SAYI 4
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SAYI 4
YOUR COMPLIMENTARY COPY SPECIAL REPORT The first visionary strategy developed by private sector BRIEFING How three global giants decided to invest in Turkey EXCLUSIVE INTERVIEW MAY-JUNE 2011 ISSUE 4 ECONOMY BUSINESS FOREIGN TRADE ANALYSIS TURKEY TO SET BALANCE AND DIRECTION Standing out with its economic and political advances, Turkey is rising to a task of being a provider of strength and balance within its region Stephen Kinzer, on Turkey and its role of being a regional power The Turkish Perspective Contents 05 | Positive Revision to the Exports Target 06 | A’ Design Award 07 | Automobile Sales Rose 82.9% 08 | Turkey Leads in Growth for First Quarter Steel Production 09 | E-Trade Grew 45% 10 | Global 2000 List Features Turkish Companies 11 | Turkey Sixth in Europe in High-Speed Trend 50 IN DEPTH MOVING TOWARD 2023 Turkish Exporters Assembly announced its exports strategy and targets for 2023. Exports target of 500 billion dollar seems to be modest as the sectors are exceeding their short-term goals 34 COVER CENTENNIAL ASPIRATIONS CE 00 Pr President of Turkey Abdullah Gül spoke about the ambitious goals that Turkey has set in a large number am RIoHOGVIRUWKHQH[WWHQ\HDUV RI 12 PANORAMA 14 BRIEFING THE TURKISH ECONOMY IN 2011 14 | ANATOLIA: A LAND TURNING 24 | STRATEGIC DECISIONS IN From the Hittites to Rome, and from Byzantium to the Ottomans... It is always mealtime in Anatolia 7KHTXLFNUHpH[HV7XUNLVK$LUOLQHV GLVSOD\HGoUVWLQWKH0LGGOH(DVW and then in the disaster in Japan are a crisis management success Growth based on domestic demand peaked in 2010 inspite of WKHKLJKEXGJHWGHoFLWEURXJKWE\ high growth FOOD INTO ART 18 | WILL THE LUSTER OF MARBLE REFLECT UPON EXPORTS? The Turkish marble and natural stone sector aims for 4 billion dollars of exports until 2015 20 | WEALTH COMING FROM DEEP Geothermic zones, which have been known since long ago but were never been utilized fully, are going to be an important investment area in Turkey 22 | TURKEY’S NATURAL ATTACK 12 Wood and Forest products sector is developing maintaining the balance 00 CRITICAL TIMES 26 | TURKEY IS PREPARING TO WRAP UP THE WORLD 26 Having cast off the stagnation of the crisis, the packaging sector is expanding its goals 28 | THE GRANARY OF THE WORLD One of the world’s top producers and exporters of legumes, Turkey is entering a period of courageous international promotion 30 | NATURE IS CHANGING FASHION Turkey is among the countries with a promising future in organic textiles, the fastest-growing subsegment of the textile sector 30 01 02 Contents MANAGEMENT PUBLISHER ON BEHALF OF TURKISH EXPORTERS ASSEMBLY/ PRESIDENT OF THE TURKISH EXPORTERS ASSEMBLY MEHMET BÜYÜKEKŞİ 32 | “WE CAME NOT TO LOOK, BUT TO STAY” MANAGER IN CHARGE MUSTAFA MENTE Investment and cooperation agreements announced within less than one month are all important indicators providing hints on how the year 2011 will go 42 IN DEPTH 42 | LOGISTICS: ATLAS’S NEW RIVALS The Turkish logistics sector has managed to draw worldwide attention thanks to the success it achieved in recent years 60 BRANDS 60 | ATOP SEVEN LAYERS OF PUBLICATION BOARD M. ILKER AYCI, BÜLENT AYMEN, İBRAHİM BURKAY, MUSTAFA ÇIKRIKÇIOĞLU PhD, ALİ NEDİM GÜRELİ, AHMET KELEŞ, TEMEL KOTİL PhD, ŞAHİN OKTAY, TAHSİN ÖZTİRYAKİ PUBLICATION MANAGEMENT 46 OPINION PRESIDENT SERKAN ÜNAL GROUP COORDINATOR MEHMET MÜCAHİD DEMİR Turkey’s Goodwill Ambassador The award-winning author, Stephen Kinzer, spoke about the increasing role of Turkey in its region to the Turkish Perspective CIVILIZATION 60 63 | TURQUOISE AND CORAL RED 66 | THE MODERN RECIPE OF TRADITIONAL HALVAH Having brought halvah—a sixhundred-year-old delicacy—to the current era, Koska is now making plans for international expansion FINANCE COORDINATOR SELİM KARA EDITORIAL 7KH0LQLVWHURI&XOWXUHDQG 7RXULVP(UWXþUXO*ËQD\WROG The Turkish Perspective about Turkey’s touristic potential, and how this potential could be effectively put to use The crafting of “çini,” earthenware items decorated with glazes and traditional Turkish motifs, is Anatolia’s oldest artisanal handicraft COORDINATOR BAHA YILMAZ EDITOR IN CHIEF SERDAR TURAN EDITOR CEYHAN AKSOY REPORTERS AYŞEGÜL SAKARYA, F. EMRE YILMAZ, GAMZE GÖREN, GÜNEŞ KÖMÜRCÜLER, MEHMET ERDOĞAN ELGİN, NESRİN KOÇASLAN, SİNAN KOPARAN, MERVE KARA, TOLGAHAN ÖZKAN ENGLISH EDITOR ALTAN ORHON DESIGN 42 69 AGENDA FAIRS, EXHIBITIONS, SUMMITS, MEETINGS IN THE NEXT TWO MONTHS 71 FIGURES THE RISE OF TURKISH AUTOMOTIVE SECTOR 67 | ZORLU’S JOURNEY IN TEXTILES COMPETITIVENESS INDEX Behind the success of Zorlu GROUP DESIGN DIRECTOR N. EMRAH YÖRÜK DESIGN DIRECTOR ÖZKAN ORAL DEPUTY DESIGN DIRECTOR AHMET ÇELİK PHOTO EDITOR ŞEREF YILMAZ CONTRIBUTORS PROF. DR. ASAF SAVAŞ AKAT PRINTING BİLNET MATBAACILIK BİLTUR BASIM YAYIN VE HİZMET A.Ş. DUDULU ORGANIZE SANAYİ BÖLGESİ 1.CADDE NO: 16, ESENKENT – ÜMRANİYE 34476 - İSTANBUL TEL: Z798=[;;;;;::cwww.bilnet.net.tr Textiles—one the world’s top home textile producers— lies VSHHGpH[LEOHSURGXFWLRQDQG R&D CONTACT [email protected] www.infomagyayincilik.com Neither text nor photographs from this publication may be reproduced either in full or summary without acknowledging the source and without prior permission from the publisher. MAY-JUNE 2011 ISSUE 4 The Turkish Perspective Editorial MEHMET BÜYÜKEKŞİ PRESIDENT (TIM) TIM HAS DRAWN OUT TURKEY’S 2023 ROAD MAP Behind the great progress shown by Turkey’s economy lie the deep changes occurring in exports and intelligent steps taken by Turkish companies on the matter of integrating with the global economy E ACH PASSING DAY, we see that more Turkish companies are successfully holding their own in the global arena. Putting the advantage of Turkey’s unique geopolitical position to very good use, Turkish companies are both engaged in production for the domestic market appealing to the dynamic Turkish population, and are experiencing the advantages to a demographic structure quickly growing in highly varied geographies. As the Turkish Exporters Assembly, we want to carry the great success exhibited by Turkish exporters in recent times ever forward with a long-term vision. Turkey’s exports gained great momentum in the past ten years. As a result of this, Turkish exporters reached their 114 billion dollar export target in 2010. The export target we, as TIM, have set for 2023— the centennial of the Republic of Turkey—is 500 billion dollars. To this end, we have brought the “2023 Turkey Export Strategy” to life. A orst has occurred in Turkey a nongovernmental organization in Turkey has worked with the public to create a longterm strategy for the whole country. Our goal is for Turkey to adopt an export-based model in its development. And we, with this study, have drawn its road map and determined its route. The most important aspect of this project, which has been in the works for close to 1.5 years, is that instead of being a static project, it is a project that is highly dynamic and will be pursued by being updated year by year. This project will be alive constantly in the process leading up to the year 2023. We will reassess the strategy each year. Our goal for this project is for Turkey to take its place within the world’s top ten largest economies, and to raise Turkey’s exports revenue to 500 billion dollars in 2010 as a way to accomplish this. We determined 18 strategic targets in order to achieve this goal. For these 18 strategic targets, we created 72 criteria. For these criteria, we determined levels of success. In order to reach our goal, we will measure these 72 criteria each year. We will immediately where we fell behind and where we came out ahead. In addition to the macro goals we have determined, we have also conducted a study for all exporting sectors in Turkey. We have determined the strategic priorities for our 24 exporting sectors one by one. We have set their criteria. We will measure these criteria each year too. Thus, on both the macro and sub-sector planes, we will have the chance to measure how well Turkey’s exports strategy is going on an annual basis. Our greatest strategic target in our 2023 study is that we are aiming for sustainable growth and stable increases in exports for Turkey. We will increase our existing market shares in exports to this end. By reaching target markets with high growth potential, we will increase our market shares there. We will increase the number and capacity of exporters in Turkey. We will increase our exporters’ competitive ability in the global oeld through sectorial leadership, science, technology, and innovation. We will provide timely and active solutions to the needs of exporters. We will increase awareness of Turkish brands. We will draw export-oriented foreign capital and investors to our country. We will encourage investments in and the application of innovation and R&D. We will strengthen bilateral and multilateral commercial cooperation. We will secure effective legislation and legal arrangements. We will ensure the active and productive use of onancial instruments and tools of commercial support. We will move from low skill to highly productive and skilled human capital. We will ensure speedy access to accurate information and market intelligence. We will harmonize relations between the public, private sector, NGOs, and universities. Finally, we will provide active strategic governane. The Turkish government has taken this project under its wing. All political factions, from the ruling party to opposition parties, are behind our project. We believe that this project is an effort that transcends the political. Thus, the project is coming to life as a common project for all of Turkey. We believe that this project is of critical signiocance for Turkey’s future, and that it possesses the vision that will make Turkey skip a league. Turkey will strengthen its position within the world with its new export strategy, and it will elevate its image as a leader and visionary country in its region ever higher. 03 05 Contents:3RVLWLYH5HYLVLRQRIWKH([SRUWV7DUJHWP05$ 'HVLJQ$ZDUGP06 Automobile Sales Rose 82.9% P0 7 Turkey Growth Leader for First Quarter Steel Production P08 E-Trade Grew 45% P0 9 Global 2000 List Features 12 Turkish Companies P10 7XUNH\6L[WKLQ(XURSHLQ+LJK6SHHG7UHQGP11 Editor: Ceyhan Aksoy First EXPORTS, SPONSORSHIPS, PARTNERSHIPS, INFORMATICS, IRON & STEEL, AUTOMOTIVE, COMPETITIVENESS... Prime Minister Recep TZrrip Er]húZn commends the 500 billion dollar exports target and promises to lniihkmbmbg^o^krpZr POSITIVE REVISION TO THE EXPORTS TARGET Even 545 billion dollars seems to be a modest target for 2023–increasing kZm^lh_^qihkmllb`gZeab`a^kÖ`nk^l M EHMET ;~R~DEDüû% President of the Turkish Exporters Assembly (TIM), said they aimed for a 12% increase in exports for 2011, but that the data for the oUVWWKUHHPRQWKVRI the year indicated that a 20% increase will occur by the end of the year. 7KXV%Ë\ËNHNûLVWDWHG they will exceed 2008’s record 132 billion dollar H[SRUWoJXUH$QQRXQFLQJDURDGPDSUHODWLQJ to the 500 billion dollar WDUJHWVHWIRU %Ë\ËNHNûLVDLGk:H have aimed for a 12% consecutive increase HDFK\HDULQFOXGLQJ this year—until 2013. This is what we now expect, and that is how it appears from the way WKLQJVDUHJRLQJWKHUH was an increase of 23% RQDYHUDJHIRUWKHoUVW three months, and there will be an increase of WKLV\HDU:HZLOO also exceed the 132 billion dollars of 2008; we will match that record WKLV\HDUy6WDWLQJWKDW exports were affected QHJDWLYHO\LQWKH0LGGOH (DVWDQG$IULFDUHJLRQ where internal turmoil KDVEHHQRFFXUULQJ %Ë\ËNHNûLVDLGk+DG sales to these nine countries not been affected, exports would have increased 4% more in February, and 5% more LQ0DUFKy%Ë\ËNHNûL noted that they have revised the 500 billion GROODUH[SRUWVWDUJHW for 2023 as 545 billion GROODUV$FFRUGLQJWR %Ë\ËNHNûL VVWDWHPHQW imports will be 625 billion dollars in 2023. The ratio of exports PHHWLQJLPSRUWVZLOO rise to 80%. Statements made by TIM directors and incomes not recorded by TIM, on the other hand, show that Turkey’s exports to imports ratio will be much KLJKHU$VKDUHRI Turkish Airlines’ income LVLQIRUHLJQFXUUHQF\ and comes from abroad. +RZHYHUWKLVGRHV not appear on TIM’s account of exports due to the records system. Income made from tourism is not consid- ered to have been made from exports either, but it does reduce the EXGJHWGHoFLW0XVWDID ®NUN¹RþOX7,0'HSuty President and Board Member of the Steel Exporters’ Union, said, k7KLVELOOLRQGROODU WDUJHWLVDPRGHVWWDUJHW It will be exceeded. For example, the iron and steel sector’s 2023 WDUJHWDSSHDUVDVELOlion dollars, but with the new investments made, we already think that it ZLOOUHDFKqELOOLRQ dollars.” $FFRUGLQJWR %Ë\ËNHNûL VVWDWHPHQW the share held by TurNH\LQJOREDOWUDGHVWLOO 0.8%, will rise to 1% in 2013, 1.15 in 2018%, and 1.58% in 2023. Turkey, which has EHHQWKHWKODUJHVW economy of the world as of 2010, ranks 31st in exports, and its share LQKLJKWHFKQRORJ\ SURGXFWVLV,W is calculated that the ZRUOGJRRGVWUDGHZLOO be 16.1 trillion dollars LQWULOOLRQLQ 2018, and 34.3 trillion in 2023. The share Turkey is to take was FDOFXODWHGDFFRUGLQJWR WKHJURZLQJYROXPHRI trade. 