I. INTRODUCTION

Regional development can be defined as a system which they consist of physical and

relational values in accordance with globalisation process. Regional development plans

aim to decrease disparties among regions and the plans are supported with investments by

government and specialized institutions.

Organized Industrial District become a development tool since 1960. 5 year

development plans consider to Organized Industrial Districts. Especially, primarily

development regions are specified and strategies are improved. The strategies are

localized and land use plans are prepared in accordance with industrial districts that

includes residential areas, education facilities and public services.

II. IMPORTANCE OF REGIONAL DEVELOPMENT ON REGIONAL PLANNING

A. DEFINITION OF REGIONAL DEVELOPMENT

Disparities of resource allocation (natural resources, qualified work force, knowledge

production and usability of the knowledge, social-physical-economic infrastructure etc.)

and differences of historical, physical, structural and organizational characteristics of

society cause to problematic and potential areas in countries. Regional planning is an

instrument which helps these areas to integrate to each other in terms of economic, social

and physical aspects. In brief, main aim of regional planning is to prevent the disparities

among the regions. Regional Plans and Strategies are important interface which embody

physical expression of national priorities and policies within regulatory strategies in order

to respond to the requirements of local scale. Regional planning, which revealed local

priorities clearly, elaborates sectorial programmes/actions in the national context that will

provide spatial integration. In this context, regional planning cannot be separated from

the development concept (Doğan, 1997). Regional planning, which play an integrative

role, would be successful to degree that integrates various actions with a strategic

perspective that is common opinion. Past practices show that regional planning is an

indispensable instrument to achieve the national and local aims (Roberts, 1996).

Regional development foresees economic development in the projected region or

sector by increasing investment level. The regional development requires with investment

decisions influence from various instruments and institutions. For that, revealing

economic potential of region and common use of specialities make development process

to accelerate (Arslan, 2005).

B. REGIONAL DEVELOPMENT PLANS IN TURKEY

1. General Overview of Regional Development in Turkey

According to Atlan, regional development approach is evaluated by dividing into

three periods. In the first period, from foundation of republic until 1963, ignored regional

development was not regarded as an instrument of development, and it was counted as

instrument of construction. Planning and its main aim are defined as construction of

settlement. As a result, industry and service sectors are clustered in the west of Istanbul.

In brief, regional science is neglected. Second period begins with planned development

and continues to 1999 Helsinki summit of the European Council where Turkey was

officially recognised as a candidate for full membership. In 1963, regional planning

approach changes, and regional development becomes priority with beginning of the

planned period. Integrated planning approach, which examines physical, social and

economic dimensions are examined with each other, make applicable. Final period come

from Helsinki decision and continues until nowadays (Atlan, 2007).

In Turkey, from 1960s, regional development policy is applied, that includes Five-

Year Plans, Integrated Master Plans, Rural Development Projects, Investment Incentives

and development priority zones, Small Industrial Building Complex for Organized

Industrial Sides and small scaled operations.

In addition, the most common used tools for regional development is incentive system

according to local and sectors. This system, this system is applied at different rates

according to development of regions. Other than incentives in Turkey, the main tool used

is public investments. Investments for public services and infrastructure are seen as

effective tool in terms of economic development. However, public investments lost their

effectiveness. This is not used as tool to provide regional investments. In result, private

investments get an importance for industrialization. Organized Industrial Districts are

used as a tool which affects to location of industry and supports to regional development.

In 1961, benefits of industrialization are specified with researches. With these studies,

Bursa is a pilot area for first industrial organized district and “Organized Industrial

District” fact takes a place in First Development Plan (1965-1969) although it is applied

before preparation of plan. Following 20 years, organized industrial district plans are

completed in 6 districts (Bursa, Gaziantep, Eskişehir, Konya, Erzurum, Manisa).

2. Regional Development Plans in Turkey

a. First 5 Year Plan (1965-1969)

In development process, this plan defines regional politics and this topic is examined

with details. The regions are grouped according to development levels.

This plan aims to people living in less developing districts with low income level are

encouraged economic development.

This is emphasized that industrialization is increased and balanced development is

provided in regions.

Government takes the responsibility.

