Poverty in Turkey

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Despite the influx of millions[1] of Syrian refugees that exacerbated[2] poverty, Turkey has made significant progress in reducing poverty.[3]

Following the increase in GDP per capita of 158% during 2000-2015, poverty incidence decreased from 44% to 18% between 2002 and 2014.[4] In the same period, incidence of extreme poverty declined from 13% to 3% of the population.[3]

Causes of poverty[]

  • Low female labor force participation. Gender inequalities persist in access to economic opportunities and the female labor participation remains very low.[5] Turkey ranked 130 out of 145 countries in the Global Gender Gap rankings.[5] Female participation in the workplace has been increasing as a percentage and are forecasted to increase in a sustained way as Turkey transitions towards a high-income economy.[5]
  • Low productivity in the agriculture sector. Agriculture employs about 20% of the working population in Turkey with a very low[6] labor productivity, which translates into limited[7] earnings potential.[8] While the Turkish agriculture remains the largest producer of hazelnut, cherry, figs, apricot, and quince in the world, the average size of farms at 2 ha is very low and discourages investment opportunities.[8]
  • Low national savings rate and low FDI. Having a very low domestic savings rate, Turkey is dependent on capital inflows to finance its structural current account deficit.[9] Despite its dependence on outside financing, Turkey attracts very little FDI — on average US$12.75 billion per year during 2003-15.[9]
  • Exposure to natural disasters. Over 2 million Turks and more than 6% of Turkey's GDP are exposed to disasters at any given year — ranking 9th globally[10] with respect to GDP exposure to earthquakes — because of Turkey's high risk of earthquakes, flooding, forest fires and avalanches. [11]

Poverty alleviation measures[]

  • Establishment of universal health coverage in 2003.
  • Seismic risk reduction program. Turkey pioneered a seismic mitigation and emergency preparedness project that has been a model internationally. The program — which started in 2006 — addresses the vulnerability of public buildings through creating development standards and third-party review.[10]
  • Turkey's risk insurance scheme for private property — established in 1999 — is considered to be a proactive and world-class example that other countries imitate.[12] However, the insurance program does not have differentiating tariffs that could provide incentives for disaster-resistant construction.[12]
  • Plans to increase investments in R&D. Despite spending 1% of GDP on R&D and with plans to increase it to 1.8% of GDP, Turkey compares poorly to OECD countries in science and innovation indicators.[13] Turkey’s share of patents registered in the European Patent Office was only 0.26%, better than Poland's 0.23% but much worse than Denmark's 1.22% and Belgium's 1.31%.[13]

Further reading[]

  • Atun, R., S. Aydin, S. Chakraborty, S. Sumer, M. Aran, I. Gurol, S. Nazlioglu, S. Ozgulcu, U. Aydogan, B. Ayar, U. Dilmen, and R. Akdag. “Universal Health Coverage in Turkey: Enhancement of Equity.” The Lancet. 2013.
  • Azevedo, J. P., Judy S. Yang, and Osman Kaan Inan. “What Are the Impacts of Syrian Refugees on Host Community Welfare in Turkey?” Policy Research Working Paper 7542, World Bank, Washington, DC. 2016.
  • Bozoghu, M., and V. Ceyhan. 2007. “Measuring the technical efficiency and exploring the inefficiency determinants of vegetable farms in Samsun, Turkey”. Agricultural System. Vol 94: 2007 pp. 649-656.
  • Creating Good Jobs. Forthcoming. Washington, DC: World Bank.
  • Cuberes, D., and Marc Teignier. “How Costly Are Labor Gender Gaps? Estimates for the Balkans and Turkey.” Policy Research Working Paper Series 7319, World Bank, Washington, DC. 2015.
  • Cuevas, Facundo, and A. Acar. “Poverty Measurement in Turkey: A Review of Data, Methods, and Challenges”. Working Paper, World Bank, Washington, DC. 2016.
  • Cuevas, Facundo, and L. Rodriguez-Chamussy. “Poverty, Shared Prosperity and Inequality in Turkey: What is Behind the Trends?” Working Paper, World Bank, Washington, DC. 2016.
  • Del Carpio, Ximena, and Mathis Wagner. 2015. “The Impact of Syrian Refugees on the Turkish Labor Market.” Policy Research Working Paper Series 7402, World Bank, Washington, DC.
  • Dilli, B., and Kari Nyman. 2015. Turkey's Energy Transitions: Milestones and Challenges. Washington, DC: World Bank.
  • Hentschel, J., Meltem Aran, Raif Can, Francisco Ferreira, Jeremie Gignoux, and Arzu Uraz. Life Chances in Turkey: Expanding Opportunities for the Next Generation. World Bank. 2010.
  • Hirshleifer S, D. McKenzie, R. Almeida, and C Ridao-Cano. “The Impact of Vocational Training for the Unemployed. Experimental Evidence from Turkey”. Policy Research Working Paper 6807. World Bank, Washington, DC. 2014.
  • Hohberg, M. and J Lay. 2015. “The impact of minimum wages on informal and formal labor market outcomes: evidence from Indonesia”. IZA Journal of Labor & Development, 4 (1), pp. 1–25.
  • Kasnakoglu, Haluk and Erol H. Cakmak. “Agriculture and Poverty in Turkey: Issues, Challenges, Prospects”. SCD Background Paper. Turkey. 2016.
  • Ministry of Forestry and Water Affairs. “Assessment of Climate Change Impact on Water Resources”. General Directorate of Water Management, Turkey. 2016.
  • Mudabi, R. “Location, Control and Innovation in Knowledge-Intensive Industries.” Journal of Economic Geography 8 (5). 2008: pp. 699–725.
  • Nguyen, H., Ayberk Yilmaz, and Temel Taskin. “Resource Misallocation in Turkey.” Policy research Working Paper No.7780. World Bank, Washington, DC. 2016.
  • Rise of the Anatolian Tigers: Turkey Urbanization Review. Washington, DC: World Bank. 2015.
  • Supply and Demand for Child Care Services in Turkey: A Mixed Methods Study. Washington, DC: World Bank.
  • Turkey 2015 Report. Commission Staff Working Document, EU Enlargement Strategy. 2015.
  • Turkey: Institutional Review of Energy Efficiency. Washington, DC: World Bank. 2015.
  • Turkey Transitions: Integration, Inclusion and Institutions. Washington, DC: World Bank. 2014.
  • Turkey's Energy Transition- Milestones and Challenges. Washington, DC: World Bank. 2015.
  • Turkey's Response to the Syrian Refugee Crisis and the Road Ahead. Washington, DC: World Bank. 2015
  • Zenginobuz, E. Ü. 2008 “On Regulatory Agencies in Turkey and Their Independence.” Turkish Studies 9 (3): pp. 475–505.

