Including gender-sensitive policies in a large crisis-response DPL

Including gender-sensitive policies in a large crisis-

response DPLThe Case of Turkey in 2009/10

Mark Roland [email protected]

2PREM Week 2012: Gender & DPL

Country context

PREM Week 2012: Gender & DPL 3

Turkey in mid-2009 Doubts about macro stability; no IMF program Progress on public sector management reforms Lack of progress on reforms affecting private

investment, the business climate, & employment Crisis response: good dialogue & policy reforms Strong government demand for DPL support

• In mid-2009 the Bank commenced preparation of a $1.3 billion DPL to support Turkey’s crisis response


Turkey’s gender disparities: 1

Male and female labor-force participation in international comparison, 1980-2006


Turkey’s gender disparities: 2

Male and female labor-force informality status, by age


0 10,000 20,000 30,000 40,000 50,0000

20

40

60

80

100

120

Chile

Germany

Indonesia

Italy

RussiaSweden

Turkey

GDP per capita (USD, constant prices)

Prep

rimar

y En

rollm

ent (

Gros

s)Preschool enrollment: a key driver


DPLs in Turkey


Pre-existing DPL architecture 3 programs

• Public sector• Private sector• Energy and sustainability

Public sector• Pensions, health systems, fiscal sustainability, PFM

Private sector• Investment climate, regulation, customs, labor market

Crisis response• Transfers: short-term “job protection”• Vocational training: scale-up• Financial sector liquidity


Principal levers to reduce gender disparities in Turkey, based on

research Education

• Preschool has an impact on labor force participation AND intergenerational transmission of inequality

Health• Green card system of universal access protects

female and maternal outcomes especially Labor markets

• Policies to reduce informality and help SMEs will benefit women differentially

Cultural factors


REGE DPL design


“Restoring Equitable Growth & Employment” (REGE DPL)

PPDPL 1+2 PPDPL 3content

Continued fiscal

consolidation

CEDPL 1+2 CEDPL 3content

Equitable growth and

employmentCrisis

Response

2007/08/09 2009/10 2011

REGE1 REGE2Public sector agenda

Private sector agenda

GlobalCrisis


REGE DPL prior actions(4 of 9 with likely gender-differentiated impacts)

Maintaining Inclusive Social Programs at Sustainable Cost• Social Security and Universal Health Insurance Law implementation• Global budgets for MOH hospitals and spending controls in university and

private hospitals Strengthening Public Financial Management

• Performance based budgeting Employment and Social Protection during the Crisis

• CBRT blind broker function• 50% increase and extension of short-time employment compensation to

reduce layoffs• Expansion of loan guarantees for SMEs (by TL 1 billion)• Accelerated expansion of vocational training (and stipends)

Private-Sector Led Growth and Job Creation after the Crisis• Private sector Streamlined customs procedures• Launch of universal preschool education (initially in 32 of 82 provinces)

with hiring of 15,000 preschool teachers


Detailed PSIA Positive net distributional & poverty reduction

impacts• Healthcare copayments have mild negative impact; to be

weighed against fiscal sustainability• Employment-related crisis measures dominate effect of

copayments• 30% of poorest 2 quintiles eligible for short-time employment

compensation• Vocational training has short-term impact on incomes (through

stipend)• Long-term poverty reduction impacts of building confidence

after the crisis c.f. 2002-08: poverty declined from 27% to 17%

Differential impacts of program on women & the young• Informal workers, children & young workers most at risk of

poverty• Preschool education reduces poverty through improved

educational attainment & labor force participation of parents, particularly mothers Estimated impacts: incomes >8%, within-cohort poverty <11%, FLFP

>9%• Reduced SS contributions for young workers & women has

limited impact


Concluding thoughts


Possible lessons on gender in a DPL1. Built a strong base of focused empirical

analysis2. Ignored boundaries between sectors on

poverty & gender dialogue3. Exercised pragmatism in designing a feasible

DPL structure4. Invested in a detailed simulation-driven PSIA5. Kept an eye on the long-term impact of a

collaborative client relationship6. Accepted limitations from cultural factors

affecting gender outcomes


Q&A

Including gender-sensitive policies in a large crisis-response DPL

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