Mede In Turkey May 2012 by İstmag Magazin Grubu

A record year in mergers and acquisitions

“Crisis becomes a real stress test” urkey’s Development Minister Cevdet Yilmaz spoke at a summit entitled, “Global Financial Reforms: Changing Regulatory Model and Islamic Finance” held by the Central Bank and the Islamic Financial Board. In his speech, Yilmaz told about the global economic crisis and its results. Highlighting the policies and activities that had been developed against the crisis could be gathered under the two groups, one of them controlling the crisis, removing its effects and exerting efforts to defeat the crisis. “As for the more important one of that is to analysis the reasons of the crisis well, introducing structural precautions. It cannot be said that we have done sufficiently. The crisis has not been constituted by itself. Absolutely, there are some reasons and sources of it. If we do not face with these, do not analysis very well, today we can be able to overcome the effects of the crisis in the some extent, but we all could meet with the similar troubles Page 5 tomorrow.

TUSIAD Chairwoman Umit Boyner

ISSN 1300-2260

Turkish Development Minister Cevdet Yilmaz

he Chair of Turkish Industrialists and Businessmen Association (TUSIAD) Umit Boyner said that last year the transactions of mergers and acquisitions broke record worth $15 billion with the total number of 241 agreements. Page 7

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“Inflation to drop to single digit”

urkey’s Central Bank Governor Erdem Basci said, “We expect a remarkable plunge in inflation rate in May, inflation will retreat to the single digit.” Until now, Turkey’s politic framework has been continuing on course of the wished way, time to time, of course, some deviations can happen… This is available in the nature of the work, you can confront with shocks, from time to time. The important thing here when you face with the shocks, can you be able to react with the true policy to the shocks? Can you take precaution in time?” Page 5

May 2012 Year: 11 No: 116

Investment incentives to reduce current account deficit T

urkey’s new incentive system names almost the entire Southeast and East underdeveloped, offering eases for investors. The plan also aims to fight current account deficit. Turkish Prime Minister Recep Tayyip Erdoğan announced a new incentive scheme to prop up local and foreign investments, while supporting underdeveloped regions. The updated scheme is aimed at reducing dependency on imported intermediate goods and the country’s current account deficit, as well as at contributing to the structural reformation of the country’s industrial sector and balancing out the differences between regions, he said. A new feature of the incentive scheme

is that provinces, now ranked in terms of social-economic development, will fall under six groups in terms of priority of incentives. The provinces in the sixth group, mostly consisting of poorer eastern and southeastern provinces, will receive the most investment support. The government will pay the employee insurance costs on the minimum wage for 10 years for investments made in sixthcategory provinces. The government is hereby adding a pillar of “promoting strategic investments” to its current incentive scheme based on three pillars, Erdoğan said in Ankara while announcing the program with cabinet members. Strategic investments involving education,

UN: New paradigm to tackle global economic crisis nited Nations senior officials stressed the importance of establishing a new paradigm for growth that ensures social inclusiveness, job opportunities for all, and more accountability from the financial sector to tackle the ongoing global economic crisis. “It is time to recognize that human capital and natural capital are every bit as important as financial capital,” said Secretary-General Ban Ki-moon in his remarks to the General Assembly’s high-level thematic debate on The State of the World Economy and Finance and its Impact on Development, taking place at UN Headquarters in New York. Page 5

UN SecretaryGeneral Ban Ki-moon

Newly elected MUSIAD chairman unveils targets ewly elected Nail Olpak, Head of Independent Industrialists and Businessmen Association (MUSIAD), unveiled the new targets for the new term. Holding a press conference Olpak announced the new objectives in the new term and introduced the new members of executive board of the association. Thanking to the previous chairmen and members of boards of MUSIAD, Olpak recorded they would also

Only 18 months remain to 150-year dream

here is only 18 months in front of us in order to accomplish 150year dream, Binali Yildirim, Minister of Transport, Maritime and Communication said. “We will celebrate double festival on 29 October 2013, the 90th anniversary of Republic of Turkey and inauguration of Marmaray. Page 8

take the services ahead and heighten the bar to the higher level. Page 6

“Turkey will march towards its great goals with entrepreneurs” elebrating its 60th anniversary, the Union of Chambers and Commodity Exchanges of Turkey (TOBB) conducted its 67th General Assembly with the attendances of Prime Minister Recep Tayyip Erdoğan and CHP President Kemal Kılıçdaroğlu, hosted by TOBB President M. Rifat Hisarcıklıoğlu. During his speech at the General Assembly, TOBB President M. Rifat Hisarcıklıoğlu said, “Turkey is great with you. Turkey’s economy is strong with you. Turkey will march towards its great goals with you.” Page 5

transportation, mining and some tourist destinations will receive incentives at the level granted to the fifth province group, regardless of the province the strategic investment is made in. “With this new system we primarily hope to increase production and investments in the area of intermediary goods and products, which currently have a high degree of import dependency, so as to cut the current account deficit,” Erdoğan said. The new scheme went into effect for all investments agreed after Jan. 1 this year. “With the new system we will initiate value added tax exceptions, customs tax exemptions, tax reductions, and reduce the insurance premiums employers pay,”

Erdoğan said. The new measures are Economy Minister Zafer Caglayan also aimed at attracting foreign investors. One significant incentive reform allows investors to apply tax reduction support to all the revenues obtained during the period of the supported investment. Page 6

Made in Turkey Economic Newspaper, May 2012

Letter From The Editor Mehmet Soztutan Editor-in-Chief

Tourism Minister, “We target to gain $50 billion next 10 years”

What has changed? “I believe that Turkey can achieve a growth rate of nearly 5 percent in 2012 following a robust 9.2 percent growth rate in 2010 and 8.5 percent last year,” Zafer Çağlayan told the 10th edition of the Istanbul Forum, an international platform designed to bring together Turkish and international business leaders, civil servants, technocrats, as well as global cultural and politics figures. What has changed? Nothing has changed. Competition appears from all corners of the globe. Customers demand more. To respond, manufacturers are reducing costs and increasing responsiveness through outsourcing, sourcing globally and implementing demand-driven strategies such as pull-based inventory management. Supply chain management no longer involves arm’s length transactions with traditional, serially managed supply chains. Each of these responses produces a new set of problems. Demand-driven strategies require faster response systems that strain existing demand-management processes. Outsourced manufacturing and inventory management strain manufacturers’ ability to stay on top of constantly moving inventory positions. Supply sourcing in low-cost nations offers cost advantages but causes a large, global supply base that becomes unwieldy to manage.These game-changing trends have shifted the supply chain focus from inside the enterprise to outside, across a network of suppliers and service providers. Leading companies have evolved from traditional, serial supply chain management toward dynamic, agile, multicompany supply network management. The true innovators respond quickly to ongoing disruptions and fundamentally change the way they manage inventory and supply. Best-in-class companies have realized they need to optimize the operation of their supply chains in these times of mediocre forecast accuracy and high uncertainty. The challenge facing these innovators is that their traditional processes and enterprise systems have not kept up with current market trends. Today’s supply chains are longer, global, outsourced and more complex than ever before. This forces companies to extend their processes beyond their four walls to critical partners — and beyond.

urkish Culture & Tourism Minister Ertugrul Gunay Turkish tourism earned more than $25 billion from 30 million tourists; objective for the next ten years is to raise tourism revenue per annum by $50 billion Turkish Culture & Tourism Minister Ertugrul Gunay said that Turkey earned more than $25 billion worth of tourism income from 30 million tourists it hosted in 2011. We hope to earn $50 billion by hosting 50 million tourists within the next ten years, Gunay announced. Turkey is the 6th country in the world in terms of the number of tourists that were hosted in 2011, Gunay noted. He added

that Turkey prepared a roadmap to take place among top five countries. Minister Gunay recorded that more than 10 million of 30 million tourists visiting Turkey chose to pass their vacation in southern Antalya province which showed that Turkey was considered a country of sea, sand and sun tourism. “This is not a bad thing, but tourism should be diversified in order to characterize sustainable. Turkey has historical and archeological beauties and rich natural resources and architectural potential,” Gunay stressed. Gunay also noted that Turkey earned 256 million Turkish lira from the tourists visiting the museums in the country in 2011.

Turkish industrialists to open representatives abroad

urkish Association of Automotive Parts & Component Manufacturers (TAYSAD) set to open representatives of automotive supplier industry in India, China and the USA. TAYSAD Chairman Mehmet Dudaroglu said while the global car producers were preparing a new production platform, they were also thinking Turkish firms to take place nearby them and urge to invest in their countries. He noted that they had passed beyond purchasing brands abroad. Dudaroglu said that successes in Turkey such as high in quality production, just in time delivery have been known across the world, adding that Turkish automotive supplier industry had taken crucial steps on the way to be a global brand. He said that they had planned to open representative in India, China and the USA, in addition to the representative which was opened before in Germany. Recording that besides being a global

brand he also highlighted importance of the domestic market, he said that they were also working to make Turkish firms to be sought after brands across the world. TAYSAD Chairman Dudaroglu stressed the importance of R & D centers and he added automotive industry would raise the current 37 centers to 50 at the end of this year, as for in 2013 the number to be 75 units. “The 70 percent of Turkish automotive industry’s exports are made to the European Union countries; due to the eurozone crisis the short and middle term strategies should be restructured. In this context, alternative markets have come into an important way. In this scope, we have begun to sell goods to China,” Dudaroglu noted. He also said that they had increased their shares either in the home or abroad, adding that they had also raised their defense industry rate from 20 percentages to 51 percent in recent times.

TUBITAK raises its donation up to 85 percent

he Scientific and Technological Research Council of Turkey (TUBITAK) has decided to grant up to 85 percent to the Turkish industrial companies’ R & D costs by arranging an incentive system. TUBITAK, which will call for firstly to energy sector that causes the biggest sum of the current account deficit, will ask for the Turkish companies to research focusing on solar energy, energy stocking, energy efficiency in residences and industrial facilities and coal technologies. Fatih Yulek, Chairman of Technology and Innovation Support Programs (TEYDEP) of TUBITAK, announced, “They have started a new support program entitled, “Support Program for Preferential Areas’ Research Technology Development and Innovation Projects Program”. Yulek said that they would meet the costs which are spent for R & D studies by the Turkish companies up to

85 percent, adding that they would aim to produce projects in the areas that Turkey needs. Yulek recorded that they would support the R & D projects in the issues such as primarily in the areas of targeted and needed, producing a new product which has trackable results, improving and progressing of a current product, developing new production technologies. Indicating that Turkey’s R & D and innovation capacity is powerful and the areas which require to acceleration have been determined in the official document of Nation- a l Science,

Technology and Innovation Strategy for 2011-2016, which was decided at the Science and Technology High Committee by the head of Prime Minister Recep Tayyip Erdogan, Yulek said they would call for the Turkish

companies and would support the establishments which will work in the privileged areas. Stating the privileged areas as energy, food, automotive, informatics technologies,

machinery manufacturing technologies, Yulek said that they would ask for the Turkish companies to give priority to the energy sector. “Energy area is shown one of the most important reasons of Turkey’s current account deficit. For this reason, firstly we will ask for research in the areas of solar energy, energy stocking, energy efficiency in residences and industrial area and coal technologies,” Yulek noted. He recorded that they would continue to restrict counseling which is taken from abroad, the upper limit is 20 pct; but this upper limit would not be carried out for the projects which are not possible in Turkey such as special tests. TEYDEB supported the Turkish companies worth TL278 million last year; TL162 million of the sum was given to SMEs and TL115 million to the big sized establishments. TUBITAK aims to raise the sum more this year. Kemal Yamankaradeniz, Chairman of the Board of Destek Patent, said that there was need to support the R & D studies especially in the energy sector which is one of the most important items of the current account deficit.

Letters to the Editor turkey@ihlas.net.tr Greed and recklessness September 2008 global crisis launched an extraordinary chain of events: General Motors, the world’s largest company, went bust. Washington Mutual became the world’s largest bank failure. Lehman Brothers became the world’s largest bankruptcy ever – The damage quickly spread around the world, shattering global confidence in the fundamental structures of the international economy. Greed and recklessness by the titans of Wall Street triggers the largest financial crash since the Great Depression. It’s left to the then US Treasury Secretary Hank Paulson, himself a former Wall Street banker, to try and avert further disaster.

Technical change.. It’s the issue of the day because everyone says it is. It’s obviously what gets people out into the streets. It’s so obviously something that’s happening just as we look at what we consume, how we travel, how we use the telephones. [It] is the basic issue of the day, but many of the phenomena that people are concerned about, that they ascribe to globalization, are related [more] to technical change -say the skill, the wage differentials that reward highly skilled people more than they used to be, relative to lowskilled. N. Mark/ Boston

H. Rift/ Frankfurt

Collapse of laissez Dependencia theory faire economics Well, there was a kind of dependencia theory, which was very much left wing in its origins. There were some European intellectuals who fed into it, and the idea was that these poor, developing countries were so dependent on world marketplace, they were just being exploited by the center. [Raul] Prebisch talked about the center versus the periphery, which is another version of dependencia. But I think that there may be some vague notion, an element of truth behind this idea in the sense that markets are impersonal. I use the analogy of an elephant going through the jungle, and you’re a poor mouse. Now the elephant is not going to go after you. He is not against you; he couldn’t care less about you.

G.Kron/ Frankfurt

As the international financial crisis points to the collapse of laissez faire economics and discredits market fundamentalism, Africa and the global South should break free from failed neoliberal policies and the institutions that have promoted them and define their own paths to development, writes Demba Moussa Dembele, director of the Forum for African Alternatives. The crisis provides fundamental lessons, says Dembele, the first being that markets do not have self-correcting mechanisms, and that market failures are not less costly than state failures. Secondly, “the collapse of the neoliberal dogma is a major blow to the international financial institutions. The IMF and the World Bank are supporting fiscal stimulus – expansionary fiscal policies – in the United States, Europe and Asia.” N.Renger/Prag

Made in Turkey Economic Newspaper, May 2012

Deposit interest yields maximum profit in April 2012

urkish Statistic Institute (TurkStat) released the figures of monthly profit. In April 2012, Deposit Interest, one of the financial investment tools, yielded the highest monthly real profit with the rate of 0.41% according to Producer Price Index. According to Producer Price Index, investors of Gold (ingot), Euro, Stock Exchange and US Dollar lost by -1.76%, -0.55%, -0.38% and -0.21%. According to Consumer Price Index, investors of Gold (ingot), Euro, Stock Exchange, US Dollar and Deposit Interest

In April 2012, maximum monthly real profit rate was gained in Deposit Interest according to Producer Price Index lost by -3.15%, -1.96%, -1.79%, -1.63% and -1.01%. Maximum real profit was gained by Stock Exchange investors quarterly and bi-annually and by Gold (ingot) investors annually according to PPI and CPI. Investors of Stock Exchange made the highest real profit with the rates of 13.40% according to PPI and 11.01% according to CPI, quarterly. The real profit rate of Stock

Exchange was 3.06% according to PPI and 0.06% according to CPI bi-annually. In the same period, Investors of Euro made the highest loss with the rates of -8.52% and -11.18% according to PPI and CPI respectively. In April 2012, financial investment tools were listed in descending order with respect to their yearly real profit rates as follows: Gold (ingot), US

posit Interest, Euro and Stock Exchange lost by -3.61%, -3.84% and -19.53% respectively.

