Regional Investment Climate Assessment21 January 2015Ankara, Turkey

• MAIN OBJECTIVE:

• Specific Objectives:

– Capacity building at the central and regional level for evidence-based policy design, implementation and evaluation;

– Capacity building at the central and regional level on investment support and promotion;

– Deliver the first, baseline dynamic database that measures the quality of the investment climate regionally and nationally; and

– Provide the first set of baseline reports on investment climate in each of the regions in Turkey and one on the investment climate nationally.

Objectives of the Regional Investment Climate Program (I)

PROGRAM OBJECTIVE

To support regional sustainable and shared regional development by building regional and central government institutional capacity designed to promote continuous investment climate improvements.

BACKGROUND

• Funded in part (10%) by the Ministry of Development (MoD) and in part (90%) by the European Union (EU) Instrument for Pre-Accession funds

• Implementation will take 24 months

WHY REGIONAL CAPACITY IS IMPORTANT

Implementation of regulations vary by regions… And so does economic performance…

Enterprise Survey

Objectives:To obtain an overall description of the business environment for each country/region which is comparable across the world.• To obtain basic information that allows

measuring the effect of the business environment on selected quantitative variables (productivity, performance, access to credit, growth, employment).

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WHY: Data is delivered after

passing quality controls, and after

projections (weights) are generated.

Recipients:WebsiteRegion

MDB

WHO: 143 client countries

surveyed every 3 years on a regional

approach. Each rotation starts around

April/May

HOW: EAU/Region/MDB

collaboration on the sample design and

questionnaire (2 months)

HOW: Competitive bidding to

find best contractor and subcontractors to

implement survey under EAU supervision

(3 months)

HOW: Selected contractor

carries out field work over 6 - 9 months

(typically surveys start in January)

Process

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Sampling Methodology

• Representative sample of the non-agricultural economy.

• The universe:– Manufacturing– Services (retail, wholesale, hotels, restaurants, IT)– Construction– Transport, Storage and Communications

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ISIC Rev.3.1A - Agriculture, hunting and forestry

B - Fishing C - Mining and quarrying

D - Manufacturing *E - Electricity, gas and water supply

F – Construction * G - Wholesale and retail trade; repair of motor vehicles, motorcycles and

personal and household goods *H - Hotels and restaurants *

I - Transport, storage and communications *J - Financial intermediation

K - Real estate, renting and business activities (IT *)L - Public administration and defense; compulsory social security

M - Education N - Health and social work

O - Other community, social and personal service activities P - Activities of private households as employers and undifferentiated production

activities of private households * Included in survey sample

Which Business Activities Are Included ?

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Sampling Frame

• The most updated, and complete list of firms available for all sectors

• Frame for manufacturing and services may come from different sources

• It must contain, location (address, phone #, etc.), sector of activity, and size. Any other information is a plus

• Electronic format• Turkey: manufacturing TOBB, services (?)

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Sampling Methodology

• Stratified Random Sampling. Combined with rotating panel

• Strata: firm size, sector, and geographic region within the country

• Advantages of this approach:– