World Bank2013-07-312013-07-312003-07-28https://hdl.handle.net/10986/14704This report addresses key questions facing Turkish policymakers: how to sustain the economic recovery that began in 2002 following the deep crisis of 2001, how to ensure disinflation and public debt sustainability, and how to foster broad-based and equitably distributed growth in the future. After a brief review of the 2001 crisis and the Government response, the report analyzes the economic opportunities and challenges facing Turkey, and identifies policies to build on the economic recovery which began in 2002. The CEM develops a comprehensive four-point agenda for sustainable and more equitably distributed growth. The agenda encompasses: (i) macroeconomic stability, (ii) effective government, (iii) improved business environment, and (iv) stronger social policies. The report closes with medium-term macroeconomic projections to illustrate Turkey's prospects under a scenario of sustained reform and to highlight the risks to growth and macroeconomic stability should the economic program go off track.en-USCC BY 3.0 IGODISINFLATIONCRISIS MANAGEMENTMACROECONOMIC FRAMEWORKPUBLIC SECTOR MANAGEMENTBUSINESS ENVIRONMENTSOCIAL POLICYDISASTER RECOVERYFINANCIAL ADMINISTRATIONSTRUCTURAL REFORMSGOVERNANCEFINANCIAL PERFORMANCE INDICATORSCORPORATE RESTRUCTURINGREGULATORY REFORMSMARKET LIBERALIZATIONSOCIAL CONTRACTSHUMAN CAPITAL DEVELOPMENTLABOR MARKETSECOMOMIC INTEGRATIONEXPORT PERFORMANCEFOREIGN DIRECT INVESTMENTSEXOGENOUS VARIABLESEXCHANGE RATE REGIMESEUROPEAN UNION MEMBERSHIP AGRICULTURAL OUTPUTAGRICULTURAL PRODUCTIONAGRICULTUREBALANCE OF PAYMENTSBANK RECAPITALIZATIONBANK RESTRUCTURINGBANKING CRISESBANKING SECTORBANKING SYSTEMBENCHMARKBUDGET CONSTRAINTBUSINESS CYCLECAPITAL ACCOUNTCAPITAL OUTFLOWSCENTRAL BANKCIVIL SERVICECOMMERCIAL BANKSCOMPETITIVENESSCONSUMER PRICE INDEXCONSUMERSCONTINGENT LIABILITIESCPICURRENCY CRISESCURRENT ACCOUNTCURRENT ACCOUNT DEFICITDEBTDECISION MAKINGDEPOSIT INSURANCEDEVALUATIONDISINFLATIONDOMESTIC INTEREST RATESDURABLE GOODSEMPLOYMENTEXCHANGE RATEEXCHANGE RATE REGIMEEXPORT GROWTHEXPORTSEXTERNAL DEBTEXTERNAL ENVIRONMENTFINANCIAL CRISISFINANCIAL DEVELOPMENTFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIATIONFINANCIAL MANAGEMENTFINANCIAL MARKETSFINANCIAL SECTORFINANCIAL STABILITYFISCAL ADJUSTMENTFISCAL DISCIPLINEFISCAL MEASURESFISCAL POLICYFISCAL REFORMSFISCAL RESTRAINTFISCAL SUSTAINABILITYFISCAL YEARFOREIGN EXCHANGEGDPGNPGOVERNMENT SECURITIESGROSS DOMESTIC PRODUCTGROSS NATIONAL PRODUCTGROWTH RATEIMPORTSINCOMEINCOME GROUPSINFLATIONINFLATION RATEINSTITUTIONAL STRUCTUREINSURANCEINTEREST RATESINTERNATIONAL EXPERIENCEINVENTORIESINVENTORYINVESTMENT SPENDINGLABOR COSTSLABOR FORCELABOR MARKETLEADING INDICATORSLEGAL FRAMEWORKLEGISLATIONLONG TERMMACROECONOMIC ANALYSISMACROECONOMIC FRAMEWORKMACROECONOMIC OUTCOMESMACROECONOMIC STABILITYMONETARY POLICIESNOMINAL ANCHORNOMINAL INTEREST RATEOILPOVERTY REDUCTIONPRIMARY SURPLUSPRIVATE BANKSPRIVATE CONSUMPTIONPRIVATE INVESTMENTPRIVATE SECTORPRIVATIZATIONPRODUCTIVITYPROFITABILITYPUBLIC CONSUMPTIONPUBLIC DEBTPUBLIC DEBT SUSTAINABILITYPUBLIC EXPENDITURESPUBLIC FINANCESPUBLIC GOVERNANCEPUBLIC INVESTMENTPUBLIC SECTORPUBLIC SECTOR DEBTPURCHASING POWERREAL APPRECIATIONREAL EXCHANGEREAL EXCHANGE RATEREAL GDPREAL GNPREAL INTERESTREAL INTEREST RATEREAL INTEREST RATESREAL TERMSREAL WAGEREAL WAGESRECAPITALIZATIONSMALL BUSINESSSOCIAL SECURITYSTATE BANKSSTRUCTURAL REFORMSSUSTAINED GROWTHT-BILLSTAX REVENUESTELECOMMUNICATIONSTOTAL FACTOR PRODUCTIVITYUNEMPLOYMENTUNEMPLOYMENT RATEVALUE ADDEDWAGESWorld Bank10.1596/14704