Dollar, Deposit Interest, Euro and Stock Exchange. The real profit rates of Gold (ingot) and US Dollar were 21.40% and 9.08% respectively, however in the same period Deposit Interest, Euro and Stock Exchange lost by -0.48%, -0.72% and -16.93% respectively, according to PPI. The real profit rates of Gold (ingot) and US Dollar were 17.59% and 5.66% respectively, however according to CPI in the same period De-

OECD launches skills strategy to boost jobs and growth

oosting investment in education, skills and training now is the key to strong, sustainable and shared growth in the future, according to the OECD Skills Strategy. This major new initiative aims to help governments build economic resilience, boost employment and reinforce social cohesion. The Skills Strategy, to be discussed by Ministers at the OECD Ministerial Meeting in Paris late May, acknowledges that with public finances under pressure, governments have tough budgetary decisions to make. But spending on education and skills is an investment for the future and must be a priority, says the report. OECD Secretary-General Angel Gurría, said: “Skills have become the global currency of 21st Century economies. They transform lives and drive economies. Governments must invest more

effectively in the education and skills that people will need in tomorrow’s workplace. They need to deploy their talent pool more strategically so that these investments translate into better jobs and better lives. Achieving this is everyone’s business, and employers and unions have a central role to play.” Today, one in five young people leave school in OECD countries without completing upper secondary education. And in many countries, a third of adults lack the minimum core skills needed to engage in further learning and get a good job. The social and economic costs are huge: OECD analysis shows that people with poor skills are at much greater risk of unemployment, poverty and reliance on social benefits. The Strategy tailors recommendations to particular needs in individual countries. In the short-

run, the focus in most countries should be on helping youth acquire the skills required by the labour market. The economic crisis has hit the young and low-skilled particularly hard. The youth joblessness rate is in double digit rates in most OECD countries and two to three times that of adults. Despite today’s high unemployment rate, a lack of skilled workers means many vacancies remain unfilled. Even at the height of the crisis, more than 40% of employers in Australia, Japan, Mexico and The United States said they couldn’t find people with the right skills. The OECD Skills Strategy provides a framework for countries to analyse their strengths and weaknesses and recommends ways they can develop the skills of their young people and adults. Among its recommendations are that countries should:

improve the quality of learning outcomes by putting the premium on skills-oriented learning instead of qualifications-focused education upfront; involve employers and trade unions more closely in designing and delivering education and training programmes; encourage adults to invest in further learning, especially in small and medium-sized firms. A levy on firms to increase their contribution to staff training that targets particular sectors or regions should be considered; facilitate the internal and crossborder mobility of skilled workers; calibrate tax and benefit systems to make work pay; help employers make more effective use of their employee’s skills; help local economies to move up the value-added chain, foster entrepreneurship and stimulate

the creation of more high-skilled jobs. To help countries get a clearer picture of their workforce’s skills and see how they compare to other countries, the OECD is carrying out the most comprehensive international survey of adult skills ever conducted. The first OECD Survey of Adult Skills will test the skills of more than five thousand people aged 16 to 65 in each of the 26 countries taking part. The first results will be published in October 2013 in an OECD Skills Outlook. The OECD has also developed an interactive online portal, http://skills.oecd.org, with support from The Pearson Foundation. It features more than 20 interactive data visualizations on developing, supplying and using skills, together with data and analysis on 40 countries and links to OECD work on skills.

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Made in Turkey Economic Newspaper, January 2012 Made in Turkey Economic Newspaper,

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May 2012

“Turbulent Year”

Can ripple effect be in Eurozone

T W

he Group of Eight meeting was effect of that crisis on nations like Spain the yearDavid 2011 behind scanning to evaluate the helde left at Camp retreat toin are andcontinuously Italy that are struggling with low gether with the bad and good conditions. According to the developWashington to find solution for growth and big debts. events. of the the world foremost onefear of the feared regions to is the top issues withOne which has ments, Investors anymost refusal by Athens events was political uprising that called seemingly eurozone that would be faced been confronted in recent years. The impose deep spending cuts agreed under Arab spring hasinclude been economic experienced in with the economic in 2012. foremost issues instaa bailout deal couldslowdown result in the country some thesafety Middle and North January, nine ofeurozone nations bility, of food andEastern lack of security in In quitting the bloc 17 countries that had use African countries. their credit rating downgraded by ratsome countries. the euro. Even though significant hasa been Standardin& Greece, Poor’s (S&P), Following the meeting distance G8 issued dec- ings Afteragency the elections if the taken on the way towards a democratic causing the euro to fall to its lowest level laration detailing their commitment to elected parties would achieve to form order in some of the countries in the re- against the dollar since 2010. France and ensuring adequate energy and dealing a government and then they would not gion, unfortunately the process of the Austria lost their flawless AAA ratings with climate change; providing food se- want to carry out austerity plan of the Arab spring is continuing in some of the and are now rated AA+. As for Portugal’s curity and nutrition in Africa; promot- EU, in that case Greece may exit the countries. and Cyprus’s ratings were cut to “junk.” ing democratic transitions in the Middle eurozone. This would trigger other exits Especially in Syria, uprising which start- The sovereign debt crisis in Europe, East; supporting political transition in the took eurozone Theseindeveloped in and March 2011 still continues. The which a turn region. for the worse August in Syria. ments can also deepen the current ecoclashes between the government’s forces 2011, coincides with slowing growth in Majority of the troubles are centering in nomic crisis and activate a bigger one in and opposition group maintain its vio- several major developing countries (BraEurope and the Middle East. Sovereign zil, Europe thetoworld. lence. Indiaand and, a lesser extent, Russia, debt crisis has been occupying Eurozone Another top issueTurkey), was Iran; theyreflectreiterIn the region another country is Iraq South Africa and mainly for 1 to 2 years. With regard to this viated “grave concern” over Iran’s nuclear which stages predominantly blasts of ing policy tightening begun in late 2010 tal issue, headstens of state and government program thetoneed to ensure adbombs killing of people, in addition and earlyand 2011 combat risinganinflahave been lost their posts equate oil supply. to many disabled every tionary pressures from one by one in Europe. The Tough sanctions on Iran day. overly-fast growth, accountry whichproblem is mostly are slated effect The biggest of cording to to thetake statement staying the agenda and June andBank. a full emIraq andon other countries of the28, World emerging to the forefront bargo Iranianforesees oil by in the region is being adSo theofBank because ofbyeconomic inthe European Union is ministered the similar that the world economy stabilitycharacterizes is Greece. lack The set2012 for July regime in is 1. set to grow of democratic and to unfair by just 2.5 percent, country is going the There is concern about election. weighed by ripple second election due to whether down a sufficient Peace, stabileffects the and 2008 oil fipoliticalcomfort partiesand could not supply from of oil ity are basic principles of nancial crisis. achieve to form the govproducts from other economic The developing counernment, development. because of any countries will make up Ibrahim Kupeli Ibrahim Kupeli Wars, strife and political tries seem lesser risky of them had not possessed for a lack of Iranian oil. ikupeli@img.com.tr ikupeli@img.com.tr uprising push the related than the developed counenough seat in previous one. A “peaceful resolution countries along with the entries. Growth in the deThe result of election, which will be and a political transition is preferable” tire world into the economic slowdown. veloping countries for 2012 is forecast repeated in June, will also determine in Syria, this is the wish of the G8. But Now theofstruggles, which are being expercent, in theSyria Bank involves has also lowered destiny Greece whether to remain in at the5.4situation tougher erted by the monetary presiinsti- its growth forecast for high-income couneurozone or international exit. EU Commission actions. tutions, aim to stabilize global economy. in 2012 to 1.4ispercent and -0.3 dent Jose Manuel Barosso in his speech tries Another top issue Afghanistan thatperhas Following 2008-09 economic crisis, after cent for the high-income Euro Area. at the G8 meeting said they had only A been suffered for long years. A timetable some two-year break, the economic crisis In the worsening condition in the global plan to keep Greece in the region with to withdraw all of the alliance’s combat is expected to show its devastating impact economy lets eyes turn to Asia which is stipulation implementing austerity pro- troops from Afghanistan would be 2014. in the year 2012, too. Some says this time, seen the robust economy in the world. gram of the EU. There was agreement among the leaders it would be worse than previous one. The International Monetary Fund (IMF) G8 leaders also highlighted their wish to let North Korea face further isolation The World Bank predicts 2012 would be is looking to work ever more closely with for a strong and cohesive eurozone, if it continues its pursuit of a nuclear proa ‘turbulent year’. Asia to lessen the impact of the global global stability andpolitical recovery; the leaders gram.on the region and to help promote In addition to the turbulent es- crisis insisted their point of view for remaining In conclusion, when growth the Greek governpecially in the MENA region, there are sounder and stronger globally, acGreece in the eurozone while respecting ment will not accept to carry out ausalso expectations turbulent in the global cording to David Lipton, IMF First Depits commitments. anxiety is would that if uty terity plan, then ups and downs can be economy. UnstableThe developments Managing Director. the country would departure from the experienced in economies, less affect the entire world economy less or As for the situation in termsbesides of Turkey, eurozone, it would “result in widespread growths, increase in joblessness. At the more. Because of the interconnected according to the officials, Turkey’s econdefault on private sector as well as soversame time sanction on Iranian crude oil global economy, for this reason no coun- omy would not be affected much from eign euro-denominated obligations. would cause price-hikes. This developtry and no region would be immune from the global crisis as much as Eurozone and Another concern due to economic tur- other ment can also lead to instigate economic that catastrophe. developed countries; a 4-5 percent moileconomics in Greece and has rating the potential ripple development indicators in is thepredicted negativeinside. The organizations 2012.

Humor Humor

THOUGHT OF THE THOUGHT MONTH OF THE A consultant MONTHis someone

who takes the watch off your wrist and tells you experts! the time.

Always listen to They’ll tell what can’t be done and THINGS A CONSULTANT SHOULDN’T 2. Worried that he who dies with the most freSAY TO A CLIENT miles wins why. Then do it! quent-flyer 3. Use so many “buzz words” in conversa-

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Made in Turkey Economic Newspaper, May 2012

“Inflation to drop to single digit” Turkey’s Central Bank Governor Erdem Basci, “We expect a noteworthy drop in inflation in May 2012”

Turkish Central Bank Governor Erdem Basci

Continued From Page 1 hen looked at in terms of potential production, in fact, we think that there is no development to

let inflation to happen much more and lead to output-gap to happen in the reverse side. We foresee a noteworthy drop in inflation in May, Basci said. He also noted the growth which stems from the factors of productivity has not made up a problem in the aspect of inflation, it is a sound growth. “As long as we take care of some of the risks, we always must avoid from extremes that are observed in many countries, Basci said. Pointing out that today the financial stability has become a need, Basci said “You cannot operate

central banking by keeping only inflation low, providing price stability. You must absolutely look after financial stability.” Marking current account deficit, Basci said in that issue the balancing precautions have begun to reap the fruits, when looked at reality in terms of exports and imports, since the beginning of 2011 balancing has started and come to a remarkable point. Basci highlighted that TL would be one of the least unstable monetary units, adding that TL is not over-valued. He also noted that Central Bank

would not permit price stability to enter into dangerous situation and they would make the necessary things just in time for the price stability. “Continue to trust in TL, TL will maintain its good performance, as for growth will navigate steady during 2012,” Basci said. Central Bank Governor Basci also noted one of the issues they had discussed at the widened chairmen committee of Turkish Exporters’ Assembly (TIM) was rediscount credits, adding that the necessary support would continue to the exporters.

UN: New paradigm needed to tackle global economic crisis

orldwide, more than 400 million new jobs will be needed over the next decade,” UN SecretaryGeneral Ban Ki-moon said Continued From Page 1 “Let us face the facts: the old model is broken. We need to generate a new one – a new model for dynamic growth,” Mr. Ban, one of the meeting’s co-chairs, said. “A new paradigm based on stable economies and decent jobs and opportunities for all.” Noting that since the financial economic crisis began, millions of people have lost jobs and income, Mr. Ban stressed that governments must not only address this job loss but also actively seek to generate new income sources over the next years. “Worldwide, more than 400 million new jobs will be needed over the next decade. That means that

UN Secretary-General Ban Ki-moon

policy-makers must get serious, now, about generating decent employment,” he said. Mr. Ban emphasized the key role that the upcoming UN Conference on Sustainable Development (Rio+20) can play in brining countries together to come up with a coordinated approach to set up goals for the future regarding the economy. “Growth that is equitable, growth that can be sustained within plan-

etary boundaries, growth that will benefit current and future generations – this is the focus of the UN Conference on Sustainable Development next month in Rio de Janeiro,” he said. He added that, “At Rio, we need to agree on a process to establish Sustainable Development Goals that build on the Millennium Development Goals (MDGs) after 2015 – sustainable development goals that will lay the foundation for dynamic economic growth, respect for the planet and social equity.” There are a total of eight MDGs, ranging from halving extreme poverty to halting the spread of HIV/AIDS and providing universal primary education, all by the target date of 2015. They form a blueprint agreed to by all the world’s countries and all the world’s leading development in-

stitutions and have galvanized unprecedented efforts to meet the needs of the world’s poorest. In his remarks to the meeting, the President of the General Assembly, Nassir Abdulaziz Al-Nasser, the debate’s other co-chair, said that a coordinated approach would need to give developing countries a greater role in decision-making and give priority to helping the most vulnerable sectors of society, who are also the ones that have been hit the hardest by the economic crisis. “Our overarching priority must be to implement an effective and globally coordinated policy that serves to place the world economy on the path of sustained growth and development,” Mr. Al-Nasser said. “Today’s conference provides a timely opportunity to address these issues in an inclusive, candid and responsible manner.”

