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JUNE 2016 / VOL. 36 / NO: 2 The Importance of FDI Viewpoint President Yağız EYÜBOĞLU The 105 th session of the International Labour Conference of the International Labour Organization (ILO), was held in Geneva (Switzerland) from 30 May to 11 June 2016. This year, a record number of 5982 delegates from 187 ILO member States attended the Conference. The Conference once again provided a forum where the tripartite constituents from all continents to have intensive debates on global social and economic problems. In this year’s Conference employer, worker and government delegates from the ILO’s 187 member states discussed a wide range of issues, including global supply chains, decent work for peace, security and disaster resilience, as well as the impact of the ILO Declaration on Social Justice for a Fair Globalization. Tripartite delegates also considered amendments to the Code of the Maritime Labour Convention. The Turkish Minister for Labour and Social Security, Mr. Süleyman Soylu made his intervention to the plenary session of the Conference on 2 June 2016. In his speech, he explained the measures taken by the Government and their reflections to the labour market. He said: “As our national income continued to increase rapidly, we have made efforts so that the lowest-income earners can also benefit from such a growth. We raised our GDP per capita from USD 3,500 in 2002 up to USD 10,000. Within the same period, we reduced our P80/P20 ratio from 9.43 to 7.4, which represent the ratio of the household income of the wealthiest 20 th percentile to the 20 th percentile of the lowest income earners.” Minister Soylu also underlined high level of unionization and the latest figures on freedom of association in Turkey. He continued: “The reforms we carried out in recent years and their outcomes are clear indicators of the importance we attach to the freedom of association and social dialogue. In this regard, the number of workers affiliated to trade unions has increased by approximately 500 thousand and reached 1 million 514 thousand members when compared to July 2014, an increase of 47%. The increase in the unionization rates for public sector employees is more striking. Over the past decade, the unionization rate in this sector has increased from 47% to 71% as of July 2015. The unionization rate for all employees has reached 22.7%.” Minister Soylu concluded his remarks by outlining the crisis which Turkey faced upon the Syrian refugees and the measures taken in order to tackle the crisis. Regarding the crisis he called on the international community to take action for this humanitarian tragedy and to share the burden. During the Conference, a memorandum of understanding was signed between Turkish government and the ILO for the organization of the 10 th European Regional Meeting by Turkey in 2017. The regional meeting which is expected to be one of the important platforms to contribute to ILO’s policymaking will be held in Istanbul in 2017. Within scope of the Conference, TİSK’s Secretary-General Bülent Pirler was elected to the membership of management board of the International Organization of Employers as a representative of European group. 105 th Session of the International Labour Conference Memorandum of Understanding signed by the Government of Turkey and the ILO with the participation of employer and em- ployee organization representatives Foreign direct investment (FDI) offers many advantages, particularly for emerging markets like Turkey. For instance, since FDI comes in the form of green field investments, this means that the recipient country can achieve more investment than its domestic savings allow, resulting in a higher growth rate. Other FDI advantages include bringing in new technologies, creating more jobs, contributing to exports, and paying taxes. Even if it comes in the form of mergers and acquisitions (M&A), FDI helps to finance trade and current account deficits run by several emerging markets, including Turkey. According to the latest figures from United Nations Conference on Trade and Development (UNCTAD), Turkey currently attracts about 1% of global FDI flow. With an inflow of $16.5 billion FDI in 2015, our country became the 20 th most-popular destination for foreign direct investment, and we received the fifth-highest amount of FDI in the emerging Asian region. We have built a solid foundation, but given our aggressive growth targets, we still need to increase the share of global FDI inflow from 1% to 3%. This target is achievable given our country’s geographical location, young population, and very active, creative business people. What we need to do today is to work together to improve our country’s investment climate. In this respect, our optimism and expectations have increased thanks to the new government’s efforts to prepare a comprehensive package including several regulations to eliminate existing obstacles faced by local and foreign direct investors, and, with the introduction of a Turquoise Card, and ease the employment conditions for qualified foreigners. The EU countries represent the bulk of FDI inflow into our country. For example, according to the latest statistics released by the Central Bank of Turkey, during the January - April 2016 period Turkey attracted about $1.5 billion worth of FDI, of which $954 million was of EU origin. This represents about 60% of the total inflow and constitutes a worrisome picture for us given the recent events which have begun unfolding in the wake of the British referendum to leave the EU. Since we as Turkish employers have always believed in the EU’s values and supported our country’s accession to the Union, we will continue to assert that Turkey should remain tied to the EU anchor in order to further modernize our country and boost FDI inflow. We also believe that the EU can cope with the present crisis, as it has found effective remedies for curing various illnesses in the past. Since Britain has always been an important economic and trade partner of Turkey, as Turkish employers we are also confident that it will soon overcome today’s difficulties, and that our relations will be unaffected by the present crisis. Today we keep our fingers crossed for both the EU and the UK!

