Id dt turkey feature 2013 part 2

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In association with the UK’s biggest selling quality newspaper - The Daily Telegraph iD presents

Symbols of Turkish Excellence in the World Part II

The nation has seen great democratic and economic changes - but there is still a long way to go. Discover how its people and enterprises are driving the country forward in this digital version of the 6-page special as published inside The Daily Telegraph on 12 July 2013.

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1C@ RJH@I RCJ C<Q@ C<? IDI@ <=JMODJIN By Laura Donnelly Health Correspondent

C<I>@GGJM N<TN =JJFN ><I =@ =<G<I>@? RDOC HJM@ >PON DI NK@I?DIB <I? R@GA<M@ THE Conservative Party will not introduce any tax rises if it wins the next election, George Osborne has signalled. Moving to dampen speculation that new tax rises were being planned secretly, the Chancellor said that Conservative proposals instead involved further spending and welfare cuts. Mr Osborne, for the first time, outlined the tax arguments that his party will put forward at the election in 2015. The commitment is a clear attempt to differentiate the Tories from the Liberal Democrats and Labour who have not ruled out tax increases after the election. Mr Osborne also said he would unveil plans for a tax break for married couples later this year, but he declined to say when it would be introduced. The comments come after the Institute for Fiscal Studies warned that millions of middle-class workers face stealth income tax rises of ÂŁ600 each after the next election to fill a ÂŁ25billion hole in the Government’s finances. The economists said that the Government could have to raise ÂŁ10billion from such increases because of the difficulty in finding deeper reductions on top of the ÂŁ11.5billion cuts announced in last month’s 2015-16 spending round. Speaking at a lunch organised by the Parliamentary Press Gallery, Mr Osborne said that the cuts already set out in March’s Budget meant that he would not have to bring in more taxes to balance the books. The Chancellor said “the path of fiscal consolidationâ€? could be completed through cuts in expenditure by the Gov-

ernment. “That is my Budget book and I stand by it and I think this can be delivered through spending and savings both in welfare and in departments, and there is no need for tax rises to contribute to that fiscal consolidation,� he said. Mr Osborne added that it was up to both Labour and the Liberal Democrats “to explain, therefore, what taxes they might put up�. The possible introduction of a transferable tax allowance between married couples moved a step forward when Mr Osborne said he would announce plans in this year’s Autumn Statement. David Cameron has come under pressure from Conservative back benchers to fulfil an election promise to offer the tax breaks, and last month said an announcement could be expected “very shortly�. There was speculation that he was being held back not only by opposition from the Liberal Democrats — who secured a provision in the Coalition Agreement allowing them to abstain on the issue — but by a lack of enthusiasm from the Chancellor. Mr Osborne insisted that he was personally committed to the tax break. “David Cameron campaigned to be leader on that promise and I was his campaign manager,� he said. “I am absolutely committed to introducing it, the Government is committed to introducing it and I think you can expect to see it in the Autumn Statement.� A senior government source has briefed The Daily Telegraph that the most likely date for its introduction is April 2015, which would be in the middle of the general election campaign. Asked if the plan would be introduced Continued on Page 2

Jessica Fitch and Bertie Bear met the Queen yesterday at the Coronation Festival in the gardens of Buckingham Palace. The seven-year-old, from Cheltenham, Glos, also persuaded the Prince of Wales and Duchess of Cornwall to pose with her Page 3

By Steve Hawkes Consumer Affairs Editor

ICE cream van drivers have won a victory in their battle for survival, after being told that they can play their chimes for longer. The Government yesterday said it would relax rules so that vans’ jingles can ring out for up to 12 secISSN 0307-1235