“Turkey will march towards its great goals with entrepreneurs”

Continued From Page 1 isa rcı k l ıoğlu, stating that the progress made by TOBB in 60 years is an indication of the progress made by the private sector in 60 years, depicted the progress made and position of Turkey’s economy which has been achieved. While entrepreneurs achieve success in economy TOBB has increased its service capacity in the last 10 years, stated Hisarcıklıoğlu and went on, “We have developed and supported our real sector with the projects we’ve implemented.” “There are young entrepreneurs who leap into business life with courage as their only capital. There are women entrepreneurs who both support their families and rise in the business life. There are our brothers who come from beyond our borders, from lands which speak Turkish. Contributing to the development of their cities, of becoming brands, idea producing Chamber and Exchange Presidents; our community which invests in the future of our country, which exports and provides employment; I heartily salute you all. You honor us with your

presence. This General Assembly holds special importance for us. We are all enjoying the honor and joy of our 60th Anniversary. We’ve taken a long way in 60 years, rendered great services to our private sector. This adventure of duty started in the 50’s, Turkey’s years of transformation and development. Along with the first free elections in politics, we transitioned into democracy. A transition from bureaucracy dominated agricultural society to an urban and entrepreneurial society was set as the goal. In this process, similar to other developed countries of the world, an institution which would represent and develop the private sector in our country was needed. And so it was that in the year 1952, TOBB was established. I respectfully celebrate the memory of the late Adnan Menderes and his colleagues who enabled the founding of TOBB. Turkey’s development picked up speed with the entry of the private sector to the stage. The seeds planted in 1950 grew rapidly, becoming a giant sycamore spanning the whole region,” Hisarciklioglu recorded.

TOBB’s 60th year “TOBB’s 60th anniversary is the indication of the progress made by our private sector in 60 years. 60 years ago, we had 1,500 members; today, we have 1,420,000 members. 60 years ago, the goodsproduction per person was 200 Dollars; today, it has exceeded 10,000 Dollars. 60 years, automobile production was at 1,000; today, it stands at 1,000,000. The number of foreign tourists has increased from 32,000 to 32,000,000. Our exports, totaling 260 million Dollars have surpassed 135 billion Dollars. Our industrial exports which used to be 1% of our total export have become 94% of our exports. We were a country which received foreign aid 60 years ago. Today, we are a country which rushes to the aid of those who need it in every region of the world, which aids poorer nations. In the G-20, we are among the greatest of the world. Who is the largest industrial producer and exporter between Italy and China? We are. How, under which circumstances,

did we achieve these? We did it, without even being in the first 50 countries of the ease of business index in the world competitiveness index.” Integrated with the world TOBB provides a voice integrated with the world for the interests of our private sector in all business organizations operating in global markets. TOBB is an active and effective part of all lobby activities for all national matters pertaining to our country. TOBB brings our businessmen to the world at large, produces ideas, implements projects, helps those in need, looks after the charges of our ancestors and carries our flag to every part of the world. TOBB builds the border gates of Turkey, invests in education, fights unemployment, facilitates the acquisition of finances of SMEs, bring SME consultancy to Anatolia and handles every problem of all sectors. Thanks to our chambers taking on responsibility, our Organized Industry Zones have progressed and spread industry throughout Anatolia. There were only 12 OIZs in Turkey in the 80’s. Today, close to 150 OIZs are brimming with investors.

Turkish Development Minister Cevdet Yilmaz

“Crisis becomes a real stress test” Development Minister Yilmaz, “Developing countries have shown better reflex than the developed countries, they also displayed a better performance in terms of growth and employment in the crisis process” Continued From Page1 onfronting and getting some results from this crisis is very crucial both for the world and countries,” Minister Yilmaz said. He noted that a result gained from the crisis such as enforcing regulatory framework. “There is a unity for general understanding to make up a regulatory framework both in countries and in the global level. There is a general accepted understanding to let financial markets tighten thoroughly without killing, without preventing growth, but on the other hand there is also need for regulatory financial markets,” Yilmaz recorded. A lot of countries have passed through the test Development Minister Yilmaz said that developing countries had shown better reflex than the developed countries, they also displayed a better performance in terms of growth and employment in that process. He stressed Turkey also became one of those countries which go ahead. “In fact, many countries have passed through a test during the crisis. This was a test in one respect. In banking sector, there is stress test. It is observed how some banks to show what kind of behave, the risk is measured. Actually, this financial crisis has become a real stress test not theoretical. In this point, some of them were failure, as for some countries they showed that they have been in resilience. Turkey was also a country that passed through this test very successfully, Yilmaz recorded.

Made in Turkey Economic Newspaper, May 2012

Investment incentives to balance regional income, reduce current account gap Continued From Page 1 For instance, an investor could deduct a certain percentage of the cost of an investment from revenues obtained in other businesses. Erdoğan said the program placed special importance on strategic investments in the defense, aviation and aerospace industries, as well as on the biochemical industry, which he said would receive standard incentives at the rates designated for the fifth least-developed region in the country. The rankings of the provinces are based on data from the Turkish Statistical Institute (TÜİK). Erdoğan said the incentive categories provinces fall into may change according to fresh data

Incentive scheme launched by the Government envisages sustainable growth from TÜİK. Touching on the ambitiousness of the government’s growth plan, he said, “God willing, we aim to be one of the largest national economies, with $2 trillion of income by the 100th anniversary of the foundation of our republic [in 2023].” The government’s new incentive program offers large opportunities for direct investments, according to Economy Minister Zafer Çağlayan, The Turkish Industry and Business Association backs the scheme in the name of sustainability. Economy Minister Zafer

Turkish Economy Minister Zafer Caglayan

Çağlayan reveals the details of the government’s new incentives at a meeting in Istanbul. The minister says support for investments in Turkey’s poorest regions may even reach 100 percent. Economy Minister Zafer Çağlayan said April 6 that now was the time for businesses to take advantage of growing support for more investment, as he introduced the details of a new comprehensive incentive scheme. Investments will be supported to varying degrees based on four categories: region, scale of investment, strategic investment and general incentive applications, Çağlayan said. According to the scheme, provinces fall under six categories in terms social and economic development. “Let’s say an investment project of 5 million liras and with 40 employees receives a regional incentive. The amount of the support will amount to 1.3 million liras if the investment is made in the first region, 1.7 million liras in the second region, 2.6 million liras in the third region, 3 million in the fourth region and 3.7 million in the fifth region. If the investment is made in the sixth region, the support exceeds the nominal investment cost reaching 5.2 million liras,” he said. The government was applying positive discrimination to the sixth region, he said, also adding that the social security contribution of businesses investing in the region would be paid by the government for 10 years. The sixth region generally comprises of the poorest provinces in east and southeast Turkey. While the minister said that one of needs of the country was to manage a transition from labor intensive technology to information intensive technology, the government was aiming to attract labor intensive industries to the sixth region. Industrialists have welcomed the government’s new incentive system. The Turkish Industry and

Business Association (TÜSİAD) said the new incentive scheme was “a quite positive step in terms of supporting economies of scales.” “The new system brings a strategic approach to eliminate structural problems that prevent the Turkish economy from entering a sustainable growth path,” the mouthpiece of the largest Turkish businesses said. “The new incentive package will lift our country to the Super League (of developed countries),” said Ekrem Demirtaş, the head of İzmir Chamber of Commerce, adding that it was in line with Turkey’s high economic targets. “Althouh İzmir does not have [attractive] regional incentives [in the scheme], there is a great deal of support to technological and strategic investments,” he said. The Central Bank Governor Erdem Başçı has also welcomed the incentive system announced , which puts complementary financial policies into action through payroll and corporate tax cuts, diversifying region by region.

“We welcome the latest package of measures and think that it sets monetary policy at ease and reinforces it,” the Anatolia news agency quoted Erdem Başçı as saying at a conference on policy responses to commodity price movements on April 7 The package does so in two ways, according to Başçı. Firstly, it eases the output gap and inflationary pressures, increasing the potential production level as a supply-side expansionary package. Secondly, it takes some of the burden away from monetary policy. “This is a package of measures precisely to maintain profit

industries in an attempt to the decrease Turkey’s current account deficit. “We especially support the incentives for laborintensive industries, as the unemployment problem in the whole world is deepening fast,” he said. Comprehensive support on interest rates is one of the main factors propping up private sector investment, as high funding costs are one of the biggest problems faced by firms. Organized industry zones will turn each into a Silicon Valley, with incentives carved out for these zones and investment deductions, Hisarcıklıoğlu also said. It is expected that the coverage rate of the needs of the Turkish Armed Forces will rise to 6070 percent, from the current rate of 52 percent, Defense Industry Undersecretary Bilal Aktaş said without specifying a period. “There are clustering activities in Eskişehir, Istanbul, Ankara [in the defense industry] … Incentives will support such investments,” he said, according to the Anatolia. Meanwhile, the Economy Ministry has founded an “Incentive Information Center” to promote the new system, Minister Zafer Çağlayan said in a written statement. Çağlayan said that foreign investors may send in questions to

margins at a stable level. On the one hand the costs of firms rise due to energy prices, but on the other hand firms receive compensatory support via tax [cuts],” he said, adding that fluctuations in commodity prices, and particularly energy imports, still pose risks for the economy. Dependency on energy imports has made the current accounts balance more sensitive to commodity price fluctuations, he said. Temporary tax cuts on labor and capital, rather than sales, as part of the incentive system are therefore considered, “as we could face a supplyside or a cost-side shock.” The announced system is the most comprehensive incentive system to date, the Union of Chamber and Commodity Exchanges (TOBB) head Rifat Hisarcıklıoğlu said. According to Hisarcıklıoğlu, there five very important factors: “It is very important to divide provinces into six regions. Thus, imbalances between provinces can be minimized. The [national] economy administration broke a new ground by enabling provinces to change regions. It is a very important step to grant large incentives to the strategic sectors regardless of places of investments.” He added that traditional industries had not been left out, despite the incentives@economy.gov.tr, support for high technology or call +90 312 444 43 63.

Newly elected MUSIAD chairman unveils targets

Continued From Page 1 his year the first target will be the education and improvement of human resources and development of entrepreneurship. We replaced previous existing “Education Commission” with “Education and Culture Commission”. As the business world, we attach importance to let vocational education enter

into force in the most suitable age-interval to bring up for the strategic sectors. In line with this, our commission will let practical educations enter into force with the protocols to be signed with three universities in addition to “MUSIAD Academy” program,” Olpak said. The second basic target is the need of R & D activities, innovation and tech-

nology development. In order to be carried out the projects which have been put forward in our report, “R & D and Innovation for Global Competition”, “Science and Technology Commission” will primarily continue to “Technology Panels”, Olpak added. The third basic objective is to contribute to “Sectorial Growth Strategies” of which frame will be outlined with the sector committees in the guide of the sectors’ committee

Committee” to determine sectorial strategy of the Turkish agriculture, letting rural development reach the global standards and they would also prepare vital headlines such as “Agriculture and Food Assembly”, “Halal Food” and “Turkish Seed”. As for the fourth issue would be development of SMEs and to get competitive power. MUSIAD will also open 15 new branches across Turkey in this period. Olpak said they would

commission. MUSIAD Chairman noted that ‘Machinery Sector Committee’ would work in line with the export targets of 2023 of the machinery sector especially in the production of “Domestic Made Aircraft and Rail Systems”. Olpak also said that they had constituted an “Agriculture and Food Sector

hold MUSIAD fair and International Business Forum simultaneously on 11-14 October 2012; Prime Minister Recep Tayyip Erdogan to open the fair that will be held on an area of 45 thousand sq meters, 5 thousand businessmen will be invited from abroad to the fair to meet with the ten thousands businessmen.

Made in Turkey Economic Newspaper, May 2012

A record year Number of motor vehicles attains 16,243,277 in Turkey in mergers and acquisitions I n February 2012, number of 52,463 motor vehicles registered to the traffic, cars ranked atop with the ratio 54.1 % (28,359) and it was followed by small trucks with the ratio 19.7 % (10,361), motorcycles with the ratio 12.6 % (6,588) and trucks with the ratio 5 % (2,642). Tractors, small buses, buses, and special purpose vehicles constituted 8.6 % (4,513) ratio of the registered motor vehicles in February 2012. In proportion to the

previous month, the number of registered motor vehicles decreased with a ratio 74.4 %. Cars, small buses, buses, small trucks, trucks, motorcycles, special purpose vehicles and tractors decreased with a ratio 62.5 %, 53.5 %, 34.8 %, 66.2 %, 48.7 %, 18.7 %, 32 %, 11.2 % respectively. According to the interim data in February 2012, the number of registered to the traffic motor vehicles also decreased with a ratio of 22 % in comparison to

the same month of the previous year. Cars, small buses, small trucks, trucks, tractors decreased with a ratio 19.6 %, 0.4 %, 32.5 %, 10.2 %, 58.6 % respectively. Buses, motorcycles and special purpose vehicles increased with a ratio 5.2 %, 6.8 % and 41.1 %. While 24,665 motor vehicles were withdrawn, 178,414 motor vehicles were registered in JanuaryFebruary of 2012. Hence the total number of motor vehicles

in traffic increased by 153,749 units. Considering the end of February, the total number of motor vehicles in Turkey b ecame 16,243,277. In the total number motor vehicles’ distribution ratio of cars, small trucks, motorcycles, tractors, trucks, small buses, buses and special purpose vehicles became 50.5%, 16.3 %, 15.6 %, 9.1 %, 4.5 %, 2.4 %, 1.4 % and 0.2 % respectively. Among 369,344 vehicles hand over in February 2012, cars

are in the first place with 250,668 units with the ratio of 67.9 % and it was followed by small trucks with the ratio 17.3 % and 63,884 units, tractors with the ratio 3.5 % and 14,560 units, motorcycles with the ratio 3.5 % and 13,022 units. Small buses, buses, trucks and special purpose vehicles constituted the 7.4 % ratio of the hand over motor vehicles with 27,210 units in February 2012. Among 8,211,044 registered cars, 40.3 % of

them are using LPG, 36.8 % of them are using petrol and 22.2 % of them are using diesel fuel. Ratio of the passenger cars that the fuel type is unknown is 0.7 %. The distribution of the trademarks of the cars registered (28,359) in February 2012 is; Renault 15.6 %, Volkswagen 13.1 %, Tofas-Fiat 7.8 %, Hyundai % 7.5 %, Ford 6.8 %, Opel 6.5 %, Dacia 5.1 %, Honda 4.4 %, Toyota 4.3 %, Chevrolet 3.9 % and the other trademarks 24.9 %.

