness, in which circumstances and for which uses. It also reviews the different types of policy support they require and for how long and investigates ways to make them more effective and costeffective.

Up to now, only a limited number of countries have been supporting most of the effort to drive solar energy technologies to competitiveness.

Comprehensive and fine-tuned policies supporting a large portfolio of solar energy technologies could be extended to most sunny regions of the world, where most of the growth of population and economy

is taking place, and where seven out of nine billion people will live in the second half of this century.

Under specific circumstances, solar energy could well become a competitive energy source in many applications within the next twenty years.

This publication also depicts a world in which solar energy reaches its very fullest potential by the second part of this century. A number of assumptions are made to see what might be possible in terms of solar deployment, while keeping affordability in sight.

Under these assumptions, solar energy has immense potential and could emerge as a major source of energy, in particular if energy-related carbon dioxide emissions must be reduced to quite low levels and if other low-carbon technology options cannot deliver on large scale. While this outcome is hypothetical, it does suggest that current efforts are warranted to enrich the portfolio of clean and sustainable energy options for the future.

“Integrating all solar technologies in a systemoriented policy approach will unlock the potential of solar energy within the broader set of low-carbon technologies needed for a future sustainable and more secure global energy mix”, concludes Paolo Frankl, Head of the IEA’s Renewable Energy Division.

and adaptation across the world.”

Many cities around the world are already responding to the challenges of climate change. Increasingly, they are acting in concert and learning from one another, regionally, and through national and international networks such as the C40 Cities Climate Leadership Group, ICLEILocal Governments for Sustainability, United Cities and Local Governments, the EU’s Covenant of Mayors, and the World Mayors Council on Climate Change.

Continued From Page 1 we had to – and it cost us a lot, psychologically – ask for a…” Fornero said, before stopping to fight back some tears.

Prime Minister Mario Monti, who was also taking part in the conference, finished her response by explaining that the new technocratic government had had to ask for a “sacrifice” from the Italian public.

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Italian Welfare Minister Elsa Fornera

Turnover in trade and services increase in Q3

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urkey’s Statistic Institute (TurkStat) announced turnover index in the third quarter (July, August, September).

According to this, the quarterly trade and services turnover index that calculated according to the NACE Rev.2 classification indicates 21.0 % increased compared to the same quarter of the previous year and 1.5 % increase compared to previous quarter, in the third quarter of 2011.

Employment in trade and services increased 6.0 % over the previous year and 2.7 % over the previous quarter.

Trade and services’ employment index increased 6.0 % compared with the same quarter of the previous year and 2.7 % compared with previous quarter, in the third quarter

of 2011.

Hours worked in trade and services increased 5.8 % over the previous year and 2.5 % over the previous quarter.

Trade and services’ hours worked index increased 5.8 % compared to the same quarter of the previous year and 2.5 % compared to previous quarter, in the third quarter of 2011.

Gross wages-salaries in trade and services increased 17.3 % over the previous year and 5.7 % over the previous quarter.

Trade and services’ gross wages salaries index increased 17.3 % over the same quarter of the previous year and 5.7 % compared to previous quarter, in the third quarter of 2011.

Made in Turkey Economic Newspaper, December 2011

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EBRD launches key initiative to boost food security T

he EBRD has launched an initiative to help address the global challenge of food security via greater involvement of the private sector in efforts to match the rising demand for food with adequate supplies from the agriculture sector.

The new programme builds on existing work to bring together the private and public sectors in forging a joint response to food shortages and draws lessons from previous pilot schemes. It involves even greater coordination among key stakeholders and also reaches out to the EBRD’s planned new areas of operations in the Middle East and North Africa.

The Private Sector for Food Security Initiative places stronger emphasis on the supply- and tradeside of the food equation than has been the case so far in the global response to food security, an issue that is becoming even more pressing given projections for world population growth over coming

years.

It brings together the Bank’s existing and potential new regions by aiming to match the huge potential for exports in the former area with the massive import needs of the latter.

The programme will aim specifically to address bottlenecks along the whole food value chain by providing an effective menu of commercially viable responses; match more effectively the supply and demand from food exporters and food importers; provide greater opportunities for privatepublic sector dialogue to address the needs of the private sector; enhance coordination among the relevant international financial institutions and multilateral development banks to address both food as well as water security issues.

The involvement of the private sector is crucial in stimulating the supply side of food security as food production is first and foremost a private sector activity. With its

predominant focus on private enterprise, the EBRD is particularly well placed to promote the priorities of the private sector in its interaction with relevant authorities in key supply countries.

Such private sector involvement is key to unlocking the agricultural potential in countries such as Russia, Ukraine and Kazakhstan – three producer nations that could supply half the world’s grain needs if they realised their production potential, thus making great inroads into reducing global food imbalances.

The EBRD will also bring to bear its expertise in investing along the whole food value chain, especially as improved agricultural trade logistics and better financial and risk management instruments within the sector are crucial to smoothing the flow of products and to reducing food price volatility.

While applying its financing to existing countries of operations, which include many key agricultural suppliers, the EBRD’s

new initiative will also be important in the southern and eastern Mediterranean (SEMED) region, including such countries as Egypt, the world’s largest importer of wheat.

Better logistics along the food chain will also help smooth out price swings in this area, to which the EBRD is now planning to extend its investments.

Such volatility is potentially damaging, especially to smaller producers and poorer consumers, who are unable to insure themselves against wild price fluctuations.

In this context it will also be critical to step up activities aimed at more efficient utilisation of both water and energy, with the aim of producing “more food per drop” of water and fertiliser.

In its traditional region of activity, the EBRD is the largest investor in the agribusiness sector, where it has a portfolio of financing of €2.9 billion and in which it provided funding of €850 million in 2010.

Investments are expected to exceed €900 million in

2011.

Improved policy dialogue between the private and public sectors will increase the potential for investments in the farm sector generally.

The EBRD has already been active on the food security front by organising regional and country- focused pilot events aimed at improving the dialogue between commercial investors and the authorities that are responsible for providing the legislation and regulation that can improve the environment for private sector financing in the sector.

This initiative will now scale up such pilot policy dialogue and coordinating activities and roll them out systematically in both food-exporting and foodimporting countries.

The Bank has also been keenly involved in the private sector angle of G-20 discussions on food security and has worked on analytical papers, assessing how best to address the issue of global food shortages and rising prices via the private sector.

Industrial production increases 7.3 percent in October 2011

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ndustrial Production Index in October 2011 increased 7.3 percent compared to same month in previous year, according to the data of

Turkish Statistic Institute (TurkStat).

In the sub sectors level of industry, Mining and Quarrying Index increased by 8.6%, Manu-

facturing Index increased by 7.0%, Electricity, Gas, Steam and Air Conditioning Supply Index increased by 9.4% in October 2011 compared to the

same month of the previous year.

Calendar adjusted production index in October 2011 increased by 7.3% compared to the same

Minister of Finance Simsek: “We grow 7.5 pct in 2011” foreseen 1.6 and 1.9 percent. As for in euro zone downward risks have increased due to sovereign debt crisis.”

Turkey emerges to the front side with its sound performance

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Turkish Finance Minister Mehmet Simsek

urkey’s Finance Minister Mehmet Simsek in his speech at the general meeting of TGNA (Turkish Grand National Assembly) about the budgetary of the year 2012 said that Turkey’s economy would grow 7.5 percent in 2011.

Minister Simsek offered the Central Government Budget of the year 2012 at the General Meeting of TGNA. Simsek said that Precise Audit Law for 2010 and Central Government Budgetary Draft Bill for the year 2012 have been completed with an intensive study.

Starting his speech with the economy outlook in both Turkey and World, Simsek said following

the global economic crisis the economic recovery, which started with the extraordinary monetary and fiscal policy, has lost acceleration since the second quarter of 2011, the global economy has again entered into uncertain period due to deepening sovereign debt crisis in the Euro area.

Opposite of global growth expectations’ weakening, commodity prices keep their relatively high level, this condition has made up a risk for the global economy, according to Simsek.

Indicating that this condition was a negative development in terms of inflation and growth dynamics for the countries which depend on international markets in terms of natu-

ral resources, Simsek said in this scope, both IMF and OECD determined the global economy growth rate 4 in 2011 and as for 2012 the growth rate predicted 3.8 and 3.4 percent respectively.

Continuing his speech Simsek said, “However 4 percentage growth seems normal, this growth rate would show differences in terms of country groups.

Over three in four of the global growth will be achieved by China and India and emerging countries. These countries expected to grow 6.4 and 6.1 percent in 2011 and 2012 respectively. When China and India excluded, these figures drop by 4.6 and 4.2 percent. Growth in the Developed countries is

Turkey emerges to the front side with its strong growth performance. In 2010, growing 9 percent, Turkey economy is expected to grow 7.5 percent in 2011. While Turkey ranks atop in terms of growth rates in the EU countries, as for the world it takes place upper levels.