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JUNE 2016 / VOL. 36 / NO: 2

The Importance of FDI

Viewpoint

PresidentYağız EYÜBOĞLU

The 105th session of the International Labour Conference of the International Labour Organization (ILO), was held in Geneva (Switzerland) from 30 May to 11 June 2016. This year, a record number of 5982 delegates from 187 ILO member States attended the Conference.

The Conference once again provided a forum where the tripartite constituents from all continents to have intensive debates on global social and economic problems.

In this year’s Conference employer, worker and government delegates from the ILO’s 187 member states discussed a wide range of issues, including global supply chains, decent work for peace, security and disaster resilience, as well as the impact of the ILO Declaration on Social Justice for a Fair Globalization. Tripartite delegates also considered amendments to the Code of the Maritime Labour Convention.

The Turkish Minister for Labour and Social Security, Mr. Süleyman Soylu made his intervention to the plenary session of the Conference on 2 June 2016. In his speech, he explained the measures taken by the Government and their reflections to the labour market. He said: “As our national income continued to increase rapidly, we have made efforts so that the lowest-income earners can also benefit from such a growth. We raised our GDP per capita from USD 3,500 in 2002 up to USD 10,000. Within the same period, we reduced our P80/P20 ratio from 9.43 to 7.4, which represent the ratio of the household income of the wealthiest 20th percentile to the 20th percentile of the lowest income earners.”

Minister Soylu also underlined high level

of unionization and the latest figures on freedom of association in Turkey. He continued: “The reforms we carried out in recent years and their outcomes are clear indicators of the importance we attach to the freedom of association and social dialogue. In this regard, the number of workers affiliated to trade unions has increased by approximately 500 thousand and reached 1 million 514 thousand members when compared to July 2014, an increase of 47%. The increase in the unionization rates for public sector employees is more striking. Over the past decade, the unionization rate in this sector has increased from 47% to 71% as of July 2015. The unionization rate for all employees has reached 22.7%.”

Minister Soylu concluded his remarks by outlining the crisis which Turkey faced upon the Syrian refugees and the measures taken in order to tackle the crisis. Regarding the crisis he called on the international community to take action for this humanitarian tragedy and to share the burden.

During the Conference, a memorandum of understanding was signed between Turkish government and the ILO for the organization of the 10th European Regional Meeting by Turkey in 2017. The regional meeting which is expected to be one of the important platforms to contribute to ILO’s policymaking will be held in Istanbul in 2017.

Within scope of the Conference, TİSK’s Secretary-General Bülent Pirler was elected to the membership of management board of the International Organization of Employers as a representative of European group.

105th Session of the International Labour Conference

Memorandum of Understanding signed by the Government of Turkey and the ILO with the participation of employer and em-ployee organization representatives

Foreign direct investment (FDI) offers many advantages, particularly for emerging markets like Turkey. For instance, since FDI comes in the form of green field investments, this means that the recipient country can achieve more investment than its domestic savings allow, resulting in a higher growth rate. Other FDI advantages include bringing in new technologies, creating more jobs, contributing to exports, and paying taxes. Even if it comes in the form of mergers and acquisitions (M&A), FDI helps to finance trade and current account deficits run by several emerging markets, including Turkey.

According to the latest figures from United Nations Conference on Trade and Development (UNCTAD), Turkey currently attracts about 1% of global FDI flow. With an inflow of $16.5 billion FDI in 2015, our country became the 20th most-popular destination for foreign direct investment, and we received the fifth-highest amount of FDI in the emerging Asian region.

We have built a solid foundation, but given our aggressive growth targets, we still need to increase the share of global FDI inflow from 1% to 3%. This target is achievable given our country’s geographical location, young population, and very active, creative business people. What we need to do today is to work together to improve our country’s investment climate.

In this respect, our optimism and expectations have increased thanks to the new government’s efforts to prepare a comprehensive package including several regulations to eliminate existing obstacles faced by local and foreign direct investors, and, with the introduction of a Turquoise Card, and ease the employment conditions for qualified foreigners.

The EU countries represent the bulk of FDI inflow into our country. For example, according to the latest statistics released by the Central Bank of Turkey, during the January - April 2016 period Turkey attracted about $1.5 billion worth of FDI, of which $954 million was of EU origin. This represents about 60% of the total inflow and constitutes a worrisome picture for us given the recent events which have begun unfolding in the wake of the British referendum to leave the EU.

