RESTORING EQUITABLE GROWTH AND EMPLOYMENT PROGRAMMATIC DEVELOPMENT POLICY LOAN

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Turkey is now passing through a transition from weathering the global financial crisis to re-establishing fiscal balance and sustainable, shared growth. The crisis has placed strains on Turkey's economy and public finances. Manufacturing has been hard hit, with effects on unemployment and economic hardships at the household level. At the same time, fundamental strengths have kept Turkey on course to benefit from the global recovery. The first step to returning to growth is to move from crisis-related fiscal expansion to balance and avoid crowding out the private-sector led recovery. The second step is to reinvigorate the business climate reforms and human-capital investments that are central to Turkey's long-term goals. The operation supports both the Government's crisis response and this transition back to sustainable growth under the new Medium Term Program (MTP). The Restoring Equitable Growth and Employment (REGE) Development Policy Loan (DPL) continues support to Turkey's public sector reform agenda under the Programmatic Public Sector Development Policy Loan (PPDPL) series. The REGE-DPL also supports the transition to recovery and job creation through business climate reforms supported under the earlier Competitiveness and Employment Development Policy Loan (CEDPL) series. The REGE-DPL also supports measures taken to maintain employment and household incomes in the face of the global crisis.