The World Bank in Turkey, 1993-2004 : An IEG Country Assistance Evaluation

Abstract

This Country Assistance Evaluation (CAE) assesses the outcomes of the World Bank's assistance to Turkey during the period July 1, 1993, to June 30, 2004. It focuses on the objectives of that assistance and the extent to which outcomes were consistent with those objectives. It looks at the Bank's contribution to the achievement of those outcomes and the lessons for the Bank's future activities both in Turkey and more broadly. The Bank program during the period encompassed four broad strategic pillars: macroeconomic management; growth, competitiveness and productivity, which included the financial sector and infrastructure; poverty reduction and social development; and natural resource management. This report's assessments are as follows: The outcomes of the overall Bank program are rated moderately satisfactory, with substantial institutional development impact and likely sustainability. In the coming years the Bank should continue a high level of support to Turkey, but some rethinking of its approach is needed. With the improvements in public sector management, the program should be re-balanced with greater support for private sector development (including its role in generating employment and reducing poverty) and environmental management, but without relinquishing the efforts to improve infrastructure management and support social development. Within these areas, greater attention needs to be given to developing the capacity of key agencies responsible for program implementation. Support for private sector development would benefit from a coordinated approach from the Bank, the International Finance Corporation, and the Multilateral Investment Guarantee Agency, which has been lacking until now. Finally, improved environmental management will be an important area of Bank support to Turkey as it seeks to negotiate accession to the European Union.