06 First DESIGN =k'AZdZg@klnl^mllZbemhpZk]bgghoZmbhgbg]^lb`gpbma abl\hfiZgr%=^lbg`ggh[bl D OES RECEIVING 40 DESIGN awards, 26 of WKHPLQWHUQDWLRQDOZLWKLQOHVVWKDQoYH \HDUVVHHPH[DJJHUDWHG"+DUGO\LI\RXZHUHWR DVN+DNDQ*ËUVXIRUKLPLWZDVHYHQDOLWWOH late. A faculty member at Middle East Technical 8QLYHUVLW\'U+DNDQ*ËUVXWKHoUVWGHVLJQHU WREULQJWKH,QWHUQDWLRQDO'HVLJQ$ZDUGVUHJDUGHGDVWKH2VFDUVRIGHVLJQWR7XUNH\ KDGUHFHLYHGoUVWSUL]HLQWKHFDWHJRULHVRIERWK nautical as well as all transport vehicles for VoliWDQDVKLSFDSDEOHRIWXUQLQJRQDSRLQWDPRQJ the 1,438 projects which were entered that year. Later, he continued his ride at the top by receivLQJD*UHHQ'RWIRUKLVVRODUSRZHUHGIROGLQJ ship—Foscat. Most recently, the announcement RIWKHUHVXOWVRIWKH$ 'HVLJQ$ZDUGDQG&RPSHWLWLRQDGHVLJQFRQWHVWWKDWZDVRUJDQL]HGIRU WKHoUVWWLPHWKLV\HDUE\WKH%XUHDXRI(XURSHDQ'HVLJQ$VVRFLDWLRQVDQGZKLFKDLPVWREHWKH newest and most comprehensive in Europe—in April was cause for similar excitement for Gürsu, KLVFUHZDW'HVLJQQRELVDQG7XUNH\DVDZKROH DOLNH,QFUHDVLQJWKHUHFRJQLWLRQRIDQGGHYHORSLQJLQQRYDWLRQDQGGHVLJQDELOLW\LQWKH(8DUH WKHPDLQJRDOVVHWE\%('$ZKLFKKDV(XURpean member countries, for the competition. :LWKWKHDLPRIVKRZLQJRII(XURSH VGHVLJQ DELOLW\WRWKHPDVVHVDQGWDNLQJLWWRJOREDO markets, the competition works to unearth the EHVWQHZGHVLJQVGHVLJQFRQFHSWVDQGGHVLJQ RULHQWHGQHZSURGXFWVZKLOHDOVRDVVHPEOLQJLQWHUQDWLRQDOFRPSDQLHVGHVLJQHUVDQGLQQRYDWLYH LGHDVLQDOOoHOGVRQDIDLUHWKLFDODQGFRPSHWLtive platform. MAY-JUNE 2011 ISSUE 4 Dr. Hakan Gürsu and his team Designnobis have won 40 design awards in less than Öve rears Foscat is a solar ihp^k^]%_he]bg` rZ\ammaZmk^\^bo^] a Green Dot :pZk]bg+))1 PHOTORAPH AHMET ōLAL ARSLAN A’ DESIGN AWARD 'U*ËUVXDQG ' 'HVLJQQRELVWKH 'H GHVLJQFRPSDQ\KH GHV founded in 2006, were fou deemed worthy of a todee tal of seven awards in the competition, which JDYHDZDUGVWRWKHEHVW GHVLJQVRILQ VHSDUDWHFDWHJRULHV UDQJLQJIURPIXUQLture to transport, toys, and illumination. The awards received are as IROORZV v)LUVWSODFHIRU )RVFDWWKHIROGLQJHQvironmentally friendly nautical vehicle, in WKHFDWHJRU\RIYHKLFOH and transportation GHVLJQDVZHOODVLQWKH JHQHUDOUDQNLQJ v6HFRQGSODFHIRU )LUH.QLJKWWKHoUH H[WLQJXLVKLQJYHKLFOH of the future—in vehicles and transportation, and third in the JHQHUDOUDQNLQJ v)LUVWSODFHIRU Aquarius in toy and UHFUHDWLRQGHVLJQDQG UHFUHDWLRQGHVLJQDQG second place for Power Tower, a wooden toy se set. v)LUVWSODFHIRU/63 DOLJKWLQJXQLWLQWKH FDWHJRU\RIHOHFWULFDO DQGHOHFWURQLFGHVLJQ v7ZR$ 'HVLJQ Awards in the furniWXUHFDWHJRU\IRU)ORJHUZKLFKLVDIROGLQJ FKDLUDQG%HHWOLQJ an environmentally friendly bench. Gürsu and his crew 'HVLJQQRELVUDQNLQJ oUVWLQWHUPVRIWRWDO awards won in the FDWHJRULHVRIGHVLJQHU DQGoUPUHVSHFWLYHO\ accomplished a major IHDWE\ZLQQLQJ GHVLJQDZDUGVRI them international, within 54 months. The crew, which has many awards from previRXVOHDGLQJGHVLJQ competitions such as the International 'HVLJQ$ZDUG,'$ DQG*UHHQ'RWSURYHG LWVHOIRQFHDJDLQDWWKLV competition. Ma^MnkdblaI^kli^\mbo^ INFRASTRUCTURE AUTOMOTIVE Automobile Sales Rose 82.9% Pabe^Znmhfhmbo^lZe^llakbgdbgfhlmh_ma^>N \hngmkb^l%Mnkd^r^qab[bmlZk^\hk]bg\k^Zl^ AVIATION DUSSELDORF MEETING Attended by airlines DQGWUDYHODJHQFLHV the Business Travel DQG0HHWLQJV6KRZ was held recently LQ'ËVVHOGRUI$ square-meter stand erected by Turkish $LUOLQHV 'ËVVHOGRUI 2IoFHGD]]OHGYLVLWRUV WRWKHIDLU'XULQJ the fair, participants were briefed on the VLJQLoFDQWDGYDQWDJHV WRWKHLUWUDYHOEXGJHWV RIIHUHGE\DoUPOLNH Turkish Airlines that never compromises on quality, as well as the discounted fares, excess EDJJDJHDOORZDQFH corporate club card and other advanWDJHVDYDLODEOHWRRXU FRUSRUDWHSDVVHQJHUV who are members of the Turkish Corporate Club. W hile automobile sales in Europe shrank in the oUVWTXDUWHURIWKH\HDUFRPpared to the same period last year, sales in Turkey rose by 82.9 LQWKHoUVWTXDUWHURI $FFRUGLQJWRGDWDUHOHDVHGE\ WKH$XWRPRWLYH'LVWULEXWRUV $VVRFLDWLRQ2''(XURSHDQ FRXQWULHV(8H[SHULHQFHGD VKULQNDJHRILQ0DUFK as compared to March 2010, UHVXOWLQJLQDPDUNHWQXPEHULQJYHKLFOHV*UHHFH fell the hardest last month with 55.2%, and it was followed by Spain with 29.1% and Italy ZLWK3RUWXJDO(QJODQG and Poland were other counWULHVH[SHULHQFLQJVKULQNDJH :KLOHWKHWRSWKUHHFRXQWULHV to increase their sales in March over the same time in 2010 were Latvia with 161.4%, Lithuania with 118.8%, and Estonia with 86.9%, automobile sales in Turkey exhibited an increase of 59.1% for a total of 54,023 YHKLFOHV7XUNH\UDQNHGHLJKWKLQ (XURSHZLWKWKHVHVDOHVoJXUHV Total European automobile sales LQWKH-DQXDU\q0DUFKWHUPRI 2011, on the other hand, shrank 2% compared to the same period ODVW\HDUIDOOLQJWR YHKLFOHV$JDLQ3RUWXJDO (QJODQGDQG3RODQGZHUHRWKHU countries to experience shrinkDJH7KHKLJKHVWLQFUHDVHLQDXWR VDOHVLQWKHoUVWTXDUWHURIWKH year occurred in Latvia at a rate RIIROORZHGE\/LWKXDQLD and Estonia at rates of 108.5% and 103.1% respectively. ZAFER REGIONAL AIRPORT TO BE COMPLETED IN TWO YEARS =DIHU5HJLRQDO$LUSRUW which is to be built in WKH$OWQWDûGLVWULFW of Kütahya with the build-operate-transfer and will be Turkey’s oUVWUHJLRQDODLUSRUW is planned to be completed in two years. 9H\VHO(URþOXWKH Minister of Environment and Forest, said, k)LUVWFKDUWHUpLJKWV abroad are aimed to be made from Zafer 5HJLRQDO$LUSRUW after which scheduled pLJKWVZLOOVWDUWy,W LVWKRXJKWWKDWWZR PLOOLRQSDVVHQJHUVRQ domestic and interQDWLRQDOpLJKWVZLOO DQQXDOO\SDVVWKURXJK the airport, which LVH[SHFWHGWREULQJ economic activity to thermal tourism centers in Kütahya, Afyonkarahisar, and 8ûDNDQGWRFRQWULEXWHWRWKHRSHQLQJRI WKH)ULJ9DOOH\WRWRXULVP=DIHU5HJLRQDO Airport will be Turkey’s IRXUWKODUJHVWDLUSRUW TOWARD THE CENTENNIAL TARGET According to March 2011 data released by TIM; 20.8 33.4 15.8 38.4 15.4 33.3 INCREASE IN EXPORTS OF AGRICULTURAL PRODUCTS OVER MARCH 2010 INCREASE IN CHEMICALS EXPORTS OVER THE SAME PERIOD LAST YEAR READY TO WEAR INDUSTRY EXPORTS REACHED 1,429,689 DOLLARS IN MARCH 2011 INCREASE IN MACHINERY SECTOR EXPORTS OVER MARCH 2010, REACHING 717,640 DOLLARS INCREASE IN AUTO INDUSTRY EXPORTS OVER LAST YEAR, RISING TO 1,955,270 DOLLARS INCREASE IN STEEL INDUSTRY EXPORTS, ACCOUNTING FOR A 1,390,585 DOLLAR SHARE 07 06 First 08 REGIONAL DEVELOPMENT FOREIGN AFFAIRS INDUSTRY MOVES PARTIALLY TO THE EAST RELATIONS WITH AFRICA WARMING UP Ma^bg]nlmkbZelab_mmhpZk]^Zlm^kg k^`bhglaZlfn\afhk^mhh__^kmaZg incentives I N ITS REPORT ti- WOHGk7KH)LUVW6WHS IRU5HJLRQDO,QGXVWU\ 6WUDWHJLHVLQ7XUNH\ &HUWDLQ2EVHUYDWLRQV RQWKH5HJLRQDO'LIIHUences of Production,” the Economic Policy Research Foundation of Turkey (TEPAV) stated that industrial activities have shifted, if only in part, from west WRHDVWDGGLQJWKDWWKLV inclination is as positive for Turkey as a whole as LWLVIRUHDVWHUQUHJLRQV UDLVLQJWKHLPSRUWDQFH RIUHJLRQDOGHYHORSPHQWDJHQGDV,WZDV explained in the study that Turkey’s economic success will develop ODUJHO\LQSDUDOOHOZLWK its establishment of UHJLRQDOFRPSHWLWLYHDELOLW\VWUDWHJLHV and the way these will feed the national LQGXVWULDOVWUDWHJ\ which will require the UHJLRQDOFKDUDFWHULVWLFV of production to be unGHUVWRRG3RLQWLQJRXW that there is a notable tendency for industry to move from the west of the country to its east on examination RIWKHVL]HRILQGXVWULDO institutions, sectorial distribution, and the structure industrial of production in the disWLQFWLRQEHWZHHQkGHYHORSLQJSURYLQFHVyDQG kGHYHORSHGSURYLQFHVy the study states that the industrial sector’s tendency to shift toward UHJLRQVZKHUHFRVWVDUH lower offers important DGYDQWDJHVSDUWLFXODUO\IRUUHJLRQVWRWKH east of Ankara, when considered with the DGYDQWDJHVFUHDWHGE\ the incentives system. In its conclusion, the study explained that the 5HJLRQDO'HYHORSPHQW $JHQFLHVKDYHLPSRUtant roles to play in the national coordination and development of WDQJLEOHUHJLRQDOSODQV WKDWLQFOXGHUHJLRQDO LQGXVWU\VWUDWHJLHV created in a participatory manner with the consideration of both local conditions and JOREDOWHQGHQFLHVRIWKH DJHQGDVRIFRPSHWLWLRQ IRON & STEEL Turkey Leads in Growth for First Quarter Steel Production Lm^^eikh]n\mbhgbg\k^Zl^]1'1bgma^ ÖklmjnZkm^k`eh[ZeerZg][r,*bg Mnkd^r In March, world production of raw steel rose by IURPPLOOLRQWRQVWRPLOOLRQWRQV Turkey, which increased its production by 24.9% IURPPLOOLRQWRQVWRPLOOLRQWRQVDFFRUGLQJ WRSURGXFWLRQoJXUHVIRU0DUFKZDVDPRQJWKH WRSODUJHVWSURGXFHUVRIVWHHOLQWKHZRUOGDQG WKHFRXQWU\WRPRVWLQFUHDVHLWVSURGXFWLRQDPRQJ WKHODUJHVWVWHHOSURGXFHUV 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Country 2011 2010 % Change China Japan USA India Russia South Korea Germany Ukraine Brazil Turkey Italy Taiwan Spain Mexico France Total 59,418 9,092 7,101 6,350 6,160 5,762 4,026 3,050 3,020 2,734 2,575 1,770 1,621 1,550 1,426 129,343 54,521 9,341 7,112 5,845 5,735 5,037 4,022 3,057 2,829 2,189 2,371 1,569 1,616 1,479 1,476 120,897 9.0 -2.7 -0.2 8.6 7.4 14.4 0.1 -0.2 6.8 24.9 8.6 12.8 0.3 4.8 -3.4 7.0 DATA: TIM MAY-JUNE 2011 ISSUE 4 2UJDQL]HGE\WKH )H\]L\H0HNWHSOHUL )RXQGDWLRQ V,ûN LWPHDQVC/LJKW LQ Turkish) Schools, the VHFRQGk+ROGLQJ8S$ /LJKWWR6SRUWVyDZDUGV ceremony took place at WKHVFKRRO V1LûDQWDû Campus. Turkish Airlines was named k6SRQVRURIWKH<HDUy at the ceremony, where 'LUHFWRURI&RUSRUDWH 'HYHORSPHQW=HNL Çukur accepted the award on behalf of the airline. &LWL]HQVRIWKH SAGA countries (countries of subSaharan Africa) who p\7XUNLVK$LUOLQHV will be able to obtain visas at Ataturk Airport provided they already KROGYDOLG6FKHQJHQ UK, or US visas. The new implementation will contribute to the development of trade relations between Turkey and the FRXQWULHVRIWKHUHJLRQ The international OLQH9,3/RXQJH VHUYLQJ7XUNLVK Airlines’ Business Class SDVVHQJHUVLVEHLQJ renovated and will be closed as of April 4 for WKHDOWHUDWLRQV'XULQJ the renovation Business &ODVVSDVVHQJHUVZLOOEH VHUYHGLQWKH<DS.UHGL /RXQJHDQGDVDWHOOLWH ORXQJHWKDWLVEHLQJ readied in front of it. 7KHQHZ9,3/RXQJH LVJRLQJWREHWZLFHWKH VL]HRIWKHH[LVWLQJRQH Ma^MnkdblaI^kli^\mbo^ E-COMMERCE E-Trade Grew 45% >&MkZ]^li^g]bg`i^kink\aZl^bgJ*+)**aZl [^^g*0+ebkZl AVIATION ILLUSTRATION Y NECōP ʼnAHōN DIYARBAKIR MOVES UP IN COMPETITIVENESS Ma^\bmr^qab[bm^] the greatest improvement along pbmaShg`ne]Zd WE SUPPORT TURKISH SPORTS Turkish Airlines is FRQWLQXLQJLWVVXSSRUW for Turkish football DWHYHU\OHYHOVWDUWLQJ with the country’s National A-Team. As part of its recently renewed Primary 6SRQVRUVKLSDJUHHPHQW with the Turkish Football Federation (TFF), Turkish Airlines LVFRQWLQXLQJWRVWDQG by all Turkey’s National Football Teams. The k2IoFLDO6SRQVRUy RIWKH%HûLNWDû %XUVDVSRU)HQHUEDK¹H Galatasaray and 7UDE]RQIRRWEDOO clubs, the airline recently extended its VSRQVRUVKLSDJUHHPHQW with the TFF for another two years, VHUYLQJ7XUNH\ V\RXWK and its future as a permanent sponsor of sports. Primary sponsor of the Turkish Basketball Federation as well, Turkish Airlines supports sports WKURXJKLWVVSRQVRUVKLS RIGLIIHUHQWVSRUWV federations. At the individual level, the airline also backs athletes like Enis <OPD]HUDQGúDKLND Ercümen, who represent Turkey and chalk up records at international events. COMPETITIVENESS A HVVXFKDVWKRVHIRUoWQHVVJ\PV DQGUHVWDXUDQWVUDQNHGoUVW$LU data released by the InterWUDYHOZDVDJDLQDPRQJWKHVHFbank Card Center (BKM), revtors in which e-trade was most enues from e-trade increased by active. Air travel purchases made LQWKHoUVWTXDUWHURI XVLQJFUHGLWFDUGVRYHUHWUDGH over the same period last year, LQWKHoUVWWKUHHPRQWKVRI UHDFKLQJDYROXPHRI DYHUDJHGOLUDVSHUSXUFKDVH liras. The data indicates that 7KHIROORZLQJZDVVWDWHGLQWKH DQDYHUDJHRIWUDQVDFWLRQV DQQRXQFHPHQWk2QHRIWKH occurred per minute on e-trade areas in which we made the ZHEVLWHVWKURXJKWKHoUVWWKUHH most e-trade purchases with PRQWKVRI7DNLQJLQWR our credit cards was electronic account that the increase in purJRRGVDQGFRPSXWHUV/RRNLQJ FKDVHUHYHQXHVZDVKLJKHUWKDQ at the purchases we made of that of transactions procHOHFWURQLFGHYLFHVUDQJessed, it appears that LQJIURPFHOOSKRQHVWR costlier products were ODSWRSV'9'SOD\HUV more often chosen DQGJDPLQJFRQVROHV IRUHWUDGHVSHQGLQJ it was observed that WKLV\HDU$FFRUGLQJ AVERAGE TRANSACwe spent 190 liras to the data, spendTIONS PER MINUTE ON E-TRADE WEBSITES per transaction. Men LQJSHUSXUFKDVHLQ RSWHGIRUHOHFWURQLFJRRGV 4ZDVOLUDV and auto accessories the most, /RRNLQJDWSXUFKDVHVPDGH while women opted for cosmetics on e-trade sites with credit cards and textile products. Computer DFFRUGLQJWRWKHGDWDIRUWKH hardware, computers, cellphones, period, the service sector appears HOHFWURQLFJRRGVVHFRQGKDQG to lead the pack. The sector’s wares, sports equipment, and revenues increased by 96% over auto accessories were the prodthe same period last year, reachucts most often chosen by men, LQJPLOOLRQGROODUVZKLOH while cosmetics and textiles were transactions processed exhibited the products most often chosen a 63% increase. Service sector by women.” purchases, with e-trade purchasCCORDING TO E-TRADE 217 International Competitiveness Research Institute announced the results of the competitiveness study it conducts each year in Turkey’s 81 provinces. The winner of the study ZDVDJDLQE\DORQJ shot, Istanbul. The city ZLWKWKHKLJKHVWKXPDQ capital and quality of life, on the other hand, is Ankara. The cities movLQJXSZHUH=RQJXOGDN where an airport was RSHQHGDQG'L\DUEDNU which receives the IRXUWKKLJKHVWSXEOLF investment. The two citLHVH[KLELWHGWKHJUHDWHVW improvement in the VWXG\:KLOH$QNDUD UDQNHGoUVWLQWHUPV of human capital and quality of life, Istanbul took second place in this DUHD(VNLûHKLUü]PLU and Antalya were third, IRXUWKDQGoIWKUHVSHFWLYHO\LQWKLVFDWHJRU\ 07 09 06 10 First COMPANIES AVIATION GLOBAL 2000 LIST FEATURES 12 TURKISH COMPANIES Mnkdbla\hfiZgb^l^gm^klma^ik^lmb`bhnleblmlh_ma^ largests T INFORMATION TECHNOLOGIES TURKEY WILL BE A FIBER OPTIC CONNECTION CENTER The Ministry of Transportation has moved into action to make Turkey a center for oEHURSWLFFRQQHFWLRQV used widely in South Korea, Japan, and some European countries, in WKHoHOGRI,73UHSDULQJDGLUHFWLYHIRUoEHU optic backbones to be VHWXSDORQJURDGVDQG UDLOZD\VFRQQHFWLQJWKH country to the world, the Ministry of TransSRUWDWLRQZLOOEULQJ these efforts to life HLWKHULWVHOIRUWKURXJK the Information 7HFKQRORJLHVDQG&RPmunication Authority. 7KH0LQLVWU\SODQQLQJ to request bids for the lines from businesses, ZLOOWKXVEULQJDVROXWLRQWRWKHKLJKFRVWV demanded by local administrations for WKHLQVWDOODWLRQRIoEHU optic cables or base stations associated with the system’s infrastructural backbone. MAY-JUNE 2011 ISSUE 4 welve Turkish companies have been included on the k*OREDOyOLVWUHOHDVHGE\ )RUEHV0DJD]LQH*DUDQWL%DQN KDYLQJDPDUNHWYDOXHRI billion dollars, ranked 324th on the list. Last year, the bank ZDVWKHWKVSRWRQWKHOLVW Garanti was followed by Isbank, UDQNLQJWKZLWKDPDUNHW value of 14.2 billion dollars. Isbank was number 288 on last \HDU VOLVW.R¹+ROGLQJPHDQRank th 324 329th 343rd 367th 459th 630th Company Market Value Garanti Bank Isbank Koç Holding Akbank Sabancı Holding Halkbank 20.1 14.2 10.8 19.8 9.7 9.8 while, appears as 343rd on the list, with a market value of 10.8 ELOOLRQGROODUV.R¹ZDVVW LQODVW\HDU VOLVWLQJV'RþDQ +ROGLQJZKLFKODVW\HDUUDQNHG QGRQWKHOLVWGLGQRW DSSHDULQWKLV\HDU VOLVWLQJ2Q WKHRWKHUKDQG)RUG2WRPRWLY Sanayi entered the list at the 1,946th position. Turkish Airlines, which entered the list as 1,896th this year, has a market value of 29 billion dollars. Rank th 674 753rd 770th 1,222nd 1,896th 1,946th Company Market Value Türk Telekom Vakıfbank Turkcell Enka Turkish Airlines Ford Otosan 15.2 6.1 12.4 7.7 2.9 3.0 IT’S EASIER THAN EVER TO FLY TO THE BALKAN COUNTRIES Turkish Airlines has launched a project GXEEHGk9LVD)UHH Balkans,” aimed at the Balkan countries that require no visa and between which travel LVHDV\:LWKpLJKWV to the capitals of all the Balkan countries, with which Turkey has relations based on 500 years of history, Turkish Airlines is RIIHULQJWUDYHOSDFNDJHV and special fares in conjunction with the project, which encompasses seven Balkan countries. ARTS Free Zone for Film Sets Ma^Öefikh]n\mbhgfZkd^mbgMnkd^rblab`aer]^o^ehi^]Zg]Z_k^^ shg^_hkÖefl^mlpbee[^^lmZ[ebla^]lhhg T URKEY’S RAPIDLYJURZLQJ WHOHYLVLRQDQGoOP VHFWRUKDVEURXJKWWKH establishment of free ]RQHVIRUoOPVHWVWR WKHDJHQGD6WDWH0LQLVWHU=DIHU®DþOD\DQ ZKRVDLGWKDWoOPVHWV DVIRXQGLQ/RV$QJHOHV and Bollywood will be built in Turkey too, VWDWHGk:HZDQWWR build the same as the structure in Bollywood or even the similar sets LQ/RV$QJHOHV7KH oOPPDUNHWLQ7XUNH\ LVKLJKO\GHYHORSHGEXW a serious set is needed IRUFLQHPD2XUHIIRUWV IRUD]RQHFRQWLQXH :HZLOOHVWDEOLVKWKH IUHH]RQH:HZLOOJLYH the required supSRUW:HZLOOSURYLGH a number of tax and social supports to free ]RQHVKHUH:HZLOODOVR provide support on the PDWWHURIVHFXULW\:H will make the necessary contacts in Bollywood on our current visit. All kinds of countries, whichever they are, will come to our country DQGGRWKHLUVKRRWLQJ on the sets in this free ]RQH,QGLDKDVELOlion dollars of exports in services, while we have 34 billion dollars. :HZLVKWRUDLVHWKLV H[SRUWoJXUHWRJUHDWHU KHLJKWVy Ma^MnkdblaI^kli^\mbo^ FOREIGN TRADE AIMING FOR A 50 BILLION DOLLAR TRADE VOLUME =KDQJ2MLQJ\DQJ Istanbul Consul General for the People’s Republic of China, said that the current trade volume between China in Turkey is around 15 billion dollars, and that this volume will reach the level of 50 billion GROODUVLQ6WDWLQJ that both countries KDYHGHYHORSLQJHFRQRPLHV2MLQJ\DQJVDLG k:HZLVKWRGHYHORS cooperation between China in Turkey in every area. In terms of its