GaWC Research Bulletin 53

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Globalisation and Development Strategies for Istanbul

A. Karaman and T. Baycan Levent*

Abstract

Cities greatly change by the advancement of science and technology; the intensification of global economic forces; the globalisation of production; the changing nature of wealth creation and the specialization and the division of knowledge. In this globalising world, capital concentrates in some certain cities called "world cities" or "global cities" which have a crucial role to organise the worldwide economy. In this process the role of cities shift from industrial production to knowledge-based development. It is being observed in last decades that this globalisation process is effecting Istanbul. The city with its geographical and strategic location, historical and cultural assets, dynamism and functional capacities it carries is in the process of transformation towards becoming a global city. The new developments modes are emerging in the areas of service sectors attracting global capital and investments. The impacts of these developments on the socio-economical and spatial aspects of the city are being analysed. The purpose of this paper is to put forward the potentials of Istanbul in depth as to be a global city and is to demonstrate the critical factors that are to be tackled with.


INTRODUCTION

Parallel to the globalisation process stemming from the developments in transportation, information, telecommunication and in the mode of productions a new economical system has emerged. As a result of these developments the world becomes smaller and the developments in distant places affect each other. The management and control of the new system is being done by the network of cities which according to Friedmann;

  • articulate larger regional, national and international economies, and they serve as centers through which flow money, workers, information, commodities and other economically relevant variables

  • function as a space of global accumulation that is a set of national and regional economies that serve the purposes of capital accumulation on a world wide scale

  • are large urbanised regions that are defined by dense patterns of interactions rather than by political and administrative boundaries

  • "can be arranged hierarchically, roughly in accord with the economical power they command"

  • "constitute a social class that has been called "the transnational capitalist class". Its culture is cosmopolitan (Friedmann, 1993).

The increasing share of the world's economy by multinational interactions made certain cities to become what termed as "world cities" or "global cities". In other word, through the globalisation, the movement of capital, people and information is continually expanded in geographical space and as result of this it has to enable and produce new spatial infrastructures such as airports, highways, informational networks, ports and institutions through which the capital is to circulate in a faster pace. According to Shachar; ".a world city as a large urban agglomeration specialising in international control capabilities, manifested spatially by three interrelated components: a management and financial centre of a global reach, a very high concentration of advanced producer services and an extremely rich physical and social infrastructure" (Shachar, 1994).

Multinational economic aspects of globalisation has led cities to be capable of independent. They are now seeking to identify their advantages, assets and power to compete with other cities. Competitiveness therefore is among the most critical factor against which cities are to identify their global role (Friedmann, 1986; Friedmann, 1993; Sassen, 1994; Shachar, 1994; van den Berg, Braun, van der Meer, 1996; Haila, 1997; Lever, Turok, 1999; Lever, 1999; Begg, 1999; van den Berg, Braun, 1999; Beaverstock, Taylor, Smith, 1999; Rogerson, 1999).

GLOBALISATION AND URBAN COMPETITIVENESS

Metropoles are the arenas of global interaction. They redefine the conditions and process of local and regional developments. They began to regenerate the infrastructural conditions of the global economy. They are becoming the critical of economic developments for national, regional and local planners and developers world wide.

The cities change their traditional role in economical domain to a system of metropolitan centered regional economies overpassing the municipal boundaries. As cities increasingly engage in global market, they find themselves to be competent enough with others in certain areas. That is to say competitiveness is an attribute of cities through which they get advantages against others, and through which they attract investments.

There seems to be no clear definition about the competitiveness. In the globalisation context there are various arguments about the concept of competitiveness. It is generally taken as the performance of an economy securing or defending market share. One view takes the competitiveness as dependence on the structure of the economy and on its sectoral specialisation as well as contextual condition such as the character and effectiveness of institutions, the quality and spread of infrastructure and other factors which influence the efficiency of national system as a whole. The others take it as "the ability to sustain change in the factors that give rise to productivity growth (technology, human resources, etc., but also the structure of economy and how policy seeks to shape it." (Begg, 1999).

All these approaches show that investment in human and physical capital is important aspect of competitiveness besides the institutional and organisational capacities. This implies that some cities perform better than other in so far as the competitiveness measures are concerned. Are there measures for competitiveness? If so, what they might implies for cities? Before establishing variables to help to clarify competitiveness in metropolitan areas, the following definition is accepted:

Urban competitiveness is "the degree to which cities can produce goods and services which meet the test of wider regional, national and international markets, while simultaneously increasing real incomes, improving the quality of life for citizens and promoting development in a manner which is sustainable" (Lever and Turok, 1999). This definition implies that cities, in order to be competitive, have to have attributes such as a skilled and educated labour force, efficient modern infrastructure, a responsive system of local governance, a flexible land and property market, high environmental standards, high quality of life.

This is to emphasize that for cities' competitiveness an effective local authority and efficient institutional governance are of importance. And yet, competitiveness requires better organisational performance. Competitive performance of a city can be measured by economical, organising capacity and locational measures (Figure 1).

