TURKEY; INVESTING IN FUTURE

I.INTRODUCTION

Large domestic market of 67 million people potentially consuming high quality products; qualified manual and technical labor force with relatively low labor cost and high productivity; developed infrastructure and transformation facilities along with its excellent geographic and economic location nearby major markets of the world, Turkey is the real opportunity for the investors who invests in future.
Bridging Europe and Asia Minor, Turkey is a land of geographic, economic, and social contrasts. Modern Turkey spans bustling cosmopolitan centers, pastoral farming villages, barren wastelands, peaceful Aegean coastlines, and steep mountain regions. More than half of Turkey’s population lives in urban areas that juxtapose Western lifestyles with traditional – style mosques and markets. Turkey is slightly larger than Texas, and borders with countries; Armenica, Azerbaijan, Bulgaria, Georgia, Greece, Iran, Iraq, and Syria.

Turkey’s dynamic economy is a complex mix of modern industry and commerce along with traditional agriculture that still accounts for nearly 40% of employment. It has a strong and rapidly growing private sector, yet the state still plays a major role in basic industry, banking, transport, and communication. The most important industry –and largest exporter- is textiles and clothing which is almost entirely in private hands. In recent years the economic situation has been marked by erratic economic growth and serious imbalances. Real GNP growth has exceeded 6% in most years, but this strong expansion was interrupted by sharp declines in output in 1994 and 1999.

At the end of 1999, Turkey launched an ambitious stabilization program aimed at achieving single digit inflation by 2002.The main tools of this program have been firm monetary and exchange rate policies, set so as to provide a nominal anchor for reducing inflation expectations, sounder public finance aimed at eliminating the principal source of inflation pressures, and wide ranging structural reforms designed to liberalize and modernize the economy. Although significant progress was made during 2000, a sever banking crisis blew up in late November, accompanied by a huge capital outflow. An IMF-led emergency package has succeeded in normalizing the situation and policies have become stronger in the light of the crisis, due to the renewed momentum that has been given to the structural reform program.
The structural component of the new program recognizes the fact that boosting per capita income requires a major reorientation of government functions from interventionism to guaranteeing the framework conditions for a strong market economy, and contains the necessary ingredients for successful change in this direction, provided it is fully implemented .It contains initiatives in areas as diverse as budget control, liberalization and privatization of utilities, banking, social security, and agriculture.

II.FOREIGN INVESTMENT

The last five years have witnessed important developments in terms of foreign capital investments throughout the world and foreign direct investments have experienced a four-fold increase during that period. According to UNCTAD figures, direct foreign investments, which amounted to $331 billion in 1995 reached $1,271billion at the end of 2000. Total FDI fell 40 percent in 2001 partly because of the September 11th effect, which is close to $760 billion.

In the last five years, total foreign investments grew by 32.4% on the average, faster than the other economic aggregates like world production, capital formation and world trade. Foreign direct investment (FDI) contributes to productivity by facilitating the transfer of technology, and information about export markets. FDI has proved more stable than other forms of private sector finance, although it did fall slightly after the financial crisis in 1998.The top four recipients of FDI flows account for more than half of the FDI received by developing countries. But even the poorest countries, which have difficulty borrowing in international capital markets, attract about the same amount of FDI as middle-income countries relative to the size of their economies. Improving the investment climate to attract more foreign investment remains a key challenge for most of the developing world.

Turkey, situated at the crossroads where two continents meet, is an ideal center for investors looking for a location at the heart of Euro-Asia. With its dynamic and growing economy, huge market, competitive & skilled labor force, Turkey offers numerous opportunities to international investors. The liberal foreign investment legislation and the experience of more than 5500 foreign capital firms ensure a stable and reliable investment environment. At the request of our government, the Foreign Investment Advisory Service (FIAS), a joint facility of the International Finance Corporation (IFC) and the World Bank, completed a study of the Administrative Barriers to Investment to enhance the foreign direct investment environment in Turkey and the necessary changes are underway.