JHRJUDSKLFVLWXDWLRQ transportation, and tourism, Turkey has a JUHDWDGYDQWDJH SPONSORSHIP EUROPEAN WOMEN’S GOLF TOURNAMENT The third of the EuURSHDQ:RPHQ V*ROI Tournaments that have EHHQRUJDQL]HGE\WKH National Golf Club since 2008 took place May 5-8 with the parWLFLSDWLRQRIJROIHUVIURP DURXQGWKHZRUOG+HOG all over the world, the (XURSHDQ:RPHQ V*ROI Tournament is considered one of the most SUHVWLJLRXVJROIHYHQWV 7KH7XUNLVKOHJRIWKH WRXUQDPHQWLVEHLQJ RUJDQL]HGZLWK7XUNLVK Airlines sponsorship unGHUWKHQDPHk7XUNLVK $LUOLQHV/DGLHV2SHQy TRANSPORTATION Turkey Sixth in Europe in High-Speed Trend Mnkdbla\hfiZgb^l[^`bglmhikh]n\^eh\hfhmbo^l_hk >nkhi^ZgZg]:f^kb\Zg\hfiZgb^l T KLJKVSHHGUDLOZD\V/LNHZLVH URKEY’S FIRST domestic we will rebuild the normal diesel trains have been railways, which have reached introduced to the rails. Turkish NLORPHWHUV:HZLOODOVR 6WDWH5DLOZD\V7&''%RDUG renew 800 kilometers of our Chairman Süleyman Karaman H[LVWLQJUDLOZD\OLQHVHDFK\HDU VDLGk7KDQNVWRRXUPRELas well. Thus, when we enter OL]DWLRQLQUDLOZD\VZHKDYH the 100th year of the Republic, EHFRPHVL[WKLQKLJKVSHHG WUDLQVLQ(XURSHDQGHLJKWKLQ Turkey will be a developed 7XUNH\WKDWKDVJDLQHG the world.” Former Minister of 7UDQVSRUWDWLRQ%LQDOL<OGUP kilometers of modern railways VWDWLQJWKDWUDLOZD\VDUHFKDQJ- east, west, north, and south. LQJWKHFRXQWU\ VIDWHVDLGk:H Then the fact that railways are DUHPDNLQJWUDLQVIRUWKHZRUOG WKHURDGWRDIpXHQFHDQGSURVperity will be experienced WRR7²9$6$úUHFHLYHG in a true sense. Now, orders from Bulas the Turkish people JDULDD(XURSHDQ and Turkish workUnion country. ers, we have become 7²/206$ú a country that best PDGHDQDJUHHKILOMETERS OF RAILWAYS WILL BE heeds the call to do ment with General ADDED BY 2023 ZKDWHYHULVEHLQJGRQH Electric, the worlds’ in developed countries, ORFRPRWLYHVJLDQWLQWKH and we have accomplished this. United States. It will build 50 Now, we even make battleQH[WJHQHUDWLRQORFRPRWLYHV ships. Now, we even make all LQ(VNLûHKLU,WSODFHGLWVoUVW VRUWVRIFRPPHUFLDOVKLSV:H RUGHUIRU(QJODQGWRRDQG PDNHRXUWUDLQVWRR:HPDNH ZHKDYHGHOLYHUHGLWy<OGUP RXUKLJKVSHHGWUDLQVWRR:H LQGLFDWLQJWKDWWKH\KDYHVHW ZLOOPDNHRXUSODQHVDVZHOO:H JUHDWJRDOVIRUWKH5HSXEOLF V ZLOOp\RXUVDWHOOLWHVWRR7KLVLV FHQWHQQLDOVDLGk2YHUWKH the point at which Turkey will next 12 years, we will create arrive, desired by all of us.” close to 10,000 kilometers of 25,000 AVIATION ARBIL ROUTE OPENS Turkish Airlines UHFHQWO\VWDUWHGpLJKWV between Istanbul and the predominantly Kurdish city of Arbil LQ,UDT7KHLQDXJXUDO pLJKWRQWKHDLUFUDIW Safranbolu took off IURP,VWDQEXODW a.m. and landed in ArELODW3UHVHQWRQ WKHpLJKWZHUH)LQDQFH Minister Mehmet úLPûHN(QHUJ\DQG Natural Resources Undersecretary Metin Kilci and Turkish Airlines’ board chairPDQ+DPGL7RS¹XDV ZHOODVDODUJHQXPEHU of businessmen and members of the press. At a ceremony held on WKHDSURQIROORZLQJ WKHODQGLQJDW$UELO Finance Minister úLPûHNRSHQHGKLV talk in Kurdish, continued in Turkish and then concluded DJDLQLQ.XUGLVK 6SHDNLQJDWDQRWKHU a ceremony in the northern Iraqi city RI$UELOúLPûHN VDLGk7KH7XUNLVK and Kurdish people KDYHEHHQWRJHWKHU for a thousand years. Nobody can break up our brotherhood.” In a WDONKHJDYHDWWKHFHUemony, Turkish Airlines’ board chairman +DPGL7RS¹XSRLQWHG out that Arbil is the airline’s 135th destination abroad and is now linked via Istanbul to 1,200 points around WKHZRUOGWKURXJKWKH Star Alliance Group. 07 11 12 Panorama Panorama BY PROF. DR. ASAF SAVAŞ AKAT THE TURKISH ECONOMY IN 2011 D URING THE LAST QUARTER of the 20th century, Turkey had become a textbook example of economic instability and XQGHUSHUIRUPDQFHLHKLJKFKURQLFLQpDtion, weak coalition governments, irresponsible popuOLVWSROLFLHVXQVXVWDLQDEOHEXGJHWGHoFLWVH[SORGLQJ public debt, asset and liability dollarization, periodic oQDQFLDOFULVHVDQGVRRQ However, this bleak picture began to change with the RQVHWRIWKHQHZFHQWXU\)LUVWDGLVLQpDWLRQSURJUDP supported by IMF was initiated in 2000. Despite an MAY-JUNE 2011 ISSUE 4 attack on the currency midway, leading to a severe contraction of the economy and banking sector troubles, the EDFNERQHRIWKHDGMXVWPHQWSURFHVVQDPHO\WKHoVFDO effort—continued uninterrupted. The elections in 2002 put an end to political uncertainties with a single party government based on strong support at the Parliament. The Muslim Democratic $.3 VoVFDOFRQVHUYDWLVPSUREXVLQHVVDQGSUR globalization mentality accelerated the pace of reform. Prospects of EU membership supplied the muchneeded road map for the political transformation of the ILLUSTRATION BY SEDAT GİRGİN Growth based on domestic demand peaked in 2010 In spite of the high budget deficit brought by high growth, growth slowed down in the first quarter of 2011, although it is expected to achieve the success of 2010 by the end of the year The Turkish Perspective country. The results were impressive. At the end of 2010, Turkey’s net public debt stood at less than 30% of GDP, a very healthy ratio by any standards. It is there thanks to large primary budget surpluses (more than 5% of GDP) for most of the decade. In other words, WRGD\ VoQDQFLDOVWDELOLW\ORZLQpDWLRQ and strong growth were made possible E\DORQJSHULRGRIVXEVWDQWLDOoVFDODQG VRFLDOVDFULoFHV 7KHJOREDOoQDQFLDOFULVLVZDVWKHoUVW major test for the improved fundamentals of the Turkish economy. Residents and markets, their memories of past turbulences fresh, expected the worst; newspapers and TV channels ran stories of impending catastrophe while business DQGoQDQFLDOOREELHVSUHVVXUL]HGWKHJRYernment for an immediate deal with the IMF. Exports and domestic spending had LQGHHGFROODSVHGE\WKHoUVWGD\VRI EXWWKHSUHGLFWHGoQDQFLDOWXUPRLOVLPSO\ did not materialize. To the great surprise of most observers, the currency and the interest rate remained stable, which allowed VRPHUHOD[LQJRIoVFDODQGPRQHWDU\SROLF\)RUWKHoUVWWLPH in recent Turkish history, countercyclical measures were put in SODFHLQE\UHGXFLQJVDOHVWD[HVDQGVKRUWWHUPLQWHUHVW rates. And no IMF! The recession was severe but short lived, and the recovery was much stronger than even the most optimist forecasts. After VKULQNLQJLQWKHHFRQRP\H[SDQGHGLQ thus putting Turkey in the same league with stellar performers such as India and China. However, this transformation also triggered an undesirable process. As the outside world gradually began noticing Turkey, its improved fundamentals, its large domestic market, its potential for rapid growth, and its geostrategic SRVLWLRQGHPDQGIRU7XUNLVKDVVHWVERWKoQDQFLDODQG UHDOH[SORGHG7KHMXPSLQFDSLWDOLQpRZVLQWXUQFDXVHG substantial appreciation of the TL, thus hurting exports in particular and tradable sectors (industry and tourism) in general as well as employment growth and quality. The end result was ever LQFUHDVLQJFXUUHQWDFFRXQWGHoFLWVDQG a corresponding fall in domestic savings). The whole process reminds us of the “Dutch syndrome,” in the Turkish case oQDQFLDOVWDELOLW\UHSODFLQJWKHGLVFRYHU\ of natural resources. This mechanism was already at work before the crisis, when the Central Bank’s unnecessarily high interest rates further HQFRXUDJHGFDSLWDOLQpRZV7/LQWHUHVW rates normalized after the crisis; but this time, the pressure on TL was aggravated because of the glut in global liquidity, a direct consequence of loose monetary policies in the US and Euro zone. We should also remember that these unexpected FDSLWDOLQpRZVLPSRVHVHULRXVFRQVWUDLQWV on the effectiveness of monetary policy on controlling the surge in domestic demand. To cut a long story short, the current DFFRXQWGHoFLWUHDFKHG*'3LQ 2010 and, unless the cycle is reversed, may go up to as much as qLQ&OHDUO\WKHVHDUHGDQJHURXVOHYHOVHYHQIRUDQ HFRQRP\ZLWKVWURQJIXQGDPHQWDOVWLJKWoVFDOSROLF\DQGORZ public debt are an advantage, but private sector balance sheets are rapidly deteriorating. This constitutes the major economic policy issue (and challenge) facing the Turkey in 2011. The current cycle works through rapid credit expansion coupled with an overvalued currency. The new policy set has two targets: one, to slow private consumption and investment spending to reduce imports, the other, to increase the competitiveness of tradable sectors through a depreciation of the currency. Together, they imply an kRUGHUO\FRUUHFWLRQyLHWKHFXUUHQWDFFRXQWGHoFLWLVUHGXFHG without compromising the growth of the economy, as the fall in domestic demand is offset by an increase in exports. At the same WLPHLWDGGUHVVHVWKHULVNRIDVXGGHQUHYHUVDORIFDSLWDOLQpRZV DQDWWDFNRQ7/EHFDXVHWKHoQDQFLDOPDUNHWVJHWVFDUHGRI H[WHUQDOGHoFLWVWKLVLVWKHVRFDOOHGkPDUNHWOHGFRUUHFWLRQy This was the policy set introduced by the Central Bank at WKHHQGRIDQGULJRURXVO\LPSOHPHQWHGLQWKHoUVWIRXU months of the year. It uses two distinct instruments: hikes in bank reserves to control credit growth and lower money market LQWHUHVWUDWHVWRGLVFRXUDJHVKRUWWHUPFDSLWDOpRZVkKRWPRQey”). Are these adequate for the task? What are its chances of VXFFHVV"$UHDGPLQLVWUDWLYHRURWKHUFRQWUROVRYHUFDSLWDOpRZV inescapable? Should it be complemented by further tightening RIoVFDOSROLF\" These are open questions; they are subjects of heated debates among economists, market participants, and policymakers in Turkey. Whatever happens, one thing is certain: the normalization of Turkish economy will continue at full speed. The new policy set has two targets: one, to slow private consumption and investment spending to the other, to increase the competitiveness NUMBERS FOR TURKISH ECONOMY (2010) LESS THAN 8.9% 30% 6.6% ECONOMIC GROWTH IN 2010 NET PUBLIC DEBTS IN 2010 CURRENT ACCOUNT DEFICIT IN 2010 13 The Turkish Perspective 14 Content: Anatolia: A Land Turning Food into Art P14 Gone with the Wind P16 :LOOWKH/XVWHURI0DUEOH5HpHFWXSRQ([SRUWV"P18 The Wealth Coming from the 'HHSP207XUNH\ V1DWXUDO$WWDFNP22 6WUDWHJLF'HFLVLRQVLQ&ULWLFDO7LPHVP24 7XUNH\,V3UHSDULQJWR:UDS8SWKH:RUOGP26 The Granary of the World P28 Nature Is Changing Fashion P30 “We Came Not to Look, but to Stay” P32 Editor: Ceyhan Aksoy Briefing GASTRONOMY, ISTANBUL SHOPPING FEST, MARBLE, GEOTHERMAL, AVIATION, INVESTMENTS... With its 2,205 different regional foods 7XUNH\LVDQLPSRUWDQW FHQWHURIIRRGDQG drink GASTRONOMY Anatolia: A Land Turning FOOD INTO ART From the Hittites to Rome and Ottomans, some civilizations added spice, some changed the cooking techniques. It is always mealtime in Anatolia... BY GAMZE GÖREN T HE WORLD ASSOCIATION RI&KHIV 6RFLH- ties (WACS) made a bold statement by raising the status of the Istanbul Gastronomy )HVWLYDOWKHQLQWKRIZKLFK ZDVKHOGWKLVSDVW)HEUXDU\WR kLQWHUFRQWLQHQWDOy7XUNH\LV RQHRIWKHZRUOG VLPSRUWDQW FHQWHUVIRUIRRGDQGGULQN After all, we are talking about DQDUHDSRVVHVVLQJDGLYHUVLW\ MAY-JUNE 2011 ISSUE 4 RIIRRGRIIHUHGE\IRXUVHSDUDWH FOLPDWHVDQGDFXLVLQHWKDWKDV GLIIHUHQWUHJLRQDOIRRGV The title bestowed by WACS XSRQ7XUNH\UDQNLQJVHYHQWK in world tourism in terms of WRXULVWVUHFHLYHGDQGHLJKWK LQIRUHLJQFXUUHQF\LQWDNH was further bolstered as the FRXQWU\ZDVGHHPHGZRUWK\ RIFORVHWRDKXQGUHGPHGDOV LQGLIIHUHQWFDWHJRULHVLQ YDULRXVJDVWURQRP\IHVWLYDOV k7KHWLPHKDGFRPHIRURXU ULFK7XUNLVKFXLVLQHWREHFRPH DEUDQGyVD\V7LPXU%D\QGU 3UHVLGHQWRIWKH7RXULVWLF+RWHOVDQG,QYHVWRUV$VVRFLDWLRQ 3RLQWLQJRXWWKDWWKHFXLVLQHRI DFRXQWU\RUUHJLRQLVRQHRIWKH HOHPHQWVEHVWDEOHWRFRQYH\LWV FXOWXUHKHDGGVk7KHNLWFKHQ LVDOLIHVW\OHy 7KLVLVYHU\WUXH,I\RX KDYHQ WWDVWHGVWXIIHGFROODUG JUHHQVZLWKPHDWkRQO\DVWKLFN DV\RXUOLWWOHoQJHUyDVZRXOG have been said in the olden days; if you haven’t taken in WKHGHOLFLRXVQHVVRILWVEXWter; and if you haven’t eaten DVORZFRRNHG/D]GHVVHUW SDVWU\GUHQFKHGLQSOHQW\RI V\UXSWKHQ\RXKDYHPLVVHGD ORWRIWKLQJVDERXWWKH%ODFN 6HDUHJLRQ$QGLI\RX YHVHHQ The Turkish Perspective PHOTOGRAPH BY MEHMET KÜRKÇÜ - METİN PALA Turkish chefs won more than a hundred PHGDOVLQFDWHJRULHV in various gastronomy festivals Zeugma but haven’t seen one the 291 kinds of dishes in *D]LDQWHS VFXLVLQH\RXFDQQRW FDOO\RXUVHOIIDPLOLDUZLWKWKH SURYLQFH k%DEDJDQQXûykNDWPHUykPKODPDykDOLQD]LNy kLPDPED\OG{y$OOWKHVH words, seemingly nonsense DWoUVWHQFRXQWHUDUHDFRGH WRWKHpDYRUVRI7XUNH\IRU DOOZKRKDYHVDPSOHGLW$QG LQGHHGKLVWRU\GRHVUHSHDW LWVHOI(YHU\GLVKFRRNHGLQ $QDWROLD VRDVHVRIpDYRUEULQJV LWVKLVWRU\WRSUHVHQWGD\ k/DKPDFXQyNQRZQDV7XUNLVK SL]]DWUDQVFHQGVWKHFRXQWU\ V ERUGHUVDQGHQWHUVWKHFXLVLQHV RIYDULRXVFXOWXUHVZLWKWKH 5,000 years of history in its XQOHDYHQHGGRXJKDQGVSLF\ PLQFHGPHDW)RRGLQ$QDWROLD ZKHUHHDFKPHDOLVDFHUHPRQ\ of its own, is a fairly serious DIIDLU%DNODYDZKRVHKLVWRU\ GDWHVEDFNWRWKH$VV\ULDQV LQWURGXFHGIRRGWREXUHDXFUDF\ with the traditional baklava regiment founded by the OtWRPDQVLQWKHWKFHQWXU\ $FFRUGLQJWR)DWLK*ËOOËRþOX Board Chairman of famed EDNODYDPDNHU*ËOOËRþOXWKH VHFUHWRI7XUNLVKFXLVLQHOLHVLQ WKHH[FOXVLYHLQJUHGLHQWVDYDLODEOHk$GGLQJDVHSDUDWHULFKQHVVSDUWLFXODUO\WRGHVVHUWVLV WKHDYDLODELOLW\RIVXFKSURGXFWV DV$QWHSSLVWDFKLRVDQG%XUVD FKHVWQXWVDWKLJKTXDOLW\yVD\V *ËOOË3RLQWLQJWRWKHKLJK FRPPHQGDWLRQJLYHQE\IDPHG 'XWFKIRRGFULWLF'RRU-RKDQQHVYDQ'DP*ËOOËVWDWHVWKDW WKH\DUHYHU\VHQVLWLYHDVDFRPSDQ\DERXWSUHVHQWLQJWKHEHVW WKH\FDQLQWKHQDPHRIpDYRU Founded in Karaköy in 1949, *ËOOËRþOX%DNODYDLVWRGD\ PDQDJHGE\WKHVL[WKJHQHUDWLRQDQGRSHUDWHVDVDEURDG network run by various family members under the roofs of a QXPEHURIFRPSDQLHV:KLOH .DUDNÆ\*ËOOËRþOXH[SRUWV IURPDVLQJOHKHDGTXDUWHUVWKH *ËOORþOX%DNODYD)DUXN*ËOOË EUDQGSURGXFHVYDULHWLHV RISURGXFWVDWLWVVTXDUH PHWHUIDFLOLW\ZKLFKLWWKHQ H[SRUWVRUVHOOVLQGLIIHUHQW UHWDLOVWRUHV %DNODYDLVMXVWRQHH[DPSOH7KHZRUOGZLGHUHQRZQ of kebab, döner, and “lokum” (Turkish delight) seems to SURYHWKDW7XUNLVKFXLVLQH OLYHVRQDQGUHFHLYHVLQWHUHVWLQ HYHU\SDUWRIWKHZRUOG7XUNLVK FXLVLQH VFODLPKDVEHHQFDUULHG to the international arena by 0HKPHW6R\NDQ VERRNk7DG 'DPDþPGD.DOGyZKLFK HQWHUHGWKHWRSLQWKH Gourmand International World &RRNERRN$ZDUGVFRQVLGHUHG Very luxurious hotels or establishments with a different concept can be opened anywhere in the world. But what gives personality to an establishment, what makes it special, is the service it presents WKH2VFDUVRIFRRNERRNV DPRQJWKHFRXQWULHVSDUWLFLSDWLQJWKLV\HDU/DVW\HDUWKH same award was given to Lale $SDDQG+DQGH%R]GRþDQ V book “Istanbul Mutfakta” WUDQVODWHGDVk&RQWHPSRUDU\ ,VWDQEXO&XLVLQHy $QGWKLVFODLPDOVRVHUYHV DVDGULYLQJIRUFHSXVKLQJWKH VHFWRUWRZDUGDFRPSOHWHO\QHZ DUHD7KDWQXPHURXVVFKRROV KDYHDGGHGWKHFXOLQDU\DUWV WRWKHLUHGXFDWLRQDOSURJUDPV shows food is more than a need and hobby for the inhabitants RIWKLVFRXQWU\=HNL$¹NJÆ] President of the Turkish Chefs Federation, says, “Our only GHoFLHQF\LQWKHGHYHORSLQJ oHOGRIJDVWURQRPLFWRXULVPZDVFRRNVZLWKODQJXDJH WUDLQLQJ+RZHYHURXUQHZ JHQHUDWLRQRI\RXQJFKHIVDUH ERWKPRUHHGXFDWHGDQGPRUH NQRZOHGJHDEOHRQWKLVVXEMHFWy DQGFRQWLQXHVk7KLVVLWXDWLRQ DOORZVXVWREHWWHUH[SUHVVRXU FXLVLQHDEURDGy ,WKDVEHHQDORQJWLPHVLQFH humanity abandoned the DJHROGSKLORVRSK\RIkHDWLQJ WROLYH1RZkOLYLQJWRHDWyLV QRWMXVWDSKLORVRSK\LWLVWKH VORJDQRIDJLDQWVHFWRU7R VSHDNLQJOREDOWHUPVZKDW ZHFRQVLGHUHGDSULPDU\QHHG KDVQRZEHFRPHDPDVVLYH VHFWRU)RUVRPHIRRGLVDZD\ RIVHOIH[SUHVVLRQ)RURWKHUV LWPD\SURYLGHPDQ\GLJLW revenues—sometimes even ZLWKJRYHUQPHQWDLG7XUNH\ LVGHWHUPLQHGWRVHFXUHWKH GHOLFDFLHVRILWVFXLVLQHE\LQFOXGLQJWKHPZLWKLQWKHVFRSH RI78548$/,7<WKHZRUOG V oUVWJRYHUQPHQWVXSSRUWHG EUDQGLQJSURJUDP7DKVLQ ±]WLUND\LZKRKDVSXWWKH NLWFKHQXWHQVLOVKHSURGXFHVLQ WKHNLWFKHQVRIPRUHWKDQ FRXQWULHVVD\VWKDWKHIROORZV undertakings in this area with 15 16 Briefing JUHDWH[FLWHPHQW±]WLU\DNL VD\VWKDWKHJHWVWKHRSSRUWXnity to better see how the fame RI7XUNLVKFXLVLQHKDVVSUHDG