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The second Ital-Turk Dialogue Forum, promoted by UniCredit, Limes, thegeo-political magazine and SAM (Center for Strategic Research), was heldin Istanbul on November 23 and 24, 2005. The event provided anopportunity to continue the discussion with authorities from the Italian andTurkish political, economic and academic world which began with the firstForum held in Rome in 2004.The Forum took place in Istanbul not long after October 3, the day on whichagreements were signed for the beginning of talks concerning Turkey joiningthe European Union. "An important moment in the long relations betweenthe EU and Ankara", said Carlo Salvatori, Chairman of UniCredit, duringthe introductory session. "The fact is gaining ground that, whenhypothetically calculating the costs and benefits of Turkey’s inclusion in theEU, the advantages are much higher".The introductory session also featured Mustafa Koc, President of Koc Holding,Abdullah Gul, Minister of Foreign Affairs from Ankara, Roberto Antonione,Under-Secretary for Foreign Affairs for Italy (who reiterated support of theItalian Government for Turkey’s entrance into the Union), Alessandro Profumo,Managing Director of UniCredit, Tvfik Bilgin, Chairman of BDDK (Turkey’sbanking watchdog), Luca Cordero di Montezemolo, Chairman of Confindustria(General Confederation of Italian Industries) and Omer Sabanci, Chairman ofTusiad (the Turkish Confindustria), who focused on the growth of tradebetween the two Mediterranean countries.The discussions, open to all participants ("The real meat of these meetings",as they were referred to by Giuseppe Scognamiglio, in charge of theinstitutional and international relations for UniCredit, and Moderator ofthe event), unfolded over three sessions. The first, focusing on politics, was

DOCUMENTS

ITALIAN-TURKISHFORUM23/24 NOVEMBER 2005

Politics, economics, bilateral rela-tions and the role of women in theevolution of Turkish society: thesewere the subjects under discussionat the second Italy-Turkey Forumheld in Istanbul. The first forumtook place in Rome in summer2004. The delegations from the twocountries were large and high pro-file, as the introduction to this doc-ument shows. Two specific issueswere discussed in depth: theCyprus issue in the political work-shop and the role of women in thesocio-cultural workshop

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chaired by Renato Ruggiero, former Minister of Foreign Affairs and Chairmanof the International Advisory Board of UniCredit, and Yasar Yakis, formerMinister of the Foreign Affairs from Ankara and Chairman of TGNA(Turkish Grand National Assembly).The second workshop, closely examining the subject of social and culturalrelations, particularly with regard to aspects relating to the role of women inthe evolution of Turkish society, was chaired by Giovanna Melandri, formerMinister of Cultural Assets and Activities, and by Umit Boyner, Chairman ofthe fund for women and member of the Board of Directors of Tisiad, withthe attendance, among others, also of Zeynep Karahan Uslu, chief of the Turkishdelegation to the Euro-Mediterranean parliamentary Assembly. The lastsession, on the development of the Turkish economy, was chaired by AdolfoUrso, Vice Minister of Productive Activities and Basaran Ulusoy, Chairman ofthe Turkish Tourism Association. Some of the speakers who rounded off theForum included Murat Bilhan, Chairman of SAM, Claudio Scajola, Minister ofProductive Activities and Ali Coskun, Minister of Industry and Trade inTurkey.Also participating were: Mario Rosso, Managing Director of Ansa, AntonelloBiagini, Lecturer at La Sapienza University Rome, Mario Zucconi, Lecturer atUrbino University, Paolo Quercia, Deputy-President of CEMISS, GiuseppeCucchi, former General and military expert, Giampaolo Papa, Ambassador andtop representative of the EU in Turkey, Atilla Eralp, Director of theDepartment of European Studies at Ankara University, Lapo Pistelli,Chairman of the Margherita group at the Parliament of Strasbourg, VincenzoCamporini, Chairman of the Defense Studies Center, Atilla Askar, Rector of KocUniversity, Murat Bilhan, Ambassador and Chairman of SAM, Giovanni Ricci,Lecturer in Modern History at Ferrara University, Lorenzo Trombetta, fromAdn Kronos, Giovanni Motta, Lecturer at La Sapienza University, Mario Bussani,Lecturer in Comparative Law at Trieste University, Zeynet Karahn Uslu, Deputyof AKP, Serena Massimi from UniCredit, Angelo Iacovella, Lecturer at the ItalianInstitute for Africa and the Orient in Rome and Cecilia Tosi, journalist fromLimes.

ChasingEurope

ABDULLAH GUL Turkish ForeignMinister in Ankara

CHASING EUROPE

RELATIONS OF ALLIANCE WITHITALY ARE STRONGER. GRATEFULFOR ITALY’S SUPPORT. MORE THANHALF A MILLION ITALIAN TOURISTSIN 2005. THE ALLIANCE WITH ROMEIS ALSO THANKS TO ENERGY Italy and Turkey share a close friend-ship and an alliance in a sensitive andvital area such as the Mediterranean.Our historical connections, our com-mon values, the geo-strategic positionof our countries, the view we have ofthe European Union and transatlanticrelations, make up the natural founda-tions of our relationship. 2006 willmark 150 years of relations with Italy.Our Italian friends have so far offeredTurkey great support for entry into theEuropean Union. I am sure that the aidof Rome will not falter in the future.Let us not forget that most of the rootsof European identity are to be foundthroughout the Mediterranean.Furthermore, Turkey and Italy share acommon culture. Both countries werecenters of the Roman Empire, in theEast and in the West; they sharedRoman values and judicial principles.Peace, cooperation, security, well-being are all riches we share.Obviously, there are also cultural dif-ferences, and we wish to retain them.October 3, the day marking the begin-ning of negotiations for Turkey’sentrance into the EU, means a turning-point for us and the European Union.Turkey is eager to set sail and chal-lenge the storms which await it in thiscontinental “adventure”. But we are

_The speakers table included Murat Bilhan, ambassador and chairman of SAM and

Giuseppe Scognamiglio, head of International and Institutional Relations at UniCredit;

right: Abdullah Gul, the Turkish Foreign Minister.

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ready to hold a steady course.In 2004, Italy was third for ourimports, while it holds fourth place interms of exports. Trade volume hasreached 11 billion dollars. In recentyears Italian investors have increased:in 1988 there were only 17 Italiancompanies in our country, but inFebruary 2005 there were 355. Asmany as 106 of these companiesarrived in June 2003. Italian invest-ments here equal about 2 billion dol-lars. Among foreign investors there aremany SMEs, and these companieshave contributed to the success of theItalian economy. Then there is thetourist sector. In 2004, we welcomed400,000 Italians, and in 2005 thisfigure exceeded 500,000.

ALLIANCES THANKS TO ENERGYTurkey lies in a strategic corridor, at thecrossroads of East and West. This strate-gic position is also reflected in the ener-gy sector, in which Italy is now dynami-cally co-operating with Ankara. Russiannatural gas arrives in Turkey through theBlue Stream gas pipeline (see box herebelow) and Italy is part of this process.On the energy front, Turkey and Italyshare other projects. These two countriesplay a key role in the diversification ofenergy supplies. Our two countries haverelationships with each other in everysector: economic, political, cultural andmilitary. All this co-operation canincrease and develop; we will give oursupport in this sense.

