2Nd International Symposium on Public Finance October 24-27

2nd International Symposium on Public Finance

2 October 24-27, 2007 / Bishkek - Kyrgyzstan

“Recent Fiscal Problems in Transitional Economies”

Kyrgyzstan – Turkey TIKA - Turkish Journal of H.U., Centre for Market MANAS University, International Cooperation Sosyoekonomi Economics and Department of Public and Development Agency Entrepreneurship Finance (CMEE) 2nd INTERNATIONAL SYMPOSIUM ON PUBLIC FINANCE “Recent Fiscal Problems in Transitional Economies”

24-27 October 2007 Bishkek / KYRGYZSTAN

Executive Committee

Ahmet Burcin YERELI , Chair Kyrgyzstan - Turkey Manas University & Hacettepe University

Ahmet KESIK Republic of Turkey, Ministry of Finance

Ahmet Atilla UGUR Kyrgyzstan - Turkey Manas University & Gaziantep University

Cusup PIRIMBAYEV Kyrgyzstan - Turkey Manas University

Selami SEZGIN Kyrgyzstan - Turkey Manas University & Pamukkale University

Seyfi YILDIZ Kyrgyzstan - Turkey Manas University & Hitit University

October 24-27, 2007 / Bishkek - Kyrgyzstan 3 2nd International Symposium on Public Finance

Scientific and Advisory Board

Abuzer PINAR, Ankara University Ahmet Atilla UGUR, Kyrgyzstan - Turkey Manas University Ahmet Burcin YERELI, Kyrgyzstan - Turkey Manas University Ahmet Fazil OZSOYLU, Cukurova University Ahmet KESIK, Republic of Turkey, Ministry of Finance Ahmet ULUSOY, Karadeniz Technical University Aigiul KALCHAKEYEVA, Kyrgyz - Russian Slavic University Aiylchy SARYBAEV, Bishkek Humanitarian University Ali CAGLAR, Hacettepe University Ali Tarkan CAVUSOGLU, Hacettepe University Aytac EKER, Sakarya University Caglar OZEL, Hacettepe University Cevat GERNI, Gebze Institute of Technology Coskun Can AKTAN, Dokuz Eylul University Cusup PIRIMBAYEV, Kyrgyzstan - Turkey Manas University Damira BEKTENOVA, Kyrgyz - Russian Slavic University Damira CAPAROVA, Kyrgyz National University Djipar AYTUGANOVA, International Academy of Management, Law, Finance and Business Enver Alper GUVEL, Cukurova University Fatih SAVASAN, Usak University Guneri AKALIN, Hacettepe University Hakan BERUMENT, Bilkent University Ibrahim OZKAN, Hacettepe University Ihsan GUNAYDIN, Karadeniz Technical University Inci KUZGUN, Hacettepe University Irfan CIVCIR, Ankara University Isa SAGBAS, Afyon Kocatepe University Ismail TATLIOGLU, Uludag University Istiklal Yasar VURAL, Dumlupinar University Julide YILDIRIM, Gazi University M. Kemal OKTEM, Hacettepe University Mehmet BALCILAR, Cukurova University

4 October 24-27, 2007 / Bishkek - Kyrgyzstan

“Recent Fiscal Problems in Transitional Economies”

Mehmet BULUT, Baskent University Mehmet Cahit GURAN, Hacettepe University Mehmet SAHIN, Canakkale Onsekiz Mart University Mehmet TOSUNER, Dokuz Eylul University Metin TOPRAK, Georgetown University Muhammed AKDIS, Suleyman Demirel University, Kazakhstan Mustafa ACAR, Kirikkale University Mustafa SAKAL, Dokuz Eylul University Mustafa Umur TOSUN, Hacettepe University Mushtaq A. KAW, The University of Kashmir Necmiddin BAGDADIOGLU, Hacettepe University Nihat FALAY, Istanbul University Nurettin BILICI, Hacettepe University Obolbek KURMANBEKOV, Bishkek State University of Economics and Business Omer DEMIR, Turkish Statistical Istitute Omer Faruk BATIREL, Marmara University Omer Faruk COLAK, Gazi University Orhan MORGIL, Hacettepe University Osman KADI, International Ataturk Alatoo University Philip JONES, University of Bath Raikan KURMANBEKOVA, The Parliament of Kyrgyz Republic Rifat ORTAC, Gazi University Sahin AKKAYA, Istanbul University Saltanat TURSUNOVA, Kyrgyz National University Selami SEZGIN, Pamukkale University Sevinc MIHCI, Hacettepe University Seyfi YILDIZ, Kyrgyzstan - Turkey Manas University Sureyya SAKINC, Celal Bayar University Syrgak KYDYRALIEV, American University of Central Asia Turan EROL, Capital Markets Board of Turkey Turar KOYCUYEV, Kyrgyzstan - Turkey Manas University Turusbek ASANOV, Kyrgyz - Russian Slavic University

October 24-27, 2007 / Bishkek - Kyrgyzstan 5 2nd International Symposium on Public Finance

2nd INTERNATIONAL SYMPOSIUM ON PUBLIC FINANCE “Recent Fiscal Problems in Transitional Economies”