RQKLVWULSVDEURDGDQGDGGV k,WLVSRVVLEOHWRoQGDNHEDE RUGÆQHUVKRSHYHU\ZKHUHLQ WKHZRUOG,QWKLVUHJDUGZH DUHHYHU\ZKHUH+RZHYHUZH PXVWJLYHDFKDQFHWRRWKHU SURGXFWVWRRyUHIHUULQJWRWKH hidden treasures of the TurkLVKNLWFKHQ 7DNH(U]XUXP VVRXUVWXIIHG JUDSHOHDYHVRU$QWDO\D VEODFN H\HGSHDVDODGIRULQVWDQFH 2UkWHVWLyNHEDEFRRNHGLQDQ HDUWKHQZDUHMXJ2QHRIWKH EHVWSODFHVWRVDPSOHWKHVH GHOLFDFLHV²UJËSLQ&DSSDGRFLDODQGRIWKHIDLU\FKLPQH\V ZHOFRPHGFORVHWR Mehmet Soykan’s book ÊMZ]í=ZfZúíf]Z DZe]í%Ë^gm^k^]ma^mhi 50 in the Gourmand International World Cookbook Awards among 156 countries participating this year WRXULVWVLQ0DUFK$FFRUGLQJ WR=HNL$¹NÆ]WKLVGUDZLVGXH WRWKHLQFUHDVHLQWKHQXPEHU RIEXVLQHVVHVSURYLGLQJPHQXV KLJKOLJKWLQJVXFKGHOLFDFLHV k8QXVXDOpDYRUVDUHZKDWPDNH the establishments unforgetWDEOHyVD\V$¹NÆ]7LPXU %D\QGUZLWKWKHZRUGVk9HU\ OX[XULRXVKRWHOVRUHVWDEOLVKPHQWVZLWKDGLIIHUHQWFRQFHSW FDQEHRSHQHGDQ\ZKHUHLQWKH ZRUOG%XWZKDWJLYHVSHUVRQDOity to an establishment, what PDNHVLWVSHFLDOLVWKHVHUYLFHLW SUHVHQWVyVSHDNVLQVXSSRUWRI $¹NVÆ] VVWDWHPHQW2IFRXUVH RQHFDQQRWRYHUORRNWKHNH\UROH RISUHVHQWDWLRQDQGVHUYLFHLQ JDVWURQRP\ZKLFKVRPHWLPHV HYHQVXUSDVVHVpDYRULWVHOI 1HYHUWKHOHVV%D\QGUDGGV WKDWLQFUHDVLQJLQVSHFWLRQVDQG K\JLHQLFVHQVLWLYLWLHVKDYHYLVLEO\LQFUHDVHGWKHTXDOLW\RIWKH HVWDEOLVKPHQWVLQUHFHQW\HDUV If the best advertisement is that PDGHE\DKDSS\FXVWRPHUWKH oJXUHVSURYH%D\QGUULJKW &RXOGWKHUHEHDQ\EHWWHUSURRI RIWKLVWKDQWKHSKHQRPHQDO LQFUHDVHLQWKHQXPEHU RIIRUHLJQWRXULVWVFRPLQJWRWKH FRXQWU\LQPLOOLRQ WRPLOOLRQLQ" ISTANBUL SHOPPING FEST GONE WITH THE WIND It has been the beginning of a tradition. Istanbul Shopping Fest provided signiÖcant movement in the markets BY CEYHAN AKSOY B ;:ü:K:G ULUSOY TÜRSAB President YALÇIN MANAV All Chefs Federation President “Turkey, though late and slow, has understood the VLJQLoFDQFHRIWKLV business, and it will TXLFNO\GRZKDW LVQHHGHG:HFDQ FDOOWKHSRLQWDW ZKLFKZHFXUUHQWO\ are the initial stage RIWKHEXVLQHVV But starting is an LPSRUWDQWVWHSy “The awards we UHFHLYHGDVWKH federation in WKHoUVWTXDUWHU of 2011, more than 20, show KRZVXFFHVVIXO ZHDFWXDOO\DUH LQWKHoHOGRI JDVWURQRPLF tourism as a FRXQWU\WKDWKDV MXVWVWDUWHGWRIRFXV RQLWy MAY-JUNE 2011 ISSUE 4 AHMET BARUT TÜROFED President k7KHTXDOLW\RI SUHVHQWDWLRQDQG VHUYLFHRIIHUHGDW the establishments and rising in SDUDOOHOWRWKHLU LQFUHDVLQJQXPEHUV LQUHFHQW\HDUVDUH WKHPRVWLPSRUWDQW FRQWULEXWLRQPDGH by hotels to Turkish FXLVLQHy BY CİHAT CANER ROUGHT TO LIFE throXJKSULYDWHVHFWRUDQG JRYHUQPHQWFRRSHUDWLRQ,VWDQEXO6KRSSLQJ)HVWDFKLHYHG PDQ\oUVWVIURPLWVSODQQLQJ VWDJHVRQZDUG,6)ZKLFKKDG a 50 billion dollar buffet, greeted the 40 day, 40 night-long VKRSSLQJDQGHQWHUWDLQPHQW IHVWLYDOZLWKDQRSHQLQJFHUHPRQ\WDNLQJSODFHLQoYHVHSDUDWHORFDWLRQVLQ,VWDQEXOZLWK WKHSDUWLFLSDWLRQRIPXVLFLDQVRQ0DUFK/DXQFKHGDVDQ,VWDQEXO3URMHFW,6) drew the interest not only of WRXULVWVDQGSDUWLFLSDQWVEXW also of Dubai, the long-time KHDY\ZHLJKWRIWKHVKRSSLQJ HYHQWVHFWRUWKURXJKVDOHVQHDULQJDQGpHHWLQJVXUSULses offered by hundreds of loFDODQGIRUHLJQEUDQGVLQDUHDVUDQJLQJIURPFORWKLQJWR IRRG'XEDL)HVW&(2üErahim Karmostaje, MarkeWLQJ'LUHFWRU6XKDLOD*KXbash, and International MarNHWLQJ'LUHFWRU%XWL$O0DVRRGFDPHWR,VWDQEXODQGREVHUYHGWKHHYHQW0DVRRGDQG Ghubash, stating that they underwent an arduous struggle for 15 years on the matter of SULYDWHVHFWRUDQGSXEOLFFRRSHUDWLRQDVNHG,6)%RDUG &R3UHVLGHQW<OPD]<OPD] WKHVHFUHWWRWKLV<OPD]VDLG The Turkish Perspective Istanbul Shopping Fest bid farewell to its followers, who it shall QH[WVHHLQZLWKD ELJSDUW\RQ$SULO that the desire to make Istanbul a brand brought everyone WRJHWKHUDQGHPSKDVL]HGWKDW ,VWDQEXOZLOOEHFRPHDWUDGLWLRQDVRIWKLV\HDU&RQFHUWVDQG GDQFHVKRZVDGGHGFRORUWR WKHIHVWLYDOÜVKRSSLQJKDGQHYHUEHHQVRPXFKIXQ,VWDQEXO6KRSSLQJ)HVWFRQWLQXLQJXQKLQGHUHGFDXVHGVLJQLoFDQWPRYHPHQWLQWKHPDUNHWVGXULQJLWVoUVWZHHN%HWZHHQ0DUFKDQG0DUFK DFFRUGLQJWRFUHGLWDQGGHELW FDUGXVDJHGDWDVSHQGLQJLQFUHDVHGE\RYHUWKHVDPH SHULRGLQKLWWLQJELOOLRQ7/7RXULVWVSHQGLQJEHWZHHQ0DUFKDQGRQWKH RWKHUKDQGLQFUHDVHGE\ RYHUWKHVDPHSHULRGLQ KLWWLQJPLOOLRQ7/6KRS- SLQJFHQWHUVUDQNHGoUVWLQ SODFHVZKHUHPRVWVSHQGLQJ ZDVPDGHZLWKPLOOLRQ7/LQUHYHQXHV,WZDVDQQRXQFHGWKDWWKHUHYHQXHVRIVKRSSLQJFHQWHUVLQ,VWDQEXOLQFUHDVHGE\DQG WKDWFORWKLQJSXUFKDVHVFRPSULVHGDPLOOLRQ7/SRUWLRQRIWKHLUWRWDOUHYHQXHV$ VHFWRUE\VHFWRUYLHZRIVSHQding shows that the greatest LQFUHDVHLQWKLVSHULRGZDVJDLQHGE\WKHMHZHOU\VHFWRUZLWK ZLWKPLOOLRQ7/ VSHQWRQMHZHOU\LWHPVZLWKLQ WKHoUVWZHHNRIWKHIHVWLYDO 7KHKROLGD\VRI1RZUX]3DVVRYHUDQG(DVWHUZKLFKFRLQFLGHGZLWKWKHGDWHVRIWKHIHVWLYDOKDGDVQRZEDOOHIIHFWRQ IHVWLYDODWWHQGDQFH)XUWKHU- Concerts and dance VKRZVDGGHGFRORUWRWKH IHVWLYDOÜVKRSSLQJKDG QHYHUEHHQVRPXFKIXQ 38% THE INCREASE IN TOURIST SPENDING BETWEEN MARCH 18-23 OVER THE SAME PERIOD LAST YEAR PRUHWKDWFHUWDLQVKRSSLQJ FHQWHUVGXEEHGkHPHUJHQF\ VKRSSLQJFHQWHUVyVWD\HGRSHQ XQWLODPKDGUHYHQXHV EDVNLQJLQIHVWLYDOIHUWLOLW\WRR $QDGGHGWUDQVDFWLRQVRFFXUUHGRYHUWKHSUHYLRXV ZHHNRQ0DUFKMXVWEHWZHHQWKHKRXUVRISPDQG DP2QHRIWKHEUDQGV to attend the festival, Ramsey, DQQRXQFHGDLQFUHDVHLQ LWVUHYHQXHV,6)ZKLFKIDFHG LQWHQVHLQWHUHVWHVSHFLDOO\IURP VXUURXQGLQJFRXQWULHVVRDUHG WRZDUGVKRSSLQJRQ7XUNLVK $LUOLQHV7KHDGGLWLRQDOpLJKWV set by Turkish Airlines were as FURZGHGDVWKHKRWHOVLQ,VWDQEXOGXULQJWKHSHULRG2QHRI many great advantages awaiting tourists among Istanbul’s KLVWRULFDQGQDWXUDOEHDXWLHV ZDVWD[IUHHVKRSSLQJ6SHDNLQJRQWKHVXEMHFW<OPD]<OPD]VDLGk$LQFUHDVHZDV VHHQRYHUWKHVDPHSHULRGODVW \HDULQWD[IUHHVKRSSLQJE\ IRUHLJQHUV0DQ\RIWKHIRUHLJQHUVVSHQGPRQH\DWVKRSSLQJ FHQWHUVDWQLJKWVy,6)3ODWIRUP3UHVLGHQW0HKPHW%Ë\ËNHNûLSRLQWLQJRXWWKDW,VWDQEXO6KRSSLQJ)HVWKHOSHG not just retailers but also store owners of all segments, stated, k,FDQVHHWKDWZHUHDFKHGRXU JRDOVEHFDXVHQRWMXVWUHWDLlers, but all store owners shoXOGWDNHWKHLUVKDUHy,VWDQEXO 6KRSSLQJ)HVWELGIDUHZHOOWR LWVIROORZHUVZKRLWVKDOOQH[W VHHLQZLWKDELJSDUW\RQ $SULO 17 18 Briefing MARBLE Will the Luster of Marble 3FnFDUVQPO&YQPSUT The Turkish marble and natural stone sector had 1.57 billion dollars of exports in 2010. For 2015, it is aiming for 4 billion dollars. And what about 2023? BY EMRE YILMAZ S INCE THE EARLIEST days of humankind, it was WKHV\PERORISRPSDVZHOO DVRIZHDOWK{%RWKDQFLHQW Greek deities and kings were EURXJKWWROLIHLQLW,WZDV XVHGLQWKHPRVWVSOHQGLG EXLOGLQJVDQGVWUXFWXUHV,W PDLQWDLQHGLWVVLJQLoFDQFH IRUFHQWXULHV$QGIRU7XUNH\ marble has had even further VLJQLoFDQFH{:LWKLWVEDVLQV and heated slabs, the Turkish bath owed its fame to PDUEOH$IWHUZDUGLWEHFDPH MAY-JUNE 2011 ISSUE 4 a favorite material not just for Turkish baths, but also for QHDUO\HYHU\NLQGRIVWUXFWXUH 7XUNLVKPDUEOHDGGVFRORUWR 'LVQH\ODQG VVTXDUH PHWHUVDVZHOODVWRVWUXFWXUHV DQGOX[XU\KRWHOVDOODURXQG WKHZRUOG The wealth of marble reserves, available in variRXVFRORUVDQGSDWWHUQVDW DOHYHORITXDOLW\ULYDOLQJ marble varieties on the global PDUNHWKDVKDGDQHIIHFW RQWKLVIDPH7KHk7XUNH\ TURKEY’S NATURAL STONE EXPORTS 1.6 Million Dollars 1.5 1.4 1.3 1.2 1.1 2007 Data: IMMIB 2008 2009 2010 Jan-Nov 0LQLQJ6HFWRU5HSRUWyZKLFK bears the signatures of the 5HSXEOLFRI7XUNH\3ULPH 0LQLVWU\,QYHVWPHQW6XSSRUWDQG3URPRWLRQ$JHQF\ (ISPAT) and Deloitte, shows that Turkey is 28th in global PLQLQJSURGXFWLRQDQGWK LQWKHTXDQWLW\RIPHWDOVDQG PLQHUDOV:LWKLWVELOOLRQ FXELFPHWHUPDUEOHUHVHUYHV 7XUNH\SRVVHVVHVDURXQG RIWKHZRUOG VPDUEOH UHVHUYHV7KHPDLQFLWLHVLQ WKHFRXQWU\ZKHUHUHVHUYHV RIQDWXUDOURFNVLQFOXGLQJ marble, are found are listed DV$I\RQ%DONHVLU0XþOD (VNLûHKLUDQG%LOHFLN60(V DUHUHODWLYHO\PRUHSURPLQHQW LQWKHVHFWRUWKDQODUJHVFDOH SURGXFHUVDQGWKHVHFWRULV JHQHUDOO\FRPSULVHGRISULYDWH FRPSDQLHV k7KHQDWXUDOVWRQHVHFWRUPDNHVDQLPSRUWDQW FRQWULEXWLRQWRWKH7XUNLVKHFRQRP\yVD\V±]HO 7X]ODF*HQHUDO6HFUHWDU\RI the Turkish Marble, NatuUDO6WRQHDQG0DFKLQHU\ 0DQXIDFWXUHUV$VVRFLDWLRQ 7²00(5DQGH[SODLQV WKDWDSSUR[LPDWHO\ PDUEOHTXDUULHVVPDOO WRPLGVL]HIDFWRULHVDQG ZRUNVKRSVDUHDFWLYH LQWKHVHFWRUZKLFKSURYLGH DVLJQLoFDQWFRQWULEXWLRQWR HPSOR\PHQW2YHURI WKHTXDUULHVDUHLQZHVWHUQ $QDWROLDFRQFHQWUDWHGLQ the Aegean and Marmara regions, the latter owing its PHOTOGRAPH BY MERİH AKOĞUL There are 1,000 marble TXDUULHVVPDOO WRPLGVL]HIDFWRULHV DQGZRUNVKRSV FRQWULEXWLQJWR HPSOR\PHQW The Turkish Perspective name to the Greek word for PDUEOHkPDUPDURQy IN THE TOP TEN OF THE LEAGUE Mining, in general, is an LPSRUWDQWJHQHUDWRURIH[SRUWVDQGLQFRPHIRU7XUNH\ 0XVWDID6ÆQPH]3UHVLGHQW of the Turkish Miners AssoFLDWLRQVD\VWKDWWKHPLQLQJ VHFWRUKDVDVKDUHRIDURXQG LQWKH*13DGGLQJWKDW WKHVHFWRUDFKLHYHGELOlion dollars of sales in 2008 DQGELOOLRQLQ,Q 2010, sales totaled around 10 ELOOLRQGROODUV$FFRUGLQJWR 6ÆQPH]IRUWKHVHFWRU H[SHFWVDQRXWFRPHVLPLODUWR OHYHOV 0HKPHW±]HU&KDLUPDQRI WKH,VWDQEXO0LQHUDO([SRUWHUV $VVRFLDWLRQü00ü% VD\VWKDWPLQLQJLVUHVSRQVLble for a 9 billion dollar share of the GNP, and adds that WKLVUDWLRLVDURXQGLQ WKH86LQ&DQDGDDQG LQ$XVWUDOLD:KHQRQH FDOFXODWHVWKHUHYHQXHWKDW PLQLQJSURGXFWVFUHDWHRQ WKHEDVLVRISULPDU\SURGXFWV IRUVHFWRUVLQZKLFKWKH\DUH XVHGVD\V±]HUWKHUHVXOWLV DoJXUHH[FHHGLQJELOOLRQ GROODUVDQGVD\Vk$QGLWFDQ be seen that this has a share RIqLQWKH*'3LQWXUQ showing the true dimenVLRQVRIWKHVHFWRUZLWKLQWKH HFRQRP\y For natural stone and marble, however, one must WXUQWRDQRWKHUSDJH:LWKLWV SRVVHVVLRQRIDODUJHSRUWLRQ GLOBAL Brazil NATURAL STONE Spain PRODUCTION India Turkey is competing against other countries strong in the sector, such as China, India, Italy, and Spain Data: TÜMMER Turkey Italy MEHMET ÖZER Ö IMMIB Chairman Turkey is 28th in global mining production and 10th in the quantity of metals and minerals 1% Belgium 1% Egypt 1% Germany 1% Canada 2% Portugal 6% 5% 7% 7% 37% 13% 19% China Others of the reserves in addition to LWVH[SHULHQFHTXDOLoHGODERU IRUFHORJLVWLFDGYDQWDJHVDQG broad range of natural stone YDULHWLHVDQGFRORUV7XUNH\LV DOHDGLQJSOD\HULQWKHJOREDO sense, and it is among the WRSWHQSURGXFHUVRIQDWXUDO VWRQH{7XUNH\LVFRPSHWLQJ against China, India, Italy, 6SDLQDQGRWKHUFRXQWULHV SRZHUIXOLQWKHVHFWRU±]HU 7X]ODFVWDWHVWKDWWKHZRUOG V QDWXUDOVWRQHSURGXFHUVDUH UDQNHGDV&KLQDZLWK ,WDO\ZLWK7XUNH\DQG ,QGLDZLWKDQG6SDLQ ZLWK,PSRUWDQWIDFWRUVDOORZLQJHDFKRIWKHVH FRXQWULHVWRDSSHDULQWKHWRS ten are the reserves in their SRVVHVVLRQVWRQHYDULHWLHV SURJUHVVVKRZQLQSURGXFWLRQ WHFKQRORJLHVWKHSHUIRUPDQFHRILQVWLWXWLRQVLQYROYHG LQH[SRUWVWKHSODFHRIWKHLU IDLUDQGH[SRVLWLRQDFWLYLWLHV RQWKHJOREDOVFDOHVXFFHVVHV LQGHVLJQDQGDUFKLWHFWXUDO HQGHDYRUVDQGSRVLWLRQV WDNHQZLWKUHJDUGWRWKHoHOG RQDJOREDOVFDOH$FFRUGLQJ WRWKHoJXUHVDQQRXQFHGE\ 7X]ODFWKH7XUNLVKPDUEOH DQGQDWXUDOVWRQHVHFWRU H[SRUWHGELOOLRQGROODUV ZRUWKLQ,WVH[SRUWV target for 2015, on the other KDQGLVELOOLRQGROODUV ü00ü%3UHVLGHQW±]HU DOVRH[SODLQVWKDWRI 7XUNH\H[SRUWVLQZHQW WRFRXQWULHVDOVRLQWKHWRS k2XUWDUJHWLQWKHH[SRUWRI natural stones for 2011 is to UHDFKDQH[SRUWVYROXPHRI ELOOLRQGROODUV$OORIWKH VHFWRU VLQVWLWXWLRQVFDPH WRJHWKHUDQGZHSUHSDUHG WKHk1DWXUDO6WRQH6HFWRU 6WUDWHJLF$FWLRQ3ODQy7KLV SODQZLOOEHUXQLQSDUDOOHO ZLWKWKH([SRUW6WUDWHJ\ SUHSDUHGE\7ü0$VZH LQGLFDWHGLQWKLVVWUDWHJLF SODQRXUQDWXUDOVWRQH VHFWRU VWDUJHWIRULV ELOOLRQGROODUV:LWKLQWKH IUDPHZRUNRIWKLVSODQDOO institutions will assemble DVRQHDQGZHZLOOFRQWLQXH RXUFRQFHQWUDWHGHIIRUWVWR UHDOL]HDQGHYHQH[FHHGWKH WDUJHWZHKDYHVHW WHQVXFKDV&KLQDWKH86 ,UDTWKH8.6DXGL$UDELD &DQDGD,QGLD/LE\D)UDQFH and Israel, and he says that the target for natural stone H[SRUWVLQLVWRUHDFK ELOOLRQGROODUV Although the momenWXPDFKLHYHGE\WKHVHFWRU has drawn attention, Ömer 7X]ODFRI7²00(5EHOLHYHV SUHGLFWLQJWKDWQHZHPSOR\ment—200,000 on average LQZLOOLQFUHDVHLQ OLJKWRIH[SHFWDWLRQVWKDWWKH VHFWRUZLOOLPSURYHZRXOG EHZURQJEHFDXVHMXVWDVLQ HYHU\VHFWRULPSURYHPHQWV LQWHFKQRORJ\DIIHFWHPSOR\PHQWLQWKLVVHFWRUWRR 7KHVHFWRU VDQQXDO SURGXFWLRQDPRXQWVWR million tons, while annual SURGXFWLRQIRUWKHGRPHVWLF PDUNHWLVDSSUR[LPDWHO\PLOOLRQWRQV7KH YROXPHLQWKHGRPHVWLF PDUNHWUHpHFWVXSRQRWKHU 19 20 Briefing VHFWRUVWRR8þXU*ËOKHDGRI 0DFKLQHU\6DOHVDQG0DUNHWing at Borusan Makina ve *˹6LVWHPOHULk0DFKLQHU\ and Power Systems”) , says WKDWWKHPRPHQWXPDFKLHYHG E\WKHPDUEOHVHFWRUSURYLGHV investments and jobs to areas VXUURXQGLQJPDUEOHTXDUULHV&RPSDQLHVLQYROYHGLQ WKHPDQXIDFWXUHDQGWUDGHRI TXDUU\DQGIDFWRU\HTXLSPHQWDUHHVSHFLDOO\IHHOLQJ WKHSRVLWLYHHIIHFWVRIWKH PDUEOHVHFWRU VJRRGSURJUHVV *ËOVD\Vk)RUVXSSOLHUVRI ZRUNHTXLSPHQWWKHPDUEOH VHFWRUKDVEHFRPHDYHU\LPSRUWDQWDQGVSHFLDOVHJPHQW LQWKHSDVWWHQ\HDUVy 10 BILLION DOLLARS BY THE CENTENNIAL +RZHYHUWKHKLJKFRVWV of the initial investment UHTXLUHGWRHQWHUWKHVHFWRU FDQEHUHJDUGHGDVDWKUHDW ,63$7DQG'HORLWWH VUHSRUW WRXFKHVRQWKHIDFWVWKDWYDULRXVGHSDUWPHQWVFRQFHUQHG ZLWKOLFHQVLQJRSHUDWLRQV KDYHEHHQUHRUJDQL]HGXQGHU the Mineral Works General 'LUHFWRUDWHDWWDFKHGWRWKH 0LQLVWU\RI(QHUJ\DQG 1DWXUDO5HVRXUFHVDQGWKDW H[SHQVHVKDYHJRQHGRZQ $VDUHVXOWRIWKHVHFKDQJHV WKHUHSRUWLQGLFDWHVLQYHVWPHQWVLQWKHPLQLQJVHFWRU LQFUHDVHGDWDFRPSRXQG DQQXDOJURZWKUDWHRI DoJXUHDFFRXQWLQJIRU qRIDOOLQYHVWPHQWV 7KHUHSRUWZKLFKJRHV on to state that government LQFHQWLYHVZLOOKHOSWKH FRXQWU\WRKDYHDFRPSHWLWLYH DQGVWURQJPLQLQJVHFWRULQ DGGLWLRQWRWKHSURFHVVRIOLEHUDOL]DWLRQDQGSULYDWL]DWLRQV KLJKOLJKWVRSSRUWXQLWLHVWKDW ZLOOFRPHZLWKIRUHLJQGLUHFW investment and the entry of QHZIRUHLJQFRPSDQLHVWRWKH PDUNHWVXFKDVWKHDUULYDO RIWKHODWHVWWHFKQRORJLHV DQGLQFUHDVHVLQH[SORUDWLRQ LQYHVWPHQWV{ MAY-JUNE 2011 ISSUE 4 7KHUHSRUWDOVRGUDZV DWWHQWLRQWRWKHIDFWWKDW JHRJUDSKLFDGYDQWDJHVKHOS H[SRUWVGXHWRORZHUHGFRVWV 7KHFRQWULEXWLRQWRH[SRUWV RZHGWRWKHVHORZHUHGFRVWV LVDVJUHDWDVWKDWFRQWULEXWHG E\WKHULFKQHVVRIWKHUHVHUYHV±]HU7X]ODFEHOLHYHV WKDWH[SRUWVWR&KLQDZLOO JURZLQWKH\HDUVWRFRPH and that this also goes for 0LGGOH(DVWHUQFRXQWULHV 5XVVLDDQGVRPH$IULFDQ FRXQWULHV,WLVSUHGLFWHGWKDW WKHUHFRYHU\RIWKHKRXVLQJ VHFWRULQFRPLQJDVWKH 86VXUPRXQWVWKHHFRQRPLFFULVLVZLOODOVRUHpHFW SRVLWLYHO\RQQDWXUDOVWRQH XVDJHDQGOHDGWRDQLQFUHDVH LQH[SRUWoJXUHV$QGLQWKLV VFRSHWKHVHFWRU VJRDOZLWKLQ 7XUNH\ VDLPWRUHDFK ELOOLRQGROODUVRIH[SRUWVLQ WKHFHQWHQQLDORILWVUHSXEOLF LVWRUHDFKELOOLRQGROODUV{k)XUWKHUPRUHLWLV surmised that use of natural stone as raw materials for &KLQD VFRQWLQXDOO\JURZLQJ FRQVWUXFWLRQVHFWRUZLOOHQWHU DWUHQGRIJURZWK'HPDQG in foreign markets will be able to be met through an LQFUHDVHLQGRPHVWLFSURGXFWLRQ7KHDFWLYHQHVVDSSHDULQJLQFRPPHUFLDOUHODWLRQV ZLWKFRXQWULHV7XUNH\LV LQFUHDVLQJIRUHLJQUHODWLRQV ZLWKZLOOUHpHFWRQWKHQDWXUDOVWRQHDQGPDUEOHVHFWRUy VD\V±]HU7X]ODF 7KHVWHSV7XUNH\KDVWDNHQ RUZLOOWDNHZLWKLQWKHVFRSH RILWVH[SRUWVWDUJHWDQGSROLWLFDOVWDELOLW\DUHLPSRUWDQWWR WKHGHYHORSPHQWRIWKHPDUEOHDQGQDWXUDOVWRQHVHFWRU DVLWLVIRUDOORWKHUVHFWRUV ,QIDFWDFFRUGLQJWR7X]ODF WKHHQWU\RIIRUHLJQFDSLWDOWR WKHVHFWRUEHWZHHQDQG VHHPVSRVVLEOHWRR,I DOOWKHVHSURFHVVHVDUHPDQDJHGFRUUHFWO\7XUNH\ZLOO KDYHQRWURXEOHUHDFKLQJDOO RILWVJRDOVPRVWHVSHFLDOO\ LWVJRDOIRU GEOTHERMAL The Wealth COMING FROM THE DEEP Geothermic zones, which have been known since long ago but were never been utilized fully, are going to be an important investment area in Turkey BY MEHMET ERDOĞAN ELGİN F BY KEMAL ATA - AA OR CENTURIES, SHRSOH seeking health have found VRODFHLQWKHKRWZDWHUVDQG YDSRURR]LQJIURPWKHWHFWRQLF VWUXFWXUHRI:HVWHUQ$QDWROLD,QDQWLTXLW\WKHJUHDWFLYLOL]DWLRQVRI$QDWROLDJUHZDQG pRXULVKHGDURXQGWKHVHVRXUFHV7KH\ZHUHWKHQIRUJRWWHQ IRUFHQWXULHVRQO\EHLQJXVHG E\ORFDOVLQVXUURXQGLQJDUHDV IRUGDLO\QHFHVVLWLHV1RZKRZHYHUWKH\DUHRIJUHDWLPSRUWDQFHWRWKH7XUNLVKHFRQRP\ *HRWKHUPDOUHJLRQVEHLQJFULWLFDOO\LPSRUWDQWIRUHOHFWULFLW\SURGXFWLRQDJULFXOWXUH and thermal tourism, are awaLWLQJQHZLQYHVWRUV)RU7XUNH\DVDFRXQWU\WKDWVXSSOLes its energy needs mostly by LPSRUWHDFKJHRWKHUPDO]RQH SXWWRJRRGXVHZLOOKHOSUHGXFHGHSHQGHQFHRQIRUHLJQUHVRXUFHV)XUWKHUPRUHWKHVH JHRWKHUPDOUHVRXUFHVSUHVHQW JUHDWRSSRUWXQLWLHVWRoUPV ZKRZLOOLQYHVWLQWKHDUHD The Turkish Perspective Cupica eti, sederoxPHGRTXH LVQRQGXFLGSHFULPXUDFLRLQF YLGHPHGLW%HPWHWHPVLV LQLKLOODULFWXP $FFRUGLQJWRGDWDIURPWKH 7XUNLVK*HRWKHUPDO$VVRFLDWLRQ7-'7XUNH\UDQNVVHYHQWKLQWKHZRUOGDQGoIWKLQ (XURSHZLWKLWVJHRWKHUPDOUHVRXUFHV7KHVDPHGDWDDOVR notes that in Turkey, the toWDOHOHFWULFDOSURGXFWLRQFDSDFLW\RIWKHJHRWKHUPDOUHJLRQVFRQFHQWUDWHGHVSHFLDOO\ in Western Anatolia, is 2,000 PHJDZDWWV0:,WLVH[SHFWHGWKDWWKLVFDSDFLW\RQFH SXWRQOLQHZLOOPHHWRI 7XUNH\ VHOHFWULFLW\QHHGV7Rday, the energy generated by WKHSRZHUSODQWVLQVWDOOHGLQ JHRWKHUPDO]RQHVE\DQXPEHURIFRPSDQLHVWRWDOVDURXQG0:,QDGGLWLRQWKH FRQVWUXFWLRQRIDSRZHUSODQW ZLWKDQLQVWDOOHGFDSDFLW\RI 0:LVRQJRLQJ,IWKHSRWHQWLDORIWKHVHJHRWKHUPDO]RQHVLVFRQVLGHUHGWKHUHDUH PDQ\RSSRUWXQLWLHVDYDLODEOHWRLQYHVWRUV$QLQVWDOOHGFDSDFLW\RI0:LVEHLQJDLPHGZLWKLQWKHVWUDWHJLF SODQRIWKH7XUNLVK0LQLVWU\RI (QHUJ\DQG1DWXUDO5HVRXUFHV (7.