This presentation by Vahdettin Erta was made during the special address at the High-level Conference on Global and European Trends in Financial Education held on 22-23 May 2014 in Istanbul, which explored the role(s) of the private and not-for-profit sectors in financial education, financial literacy and innovation for young people and financial education for migrant workers and their families. Find out more at http://www.oecd.org/daf/fin/financial-education/2014-conference-global-european-trends-financial-education.htm

1. Vahdettin ERTAŞ, Ph.D.
High-level conference on global and European
trends in financial education
22-23 May 2014 - Istanbul, Turkey
New Challanges, Innovation and Measures of Success

2. TURKEY-Snapshot
Population 76.6 million (2013)
Labor Force (Population) 28.8 million (2013)
Median Age 30.4 (2013)
Area 783,562.38 km²
Financial Center Istanbul
GDP USD 820 billion (2013)
GDP Per Capita USD 10,782 (2013)
Exports Value USD 152 billion (2013)
Imports Value USD 251 billion (2013)
Tourism Revenue USD 32.3 billion (2013)
Tourist Number 39.2 million (2013)
Foreign Direct Investment USD 12.9 billion (2013)
Number of Companies with Foreign Capital 36,450 (2013)
Inflation Rate 7.5% (CPI-2013)
Major Exports Markets
Germany (9%); Iraq (7.8%); UK (5.8%); Russia (4.6%); Italy (4.4%); France
(4.2%); USA (3.7%); UAE (3.3%); Spain (2.8%); Iran (2.4%) (2013)
Major Imports Sources
Russia (9.9%); China (9.8%); Germany (9.6%); Italy (5.1%); USA (5%); Iran
(4.1%); Switzerland (3.8%); France (3.2%); Spain (2.5%); India (2.5%)
(2013)
Population 76.6 million (2013)
Labor Force (Population) 27.8 million (February 2014)
Median Age 30.1 (2013)
Area 783,562.38 km²
Financial Center Istanbul
GDP USD 820 billion (2013-Current Prices)
GDP Per Capita USD 10,782 (2013)
Exports Value USD 152 billion (2013)
Imports Value USD 251 billion (2013)
Tourism Revenue USD 32.3 billion (2013)
Number of Tourists 39.2 million (2013)
Foreign Direct Investment USD 12.9 billion (2013)
Number of Companies with Foreign Capital 36,450 (2013)
Inflation Rate 9.4% (CPI-April 2014)
Major Exports Markets
Germany (9%); Iraq (7.8%); UK (5.8%); Russia (4.6%); Italy (4.4%); France
(4.2%); USA (3.7%); UAE (3.3%); Spain (2.8%); Iran (2.4%) (2013)
Major Imports Sources
Russia (9.9%); China (9.8%); Germany (9.6%); Italy (5.1%); USA (5%); Iran
(4.1%); Switzerland (3.8%); France (3.2%); Spain (2.5%); India (2.5%)
(2013)

3. 10,5 million tourists
(30% of total arrivals in Turkey, 2013)

4. 4
İstanbul 3. Airport
Auction value ≈ 22 billion Euros
Construction cost ≈ 10 billion Euros
İstanbul – İzmir Highway ≈ 16 billion $
İstanbul 3. Bridge ≈ 3,5 billion $
High Speed Train
 İstanbul - Ankara ≈ 4 billion $
Haydarpaşa Port
≈ 5 billion $
 Kanal İstanbul…

5. The Improvements in Turkish Economy
Outlook USD 123 billion of FDI in the past decade and 13th most
attractive FDI destination in the world (2012 A.T. Kearney FDI
Confidence Index)
16th largest economy in the world and 6th largest economy
compared with EU countries in 2012 (GDP at PPP, IMF-WEO)
Robust economic growth over the last decade with an average
annual real GDP growth of 5 percent
GDP reached USD 820 billion in 2013, up from USD 231 billion
in 2002
Sound economic policies with a prudent fiscal discipline
Strong financial structure resilient to the global financial crisis

6. Borsa Istanbul
• Market Capitalization $255 billion
Banking
• Asset Value $855 billion
Mutual Funds
• Portfolio Value $14 billion
Pension Funds
• Portfolio Value $13 billion
Real Estate Investment Trusts
• Portfolio Value $9 billion
Portfolio Management Companies
• Portfolio Value $32 billion
Financial Indicators

7. Financial Indicators
Number of comp. regist. with the Board 605
Borsa Istanbul companies 421
Number of issue investors in Borsa Istanbul 1,095,386
Number of investors in mutual funds 2,758,658
Number of pension funds participants 4,520,515

8. Education

9. Reforms & Developments
Education
in Turkey
Compulsory eight-year education
Improvement of the overall quality of the Turkish education
system
Increase in the number of schools and related establishments
The Fatih Project; public school students with tablet PCs and
classrooms with electronic boards

10. Financial Education in Turkey
Financial
Capability
Survey
A nationwide study conducted by WB to inquire into
financial capabilities, skills, behaviors, tendencies, and
decision-making patterns of citizens across Turkey
3009 households surveyed through face-to-face interviews
Subjects with higher socio-economic condition tend to give
more right answers to financial literacy questions
Most respondents gave wrong answer or did not respond to
the questions on compound interest and inflation

11. Level of indebtedness
Financial Capability Survey
Can you save for the future?

12. FINANCIAL LITERACY
Central
Bank of
Turkey
Treasury
Sav.
Dep.
Ins.
Fund
Banking
Capital
Markets
TaxInsurance
Real
Sector
Capital
Markets
Board
Min. of
Education
Min. of
Development
Bank.Reg.
& Sup.
Aut.
National Strategy –
Organization

13. National Strategy on Financial Education
Overview
Goals to help citizens to improve their
understanding of financial concepts and
products and manage their money
to provide information and tools to help
citizens make informed decisions about
their finances
to improve saving and investment culture
of general public

14. General Public with an emphasis on:
• University students
• School-aged children
• Women & Families
• Employees (public and private sector)
• Finance sector employees
• Others (Handicapped people, newly wed couples, unemployed young people
etc.)
National Strategy – Target Groups

15. PROJECT NAME TARGET GROUP OUTCOME COORDINATOR
Essay Contest
Students in primary
and secondary
education
Raised awareness of
students about capital
markets
CMB
Simulation Games
Primary and
secondary
education students
Raised awareness of
students about capital
markets
CMB
Training the Trainers
Teachers in primary
and secondary
schools
Increased level of
financial literacy and
skills CMB
Enhancing finance
topics in the
curriculum
Primary and
secondary
education students
Increased level of
financial literacy and
skills
CMB, Ministry of
Education
Primary & Secondary Education

16. 2013 SUMMIT