1 1 BUSINESS ENVIRONMENT IN TURKEY İbrahim H. ÇANAKCI Undersecretary of Treasury Knowledge Economy Forum IV Istanbul March 22, 2005.

Slides:



Advertisements
Similar presentations
UCLA Conference in Honor of Professor Armen Alchian May 6, 2006 Growth and Poverty Reduction in Armenia: Achievements and Challenges Enrique Gelbard, International.
Advertisements

Annual Growth Survey What is the AGS? A communication, which sets out the economic and social priorities for the EU in 2013 Launches the next European.
Overview of Regional Investment Promotion and Facilitation Schemes -Possible Applications in the SEE 10 th Meeting of the South East European Investment.
WITH THE FINANCIAL SUPPORT OF THE EUROPEAN UNION SEE 2020 Sustainable growth workshop Monitoring Sarajevo, Bosnia and Herzegovina Feb
1 Public Economics South African research topics Andrew Donaldson National Treasury August 2009.
Cambodian Group Presentation Mekong Institute Khon Kaen, Thailand September, 2010.
IMPROVEMENT OF INVESTMENT ENVIRONMENT & IMPACT on FDI April 2009 Mehmet Dündar Department Head Undersecretariat of Treasury Prime Ministry Undersecretariat.
Agency for the Supervision of Fully Funded Pension Insurance (MAPAS) Preparing the Financial Market for an Aging Population - The case of Macedonia Zorica.
1 Economic Aspects of Enlargement Brussels, 1 February 2005 Dirk VERBEKEN EUROPEAN COMMISSION Economic and Financial Affairs Directorate General What’s.
Reasons to invest in Paraguay UK-Paraguay Trade & Investment Forum Nov German Rojas Irigoyen Minister of Finance - Paraguay.
FISCAL POLICY REFORMS FOR AN INCLUSIVE GREEN ECONOMY “KENYA EXPERIENCE” Presentation During a Regional Workshop on “ Inclusive Green Economy for Poverty.
YOIKK Secretariat, 2008 Undersecretariat of Treasury October 19, 2009 İSTANBUL FDI in TURKEY Özge DUMLUPINAR Treasury Expert.
State of the Turkish Economy Emre Deliveli TOBB ETU, October
Ari Kokko Industrial policy Why? How? Examples: EU Industrial Policy and Swedish Industrial Policy Sources
Facts about Uganda  Population 31.7 million  GDP $36.9 billion  9.5% growth  GDP per Capita $1,165.
The Impact of Syrian Trade Policies on Agricultural Trade Performance Basheer Hamwi.
GENERAL DIRECTORATE OF INCENTIVE IMPLEMENTATION AND FOREIGN INVESTMENT
Overview Summary from Africa and ASEAN assistance Dr. Peter Pembleton, UNIDO.
IMPROVEMENT OF INVESTMENT ENVIRONMENT & IMPACT on FDI February 2009 Cavit DAĞDAŞ Deputy Undersecretary Undersecretariat of Treasury Prime Ministry Undersecretariat.
NIGERIA’S FINANCIAL SYSTEM STRATEGY 2020 PERSPECTIVES ON BUILDING AN INTERNATIONAL FINANCIAL CENTRE: EXPERIENCE OF SINGAPORE.
ACTIVITIES OF SUPPORTING SMES DEVELOPMENT IN VIETNAM
UNDP Ukraine1 Investment Climate in Ukraine: Old and New Challenges Iryna Akimova, Chief Economic Advisor, UNDP Ukraine ABCDE, Amsterdam, th of May,
Where Does Turkey Stand in the Competition for FDI Rodrigo A. Chaves February 21, 2007.
Economic Stability: Turkey’s Anchors and Beyond April 24, 2008 İbrahim H. ÇANAKCI Undersecretary of Treasury.
ETF Conference, Building & Financing European Transport Infrastructure, Brussels, 23rd Oct Building & Financing European Transport Infrastructures.
Influence of foreign direct investment on macroeconomic stability Presenter: Governor CBBH: Kemal Kozarić.
Vietnam Budget Reform over and Intentions over Content (3 parts): 1.Fiscal – budget reforms initiatives making important contribution.
FDI - Where Does Turkey Stand? Orhan Cem Lead Partner, Advisory Services, PwC Turkey  TURKEY WHERE THE OPPORTUNITIES ABOUND ON THE WAY TO SUCCESS February.
OVERVIEW OF CAPITAL MARKET DEVELOPMENT IN THE LAC REGION Carolin A. Crabbe Infrastructure and Financial Markets Division INTER-AMERICAN DEVELOPMENT BANK.
Doyananda Debnath Phd Date: 04 July, I. About Bangladesh II. Policy Making Process III. Features of Policy Documents IV. Development Planning.
All-Russian Non-governmental Organization of Small and Medium-Sized Business OPORA RUSSIA Sergey R. Borisov President of OPORA RUSSIA Zurich, 19 March.
Economic Reforms – Raising Regional Competitiveness Case of Georgia By Aleksi Aleksishvili.
Investment Policies in Russia: The Northern Dimension by Rainer Geiger Deputy Director, OECD Financial and Enterprise Affairs The Northern Dimension Forum.
