Economic Policy Reforms 2023

Türkiye

See more data for Türkiye on the related dashboard.

Product and labour markets functioning

Performance gaps

• Complex and burdensome administrative procedures to obtain permits, licences, or concessions hold back the creation of formal firms.

• Complex and burdensome technical and legal procedures hinder cross=border trade.

Recommendations

• Create a one-stop shop where all licenses and authorisations can be issued.

• Apply the “silence-is-consent” principle to reduce the administrative burden related to obtaining permits and licences.

• Streamline technical and legal procedures for products entering or leaving the country.

Digital transition

Performance gaps

• The number of fixed broadband subscriptions at higher speed tiers across households and firms is low in international comparison.

• Most adults shows no or only basic proficiency in problem-solving in technology-rich environments, while almost 40% of adults report no computer experience.

Recommendations

• Consider an in-depth review of competition on broadband networks to address the low uptake of broadband subscriptions, in particular at higher speed tiers.

• Develop a holistic strategy for raising digital skills and better mainstream digital skills in school curricula.

Inclusiveness, social protection, and ageing

Performance gaps

• The pandemic and declining growth just prior to it reversed the declining poverty trend experienced since the early 2000s, exacerbating income inequalities. Moreover, high inflation is having a particularly negative effect on vulnerable groups.

• Youth face poor labour market prospects. One fifth of the 15-24-year-olds are unemployed and many young women are neither employed nor in education or training.

Recommendations

• Make regulations governing permanent work contracts more flexible and increase the scope for fixed-term and temporary work contracts.

• Provide additional targeted and temporary fiscal support to vulnerable groups where needed.

• Continue to facilitate labour force participation of women, including by expanding access to quality childcare and early education.

• Combine modern learning standards and curricula with new teaching methods in primary schools.

Climate transition

Performance gaps

• Türkiye is vulnerable to climate change. Almost one third of its surface area is at high risk of land degradation and desertification. Moreover, while greenhouse gas emissions per capita are below OECD average, they have grown at the fastest pace in the OECD over the past decade, with coal accounting for almost half of emissions. Support to use coal in power generation and for heating is high.

Recommendations

• Make carbon pricing more consistent across sectors.

• Gradually scrap the various subsidies to coal, while compensating poorer households by targeted income support programmes.

Overall performance