James Burnham

FULBRIGHT SCHOLAR

Visiting Professor
(Duquesne University)

Project Statement : Economic Development and Telecommunications Revolution " The Case of Turkey "   [click for the project proposal]

Short Vita   [click for the short vita]

Communication Details :

Education :
B.A., Princeton University
Ph.D., Washington University

Awards and Publications :
Murrin Professor in Global Competitiveness
He has also served as U.S. Executive Director at the World Bank

Research Interests :
Domestic and international financial markets and institutions; international trade policy with special attention on the steel industry; local government finance.
 

Short Vita

Murrin Professor of Global Competitiveness

Donahue Graduate School of Business

Duquesne University

Pittsburgh, PA  15282

                  Phone: 412-396-5118 Email: Burnham@duq.edu

Before joining Duquesne University in 1990, Burnham was staff director of the President's Council of Economic Advisors and Special Assistant to Chairman Murray Weidenbaum(1981-1982), U.S. Executive Director at the World Bank (1982-1985), and a staff member of the Federal Reserve Board in Washington, D.C.  He has also served in a variety of capacities at Mellon Bank (1971-81, 1985-88), including Senior Vice President and Manager, Global Treasury and Chairman of the Bank's Country Risk Committee. He has studied, worked and traveled to over 40 countries.

Dr. Burnham is a graduate of Princeton University (AB, 1961), and Washington University (St. Louis) (Ph.D. Economics, 1970). He was a Fulbright Scholar in Brazil (1962).  In 1989-1990 he was the John M. Olin Visiting Professor at the Center for the Study of American Business at Washington University, St. Louis. He is a member of the American Economics Association and the National Association of Business Economists.

At Duquesne University, Burnham teaches in the Donahue Graduate School of Business MBA program as well as in undergraduate finance courses. Recent publications include:  

Why Ireland Boomed. The Independent Review, Spring 2003

Risky Business? Evaluating the Use of Pension Obligation Bonds.  Government Finance Review, June 2003.

Pittsburgh's Pension Plan:  The Black Hole That Won't Go Away.  Allegheny Institute Report 02-11, October 2002.

Pennsylvania and International Trade: Current and Prospective Issues.  Pennsylvania Newspaper Association Seminar, September 27, 2002.

"Understanding the Multilateral Development Banks," paper prepared for the Adam Smith Institute's Co-ordinated Reform Agenda Management Programme in London, October 2001.

Project Statement

PROJECT STATEMENT

"Economic Development and the Telecommunications Revolution:

The Case of Turkey"

Background

This project continues a long-standing interest of mine in economic development issues, dating back to the period when I was a Fulbright student in Brazil (1961-1962), immediately after college graduation. Although my career did not take me initially into the academic world, my time spent in international banking (Mellon Bank and at the World Bank/International Finance Corporation) continued that interest in many ways.

Since I took up full-time academic responsibilities in 1990, I have spent an unexpected amount of time in developing countries - Nicaragua, the Dominican Republic, China, Pakistan, etc. - teaching, giving seminars and working with universities and schools interested in U.S. business education and forming alliances with institutions such as Duquesne University.

The significance of low cost global telecommunications was first apparent to me when I was in charge of Mellon Bank's global foreign exchange system, 1985-1989. After I assumed my responsibilities as the Murrin Professor of Global Competitiveness at Duquesne University, I was able to devote time to studying the further development and the creative/disruptive implications of this technology. My popular course for MBA students, "Issues in Global Competition," has provided a structured incentive for me to keep fully abreast of developments in this sector.

This interest has also resulted in the publication of two papers. The first, "Global Telecommunications: A Revolutionary Challenge" (1998) looked at the broad implications of low cost telecommunications and some of the issues involved in "electronic exports," e.g. the globalization of services. The second paper, "Why Ireland Boomed" (2003), looked at the remarkable decade of growth in that country in the 1990s, emphasizing the critical role which telecommunications (and associated government policies) played. This paper benefited from substantial research in Ireland.

Importance of the Project

In the mid-1990s, analysts studying developing countries, such as Forge (1995) and Braga (1995) drew attention to the potential export-related gains that might be available if modern telecommunications were deployed and priced competitively. Writers such as Caimcross (1997) explored the Subject at a more popular level.  Some academic researchers have focussed on the broader economic implications of investment in the telecommunications sector using a combination of micro and macro modeling techniques (Roller and Waverman, 2001).

