PSMEC - Private Sector - S3 Tayfun Bayazit
10
Turkish Economy: Dynamism of Turkish Private Sector Vice-President of Board of Directors Tayfun Bayazıt TÜSİAD The Private Sector in the Middle East Conference Session 3: International Experiences in Developing the Private Sector Dec 3 rd 2013, Riyadh
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The Private Sector Middle East Conference, Riyadh, Saudi Arabia, Dec 3rd, 2013. Hosted by the Saudi Chambers of Commerce -- Session 3 - Tayfun Bayazit, Bayazit Consulting Service
Transcript of PSMEC - Private Sector - S3 Tayfun Bayazit
Turkish Economy: Dynamism of Turkish Private Sector
Vice-President of Board of Directors
Tayfun Bayazıt
TÜSİAD
The Private Sector in the Middle East ConferenceSession 3: International Experiences in Developing the Private Sector
Dec 3rd 2013, Riyadh
Key Drivers of the Development of
Turkish Private Sector in the Last Decade
• Macroeconomic stability supported by political stability
– Political continuity and effective policy making
– Sustained fiscal discipline
• Privatization and a more liberal growth model
– Successful privatization programme
– Elimination of the severe crowding-out effects to unlock the
potentials of the private sector
– Adoption of Flexible Exchange Rate Regime
• Development of economic institutions
– Regulatory Reforms and Independent Regulatory and Supervisory Authorities
– Strengthening of Independent Central Banking
• Efforts for Further Integration with the Global Economy
– Turkey’s EU Accession Bid
Macroeconomic Stability Driven by Political Continuity,
Effective Policy Making and Sustained Fiscal Discipline
...Unlocked the Potentials of the Turkish Economy
... And With the Elimination of the Severe Crowding-out Effects,
Especially Fiscal Dominance, Unlocked the Potentials
of the Turkish Private Sector
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2010
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Privatization and Budget Balance
Budget Balance (as % of GDP)Privatization Revenues (as % of GDP-right)
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2010
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Employment (YoY % change)
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An Overview of Fiscal Dominance Central Government Buddget Balance (as % of GDP)EU Defined General Government Debt Stock (as % of GDP-Right)
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Asset Structure of Banking Sector (%)
Government Bonds/Deposits
Loans/Deposits
1.8 3.3
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1993-2002 2003-2012
Contributions to GDP Growth (YoY % Change)
Private SectorFixed InvestmentOther
Trade Liberalization, Particularly Customs Union Has Increased
the Competitiveness of Turkish Private Sector
Economic Coordination Platforms in Turkey
Government
The Investment Advisory
Council of Turkey
The Economic and
Social Council
Economy Coordination
Board
The Coordination
Council for the Improvement of the Investment
Environment
Business
Business
Business
Business
Labor
International
Investors
Labor
Industrial Strategy 2011-2014,
Basic Sectoral Policy Document
Increasing the weight of mid- and high-tech sectors in
production and exports,
Transition to high added value
products in low-tech sectors
Increasing the weight of companies
that can continuously
improve their skills
Objective: “increasing the competitiveness and efficiency of Turkish Industry andexpediting the transformation to an industry structure which has moreshare in world exports, where mainly high-tech products with high addedvalue are produced, which has qualified labor and which at the same time issensitive to the environment and the society.”
Vision: “Becoming the production base of Eurasia in medium and hightech products.”
Industrial Strategy 2011-2014,
Is It SuccessfulM
oo
dy’
s
• Baa3St
and
ard
& P
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• BB+ Fitc
h • BBB-
Turkey’s Rating Map (as of November 25, 2013) Global Competitiveness
PPP in Turkey Has Played a Key Role
in Private Sector’s Dynamism in the Last Decade
PPP in TURKEY: History
• Turkey is one of the first countries in the world which developed its own PPP legislation. With the Law numbered 3096 from 1984 the private sector involvement specifically in to power plants projects was allowed.
• Turkey has enacted in 1994 a general law for BOT, the Law number 3996, for different infrastructure areas like transportation, energy and water supply and treatment.
• On this legal basis, first implementations of PPP projects in Turkey came on agenda and several projects, mainly for electricity production, drinking water facilities have been realized as BOT and later as BO projects.
• In the energy sector, between 1995 and 2001, thirty power plants with a total capacity of 8500 MW –equaling nearly one fourth of Turkey’s power production capacity have been completed under the BOT and BO models.