ADOLFO URSOVice Minister of ProductiveActivities

ECONOMIC GROWTHSIMILAR TO SPAIN’S

PRIVATIZATIONS, HUGE GROWTHIN THE SERVICE INDUSTRY (NOW65%), EASIER FOREIGN INVEST-MENTS, MULTIPLYING FREETRADE AGREEMENTS...In the last two decades, Turkey hasexperienced a significant process oftransformation, moving from anessentially agricultural economy to anindustrialized economy, growing inimportance also in the service indus-try and reaching levels that are in linewith those of the most advancedcountries. Concerning its GDP, thelast 3-4 years are even more impres-sive, with the Government led byErdogan taking a decidedly Europeandirection. Agriculture now accountsfor 11.5%, down from 13.1% in2001; industry is also down from25% to 23.5%, while services havejumped almost 4 points to 65%, thusconfirming its alignment with moreindustrial countries. In the last fewyears, from the beginning of theGovernment recovery program, infla-tion has dropped to 8.5%, against70% in 2001.Exports grew by 32.8% in 2004 andby 17.1% in the first eight months of2005. Currency reserves stand at over40 billion dollars; in 2004 GrossDomestic Product grew by almost10%, with a 5% growth expected in2005. Industrial production in 2004rose by 10%, and for 2005 estimatedgrowth is 5-6%. Ankara is very opento international trade and some havecompared Turkey’s current phase tothe one Spain experienced in thenineties, also in that case partlydetermined by the European ambi-tion, which we now find in the easternMediterranean. Some historical and long-lived prob-lems are certainly still to be solved,

THE BLUE STREAM GAS PIPELINE, 380 KM CREATED BY ENI

On November 17, 2005, in Durus, a small village on the western Turkish coast of the Blacksea (near the port of Samsun), the Turkish Prime Minister Tayyip Erdogan, the ItalianPrime Minister Silvio Berlusconi and the Russian President Vladimir Putin, opened the BlueStream gas pipeline. The pipeline will take Russian natural gas to the Turkish terminal ofCeyhan (partly through the already existing Turkish national pipeline), and from there toAnkara. The Blue Stream project started in 1997, with the signing of an agreementbetween the Turkish company Botas and the Russian Gazexport (Gazprom group) for thesupply of gas for the next 25 years: over 16 billion cubic meters of gas annually when theproject is running at full power. The gas pipeline is 1,200 kilometers in length, 380 ofwhich were constructed by Eni. The cost of the project was about 4 billion euros.

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such as the high unemployment level,the social and economic differencesamong the various regions, the short-age of foreign investments comparedwith the recent experience of othergeographical areas and Turkey’s cur-rent potential.

THE STRONG POINTS OF THETURKISH ECONOMIC SYSTEMI would like to consider some strongpoints which I believe are a feature ofTurkey today. The first is the country’sgeographical position as the naturaldoor for access to the huge markets ofcentral Asia, the Caucasus and theMiddle East. The second is the cre-ation of a network of free trade agree-ments that Turkey (within theBarcelona process) has reached(probably the only country on thesouthern shore of the Mediterraneanto achieve such a result), therebyeffectively creating a South-Southmarket, which in the Barcelonaprocess we believe to be fundamentalto help growth along the southernshores of the Mediterranean. Thethird strength is the implementationof new regulations aimed at creating amore favorable climate for foreigninvestments, by simplifying proce-dures, accelerating company registra-tions and developing investments.Concerning Italy, I think it is impor-tant to note that the Turkish entrepre-neurial structure is very similar to theItalian one, consisting of financialand industrial families, and a multi-tude of small and medium enterpris-es; it’s an economic system which caneasily work with our own, an industri-al system drawing on the engineeringindustry and the textile industry,again like Italy; while the agriculturalsystem is developing an importantfood and agriculture industry. Furthermore, the recent privatizationprocess, from which our companieshave already benefited, has thepotential to encourage the presenceof foreign companies. Turkey alsoboasts a special desire to create anenergy infrastructure and infrastruc-tural corridors that cross the country.Italians enjoy a particularly favorable

climate in the country and so do allthose Europeans who see Turkey as acountry progressing towards Europeand facing difficult negotiations.

EIGHTH TOURIST POWER IN THE WORLD Today Turkey holds the eighth placeas a tourist destination worldwide. Infive years, it may reach 5th-6th place,hence a position similar to Italy’s.Again in 2005 the number of touristsin Turkey increased impressively (a23% increase was recorded in thefirst eight months). With over 15 mil-lion tourists visiting in 2004, 2005could witness 20 million visitors.Some of these are obviously Italians,but there are not that many comparedwith other nationalities. Approximately 325,000 Italians visitTurkey each year. (Figure not match-ing Minister Gul’s) More can be done,also concerning investments in thetourism sector, with more emphasison archeological and cultural sites.The Italian industry could play a cen-tral role in this sense, having alreadydeveloped important projects alongthe Adriatic, for example.

CLAUDIO SCAJOLA, Minister ofProductiveActivities

A NATURAL BRIDGE BETWEEN THE WEST AND THE EAST

ITALY AND TURKEY WILL COUNTMORE IN THE MEDITERRANEAN.TWO ECONOMIES WITH A LOT INCOMMON IN PRODUCING WEALTH,STARTING WITH THE SME NET-WORK The special geographic location andthe inclination for political and cultur-al brokerage make Turkey a fundamen-tal pivot between the West and Asia,

between the North and South of theworld. Turkey lies between Europe,central Asia, the Balkans and theMiddle East; it occupies a strategicposition both economically and politi-cally. In a phase featuring huge growthin Asian economies, the Pacific andthe Mediterranean, Turkey couldbecome a hub for trade between Asiaand the West, North and South. From a cultural point of view Turkey,with its strong and non-dogmaticapproach to the subjects of religion,society and politics, is in a positionto favor dialogue between the Westand the Islamic world at a time suchas now, with the existing complexi-ties. The adhesion of Turkish societyto the values of tolerance and rule oflaw enables Turkey to look forward tofull European Union membership. The opening of membership talks isnot only a great success but also adeserved recognition of the effortsmade to adjust regulations and prac-tices to comply with Union stan-dards. The path laid out by the agree-ments of last October 3 is taxing, asit was for the other countries thatrecently joined. Turkey, on the other hand, will enjoysignificant benefits from joining theUnion, which will provide it financialsupport and the opportunity to inte-grate its economy into the large andstable European systems. Entrance inthe largest area of free movement ofgoods and persons in the world mayprovide more work opportunities forprofessionals, who are abundant butare constricted by the current limiteddomestic market. Italy has closelyfollowed the reforms started byTurkey in recent years in the finan-cial, monetary and structural sector.These reforms have allowed the coun-try to become a new leader at globallevel, with high growth rates.In the last three years, Turkey’s GDPhas grown at a rate twice as fast asthe world’s average, with notableprogress made also on the inflationfront. All against a backdrop of priva-tizations, beneficial for Ankara’s pub-lic financing, which have increasedthe level of competitiveness and effi-

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ciency within the productive system.The Turkish Stock Market is on theup with shares featuring excellentperformances in the banking,telecommunications, constructionand, especially, the cement manufac-turing industries (riding the greatwave of demand for new housing). Animprovement in the macro-economicpicture has led to great interest fromItalian companies, which have inten-sified their commercial and produc-tion relations with Turkey.

ALESSANDROPROFUMO Chief ExecutiveOfficerof UniCredit

THE UNIFYING ROLE OF A EUROPEAN BANK

A EUROPEAN BANK IS BORNMORE THAN 7,000 BRANCHES IN19 COUNTRIES In a rapidly and greatly changinginternational marketplace, theEuropean Union constitutes an extra-ordinarily important experience, serv-ing as a fundamental economic andpolitical benchmark for all the upand coming players of the third mil-lennium. Through a groundbreakingprocess of social and economic inte-gration, in just under fifty years theEuropean Union has built an area ofpeace based on the principles ofclose ties between all the memberstates. It has been able to attract,support and welcome countrieswhich, after the fall of the iron cur-tain, which had cut them off from thewestern world, have been able to con-vert their centralized plannedeconomies to market economies at anincredibly fast speed.

THE EUROPEAN SOCIAL MODEL In this sense the European Union isclearly different from other large eco-nomic and political powerhouses and

similar organizations. One of thesedifferences surely lies in the so-called European social model, creat-ing a kind of dynamic balancebetween international competition,social cohesion and democratic soci-ety. It is aided by an active roleplayed by social bodies combinedwith efficient government welfaresystems and public services, whichthough in need of review in light ofthe new requirements arising fromglobal competition, certainly repre-sent a strong part of it. No lessimportant is the opening to the exter-nal world, which is probably the mostextraordinary feature of the EuropeanUnion. This is because enlargementarises from the awareness that theproposed model is a winning one andis not afraid to welcome new mem-bers. Europe knows that enlargementis firstly an opportunity which, if han-dled well, creates value both forcountries accepting new members aswell as for the new members them-selves. Enlargement is also recog-nized as a necessary condition to cre-ate constructive experiences thatenrich the Union’s culture. Thanks tothis interpretation of its role in theinternational context, in just lessthan 15 years, the European Unionhas increased its clout at a globallevel, thus becoming an ever presententity. Today the European Union isthe top trading power in the worldand is making strategic choices capa-ble of making it a world leader inother fields. But the element whichperhaps makes the European Unionstand out the most is its respect forheterogeneities within itself, whichalso represents one of the keys to theenlargement process. The Union isfounded on the knowledge that noteverything must or can be harmo-nized; a monolithic Europe withoutdifferences and without considera-tion for the thousands of years of his-tory, traditions, culture of the indi-vidual countries, would be unthink-able. If the aim is to build a Europewith set universal common values,this aim will be followed respectingthe identities and souls that make it

up. It is in this Europe that theUniCredit Group was founded, grewand chose to establish itself as alarge international credit group. Iwould like to say that without theEuropean Union or the single curren-cy we would not be what we aretoday; the two things are closelyrelated. UniCredit’s history is tightly connect-ed to the European Union’s and manyof its most important choices have insome way participated in the Union’srecent history. Among these, worthmentioning is the choice to invest inCentral Eastern European markets.Begun in 1999 with the acquisitionof Bank Pekao, the development planfollowed the lines of an importantprivatization process of the creditsystem by Polish authorities, whichcontinued with the acquisition ofmany other banks in the CentralEastern European area. The choice toinvest in these countries, which wecall the new Europe, met the need todistribute the Group’s assets in coun-tries with a higher growth rate thanItaly and with a progressively declin-ing risk factor given their imminententrance into the EU. Many of thecountries we invested in are alreadymember states, others will become soshortly and there are even morewhich have only just begun the pathto membership.

INTEGRATIONWITH THE HVB GROUP Our vocation of playing a leading rolein international finance recently ledus to merge with the German groupHVB Bank Austria. It is a complextransaction bringing about the firsttruly European bank. This is becausethe new entity is not the result of asimple union between an Italianbanking group and a German one, butrather the fruit of the two creditgroups’ belief in a model that over-comes the concept of borders andaims to become an effective operatorin Europe today and in the future. Bydeciding to create the first realEuropean bank, we chose to work notonly in geographically segmented

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markets, but also in that Europeanmarket which, with a growingstrength, is drawing the attention ofcredit operators as a rapidly changingmarket and where our Group, the newgroup, can improve its levels of effi-ciency and profitability. The mergerbetween UniCredit and HVB BankAustria is above all a great culturalchallenge, to have 130,000 col-leagues speak the same language,which is not merely an idiom, but thesynthesis of different cultures andprofessional experiences, all extraor-dinary enriching and complementary,to create a Group able to use its bestresources in a totally independentmanner, regardless of their geograph-ical location or home business cul-ture. Our group is the first really largeEuropean credit group, because wedecided to act as Europeans, but infull respect of local conditions; wewant to be European in Germany,Italy, Turkey and in all the othercountries, though always keeping astrong local identity within this newEuropean identity, and interactingwith all the cultures in the Group tocreate something that is innovativeand able to preserve local roots.

TURKEY TAKES CENTRE STAGEIn a European context which isbecoming the reference for our pre-sent and future operations, Turkeyoccupies a position at the fore-front,and represents a market to which theGroup has been, is, and will be moreand more committed. A few figuresare enough to understand the cen-trality of the Turkish market for theUniCredit HVB Group. Turkey is thecountry where UniCredit boasts thehighest number of clients, followedby Poland and Italy. Excluding Italy,Germany and Austria, where the pres-ence of our group has a long history,Turkey represents the second marketin terms of total business. It is a mar-ket in which UniCredit has beenoperating since 2002, through a sat-isfactory joint venture with KocFinancial Services, which owns99.9% of Koc Bank. Recently weconsolidated our presence throughthe acquisition of 57.4% of YapiKredi, the fourth largest bank in thecountry. Today we are the third bank-ing group in Turkey with 21 billionassets, 6 and a half million clients,575 branches throughout the nation.Our great interest in the Turkish mar-

kets emerges from a series of careful-ly thought-out considerations whichmay be summarized in four basic ele-ments: excellent economic growthprospects, strong and active traderelations with Italy, fast developmentin the financial and credit marketsand progressive alignment toEuropean regulatory standards.Economically Turkey has been experi-encing three years of extraordinarygrowth; thanks to agreements withthe International Monetary Fund andbecause its economy is now open toforeign markets, Turkey has not onlydefinitively overcome the crisis it suf-fered in 2001, but with its GDP per-haps reaching 340 billion euros atyear end, it is now placed among thetop 20 thriving economies in theworld. The extent of its economicgrowth is enough to make analystsenvisage that already towards the endof 2006 Turkey could meet the crite-ria fixed by Maastricht concerningthe deficit/GDP ratio. The economicchoices taken so far by authorities inAnkara are going in the right direc-tion, especially concerning inflationcontrol, which has dropped from lev-els exceeding 70% at the end of thenineties to the current single digit. Italy has particularly intense econom-ic and commercial relations withTurkey. Italy is Ankara’s secondbiggest commercial partner and it isalso one of the main direct investors.Many major Italian business groupsare located in Turkey and there ispractically no Turkish industry towhich Italian companies have notcontributed. Apart from its size, theItalian-Turkish partnership is espe-cially based on the significant pres-ence of Italian companies in the moststrategic industries for the growthand development of the country, suchas energy, telecommunications andfinance. Looking at the financial andcredit market, despite some persist-ing elements of structural fragility,Turkish authorities are highly praisedfor having begun the importantprocess of reform. The actions of theGovernment and the regulatoryauthorities, with the aid of the

_Turkey’s membership of the EU is also a major challenge for Europe, which could in-

clude a great democracy within its borders. Photo: the Turkish Parliament

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International Monetary Fund, havegot rid of the most inefficient banks,re-sized public banks and createdgreater space for the most financiallysolid institutes.

TEVFIK BILGIN, Chairman of thebanking watchdog(Bddk)

HOW THE CREDIT SYSTEMWORKS IN TURKEY

THE WATCHDOG (BDDK) WAS SETUP FOLLOWING THE SERIOUSBANKING CRISIS IN 2001.FUNDAMENTAL ALLIANCES WITHITALIAN CREDIT INSTITUTES In the last twenty five years of thecentury, in all developed countries,financial services have expanded at ahigh rate, and the growth of the realeconomy has gone hand in hand withthat of the financial sector. In somecountries, the banking world has hada greater impact than others. Turkeyis one of those countries where thecredit sector plays a decisive role.Why? There are various reasons forthis. In Turkey 75% (some say 80%)of the financial system consists ofbanks. Moreover, 80% of GDP is cre-ated by credit. The Turkish bankingsystem has had its fair share of prob-lems. In particular, 2001 saw twovery dicey periods; a watchdog(Bddk) was established as a conse-quence. It is a fully independentAuthority, with the aim of guarantee-ing competition and transparencywithin the Turkish economic andfinancial system.When looking at recent history close-ly, we see that, after this turningpoint, our banks have radicallychanged their way of managing risk,and have realized that they play avital role for the entire country. The2001 banking crisis cost Turkeypractically 30% of its nationalincome. This did not just happen in a

few days. The Bddk started its opera-tions in 2002 and since then we haveslowly brought the Turkish bankingsystem to its present state. Thoughwe may not have taken all the mostappropriate steps, we have looked forwise solutions that let us get our sys-tem running again.

SOME BANKING SYSTEM FIGURESIn 1999 Turkey had 81 banks, now ithas 40. In 2001, we had 117 billiondollars of total assets, now we have260 billion dollars. Some more data?In 2001 global commitments equaled27 billion, now these are 96 billion,and the growth goes on. Again in2001, our banking system had an 8.2billion dollar loss; today we have a4.2 billion margin. 13% of our creditsystem is in the hands of foreigninvestors. All these steps forwardtaken by the banking system havebeen hard work; we need time. Workis still in progress. In any case we aregetting ready for the next stages andthe adjustments provided for byBasilea2.

RELATIONS WITHTHE ITALIAN SYSTEM

95 years have passed since the Bancadi Roma ( in 1911) came to Istanbuland began trading. Now we have threeItalian banks represented in our coun-try: Banca Intesa, IMI Bank andMonte dei Paschi di Siena. In July2002 another very important phasewith Italy was initiated, shortly afterthe crisis in our financial system: theconditions were created for the Italianbanking system to support the Turkishbanking system. Perhaps without thisalliance our crisis would have persist-ed. Another Italian bank decided tocreate a partnership with a Turkishcredit institute. The same two banks,Koc and UniCredit, were attracted toYapi Kredi Bank. On August 1st2005, the historical decision wastaken to create this joint-venture,thereby setting the stage for a closecollaboration between our system,Italian banks and the Banca d'Italia,for further growth.

LUCA CORDERO DIMONTEZEMOLOPresident ofConfindustria

WE KNOW EACH OTHER WELLWE’VE BEEN HERE FOR 45 YEARS

EXCELLENT COOPERATIONBETWEEN ITALIAN AND TURKISHCOMPANIES. IN THE WAKE OFLARGE CORPORATIONS, WORKINGIN TURKEY FOR YEARS, IT IS TIMETO MAKE SPACE FOR SMESI would like to focus on three pointsthat emerge from the subjects dealtwith in the Forum. The first concernsEurope, the second Turkey’s growth andits relationship with Italy, and the thirdexamines the development of initiativessuch as those between Unicredit andthe Koc Group, which can ensuregrowth, especially for the SMEs of bothcountries.Let us take Europe. Europe, with itsneed for leadership and a total reform ofits economic policies and with enlarge-ment issues to be tackled, is now expe-riencing a delicate, though extremelyinteresting moment. There will be a newEurope: a project which seamlesslyjoins countries with different cultures,histories and traditions, in a visionwhich finds no equal the world over. OnOctober 3 Turkey started importantnegotiations, decisive for this countryand for Europe. The Government and allthe Italian political forces have longdearly desired these negotiations. There is no doubt that in recent years,relations between Italy and Turkey haveintensified rapidly. I do not share theopinion that until a few years agoItalians did not even know where Turkeywas. Just think of Fiat, which has beenhere for 45 years now, or Pirelli, for 40years. Of course, lately with communi-cations and travel, cooperation hasbeen further strengthened. I believe thejoint venture between Koc bank andUniCredit is one of the best examples ofwhat we can hope for in the future forItalian and Turkish companies (I regard

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banks as companies just like any other).There is a great challenge ahead for theItalian business community. Our SMEsand corporations have been in Turkeyfor some time, and these collaborationswill be strengthened still. There arenames such as Telecom, Pirelli, Fiat,Cementir, Indesit Merloni. But thefuture is in the hands of small andmedium sized enterprises, which haveknow-how, brands, energy and can findinteresting joint-ventures in Turkey.There are also great opportunities fortourist companies. Turkey is a very pop-ular destination for European andItalian tourists.

2006: A NEW OPPORTUNITY IN THE PALERMO MEETINGMy last thought concerns what we canexpect in the coming months. Let usbegin with the meetings of 650 Italiancompanies and about 3,000 “face toface” meetings in Istanbul, in theNovember Forum. But the real workbegins an hour after returning to Italy.In February, in Palermo, we are plan-ning a two-day event organized togetherwith the Turkish business communityand the 15 countries of the northernMediterranean. Today we can rely on thefundamental role played by a bankinginstitute like UniCredit; a banking hubin Turkey making use of local manage-ment but with an international vision.Italian companies really need all of this.

