This report sets out a new poverty line methodology for Turkey, as the basic measure of poverty in the country. The report finds that growth between 1994 and 2002 was not sufficiently strong to produce any sizable reduction in poverty, and the impact of the little growth there was, was dampened by an increase in inequality.
The State Institute of Statistics/World Bank (DIEM) team analyzed the data from the 1994 and the 2002 Household Budget Survey (HBS) to (a) assess comparability of consumption measures of welfare between the two main surveys datasets, (b) establish comparable poverty lines, (c) and discem trends in poverty and inequality in Turkey between 1994 and 2002.The DIE/WB team concluded that the results are consistent with macroeconomic data, and are robust with respect to measurement assumptions. Read More [ pdf ]
2- Macroeconomic Context
Despite many advantages ranging from its strategic location to its dynamic population, Turkey has not achieved the stable high growth of leading emerging market economies. Nor has it matched the growth rate of European Union (EU) accession countries such as Hungary and Poland, or the fast-growing cohesion counties such as Spain and Portugal. Turkey’s per capita income level declined from 26% of the EU average in 1991 to 22% in 2002. Onaverage, the Turkish economy grew slightly under 3 percent per year over the past decade-respectable, but well below the best-performing emerging economies. Read More [ pdf ]
3- Poverty Profile
In 2002, 27% of the Turkish population was poor, as determined by the complete poverty line methodology detailed in Annex One. This poverty profile is based on that definition of poverty. Poverty in Turkey is strongly associated with age and household composition, where children and families with children are poorer than average. Read More [ pdf ]
4- Education
A key implication of the 1997-1998 education reform was the phasing out of lower-secondary (general and vocational) schools that served grades 6 to 8. This reform was controversial, since both lowersecondary parts of vocational schools that offered religious training and other lower-secondary schools had to be closed. The reform, however, also resulted in a renewed public and private commitment to the achievement of universal enrollment levels in basic education. Read More [ pdf ]
5- Health
This chapter looks at health status, access to, and use of health care services, and private and public expenditure on health care, with the objective o f determining to what extent the lower-income groups have adequate health care protection. It i s largely based on data o f the health module o f the 2001 Household Consumption and Income Survey (HCIS), and on data on health care expenditure from the 2002 Household Budget Survey (HBS). Read More [ pdf ]
6- Labor
In Turkey, as in most countries, poverty is closely correlated with employment status and type of job, whether formal or informal. Informally employed or casual workers have a noticeably higher rate of poverty. In Turkey, unemployment of the household head is particularly associated with poverty. Education is a key factor in explaining employment, and therefore poverty outcomes. Certain sectors of the economy employ more poorly educated people, and poverty rates for those employed in these sectors are higher than average. This chapter uses two sources of information: the Labor Force Surveys (LFS) conducted by the State Institute of Statistics (DIE), and the Household Budget Survey (HBS). Read More [ pdf ]
7- Social Protection
Social protection in Turkey consists primarily of limited formal systems of pensions and social assistance, supplemented greatly by informal mechanisms. The role of informal coping mechanisms, particularly interhousehold transfers of food and other assistance, is documented in the World Bank’s report, “Turkey: Poverty and Coping After Crises” (2003). For social insurance, the primary informal mechanism is the extended family, with elderly members receiving significant support from children and other relatives. This mechanism works well to keep most elderly from poverty in general, as documented in the poverty profile chapter, but is under increasing pressure, particularly in urban areas. Read More [ pdf ]
Volume 2: Poverty Policy Recommendations Volume Two is of World Bank authorship only, and represents the views of the World Bank in considering Volume One and findings from previous World Bank and Turkish literature.
Key findings of the report on inequality, poverty and comparison of the data with EU countries. Read More [ pdf ]
3- Policy Recommendations
Policy Recommendations of the World Bank on Macroeconomics, Government Reform Program, Education, Health, Labor Market and Social Protection. Read More [ pdf ]
Volume 1: Main Report
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