OECD Territorial Reviews ISTANBUL, TURKEY Istanbul, the demographic and economic heart of Turkey, has gone through enormous OECD Territorial Reviews changes over the past century. This mega-city of about 15 million inhabitants has seen its population increased more than tenfold since 1950. Over time, it has established itself as the industrial, fi nancial and logistics centre of the country, producing almost ISTANBUL, TURKEY one-third of the national output and absorbing the bulk of foreign direct investment. And, on the international scale, Istanbul ranks among the fastest growing OECD metro-regions. However, Istanbul faces challenges that could hamper its ambition to become a Eurasian hub for fi nance, logistics, culture and tourism, as well as its development in general. Its economy is changing from one driven by labour-intensive activities to one based on knowledge industries, while traditional and labour-intensive sectors (e.g. textiles and its supply chain) are shifting only gradually and slowly to other complementary industry segments. Constraints on human capital development and the informal sector have hindered productivity levels and increased income disparities. Over-migration is putting a burden on Istanbul’s transport, public infrastructure and housing, and earthquake risk management. The scale and variety of these challenges necessitates improving local public management and implementing a national strategy Reviews ISTANBUL, TURKEYOECD Territorial to reduce regional disparities and to limit migration fl ows towards the megalopolis. The Territorial Review of Istanbul is integrated into a series of thematic reviews of metropolitan regions undertaken by the OECD Territorial Development Policy Committee. The overall aim of these case studies is to draw and disseminate horizontal policy recommendations for national governments. The full text of this book is available on line via these links: www.sourceoecd.org/governance/9789264043718 www.sourceoecd.org/regionaldevelopment/9789264043718 Those with access to all OECD books on line should use this link: www.sourceoecd.org/9789264043718 SourceOECD is the OECD’s online library of books, periodicals and statistical databases. For more information about this award-winning service and free trials, ask your librarian, or write to us at [email protected]. ISBN 978-92-64-04371-8 04 2008 05 1 P -:HSTCQE=UYX\V]: XXXPFDEPSHQVCMJTIJOH OECD Territorial Reviews Istanbul, Turkey ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT The OECD is a unique forum where the governments of 30 democracies work together to address the economic, social and environmental challenges of globalisation. The OECD is also at the forefront of efforts to understand and to help governments respond to new developments and concerns, such as corporate governance, the information economy and the challenges of an ageing population. The Organisation provides a setting where governments can compare policy experiences, seek answers to common problems, identify good practice and work to co-ordinate domestic and international policies. The OECD member countries are: Australia, Austria, Belgium, Canada, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, the Slovak Republic, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. The Commission of the European Communities takes part in the work of the OECD. OECD Publishing disseminates widely the results of the Organisation’s statistics gathering and research on economic, social and environmental issues, as well as the conventions, guidelines and standards agreed by its members. This work is published on the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the Organisation or of the governments of its member countries. Corrigenda to OECD publications may be found on line at: www.oecd.org/publishing/corrigenda. © OECD 2008 No reproduction, copy, transmission or translation of this publication may be made without written permission. Applications should be sent to OECD Publishing [email protected] or by fax 33 1 45 24 99 30. Permission to photocopy a portion of this work should be addressed to the Centre français d’exploitation du droit de copie (CFC), 20, rue des Grands-Augustins, 75006 Paris, France, fax 33 1 46 34 67 19, [email protected] or (for US only) to Copyright Clearance Center (CCC), 222 Rosewood Drive, Danvers, MA 01923, USA, fax 1 978 646 8600, [email protected]. FOREWORD – 3 Foreword Across the OECD, globalisation increasingly tests the ability of regional economies to adapt and exploit their competitive edge, as it also offers new opportunities for regional development. This is leading public authorities to