Category: Business

  • Turkey’s Industrial Output Slumps

    Turkey’s Industrial Output Slumps

    By Yeliz Candemir

    ISTANBUL — Turkey’s industrial output fell sharply in December, disappointing markets and indicating that the country’s economy may have undershot the government’s projected 3.2% expansion last year.

    The contraction in December was greater than expected, economists said. Data from the state statistics agency, TUIK, on Friday showed Turkey’s industrial production fell 3.8% on an annual basis in December, compared with an annual rise of 11.3% in November.

    Some economists said the downbeat reading wouldn’t necessarily spur the central bank to take action promptly, as industrial output had been very volatile during the second half of last year.

    “The data indicate that 2012 gross domestic product growth is likely to stay below 3%,” said Gulay Elif Girgin, chief economist with Ata Invest in Istanbul.

    Last month, the central bank cut its overnight borrowing rate to 4.75% from 5% and its overnight lending rate to 8.75% from 9%, in a move to curb the lira’s strength and rein in excessive capital inflows, while holding its one-week benchmark interest rate steady at 5.5%.

    “From a monetary-policy perspective, a stronger industrial-production performance, along with the recent pickup in loan growth, could make the central bank much more cautious. This combination would urge the bank to tighten liquidity much earlier than [it] would otherwise,” said Yarkin Cebeci, an economist at J.P. Morgan Chase JPM +0.83% & Co. in Istanbul. “With this weakness in industrial output, the bank would now be happy to wait for a few more data points before getting more serious on its policy reaction.”

    In a bid to stimulate economic growth, Turkey’s central bank eased its monetary policy during the second half of 2012 and reduced borrowing rates for banks to 5.5% by the end of the year from a peak of 12% earlier in the year.

    The central bank had forecast that economic growth would begin to pick up significantly in the fourth quarter after the economy slowed to 1.6% growth in the third quarter, the weakest pace since 2009.

    Turkey’s government expects 4% growth this year from an estimated 3.2% annual expansion last year. Turkey’s 2012 gross domestic product data will be disclosed on April 1.

    Digging into Friday’s data, a breakdown showed sharp falls in many sectors. A 10.4% decline in mining output provided the largest drop in industrial output, while manufacturing output fell 3.6% and electricity output and distribution dropped 2.9%.

    via Turkey’s Industrial Output Slumps – Emerging Europe Real Time – WSJ.

  • Turkey says has spent $600 million on Syria refugees

    Turkey says has spent $600 million on Syria refugees

    ANKARA | Fri Feb 8, 2013 6:21am EST

    More than 70,000 Syrians are believed to be living in cities across Turkey
    More than 70,000 Syrians are believed to be living in cities across Turkey

    (Reuters) – Turkey has spent more than $600 million sheltering refugees from the almost two-year-old conflict in neighboring Syria, Finance Minister Mehmet Simsek said on Friday.

    Of that total, the central government had spent 610.5 million lira ($344 million) from its budget by February 5, Simsek said on his official Twitter account.

    Local authorities have provided the rest, he added.

    Turkey has been one of Syrian President Bashar al-Assad’s fiercest critics, hosting a NATO Patriot missile defense system to protect against a spillover of violence and leading calls for international intervention to end the conflict.

    The United Nations said on Friday that refugee numbers have spiked, with around 5,000 people fleeing each day, 2,000 more a day than last year’s figures.

    Turkey is sheltering more than 177,000 refugees in 16 camps, although tens of thousands more Syrians have crossed into Turkey and are staying with relatives or in private accommodation, according to the country’s disaster management agency.

    Government officials complain Turkey has received only around $35 million for its humanitarian assistance from foreign donors, half of that from the United Nations.

    The government is tightly controlling the aid effort, channeling assistance largely through Turkish NGOs in what it says is a bid to ensure it is properly co-ordinated.

    Some diplomats have suggested foreign funding might be more forthcoming if international organizations such as the United Nations were given greater control.

    Turkey’s total central government budget spending was 360 billion lira ($200 billion) last year.

    (Reporting by Orhan Coskun; Writing by Seda Sezer; Editing by Nick Tattersall and Oliver Holmes)

    via Turkey says has spent $600 million on Syria refugees | Reuters.