Paralleling slowdown in the world economy, Turkey predicted to grow 4 percent in 2012.

As you know the global crisis made its most destruction effect on employment. According to the statistics of ILO, in 2007 being 177 million, the unemployment number increasing 28 million reached by 205 million as of the end of 2010. ILO guesses unemployment number as 203,3 million for 2011.

Recovery in the global economy could not compensate these losses. The rate of unemployment is still over the level of before crisis period. Thanks to active labor force policies that we have put into force and strong growth, Turkey has achieved employment in the record level.

month of previous year and seasonal and calendar adjusted industrial production index increased by 4.4% compared to previous month.

Investments reach $25 billion in Jan. - Oct. 2011

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he dimension of new investments that encouraged by the government incentives reached $25 billion in the January-October period, according to data released by the Ministry of Economy.

There were 3,788 investment projects that benefited from government incentives from January to October, and the provinces of Kocaeli, Istanbul, Izmir, Gaziantep and Ankara received the most investment. Although investment came under pressure because of a global crisis and recession over the past 12 months, the number of investments to receive government incentives regressed by only 2.1 percent compared to the same period of the previous year.

The foreseen employment opportunities of the ministry that would be generated by the investments reduced 2.2 percent from 110,361 to 107,907 people.

The largest share of investments with government incentives was made by the manufacturing industry in the rate of 44.1 percent, but the amount of investments in total dropped by 20 percent to $20.1 billion from 61.2 percent over the previous year. In contrast, energy investments rose by 69.5 percent to $11.8 billion and investments made in the service sector raised by 40.4 percent to $11.2 billion over the same period previous year. Investments made

in the mining sector also raised by 12.9 percent to $1.3 billion in the past 10 months.

The fastest freefall was seen in investments made in the agriculture industry in the January-October period, decreasing 35.2 percent to $ 1.4 billion, and its share in total investments became 1.6 percent over the last year. The share of energy investments in total heightened to 25.6 percent from 14.8 percent as well as the service and mining sectors, which rose by 7.4 percent and 0.4 percent in the last 10 months.

The largest amount of investment was carried out by the Marmara region, which received $17.9 billion, and government incentives given to investments in the aforementioned period rose by 79 percent over the same period previous year. A total investment worth $5.6 billion carried out in the Mediterranean region, ranking second, but investment in this area dropped by 69.7 percent over the same period preceding year.

Eastern Anatolia accomplished the biggest increase in investment with a 90.5 percent climb, and the amount of investment made in the region totaled $2.9 billion in the first 10 months of the year.

Investment made in southern Anatolia rose by 74.4 percent to $3.9 billion while investment in the Black Sea region went up by 68 percent to $5.1 billion.

Made in Turkey Economic Newspaper, December 2011

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Industrial employment increases by 4.6 percent

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n the third quarter of 2011, industrial employment increased by 4.6 % over to the same quarter of the previous year and by 1.4 % over to the previous quarter, according to the data of Turkish Statistic Institute (TurkStat). Quarterly industrial employment index became 106.8.

Hours worked in industry increased by 4.0 % in Q3 in 2011 over to the same quarter of the previous year and decreased by 0.9 % over to the previous quarter.

% over to the same quarter of the previous year and by 5.9 % over

to the previous quarter in the third quarter of 2011. Quarterly Gross Wages-Salaries Index in Industry is 192,9.

According to the Main Industrial Groupings (MIGs) classification in the third quarter of 2011, over the same quarter of the previous year, employment increased by 4.2 % in Intermediate goods, by 8.6 % in Durable consumer goods, by 2.3 % in Non-durable consumer goods, decreased by 1.9 % in Energy and by increased by 12.3 % in Capital goods.

Over to the previous quarter, employment increased by 1.0 % in intermediate goods, by 2.9 % in Durable consumer goods, by 1.4 % in non-durable consumer goods, decreased by 0.8 % in energy and increased by 2.5 % in capital goods.

Over the same quarter of the previous year, hours worked increased by 3.9 % in Intermediate goods, by 12.3 % in Durable consumer

goods, by 0.5 % in non-durable consumer goods, decreased by 1.9 % in energy and increased by 12.7 % in capital goods.

Over the previous quarter, hours worked decreased by 0.6 % in Intermediate goods, increased by 1.9 % in durable consumer goods, decreased by 1.3 % in non-durable consumer goods, by 2.5 % in energy and by 1.5 % in capital goods.

Over the same quarter of the previous year, gross wages-salaries increased by 16.4 % in intermediate goods, by 20.2 % in durable consumer goods, by 13.8% in nondurable consumer goods, by 6.5 % in energy, and by 20.4 % in capital goods.

Over the previous quarter, gross wages-salaries increased by 5.5 % in Intermediate goods, by 8.8 % in durable consumer goods, by 6.0 % in non-durable consumer goods, by 6.5 % in energy and by 5.4 % in capital goods.

Quarterly hours worked in industry increased by 4.0 % over to the same quarter of the previous year and decreased by 0.9 % over to the previous quarter in the third quarter of 2011. Quarterly hours worked index in industry is 103,1.

Quarterly gross wages-salaries index in industry increased by 15.2

Emsan ends scratches with Cera-moni Plus pans

aving been as an indispensable brand of the Turkish kitchens for

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designs that are different from each other, Emsan offers its new product, ‘Cera-moni Plus’, to the

ral ceramic covering!

Possessing a base which is suitable for the thick and induction cookers,

years, Emsan showcases its ‘Cera-moni Plus’ pans which are durable against scratches!

Offering use easiness, the scratches and abrasions in pans drop to the minimum level by Emsan Ceramoni Plus.

With its higher in quality products and multi-

admiration of women.

Emsan Cera-moni Plus, thanks to its interior special ceramic cover, ends scratches of pots and pans with which women can face. Moreover, Emsan Cera-moni Plus is also environmentally friendly with its natu-

Cera-moni Plus pans pro-

vide heat spread quicker due to its compressed aluminum body. Thanks to this spreading, as meals cook faster, also energy saving and faster cooking are gained. In addition, providing use easiness with its ergonomic handles, it can be washed in dishwasher easily, too.

Besides buying Emsan Cera-moni Plus pans as single, also you can also buy stuffed eggplant pot, frying-pan and pans in different sizes. Meals cook both healthily and pans can be used confidently for long years with Emsan Cera-moni Plus.

Throughout Turkey, Emsan products are sold by 1050 authorized dealers.

Emsan continues to develop with its investments have been made since 1973.

Emsan has become a preferred brand with its products in a wide range such as stainless steel products, meal sets, kettle-coffeepot, breakfast sets, nonflammable, nonstick products, forks, spoon sets, glass cups and electric household appliances.

Turgay Durak, CEO of Koc Holding

“2012 to be tough, but full of opportunity year”

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chieving 43 percent rise of turnover in the first 9 months of 2011, Koc Holding CEO Durak said that fluctuations in the global economy would continue.

Koc Holding looks at 2012 with a cautiously optimistic. According to the CEO of Koc Holding Turgay Durak, this outlook has become an unchanged theme in recent years; it would be also valid for 2012.

Saying, “2012 will be very difficult, but full of opportunities year”, he said that Turkey would grow 4 percent in 2012.

Durak highlighted the risk management and market diversity with this perspective.

In 2011, “we have provided a performance over our targets” “2011 became a year that we have seen high development figures in the first half and on the other hand it became a year that uncertainties increased swiftly. We maintained our growth strategy focusing on profit. We also have strengthened our balance sheets by attracting attention to the risk management more against negative developments in the global economy and we have focused on productivity.”

We have also increased our incomes abroad by trying to boost our market share in the current markets, in addition by the effect of foreign currency

and thanks to the new markets where we have increased.

As conclusion of all these works, we increased our turnover 43 percent, operation profit 35 pct, as for our net profit we increased 16 pct in the first 9 months of 2011 over the same period last year.

We have stepped on the way to be a global brand In 2011, the holding has signed on the remarkable investments directed to the future, Durak continued, “In electric generation we have developed a new partnership and began to evaluate investment alternatives. In TUPRAS, agreements have been completed with the contractor and creditor establishments for fuel-oil converting project worth $2,4 billion. Arcelik has taken one more step ahead by purchasing Defy company in South Africa. In automotive we have made new decisions for new vehicle and engine projects. Taking place in a consortium, we have begun preparations for bridge and highways.”

Durak also said that they were diversifying their market in geographically and looking for new market in order to distribute the risk. Ford Otosan’s global truck project and light commercial vehicle exports of TOFAS to the USA are other outstanding enterprises of the holding.

Made in Turkey Economic Newspaper, December 2011

Turkey’s automotive market grows

Minister Yazici: “We work on options for transit shipment”

Turkish automotive market expanded 20 percent between January-November 2011 over the same period preceding year

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urkey’s automotive market as automobile and lightweight commercial vehicles boosted 20 percent to 735 thousand 33 units in the first eleven months of 2011 compared to the same period previous year. Tur-

key’s Automotive Distributors’ Association (ODD) announced that the total market of the automotive sector would achieve sales 850900 thousand units at the end of the year in 2011. As for the next year, the association foresees the total

market would become between 775-825 thousand units. According to the statement of ODD, the automotive market expanded 82.87 percent in the first quarter, 40.09 percent in the second quarter, as for the third quarter constricted 2.97 percent. Automobile sales in the first 11 months increased 22.88 percent to 504 thousand 208 units over the same period last year. The light commercial vehicle market reached by 230 thousand 825 units with 14.14 percent rise in the same period. The total market of the automotive achieved the sales of 735 thousand 33 units increasing 20 percent. When the market examined according to the engine volume, the highest share was under 1600 cc engines with 447 thousand 806 units, this followed by 1600-

2000 cc with 9 percent share.

Diesel and automatic transmission gear rises While diesel automobile sales raised 41 percent accounted for 309 thousand 224 units of the total 504 thousand 208 units in this period.

In this period, diesel vehicles’ share raised from 53 percent to 61 percent.

In the same period, automatic transmission vehicles increased 31 percent over the same period last year. In this period, 84 percent of the automobile sales were A, B and C segments which feature low tax rates. When automobile sales are evaluated according to their segment, C segment has the most sale rate with 47 percent and 238,324 units.

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Continued From Page 1

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ver the suspension of free trade agreement between Turkey and some problems have happened in shipping Turkish goods, Minister Yazici said following suspension of the agreement Syria would implement customs duty to the Turkish goods.

Minister Yazici continued, “We have noteworthy transit shipping via Syria. After suspending the free trade agreement Syria can determine the customs duty whatever it wants. Especially an impede happened after the decision at the Cilvegozu gateway. When we asked they said, “The new tariffs have not yet been loaded to the com-

puters”. Later, they have determined the tariffs. They have increased oil prices in a great extend. We are discussing the issue to solve.”

New routes are being constituted Yazici said “We have constituted new options about transit shipments. One of them is to arrange Ro-Ro shipment from Alexandria to Aqaba or from Mersin to Alexandria to provide goods transportation especially to the Gulf countries. Another alternative is to open Ovakoy and Aktepe customs gates just from the west of Habur gateway with Iraq. In addition, a bridge to be constructed just near Habur’s present one to provide transportation flow.”

Volkswagen majority mhareholder In MAN Approval by merger control authorities paves the way for MAN´s close cooperation with Volkswagen and Scania

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he majority takeover of MAN SE by Volkswagen AG is complete. The only remaining condition for completion of the man-

datory public offer made to MAN SE shareholders by Volkswagen AG has been fulfilled following clearance of the transaction by the Chinese

merger control authorities on 3 November 2011. Prior to this, the transaction had already been approved by the European Commission, as well as numerous other authorities.

All shares tendered to Volkswagen AG by MAN SE shareholders in response to its offer of 31 May 2011 have now been transferred to the new majority owner. Volkswagen now holds a total of 55.90 percent of the voting rights in MAN and 53.71 percent of its share capital. This clears the way for close cooperation between MAN, Volkswagen and Scania.

Deeper cooperation between MAN, Volkswagen and Scania is aimed at

sustaining the growth path pursued by the Munich-based vehicle and engineering specialist and promoting ongoing expansion of its position as one of the world´s leading transport-related engineering enterprises. Together, the companies will generate one of the world´s leading suppliers of commercial vehicles.

Following conclusion of the mandatory offer, Georg Pachta-Reyhofen, Chief Executive Officer of MAN SE, stated that, “Today we are opening up a new chapter in the 253-year history of the company, which is set to continue. At the same time, we shall retain our special MAN iden-

tity marked by innovation, the art of engineering and international positioning. The success achieved by MAN, Volkswagen and Scania is based on identical values. We are therefore all convinced of the industrial logic behind close cooperation and are taking an open and committed approach to the new partnership.”

Closer cooperation will form a basis for exploiting extensive synergy potential. The companies involved anticipate that synergies amounting to at least €200 million per annum can be achieved, mostly in the procurement sector. In the long term, substantial additional potential lies

in intensive cooperation in the production sphere, as well as in the field of research and development.

The partnership with the Volkswagen Group also offers attractive prospects for MAN employees. Volkswagen´s clear commitment to MAN´s brands, business areas, locations and employees is a definite sign of the stability, sustainability and esteem on which our mutual cooperation will be based.

No personnel cuts are planned in the course of the amalgamation process.

MAN´s headquarters will remain in Munich, all the company´s sites should be retained unchanged and the independence of its brands preserved.

Made in Turkey Economic Newspaper, December 2011

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Exports up 13.9 percent in November

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urkey’s cumulative exports surpassed worth $122,1 billion as of the end of November 2011, increasing 13.9 percent over the same month previous year, according to the data of Turkey’s Exporter Assembly (TIM).

In November 2011, Turkey’s exporters achieved worth $10 billion 758 million with 13.9 percent increase.

As for year on year exports became $133 billion 978 million, expanding 19.5 percent, over the same period last year.

In November 2011, the most exports achieved by the automotive sector with worth $1 billion 624 million. The chemical matters and their products ranked at the second stop with $1 billion 254 million worth of exports. As for the other locomotive sector of the exports, ready-to-wear sector achieved exports worth $1 billion 160 million ranking at the third stop.

In November 2011, record export increase was accomplished to some the African countries. In this scope, Turkey’s exports to

Ethiopia increased 311 percent, 229 pct to South Africa, 206 pct to Angola, 199 pct to Nigeria, 172 pct to Ghana, 142 pct to Kenya.

The share of the agriculture in the total exports became 15.9 percent.

The industrial sector’s exports

increased 11.87 pct to $8 billion 721 million, as for its share in the total exports became 81.07 percent.

“Exports in November indicate a step toward Turkey’s bid to achieve a $500 billion worth of total exports by 2023, the centen-

nial anniversary of the Republic of Turkey,” Turkey’s Economy Minister said. He also noted that Turkey’s exports proceed toward a new record, adding that he predicted export volume to be worth some $135 billion by the end of the year.

Export and import unit value increase

Mechanization in agriculture full steam ahead umber of Tractor which is regarded as the indictor of mechanization in the agriculture sector raised by 1,1 million from 948 thousand.

According to the statistics of Turkish Statistic Institution (TUIK), Turkish agriculture sector is swiftly going to mechanism.

The Primitive plough period has stayed in very behind. Also other number of primitive devices in the agriculture sector is steadily lowering.

As for the reason why the old fashion devices are used by the some small family agricultural

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business enterprises is this kind of enterprises are not suitable for the high technological investment.

As for the expansion in the drop irrigation system features a great importance to use water resources efficiently and prevent wild irrigation. The incentives of the government in recent years as well as awareness in the sector reflected positively to increase number of the facility. In recent 10 years, number of drop-irrigation raised from 58 thousand to 246 thousand units. This progress marks to quit the old and ineffective methods as well as abandoning old devices.

In Turkey, presence of the agricultural lands is shown as 22 million hectares. The number of tractor for 1 thousand hectares is 87 units

in the UK, 92 in Germany, 69 units in France and Spain. In Turkey, this number has seemingly reached by 50 units.

Turkey, Azerbaijan work on a new gas pipeline project Azerbaijan and Turkey have launched a new pipeline named trans-Anatolian gas pipeline project.

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he president of Azerbaijani state-owned oil company SOCAR, Rovnag Abdullayev, announced Turkey and Azerbaijan have launched on a new gas pipeline project that would connect Turkey’s east and west to carry Azerbaijani gas to Europe.

In his speech at the meeting entitled ‘Black Sea Energy and Economic Forum’ in Istanbul, Abdullayev said the new pipeline had named the Trans-Anatolian Gas Pipeline and would be an example of one of the most successful projects that Turkey and Azerbaijan have cooperated on.

He marked by this way, the rich gas potential of Azerbaijan would be transferred to the Turkish and European markets and this is a great achievement for the two brother

countries.

Presently, Azerbaijani natural gas is transported into Turkey via the Baku-Tbilisi-Erzurum pipeline, whereas its oil flows to its western neigh-

bor via the Baku-Tbilisi-Ceyhan pipeline. Abdullayev said the two pipelines have allowed Turkey and Azerbaijan to play a more powerful role in the region.

Time running out for tackling climate change xtreme warnings about the consequences of delaying action to tackle climate change have come from two sources in the last month. The International Energy Agency (IEA) says a global climate deal must be agreed by 2017 if global temperatures are to be kept under control, and an American institute says global warming is happening faster than the most pessimistic scenarios have predicted.

