Structural Reform in Turkey had been adopted as a part of its economic reform program to achieve sustainable growth. The country witnessed a serious currency crisis in 1998 and also had been suffering from high inflation. Therefore reform was absolutely necessary for the government to stabilize its economy.
Turkey had all the ability to enter into the emerging global market because of its efficient private sector, young population and advantageous geographic location. In the G20 summit at Helsinki, Turkey’s ability to be a member of the European Union was recognized. Therefore to utilize this potential, the Turkish government introduced structural reform.
Turkey’s structural reform program got reasonable support from the World Bank. It approved a loan of 2 billion US dollars to Turkey during 1999 – 2000 so that the country could accelerate its reform process. The main challenges to the Government was to reduce inequality and poverty.
Another important matter was the growth in human development. Real interest rates had been reduced through a sustained fiscal adjustment to control inflation and increase the public finance. Through second generation institutional and structural reform programs the Turkish government aimed to enhance privatization.
The government also attempted to minimize the socio-economic disparities among all the citizens through the public investment in education, health, social protection etc
To modernize the country’s several public institutions the government established a Banking Regulation and Supervisory Agency and telecommunications regulator which was independent. Some rules had been formed to prevent corruption. The government enticed the private entrepreneurs to plan some productive activities instead of seeking rent. The government formed some strict rules and regulations in accordance with the international standards in energy, telecommunication and banking to improve accountability and public management. The government allowed some efficient and plausible public organizations to support the development in private sector so that it could attract the foreign investors. More stress had been given on the innovation of new technologies and external market competitiveness.
The government did some fiscal adjustment to control the on going high inflation and currency crisis. Several new fiscal policies had been set to achieve macroeconomic stability and high productivity. Therefore, investment in human capital was also increased.
Last Updated on : 26th June 2013