The figure indicate the main axes against which cities' competitive capacity can be ranked, as prime, major and minor, in certain aspects. Those cities that perform all the variables of the model may fall into the rank of the prime, while the others may be the major or minor according to the significance of the indicators.

The competitiveness of cities reflects their capacity to engage with global capital, to perform an effective organisation and to provide spatially attractive amenities. In this paper the second aspect, the organising capacity is taken as major area of study to measure Istanbul's competitiveness for it needs to overcome as to be a world city. The organising capacity is defined as "ability to enlist all actors involved and with their help generate new ideas and implement a policy designed to respond to fundamental developments and create conditions for sustainable development" (van den Berg, Braun, van der Meer, 1996).

In the framework of the organising capacity, administrative organisation, strategic networks, leadership, spatial-economic conditions, vision and strategy are the critical variables in the performance of cities. These variables developed in the work of van den Berg et al. (1996) are recapitulated as following:

Administrative Organization; indicates the institutional framework and the role of actors involved in decision-making process. In this framework "co-operativeness" of the metropolitan municipality is the most crucial variable in the effectiveness or in the performance of administration and planning procedure. That is to say public and private actors that are involved in the projects require adequately functioning administration that is mediating the balance between the public interest and private development potentials.

Strategic Networks; are gaining importance in the performance of the cities. Since the governance is limited to the process of initiating, influencing and balancing the public and private sectors involved in the cities, in the view of the present day' developments and dynamics, staging patterns of interactions between mutually related interest groups that are evolved around policy and projects is important for the implementation phases. Defining strategies that will put public, semi-public, and private actors with common interest in the same projects is among the necessary conditions for a city's performance.

Leadership; on the hand is equally important in cities' performance. This indicate a key figure or organization has the competence to initiate the potentials of new and existing networks, to lead the projects that envolve with various parties.

Spatial-Economic Conditions; it is a fact that metropoles are areas of concentration of many human activities. They pose opportunities and threats to the spatial-economic conditions (Sassen, 1994). So, for the success of the metropolitan cities, the organization of the spatial-economical conditions and networks is important problem area. The problems call for the collaborations of parties involved. Specially social and political supports in solving problems are of importance.

Vision and Strategy; implies the integrities of all the urban policies put together in a metropolitan development plans. This includes strategies, clearly defined means and actors, implicit objectives. This is a necessity also for the sustainable development plans to prevent inconsistency and obstacles. Planning the metropolitan cities cover combination of factors which have tendency to function independently. It is therefore for a city to control its competitive performance needs to be installed with a network of knowledge and information to be available at every stage of development and to every actors involved. This also help to enhance the leadership and visionary aspects of the city. In next section Istanbul as to be a world city will be evaluated based on the city performance indicators as described on Figure 1.

COMPETITIVE POTENTIALS OF ISTANBUL

Istanbul is one of the largest metropolitan cities of the world. It is a fast growing city with a population of 9.057.747 (S.I.S., 1998). It is estimated that by the year of 2010 the population will reach up to 13.000.000 (Greater Istanbul Municipality, 1995). This indicate that the labour and the economical activities will be dispersed within metropolitan boundary which extends to nearly 100 km. posing threats and opportunities which will be explored later on.

The city has a history which streches back over 2600 years. It is a special city which stands upon two continents. The ancient city is located at the southeastern tip of Europe and the Asian part is located at the southwestern tip of the continent are separated by the Bosphorus. The Golden Horn divides the European part into two as the old imperal section known as the historical peninsula on the south bank and the port quarter of Galata on the north bank which in time expands and centered with Taksim business and cultural district. The modern city spreads far into upto Gebze on the Asian side and up to the Silivri on the Thracian plain of European side.

The development patterns of city show a linear form on the east and west direction. Ferry and railways that follow coast lines transporting people from suburban areas to centers and to new industrial zones and residential areas are among the reasons that effected its linear development through the years (Karaman, 1998).

The geopolitical location of the city is a critical one. Being on the connecting point between two continents of Europe and Asia make the city strategically advantageous in terms of global interactions. Its advantageous and status increasingly developed after the political changes in Eastern Europe. This changes opened opportunity to the city to function as not only as a transition nodes of economical exchanges from Asia to Europe or vice-versa, but also it gained a status toward being a world city due to external and internal dynamics. It is now being called as the capital "Euro-Asia". It serves as political, economical and social capital of this free market region. It is for instance the center of initiation of Black Sea Economical Co-Operation Association which includes Greece, Bulgaria, Romania, Moldavia, Ukraine, Russia, Georgia and Turkey, each has large economical and social relationship with European and Asian countries.

The competitive performance of the city differs in economical, in organising capacity and in locational measures.