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onds at a time, as opposed to the current four. The move came despite fierce opposition from the Noise Abatement Society and will help a flagging industry. Unfortunately, the new rules will not take effect until the autumn, meaning that through the summer heatwave sellers will have to get by with short, sharp blasts of Greensleeves or The Happy Wanderer. There are currently just 500 mobile ice cream vans plying their trade on the streets of Britain, down from a quarter of a million in the Seventies. Some councils have banned them on obesity grounds, while others

are forcing drivers to change their vans every five years to help reduce carbon emissions. The government shake-up — which it says will reduce red tape — is the first change to the “Code of Practice on Noise from Ice-Cream Van Chimes� since 1982. Ice cream vans will still be banned from playing their chimes after 7pm, when a rival vehicle is trading, or within 50 metres of schools, hospitals and places of worship. They will also have to keep the chimes lower than 80 decibels and cannot sound them more than once every two hours in the same street. Sales melt: Page 3

MORE than one in three abortions carried out last year was on a woman who had previously had the procedure, official figures show. The statistics for last year disclosed that dozens of women had undergone at least nine terminations. The figures show that a record 37 per cent of all abortions in England and Wales last year were repeat procedures. More than 4,500 women had had at least four abortions, 1,334 were on at least their fifth and 33 women had nine or more terminations. Anti-abortion campaigners said last night that the rise in repeat terminations was “a tragedy�. The figures raised fears that the procedure was being used as a form of contraception, they said. The Department of Health figures show the total number of abortions fell slightly last year, by 2.5 per cent, with a total of 185,122 carried out. Of those, more than 66,000 were repeat abortions, compared with 54,603 a decade earlier. The figures also disclose a sharp rise in the number of pregnancies aborted because of disability, with a 17 per cent rise in such cases in a year, to 2,308 last year. Abortion agencies said the rise might reflect advances in foetal screening detecting abnormalities sooner. However, pro-life campaigners said they were “deeply concerned� by the trend. The statistics show that the number of abortions among teenagers fell sharply, with 12,783 among those under 18, compared with 14,599 the previous year. However, the number among women in their 40s rose to a record 8,426 cases last year – up 20 per cent in a decade. While the number of single women having abortions rose slightly since 2002, the figures show a tripling in the number among women with partners. More than 86,000 women with a partner had abortions last year – almost half the total number of terminations. Ann Furedi, chief executive of the British Pregnancy Advisory Service, said the figures on women with repeat abortions could be misleading. Often they were responding to different circumstances from an unwanted pregnancy as a teenager to an unexpected pregnancy in their 40s. She said many agencies treated women from eastern Europe, “where abortion is seen as a method of birth control�.

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By Chris Irvine and Tom Parfitt in Moscow

‘This is not the time to put up our pay. We should wait till the whole country’s distracted by Kate’s baby’ MPs’ pay backlash: Page 4 Editorial Comment: Page 21

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THE Kremlin is returning to typewriters in an attempt to avoid damaging leaks from computers, it has been claimed. A source at Russia’s Federal Guard Service (FSO), which is in charge of safeguarding Kremlin communications and protecting President Vladimir Putin, claimed that the return to typewriters has been prompted by the publication of secret documents by WikiLeaks, the whistleblowing website, as well as Edward Snowden, the fugitive US intelligence contractor. The FSO is looking to spend

486,000 roubles – around ÂŁ10,000 – on a number of electric typewriters, according to the site of the state procurement agency, Zakupki. An FSO source told Izvestiya newspaper: “After scandals with the distribution of secret documents by WikiLeaks, the exposĂŠs by Edward Snowden, and reports about Dmitry Medvedev being listened in on during his visit to the G20 summit in London, it has been decided to expand the practice of creating paper documents.â€? Directives to the defence minister and Mr Putin, are still printed on paper, a defence ministry source said. Nikolai Kovalev, the former direc-

tor of Russia’s Federal Security Service, told Izvestiya: “From the point of view of security, any means of electronic communication is vulnerable. “You can remove any information from a computer. “There are means of defence, of course, but there’s no 100 per cent guarantee they will work. “So from the point of view of preserving secrets the most primitive methods are preferable: a person’s hand and a pen, or a typewriter.� However, another expert said that paper documents were still unreliable because they could be stolen or photographed, or could go up in smoke in case of a fire.

