GOOD GOVERNANCE

APPROCH OF AND IMPLEMENTATION INDEVELOPMENT BANK OF TURKEY

İRFAN YAŞARDEPUTY GENERAL MANAGER

DECEMBER 2011

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Governance is the decision-making process and its implementation.

United Nations

The concept of governance is currently used in contemporary social sciences with at least six different meanings: the minimal State, corporate governance, new public management, good governance, social-cybernetic systems and self-organised networks

Roderick Rhodes, political scientist

It originates from the need of economics (as regards corporate governance) and political science (as regards State governance) for an all-embracing concept capable of conveying diverse meanings not covered by the traditional term "government

EU, White Paper

UNESCAP

The term “governance” means “the process of decision-making and the process by which decisions are implemented (or not implemented)”

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Good Governance is topic of;

Human Development

Economic Development

Sustainability

Ethics

Democracy

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IMFGood governance is important for countries at all stages of development. . . . Our approach is to concentrate on those aspects of good governance that are most closely related to our surveillance over macroeconomic policies—namely, the transparency of government accounts, the effectiveness of public resource management, and the stability and transparency of the economic and regulatory environment for private sector activity.

Michel CamdessusIMF MANAGING DIRECTOR

Address to the United NationsEconomic and Social Council

July 2, 1997

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White Paper of EU

Better involvement and more openness

Better policies, regulation and delivery

Global governance

Refocused Institutions

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United Nations

"...as we all know, infrastructure is not just a matter of roads, schools and power grids. It is equally a question of strengthening democratic governance and the rule of law. Without accountability, not only of the government to its people but of the people to each other, there is no hope for a viable democratic State. ."

Secretary-General Ban Ki-moon, Remarks to the Security Council on Timor-Leste19 February 2009

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Public Side

Public Administration Reforms,

Public Procurement Reforms

Reforms for decentralization of public administration

• Regional development agencies

• Municipalities

Fight with corruption

Civil Right for

• Petition

• Information

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NGOs

Corporate Governance Association of Turkey ,

Economic Policiy Research Fondation of Turkey

The Turkish Economic and Social Studies Foundation

Chamber of commerces and chamber of trades

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How do we understand good governance in Kalkınma?

GG

Corporate Social Responsibility Strategies and Activities to Support National Policies

Good ManagementEnvironment

Customer Satisfaction

Sustainable Relations with Stakeholders

Staff Development Programs

Supporting SMEs Financialy & Technicaly

Entreprenuership Development Programs

Seminars to other Public Institutions

Vision-Mission Statements

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Results of good governance in Kalkınma

Corporate Management Committee in Kalkınma

ISO 14001 (Certification for good management of administration and environment)

Increasing in received funds from international financial institutions

Awards from different institutions

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Results of good governance in KalkınmaFinance Central Europe 2002 Active profitability Best Bank ADFIAP Development Awards 2002

Rural Development

ADFIAP Development Awards 2006 Regional Economic Development

League of American Communications Professionals (LACP) 2010 Printed Annual Reports The most striking (Most engaging) Contact Material Top 100 Communications Materials of 2010

The “Outstanding CEO Award” for 2010

Kalkınma

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011/090

200

400

600

800

1000

1200

1400

1600

1800

2000

0%

5%

10%

15%

20%

25%

30%

171 214 213286 333

398

589 803

1178

175524%

19%20%

12%

16%

13%

10%

11%

6%

4%

Loans

NPL Ratio

Loan Portfolio and Non-Performing Loans Ratio

LOANS & LOANS / ASSETS

Million TL

2002 2003 2004 2005 2006 2007 2008 2009 2010

30 48 76168 137

188240

360

491

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011/06

0

200

400

600

800

1,000

1,200

1,400

1,600

0%

10%

20%

30%

40%

50%

60%

70%

80%

174 191 217286 333

398

589

803

1,178

1,499

39% 39% 42% 41%38%

49%

58%62%

74% 75%

Loans Loans/AssetsLOAN PAYMENT

Million TL

Loans given, which was TL 30 million in 2002,

reached to TL 360 million in 2009 and, TL 491

million in 2010.

In 2002, 38% was the figure of loans to total assets for Kalkınma and jumped to 74.98 % as of June 2011. For the same period rates were 55.6 % in Turkish Banking System, 65.2 % for the Investment and Development Banks' group.

Corporate Information Products & Activities Resources & Funds Financial Figures Targets Rating Notes & Awards

Banking Sector Development Banks

Development Bank of TURKEY

53.66%60.98%

73.77%

55.64%65.28%

74.98%

31.12.2010 30.06.2011

New approach for Renewable Energy project

• Cumulative Impact Assessment Approach