BULENT ALIRIZA Responsible forWashington’s CSIS(Center for Strategic and

International Studies) in

Turkey

AN AGREEMENT AMONG THE PARTIES IS REQUIRED AS REGARDS CYPRUS

CYPRUS REMAINS THE BIGOBSTACLE. AFTER THE COLLAPSEOF THE BERLIN WALL, THE US’STIES WITH ANKARA HAVE LOOS-ENED. THE EUROPEAN UNION ISPRESENTLY PARALYZED

Let us look at some aspects of thestrategic dimension and develop-ments of Turkey’s foreign policy.Understanding the meaning of thestrategic strength of thisMediterranean country is importantand the United States was the first todo so. The USA aided Turkey in join-ing NATO by pressuring Great Britainand France, and underlining theimportance of Turkey due to its geo-graphical position.After 1989 and the collapse of theBerlin Wall, the scenario changed:the Soviet Union dissolved, relationsbetween the USA and Turkey drifted,while they grew between Turkey andEurope. A sort of triangle developedbetween Washington, Brussels andAnkara, and it is necessary to consid-er existing relations between Turkeyand Europe and between the OldWorld and the United States. Itshould be taken into account thatafter September 11 the US cooled itsrelations with all Islamic countries,including Turkey.How will relations in this triangledevelop in the future? A lot willdepend on solving the Cyprus issue.Unfortunately today the only repre-sentative for Nicosia in the European

Union is Greek. In 2002, the UnitedNations tried to find a solutiontogether with Ankara, but after theIraqi crisis things have remainedunchanged and the new TurkishGovernment, which took over in2003, has not taken the additionalsteps necessary for the negotiationsto move forward. We are at a stand-still. The issue of the 'green line',which divides the island in two,remains an obstacle in the relationsbetween Turkey and Europe. We have seen Greece (an EU memberstate) putting forward some requests,such as the opening of a representa-tive office in Ankara. And then thereis the problem of Turkey’s recognitionof Cyprus. This is a complex tangle. What can the European Union do?Presently the EU has its hands tiedand a new plan for Cyprus cannot bedeveloped. Ankara was very clear onthis point: Athens on its own cannotfind a new plan because it controlsonly the Greek half of Cyprus. AfterKofi Annan’s plan (and the outcomeof the referendum held on the islandin 2004), Washington is now lookingfor new solutions although no way outhas yet been found. Plus, US foreignpolicy is presently concerned with

GOVERNMENT AND OPPOSITION: PROS AND CONS OF THE EUROPEAN UNION

The Prime Minister Recep Tayyip Erdogan (1954) is the undisputed founder andleader of the Justice and Development Party (AKP), a moderate Islamic-drivenorganization. He has now held office as Premier of the Turkish Republic sinceMarch 2003, thanks to the outcome of last November’s early General Election. AKPreceived 34.2% of the votes while the social-democratic and secular RepublicanPeople's Party (CHP) headed by Deniz Baykal, with its very critical stance againstTurkey’s entry into the European Union, obtained 19.3% of votes.The National Assembly (Ankara’s parliament is unicameral) consists of 550deputies, elected with the proportional system, with a 10% minimum threshold. Incompliance with the electoral law in force, only the two main parties arerepresented in Parliament (363 seats for AKP and 178 for CHP), while nine seatsare held by independent representatives who exceeded the 10% threshold in theirconstituency during the 2002 elections. The Turkish military is granted a greatdeal of independence by the Constitution (it is redeemed from hierarchicaldependence by the Defense Minister) and plays the role of guarantor of the(secular) Turkish Republic. For Ankara, access to the EU is a major politicalpriority. Turkey has had a customs-union agreement with the EU in place since 1stJanuary 1996, and has been a candidate for membership since December 1999.Turkey is the only member of NATO with a Muslim population and enjoys a “militaryand strategic partnership" with both the USA and Israel.

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more pressing issues like the conflictin Iraq. Although both partiesinvolved have declared their desire toresume negotiations, and despiteTurkey’s and the EU’s will in thissense, this is not the time to try andsolve the Cyprus problem.

YASAR YAKIS Former TurkishMinistry ofForeign Affairsin Ankara

THE EU SHOULD NOT PLAYAT PASSING THE BUCK

CYPRUS: WE WILL LOOK FOR ASOLUTION REGARDLESS OF THEMEMBERSHIP PROCESS, BUT THEEU MUST LEND US A HAND. WEWILL IMPLEMENT REFORMS INANY CASE, FOR THE GOOD OFOUR COUNTRY. THE ISSUE OF AIRAND SEA TRAFFIC CONNECTIONS Some issues concerning Cyprus needto be looked at more closely. What isthe topic most discussed in Turkishforeign policy? Its entrance to theEuropean Union. How can Italy andTurkey cooperate in this process?Several opinions have emerged during

the debate in this Forum concerningthe Cyprus issue. The European Unionhas asked Turkey to recognize Cyprus.We gathered that the Government con-siders the island impasse more opti-mistically, while the opposition ismore pessimistic. Furthermore, theopposition and part of the Turkishpress believe the Government has con-ceded far too much to Europe.There is also the issue of the hub forports and airports: the EU has askedAnkara to open its airports and portsto traffic coming from the Greek partof the island.

IT IS UP TO THE TWO PARTIES TOFIND A SOLUTIONThe Turkish government has taken avery clear stand on the issue: inCyprus, it is the responsibility of therepresentatives of the two parties tofind a permanent solution. If no solu-tion is found, Turkey will not recognizeCyprus. This is a firm point for us.Why is that? Because recognizing itwould also mean no longer recognizingthe Turkish compatriots who live in thenorthern half of the island. No govern-ment in Turkey can take a stance otherthan this one. We were straightforwardwith our European friends and webelieve they understand us. 35 negoti-ating items are on the agenda for thejoining of Turkey to the European

Union but none of these will concernthe issue of Cyprus. The EUCommissioner Gunter Verheugen, incharge of enlargement, stated that theissue of Cyprus is not within theMaastricht or Copenhagen parameters.This remains an open issue though.How can it be tackled? We say thatTurkey must solve the problem ofCyprus. This obstacle must be over-come regardless of the EU entranceprocess, because Ankara will havepacific relations with its neighborsand do everything in its power to solvethe issue of Cyprus.

