Suchergebnisse

ÖZETKamusal hizmetler merkezi idare ve yerel idareler tarafından yerine getirilmektedir. Söz konusu idareler arasındaki mali ilişki gelir paylaşımı ve hizmet bölüşümünden oluşmaktadır. İdareler arası hizmet bölüşümü etkinlik, faaliyetlerin ayarlanması ve yeknesak standart ve politikalar gibi birtakım kriterler ile belirlenmektedir. Bunun yanında idareler arasındaki gelir bölüşümü ise anlaşılabilirlik, yeterlilik, uygulanabilirlik ve gelir esnekliği gibi kriterlere bağlıdır. Etkin kaynak dağılımı için öncelikle idareler arası hizmet bölüşümü, daha sonra ise gelir paylaşımı belirlenmelidir.Yerel yönetimleri temsil bakımından en iyi örnek belediyelerdir. Belediyelerin mali ve idari durumu, şehirlerin giderek artan önemleri ve sorunlarının etkisiyle ön plana çıkmış; mali ve yerel önlemler alma ihtiyacı 1970'lerin sonunda iyice belirginleşmiştir. Bu gereksinimlerin sonucunda mali ve idari alanda birtakım düzenlemeler olmuştur. Mali alanda 1981 yılında 2380 ve 2464 sayılı Kanunlar ile yapılan düzenlemeler sonucunda belediyelere önemli oranda gelir sağlanmıştır. İdari alanda ise 1984 yılında çıkartılan 3030 sayılı Kanun ile İstanbul, İzmir ve Ankara gibi büyük şehirlerin yönetimi özel bir yapıya kavuşturulmuştur. Fakat bu şehirlerin yeni bir uygulamaya geçmesi varolan sorunları çözmede yetersiz kalmış ve merkezi idareyle aralarındaki idari ve mali sorunlar devam etmiştir. Bu sorunların çözümü için çeşitli kanun tasarıları hazırlanmış, fakat kanunlaşamamıştır. Kalkınma Planlarında ifade edilen düşünceler ise uygulamada yer bulamamıştır.Bu çalışmada yukarıda ifade edilen sorunlar çerçevesinde merkezi idare-yerel idare arasındaki mali ilişki incelenmiş ve Dünya ve Türkiye'deki büyük şehir uygulamaları bu açıdan değerlendirilmiştir.Bu çalışma çerçevesinde büyük şehir belediyelerine ilişkin şu sorunlar gözlemlenmiştir: Büyük şehir belediyeleri, kaynak sahibi olma ve kaynak yaratma açısından yeterince güçlü değildir. Belediye bütçe gelirleri, öz gelir payının azlığı ve belediyelerin yeni kaynak yaratma yetkisinin olmaması nedeniyle yetersiz kalmıştır. Belediye gelirlerinin çok büyük bir kısmı merkezi idare transferlerinden oluşmuştur. Bütçe giderleri ise, bazı hizmetlerin düşük düzeyde yapılmasına neden olmuş, personel harcamaları gibi kalemlerin payının yüksekliği bütçeleme alanının daralması sonucunu doğurmuştur. Diğer taraftan, merkezi idare yaptığı kanuni düzenlemelerde öncelikle gelir bölüşümünü belirlediğinden, kaynak kullanımında etkinsizlik ortaya çıkmıştır.Bu çalışmada, sorunların çözümüne ilişkin olarak mali ve idari alanda birtakım düzenlemelerin yapılması önerilmiştir.ABSTRACTPublic services are fulfilled by central and local governments. The fiscal relations between them consist of revenue and service-sharing. The service-sharing between different administrations (e.g. central and local governments) is determined by the criteria such as the setting of activities, uniform standards and policies. The revenue-distribution between different levels of administration, meanwhile, depends on such criteria as comprehensibility, capability, applicability, and income elasticity. For effective resource allocation, first, the service-sharing, and, then, the revenue-sharing between the two levels of administrations (central and local) should be decided.The examples which best represent the local government are local councils (belediye). On account of their increasing significance and problems, the question of the financial and administrative well-being of local councils and the respective need to take financial and local measures to enhance their conditions, have become more marked particularly by the end of the 1970s. As a result of this requirement, new regulations were issued in the financial and administrative spheres. In the financial sphere, the Laws no. 2380 and 2464, adopted in 1981, envisaged significant cash flows to local councils. In the administrative sphere, on the other hand, the Law no. 3030, adopted in 1984, accorded special status for metropolitan cities like İstanbul, İzmir and Ankara. Nonetheless, this new regime proved inadequate in resolving the deep-seated problems these cities had been facing, while their administrative and financial disputes with the central government persisted. A number of draft legislation to resolve these problems were prepared, and yet none were adopted by the parliament as law. The ideas expressed in the Development Plans, meanwhile, did