%)LQDOO\WKHk5HQHZDEOH(QHUJ\/DZyUDWLoHGE\ The geothermal zones, being critically important for electricity production, agriculture and thermal tourism, are waiting for their new investors WKHUPDOZDWHULVVLJQLoFDQWO\ LQFUHDVLQJ,QWKHSDVWWHQ\Hars, the total area of greenhouses heated by this metKRGKDVLQFUHDVHGoYHIROG WRUHDFKPLOOLRQVTXDUHPHWHUV7KLVDUHDLVH[SHFWHGJURZWRPLOOLRQVTXDUH PHWHUVDVSHUWKH7-' VGDWD ,QLWLDOLQYHVWPHQWFRVWVIRU greenhouses using geotherPDOUHVRXUFHVDUHKLJKHUWKDQ WKDWRIRWKHUVLQVXEVHTXHQW the General Assembly of the stages, however, the heating Turkish Parliament (TBMM) FRVWVRUODFNWKHUHRI SXOOH[LQWKHODVWGD\VRIWKHSUHYLRSHQVHVGRZQk*UHHQKRXVHV XV\HDUVWDQGVRXWDVVLJQLoXVLQJJHRWKHUPDOUHVRXUFHV FDQWVWHSLQWKHJHQHUDWLRQRI HOHFWULFDOHQHUJ\IURPJHRWKHU- LQ7XUNH\KDYHGHYHORSHGUDSLGO\LQWKHUHFHQWWHUP%XW PDO]RQHV$GROODUFHQW SHUNLORZDWWKRXUEX\LQJJXD- WKHVHUHVRXUFHVDUHXVHGDWOHYHOVZHOOEHORZWKHH[LVWLQJ rantee will make the geotherSRWHQWLDOyVD\V1LOJËQ%DNU PDO]RQHVDQLPSRUWDQWLQ*HQHUDO'LUHFWRURIWKH7XUYHVWPHQWJURXQGIRUHOHFWULNLVK*HRWKHUPDO$VVRFLDWLFLW\SURGXFWLRQ0XUDW6XQRQ6KHDGGVk%RWKIRUHLJQ gur Bursa, President of Zorlu DQGORFDOFRPSDQLHVDUHFRQ(QHUJ\*URXSVD\Vk7KHLQGXFWLQJVWXGLHVIRUSURMHFWVWR FHQWLYHUDWHJLYHQIRUJHRWKHUXWLOL]HWKLVSRWHQWLDOk PDOHQHUJ\LVDQRSWLPDOoJX$VWKHVHGHYHORSPHQWV UH7KHVHUDWHVZLOOHQDEOHLQLQDJULFXOWXUHRQHRI YHVWPHQWVWRSLFNXSVSHHGy +HDGGVk0DQ\IRUHLJQHQHUJ\ KXPDQLW\ VROGHVWoHOGVRIHFRQRPLFDFWLYLW\WDNHSODFHVHFRPSDQLHVDUHDOVRLQWHUHVWHG rious investments are being LQ7XUNH\ VJHRWKHUPDO]RQHVy made in thermal health to2IFRXUVHWKHXVHVRIJHRWKHUPDOUHVRXUFHVDUHQRWOLPLWHGWRHOHFWULFLW\JHQHUDWLRQ The use of geothermal water LQJUHHQKRXVHVLVLQFUHDVLQJ UDSLGO\ZRUOGZLGH,WVHHPV WKDWWKLVDFFHOHUDWLRQKDVFDTHE CURRENT USE RATIO OF THE XJKWRQLQ7XUNH\WRR,Q®DGEOTHERMAL ZONES nakkale, Afyonkarahisar, DeIN TURKEY QL]OL$\GQü]PLUDQG$QData : TJD (Turkish Geothermal talya, the number of the greAssociation) enhouses that are heated by 7% XULVPWKHROGHVWoHOGRIXVH IRUJHRWKHUPDOUHVRXUFHV7KH share taken by Turkey in thermal tourism is well below its SRWHQWLDODOWKRXJKLWKDVWKHUPDOUHVRXUFHVLQLWVHYHU\FLW\ :KHUHDVWKHFRXQWULHVRIWKH (XURSHDQ8QLRQ(8WDNHLQ ELOOLRQGROODUVIURPWKHUmal tourism annually, Turkish FRPSDQLHVJHWRQO\PLOOLRQGROODUV7KH&(2RI+DWWXûD$úZKLFKKDVDQLQYHVWPHQWRIPLOOLRQ(XURVLQ WKHWKHUPDOWRXULVPVHFWRULQforms that the biggest hanGLFDSLQWKHGHYHORSPHQWRI the thermal tourism in TurNH\LVWKHODFNRIFRQFHSW+H VD\Vk,Q7XUNH\EHFDXVHPDQ\ thermal hotels were designed ZLWKDQXUEDQKRWHOFRQFHSW WKH\ZHUHQRWHIIHFWLYHHQRXJK %XWRXUDSSURDFKWRWKHUPDO WRXULVPZLOOKHOSWKHGHYHORSPHQWRIWKLVVHFWRULQ7XUNH\yDGGLQJk7XUNH\SUHVHQWV PDQ\LQYHVWPHQWRSSRUWXQLWLHVLQWKHWKHUPDOoHOGy Besides these three main domains, geothermal resourFHVFDQEHXVHGLQPDQ\RWKHUoHOGV*HRWKHUPDOZDWHU XVHGDWGLIIHUHQWWHPSHUDWXUHV and in different areas, stands RXWIRULWVFRVWUHGXFLQJHIIHFWVHVSHFLDOO\LQLQGXVWULDODSSOLFDWLRQV7KHKHDWLQJ DQGFRROLQJRILQGXVWULDODUHDVWKHGU\LQJRIDJULFXOWXUDO SURGXFWVFDQQHGIRRGDQG WKHoVKIDUPLQJVHFWRUDUH DOVRLPSRUWDQWoHOGVLQZKLFK WKHUPDOZDWHULVXVHG/RZ FDUERQHPLVVLRQVFRPSDUHG WRRWKHUHQHUJ\VRXUFHVPDNHV it an environmentally friendly RSWLRQ*HRWKHUPDO]RQHVDUH EHFRPLQJLPSRUWDQWFHQWHUV RILQYHVWPHQW7KHVHDUHDV ZKLFKIRUPDQ\\HDUVZHUHLQ WKHSRVVHVVLRQRIWKH*HQHUDO 'LUHFWRUDWHRI0LQHUDO5HVHDUFKDQG([SORUDWLRQ07$ are now getting to meet their LQYHVWRUV7XUNH\ VJHRWKHUPDO ]RQHVZLOOEHDJUHDWRSSRUWXQLW\IRULQYHVWRUVERWKORFDO DQGIRUHLJQ 21 22 Briefing Wood and forest SURGXFWVVHFWRULV FRPSULVHGRIIRXUPDLQ industries and furniture is one of the biggests FOREST PRODUCTS TURKEY’S NATURAL ATTACK The wood and forest products sector grows, but also takes care to maintain the balances BY SİNAN KOPARAN A BY GÜRCAN ÖZTÜRK CCORDING TO THE 2010 data given by the Food DQG$JULFXOWXUH2UJDQL]DWLRQ )$2WKHUHDUHVTXDUHPHWHUVSHUFDSLWDZRUOGZLGH(DFKGD\WKLVDUHDZKLFK LVDSSUR[LPDWHO\WKHVL]HRI DIRRWEDOOoHOGGLPLQLVKHV GXHWRWKHLQFUHDVLQJVL]HRI WKHZRUOGSRSXODWLRQDQGFDUHOHVVORJJLQJ8QV\VWHPDWLFORJJLQJSURFHVVHVSDUWLFXODUO\LQFUHDVHWKHGHYDVWDWLRQUDWHRIWKHIRUHVWV2QHFDQ GRXEWOHVVO\DSSHDOWRHPRWLRQDJDLQVWVXFKORJJLQJRIWKH MAY-JUNE 2011 ISSUE 4 IRUHVWV%XWZLWKIRUHVWVEHLQJRQHRIWKHPRVWLPSRUWDQW HFRQRPLFDOUHVRXUFHVLQWKH world, solutions that are more UDWLRQDODUHZKDWPXVWFRPH RQWKHDJHQGD7RGD\IRUHVW SURGXFWVDUHDPRQJPRVWLPSRUWDQWH[SRUWVRIPDQ\GHYHORSHGDQGGHYHORSLQJFRXQWULHV,QWKLVUHVSHFWFRQVFLRXV IRUHVWU\SUDFWLFHVFDQLQFUHDVH WKHFRQWULEXWLRQRIWKHIRUHVWV WRWKHHFRQRP\DQGH[SDQGD FRXQWU\ VIRUHVWHGDUHD In Turkey, the wood and foUHVWSURGXFWVVHFWRUZKLFK KDVUHDFKHGDELOOLRQGROODUYROXPHFRQWLQXHVWRJHQHUDWHSURoWVE\XWLOL]LQJWKHIRUHVWVWKDWFRQVWLWXWHRI Turkey’s land in the most efIHFWLYHPDQQHU7KHVHFWRULV FRPSULVHGRIIRXUPDLQoHOGVRIDFWLYLW\7KHSDSHU FDUGERDUGDQGSDFNDJLQJoeld has the biggest volume of trade, followed immediately E\WKHIXUQLWXUHVHFWRU:RRG SURGXFWVVXFKDVoEHUERDUG SO\ZRRGDQG0')DQGWKH VHFRQGDU\IRUHVWSURGXFWVVHFWRUVWKDWLQWURGXFHSODQWVDQG IUXLWVVXFKDVWK\PHODXUHO OLQGHQWUHHVDQGDFRUQVWRWKH HFRQRP\DUHDOVRLPSRUWDQW oHOGVRIDFWLYLW\ 7RWDOH[SRUWVIRUWKHVHoHOGVLQZHUHQHDUO\ ELOOLRQGROODUV%XWOLNHDOOH[SRUWHUVWKHVHFWRUSOD\HUVDLP IRUKLJKHUWDUJHWVk:HDUH SODQQLQJWRLQFUHDVHH[SRUWV ZKLFKFXUUHQWO\DUHELOOLRQGROODUVE\HDFK\HDUy says Ahmet Kahraman, President of the Middle Anato- OLD:RRGDQG)RUHVW3URGXFWV ([SRUWHUV $VVRFLDWLRQ+H DGGVk:HPXVWLQFUHDVHRXU H[SRUWWRELOOLRQGROODUVLQ VRWKDWZHFDQFDWFKWKH total target of 500 billion dolODUV&XUUHQWO\WKHVHFWRULV DURXQG,IZHFDQFRQtinue as we maintain this, the QHFHVVDU\LQFUHDVHLQH[SRUWV ZLOOEHUHDOL]HGy 7KHH[SRUWHUV JRDOPD\ VHHPKLJKEXWWKHLQFUHDVHUHDOL]HGLQWKHoUVWWKUHH months of the year shows that WKHWDUJHWGRHVPDNHVHQVH 7KHVHFWRUFRQWLQXHVLQLWVHIIRUWVUHTXLUHGWRUHDOL]HWKH WDUJHWLWKDVVHW$KPHW.DKraman says, “We are studying our markets in furnituUH7KHDVVRFLDWLRQVDUHH[Dmining their target markets LQ$VWKH0LGGOH$QDWROLD:RRGDQG)RUHVW3URGXFWV ([SRUWHUV$VVRFLDWLRQZHZLOO go to Indonesia, and following that, to Iran and AlgeULD:HZLOOWKXVWU\WRLQFUHDVHWKHH[SRUWRI7XUNLVKIRUHVW The Turkish Perspective SURGXFWV8QWLOQRZWKDWLV WRVD\LQWKHLQWKHoUVWWKUHH months of this year, we manaJHGWRUHDOL]HPLOOLRQGROODUVRIH[SRUWVy 7KRXJKLWLVDVLJQLoFDQW VWHSLQWKHQDPHRIJURZWK IRUWKHVHFWRUWRFDUU\RXWWKH ZRUNQHHGHGWRLQFUHDVHLWV FRQWULEXWLRQWRWKHHFRQRP\ LWLVLPSRUWDQWIRUWKLVVWHSWR EHVXSSRUWHGE\UDZPDWHULDOVZKLOH7XUNH\ VODQG LVFRYHUHGE\IRUHVWVRQO\DURXQGRIWKLVDUHDFDQEH XWLOL]HGWRGD\$KPHW.DKUDPDQVD\Vk7KHRWKHUSDUWV mostly areas of MediterraneDQpRUDFRQVLVWLQJRIGHQVHO\ growing evergreen shrubs, must also be turned into IRUHVWVy (IIRUWVLQWKLVDUHDDUHRQgoing, and Turkey’s forests are H[SDQGLQJUDSLGO\6LQFHWKH 1970s, the amount of foresWHGDUHDVLQFUHDVHGE\ VTXDUHNLORPHWHUV6SHDNLQJ RQ:RUOG)RUHVWU\'D\(Qvironment and Forest MinisWHU9H\VHO(URþOXVDLGk)RUHVWVDQGWKHULFKQHVVSURYLded by them are diminishing LQPDQ\FRXQWULHVEXW7XUNH\LVRQHRIWKHUDUHFRXQWULHVWKDWLQFUHDVHGLWVIRUHVWHGDUHDDQGZRRGSURGXFWLRQ7XUNH\RZHVWKDWWRLWVIRUHVWHUVy+HDGGVk7KHZHDOWK RIZRRGKDVUHDFKHGELOOLRQPLOOLRQFXELFPHWHUV 6RLWLQFUHDVHGE\)XUWKHUPRUHWKH8QLWHG1DWLons’ 10th Forestry Forum will WDNHSODFHIRUWKHoUVWWLPHLQ LWVKLVWRU\LQDFHQWHURXWVLGH RI81LWZLOOEHKHOGLQ7XUNH\DQGWKLVLVYHU\LPSRUWDQWWRXVy ,Q7XUNH\*HQHUDO'LUHFWRUDWHRI)RUHVWU\VXSSOLHV RIWKHUHTXLUHGWUHHV7KHUHPDLQLQJLVVXSSOLHGE\ FRXQWULHVVXFKDVWKH86&DQDGDDQG&KLOH9DULRXVHIIRUWVWRZDUGUHGXFLQJWKLVUDWLRDUHRIFRXUVHXQGHUZD\ Abdullah Tever, President of the Istanbul Wood and Fo- AHMET KAHRAMAN President of the Middle Anatolia Wood and Forest Products Exporters’ Association “As the Middle Anatolia Wood DQG)RUHVW3URGXFWV([SRUWHUV $VVRFLDWLRQZHZLOOJRWR Indonesia, and following that, WR,UDQDQG$OJHULD:HZLOO WKXVWU\WRLQFUHDVHWKHH[SRUW RI7XUNLVKIRUHVWSURGXFWV 8QWLOQRZWKDWLVWRVD\LQWKH LQWKHoUVWWKUHHPRQWKVRIWKLV \HDUZHPDQDJHGWRUHDOL]H PLOOLRQGROODUVRIH[SRUWV 3.2 BILLION DOLLARS Wood and Forest Products Sector Exports As it increases its export targets, the forest products sector is not neglecting to grow sustainably either UHVW3URGXFWV([SRUWHUV $VVRFLDWLRQVD\Vk,QRUGHUWR meet need for raw materials, WKH*HQHUDO'LUHFWRUDWHRI)Rrestry has started the greatest SODQWLQJSURMHFWLQKLVWRU\y $GGLWLRQDOO\LQRSHUDWLRQVEHJDQLQFLWLHVIRUWKH rehabilitation of downtrodGHQIRUHVWDUHDV,QWKLVUHVSHFWWKHWDUJHWKDVEHHQUDLVHGWRVTXDUHNLORPHWHUVIURPLQ 7KHHIIRUWVFDUULHGRXWFDQ FHUWDLQO\EHUHJDUGHGDVDQ LPSRUWDQWSUHFDXWLRQIRUWKH VHFWRU VIXWXUH)RUWKHVXVWDLQDELOLW\RIWKHIRUHVWU\VHFWRUPRUHWUHHVPXVWEHSODQWHGWKDQFXW$QGGR]HQVRI years are needed for a tree to JURZXSDQGSURYLGHSURoWWR WKHHFRQRP\$VVXFKLWLVQRW SRVVLEOHIRUUHFHQWO\SODQWHG WUHHVWRSURYLGHHFRQRPLFLQWHUHVWFRQVHTXHQWO\LQpXHQFLQJSULFHVk7KHSULFHVRIUDZ PDWHULDOVDUHKLJKyVD\V%Ëlent Aymen, President of the Mediterranean Wood and FoUHVW3URGXFWV([SRUWHUV $VVRFLDWLRQ+HDGGVk7KHJRRGV must be sold to the domesWLFH[SRUWHUVZKRKDYHDSURFHVVLQJOLFHQVHDWWKHVDPHSULFHVDVWKRVHIRXQGLQWKHZRUOG PDUNHWy The “Industrial Forest 3ODQWDWLRQySURJUDPLVFR- PLQJXSDVDPDWWHURIJUHDW VLJQLoFDQFHWRWKHPRVWLPSRUWDQWUDZPDWHULDORIWKH PDUNHWWUHHV7KLVSURJUDP SDUWLFXODUO\WKHSODQWLQJRI IDVWJURZLQJWUHHVFDQEHDQ LPSRUWDQWVWHSWRZDUGPHHWLQJUDZPDWHULDOQHHGV7KH Industrial Forest Plantation FDQHQVXUHDEHWWHUSODQQHG SURFHVVWRPHHWWKHUDZPDWHULDOQHHG7KH0LQLVWU\RI (QYLURQPHQWDQG)RUHVWFDQ SURYLGHVSDFHIRUWKHSULYDWHVHFWRUWRWKLVHQG7KHLQWHUHVWRIWKHSULYDWHVHFWRULQ WKLVVXEMHFWZRXOGXQGRXEWHGO\UHGXFHSULFHV 7KHoUVWDSSOLFDWLRQRIWKH SODQLQWKLVVHQVHFDPHIURP WKHSDSHUVHFWRU0RSDNLQ VWDUWHGWKH,QGXVWULDO (XFDO\SWXV3ODQWDWLRQ3URMHFW 7KLVSURMHFWZKLFKZDVWKH oUVWLQWKHVHFWRUZDVWRSURYLGHDSSURSULDWHIRUHVWSODQWDWLRQVIRUWKHSDSHUVHFWRU7KH IRUHVWWKDWWKHFRPSDQ\EXLOWLQRUGHUWRVXSSO\WKHQHHG RIZRRGWKHSULPDU\VRXUFHRIWKHFHOOXORVHXVHGLQSDSHUDQGFDUGERDUGSURGXFWLRQ KDVSUHYHQWHGIRUHLJQFXUUHQF\ VSHQGLQJGXHWRFHOOXORVHLPSRUWVDQGDOVRDFWHGDJDLQVW WKHGHFUHDVHRIQDWXUDOIRUHVWV (YHU\HIIRUWPDGHLQHDFK EUDQFKRIH[SRUWLVYHU\LPSRUWDQWIRU7XUNH\ZKLFKKDV H[SDQGHGLWVWDUJHWVIRUWKH \HDU$OPRVWHYHU\FRPSDQ\LQWKHZRRGDQGIRUHVW SURGXFWVVHFWRUGLVSOD\VLJQLoFDQWSURJUHVVWRZDUGWKLV WDUJHW)RUWKHVXVWDLQDELOLW\ RIWKLVJURZWKERWKWKHSXEOLF DQGSULYDWHVHFWRUVPXVWIXOoOOWKHUHVSRQVLELOLWLHVEHIDOOLQJWKHP&OLPDWHFKDQJHLV QRZDGD\VGLVFXVVHGPRUHDQG PRUHVHULRXVO\$QGDWWKLV SRLQWLWLVFOHDUWKDWWKHZRUOG FDQQRORQJHUWROHUDWHORVLQJ DQ\PRUHIRUHVWV)RUWKLVUHDVRQSODQQHGJURZWKLQZRRG SURGXFWVZKLFKDUHYHU\GLIoFXOWDQGH[SHQVLYHWRUHSODFH LVPXFKPRUHLPSRUWDQWWKDQ WKRXJKW 23 24 Briefing AVIATION 4USBUFHJD %FDJTJPOT JO$SJUJDBM Times The quick re×exes Turkish Airlines displayed Örst in the Middle East and then in the disaster in Japan are crisis management successes T of the QHZPLOOHQQLXPFRQWLQXHWRVXUSULVHHYHU\RQH$V WKH86DQG(XURSHZKLFK KDGIRUFHQWXULHVEHHQLGHQWLoHGZLWKSURVSHULW\DQGZHalth, wrestle with the devastaWLQJHIIHFWVRIWKHJOREDOHFRQRPLFFULVLV-DSDQKDVEHHQ WU\LQJWRZUDSXSLWVZRXQGV IURPSHUKDSVWKHODUJHVWHDUWKTXDNHGLVDVWHULQLWVKLVWRU\3HRSOHVLQWKH1RUWK$IULFDDQGWKH0LGGOH(DVWRQ the other hand, who had been XQGHUGLFWDWRULDOUHJLPHVIRU \HDUVDUHULVLQJXSRQHDIWHUWKHRWKHU$QGIRULWVSDUW ULJKWDWWKHFHQWHURIDOOWKHVH H[WUDRUGLQDU\GHYHORSPHQWV Turkey has been signing off RQQHZH[WUDRUGLQDU\VWRULHVRIOHDGHUVKLSDQGVXFFHVV HYHU\GD\ The star in one of the latest RIWKHVHVXFFHVVVWRULHVZDV 7XUNLVK$LUOLQHV6LQFHWKH VWDUWRIWKH\HDUWKHFRPSDQ\ VDIHO\pHZWKRXVDQGVRI7XUNLVKFLWL]HQVDQGIRUHLJQHUV GXULQJSRSXODUUHEHOOLRQVLQ OLVWHGLQWXUQ7XQLVLD(J\SW THE NEW NORMS MAY-JUNE 2011 ISSUE 4 DQG/LE\D:KHQUHYROWEURNH out against Zine al-Abidine %HQ$OL7XQLVLD VGLFWDWRURI \HDU7XUNLVK$LUOLQHVFDUULHGDWRWDORISDVVHQJHUV RQVL[VFKHGXOHGpLJKWV,Q WKHZDYHRIXSULVLQJVDJDLQVW +RVQL0XEDUDNWKHFRPSDQ\ FDUULHGSDVVHQJHUVRQD WRWDORIpLJKWVIURP&DLUR DQG$OH[DQGULD 7KHXSULVLQJVLQ/LE\DZHUH PXFKPRUHYLROHQW1DWXUDOO\WKHQXPEHURISHRSOH ZLVKLQJWROHDYHWKHFRXQWU\ was higher than that of TuQLVLDRU(J\SW7KHIROORZLQJ words, uttered by a Turkish ZRUNHUHPSOR\HGDWDFRQVWUXFWLRQFRPSDQ\LQ/LE\DDIter landing in Istanbul on a 7XUNLVK$LUOLQHVSODQHQHDWO\ VXPPDUL]HGWKHWHUURUEHLQJH[SHULHQFHGDQGKLVKDSSLQHVVDWUHWXUQLQJKRPH k7KHFRQVWUXFWLRQVLWHV7XUNV worked on were being looted, DQGDQWLDLUFUDIWJXQVZHUH FRQVWDQWO\oUHG+RZVKRXOGZHH[SODLQWKHVHLQFLGHQWV QRZ"7KH\DUHNQRZQE\WKRVHZKROLYHGWKHP:HVDWXS Turkish Airlines h_Ö\bZellZrmaZm the secret to success of its operations in North Africa is that the institution and personnel could Z\mbo^erk^×^\mma^bk experiences on the operations DOOQLJKWRQFRQFUHWHIRUWKUHH RUIRXUQLJKWV%XWWKDQNVWR 7XUNLVK$LUOLQHVZHHVFDSHG WKDWKHOOy7XUNLVK$LUOLQHVFDUULHGDWRWDORISDVVHQJHUV IURPWKHFDSLWDOFLW\RI7ULSROL %HQJKD]L6HEKD$OH[DQGULD DQG'MHUEDRQpLJKWVGXULQJWKHHYHQWVLQ/LE\D 7XUNLVK$LUOLQHVRIoFLDOV GUDZDWWHQWLRQWRWKHIDFWWKDW WKDWWKH\FRPSOHWHGDOOSUHSDUDWLRQVIRUDSRVVLEOHKXPDQLWDULDQDLGRSHUDWLRQDQGZHUH on the alert at the start of the HYHQWVLQ1RUWK$IULFD$QG WKLVEHFDXVHLWVSODQHVDQGLWV pLJKWFUHZVZHUHERWKUHDG\ DOORZHGWKHPWRTXLFNO\GHFLGHWRDFWDQGUHDFKWKHDIIHFWHGDUHDVIDVW +DPGL7RS¹X&KDLUPDQRI the Board of Turkish Airlines, says that they also initiated PHOTOGRAPH BY AHMET DUMANLI - SABAHATTİN METİN - AZİZ UZUN BY GÜNEŞ KÖMÜRCÜLER The Turkish Perspective READY TO RESCUE On May 19, at the request of the Prime Ministry Crisis Center, a cargo flight numbered TK 6482 to Tokyo was scheduled, carrying the equipment listed below: THREE SEARCH AND RESCUE VEHICLES TWO TRAILERS GENERATOR AND VARIOUS SEARCH AND RESCUE EQUIPMENT FOOD AND FOOD EQUIPMENT VARIOUS MEDICINES AND FIRST-AID EQUIPMENT Since the start of the year, Turkish $LUOLQHVVDIHO\pHZWKRXVDQGVRI 7XUNLVKFLWL]HQVDQGIRUHLJQHUV GXULQJUHEHOOLRQVLQ7XQLVLD(J\SW and Libya FRQWDFWZLWKWKHRSSRVLWLRQWR 0XDPPDU*DGGDoLQRUGHUWR HQVXUHVDIHODQGLQJVUHFHLYLQJ DVVXUDQFHIURPWKHPDVZHOO k%XWLQVSLWHRIWKLVIURPWLPH to time the soldiers gave us the answer, ‘There is not a safe enYLURQPHQWZHFDQQRWODQG \RXUSODQH y$OWKRXJK7XUNLVK $LUOLQHVRIoFLDOVZHUHRQO\ DEOHWRVHFXUHODQGLQJSHUPLVsion at varying intervals, every time they did, they used theLUODUJHUSODQHVVRWKH\FRXOG EULQJPRUHSHRSOHk,IWKHUH ZDVVXFKDQHYHQWD\HDUDJR ZHFRXOGQRWKDYHFDUULHGRXW DQRSHUDWLRQWKLVHDVLO\1RZ ZHKDYHODUJHSODQHV:HXVHG our Boeing 777 and Airbus $DLUFUDIWLQWKHRSHUDWLRQyDGGV+DPGL7RS¹X 7KLVVXFFHVVE\7XUNLVK$LUlines went down in world his- tory as one of the largest logisWLFDORSHUDWLRQVRIDOOWLPHk$V Turkish Airlines, we mobili]HGWKHRSHUDWLRQDOH[SHULHQFHDQGVNLOOZHDFTXLUHGLQWKH HYDFXDWLRQRIFLYLOLDQVDQGWKH wounded in wars and similar VLWXDWLRQVRQFHPRUHGXULQJ WKHHYHQWVLQ/LE\D(J\SW and Tunisia,” say Turkish AirOLQHVRIoFLDOV6LPLODUO\WKH FRPSDQ\PRELOL]HGTXLFNO\ following the devastating eartKTXDNHLQ-DSDQDVZHOOPRYLQJKXQGUHGVRISHRSOHDZD\ IURPWKHGLVDVWHUDUHD7XUNLVK $LUOLQHVFDUULHGRXWLWVpLJKWV WR-DSDQVROHO\RQDVFKHGXOHGEDVLV +RZHYHUDWWKHUHTXHVW of the Prime Ministry CriVLV&HQWHUDFDUJRpLJKWQXP- TURKISH AIRLINES ACCOMPLISHED A GREAT LOGISTICS OPERATION IN NORTH AFRICA AND JAPAN 8,749 456 DURING THE EVENTS IN LIBYA, A TOTAL OF 456 PASSENA TOTAL OF 8,749 PASSENGERS GERS WERE TRANSPORTWERE CARRIED ON 47 FLIGHTS ED FROM TUNISIA FROM TRIPOLI, BENGHAZI, SEBHA, SIRTE, ALEXANDRIA, AND DJERBA 4,556 DURING THE EVENTS IN EGYPT, A TOTAL OF 4,556 PASSENGERS WERE CARRIED ON 33 FLIGHTS FROM CAIRO AND ALEXANDRIA EHUHG7.ZDVSODQQHG IRU7RN\RRQ0DUFKFDUU\LQJWKUHHVHDUFKDQGUHVFXH YHKLFOHVWZRWUDLOHUVJHQHUDWRUDQGYDULRXVUHVFXHHTXLSPHQWIRRGDQGPHGLFLQH Turkish Airlines also sent 100 HDUWKTXDNHEDJVWR7RN\RDQG 1DULWD During all the events, TurNLVK$LUOLQHVFRQVWDQWO\H[Fhanged information with the HPEDVVLHVDQGFRQVXODWHVRI WKHFRQFHUQHGFRXQWULHVDV well as with Turkish Airlines VWDWLRQPDQDJHUV7KHFRPSDQ\ZDVDOVRLQFRQWDFWZLWK the Prime Ministry Disaster &RRUGLQDWLRQ&HQWHU 7XUNLVK$LUOLQHV H[SHULHQFHGDQGNQRZOHGJHDEOHVWDII IURPLWVRSHUDWLRQVFRQWURO FHQWHUWRLWVpLJKWFUHZVVWDWLRQSHUVRQQHOIRUHLJQVWDWLRQPDQDJHPHQWDQGWHFKQLFDOXQLWVDOORZHGWKHRSHUDWLRQVWRVXFFHHGZLWKRXWDKLWFK LQDOORIWKHFDVHVOLVWHGDERYH7XUNLVK$LUOLQHVRIoFLDOV VD\WKDWWKHVHFUHWWRVXFFHVV RIDOOWKHVHRSHUDWLRQVLVWKDW WKHLQVWLWXWLRQDQGSHUVRQQHO FRXOGDFWLYHO\UHpHFWWKHLUH[SHULHQFHVRQWKHRSHUDWLRQV,W DSSHDUVDVLI7XUNLVK$LUOLQHV ZLOOFRQWLQXHWRDFKLHYHVLPLODUDQGHYHQJUHDWHUVXFFHVVHV LQWKHIXWXUH 29 25 26 Briefing PACKAGING Turkey Is Preparing to WRAP UP THE WORLD Having cast off the stagnation of the crisis, the packaging sector is expanding its goals BY SİNAN KOPARAN G ROWING 8.9% IN 2010, Turkey was among the WRSoYHFRXQWULHVH[KLELWLQJ the most growth along with China, Argentina, Taiwan, and 6LQJDSRUH7KHDFWLYHLQFUHDVH LQGRPHVWLFLQYHVWPHQWVDQG FRQVXPSWLRQZDVXQGRXEWHGO\WKHPRVWLPSRUWDQW WULJJHURIWKLVJURZWK0DQ\ VHFWRUVKDYHWDNHQRQWKHUROH RISLRQHHUVLQWKLVJURZWKRQ WKHHFRQRPLFVLGHDQGPDQ\ VHFWRUVWKDWFDVWRIIWKHVWDJQDWLRQRIWKHFULVLVDUHWKURXJK WKHLURZQSRZHUWRJURZDIMAY-JUNE 2011 ISSUE 4 IHFWLQJWKHJURZWKRIDQRWKHU VHFWRUSDFNDJLQJ$IIHFWHG E\WKHDFWLYLW\RIPDQ\VHFWRUV IURPIRRGWRFHPHQWDQGIURP GLVSRVDEOHJRRGVWRDQLPDO IHHGWKHSDFNDJLQJVHFWRUFDVW off that stagnation long ago DQGGLVSOD\VDQDVSLUDWLRQ WRZDUGJUHDWHUJRDOV7KHVHFWRUFRPSULVHGDYROXPHRI PLOOLRQWRQVLQ 7KHPRQHWDU\HTXLYDOHQWRI WKLVYROXPHPHDQVDSURGXFWLRQYDOXHGDWDSSUR[LPDWHO\ ELOOLRQGROODUV$FFRUGLQJ to TurkStat’s data, as on 2008, The Turkish packaging sector offers bmll^kob\^lhnmÖmm^] with equipment that provides the quality sought by developed countries SHUFDSLWDSDFNDJLQJFRQVXPStion in Turkey was around 86 GROODUVLQ7KLVoJXUHIHOO down to 65 dollars in 2009, a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oFLHQW7KHQXPEHUV DUHPXFKKLJKHULQGHYHORSHG PHOTOGRAPH BY GÜRCAN ÖZTÜRK The packaging sector is JURZLQJDWDUDWHWZLFH WKDWRIWKHFRXQWU\ V HFRQRPLFJURZWK The Turkish Perspective FRXQWULHV3HUFDSLWDSDFNDJLQJ FRQVXPSWLRQZKLFKFDQIXQFWLRQDVDQLQGLFDWRURIOLYLQJ VWDQGDUGVLVDURXQGq GROODUVLQ1RUWK$PHULFDDQG GROODUVLQ-DSDQk7KHUH UHDOO\LVDYHU\ODUJHSRWHQWLDO IRUWKHSDFNDJLQJVHFWRURI Turkey,” says Sadettin Korkut, Chairman of the Board of the 7XUNLVK3DFNDJLQJ0DQXIDFWXUHUV$VVRFLDWLRQ+HDGGV k7KHSDFNDJLQJVHFWRULV JURZLQJDWDUDWHWZLFHWKDWRI WKHFRXQWU\ VHFRQRPLFJURZWK $FFRUGLQJWRWKHoJXUHVWKDW ZHUHDQQRXQFHGRXUHFRQRPLF JURZWKLV7KHUHIRUH SDFNDJLQJZLOOH[SHULHQFHD JURZWKRIDURXQGq$QG LQDQ\FDVHZHVHHWKLVIURP RXURZQFDOFXODWLRQVWRRy At the foundation of the FDOFXODWLRQVPDGHE\VHFWRU UHSUHVHQWDWLYHVOLHVXQGRXEWHGO\7XUNH\ VGHPRJUDSKLF VWUXFWXUHWKHZRUNLQJ SRSXODWLRQLQ7XUNH\ZKLFK SRVVHVVHVD\RXQJSRSXODWLRQLVUDSLGO\LQFUHDVLQJ7KH SXUFKDVLQJGHFLVLRQVRIWKLV JURXSZKLFKLVRSHQWRLQQRYDWLRQDQGZKRVHFRQVXPSWLRQKDELWVFDQTXLFNO\FKDQJH DUHRIJUHDWVLJQLoFDQFHWRWKH SDFNDJLQJVHFWRU)RULQVWDQFH WKHFRQVWDQWVKULQNDJHRI SRUWLRQVL]HVLQIRRGZKLFKLV GXHWROLIHVW\OHFKDQJHVPHDQV DQHZLQFUHDVLQJYROXPHRI ZRUNIRUWKHSDFNDJLQJVHFWRU 2IFRXUVHDWWKLVSRLQW WKHIHDWXUHVRIDSDFNDJH FDUU\JUHDWVLJQLoFDQFH,ûNODU $PEDODM9LFH3UHVLGHQW6HPD .RPDQVD\Vk7KHVHFWRULV YHU\RSHQWRGHYHORSPHQW HVSHFLDOO\LQIRRG3DFNDJLQJ WKDWDOORZVSURGXFWVWRSUHVHUYH WKHLUSURSHUWLHVDOVRDOORZWKH SURGXFWWRH[SUHVVLWVHOI6R SDFNDJLQJKDVERWKDSUHVHUYLQJDQGDSURPRWLQJVLGHy 2IFRXUVHJURZLQJZLWK WKHVHG\QDPLFVWKHVHFWRULV SURYLQJLWVHOIRQWKHH[SRUWV IURQWDVZHOO'RþDQ(UEHUN *HQHUDO6HFUHWDU\RIWKH7XUNLVK3DFNDJLQJ0DQXIDFWXUHUV 18% INCREASE IN PACKAGING SECTOR’S EXPORTS, 2010 $VVRFLDWLRQVD\Vk7KHSDFNDJLQJVHFWRU VH[SRUWVZHUH DFFRUGLQJWRWKHYDOXHV SXEOLVKHGE\7XUN6WDW ELOOLRQGROODUV)XUWKHUPRUH it must not be forgotten that DODUJHDPRXQWRISDFNDJLQJ LVDOVRH[SRUWHGLQGLUHFWO\DV WKHSDFNDJLQJRIH[SRUWJRRGV 7KHH[SRUWVRIWKHSDFNDJLQJ LQGXVWU\KDYHLQFUHDVHGE\DQ DYHUDJHRIDQQXDOO\RYHU WKHSDVWoYH\HDUV7KRXJKWKH H[SRUWRISDFNDJLQJSURGXFWV IHOOE\DURXQGLQYDOXH in 2009 due to the shrinkage in foreign markets during WKHJOREDOFULVLVLQWKH VHFWRU VH[SRUWVLQFUHDVHGE\ WRDURXQGELOOLRQ GROODUV3UHSDULQJWRGRDOO WKDWLWFDQIRUWKHELOOLRQ GROODUH[SRUWoJXUHVHWIRUWKH 5HSXEOLF VFHQWHQQLDOWKHVHFWRUKDVVHWDQH[SRUWVWDUJHWRI ELOOLRQGROODUVIRULWVHOI 7KHVHFWRU VRSHQQHVVDQG WKHIDFWWKDWLWFORVHO\IROORZV JOREDOGHYHORSPHQWVDOORZ LWWRDSSURDFKLWVWDUJHWLQD VSHHGLHUPDQQHU7KHSDFNDJLQJVHFWRUSRVVHVVHVTXLWHD PRGHUQLQIUDVWUXFWXUHHVSHFLDOO\LQWHUPVRIWHFKQRORJ\ k%HFDXVHLWLVDQHZDQG\RXQJ VHFWRUDQGVHFWRUSOD\HUVDUH HGXFDWHGWHFKQRORJ\WKHIROORZLQJRIWHFKQRORJ\LVTXLWH high,” says Sadettin Korkut, and adds, “By following all the innovations in the world and DSSO\LQJWKHPWRWKHLURZQ businesses, they are able to anVZHUWKHLUFXVWRPHUV UHTXHVWV $QGEHFDXVHWKH\GRWKLVWKH\ FDQJRWRWKHKHDUWRI(XURSH DQGHDVLO\VHOOWKHLUJRRGVy (XURSHLVWKHVHFWRU VPRVW LPSRUWDQWPDUNHW([SRUWV PDGHWRWKHHXUR]RQHFRPSULVHqRIDOOH[SRUWV 0HDQZKLOHH[SORLWLQJWKH DGYDQWDJHRILWVJHRJUDSKLF SRVLWLRQ7XUNH\LVDOVRDFWLYHLQQHDUE\UHJLRQV6HPD .RPDQLQIRUPVXVWKDW,ûNODU The packaging sector, which cut capacity during the crisis due to slowing consumption, now sets its goals ever higher with rapid `khpmaÖ`nk^l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ers in Turkey, whose growth oJXUHVVKRZUDSLGLQFUHDVHV VHHWKHPVHOYHVDVEHLQJPXFK OXFNLHUDWWKLVVWDJH6DGHWtin Korkut says, “The most LPSRUWDQWULYDOVDUHLQWKH HXUR]RQHEXWWKH\DOVRKDYH GLIoFXOWLHVWKH\H[SHULHQFH GXHWRWKHLURZQG\QDPLFVy DQGFRQWLQXHVk7KLVEHFRPHV DQDGYDQWDJHIRUSDFNDJLQJ PDQXIDFWXUHUVLQRXUFRXQWU\y 7RGD\WKH7XUNLVKSDFNDJLQJVHFWRURIIHUVLWVVHUYLFHV RXWoWWHGZLWKHTXLSPHQWWKDW SURYLGHVWKHTXDOLW\VRXJKWE\ GHYHORSHGFRXQWULHV,QLWVRZQ GRPHVWLFPDUNHWPHDQZKLOH WKHVHFWRUJURZVE\DQVZHULQJ LQFUHDVHGFRQVXPSWLRQ2I FRXUVHWKHSUHVHQFHRILPSRUWHGJRRGVFRQVXPHGLQWKH GRPHVWLFPDUNHWZKHWKHUGXH WRIRUHLJQWUDGHSROLFLHVRUORZ FXUUHQF\H[FKDQJHUDWHVFDQQRWEHGHQLHG+RZHYHUDVWKH 7XUNLVKSDFNDJLQJVHFWRUEHWWHU SURPRWHVLWVJHDUZKHWKHULQ WKHVWUXFWXUDORULQWKHWHFKQRORJLFDOVHQVHWKHPDQXIDFWXUH RIWKHVHSURGXFWVLQ7XUNH\ZLOO DOVRFRPHWRWKHDJHQGD 27 28 Briefing LEGUMES THE GRANARY OF THE WORLD One of the world’s top producers and exporters of legumes, Turkey is entering a period of courageous international promotion BY AYŞEGÜL SAKARYA I T IS THE 1980. Mahmut Arslan is a young man in Istanbul who has graduaWHGZLWKDGHJUHHLQPHFKDQLFDOHQJLQHHULQJ+HGHFLGHVWR start his business life in MerVLQEHVLGHKLVIDPLO\+LVGUHDPLVWRSUDFWLFHKLVRZQSURIHVVLRQ7KHHFRQRPLFFRQditions of the time were unFRRSHUDWLYHDQGDIWHUVWD\LQJ XQHPSOR\HGIRUD\HDUKH WRRNDUDGLFDOGHFLVLRQWRHQter the business of legumes, KLVIDWKHU VEXVLQHVV0DKPXW Arslan, also taking his brotKHUV+ËVH\LQ+DVDQDQG $OLE\KLVVLGHSODQWHGWKHQ SODQWHGWKHVHHGVRI$UEHO ZKLFKLVDPRQJWKHZRUOG V JLDQWVWRGD\ )RU$UEHOZKLFKZDVHQJDJHGLQZKROHVDOHDQGSUL- MAY-JUNE 2011 ISSUE 4 YDWHODEHOSURGXFWLRQIURPLWV founding through the end of the 1990s, an invitation from Canada—the world leader in OHJXPHSURGXFWLRQDQGH[SRUWVRSHQHGXSDQHZHUD 0DKPXW$UVODQDFFHSWLQJ WKHVSHFLDOPHHWLQJUHTXHVW from Canada’s Minister of AgULFXOWXUHJDLQHGWKHRSSRUWXQLW\WRWDNHWKHoUVWVWHSLQ RSHQLQJXSWRJOREDOPDUNHWV :LWKVSHFLDOVXSSRUWSURYLded by Canada, Arbel made LWVoUVWLQYHVWPHQWDEURDGLQ LQ&DQDGD)LUVWDUHG OHQWLOFUDFNLQJSODQWZDVIRXQGHG$UEHOZKLFKDIWHUward saw that there was a sigQLoFDQWSURGXFWLRQRISHDV LQWKHFRXQWU\EXWWKDWWKH SHDVZHUHQRWSXWWRJRRGXVH WKHQWRRNDGHFLVLRQWRHVWDE- Arbel aims to enter the ranks of the world’s top producers with a yearly capacity of 160,000 tons on completion of new line investments OLVKDSHDSHHOLQJSODQW:LWK WKHSHDLQYHVWPHQWLQ&DQDGDWKHFRPSDQ\WRRNLWVoUVW VHULRXVVWHSWRZDUGEHLQJ 1RUWK$PHULFD VODUJHVWOHJXPHFRPSDQ\$UEHOFROOHFWHGWKHoUVWIUXLWRILWVLQYHVWPHQWVLQ%\WKHHQG RI-XO\WKH$UEHO*URXSKDGERXJKWWKH&DQDGLDQ FRPSDQ\$JWHFKDVVHPEOHG WKHLUFRPSDQLHVLQ&DQDGD $PHULFD$XVWUDOLDDQG0HUsin under the roof of the AlOLDQFH*UDLQ7UDGHUV,QFRPH Fund (AGT); and gone fully SXEOLFLQWKH7RURQWR6WRFN ([FKDQJH7RGD\WKHJURXS UDQNVDV&DQDGD VODUJHVWSURGXFHURIOHJXPHV$OOLDQFH *UDLQ7UDGHUVZKLFKH[SRUWV WRFRXQWULHVKDVWKHFDSDFLW\WRSURFHVVPLOOLRQWRQV DQQXDOO\LQLWVSURFHVVLQJ SODQWV$UEHOLQYHVWLQJLQWZR VHSDUDWHKHPLVSKHUHVZLWK KROGLQJVLQ7XUNH\WKH86 Australia, and Canada, thus EHLQJFDSDEOHRI\HDUURXQG OHJXPHSURGXFWLRQXVHGWKLV DELOLW\WREHFRPHDJOREDOSOD\HULQOHJXPHVIURPSURGXFWLRQWRPDUNHWLQJ At the beginning of November, Arbel bought \HDUROG(QJOLVKIRRG FRPSDQ\$3RRUWPDQRQH RIWKHZRUOG VEHVWLQWKHoHOG RIEHDQVIRUPLOOLRQSRXQGVVWHUOLQJk7KHFRPSDQ\ ZKLFKKDVDQLPSRUWDQWFXVWRPHUSRUWIROLRZLOOSOD\DQ LPSRUWDQWUROHLQWKHVKLSSLQJDQGGLVWULEXWLRQRIWKH SURGXFWVSURFHVVHGLQIDFLOLWL- The Turkish Perspective HVORFDWHGDURXQGWKHZRUOG SDUWLFXODUO\WR(8FRXQWULHVy VD\V$UEHO*URXS&(2+ËVH\LQ$UVODQ2QFRPSOHWLon of its revision and its new OLQHLQYHVWPHQWWKHFRPSDQ\ ZKLFKLVSODQQLQJDQDGGLWLonal 2 million dollars of inYHVWPHQWLQLWV&KLQDIDFLOLWLHVWKLV\HDUZLOOLQFUHDVHLWV DQQXDOSURGXFWLRQFDSDFLW\ E\ 3URGXFLQJXQGHUWKH$UEHO and Arbella brand names, the FRPSDQ\LVDOVRVWDNLQJDFODLPLQWKHSDVWDEXVLQHVV+Ëseyin Arslan says that they will enter the ranks of the ZRUOG VWRSSURGXFHUVZLWK D\HDUO\FDSDFLW\RI WRQVRQFRPSOHWLRQRIWKHLUQHZOLQHLQYHVWPHQWV$OVR SRVVHVVLQJLQYHVWPHQWVLQWKH ULFHVHFWRUWKHFRPSDQ\ZLOO have 20,000 tons of storaJHVSDFHDQGDWRQGDLO\ SURFHVVLQJFDSDFLW\IRUKXOOHG ULFHk8QWLOWRGD\ZHZRUNHG ZLWKDQHPSKDVLVRQLPSRUWHGULFH:LWKWKHFRPSOHWLRQRIRXUQHZIDFLOLW\ZHZLOO SOD\DQDFWLYHUROHLQWKHSURFHVVLQJDQGH[SRUWRIGRPHVWLFULFHyVD\V+ËVH\LQ$UVODQ 8QGRXEWHGO\WKHVWUHQJWK RI7XUNH\LQWKHVHFWRUVHQFRPSDVVLQJJUDLQVOHJXPHV and oil-bearing seeds—a FDWHJRU\WKDWLQFOXGHV$UEHOKDVKDGDQHIIHFWRQWKH FRPSDQ\ VJURZWK7XUNH\ LVoUVWLQWKHZRUOGLQpRXU H[SRUWVLWLVDOVRWKHoIWK ELJJHVWSURGXFHURISDVWDDQG WKHVHFRQGELJJHVWH[SRUWHURI SDVWDJOREDOO\)XUWKHUPRUH LWLVDPRQJWKHZRUOG VWRS SURGXFHUVDQGH[SRUWHUVRIOHJXPHV7XUNH\ZKLFKLVLQWKH WRSoYHLQJOREDOSURGXFWLRQ RIDOOJURXSVRIOHJXPHVFRQFHQWUDWHVRQ1RUWK$PHULFDQ DQG0LGGOH(DVWHUQFRXQWULHV LQLWVH[SRUWV$SSUR[LPDWHO\ pRXUIDFWRULHVRSHUDWHLQ 7XUNH\ZKLFKLVDPRQJWKH WRSVHYHQFRXQWULHVLQWKH ZRUOGLQZKHDWSURGXFWLRQ with an average yearly harvest “Turkey’s production power in the sector Zelh]bk^\merk^×^\mlhgbml^qihkml'Ma^^qports of the grain, legume, and oil-bearing seeds sector, which accounts for 3.62% of our country’s total exports, increached 4.1 billion ]heeZklËlZrlFZafnm:kleZg RIPLOOLRQWRQV:KLOH PLOOLRQWRQVRIpRXUDUH SURGXFHG\HDUO\WKHSDUWRI WKLVJRLQJIRUH[SRUWH[FHHGV PLOOLRQWRQV k7XUNH\ VSURGXFWLRQSRZHU LQWKHVHFWRUDOVRGLUHFWO\UHIOHFWVRQLWVH[SRUWVyVD\V0DKmut Arslan, Arbel Board Chairman and President of the Mediterranean Cereals, Pulses, 2LO6HHGVDQG3URGXFWV([SRUWHUV8QLRQDGGLQJk7KH H[SRUWVRIWKHJUDLQOHJXPHDQGRLOEHDULQJVHHGVVHFWRUZKLFKDFFRXQWVIRU RIRXUFRXQWU\ VWRWDOH[SRUWV LQFUHDVHGLQE\ RYHUUHDFKLQJWKHOHYHO RIELOOLRQGROODUVy6WURQJ LQWKH0LGGOH(DVWDQG1RUWK $IULFDWKHVHFWRUDOVRH[SRUWV VLJQLoFDQWDPRXQWVWR(XURSHDQFRXQWULHVVXFKDV,WDO\ Germany, and the NetherODQGV,UDTWRZKLFKPLOOLRQGROODUV ZRUWKRIH[SRUWV were made last year, is among WKHPRVWLPSRUWDQWPDUNHWV ,UDTLVIROORZHGE\6\ULDZLWK PLOOLRQGROODUVRIH[SRUWV and Saudi Arabia with 94 milOLRQGROODUVRIH[SRUWV:KLOHQHZPDUNHWVVXFKDV6X- dan and Bangladesh have lately been gaining strength, efIRUWVWRLQFUHDVHH[SRUWVWR (XURSHDOVRFRQWLQXHk,ISURGXFWLRQDQGSURGXFWLYLW\ULVH 7XUNH\KDVWKHSRWHQWLDOWREH (XURSH VJUDQDU\yVD\V0HKmet Reis, Chairman of the %RDUGRI5HLV*GD +DYLQJSODFHGDQH[SRUWV WDUJHWRIELOOLRQGROODUV IRUH[SRUWHUVGHFLGHG WRFUHDWHDSURPRWLRQJURXSWRWKLVHQG6DOLK±]PHQ Board Member of the Aegean Cereals, Pulses, Oil Seeds DQG3URGXFWV([SRUWHUV8QLRQVDLGWKDWWKH\GHFLGHGWR FUHDWHWKUHHGLIIHUHQWSURPRWLRQJURXSVQDPHO\6XJDU DQG6XJDU\3URGXFWV)ORXU DQG)ORXU3URGXFWVDQG3DVta, Bulgur, Legumes and ProGXFWV+HVD\Vk'XHVDPRunting to a ratio of one in RQHWKRXVDQGZLOOEHDSSOLHG LQRXUWKUHHSURPRWLRQJURXSV:LWKWKHPLOOLRQGROlar budget that will therefoUHHPHUJHSURPRWLRQZLOOEH FDUULHGRXWDWLPSRUWDQWIDLUV LQWKHZRUOGDWODUJHy$OWKRXJKH[SRUWHVWLPDWHVIRU DUHSRVLWLYHJURZWKLVGLUHFWO\ related to the situation in PDUNHWVUHFHLYLQJWKHH[SRUWV “International markets are an DUHDLQZKLFKPDQ\IDFWRUV DUHFORVHO\UHODWHGWRHDFKRWKHU7RWKLVHQGIDFWRUVVXFK DVSURGXFWLRQTXDQWLWLHVLQ RWKHUFRXQWULHVDQGH[SRUW EDQVWKDWFRXOGEHVHWLQUHODWLRQWRWKLVWKHSULFHVRIVXEVWLWXWHJRRGVFKDQJLQJFRQVXPHUSUHIHUHQFHVDQGGHPDQG ZLOOLQpXHQFHH[SRUWoJXres,” says Mahmut Arslan, and FRQWLQXHVk$WWKHVDPHWLPH LQOLJKWRIUHGXFHGLPSRUWV E\WKHVHFWRUGXHWRLQFUHDVHGSURGXFWLRQDQGOHVVHQLQJ RIWKHXVHRILPSRUWHGLQWHUPHGLDU\JRRGVLQH[SRUWSURGXFWVPRUHDGGHGYDOXHZLOO EHOHIWIRURXUFRXQWU\:LWK WKHVHPDWWHUVLQFRQVLGHUDWLon, it is thought that 2011 will JRSRVLWLYHO\IRUWKHVHFWRUy 29 30 Briefing Organic products y young GHVLJQHUVWKHFKDQFHWRSURPRWHWKHLUFROOHFWLRQV ORGANIC TEXTILES Nature Is Changing Fashion With advantages in raw materials and Önal product manufacturing, Turkey is among the countries with a promising future in organic textiles, the fastest-growing subsegment of the textile sector BY MERVE KARA T BY ŞEREF YILMAZ way to FORVHO\IROORZIDVWIDVKLRQ ZKLFKKDVEHFRPHDPDLQVWUHDPFRQVXPSWLRQWUHQG in fashion over ten years: VKRSSLQJPDQLD&ROOHFWLRQV WKDWFKDQJHHDFKZHHNDQG VDOHVSHULRGVWKDWVWDUWDQG end in the blink of an eye KDYHLQDVKRUWWLPHEHFRPH with their seasonly—not seasonal—designs, the most DFWLYHDQGFURZGHGVWDJHRI UHDG\WRZHDUFORWKLQJIDVW IDVKLRQLQGHHG6DWLVI\LQJ the demands of more restless FXVWRPHUVZKLOHEUHDWKLQJ new life into the ready-towear industry, although the trend may seem like one of WKHWUDLOEOD]LQJLGHDVRIWKH FHQWXU\LWLVQRWDVLQQRFHQW DVLWPD\VHHP7KHQHJDWLYH HIIHFWVRIIDVWIDVKLRQRQWKH HQYLURQPHQWDQGVRFLHW\DUH RQHRIWKHKRWWHVWGHEDWHWRSLFVRIWRGD\(XURSHOHDGVWKH SDFNLQWKHFRQVXPSWLRQRI HERE IS JUST ONE MAY-JUNE 2011 ISSUE 4 IDVWIDVKLRQZKRVHVLGHHIIHFWV SDUWLFXODUO\WKRVHLQpLFWHGRQ the environment, have now FRPHWRDOHYHODWZKLFKWKH\ FDQQRWEHLJQRUHG$FFRUGLQJ WRWKH&ORWKLQJ$FWLRQ3ODQ UHSRUWSUHSDUHGE\'()5$ WKH'HSDUWPHQWRI(QYLURQment, Food, and Rural Af- Beginning with organic cotton production in 1980, Turkey has been the third largest producer in the world fairs), one of Britain’s leading HQYLURQPHQWDORUJDQL]DWLRQV PLOOLRQWRQVRIFORWKLQJDUH ERXJKWLQ(QJODQGHDFK\HDU ZKLOHDoIWKRIDOOFORWKLQJ SXUFKDVHVDUHFRPSULVHGRI IDVWIDVKLRQSURGXFWV7KHVH SURGXFWVZKLFKKDYHDQDYHUage shelf life of three months, WUXO\DUHSURGXFHGZLWKWKH mindset that they will be GLVSRVHGRIDIWHUEHLQJXVHG IRUDYHU\VKRUWWLPH%HFDXVH DVLJQLoFDQWSURSRUWLRQRI WKHDSSUR[LPDWHO\PLOOLRQ WRQVRIWH[WLOHVWKURZQRXW HDFK\HDUDUHSURGXFHGXVLQJ environmentally harmful dyes DQGEOHDFKHVWKH\FDQFDXVH DUDQJHRISUREOHPVIURPWKH release of methane gas to waWHUSROOXWLRQDQGIXWXUHKHDOWK LVVXHV+RZHYHUFRQVXPHUV awareness on the matter is ULVLQJIURPGD\WRGD\+DYLQJ PDGHVSDFHIRUWKHRUJDQLF LQQHDUO\DOOIDVWPRYLQJFRQVXPHUJRRGVIURPFRVPHWLFV