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2007-Annual-Programme-.Pdf 2007 Annual Programme 2007 Annual Programme was approved by Council of Ministers on October 16, 2006 with Decree No. 2006/11105. This document is a translation of the original document. Published by State Planning Organization of Republic of Turkey Edited by General Directorate of Annual Programs and Economic Evaluation of State Planning Organization Address : Necatibey Cad. No: 108 06100 Ankara, TURKEY Phone : +90 312 294 50 00 http://www.spo.gov.tr http://ekutup.dpt.gov.tr/program/2007i.pdf 2007 Annual Programme DECREE OF THE COUNCIL OF MINISTERS Decree Number: 2006/11105 Adoption of the Report dated 12/10/2006 and numbered 2006/80, which was submitted to the Council of Ministers by the Higher Planning Council along with the attached “2007 Annual Programme” and “Decision on the Implementation, Coordination and Supervision of 2007 Annual Programme”, was decided by the Council of Ministers on 16/10/2006, in reference to the article 28 of the Decree-Law number 540. http://ekutup.dpt.gov.tr/program/2007i.pdf 2007 Annual Programme INDEX ABBREVIATIONS xi PART ONE 1 MACROECONOMIC GOALS AND POLICIES OF 2007 ANNUAL 1 PROGRAMME I. MACROECONOMIC GOALS 1 II. MACROECONOMIC POLICIES 1 A. GROWTH AND EMPLOYMENT 1 B. MONETARY POLICY AND PRICE STABILITY 1 C. BALANCE OF PAYMENTS 2 D. FISCAL POLICY 2 E. PUBLIC INVESTMENTS 3 F. SEE’S AND SOCIAL SECURITY 3 PART TWO 7 MACROECONOMIC DEVELOPMENTS AND TARGETS 7 I. DEVELOPMENTS IN THE WORLD ECONOMY 7 II. DEVELOPMENTS IN THE TURKISH ECONOMY AND TARGETS 10 A. GROWTH AND EMPLOYMENT 10 1. GNP and Sectoral Growth Rates 10 2. Employment 13 3. General Equilibrium of the Economy 17 B. INVESTMENTS 20 1. Sectoral Distribution of Investments 20 2. Implementation of Public Sector Investments 23 C. BALANCE OF PAYMENTS 26 1. World Trade 26 2. Current Account Balance 29 3. Capital and Financial Account 35 4. External Debt Stock 38 D. INFLATION AND MONETARY-EXCHANGE RATE POLICY 39 1. Inflation 39 2. Monetary-Exchange Rate Policy 42 http://ekutup.dpt.gov.tr/program/2007i.pdf 2007 Annual Programme 2007 Annual Programme PART THREE 49 DEVELOPMENTS AND TARGETS IN PUBLIC FINANCE 49 I. GENERAL GOVERNMENT 49 1. Current Outlook 49 2. Targets For The Year 2007 50 A. CENTRAL GOVERNMENT BUDGET 57 1. Current Outlook 57 2. Targets For The Year 2007 60 B. LOCAL GOVERNMENTS 62 1. Current Outlook 62 2. Targets For The Year 2007 63 C. REVOLVING FUNDS 64 1. Current Outlook 64 2. Targets For the Year 2007 65 D. SOCIAL SECURITY INSTITUTIONS 66 1. Current Outlook 66 2. Targets For the Year 2007 69 E. FUNDS 70 1. Current Outlook 70 2. Targets For the Year 2007 70 II. STATE ECONOMIC ENTERPRISES 71 1. Current Outlook 71 2. Targets for the Year 2007 80 PART FOUR 81 DEVELOPMENT AXES 81 I. ENHANCING COMPETITIVENESS 81 A. IMPROVING BUSINESS CLIMATE 82 1. Current Outlook 82 2. Main Objectives and Targets 86 3. Policy Priorities and Measures 86 B. REDUCING THE INFORMAL ECONOMY 88 1. Current Outlook 88 2. Main Objectives and Targets 89 3. Policy Priorities and Measures 90 C. DEVELOPING THE FINANCIAL SYSTEM 91 1. Current Outlook 91 2. Main Objectives and Targets 102 3. Policy Priorities and Measures 103 ii http://ekutup.dpt.gov.tr/program/2007i.pdf 2007 Annual Programme Index D. IMPROVING THE