The IEA report ‘World Energy Outlook’ presented earlier November 2011 warns the world that continuing to develop carbon-intensive infrastructure like industrial plants and transport systems will ‘lock in’ emissions. It says the developed nations should not be made to carry the main burden, as by 2035 90% of growth in demand for energy will be from

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countries outside the OECD, and China will have emitted more than Europe.

The IEA has calculated the costs of delaying action to reduce warming.

It says the cost of investment in clean infrastructure after 2020 could be 4.3 times the cost of the same investment now. And it says failure to act by 2017 means keeping global temperatures within two degrees Celsius, a globally agreed target, will be ‘probably not practicable politically’.

The report says that by 2015 the EU will overtake the US as the world’s biggest oil importer, and that oil price is likely to hit $150 per barrel in the near future.

The IEA’s estimates could be already too cautious, as figures for 2010 from the US Carbon Dioxide Information Analysis Center suggest

levels of greenhouse gases are higher than the worst case scenario outlined by climate experts four years ago.

The 2010 figure was 6% up on 2009, prompting one professor to describe it as ‘a monster increase’, and the centre’s director to say ‘From an emissions standpoint, the global financial crisis is over.’

Extra emissions from two countries, China and the USA, account for more than half the 6% increase (or 564 million more tonnes) in 2010.

India was the next biggest contributor.

The Intergovernmental Panel on Climate Change predicted in 2007 that temperatures this century would rise by between 2.4 and 6.4 Celsius.

The 6.4 mark is about midway in the range offered by the CDIAC based on 2010 emissions.

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n September 2011, according to foreign trade indices the overall export and import unit value indices increased by 11.2% and 17.7% respectively, based on the year 2003, according to the provisional foreign trade data, compared to the corresponding month of the preceding year.

In the same month, compared to September 2010, the export unit value index for agriculture and forestry, fishery, mining, manufacturing increased by 12.5%, 37.8%, 6.5%, 11.2%, respectively.

In September 2011, the import unit value index for agriculture and forestry, mining, manufacturing increased by 31.7%, 37.3%, 13.3%, respectively, as over the corresponding month of the preceding

year.

In the third quarter of 2011, compared to the corresponding quarter of the preceding year, the export unit value index and the import value index were up by 14.5%, 19.6%, respectively.

In the same quarter, compared to the corresponding quarter of 2010, the export unit value index for agriculture and forestry, fishery, mining, manufacturing increased by 11.2%, 16.8%, 12.2%, 14.7%, respectively.

In the third quarter of 2011, the import unit value index for agriculture and forestry, mining, manufacturing increased by 38.3%, 33.3%, 15.8%, respectively, over the corresponding quarter of the preceding year.

Made in Turkey Economic Newspaper, December 2011

Turkey, Azerbaijan ink “Trans Anadolu Natural Gas Pipeline” Turkish Energy and Natural Resources Minister Taner Yildiz and his Azerbaijani counterpart, Natig Aliyev, signed an agreement in Ankara to build a natural gas pipeline, named the Trans Anadolu Natural Gas Pipeline, to transfer gas from Shah Deniz fields in Azerbaijan to Europe

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Turkish Energy Minister Taner Yildiz

urkish Energy & Natural Resources Minister Taner Yildiz signed an agreement in Ankara with his Azeri counterpart Natig Aliyev for the construction of “Trans Anadolu Natural Gas Pipeline”.

The deal on “Trans Anadolu Natural Gas Pipeline” foresees sale of Azerbaijani natural gas in both Turkey and Europe via Turkey.

Turkey’s Energy Minis-

ter Taner Yildiz signed an agreement in Ankara with his Azerbaijani counterpart Natig Aliyev for the construction of a natural gas pipeline.

Turkish energy minister said a new natural gas pipeline between Turkey and Azerbaijan would be a major contribution to diversify west-bound energy supply routes.

The deal on TransAnatolian Natural Gas Pipeline foresees sale

of Azerbaijani natural gas in Turkey as well as in Europe via Turkey.

Azerbaijani SOCAR, Turkish Petroleum Pipeline Corp. (BOTAS) and Turkish Petroleum Corporation (TPAO) will set up a consortium for the construction of the pipeline.

Other international oil and natural gas companies would be allowed to join the consortium later during the process as well.

The consortium plans to

start construction as soon as possible -- in 2012 -in order to complete it by late 2017. The Azerbaijani minister said the volume of gas flowing through Trans Anadolu would be increased to 24 billion cubic meters in the medium term. Observers said this figure is important considering Azerbaijan’s goal of increasing its gas production to 50 bcm per year by 2025 from the 25.3 bcm expected this year.

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i UCLG afırms core values of the cities around the world

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t the invitation of Matteo Renzi, Mayor of Florence, the City of Florence welcomes local and regional representatives from over 40 different countries gathered in the UCLG World Council from 9 to 11 December, the President of The world council of United Cities and Local Governments (UCLG) stressed that building governance from the bottom up will be crucial for the future of our planet.

The Council was opened by Kadir Topbas, Mayor of Istanbul (Turkey) and President of UCLG, and by Matteo Renzi, Mayor of Florence. Matteo Renzi affirmed that cooperation between cities remains extremely important, notably through UCLG, the biggest network of local and regional authorities in the world. The Florence Declaration, affirming the core values of the cities around the world, was adopted.

The President of UCLG stressed that building governance from the bottom up will be crucial for the future of our planet. Our citizens are taking the streets demanding solutions. We the local and regional leaders will need to be engaged in the global solution that is being sought.

United Cities and Local Governments (UCLG) is the biggest organization of local and regional governments in the world, present in 140 countries.

Number of tourists visiting Turkey surpasses 30 million in 2011 Turkish Tourism Minister Ertugrul Gunay

n the first 11 months of 2011, 30 million tourists visited Turkey increasing 10.18 percent over the same period last year.

Turkey’s Culture and Tourism Minister Ertugrul Gunay said more than 30 million tourists visited Turkey in 11 months of 2011, exceeding the expectations despite political turmoil in Turkey’s neighborhood.

As for number of visiting tourist in November 2011, expanded 7.06 percent to 1 million 596 thousand 295 units over the same month previous year.

In his speech due to gathering of Turkish ambassadors in Ankara Ertugrul Gunay said, “Despite Turkey lost many tourists in the year 2011 due to the uprising across the some countries of the Middle East, but the number of tourists visiting Turkey relatively increased over the last year.”

He added that the world has been through a devastating financial crisis in the past three years but

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Turkey’s tourism industry didn’t get affected from the financial turbulence.

Gunay noted, while Turkey hosted only 13 million

tourists in 2003, now the number of tourist visiting Turkey reached by 30 million.

“For the first time, we are surpassing 30 million this year. This is a significant edge in our tourism history,” Minister Gunay added.

The minister reminded Turkey received 28.6 million tourists in 2010 and many tourist reservations were canceled this year because of the Arab Spring. Despite this fact, he said, Turkey achieved nearly 2 million growing in the number of tourists

visiting Turkey.

Gunay also noted that Turkey’s Statistics Institute announced tourism revenues as $20.8 billion last year but he said his ministry believes there would be mistakes in their count, implying that the actual revenues would be higher.

Tourism revenues are crucial in closing budget deficits and Gunay reminded tourism was Turkey’s “the most important export sector.”

According to Gunay, Turkey has a target of making into top ten in many spheres by 2023 and he

said Turkey had already achieved its target in tourism sector as it is in the top ten in the world. The minister added that Turkey competes with France, Italy and Spain in Europe in tourism sector and the US and China on a global stage. In November, 1 million 596 thousand 295 unit tourists entered Turkey; most of them came to Turkey from Germany, Bulgaria, Iran and Georgia and Syria respectively. The gateways of Istanbul, Antalya and Edirne became the most entrance gates for the tourists.

Motor vehicles hit number of 16 million in Turkey

In the first ten months of 2011, motor vehicles which registered in traffic reached by 15,971,493 units

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n the domestic market, 90,733 motor vehicles registered to the traffic in October 2011, cars ranked atop with the ratio 48.9% (44,329) and it was followed by small trucks with the ratio 19.6% (17,800), motorcycles with the ratio 18.1% (16,400) and tractors with the ratio 6.6% (5,992), according to the statement of Turkish Statistical Institute (TurkStat).

Trucks, small buses, buses and special purpose vehicles constituted the 6.8 % (6,212) of the registered motor vehicles in October 2011.

In proportion to the previous month, the number of registered motor vehicles increased with a ratio 1.1%. Cars, small trucks, trucks, special purpose vehicles, tractors increased with a ratio 15%, 7.4%, 3.2%, 18.4%, 39.4%. Minibuses, buses, motorcycles decreased with a ratio 0.2%, 22.1%, 30.9% respectively.