not materialise.This study seeks to examine the financial relations between central and local governments by reference to the problems presented above. The metropolitan city arrangements in Turkey and in the world at large are, likewise, researched through in the same light.In this study, the following observations and findings as regards metropolitan city councils have been reached : The metropolitan cities are not possessed of adequate resources under their disposal and in their capacity of resource-generation. The budget revenue of local councils have remained inadequate due to the insufficiency of their own income and to their lack of power in generating new resources. For the most part, the revenue of local councils consists of funds transferred to them by the central government. The budgetary expenditures, for their part, have resulted in the poor quality of some of the services handled by local councils, while the high share of staff expenditures has limited the scope of budgetary provisions. On the other hand, since the central government first decides upon the allocation of revenues through legal regulations, inefficiency of resource-utilisation accordingly has followed suit. This study suggests a number of new arrangements in financial and administrative fronts to bring about a solution to the problems faced by the local councils in Turkey.

ÖZETSovyetlerden 15 bağımsız cumhuriyetin ayrılışından sonra Rusya Federasyonu içinde demokrasi ve milli özgürlük uğrunda mücadele devam etmiştir.Bu mücadelenin ayrılmaz parçası olan Azerbaycan Cumhuriyetinde gelişen demokratik olaylar sonucu bağımsızlık ilan edilmiş, çağdaş ülke için değişim yoluna girilmiştir. Tarih boyu demokrasi millet ve halkların, toplumsal kuvve ve grupların keskin mücadelelerinin esas çizgisi olmuş ve olmaktadır. Bu mücadele yolunda bir çok fikir ve yöntemler geliştirilmiştir. Ama Marksist teori demokrasinin mahiyetini yanlış ve hatalı açıklamış, onu sınıfsal bir anlayış olarak belirlemiştir. Tarihi tecrübe bu iddiaların gayri hayatiliğini , insan doğasına aykırı olduğunu kanıtlamıştır. Çünkü demokrasiye sınıfsal yaklaşım bu sınıfın iktidarına, bir partinin diktatörlüğüne , gittikçe bozulan bürokratik bir sistemin yaranmasına neden oldu. Oysa demokrasi genel bir kavramdı, ülkeye, sınıfa, millete has demokrasi olamazdı. Demokrasinin uluslar üstü değerleri, prensipleri, şartları ve uygulanacak aşamaları vardı ve demokrasi her şeyden önce millet ve halkların özgürlüğünü hayata geçirmek yöntemiydi. Sovyetler Birliği yukarıdan aşağıya doğru dikey ve yatay yönlerde her şeyi, tüm toplumu, onun tüm halkalarını, sinir hücrelerini kapsıyordu. Fakat iktidarın milyonları korku altında tutması her zaman mümkün olamaz bu yüzden değişik yöntemlere başvuruluyor, özellikle utopik bir ideoloji ile beyinler yıkanıyordu. Ülkede hem Anayasa hem seçim hem çok sayıda kamu kurumları vardı. Fakat bunların faaliyetleri merkezin karar ve direktifleri ile baştan sona kadar parti strüktürleri tarafından idare ediliyordu. Neticede toplum aşırı merkezileşmiş, otoriter karakter kazanmıştı. Sadece yerel organların değil, Anayasalı federe cumhuriyetlerin yasama, yürütme organlarının da hakları kısıtlı ve kontrole tabi idi. İnsanlar ekonomik yönden tamamen devletten asılı durumda, yaratıcılıktan yoksun yukarının emirlerini uygulayan birer pasif fertlere çevrilmişlerdi. Fakat insanlar durumun farkında olmadan yüzyıllarca yaşayamazlardı. Zengin doğal servetleri olan bir memlekette çok kötü durumda yaşamak insanların akıllarında soru işaretleri doğurmuyor değildi. İşte bu yüzden 70'li yıllarda Sovyetler Birliği çökmeye başlamıştı. Azerbaycan Cumhuriyeti açısından olaylara baktığımızda Sovyetlerin kuruluşunun Rusya için getirmiş bulunduğu artı değerlerin burada kesinlikle olmadığını görüyoruz. Çünkü SSCB'ye katılan ülkenin esas doğal zenginliği olan petrol dünya pazarlarında çok ucuz fiyata satılarak kazanılan değerler Moskova'ya akmış, Hazar denizi derin ekolojik problemleri olan göle çevrilmiş, 1920 işgalinden sonra 48 bin insan öldürülmüş 80 bin kişi Iran da kalan Azerbaycan topraklarına göç etmiş, 1948-1953 yıllarında 140 binden fazla kişi, 1988'den itibaren ise tüm Azeri nüfus Ermenistan'dan zorla kovulmuş , ülke ekonomisi merkezden gelen talimatlara uyulmak zorunda kalındığı için derin yaralar almış, 1930'lı yıllarda toplumun aydın kısmı öldürülmüş veya sürgün edilmiş ; ülke içinde bir bölgeye özerklik verilerek ve 70 yıl içinde nüfus dağılımı