ENERGY AND TRANSPORTATION INFRASTRUCTURE 105 ENERGY 105 1. Current Outlook 105 2. Main Objectives and Targets 107 3. Policy Priorities and Measures 112 TRANSPORTATION 113 1. Current Outlook 113 2. Main Objectives and Targets 117 3. Policy Priorities and Measures 119 E. PROTECTION OF ENVIRONMENT AND IMPROVEMENT OF URBAN 124 INFRASTRUCTURE 1. Current Outlook 124 2. Main Objectives and Targets 126 3. Policy Priorities and Measures 127 F. R&D and ENHANCING INNOVATION 129 1. Current Outlook 129 2. Main Objectives and Targets 130 3. Policy Priorities and Measures 131 G. DISSEMINATION OF INFORMATION AND COMMUNICATION 134 TECHNOLOGIES 1. Current Outlook 134 2. Main Objectives and Targets 135 3. Policy Priorities and Measures 136 H. IMPROVING THE AGRICULTURAL STRUCTURE 137 1. Current Outlook 137 2. Main Objectives and Targets 141 3. Policy Priorities and Measures 142 I. ENSURING TRANSFORMATION TO HIGH VALUE-ADDED PRODUCTION STRUCTURE IN INDUSTRY AND SERVICES 148 INDUSTRY 148 1. Current Outlook 148 2. Main Objectives and Targets 156 3. Policy Priorities and Measures 156 SERVICES 161 1. Current Outlook 161 2. Main Objectives and Targets 163 3. Policy Priorities and Measures 164 CONSTRUCTION, ENGINEERING-ARCHITECTURE, TECHNICAL 166 CONSULTANCY AND CONTRACTING SERVICES 1. Current Outlook 166 2. Main Objectives and Targets 167 3. Policy Priorities and Measures 167 iii http://ekutup.dpt.gov.tr/program/2007i.pdf 2007 Annual Programme 2007 Annual Programme INFORMATION TECHNOLOGY SERVICES 169 1. Current Outlook 169 2. Main Objectives and Targets 169 3. Policy Priorities and Measures 169 COMMERCIAL SERVICES 170 1. Current Outlook 170 2. Main Objectives And Targets 172 3. Policy Priorities and Measures 173 II. FOSTERING EMPLOYMENT 174 A. IMPROVING LABOR MARKET 174 1. Current Outlook 174 2. Main Objectives and Targets 178 3. Policy Priorities and Measures 178 B. INCREASING THE SENSITIVITY OF EDUCATION TO LABOUR 179 DEMAND 1. Current Outlook 179 2. Main Objectives and Targets 180 3. Policy Priorities and Measures 181 C. IMPROVING ACTIVE LABOR MARKET POLICIES 182 1. Current Outlook 182 2. Main Objectives and Targets 182 3. Policy Priorities and Measures 183 III. STRENGTHENING HUMAN DEVELOPMENT AND SOCIAL SOLIDARITY 184 A. IMPROVEMENT OF EDUCATION SYSTEM 184 1. Current Outlook 184 2. Main Objectives and Targets 188 3. Policy Priorities and Measures 189 B. MAKING THE HEALTH SYSTEM EFFECTIVE 193 1. Current Outlook 193 2. Main Objectives and Targets 195 3. Policy Priorities and Measures 195 C. IMPROVING INCOME DISTRIBUTION, SOCIAL INCLUSION AND COMBAT WITH POVERTY 197 1. Current Outlook 197 2. Main Objectives and Targets 201 3. Policy Priorities and Measures 202 D. INCREASING THE EFFECTIVENESS OF SOCIAL SECURITY SYSTEM 204 1. Current Outlook 204 2. Main Objectives and Targets 207 3. Policy Priorities and Measures 207 iv http://ekutup.dpt.gov.tr/program/2007i.pdf 2007 Annual Programme Index E. PROTECTING AND PROMOTING CULTURE AND STRENGHTENING SOCIAL DIALOGE 208 1. Current Outlook 208 2. Main Objectives and Targets 209 3. Policy Priorities and Measures 209 F. INCREASING EFFICIENCY AND QUALITY OF SOCIAL 212 EXPENDITURES 1. Current Outlook 212 2. Main Objectives and Targets 213 IV. THE PROVISION OF REGIONAL DEVELOPMENT 213 A. INCREASING THE EFFECTIVENESS OF REGIONAL DEVELOPMENT 