World Bank Group Continues Strong Partnership with Turkey

March 27, 2012

2012 – 2015 Country Partnership Strategy Launched

WASHINGTON, March 27, 2012 – The World Bank’s Board of Executive Directors today discussed and welcomed a new Country Partnership Strategy (CPS) of the World Bank Group with Turkey for 2012-2015. The strategy anticipates World Bank financing for programs of the Turkish government of up to US$ 4.45 billion during the 4-year period. In addition it provides for financing of private sector investments by the International Finance Corporation (IFC) which will be in the range of US$1.7-2.0 billion for the CPS period and for guarantees against non-commercial risks from the Multilateral Investment Guarantee Agency (MIGA). IFC and MIGA are members of the World Bank Group.

The Strategy serves as the business plan of the World Bank Group in support of Turkey’s own development and reform agenda outlined in the Government’s 9th Development Plan and the 2012-2014 Medium-Term Program. The goal of the strategy is to support Turkey in its ambition to become one of the ten largest economies in the world by 2023, the centenary of the foundation of the Turkish Republic, through fast, sustained and inclusive growth that respects the environment.

“Turkey has the opportunity to build on a decade of success to bring high standards of living to all of its population and further increase the country’s role in the global economy. The new Country Partnership Strategy aims to work with Turkey to realize this opportunity.” said Martin Raiser, World Bank Country Director for Turkey. “As Turkey has entered high income status, our partnership needs to constantly evolve to ensure Turkey gets the best out of the combination of competitive financing, cutting edge knowledge and global experience that the World Bank Group has to offer. ”

The Strategy was prepared in close dialogue with the Government of Turkey and in consultation with representatives of civil society, the business community, think-tanks, academia, and other stakeholders to identify development priorities and ensure broad-based participation in the Strategy’s implementation. The CPS provides a flexible framework to allow the partnership to adapt to a rapidly changing country context and evolving government priorities. It continues the increasing emphasis on analytical and advisory services whilst maintaining significant levels of financing to one of the World Bank Group’s largest clients worldwide. 

The 2012 – 2015 Country Partnership Strategy is organized around three core objectives:

  1. ‘Enhanced Competitiveness and Employment’ through (a) sustained macroeconomic and financial stability and increased exports and domestic savings; (b) increased employment and reduced job informality, especially for women and youth; (c) improved investment and business climate, deepened and broadened access to finance.
  2. ‘Improved Equity and Public Services’ through (a) improved quality and coverage of early childhood education; (b) a more effective and financially sustainable health system; (c) progress made toward gender equity; (d) improved public services and governance.  
  3. ‘Deepened Sustainable Development’ through (a) improved supply of reliable and efficient energy, increased use of renewable energy and implementation of climate action; (b) strengthened environmental management and adaptation to climate change; (c) improved sustainability of Turkish cities.

‘Sharing Turkey’s Experience – Results, Knowledge and Capacity’ is a dimension of the new CPS that cuts across all three objectives. Turkey’s successful economic and social reforms are of considerable interest in the region and globally. During this CPS period the WBG intends to use its global network to work with Turkey in sharing these successes with a wider international audience, with an initial focus on the health sector; and disaster prevention and mitigation.
“Turkey’s development success and a number of its economic and social reforms have attracted international interest and recognition” said Konstantin Huber, Executive Director for Turkey in the World Bank. “The Turkish authorities are looking forward to developing further cooperation with the World Bank Group where it can not only bring in the cutting edge institutional knowledge and best international practices, but also help Turkey in expanding and strengthening certain elements of its international development cooperation.”
During the CPS period, IFC will tailor its program in Turkey to achieve maximum development impact and promote sustainable private sector led growth in the country. IFC’s own-account investment program in Turkey is expected to remain in the range of US$425-500 million a year or, US$1.7-2.0 billion for the CPS period with the aim to:

  • contribute to Turkey’s competitiveness agenda and employment creation;     
  • target under-served segments of the economy, providing financing in areas including micro, small and medium enterprises with a focus on women-owned SMEs; energy efficiency and renewable energy; municipalities; and, poorer regions in the country;
  • play an increasing role in the transport sector; and
  • continue promoting South-South investments and supporting Turkish companies to invest in the region and further abroad. 

Turkey represents an important part of IFC’s global business and is home to IFC’s first Operations Center outside the US serving 50 countries across the Europe, Central Asia, Middle East and North Africa region,” said Dimitris Tsitsiragos, Vice President, Eastern and Southern Europe, Central Asia, Middle East and North Africa. “IFC plans to maintain a strong program in Turkey in areas where it can have a considerable impact on strengthening and diversifying the private sector and contributing to the country’s sustainable, long-term growth. Building on its track record of innovation in Turkey, IFC will continue to pioneer products and services which can be replicated in the broader region."

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Lotte Pang
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