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Symbols of Turkish Excellence in the World

UK stocks advanced to a five-week high after the Fed chairman Ben Bernanke said the bank’s monetary policy would support growth for the forseeable future. MARKET REPORT B7 >>

DALTON Philips, the chief executive of Wm Morrison Supermarkets, has pledged to put the food retailer on a “level playing field� with its rivals within two years by opening more convenience stores and modernising its technology. In an impassioned defence of his strategy, Mr Philips said Morrisons

was “five even 10 years behind� its rivals when he arrived in 2010, but now plans to aggressively expand its convenience store and online businesses to catch up. Morrisons is likely to have 300 convenience stores around the UK by 2015, Mr Philips confirmed at a strategy briefing in London. The retailer has just 20 M Local convenience stores at present, but plans to have 100 by the end of the

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0OMPBBGDIB 1CDM? JA NCJKK@MN [I@<M =<IFMPKO>T\ A THIRD of Morrisons customers are “one pay cheque away from bankruptcy�, Dalton Philips has said. Speaking on Sky News last night, Mr Philips played down hopes the UK

economy was recovering, warning that Morrisons customers – totalling 9m a week – have been “scarred� by events of the past few years. He said: “It’s been very difficult. We’ve got a pound that is

decreasing in value, that will put pressure on fuel, which means the household budget will get hit again. We’ve got a third of our customers one pay cheque away from bankruptcy.�

pen and paper to order stock. However, tablet devices are now being given to supermarket assistants to order stock. “When completed, our business and stores will go from having the worst systems to the best, leapfrogging a generation,� said Mr Philips, who called the plan a “radical evolution�. The scale of

year by opening at least two a week. It is also expanding into online retailing through a tie-up with Ocado, which is costing the company more than ÂŁ200m and lasts for 25 years. In addition, Mr Philips said the Bradford-based company was spending ÂŁ300m to modernise technology that was “firmly stuck in the 20th centuryâ€?. At present, staff count cash by hand and use a

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By Malcolm Moore in Beijing and Denise Roland

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G4S is facing a criminal investigation after it billed the taxpayer millions of pounds to electronically tag criminals who had died, left the country or gone back to jail. Chris Grayling, the Justice Secretary, has called in the Serious Fraud Office after it emerged G4S and rival security firm Serco overcharged the government by tens of millions for non-existent tags. Ministry of Justice sources said that although they typically had 15,000 offenders on a tag at any one time — after being released from prison or put on a community order — G4S and Serco had been charging them for 18,000, meaning one in six cases was spurious. Mr Grayling said that so far there was no evidence the firms had acted criminally. The new scandal involving G4S — widely criticised for its failure to fulfil security requirements at the London 2012 Olympics — saw ÂŁ180m wiped off the company’s market value as shares closed down 5.6pc at 213p. Mr Grayling told MPs that G4S had refused to co-operate with an investigation into the “wholly indefensibleâ€? billing errors, leading to him calling in the SFO. Serco is not facing an SFO inquiry because it had agreed to allow auditors access to its files, as well as pulling out of current tendering competitions, the minister said. However, its shares fell 8pc to 626½p, wiping ÂŁ270m from the company’s market value. It also emerged that Ministry of Justice civil servants face disciplinary action as five years ago they

