...BULLETIN CENTRAL BANK OF THE REPUBLIC OF TURKEY Issue: 8 December 2007 GOVERNOR YILMAZ’S PRESENTATION BEFORE THE COUNCIL OF MINISTERS INSIDE: 2 Reserve and Risk Management at the Central Bank of Turkey 3 Publications and News from the Central Bank of Turkey 4 At a Glance In accordance with the Law on the Central Bank of Turkey (CBT) and the principle of accountability, twice a year, the Governor provides the Council of Ministers with information on current economic outlook and the monetary policy actions. In this context, Governor Durmuş Yılmaz made a presentation before the Council of Ministers on 12 November 2007. In the first part of his presentation, Governor Yılmaz pointed out the prerequisites to achieve sustainable growth rate and single-digit nominal interest rates. The Governor gave information about inflation developments, interest rate and the exchange rate policies of the CBT, growth, employment and balance of payments developments in the second part of his presentation. The Governor stated that sustainable growth might only be achieved via establishing macroeconomic stability, continuing structural reforms and enforcing the principles of good governance. 1981 - 1989 1990 - 2001 2002 - 2006 Average Inflation 43.4 % 74.0 % 15.9 % Average Growth 4.8 % 3.0 % 7.5 % The Governor, underlining the necessity of price stability and sustainable public finance for Source : TURKSTAT, CBT macroeconomic...
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...EU & Turkey, Trade and Policies, Summary Chapter 1: The formation of the European Union United Europe has been the vision of many statesmen since the Roman Empire, and more recently of philosophers/politicians (17th century (). Winston Churchill; spoke of European Federation (1951) but true fathers of borderless continent were: Robert Schuman and Jean Monnet (supported/complemented by Paul Henri Spaak and Jacques Delores). Why was Europe created: They wanted to avoid repetition of wars between Europeans (especially avoid another conflict between France and Germany). Germany wasn’t punished because Americans learned from WWI. To avoid repetitions politicians/intellectuals came up with free commerce, democracy, and individual freedoms. The sincere collaboration (early 1950s until today) made peaceful Europe possible. They also wanted to rebuild Europe equitably after WWII, to share vital resources to mutual benefit, to counter threat of communism, to leverage with USSR and US, and eliminate acute nationalism and racism. The importance of the EU to Turkey: 1. number 1 trading partner for Turkey 2. one of 4 world’s major powers 3. Turkey aspires to join the EU 4. Turkey needs Europe to be democratic 1951 – Paris (ECSC) 1st form of Europe-wide collaboration among states was ECSC (European Coal & Steel Community) in 1951 and was developed in free trade and commerce within the newly formed EEC (European Economic Community). ECSC was created to...
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...Faculty of Economics and Business University of Zagreb Trg J. F. Kennedya 6 10 000 Zagreb, Croatia The views expressed in this working paper are those of the author(s) and not necessarily represent those of the Faculty of Economics and Business – Zagreb. The paper has not undergone formal review or approval. The paper is published to bring forth comments on research in progress before it appears in final form in an academic journal or elsewhere. Copyright 2007 by Tomislav Ćorić All rights reserved. Sections of text may be quoted provided that full credit is given to the source. Page 2 of 10 FEB – WORKING PAPER SERIES 07-10 Abstract Since the introduction of the Stabilization program in 1993, the Croatian National Bank has been following the monetary strategy of exchange rate anchor. During the first several years (from 1993 to 1997) this monetary strategy achieved acceptable results, accompanied with a low inflation rate and high GDP growth rates. However, the macroeconomic situation has changed in the last decade. The indicators of Croatian economy, such as trade balance, the level of external debt and GDP growth rates, are not satisfying. The criticizers of exchange rate anchor monetary strategy argue that appreciated kuna lowers the competitiveness of the domestic economy. Due to that, the current monetary strategy is in the focus of various economists' discussions. One of the alternatives to the exchange rate anchor is inflation targeting....
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...is necessary to mention the fact that in the relations between different countries the it always tends to be in the dominant position and is trying to be one of the global political actors. That is why this topic is very actual. I am focusing on my paper from the analytical point of view. My research paper consists of three parts. The first part is dedicated to the formation of the EU. I’ll speak about the enlargement processes, especially the fifth enlargement identifying its positive and negative aspects. In the second part the main stress is placed on the development of the EU. Here is going to be examined the candidate countries, Turkey’s integration perspectives. The third part is about relations with NATO. In the last part of this chapter is spoken about the “Eastern Partnership” which is considered to be one of the elements of the European politics. Here are examined the relations between the Republic of Armenia and the EU within the framework of this partnership. Then, in conclusion we summarize the essential factors which indicate the important role of...
