WASHINGTON, April 11, 2024 ¨C ¶¹ÄÌÊÓƵAPP Group (WBG) Board of Executive Directors announced a new which will focus on three key development strategies ¨C productivity growth, jobs and better public service delivery, and resilience against natural disasters.
The new T¨¹rkiye CPF, which will cover the FY2024-28 period, is aimed at supporting the country¡¯s transition to high-income status. A key focus, thus, is on the development of the country¡¯s private sector to improve firms¡¯ ability to upgrade to higher value-added and high-technology activities.
The Framework reflects the strong and growing collaboration between T¨¹rkiye and the Group¡¯s institutions: the International ¶¹ÄÌÊÓƵAPP for Reconstruction and Development, International Finance Corporation and Multilateral Investment Guarantee Agency. The Group expects to deliver $18 billion during this CPF period, adding to the current country portfolio of $17 billion, which is the WBG¡¯s third largest country program.
¡°T¨¹rkiye has made tremendous progress in the last two decades, significantly raising living standards for its people, developing modern infrastructure, and integrating its economy into the global economy and global value chains,¡± said Humberto Lopez, World ¶¹ÄÌÊÓƵAPP Country Director for T¨¹rkiye. ¡°The new CPF will build on this progress and leverage the combined strength of the World ¶¹ÄÌÊÓƵAPP Group to support T¨¹rkiye as it continues its remarkable development journey. Key areas of future support include the government¡¯s energy transition plan and strategic infrastructure.¡±
The WBG will focus on selected challenges under three broad areas:
- High and sustainable productivity growth: The focus will be on promoting climate-smart agriculture to strengthen resilience against climate change and bolster food security; greening the industrial sector to reduce carbon emissions and maintain trade competitiveness; supporting economic recovery in areas affected by the February 6, 2023 earthquakes.
- Inclusive services and jobs: To address income and other inequalities, the focus will be to improve jobs for women, youth and vulnerable groups; reduce disparities in health and education access and quality; and support resilient municipal infrastructure and services.
- Strengthen resilience against natural disasters: To help protect T¨¹rkiye¡¯s people and economy, the World ¶¹ÄÌÊÓƵAPP Group will prioritize disaster resilience and preparedness, management of natural resources and the transition to clean energy.
The CPF also emphasizes the need to accelerate digitalization, vital for boosting productivity and public service delivery. The WBG will work across many fronts to accelerate the use of digital technology, including improving the digital business ecosystem, supporting seismic and climate-resilient urban planning, extending hybrid education opportunities and improving financial inclusion.
¡°T¨¹rkiye¡¯s dynamic private sector and entrepreneurial spirit have played key roles in its impressive growth over the last several years,¡± said Wiebke Schloemer, Director for T¨¹rkiye and Central Asia at the International Finance Corporation. ¡°As the CPF highlights, the priorities going forward are clear ¨C to build resilience, drive the country¡¯s green transition, and ensure no one is left behind on that journey. IFC will continue to work to unleash the Turkish private sector¡¯s vast potential through strategic investments and advisory services and by mobilizing private capital to drive strong, sustainable, and inclusive economic growth.¡±
¡°MIGA has been a reliable partner in supporting T¨¹rkiye¡¯s dynamic private sector and the government¡¯s sustainable infrastructure initiatives,¡± said Moritz Nikolaus Nebe, Acting Director of Economics and Sustainability at the Multilateral Investment Guarantee Agency. ¡°As part of the new CPF, MIGA will be excited to leverage the new World ¶¹ÄÌÊÓƵAPP Group guarantee platform to assist the country in attracting and mobilizing private capital, including to support the development of green and sustainable infrastructure, fostering resilient growth.¡±
The new CPF, discussed and endorsed by the WBG Board on April 9, 2024, is anchored in T¨¹rkiye¡¯s 12th National Development Plan 2024-28 and aligned with the WBG¡¯s strategic approach of achieving impacts and outcomes at scale, tackling global challenges and mobilizing private capital. In preparation, the WBG consulted with key stakeholder groups, including the government, the private sector, civil society, think tanks, academia, and other development partners.