failed to act on information which may have identified the scandal. Mr Grayling told MPs: “I am angry at what has happened and am determined to put it right ... this is a wholly indefensible and unacceptable state of affairs.â€? Overcharging for tagging began at least eight years ago and possibly dates back to 1999, he added. G4S and Serco have been barred from applying for any more government contracts until the completion of a series of reviews announced by Mr Grayling. The Cabinet Office will also scrutinise all existing contracts the companies hold in Whitehall. The full scale of the tagging scandal came to light after Mr Grayling brought in external auditors on May 17 after an internal review unearthed what he described as a “significant anomalyâ€?. The chief executive of G4S, Nick Buckles, resigned his ÂŁ1.2m-a-year post on May 20. He had been criticised by MPs for “making it up as he went alongâ€? in the run-up to the Olympics. Mr Grayling said: “I should state that I have no information to confirm that dishonesty has taken place on the part of either supplier. But I am asking the Serious Fraud Office to consider whether an investigation is appropriate into what happened in G4S, and to confirm to me whether any of the actions of anyone in that company represent more than a contractual breach.â€? Ashley Almanza, Mr Buckles’ successor, said: “We are determined to deal with these issues in a prompt and appropriate manner.â€? Fast Retailing, the owner of the Uniqlo A Serco spokesman said the com- clothing brand that sponsors beaten pany would repay any amount Wimbledon finalist Novak Djokovic, is agreed with the government. more than doubling its US presence

with 10 new stores, after reporting a 22pc jump in net profit over the first three quarters. Japan-based Fast booked net profits of 88.4bn yen

(ÂŁ591m) in the nine months to May. Operating profit rose 4pc to 124bn yen on sales of 885.8bn yen, an increase of 19.1pc.

GLAXOSMITHKLINE has come under attack in China where authorities say the company’s employees have “confessed� to charges of bribery and tax law violations. Executives at Britain’s biggest pharmaceuticals company stand accused by the Chinese government of “serious economic crimes� by allegedly offering bribes to government officials, doctors and others to clinch drug sales and higher prices. The company is also suspected of using fake receipts in breach of Chinese tax laws. “There are many suspects, the illegal behaviour continued over a long time and its scale is huge,� the ministry said, adding: “Following initial questioning, the suspects have confessed.� The investigation, which was personally ordered by one of China’s most powerful politicians, poses a serious threat to the future of GSK’s business in China. At least 30 GSK employees, including five or six executives, are currently under house arrest and constant surveillance, according to one source familiar with the situation. Among these is the company’s legal counsel in China, who has been cut off from communication with the company’s head office. “They cannot defend themselves,� the source said. At least one British national is involved and is being given consular assistance, according to the Foreign Office. Late last night in China, GSK was locked in emergency meetings with its advisers over the situation. Meanwhile, back at Glaxo’s British headquarters, officials were left in a state of confusion over developments in China. A spokesman for the company said yesterday’s statement was “the first official communication GSK has received� from the Chinese authorities in relation to the investigation. She added that the company had found “no evidence of bribery or corruption of doctors or government officials�, but that it would co-operate with the Chinese Continued on B5

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The Dow closed in positive territory as investors heaved a sigh of relief to hear that Ben Bernanke was backing continued monetary stimulus.

FULL LISTING B7 >>

FULL LISTING B7 >>

,+)&+" <I OC@ /JT<G *<DG KMDQ<ODN<ODJI ?@GDQ@M BJJ? M@OPMIN telegraph.co.uk/ personalfinance

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GEORGE OSBORNE has defended his controversial Help to Buy mortgage scheme by claiming Sir Mervyn King endorsed it before stepping down as Bank of England Governor. Rounding on critics of the subsidised loan plan, the Chancellor insisted to the Treasury Select Committee

that Help to Buy would not cause a house price bubble and that it was already helping the economy. Mr Osborne claimed he held “lengthy discussions� before the March Budget with Sir Mervyn, who never objected to the proposal. “He has been supportive, including in this respect, of things we are doing to repair the broken financial

ÂŁ3.5bn Amount of shared equity loans committed by the Treasury to housebuyers in Help to Buy

transmission system. If he had said, ‘I strongly object to this scheme’, that probably would have killed it,� the

Chancellor said. The claim that the former Bank of England Governor was a backer of the plan comes as a surprise following his apparent earlier criticism. “This scheme is a little too close for comfort to a general scheme to guarantee mortgages,� Sir Mervyn said in May. Under the plan, the Continued on B3

By Alistair Osborne

TALKS to create a ÂŁ1.9bn UK soft drinks champion have gone pop after Britvic swiftly rejected a new merger proposal from Irn-Bru maker AG Barr that was below its current share price. Barr returned on Tuesday with a revised proposal that would have given Britvic shareholders 65pc of any

combined group – a small increase on the original 63:37 ratio the pair had agreed before the Office of Fair Trading surprisingly referred the deal to the Competition Commission in February. With the commission clearing the deal, Barr returned to find its new approach swiftly rebuffed by the owner of Robinsons, J2O and Fruit Shoot brands.

