Ankara, January 7, 2010—The World Bank’s Board of Executive Directors today discussed and welcomed the Progress Report of the Country Partnership Strategy (CPS) of the World Bank Group with Turkey for 2008-2011. The Report reviews implementation of the Country Partnership Strategy (CPS) and describes how Turkey and the Bank Group are adapting the strategy to evolving country circumstances and development priorities, as the impact of the ongoing global economic downturn is felt in Turkey and around the world.
Implementation of the Country Partnership Strategy is proceeding well and is fully on track. In the report, Turkey and the World Bank Group reaffirm the three main pillars of the current strategy—improved competitiveness and employment opportunities, equitable human and social development, and efficient provision of high-quality public services—which have proven robust. Reflecting strong demand for Bank Group financing, new commitments of the International Bank for Reconstruction and Development (IBRD) in FY2008-2009 totaled USD 3.278 billion, just over half the initial CPS financing envelope of USD 6.2 billion. New investments by the International Finance Corporation (IFC), the World Bank Group’s private sector arm, totaled USD 1.086 billion in the same period. Planned new IBRD financing commitments in FY2010 will increase by up to USD 3 billion, at the request of the Turkish authorities. Planned new commitments in FY 2011 will be up to USD 1.4 billion. Such new commitments in FY2011 for Turkey, as for all IBRD member countries, will be contingent on IBRD’s overall lending capacity.
Turkey and the Bank Group have also agreed on adjustments to the CPS to support the transition from weathering the global financial crisis to returning to sustainable growth. In particular, ongoing development policy lending providing budget support for Turkey’s growth agenda is being adapted to support the response to the impact of the global crisis and to promote the recovery of equitable growth and employment. This lending will focus on key investment climate, financial market, and public management reforms and critical skills, jobs, and social policies.
The Bank Group will also accelerate and expand financing to the private sector. Small and Medium Enterprises (SMEs) are the largest source of employment in Turkey, and the global financial crisis has reduced their access to affordable credit. Increased WBG financing to these companies will help to fill the gap. Analysis, advice, and financing for human and social development will be scaled up—with monitoring of poverty and social developments and a focus on jobs and vocational training.
Finally, the ongoing partnership and Bank policy lending in the energy sector will be broadened to include a strong focus on climate change and environmental sustainability, reflecting Turkey's rise as a regional and global player and its growing contribution to national and global environmental sustainability. The program is expected to build on Turkey’s recent Kyoto Protocol ratification and the agenda for alignment with the EU Environmental Management Acquis.
The Country Partnership Strategy Progress Report has been prepared in close partnership with the Turkish authorities. Consultations with the private sector, civil society and other stakeholders are integral to the World Bank Group’s work and to the implementation of the Turkey-Bank Group partnership strategy. The World Bank Group invites and welcomes ideas and suggestions from stakeholders throughout Turkey for the implementation of the second half of the strategy.