References[]

  1. ^ Del Carpio, Ximena, and Mathis Wagner. 2015. “The Impact of Syrian Refugees on the Turkish Labor Market.” Policy Research Working Paper Series 7402, World Bank, Washington, DC.
  2. ^ Turkey's Response to the Syrian Refugee Crisis and the Road Ahead. Washington, DC: World Bank. 2015.
  3. ^ a b Cuevas, Facundo, and L. Rodriguez-Chamussy. “Poverty, Shared Prosperity and Inequality in Turkey: What is Behind the Trends?” Working Paper, World Bank, Washington, DC. 2016.
  4. ^ Del Carpio, Ximena, and Mathis Wagner. 2015. “The Impact of Syrian Refugees on the Turkish Labor Market.” Policy Research Working Paper Series 7402, World Bank, Washington, DC.
  5. ^ a b c Cuberes, D., and Marc Teignier. “How Costly Are Labor Gender Gaps? Estimates for the Balkans and Turkey.” Policy Research Working Paper Series 7319, World Bank, Washington, DC. 2015.
  6. ^ Kasnakoglu, Haluk and Erol H. Cakmak. “Agriculture and Poverty in Turkey: Issues, Challenges, Prospects”. SCD Background Paper. Turkey. 2016.
  7. ^ Hohberg, M. and J Lay. 2015. “The impact of minimum wages on informal and formal labor market outcomes: evidence from Indonesia”. IZA Journal of Labor & Development, 4 (1), pp. 1–25.
  8. ^ a b Bozoghu, M., and V. Ceyhan. 2007. “Measuring the technical efficiency and exploring the inefficiency determinants of vegetable farms in Samsun, Turkey”. Agricultural System. Vol 94: 2007 pp. 649-656.
  9. ^ a b Creating Good Jobs. Forthcoming. Washington, DC: World Bank.
  10. ^ a b Hentschel, J., Meltem Aran, Raif Can, Francisco Ferreira, Jeremie Gignoux, and Arzu Uraz. Life Chances in Turkey: Expanding Opportunities for the Next Generation. World Bank. 2010.
  11. ^ Cuevas, Facundo, and A. Acar. “Poverty Measurement in Turkey: A Review of Data, Methods, and Challenges”. Working Paper, World Bank, Washington, DC. 2016.
  12. ^ a b Ministry of Forestry and Water Affairs. “Assessment of Climate Change Impact on Water Resources”. General Directorate of Water Management, Turkey. 2016.
  13. ^ a b Mudabi, R. “Location, Control and Innovation in Knowledge-Intensive Industries.” Journal of Economic Geography 8 (5). 2008: pp. 699–725.
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