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Poverty Reduction Policy in Turkey - Essay Example

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Hence, expecting an overnight result cannot be exactly practical. In the Press Release No. 39, September 19-20, 2006, Ali Babacan, Governor of the IMF for Turkey, said in the 2006 Annual Meetings of Board of Governors held at Singapore held:
"Inflation is likely to exceed the 2006 target mainly because of adverse energy and commodity price developments. However, it is expected that, in the medium term, it will converge to our target. Current account deficit has widened on account of rising cost of energy imports and accelerating investments whereas the composition of the financing significantly improved by the increasing long term capital inflows"
Turkish economy has undergone a series of changes with the tightening of the fiscal policy and central banking. This does not mean that Turkish economy does not have any worth-mentioning growth. It is considered to be one of the fastest growing economies, in spite of many connected cultural, social and economic problems.
"Since the formation of the modern state of Turkey in 1923, the economy had grown rapidly. However, economic growth slowed in the mid-1990s in the wake of a fiscal and monetary crisis. There are wide disparities in income between the more prosperous, industrialized parts of the country in the west and south-west, and the less developed provinces in the rest of Turkey. In 2002, gross
national income was USD 2 490 per capita"

Today many institutions and organisations are connected with the poverty reduction programme of Turkey. The International Fund of Agricultural Development (IFAD) supports this effort in an overall involvement. Under this far reaching project, roads, schools and hospitals are planned for the remote hilly regions. Mobility increasing infrastructures are being constructed through the poverty reduction programme. Policies are not only trying to help the rural poor, but also are mainly of assistance to women. It is realised that living conditions of the rural poor has to be tackled before any other economic improvement. In the early 1970s Agrarian Reform Act was passed with the intention of improving the agricultural situation of the country.

"The objective of the Agrarian Reform Act is to promote rural development, to improve farm structures and the conditions for cultivating the land. Apart from economic considerations, the Law is inspired by the principle of social justice," Agricultural Policy in Turkey, (p.58).

There are many ongoing rural projects today, like Sivas-Erzincan Development Project and some of them, are co-financed by Islamic Development Bank. Since 1982, IFAD has lent a total sum of USD 91 million to help Turkey in her poverty eradication programmes1. It had been imperative to better the lot of women through improvement in agriculture, as 90% of them are employed in some way or other in agriculture and 45% of the total working population are in agricultural sector2.

Turkey has flourishing economic possibilities. It is the second largest exporter of Pasta in the world and its wheat is almost 10 percent of the total world production and export. Environmental degradation is plaguing the country's agricultural production though many active projects are ...Show more


Attacking poverty had been one of the main aims in the world in recent times and Turkey had been no exception. It is important to know more about the programme and assess how well Public economic management in Turkey is progressing. No doubt, poverty reduction cannot be done in a few years, or as a result of a few policies…
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Poverty Reduction Policy in Turkey
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