The number of registered motor vehicles increased with a ratio of 2.3 % in comparison to the same period of the previous year.

According to the interim data in October 2011, the number of registered vehicles to the traffic increased with a ratio of 2.3% in comparison to the same month of the previous year. Buses, trucks motorcycles, special purpose vehicles, trac-

tors increased with a ratio 19.4%, 12.4%, 43.1%, 55.2%, 30.5%. Cars, small buses, small trucks decreased with a ratio 3.3%, 4.9%, 16%.

Between January - October 2011, total number of vehicles increased by 875,890 While 159,529 motor vehicles were withdrawn, 1,035,419 total motor vehicles were registered to the traffic between Jan. - October of 2011. Hence the total number of motor vehicles in traffic is increased by 875,890 units in the first ten months of 2011. As of the end of October, the total number of motor vehicles in Turkey became 15,971,493 units. In the total number motor vehicles; the ratio of cars, small trucks, motorcycles, tractors, trucks, small buses, buses and special purpose vehicles accounted for 50.3%, 16.2 %, 15.8 %, 9.1 %, 4.6 %, 2.4 %, 1.4 % and 0.2 % respectively.

Distribution of vehicles by trademarks in October 2011 The distribution of the trademarks of the cars registered (44,329) in October 2011 is; Renault 14,2%, Volkswagen 11,1%, Tofaş-Fiat 9%, Opel 8,6%, Ford 8%, Toyota 7.7%, Hyundai 6.7%, Chevrolet 5%, Nissan 3.4% and the other trademarks 26.4%.

Target for medical products: Export over 1 billion dollars

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s in several other sectors, Turkey has been showing a progress in health and medicine sectors. Besides the innovations in the products and the systems, the sector has achieved a significant acceleration in export and closely follows the global innovations. MEDICA International Medical Products and Technologies Fair, which is the most significant fair in the health and medicine sector, is one of these. 89 companies from Turkey took part in the 43rd MEDICA fair. It is aimed to increase the export of medical products over 1 billion dollars at the end of 2012.

MEDICA International Medical

Products and Technologies Fair was held on 16 - 19 November in Düsseldorf, which is the city of fashion and fairs in Germany. 22 Turkish companies took part in the fair under the organization of Istanbul Chemical Materials and Product Exporters Association (İKMİB). 67 Turkish companies from the health sector also took part in the fair individually.

MEDICA, which is the most significant fair for the health sector in the world, has been the pioneer for the medical product and medical sector tendencies from all over the world and the latest innovations in the medical sector could be seen

in the fair. Significant actors of the Turkish health sector took part in the fair and the expert visitors had a chance to see the latest developments and tendencies for the future in the hospital and outpatient treatment areas. Several product groups such as medical technology, laboratory equipment, physiotherapy/orthopedics technologies, consuming materials for operation rooms and hospitals, structural technologies, medical services and publications have been exhibited in MEDICA Fair.

While 89 Turkish companies took part Fair and 22 companies were represented with national participa-

tion in MEDICA, 4.571 companies from 62 countries took part in 2011.

The fair was established in 275 thousand m2 area last year and was visited by 137,000 people.

Murat Akyüz, president of İKMİB, said that they are happy for the participation at national level to such a great organization: the MEDICA, which is the most significant activity of the health and medicine sector in Europe and added that there is a significant increase in the number of the participating companies each year. Mr. Akyüz emphasized that they aim to increase the medical products exports over 1 billion dollars at the end of 2012.

Made in Turkey Economic Newspaper, December 2011

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Turkey’s foreign trade defıcit i diminishing The current account deficit reduced in November 2011 over the same month previous year

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urkey’s biggest export markets in November 2011, in consecutive order were Ger-

many, Iraq, the United Kingdom, Italy and Russia.

According to the data, produced with

the cooperation of Turkish Statistical Institute and Ministry of Customs and Trade in November 2011; exports increased by 18,5% and reached to $11,114 billion Dollars while imports increased by 8,8% and reached to $18,647 billion compared with November 2010. At the same month, foreign trade deficit decreased from $7,752 billion to $7,533 billion.

Calendar adjusted exports increased by 14.6% and imports increased by 4.5% compared with November 2010. Seasonally and calendar adjusted exports in-

creased by 1.6% and imports decreased by 0.7% compared with previous month.

In November 2011 exports coverage imports was 59.6% while it was 54.8% in November 2010.

As compared with the same month of the previous year, exports to EU were $4,946 billion increased by 12.1%. The proportion of the EU countries was 44.5% in 2011 while it was 47% in November 2010.

In November 2011, the main partner country for exports was Germany with $1,1 billion and

increased by 9.9%. For exports, Germany was followed by Iraq ($767 million), the United Kingdom ($741 million), Italy ($602 million) and Russia ($560 billion).

In November 2011, the top country in Turkey’s imports was Russia ($2,369 billion), and then Germany ($1,696 billion) and China ($1,611 billion) respectively.

Road vehicles are forefront in exports according to chapters For November 2011, “vehicle other than railway or tramway rolling stock, parts thereof” has by far the highest value exported at $1,228

Hasan Tuluy appointed as new World Bank V. P. for Latin America and Caribbean asan Tuluy, a Turkish national and a strong supporter of inclusive growth, has been appointed the new World Bank Vice President for Latin America and the Caribbean (LAC) as of January 1st, 2012. Mr. Tuluy will oversee the Bank’s lending, knowledge, and poverty-fighting operations in the region, which totaled US$9.6 billion in fiscal year 2011.

With extensive experience in development issues, especially in the Middle East and Africa, Mr. Tuluy has contributed to the strategic engagement of the Bank’s work in middle income countries, which bet-

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ter responds to the need of these countries for a more sophisticated approach in terms of financial instruments, on time knowledge services, and greater voice in global affairs.

Mr. Tuluy’s emphasis in LAC, shaped by his previous experiences, will be to consolidate the role of the World Bank as a trusted partner, helping countries deliver opportunities to all citizens through sustained and socially inclusive growth.

“I am very grateful for the opportunity to work in Latin America and the Caribbean, a region that has demonstrated that successful outcomes can be shaped by the

right kind of policies and leadership,” said Tuluy.

“Barely a decade ago, LAC was thrown into a tailspin by an international financial crisis with countries facing recessions in varying degrees. Since 2003, the region has been reaping the benefits of one of its strongest periods of growth, lifting 73 million people out of moderate poverty and slashing extreme poverty rates in half.”

Mr. Tuluy replaces Pamela Cox, who after seven years in the region will take the position of Vice President for the East Asia and the Pacific Region.

Referring to the uncertainty of the global

outlook, Mr. Tuluy said “While it is still unclear how much the current Euro-zone debt crisis will impact the region, at risk would be its hardwon social gains. These need to be protected, and we are ready to help, working together with our regional development partners.”

Prior to becoming Vice President for Latin America, Mr. Tuluy was the World Bank’s Vice President for Human Resources. He has also served as Chief Operating Officer for the Multilateral Investment Guarantee Agency (MIGA), as Director of Strategy & Operations in the Middle East and North Africa Region, and as Director

billion and then “boilers, machinery and mechanical appliances” ($918 billion), “electrical machinery and equipment” ($866 billion), “iron and steel” ($844 billion) and “knitted and crocheted goods and articles” ($607 billion).

At the same period, the top categories for imports were “mineral fuels and mineral oils” ($4,876 billion) and then “boilers, machinery and mechanical appliances” ($2,094 billion), “iron and steel” ($1,686 billion) and “vehicle other than railway or tramway rolling stock, parts” ($1,370 billion).

Turkey’s private and public sectors debt calculated as $310 billion

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Hasan Tuluy WB Vice President

of Corporate Strategy.

Mr. Tuluy will lead the activities of 700-plus staff working in the LAC region and will oversee a portfolio of over US$17 billion in loans, grants and credits. Typically, the region accounts for

more than 30 percent of total International Bank for Reconstruction and Development (IBRD) lending worldwide. The World Bank serves 31 countries in LAC, home to more than 540 million people.

he sum of foreign debt of the private sector consisted of 65.8 percent, as for public sector’s debt became 30.7 percent.

Turkey’s gross foreign debt amount has been counted as $309,6 billion as of end of the third quarter in 2011.

According to the statement of Turkey’s Treasury Undersecretary Office, while the foreign debt amount became as $309,6 billion, the debt of the private sector in the total foreign debt amount $203,8 billion accounting for 65.8 percent and public sector dept accounted as $95,1 billion, being 30.7 percent. As for the Central Bank’s debt share was $10,7 billion accounting for 3.4 percent in the total debt sum.

Majority of the public sector’s debt composed of the mediumlong terms foreign debts. The central administration’s foreign debt sum is $80,1 billion as of the end of the third quarter of 2011, $46,1 of this amount resulted from the exports of bond in the international financial markets.