maksatlı olarak değiştirilerek bağımsızlık mücadelesi önünde bir engel haline getirilmiştir. Bunlara ülkenin Ruslaştırma politikası yüzünden alfabenin değiştirildiğini, tarihinin tamamen saptırıldığını, geleneklerini zorla unutturulmaya çalışıldığını eklersek manevi olarak de bir milleti yok etmek için yapılabilecek her şeyin gerçekleştirildiğini anlamış oluruz.Maalesef ki Sovyetler dağıldıktan sonra bu topraklarda kurulmuş bağımsız devletlerde ve aynı şekilde Azerbaycan'da totalitar düşünce ve idare sistemi halen devam etmektedir.Fakat bu ülkelerde devam eden değişimler her hangi bir kesin sistemden bahsetmenin erken olduğunu kanıtlıyor.SUMMARYAfter 15 republics separated from the Soviet Union, struggle had went on in Russian Federation to reach democracy and freedom. As a result of some democratic phenomenon assured in The Republic of Azerbaijan which was the most important part of the fight from the beginning, independence had been declared and this was the first step for a contemporary country .To reach liberation was important after that long period of slavery and dictatorship but also to understand the idea of democracy and take lessons from the history was essential and vital. Democracy had always been the base of the nations' contention in the history. But Marxism had explained democracy in a wrong way and showed it as the intelligence of the social groups. But history proved that this idea is against the nature of human being. Cause democracy was a general concept and would not have belonged to a country, a social group or a nation. USSR was dominating all nations in the Union. Any objection used to be removed even through against law actions. Also Federative Republics' rights were limited and controlled. But it was not always possible to dominate people with creating fear over them. And people had started to ask themselves the reason of their poor life's although they lived in a country which is very rich in terms of natural sources. As a result; Soviet Union had started to collapse in the years of 70.If we look at the reason of Union's collapse, we first face with the system of common prietorship which is the vital part of the economy. This system had prepared the base of the collapse causing people lose their idea of ownership and pushing them to stealing, lying and bribery.Single political party was protected by the military authoritarian police system. The gap between the government and the citizen was becoming biger and biger every day.In the social area; everybody was considered equal as the result of social equality which was ruining social justice principles In the field of ideology; Marxism and Leninism were accepted and taught as the sole theory representing community phenomenon.If we examine Azerbaijan's situation in the Union we can say that Soviet Union had not affected this country in a positive way. The basic natural source of Azerbaijan was petroleum which was sold in the world market very cheap and the profit was running to Moskow directly. After the occupation of Azerbaijan in 1920 ,48 thousand of people were killed, 80 thousand had migrated to the land of Azerbaijan which was left to Iran. After 1988 all Azerbaijani population was driven away from Armenia. In 70 years allocation of the population had been changed on purpose to prevent any possible independence fight against the Union.Unfortunately after the Union collapsed , totalitarian opinion and government system is still going on in the Republics that separated from the Union like being in Azerbaijan.During the Soviet period Human Rights was called as the bourgeois theory and never been taught in the Universities. Not until the end of 80's human rights were included in the socialist mechanism. As a result, in Azerbaijan , short past of country's independence is still being used as the reason of limiting people's rights. Although freedom of press was arranged by the constitution in 1995, there are still blank lines and pages in the newspapers.War and interruption of the economic relations as a result of Union's collapse are still used as the defence of the above examples of misrule.

