Carlos E. Piñerúa Country Sector Coordinator, Turkey The World Bank March 12, 2012, Madrid
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Transcript of Carlos E. Piñerúa Country Sector Coordinator, Turkey The World Bank March 12, 2012, Madrid
CARLOS E. PIÑERÚACOUNTRY SECTOR COORDINATOR, TURKEY
THE WORLD BANK
MARCH 12, 2012, MADRID
“Turkey: The Role of Small and Medium Enterprises as the Engine of Economic
and Employment Growth”
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Outline of The Presentation 2
A Success Story…Is It?Challenges Remain…Where?
Lessons…for Whom?
A Success Story…..3
“…a good economic performance and lack of economic problems which are enjoyed by Turkey at a time when many European countries suffer many economic problems and crises display Turkey as a shining star here. I’m greatly proud of this situation.”
From High Inflation to Stability
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From Stability to Growth5
Fiscal Consolidation (I) 6
Fiscal Consolidation (II) 7
Open the Economy 8
Willingness to Privatize 9
You Get What You Need 10
Banking Sector Also Key 11
Key Messages:12
Expansionary Austerity Works.Structural Change Needed for Efficiency and Financing.
Banking Sector Restructuring a Must!
Sometimes It Pays To Be Lucky Too…
Is Stability Sufficient?13
How Competitive is Turkey?14
What are the Challenges?15
Hiring People a Critical One…
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Redundancy Costs in Selected Countries(weeks of salary, 2009)
Redundancy Costs in Selected Countries(weeks of salary, 2009)
What is an Investment Climate Assessment?
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What Ails Companies (I)18
What Ails Companies (II)19
Single most severe investment climate obstacles, by firm size
Source: Investment Climate Assessment, World Bank
SMEs at the Heart of the Economy…..
Source: Turkish Statistical InstituteMicro:1-9 Small: 10-49 Medium: 50-249 Large: >249
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Turkish SMEs are Growing Slower…
Growth Rate of Turkish SMEs Relative to Other Countries % (2004-2007)
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Source: Turkish Investment Climate Assessment, World Bank
Time “Tax” a Critical Issue22
Proportion of Management Time Spent on Government BureaucracyProportion of Management Time Spent on Government Bureaucracy
What is Turkey Doing?23
A new Commercial Code.TransparencyAccountability
The Importance of Financial Reporting
Accounting and
Auditing
Development of Capital Markets
Job Creation
Financial Stability
Private Sector Growth
Financial Sector Development
Improved Access to Credit
Financial Information
ECONOMIC GROWTH
What Should Turkey Be Doing?25
Regulatory Reform.Labor Reform.Education.Skills.
Are There Lessons?26
Expansionary Austerity?
Is Stability Enough?
Is It money or Ideas?
Government’s Role?27
Thank YouTeşekkür Ederim
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