As the largest metropolis of Turkey Istanbul carries most of the population and is to perform cultural, financial, commercial, industrial, tourism and service function simultaneously. As a result of this, major capital accumulation concentrates within the metropolitan areas. Gross Domestic Product (GDP) share of Istanbul is 21.26 percent of Turkey. While Gross Domestic Product Per Capita in Istanbul is 4286 USD, this rate is 2888 USD for Turkey in general (S.I.S., 1996). In the review of the sectoral division of GDP it is significant to note that Istanbul's shares in imputed bank service changes, financial institutions, business and personal services, trade and manufacturing are comparably higher than Turkey's share in general (see Table 1). The rates of imputed bank services with 53.27 %, financial institutions with 41 %, business and personal services with 40.16 % shares show that Istanbul far more higher in Turkey's averages. Its share with 30 % in manufacturing, trade and hotels, restaurants services also show the weight of Istanbul in Turkey. The distribution of GDP in sectors of industry with 30 % and in trade with 30 % making up 60 % total generated in Istanbul metropolitan area. The transportation, communication and imputed bank service sectors follow with 15 %. These figures show the role of Istanbul as effectively functioning metropolitan city.

The same performance can be observed in the attraction of foreign direct investments. There began an increasing foreign direct investments in Turkey with the liberalisation policies starting in 1980s. The numbers of firms were 78 in 1980. This number has reached to 1856 in 1990s and to 4950 in 1999. While the ceilings of the foreign investments was limited to 97 million dollars in 1980, this rate has reached to 1 billion dollars between the period of 1989-1998 (Table 2). It is expected that the movements of the foreign investments will be raised up to 7.6 billion dollars. This will stem from positive climate created by the privatisation policies, foreign investments of communications, energy and infrastructures. The rate of the sectoral division of international firms that are actively investing in Turkey are as follows; 56.70 % in manufacturing, 40.80 % in services, 1.48 % in agriculture and 0.3 % in mining. The

significant aspect of these rates is that the service sector's percentage increasing steadily between 1980-1999s. That is, it is raised to a rate of 30 % in 1999 from 8.5 % of 1980s. In the same period the manufacturing rate decreased from 91.5 % to 66 % (Table 3). The number of foreign firms activating in Istanbul is 20 %. As of 1990, 30 % of industrial firms and 70 % of service sectors active in Istanbul are of foreign capital (Table 4).

As the numbers in population, economical activities, socio-cultural treats reveal that Istanbul is full of potentials to be world city. With this capacities which are locally and internationally significant requires for a metropolis to be competent enough to tackle with opportunities and threats. In other word, it has to have organising capacity to help all economic flows are properly led, in time and space.

The following is an attempt to examine Istanbul's organising capacity in terms of indicators summarized in Figure 1. The analyses will be in reference to actual situation as well as to Metropolitan Area Development Plan's Vision.

Administrative Organisation: Istanbul is a metropol administrated with system of Greater Municipality under which districts municipalities function according to their limited power. The Greater municipality performs the duty of making, organising and implementing the master plans and of it of the metropolitan areas.

The city is highly urbanised and it accomodate 15 percent of the Turkey's population of 63 millions. Because of the agglomeration of local and international economies it produces 26 percent of the gross added values of the Turkish economy. All branches of economic activities are represented in the metropolitan areas or sub-region of Istanbul. The municipality help to organise these socio-economical potentials within the framework and policies described in the master plans proper. The metropolitan municipality favors co-operativeness between public and private sectors to implement the objectives of the development plans. This is clearly stated in the notes of master plans, in the target and in the policy statements. 16 targets and their policies put forwards means and actors which would carry the city's potentials to international relationships. Target 2 for instance states that "making Istanbul a center where governing and decision making mechanisms (all actors involved) gets together within the economic relations, that unifies with the economic structure of the world and regional countries (Middle East, Balkans, Asia and Europe) and that utilizes the regional opportunities" (Greater Istanbul Municipality, 1995). To realize this global economic target 5 policies developed. Number 1 states that "predicting the development of the primary centers of central business district, the investments and planning decision be directed accordingly" (Greater Istanbul Municipality, 1995). Target 3 also give importance to be world city potentials; "ensuring the growth and development of the metropolitan area in coherence with the national and regional progress in social, economic, cultural terms and increasing its influence and achieving the status deserved among the ranks of world metropolitan cities" (Greater Istanbul Municipality, 1995). The 5 item policy to support this target especially focuses on "encouraging the service sector in the whole Istanbul Metropolitan Area while ensuring decentralization of industry both country wide and regionally" (Greater Istanbul Municipality, 1995).

Strategic Networks: The Greater Municipality has certain power of staging the interaction between related interest groups that are involved in policy and projects in public and private domains. This capacity is demonstrated only at level of providing location and permission to the development in question as seen in the practices of free trade zones, private universities, olympic village, and the subway all under construction as of today.