Turkey’s Eximbank to start discount application for exporters

urkey’s Eximbank will start discount application to support the textile and ready-to-wear exporters. According to the announcement from Turkey’s Ready-To-Wear Association (TGSD), thanks to planned implementation the insurance prime rates would be lowered up to 60 percent for the firms that fulfill some conditions. Eximbak General Manager Hayrettin Kaplan, the Deputy General Managers Mesut Gursoy, Alaaddin

Metin and Cenan Aykut briefed about activities of the bank visiting TGSD. Eximbank Management

listened and shared the expectations of the sector about loan and insurance of the exporting sectors

including clothing sector from TGSD Chairman Cem Negrin, the Deputies Hadi Karasu, Cevdet Karahasanoglu, Sami Kario, Seref Fayat and member of the board Mehmet Karacali. Eximbank General Manager Kaplan stated that they could discount up to 60 percent in the insurance prime rates for the firms which fulfill the certain conditions. Kaplan also said they let the exporters to gain time by lowering insuring period from 2-3 months to

8 days. He noted that they had gone to the emerging provinces in exports one by one to determine the problems in place to solve them. Kaplan noted, “All sectors will feel the new change and transformation. We will reduce bureaucracy. With the resources that we have formed via the central bank we will fund our needs quicker. We will respond the demands first being credit and insurance in a short time. Eximbank will continue to solve the problems.”

TUSIAD Chairwoman Umit Boyner, “We broke a record in mergers and acquisitions in 2011”

Continued From Page1 he foreign investors constituted 74 percent of this business volume with 138 unit agreements, according to the statement of Boyner. In her speech a seminar entitled, “Merger and Acquisition in Turkey: What kind of cooperation must be made to be competitive?” Boyner marked, “In order to be able to sustain the economic and social wellbeing Turkey must grow 5-6 percent per annum,” adding that Turkey achieved growth performance over 18 percent in the past two years. Boyner pointed out that in such a situation when global economic conditions worsen Turkish economic growth attracted attention of the investors in the region and the world. Boyner also noted in order to get rid of the crisis one of growing vehicles to which the companies have been directed is merger and acquisition. “Paralleling to these developments, we also see merger and acquisition are increasing either financial purpose or acquisition purpose. Last year the transactions of merger and acquisition broke a record with $15 billion with 241 agreements. Turkish investors’ flexibility and being able to adapt easily to do business with the different business cultures, let Turkish companies used investment possibilities better in the region in line with their growth strategies,” Boyner recorded. Boyner reminded that Turkish companies had also been overseas merger activities, despite in the global economic crisis. In this scope, between 2007-2011 Turkish companies had made merger and acquisition worth $7,5 billion with 68 companies. Diversifying brand and products,

purchasing brand and obtaining competition advantage by lowering cost were the factors to urge merger and acquisition activities, Boyner said. She added that health and e-trade sectors have been the most demanded sectors by the foreigners, as well as food/beverage, telecommunication, logistic, financial services and manufacturing sectors. Boyner noted “Our many companies have enriched their growing strategies by adding global brands into their structures. About the new incentive packet, Boyner said, “New incentive mechanism has identified some companies as strategic and has emerged clustering, thanks to this it aims to be a more productive and more competitive.

TUSIAD Chairwoman Umit Boyner

Made in Turkey Economic Newspaper, May 2012

Only 18 months remain to 150-year dream Binali Yildirim, Minister of Transport, Maritime and Communication, “We are not only building Marmaray project to connect two sides of Istanbul, we are also building two sides of the world” Continued From Page 1 he gigantic dream Marmaray will be opened,” Yildirim said. “In order to achieve Marmaray 150 years was awaited. Our love to Marmaray project began 150 years ago in 1860 when Sultan Abdulaziz had engineer Preault

prepare the project. The sunken tunnel had been designed to build between the districts of Sarayburnu and Uskudar for pedestrians not cars, at that time. But, that time’s technology was not capable to realize the project,” Minister Yildirim said. He reminded that they had

taken the project from the dusty shelves by the directive of Prime Minister Recep Tayyip Erdogan and had been envisaged according to the necessities of the today. Minister Yildirim noted the route would not be for pedestrians, it would be railway. “We named the project Marmaray and became one

of the most esteemed projects of the world and we made its groundbreaking ceremony on 9 May 2004. Regarding archeological works during excavation we have been forced to extend the project up to late 2013. At the end the final stage has come in the tube tunnel part. There is only 18 months to

achieve 150-year dream of ours. We will celebrate double feast on 29th October 2013, the 90th anniversary of the Republic of Turkey and opening of Marmaray project. It is not necessary to forget this we are not only building Marmaray project to connect two sides of Istanbul, we are also building the two sides of the world. Because, Marmaray is one leg of Rail Silkroad Project, we are also completing

the other legs of Marmaray Baku-Tibilisi-Kars Railway Project, Istanbul-Ankara High Speed Project and Ankara-Sivas Speed Train Projects gradually. In this meaning the Marmaray project is only our ministry’s project and our government, it is our nation project, it is also the project of the countries range from Beijing to London. We are approaching step by step to the end.”

OYDER holds its fourth general meeting urkish Automotive Authorized Sellers’ Association (OYDER) General Meeting was held. The opening speech was delivered by Vedat Incirlioglu, Deputy Chairman of OYDER appraising the year 2011. He indicated that OYDER has provided 25 percent of the employment with 1,200 unit plazas in the automotive sector in Turkey. Incirlioglu also marked that Turkish automotive production had grown 8.5 percent while it was 4.7 percent in the world. Highlighting their expectations in 2012, such as borrowing system, the Arab Spring and strife in the Mideast, in addition to the economic crisis in Greece, Incirlioglu predicted the economic indicators for 2012 like this; Growth 2.3 percent, inflation: 5 pct, domestic car market: 800-850 thousand units; car production: 1,1 million units, Exports: worth $21 billion. Incirlioglu touched the top issues of OYDER, such as risk and profit distribution, strengthening domestic market, letting taxes of vehicles reduce, the age limit for junk vehicles to be reduced up to 15 years old and above and regulations in sales of second hand vehicles.

In his speech, Orhan Sabuncu, Chairman of Automotive Exporters’ Association (OIB), they foresaw the exports of the sector to reach by $20 billion regarding having lost of the foreign currency advantage over the last year and according to the surveys 5 percent constriction in the European Union market. He also noted that automotive exports had lost 1 percent in the first four months of 2012 over the same period last year, in contrast the sector yielded surplus worth $1,078 billion in this period. Mustafa Bayraktar, Chairman of Automotive Distributors’’ Association (ODD), in his speech, they had begun studies for the updating of automotive industry roadmap which was prepared by ODD three years ago. He said that they would add some headlines such as old vehicle park, greenhouse gases, fuel saving and traffic accidents. As for OYDER Executive Board Chairman Sukru Ilisal said, “As the association, we feel honored hosting our sector’s shareholders first time. The structure which constitutes a whole will allow our sector to come a better place both in home and abroad.”

Industrial Production Index increases 2.4 percent

urkish Statistic Institute (TurkStat) released Industrial Production Index for March 2012. The announcement stated that industrial production boosted 2.4 percent compared to same month in previous year. According to the statement of TurkStat, the sub sectors level of industry, Mining and Quarrying Index increased by 4.3%, Manufacturing Index increased by 1.6

% and Electricity, Gas, Steam and Air Conditioning Supply Index increased by 7.9% in March 2012 compared to the same month of the previous year. Calendar adjusted production index in March 2012 increased by 2.5% compared to the same month of previous year and seasonal and calendar adjusted industrial production index increased by 0.7% compared to previous month.

“80 percent of Investment Promotion Agencies’ efforts falling short”

ven as countries compete to attract investments, 80 percent of national investment promotion agencies are failing to respond to investor inquiries in the key sectors of agribusiness and tourism, according to the World Bank Group’s Global Investment Promotion Best Practices 2012 report. The report assessing 189 economies’ responsiveness to investors finds that investment promotion agencies are less responsive to direct investor inquiries than they were three years ago. In the areas of inquiry-handling and website performance over the past two years, two regions showed improvement—the Middle East and North Africa, and Latin America and the Caribbean. “In difficult times, governments may be tempted to cut funding for investment promotion. However, this can cost them opportunities to secure investments and jobs,” said Pierre Guislain, Director of the Bank Group’s Investment Climate Department. “Skilled investment promotion agencies can give economies a competitive advantage by helping investors choose a suitable location and set up operations that generate jobs and promote growth.” The report shows that limited resources need not be an obstacle to effectiveness. For example, Cyprus Investment Promotion Agency, one of the world’s top-performing agencies, has only 10 staff members spread across a range of functions. It also finds investment promotion websites to be a bright spot, with 62 percent of agencies implementing best practices. Nicaragua’s investment promotion agency PRONicaragua emerged as the world’s top investment facilitator, becoming the first developing country to do so. PRONicaragua achieved best-practice standards in website performance and response to investor inquiries. “We believe that the level of service an Investment Promotion Agency offers influences an investor’s first impression of a country’s investment climate, as it demonstrates that Government’s attitude and commitment towards investors. It is with that vision, through commitment to offering high quality service and insuring that each and every investor get the information they need, we try to build a strong sense of comfort about doing business in our country and promote economic development.” said Javier Chamorro, CEO of PRONicaragua. The report was produced by the Investment Climate Department of the World Bank Group (which includes IFC, MIGA, and the World Bank) and sponsored by ProInvest, a European Commission partnership program for the countries of Africa, the Caribbean, and the Pacific, and by the government of Spain.

Industrial Turnover Index increases 13.6% in March 2012

urkey’s Statistical Institute (TurkStat) released the monthly turnover index, according to the statement, in March 2012, industrial turnover index increased 13.6 compared with same month in previous year and increased 13.2% compared with previous month. In the sub sectors level of industry, mining and quarrying index increased 21.7%, manufacturing index increased by 13.3% in March 2012 compared with same month of the previous year. According to Main Industrial Groupings (MIGs) Classification, the highest increase in March 2012 over the same month of the previous year realized in Durable Consumer Goods. In sub-sectors of manufacturing industry, the highest increase realized in other manufacturing. When the change rates of industrial turnover index in March 2012 com-

pared with March of 2011 inspected, the highest increase was in other manufacturing by 35.0%, it is followed by manufacturing of machinery and equipment by 34.1%. Industrial New Orders Index increased by 16.0% in March 2012. According to European Regulations, Industrial New Orders Index based on the year 2005=100, according to NACE Rev.2. increased by 16.0% in March 2012 compared with the same month in previous year and increased by 13.7% compared with the previous month. According to Main Industrial Groupings (MIGs) Classification, the highest increase in March 2012 over the same month of the previous year realized in Durable Consumer Goods. The highest increase in annual change rate of Industrial New Orders Index in March 2012 over the same month of the previous year re-

alized in Manufacture of fabricated metal products (except machinery and equipment). When the change rates of Industrial New Orders Index in March 2012 compared with March 2011 inspected, the highest increase was in Manufacture of fabricated metal products (except machinery and equipment) by 39.7%, it is followed by Manufacture of basic pharmaceutical products and pharmaceutical preparations by 37.6%.

Steel exports exceed $5 billion Turkey’s steel exports achieved worth $5 billion, increasing 3.9 percent in the first four months of 2012 n the first four months of 2012, Turkish steel products have been exported mostly to the Mideast countries. According to the announcement from the Turkey’s Steel Exporters’ Association, Turkish steel sector has maintained its export increase despite negative developments across the world markets in the first months of 2012. The exports of steel expanded 5.2

percent reached by 6,6 million tons in terms of amount, as for the value the exports raised by $5,3 billion with 3.9 percent rise in the period of Jan.-April 2012. In April 2012, the sector’s exports accomplished worth $1,33 billion. As for based on the region, the Mideast ranked atop in Turkey’s steel exports with 2,6 million tons in this period. It followed by the European Union with 765 thousand tons and

then North Africa with 686 thousand tons. In this period, the highest export increase was enjoyed in Western Africa, European countries apart from the EU countries and Latin America respectively. As for based on the product kinds, steel bar became 3.08 million tons, ingot 760 thousand tons, steel pipe 610 thousand tons, profile 586 thousand tons and hot flat ranked the most exported products with 415 tons.

Made in Turkey Economic Newspaper, May 2012

Egg Turkey leads cherry Eggexports exportsgogototorecord record production in the world E T urkey leads the cherry production with 438 thousand tons in the world; competes with the USA in exports. Prof. Dr. Ali Kudan, lecturer in the Horticultural Department of Agriculture Faculty of Cukurova University, has announced that Turkey possessed an important potential in cherry production. He stated that various studies have been managed in order to review the current potential, to increase production and growth. In this scope they had set up “Turkish National Cherry Study Group” in 2007 cooperating with the Turkey’s Ministry of Food, Agriculture and S t o c k breeding. Prof. Kuden recorded that since the establishment of study-group to date

they had been meeting regularly. Prof. Dr. Kuden said that the group had over 100 members including universities, bodies of the ministry and private sector in cherry issue, adding that they would discuss the developments and problems in cherry cultivation. “In 1997, having established by the support of the ministry, Turkey’s National Cherry Working Group’s activities began to reap the fruits. While in 1997, cherry production was 215 thousand tons, this figure raised by 418 thousand tons in 2010. In 2011, the production raised 438 thousand tons with 4.9 percent rise. With these figures, Tu r k e y ranks a t o p in the cherry production. As for the exports Turkey competes with the USA. In 2007, cherry exports were 18

thousand tons, in 2010, the figure was 65 thousand tons and 2011 the exports became

state-run establishment, CAYKUR purchased 635 thousand tons; the private sector pu rcha se d 578 thousand tons fresh tea. Despite tea planting areas are the same with 2002; significant development was enjoyed in the tea productivity.

Hazelnut exports achieve income worth $1.3 billion

Being 1,033 kilo-

grams per decare in 2002, the productivity rate surged by 1,623 kg in 2011. In line with the targets, CAYKUR will be rais-

ing its processing capacity some 700 tons in 2012, according to the statement. CAYKUR has also achieved crucial progresses in organic tea cultivation in recent years. As of the end of 2011, organic tea cultivation land reached by 2 thousand 531 decares, the number of producer to 10 thousand.