  • As EU pares budgets, Turkey and Korea step up aid spending

    As EU pares budgets, Turkey and Korea step up aid spending

    Aid slips down priority list for cash-strapped traditional donor countries, but emerging powers say they can afford to help

    • EurActive, part of the Guardian development network
    • guardian.co.uk,
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    The Turkish prime minister, Recep Tayyib Erdogan, and his wife, Emine Erdogan, hold children during a visit to a refugee camp in Mogadishu, Somalia, in August 2011. Photograph: Farah Abdi Warsameh/AP

    Turkey and South Korea, nations that have watched their own fortunes surge in a generation, are ramping up aid programmes for poor nations at a time when such spending in Europe is under threat, a EurActiv analysis of aid statistics shows.

    EU candidate Turkey and South Korea are among a handful of nations that are giving more to help poor countries at a time when the traditional heavy-hitters – the EU, Japan and the US – are struggling with domestic budgetary problems and are scaling back their overseas commitments.

    EU leaders meeting in Brussels this week are to consider austerity measures that could reduce the EU’s foreign aid spending by 11% in the 2014-2020 budget, while several EU nations are likely to miss their aid commitments to disadvantaged nations.

    Sylvia Tiryaki, the vice-chairwoman of Istanbul Kültür University’s international relations department, said Turkey was increasingly active in overseas development not just through foreign aid, but via non-governmental and charity organisations.

    “One of the reasons is that Turkey itself is becoming richer and the economic situation here is much better than it is in other countries, so we can afford it,” Tiryaki said in an interview from Ankara.

    Turkey’s help to Egypt following the Arab spring, as well as in fragile Somalia, has been designed to bring political and economic stability in regions close to Turkey, because “poverty breeds radicalism”, she said.

    Budget increases

    South Korea almost tripled its spending from 2006 to 2011, easily outpacing any other donor country, while Turkey nearly doubled its overseas aid budget in the same period. Their status as emerging donors follows significant economic growth in the post-cold war period and the countries’ rise as regional economic and political powers.

    Michael Ward, a senior policy analyst at the Organisation for Economic Co-operation and Development (OCED), said South Korea’s expanding aid budget stems not just from from its economic might and regional interests, but appreciation for the aid it received in the decades after its devastating civil war in the early 1950s.

    “There is a strong feeling in Korea, certainly within the government, that Korea benefited hugely as country from aid after the civil war,” Ward said by telephone from OECD’s headquarters in Paris. “The older generation there remembers Korea being poor and the role that international assistance played.”

    Turkey faces criticism

    Nevertheless, the two emerging donors are still a long way from joining the big league, data from the OECD and development monitoring groups show.

    South Korea provided $1.33bn in overseas aid and Turkey $1.3bn in 2011, out of a world total of $125.1bn.

    When measured by gross national income (GNI), aid accounted for 0.12% of South Korea’s GNI in 2011, falling short of its 0.13% target, and 0.13% of Turkey’s GNI. Overall, the 24 member countries of the OECD’s Development Assistance Committee (DAC) allocated 0.31% of GNI to foreign aid, and the EU’s 2015 target is 0.7%.

    Historically, Turkey has used its foreign aid to support mainly Islamic countries – and nations with historic links to its Ottoman past – in Central Asia, the Caucasus and Balkans. However, the Turkish Co-operation and Co-ordination Agency began expanding its reach to Africa, including Ethiopia, Sudan and Somalia, in 2003. It has also led relief efforts to Haiti since the earthquake there in 2010.

    But Turkey has come under fire for spending money overseas while it is still a major recipient of EU and international development assistance.

    In a blistering report on EU aid, the British parliament’s International Development Committee noted that sending money to a “relatively rich” country like Turkey undermined efforts to help impoverished nations.

    “It is unacceptable that only 46% of aid disbursed through European institutions goes to low-income countries. It devalues the concept of aid when so much of what is defined as Official Development Assistance (ODA) goes to relatively rich countries such as Turkey,” said the report, which was released in April 2012.

    The Berlin-based European Stability Initiative estimates that EU pre-accession funding – including rural and regional development – for Turkey amounted to €899.5m (£777.8m) in 2012, nearly double the level in 2007. Turkey was the 20th largest development aid recipient in 2010, receiving $1.1bn, OECD and World Bank data show.

    Tiryaki, who is also deputy director of the Global Political Trends Centre in Istanbul, dismisses criticism of Turkey’s joint roles as aid recipient and donor. Turkey’s foreign assistance reflects the country’s Islamic “understanding of providing help to the poor”, she said. “You have to give a part of your earnings, a part of your income, to those who don’t have anything.”

