The Republic of Turkey Presented By: Serkan SAYDAR

Geography Southeastern Europe and southwestern Asia Bordering the Black Sea, between Bulgaria and Georgia, and bordering the Aegean Sea and the Mediterranean Sea, between Greece and Syria Location:

Location of Turkey

The Map of Turkey

Geography square kilometers ( square miles) % 3 on the European continent % 97 on the Asian continent Area:

People 70,413,958 (July 2006 est.) 0-14 years: 25.5% years: 67.7% 65 years and over: 6.8% Growth rate: 1.06% (2006 est.) Population

People Major Cities –Ankara 4 million (The capital city) –Istanbul 10 million –Izmir 3.4 million –Bursa 2.1 million –Konya 2.2 million –Adana 1.8 million

Political Environment Type: Democratic, secular, social state governed by the rule of law, parliamentary Legislative power: The Turkish Grand National Assembly Executive power: President and the Council of Ministers Judicial power: Independent courts and supreme judiciary organs

Political Environment Political Stability (Medium) – Mid 70’s – late 80’s Left – right parties – 90’s Beginning of both political and economical stability –Last seven years Economic growth

Government Chief of state: President Ahmet Necdet SEZER (since 16 May 2000) Head of government: Prime Minister Recep Tayyip ERDOGAN (14 March 2003) Cabinet: Council of Ministers appointed by the president on the nomination of the prime minister Elections: president elected by the National Assembly for a seven-year term.

Government Extent of government promotion of IT –Telecommunication infrastructure upgrading Fiber optics New ISPs Privatization (%55) of Turk Telekom Broadband-satellite connections –Wireless communications –Electronic government Digitalization Web platform –Ecommerce

Government Trade barriers to IT diffusion (Very low) –Liberal trade and investment policies (1980), –"Free Zones Law" was enacted laying the framework for the establishment of free trade zones (1985) –20 free trade zones, $22.1 Billion total trade volume –No restrictions Regulation/restriction of IT ownership –Telecommunication Authority –Licensing Legal protection and copyrights –modern copyright law since 1951 –Prevention of personal copies for art works and software

Educational System Primary Education: Eight years; includes the education of children in the 6-14 age-group. Compulsory for all male and female citizens. Secondary Education: Consists of general and vocational-technical high schools that offer at least three years of education. Higher Education: Includes all educational institutions where an educational programme of at least two years over and above secondary education is implemented. These educate students at associate's, bachelor's, master's or doctorate degree levels. Primary and secondary education is free of charge in public schools. Higher education institutions, however, charge a certain minimal tuition fee.

Educational System Literacy rate: % 86.5 (2003) Distribution percentages IT Literacy –Low, increasing with the technology diffusion Education LevelFemale (%)Male (%) Primary Secondary Higher

Language and Culture Extent of knowledge of English –Popularity after World War II –Secondary and higher level of education –Business language Extent of set of written symbols in native language –Turkish (official language) –Latin alphabet including 29 symbols

Hofstede’s Study MAS (45) –Relatively low level of differentiation and discrimination between genders UAI (85) –low tolerance for uncertainty and ambiguity PDI (66) –Importance of wealth and power

Hofstede’s Study IDV (37) –More collectivist nature with close ties between individuals

IT Diffusion Use of phones –Main lines in use 19,125,200 (2004) –Mobile cellular 34,707,500 (2004) Computers per capita –Personal computers 9.98% TV per capita –92.19% (2004) IT usage –Private sector –Universities –Government –Primary and secondary level education

Telecommunications & Infrastructure Extent of Internet connections –Internet hosts :753,394 (2005) Support for EDI –Especially for R&D –VAN among universities and private sector Availability of digital networks –Limited but improving with new investments. Availability of ISDN/fiber –Coaxial cable prevention Year Number of users (x1000)

Computer Industry Extent of native software industry –Operating System PARDUS –ERP systems –Control and automation software Native hardware industry –Assembling major –New manufacturing minor, developing with the new infrastructure investments.

Economy Currency: Turkish Lira (TL) 1 $ = 1.34 TL (2005) 10% Unemployment Rate –4.7% UK, 7.9% Italy, 10% France, 10.1 % Spain, 10.8% Greece, 11,60% Germany Labor Force: –By occupation: Agriculture 35.9%, Industry 22.8%, Services 41.2%

Economy Extent of privatization –Limited –Turk Telekom by 55% GNP per capita –$5,008 (2005) with an increase 20% Joint ventures with international firms –100% foreign ownership is permitted –Hayes Lemmerz International, Inc. –Unocal International Energy Ventures, Ltd

Economy Extent of foreign direct investment –A new "Foreign Investment law" 2003 –Constant increase in FDI $1 Billion 2003 $1.7 Billion 2004 $2.6 Billion 2005 (first 8 months) $2.9 Billion Stock market –High inflation hits and causes high fluctuation – Stability through Cash inflow to domestic market Strength of Turkish lira Inflation reduction

Strengths Government support on IT and telecommunications Computer based education investments Private sector investments on hardware and software industry Technology acceptance boosted the IT diffusion Amount of IT skilled personnel has increased through computer science programs at higher education levels.

Weaknesses Inadequate media and computer support for primary and preschool education levels. Brain-drain Bureaucracy Telecommunication infrastructure inadequacy Cultural effects –Rural areas

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