Attracting FDI was one of the important economic policy aim in Turkey in early 1990’s. As a result with her relatively liberal foreign investment regime, Turkey improved her performance by increasing foreign capital stock 40 percent annually (comparing 23 percent annual world trend), by growing 225 percent during 1986 – 1990 period. But contrary to the developments in early 1990’s,in the second half with the severe competition among rival countries, Turkey lost her pace by growing only 10,6 percent during that period while the world trend was close to 29 percent.
With no restriction on foreign ownership percentage or control, the main issue facing foreign investors is usually the choice of entity. A corporation or a limited liability company is the usual answer. Turkey operates a liberal foreign investment regime. Companies established by foreign investors in Turkey, whether on their own or in partnership with Turkish nationals, are regarded as Turkish companies and are entitled to all the same rights as those granted to wholly owned Turkish companies. For business partnerships, flexible, creative and entrepreneurial sprit of Turkish people is an ideal “blend” with the systematic, efficiency-oriented and strategic traits of the Western business flavor. Through Joint –Ventures and other form of partnerships, international companies should make use of the local contingencies to gain quick entry to this promising and friendly market. Those companies can combine their know-how and development capacities with the comparative advantages that Turkey offers, such as lower cost and high productivity ratios, etc…As a result, foreign companies operating in Turkey enjoy high profitability. However, others which plan to invest should come to The involvement of foreign capital is highly encouraged in Turkey's privatization program, South-East Anatolian Project (GAP) and major infrastructure projects. Petroleum and natural gas pipelines from the Russian Federation and CIS countries places Turkey at the crossroads of world's future energy resources. Power generation is another important and attractive area for foreign investment. Once almost exclusively under state control, private companies are now entering this profitable market parallel to the transformation occurred in the legislative environment. With a highly developed and modern telecommunications infrastructure and fast – growing service industries, such as sophisticated banking sector, Turkey offers an advantageous business environment who intends to invest in future.

III.FORMING BUSINESSES

The Turkish Commercial Code recognizes two distinct types of business enterprise; partnerships and corporations. The legal differences between the two concern the allocation of liability and the legal identity of the entity. Corporations established by foreign joint venture partners with or without a Turkish partner are treated as Turkish corporations and are entitled to all rights available to Turkish companies under the Turkish commercial code as mentioned before. Foreign investors may establish a corporation in either of these two forms: Limited Liability Company (Limited Sirket - Ltd. Sti.) and Joint Stock Company (Anonim Sirket - A.S.)

These business types exist as separate legal entities and offer their shareholders limited liability. The most common type of business entity in Turkey is the joint stock company and generally foreign investors establish such corporations for doing business in Turkey.

Joint Stock Company

A joint stock company is defined as a corporation having its own trade name and a predetermined amount of capital divided by shares. The liability of the shareholder is limited to their capital.

The structure and organization of joint stock companies are subject to regulation by the Turkish Commercial Code. However, the founders of joint stock companies are afforded significant flexibility in drafting the articles of association, thereby serving the needs of the specific venture. Capital Market Board regulations also apply to joint stock companies whose shareholders' number at least 250, or who have issued bonds or whose shares are quoted on the Istanbul Stock Exchange.

A minimum of five shareholders, who may be either real persons or legal entities, are required for the formation of a joint stock company. The overall share capital must be a minimum of 50 billion TL and the minimum capital contribution by each foreign shareholder is US $ 50,000.

The capital of a joint stock company is divided into shares of equal value which are treated as negotiable commercial paper. The shares may be issued in either registered or bearer form. Registered shares are freely transferable subject to approval by the board of the company, unless prohibited by the company's articles of association. Bearer shares are freely transferable under the Code of Obligations, unless otherwise agreed by the parties.

Decision making in a joint stock company is by majority vote; but the Turkish Commercial Code includes certain provisions to protect minority interests. Minority shareholders may also request the appointment of a special auditor on their behalf.