Yesterday, a “disappointedâ€? Barr said all talks were off and it did “not intend to make an offer for Britvicâ€?. Shares in Britvic fell 10 to 512p, valuing the company at ÂŁ1.25bn, while Barr rose 0.5 to 522p, where it is worth ÂŁ603m. On that, Britvic shareholders would be entitled to 67½pc of any merged group. Britvic chairman Gerald Corbett, who was seeking at

least 70pc of any merger, had insisted a new proposal had to reflect Britvic’s improved prospects following the appointment of a new chief executive, Simon Litherland, who was cutting ÂŁ30m costs. “There would have been some eyebrows raised in the City if we had accepted a proposal below the market price,â€? he said.

*<EJM NC<F@ PK AJM *D>MJNJAO By Katherine Rushton

MICROSOFT has launched a last-ditch attempt to catch its technology rivals in the mobile and tablet market, with a massive company shake-up. The IT business founded by Bill Gates was organised into numerous fiefdoms, and focused on building software. However, yesterday it halved the number of engineering divisions from eight to four, each one tasked with speed-

ing hardware and web services to market. In a letter entitled “One Microsoft�, chief executive Steve Ballmer told staff: “We are rallying behind a single strategy as one company — not a collection of divisional strategies. We will see our product line holistically, not as a set of islands.� The hotly anticipated restructure claimed a number of senior scalps. Kurt DelBene, president of Microsoft Office, will retire after more than 20

years at the company. Craig Mundie, Microsoft’s onetime chief research and strategy officer, will follow him out of the door next year. Meanwhile Windows chief Julie Larson Green will take control of all of Microsoft’s hardware, and Terry Myerson, who was formerly in charge of the Windows Phone, will be head of all Microsoft’s operating systems. Final chance for Ballmer: B5

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PART II

Monumental Changes Afoot

By Graham Ruddick

MICHEL EULER

Friday, July 12, 2013

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02 04 06 Entrepreneurship Key to Unlocking Future Potential Real Estate Lifestyle Creators

Telecoms & Transport Size Matters

Business Building Bridges

During a keynote speech to the EurAsiaMed division of the Confederation of Italian Entrepreneurs Worldwide (CIIM) in Istanbul, Ali Babacan, Turkey’s Deputy Prime Minister for Economic & Financial Aairs outlined what he considered to be potential risks to the Turkish economy in the coming 5 years. According to Babacan the biggest issue remained “the deficits in the legal bases of the economyâ€?. He confirmed that, “These will be overcome with the ‘fifth and sixth judicial reform packages’ which the government has started to outlineâ€?. In light of the recent demonstrations, all steps aimed at bringing about greater human rights will be seen as positive and - in the eyes of many - cannot come about soon enough.

