DECISION OF THE GRAND NATIONAL ASSEMBLY OF TURKEY Decision on the approval of the Eleventh Development Plan (2019-2023) Decision No. 1225 Decision Date: 18 July 2019 The Eleventh Development Plan (2019-2023) was approved in the 105th plenary session of The Grand National Assembly of Turkey on 18.07.2019, in accordance with the provision of the Law No. 3067, dated 30.10.1984. The Eleventh Development Plan (2019-2023) has been prepared in Turkish. This is translation of the original document. CONTENTS TABLES......................................................................................................................................................vi ABBREVIATIONS...................................................................................................................................viii CHAPTER ONE 1. INTRODUCTION...................................................................................................................................1 2. GLOBAL DEVELOPMENTS AND TRENDS.........................................................................................5 2.1. GLOBAL TRENDS AND INTERACTIONS WITH TURKEY......................................................5 2.2. GLOBAL MACROECONOMIC DEVELOPMENTS AND PROSPECTS...................................15 3. PRE-PLAN PERIOD ECONOMIC AND SOCIAL DEVELOPMENTS IN TURKEY.........................19 CHAPTER TWO 1. VISION, MAIN OBJECTIVES AND PRINCPLES OF THE ELEVENTH DEVELOPMENT PLAN......29 2. OBJECTIVES AND POLICIES OF THE PLAN...................................................................................31 2.1. STABLE AND STRONG ECONOMY............................................................................................31 2.1.1. Macroeconomic Policy Framework...................................................................................................33 2.1.2. Domestic Savings.................................................................................................................................39 2.1.3. Balance of Payments............................................................................................................................40 2.1.4. Inflation and Monetary Policy...........................................................................................................44 2.1.5. Financial Sector...................................................................................................................................45 2.1.6. Fiscal Policy..........................................................................................................................................49 2.1.7. Social Security System and Finance..................................................................................................53 2.1.8. Public Enterprises and Privatization.................................................................................................54 2.2. COMPETITIVE PRODUCTION AND PRODUCTIVITY..........................................................57 2.2.1. Industrial Policies................................................................................................................................61 2.2.1.1. Horizontal Policy Areas.............................................................................................................61 2.2.1.1.1. Strong Financial Structure...............................................................................................61 2.2.1.1.2. High Institutional Capacity..............................................................................................64 2.2.1.1.3. Business and Investment Climate...................................................................................67 2.2.1.1.4. Human Resources..............................................................................................................73 2.2.1.1.5. Logistics and Energy Infrastructure...............................................................................75 2.2.1.1.6. Digital Transformation.....................................................................................................80 2.2.1.1.7. R&D and Innovation.........................................................................................................82 2.2.1.1.8. Critical Technologies........................................................................................................84 2.2.1.2. Priority Sectors...........................................................................................................................86 2.2.1.2.1. Chemical Industry.............................................................................................................86 2.2.1.2.2. Pharmaceuticals and Medical Devices...........................................................................87 2.2.1.2.3. Electronics..........................................................................................................................88 2.2.1.2.4. Machinery and Electrical Equipment.............................................................................89 2.2.1.2.5. Automotive.........................................................................................................................91 2.2.1.2.6. Rail System Vehicles..........................................................................................................92 2.2.1.3. Other Manufacturing Industries..............................................................................................94 III CONTENTS 2.2.1.3.1. Textile-Clothing-Leather Industry..................................................................................94 2.2.1.3.2. Non-Metallic Mineral Products Industry......................................................................94 2.2.1.3.3. Basic Metal Industry.........................................................................................................94 2.2.1.3.4. Ship-Building Industry.....................................................................................................94 2.2.1.3.5. Furniture Industry.............................................................................................................95 2.2.2. Priority Development Areas...............................................................................................................95 2.2.2.1. Agriculture...................................................................................................................................95 2.2.2.2. Defence Industry......................................................................................................................101 2.2.2.3. Tourism......................................................................................................................................103 2.2.3. Sectoral Policies..................................................................................................................................106 2.2.3.1. Public Investment Policies.......................................................................................................106 2.2.3.2. Science, Technology and Innovation.....................................................................................109 2.2.3.3. Entrepreneurship and SMEs..................................................................................................111 2.2.3.4. Intellectual Property Rights....................................................................................................113 2.2.3.5.Information and Communication Technologies..................................................................117 2.2.3.6. Energy........................................................................................................................................122 2.2.3.7. Mining.......................................................................................................................................125 2.2.3.8. Logistics and Transportation..................................................................................................127 2.2.3.9. Services for the Promotion of Trade and Consumer Protection.......................................131 2.2.3.10. Customs Services....................................................................................................................132 2.2.3.11. Construction, Engineering-Architectural, Technical Consultancy and Contracting Services.....................................................................................................................................135 2.2.3.12. Management Consultancy.....................................................................................................136 2.3. QUALIFIED PEOPLE, STRONG SOCIETY............................................................................137 2.3.1. Education...........................................................................................................................................138 2.3.2. Employment and Working Life.......................................................................................................144 2.3.3. Health.................................................................................................................................................148 2.3.4. Strengthening the Family..................................................................................................................152 2.3.5. Woman...............................................................................................................................................154 2.3.6. Children.............................................................................................................................................156