    Reforms urged in South Korea

    Unlike Turkey, South Korea is not an aid recipient. But the OECD, in a report issued last month, urged the country to revamp its aid programme, including the KOICA development agency, to improve co-operation with other international donors and to decouple aid from contracts with South Korean companies.

    South Korea assists more than 20 nations, many of them in south-east and South Asia. The OECD report recommends it concentrate on fewer countries. “Spreading your aid across too many countries … does not go as far effectively as if you were concentrating the resources,” Ward said. “They’ve still got 26 priority countries, which for a donor of their size is just really too many.”

    In general, though, South Korea scores good marks in OECD’s checklist of aid effectiveness and in responding to recommendations made by the organisation.

    In October, South Korea’s minister of strategy and finance, Jaewan Bahk, announced the opening of a World Bank office in Korea, to find sustainable development solutions for emerging countries. At the launch, he said: “Korea is one of the few development aid recipient countries that successfully transformed to a major donor and the world’s 13th largest economy. And therefore it understands the difficulties that developing countries are facing today.

    “Korea stands ready to share the knowledge and know-how gained over the course of its development.”

  • Czech firms turn toward Turkey

    Czech firms turn toward Turkey

    The two countries’ prime ministers focus on trade links at bilateral summit

    Walter Novak

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    Nečas says there is scope for growth in trade between Turkey and the Czech Republic.

    By Markéta Hulpachová and Daniel Bardsley

    Staff Writers

    The growing energy sector in Turkey offers major opportunities for Czech companies, the Turkish prime minister, Recep Tayyip Erdoğan, has indicated on a visit to Prague.

    As the Czech utility ČEZ continues its heavy involvement in Turkey, Erdoğan said there would be scope for more Czech firms, with work such as cleaning up power plants and providing generators likely to figure highly.

    Erdoğan even suggested there might be chances in the nuclear industry as Turkey presses ahead with its plan for three plants.

    Making his comments Feb. 4 after talks with Czech Prime Minister Petr Nečas, the Turkish prime minister said he wanted bilateral trade, currently around $2.65 billion a year, to nearly double to $5 billion in the coming years.

    “The Czech Republic is skilled in energy infrastructure, has a lot of know-how and experience, and Turkey expects advancement, especially in hydro, coal [and] gas power plants,” Erdoğan said at a press conference alongside Nečas.

    There was, he said, “room for cooperation” in work to reduce emissions at the country’s coal- and gas-fired power plants, adding the two countries should “take steps” together in nuclear energy.

    “Now, a third nuclear plant is planned, and there is a possibility this will be a part of our strengthened mutual cooperation and contribute to raising the current [trade volume] numbers,” he said, referring to Turkey’s plan for its third nuclear power station – its first is not due to begin power generation until 2020 – to be built at Iğneada on the Black Sea coast.

    ČEZ has for several years had major investments in Turkey, notably holding a stake in Akenerji, a major power-generation company, whose projects have included the building of the Egemer-Erzin gas-fired power plant, due to begin operations late next year. Škoda Power, based in Plzeň, has also secured large contracts in the power-generation sector, while other Czech players in Turkey include engineering companies Vítkovice and ČKD.

    There could be opportunities for smaller Czech companies to win contracts, suggested Petr Bartek, an energy analyst at Erste Group Bank A in Prague.

    “There’s a long-term experience in small Czech companies with construction of pipes and power plants and such things, so in Turkey there’s the outlook that there will be more installed capacity needed, and our companies are offering to bring the expertise,” he said.

    “It’s not only about ČEZ, which is investing money there. It’s mainly about the small and midsize companies in the energy sector. This whole industry is quite well developed in the Czech Republic, and we have the know-how, and Turkey is a market that is expected to grow pretty fast in energy.”

    Fueled by economic development in the country of 76 million, Turkey’s total electricity consumption could reach as much as 368 terawatt hours (TWh) in 2020, compared with 159.4 TWh in 2008.

    Linked to Erdoğan’s visit, media reported that the Czech Republic and Turkey had finalized a memorandum of strategic energy partnership.

    Nečas said there was scope for further significant growth in bilateral trade on the back of heavy increases in recent years.

    “In the past 10 years, mutual trade has increased sevenfold, but we shouldn’t be happy with that as there is enormous potential for further development,” he said.