n April this year, the company formerly known as Istanbul Stock Exchange changed its name to Borsa Istanbul (BIST). It should be understood that this was DR IBRAHIM TURHAN no simple rebranding Chairman & CEO eort, instead it was an of Borsa Istanbul epochal transition in the organisation’s history and saw the stock exchange transform itself into a fully integrated entity, gathering all Turkish exchanges under one umbrella. Helping Istanbul gain global financial centre status by transforming Turkey’s capital markets is no small task, and leaves little margin for error. Yet the mantle has been grasped and the plan is forging forward. After weeks spent exploring a strategic partnership with several high-profile international players - including Deutsche Borse, the CME Group and the London Stock Exchange Group’s Millennium IT - Chairman and CEO, Dr Ibrahim Turhan has finally made his choice. Early this month he signed with NASDAQ OMX Group and enthusiastically referred to the tie-up with the US operator as, “A notable milestone for our exchange, for Turkey, for the surrounding region and for the entire industry. Our objective is to position Borsa Istanbul as a leading, integrated multiasset exchange, and to provide a cutting-edge platform serving issuers, investors and traders globallyâ€?. The deal involves the adoption by BIST of the entire suite of NASDAQ OMX’s exchange technology products and many perceive this sharp stepping-up of its overall capabilities as the sign of a firm commitment to reach new heights. Beyond the technology and knowledge transfer, the new collaboration is also expected to benefit BIST liquidity-wise. Additionally, it will enhance its international profile and overall appeal to investors. The new partners wish to consolidate an enduring relationship for the joint exploitation of commercial opportunities across the Eurasia region. Turhan is targeting an IPO by early 2016, a necessary step if Istanbul is indeed to become a world-class finance centre within the next 10 years. Currently, the government owns 49% of BIST shares while the remaining 51% are held by a treasury stock. The plan is to divest a stake of up to 41%. On numerous occasions Turhan has underlined how the Turkish bourse has failed to capitalise on Turkey’s record rise during the past decade. Moreover, he has emphasised that without the support of a mature and well-developed capital market, it will be impossible for the economy to keep growing at this pace or find the necessary funding for the various megaprojects in the pipeline. Turhan expects the disclosure of BIST’s high-profile tech deal to begin reassuring international investors about Turkey’s long-term future and how bright the prospects are counterbalancing its reputation as having a chronically high current account deficit - and to start changing the trend for the better and for good.

"Our objective is‌to provide a cuttingedge platform serving issuers, investors and traders globally�

BY MICHELE GRIMALDI & SORCHA HELLYER Addressing rewards. Moreover, the progressive trajectory of exports - with investors at the CIIM gathering in April, Babacan was candid in his Turkstat reporting a rise in 2012 to $152.6bn up from $36.1bn in assessment, “Turkey has achieved a lot in terms of democratisation 2002 - demonstrates that market diversification is paying o. In and the economy in the last 10 years, but we know we still have 2002 nearly 60% of Turkey’s exports were destined for the EU a way to go,â€? he remarked. Certainly, all eorts to harmonise whereas it now stands at under 40%. Trade to Africa and the the market economy in line with what Babacan calls “Olympic Middle East, on the other hand, has climbed from approximately standardsâ€? will be vital. The nation’s 5th bid to host the Games, this 15% to 35%. At the Uludag Economy Summit held in Bursa earlier time in 2020, comes at a crucial phase in its history. Winning it this year, Babacan underlined that; “The latest financial crisis has would be a boost to the country’s image and - in concrete terms shifted the balance of economic strengths from the west to the east. In the next several decades, Asia and Africa will be increasingly - to the infrastructure of Istanbul. Such progress would important regionsâ€?. He also emphasised that, “Europe, not only serve this world-class event, but also the Japan and the US will continue to have a significant share in preparation of the city as it aims to become one of the global trade. However, economic strength continues to shift top 10 financial centres in the world. For Borsa Istanbul from the west to the eastâ€?. (BIST) to be in these echelons, “The first condition Turkey derives much of its success from its ability to is Turkey’s legal base,â€? said Babacan, indicating the embrace both sides of the world simultaneously. But necessity for the entire framework to be in place and how that success impacts the lives of the populace ready to cater for what many consider to be Turkey’s seems to be at stake. Besides almost tripling its big leap forward. GDP in recent years, the OECD cites Turkey as Thanks to its strong commitment to fiscal one of the countries that has reduced income discipline, the country turned its fortunes around inequality levels quite considerably. However, the after 5 decades of IMF bailouts and loans. As a extent to which the general population is actually result, there has been a massive reduction in feeling the eects and benefits of Turkey’s poverty with both local and international plaudits decade-long stellar performance could be called crediting Erdogan’s government. Widely touted into question. Indeed, this is an issue that many globally as the “Turkish economy’s silent captainâ€? emerging economies around the world have in international circles, Babacan’s political career been grappling with or are currently facing. took o when in 2002 - at the age of 35 - he was Unrest from Rio to Istanbul may have dierent appointed Minister of Economy and became connotations but much of its roots are the same. the youngest member of the cabinet. As well The will of the citizens to be heard - and for their as successfully steering the country through expectations to not simply be managed but also tumultuous times and a multi-tiered reform met - has become globally apparent. The timing of process, Babacan also later served as Minister these protests is hardly a coincidence. Both Brazil of Foreign Aairs. Turkey, to all intents and and Turkey have witnessed dampening outlooks purposes, displays an incredible ability to be a in their economies, further compounded by pivot in the region and will undoubtedly continue speculation that the US Federal Reserve is about to seek to capitalise on its geo-strategic and geoto reign in or cut o stimulus measures. political importance. What Turkey does not need right now, On a macroeconomic level the downward ALI BABACAN is for foreign investors to get jittery. FDI and trend of inflation and unemployment are proof Deputy Prime Minister for international engagement has played a vital role that the government’s policies are reaping Economic & Financial Aairs

