ANKARA, April 25, 2008 - The Undersecretariat of Turkish Treasury together with the World Bank launched today the new Country Partnership Strategy (CPS) of the World Bank Group with Turkey for 2008-2011 and the new Country Economic Memorandum (CEM) on “Sustaining High Growth” at a conference held in Ankara.
The new Country Partnership Strategy anticipates future World Bank financing for programs of the Turkish government, or guaranteed by the government, up to US$ 6.2 billion during the 4-year period. In addition it provides for financing of private sector investments by the International Finance Corporation (IFC) and scope for guarantees against non-commercial risks from the Multilateral Investment Guarantee Agency (MIGA). IFC and MIGA are members of the World Bank Group.
The Bank Group’s partnership strategy with Turkey is grounded in Turkey’s own development agenda—the 9th Development Plan. The goal of the strategy is to contribute to improving the lives and opportunities for all Turkish people so Turkey approaches, over time, the levels of income and development in other OECD countries and in the EU. Turkey’s priorities will drive the program of Bank Group support. The partnership will build on Turkey’s sound macroeconomic framework and will focus in three areas:
- Improved Competitiveness and Employment Opportunities—including a favorable business environment and broader access to credit for the private sector, including small and medium-sized enterprises; increased competitiveness of Turkish exporters; measures to secure a reliable and efficient supply of energy and strengthen infrastructure; and more and better jobs, including for young people and for both men and women.
- Equitable Human and Social Development—including the completion of social security and universal health insurance reform; the ongoing transformation of Turkey’s health system; the further expansion and improvement in the quality of education, with a focus on giving students, workers, and employees those skills sought by private employers; and social inclusion and welfare policies to support the disadvantaged and vulnerable people in Turkey.
- Efficient Provision of High Quality Public Services—including the continuing modernization of Turkey’s management of public spending and financing; strengthening judicial services; investments in municipal infrastructure and irrigation; an improved cadastre system, and effective disaster preparedness and management.
The new Country Economic Memorandum (CEM) on “Sustaining High Growth” summarizes Turkey’s recent accomplishments in achieving high growth and considers key public policy challenges Turkey faces in sustaining such high growth and options to meet these challenges.
The analysis reported in the CEM confirms the importance of a continued stable macroeconomic framework as a foundation for sustained growth. The study focuses on six key areas that will be important drivers for sustained and shared long-term growth: promoting productivity and competitiveness, especially in the tradable goods and services sectors; fostering employment, including by implementing a broad agenda to promote labor market flexibility and job generation; systematic regional development, especially in Turkey’s disadvantaged regions; strengthening public sector governance; prioritizing efforts in environmental protection; and implementing an integrated food safety policy, which will benefit all Turkish people and also be important for the long-term growth of Turkey’s agriculture and food industries.
“Turkey has enjoyed high economic growth since 2002. The challenge now, in a rapidly changing global environment, is to consolidate the gains achieved so far and sustain strong growth and sharing the benefits of such growth widely in the years to come.” said Ulrich Zachau Turkey Country Director of the World Bank on the occasion of today’s conference. He continued: “Circumstances have blessed Turkey with the opportunity to advance her ambitious reform agenda and realize the vision of the Turkish people—the vision of a highly productive and competitive Turkey with more and better jobs and higher incomes for this and future generations and to become one of the most advanced economies and societies in the world. The new Country Partnership Strategy aims for the World Bank Group to be a partner with Turkey in realizing this opportunity.”
The new Country Partnership Strategy has been prepared in close partnership with the Turkish authorities, and in consultations with the private sector, civil society and other stakeholders. The World Bank Group invites and welcomes ideas and suggestions from stakeholders throughout Turkey for the implementation of the new strategy.