Since we as Turkish employers have always believed in the EU’s values and supported our country’s accession to the Union, we will continue to assert that Turkey should remain tied to the EU anchor in order to further modernize our country and boost FDI inflow. We also believe that the EU can cope with the present crisis, as it has found effective remedies for curing various illnesses in the past.

Since Britain has always been an important economic and trade partner of Turkey, as Turkish employers we are also confident that it will soon overcome today’s difficulties, and that our relations will be unaffected by the present crisis.

Today we keep our fingers crossed for both the EU and the UK!

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Printing Press by DUMAT OFSET MATBAACILIK

30 June, 2016

Yağız EYÜBOĞLU

JUNE 2016 / VOL. 36 / NO: 2JUNE 2016 / VOL. 36 / NO: 2

TİSK Vice-President Erol Kiresepi made a speech on behalf of Turkish employers on ‘‘The Central Role of Decent Work in Addressing the Syrian Refugee Crisis: The ILO Experience’’ session of 2016 World Humanitarian Summit that was coordinated by International Labour Organisation (ILO) in İstanbul on 23 May 2016.

The opening speech of the session was delivered by Minister of Labour and Social Security Süleyman Soylu. Under the moderation of ILO Director General Guy Ryder, Confederation of Turkish Trade Unions

(TÜRK-İŞ) President Ergün Atalay, Governor of Kilis Süleyman Tapsız, GAP Regional Development Administration’s Social Affairs Coordinator Adalet Budak Akbaş took part in this session as other speakers.

TİSK Vice-Present Erol Kiresepi stated that 2.8 million Syrians were hosted by Turkey and every 4 people out of 100 in the streets were Syrian.

“Perspectives, Expectations and Suggestions of Turkish Business Sector on Syrians in Turkey’’

report which was published by TİSK on 7 December 2015 emphasized that vocational counseling and qualification licensing services should be provided after a database on Syrian’s educational background and vocational qualification is constituted Kiresepi said.

Kiresepi also stressed that social parties’ participation and support is essential for developing precautions of labor market and Turkish Government had been showing necessary sensitivity on this topic.

TİSK Vice-President Erol Kiresepi Represented Turkish Employers in World Humanitarian Summit 2016

Global Apprenticeship Network (GAN) General Assembly and National Networks Meeting took place in Geneva on 9 June 2016.

GAN’s 2015-2016 activity report and budget were approved in the meeting which was attended by TİSK Vice-President Erol Kiresepi, GAN Director Shea Gopaul, Adecco Official Relations Director Bettina Schaller, BIAC Secretary General Bernhard Welchke, representatives of National Networks and some national employer organizations who are planning to establish a national network.

TİSK’s representatives presented GAN TURKEY’s activities and gave information to participants on the benefits and difficulties of establishing a national network.

GAN TURKEY’s key performance indicators presented in the meeting were seen as the best practice and decided to be implemented by other national networks.

National Network representatives from Argentina, Indonesia, Colombia and Mexico also presented their activities and projects for future.

GAN General Council and National Networks Meeting

Turkey’s economy grew a larger-than-expected 4.8 percent in the first quarter of 2016, official data from the Turkish Statistics Institute (TÜİK) showed on June 10, outperforming major emerging markets peers, as wage hikes and spending by Syrian migrants fueled private consumption, according to analysts.

Highest contribution to growth came from domestic and government consumption expenditures. Domestic demand contributed 6 percent of the growth, but net external demand reduced the overall growth figure by 1.5 percent.

Value added of agriculture

increased by 2,7%, of industry increased by 5,9% and of services increased by 5,1% at constant prices in the first quarter of 2016.

Overall, exports of goods and services increased by 2,4% whereas imports increased by 7,5% compared to the same quarter of previous year.

Turkey ranks 3rd with its labor force growth

According to the International Institute for Management Development (IMD) World Competitiveness Yearbook 2015, the labor force grew by 6,43 percent in Turkey in 2014. The rising size of the workforce presents an opportunity to drive economic growth and it can be regarded as an engine for development. Among the 61 countries covered by the Index, Turkey ranks 3rd. Countries experiencing negative labor force growth, thus the least percentage change in labor force are Romania, Mongolia and Ukraine.

Source: Institute for Management Development (IMD) World Competitiveness Yearbook 2015

Automotive production in Turkey rose 9 percent year-on-year in the first five months of 2016, according to the monthly Automotive Manufacturers Association (OSD) report released on June 8.

Automakers in the country produced nearly 594,000 vehicles, including automobiles, light commercial vehicles and tractors, within the January-May period of this year, while automobile production rose about 359,000, with an increase of 13 percent year-on-year, the OSD said.