Limited Liability Company

Limited liability companies may be composed of real persons or legal entities and must consist of at least 2 and no more than 50 partners. The overall share capital must be a minimum of 5 billion TL and the minimum capital contribution by each foreign shareholder is the TL equivalent of US $ 50,000. All partners are personally liable for the debts of the company up to a maximum of their contribution, however, partners are not held liable for the unpaid portions of others' contributions. They are also more directly exposed to the tax liabilities of the company, limited however to their own shares.

Shares held in a limited liability company are non-negotiable and may be transferred only with the approval of the other partners. Transfers must be approved by at least a 75% majority vote, with at least 75% of the total capital represented. Limited liability companies are also prohibited from engaging in banking or insurance business. A limited liability company differs from the joint stock company in that its capital is not divided into shares of stock nor represented by share certificates. There is no board of directors for a limited company. Instead, the appointed manager has authority to run the company.

Branches and Liaison Offices

Foreign companies may also operate through liaison offices or branches providing they are established in accordance with the relevant legislation. The income of a branch derived in Turkey is taxed in the same way as resident corporations.

Liaison offices may be used to establish a presence in Turkey, but may not carry on any commercial activity and must be funded by the parent company outside Turkey.

Employing Foreign Personnel

Foreign personnel can be employed in Turkey with the permission of General Directorate of Foreign Investments. Companies can apply to employ foreign personnel, but a real person cannot make an application by himself.

The applications are made directly to the General Directorate of Foreign Investments and the applications are evaluated according to a specific criteria where the qualifications of the personnel and the performance of the company are taken into account.

The legislation governing the foreign investments in Turkey has been shaped by the Foreign Capital Law which was enacted in 1954 and the Council of Ministers Decree and Communiquè which were last revised in 1995. The Law and the Decree draws the framework of general principles concerning foreign investment. The detailed application procedures can be found in the communiquè which was promulgated in the Official Gazette dated 04.04.1995 and No.22248.

V. ORGANIZATIONS TO HELP INVESTORS IN FINDING LOCAL PARTNERS

You are planning to invest in Turkey and looking for a Turkish partner for cooperation - there are several organizations to help you in finding a suitable local partner;

TOBB (The Union of Chambers of Commerce, Industry, Maritime Trade, and Commodity Exchanges of Turkey) is a semi-public organization formed by the unification of all the business-related chambers to take all precautions necessary for the advancement of chambers and commodity exchanges. Meanwhile, TOBB also provides help to its members in finding international partners by its "business opportunities" service.

KOSGEB (Small and Medium Industry Development Organization) is a public agency established to help small and medium enterprises in adapting scientific and technological innovations to enhance their competitiveness. In this context, KOSGEB serves as a national centre of the Euro Info Centre, the EU's small and medium enterprises Information Program, and BC-Net and BRE, business cooperation programs.

V.TAXATION

The Turkish tax regime can be classified as: Income Taxes, Corporate Income Taxes, Taxes on Expenditures, Value Added Tax, Banking and Insurance Transaction Taxes, Stamp Duty, Taxes on Wealth ,Inheritance and Gift Taxes, Property Tax.

INCOME TAXES

Income taxes in Turkey are levied upon the income, both domestic and foreign, of individuals and corporations resident in Turkey. Non-residents earning income in Turkey through employment, ownership of property, carrying on a business or from other activities giving rise to income are also subject to tax, but only on their Turkish derived income.

CORPORATE INCOME TAX :

For tax purposes, companies are grouped as limited liability companies (corporations and limited companies) and personal companies (limited and ordinary partnerships). Corporate tax applies to limited liability companies. State economic enterprises and business entities owned by societies, foundations and local authorities are also subject to corporation tax.

Whether a company is subject to full or limited tax liability depends on its status of residence. A company whose statutory domicile or place of management is established in Turkey will have full tax liability; in this case, worldwide income is taxable. If a non-resident company conducts business through a branch or a joint venture, it will have limited tax liability; i.e. fully subject to corporate tax on profits earned in Turkey on an annual basis. If there is no presence in Turkey, withholding tax will generally be charged on income earned; for example, for services provided in Turkey. However, if there is an avoidance double taxation treaty, reduced rates of withholding may apply.