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...BSA 480 International Business B1-144 Workshop #3 November 10, 2011 European Union David McKeen Chris Deisher Twyla Dillard Brenda Rogers Flecia Williamson European Union 1 Introduction The precursor to the European Union was established after World War II in the late 1940s in an effort to unite the countries of Europe and end the period of wars between neighboring countries. These nations began to officially unite in 1949 with the Council of Europe. In 1950 the creation of the European Coal and Steel Community expanded the cooperation. The six nations involved in this initial treaty were Belgium, France, Germany, Italy, Luxembourg, and the Netherlands. Today these countries are referred to as the "founding members." During the 1950s, the Cold War, protests, and divisions between Eastern and Western Europe showed the need for further European unification. In order to do this, the Treaty of Rome was signed on March 25, 1957, thus creating the European Economic Community and allowing people and products to move throughout Europe. Throughout the decades additional countries joined the community. In order to further unify Europe, the Single European Act was signed in 1987 with the aim of eventually creating a "single market" for trade. Europe was further unified in 1989 with the elimination of the boundary between Eastern and Western Europe - the Berlin Wall. Throughout the 1990s, the "single market" idea allowed easier trade, more citizen...
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...Basel Committee on Banking Supervision FIN 311 Bank Management and Turkish Banking System What is Basel Committee? An institution created in 1974 by central bank Governors from the Group of Ten nations. It has many of members come from Argentina, Turkey, Japan, Australia, Russia, the United Kingdom, United States, France, Germany, India and other countries. They meet four times a year at the Bank for International Settlements (BIS) in Basel, Switzerland. The role of the committee is that set out the minimum capital requirements of financial institutions with the goal of minimizing credit risk. Additionally, the first contract was the Basel I. It was issued in 1988 and focused on credit risk by creating a bank asset classification system. The system has five risk categories. Some of those are; * 0% - cash, central bank and government debt and any OECD government debt * 0%, 10%, 20% or 50% - public sector debt * 20% - development bank debt, OECD bank debt, OECD securities firm debt, non-OECD bank debt (under one year maturity) and non-OECD public sector debt, cash in collection * 50% - residential mortgages * 100% - private sector debt, non-OECD bank debt (maturity over a year), real estate, plant and equipment, capital instruments issued at other banks. There is a significant point in this system, that the bank must maintain capital equal to at least 8% of its risk-weighted assets. I mean, if a bank has risk-weighted assets of $100 million, it is...
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...general information to those contemplating doing business in Pakistan, and is not intended to be a comprehensive document. Furthermore, its updating process is annual. Therefore, the users should consult us before taking any decision on the basis of information contains in this booklet. TABLE OF CONTENT FOREWORD 1 ABOUT HLB INTERNATIONAL 2 1. ISLAMIC REPUBLIC OF PAKISTAN 3 1.1 LOCATION 3 1.2 POPULATION DEMOGRAPHICS 3 1.3 INTERNATIONAL TIME 4 1.4 CLIMATE 4 1.5 LANGUAGE 4 1.6 CURRENCY 4 1.7 THE CONSTITUTION AND LEGAL SYSTEM 5 1.8 HIGHLIGHTS OF THE ECONOMY 5 1.9 ECONOMIC ARRANGEMNETS 7 1.9.1 List of Countries/Organizations with which Pakistan has Bilateral Investment Agreements 7 1.9.2 Pakistan and the Non-Aligned Movement (N.A.M.) 8 1.9.3 Pakistan and the Economic Co-operation Organization (ECO) 8 1.9.4 Pakistan and the D-8 9 1.9.5 Pakistan and the South Asian Association for Regional Cooperation (SAARC) 9 2. INVESTMENT FACTORS 10 2.1 FIVE REASONS TO INVEST IN PAKISTAN (AMONG MANY OTHERS!!) 10 2.2 INVESTMENT OPPORTUNIITEIS 11 2.3 TAX BENEFITS 12 2.4 SOURCES OF FINANCE 13 2.4.1 Banks 13 2.4.2 Non Banking Finance Companies (NBFCs) 13 2.4.3 Public offers through stock exchanges 14 2.5...