“Incentives for industry” is main consideration to provide productivity in industry

and increases of regional development by choose industrial districts and create

regular industrial region such as Bursa Organized District.

b. Second 5 Year Plan (1968-1972)

Aims and strategies of the second 5 year plan are emphasized more than first plan’s

in terms of regional development.

Industrialization gets a rapid process and this situation should be continued.

Mutually complimentary districts choose their location in industrial districts with

enough infrastructure facilities.

Also, less developed districts are primary to develop.

In less developed regions, centres which enable to use engine power are specified.

Regional layout plans must be prepared to lead to sectorial activities and increase

economic and social development.

c. Third 5 Year Plan (1973-1977)

While first and second plans give an importance to provide regional development,

third plan defines relationship between industry and urbanization.

To specify primary development regions, sort of development are prepared with

socio-economic index.

Organized Industrial Districts coordinates physical planning and urbanization.

Municipality disciplines are founded around Organized Industrial Districts and

public industrial facilities.

Industrial Districts get new functions such as industrial incentives and spatial

organization.

d. Fourth 5 Year Plan (1980-1984)

It aims to decrease disparities among districts with consideration of general overview

of country rather than districts.

Specialization Commission is founded in this period. Credits are controlled and

primarily industrialization regions complete their process.

Organized Industrial Districts are combined with heavy industry facilities and

industrial settlements.

e. Fifth 5 Year Plan (1985-1989)

It is aimed to develop balanced, planned and regular allocation of organized

industrial districts.

It is handled location, planning and negotiation of the district as a whole process.

Residential areas and accommodation facilities are encouraged in the districts to

construct small scaled industrial sites.

f. Sixth 5 Year Plan (1990-1994)

With “Regional Development” and “Settlement-Urbanization” sub-topics, land use

plans are developed in location of industries.

Small Scaled Industries can be located around the districts when there is a need.

Special education centers are developed for industry employees.

All developments should be continued with complimentary.

Manufacturing creates competitive and extroversive.

Developments are oriented international large scaled manufacturing institutions.

g. Seventh 5 Year Plan (1996-2000)

It is encouraged existing facilities to move to organized industrial districts with less

density.

Except compulsory situations, investments are only concentrated in less density

areas.

Facilities to found Specialization Commission are accelerated in the areas which are

defined as “developed and normal regions”.

81 Organized District Projects are mentioned.

h. Eighth 5 Year Plan (2001-2005)

In this plan, information and technology are important facts.

It is aimed to develop competitive politics against to abroad.

Industries, which can improve technology, are founded by using local resources and

benefit from qualified labour force.

i. Ninth 5 Year Plan (2007-2013)

Economic growth and social development is continued steadily.

Strategies are defined as;

- Increase of competition

- Rise of employment

- Strength of human development and solidarity

- Consider of regional development

- Increase of public and education facilities

III. Industry as an Instrument of Regional Development

A. The definition of Organized Industrial Site

Organized industrial site is good and service product field that procure proper place

for industry, orientate the urbanization, benefit from knowledge and informatics, developed

and settled the manufacturing industry type in a specific plan with preperation of required

infrastructure service, social institutions and technoparks. The Organized Industrial Zone is a

system that offers easier and more competitive production for medium and small size

operations that cooperatively manufacture products, by utilizing common substructure

facilities on a well planned site.

B. Importance of Organized Industrial Side in Regional Development

The regions are very important tools for the development process in the earth. The

main aim of regional development is minimizing the inter-regional socio-economic

differences, developing the national resources in terms of the highest social and economic

benefits, gaining the spatial dimension to the sectoral politics with considering the interaction

among the economic, social, cultural and spatial politics.

Organized industrial sides are the very important tools for regional development. With

the planned era in Turkey, 1962, organized industrial sides started to established and they are

started to benefit the this potential for regional development. The main aim was developing

the underdeveloped country with attracting the industrial investments to the regions. In 2000,

some precautions were taken with ‘Organized Industrial Side Law’. With this law, some

important authority assigned to organized industrial sides and also important steps were taken

for increasing the capacity of these organized industrial sides.