The OSD added that production from January-May was the highest since 2006.

However, the overall auto sales market (including light trucks and other vehicles) fell 2 percent in the same period to 356,798, whereas the sub-set of car sales was at 267,000, showing growth of 3 percent

compared to last year.

The association data shows that the sector’s exports rose 15 percent to 454,000 in the first five months of 2016 compared to the same period last year.

The export value in the period of the year was $9.6 billion, a rise of 12 percent compared with $8.5 billion in 2015, according to the Turkish Statistics Institute (TÜİK).

The country’s automakers manufactured nearly 125,190 vehicles in May, an increase of 42 percent compared with 88,048 in May 2015, the association’s data showed.

Turkey is one of the world’s top 20 auto markets, with major operations for Toyota Motor Corp., Renault joint venture Oyak Renault, Fiat Chrysler’s Tofaş unit, Ford Otosan and Hyundai Motors.

Turkish auto production increases 9 pct in first 5 months of 2016

Source: Automotive Industry Monthly Report May 2016, Automotive Manufacturers Association

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596

305

446

513

469 467 456

543

594

221255

317

192

258 277259 248

294318

359

0

100

200

300

400

500

600

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

(in thousands)

Total & Passenger Cars Production (January-May)

Total Production Pass. Cars Production

Source: Automotive Industry Monthly Report May 2016, Automotive

Manufacturers Association

Total & Passenger Cars Production (January-May)

Labor Force Growth, 2014

Source: Institute for Management Development (IMD) World Competitiveness Yearbook 2015

9.539.31

6.436.10

3.112.932.882.752.562.532.52

2.182.112.01

1.811.77

1.561.351.331.161.081.011.000.810.790.750.690.670.610.550.510.470.460.440.400.400.380.340.290.170.150.130.090.07

-0.05-0.15-0.15-0.17

-0.42-0.46

-0.68-0.82

-1.02-1.08-1.12

-1.51-2.05-2.14

-5.40-5.89

1 Qatar2 UAE3 Turkey4 Venezuela5 Indonesia6 New Zealand7 South Africa8 Israel9 Korea Rep.10 Singapore11 Luxembourg12 Malaysia13 Hungary14 Chile15 Switzerland16 Croatia17 Colombia18 Australia19 Sweden20 Peru21 Iceland22 Italy23 Norway24 Lithuania25 Taiwan26 United Kingdom27 Slovenia28 Kazakhstan29 Germany30 Denmark31 China Mainland32 Slovak Republic33 Canada34 China Hong Kong35 Austria36 Belgium37 France38 USA39 Argentina40 Philippines41 Japan42 Finland43 Poland44 Jordan45 Brazil46 Bulgaria47 Czech Republic48 Russia49 Netherlands50 Ireland51 Greece52 Estonia53 Spain54 Mexico55 Portugal56 India57 Thailand58 Latvia59 Romania60 Mongolia61 Ukraine

Labor Force Growth, 2014

(percentage change)

Turkish economy grows 4.8 percent in first quarter

Turkish economy grows 4.8 percent in first quarter

Turkey’s economy grew a larger-than-expected 4.8 percent in the first quarter of 2016, official data from the Turkish Statistics Institute (TÜİK) showed on June 10, outperforming major emerging markets peers, as wage hikes and spending by Syrian migrants fueled private consumption, according to analysts.

Highest contribution to growth came from domestic and government consumption expenditures. Domestic demand contributed 6 percent of the growth, but net external demand reduced the overall growth figure by 1.5 percent.

Value added of agriculture increased by 2,7%, of industry increased by 5,9% and of services increased by 5,1% at constant prices in the first quarter of 2016.

Overall, exports of goods and services increased by 2,4% whereas imports increased by 7,5% compared to the same quarter of previous year.

Source: Turkish Statistics Institute (TÜİK)

5.1

2.41.8

2.7 2.5

3.7 3.9

5.7

4.8

0

1

2

3

4

5

6

1 2 3 4 1 2 3 4 1

2014 2015 2016

Growth rate at constant prices, %Growth rate at constant prices, %

Source: Turkish Statistics Institute (TÜİK)

The ‘First Action Plan on Women’s Employment in Turkey’ developed under the project “More and Better Jobs for Women: Women’s Empowerment through Decent Work in Turkey” implemented by the International Labour Organization (ILO) and Turkish Employment Agency (İŞKUR) to support policies geared to creating decent jobs for women and activities of İŞKUR in this field and to contribute to women’s participation to employment was introduced to the public at a meeting held in Ankara on 17 May 2016.