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...FOREIGN DIRECT INVESTMENT IN KAZAKHSTAN By Toxeitov Nurlan THESIS Submitted to KDI School of Public Policy and Management in partial fulfillment of the requirements for the degree of MASTER OF PUBLIC POLICY 2004 FOREIGN DIRECT INVESTMENT IN KAZAKHSTAN By Toxeitov Nurlan THESIS Submitted to KDI School of Public Policy and Management in partial fulfillment of the requirements for the degree of MASTER OF PUBLIC POLICY 2004 Professor Tony Michell 2 TABLE OF CONTENTS LIST OF TABLES .......................................................................................................(iii) LIST OF ABBREVIATIONS ......................................................................................(v) INTRODUCTION ........................................................................................................(vi) CHAPTER I. INVESTMENT AND THEIR PLACE IN ECONOMIC SYSTEM §1 §2 Definition of investments and their classification ................................................4 Foreign direct investments as the catalyst of economic growth (on an example of the various countries) ..............................................................7 §3 The international investment activity and her institutes .....................................16 CHAPTER II. INVESTMENT CLIMATE IN KAZAKHSTAN §1 §2 §3 §4 Appeal of economy of Kazakhstan to foreign investors .....................................22 Fixed capital investment in Kazakhstan by region ...................
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...UNCTAD The United Nations Conference on Trade and Development (UNCTAD) was established in 1964 as a permanent intergovernmental body. UNCTAD is the principal organ of the United Nations General Assembly dealing with trade, investment, and development issues. The organization's goals are to: "maximize the trade, investment and development opportunities of developing countries and assist them in their efforts to integrate into the world economy on an equitable basis." The primary objective of UNCTAD is to formulate policies relating to all aspects of development including trade, aid, transport, finance and technology. The conference ordinarily meets once in four years; the permanent secretariat is in Geneva. One of the principal achievements of UNCTAD has been to conceive and implement the Generalised System of Preferences (GSP). It was argued in UNCTAD that to promote exports of manufactured goods from developing countries, it would be necessary to offer special tariff concessions to such exports. Accepting this argument, the developed countries formulated the GSP scheme under which manufacturers' exports and some agricultural goods from the developing countries enter duty-free or at reduced rates in the developed countries. Since imports of such items from other developed countries are subject to the normal rates of duties, imports of the same items from developing countries would enjoy a competitive advantage. The creation of UNCTAD in 1964 was based on concerns of developing...
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...Introduction “There is no commerce without community,” (Jennae as cited in Goodreads, n.d.). Indeed, commerce has pervaded the global stratosphere, linking countries in a communal bond of trade. Designated as trade blocs, these bonds are a type of intergovernmental agreement, usually associated with geographically aligned intergovernmental confederations, “where regional barriers to trade, (tariffs, and non-tariff barriers) are reduced or eliminated among the participating states” (Boundless, n.d.). As such trade blocs enable politico-economic ventures to flourish in the benefaction of its member nations. Albeit, trade blocs also represent diverse forms of economic integration, markedly, the preferential trade area, free trade area, custom union, common market, economic union and complete political integration (“What are trading blocs?”, n.d.). Customarily, the preferential trade area denotes the lowest level of commitment to reducing tariff barriers; typically member nations reduce trade barriers sans eliminating any amoung themselves (Finance Train, 2012). Whereas, the free trade area exists under the terms whereby trade barriers are removed on all member country imports, whilst independent tariff policies for non-member imports are retained (Finance Train, 2012). Comparatively, within the custom union, trade barriers are not only removed on all imports from member states, but a set of common policies are authorized in dealing with imports from non-member countries (Finance...