Leadership: Competence of Istanbul reflects itself in different sector at various capacity. Istanbul Culture and Art Foundation for instance show high level of institutional leadership by organising the International Istanbul Festival for nearly 30 years which enhanced Istanbul competitive capacity in cultural domains. Union of Housing Cooperatives, Chamber of Commerce, Emlak Bank are among the institutions which initiated and implemented projects with various parties. Garden City is one of the new town realized within Istanbul by a consortium network of public and private co-operation. The Emlak Bank as the public part of the project are engaged to work together with 3 private partners including land owner, and two developers. The project was awarded among the best practices prices of HABITAT II, 1996 held in Istanbul. The new suburban developments serving to middle and high income groups may be given as good examples of projects which are realised with a network where the district municipality is public, union of cooperative is semi-public and cooperatives are private parties.

Spatial-Economic Conditions: Spatial-economic conditions of Istanbul as metropolitan city are highly competitive in regional, national and international scale. Being an economical bridge connecting to continents of Europe and Asia make its spatial location strategically important as stated in earlier pages in details. According to the roster of world cities developed in the work of Beaverstock et al. (1999) which is based on the construction of an inventory of world cities, Istanbul ranges between 55 world cities. This inventory of world cities based upon their level of advanced producer services and global service centers are identified and graded for accountancy, advertising, banking/finance and law. In other word, the global capacity of cities defined in terms of selected services they provide and evaluated at three levels as prime, major and minor global service centers. In the list of global advertising service centers Istanbul ranges between the major centers (Table 5) which are defined as "remaining cities with top 50 headquarters plus cities in which five, six or seven of the specific firms/groups studied have an important presence in the city". In the list of global banking service centers Istanbul ranges between the minor centers (Table 6) which are defined as "cities with scores of 2 to 4". In the list of global legal service centers Istanbul ranges between the minor centers (Table 7) which are defined as "the rest of the world (ROW), cities with at least two to four US/UK law branches: US/UK, cities housing two or three law firms with foreign branches".

On the other hand, some theoretical schemes drawn to show the interdependency hierarchy and priorities between European cities bring the attentions to their spatial-economical axial relationship naming them as Octopus or Bananas (Lever, 1999). According to Golden Banana Axis developed in late 1980s starts with Lisbon covering Madrid, Barcelona, Milano, etc. and ending with Athens. Considering the socio-economical conjonctures of Europe in 1990's that made the Central Asian market attractive put Istanbul's position forward. It therefore has to be liasoned to southeastern tip of the Grey Banana model as a new actor (Figure 2).

The master plan of the city give special emphasize on the allocation of all sectors to be distributed spatially meaningfull, economically integral with world economy and ecologically sustainable. In target 4 of the master plan it is aimed the city to be developing "...special strategies towards the improvement of the quality of life, make the necessary special arrangements within the estimated period and structure, guiding the investor bodies for the infrastructure investments towards this target and develop the necessary institutional management and financial proposals to realize the plans" (Greater Istanbul Municipality, 1995).

Among the policies to implement this target is the decentralization of the population and functions in the metropolitan areas and sub-regions through the attraction centers on both banks ensuring certain developments in these sub-centers. Maintaining the linear and multi-centered development trends.

The strategy of the decentralization has been going on since 1980s. The industries that have scattered in the central parts of the city over the years are being taken away forward to the east and western fringes of the city nearing Corlu-Buyukkaristiran and Cerkezkoy in the west where 80 large size industries have settled along E-5 highway. In the eastern part of the city small size industries have been moving out. Tanning, leather sector have moved to Kurtkoy and larger size sectors mostly metal and chemical industries move out to Gebze and Izmit along the E-5 highway (Karaman, 1998). All these industries are oriented to local and international markets (Figure 3).

Vision and Strategy: The decentralization policy, maintaining the linear development of the city's macroform for the sake of preserving the green zones on the north and putting into the value of the unique townscape, historical, natural and cultural identity while developing strategies to play a key role in the world market are to be the basic motives for the vision and strategy of Istanbul (Karaman, Baycan Levent, et al., 2000). Consideration of all these parameters in the generation of master plans and in the implementation of it help to integrate all the urban policies including means and actors. It is not easy to say that this is being done so as far as implementation phase of the plans are concerned. The city and institutional actors are sensitive enough to control the development according to master plan's visions. But, since there are combination of factors that have tendency to function independently that poses threats to the sustainability. The pressures of global capital are sometimes so demanding and so fast in choosing location of investment that contradicts with spatial economical visions. The location of shopping centers may pose threats to green zones on the north, the density of residential developments may contradict with earthquake zones or the location of high rise towers may compete with the unique siluet of the historical districts. The city now is being very careful about the consequences of the developments without clearly defined objectives, means, models and actors. Table 8 summarize the organising capacity of Istanbul in terms of actors' role.

CONCLUSIONS

Istanbul as a metropolis is performing cultural, financial, commercial, tourism and services functions simultaneously while the demands and pressures of global investments are trying to define its role mainly as service sector.