213 POLICY AT THE CENTRAL LEVEL 1. Current Outlook 213 2. Main Objectives and Targets 216 3. Policy Priorities and Measures 216 B. ENHANCING DEVELOPMENT BASED ON LOCAL DYNAMICS AND INTERNAL POTENTIALS 217 1. Current Outlook 217 2. Main Objectives and Targets 218 3. Policy Priorities and Measures 219 C. IMPROVING THE INSTITUTIONAL CAPACITY AT LOCAL LEVEL 220 1. Current Outlook 220 2. Main Objectives and Targets 220 3. Policy Priorities and Measures 221 D. RURAL DEVELOPMENT 221 1. Current Outlook 221 2. Main Objectives and Targets 224 3. Policy Priorities and Measures 224 V. IMPROVING THE QUALITY AND EFFECTIVENESS IN PUBLIC SERVICES 225 A. RATIONALIZING THE TASKS AND AUTHORITIES IN AND AMONG 226 THE INSTITUTIONS 1. Current Outlook 226 2. Main Objectives and Targets 226 3. Policy Priorities and Measures 227 B. ENHANCING POLICY MAKING AND IMPLEMENTATION CAPACITY 227 1. Current Outlook 227 2. Main Objectives and Targets 228 3. Policy Priorities and Measures 228 C. IMPROVING THE HUMAN RESOURCES IN THE PUBLIC SECTOR 229 1. Current Outlook 229 2. Main Objectives and Targets 229 3. Policy Priorities and Measures 229 v http://ekutup.dpt.gov.tr/program/2007i.pdf 2007 Annual Programme 2007 Annual Programme D. ENHANCING THE DISSEMINATION AND EFFECTIVENESS of e-GOVERNMENT 230 1. Current Outlook 230 2. Main Objectives and Targets 231 3. Policy Priorities and Measures 231 E. IMPROVING THE JUDICIAL SYSTEM 232 1. Current Outlook 232 2. Main Objectives and Targets 233 3. Policy Priorities and Measures 233 F. ENHANCING THE EFFECTIVENESS OF SECURITY SERVICES 234 1. Current Outlook 234 2. Main Objectives and Targets 234 3. Policy Priorities and Measures 234 G. NATURAL DISASTERS 235 1. Current Outlook 235 2. Main Objectives and Targets 235 3. Policy Priorities and Measures 236 PART FIVE 237 THE EUROPEAN UNION AND FOREIGN ECONOMIC RELATIONS 237 I. PROCESS OF ALIGNMENT WITH THE EUROPEAN UNION 237 II. MULTILATERAL AND BILATERAL ECONOMIC COOPERATION 239 A. MULTILATERAL ECONOMIC COOPERATION 239 1. Current Outlook 239 2. Main Objectives and Targets 242 3. Policy Priorities and Measures 243 B. BILATERAL ECONOMIC COOPERATION 245 1. Current Outlook 245 2. Main Objectives and Targets 245 3. Policy Priorities and Measures 246 C. TECHNICAL COOPERATION 247 1. Current Outlook 247 2. Main Objectives and Targets 248 3. Policy Priorities and Measures 248 vi http://ekutup.dpt.gov.tr/program/2007i.pdf 2007 Annual Programme Index TABLES TABLE:I. 1 - Main Economic Aggregates 5 TABLE:II. 1 - Main Economic Indicators in the World Economy 9 TABLE:II. 2 - Growth Rates of Value Added and Sectoral Shares in GDP 10 TABLE:II. 3 - Per Capita GDP 11 TABLE:II. 4 - Developments in the Labour Market as of Years 13 TABLE:II. 5 - Developments in the Urban and Rural Labour Market 14 TABLE:II. 6 - Employment According to the Type of Business 14 TABLE:II. 7 - Employment According to the Payment Condition 15 TABLE:II. 8 - Regional Unemployment Rates 15 TABLE:II. 9 - Developments in the Domestic Labour Market in 2006 16 TABLE:II. 10 - General Equilibrium of the Economy 18 TABLE:II. 11 - General Equilibrium of the Economy 19 TABLE:II. 12 - Public Sector Fixed Capital Investments (2005) 21 TABLE:II. 13 - Public Sector Fixed Capital Investments (2006) 21 TABLE:II.
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