SUMMARYA great changement was occurring after fell down the Berlin Wall in East Europe, in 1989.The countries had begun to new period with high debts and inflation by these changements.East European countries have a common feature by carry out the transition period politics by rapidly in this process. So, it was necessity on stabilization politics but not easy.At result, privatization and restructure got an importance.I – THEORICAL AND CONSEPTIONAL FRAME OF MARKET ECONOMYFree market economy has the same philosophy and idea with liberalism. Economical liberalism is defended the free competition, reducing the customs taxes, import freedom and resisted to interference of state on the economy.Classical economy's base is economical freedom and market economy. Market economy is relying on free competition and private enterprise. Price mechanism and world prices are important. Interference of state must be in minimum levels. Public sector must be reduced. Basic factors such as wage, capital and foreign currency must reflect the real market prices, must get an importance to external trade.1-DEVELOPMENT OF MARKET ECONOMY1.1. CLASSIC REVIEWFree trade, specialization only on one field, annihilate the obstacles such as customs and quotas, interferences of state on the market are most important according to Adam Smith, which lived in 18th century.A specialization between nations must be obtained according to Ricardo. So, it must be an exchange on the entire world. 1.2. NEO-CLASSIC REVIEWAlfred Marshall, Leon Walras and Carl Menger is an echol. The state must be more active to improve the poor part of community and must create the opportunities on the market, get the taxes from revenues and wealth, finance the education, health, park and city planning, defence the personal freedom, private property and open markets, manufacture the public commodities.1.3. ORDO-LIBERALISM REVIEWIt is different from classic liberalism. Economical regularity is social which emerges in an evident process, not natural. Social and juridical standards emerge the economical system.Price, monetarily stability, sciences, stability and durability on economical politics are important to emerging of market economy.Basic aim is bring to existence an economical constitution.2- BASIC ELEMENTS OF MARKET ECONOMYBasic factors are enterprising, competition, economical ideas and attitudes.Enterprising is a person which makes unity the manufacturing factors, makes direct the investments, begins to motion by utilize the signals from internal and external markets, gets the share on productivity and determines the firm profit. Basic aim is profit.Competition is social event, protects the personal, which works with high productivity against to personal, which works with low productivity, uses the sources most effectively. Buyer and seller number must be too much in this system. Competition is opposed to monopolization but necessity laws and politics have to support it. ECONOMICAL IDEAS AND ATTITUDESIt includes price, wage, interest, hire and foreign currency. Price system occurs freely according to rate of request and demand conditions. At this straight, firms and consumers must carry out their decisions freely.3- MARKET MECHANISM FLOW AND ROLE OF SOURCE DISTRIBUTIONConsumers and producers have activities on the market economy. The prices are determined according to the lowest cost and to the highest profit.Ideal special future is high productivity, low profit and high production. Competition reduces the profit to the lowest level.Main mechanism on free market is price. If the relative scarcity is enough, request and demand is more or less equal.Producers and consumers may have a decision according to the price indicator and request and demand. This case makes lead the manufacturing, increases the alternatives, also economical activities make an harmony against to conditions.The evident features of market economy are free decision, liberty on preferences, a great price mechanism and competition. So, economical stability is obtainable.Interferences may apply on the market economy for public health, regulations on economical activities, protect the consumers. These motions are generally precautions to control of drugs and drink manufacturing and consumption, annihilation of harmful on public health, growth the power on economic morals, make grow the quality, regulation on manufacturing and marketing. The state may meddle with economy to development rapidly. For example, the state may encourage the saving, increase the rates of interest, decrease the taxes to get on the saving, provide the precautions on investment.The buyers and sellers cannot determine the price on one's own on free competition market. Otherwise monopoly, trust and cartels may occur, stability may