The city in fact alternatively developing transport system relying on sea, public buses, lightrailway, effective private minibus services, shared taxi, subway under construction, a highly developed telecommunication network, two modern airport, sea terminals, modern business districts, alternatively developed housing system realised by public, private investments serving to various income groups, research centers, universities, international trade exhibition centers, all of which act to strengthen to city's global competitiveness.

In order to maintain this capacity it has to pay more attention on strategically critical ssues such as:

  • By using regional opportunities (as a bridge in the Middle East, Balcans and Europe) it has to play pionering role.

  • World cities have multiple roles and functions within the global system. For the city the define its competent area is very crucial issue specially to planning strategies.

  • Istanbul has enough competence to use the knowledge as the most strategic element for the integration to global system provided that it has give more In order to be integrated to global metropolitan hierarchies Istanbul has to make restructuring in managerial, legal and technical issues. Within the provincial boundaries of Istanbul, the authority of provincial government, metropolitan, district, sub-district municipalities has been divided within their planning boundaries. This sometimes create problems in implementing plans and creating contradictions with local municipal policy. This is a problem area to be solved by clear definition of areas of authorities.

  • The current identity of the city is used to be national metropolis which is predominantly based on industries as main economical activities and as service center of Turkey. Due to influences of globalisation it began to performe as a center providing services to neighboring region. To be more effective in that it has to develop its strategic network by cooperating with local and international actors.

  • The needs to be installed with a network of knowledge and information to be available at every stage of development and to every actors involved to maintain sustainable and ecological capacity.

  • It has to develop a system of governance which is to perform the duty of mediation between public and private interaction.

  • Historical and cultural assets within historical peninsula in Pera district, Golden Horn, Bosphorus, Princess Islands, Marmara Sea, green and forest areas had to be preserved to meet the cultural, touristic and recreational needs. They have be used as delicate assets to highlight the quality of life of the metropolis.
  • To cope with the incoming pressures of immigration and to perform metropolitan function efficiently has to provide more infrastructural and social services

  • The strategy of decentralization the service oriented functions would be located between industrial buffer zones.

  • It has to change its single centered identity to polycentered one in order to perform its metropolitan function properly.

  • Where the classified functions, universities and technological parcs like electronics, bio-medical and chemical industries concentrated may perform as sub-centers.

  • New suburban development attracting middle and high income groups within the 60 km. of the city center may also function as service oriented sub-center.

  • It has to maintain its linear development pattern in order to protect the water reservoirs and forest treshold.

REFERENCES

Beaverstock, J.V., Taylor, P.J., Smith, R.G., (1999) "A roster of world cities", Cities, Vol. 16, No. 6, 445-458.

Begg, I., (1999) "Cities and Competitiveness", Urban Studies, Vol. 36, Nos 5-6, 795-809.

Friedmann, J., (1986) "The World City Hypothesis", Development and Change, Vol. 17, 69-83.

Friedmann, J., (1993) "Where we stand: a decade of world city research", paper prepared for the Conference on "World Cities in a World System" held in Stirling, Virginia, April 1993.

Greater Istanbul Municipality, (1995) Istanbul Metropolitan Area Sub-Region Master Plan by 1/50 000 Scale, Greater Istanbul Municipality, Planning and Zoning Control and Construction General Department, City Planning Directorate, Istanbul.

Haila, A., (1997) "The neglected builder of global cities", Cities in Transformation-Transformation in Cities: Social and Symbolic Change of Urban Space, Edited by Kalltorp, O., Elander, I., Ericsson, O., Franzen, M., Ashgate Publishing Limited.

Karaman, A., (1998) "Planning Istanbul: Changing Identity of a World Metropolis", Lecture text given at Hogeschool voor de Kunsten Utrecht, Workshop '98.

Karaman, A., Baycan Levent, T., et al., (2000) "Metropolitan Areas and Urbanization Strategies for Istanbul" in the 8th Five-Year Development Plan: Regional Development, Commission Report prepared for S.P.O., Ankara, Turkey, 141-177.

Lever, W.F., (1999) "Competitive Cities in Europe", Urban Studies, Vol. 36, Nos 5-6, 1029-1044.

Lever, W.F., Turok, I., (1999) "Competitive Cities: Introduction to the Review", Urban Studies, Vol. 36, Nos 5-6, 791-793.

Rogerson, R.J., (1999) "Quality of Life and City Competitiveness", Urban Studies, Vol. 36, Nos 5-6, 969-985.

Sassen, S., (1994) Cities in a World Economy, Pine Forge Press.

Shachar, A., (1994) "Randstad Holland: A 'World City'?", Urban Studies, Vol. 31, No. 3, 381-400.

S.I.S., (1996) Gross Domestic Product by District, 1996, S.I.S., Ankara.

S.I.S., (1998) Census of Population, 1997, State Institute of Statistics, Ankara.