Turkey’s food exports boost in 2011 urkey’s Federation for Food and Beverage Industry Associations (TGDF) has released an inventory entitled, “Food and Beverage Industry 2011”. The deputy Chairman of the Federation Rint Akyüz said, “In 2010, decreasing by $123 million the international investment entrance for food and beverage industry, last year became $684 million rising 5,3 fold.” He also noted that the sector would export not only to near region, but also to the entire world. Holding a press conference at Swiss Hotel to share the 6th inventory of Food and Beverage sector with the public opinion, Akyuz said that at the beginning of this year the global population has reached by 7 billion, this population would exceed 9 billion in 2050. Akyuz also said that the world food prices increased 8 percent in the Q1, according to the last report of the World Bank, as for the analysis of the Food and Agriculture Organization of the United Nation, oil and sugar prices would raise, milk and cereals’ prices would persist their increasing trend. According to the forecasts, food prices would continue to rise in a stable way in the next 10 years, Akyuz said.

sector exceeded the threshold of $1 billion and physiological limit of $1,5 billion worth of exports in March 2012. We would reach by the threshold of $3 billion worth of exports which is the target for 2023 very earlier. The Poultry Promotion Group has been a driving force in the poultry exports increase via joining the fairs in Russia, Libya, Jordan, Iran, Iraq, Vietnam, Germany, Saudi Arabia in last two years,” he said. Hamdi Ekiz, Deputy Chairman of the Board of Turkey’s Aquaculture and Stockbreeding Sector Exporters’ Union, said they had a 5-6 year past in the egg exports. “Turkish eggs find customers $2-3 dollars higher for every box than the competitors regarding high in quality. In spite of this, it is not possible to overcome with the countries such as South America and Brazil because of subsidy. Ukraine, South America and Brazil have solved the subsidy problem, they lower costs,” Ekiz said. In the first quarter of 2012, the most exports accomplished to Iraq. This was followed by Azerbaijan, Israel and Syria. Turkish egg sector shipped eggs to 17 countries in the Q1 of 2012.

45 thousand due to world market conditions,” Kuden said.

Tea cultivation increases 68 percent urkey’s tea cultivation surges 68 percent according to the statement from the Turkey’s Ministry of Food, Agriculture and Stockbreeding, the dried tea production increased 68 percent to 227 thousand tons which were 135 thousand tons in 2002. As for the fresh tea production saw 50 percent rising from 791 thousand tons to 1 million 200 thousand tons. In 2011, the

gg exports achieved 65 percent increase worth $91 million 583 thousand in the first quarter of 2012 over the same period previous year. In the first three months of 2012, Turkey’s egg producers accomplished $91 million 583 thousand worth of exports, increasing 65 percent compare with the same period previous year. The Aegean Exporters’ Union (EIB) posted that the year 2011 completed with $285 million worth of exports increasing 83 percent. Turkish egg exporters have continued growth in the first quarter of 2012, too. Sinan Kiziltan, Chairman of Turkey’s Aquaculture and Stockbreeding Sector Exporters’ Union, said egg sector had added a new coil onto their success in the egg sector exports in the first Q1, adding that they would be able to accomplish the exports worth $500 million this year. Kiziltan recorded that aquaculture and poultry sector were the locomotive sector in the Turkish Aquaculture and Stockbreeding Sector. “Aquaculture Promotion Group and Poultry Promotion Group have constituted a good synergy, in March 2011 the

Akyuz also recorded that when the factors such as globalization, climate change, global warming, political decisions of countries, global economic crisis are piled one after the other agriculture

high with $134,6 billion, 18.2 percent rise over previous year. Our food and beverage industry broke record with the exports worth $8,9 billion, increasing 32.5 percent over the year 2010. As

and food sector undertakes a determinative role every time. He also noted that Turkey’s agricultural produce diversity is in the level to let many countries envy. “In this area, we rank first in Europe and 7th in the world. In recent years, our economic development is shown by finger in the world. While many economies could not get rid of the global economic crisis in recent years, we as the country grew 9.2 percent in 2012 and 8.5 percent in 2011. On the base of growth there are mostly production and exports’ boost. Last year exports broke record-

for our imports, became $4,9 billion. Thereby, the sector yielded surplus in the rate of 181 percent in the exports-imports balance,” Akyuz said. Akyuz also noted that they had made up very crucial leg of Turkish economy with the business volume reaches by $255 billion, employment for 350 thousand people and $9 billion worth of exports. He recorded the sector had gained a great acceleration in the recent ten years. “There is no country to which we do not sell” Akyuz said Turkey has become an attraction hub with its advantageous position, having harmo-

nized its food regulation with the European Union, as well as its modern food industry and featuring an emerging economy. Akyuz continued, “There is no country that we do not sell goods. We export to the entire world. Over $600 billion worth of foodstuff is traded in the huge market that includes Africa, Middle East, Russia and Central Asia.” Akyuz highlighted that reduction of VAT to 1 percent in some foodstuffs has eased both consumers and also lowered unregistered rate some, but it was not enough reduction should be introduced in all foodstuffs. Over a question about transgenic foods, he said their harm to the industry was $5 billion. The first ten countries in Turkish food exports are Iraq, Germany, Britain, Netherlands, USA, Libya, France, Italy, Saudi Arabia and Belgium respectively. As for imports, the countries were Ukraine, Malaysia, Germany, Poland, USA, Indonesia, Netherlands, France, Russia Federation and Spain. The share of food and beverage in overall exports of Turkey was 6.6 pct in 2000, 5.9 pct in 2010 and 6.6 pct in 2011. The sector’s exports increased 4.8 times from $1,8 billion to $8,9 billion between 2000-2011.

urkey’s hazelnut exporters achieved $1,3 billion worth of exports in the eight months of 2011-2012 season. Turkish exporters shipped 164 thousand 23 tons hazelnuts, in response gained income worth $1,3 million in the eight-month period of the 2011-2012 season. According to the data from Black sea Hazelnuts Exporters Union, average quintal of hazelnut was traded by $817 in the first 8 months of the export season. Exporting hazelnuts to nearly 90 countries, Turkey’s hazelnut exporters gained $1 billion 314 million in return of selling 164 thou-

sand 23 tons hazelnuts. The 121 thousand 720 tons of the exports accomplished to the European Union countries, 17 thousand 957 tons to the countries out of EU countries, 14 thousand 866 tons to overseas countries and 9 thousand 479 tons to other countries. Last year in the same period, hazelnut exports were 212 thousand 194 tons, worth $1 billion 299 million income was gained. Being the biggest hazelnut producer in the world, Turkey also features the biggest hazelnut exporting country. The share of the EU countries in our total exports

is about 80-85%. Turkey exports hazelnuts to about 90 countries.

Made in Turkey Economic Newspaper, May 2012

Image Diplomacy’s Turkey Feature as published in the Daily Telegraph on 17 May 2011 Please find below the text on Turk Barter as prepared and published by Image Diplomacy in the Turkey feature. As requested it is accompanied by a complimentary translation done especially for you. We hope that you like it and look forward to your feedback. Please note that as I am not Turkish it is obviously not possible for me to verify the accuracy of the translation so I hope that there are no discrepancies in the Turkish text for your understanding.

Mehmet Sirri Simsek, Chairman of Turk Barter

urk Barter – Trading Up in the World Given the so-called “new world order” that exists today and the credit crunch most countries - not least the UK - find themselves in, it is perhaps not surprising that the concept of barter is being greeted with renewed enthusiasm. Turk Barter, the brainchild of Chairman, Mehmet Sirri Simsek, is certainly an evolving success story in its own right and this has enabled it to tackle some of the challenges that Turkey has faced since the company’s inception in 1994. Turk Barter is now not only the leading barter company in Turkey but is also a key regional player, having pioneered the Eurasian Barter Association. With regards to the recent economic downturn, Simsek believes only those countries that are seeking to adopt al-

ternative methods of tackling these crises, rather than relying on conventional means, are winning. He rails against the stimulus packages - essentially amounting to the printing of money - and the manipulation of interest rates, maintaining that, “The entire world needs a real economy. In order for that to be achieved different approaches should be adopted and alternative methods should be employed.” Given that it is considered to be the first form of commerce, the question now is what can barter in modern trade offer? Simsek affirms that, “Everybody can define barter in their own way. However, the reason why people have so much difficulty in grasping the concept of barter is because they refuse to dismiss the meaning it had in ancient times. They are still hung up on its conservative definition. Nowadays we introduce the barter

concept to people as an alternative form of commerce and not as an exchange of goods.” By this Simsek is alluding to the sophistication of a system that is not dissimilar to the concept of a virtual payment. He continues, “Now if you consider credit cards and how they do not physically involve the use of banknotes, well take the barter system within the same parameters – there is no use of cash in a barter system.” He fervently believes that more companies and countries need to better understand and appreciate the merits of the barter system in order to survive even the worst economic situations. Certainly, in times of surplus inventory, limited liquidity and restricted or inhibited access to credit, the concept of barter offers an impressive solution to the problems that many enterprises face. From leasing heavy machinery needed for a construction project, to the purchase of furniture to outfit new business premises – the system provides an alternative to the many obstacles businesses encounter today. “Whatever can be done via the use of money can be done through barter,” insists Simsek, “In the future the barter system will be superior to the banking system. This old world needs a new, dynamic, alternative solution.” Besides the misperceptions his chosen vocation suffers, perhaps the greatest challenge the barter system must overcome is the implementation of international barter laws. Simsek would like to see the adoption of laws - similar to banking regulations and monetary policies. He insists, however, that they need to be devised in such a manner so as to be acceptable to all participating countries’ standards and that they must create a framework fit for the future of the industry.

So convinced is Simsek by the positive impact of the application of a global barter system, that he envisages the establishment of an international barter bank which will as he puts it, “Ensure that these companies carry out transactions amongst themselves using this bank as an intermediary on an international basis.” Moreover, Turk Barter is in talks with Mastercard and Visa with a view to having them provide “barter cards”; an initiative they believe will create greater accessibility to and further encourage global participation in the barter system. Extolling the advantages of the entire barter system, Simsek is also adamant that it is very advantageous in job creation, saying, “It is almost entirely based on the philosophy of creating and retaining jobs.” What is clear, but perhaps little understood, is that the system offers solutions to a diverse range of sectors such as media, transportation, construction, cargo, textiles, logistics, tourism, indeed almost all industries. In the early days Simsek learnt much from the US where there are two types of barter companies – one specialising in corporate and another in retail. “There are transnational agreements such as the one signed between the United States and Saudi Arabia,” he explains, “Where the United States will provide aircraft in exchange for oil.” Turk Barter may have been a late starter in comparison to the US but their ambitions are not without merit. Barter transactions on both a grand and lesser scale are certainly one way for the market to avoid the pitfalls of trade deficits and the risks associated with fluctuations in currency. Turkey’s economy is booming now and Turk Barter’s approach offers a diversified way to keep up the momentum.

Petkim expands its exports 50 percent

etkim showed a high export performance in the first quarter of 2012. The export figures of the company reached worth $288 million, increasing 50 percent over the same period last year. According to the statement from Petkim, achieving the highest export figure with $834 million in 2011, the petrochemical company maintained its success in the first quarter of 2012 as well. Being $192 million in the first quarter of 2011, the export figures of the company were $288 million worth of exports in the same period this year. The share of the exports reached by 43 percent in the total turnover of the firm. Besides, capacity utilization of the company became 97 percent in this period. The turnover of Petkim reached by TL1 billion 206 million, regarding increase in product prices and sales increase in the said period. The sales amount increased 11 percent over the previous quarter and 5 percent over the same period last year to 491 thousand tons. The company spent $15 million in the first quarter for maintenance, increasing productivity. Recovery accomplished in Q1 of 2012 Commenting the figures of the first quarter, Petkim General Manager Hayati Ozturk marked that the petrochemical sector grew quickly in the first quarter of 2011, but since the Q2 it had been affected by the recession process of the world economy. “In this process, while demand in petrochemical products dropped in a quick and hard way, the prices of the products also slowdown continuously. Depending on the crude oil prices, the input and energy prices remained in the high level. For this reason, especially the profit margin of the producers engage in naphtha turned into negative, steadily reducing. But according to the results of Q4 of 2011, a relative recovery was experienced in the Q1 of 2012,” Ozturk said. Ozturk marked that sovereign debt crisis in Europe and eurozone economic instability, inflation anxiety in China and restricting loans to cool economy, the Arab Spring were factors in demand reduction. Ozturk also recorded that interest in coal as raw material or energy generation in recent years had increased due to high crude oil prices.

Made in Turkey Economic Newspaper, May 2012

“Target 4 million vehicle production in 2023” Turkey’s Science, Industry and Technology Minister Nihat Ergun, “Turkey’s automotive industry has targeted to make 4 million unit vehicles in 2023”

urkey’s Science, Industry and Technology Minister Nihat Ergun announced the objectives of the automotive sector for 2023 in an interview with the Japanese newspaper Nikkei. About Turkey’s automotive industry improvement plans, Ergun said in 2011 nearly 1 million 230 thousand vehicles were manufactured, adding that Turkey’s automotive industry has targeted to produce 4 million vehicles in 2023. Calling for the Japanese automotive makers such as Toyota, Honda to increase their production capacity, Minister Ergun recorded that incentives could be introduced such as tax-cut in order to boost the investments. Ergun also reminded that in Turkey

some 590 thousand passenger cars sold in 2011, noting that depending on income growth the passenger car sales would accomplish by 1 million units within a few years. Minister Ergun also emphasized that the automotive industry was a strategic area to attract investments to Turkey. Ergun also highlighted that Turkey has competitive advantages as the production hub, he added that faults in production have not been happened. As for Turkey’s own domestic car making, Minister Ergun said that the private sector should guide in that issue. “As the government, we only offer roadmap,” Ergun also recorded his expectations that the Japanese firms would join the project. Minister Ergun noted that Turkey

would balance the imports and exports in 2023, so current account deficit, which accounts for 10 percent of GDP, would recover.

Turkish Science, Industry and Technology Minister Nihat Ergun

Rate of Turkey’s unregistered economy downward urkish Finance Minister Mehmet Simsek said that Turkey’s unregistered economy rate has plunged to 27.7 percent, adding that they would battle with it in the most effective way. “The rate of Turkey’s unregistered economy was 32.4 percent in 2002; thanks to the efforts in recent years its level plunged by 27.7 percent. Within the next 10 years, we wish to decrease 5 points more than this current rate,” said Simsek. The government will hunt an effec-

Turkish Minister of Finance Mehmet Simsek

tive effort against unregistered economy, Simsek recorded, adding that fight against unregistered economy was as important as fight against terrorism. The Minister also highlighted that unregistered economy had a very critical importance in order to achieve the Turkey’s targets for 2023, which will be centennial celebration of the Republic of Turkey. Simsek said that their aim was to approach to the averages of the EU in a swift way in battling with unregistered economy.

Aselsan to make avionics systems for helicopters

urkey’s leading electronics and electronic systems company, Aselsan will produce avionics systems and integration of helicopters. According to the statement of Aselsan, Kazakhstan Aselsan Engineering (KAE) and Eurocopter Kazakhstan Engineering signed a cooperation agreement on integration of avionics equipment and systems in EC-145 helicopters. The agreement was signed within the scope of KADEX Fair which was held in Kazakhstan in May, 2 012. The company ranks on the 80th stop amid the most prestigious defense industry companies of the world. Aselsan designs, develops and manufactures

modern electronic systems for military and industrial customers in Turkey and abroad. ASELSAN, with tremendous success in the last 30 years in expanding systematically into the local and global markets, today, has become a high technology, multi-product defense electronics company by introducing state-of-theart equipment and systems solutions for both military and professional applications. Dedicated utmost importance to R&D activities by allocating a remarkable amount of its annual revenue to these activities and through its technological know-how, ASELSAN has achieved the capability to undertake large-scale system integration projects and succeed, in many cases, in developing most sophisticated products.