out of order between commodity and services.Market economy may deviate from the rules on two main categories.Manufacturer, buyer and seller may make deviate from the rules. Especially trade unionization is effective on this deviation.The state may interfere in economy by taxes, if social and individual advantages different, it may deviate from competition market.The state is exist in every kind of economy and serves to people with harmony and politics and social philosophies of our age. Also it provides security, education and health services but it doesn't determine the prices. It is one of the biggest manufacturers at the same time.II – HISTORICAL WIEW TO BULGARIAN ECONOMY IN THE TRANSITION PERIOD OF FREE MARKET ECONOMY1. BASIC SOCIAL AND ECONOMICAL INDICATORS1.1. GENERALThe form of government is republic, capital is Sofia, Population is 8.297.000(1997), increasing of population is %0. 7, distinctive characteristics in common with Turkishs, Pomaks, Russians, Gipsies, Tatars, Jewishes are in 16 percent.Estimated agricultural area is 1/3 and woodland is 1/3 of all the land. Charcoal, petroleum, natural gas, ferrum and sources except metal are too much. Bulgaria can't use the money too much on surroundings cause of economical lacks.Too many people are migrated to Turkey reason of economical lacks after communism regime. Population is decreased year by year, but unemployment.2. BULGARIA BEFORE 1989Ottoman empire had governorship on the Bulgaria more 500 years till 1908. Then, Bulgarian Kingdom is founded in 1908. Stamboliyski is in powered from Farmer Party in 1920. A new fascism supporter government is founded but communists and farmers were outside of government.Bulgaria is allied with Germany in 1941. Although a new government was found in 1944, the republican regime with referendum is founded in 1946. The new constution is validated in 1947. Cercenkov is in powered in 1950, relations with U.S.A. were out of order and membership of United Nations was validity in 1955.The new constitution is validated in 1971. T.Jivkow is in powered continually, became arrested cause of irregularity in 1990 and then, again a new constitution is validated. Communist Party is made to take out of only one party. In that year, state's name is changed to Republic of Bulgaria and removed the communist symbols from flag. Privatizational laws are validated with Jelev in 1992. The Government of Videnov is contraried the privatization in 1994.Peter Stoyanov is Nato's supporter and he was president in 1996. United Democratic Forces is in powered with 52 percent of vote after selections in 1997.2.1. COMECON AND COLLAPSING OF SYSTEMComecon is a union that emerged by East European Countries. Bulgarian economy has begun to transition period with some negative ness like other East European countries causes of political incompetence and dissociating end of 1980s.Bulgaria which had more than 60 percent of export to associate but it had couldn't find the new markets cause of inadequate ship of quality standards and had an old technology. Foreign currency reserves are high level. It has too many debts, political incompetent ship in the land. Financial system is not conformity to market economy and also could not claim 2 million dollars of money owing from Iraq because of golf war. So, Bulgaria couldn't save from crisis because of above reasons.2.2 GENERAL ECONOMICAL DEVELOPMENT AND SECTORSBulgarian manufacturing industry basically is founded on textile, wooden engrave, leather products and food prep rationing sectors.Bulgaria had realisation the attacks on the heavy industry that supported by S.S.C.B. after 2nd world war.Production of electro-mechanic and electronic goods in manufacturing sector is reached to an important share since 1970s.The biggest natural wealth of Bulgaria is productive earths. There are not important minerals in Bulgaria.In the following period of 2nd world war, metallurgy and chemical production had an importance. Industry sector had old technology. Its competition is losted the power with disunited of the Comecon.Productivity rates on industry are grown with economical reforms that started in 1979. Economical growing is dynamically continued in spite of reducing the productivity on agriculture sector, building sector and investments in Bulgaria. Especially, price volatility on agriculture sector is a reason of suspicion about real value of growth in 1988 according to 1987.Productions on agriculture