Van den Berg, L., Braun, E., van der Meer, J., (1996) "Organising and Implementing Major Metropolitan Projects", European Regional Science Association 36th European Congress CD-ROM, ETH Zurich, Switzerland, 26-30 August 1996.

Van den Berg, L., Braun, E., (1999) "Urban Competitiveness, Marketing and the Need for Organising Capacity", Urban Studies, Vol. 31, Nos 5-6, 987-999.

 


NOTE

* Aykut Karaman (Mimar Sinan University, Department of Urban and Regional Planning, E-mail: karaman@msu.edu.tr) and Tüzin Baycan Levent (Istanbul Technical University, Department of Urban and Regional Planning, E-mail: baycan@arch.itu.edu.tr).


Table 1: GDP by Economic Activity (1996)

Economic activity

Istanbul

Turkey

Istanbul's share in Turkey (%)

GDP (in purchasers' value)

Sector share (%)

GDP (in purchasers' value)

Sector share (%)

1

 

Agriculture

31 426 341

1.00

2 489 773 564

16.85

1.26

 

A

Agriculture and livestock production

15 473 155

0.49

2 334 310 326

15.80

6.63

 

B

Forestry

2 224 555

0 07

82 853 417

0 56

2.68

 

C

Fishing

13 728 630

0 44

72 809 821

0 49

18.86

2

 

Industry

965 309 381

30 74

3.716 528 359

25.16

25.97

 

A

Mining and quarrying

7 116 378

0.23

183 079 658

1.24

3.89

 

B

Manufacturing

888 701 705

28.30

3 123 034 216

21.14

28.46

 

C

Electricity, gas, water

69 491 298

2.21

410 414 485

2.78

16.93

3

 

Construction

161 892 329

5.16

857 761 769

5.81

18.87

4

 

Trade

954 853 023

30.41

3 022 314 509

20.46

31.59

 

A

Wholesale and retail trade

816 559 848

26.00

2 538 823 823

17.19

32.16

 

B

Hotels, restaurants, services

138 293 175

4.40

483 490 686

3.27

28.60

5

 

Transportation and communication

490 199 902

15.61

1 941 574 197

13.14

25.25

6

 

Financial institutions

300 228 591

9.56

732 340 085

4.96

41.00

7

 

Ownership of dwelling

133 559 277

4.25

442 934 780

3.00

30.15

8

 

Business and personal services

222 523 319

7.09

554 079 623

3.75

40.16

9

 

Imputed bank service changes

377 842 879

12.03

709 234 737

4.80

53.27

10

 

Sectoral total (1-9)

2 882 149 284

91.79

13 048 072 129

88.33

22.09

11

 

Government services

147 117 673

4.69

1 238 527 311

8.38

11.88

12

 

Private non-profit institutions

12 518 368

0.40

26 922 359

0.18

46.49

13

 

Total (10+11+12)

3 041 785 325

96.87

14 313 521 799

96.90

21.25

14

 

Import duties

98 235 917

3.13

458 588 390

3.10

21.42

15

 

GDP in purchasers' value (13+14)

3 140 021 242

100.00

14 772 110 189

100.00

21.26

Source: State Institute of Statistics (1996)

 

Table 2: Foreign Direct Investments Inflows to Turkey (1980-2000)

FDI INFLOWS TO TURKEY

 

AUTHORIZED FDI

TOTAL AMOUNT OF INV. AT

NO. OF FOREIGN

TOTAL CAPITAL OF FOREIGN

REALIZATIONS

YEARS

(MILLION US $)

INV. PERMISSIONS (BILLION TL)

CAPITAL FIRMS

CAPITAL FIRMS

(BILLION TL)

(MILLION US $)

1980

97.00

76.87

78

28,390

35

1981

330.51

72.16

109

47,400

141

1982

160.00

218.14

147

100,196

103

1983

98.74

199.22

166

147,109

87

1984

241.36

312.28

235

254,775

162

1985

214.49

1,168.16

408

464,981

158

1986

363.00

3,099.74

619

707,164

170

1987

655.24

3,179.53

836

960,035

239

1988

820.52

5,468.27

1,172

1,597,103

488

1989

1,511.94

9,507.35

1,525

4,847,832

855

1990

1,861.16

18,249.28

1,856

7,943,775

1005

1991

1,967.26

15,893.98

2,123

13,101,036

1041

1992

1,819.96

17,976.36

2,330

23,441,214

1242

1993

2,125.00

70,136.27

2,554

36,737,050

1016

1994

1,485.61

37,202.36

2,830

62,449,964

830

1995

2,938.32

328,447.82

3,161

113,013,790

1127

1996

3,836.97

1,250,652.13

3,582

235,971,182

964

1997

1,678.20

624,461.10

4,068

458,968,459

1032

1998

1,645.02

1,016,653.54

4,533

823,560,554

976

1999

1,690.07

1,599,520.36

4,950

1,446,503

817

2000*

521.22

913,456.39

5,024

1,753,476

 

TOTAL

26,061.59

5,915,951

---

---

12,488

(*) As of March

 

 

 

Source: Undersecreteriat of Treasury (2000)

 

Table 3: Sectoral Breakdown of Authorized Foreign Direct Investments (1980-2000)

SECTORAL BREAKDOWN OF AUTHORIZED F.D.I.

