European Union Twinning Project for Turkey Towards Improving the Investment Climate in Turkey:
Comments on the YO˙IKK Reform Process
The content of this publication is the sole responsibility of the Twinning Project leaders and authors and can in no way be taken to reflect the views of the European Union.
September 2006
Foreword
It is my warm pleasure to welcome this overall report on the conclusion of the Twinning Project, which has been a fruitful and constructive collaboration between Turkey and Germany.
Over the past years the progress of the Reform Programme for the Improvement of the Investment Climate under the YO˙IKK (Yatirim Ortaminin yile¸stirilmesi Koordinasyon Kurulu) was reviewed under the European Union sponsored Twinning Project titled ‘Towards Improving The Investment Climate In Turkey: Comments on the YO˙˙IKK Reform Process’ between the Turkish Undersecretariat of Treasury (‘HAZ˙I NE’) and the German Federal Ministry of Economics and Technology (‘BMWI’).
The YO˙IKK process is part of the comprehensive reform programme initiated to modernise and streamline the legal, regulatory and administrative framework of the investment climate in Turkey. In order to reflect views and priorities of the private sector on the policies related to investment environment, a national platform has been composed with the participation of decision-makers of relevant ministries and heads of NGOs representing private sector in Turkey.
As a matter of fact, any successful reform strategy demands broad consensus in civil society and strong commitment of support and joint action by both the public and private sectors. In this regard, the YO˙IKK Process, in its mandate, structure and representative nature, has already established a constructive public/private policy dialogue on streamlining the investment climate. This in turn, provides the foundation for enhancing the international competitiveness of the Turkish economy in cooperation with YO˙IKK partners. The adoption of a modern foreign investment regime, development of an investment promotion capacity, simplification and reduction of many administrative and regulatory procedures for business, and the strengthening of intellectual property protection have been the examples of the YO˙IKK reform spectrum.
This Twinning Project, aiming at commenting on the progress and accomplishments of the YO˙IKK programme, served to bolster the activities held in the scope of the YO˙IKK process, and has added some new issues concerning the investment environment that need further improvement.
The Twinning Project Report, prepared after the studies held during the project period, concludes that the YO˙IKK process should build on its constructive work to date by strengthening its strategy, structures and work processes/methodologies and evolving towards national competitiveness enhancement, along the lines of other countries. This evolution would require the adoption of a Turkish competitiveness enhancement strategy with all the policy areas affecting the investment and business climate being regularly monitored through a structured work process. During the project period, Turkish policy makers have benefited from the experience sharing under the Twinning Project and the exchange and dialogue on successful policy practice and methodologies. The recommendations presented in the overall report and individual policy reviews provide a valuable reference handbook for the future reform agenda of Turkey.
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