and industry of Bulgaria are reduced according to statistics. Main problem on agriculture sector is delivery prices of goods.A stagnation indicator on Bulgarian economy is weakness of building and construction sector. Manufacturing products such as cement and weawing is in necessity. Manufacturing level is inadequate on that area and also unqualificationed organisations have been affected.2.3 - FOREIGN TRADEThere are no definite results on foreign trade reason of inadequate of numerical data's.However, export is increased up to the rate of 4 percent in 1988 and import is reduced to the rate of 1.8 percent. Bulgaria finance deficit is 600 million dollars result of trade with west countries in 1998. Tourism revenues are positive. Trade connections with Turkey are weak according to another East European countries.2.4 – PERESTROICA POLITICSThe new age on economy with state council's decision is started in January 9,1989. Activities to get the indepences of firms are velocitied. At the same time, this decision is more benefit to foreign investors too.3. 1989 – 1997 TRANSITION PERIOD3.1 – ECONOMICAL REFORM ACTIVITIESAlteration is started in east block countries after 1989 and together with this alteration. Comecon is losted the activity. So, idle capacities are commenced and Bulgaria is losted the production markets.The reforms are making started by new government in February 1991. External trade regime is liberalisation in one direction; this is one of the import nest factors of the reforms. With a decision is accepted in 1989, basic of economical reforms are occurred. Firms had equal rights to execution of economical activities. The laws related to foreign investment are validated in 1992.Commercial banks have gone to consolidation. Prices had freed except 11 basic consumption. Economical activities, government status on economy, foreign trade and foreign exchange regime, price regulations, privatization, tax systems are reorganized about foreign investors.3.2. SECTORAL CONSTITUTIONIndustrial sector had the over 50 percent of share on economy until 1990s. 11 private sector's share with service and trade sector approached to 60 percent between 1992 and 1997.SECTORSProductivity with old technologies on industrial sector is at low level. Engineering sector is developed. Products of textile sector are manufactured at high quality.CHEMICALSChemical products that have an important mark on export of Bulgaria. They were 1,096 milliard dollars with 22,3 percent in 1997 and 983 million dollars with 19.4 percent of total export in 1998.AGRICULTURE, FOOD AND TOBACCORate of plan tablelands are 34 percent in Bulgaria. Totally 304 firms are active on food, drink and tobacco sector.METALLURGY AND MINERSHIPIron product is 6.2 percent and other than iron is 6.8 percent on all of industry in 1998. In 1997, metallurgy sector is grown up to 117.2 percent with 529 million dollars in total amount of export in Bulgaria.MACHINEShare of machine sector is 13.8 percent in all of industry. Principal are; Machine parts, tractor, bus, ship, building and auto spare parts.CONSTRUCTIONPrivate firms in the sector have share with 13 percent in 1991. That share is grown to 62 percent in 1995 but then; it is reduced reason of financial inadequate ships.TOURISMTourism revenues are approximately 280 million dollars in 1995.4.5 million of transits and totally 8 million tourists are visited the Bulgaria in 1996.3.3. TRADE AFTER ECONOMICAL REFORMSExport of Bulgaria is totally 4.9 milliard dollars in 1997. The import nest export products are fuel oil, other fuels, cooper and its products and nuclear reactors. Import is 4.5 milliard dollars in 1997 and included the product such as mineral fuels, nuclear reactor heaters and spare parts, electric machines, mineral substances, cotton, synthetic fibres, cereals, auto and tractors.3.4. EXTERNAL DEBTSRate of the external debts to export revenues were 249.9 Percent in 1993 but then, back to 188.2 percent in 1994.Official external debts were 10.363 dollars in the end of 1997.3.5. FOREIGN INVESTORS EXTERNAL CAPITALMost investments with 636.2 million dollars by foreigners are made in 1997. This amount is 526 million dollars in 1998. Principal foreign investors are European countries and U.S.A. A new foreigner investment law is prepared in Oct 1997. Main sectors to investment are industry, trade, finance and tourism.3.6. COMMERCIAL BANKINGState banks are privatization by associate. Regulations