OECD Private Sector Development 1 OECD EURASIA COMPETITIVENESS PROGRAMME Enhancing Investment, Competitiveness and Private Sector Development in Central.
Annual Growth Survey What is the AGS? A communication, which sets out the economic and social priorities for the EU in 2013 Launches the next European.
General Directorate of Annual Programs and Conjunctural Evaluations1 15 February 2010 Turkish Economy: Macroeconomic Developments in 2009 and Medium Term.
1 THE SPANISH EXPERIENCE MINISTRY OF INDUSTRY, TOURISM AND TRADE SECRETARY OF STATE FOR TOURISM AND TRADE S.G.I.E.X. THE SPANISH PATH TO DEVELOPMENT.
European Commission Introduction to the Community Programme for Employment and Social Solidarity PROGRESS
AN OVERVIEW ON TURKISH ECONOMY AND RECENT DEVELOPMENTS KEMAL UNAKITAN MINISTER OF FINANCE September 5, 2008 REPUBLIC OF TURKEY MINISTRY OF FINANCE.
John Panzer World Bank February 2007 Global Economic Prospects, 2007 Managing the Next Wave of Globalization in North Africa.
International Relations Department Belgrade, September 28 TH, 2007 NBS PROJECT PROPOSALS.
1 ENSURING AND SUSTAINING MACRO-ECONOMIC STABILITY 2010 Consultative Group / Annual Partnership Meeting Venue: La Palm Royal Beach Hotel, Accra Date: 23rd.
Enhancing Market Integrity Taxation 17 May 2006MENA/OECD Investment Programme Cairo, Egypt.
1111 Presentation made by Lual A. Deng at a High Level Seminar 1: The Financial Crisis and Fragile States The 2009 ADB Annual Seminars Dakar, Senegal,
Dr. Ahmed M. Darwish Minister of State for Administrative Development Egypt Making Reform Happen “Structural Priorities in Times of Crisis” OECD - Paris.
About the private sector’s needs Conference “COPING WITH SHORT-TERM RISKS AND ACCELERATION OF LONG-TERM GROWTH” June 25-26, 2008 Bishkek, Hyatt Hotel Talai.
Sofia, March 25, 2003 BULGARIA, BRITAIN AND THE LISBON AGENDA: STRATEGIES FOR RAISING EMPLOYMENT AND PRODUCTIVITY.
1 VISION ON BANKING Presentation to The 3rd International BANKSETA Conference 11 October 2006.
Croatia: Country Economic Memorandum Economic Growth Through European Integration World Bank, September 2003.
National Information Communication Technologies Strategy Vasif Khalafov “National strategy” working group - Web -
Bulgarian Foreign Investment Agency Sofia, March 2003 Attracting Foreign Investment Annex 3.
Eastern Europe and Central Asia: Economic Outlook and Challenges Ahead ISTANBUL CHAMBER OF INDUSTRY - 6th INDUSTY CONGRESS November , 2007 Klaus.
Utilization of knowledge for economic growth in the Czech Republic Karel Klusacek Technology Centre AS CR Knowledge Economy Forum V.
The World Bank and Institution Building in the New Member States and Candidate Countries Financing Growth and Cohesion in the Enlarged EU Daniela Gressani,
Investment In Russian Industry Investment In Russian Industry Deputy Minister for Economic Development and Trade of the Russian Federation A. Sharonov.
Governance in Central and Eastern Europe Cheryl W. Gray Europe and Central Asia Region World Bank.
MEDIUM TERM FINANCIAL PLAN ( ) Date : 8/10/2010 Decision No : 2010/28.
MINISTRY OF FINANCE ECONOMIC STABILITY AND INVESTMENT PLAMEN ORESHARSKI MINISTER OF FINANCE March 11, 2008.
Economic Challenges of Bulgaria Lecture at the Military Academy of Sofia, July 17, 2003 by Piritta Sorsa, IMF representative in Bulgaria.
BRIEFING ON FOREIGN DIRECT INVESTMENT AND INVESTMENT CLIMATE REFORM January 2009 BERRİN BİNGÖL DIRECTOR GENERAL FOR FOREIGN INVESTMENT Republic of Turkey.
REPUBLIC OF TURKEY PRIME MINISTRY Investment Support and Promotion Agency of Turkey ISPAT Ahmet Burak Daglioglu
1 Brazil Towards a Sustainable Growth Path: Stabilization and Consolidation of Structural Reforms Brazil Towards a Sustainable Growth Path: Stabilization.
ITCILO/ACTRAV COURSE A Capacity Building for Members of Youth Committees on the Youth Employment Crisis in Africa 26 to 30 August 2013 Macro Economic.
ENERGY MARKET REFORMS, R&D & INNOVATION, AND CHALLENGES: TURKISH EXPERIENCE Selahattin Murat ŞİRİN Expert Energy Market Regulatory Authority TURKEY.
FAVORABLE BUSINESS ENVIRONMENT AN INCREASING POTENTIAL FOR TRADE AND INVESTMENTS IN ENERGY SECTOR ATHENS 8-9 OCTOBER 2008.
BOSNIA’S REFORM EXPERIENCE TO DATE
YEAR 2011 BUDGET JUSTIFICATION
BOSNIA’S REFORM EXPERIENCE TO DATE
Budget Sustainability Policies in the Republic of Belarus
Summary from Africa and ASEAN assistance Dr. Peter Pembleton, UNIDO
Presentation transcript:

1 1 BUSINESS ENVIRONMENT IN TURKEY İbrahim H. ÇANAKCI Undersecretary of Treasury Knowledge Economy Forum IV Istanbul March 22, 2005

2 2 CONTENTCONTENT  TURKEY’S POTENTIALS AND KEY CHALLENGES  POLICY ACTIONS TO MEET THE CHALLENGES  GAINING GROUND & PROSPECTS  TURKEY’S POTENTIALS AND KEY CHALLENGES  POLICY ACTIONS TO MEET THE CHALLENGES  GAINING GROUND & PROSPECTS

3 3 TURKEY’S POTENTIAL AND KEY CHALLENGES

4 4 6,937 7,213 GDP Per Capita (PPP) Turkey’s Potential US $ Demographic Profile Economic Profile Increasingly Open Economy TURKEY USA ITALY BRAZIL POLAND RUSSIA RANKING SCALE 1-7 Capital Market Integration

5 5 EUROPE GDP Population GDP Population 11,717 billion USD 576 million 11,717 billion USD 576 million RUSSIAN FEDERATION GDP Population GDP Population 433 billion USD 144 million 433 billion USD 144 million CENTRAL ASIAN AND CAUCASIAN COUNTRIES GDP Population GDP Population 44 billion USD 37 million 44 billion USD 37 million MIDDLE EAST AND NORTH AFRICA GDP Population GDP Population 690 billion USD 247 million 690 billion USD 247 million Turkey’s Trade Potential

6 6 Despite this huge potential, an underperforming economy in 1990s... During 1990s  Turkish economy was characterized by:  Boom and bust cycles in growth  High and chronic inflation  High public sector deficit  Turkish politics was charaterized by frequent elections During 1990s  Turkish economy was characterized by:  Boom and bust cycles in growth  High and chronic inflation  High public sector deficit  Turkish politics was charaterized by frequent elections

7 7 Foreign Direct Investment in Turkey Annual FDI Inflow (1980 – 2002)

8 8 Key Challenges  Fully Utilize Turkey’s Potential For Sustainable High Growth  Enhance Competitiveness Of Turkish Economy In The Global Markets  Increase Investment And Bring FDI Inflows To The Level Of Peer Countries  Fully Utilize Turkey’s Potential For Sustainable High Growth  Enhance Competitiveness Of Turkish Economy In The Global Markets  Increase Investment And Bring FDI Inflows To The Level Of Peer Countries

9 9 POLICY ACTIONS TO MEET THE CHALLENGES

10 TURKEY’S PROGRAM FOR CREATING AN ENVIRONMENT MORE CONDUCIVE TO BUSINESS CONDUCIVE TO BUSINESS  RESTORING MACROECONOMIC STABILITY  IMPLEMENTATION OF WIDE RANGE OF STRUCTURAL REFORMS REFORMS  REMOVING ADMINISTRATIVE BARRIERS AND REDUCING RED TAPE TAPE