Today, organized industrial sides are critical tools for, providing development of small

and medium size of enterprises, providing production and marketing opportunities to

development of small and medium size of enterprises, providing the balanced development in

regions that differentiate in terms of economic, taking the indstrial area out of the city and

providing them planned and programmed settling, regulating the relationship between

urbanization and industrilization with removing the bad affects of industrilization to the cities.

(Çetin & Kara, 2008). Organized industrial sites provides collaboration, specialization, quality

improvement, customer satisfaction, cost reduction, provide convenient for infrastructure in

terms of electric, water, energy, transportation, provide advantages for education, health,

production. According to these information, organized industrial sides can have many

important task in regional development so extending and increasing the both quality and

quantity of organized industrial side is very important issue in regional development.

All organized industrial sites’ implementations actualize with Ministry’s subvention

and supervision. Industrialists come and establish their business in organized industrial sites

that providing infrastructure of the road, drinking water, utility water, electric,

communication, purification plant. With this situation unplanned industrilization can be

prevented and the economy of the country can be developed. Also organized industrial sites

provide employment so the immigration can be decreased.

As well organized industrial sites contribute environmental quality increment with the

movement of the industrial areas to the specific regions that controlling industrial and waste

disposal, having completed infrastructure.

Organized industrial sites have an importance for urbanization and industrilization.

Organized industrial sites regulate relationship between urbanization and industrlization with

inciting the industrialists that can not develop inside the city and attract them to the region.

Today, economic development and industrial development based on organized

industrial sites, are showing parallelism. Also these two influence each other in the process.

Also organized industrial site areas are influencing the structure of urbanization, demographic

movement and procuring increment in education and life standarts . So with these they

continue to provide benefit for near environment.

C. Organized Industrial Side Implementation in Turkey

The starting point of the organized industrial sides relied on the requirement of

planned industrial sides and their development. The first examples of organized industrial

sides were seen in 19th century in England and after the beginning of the 20th century

America and other developed countries started to use the organized industrial areas.

Organized industrial side implementations started in 1962 in Turkey. In all

development plans organized industrial sites were used for industrial and regional

development. With the effort for planned industry in Turkey, the idea of organized industrial

sites came into prominance.

In 1961, some researches were made for prepared some report about the benefit of

organized industrial sites to industrialists. After this report, the project that about the

implementation of organized industrial sites were made in Bursa. The area that was thought to

be full at least 15-20 years, was fulled 70% right after few years that finalzing of

infrastructural system.

Organized industrial site concept was took apart in first plan and became legal in

Turkey. As from 1964, the plan of Manisa, Konya, Bartın and Ankara’s organized industrial

side was made after the implementation of organized industrial sites in Bursa. Organized

industrial sites were started to spread with these imlementations In 1983, six region was

completed and four regions were added in 1988.

70 organized industrial site project was completed between 1962-2000 and 73

organized industrial project was completed between 2003-2010. From 1962 to today, the

number of organized industrial sites are 147. Total area of these organized industrial sites is

27.542 hectar.

(Source: OSBÜK, 2009)

The map shows the province that have organized industrial sites which covered more

than 1000 hectar and active. The existing big organized industrial sites are located in the

provinces which industry is already spreading.

(Source: OSBÜK, 2010)

The map shows the active organized industrial sites number in provinces.

The formation of organized industrial sites in development plans:

First Five Year Development Plan (1965-1969)

I. Five year development plan aimed industrial investment in region which were

underdeveloped and had low level of income. The implementation tools for the process

that suggested by development plan were provided the social justice between regions, hold

the capital in region,reduced the foundation and manufacturing cost for providing the

capital flow from developed regions, provided the cheap infrastructure opportunity,

providing some credits and tax discount.

Development plan emphasized the industrilization in Turkey’ long term development.

Development Plan forseen the selection of the regions and established the regular

industrial settling for increase efficiency in industry and provide balance regional

development. Bursa Organized Industrial Region was established in this period.

Second Five Year Development Plan (1968-1972)

This development plan was more emphasized industrilazition issue in comparison to I.

Five year development Plan. According to plan, İndustrilization was the must that can be

provided rapid development in this period.

In this development plan era, the prior sector was manufacturing industry.