As for the other public sector debt, out of the central administration, was counted as $15,1 billion in the same period.

While short term debt sum of the private sector was $80,1 billion, the part of $49,4 billion of 80,1 billion belongs the banking sector, accounting for 67.7 percent.

The medium-long terms debts of the private sector was $123,6 billion; the non-financial establishments have the biggest share in the long-term debt sum with $83,1 billion.

The central bank’s long term debt was calculated as $9,3 billion, short term debt became $1,4 billion in the same period.

i ÜÇGE on the way being a competitive fırm in world

Okan Aras Deputy Chairman of ÜÇGE

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roducing warehousing storage systems for various sectors, ÜÇGE advances on its way towards world leadership. Having ability to reach every point of Turkey on the same day, ÜÇGE also exports to 70 countries. ÜÇGE produces shop fittings for all sales points ranging from hypermarkets to DIY markets.

Featuring as the biggest integrated premises of Europe, ÜÇGE has 5 integrated production premises.

Preferring high technology with full-automatic production lines, ÜÇGE

produces different materials as tailor-made on order.

We conducted an interview with Okan Aras, Deputy Chairman of ÜÇGE about firm’s current situation and objectives for the future.

Q- Would you inform us how ÜÇGE, which is one of the leading firms of rack sector in our country, reached its current position?

A- The giant steps of today began 35 years ago on a hot September day. Taking its place in the commercial area with two persons, the firm set

sail to its quality voyage by syllable of ‘Gök’, inspiring from the name of Gökçin Aras.

Since 1991 to date, this tough voyage has been continuing with ÜÇGE (3G) which integrated with the principles of ‘Strength- ConfidenceSplendor’.

Having the state-of-theart technology on a total closed area of 80 thousand sq meters; ÜÇGE is a big group of companies with 700 employees. The firm possesses a 150-expert team for only warehouse storage systems and automatic stocking system production, on a closed area of 20 thousand sq meters.

Being able to reach every point of Turkey on the same day, exporting to 70 countries and having 18 regional offices constitute our essential work focusing on the customer satisfaction.

Featuring as the biggest integrated premises of Europe, ÜÇGE has 5 integrated production premises; 1 at BTSO Organized Industrial Zone, 3 at Kestel Organized Industrial Zone and 1 at MKP Organized Industrial Zone.

Preferring high technology with full-automatic production lines, ÜÇGE produces different materials such as flat steel, profile, wire, wood, glass, plexy as tailor-made on

order.

Moreover, ÜÇGE features with its assembling applications in a very short and just in time. Thanks to special roll/form lines, our firm - which has a 90 thousand steel processing capacity - exports its products to 70 countries across the world.

Q- Does your firm produce for which sectors?

A- As ÜÇGE, the emerging reason of the slogan, “Actually You See Us Everywhere”, is that our brand exists everywhere. It is possible to see our products in every sector ranging from home to retailers, food to automotive, logistic sector, from boutique stores to electronic stores, construction market.

Q- Would you tell us about your innovations in 2012?

A- As ÜÇGE DRS, we are the biggest firm of

Turkey in Warehousing Storage Systems. Guiding the sector mostly loads big responsibilities over our shoulders. Being as a followed firm increases expectations as well as forcing development. It is necessary to improve storage systems based on automation. In line with this, our R & D team renovates its works continuously. In 2012, we aim to achieve our 3 projects which are supported by TUBITAK. As the domestic producer, we target to compete in the international level, to support the market which depends on abroad in the meaning of supply in Turkey. Thanks to this, we contribute to the current account deficit even though in a small size.

Apart from the domestic market, producing solution in both rack and automation systems for neighboring countries, as Üçge DRS, also expanding our exports is in our objec-

tives. In the near future, we will be in every country of the world with Üçge brand, we are determined.

Q- When we look at the domestic market, does Üçge firm see itself at where of the sector?

A- We, as Üçge, are known leading of the sector, as the biggest storage systems’ producer firm in Turkey. We do not say this, our customers and our solution partners. So, we are number one in the sector as Üçge. We will take this to the world leadership in a short time.

Q- What is your export potential?

A- Using the advantage being Üçge Group of company in the best way, we catch chance to take place in many points. As of today, we are a firm exporting to 70 countries.

Canada, South Africa, Siberia, India, Sudan, England, Italy are some examples of them. Thanks to our developed systems and systems which we have planned to develop, in the upcoming years, we assure that we would exist at every place of the world.

Q- Would you tell us about your targets and projects for the future?

A- Among our targets for the future there are 3 projects to be achieved

by the support of TUBITAK. These projects are related with innovative warehouse solutions. Taking into account the needs and developments of the market, our planned targets would be completed at the end of 2012. If we example from the past years, the automatic warehousing system (AS/RS) was averagely completed in 2-2,5 years. But, thanks to our own engineers and advisory support, as Üçge

DRS, accomplishing this project in a short time such as in 8 months we showcased at the biggest logistic fair of the world, CEMAT Hannover.

Guiding the sector for the year 2012 and after that, we are planning to achieve lots of projects. Some of our R & D team maintains its studies directed towards development. It is not much far, only within a few years; we will come to a position to be a num-

Made in Turkey Economic Newspaper, December 2011

14

Abu Dhabi blinks to Turkish investor

Ümit YALÇIN ( L ) Turkish Consul to Dubai, Recep ARSLANTAŞ of Turkey, Ş.Vural ALTAY, Turkish Ambassador to U.A.E

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he United Arab Emirates, the federation which is constituted by coming together of the seven emirates which is little by itself but ranking at top levels across the world thanks to its per capita income, Dubai continues to attract appetite of our firms in the construction sector.

In addition to Dubai, six emirates in the United Arab Emirates, of which development has reached upper levels with the sectors of trade, finance and tourism, also blink to the investors in Turkey. The sectors of food, textile, furniture, cement, aluminum, ceramics, iron-steel and glass are in the improvement process. We conducted an interview with Vural Altay, ambassador to Abu Dhabi advising to the Turkish investors especially want to run in Abu Dhabi city.

Q- Do we know shortly about you?

A- I’m Turkey’s ambassador, ambassador to Abu

Dhabi. I have been working for 28 years at the Ministry of Foreign Affairs. Nearly two years ago I was assigned to my current duty in the United Arab Emirates and this is my eighth duty abroad. At the same time my first ambassadorship duty.

Q- What kind of things you advice to our businessmen who want to do business abroad?

A- Firstly, they must know here very well. Here a country features a central position of this region where continents unite. So thanks to its position here, it is easily possible to reach the African continent, Middle East, Asia. I think it would be beneficial that our investors not only perceive as the Gulf Region and United Arab Emirates, they should see to open to a wider geographic region. In fact, Dubai is known across the world. In addition there is also Abu Dhabi a leg of this. The United Arab Emirates composes a federal structure which includes seven emirates.

The capital city of the emirates is Abu Dhabi. Abu Dhabi has put forward as a business center. But, 95 percent of oil and natural gas deposits take place in the borders of Abu Dhabi.

So in addition to oil and natural gas, they are maintaining their works to improve their industry. In Turkey, most of the people do not know, however, our commercial relations with Abu Dhabi are fairly in the high level. This year we aim $4,5 billion worth of foreign trade volume. In 2008, this figure surged by $9 billion but due to the global economic crisis a plunge was experienced.

Our objective in 2015 to raise our trade to $10 billion. For this reason, of course Turkish firms should be interested in here more.

Q- There are many projects of Turkish firms in the construction sector. Would you tell some about these?

A- We have very powerful position in the construction sector. The United Arab Emirates is one of the biggest markets of ours. Our firms have contracted business worth some $8 billion until now. In Dubai, construction sector has entered crisis in recent times. We think this crisis would be overcome within a few years. However, every crisis period is perceived as a period in which new opportunities reveal. So, we invite our companies to interest more in tenders here.

Q- In recent days, we observe that Turkish businessmen and our ambassadors have made up EASY

Crossword Puzzle Solved

a synergy in the positive side.

How do you evaluate this positive atmosphere?

A- In my point of view, this is the thing that should be made. In the course of time, the nature of the foreign policy changed. Before while it was only going by rhetoric, now it takes way via concrete economic trade relations. For this reason in this process, our businessmen’s role in economy-trade dimension in foreign policy has increased more.

I think this cooperation and solidarity is a very crucial development. Everybody should exert effort in all areas on the way to make our country first ten big economy of the world due to it is our target to be achieved by 2023.

Q- It is known by everybody that Dubai has a good position in terms of tourism. What should Turkish tourism organizations pay attention in the tourism sector?

