Turkey Sustaining Shared Growth DPL

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This first loan in a programmatic series of two development policy loans (DPLs) aims to support Turkey's goal of continued socially and environmentally sustainable shared growth. At the request of the Turkish authorities, the proposed DPL series supports structural reforms that will facilitate Turkey's transition to high income status over the medium term by building competitiveness and enhancing transparency, creating jobs and sharing the fruits of growth, and ensuring sustainable development. Turkey's economic development over the past decade has resulted in impressive economic and social achievements. After a banking crisis in 2001, the country embarked on a concerted path of structural reform supported by strong fiscal consolidation, strengthened banking supervision, a reform of the social security system, and a shift to a flexible exchange rate regime with an independent central bank responsible for inflation targeting. Against these new challenges, the DPL series supports important measures to enhance the economy's competitiveness over the medium term and sustain the inclusive growth achieved over the past decade. The programmatic DPL is advancing reforms in the following three areas: (i) improving the business climate and enhancing transparency; (ii) boosting labor force participation and widening access to finance; and (iii) deepening Turkey's infrastructure reforms.