(Million USD $)

YEARS

MANUFAC.

%

AGRICUL.

%

MINING

%

SERVICES

%

TOTAL

REALIZATION

1980

88.76

%91.51

0.00

%0.00

0.00

%0.00

8.24

%8.49

97.00

35

1981

246.54

%73.05

0.86

%0.25

0.98

%0.29

89.13

%26.41

337.51

141

1982

98.54

%59.01

1.06

%0.63

1.97

%1.18

65.43

%39.18

167.00

103

1983

88.93

%86.56

0.03

%0.03

0.02

%0.02

13.76

%13.39

102.74

87

1984

185.92

%68.51

5.93

%2.19

0.25

%0.09

79.26

%29.21

271.36

162

1985

142.89

%60.94

6.37

%2.72

4.26

%1.82

80.97

%34.53

234.49

158

1986

193.47

%53.15

16.86

%4.63

0.86

%0.24

152.81

%41.98

364.00

170

1987

293.91

%44.86

13.00

%1.98

1.25

%0.19

347.08

%52.97

655.24

239

1988

490.68

%59.80

27.35

%3.33

5.62

%0.68

296.87

%36.18

820.52

488

1989

950.13

%62.84

9.36

%0.62

11.86

%0.78

540.59

%35.75

1,511.94

855

1990

1214.06

%65.23

65.56

%3.52

47.09

%2.53

534.45

%28.72

1,861.16

1,005

1991

1095.48

%55.69

22.41

%1.14

39.82

%2.02

809.55

%41.15

1,967.26

1,041

1992

1274.28

%70.02

33.59

%1.85

18.96

%1.04

493.13

%27.10

1,819.96

1,242

1993

1568.59

%76.02

21.05

%1.02

11.37

%0.55

462.38

%22.41

2,063.39

1,016

1994

1107.29

%74.94

28.27

%1.91

6.20

%0.42

335.85

%22.73

1,477.61

830

1995

1,996.48

%67.95

31.74

%1.08

60.62

%2.06

849.48

%28.91

2,938.32

1,127

1996

640.59

%16.70

64.10

%1.67

8.54

%0.22

3,123.74

%81.41

3,836.97

964

1997

871.81

%51.95

12.22

%0.73

26.70

%1.59

767.48

%45.73

1,678.21

1032

1998

1,016.29

%61.76

5.75

%0.35

13.73

%0.83

609.67

%37.05

1,645.44

976

1999

1,116.22

%66.05

16.69

%0.99

6.76

%0.40

550.40

%32.57

1,690.07

817

2000*

95.02

%18.23

3.02

%0.58

0.39

%0.07

422.79

%81.12

521.22

 

TOTAL

14,775.88

%56.70

385.22

%1.48

267.25

%1.03

10,633.06

%40.80

26,061.41

12,488

* As of March

           

Source: Undersecreteriat of Treasury (2000)

 

Table 4: Sectoral Distribution of Foreign Capital Companies Operating in Istanbul (1980-1998)

Years

No.of firms

in Turkey (cumulative)

No.of firms

in Istanbul (cumulative)

Share of Istanbul in Turkey

(%)

No.of firms

in Istanbul

Agriculture

%

Industry

%

Mining

%

Services

%

1980

78

20

26

1

-

-

-

-

-

-

1

100

1981

109

23

21

3

-

-

1

33

-

-

2

67

1982

147

26

18

3

-

-

2

67

-

-

1

33

1983

166

29

17

3

-

-

1

33

-

-

2

67

1984

235

40

17

11

-

-

8

73

-

-

3

27

1985

408

81

20

41

-

-

11

27

-

-

30

73

1986

619

113

18

32

1

3

6

19

-

-

25

78

1987

836

155

19

42

1

2

7

17

-

-

34

81

1988

1172

206

18

51

-

-

18

35

-

-

33

65

1989

1525

269

18

63

-

-

17

27

-

-

46

73

1990

1856

329

18

60

1

2

17

28

-

-

42

70

1991

2123

405

19

76

1

1

25

33

1

1

49

65

1992

2330

459

20

54

1

2

15

28

-

-

38

70

1993

2554

516

20

57

-

-

12

21

-

-

45

79

1994

2830

589

21

73

1

1

20

28

-

-

52

71

1995

3161

661

21

72

1

1

18

25

2

3

51

71

1996

3582

749

21

88

2

2

24

27

3

4

59

67

1997

4068

853

21

104

-

-

27

26

1

1

76

73

1998

4533

949

21

96

-

-

28

29

-

-

68

71

 