A- Here is one of the most important tourism centers of the world. According to the latest figures, Dubai based on the city poses attracting much more tourist. Here is an attraction center. Tourist flow between the two countries has shown increase. This year, we expect 50 thousand tourists to our country. This figure can be misleading in terms of our readers, but if the local population in the United Arab Emirates is thought as 1 million, expressing this number is quite nature. The number of citizens of United Arab Emirates who

go to the UK is some 10 thousand. I believe we attract 5 fold of it to our country. So every tourist who depart from here spend over 5 time compared to the tourist who goes from European. After exceeding visa problem between our countries, I hope this figure would raise more. Together with this, there are senior level adminis-

MEDIUM

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A sought-after brand of fairs: Ege Plast

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products and fitting parts at Ege Plast stand was intensively visited by the representatives of construction firms from both home and abroad, besides dealers, plumbers, municipalities and public bodies, contractors, representatives of sector. They have been exchange of information during the promotion of the products.

A first in Turkey, nonflammable pipe from Ege Plast The products from build-

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ge Plast became focus of interest in the fairs of PIPEXPO and Construction, Construction Material and Supplier which were held this year.

At Ege Plast stands which were prepared in a various design, wastewater pipes, fittings and tree image that was made of pipe, as well as the new products were showcased and liked by visitors.

Infrastructure, superstructure and agriculture group

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ing group of Ege Plast which are used as wastewater pipe, PP Nonflammable Pipe and fittings were promoted in the fairs and evaluated interestedly.

Made of 100% block copolymer raw material which is suitable to the construction material, Ege PP Nonflammable Pipes are used in emptying hot and cold wastes of home, in air conditioner systems and rainwater systems of building.

“Thanks to the lock system of fittings a full impermeability is provided,” the official of the firms said, adding that nonflammable pipes were environmentally-friendly and do not emit toxic gas.

Pex Pipe with oxygen barrier Ege Plast has begun Pex pipe production featuring oxygen barrier. Having double times long life and very much durable, evoh copolymer layer in outer side, in mid-part adhesive layer, as for interior part

cross tied pex pipe layer are available in pex pipes with oxygen barrier.

“Ege Plast pex pipes with oxygen barrier, which are used in heater, combi systems and under-floor heater systems, have been

welcomed by the dealers and construction material sellers with delightedly,” the officials of the firm said, adding that they would continue to produce new products in 2012, too.

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trators of ours at the hotels that operate here.

Q- Would you like to add something?

A- In recent period, we see delightfully that our enterprises go to every point of the world. We wish to increase this in the upcoming years more.

Across the world now there is no venue where cannot to be

reached. In the United Arab Emirates there are seven emirates. Only two or three of these are known. We desire our businessmen and investors to do business in the other emirates passing beyond them and as the consulate general we are ready to help our enterprises in every issue. Not necessary to hesitate to connect with us.

Made in Turkey Economic Newspaper, December 2011

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Sanko Chairman Abdulkadir Konukoglu : Turkey will exist in the textile sector and will mark its success on the sector.

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ogether with the Development Minister Cevdet Yilmaz attending the meeting entitled “Common Industrial Strategies Towards 2023” which was held

by MUSIAD branch in the western province of Denizli and offered by Osman Arolat, the author of daily Dunya, Konukoglu said that Denizli and Gaziantep are the star cities in the industrialization of Turkey.

Konukoglu said that Denizli also displays a successful performance in textile. Reminding historical process of the textile sector, Konukoglu continued, “Once textile was said, the countries that came to mind were England then France which they lost their leadership in the sector before losing their colonies which had given the said power to themselves.”

“After Italy which began its business via subcontract and then marked its successes on the sector in fashion area for years, Turkey has taken over the flag in the textile,” Konukoglu said.

Konukoglu continued, “Regarding Turkey is a cotton producer will wave this flag for long years. We should win our farmers again.

Once harvesting over 1 million tons cotton per annum, Turkey’s production decreased by 350 thousand tons. But rise gradually began to expand. In terms of fashion, we do not have any lack compared with Italy. We do not have any luxury to abandon the tex-

tile sector as other countries. Textile is our sine qua non for long years in the aspect of employment as well. Once the bureaucrats said that let’s get out textile. However, almost one in ten people in Turkey deal with one branch of textile. In old times, we celebrated the week of domestic-made goods, and then we forgot these values. The importance of the domestic made goods has been comprehended again. Our ministers and bureaucrats support domestic production and industry of ours, we are indebted to them.”

Stressing textile could be defined as “Source of Employment or Labor Depot”, Konuko-

glu continued, “The case has been perceived in Turkey. Cotton and textile will be proclaimed as the strategic product. In terms of Sanko, textile has not lost its importance at all. In addition to the textile taking place in different sectors and growing in these sectors due to reduction of textile turnover in the total turnover of the holding a wrong perception has constituted, as if Sanko withdraws from the textile sector.

Sanko operates in 14 sectors but the share of the textile’s turnover in the total turnover of the holding is 45 percent. In recent three years we invested machinery equipment

CONSIDERABLE INTEREST IN THE NATIONAL PARTICIPATION IN BATIMAT FAIR, PARIS İMMİB brought Turkish Construction Materials sector and the largest fair of the Europe together

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eing one of the locomotive sectors for the growth of Turkey, the construction sector now assumes an important mission in the creation of employment in order to help grow national economy further and solve the problem of unemployment. Having begun to overcome the effects of the economic crisis in 2010, the construction sector has recovered further in 2011. The sector achieved an export volume of US$ 17.536 Billions in the past year, and of US$ 13.682 Billions in the period of January to August of 2011. It is estimated that the export volume would exceed US$ 20 Billions until the yearend.

The interest shown by foreigners in Turkish construction sector, e.g. a sector which has been continuing to grow and develop in a fast manner, has also increased. The five associations meeting under the umbrella of the İMMİB, which are well aware of these developments and the existing potential, have enabled Turkish companies to participate in the largest construction fair of the Europe.

Turkish companies were allowed to participate, for the second time at the national level, in Batımat 2011 International Construction and Building Fair, which was held in Paris, the capital of Paris, on November 07 to 12, 2011. A total of 18 Turkish companies attended the fair this year through an organization of Istanbul Chemicals and Chemical Products Exporters’ As-

sociation (IKMIB), Istanbul Ferrous and Non-Ferrous Metals Exporters’ Association (IDDMIB), Istanbul Electrical – Electronics, Machinery and Information Products Exporters’ Association (IEMBIB), Istanbul Steel Exporters’ Association (CIB) and Istanbul Mineral Exporters’ Association (IMIB).

Mr. Murat Akyüz the Chairman of the Board of Directors of Istanbul Chemicals and Chemical Products Exporters’ Association (IKMIB) emphasized the fact that the construction sector has a rather dynamic structure in Turkey, and stated that the sector has acquired new opportunities in the European market due to its participation in the Batımat Fair. Mr. Akyüz said that the sector would try to achieve an export volume of US$ 30 Billions in the year to come in consideration the present export volume of the sector.

Being one of the leading fairs of the word, and the largest fair of Europe, Batımat has been held in Paris biyearly since 1959. The Fair receives demand especially from European and North African countries, the Fair draws attention with the number of participant companies and visitors.

This year, Batımat Fair has hosted approximately 380.000 visitors and 2.382 participant companies.

A total of 30 Turkish companies attended Batımat 2011, which has a great importance for Turkish construction sector that represents a focus of interest with its growth

potential. Eighteen of these companies have gained an opportunity to attend the fair event through the national organization of five association of exporters of the İMMİB. This year, Batımat 2011 received 44% of its participants from fifty five countries other than France, and 16% of its visitors from 171 different countries, and offered many opportunities to Turkish construction companies such as international promotion, new business contacts, and etc.

Mr. Murat Akyüz, Chairman of İKMİB

worth $350 million in the textile sector. Textile businessmen should be patient. Textile may let the enterprise to loss for 3 years, but it can compensate the said loss in 3 months.

Those who are patient win. In trade, investments, there is no place to sensibility; action should be made by logically.

In the scope of his program in Denizli, Sanko Holding Chairman Abdulkadir Konukoglu visited Abdulkadir Demir, Denizli Governor; Denizli Chamber of Industry Deputy Chairman Mujdat Kececi and Exporter Unions Deputy Chairman Oguzhan Katranci.

Made in Turkey Economic Newspaper, December 2011

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Arinc: Turkey a source of inspiration in its region S

peaking at the 4th Democracy Forum held in the city of Bali, Indonesia, Turkey’s deputy prime minister said there are some try to show Turkey as a model for the countries in the region. But it can be said that Turkey is a source of inspiration rather than a model. Heads of state and governments from 70 countries attended to the 4th Democracy Forum, in addition to ministers and

deputy ministers. Turkey is represented by Bulent Arinc, the deputy prime minister. Welcoming by the host country Indonesian President Susilo Bambang Yudhoyong, Arinc delivered a speech at the forum at the leaders session. “As Turkey we support the legitimate demands of the people in the region and we also try to help to the leaders of the related countries in the issues what they

should do,” Arinc said.