The basic corporate tax rate 30%; With additional levies amounting to 10% of the tax, the effective tax rate is 33%.

For resident corporations, whose statutory domicile or place of management is established in Turkey, tax is levied on world-wide income, but credit is given for foreign tax payable in respect of income from foreign sources (up to the amount of Turkish corporate income tax, i.e. 30%)

Corporate entities having their statutory domicile and place of management outside Turkey, but established in Turkey in the form of a branch are subject to tax on an annual return based on income received from the permanent establishment in Turkey.

Withholding taxes apply on a wide range of types of income received by Turkish resident individuals and corporates, including for individuals; rent receipts from businesses; and for both individuals and corporates; interest on government bonds, bank interest, etc.

From the non-resident's point of view, many payments abroad including those for professional services and technical assistance, royalties and rentals are subject to withholding tax at rates varying between 10% and 25%. In this regard, countries having avoidance of double taxation treaties with Turkey have considerable advantages. These countries can, in general, benefit from a reduction of withholding taxes in certain circumstances.

Royalty agreements including for know-how and patent licences must be registered by the General Directorate of Foreign Investments.

INDIVIDUAL INCOME TAX :

The limited tax liability covers trade or business income from a permanent establishment, salaries for work done in Turkey (regardless of where paid or whether or not remitted to Turkey), rental income from real property in Turkey, Turkish derived interest, and income from the sale of patents, copyrights and similar intangible assets.

Turkish residents are taxed on worldwide income, but they can receive a tax credit for taxes paid abroad. Personal taxes on income from foreign countries may be deducted from taxes due in Turkey on the same income, but only up to the amount of the Turkish taxes assessed.

The income of non-residents is taxed at the same rate as residents, but non-residents are not entitled to deduct the general allowance and receive no credit for foreign taxes. The range of tax rate for individual taxes is 15-40%

TAXES ON EXPENDITURES

Value Added Tax (VAT):

Deliveries of goods and services are subject to VAT at rates varying from 1% to 40%. The general rate applied is 18%. Intercompany interest charges are subject to VAT at 18%. The VAT rate on most leased assets is 1% with the exception of 25-40% on leased cars and 8% on other leased land transport vehicles. Lease contracts are exempt from all types of taxes, duties and stamp taxes. VAT is charged on imports t normal rates.

Banking and Insurance Transaction Tax :

Banking and Insurance company transactions remain exempt from VAT, but are subject to a Banking and Insurance transaction tax. This tax applies to income earned by the banks, for example on loan interest.

Stamp Duty :

Stamp duty applies to a wide range of documents, including contracts, agreements, notes payable, capital contributions letters of credit, letters of guarantee, financial statements and payrolls. Stamp duty is levied as a percentage of the value of the document.

TAXES ON WEALTH

Inheritance and Gift Taxes :

Items acquired as gifts or through inheritance are subject to taxes between 4% and 30% of the item's appraised value. Tax paid in a foreign country on inherited property is deducted from the taxable value of the asset. Inheritance tax is payable over the period of five years and in two installments per year.

Property Taxes :

Property taxes are paid each year on the tax values of land and buildings at rates varying from 0.3% to 0.6%. In the case of the sale of property, a 1,5% levy is paid on the sales value by both the buyer and the seller. The rate is increased to 3.6% if the property is contributed as capital-in-kind.

VI. ACCOUNTING AND AUDITING

The accounting profession is currently governed by the Law enacted in 1989. However, related regulations issued by the Central Bank and the Capital markets Board (CMB) are also particularly important, because they stipulate the standards on auditing, accounting and financial reporting for banks and public companies which have more than 250 shareholders or whose shares or bonds are quoted on the stock exchange.