The plan suggests actions related to two basic objectives as building occupational skills and job orientation to enhance women’s employment, improving access to labour markets.

Giving information about the content, process of preparation and objectives of the Action Plan, İŞKUR representative stressed that the plan was developed, on the basis of the principle of decent work, to bring gender equality perspective to İŞKUR support to employment and to mainstream gender equality in all activities.

The action plan was a product of social dialogue and joint work developed by the National Technical Team (NTT) composed of representatives from İŞKUR, various governmental agencies, civil society organizations, and workers’ and employers’ organizations in the period June 2014-December 2015 through series of meetings, international working visits and trainings.

TİSK representative spoke at the panel composed of NTT members and shared their experiences in developing the Action Plan.

The head of the International Labor Organization (ILO) praised Turkey on May 23 for allowing Syrian refugees to obtain work permits. Ahead of the World Humanitarian Summit in Istanbul, ILO Director-General Guy Ryder told state-run Anadolu Agency that “...there are lessons that Europe should learn on the issue. Turkey is one of the countries - with its open-door policy - from which Europe should take lessons,” Ryder said. “I see it as a huge failure ... that Europe has not yet determined a common attitude on the refugee crisis … I would say that the international community has been insufficient in its response to Syrian refugees,” he added, stressing that more than 60 million people are currently displaced due to conflicts and violence across the world. 

Global Compact Türkiye General Assembly

The UN Global Compact (GC) Network Türkiye held its 4th General Assembly on March 30th, 2016 in Istanbul and elected its Board of Directors to represent GC Network Turkey for the period of 2016-2019.

Mustafa Seçkin, Unilever NAMET-RUB Region Refreshments Vice President was elected as the GC Türkiye 2016-2019 President and will assume the role from Dr. Yılmaz Argüden.

The institutions elected to send their representatives to the Board of Directors were Unilever Türkiye, Borsa İstanbul, Borusan Holding, Boyner Group, Çimsa, Coca-Cola İçecek, Eczacıbaşı Holding, Garanti Bank, İstanbul Bilgi University, Koç Holding, Nestlé Türkiye, Tayburn, The Educational Volunteers Foundation of Turkey,

Yeşim Textile and also the two institutions undertaking the secretariat of the network, TİSK and TÜSİAD.

In his first remarks, Seçkin stressed that the GC Türkiye will continue its work towards the vision of a sustainable and inclusive global economy by increasing its representation on international platforms, increasing the number of signatories, strengthening its participation engagement strategy, improving communication and content development. Seçkin also highlighted the importance of Sustainable Development Goals (SDGs) and added that the SDGs provide a common vision and a roadmap for sustainable development. Thus, achieving the SDGs by 2030 will require concerted collective action and new forms of partnership.

Global Compact Annual European Local Networks Meeting and 2030 Conference

The Global Compact (GC) European Meeting and 2030 Conference took place in Prague, Czech Republic between 4-6 May 2016.

The European Local Networks Regional Meeting brought together the representatives and contact persons from more than 20 European Local Networks, including Global Compact Türkiye, to exchange best practices and key learning. The meeting also served as a platform where UNGC presented the global updates and allow for a dialogue between headquarters and Local Networks especially on how to advance the

implementation of the SDGs at the local level.

The Regional Meeting took place after Global Compact 2030: Looking into the future of Corporate Sustainability, where Global Compact Local Networks in Europe, their participants and stakeholders came together to discuss the next great challenges, the next great leaps and the next great pioneers in the movement for sustainable business. The full day event convened multi-stakeholder panels on social innovation, climate action and gender equality.

Turkey’s work permits for refugees are praised by ILO

ILO and İŞKUR“More and Better Jobs

for Women”Project Meeting

Turkey’s cabinet is finalizing a comprehensive package to improve the investment climate, promising a series of regulations that will eliminate several obstacles which are faced by foreign direct investors and ease employment conditions for foreigners, Deputy Prime Minister Nurettin Canikli said June 13. 

“A comprehensive package was presented to the cabinet to improve the investment climate … We

are preparing to launch a quite detailed regulation which will also resolve the problems before the foreign direct investment inflow,” he said. 

Canikli said the package included significant changes to the tax system.

“There will be regulations that will decrease the stamp tax and other costs for the investors. In the contracts, the stamp tax and the notary fee will be charged only one copy. This is of great importance for potential investors as we will be ceasing to execute a 52-year-long practice which raises costs for investors,” he said, adding that the stamp taxes would also be refunded in the event of the cancelation of public tenders. 

Canikli said a series of regulations would be introduced to improve the employment conditions of foreigners.