Arinc continued to say, “In this context, there are some people who introduce Turkey as a role model. It is normal to follow closely Turkey’s long democratic experience and gains on this way. But it is expected that the countries which have been in different institutional culture and social structure to advance on their own route.

So it can be said that

Turkey is a source of inspiration rather than as a role model. The crucial thing is the change that must continue in way to match expectations of the people and in a peaceful way. The agenda must not be sabotaged by extremely radical fundamentalists. In this direction I would like to remind that all the international society has a commitment. In fact, this historical process which

Turkish Transport Minister Binali Yildirim

Turkish Deputy Prime Minister Bulent Arinç

has launched in the region can be misused by some sections. If ethnic or sectarian frictions appear in the flourishing stage of democracy, the effects of this would be felt across the world from Asia to Europe.

Otherwise, as long as

the steps are taken in the direction towards institutionalization of democratic values and settling of good governance bases, we will reap the fruits of these ranging from economy to security, culture to social life in the global measure.”

S&P does not foresee breakup of eurozone

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he European single currency could break up and Europe itself unrav-

els if political leaders fail to tackle the region’s debt crisis, Jean Leonetti, France’s Minister for

European affairs warned Leonetti also criticised credit rating agencies, who have warned eurozone nations of downgrades if they fail to deal with the crisis.

“They annoy me a bit....

It is not for the credit agencies to be involved in politics that is for the people and the people’s representatives” he said.

Ratings agency Standard&Poor’s is not working on the basis that the single currency area will break up, the agency’s chief economist for Europe Jean-Michel Six

said.

The agency had threatened to downgrade the debt of 15 of the 17 eurozone countries, but Six told a press conference that a breakup of the eurozone was not at all a scenario that S&P was considering now.

Six noted that the agency had produced two outlooks for Europe next year and both were based on the continuation of the eurozone.

One of these hypotheses estimated that output would rally after a technical recession, while

the other foresaw deeper recession.

The agency considered there was a 60-percent likelihood of the first scenario being realised and 40 percent for the second.

Six said that how the situation developed would depend heavily on the outcome of the European Union summit.

While S&P did not have a specific view of what the outcome should be, it was clear that the eurozone had to function much more efficiently and in a more unified

way, he added.

What was lacking, he said, was a common and mutual supporting approach between states: only solidarity between members would open the way for the European Central Bank to intervene fully.

But the ECB faced a dilemma, he observed. It was aware of the threat of recession in the eurozone, but could not play a resolute role on capital markets until it had concrete assurances from member states that they would enact the mea

Some discount to be implemented in maritime services

T

urkey’s Transport, Maritime and Communication Minister Binali Yildirim announced 50 percent discount to be implemented for some maritime services in new year. So worth $10 support would be provided for the sector in 2012.

Yildirim stated that some demand has appeared to recover in the prices of lighting, hawser, guideline and tug.

“In this scope, being valid from 1 January 2012, 50 percent discount has been decided in these services,” Minister Yildirm said.

In his speech at the 2nd Winter Cruiser Forum, he said that nearly 19 million people are hosted in the cruiser sector across the world and adding that the turnover of the sector is some $90 billion.

Yildirim noted that the development of the sector had become more visible at the beginning of the 2000s; the most important effect in this subject was the discount of some prices at the ports.

Yildirim added that thanks to the discount, the development in the cruiser sector has followed a drastic and sustainable way.

In 2003, while predominantly 887 ships visited the two destinations at the Turkish ports, in 2011 the number reached by 1,366 ships at 11 ports, a stabile increase was observed in the number of passenger, Yildirim said in order to spread cruiser tourism, it is necessary to spread the season across the year.

Minister Yildirim also said that the meeting entitled “Yesterday, Today, Tomorrow of Cruiser Tourism” which was held by the Izmir Chamber of Commerce on 14 October 2011, all the firms which deal with cruiser tourism came together, Yildirim continued, “The decisions of 14 October has put forward some developments, new initiatives must be made in many issues. The representatives of tourism sector has stressed to act together in order to develop cruiser sector in Turkey and an idea has been adopted to set up a cruiser union. At the meeting another subject came to the agenda to make discount in some marine services. This means $10 million support would be provided for the sector.”

All World Arabia 500+Turkey Awards were presented to their winners

TOBB President Rifat Hisarciklioglu

S

peaking at the All World Arabia 500+Turkey awards ceremony, a part of the 2nd Global Entrepreneurship Summit, the Union of Chambers and Commodity Exchanges of Turkey (TOBB) President M. Rifat Hisarciklioglu said, “We are living in a difficult geography.

As the most important entrepreneurial power of our region, we understand you well only, too.

Because we know how difficult it is to be an en-

trepreneur in this geography.”

The fastest growing companies of Arabian countries, Pakistan and Turkey according to sales of 2008-2010 were announced with the AllWorld Arabia 500+Turkey awards ceremony.

“Most of us have walked the same roads,” said TOBB President Hisarciklioglu, political strife, coups, foreign involvements have taken their toll.

Stating that the transformation has been pain-

ful, Hisarciklioglu said, “It continues to be so.

But we have succeeded.

We have brought our economy and society to a certain point. We have generated a populous entrepreneurial middle class. I’m sure you will achieve this as well.”

Rise of the rest Stating that when we observe the last five centuries, we have lived through two structural power shifts, said the TOBB President, “The first power shift brought about the rise of Europe.

This process started in the 15th century and sped up dramatically near the end of the 18th century. The primary characteristics of this era were science, technology, commerce, capitalism, agriculture and the industrial revolution.

The second shift in the balance of power started at the end of the 19th century. During this period we see the rise of the USA. USA became the power directing global economy, politics, science and culture during this process.

Now, we are experiencing the third shift in power. The famous author Fareed Zakaria called this shift ‘the rise of the rest.’ This shift affects our geography the most.”

All economies require transformation Touching on the process dubbed the Arabian Spring, Hisarciklioglu said, “We have expectations of the leaders of the Middle East: That they do not attempt to make water flow uphill. Let the transformation happen.

Ensure the transition to democracy.

However, this is not limited to a political transformation.

It is evident that there is serious need for a significant economic restructuring.

Recently, we’ve all seen that oil and natural gas do not make the

people prosper. They do not spread the wealth to society; they do not render stability sustainable. Therefore, from the richest to the poorest, all economies need a transformation.

Stating that this transformation will be brought about by entrepreneurs, TOBB President Hisarciklioglu said, “Because you are the ones producing new ideas. You change old habits. We must move in unison while doing this. We must form the new vista of our geography as if we were making putting together a jigsaw puzzle.”

AllWorld Network, accomplishing 3 missions at once Stating that the All World Network accomplishes 3 mission at once while it is finding successful, fast growing entrepreneurs, Hisarciklioglu said, “The first these, making entrepreneurs visible. AllWorld’s Visibility Economics concept is very important as success grows when shared.

Making success visible will, without a doubt, bring about more success.

Secondly, AllWorld makes its entrepreneurs into role models. They

make a story out of your successes. They celebrate your successes.

They make entrepreneurship out to be something to celebrate. Thus, new entrepreneurs are encouraged. Entrepreneurship becomes an enviable profession.

Lastly, AllWorld makes a strong bond between entrepreneurs. We are all a part of this family. We will move on to bigger successes together. You will build partnerships.

You will set sail for new enterprises.”

AllWorld Arabia 500+Turkey After TOBB President Hisarciklioglu’s speech, the representatives of the companies who qualified were called to the stage.

AllWorld Arabia 500+Turkey encompasses Arab countries, Pakistan and Turkey’s fastest growing companies.

The 2011 awards were presented according to the sales figures of 20082010.

Is Bank Executive Board Chairman Ersin Ozince

“Credits should not be prevented for production” s Bank Executive Board Chairman Ersin Ozince said that the biggest risk in front of Turkey’s economy a possible production risk and employment restriction as well as current account deficit. He said that it is necessary to pay attention to the credits, which support production, would not be prevented.

Speaking at a meeting titled “Speaking Coins, Coins Collection” was held regading the promotion of Pasabahce Stores, Ozince reminded that in 2012, the growth in the economy could constrict due to the economic crisis abroad.

Ozince noted that this situation could reflect to the banking sector, adding that so a reduction in profits could happen.

He said that although the unwanted development, the Turkish banking sector still is in the admiring position.

Biggest risk is production and employment Recalling that Turkish banking sector still is very small, Ozince said that they would like Turkish banking sector to grow regarding there is possibility. Recording that they would like the growth by the credits directed towards production, this would also provide sustainability, and he said, “The permanent bank and capital like us realize that it is not possible to achieve something without employment. Banking sector’s growth is impossible without production and employment.

Ozince said that today the biggest problem of the banking sector it is not possible to identify the owners of capital of banks across the world.

I