11 (%) GNP Growth CPI (%) Program (bn $) Net Public Debt Stock / GNP (%) (*) Estimate Central Bank Gross Reserves Strong Growth Path Single-Digit Inflation Strong Reserve Position Declining Debt Macroeconomic Stability 39,4

12 Rationalizing Public Sector Budget & Investment Code of Ethical Conduct for Civil Servants Law on Freedom of Information for Citizens Structural Reforms So Far... Public Sector Reform Financial Sector Reform Enhancing the Role of Private Sector Financial Management and Control Law Public Procurement Law Rationalizing Public Sector Employment Banking Regulation and Supervision in line with EU Standards Strengthening the Private Banks CAR-Capital Adequacy Ratio- Improvement Vulnerabilities Reduced Consolidation Encouraged State Bank Reform  Financial Restructuring  Operational Restructuring  Preparation for Privatization Improving the Resolution of Non-Viable Banks  Strengthened Institutional Capacity for Resolution  Accelerated Resolution of Intervened Banks  Faster Recovery of Assets Opening the Key Markets to Competition and Regulation by Independent Agencies  Energy Market  Tobacco Market  Telecommunication Market  Sugar Market Boost to Privatization  TUPRAS (Petroleum Company)  Several Small Companies and Assets  TEKEL (Monopoly of Alcoholic Beverages)  THY (Turkish Airlines) Reduced Administrative Barriers & Red Tape

13 Strategy Based on Full Screening & Problem Diagnosis Strong Public and Private Sector Collaboration Pursuing Pragmatic & Solution-oriented Policies Relying on International Experience & Perspective Strong Political Ownership to Coordinate These Efforts under a Functioning Institutional Framework Key Features of Turkey’s Reform Program to Remove Administrative Barriers and Red Tape

14 Coordination Council for Improvement of Investment Environment (YOİKK) Location of Investment Company Establishment Employment Customs and Standards Licensing Intellectual Property Rights Taxes and Incentives Foreign Direct Investment Legislation Investment Promotion SMEs Technical Working Groups IAC Institutional Framework For Investment Environment

15 Major Achievements to Improve Investment Environment No Approval Requirement No Minimum Capital Requirement National Treatment Guarantee to Transfer Proceeds Key Expatriate Personnel Protection Against Expropriation Access to Real Estate International Dispute Settlement New FDI Regime

16 Notarize the Articles of Association Pay the Registration Fee Fill the Company Establishment Form and Register with Trade Registry START BUSINESS New Procedures for Setting up Business: Simplified and Streamlined Major Achievements to Improve Investment Environment Starting a Business Indicators Turkey OECD Average Before the Reform After the Reform Number of procedures 1386 Time (days) Source: World Bank, Doing Business in 2004 AND 2005 Achievement has been registered internationally

17   Remove red tape and bureaucracy, with a focus on procedures at the sectoral level... Progress in streamlining procedures for the mining and petroleum sector Progress in streamlining procedures for the mining and petroleum sector Time required to obtain Environmental Impact Assessment brought down Time required to obtain Environmental Impact Assessment brought down Draft Law to create “one-stop-shop” at provincial level prepared Draft Law to create “one-stop-shop” at provincial level prepared Inspections and permissions related agro-sector simplified Inspections and permissions related agro-sector simplified   Improve implementation of laws and dispute resolution mechanisms… A new Commercial Code being drafted A new Commercial Code being drafted Priorities of Corporate Law, Intellectual Property Rights, Industry Property Rights specified in National Program Priorities of Corporate Law, Intellectual Property Rights, Industry Property Rights specified in National Program National Justice Network Project aiming at electronic connection of service units Major Achievements to Improve Investment Environment Progress on the recommendations of IAC

18   Develop a corporate tax regime and incentive structure comparable to those of competitor countries... Tax reform underway to fight informal economy and to bring a predictable Tax reform underway to fight informal economy and to bring a predictable taxation system New provisions in the Corporate Tax Law reduce the tax burden New provisions in the Corporate Tax Law reduce the tax burden Scope of Corporate tax exceptions expanded Scope of Corporate tax exceptions expanded   Increase efficiency of customs; particularly import procedures and licensing Technological infrastructure of Customs improved Technological infrastructure of Customs improved Comprehensive Amendment on the Customs Code drafted Comprehensive Amendment on the Customs Code drafted Significant improvements in reducing cargo dwell times and transaction costs Significant improvements in reducing cargo dwell times and transaction costs The automated BILGE system improved The automated BILGE system improved Improvement in Risk Analyses System Improvement in Risk Analyses System Other Initiatives... Major Achievements to Improve Investment Environment Progress on the recommendations of IAC