rethink their strategies. Moreover, as a result of decentralisation, central governments are no longer the sole provider of development policies. Effective and efficient relations between different levels of government are required in order to improve public service delivery. The objective of pursuing regional competitiveness and governance is particularly relevant in metropolitan regions. Despite producing the bulk of national wealth, metropolitan areas are often characterised by unexploited opportunities for growth, as well as unemployment and distressed areas. Effective policies to enhance their competitiveness need to address their functional region as a whole and thus call for metropolitan governance. Responding to a need to study and spread innovative territorial development strategies and governance in a more systematic way, in 1999 the OECD created the Territorial Development Policy Committee (TDPC) and its Working Party on Urban Areas (WPUA) as a unique forum for international exchange and debate. The TDPC has developed a number of activities, among which are a series of specific case studies on metropolitan regions. These studies follow a standard methodology and a common conceptual framework, allowing countries to share their experiences. This series is intended to produce a synthesis that will formulate and diffuse horizontal policy recommendations. OECD TERRITORIAL REVIEWS: ISTANBUL, TURKEY – ISBN-978-92-64-04371-8 © OECD 2008 4 – ACKNOWLEDGEMENTS Acknowledgements This Review was produced by the OECD Regional Competitiveness and Governance Division in co-operation with the Istanbul Metropolitan Municipality (IMM) and the State Planning Organization (SPO) of the Republic of Turkey. Special thanks are given to Mr. Lütfi Elvan (Deputy State Secretary, SPO), Mr. Mesut Pektas (Secretary General, IMM), Ahmet Yaman (General Director, SPO), Mr. Taner Kavasoğlu (Regional Development and Strategic Planning Expert, SPO), Mr. Lütfi Altun (Director, Urban Transformation Directorate, IMM), Mrs. Rabia Filiz Atay (Project Manager, IMM), Mr. Ali Sabuncu (Expert, SPO), and Mrs. Ayse Gokbayrak (Deputy Director, IMM). Socio-economic information, analysis and statistics on Istanbul were provided through a background report prepared by a team of local experts co-ordinated by the Istanbul Metropolitan Municipality. The OECD Secretariat also wishes to thank the business association TUSIAD, especially Mr. Haluk Tükel (Secretary General), for the in-kind support provided to the project. A team of peer reviewers participated to the process: • Canada: Mr. Adam Ostry, Head of Unit, Policy and Strategic Initiatives, Cities and Communities Branch, Infrastructure Canada, Chairman of the OECD Working Party on Territorial Policy in Urban Areas; • France: Mr. Vincent Fouchier, Deputy Director, Institute for Spatial Planning and Urban Development for the region Ile-de- France (IAURIF), Vice-Chair of the OECD Working Party on Territorial Policy in Urban Areas; • Italy: Mrs. Flavia Terribile, Public Investment Evaluation Unit, Department for Development Policies, Ministry of Economic Development, Italian Delegate of the OECD Territorial Development Policy Committee; OECD TERRITORIAL REVIEWS: ISTANBUL, TURKEY – ISBN-978-92-64-04371-8 © OECD 2008 ACKNOWLEDGEMENTS – 5 • Japan: Mr. Satoru Nishikawa, Director for Disaster Preparedness, Public Relations and International Cooperation, Japanese Cabinet Office; • Mexico: Mr. Roberto Villarreal, former Undersecretary for Urban and Regional Development. A team of international experts participated to the review process: Mr. Jeroen Klink (Director of Community Relations of the Federal University of the Greater ABC Region – Metropolitan São Paulo) and Mr. Andrew Thornley, (Chair in Urban Planning and Director of Planning Studies Programme, London School of Economics and Political Science). Several experts from Turkey also contributed to the report: Mrs. Nese Kumral (Department of Economics, Ege University, Izmir), Mr. Çağaçan Deger (Department of Economics, Middle East Technical University, Ankara), Mr. Hamdi Gargin (Head of the Urban Observatory of Istanbul) and Mr. Jean-François Perouse (Assistant Professor in Galatasaray University, Istanbul). This Review was directed by Mr. Mario Pezzini, Head of Regional Competitiveness and Governance Division, and co-ordinated and drafted by Mrs. Lamia Kamal-Chaoui. Members of the OECD Secretariat that participated to the review included: Mrs. Dorothée Allain-Dupre (governance), Mr. Olaf Merk (local finance), Mr. Javier Sanchez-Reaza (socio-economic analysis) and Mrs. Ritsuko Yamazaki-Honda (transport, housing and disaster prevention).