Foreign automakers increase their investments in Turkey

Turkish Foreign Minister Ahmet Davutoğlu

Made in Turkey Economic Newspaper, May 2012

Ministry to hold tender for third Istanbul airport M

Major foreign auto manufacturers, like U.S. Ford and Japanese Mazda, Nissan and Toyota will increase their investments in the Turkish market in 2012 despite the global economic volatility. Continued From Page 1 azda, another Japanese auto maker, plans to ISTANBULboost its offerings in TurTransportation Minister key by focusing on new Binalı Yıldırım says the motor technology. Mazda government is planning to has been relatively quiet in hold a tender this year for Turkey over the past five the construction of a third to six years . Now, howevairport for Istanbul to ease er, the company has plans the air traffic at Istanbul’s to revamp its technology two main airports. and bring forth a new era Passengers go through in auto production, said security control at IstanNurkan Yurdakul, managbul’s Atatürk International ing director at Mazda MoAirport. A new airport tor Turkey. planned for Istanbul will “We plan to introduce our have the capacity to hold new technology Mazda 100 million people. CX-5 to the Turkish marTurkish Transportation ket as soon as this April,” Minister Binal Yıldırım Yurdakul told . “After said on April 21 that the this model we will launch government was planning our two liter diesel moto open a tender for the tor Mazda6 that uses our construction of a third airSkyactiv technology at the port in Istanbul. end of 2012.” Yıldırım said Istanbul’s

The largest leap will be with the Skyactiv motor Mazda3, which will come to the Turkish market in AtatürkAirport was cur2013. The Mazda3 will rently functioning at douhave a 1.3 liter diesel enble its capacity, because of gine, which will be capaongoing renovations and ble of using only 3.3 liters capacity restructuring at of gas per 100 km. the airport. “We plan to boost Mazda “We are directing some sales from the current flights to other air2,200 vehicles per year to ports, a minimum of 10,000 per a n d year. Turkey will become we will the hub of Mazda sales to p r ov id e Europe,” added Yurdakul. more opMazda currently has 30 por tunidistribution centers in ties for Turkey, but only 12 of scheduled these are active. The comf l ig ht s,” pany plans to increase this Yı l d ı r ı m number. told reportDespite ambitious investers in Istanment plans, 2012 could bul. be a rough year for auto He said these makers, especially those were short or medium-term on the European contimeasures to relieve traffic

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market shrinks 7.3 percent

In signing a cooperation protocol with the Istanbul Municipality Government, Foreign Minister Ahmet Davutoğlu said he European automobile market contracted by 7.3 percent in the government aims make Istanbul the first quarter of 2012 fromto the same quarter in 2011, according to the data released by the Automotive Distributors Founa dation major hub for the United Nations and (ODD). Auto sales in the first three months of 2012 registered at roughlyfinancial 3.4 million, down fromcultural 3.7 million in organizations. the first three months world and

of 2011. The contraction, began in the fourth quarter of 2011, continued and Luxembourg on the subject. Davutoğlu which said the governin the ment first quarter 2012. wantedof to make Is- Davutoğlu said if human culture Germany witnessed 1.3 percent increase sales, while Italy were to be inencompassed in three tanbul a centera slight for politics Francewitnessed a 21 percent 21.6 percent drop, respectively. Istanbul would be one of andand diplomacy as a “U.N. city.” “We andcities, Portugal, at 48.4 percent, at 32 Itpercent, registered was crowned the the European want all countries’ flags to and waveGreece, in them. sharpestIt’s drop in sales. Other countries that saw a contraction include Capital of Culture in 2010. Istanbul. a diplomatic perspecBelgium, Slovenia, Holland, Ireland, At Denmark and Sweden. Con- meetthe annual ambassadors’ tive. versely countries that saw a marked in their auto sales said ingincrease held in Istanbul, Davutoğlu “We aim the to make Istanbul a U.N. were Iceland, at 101.1 Romania, at 44.3 percent; Finland, he was proud to giveand Istanbul Mayor center for issues of percent; mediation, at 34and percent. peace issues concerning the fu- Kadir Topbaş the year 2011 award ture of humanity,” Davutoğlu said. honoring a Turkish statesman’s con“We agree with the U.N. on these tributions to diplomacy. matters and determined we have an At the ambassadors’ conference, important place [in these discus- Turkey signed an agreement to be the host country for the Cooperation sions].” The foreign minister also said the Council of Turkic Speaking States government hopes Istanbul will be- (CCTSC). come a center for finance, a main Davutoğlu said the CCTSC headcenter for global economic influx quarters will be in Istanbul under and a main station for transporta- the agreement, contributing to the tion lines. He said Turkey has al- effort to make Istanbul a center for ready had talks with Switzerland international organizations.

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Four groups set to race for Bosphorus bridge tender

exchange rate, rise in electricity prices, an

Turkey aims to make Istanbul European auto a ‘UN center’

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ANKARA - Turkey might be forced to revise down its 4 NKARA - Economy Minister Zafer Europe showed that the affects of the Europercent growth target$150 forbillion 2012pean if the debtcrisis crisis in Europe Çağlayan says he expects economic are waning and that the in Turkish exports for the year 2012. European markets are bouncing back. continues, says Deputy PM Babacan says for the first time. The Import Expectations Index and the ExInincrease the second the Export in quarter, the import tax on Expectations various textile Survey predicted that exports to all prices, countryhe products and the rise in cigarette groupings would go up, in comparison with added. last quarter, when the survey only expected Babacan also said there was likely to be an exports to Africa the Turkic improvement in and Turkey’s currentrepublics account to defgoicit up.and in the past four to five months they Imports from Asia strong had seen substantially more direct investment Similarly, the Import Expectations Survey without a serious outflow of capital from Turpredicted that imports from Europe, India, key. Indonesia, South Korea,Bank Japan, The Turkish Central hadother sold Asian a large countries and the U.S. would increase com- in amount of dollars, he said. “The volatility pared to previous quarters. While in the lastdethe lira is less than what you see in other quarter, survey takers expected a drop in imveloping countries,” said Babacan, adding that ports from devaluation the Middle was Easta and Africa, thisall currency problem facing

ASTAMONU – There has been a 20 percent increase in the planting of garlic bulbs in the region compared with last year, according to Taşköprü Garlic Producers Union President Abdullah Eligüzeloğlu. Because of prevailing weather conditions, Eligüzeloğlu explained that there had been a delay in garlic planting as temperatures were in the normal rage and there was sufficient rainfall in the Taşköprü region in Turkey’s Black Sea coast near Kastamonu. These factors helped to foster quick growth, he told Anatolia news agency. Eligüzeloğlu also said that because of the influx of Chinese garlic last year, local producers had been hurt. In order not to suffer a similar outcome this year, they plan to pay a visit with the Kastamonu Member of Parliament to Turkey’s Agriculture Minister Mehdi Eker, to ask for the implementation of a customs tax on imported garlic.

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Trade foresees Turkeysurvey may revise down its growth target for 2012 rise in imports, exports port Expectations Continued From Index Page 1both went up for the second quarter of 2012, to mean the For“Growth of 4 percent inaccording 2012 would that eign Trade Expectations Survey for the 2012 would have to be as good a year asquar2011, terif released by the not better,” saidEconomy Babacan Ministry. at the Independent The Export Expectations Index increased by Industrialists’ and Businessmen’s Association 17.1 points from 97.9 to 115 for the second (MÜSİAD) meeting at the Rixos Hotel in Anquarter kara. of 2012 and the Import Expectations Index also target witnessed an 11.1 point increase Inflation realistic from 104.6 to 115.7. The current inflation rate in Turkey was “We will10.45 easilypercent, be ablebut to aachieve $150 bilaround 5 percent inflation lion in exports,” said Economy Minister Zafer target was certainly achievable, Babacan said. Çağlayan in inflation a written reading statement following the This high was, in his opinrelease of the results. He noted that importers’ ion, temporary and not a result of monetary expectations that they would import more to policy but rather developments regarding the

Farmers plant 20 pct more garlic

nent. French car makers prefer to buy brand new and lack of maintenance like PSA Peugeot Citroen cars due to their safety costs. and Renault expect a lull in sales. Such stagnation at the airport. Tayyip Erdoğan first an- Noting that delays are becould also affect auto pro100 million capacity nounced that the govern- coming more frequent at ducers’ plans for the Turk“We will hold a tender for ment planned to build a the Atatürk Airport, Minisish market. the construction of a third new airport, capable of ter Yıldırım said, the daily Meanwhile, there has airport in Istanbul within holding 100 million people, flights at the facility have been a drop in second this year,” Yıldırım added. in Turkey’s largest already started exceeding hand auto sales in Tur1,000. At the city. key with all the attractive Istanbul’s Atatürk “Building a new runway yearend sales and offers. Airport hosted 20.3 here is not the solution,” Mersin’s Auto Salesmen million interna- Yıldırım said. “The cost of Foundation Head (MODtional passengers a planned parallel runway ER) Hüseyin Kış said he and had interna- is 5 billion Turkish Liras. thinks there will be a picktional commer- The ministry was also up in second-hand auto cial flight traf- working on renewing parksales after the New Year. fic of around ing to ease the traffic, he “With the New 8Year, 8 1 also 5 2said. 4 “Some 6 9 of3 the 7 de4 3 5 2 6 1178,817 9 7 in 2010. many of the special offers 3 9 2 1 7 5 8 6 4 9 5 7 1 3 4 2These 6 8 figures lays are related with that,” and promotions will come mil4 6 he 7 said. 8 3 The 9 1airport 2 5 op1 2 7 8 9 3 were 4 11.8 5 to an end and there6 are erator is working on lion and 94,887 5 7 9 3 6 1 4 8 a2new 7 8 5 3 4 2 9 1 6 always more second-hand parking area at the military respectively for do2 8 6 7 5 4 3 9 1 3 9 4 6 1 5 7 8 2 auto sales in the summer,” o p e n - mestic traffic. The airport plot nearby. The construche said. He did, howev1 3 4 9 8 2 5 7 6 2 6 8 9 7 4 5 3 hosted more than 36 mil- tion work there is about ing of the Trump1 Towers er, say the overall 2trend 9 4 to1 finish, 6 2 the 3 minister 7 5 8also 3 8 4lion6 passengers 1 5 7 in 92011, acMall in Istanbul on April showed that customers 7 2 3 5 1 8 6 4 9 5 6 1 9 7 3 8 2 4 said. 19, Prime Minister Recep cording to Yıldırım. Difficulty level: 6 EASY EASY 1 3 9

Turkish Deputy PM Ali Babacan

specific to the Turkish quarter expectations werecase. up once again. The Meanwhile, in evaluating 2011issues and facspellsurvey also found that the greatest ing out its 2012 expectations, MÜSİAD said ing firms were high energy costs, followed by Turkey’s growth rate was five times that high raw material costs and high transporta- of thecosts. U.S. and Europe and had surpassed other tion BRIC it on par Ministercountries Çağlayanbringing is currently in with the China. U.S. MÜSİAD also praised Turkey’s employment meeting with businessmen to promote Turrecord unemployment was equivalent key’s newsaying incentive system. to U.S. figures and less than the current unemdeveloping countries and not a phenomenon ployment seen in Europe.

Automotive sector may shrink 10 percent in 2012

ustafa Bayraktar, Chairman of the Turkey’s Automotive Distributor Association (ODD), said that the automobile and lightweight commercial vehicle market which broke record with the sales of 864,439 units in 2011, would constrict 10 percent due to STANBUL small group of peoslowing down–inAeconomy in 2012. ple demonstrate in front of Turkey’s Bayraktar announced that the automoHighway Authoritycommercial in Ankara on bile and lightweight vehicle April 20 protesting the plan to build a market achieved 13.61 percent rise with third bridge over Istanbul’s Bosphorus. the sales of 864,439 units in 2011. While Fivepassenger firms of cars’ the 11 firms that had resales became 593,519 ceived authorization said they would units, as for lightweight commercial veparticipate in the April270,920 20 tender hicles’ sales became unitsfor last theyear. “Northern Marmara Highway Project,” which 45,000 includesunit the heavy third Bosphorus “When weight vebridge. The actual tender will market be schedhicles are added, the total will uledreach at a by later 910date. thousand units and so to the “We have bids will sales of areceived 1 millionfive units haveand been apexamine these for missing documents. proached,” Bayraktar noted. Afterward, will send“Inan2012 invitation Bayraktarwe continued, regardto the firms to submit their price bids,” ing the economic growth would be lower saidthan Tender President İhsan 2011,Commission the general market to plunge. Akbıyık. Those firms are missing In my opinion, some that 10 percent freefall thecould proper documentation will exhappen. But we can seebebigger cluded from the tender. shrink in the first half. It will go on by Therecovering five firmsfrom and the consortia submiddle which of the year.” mitted bids are the following: Mapa Telling that there were two main reaİnşaat, Yapı Merkezi-Doğuş İnşaatChina Communication Corporation-Arkon Yapı Joint Venture, Cengiz İnşaatLimak-Makyol-Kalyon Joint Venture, Salini-Gülermak Joint Venture, Astaldi İçtaş Joint Venture. Mapa is the only company that submitted a solo bid. The project, worth $5 billion, will connect Turkey’s Adapazarı and Tekirdağ

I Number of exporting provinces reaches by 16 A N Net foreign direct investments soar by 25 percent in 2 months