Industrilization and stimulation of industry were the main issue in development plan.

In this plan organized industrial site term was used. There were some incentives given for

development and established of these sites. The development points that can be influenced

their environment, want to be created in development plan.

Third Five Year Development Plan (1973-1977)

The main issue in this development plan was the relationship between the urbanization

and industrilization. Organized industrial site term was used clearly in the plan. The

regulatory role of Organized insutrial sites in terms of urban development and physical

planning was emphasized in Plan. Not only the role of regional development tool but also

industrial incentive and spatial regulation features of organized industrial sites were the

issue for the development plan. In this development plan, Erzurum, Tekirdağ-Çerkezköy,

Bilecik, Kars, Bursa-İnegöl and Mardin organized industrial sites were considered.

Fourth Five Year Development Plan (1980-1984)

Organized industrial sites were seen the tool for development of underdeveloped

regions. Heavy industry facilities and comprehensive industrial settlings were intagrated

with organized industrial sites. Also the duties that organized industrial sites management

and also the solution of problematic issues about organized industrial sites, were given to

Industry and Technology Ministry.

Fifth Five Year Development Plan (1985-1989)

The regional development diagrams in site selection was based for organized industry

and also the sectors that located in organized industrial sites was developed according to

the characteristics of the settlements. These issues were became the policy of fifth

development plan. Incentives for residential in organized industrial sites, establishment of

small industrial area in settling which have organized industrial sites, were made in plan.

Sixth Five Year Development Plan (1990-1994)

Land use plan for the area that industry can be settled, planning small industrial sites

near the region if required and the educational center for the organized industrial sites’

workers were the main issues for sixth five year development plan.

Seventh Five Year Development Plan (1996-2000)

Encourament for the movement of the existing industrial sites to the organized

industrial sites, Not to give any support for the industrial incentives in place where

organized industrial sites load factor was low. The organized industrial sites constructions

must be finished rapidly in the region that had priority in development.

Specialized organized industrial sites must be constructed in areas that defined

developed by the plan. These areas must be organized to use the new technologhy. Also

some regulation must be made for AR-GE activities and üniversity-industry collaboration.

Eighth Five Year Development Plan (2001-2005)

The development of organized industrial sites that having infrastructures, generalize

the organized industrial sites in country that have importance because of employment are

the important issue for the eight five year development plan.

Planning of the industry that attached importance to research and development and

can be developed the technologhy, were encouraged with using the local resource.

Nineth Five Year Development Plan (2007-2013)

Generalizing the vocational education in organized industrial sites that constituted

aggregation is one of the issue in development plan. Organized industrial site which were

under construction, must be finished and opened for industrialists rapidly is another prior

policy in development plan.

In developmen plan the incentive and regulative features of the organized industrial

sites were based on and the aims are specified according to these features. Organized

industrial sites was evaluated the incentives tools in terms of providing planned and prepared

infrastructure for enterpreneurs. Organized industrial sites was seen spatial incentives. Also

organized industrial sites were used for the solution of regional disparities. In addition

organized industrial sites made industrial institution more planned and regular. So these sites

contributed to the planned urban development.

The number of organized industrial sites started to increase in fifth five year

development plan period. In sixth and seventh five year development plan the number of the

institutions reached the highest number.

Although the development plans emphasized the balanced between region while site

selection for organized industrial sites, this issue did not consider while in selection. The

incentives concentrate in specific regions. Also in seventh five year development plan some

organized industrial sites were constructed in pointlessly. Organized industrial sites

concentrated mostly Aegean, Central Anatolia and Marmara region in terms of number and

areal.

D. Aim of Organized Industrial Sides in Turkey

Organized Industrial Site policies is very important tool for hold the capital in region

and used it to local industry. Because of this feature organized industrial sites can be used for

decreasing regional disparitirs and developing the region. So organized industrial sites ared

used since planned period to today.