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...Table of Contents Table of Contents 1 List of Tables 3 List of Charts 4 Introduction 5 I. Transportation Sector 7 1. Key Factors for Success in Transportation Sector 7 2. Transportation Statistics of the Sector in Turkey 8 II. Strategic Business Plan for Metro Tourism 17 1. Internal Analysis of Metro Tourism 17 a. Historical Background 20 b. Mission-Visions-Strategic Targets-Aims 20 c. Market Share, Organizational Structure, Revenue Items 22 d. Trading Strategies 23 2. Financial Structure of Metro Tourism 23 a. Existing financial structure and financial analysis 23 b. Financial predictions for the next three years 29 3. External Analysis of Metro Tourism 29 a. Competitor Analysis 29 b. Economic and Political Analysis 33 c. SWOT Analysis 33 d. PESTEL Analysis 37 e. Porter’s 5 Force Analysis 37 4. Strategic Business Propositions for Metro Tourism. 37 a. Best opportunities for the next three year success regarding the costs and risks 37 b. Potential profits for Metro Tourism and the actions that will improve sustainability. 37 List of Tables Table 1: Investment in transportation, in billion EUR 7 Table 2: Length of railways, the train kilometers 8 Table 3: Passenger transportation by railways 9 Table 4: The number of railways accidents and results 10 Table 5: Air transport statistics 11 Table 6: Aircrafts involved in accidents and result of accidents 12 Table 7: Road Lengths (in km) 13 Table 8: Passenger transportation...
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...Contractionary policy is intended to slow inflation in hopes of avoiding the resulting distortions and deterioration of asset values. Monetary policy differs from fiscal policy, which refers to taxation, government spending, and associated borrowing.[3] Overview Monetary policy rests on the relationship between the rates of interest in an economy, that is, the price at which money can be borrowed, and the total supply of money. Monetary policy uses a variety of tools to control one or both of these, to influence outcomes like economic growth, inflation, exchange rates with other currencies and unemployment. Where currency is under a monopoly of issuance, or where there is a regulated system of issuing currency through banks which are tied to a central bank, the monetary authority has the ability to alter the money supply and thus influence the interest rate (to achieve policy goals). The beginning of monetary policy as such comes from the late 19th century, where it was used to maintain the gold standard. A policy is referred to as...
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...countries that reduced external imbalances Distribution of changes in developing country bilateral exchange rates with the US$ Most developing country equity markets have fully recouped losses since mid-2013 Borrowing costs have fallen since the start of the year for developing countries Metal prices have extended their falls while food prices have turned up Commodity exporters have suffered significant terms of trade losses over the past year If 2014 is an El Niño year, global grain yields could suffer, pushing up prices The contribution of high income countries to global trade volumes will more than double China is a major export destination for many developing countries Growth in East Asia has remained robust despite a slowing in China, its main trading partner Default...
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...economy has entered a new phase of internationalization of economic life, which is defined as globalization. Globalization of the world economy as multidimensional process manifests itself in substantially all major aspects of modern economic life. The world is getting united through globalization. This is happening because of the technological advancements in the recent decades and the global organizations that made trading and capital movements easier. Regulations from various countries supported free trade, which made the countries more integrated with each other. Various entities were created to facilitate the trade between countries and to reach a more global economy (World Trade Organization, International Monetary Funds, The World Bank, European Union…). Efforts were made to get the financial markets integrated between each other as we have indexes for the whole world such as BBC Global 30, S&P global 100 … etc. and indexes for the European union like FTSE Euro 100, FTSE Euro Top 100… etc. The independence allowed Kazakhstan to establish economic relations with many developed and developing countries, to rebuild relationships with former partners and to advance on the path of integration into the world market. The liberalization of foreign economic activities has eliminated the monopoly of the state in this area, have allowed enterprises, firms and individuals to freely establish contacts with foreign partners. Currently in the country there is an intensive growth...
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...strong financial system offers risk diversification and effective capital allocation. The greater the financial development, the higher would be the mobilization of savings and its allocation to high return projects. Financial development can be measured by a number of factors including the depth, size, access, and soundness of financial system. It can be measured by examining the performance and activities of the financial markets, banks, bond markets and financial institutions. It is observed that higher the degree of financial development in a country, the wider will be the availability of financial services. A developed financial system offers higher returns with less risk. In this paper it is attempted to collect main components of financial development including Banks, Stock markets, insurance companies and bond markets for 41 economies during the period of 1988 to 2009. The method of principal component is utilized to extract a single financial development index out of them. Principal component analysis is a modern tool of data analysis. The main aim to apply principal component to achieve a meaningful index out of complex and multidimensional elements of financial development and to re-express the data with minimum noise and maximum extract, so that a single measure of financial development can be achieved. This index can be used to assess the financial strength of an economy and can be related to growth further. Key Words: Financial Development Index, Principal Component...
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