1. Regional Investment Climate Assessment 21 January 2015 Ankara, Turkey

2. MAIN OBJECTIVE: Specific Objectives: – Capacity building at the central and regional level for evidence-based policy design, implementation and evaluation; – Capacity building at the central and regional level on investment support and promotion; – Deliver the first, baseline dynamic database that measures the quality of the investment climate regionally and nationally; and – Provide the first set of baseline reports on investment climate in each of the regions in Turkey and one on the investment climate nationally. Objectives of the Regional Investment Climate Program (I)

3. PROGRAM OBJECTIVE To support regional sustainable and shared regional development by building regional and central government institutional capacity designed to promote continuous investment climate improvements.

4. BACKGROUND Funded in part (10%) by the Ministry of Development (MoD) and in part (90%) by the European Union (EU) Instrument for Pre- Accession funds Implementation will take 24 months

5. WHY REGIONAL CAPACITY IS IMPORTANT Implementation of regulations vary by regions… And so does economic performance…

6. Enterprise Survey Objectives: To obtain an overall description of the business environment for each country/region which is comparable across the world. To obtain basic information that allows measuring the effect of the business environment on selected quantitative variables (productivity, performance, access to credit, growth, employment). 6

7. WHY: Data is delivered after passing quality controls, and after projections (weights) are generated. Recipients: Website Region MDB WHY: Data is delivered after passing quality controls, and after projections (weights) are generated. Recipients: Website Region MDB WHO : 143 client countries surveyed every 3 years on a regional approach. Each rotation starts around April/May WHO : 143 client countries surveyed every 3 years on a regional approach. Each rotation starts around April/May HOW : EAU/Region/MDB collaboration on the sample design and questionnaire (2 months) HOW : Competitive bidding to find best contractor and subcontractors to implement survey under EAU supervision (3 months) HOW : Selected contractor carries out field work over 6 - 9 months (typically surveys start in January) Process 7

8. Sampling Methodology Representative sample of the non-agricultural economy. The universe: – Manufacturing – Services (retail, wholesale, hotels, restaurants, IT) – Construction – Transport, Storage and Communications 8

9. ISIC Rev.3.1 AA - Agriculture, hunting and forestry BB - Fishing CC - Mining and quarrying DD - Manufacturing * EE - Electricity, gas and water supply FF – Construction * GG - Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods * HH - Hotels and restaurants * II - Transport, storage and communications * JJ - Financial intermediation KK - Real estate, renting and business activities (IT *) LL - Public administration and defense; compulsory social security MM - Education NN - Health and social work OO - Other community, social and personal service activities PP - Activities of private households as employers and undifferentiated production activities of private households * Included in survey sample Which Business Activities Are Included ? 9

10. Sampling Frame The most updated, and complete list of firms available for all sectors Frame for manufacturing and services may come from different sources It must contain, location (address, phone #, etc.), sector of activity, and size. Any other information is a plus Electronic format Turkey: manufacturing TOBB, services (?) 10

11. Sampling Methodology Stratified Random Sampling. Combined with rotating panel Strata: firm size, sector, and geographic region within the country Advantages of this approach: – Greater precision of estimates – Estimates for strata, not only for the population – But sampling weights must be used. All indicators should be computed using them 11

12. Reports on the Investment Climate Investment Climate Assessments are critical instruments to: – quantify features of the investment climate that matter most for productivity and income growth, especially for the poor; – track changes in the investment climate within a country or a region – compare performance within regions or countries.

13. Implementation 12-16 Months starting from February 2015 2/3 Private Surveying Companies Undertaken in 26 regions

14. The Process Web portal Data Collection: Enterprise Survey -6000 firms -26 NUTS II Regions 26 Regional ICA Reports 1 Main Report Institutional Capacity Building Visit to World Bank HQ Training for Analysis of ES results 5 Days training to DA and MoD Staff Training for Investment Support and Promotion 5 Days training to ISO Staff Best Practice Learning Exchange on IS&P 2 Learning Visits Evaluation of IS&P Framework Investment Promotion and Support Report 5 Regional Stakeholders Workshop Kick- off event In Ankara Regional Dissemination 6 Regional Publicity Events International Dissemination Final International Event in Istanbul Policy Information Capacity Building Creating Awareness & Dissemination

15. Teşekkürler