The law divides accounting professionals into three categories :

Independent Accountants (SM)

Independent Accounting and Financial Consultants (SMMM)

Certified Financial Consultants (YMM)

Individual persons or entities acting as auditors for corporations and regulatory agencies must be licensed as Independent accounting and financial consultants (SMMM) or Certified financial consultants (YMM). The Ministry of Finance requires certifications, being mainly tax related, to be carried out only by Certified Financial Consultants (YMM).Generally, companies which have obtained the tax certification service from Certified Financial Accountants (YMMs) should be safer than those without.

Legal books must be kept for five years after the end of the related accounting period according to tax legislation and for ten years according to the Turkish Commercial Code. The accounting records that must be kept are as follows :Journal ledger, Inventory ledger, Production ledger, Stamp tax book, Journal for bills of exchange.

These records should be kept in Turkish and in Turkish Lira and be authenticated by a public notary. Although these are the basic legal books required, others may be needed depending on the type of business. Companies may keep computerized records provided that they comply with these basic requirements.

The government requires that all corporations produce an annual report setting out the Balance Sheet and Profit and Loss Statement of the company in accordance with a standard chart of accounts, to be filed with the Trade Registry, and due 30 days after the annual general meeting which should be held within four months of the company's financial year-end.

Companies subject to CMB regulations are required to use specific formats for financial statements and comply with more detailed CMB requirements. The quoted companies should publish quarterly financial statements. Companies subject to particular regulation, specifically banks and insurance companies are required to produce quarterly and annual reports for various government agencies as well as publish their reports on newspapers.

Audit Requirements

There are no legal requirements in Turkey for the independent audit of the statutory financial statements, although the Turkish Commercial Code requires all companies to have a "statutory auditor". However, banks, brokerage firms, public companies (defined as either companies whose stocks or bonds are quoted on the Istanbul Stock Exchange or where the total number of shareholders exceeds 250) and those companies which issue bonds or other financial papers are subject to CMB requirements. CMB requires the financial statements of these companies to be audited by those independent firms listed by the CMB. The accounting policies and the auditing principles required under CMB regulations are close to international standards. An auditor reporting under CMB standards is required to give his opinion on whether the financial statements provide a "true and fair" view.

Audits for entities receiving government or investment funding including state or privately owned investment development banks are usually performed in accordance with Generally Accepted Auditing Standards (GAAS). Companies operating internationally also generally request their financial statements to be audited in accordance with GAAS.

VII. EMPLOYMENT REGULATIONS

The legal working week is 45 hours in Turkey. Overtime may not exceed 3 hours a day or 90 days a year and is not allowed in underground work. Usual overtime rates involve a 50% daytime premium on weekdays and Saturdays and 100% on Sundays and public holidays.

A minimum wage is set by the government, but actual wages are higher than the minimum wage rate. Salaries are normally reviewed on a half yearly or quarterly basis. The review of wages depends on whether there is a collective bargaining agreement with a union and how long this is valid for.

Fringe benefits cost employers about 30-40% of blue collar worker's gross wages and 25-30% of white collar salaries. The most common fringe benefits are meals, transportation, and yearly bonuses of two or four month's salaries. In addition, cash benefits payable in the event of births, marriage, etc. and heating and clothing allowances are provided through union agreements.

Under existing labor law, a company is required to make lump sum payments to employees whose employment is terminated due to retirement or for reasons other than resignation or misconduct. Severance pay is calculated at one month's salary up to a maximum amount per year of service. This limit is adjusted four times a year. The employer has no obligation to provide severance pay if the employee resigns.

Legislation also requires that all employees should be covered by the social security system and pay social security contributions. The system includes benefits for industrial accidents and sickness, health insurance, maternity, disability, old age and death. It also covers almost all costs of a modest level of medical care.

Contributions as a percentage of gross salary are payable by individual employees and employers. The contribution rate for the employer and employee is around 19,5-25% and 14% of the gross salary respectively. For citizens of countries with which Turkey has bilateral social security agreements, it is possible to stay within their own national social security schemes.

Employment law currently allows males to retire after 25 years of work and females after 20 years. Moves to rise the retirement age from the current level to ages around 55 and 60 are under discussion.