While a number of analyses (in English) of the state of Turkey's telecommunications sector have been made (Wolcott'and Cagiltay [2001] and OECD [2002b]), most have focused on the difficulties in restructuring the institutional framework for the sector. I am not aware of a recent systematic analysis of the extent to which Turkey has taken advantage of the opportunities offered by fully-deployed, competitively priced telecommunications services. Such an analysis, as is proposed in this

project, should be valuable to researchers and policymakers in Turkey. It should also be of interest to all those interested in the economic development process.

Research Activities

Some parameters for studying trends in Turkish telecommunications relative to other countries are available via OECD and International Telecommunications Union statistical publications and studies {cf OECD 2001 and OECD 1995). This part of the project can be completed before leaving for Turkey.  However, such publications do not have extensive cost and pricing trend data that can be extremely useful in analyzing economic impacts of different telecommunication services. Collection of time series data of this sort would be a building block in the project.

The heart of the project is to identify key sectors of the Turkish economy that have taken or could take full advantage of low cost telecommunications. Such actions within a sector include attracting investment (domestic or foreign), extending markets (domestically or internationally), lowering costs or adding value in some way. Illustrative candidate sectors for examination include: tourism, agricultural exports, education, textiles and apparel, and software. Of particular interest is the extent to which timely pricing information is being made available to small and medium sized enterprises in agriculture and fishing. The large-scale distance learning program at Anadalou University in Eskisehir sounds especially worthy of study.  No doubt other sectors will be identified in the course of my project. Employment, production, trade and sectoral national income data would be used to help quantify impacts.

A key step in examining each sector is to study the "interface" between the sector and the providers of telecommunication services - how pricing and services are influenced by laws and regulations governing competition, the number of competitors, and other restrictions or subsidies. In addition, institutional issues such as the role played by trade associations, unions and consumer groups may be relevant.

In-country research will address all of the above areas. Initial priority will be on obtaining a better understanding of the present structure and fabric of the Turkish economy. Then, I would collect detailed data on sectors relevant to, my research.  Subsequently, a series of well-prepared interviews with academic authorities, government officials, and business people dealing with each sector will be carried out. A certain amount of in-country travel will be necessary.

It is not clear at this point if sufficiently extensive and reliable quantitative data can be assembled to adopt a robust statistically-oriented approach to the issues involved.  However, enough core data should be available to provide the basis, in conjunction with a carefully design interview program, for substantive conclusions.

I have some initial personal contacts with business people in Istanbul and Ankara who have indicated a willingness to help me establish useful contacts.  I have also identified two applied research centers in Turkey that could be extremely helpful in implementing my^ research plan: the Center for Economics and Econometrics at Bogazici University and the Economic Research Center at the Middle East Technical University. Affiliation with one of these two institutions could be extremely useful. Yeditepe University is another institution that Turkish friends have recommended.

A one-semester research award, preferably beginning in the Fall of 2004, should provide sufficient time to accomplish the above activity. A Certain amount of additional preparatory work before arriving in Turkey would be undertaken.

Other Issues

While my Turkish language ability is rudimentary, 1 have been assured by colleagues who have worked and traveled in Turkey that most persons with whom I am likely to come into contact with on this project are likely to speak English. Published quantitative data should be accessible. In any event, I would anticipate employing a graduate student to assist in any situation (interviewing or written material) where this was not the case.

Dissemination of my findings will be through workshops, conference presentations, papers submitted to peer-reviewed journals and other publications. I would hope to be able to present preliminary conclusions to a workshop/seminar in Turkey at the conclusion of the award.

I look forward to giving an occasional seminar while in Turkey. In addition to subjects closely related to my project, I would be interested in discussing issues surrounding the role and operations of the international financial institutions (e.g. The World Bank and the IMF) and the proliferation of regional trading blocs and bilateral free trade agreements.

I feel that my prior study (as a Fulbright student in Brazil) and travel/work abroad on behalf of my University, The World Bank, and Mellon Bank have given me an appreciation of what it takes to be an effective cultural ambassador for the United States, as well as assistance in accomplishing my research objectives.

Photo Album
The photos from our activities will be available here.