THE UNITED NATIONS PLAN ANDTHE 2004 REFERENDUMThe Secretary of the United Nations,Kofi Annan, prepared a plan and pro-posed a referendum, which took placein 2004, involving the entire popula-tion of the island. The EuropeanUnion asked Turkey to back Annan’splan and support it with the Turkishcommunity of Cyprus (see the boxhere below). The Turkish Governmentrather bravely followed EU indica-tions, seeing that Annan’s plan gavemany concessions to Europe and tothe Greek part of Cyprus.Despite the opposition from Turkishpublic opinion, it asked Turkish-Cypriots to answer yes to the referen-dum. Turks from Cyprus said yes to

2004 REFERENDUM ON CYPRUS

On 24 April 2004, the inhabitants of the island of Cyprus were called to take part in a referendum, in connection with the re-unification plan proposed by the Secretary General of the United Nations, Kofi Annan. However, Annan’s attempt failed: 64.9%of the Turkish-Cypriot community voted “yes”, while 34.1% voted “no”. However, 75.8% of Greek Cypriots voted “no” to there-unification, against 24.2% who voted “yes”. For Annan’s plan (also supported by the European Union) to have beenapproved, it should have been voted for by both communities living on the island. The most controversial points that led GreekCypriots to vote 'no' included: the issue of Greek refugees (according to the plan only 18% of them could have gone back totheir land) and the fact of having to keep 6,000 Turkish soldiers in place on the re-unified island.The Cyprus referendum took place a few days before the Union was enlarged to include 25 countries (1st May 2004), and thisin any case did not stop Cyprus from entering the EU; however, the country remains divided, and militarily occupied by Greekand Turkish soldiers and by 1,200 Blue Helmets along the “green line”.The northern part of the island is controlled by the Government of Ankara which is the only one in the world to recognize it asthe Turkish Republic of Northern Cyprus. The rest, accounting for 60% of the island, is controlled by Greek Cypriots, whosegovernment is recognized by the international community as the only legitimate representative of the entire Republic ofCyprus. The Greek-Cypriot authorities enjoy jurisdiction of the entire island de jure, but de facto only govern a part of it. TheCyprus conflict has been going on for many years now. The two ethnic groups tried to live together on the island (independentsince 1960) until 1974 when, following an attempted coup promoted by the military in power in Greece in those days, Turkeysent its troops to defend the Turkish-Cypriot community.

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the referendum, but were not accept-ed by the European Union; on theother hand, the Greek population,which answered no to the referendum,was accepted by the European Union.Cyprus was accepted in the EuropeanUnion without solving this problemand Brussels is now asking Ankara tosolve the Cyprus issue! This mightlook like a contradiction that discrim-inates against our country. We believeTurkey to be fully committed to solvingthis problem but the EU must lend usa hand.

THE OPPOSITION MAINTAINS THATTURKEY HAS CONCEDED TOOMUCH ALREADY.OUR PROPOSAL FOR CYPRUSPORTS AND AIRPORTSThis is the Government’s stance butobviously there are other positions.The CHP (the main opposition party),for example, believes that Turkey hasconceded too much and is convincedthat the European Union will notaccept Turkey.There is also the issue of Turkish air-ports and ports: the EU is asking us toopen them to Greek planes, and shipsfrom Cyprus. On this point, we madean alternative proposal: let us openour ports and airports to Greek shipsand planes from Cyprus; provided theEuropean Union makes sure that the

airports and ports of the Turkish partof Cyprus are opened too. This propos-al, made by our Foreign MinisterAbdullah Gul and backed by GreatBritain, is always valid. We are nowasking our Italian friends to support usalso on this point so that other EUmember states can accept it.

REFORMS: WE ARE GOING TO IMPLEMENT THEM ANYWAY,EVEN IF WE DO NOT MAKE IT INTO THE EUDuring the debates held within thisForum, an important questionemerged: Turkey will implement allthe reforms that are necessary to fullybecome an EU member state.However, after all reforms are done,referendums will be held in Europe;what happens if a country says no?The answer is that nothing will hap-pen. Reforms will be made for thegood of our country. Turkey must obeythe rule of law, must recognize therights of minorities and be an activedemocracy; these are all steps forwardthat must be taken regardless of theEuropean Union’s decision. This is ourstance on the technical-juridicalaspects related to joining the EU.There are political problems, too, andour position on them is different.Should Turkey make large concessionsto Cyprus and then not be accepted in

the EU, no Government would want tohave to explain this to the public. Wemust keep the technical aspects sepa-rate from the political ones.

RENATO RUGGIERO Former Minister ofForeign Affairs andChairman of theInternational AdvisoryBoard of UniCredit

SHOULD TURKEY CHANGE?SO SHOULD EUROPE

LET US NOT CONSIDER TODAY’SEUROPE (FACING A CRISIS).TURKEY MUST CHANGE BUT SOMUST THE EUROPEAN UNIONSeveral issues were reviewed in thisForum with regard to negotiations forTurkey’s EU membership. This is avery complex phase, with 35 negotia-tion items to be discussed. Many top-ics have already been highlighted. Iwould like to point out some issuesthat I believe to be of great interest,starting from the fact that Ankarawants to become a full member of theEuropean Union and not enjoy merelya privileged relation. It wants to beconsidered as a partner and not as acompetitor.

VOLUME OF INTERCHANGE WITH TURKEY (JAN.-SEPT. 2004)

Holland 2,5%China 3,0%

Spain 3,7%UK 6,1% 6,3% USA

6,4% France

6,6% Russia

7,1% Italy

13,4% Germany

6,8

4,6

Others 44,9%

100%= 115 billion USD

Total=11.4 billion USD

Export

Import

Machinery 40%Motors 9,5%Products

Motors 24,4%Machinery 14,6%Textiles 11,3%

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Another important aspect: the Turkshave stated: “We are working to enterinto the European Union by respectingall the obligations undertaken; we aredoing what we must, but we want toknow what is being done by the otherparty. What do we want to be part of?What Europe are we about to access?I think these are legitimate questions.But these are questions raised today,in light of what the EU has become atthe end of 2005, i.e. an enlargedcommunity with 25 member States forjust over a year and a half. It is thecommunity itself that is still trying tofind its identity and the direction itmust follow. We should not focusexcessively on this difficult momentthat Europe is now experiencing.Some have raised another issue con-cerning Turkey joining the EU. Turkeyis doing all that is necessary to jointhe EU. At the end of the process,however, referendums will be held toagree to or deny its access to the EU.A very unpleasant situation wouldensue if, after years of negotiations,one of the member states shouldobject to its EU membership. Theseare legitimate concerns that take intoaccount today’s situation, which islike a snapshot of current affairs. Ithink we should make an effortthough, and try and imagine a movie,a dynamic situation.

THE BRIDGE BETWEENCHRISTIANITY AND ISLAMThe entry of Turkey into the EU willrepresent a concrete example ofpeaceful co-existence between Islamand Christianity. Some pointed outthat, though this is a positive event,we should not forget that it is also ahistorical moment that European pub-lic opinion sees with some concern; anenlargement that takes the bordersclose to the Caucasus and one of themost unstable areas in the Asianchessboard. The military integration ofTurkey into the European Union hasalso been highlighted as a fundamen-tally positive element, since the EU,as part of its defense policy, has rec-ognized the need to collaborate withNATO, of which Turkey is a member.

THE PROSPECTS FOR NEGOTIATIONSome have also raised the time issueconcerning the entry of Ankara intothe EU. I think however that it wouldbe a mistake to consider the negotia-tion in light of what the EU is today,and the present relations between theEU and Turkey. We know that theEuropean Union is going through adifficult moment but we are talkingabout a time-frame that encompassesthe next eight years and many thingswill inevitably change during this timein the geo-political scenario, both inTurkey and in Europe. It is unimagin-able that the European Union willremain in the present crisis in the nexteight years. So, what is the real issue here? We areasking Turkey (and ourselves) to lookat the future with some optimism,with the awareness that what we aredoing is a difficult and revolutionaryoperation, a peaceful revolution. Sowe cannot expect this process to takeplace without encountering somestumbling blocks. We must under-stand that this is an extremely com-plex operation. If we want this processto be successful and for Turkey andthe European Union to change, weneed to be determined and proceed.

