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Including gender-sensitive policies in a large crisis-response DPL

Including gender-sensitive policies in a large crisis-response DPL. The Case of Turkey in 2009/10 Mark Roland Thomas mthomas1@worldbank.org. Country context. Turkey in mid-2009. Doubts about macro stability; no IMF program Progress on public sector management reforms

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Including gender-sensitive policies in a large crisis-response DPL

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  1. Including gender-sensitive policies in a large crisis-response DPL The Case of Turkey in 2009/10 Mark Roland Thomas mthomas1@worldbank.org

  2. Country context PREM Week 2012: Gender & DPL

  3. Turkey in mid-2009 • Doubts about macro stability; no IMF program • Progress on public sector management reforms • Lack of progress on reforms affecting private investment, the business climate, & employment • Crisis response: good dialogue & policy reforms • Strong government demand for DPL support • In mid-2009 the Bank commenced preparation of a $1.3 billion DPL to support Turkey’s crisis response PREM Week 2012: Gender & DPL

  4. Turkey’s gender disparities: 1 Male and female labor-force participation in international comparison, 1980-2006 PREM Week 2012: Gender & DPL

  5. Turkey’s gender disparities: 2 Male and female labor-force informality status, by age PREM Week 2012: Gender & DPL

  6. Preschool enrollment: a key driver PREM Week 2012: Gender & DPL

  7. DPLs in Turkey PREM Week 2012: Gender & DPL

  8. Pre-existing DPL architecture • 3 programs • Public sector • Private sector • Energy and sustainability • Public sector • Pensions, health systems, fiscal sustainability, PFM • Private sector • Investment climate, regulation, customs, labor market • Crisis response • Transfers: short-term “job protection” • Vocational training: scale-up • Financial sector liquidity PREM Week 2012: Gender & DPL

  9. Principal levers to reduce gender disparities in Turkey, based on research • Education • Preschool has an impact on labor force participation AND intergenerational transmission of inequality • Health • Green card system of universal access protects female and maternal outcomes especially • Labor markets • Policies to reduce informality and help SMEs will benefit women differentially • Cultural factors PREM Week 2012: Gender & DPL

  10. REGE DPL design PREM Week 2012: Gender & DPL

  11. “Restoring Equitable Growth & Employment” (REGE DPL) PREM Week 2012: Gender & DPL

  12. REGE DPL prior actions(4 of 9 with likely gender-differentiated impacts) • Maintaining Inclusive Social Programs at Sustainable Cost • Social Security and Universal Health Insurance Law implementation • Global budgets for MOH hospitals and spending controls in university and private hospitals • Strengthening Public Financial Management • Performance based budgeting • Employment and Social Protection during the Crisis • CBRT blind broker function • 50% increase and extension of short-time employment compensation to reduce layoffs • Expansion of loan guarantees for SMEs (by TL 1 billion) • Accelerated expansion of vocational training (and stipends) • Private-Sector Led Growth and Job Creation after the Crisis • Private sector Streamlined customs procedures • Launch of universal preschool education (initially in 32 of 82 provinces) with hiring of 15,000 preschool teachers PREM Week 2012: Gender & DPL

  13. Detailed PSIA • Positive net distributional & poverty reduction impacts • Healthcare copayments have mild negative impact; to be weighed against fiscal sustainability • Employment-related crisis measures dominate effect of copayments • 30% of poorest 2 quintiles eligible for short-time employment compensation • Vocational training has short-term impact on incomes (through stipend) • Long-term poverty reduction impacts of building confidence after the crisis • c.f. 2002-08: poverty declined from 27% to 17% • Differential impacts of program on women & the young • Informal workers, children & young workers most at risk of poverty • Preschool education reduces poverty through improved educational attainment & labor force participation of parents, particularly mothers • Estimated impacts: incomes >8%, within-cohort poverty <11%, FLFP >9% • Reduced SS contributions for young workers & women has limited impact PREM Week 2012: Gender & DPL

  14. Concluding thoughts PREM Week 2012: Gender & DPL

  15. Possible lessons on gender in a DPL Built a strong base of focused empirical analysis Ignored boundaries between sectors on poverty & gender dialogue Exercised pragmatism in designing a feasible DPL structure Invested in a detailed simulation-driven PSIA Kept an eye on the long-term impact of a collaborative client relationship Accepted limitations from cultural factors affecting gender outcomes PREM Week 2012: Gender & DPL

  16. Q&A PREM Week 2012: Gender & DPL

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