    While Czech companies have been active in Turkey, especially in the energy sector, the presence of Turkish firms in the Czech Republic has been limited.

    Indeed, Václav Hubinger, the Czech ambassador to Turkey, told media during a recent interview “the Turkish presence in the Czech market is almost zero.”

    Erdoğan’s visit could help to change that, since the agenda also featured a business forum that included Czech companies and Turkish businesses. Significantly, the Turkish prime minister was accompanied by representatives of about 100 Turkish companies.

    After talks between the two prime ministers, Nečas said he supported allowing Turkey entry into the European Union, while Erdoğan told media that membership for his country would improve the standing of the EU.

    “The European Union should get strength from Turkey if it wants to be a global economic and political power. Today, the EU needs Turkey, not the other way around,” Erdoğan said.

    While saying Turkey’s possible joining of the Shanghai Cooperation Organization – a possibility some commentators have not taken seriously – did not preclude the country joining the EU, he criticized the 27-member European bloc for failing to grant Turkey membership so far.

    The EU also came in for criticism over what Erdoğan indicated were inadequate efforts to aid Turkey’s efforts to combat terrorism. “We cannot seem to receive the necessary support from Europe,” he said in comments reported by the Turkish-based Hürriyet Daily News.

    “Even when we alert the authorities on suspects and provide evidence of their terrorist acts, we don’t receive attention. They tell us they are following those suspects.”

    The writers can be reached at business@praguepost.com

    via Czech firms turn toward Turkey – Business – The Prague Post.

  • Turkey’s Publishing Industry: Market Briefing | Digital Book World

    Turkey’s Publishing Industry: Market Briefing | Digital Book World

    Summary: The Turkish publishing market is steadily developing thanks to many factors: growth in population; lengthening of compulsory primary education to eight years, increase in the GNP, a variety of books becoming more available with the improved distribution network and the development of publishing technologies. In the last decade there has been a 300 percent increase in the number of published books with around 43,190 titles released in 2011 according to the Turkish Ministry of Culture. In 2011, the book-publishing sector reached a sales volume of 1.5 billion dollars.

    fft85_mf924931The main market opportunities for U.S. publishers are in the imported books segment, which is calculated around $80 million. In addition, many international book titles are translated into Turkish, providing royalty payments to publishers. E-books are expected to quickly become an important market segment as well, with an annual growth rate of 120% since their first introduction into Turkey in 2010.

    Market Entry: The direct imports of books into Turkey are typically handled by one of Turkey’s major book importers, sales agents, bookstore chains or on-line book stores. For translated books, cooperating with a Turkish publishing house or literary and copyright agency, which represents foreign publishers’ titles, would provide the easiest access to the market. Ideally, a partner should have experience in translations and an established distribution network. The publishing business of Turkey is based in Istanbul.

    Turkish publishers frequently participate in major international book fairs in Europe, such as the Frankfurt Book Fair, London Book Fair, and Bologna Children’s Book Fair. These fairs provide opportunities to meet with Turkish publishers for possible cooperation.

    Current Market Trends: In one of the largest educational projects in the world, the Ministry of Education in Turkey has initiated the FATIH (Movement to Increase Opportunities and Technology) Project in 2010 aiming to provide tablet computers to all K-12 students, to install smart boards in every classroom and to digitize every textbook. The project, with an expected cost of 10 billion dollars, is due for completion by the end of 2015 and will serve 17.5 million K-12 students. This project is expected to bring about huge changes in the publishing market and develop the e-book segment.

    Turkish publishers initially had minimal interest in e-books, believing the market was not ready and worrying about the negative effects for published books. Turkey’s major online bookstore Idefixe first introduced Turkish e-books into the market in April 2010. Currently this is the fastest growing market segment (120% annually); in 2011 fifty Turkish publishing houses offered 1,314 titles in e-book format.

    The internet is also growing in importance as a sales channel. Both international (amazon.com) and national (idefix.com, kitapyurdu.com, dr.com.tr) online bookstores are increasing their sales in Turkey.

    Current Demand: Turkey does not have a body that tracks sales in the publishing market. However the Turkish Publishers Association estimates total book sales in 2011 reached $1.5 billion with 43,190 book titles. 30-35% of the book titles are translations and about 95% of them are translated from English.