WRIRRGDQGGULQN(XURSH DQG$PHULFDWRSWKHOLVWRI PDUNHWVLQZKLFKWKLVWUHQGLV IHOWPRVWVWURQJO\7XUNH\WKH PRVWLPSRUWDQWH[SRUWHUWR these markets, stands out for LWVDGYDQWDJHRXVSRVLWLRQLQ RUJDQLFWH[WLOHV 7XUNH\ZKLFKEHJDQZLWK WKHSURGXFWLRQRIRUJDQLFFRWWRQWKHPRVWLPSRUWDQWUDZ PDWHULDOLQRUJDQLFWH[WLOHSURGXFWLRQLQWKHVDQGKDV EHHQDZRUOGOHDGHULQWKHoHOG for more than 20 years, ranks DVWKHWKLUGODUJHVWSURGXFHULQ WKHZRUOGFRPLQJDIWHU,QGLD DQG6\ULD3URGXFWLRQRIRUJDQLFFRWWRQKDVIURP PHWULFWRQVLQq WRWRQVMXVWRYHU million bales, grown on 4,600 VTXDUHNLORPHWHUVRIODQGLQ q$FFRUGLQJWRWKH 7H[WLOH([FKDQJHD7H[DV 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KDQGLWVWDUWHGVHDUFKLQJIRU PDUNHWVRQWKHRWKHU,QLWLDWing its efforts with the slogan k2UJDQLF)DVKLRQü]PLUyWKH DVVRFLDWLRQWKHQH[SDQGHG LWVVFRSHWRSDUWLFLSDWHLQWKH (FRORJ\ü]PLU2UJDQLF 3URGXFWV)DLUKHOG0D\q DVSDUWRILWVPDUNHW VHDUFKLQJDFWLYLWLHV(*6' ZKLFKDLPVWRH[SRUW PLOOLRQHXURV ZRUWKRIRUJDQLF WH[WLOHVIURPü]PLULQ LVHQJDJHGLQFRPSUHKHQVLYH HIIRUWVWRDGGUHVVQHZVHDUFKLQJLQWKHWH[WLOHVHFWRUüVPDLO *ËOOHSRLQWVRXWWKDWLWDOVR FUHDWHVDVHULRXVRSSRUWXQLW\ LQWHUPVRISURGXFWGLIIHUentiation, one of the most LPSRUWDQWGLIoFXOWLHVRIWKH IDVWIDVKLRQWUHQG,VH[SHFWHG WKDWü]PLU VFXUUHQWH[SRUWV to the rest of the world, worth DURXQGqPLOOLRQGROODUV ZLOOPXOWLSO\LQYROXPHHDFK \HDU /DUJHFRWWRQEX\HUVVXFKDV Nike, Timberland, Marks & 6SHQFHU+0,NHD/HYL V :DO0DUWDQG*DSFRPSDQLHVWKDW7XUNH\DOVRGRHVSURGXFWLRQIRUDUHH[SHFWHGWR LQFUHDVHWKHLUSXUFKDVHVRIRUJDQLFFRWWRQWRE\ 6HYHUDOSLRQHHULQJEUDQGVLQ 7XUNH\ZKLFKLVQRZWKHWRS FRXQWU\SURGXFLQJFORWKZRven with natural thread, have DOUHDG\LQFRUSRUDWHGRUJDQLF PDWHULDOVLQWRWKHLUFROOHFWLRQV <HûLP7HNVWLODPDQXIDFWXULQJ SDUWQHURI1LNHDQG*DSWKDW DOVRGRHVSURGXFWLRQIRUVXFK EUDQGVDV%DQDQD5HSXEOLF Old Navy, Zara, Pull & Bear, 0DVVLPR'XWWL(VSULW+XJR %RVV/DQGV (QG7FKLERDQG 6FKODIJXWXVHVWKUHDGPDGH from bamboo and soy in its SURGXFWV0DYL-HDQVDVWURQJ denim brand both in the doPHVWLFDQGWKHJOREDOPDUNHW OHDGVWKHZD\RIWKHRUJDQLF PRYHPHQWZLWKLWVFROOHFWLRQ WLWOHGk0DYL2UJDQLNy$QRWKHU Turkey, with its accumulation of knowledge in textile production, accounts for 4.8% of the world’s organic cotton production, is in the top ranks of countries with a promising future in organic textile 100% 55,000 14,000 SLRQHHUWKH%266$EUDQG is also among those moving WRZDUGPDQXIDFWXULQJSURFHVVHVWKDWDUHUHVSHFWIXOWRWKH HQYLURQPHQWKDYLQJFUHDWHG DQHZFROOHFWLRQLQWKHJURXS RIHFRORJLFDOSURGXFWVPDGH ZLWKRUJDQLFFRWWRQHFRORJLFDOO\VDIHG\HDQGOHVVZDWHU :KLOH6DUDURIIHUVDQRUJDQLF FROOHFWLRQIRUZRPHQ%LJ6WDU -HDQFRQWLQXHVLWVELJRYHUWXUH ZLWKLWVHFRORJLFDOPLQLVNLUWV 3URI'U,ûN7DUDN¹RþOXRQH RIWH[WLOHV OXPLQDU\oJXUHV SRLQWVRXWWKDWWKLVLVLQGLVSHQVDEOHIRUWKHHIIRUWVRI7XUkey, ranking third in the world IRURUJDQLFFRWWRQSURGXFWLRQ LQWKHJOREDOIDVKLRQVHFWRU $FFRUGQJWR7DUDN¹RþOXD IRUPHUIDFXOW\PHPEHURI(JH 8QLYHUVLW\ V'HSDUWPHQWRI 7H[WLOH(QJLQHHULQJWKHULVHRI RUJDQLFWH[WLOHVLVDQRSSRUWXQLW\WKDW7XUNH\FDQ WDIIRUG WRPLVV 6ROGRQWKHPDUNHWDWSULFHV qKLJKHUWKDQFRQYHQWLRQDOWH[WLOHSURGXFWVGXHWR UHDVRQVVXFKDVWKHLQFUHDVHG FRVWRIRUJDQLFFRWWRQSURGXFWLRQDQGDGGLWLRQDOLQVSHFWLRQVGXULQJWH[WLOHSURFHVVLQJ LWLVWUXHWKDWRUJDQLFWH[WLOH SURGXFWVZLOOQRWEHFRPH mainstream within a short SHULRG%XWWKHUHLVQRGRXEW WKDWLWZLOOEHFRPHPRUH ZLGHVSUHDGDQGORQJHUODVWLQJ LQWKHPDUNHW EXPORTS OF ORGANIC TEXTILE PRODUCTS BY COUNTRIES (000 DOLLARS) 22.1% 12,000 Germany is the country to which Turkey exports the most organic textiles. Its share is more than that of bottom nine countries combined 10,000 8000 12.1% 16.9% 11.3% 6000 7.9% 4000 6.3% 4.0% 4.0% 2000 3.3% 3.0% 2.4% 2.4% 1.7% CZECH REPUBLIC CANADA POLAND DENMARK HOLLAND GREECE OTHERS TOTAL Data: EXPORT PROMOTION CENTER OF TURKEY 1.0% 1.0% 0.8% 0 GERMANY SWEDEN UNITED KINGDOM USA FRANCE SPAIN SWITZERLAND SOUTH KOREA ITALY 31 32 Briefing Nestle, ThyssenKrupp and Bank of Tokyo 0LWVXELVKL8)-DQQRXQFHG new investments in Turkey INVESTMENTS i8F$BNF/PUUP-PPL but to Stay” Investment and cooperation agreements announced within less than one month are all important indicators providing hints on how the year 2011 will go BY CEYHAN AKSOY L ATELY, EMPLOYEES of WKH5HSXEOLFRI7XUNH\ Prime Ministry Investment 6XSSRUWDQG3URPRWLRQ $JHQF\,63$7KDYHSUDFWLFDOO\KDGQRWLPHHYHQWR VFUDWFKWKHLUKHDGVDIWHU all, getting global giants to invest in Turkey within the SDVWWZRPRQWKVZDVQRHDV\ WDVN)LUVWWKHZRUOG VOHDGLQJ IRRGDQGGULQNVFRUSRUDWLRQ 1HVWOHDQQRXQFHGRQ0DUFK 24 that it would establish 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Abdullah Gül, who spoke about the ambitious goals that Turkey has set in ZeZk`^gnf[^kh_Ö^e]l_hkma^g^qmm^g years. The former Foreign Minister is quite \hgÖ]^gmmaZmma^\hngmkrpbee^f^k`^ZlZ strong global player thanks to its geographic position, young population, and favorable investing environment BY CEYHAN AKSOY “W BY ŞEREF YILMAZ HZLVKWREHDPRQJWKHWHQODUJHVWHFRQRPLHVLQWKHZRUOGDQGDVLJQLoFDQW global player with new international brands and companies that will be able to reach 500 billion dollars in exports,” says Mr. Abdullah Gül, the President of the Republic of Turkey. In terms of timing, the above is a very meaningful statement. President Abdullah Gül, offering his evaluation as to the point Turkey has reached both politically and economically in the last decade to the Turkish Perspective, spoke about his expectations just after the Turkish Exporters Assembly announced the Turkish Exports Strategy 2023. Gül VD\VKHLVFRQoGHQWWKDW7XUNH\ZLOOFRQWLQXHWREHDPRQJWKHIDVWHVWJURZLQJHFRQRPLHVLQ WKHZRUOGLQWKHQH[WoYH\HDUVk+RZHYHURXUSODQVIRUWKHIXWXUHH[WHQGEH\RQGWKHIRUWKFRPLQJoYH\HDUVDQGZHVHWRXUJRDOVIRUWKH\HDUZKHQZHFRPPHPRUDWHWKHWK Anniversary of the foundation of our Republic,” he says. The objective of producing 2 trillion dollars of GDP and 25,000 USD of per capita income by 2023 seems more and more realistic after listening to the concrete strategies the President set to achieve these goals. After a long experience in diplomacy as Foreign Minister, Chief Negotiator, and also Prime Minister, Abdullah Gül describes the best way toward becoming a democratic, stable country that upholds and promotes all the universal values cherished by the international community as a whole. 35 36 Cover / Interview with The President Abdullah Gül mabgdMnkd^rÉ ma^lbqm^^gma eZk`^lm^\hgh& frbgma^phke] Zg]ma^lbqmaeZk`^lmbg>nkhi^Épbee [^bgÖo^r^Zkl8 2YHUWKHODVWGHFDGH7XUNH\KDVDFFRP SOLVKHGDJUHDWWUDQVIRUPDWLRQSURFHVV DQGKDVLPSOHPHQWHGVZHHSLQJVWUXFWXUDO UHIRUPVLQWKHHFRQRPLFoHOG5DQNLQJDV WKHVL[WHHQWKODUJHVWHFRQRP\LQWKHZRUOG DQGVL[WKLQ(XURSH7XUNH\LVQRZDQ DFWLYHPHPEHURI*WKDWUHSUHVHQWVWKH PDMRUHFRQRPLFSRZHUVRIWKHZRUOG:H H[SRUWWRQHDUO\WZRKXQGUHGFRXQWULHV DQGZHKDGDWUDGHYROXPHUHDFKLQJ DOPRVWELOOLRQGROODUVLQ :HZLOOPRVWO\IRFXVRQQDUURZLQJ WKHFXUUHQWWUDGHGHoFLWGLPLQLVKLQJWKH UDWHRIXQHPSOR\PHQWDQGFRQWLQXLQJ RXUVWUXFWXUDOUHIRUPV VRZHFDQKDYHDQ HFRQRP\WKDWLVPRUH SURVSHURXVUHVLOLHQW DQGVWDEOH,DPFRQ oGHQWWKDW7XUNH\ZLOO FRQWLQXHWREHDPRQJ WKHIDVWHVWJURZLQJ HFRQRPLHVLQWKHZRUOG RYHUWKHQH[WoYH\HDUV +RZHYHURXUSODQV IRUWKHIXWXUHH[WHQG EH\RQGWKHIRUWKFRP LQJoYH\HDUVDQGZH VHWRXUJRDOVIRUWKH \HDUZKLFKLV ZKHQZHVKDOOFRP PHPRUDWHWKHFHQWHQ QLDORIWKHIRXQGDWLRQ RIRXU5HSXEOLF:H ZLVKWREHDPRQJWKH WHQODUJHVWHFRQRPLHV LQWKHZRUOGDQGD VLJQLoFDQWJOREDOSOD\HU ZLWKQHZLQWHUQDWLRQDOEUDQGVDQGFRP SDQLHVWKDWZLOOEHDEOHWRUHDFKELOOLRQ GROODUVLQH[SRUWV:HZLVKWRSURGXFH WULOOLRQGROODUVRI*'3E\,QWHUPV RISHUFDSLWDLQFRPHZHDLPWRUHDFK 86':HEHOLHYHWKDWWKHV\QHUJ\ DQGWKHHPSOR\PHQWRSSRUWXQLWLHVWKDW ZLOOEHEURXJKWE\DOOWKHVHJRDOVZLOOFUHDWH QHZJURZWKIRUWKHDGYDQFHPHQWRI7XUN LVKHFRQRP\ Bgpab\aZk^Zl]h^lma^Mnkdbla ^\hghfrg^^]mh_h\nlbghk]^kmh`^m mhZ[^mm^kieZ\^8Pab\aoZen^&Z]]^] l^\mhklfb`amMnkd^r_h\nlhg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oHOGRI ODQGWUDQVSRUWDWLRQEXWDOVRLQWKHUDLOZD\ PDULWLPHFLYLODYLDWLRQDQGWHOHFRP PXQLFDWLRQVVHFWRUV:HVKRXOGNHHSWKLV PRPHQWXPLQWKH\HDUVDKHDG 7XUNH\KDVVLJQLoFDQWSRWHQWLDOH[SHUL HQFHDQGkNQRZKRZyLQWKHFRQVWUXFWLRQ Mnkd^rblZ ob[kZgm@&+) ^\hghfr maZmZllnf^l g^p`eh[Ze k^lihglb[bebmb^l bgma^k^lhenmbhg h_`eh[Ze ^\hghfb\ ikh[e^fl U9788 ; 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We are witnessing important tensions and transformations in our region. As such, isolation or exclusion is not a viable option in this part of the world where local problems can quickly cascade into regional crises. Against this backdrop, the general philosophy of Turkish foreign policy is to strive for peace and stability through dialogue and cooperation. We try to XQGHUWDNHWKLVLPSRUWDQWWDVNoUVWO\E\ mobilizing our political, economic, and KXPDQUHVRXUFHVWREXLOGFRQoGHQFHLQ our region. Our policy towards neighboring regions is predicated on the principle MAY-JUNE 2011 ISSUE 4 of achieving maximum intra and interregional cooperation to achieve stability. Our efforts are driven by principles of engagement, dialogue, reconciliation and cooperation. In today’s world of intense interaction, we simply do not have an alternative. We have to be open, inclusive, forthcoming, and sincere to all. I am aware that in recent years, comments have occasionally been made alleging that this approach has led to a change in the priorities and focus of Turkish foreign policy. These allegations are groundless and unfair. We are pursuing a dynamic and multi-dimensional foreign policy, without eroding in any way our traditionally strong ties with our friends, allies, and partners in the West. Yes, it is true that in recent years we have been able to improve and further advance our relations with the countries in the region, and particularly with those in the Balkans, the Middle East and the Black Sea basin. We believe that enhanced cooperation in the region based on mutual interests and common values does constitute a sound basis for peace and stability. Within the larger framework of our foreign policy, our relations with different countries and regions are complementing each other, rather than substituting and/ or providing an alternative. PHOTOGRAPH BY TOLGA ADANALI - MUSTAFA ÖZTARTAN - VOLKAN FURUNCU “The general philosophy of Turkish foreign policy is to strive for peace and stability through dialogue and cooperation” Ma^MnkdblaI^kli^\mbo^ PHOTOGRAPH BY ŞEREF YILMAZ 2QDOPRVWDQ\PDMRULQGLFDWRUVXFKDV WKHIRUHLJQLQYHVWPHQWVLQ7XUNH\7XU NH\ VWUDGHZLWKWKHZRUOGWKHGLVWULEX WLRQRI7XUNLVKVWXGHQWVDEURDGDQGWKH FRPSRVLWLRQRIWKHWZHQW\o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kD[LVyLQWKHZRUOGSROLWLFVEXWKDV 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A Turkey is now an open e Exports, which were around 28 billion dollars in 2000, ended the year 2010 with 113 billion dollars. The target for just 12 years later, on the other hand, is 545 billion dollars free trade can be a tramp And TIM, which a The average annual increase in exports needed for this is estimated to be 12.2% between 2009 and 2023. The estimated global volume of trade in this scenario, meanwhile, is 34.3 trillion dollars “sustainability” to its “exp strategy, is after 1 % mo A strategic performance management tool, Balanced Scorecard integrates numerous management systems such as Management by Objectives, Total Quality Management (TQM), and process improvement MAY-JUNE 2011 ISSUE 4 The Turkish Perspective e of pride for ? Absolutely... David Ricardo A classical economist who lived 1772 to 1823 and showed how effective free trade is in the development of a country with his Theory of Comparative Advantage n example as to how mpoline for a country. For TIM to achieve its 500 billion dollar export target for 2023, it must take a share in world trade of 1% in 2013, 1.25% in 2018, and Önally 1.4/% in 2013 h added the principle of xport oriented production” During the preparation of the 2023 Export Strategy, the Balanced Scorecard methodology, considered the most impressive management idea of 75 years by Harvard University, was adapted to the conditions of Turkey more of the world trade 51 52 In Depth / Export Strategy 2023 While TIM had 14 workshops and 72 determined 72 criteria as well as various measurements in order to measure the results of the strategy, it also analyzed scenarios on global dynamics for the next 10 years. According to the main scenario, emerging markets will gain weight and industries with high potential will shift toward emerging markets. Therefore TIM developed a comprehensive strategy which sets forth structural transformations in all the exporter industries. STRUCTURAL OVERHAUL BALANCED SUSTAINABLE COMPETITIVE MARKET FOCUSED MARKET SHARE EXPANSION INNOVATION STABLE/UNINTERRUPTED GROWTH TECHNOLOGY PRODUCTIVITY BRANDING DEVELOPMENT PLAN LL, FA T O RS OS RTE T M PO EN EX NM O ER T T OV OR E G PP TH SU S, ND ION A UT ION TIT VIS INS OTH IC BL E B PU OVID PR Government Economic Coordination Board W EX ITH T PO HE RT A ER DD S S ED TR SU IVE PP TO ORT RE OF AC UM HT B HE REL TA LA RG OR ET GA N IZA TIO NS , MINISTRIES NATIONAL EXPORT STRATEGY IMPLEMENTATION AND PERFORMANCE MANAGEMENT MODEL UNDERSECRETARIAT FOR FOREIGN TRADE TURKISH EXPORTERS ASSEMBLY EXPORTERS’ UNIONS 23-Sector Export Strategy Implementation Plan Companies GRADUAL PROGRESS BILLION DOLLARS MAY-JUNE 2011 ISSUE 4 2000 2008 2013 2018 2023 28 132 167.3 293.4 545.15 The Turkish Perspective Five-Year Plans THREE VISIONS, THREE TERMS The export strategy prepared by TIM splits the 2008-2023 period into fiveyear portions, forecasting different targets for each term. Shift toward new products and a new set of sectors Possessing own technology Preparing for leadership and new challenges in determined areas L EA D ER S HIP Exporting more products superior in terms of raw materials and independent of foreign sources Transformation through modernization and innovation in fields in which superiority and know-how already exists Rapid expansion to target markets Maximal utilization of existing sectors’ potential, rapid creation of resources, and planning for investments in sectors that will create the transformation Sector diversity INV EST S MENT PROGRES The removal of technical barriers before exports Renewable and alternative energy sources Focusing on new sets of sectors that will increase the share of high-tech products within exports R&D investments and capacity, and the purchase of companies engaged in the production of medium and high level technologies Strengthening means of financing Drawing foreign capital to the country Completion of infrastructural needs Focus and investment in sectors that will create the transformation 53 54 In Depth / Export Strategy 2023 THE PLACE OF EXPORTS WITHIN ECONOMIC DEVELOPMENT AND VALUE ADDED TO THE ECONOMY ENSURE THE STABLE GROWTH OF EXPORTS INCREASE EXISTING MARKET SHARES REACH TARGET MARKETS WITH HIGH GROWTH POTENTIAL AND INCREASE MARKET SHARE IMPROVE NUMBER OF EXPORTERS AND EXPORT CAPACITY INCREASE EXPORTERS’ GLOBAL COMPETITIVE ABILITY VIA SECTORIAL LEADERSHIP, SCIENCE, TECHNOLOGY, AND INNOVATION FULFILL EXPORTERS’ NEEDS IN A TIMELY AND EFFECTIVE MANNER INCREASE RECOGNITION OF TURKISH BRANDS DRAW FOREIGN CAPITAL AND INVESTORS TO THE COUNTRY URGE INNOVATION/R&D INVESTMENTS AND APPLICATIONS BALANCE DEFICIENCIES IN EXPORTS INFRASTRUCTURE AND ADAPT TO ENVIRONMENTAL RESPONSIBILITIES STRENGTHEN BILATERAL AND MULTILATERAL COOPERATION IN TRADE SECURE EFFECTIVE LEGISLATION AND LEGAL ARRANGEMENTS ENSURE THE EFFECTIVE AND PRODUCTIVE USE OF FINANCIAL INSTRUMENTS AND TOOLS OF COMMERCIAL SUPPORT MOVE FROM LOW SKILL TO HIGHLY PRODUCTIVE AND SKILLED HUMAN CAPITAL ENSURE SPEEDY ACCESS TO ACCURATE INFORMATION AND MARKET INTELLIGENCE Eventual outcomes expected from the 18 targets set for exporting sectors in general can be listed as: c0++*-/$)"0-& 4L.