Women:A great challenge

GIOVANNAMELANDRI Former Ministerfor Heritage andCulture

EUROPEAN IDENTITYIS A STATE OF MIND

THE EXTENSION OF CIVIL, SOCIAL,AND POLITICAL RIGHTS… THEHIJAB AS A RELIGIOUS (ANDPOLITICAL) SYMBOL. TURKEY’STRAITS AND EUROPE’S CHAL-LENGETurkey’s looking to the West is noth-ing new. The country has been doingso ever since Ataturk, one of the lastcentury’s greatest State builders, setout on the road to secularization anddemocracy for the Turkish people. Ibelieve I’m right in thinking thatthere is general agreement on thefact that the role of women, theextension of their civil, social, andpolitical rights are fundamentalindices of the quality of a democracyand powerful factors in moderniza-tion. There is also wide agreementthat in recent years Turkey has madegreat progress in adopting a legalinfrastructure. I’m thinking in partic-ularly of the new Penal Code and ofthe modifications to the Civil Code,of the new rights in managing thelabour market. This is a considerableprocess of reform that is going handin hand with the updating and mod-ernization of the legal system of thisMediterranean country.

ITALY HAS NO “MODELS” TOOFFER TURKEYItaly observes these changes withadmiration, and certainly doesn’t tryto export best practices in many of

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these fields. We can start with thefact that Turkey gave women the rightto vote back in 1934, many yearsbefore their Italian counterparts wereallowed to vote. But let’s look at morerecent areas, such as the reform tothe Penal Code that has transformedsome hateful forms of violenceagainst women from crimes againstpublic morals into crimes against theperson. A similar change to theItalian Penal Code was made as lateas 1994. Furthermore, only 10% ofItalian deputies are women and inthat respect we’re last among the 25members of the EU. Significantchanges have made been in Turkey’slegal system. There are still seriousproblems to solve, and not onlyregarding the application of theseregulations. There is still a long wayto go in the definition of cultural,material and symbolic conditions andthis is an area where dialogue withour Turkish counterparts becomesrather complex. A number of peopleasked just where this divide lies, howto identify it, if it is a religious or eth-nic divide, or a social gap.

THE HIJAB, NOT JUST A RELI-GIOUS SYMBOLThere have been many answers to

this question. And of course it wasnatural that our debate should leadus to discuss the question of thehijab as a religious symbol. I wouldlike to say something on the subject:the hijab is as much a political as areligious symbol. A number of rea-sons have been put forward to explainthe spread of this phenomenon, andTurkish society in general is consider-ing to what extent the State’s secularnature is at stake. We should pointout that a certain kind of “priestlypressure” is making a comeback inItaly too, and I would say that thisrole of the clergy is being discussedin political and cultural circles acrossEurope, starting with reflection onEuropean identity.

HOW TO OBSERVE ONE’S RELI-GIOUS FAITH, WITHOUT EMBRAC-ING STATE CLERICALISM On this subject, I would like to men-tion an affirmation that I foundextremely interesting regarding theextent to which the State’s lay or sec-ular nature can be a force for unity,and just how a new confessionalismapplied to the laws of the land can infact be divisive. A number of peoplehave remarked that Turkish women,modern and secular, may sometimes

feel ejected from a religious contextwhen this is also the political con-text. The question is whether it ispossible to practise one’s faith with-out embracing State-defined religion.I feel very strongly about this subject,especially as regards the spread oftolerance and the recognition of civilrights in Italy. In the long process of joining the EU,Turkey will have to engage with anincreasingly diverse range of issues,in order to harmonize its legal, insti-tutional, economic, political and evencultural infrastructure. What is partic-ularly interesting is the rise of dynam-ic new women’s associations, militantwe might say, in Turkish civil society.

THE CHALLENGE FOR EUROPEMAKES TURKEY A “SPECIALCASE” Political processes will always beincomplete if women are notinvolved. And I believe there is animportant point to be made here: thegoal is not only Turkey’s membershipof the EU, its institutional and eco-nomic transformation is also a greatchallenge for Europe.And from this point of view, Turkey isperhaps a “special case”, thanks tothe challenge it poses for Europe. Itis also a “special case” because ofthe opportunity to include a greatdemocratic and great Islamic statewithin the institutional borders of theOld Continent. It is a “special case”because of the symbolic and culturaldimension involved. We can’t over-look the fact that for many people inEurope today there is a certain iden-tification between Turkey, Islam andfundamentalism. We can’t ignore thisissue. Turkey is a “special case”because European identity is notdefined as a religious, ethnic or cul-tural identity. Rather, to borrow aphrase from Simone Veil, Europeanidentity is “a state of mind”. And thisstate of mind embraces certainshared values geared towards toler-ance and inclusion, values which arerelated to a model of society in whichthe role, function and rights ofwomen are fundamental. O

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UMIT BOYNER President of theWoman’s FundProgram, execu-tive board memberof Tusiad

A SMALL REVOLUTIONIS NEEDED

A QUARTER OF THE FEMALE POP-ULATION IS NOW IN THE WORK-FORCE. THE NUMBER OF GIRLSGOING TO SCHOOL IS ON THEINCREASE. THE CIVIL AND PENALCODES HAVE BEEN REFORMED.BUT LAWS AREN’T ENOUGH…Let’s look at some of the figures con-cerning the role and problems ofwomen in Turkey. These are impor-tant aspects in the democratizationof the country and for its membershipof the EU. If we compare Italy’s andTurkey’s legal systems, we can see anumber of similarities. Our countryhas enacted a number of basicreforms, especially regarding thesafeguard of women’s rights. OurConstitution considers men andwomen to be equal, and it is theState’s duty to defend this equality. But the general situation for womenin our country does lag behind thesituation of women in Europe. Abouta quarter of Turkish women are partof the workforce and in recent yearsthe figure has risen from 23% to27%. Education is taking on anincreasingly central role for thenation in this period of transitionbetween rural development andurban growth. Since 1997 the per-centage of girls going to school hasrisen from 79% to 96%.

A WOMAN PRESIDENT OF THECONSTITUTIONAL COURTThere are still a number of obstaclesfor women in Turkey. In the previousParliament 16% of deputies werewomen. Today the figure has droppedto 4%. But there has been some verypositive news in recent months. Forthe first time ever in the history ofthe Republic of Turkey, a woman waselected as president of the

Constitutional Court. Public institu-tions are doing everything possible topromote more scope and rights forthe female population. However itwill take more than a few laws to dealwith the obstacles and problems thatlinger on today. Reforms can helpand even lead the way, but what wereally need is a little revolution. Inthe last five years the reforms madeto the two Codes (Civil and Penal)were achieved thanks to considerablepressure from women. Our expecta-tions of and commitment to this arearemain firm and we are continuing towork with the government to pushahead.