NKARA - Foreign direct investment The Turkish government has laid its hopes on umber of and exporting worth of ex-comprehensive incenin the health social workbillion indus-629a million recently-announced provinces over $1 bilports last year. tries outshined all other sectors in tives scheme to attract more direct investment raised by 16 in The2012 northwestern province of terms of lion FDI for the January-February from abroad, while international rating agenthe year 2011. The figure of 16 Bursa ranked third exporting period. Manufacturing, food and beverages, cies still hesitate to lift Turkey’s rating to an provinces’ exports also composed $12 billion tobacco and chemicals witnessed goods impres- worth investment grade. 538 totally worth $109,6 billion, acmillion. sive increases Foreign investments in Turkey’s manufacturcounting for 81 direct percent of the inBy the addition of Konya Net total foreign investment Turkey ing industry rose byand a striking 97.7 percent to overall exports of Turkey. Trabzon provinces onto previduring January and February 2012 rose 25 $352 million in the January-February period, The data fromnearly the $1.7 Turkish ous figyear’sfrom provinces Istanbul, percent, reaching billion. This $178 million in the same period last year. Exporters’ Assembly (TIM) Kocaeli, Bursa, Izmir, Ankara, ure is up from $1.35 billion during the same Food, beverages and tobacco industries atshowedlastthat of Gaziantep, Manisa, period year,the withprovince manufacturing, health tracted a total ofDenizli, $56 million this year, up from Istanbul ranked atop with $59 Hatay, Sakarya, Adana, Kayand social work, and real estate renting be- $5 million last year. The chemicals manufacbillion 49 million worth of exseri, Mersin and Antalya, the star among manuing the most attractive industries, according turing industry is another ports 2011. by the Ministry of Economy. number of provinces which as it witnessed $45 to datainreleased facturing sub-industries, Istanbul was followed by the export goods over $1 billion Net foreign direct capital investments totaled million of foreign direct investments, almost province of Kocaeli withpercent $12 increase reached byquadrupling 16. $1.28 billion, with a 14.7 the $12 million in the Januaryfrom $1.1 billion during the same period in February period last year. 2011, while foreign investments in local real Real estate, renting, and business activities estates was at $305 million during the first two also expanded, by almost 120 percent to $202 months of the year. million from $92 million. Foreign investment is a crucial issue for the Investments in the “health and social work” Turkish economy, as the soaring current ac- industry outshined every other industry or count deficit has become a foremost factor sub-industry as a total of $273 million during casting a shadow on an impressive growth re- this year’s first two months. There were no incord in last two years. vestments at all in this sub-industry during the

same period last year. Foreign investments in the community, social and personal service activities rose from $3 million to $45 million and in the mining and quarrying industry from $5 million to $22 million. The electricity, gas and water supply industries collectively registered a 73 percent drop in foreign direct investment, falling from $267 million in the January-February period of 2011 to $72 million this year. Financial intermediation activities were another wounded industry, shrinking by 42 percent from $366 million to $213 million, while the transport, storage and communications industries collectively contracted by 80 percent from $76 million to $15 million. Foreign investment in the local construction industry was $24 million this year, receding by 60 percent from last year. There are a total of 29,579 foreign businesses currently active in Turkey, according to tentative official data. More than 18,000 European firms dominate these businesses, while firms from near and Middle Eastern countries follow with more than 6,000 firms.

sons which affect the demand, Bayraktar pointed out that consumer purchasing power and confidence would be lower compared with the last year. Opposite of foreign currency rise, which was expected to affect the demand, did not affect the demand much, Bayraktar regions with general a 414-kilometer highway insaid, “The special consumption cluding the third Bosphorus bridge. tax increase affected 10 percent of the The tender fordid thenot Northern totalfirst sales. Change happen inMarthe mara Highway Project took on majority of the segment. The 5place percent March 9, 2011. The first date to receive increase effect is felt in the light comapplications had been set as Aug. 23, but mercial vehicles’ sales.” was then delayed to Nov. 22 and 10. The tax rise was introduced in Jan. the veAthicles that over juncture, certain firms asked for 1600cc cars and in the coma mercial three-month or six-month delay. There vehicles October 2011. were no applications in the Jan. 10 tender.

Mustafa Bayraktar, Chairman of the Turkey’s Automotive Distributor Association

Made in Turkey Economic Newspaper, May 2012

US companies introduced to Turkish incentive scheme EW YORK - Turkey’s new investment incentive scheme is the world’s greatest system, and will hopefully lead to an international investment boom, Economy Minister Zafer Çağlayan said at a New York meeting of the River Club. Çağlayan was explaining the new scheme to the Chief Executive Officers (CEOs) of several large American firms. On the train ride to Washington D.C., after the River Club address, Çağlayan told reporters that Turkey was increasing its activities in

six areas of the U.S: Georgia, Atlanta, New York, Washington D.C., Houston and Illinois. These regions make up 46 percent of U.S. Gross Domestic Product (GDP). Çağlayan said that before the River Club meeting his team had met with five huge American firms, whose total turnover was $300 billion, or roughly 40 percent of Turkey’s GDP. “We told them about our incentive scheme and they told us which operations they wanted to take part in and how they would foster employment,” Deputy Prime Minister Ali

Babacan said. One such American company interested in increasing its investments in Turkey is Kimberly-Clark Corporation, which owns the labels Huggies and Cotex in Turkey. “This company is ready to invest in Turkey and wants to transfer some of its operations in other countries to Turkey,” said Çağlayan. 3M wants to make Turkey into its investment center, according to Çağlayan, adding that Pepsico also wanted to increase its investments in Turkey from $800 million to $5 billion over the next three years.

Turkey donates $1.3 billion to poor countries OHA - Turkey donated $1.3 billion in 2011 to poor nations as support to the least developed countries holds an important place in its international development initiatives, Prime Minister Recep Tayyip Erdoğan said on April 21. “We will continue with determination to support the least developed countries and voice their problems on every occasion and platform,” Erdoğan said during the 13th United Nations (UN) Conference on Trade and Development in Doha, Qatar. Erdoğan said Turkey had hosted the Fourth U.N. Conference on the Least Developed Countries last May, and had vowed to follow the implementations in line with theIstanbul Action Plan and Declaration for the next decade.

“As the government, we have committed to extend every type of support to our investors in order to increase their direct investments in these countries to $10 billion by 2020,” he said. Most importantly, Turkey has put into practice an economic and technical cooperation package envisaging the allocation of $200 million of resources to the least developed countries, he added. Turkey made official development assistance worth $1 billion in 2010. “With these figures, Turkey has become the OECD member that has most increased its official development assistance,” the premier said, adding that this was concrete evidence of Turkey’s support to developing countries.

Fatih Municipality awarded by Harvard University s the first mobile signature applicator, Fatih Municipality attracts attention across the world regarding its studies on the informatics technologies. Mustafa Demir, Mayor of Fatih Municipality delivered a speech entitled “Example for Successful Implementations of Local Governments in Informatics Technologies” at Harvard University in Boston, the USA, on 28 April 2012. After his presentation, “e-management” award was offered to Mustafa Demir at Harvard University, one of the prestigious institutions of the world. In his speech, summarizing historical importance and natural structure of the region, Fatih Municipality’s Mayor Mustafa Demir told about protection, renovation and restoration of the worldwide know works such as Blue Mosque (Sultanahmet) Hagia Sophia, Topkapı Palace, Grand Bazaar, Dikilitas to audiences. In his presentation about “Example of Successful Implementations of Informatics and Technology in Local Governments”, introducing “City Information System, Mustafa Demir informed in detail about “Mobil Signature” and “Fatih Mobil”, the latest project. “City Information System” was deserved the award regarding “Fatih Mobile” application by TUSIAD and Turkey’s Informatics Foundation held in December 2011. Demir also remarked that they had acted by thinking not only today’s needs, but also possible needs in the future. Mayor Demir said, “Taking the most important awards of Turkey in informatics area, Fatih Municipality is also forming the first steps of e-state implementations. We have let comprehensive mobile municipality implementation put into force. We have provided all information related

with municipality management taking place in the electronic condition in a transparent way. You can reach every kind of information about Fatih Municipality via internet; you can implement many transactions without any document, even without coming to the municipality. We gain very big savings both in terms of time and source.” Following his speech and responding various questions,

“e-Corporate Governance” award offered to Mustafa Demir as a good example of informatics technologies in the local governance. “City Information System” Defining upper – bottom texture and structure, smart maps, socioeconomic situations of all entities in the region and then associating all numerical and verbal information be-

longing to the entire data for the applications of municipality. In order to convert this structure into updating system continuously, to let all management, inspection and also direction mechanisms run in a quicker, efficient and reliable, just in time, economic and effective way, to provide full coordination in information collecting, offering and servicing. The automation system consists of Geographic Information System (GIS) and Management Information System (MIS) and an integrated system which constitutes 22 sub-projects. “Mobile Signature” Implementing first time by Fatih Municipality in the world, citizens achieve to get information, offer bids, demand business place registration, learn improving and building the condition of a building or region transactions via cell phones with “Mobile Signature”. Regarding the future’s technology, thanks to the system there is no necessity to go to the municipality, preparing various documents. Providing time and source savings, the citizens show great interest in this implementation. “Fatih Mobile” Fatih Mobile is an implementation that citizens can get information about the District of Fatih and Fatih Municipality via their mobile devices, as well as interactive municipal processes quick and easily. Under the implementations which gathered under 8 main headlines such as Mayor, Communication Center of Fatih Municipality, District Directory, e-municipality, Topical, Culture-Art and Services, there are also 65 unit sub modules.

Mustafa Demir, Mayor of Fatih Municipality

Thanks to these modules, transactions are easily applied such as managing information, hello-municipality, suggestion with picture and sending complaint message, inquiring debt, paying debt. Culture-art event timetable can be followed via Fatih Mobile, can get information about pharmacy on duty, Fatih photograph galleria, tour places, social facilities, topical news and notices. Serving in a very wide spectrum, accessing possibility to all municipality broadcastings, tender notices, wedding appointment calendar, reminding of tax times, Fatih Mobile is continuously updated and developed.

Made in Turkey Economic Newspaper, May 2012

Turkey’s underground wealth 2.5 trillion dollars! It has become clear that 77 out of the total 90 kinds of mines exist in Turkey and that their market value totaled over USD2.5 trillion.

ccording to the researches of the General Directorate of Mineral Research and Exploration (MTA), the richest mining reserve of Turkey is dolomite with 15.8 billion tons. Containing calcium carbonate and sodium carbonate in its structure and becoming an inevitable materials of the glass and ceramic industries because these features, dolomite is renown as a rare and very valuable limestone. In addition, Turkey has 13.9 billion tons of marble, 12.3 billion tons of lignite coal, 5.7 billion tons of rock salt, 1.2 billion tons of high-calorie coal, 3 billion tons of boron, 1.5 billion tons pumice, and 1.9 billion tons of blister copper ore. It is stated that the current market value of Turkey’s total underground mineral resources is over $ 2.5 trillion. According to the data of MTA, among other underground minerals there exist 29.6 million tons of asbestos, 82 million tons of asphaltite, 35 million tons of barite, 251 million tons of bentonite, 1 billion 641 million tons of bituminous schist, 88 million tons of bauxite, 3.8 million tons of mercury, 380 tons of thorium, 233 million tons of trona (natural soda), 9 thousand 137 tons of uranium and 345 million tons of zeolite. Research forecast the existence of 700 tons of gold reserves (6,500 tons probable reserve) and 1,926 tons of silver reserves in Turkey. In addition, it is predicted that Turkey has 239 million tons of feldspar, 70 million tons of phos-

phate rock, and 4 million tons of manganese. 72 PERCENT OF BORON RESERVES IN TURKEY 0.5 percent of the world mine reserves, 2.5 percent of industrial raw material reserves, 1 percent of coal reserves, and 0.8 percent of the geothermal potential is in Turkey. Turkey has 7,495 billion cubic meters of exploitable natural stone reserves of which 3.8 billion cubic

100 thousand tons of sodium carbonate. “OUR GOLD RESERVES SHOULD BE OFFERED TO THE ECONOMY” AK Party deputy Siirt Demirkıran Afif told AA correspondent that mining, one of the most important sectors of national economies, is a sector which is needed by all sectors particularly by the industry, by providing the basic inputs and providing additional employment

meters is exploitable marble, 2.7 billion cubic meters is exploitable travertine and 995 million cubic meter part is exploitable granite. According to studies there are almost 650 kinds of marble at different colors and textures. Turkey, which has 72 percent of the world’s boron reserves, ranks first in the world and has the capacity to meet the world consumption minimum 400 years. The facility established in Beypazari to operate the second-largest soda ash reserve in the world, meets 2.5% of the world consumption with the annual production capacity of 1 million tons of soda and

opportunities in rural areas. Stating that although there had been rich mineral deposits in Turkey, most of these resources wouldn’t processed, Demirkiran said, “There are mines underground Turkey at different types and features over 50 billion tons of extra commercial value ,” he said. Demirkiran explained that according to the MTA data, Turkey ranked 28th among 132 countries in terms of mineral resources, and ranked 10th in the diversity of minerals and that there were 77 kinds of mines out of 90 kinds trading in the world, and that 60 kinds of those 77 kinds are pro-

duced in Turkey. “650 TONNES OF VISIBLE GOLD” Pointing out that the investment budget of 15 thousand-20 thousand feet per year before 2002 mineral exploration drilling at the MTA today, 200 thousand meters per year, rose to 102 million TL, Demirkiran said that as a result of this investment, the 8.3 billion tons of lignite reserve of 70 years rose to 12.3 billion tons representing 50% increase and it would rose to 25 billion tons with the new searches. Pointing out that Turkey ranked fifth in gold imports with 250-300 tons, Afif Demirkiran said, “The imported 150 tons of gold is processed and re-exported. Considering that our country has paid USD 5-6 billion a year for gold imports, the importance of offering 650 tons of visible and 6 thousand 500 tons of probable gold to the economy as soon as possible will be understood. Our country ranks second with regard to total gold reserves,” he said. Stating that in addition to many indicators the mine consumed in that country is directly related to the welfare of a country, Demirkiran said that researches showed that a person in the USA at age of 70 would consume 1600 tons, in Germany 1000 tons, but in Turkey 300. Demirkiran said that they supported opening of a Parliamentary Research to discuss the determination and solutions of the mining sector at the General Assembly of the TGNA.

2012 test for Turkish Central Bank, says governor The Central Bank will never allow a deterioration in price stability, says Central Bank Gov Başçı. This year will be a credibility test for the Central Bank, said Governor Erdem Başçı, adding that Turkey is ready to boost growth with its domestic dynamics, which was the reason the Central Bank has mainly maintained a tight monetary policy. The Central Bank prefers its monetary policy remains tight and will not allow deterioration in price stability, the governor said at a meeting organized by the Turkish Exporters’ Assembly (TİM) in Istanbul. The bank is confident that year-end inflation will be at 6.5 percent and would prefer the Turkish Lira remain a “strong currency,” Başçı said. “The relative value of the lira will continue to be better than other currencies because the Turkish Central Bank thinks this will be right for price stability,” he said. Since its monthly policy meeting in March, the Central Bank has adopted

a hawkish stance to curb inflation, last running at an annual rate of 11.1 percent, its highest since 2008 and way above the bank’s year-end target of 5 percent. Başçı also said Turkey could easily see annual inflation at around 8 percent in May due to a sharp decline, but forecasted it will rise again in the June-toAugust period. “We will try to restrain the rise in inflation, thus we are sensitive to [foreign exchange market] rates,” he said. Since late 2010 the Central Bank has applied an unorthodox policy mix based on daily liquidity management, a low policy rate and an active interest rate corridor – the gap between its overnight borrowing and lending rates – to deter short-term capital inflows and help tackle high inflation and a huge current account deficit. However, this complex policy contributed to excessive weakness in the lira by increasing market uncertainty, causing the lira to loose some 20 percent compared to the dollar in 2011. “The Central Bank will never allow a deterioration in price stability. It will do what is necessary when it is necessary,” Başçı said, possibly implying further support for the lira.

