Boosting Regional Competitiveness

in Turkey

Project Launch Event – Project

presentation

21 January 2015

Sheraton Ankara Hotel, Turkey

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Agenda

Project context Objectives and rationale

Key deliverables and timeline Immediate next steps

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The OECD at a glance 34 Member countries with a broad policy expertise

A forum where governments can compare policy experiences and address the economic,

social and governance challenges of globalisation as well as to exploit its opportunities

Member countries Policy expertise

Horizontal policy areas Competitiveness Territorial Development and Public

Governance Investment Entrepreneurship, SMEs and Local

Development Employment, Labour and Social Affairs Trade Education Tax Policy and Administration

Sector-specific policy areas Agriculture Industry Science and Industry Financial and Enterprise Affairs

Note: The map is without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.

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Turkey’s GDP has doubled in the last 20 years, outperforming OECD countries Real GDP growth, 1995=100

Source: OECD Economic Survey of Turkey 2014

Korea

Poland

TURKEY

Mexico

OECD

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An

nu

al g

row

th r

ate

of

regi

on

al v

alu

e a

dd

ed

2

00

4-2

01

1

Regional value added per capita, USD, 2011

Share of Turkey’s population

Level 1

Level 2

Level 3

Level 4

Level 5

Level 6

Ministry of Development’s Socio-economic Development Index (2011)

Source: Turkstat Note: RVA is defined as the difference between the total revenues of the factors of production located in a specific region and their total purchases

Regional disparities remain a major challenge in Turkey Regional value added per capita (RVA), status and recent evolutions

Western

regions

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Territorial disparities also reflect uneven levels of regional competitiveness

…The capacity of a region to attract and maintain successful firms while contributing to stable or rising standards of living for the region’s inhabitants.

Regional competitiveness is…

Note: Adapted from Storper, M. (1997) The Regional World: Territorial Development in a Global Economy, Guildford Press, New York.

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The National Strategy of Regional Development and the Regional Development Strategies already focus on increasing regional competitiveness

National Strategy of Regional Development 2014-2023 (final draft)

Overall vision: a developed, competitive, socio-economically and spatially integrated Turkey with higher levels of prosperity throughout the regions

Selected specific objectives: Reducing regional discrepancies Increasing competitiveness of all regions and their

contributions to national growth

26 Regional Development Strategies – one for each NUTS II region

New Regional Development Strategies currently being finalised

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Agenda

Project context Objectives and rationale

Key deliverables and timeline Immediate next steps

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Overall question

Building on existing strategies and initiatives, how to enhance regional and sectoral competitiveness

policies, while better co-ordinating between all relevant institutions?

The project on Boosting Regional Competitiveness aims at supporting Ministry of Development’s effort

2014

Boosting Regional Competitiveness Project in Turkey - 22 months

2015 2016

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The project has five specific objectives

Measuring, benchmarking and monitoring regional competitiveness Identifying priority sectors in NUTS II regions Improving the co-ordination between central institutions and RDAs in identifying priority sectors Strengthening the regional dimension of national sector strategies

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2

3

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Specific objectives

No unified set of regional competitiveness indicators is used to prioritise policy actions in the regions Prioritising sectors at the regional level helps better focus RDAs resources, but:

No unified methodology is being used among RDAs

Priority sectors defined by other central institutions are not in line with those identified by the MoD and RDAs

National sector strategies exist but often omit setting sound regional competitiveness targets Sharing methodologies with stakeholders to ensure long-term impact

Rationale

Capacity building at national and regional levels

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Agenda

Project context Objectives and rationale

Key deliverables and planning Immediate next steps

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Project flight plan Major deliverables

1 – Measuring regional competitiveness

Objectives

2 – Priority sectors in the NUTS II regions

3 – Centre-regions coordination in prioritising sectors

4 – National sector strategies w/ regional dimension

To be adjusted as project evolves

By July 2015 By April 2016 September 2016

Regional competitiveness indicators (RCIs)

framework

26 NUTS-II regions mapped according to

the RCIs and data gaps identified

Action plan to address data gaps

Framework to prioritise high-potential sectors

in the regions

3+ high-potential sectors recommended

in all 26 regions

Regional targets recommended for the

second sector

Regional targets recommended for one

sector

Recommendations to improve centre-regions

coordination in prioritising sectors

3+ high-potential sectors identified in all

26 regions

Devising frameworks and collecting data

Collecting data and formulating recommendations

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1. Provide country-specific data

2. Contribute to the analysis and provide feedback

3. Help prepare final conclusions and recommendations and provide feedback

1. Collect country-specific input

2. Develop materials and analysis

3. Prepare final conclusions for review by the Project Advisory Committee

OECD and MoD in partnership

Ministries, RDAs, private sector, partner organisations

The project approach is inclusive Workshops to collect input, capacity buildings to share knowledge

The Project Advisory Committee reviews the results under the chairmanship of the MoD

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Extensive activities to be conducted in regions Project planning (to be adjusted as project evolves)

2014

Q4 Q1 Q2 Q3 Q4 Q1

2015

Q2 Q3

2016

1 – Measuring regional competitiveness

1. Set of indicators/methodology

2. Indicators applied to each region

3. Gap analysis and action plan

Outputs

2 – Priority sectors in the NUTS II regions

1. Methodology to identify priority sectors

2. Identification of 3+ sectors per region

3. Final recommendations on sectoral priorities

3 – Centre-regions co-ordination

1. Assessment of consistency in sectoral priorities across strategic documents

2. Good co-ordination practices

3. Recommendations on effective co-ordination

4 – Sector strategies w/ regional dimension

1. Assessment from a regional perspective of two sector strategies

2. Recommendations on regional targets for two sectors

Workshops

Trainings

Ankara Regions

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Project Website is on-line We invite you to visit it

Key upcoming dates to be announced

Key materials to be put on-line in English and/or Turkish

Links to project partners

http://www.oecd.org/globalrelations/brc-turkey.htm

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Agenda

Project context Objectives and rationale

Key deliverables and timeline Immediate next steps

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Immediate next steps Workshops on competitiveness indicators and sector prioritisation

First workshop this afternoon at 2.00 pm

Workshops to be held in 2-3 NUTS II regions and in Ankara in February/March to collect input

Cocktail at 4.30 pm today