in helping the Turkish economy to develop and the government must be mindful that a flight of capital would be detrimental to all sections of society. The truth is, that the exceptional growth the country had experienced for the last 10 years was not sustainable in the long term and a slowdown was inevitable. But that does not mean that the nation’s star is on the wane. If the country can continue to be a beacon of hope and foster democratic reform then it can make an indelible mark on the world. In many ways the private sector is leading the way through free enterprise. As Je Homan puts it, “Turkey has no excuses for not delivering successful outcomes. There are business angel networks and smart entrepreneurs here. We should see a lot of value created by Turkish entrepreneurs soon.â€? Homan is certainly in a good position to spot one of his own. He is a serial entrepreneur and an internationally recognised innovator who has been a founder and CEO of a number of start-ups and high growth companies, including Priceline.com, uBid.com and ColorJar. His work involves building entrepreneurial ecosystems in emerging nations on every continent and he recently visited Turkey as Global Advisor for the GIST initiative. GIST - Global Innovation through Science & Technology - is a fast-growing enterprise that seeks to identify and nurture entrepreneurs in 54 countries. Homan acknowledges that these days there is a new era of business taking shape, “What drives this generation is dierent. I came from a time where everybody measured each other - all the American movies were about making money and Wall Street during the 1980s. Now this generation is driven by values and social change. They actually want to make the world a better place.â€? This is undoubtedly an encouraging evolution and it is no less the case in Turkey. GIST is working closely with Turkish partner organisations and entrepreneurs to build the next generation of successful tech ventures in ICT, healthcare and energy - all areas that will engender societal improvements. The trip to Turkey saw Homan participate in the launch of the Entrepreneurs Club, sessions with Turkish angel investors at Galata Business Angels as well as share experiences with the tech entrepreneurs at the Etohum Accelerator and Ozyegin University. Homan is evidently proud to be sitting alongside Ali Sabanci - Chairman of Pegasus Airlines - on GIST’s Advisory Group and is eusive about Turkey’s potential, “If you look at the conditions necessary