Table 5: Global Advertising Service Centers

Prime

Major

Minor

Chicago

Amsterdam

Auckland

London

Athens

Bangalore

Minneapolis

Barcelona

Bangkok

New York

Boston

Beijing

Osaka

Brussels

Bogota

Paris

Caracas

Bucharest

Seoul

Copenhagen

Budapest

Tokyo

Dusseldorf

Buenos Aires

 

Frankfurt

Cape Town

 

Helsinki

Dallas

 

Hong Kong

Detroit

 

Istanbul

Dublin

 

Lisbon

Geneva

 

Los Angeles

Hamburg

 

Madrid

Jakarta

 

Melbourne

Johannesburg

 

Mexico City

Kuala Lumpur

 

Milan

Lima

 

Prague

Manila

 

San Francisco

Miami

 

Santiago

Montevideo

 

Sao Paulo

Montreal

 

Singapore

Moscow

 

Stockholm

Mumbai

 

Sydney

New Delhi

 

Toronto

Oslo

 

Vienna

Rio de Janeiro

 

Zurich

Taipei

   

Tel Aviv

   

Warsaw

   

Wellington

Source: Beaverstock, Taylor and Smith, 1999.


Table 6: Global Banking Service Centers

Prime

Major

Minor

Frankfurt

Bangkok

Abu Dhabi

Hong Kong

Beijing

Amsterdam

London

Bogota

Barcelona

Milan

Buenos Aires

Boston

New York

Caracas

Bratislava

Paris

Geneva

Brussels

San Francisco

Houston

Budapest

Singapore

Jakarta

Cairo

Tokyo

Johannesburg

Chicago

Zurich

Kuala Lumpur

Colombo

 

Labuan

Dallas

 

Los Angeles

Dubai

 

Luxembourg

Dublin

 

Madrid

Edinburgh

 

Manama

Glasgow

 

Manila

Istanbul

 

Mexico City

Lima

 

Miami

Lisbon

 

Montreal

Lyon

 

Moscow

Melbourne

 

Mumbai

Montevideo

 

Prague

Munich

 

Sao Paulo

New Delhi

 

Santiago

Osaka

 

Seoul

Rio de Janeiro

 

Shanghai

Rome

 

Sydney

Tehran

 

Taipei

Vienna

 

Toronto

 

Source: Beaverstock, Taylor and Smith, 1999.

 

Table 7: Global Legal Service Centers

Prime

Major

Minor

Brussels

Almaty

Abu Dhabi

Chicago

Bangkok

Amsterdam

Hong Kong

Beijing

Athens

London

Berlin

Atlanta

Los Angeles

Budapest

Barcelona

Moscow

Cleveland

Boston

New York

Dallas

Bogota

Paris

Frankfurt

Bratislava

Singapore

Geneva

Brazilia

Tokyo

Ho Chi Minh

Buenos Aires

Washington

Houston

Bucharest

 

Kiev

Cairo

 

Madrid

Caracas

 

Mexico City

Dubai

 

Milan

Dusseldorf

 

Minneapolis

Guangzhou

 

Prague

Hamburg

 

Riyad

Hanoi

 

Rome

Istanbul

 

San Francisco

Jakarta

 

Sao Paulo

Kansas City

 

Seattle

Madrid

 

Shanghai

Manila

 

Sydney

Melbourne

 

Toronto

Munich

 

Warsaw

Philadelphia

 

Zurich

Richmond

   

Rio de Janeiro

   

St Petersburg

   

Santiago

   

Stockholm

   

Taipei

   

Tashkent

   

Tijiana

Source: Beaverstock, Taylor and Smith, 1999.


Table 8: A Summary of Organizing Capacity and Its Actors in Istanbul
 

Actors

Organising

Capacity

Central

Government

Provincial Government

Metropolitan Municipality

District

Municipality

Sub-District Municipality

Administrative

Organization

Makes policy framework

Implement policies with its own boundary

Responsible organising and implementing policies and plans within master plan boundaries

Responsible to implement plans framed by metropolitan municipality

Has the power to prepare and implement its own master plans

Strategic

Networks

Generate policies

Mediate actors in managerial level

Mediates actors through master plans

Less initiatives

Initiate through land use plans

Leadership

Dependent upon the vision political parties

Play staging role of policies

Dependent upon the vision of institutional framework

Dependent upon personal capacity

Has initiative dependent upon mayors personality

Spatial-Economic

Condition

Generate policies at the national level

Mediate with central and local government

Has the power to organize with plans

Has no power

Has power for locational choices

Vision and

Strategy

Initiate the potentials through policies

Has the power within its legal boundaries

Has the power and capacity

Has less initiative

Has the freedom to generate but less capacity

 


Figure 1: City Performance Indicators 

 

Figure 2: Istanbul's Strategic Location in 'Red Octopus' (adopted and modified from Lever (1999)) 

 

Figure 3: Specialized Cities and Centers of Attractions (adopted and modified from Greater Istanbul Municipality, 1995) 


Edited and posted on the web on 30th August 2001