The employment of foreign personnel is also possible in Turkey. In order to be able to work and reside in Turkey, all non-residents must first obtain a work permit from the General Directorate of Foreign Investments and parallel with this permit, a residence permit from the Ministry of Internal Affairs.

VIII. FREE ZONES

Free Zones are special sites within the country but deemed to be outside of the customs border, where the valid regulations related to foreign trade and other financial and economic areas are not applicable, are partly applicable or new regulations are tested in. Free Zones are also the regions where more convenient business climate is offered in order to increase trade volume and export for some industrial and commercial activities as compared to other parts of country.

With the objective of increasing export-oriented investments and production in Turkey, accelerating the entry of foreign capital and technology, procuring the inputs of the economy in an economic and orderly fashion and increasing the utilization of external finance and trade possibilities, Free Zones Law numbered 3218 was issued in 1985. Since then, Mersin (1987), Antalya (1987), Aegean (1990), Ystanbul Atatürk Airport (1990), Trabzon (1992), Ystanbul-Leather (1995), Eastern Anatolia (1995), Mardin (1995), ISE Ystanbul International Stock Exchange (1997), Yzmir Menemen-Leather (1998), Rize (1998), Samsun (1998), Adana-Yumurtalyk (1998), Istanbul Thrace (1998), Kayseri (1998), Europe (1999) , Gaziantep (1999),Free Zones became operational.

In general all kind of activities can be performed in Turkish Free Zones such as manufacturing, storing, packing, general trading, banking and insurance. Investors are free to construct their own premises, while zones have also available office spaces, workshops, or warehouses on rental basis with attractive terms. All field of activities open to Turkish private sector are also open to joint-venture of foreign companies.

Features of Turkish Free Zones

Turkish Free Zones are tax free zones. Income generated through activities in the Zones are exempted from all kinds of taxes including income, corporate and value-added tax.

The validity period of an operation license is maximum 10 years for tenant users, and 20 years for users who wish to make their own offices in the zone; If the operating license is for production, these terms are 15 and 30 years for tenant users and investors, respectively. The requested operation license period can be prolonged to 99 years according to the type of investment.

Free Zones earnings and revenues can be transferred to any country, including Turkey, freely without any prior permission and are not subject to any kind of taxes, duties and fees.

There is no limitation on the proportion of foreign capital participation in investment within the Free Zones.

In contrary to most Free Zones of the world, sales into the domestic market are allowed in Turkish Free Zones. (Sales to the domestic market is subject to a fee of 0.5 % of the transaction value.)

Currencies used in the zone are convertible foreign currencies accepted by the Central Bank of Turkey.

Infrastructure of the Turkish Free Zones is comparable with international standards.

Red tape and bureaucracy have been minimized during application and operation phases by authorizing only one agency in charge of these procedures.

The geographical location of Turkey provides significant advantages to the Turkish Free Zones.

Turkish Free Zones are adjacent to the major Turkish Ports on the Mediterranean, Aegean and Black Seas. In addition, they were established within easy access from international airports and highways.

There are no procedural restrictions regarding price, standards or quality of goods in the Turkish Free Zones.

For a period of 10 years following the commencement of operations in the zones, the strikes and lockouts shall not be applicable. However, any disputes occurring within the context to collective bargaining during the period shall be resolved by the Supreme Arbitration Council.

In the Turkish Free Zones, Municipality Law, Passport Law, Encouragement of Foreign Investment Law, and all other articles of laws contrary to the provisions of the Free Zones Law, shall not be applicable.

IX. EU ENLARGEMENT AND TURKEY’S CANDIDACY

Relations between Turkey and the European Union have progressed on the basis of the association agreement (Ankara Agreement). On January 1st 1996, the Customs Union between the European Union and Turkey came into effect, thereby creating the closest economic and political relationship between the EU and any non-member country.

Finally, in Helsinki Summit (10-11 December 1999), the unanimous recognition and announcement of Turkey as a candidate country by EU was realized.