19   Create an investment promotion capacity Capacity improvement of General Directorate of Foreign Investment Capacity improvement of General Directorate of Foreign Investment   Improve infrastructure Priority infrastructure needs identified Priority infrastructure needs identified   Invest in education and training Share of education expenses in the budget increased Share of education expenses in the budget increased   Secure the availability of land for investment Land allocation to the investment sites improved Land allocation to the investment sites improved Legislation amended to increase the effectiveness of the Industry Zones Legislation amended to increase the effectiveness of the Industry Zones   Protect intellectual property rights more effectively Measures taken to protect the intellectual property rights Measures taken to protect the intellectual property rights Other Initiatives... Major Achievements to Improve Investment Environment Progress on the recommendations of IAC

20   Strengthen research and development base of country To encourage R&D, expenses to be deducted from the tax base To encourage R&D, expenses to be deducted from the tax base Incentives to operate in the Technology Development zones increased Incentives to operate in the Technology Development zones increased   Harmonize standards and regulations with the European Union Standards prepared by State Institute of Standards harmonized with EU Standards prepared by State Institute of Standards harmonized with EU   Strengthen the role of SMEs in the economy SME access to finance improved SME access to finance improved KOSGEB (Small and Medium Industry Development Organization) KOSGEB (Small and Medium Industry Development Organization) restructured restructured   Accelerate the privatization program Tenders planned for the first half of 2004 realized Tenders planned for the first half of 2004 realized Other Initiatives... Major Achievements to Improve Investment Environment Progress on the recommendations of IAC

21 GAINING GROUND AND PROSPECTS

22 Robust Private Sector Activities Net FDI Performance Sources of GrowthProductivity in Private Sector Man. Industry Number of Foriegn Participated Firms cumulative

23 New Medium-Term Economic Program Key Features Strong Ownership Strong Ownership Social Consensus Social Consensus EU Convergence (EU Pre-accession Economic Program) EU Convergence (EU Pre-accession Economic Program) Basis for a New Stand-By Arrangement Basis for a New Stand-By Arrangement Macroeconomic Objectives Sustainable High Growth Sustainable High Growth Price Stability and Single Digit Inflation Price Stability and Single Digit Inflation Debt Reduction Debt Reduction Macroeconomic Policies Continuation of Prudent Fiscal Policies Continuation of Prudent Fiscal Policies A Monetary Framework focused on Price Stability A Monetary Framework focused on Price Stability Floating FX regime Floating FX regime

24 Growth (%) Inflation (CPI %) General Gov’t Deficit (% of GDP) General Gov’t Gross Debt (% of GDP) New Medium Term Macroeconomic Framework

25 Creating a Self Sustaining Social Security System Creating a Self Sustaining Social Security System Structural Reform Agenda Reforming the Tax System Strong Financial Sector: Engine of Growth Further Developing the Infrastructure For A Competitive Market Economy  Tax administration reform to combat the informal economy and to improve compliance and efficiency of tax collection  Simplification and streamlining of the tax system  Rationalization of financial transaction taxes  Tax administration reform to combat the informal economy and to improve compliance and efficiency of tax collection  Simplification and streamlining of the tax system  Rationalization of financial transaction taxes  Unification of three social security institutions  Establishment of universal health insurance with a view to minimize cost to government  Transfer of social assistance functions to one institution  Unification of three social security institutions  Establishment of universal health insurance with a view to minimize cost to government  Transfer of social assistance functions to one institution  Improved regulatory and supervisory framework  A new road-map for restructuring and privatization of state banks  A strengthened institutional capacity and a new strategy for asset resolution  Transfer of non-bank financial institutions to the BRSA  Improved regulatory and supervisory framework  A new road-map for restructuring and privatization of state banks  A strengthened institutional capacity and a new strategy for asset resolution  Transfer of non-bank financial institutions to the BRSA  Competitive Real Sector  Competitive Financial Sector  Privatization of Major Companies  Continue to Enhance the Business Friendly Environment  Competitive Real Sector  Competitive Financial Sector  Privatization of Major Companies  Continue to Enhance the Business Friendly Environment

26 Ongoing Initiatives and Forthcoming Events   E-transformation Turkey Project   Investment Climate Assessment Survey   Second Investment Advisory Council Meeting