Question

In: Economics

In order to improve the distribution of income and to decrease the poverty (please consider all...

In order to improve the distribution of income and to decrease the poverty (please consider all dimensions of poverty) in the last 20 years of Turkey, what kind of measures have been taken? Explain comparatively how these measures implemented and their results. What could be the alternative based on the results you found? What were the deficiencies or mistakes of what was done? You can look at both general and regional.

Solutions

Expert Solution

Measures that have been taken in Turkey :

  • Government subsidy - Public services especially related to healthcare and education have been made more accessible to general public
  • Promotion of techonological growth and reuction in inter-regional disparities
  • Turkey's youth(age < 24 years) make up almost 40% of their population, hence, access to education has resulted in the schooling rate to increase
  • The promotion of domestic renewable resources have led to Turkey importing less and reduce greenhouse emissions
  • Social assistance for Syrian refugees and to provide them equal labor market opportunities like other Turkish citizens.

Deficiencies in the taken measures and what the results show :

  • Unstable economic growth has resulted in higher unemployment
  • Turkey has suffered from long periods of high inflation, driving up poverty rates
  • Labor participation rate was low owing to privatisation, financial crises, poor educational levels
  • Regional income distributions do not have parity - i.e. Industrialized regions such as Ankara, Istanbul , etc have poor income distribution, whereas underdeveloped regions such as Malatya , Gaziantep have better income distribution

Alternatives that could have been taken :

  • Women seems to constitute a large portion of the workforce, but the lack of quality education provided to them means, labor force participation rates of women are lower, so that should be the focus
  • To reduce income inequality, progressive taxes could be implemented
  • Privatization has to be controlled, to increase the public share in the domestic employment
  • The output in Agricultural sector, is not in parity with the rate of labor being added. Government has to provide better subsidies and incentives.
  • The fiscal policy should mainly focus on reducing government spending to reduce the short term and long-term inflation rates.

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