WOMEN AND ISLAMAnd of course there is the wide issueof Islam and women. To put thingsbriefly we can say this: Islam doesnot represent an obstacle to theprogress of women. But the sense ofdemocracy in Europe, in some cases,may not necessarily be in harmonywith perceptions in our country. Wecan see that the concept of secularsociety and freedom of thought doesexist in Turkey: everyone is free topractise his or her faith. This is evi-dence of democratization in Turkey, asecular republic. Women are takingpart in new debates and in this

respect Turkey could become a refer-ence point for other nations. A fun-damental step for the future will beto let others know about our progressand to engage in dialogue with othercountries. We need to make surethat, in the future, the business com-munity in Turkey continues to sup-port the government’s policy forreforms. And we need to create newopportunities for women.

ZEYNET KARAHNUSLU Leader of the Euro-Mediterranean dele-gation of the AnkaraParliament (AKP,majority party)

THANKS TO WOMEN,WE WILL BE A MODERN COUNTRY

A LOT HAS BEEN DONE: THE FAMI-LY, MOTHERHOOD ISSUES,BREASTFEEDING, NEW LEGISLA-TION AGAINST DOMESTIC VIO-LENCE, FAMILY COURTS… EQUALOPPORTUNITIES FOR PUBLIC SEC-TOR JOBS… In the last 100 years, women haveexpanded their role and presence insociety, and many steps forward have

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been taken. I believe that never beforein history have similar improvementsbeen made in women’s living condi-tions. The issue now affects the wholeplanet and the situation has changedin many parts of the world, althoughthe scope of new rights varies fromcountry to country. If we look at fig-ures from the UN InterparliamentaryUnion, we can see that the presenceof women in the world’s parliaments ison average 16%: compared with men,we are very poorly represented on aglobal scale. And if we look at the seri-ous problems afflicting the world,from famine, wars, lack of water, wecan see that once again women andchildren bear the brunt of the terribleconsequences.

THE UN AND HUMAN RIGHTSOn 29 August 2005, the UnitedNations summit produced a strongmessage of encouragement for newopportunities and equality for women.Secretary General Kofi Annan drew upa report on human rights and freedomthat declared that rights which in thepast had been words on paper had tobecome tangible, guaranteed free-doms. For example, the freedom notto be needy, not to live in fear, thefreedom to live. What does all this

mean? It means that nations will haveto create the frameworks to imple-ment these new freedoms. And wewill all have to do our bit to guaranteethem.

A CHANGE OF COURSE IN TURKEY IN THE 1920SIn Turkey radical change was achievedthanks to the Republic, promoted byMustapha Kemal Ataturk (“Father ofthe Turks”, see box), and the countrytook a great step forward. TheRepublic marked the beginning ofgreater equality between men andwomen, and a distinct break with thepast. The Civil Code was rewritten in1925 and women received the vote in1934. We are proud to have given vot-ing rights to women so soon.Since the 1990s many changes in leg-islation and legal reforms haveimproved living conditions for womenand families. And I’m not referringjust to the present legislature or gov-ernment. Turkey has had a new lawsafeguarding families since 1998.And alongside this law, legislation waspassed for the first time to protectwomen at risk from domestic violence.After that we enacted the new CivilCode which includes, among otherthings, the provision that a womancannot be married before the age of

eighteen and acknowledges women’sright to inherit. Nowadays a womancan work without asking her husband’spermission.

THE NEW PENAL CODEAND FAMILY COURTSWe enacted a new Penal Code whichwas inspired by principles in force inItaly (and here we are indebted topour neighbour). There was anincrease in the range of sanctionsand punishments for violence againstpersons. Up until a few years agotalking about sexual violence wasunthinkable in Turkey: it was simplytaboo. Now such violence is a crime.Another milestone was the creation of“family courts”. These institutions,present in every town and city, focuson these problems and have a net-work of assistants able to provideadvice to and guide women. Today inTurkey help is available to all womenfrom difficult backgrounds. Ofcourse, the reforms are not complete.However in many cities we havealready seen the creation of specialorganizations that we could call“women’s centres”.A lot has been done to supportwomen. And a lot has been done tohelp women work, because we haveto make sure that women have morescope in choosing which path theywant to take in our society. And herewe get into the delicate area of tryingto manage family, children and workall together.

FAMILY AND MOTHERHOOD: FURTHER AHEAD THAN EU STANDARDSThe new workplace legislation pro-vides for maternity leave. And here wehave reached standards which gobeyond the average allowances inother EU countries. Women who havejust given birth receive full salary for18 weeks, and there are breaks forbreastfeeding when women return towork. New legislation for Stateemployees has extended the period forbreastfeeding breaks from 9 to 16weeks. These are all measuresdesigned to encourage women to

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choose the world of work. And in thelong run we will doubtless reap thebenefits of these changes.We are also examining public sectoremployment issues, in light of equalopportunities for men and women.And we are making progress in educa-tion. A new campaign has been start-ed, promoting school for girls (looselytranslated, the name means “Come ongirls, let’s go to school”). Figures for

2004 and 2005 show that the cam-paign yielded some excellent results.We had noticed that many young andvery young girls never started school orstopped halfway through the schoolyear. Thanks to this campaign to raiseawareness, many of these girls havestarted going regularly to school again. The last figure concerns 165,000young girls who have started attendingschool. What does all this mean? It

means we are building a new futurefor women in Turkey, a country whichhas become a modern nation in partthanks to these new reforms. We havealready assimilated current Europeanregulations.But if we think about women in oursociety, if we think about real equali-ty, then there is still a long way to gobefore we make that equality a con-crete reality.

ATATURK’S SECULAR TURKEY

The emblematic figure in the secularization of Turkey is Mustapha KemalAtaturk (in the photo, an Ataturk’s portray hanging on the wall behind the primeminister Erdogan), the statesman who founded the Turkish Republic on theashes of the Ottoman Emperor in the wake of its defeat in the First World War.At the head of a nationalist movement, in 1920 Kemal moved the capital toAnkara and in 1922 deposed the sultan. Taking drastic measures, he began aone-party, secular dictatorship and reformed every aspect of the State. TheArab alphabet (unsuited to the Turkish tongue) was replaced with the Latinalphabet, the fez disappeared and the European calendar was adopted. Islamceased to be the state religion and Western-style legislation was introduced. In1934 women received the right to vote, while universal male suffrage had beenintroduced ten years earlier. The vestiges of feudalism were expunged from thecountryside. The Greeks, who had gained Thrace and Smyrna and had begunmaking inroads toward the interior in 1922, were routed, and the French wereforced to give up their positions in southern Anatolia. Kemal entrusted the Armywith the role of steward of the new Republic’s secular nature. He founded“Kemalism”, which became the ideological basis for the Turkish revolution andlater inspired the Constitution of the modern Republic of Turkey. Ataturk(“Father of the Turks”) was the surname the Revolutionary Parliament chose forKemal when the new law on family names was introduced, following innovationsin the legal system based on Switzerland’s Civil Code. He died in 1938.

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