    The Turkish market can be divided into the segments of educational books (textbooks, supplementary books), cultural publications (fiction and non-fiction titles such as novels, hobby books etc), academic books (university and professional publications) and imported books (foreign language books). All the market segments are experiencing growth. About 31 percent of the books sold are cultural publications and 54 percent of the market consists of books related to education, language training and academic study.

    Barriers: Piracy continues to be a major barrier for the publishing sector in Turkey. Turkish Publishers Association states that the market size would be 30 percent larger if the piracy of books could be controlled. According to Law No. 5846 on Intellectual and Artistic Works (revised in 2004), piracy is considered a public offense although enforcement of the law is weak. In 2011, law enforcement agencies conducted large-scale raiding operations against printing houses suspected of producing pirated books and seized 2 million pirated school books, which demonstrates the severity of the problem.

    Trade Events: The International Istanbul Book Fair has been organized since 1982 and is the largest book fair in Turkey backed by the Turkish Publishers Association. The fair mainly targets the public, with 450 thousand attendees buying books from over 600 publishers.

    For more information on selling to Turkey, please contact Patricia.Molinaro@trade.gov

    Source: U.S. Commercial Service, www.export.gov/turkey

    via Turkey’s Publishing Industry: Market Briefing | Digital Book World.

  • ISTANBUL 2020’S TRANSFORMATIVE TRANSPORT PLAN TAKES OFF

    ISTANBUL 2020’S TRANSFORMATIVE TRANSPORT PLAN TAKES OFF

    ISTANBUL 2020’S TRANSFORMATIVE TRANSPORT PLAN TAKES OFF

    2/4/2013

    Istanbul; 04 February 2013: The tender to build the world’s largest airport in Istanbul has been officially opened, reinforcing Istanbul 2020’s promise of quick, comfortable and convenient transport solutions for all athletes, and the wider Olympic family, should Turkey have the honour of being awarded its first ever Olympic and Paralympic Games in 2020.

    The Olympic family can be assured of finding a fully modernised, connected city when they arrive at Istanbul’s new third airport – which will have six runways and an annual passenger capacity of 150 million by 2020. The first phase of construction is due to be completed in just three and half years and is one of five major infrastructure projects taking place in the city as part of Turkey’s 2023 Master Plan – the nationwide programme of long-term development.

    Hasan Arat, leader of the Istanbul 2020 bid, said:

    “The Istanbul 2020 team has continued to learn from our previous four bids; we have listened carefully to the Olympic family and we have extensively studied the successes of London 2012 and other host cities. We recognise that effective and efficient transport is critical for a successful Games – starting with a world class airport. The tender opening this week means that we have passed another milestone on our journey; we will continue to work hard to ensure that our ground-breaking transport initiatives will benefit Olympians, Paralympians and the wider Olympic family. Just as importantly, Istanbul 2020 would leave a valuable legacy for citizens and guests by making the city one of the most liveable and accessible in the world.”

    Istanbul 2020 promises to be an exceptional Games-time experience by fully drawing on the $1.5 billion average annual investment in transport infrastructure upgrades since 2005 and a further $15 billion to be spent on projects over the next three years. These projects will significantly reduce congestion and speed up all journey times for Olympic client groups. Istanbul 2020 has uniquely proposed hosting the Games in two continents; the Haliç Metro bridge, the Marmaray rail tunnel, the Eurasia Bosphorus road tunnel and a third Bosphorus bridge will all be completed before 2020, increasing the number of Bosphorus road and rail crossings to six.

    IOC member and President of the NOC of Turkey, Ugur Erdener, commented:

    “As a President of an NOC and an International Federation, I am focussed on the comfort and convenience of the athletes. I am more than confident that this carefully directed investment in Istanbul’s transport infrastructure will enhance our ability to deliver a technically outstanding Olympic and Paralympic Games in 2020. Our proposed four competition zones across two continents have been selected to highlight Istanbul’s unique location, bridging Europe and Asia, as well as to guarantee athletes an average travel time of just 16 minutes between our iconic venues.”

    The winning tender for Istanbul’s third airport will be named in May.

    For more information contact: media@istanbul2020.com.tr

    As a service to our readers, Around the Rings will provide verbatim texts of selected press releases issued by Olympic-related organizations, federations, businesses and sponsors.

    These press releases appear as sent to Around the Rings and are not edited for spelling, grammar or punctuation.

    via ISTANBUL 2020’S TRANSFORMATIVE TRANSPORT PLAN TAKES OFF.