Orteks offers exclusive options

RTEKS Tekstil, is one of Turkey’s leading artificial leather manufacturers / exporters with fifty years’ knowledge and experience in coating and lamination sectors. We made an exclusive interview with Mr. Bülent of Orteks Tekstil, Full text of the interview follows: Could you inform us about history of your company? He said, “One of the leading manufacturers in Turkey, with knowledge and experience of over 40 years, in 1993 our company took an important step towards regeneration and the latest technology after being founded in 1974, and opened its world-class factory in 1995. The company always follows closely developments and technologies in the sector, and it offers more quality products

and services to its customers by combining information from the experience every year. The company is among the first leading companies of the industry as a company, which firstly manufactures silvery product in Turkey, beside it follows innovations in the industry.” What is your product groups and production capacity? He recorded, “As ORTEKS Artificial Leather, Upholstery Product Group has the first rank in our production. It is followed by Garment Product Group in which we are a leading company with our products. In addition to these two main product groups, we produce Bag, shoes / slipper / interlining, agenda, technical textile, carpet & floor and r ol le r blind. W e

presented over 10 million meters of products to the satisfaction of our customers in 2011. We supply our products and services to the Turkish market and export to 45 different countries including Europe, Asia, America, Africa and Far East countries.” Could you inform us about your production facilities? He stated, “Our company was built on 33.500 m² area. It has 13.000m² closed areas. Our latest investment was completed in 1995. Orteks has experienced staffs who update their knowledge with the courses about developments in the world. Main purpose is absolute customer satisfaction. The Total Quality System is applied to all our products from raw material to finished product including packaging.” What about your export markets and target markets? He noted, “Our company has a large share of markets in Europe, Asia and Africa continents. We want to have a significant position American market beside to increase market share in these continents.” What are your customer satisfaction policies? He stressed, “Orteks Deri Suni Deri Family aims to give acceptable service in the world and having maximum customer satisfaction with total quality following and pioneering

the technical innovations about sector. We are clear, understandable, disciplined, honest and trustable company which improves the system and field of activity, and being an expedient trade mark with environmentallyconscious and doing all legal responsibility in all fields, also cooperating with our suppliers and making them a part of our quality system when we improve our quality.” Do you participate in international fairs? What is the importance of fairs in the industry? He pointed out, “We participate in industryleading fairs such as Mood / Belgium, Heimtextil / Germany and Evteks / Turkey fairs every year. In addition to these fairs, we turn out new participation in new fairs with both domestic and foreign fairs organizers of the exhibition. Our fair choice for this year is Index Dubai / UAE. We prefer to participate in exclusive fairs in accordance with our brand and many years’ experience of the company rather than participating in every fair. Although there are hundreds of fairs held in the industry, every fair has

not the same efficiency and quality.” What about your year 2012 goals? He added furthermore, “Our company aims to reach 14 million meters in production in 2012. While advancing in this purpose, our company intends to increase its own product range with special designs and develop its production according to the latest technology used in the world in 2011.”

Borusan plans $513 million worth of investment he CEO of Borusan Holding, Agah Ugur said that they have been working on seven unit acquisitions in the areas of steel, logistic and distributorship; apart from acquisitions they had also planned investment worth $513 million predominantly in energy in 2012. Ugur stated that Borusan owns some $300 million worth of cash. “In addition to choice of bank loan, we also give much importance to the bond market. Our works are continuing to export bond that we predict it can be worth $250 million,” Ugur said. Noting that they were planning investment worth $513 million apart from acquisitions in 2012; $289 million of it would be in energy, $90 million in logistic, $66 million in steel and $6 million in other investments area. According to the information, the turnover of Borusan Group was $4.3 billion with 22 percent rise in 2011, in 2012 the group expects $4,1 billion worth of turnover. As for the Earnings Before Interest, Taxes, Depreciation and Amortization, it is expected to reach by TL388 in 2012, it was TL326 million in 2011. Borusan Group also predicts 15 percent increase to the total 6,318 units in 2012.

Made in Turkey Economic Newspaper, May 2012

Sami Öney: “Textile is like a water-well, as long as you dig, you can expose water”

ontinuing its activities since 2006 such as velvet & chenille, upholstery fabrics and velvet for background curtain production with its experience for over half-century, Soney Textile exports its products under Velluto brand primarily to Mideast markets and then to European and Russian markets. We conducted a pleasant interview with Dilşat Öney Brand Manager of the Firm and Samet Öney who has been newly elected as the chairman of textile and clothing committee for the Marmara Businessmen Association (MASIAD). Q- Would you inform about establishment and current situation of

Soney? A- Establishment of our firm goes back to 6 years ago. As for before, our history in the textile sector stems from working at our grandfather business in the textile sector. So, I have come nowadays working at my grandfather since 1974 up to the 1980s. After 1980, we had established our own firm as two partners. Lasting our partnership for 25 years, then we have established our own firm. Q- What would you like to tell about the product kinds and capacity of Soney? AOur firm’s production capacity is thirty thousand sq meters, but we can be able to increase this up to fifty thousand sq meters. However our aim is not to rise by high meters, making higher in quality product being able to sell upper levels, shortly to work as boutique. I can say that there is wide product range of ours. In upholstery group, plain/jacquard velvets, chenille fabrics… As for the background curtain group, there are dazzling qualified products due to high R & D activity; embroideries, prints, Swarovsk stones on velvet… Q- What is the most important feature which separates you from your competitors? AWe reveal products in up-

holstery fabric and curtains with very high R & D activities. Together with this, our products that we make are followed in the market. Frankly, I think being counterfeited and replicated is a pleasing thing. Because, while someone is replicating your products, you had set sail to the new horizons a long time ago. The important thing is to make a thing by considering. We, as the firm, care to design products to which we add our innovation. Q- Ms Dilşad, would you inform us about branding work as being responsible for branding activities? AWe have wished to participate in the two fairs in two different countries this year; one on 27-30 June in Lagos, Nigeria and the other one on 28-30 August in Shanghai, by thinking a crucial step on behalf of

branding. In order to leave a trace, after shootings professionally the products, we have done catalogue, advertisement and promotion works. As an innovation, we offer our products to customers within packages which reflect quality and chicness of the products not within the round bags. Q- What is your opinion for the domestic market? AWe would like to open stores in the domestic market. While doing this we aim to open store in the Laleli market, Istanbul, which is the biggest open fair venue of Turkey. If you would like to work with the world no doubt you must be in the Laleli market. Q- How about your export activities? AWhen I was leaving the firm of which I was partner for 25 years,

Turkey assertive in aeronautics business urkey can be as significant a production base in aeronautics as it is in automotives, Turkey’s Defense Industries Undersecretary Murad Bayar said, at a press conference as the Global Industrial Cooperation conference 2012 kicked off. Touching on the benefits of Turkey’s participation in Lockheed Martin’s F35 Joint Strike Fighter manufacturing

program, he said the industry had taken nearly $8 billion business share to date. “Turkish firms win the contracts competing with firms from nine partnering countries in the F-35 consortium. Their competitive performance is high up to the present. Labor quality, cost advantages, a particular level of professionalism in the aeronautics create opportunities for Turkish firms. We can

compare it to the automotive sector for instance. Turkey can be as significant a production base [in aeronautics] as it is in automotives,” he said. The conference is organized by ESBAŞ Industrial Park in İzmir, GOCA (Global Offset and Countertrade Association) of the U.S., ADS (Aerospace, Defence and Security Industries) of the UK and DKF (Deutsches Kompen-

sations Forum e.V.) of Germany. It is closed to the press and ends on 23 May. Some 400 leading defense and aeronautics firms from the U.S., Europe, the Far East are participating in the event. Bayar said Turkey’s expectation from the event was to get international defense and aeronautics firms to know Turkey better and assess the opportunities here on a more realistic basis.

actually I had a customer portfolio. Thankfully that being able to leave good impressions that they have continued to work with us under Velluto Istanbul brand. As for the countries we export, there are Iran, Saudi Arabia, China, Russia and some African countries. Q- How do you see today and future of the sector? AAs long as the construction businesses continue, I think it is not possible the textile sector to finish. If the construction sector is very strong in a country, other sectors also grow following it. For this reason armchair and curtain businesses are must for every home. Q- How did the year 2011 past? What are your expectations for 2012? AI cannot say that 2011 and

first half of 2012 are very productive. We have experienced troubles due to not to reflect the price increases of cotton and polyester on our products. I did not lose my hope at all. As long as you make true works, your works would continue in a very good way. Primarily, if we attach importance to work hard, be honest and R & D studies, I hope upcoming years would pass better. Q- Would you like to add something? ATextile is a well; as long as you dig you explore water. If you do not dig, that well would be drying. It is possible to make up new things every day, every moment. Without making concession from quality, I consider that good works will emerge. This is my modestly advice to our sector…

Automotive production slows down in April egarding the global economic conjuncture in Eurozone which is the primarily export region for Turkish automotive sector led to the automotive industry’s production decreased 15 percent to 88,261 units in April 2012. As for the automobile production dropped 18 percent to 44,384 units in April 2012. According to the statement of Turkish Automotive Manufacturers’ Association (OSD), the policies, which foresee to setback the economy, continue to the expected slowing down of the demand in the market. The statement of Turkish Automotive Manufacturers’ Association (OSD) also evaluates the market, production and exports in the period of January-April 2012. According to this evaluation, the total automotive market constricted 24 percent to 209,845 units over the same period a year earlier. As for the automotive market, the plunge became 20 percent to 65,954 units; car market contracted 15 percent to 45,645 units in April 2012. In the first four months of 2012, the light commercial vehicle market reduced 33 percent to 56,000 units compared to the same period a year earlier. As for the truck market dropped 31 percent to 9,651 units in the same period. The bus market also decreased 31 percent to 549 units. The total heavy commercial vehicle market constricted 29 percent.

Made in Turkey Economic Newspaper, May 2012

Government to reveal R&D incentives in IT NKARA - Minister Binali Yıldırım hosts a child in his office within

the scope of the April 23 ceremonies. The government plans to boost investments in IT research-

Turkish Minister Binali Yıldırım

es, Yıldırım says. Research and development (R&D) projects in the information technology (IT) industry will receive incentives between 100,000 to 3 million Turkish Liras, Transport Minister Binali Yıldırım said. “Individual and institutional projects will be supported. The amount of the research and development support will vary between 100,000 and 3 million liras, leaving the field clear for young entrepreneurs. We are targeting as many entrepre-

neurs and institutions as possible to make the most [of this incentive],” he said, adding that related regulation is being finalized. Noting that internet had become a new member of the nuclear family consisting of mother, father and child, Yıldırım said the emergence of information technologies had led to new cultural and business fields. Investment in this industry produces new jobs and has a strategic significance, he said. Individual or institu-

tional entrepreneurs in the electronic communication field, will receive research and development support of 50 to 100 percent of projects, particularly for the aeronautics and space industry. Yıldırım said around 7 or 8 billion liras of research and development support is planned to be allocated in the medium term. “If 10 in 100 projects are [proved to be profitable], then everyone in all our country will win. We will mind what we earn, not what we loose. In no industry can one earn mil-

lions of dollars with very little or no capital, except for information technology,” he said. The size of the industry in Turkey is currently about $34-35 billion, he said, adding that some 2.5 billion people use the Internet, with a total economic size of $2.3 trillion. “The number of Internet users will exceed 3 billion and the economic size will be over $4.2 trillion by 2016, according to estimates. You cannot just remain static in such an active and fast growing industry.”

Turkey to transfer know-how to Azeris AKU -Turkish Industry Minister Ergün shakes hands with Azerbaijan’s President Aliyev during his Baku visit on April 27. Both countries want more partnerships. Turkey and Azerbaijan need to produce more partnerships in energy, transportation, defense, Information Technology (IT) and satellite technology fields, the President

of Azerbaijan told Turkish Industry and Technology Minister Nihat Ergün during the latter’s visit toBaku on April 27. “IT is one of the most important areas of the future. The defense industry now runs on IT. We need to form strong partnerships in the area of satellite technology and industry,” said President Ilham Aliyev, adding that the two countries could

also sign an important deal in the energy sec-tor. Turkey has taken important steps to strengthen its industrial infrastructure, said Ergün. “We are ready to transfer our expertise in the areas of technology develand research and devel opment to Azerbaijan,” said Ergün. He offered to share Turkey’s knowledge

in the areas of developing organized industrial zones and support of small and medium

size enterprises (SMEs). Aliyev said that Azerbaijan would like to partner

with Turkey in these two key areas as well, but that they were still only at the beginning of the road.

İzmir eager to host ‘Summer Davos’

ZMİR - A suggestion to host a “summer Davos” economic forum in İzmir has received a lot of interest from government officials, according to the executive board director of the İzmir Chamber of Trade (İZTO). Ekrem Demirtaş made

the suggestion at last week’s 15th Eurasian Economic Summit while also noting the widespread support for İzmir’s candidacy to host EXPO 2020. Demirtaş said in a written statement that 13 country presidents (nine of whom are former presidents), attend-

ed a workshop titled “Hunger, Poverty and Unemployment” as part of the Eurasia Summit and shared their views that these were the fundamental challenges facing the globe. “There is a real deterioration in income distribution. We are also utilizing resources at a

much faster pace. Like the presidents said, we have to put an end to discord and take quicker action,” said Demirtaş. Demirtaş said it was time that everyone faced these global issues and that only cooperation and harmony could help solve such problems.

Babacan: Retirement help will not hurt budget

STANBUL - Support in individual retirement will raise domestic savings, says Babacan. The government contribution to the individual retirement system is not large enough to cause a disruption in the budget balance, Deputy Prime Minister Ali Babacan said, as he was leaving for the U.S. to attend World Bank and International Monetary Fund meetings. He will then attend G-20 economy and trade ministers’ meeting in Mexico. The total amount of government contribution to the individual retirement system is not certain, as it will be based upon the amount of money citizens will deposit in it. The government will contribute 25 percent of the amount an individual deposits in the pension system. This government contribution will be deposited in a separate account. The system will increase total domestic savings, Babacan said, adding that one lira of government spending on the individual retirement system would result in four liras of savings. “Budget discipline is a tool in the fight against the current account deficit. If we increase savings 4 lira by spending 1 lira from the budget, and thus decrease the current account deficit, it is something that should have already been done,” Babacan said.