relate to control of banking are valitidied by government. In the middle of 1997, a new law on banking are validated after economical crisis in 1996, Central Bank Law are rebuilt. High levels of capital and capital qualifications are obligationed.3.7. PRIVATIZATIONPrivatization is started with foundation transformation and privatization belongs to state and municipalities in April 1992. Privatization Agency is built-up. Privatization is realization with totally 836 million dollars between Jan 1,1993 and Dec 30,1998. Its part of 421.4 million dollars is in 1997 and part of 116 million dollars is realization in 1998.Foundations like ports, telecommunication and, etc.are out of privatization by laws. 95 percent of state firms transformed to form of private limited or nationalization. Share of these firms are belong to state.III. BULGARIA IN EUROPAN UNION AND CONNECTIONS WITH TURKEY1. BULGARIAN ECONOMY AND CONNECTIONS WITH TURKEYTest and certification operations, metal products except iron, chemical products, cereals, operational petroleum. Products are important substances from Bulgaria to Turkey.Although weaving products, food, chemical products, leather and stout leather products, glass, ceramics, brick products are ones of important from Turkey to Bulgaria.1.1. CONTENTS OF FREE TRADE AGREEMENT BETWEEN TURKEY AND BULGARIAAll taxes and restrictictions on industrial products by signed on European Agreement between European Union and Bulgaria in Mar 8,1993 and validated in Dec 31,1993 will be removed till 2002.Turkey and Bulgaria made easy to particularization into agricultural products market by reduced the taxes for between their selves.End of signed acts, 131 products of 446 that stated to Turkey and 1141 goods of existing on European Union Agreement are liberalization by remove from list of sensitive products.Foreign companies had a partnership rights with corporations and individuals and also foreign individuals had a right on economical activities by law of keeping foreign investors, which is validated in 1992. Same economical rights are recognized between foreigners and Bulgarians and also getting unlimited share from exist companies and companies that will be found.2. CONNECTIONS WITH EUROPEAN UNION AND FINANCIAL PORTREIT OF BULGARIA2.1. CONNECTION WITH EUROPEAN UNION OF BULGARIAIn the autumn 1989, Berlin wall is demolished and this motion make united the European that had divided to east and west after 2nd world war. Comecon's mean is continuing the economical dependent ship to Soviet Union. But, most east and west European countries reject it. After these European Union augmented economical and political supports to that countries reason of carry out and conclude the reform, which is started in middle and east European countries.Firstly, a group includes the Turkey is formed by 24 of OECD countries. G24s are transferred to entrust with coordination of support to the European Union Commission.That commission is functionizationed the Phare program that helps on financial and technical areas to Poland and Hungary. Bulgaria, Czechoslovakia, Yugoslavia and Romania in Sept.1990, Albanian, Estonia, Leetonia and Livonia in Jan.1992 and Slovenia in Aug.1992 are included by Phare program.Military regulations on security of West European losted the importance but they are already securely areas.Main political aims that related to Middle and East European countries of European Unions are explained below;a- Encouragement of liberal democratic system with respectful of law's superiority.b- to be sense on surroundingsc- to prevent the ethnical collidesd- to prevent the migration to foreign countries at the west.e- Phare program and encouragement of free market economy from planned economy.2.2. WHAT IS THE PHARE PROGRAM?Phare program's aim is build the encourage mental conditions to the market economy and to take pains about investments on economies of Middle and East Europe countries. This program includes unfinancable fields by traditional external supports. That supports on the program is formed by credits and encouragements and used for pilot projects related to reorganization of associations.Bulgaria is taken a support of 10.6 millions ECU by include of Phare program.European Union don't use only Phare program as a tool on politics related to Middle and East Europe countries, except itIncludes the programs within own constitution such as ERASMUS and COMETT.2.3. FIRST PERIOD (before 1989)In