The Presidency Conclusions of the Helsinki Summit stress the fact that the enlargement process of EU comprises 13 candidate states within a single framework and the candidate states are participating in the accession process on an equal footing. The EU expects to welcome new member states from the end of 2002, as soon as they have demonstrated their ability to assume the obligations of membership and once the negotiating process has been successfully completed.

Like other candidate states, Turkey will benefit from a pre-accession strategy to stimulate and support its reforms. Turkey will also have the opportunity to participate in Community programs and agencies, and meetings between candidate states and the Union in the context of the accession process. An accession partnership will be drawn up, containing priorities on which accession preparations must concentrate in the light of the political and economic criteria and the obligations of a member state, combined with a national program for the adoption of the acquis. With a view to intensifying the harmonization of Turkey's legislation and practice with the acquis, the Commission is invited to prepare a process of analytical examination of the acquis. The European Council asks the Commission to present a single framework for coordinating all sources of EU financial assistance for pre-accession.

The official recognition of Turkey's candidate status for full membership to the European Union is a landmark event for Europe and Turkey. Turkey, with its deep-rooted relations with the EU and familiarity with most of the EU legislation, will speed up her accession process and reach to full membership before expectations.
The current economic program undertaken by the government is a continuation of the one initiated in late 1999. It shares the same strategy; disinflate the Turkish economy, strengthen the fiscal accounts and reform the structure of the Turkish economy as a condition for setting economic growth on a sustainable basis and moving Turkey closer to its goal of joining the EU.

The list of the very important laws enacted since 2000 in order to reform the structure of the economy :

-Amendment to Central Bank Law
-Amendment to the Banking Law
-Amendment to the Budget Law
-Elimination of Duty Losses
-Incorporation of Extra-Budgetary Fund into the Budget
-Expropriation Law
-Sugar Law
-Natural Gas Law
-Telecom Law
-Amendment to the Civil Aviation Law
-Tobacco Law
-Economic and Social Council Law

TURKEY AT A GLANCE

Present trends indicate a fall in population growth to an annual rate of 1,62% for the period 1995-2000 and a peak population of some 75 – 80 million after 2020.

Major cities:

Age structure (including forecasts)

The distribution of population which is 31%, 65% and 5% for age groups of 0-14, 15-64 and 65 + respectively for 1999, is estimated to be 20%, 69% and 8% respectively in 2023. The growth rate of population is estimated to decrease to an annual rate of below 1% by 2023.

Education (Universities and Technological Institutes in Turkey)

There are 71 universities in Turkey. The total number of students in the universities are 1.491.806 in the 1999-2000 academic year. New admissions are 396.512 in the same academic year and the number of graduates are 210.901 in 1999. There are 491 faculties in the universities. The classification of the faculties are given below. The student (1999-2000) and graduate (1999) numbers of some faculties are given in parentheses.

Faculty of medicine, dentistry, pharmacy, letters, languages and history, geography, education, educational science, vocational education, technical education (14,951/2,774), fine arts, law, theology (14,428/2,281), economics (189,049/7,195), economics and administrative science (105,120/14,764), business administration (164,789/7,628), political sci., shipbuilding and marine science, electrical and electronical eng. (3,933/813), chemistry and metallurgy, civil eng., mining eng., mechanical eng. (4,439/880), architecture, engineering (58,054/8,469), engineering and technology (366/36), engineering and architecture, forestry, veterinary sci., agriculture, open education, aeronautics and space sci., music and performing arts, humanities and letters, art, design and agriculture, economics-adm. and social sci. (1,697/292), vocational education for adults, marine sci., fish and fisheries, naval, commerce and tourism edu., industrial arts and edu. (1,306/361), science humanities and arts, communication (11,078/1,133), communication sci. (758/171), health sci., health edu.

There are 162 higher education schools with four-year programs and 392 two-year vocational training schools. The total number of students in four-year higher education is 46,667 for the academic year 1999-2000 and the number of graduates is 6,959 in 1999. The above mentioned numbers for two-year vocational schools are 217,758 and 53,727 respectively.