Delivering Brand Promise

achievements and sustainable growth, “If being successful to achieve success than maintain it; the challenge isn’t easy, replicating success is where the real challenge for Turkey going forward is to keep building on its lies. It requires a mix of vision, application and strategy, success and make sure it is sustainable.â€? a principle that applies to people and governments When asked what further ingredient makes Turkey alike. One of Turkey’s biggest potentials lies in a recipe for success, Kent refers to what he calls “the the enterprising spirit of its men and women. golden triangleâ€? - namely the business society, Volatility is the future and we all need to find a the NGOs and the government. He sees these way to cope with it. Turkey has learned to cope interdependent components as playing a critical with unstable situations on multiple occasions role in the eective functioning of any sociothroughout its history and that, in my opinion, economic system, and cites Turkey as a prime is what gives Turkish entrepreneurs an edge example of that. “During the years I worked over their counterparts from other areas of in Turkey, I learned that the relations and the world.â€? compromise between these three forces Coca-Cola has been active in Turkey are crucial for doing business and achieving since the early 60s and its regional resultsâ€?, he said in his opening speech at the headquarters in Istanbul now oversees 90 2013 Uludag Economic Forum. dierent markets. This alone demonstrates Kent describes Turkish entrepreneurs the enormous belief the beverage company as bold, flexible, agile and swift, “They has in the metropolis. With his Vision 2020 have learned to endure multiple crises envisaging a doubling of the company’s and operate in extremely unpredictable revenues from the staggering $46bn conditions. As a result, they are able to mark reached in 2011, Kent is lucid in his undertake and complete projects faster perceptiveness and ambitions. He is also than anyone else.â€? He also points to the one of Turkey’s most authoritative global “quality of entrepreneurshipâ€? as a factor MUHTAR KENT ambassadors - and proud to be so. of capital importance for a country’s Chairman & CEO of Coca-Cola

“The latest financial crisis has shifted the balance of economic strengths from the west to the east"

Chairman & CEO of Coca-Cola, Muhtar Kent shares his thoughts with iD on the challenges and rewards of being global and what Turkey has to oer the international community.

A

born globetrotter, Kent is the US-born son of a Turkish diplomat. He spent much of his childhood and adult life travelling the world and, as such, he learned to be flexible and adaptable. At the same time he has nurtured his innate cosmopolitanism by tying his entire professional life to what many consider the global company par excellence, Coca-Cola. Despite spending nearly 70% of his existence outside Turkey, Kent remains very much a Turk at heart; “When I started my career at Coca-Cola in the late 70s, Turkey was hardly a topic of discussion in conversations with my American, British, French or German peers. But things have changed quite a bit since then, and wherever I go in the world now people show an increasing curiosity and interest in this country. In the space of just a decade Turkey has built a reputation as one of the most dynamic and stable markets in the globe.� Kent often compares Turkey to Mexico, “As China’s growth slows down and India faces infrastructure challenges, it is

Turkey on one side and Mexico on the other, that are glowing as the shiniest business and investment stars in the world. Both countries have shown strong resilience and dynamism in the face of the recent global crisis and benefit from an unmatched geostrategic location - one at the centre of the American continent and the other at the crossroads of the EMEA and Asian region.� Kent - who this year celebrates his 5th anniversary as head of the soft drinks giant - climbed the corporate ladder from step one all the way to the top position, so he certainly knows what it is like to attain and maintain leadership status. Being in charge of a manufacturing conglomerate that claims a presence in 207 countries (basically the entire world, except Cuba and North Korea), has 770,000 staff and over 68m Facebook fans is indeed no small task. When asked what it takes to build a strong brand and how that applies to Turkey, he mentions his favourite quote: “A brand is a promise, a great brand is a promise kept�. Indeed, Turkey has so far delivered on its promises, but as he points out, “It is notoriously easier

for entrepreneurship to flourish and grow, Istanbul has it all. Smart people with access to good education and investors like Galata Business Angels exist. You have all the components of the ecosystem needed to be successful.â€? What Homan seems to be pointing to is the fact that opportunities abound in Turkey and are there to be seized. It also appears that the business sector and talented individuals not only have a chance - but also a duty - to set the standards and make change happen. “When it comes to Turkey, it is a significantly better environment and market than it seems but people do not know that. Investors are making assumptions based on other problems in the region,â€? Homan remarks. “Turkey could do a much better marketing campaign by saying: Here are the conditions to be successful as an investor and here are the conditions in Turkey,â€? he emphasises astutely, intimating that the fit between one and the other couldn’t be better.

“It is notoriously easier to achieve success than maintain it; the challenge for Turkey going forward is to keep building on its success and make sure it is sustainable�

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