this period; trading is developed between Middle and East European countries that named as COMECON COUNTRIES but couldn't show the same developments against to West Europe in European Union.Soviet Union takes the priority on exporting with countries. Bulgaria is the develop pest country on trade with Soviet Union.2.4 TRANSITION PERIOD (1989-1992)The great changements occurred on trade in Soviet Union and Middle and East Europe countries from starting the reforms in 1989 to 1992.From 1989,trade and partnership agreements signed with Hungary and Poland then, with Czechoslovakia in 1990,also Bulgaria and Romania in 1991. At the same time, rejection is started on amount of restrictions. Exporting is increased between Middle and East European countries, Soviet Union and European Union other than below too;Devaluation in the countries other than Hungary,- Workings to join into the West European markets reason of re-emerging the losted ones in East European- Import is on peak-level from those countries to Germany after unitized the East and West Europe.2.5. EUROPEAN AGREEMENTSEuropean agreements are acted end of 1991.Bulgaria-Europe agreement's date of signature: Mar8, 1993Date of being inforce: Dec 31,1995Temporarily agreement: Dec 31,1992European agreement has been in force in Bulgaria, end of 1995. European agreements are partnership agreements that signed by based on 238th paragraph of Roma agreement and Maastricht agreement. According to that state, increasing of export is an prestipulation to growth the economy with stability.3. SUCCEED OF STABILITY PROGRAM IN BULGARIABulgaria signed on an agreement with IMF to pass over the economical hardships and started the reforms in 1991.Economy is grown at the rates of 2.1 percent in 1995.In 1997,economy has the new crisis related to Yugoslavia crisis and so, Bulgaria signed on a new agreement with IMF.Leva is fixed with 20 DM and 1000 Bulgarian Leva to 1 DM and constructral reforms is started to gain the speed.Economy in Bulgaria grown to positive from 1994 but to the 10.9 percent in 1996.- Inflation rates (%) in Republic of Bulgaria; 1992 1993 1994 1995 1996 1997 199882,2 72,8 96,2 62 123,1 1082,3 22,3After the stand-by agreement with IMF, inflation approached to 22.3 percent in 1998.Annual average of inflation is expected as 7.3 percent in 1999 and 9.0 percent in 2000.Bulgaria is the poorest country according to other east European countries candidate to membership of EU. Bulgarian Leva is determined by rejected the 3 zeros from Detsch Mark. So, new Leva is make related on euro at the rates of 1.95583:euro 1 (Lvl:DMI ).CONCLUSION:Bulgaria is declared the moratorium reason of hardness's to find an external debt, to refund the capital and interests of external debt.While external debt is 10.6-milliard dollars end of 1990,it has been 12.2 milliard dollars, end of 1993. So, started to paces towards to market economy in Feb 1991. Annual inflation is reduced from 338.5 percent in 1991 to 79.4 percent in 1992.The debts of managements of state are ruined the budget and also a reason to broken balance on economy too.The crisis on foreign currency is occurred in Mar 1994. Reforms have been out of control at the result of that crisis.Leva is devaluated as 100 percent and inflation is reduced to 90 percent on annual average. At this parallel, financial and revenue politics, money and its value are controlled. The debts to foreign countries are decreased to 9.8 milliard dollars with precautions in 1994 and end of 1996.Financial balance are obtained again in the first months of 1995, reduced the inflation and also rate of interests to 72 percent.Rate of exchange (Leva/$) was 503 percent between Jan 1 and Feb 12,1997. Especially, that increasing was 20-percent/each day in Feb 1997.Rate of interest was 300 percent in Sep.1996. 14 Banks are bankrupted in that period. Bulgaria had been 1st of the world from inflation increasing speed of view.Inflation, devaluation, unemployment and also wages are on the lowest level in transition period in Bulgaria. Incoming per person is decreased 50 percent between 1989 and 1995.Annual criminal events are increased 3 times more after 1990. Money committee had formed by advice of IMF in Jul 1997. 1Deutsche Mark is indexed on 1 Leva.Qualified personnel with educationed on technical areas is a great potential force of Bulgarian economy.Bulgaria will be completed the transition period when it became to membership of European Union.