“We will unveil a Turquoise Card, which will provide qualified foreigners with the opportunity for permanent employment. Short-term foreign workers and interns will also get a permit to work,” he said.

Government plan to improve investment climate

TISK was represented on IOE Global Occupational Safety and Health Network (GOSHNET) meeting which was hosted by the Federation of Enterprises of Belgium (FEB) and Sibelco at the company’s facilities in Genk, Belgium.

Occupational safety and health specialists from IOE member federations as well as affiliated companies attended the first meeting of the GOSHNET in 2016, which substantive presentations were given on the following topics, stimulating interactive discussion among the delegates:

• Sibelco Safety and Health “Going for Zero” programme

• The effect of Global Megatrends on Occupational Safety and Health

• OSH: The future of work

• How to engage with internal stakeholders to create a positive focus on OSH

• Travel risk management and return on prevention

• Critical Control Management: follow-up on the implementation

• Accidents reporting and management

• Leadership for growth

IOE GOSHNET meeting was held in Belgium

Following Prof.Ahmet Davutoğlu’s announcement of his decision to step down as the Chairman of the ruling AK Party on May 6. The party held an extraordinary congress to elect a new chairman. İzmir Deputy and Minister for Transport, Maritime Affairs Communications in the 64th Government Binali Yıldırım was elected as the new Chairman of the AK Party in the extraordinary congress held on 22 May 2016. Following his election as the new leader of the AK Party, Yıldırım was mandated by President Recep Tayyip Erdoğan to form the 65th Government. On 24 May 2016, the newly appointed Prime Minister Yıldırım unveiled the new cabinet as approved by President Erdoğan. 26 members under the leadership of Prime Minister Binali Yıldırım, features nine new ministers while four ministers from the previous cabinet have been re-seated.

The Deputy Prime Ministers in the new cabinet are Nurettin Canikli, Mehmet Şimşek, Tuğrul Türkeş, Veysi Kaynak and Numan Kurtulmuş.

The 65th government of Turkey led by Prime Minister Binali Yıldırım won the vote of confidence on May 29. The following day, the government spokesman announced that under its new government, Turkey will have five priorities: economic growth, ending terrorism in the southeast, a new constitution, new foreign policy approaches, and ensuring social cohesion.

Following are some important excerpts from the 65th Government Programme presented to and approved by the Parliament:

• Investment and projects will focus on science and technology, which will in turn strengthen Turkey’s aerospace and defence industries as well as develop information-communication technologies with the aim of increasing Turkeys growth rate and welfare.

• Rapid transition to the “fourth industrial revolution” in order to convert Turkey into a manufacturer of high value-added goods.

• The state will more strongly support the private sector and access to funds. In fields that are hard for the private sector to take initial action or in which they are not interested, the government will give importance to public-private partnerships (PPP).

• Especially in the eastern and south-eastern regions of the country, the youth will be directed to productivity rather than being deceived by terrorist organisations.

• Monetary policies will continue to ensure price stability as a priority while supporting growth and the government’s employment policies.

• The new government will bring dynamism and contribute to the depth and complexity of the financial markets with projects like the planned establishment of the İstanbul International Finance Center.

The New Turkish Government

Moody’s: İstanbul, İzmir in good economic shapeSizeable investment programs are sustainable for Istanbul and the Aegean city of İzmir thanks to their robust operating performance, effective financial management, strong economies and large and valuable asset bases, said Moody’s in a statement on May 5th.

The municipalities of Istanbul and İzmir are planning infrastructure development programs in 2016-17 estimated at 17.9 billion Turkish Liras ($6.3 billion) and 4 billion liras ($1.4 billion),

respectively. This would absorb 54 percent of Istanbul’s total spending over the period and 49 percent of İzmir’s, said the statement.

Moody’s said Istanbul and İzmir’s high capital expenditure reflected their strong population growth. Both cities will focus on investments in transportation infrastructure, utilities and environmental projects, while their debt will grow moderately, it added. 

Exports of Turkey’s traditional dessert, baklava, have reached $20 million in the last five years, according to the Turkish Statistics Institute (TÜİK). 

Baklava was exported to 48 countries on six continents, according to figures released May 25 by TÜİK, with the world’s largest economy, the United States, ranking at the top of the list.

The top 10 countries to which Turkey exports baklava include Switzerland, France, Saudi Arabia, Australia, Russia, Iraq and Japan.

Turkey has exported a total of 1,700 tons since 2011, TÜİK data showed. 

The U.S. imported nearly 312 tons of Turkish baklava, followed by Germany at 210 tons.

Turkish Baklava exports booming

Turkey was the site of nearly half the world’s private infrastucture investments in 2015, according to figures from the World Bank.

