MINISTRY OF DEVELOPMENT TURKEY JANUARY 2015 www.kalkinma.gov.tr
RURAL DEVELOPMENT – RURAL INDUSTRIES CONTENTS OF PRESENTATION 1- Overview 2- Main goal 3- Policy documents 4- An alternative approach to rural infrastructure 5- Rural industries
Relatively poor and less-educated GENERAL SITUATION 34,000 villages 47,000 sub-villages Total: 81,000 settlements 11.8 million people Relatively poor and less-educated
MAIN GOAL Develop rural society’s working and living conditions Improve quality of life in rural areas - reach country averages
NATIONAL RURAL DEVELOPMENT STRATEGY (2014-2020) MAJOR AXES Rural Economy (Agricultural-Nonagricultural) Rural Environment (Landscape) Rural Society (Social Policy) Rural Settlements (Infrastructure) Rural Development Capacity
DECENTRALIZED APPROACH TO INFRASTRUCTURE BUILDING Components Drinking water Roads Small scale irrigation and sewerage
District-based annual programming by local authorities (Special Provincial Administrations / Village Service Unions)
Total funding allocated for 2005-2014 9,2 billion TL (3.25 billion €)
Drinking water projects: 51.405 Safe access to water (by settlements): 2005-93% 2014-99% Road (km) Constructed: 193.993 km Repaired: 38.901 km Irrigation (agricultural land – ha): 61.066
ORGANIZED INDUSTRIAL ZONES and SMALL INDUSTRIAL SITES Existing Still in Construction OIS Priority Provinces 79 48 Turkey 155 82 SIS 230 9 453 42
GENERAL INCENTIVES SYSTEM Steadily increasing levels of tax cuts and other supports 6 classes of provinces Socio-economic composite index (Principal component analysis) Lesson: Works best for lower level provinces if (!) physically close to traditional industrial centers
AGRICULTURE BASED INDUSTRIAL GRANTS
LESSONS Infrastructure matters Industry should be allowed to self-organize at times General incentives work best for lower level provinces if (!) physically close to traditional industrial centers Project based cash grants are sometimes the only way
Thank you... ibrahim.kuzu@kalkınma.gov.tr ibrahimkuzu@post.harvard.edu www.kalkinma.gov.tr