24-27 October 2007 Bishkek / KYRGYZSTAN

THEMES & TOPICS

1. The New Role of State in Transitional Economies : The changing role of the government, structure and scope of government, constitutional order and market economy, political corruption and market economy, regulation and business law, intergovernmental fiscal relations and distribution of public incomes between central and local governments, fiscal federalism, global public goods. 2. Reform on Public Finance System in Transitional Economies : Rethinking of public finance order, reconstructing of pubic finance bureaucracy, reform on state sector management, strategic planning and strategic management, budget reform, mid-term expenditure strategies, fiscal adjustment, coordination between central bank and treasury, performance audit, public procurement system and government contracts. 3. Tax Reform in Transitional Economies : Tax base, composition of taxes, direct or indirect taxation, new taxes or new incentives, tax competition, tax havens, tax incidence, tax burden and tax evasion, tax subjects, tax schedules, optimal tax rates, tax audit, shadow economy. 4. Financing for Development in Transitional Economies: Taxable capacity, domestic and external debts, international capital flows, foreign direct investments, project credits, and international aids. 5. Free Trade Policy in Transitional Economies : Free trade zones, off-shores, mobilization of goods, tariffs’ and non-tariff barriers, red tapes and corruption in customs. 6. Labour Market Trends in Transitional Economies : Labour mobilization, labour productivity, unemployment, excess burden on wages, social security system, woman’s labour force, child labour, undeclared work. 7. Socioeconomic Structure of Transitional Economies : Income distribution and poverty, income inequality, income mobility, economics of crime and black money related with politicians and bureaucrats, migration, gender discrimination in employment. 8. The Effects of the 2004 and 2007 Enlargement of European Union on Central Asian Transitional Economies : Comparative analyses between the Eastern European and Central Asian transitional economies. 9. Special Session : The Fiscal Effects of the Financial Supports of the Republic of Turkey on Central Asian Transitional Economies.

6 October 24-27, 2007 / Bishkek - Kyrgyzstan

2nd International Symposium on Public Finance

Session: V-A / 11.30-13.00 25 October 2007 Thursday 2nd Day

Room: Alaarcha E6 Chair: Orhan Morgil

The Transitional Economic Crunch and Defence Expenditures of Pakistan: Issues and Problems Muhammad Kaleem Role of Foreign Direct Investment (FDI) in Indian Economic Development S. Sudalai Muthu & B. Siva Kumar Optimum Currency Areas Theory: An Empirical Application to Turkey Itir Ozer & Ibrahim Ozkan & Okan Aktan

Session: V-B / 11.30-13.00 25 October 2007 Thursday 2nd Day

Room: Atabeyit T5 Chair: 0lhan Yerlikaya

The Preferences of Transitional Economies in Central Asia and Caucasia in the Liberalization Period of International Trade Nazim Catalbas Globalization and Shanghai Co-operation Organization (SCO) Erhan Arikli Globalization, Income Distribution and Inequality Cemil Ciftci & Alparslan A. Basaran Performance Based Budgeting System in Developing Countries: Turkish Case Duran Bulbul & Selin Erturk

Session: V-C / 11.30-13.00 25 October 2007 Thursday 2nd Day

Room: Issyk-Kul E7 Chair: Sureyya Sakinc

Turkey’s Past and Current Outlooks in the Development Process: Obstacles, Perils and Prospects M. Kemal Oktem & Ugur Omurgonulsen & Ugur Sadioglu The Unregistered Economy in Kyrgyzstan: Estimation and Effects on Economic Growth Harun Yakisik Corruption in Higher Education: Perceptions of Bribery in Kyrgyz Universities Naci Tolga Saruc & Habib Yildiz & Yasar Ayyildiz

12 October 24-27, 2007 / Bishkek - Kyrgyzstan

“Recent Fiscal Problems in Transitional Economies”

Session: V-A / 11.30-13.00 25 October 2007 Thursday 2nd Day

Room: Alaarcha E6 Chair: Orhan Morgil

Session: V-B / 11.30-13.00 25 October 2007 Thursday 2nd Day

Room: Atabeyit T5 Chair: 0lhan Yerlikaya

Session: V-C / 11.30-13.00 25 October 2007 Thursday 2nd Day

Room: Issyk-Kul E7 Chair: Sureyya Sakinc

October 24-27, 2007 / Bishkek - Kyrgyzstan 61 “Recent Fiscal Problems in Transitional Economies”

Corruption in Higher Education: Perceptions of Bribery in Kyrgyz Universities

Asst.Prof. Naci Tolga SARUC (Ph.D) Sakarya University [email protected] Asst.Prof. Habib YILDIZ (Ph.D) Sakarya University [email protected] Yasar AYYILDIZ (M.A.) Republic of Turkey, Ministry of National Education [email protected] Abstract Bribery, which continuous to thrive at Kyrgyz Universities, has significant negative impacts on the quality of higher education. Corruption in university admissions and further corruption for the exams during the study period leads to graduates who lack the necessary knowledge and skills. As a result of these irregularities, country’s economic performance is affected adversely. In order to investigate bribery behaviour in higher education we have carried out a questionnaire survey with around 200 students who attends several different universities in Bishkek. The preliminary results show that although bribery is common place in universities, the extent of it differs significantly amongst different universities. Many students think that bribing is a normal behaviour with no stigma cost associated. So, bribing do not considered as morally wrong and carries little guilt feelings. Perception of risk and punishment associated with bribery are also found very low. Again the preliminary results of the study do not indicate any significant difference in bribery behaviour amongst gender and ethical background. Many policy implications have been drawn from the studies which have been discussed in the last part of the paper. Key Words : Corruption, Higher Education, Survey. JEL Codes : I23, D73.

October 24-27, 2007 / Bishkek - Kyrgyzstan 71