There was a total of $111,6 billion in private investments last year- $44.7 billion of which occurred in Turkey, the global lender said June 13.

Turkey especially topped the list due to İstanbul’s third airport, which is costing $35.6 billion, and the $6.4 billion Gebze-İzmir Motorway, which is expected to cut the travel time between İstanbul and the Aegean city of İzmir dramatically.

The top five countries with the highest investments in 2015, respectively, were Turkey, Colombia, Peru, the Philippines, and Brazil, garnering $74 billion or 66 percent of global commitments in the developing world,” it added. 

Solar energy investments were also 72 percent higher than the last five-year average, while renewables attracted nearly two-thirds of investments with private participation, said the statement. 

Turkey at the top of global private

infrastucture investments

Putin says Russia hasn’t canceled South Stream, Turkstream

gas projects

Russian President Vladimir Putin said on June 7 that Russia had not “definitively” canceled either the South Stream or Turkstream European gas export pipeline projects but needed a clear position on them from Europe.

“There are certain political difficulties with Turkey - this is widely known. But we have not irreversibly canceled any of these projects - neither South Stream nor Turkstream,” Putin said.

Concerts & Exhibitions

Legend of Aspendos: A Journey to Aspendos

June 17- October 28, 2016

Internationally renowned dance group “Anadolu Ateşi” (Fire of Anatolia) is celebrating its 15th year with a new project, “The Legend of Aspendos: A Journey to Aspendos,” taking viewers back to the time of the Roman Empire.

Making its premiere on Oct. 17 at the ancient Aspendos Theater, the two-act program brings theatrical dance and a documentary screening together. The documentary shows the history of the Aspendos Theater and its legends as well as the historical incidents that happened in and around the ancient city. Viewers can watch Fire of Anatolia’s impressive dancers on stage while watching Alexander the Great in the war between the Persians and the people of Aspendos, the renovation of the theater by the Seljuks and

Mustafa Kemal Atatürk’s visit to the theater as well as scenes from shows performed on Aspendos’ stage. The documentary also charts the stages of construction the theater has been through. The movie is being screened on the walls of Aspendos via the video-mapping method. Viewers take their seats after the film starts.

Mario Prassinos- In Pursuit of an Artist: Istanbul-Paris-Istanbul

Until August 14, 2016

This exhibition is centered on the art of Mario Prassinos, who was born in Istanbul into a Greek-Ottoman family and began his artistic career in Paris, among the 20th century avant-gardes. Bringing together a large selection of his works ranging from paintings and book illustrations to tapestries, portraits, and engravings, the exhibition reveals the striking and unique character of Prassinos and his distinctive style shifting from Surrealism to a more realistic approach. Curated by Seza Sinanlar Uslu, the exhibition welcomes back this original 20th-century artist to his birthplace to Pera, Istanbul, on the 100th anniversary of his birth.

Masters of Cinema in Turkey: Lütfi AkadUntil December 31, 2016

Istanbul Modern Cinema has initiated a new project titled “Masters of Cinema in Turkey”. The first guest for this series, which is devoted to founding directors of cinema in Turkey, is Lütfi Akad, who has come to be known as the “masterless master” and is a pioneer of the period referred to as the “Filmmakers’ Era” in the history of cinema in Turkey.

An archive exhibition will be presented within the scope of the project commemorating the director’s 100th birthday. Taking a look at the cinema of Lütfi Akad, whose filmography and 95-year life reflect the story of Turkish cinema, the exhibition which will be held in the cinema foyer brings together 100 pieces of archive material such as production stills, film stills, original scripts, and posters from Akad’s filmography that had not seen the light of day until now. This material is accompanied by the director’s words to describe his films. Akad’s aptitude for observation can be seen not just in his films but in his memoirs as well. Shedding light on the birth of Yeşilçam and its conditions, his writings and interviews serve as the narrator of this exhibition.

EXPO 2016 Antalya

23 April – 30 October, 2016

Expo 2016 is the next scheduled A1 Horticultural Exposition recognised by the International Association of Horticultural Producers after Expo 2012, and is hosted by Antalya. The motto of the Expo 2016 is “A Green World for the Next Generation”.

The EXPO area includes: Expo Greenhouse, the Agriculture and Biodiversity Museum, the

Children’s Science and Technology Center, the Turkey Biodiversity Theme Trail, the Mosaiculture Plant Statues Area, Expo Tower, Congress Center, Expo Forest, Culture and Arts Street, the Outdoor Activity Field.

As well as being a giant botanical park with a theme “Flowers and Children,” EXPO 2016 Antalya will make great contributions to Antalya’s promotion with different events. The EXPO exhibition area, which will stay open for six months, will host world-famous rock, pop and classical musicians.