($/$*)/*-)&(*)"/# 2*-'L./*+87'-" ./ economies HARMONIZE RELATIONS BETWEEN THE PUBLIC, PRIVATE SECTOR, NGOS, AND UNIVERSITIES MAY-JUNE 2011 ISSUE 4 PROVIDE ACTIVE STRATEGIC GOVERNANCE c*)/-$0/$)"/*/# 1$.$*)*!0-& 4.'$*0/$)/# 1 '*+( )/') in terms of competitive ability, jobs, and regional development c)Ĝ)''4B -)$)"<77$''$*)*''-.*!$)*( $) 3+*-/. The Turkish Perspective Exports From A To Z The Export Strategy actually foresees a transformation beyond the 18 targets. By first observing all economic developments and trends in the world, macro targets that will be applicable to the sector are determined. Increasing exports in markets where imports are high are among the foremost of these macro targets. Thus, exporters aim to increase the ratio of exports to imports. Following that comes increasing competitiveness. This is precisely where science, technology, R&D, and innovation step in. All kinds of support that the public can offer to the sector, namely arrangements and incentives the sectors require, are determined one by one on the strategic road map. After a long preparatory period run by 14 working groups for 24 sectors, the strategy put forth clarifies both the goals and methods of each sector. Machinery Accesorices COMPOUND ANNUAL GROWTH RATES (CAGR -%) 23.8% 17.8% 27.4% 0.2% 21.1% 1990 1.2% 100% 8.6% 2000 2008 2023 The Turkish machinery sector’s exports increased by 8.4 billion dollars from 1990 to 2008. COMPOUND ANNUAL GROWTH RATES (CAGR -%) 27. 4% 21. 4% 18.8% 12.5% 1990-2000 2000-2008 TOTAL GLOBAL TRADE SECTOR’S GLOBAL TRADE TURKEY’S TOTAL EXPORTS TURKISH MACHINERY SECTOR EXPORTS 17.8% 9.3% 4.6% 5.3% 2008-2023 In an unprecedented occurence in economic history, global income was doubled, and global trade was multiplied by 2.5 in this period. It is expected that the influence of “developing” countries will increase and competition will be at a very high level in this period. The compound annual growth rate of the global goods trade was 12.5%. It is predicted that the compound average growth rate of the global goods trade will be at a level of 5%. } -58% 21.1% 8.0% 11.8% 6.8% # . /*-B2#$##.877$''$*) dollar exports target for 2023, aims /*(& 0-& 4*0)/-4+*.. ..$)" $/.*2)+-*0/$*)/ #)*'*"4$)$/. Ĝ 'A (+#.$5 ./#/ .$") has gained considerable importance in this sector too, and foresees a need to develop reasonably priced, environmentally friendly products . *)) 2/ #)*'*"4A6 Ğ*-/. 2$'' (+#.$5 4 ./'$.#$)" !$'$/$ ./*/#$. )A )$/$*)B2$/# - "-/*/# $(*!/# '*'$5/$*) of the defense industry, the sector aims to become a globally preferred +-*0 -*!(#$) -4A*2 1 -B to reach these goals, the sector requires various legislative changes, especially to legislation regarding the protection of intellectual property rights and the establishment of documented criteria for machinery ()0!/0-$)"A0-& 4L.-")$5 Industrial Zones, an example especially for Middle Eastern countries, are of special importance /*/#$.(// -A /$.'.* '$ 1 /#/ *).*'$/$*)2$/#$)/# . /*-B2$/# the added support of government $) )/$1 .B2$'' '$1 -.$")$Ĝ)/ (*( )/0(/*/# . /*-*)/# 24 /*2-/# /-" /A 55 56 In Depth / Export Strategy 2023 Land Vehicles and Subcontracting Sector 0/*(*/$1 -)&.Ĝ-./(*)". /*-.$)2#$# 0-& 4$.+*2 -!0'A .$ . 3+*-/.B/# . /*-$. )"" $) Ğ*-/./*+-*0 ' /-$1 #$' .) - / $/.*2)-).A# 3+*-/./-/ "4B!*-$/. part, set 2023 targets for the sector in consideration *!/# . .$!/.A 39 TARGET COUNTRIES 75 BILLION DOLLARS OF EXPORTS REVENUE AIMED FOR 2023 14.1% AVERAGE TARGETED GROWTH RATE FOR 2009-2023 Iron and Steel Sector )'$"#/*!/# 1 '*+( )/./-" / $)/# Ĝ1 .0U. /*-.*!/# $-*))./ '. /*-B /*/' 3+*-/.- 1 )0 !*-979:$. 3+ / /* <<$''$*)*''-.A#$' '*)""**.*0)/ !*-9:A=$''$*)*''-.*!/#$.Ĝ"0- Bĝ/"**.*0)/!*-8<A>$''$*)*''-.A# . ($U +-* .. "**.)*)./-0/$*)+-/..0U. /*-.- 3+ / /*" ) -/ :A@$''$*) *''-.*! 3+*-/.- 1 )0 #B2#$' >A@$''$*)*''-.- 3+ / *!+$+ 3+*-/.A COMPOUND ANNUAL GROWTH RATE % 7,4% -1,5% 17,5 2008 2013 MAY-JUNE 2011 ISSUE 4 EXPORT INCOME 55,0 BILLION DOLLARS 32,3 18,8 FIRST FIVE-YEAR PERIOD 11,3% 2018 SECOND FIVE-YEAR PERIOD 2023 THIRD FIVE-YEAR PERIOD 9.83% PROSPECTED SHARE OF TURKISH AUTOMOTIVE INDUSTRY IN GLOBAL TRADE IN 2023 The Turkish Perspective 57 Ready-to-Wear Clothing HOW WILL CHANGE HAPPEN? 2009 2013 2018 2023 c-).$/$*)$)"/* $)"!.#$*)+-*0$)"*(+)41$-)$)"B .$")B)*'' /$*). c *($)")M*-")$5 -*0)/-4N2$/# 3$./$)"&)*2' " 0$'0+ c*1 /*2-/# 0. *!) 2/ #)*'*"$ .)$))*1/$1 B(0'/$!0)/$*)'+-*0/.$)+-/$ c )- . $)+-*0/$1$/44(* -)$5$)")- ./-0/0-$)"+-*0/$*)+$/4 SECTOR’S GLOBALTRADE 425 530 810 1240 Z [ TURKISH SECTOR’S SHARE WITHIN THE GLOBAL TRADE Zw[ 740 COMPOUND ANNUAL GROWTH COMPOUND ANNUAL GROWTH RATE (2008-2023) RATE (2008-2023) 8.3% 10.3% 3,11 3,96 3,95 4,19 BILLION DOLLARS GLOBAL ESTIMATE FOR 2023 10.7% 2023 12.4% 32 52 BILLION DOLLARS BILLION DOLLARS 9 . 3 x 2008 BILLION DOLLARS 13.2 52 BILLION DOLLARS BILLION DOLLARS 2023 2009 15.74 13.21 BILLION BILLION DOLLARS 21 5.7% DOLLARS 22 30 BILLION DOLLARS BILLION DOLLARS Production + Brand Effect 2009 2013 Organizing Country 2018 2023 Chemicals -)$)"$.)*2'.**)/# # ($'. /*-L." )!*-#)" A.- .0'/*!(-& / )'4. .-0)*)(-& /)+-*0/. .B/# . /*-$(./* 1 '*+/- (-& B -) +-*0/.A# # ($'. /*-B2#$#0-- )/'4#.)*$ğ0'/4//-/$)" $)1 ./( )/.B'.*2$.# .!*-' "$.'/$1 #)" ./* )/ 4979:/#/2*0'$(+-*1 /# $)1 ./$)" )1$-*)( )/B.0#.*1 -*($)")*)U/-$Ğ--$ -.) 1 '*+$)"/# $) )/$1 ..4./ (A 23.3 SUB-SECTOR EXPORT REVENUE TARGETS (BILLION DOLLARS) 11.7 2.5 3.3 50 PHARMACEUTICAL PRODUCTS SECTOR 2023 3.3 5.9 ORGANIC AND INORGANIC CHEMICALS MINERAL FUELS, MINERAL OILS DYES AND RAW MATERIALS SOAP, DETERGENT, COSMETICS PLASTIC, RUBBER, AND DERIVED GOODS 58 In Depth / Export Strategy 2023 Electrical and Electronics Sector # ' /-$') ' /-*)$.. /*-$.+- +-$)"!*-/# +0'$L. )/ ))$'4!*''*2$)" a strategy based on exports and the production of such strategic components as display +) '.)+-* ..*-.B$)2#$#*(+)$ .'$& ./ ') &*#1 '*)"## ./-/A /0-''4B6$.+-$*-$/$5 $)/#$.- B.*) *!/# $-"*'.$./*(& $)!*-(/$*)) *((0)$/$*)/ #)*'*"$ .Z [) 3+*-/U" ) -/$)"Ĝ 'Y FUNDAMENTAL INDICATORS 45.0 BILLION DOLLARS GLOBAL MARKET SHARE COMPOUND AVERAGE GROWTH RATE EXPORT REVENUE 10.0 SHARE OF TURKEY’S EXPORTS BILLION DOLLARS 2008 2008 2023 2000-2008 2008-2023 2008 2023 0/.) -$1 **. TARGETED GLOBAL MARKET SHARE 80% - .#-0$/.6 " /' . 8.20% -$ -0$/. 25% '$1 .)'$1 $' 32% -0$/.) " /' . 2.10% **) -$1 **. 1.94% *-/$1 ')/. 2.10% 0.37% 0.64% 20.9% 10.4% 8.03% 8.25% 2023 Non-Grain Plant Products # +-$(-4/-" /$)/# .0U. /*-.*1 -$)")*)U"-$)+')/+-*0/.$.(&$)" ./ "-$0'/0-'+-/$ ../)-$)0-&$.#"-$0'/0- A)*/# -$(+*-/)/$($.-)$)" 2$/#$)/# .*+ *!0-,0'$/4A*2 1 -B!*-.*( .0U. /*-.'$& -$ !-0$/.B-)$)" *))*/*(+)40/+-*0/.$.2$''''*2/# *(+'$.#( )/*!/# . $(.$) (0#.#*-/ -/$( A) *!/# (*./$(+*-/)/./ +.+')) !*-*-")$5 "-$0'/0- $./# establishment of the Commodity Exchange as a result of legal arrangements required in ()4.0U. /*-.A FUTURE GROWTH TARGETS FOR EXPORT VOLUME ON A SUB-SECTOR BASIS (BILLION DOLLARS) 4.0 0.7 0.5 23.8 9.8 3,8 3.0 2.0 NUTS AND DERIVED GOODS DRIED FRUITS MAY-JUNE 2011 ISSUE 4 OLIVES AND OLIVE OIL FRESH FRUITS FRUITS AND VEGETABLES TOBACCO DECORATIVE SECTOR AND PLANTS 2023 DERIVED Plant Products (excluding GOODS "-$)[ The Turkish Perspective Textile and Raw Materials BEING A BASE FOR DESIGN The textile sector, for which productivity increases are aimed through the modernization and restructuring of production capacity, has long been one of Turkey’s locomotive sectors. Later replaced by ready-to-wear clothing, the sector’s new fundamental strategy is to focus on design. 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WLRQWRJHQHUDWLRQDOORZLQJ LWWROLYHRQLQ$QDWROLDk0\ JUDQGIDWKHUVWDUWHGLQWKLV EXVLQHVVLQWKH\HDU ,WRRNRYHUIURPP\IDWKHU DQG,DPSUHSDULQJWRSDVVLW RQWRWKHIRXUWKJHQHUDWLRQ ,DPWHDFKLQJWKLVDUWWRP\ FKLOGUHQyVD\V6L\DPL$GOP 7RGD\SRUFHODLQFHUDP LFVDQG¹LQLVDUHPDGHDW QRWHGIDFLOLWLHVLQ.ËWDK\D 7KHQXPEHURISHRSOH HPSOR\HGE\WKHVHFWRULV DURXQGVKRZLQJ WKDWDSSUR[LPDWHO\ SHRSOHPDNHDOLYLQJIURP WKHVHFWRU$FFRUGLQJWRWKH *RYHUQRUDWHRI.ËWDK\D V GDWDDSSUR[LPDWHO\ PLOOLRQGROODUVRILQFRPH ZDVPDGHIURPWKHH[SRUWRI SRUFHODLQFHUDPLF¹LQLDQG JODVVLWHPV®LQLH[SRUWVDUH JHQHUDOO\WRFRXQWULHVVXFK DVWKH86*HUPDQ\)UDQFH WKH1HWKHUODQGV%HOJLXP DQG'HQPDUN)RUHLJQHUV FRPLQJWR7XUNH\DOVRVKRZ DQLQWHUHVWLQ¹LQLGHFRUDWLYH LWHPV DID YOU KNOW? • The çini plates most widely known today are two panels appearing in a single piece of 127x34 cm, mounted on the wall of the Circumcision Room at the Topkapı palace and thought to have had its designs drawn by Nakkaşbaşı Şahkulu. • The largest collection of İznik çinis is on display at the British Museum in England. • The first çini workshop of Republican Turkey was founded in Bursa by Turgut Tuna in 1976. After Tuna retired, he set up his operations in his workshop in İznik, which is where he now carries out his work. 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Determined according to certain criteria, LDCs number 49 which consist of 33 countries in Africa, 15 countries in Asia and the Pacific and 1 countries in Latin America. The fourth of the Conference on the Least Developed Countries, which have so far been organized three times since 1981, will be held May 9–13 at the Istanbul Hilton. Topics addressed at the MAY 09-13 4th United Nations Conference on the Least Developed Countries Hilton Istanbul conference will include ways for LDCs to reduce the effects inflicted on them by the economic crisis, and investors’ contributions to the economies of these countries. Potential outcomes of LCDs will be policy recommendations, support measures and specific deliverables that will strengthen LDCs’ capacities. The LDCs need development paths that are more robust, less vulnerable to shocks and that result in inclusive growth, poverty reduction and prosperity. 69 70 01 2nd International Istanbul Water Forum Golden Horn Congress and Culture Center MAY 03-05 02 The second International Water Forum, taking place one month before the ofth World Water Forum to be held in Istanbul, will be held May 3–5 at the Golden Horn Congress and Culture Center. The forum’s topic will be water issues in the Middle East, Central Asia, North Africa, and East Africa 03 MINEX Fair 07 Izmir International Fair Center MAY 05-08 The MINEX Fair, covering mining, natural resources, and related technologies, will be held at the ü]mir International Fair Center May 5 through 7 Building with Wood Seminar Istanbul Cevahir Hotel MAY 11 In the orst conference to be held by the European Wood Initiative (EWI) in Turkey, Turkish architects and engineers will be informed on the use of wood in modern buildings and new technologies. The conference will be held at Istanbul Cevahir Hotel on May 11 IDEF 2011 Tüyap Fair, Convention, and Congress Center MAY 10-13 04 05 06 08 09 REW Istanbul 2011 10 Tüyap Fair, Convention, and Congress Center JUNE 08-11 11 12 13 14 ICCI Conference 15 Istanbul Expo Center JUNE 15-17 16 17 19 20 Intertrağc Istanbul 22 Istanbul Expo Center MAY 25-27 23 21 24 25 26 27 International Educational Technology Conference Istanbul University MAY 25-27 Aimed at educators and academicians, the conference, whose educational program is gaining worldwide popularity in the oeld of educational technologies, will be held at Istanbul University May 25–27 MAY-JUNE 2011 ISSUE 4 The 17th International Energy and Environment Fair and Conference (ICCI), in which renewable energy, nuclear energy technologies, and fossil-based energy technologies will also be discussed, will be held June 15–17 at the Istanbul Expo Center 18 IDEF, the International Defense Industry Fair, is held biennially in Istanbul. Bringing together many domestic and international companies in the defense industry, IDEF will be held May 10–13 at the Tüyap Fair, Convention, and Congress Center The sixth international Intertrafoc Istanbul trade fair, which brings together companies in the oelds of infrastructure, trafoc management, and parking systems, will be held at the Istanbul Expo Center May 25 through 27 The 7th International Recycling, Environmental Technologies, and Waste Management Trade Fair, held in Istanbul, will take place June 8–11 at the Tüyap Fair, Convention, and Congress Center 28 29 30 31 Beauty Eurasia Istanbul Expo Center JUNE 16-18 The 7th Beauty Eurasia International Cosmetics and Beauty Fair, which will be attended by companies offering cosmetics, cleaning, hygiene, and spa products and services, will be held at the Tüyap Fair, Convention, and Congress Center June 16–18 The Turkish Perspective Figures AUTOMOTIVE, COMPETITIVE INDEX AUTOMOBILE SECTOR PUT ON FULL SPEED TOWARDS ITS EXPORT TARGET Having increased its exports by 16% to 17.38 billion dollars last year, the automotive sector aims to raise its exports to around 22-23 billion dollars this year. The sector’s progress in the local market and exports is expected to continue through next year. 200.000 AUTOMOBILE MARKET (JANUARY - MARCH 2011) (UNIT) 240 76,28% 2010 2011 P. CARS PRODUCTION & EXPORTS (X1000) (JANUARY - MARCH) TOTAL PRODUCTION FOR LOCAL MARKET 160.000 82,87% 160 120.000 EXPORTS 80.000 63,92% 80 40.000 0 0 AUTOMOBILE LIGHT COMMERCIAL VEHICLE ‘01 TOTAL Data: TURKISH AUTOMOBILE DISTRIBUTION ASSOCIATION ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 Data: TURKISH AUTOMOBILE MANUFACTURERS ASSOCIATION MONTHLY DEVELOPMENT OF THE AUTOMOBILE MARKET – 2011 The automotive sector, Turkey’s leader in exports, is quickly approaching its 75 billion dollar exports target _or 2)23. The sector raised the 1.1)% increase in exports it had in the Örst tpo months to 1.15% in March. UNIT 120.000 2011 100.000 2010 80.000 60.000 98.92% 86.20% 36.01% PERCENT OF CHANGE 40.000 20.000 0 JAN FEB MAR Data: TURKISH AUTOMOBILE DISTRIBUTION ASSOCIATION APR MAY JUNE JULY AUG SEP OCT NOV DEC ‘11 71 72 Figures INTER-PROVINCIAL COMPETITIVENESS INDEX The third term results of the International Institution of Competitiveness Researches (URAK) InterProvincial Competitiveness Index (2))2-2)1)), phich quantiÖes the relative competitiveness of Turkey’s 81 countries and is the only index of its kind published annually on a consistent basis, pas presented to the public at the Istanbul Stock Exchange. Here are the most competitive cities and the main sectors they stand out pith. 7 29.71% c) -"4 c# ($./-4 13 26.38% 1 15 c /'**. c$) -'. 86.1% c*)"- ..*0-$.( c3+*-/ 25.87% c '/# c '$"$*)*0-$.( 2 5 49.73% c0++'4 )0./-4 c '/# 32.82% c /-*' 0( c'./$ TEKİRDAĞ ZONGULDAK İSTANBUL KOCAELİ TRABZON BURSA 4 ESKİŞEHİR 35.10% c 3/$' c0/*(*$' ANKARA 12 6 27.16% 32.08% c )!-./-0/0c0-)$.#$)" c0/$*) c ! ) )0./-4 İZMİR KAYSERİ ADANA ANTALYA MERSİN 3 42.72% c*0-$.( c*)./-0/$*) c 3/$' c"-$0'/0- HATAY 10 8 29.00% 27.67% c./-*)*(4 c 3/$' 14 25.91% c-).+*-//$*) c*)./-0/$*) 9 28.35% c** c/ )/. Data:International Compativeness Resarches Association MAY-JUNE 2011 ISSUE 4 GAZİANTEP 11 27.28% c*0-$.( c** While Istanbul ranks first in terms of competitiveness, the Index shows that cities in southern regions have also exhibited great improvement
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