The aim of the organized industrial sites are;

Providing proper field for enterpreneurs,

With encouragement of infrastructure and exterior benefit, they increasing the both

competition and profitableness,

Providing rapid industrilization and generalizing the industrilization in to nationwide,

Using for spatial regulatory and preventing the uncontrolled urbanization,

Balanced the economic development in nationwide and balanced the regional

development,

Decreasing the migration to the big cities,

Providing standardization,

Having own management system with state supervision,

In brief, organized industrial sites aims are providing planned industrilization, balanced

regional development and systematic urbanization.

IV. Relations between Organized Industrial Side and Regional Development

A. Isparta Organized Industrial Side Example and Relationship with Regional

Development (Süleyman Demirel Organized Industrial Side)

Isparta is one of the province that located in TR61-Antalya sub-region. According to

2003 development level ordering results Isparta is 26 in line.

Socio-Economic Development Profile of Isparta

According to 2003 socio-economic development profile of Isparta, the city is under

the Turkey average in terms of GDP. But other economic values, exportation and importation

per person are above the average of both Turkey and Mediterranean Region. In Education and

Health category Isparta is above the average in both categories. But if we look at the

employment of the region Isparta mostly below the average of the Turkey and Mediterranean

region.

If the economic profile of the province is evaluated, Isparta’s economy base on the

agricultural sector. The main branch of industry are carpeting, sulphur business, forest and

furniture, leather trade and food industry.

There are 4 organized industrial sites in the province. These are Süleyman Demirel

Organized Industrial Site, Isparta Leather Organized Industrial Site, Yalvaç Organized

Industrial Side, and Organized floriculture Industrial Side. Organized industrial site studies

mostly actualize betwee 1992-2000. With the Süleyman Demirel Organized Industrial Site the

capital moved to incentive rapidly. There are 30 institution active in area. Also other 38

institutions is in project or construction period.

There are 7 small industry site provide 1.762 workplace that are planned and healthy

situation for employee. Also a part of Isparta Organized Industrial Site is tried to become

Industrial Region. If it is hapenned region have important opportunity for development.

General Profile of Firms in Organized Industrial Area

According to the distributions of the firms in organized industrial area most dominant

sector are woodwork and textile.

The table shows the scale of the firms base on the worker number. According to the

results, firms are mostly small in scale in organized industrial side. Textile firms in organized

industrial sides consist of big and medium scale. So the textile sector have an great

contribution for the regional employment.

Also the most deep scaled firms in organized industrial site is woodworks and textile is in

second.

The activity area of the firms in organized industial site mostly in nation or

international. This shows that the firms made exportation. So nation and internatonal market

is very important for the firms.

Also the use of capacity is important for the economy. According to existing situation

most of the firm work more than 50% capacity. Other firms capaciy is mostly between 25%-

50%. Plant-mixed concrete 70% and textile sector 68,5% have highest capacity than other

firms.

There are some reasons for low capacity in firms. According to the survey results which

made with firms’ workers and owners, the main reasons for this low capacity are rising

product cost, insufficient home demand and rising competition with import goods.

If the firms last 5 years economic performs evaluate:

Tendency in production amount,

Increasing production cost between 2002-2004 and steady in last two years,

Rising employment volume,

There is no alternation in investments,

Rising domestic product sale in parallel to rising production can be seen.

Also some questions were asked to the firms to evaluate impact of organized industrial

sites to the regional development. The main functions of organized industrial sites impact

level asked to the firms and wanted them to evaluate these functions. According to survey

results, except the one functions of organized industrial sites all other functions actualize in

the site. Only the function, ‘help to use the agricultural land in industry’ was get lowest point

that shows the low impact of agriculture on industry sector.

With these results it can be said that the Süleyman Demirel organized industrial sites

have effect on regional development but the effect level is not very high. Also the results

show the importance level of the organized industrial side functions according to the firms.

Organize industrial sites are very important factor for regional development but

organized industrial sites that try to actualze since 1960, have limited contribution for nation

economy. The research about the Isparta’s organized industrial site also shows the same

situation. Basically, Isparta’s dominated sector is agriculture but according the survey result

agricultural potantial of the district do not use in industry. Other functions are operated in low

level in contrast to high potential in firms. The reasons for regression is that;

Inadequate incentive by states

Non-operative incentive system

Lack of collaboration

Failing in site selection

Inadequate infrastructure system

Inadequate technological use

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