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OECD Reviews of Regulatory Reform: Turkey 2002

Crucial Support for Economic Recovery

image of OECD Reviews of Regulatory Reform: Turkey 2002

Among the OECD countries, Turkey figures as a comparative latecomer to regulatory reform. Yet, there is a crucial need for it. Over the last three decades, the Turkish economy has suffered from macro-economic instability and chronic inflation, with implications for both investment and growth. Governance and regulatory structures remained weak and contributed also to the 2001 economic crisis.

Nonetheless, this review notes the highly encouraging efforts currently being undertaken to reform key economic sectors, the public administration and the regulatory framework. These developments appear to mark a fundamental break with the past. Important elements, such as a clear competition policy, are already in place. Fighting corruption, among other measures, is high on the policy agenda, and constitutional amendments are reshaping the relationship between citizens and the state. The "depoliticisation" of the public sector and its renewal on a merit basis is underway. Future success will depend crucially on the continuing implementation of the programme. In particular, sustained political commitment is required well beyond the recovery from the recent crisis.

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Telecommunications Sector

Telecommunications have been given a high priority by policy-makers in recent years and the sector has grown substantially in relative terms during this time. It increased its weight in GDP from 1.03% in 1985 to 3.82% in 1999, while the penetration of fixed telephone lines increased from 4.5 to 28.3 per 100 inhabitants as of end of 2001. However, Turkey still ranks far below the OECD average of 52.8 lines per 100 inhabitants....

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