7th International İstanbul Opera and Ballet FestivalUntil July 17, 2016

Organized by the State Opera and Ballet, the festival will kick off on July 2 with a gala concert to be performed by the Istanbul State Symphonic Orchestra under the baton of Borislav Ivanov at the Lütfi Kırdar Congress Hall.

As part of the festival, the “Hekimoğlu Opera,” composed by Tolga Taviş, will be on stage at the Kadıköy Municipality Süreyya Opera House on July 5.

Mozart’s opera “Abduction from Seraglio” will be staged by the Istanbul State Opera and Ballet in the garden of the Istanbul Archaeology Museum on July 14 and 15.

The festival will be closed by the İzmir State Opera and Ballet, which will perform Mozart’s opera “Zaide” on July 16 at the Kadıköy Süreyya Opera, İstanbul.

It is located in Aksaray Province, Guzelyurt District, Ihlara Town and in the Northeast of Hasan Mountain. It is 40 km. distant from Aksaray and 7 km. from Guzelyurt. The valley can be reached by following the signs via Aksaray. 

Ihlara Valley is a valley which is formed as a result of abrasion of lava from Hasan Mountain volcano by the river. Ihlara Canyon was established from basalt and andesite as lava cools, the resulting cracks and collapses as a result of creating a bed for himself in the cracks of the Melendiz stream that emerged as a result of the deepening gorge. Melendiz Stream, at the end of a process of millions of years, has formed this valley which is 14 miles in length and 110 meters in height.

Melendiz Stream moves through the 14 km. long valley, which was formerly named as PERISTREMMA, by more than 30 meanders and splitting the field deeply; creating amazing beauties. Melendiz Stream caused the current formation of this canyon today and it was named as “Potamus Kapadukus” (Cappadocia Stream) in the ancient ages. Today, this word is said as “Cappadocia”. Cappadocia is the name given to the region in Ihlara Valley, Gulsehir, Nevsehir, Goreme, Urgup, Avanos, Aksaray and Kayseri and it includes various natural and historical sites. Ihlara is a natural, cultural and historical extension of Cappadocia region, located in the east. As the rocks within the region are unique with their soft structure, they can easily be processed and transform into a solid material after contacting with air. This field structure has turned Cappadocia into a region where shelter and hideout sites were built since the old times.

Fairy chimneys are the geographical formations within the region, and the region became world famous thanks to them and the Ihlara Valley. There are 382 steps for the visitors to go into the valley.

HISTORICAL TEXTURE OF THE VALLEY

Ihlara is a place created with the collaboration of man and nature. The natural beauty of the valley, the rock and soil texture which is suitable for

carving were utilized in its best by the people; and it was adorned by historical textures appropriate with its natural structure and appearance. The houses, churches and monasteries were carved into fairy chimneys and valley slopes, and they were decorated by frescos.

The natural formation and secure structure of Ihlara Valley has made this place an important center for Christianity. Ihlara Valley has become an important monastery center since 4th century and it contains various churches containing the characteristics of the painting in that period. Some of the churches in the valley are also important for history as their constructivists are known.

It is quite hard to date the histories in valley. Carved churches with Closed Greek Cross and free cross plans are on the steep slopes of the Valley, located in both sides and they integrate with the Melendiz Stream. Valley was used by monks and priests as a hermitage since 4th century, due to its natural structure. Christianity was spread among individuals with different native languages. Low levels of literacy and the tough features of Latin to learn caused the slow spread of the religion. So,

churches have depicted issues such as the life of Jesus, the subjects in the Bible, religious figures and events related with them through pictures.

Inside the frescoed churches in the valley (Sümbüllü, Yılanlı, Kokar, Ağaçaltı, Pürenliseki, Eğritaş, Kırkdamaltı, Bahattin Samanlığı) we can see scenes suchas Birth of Jesus, Gospel to Mary, Escape to Egypt and Last Supper. There are also important churches in Selime Town and Yaprakhisar Village within the valley. These are Selime Castle, Dervis Akin Church, Dogan Yuvasi Church etc. Ihlara Valley is the most important and historical settlement in Aksaray with huge number of domestic and international tourists.

HOW TO GO?

You can reach to Ihlara Valley in Cappadocia, which has the most different geography in Turkey, from the 11th kilometer of Aksaray-Nevsehir road.

Distance between Ankara and Ihlara Valley is 272 km. and you can drive there in 4 hours. The distance to Istanbul is 715 m., with a 9 hours’ drive.

There is no airport in Aksaray, and the flights are made to Nevsehir.

Ihlara Valley Archeological Site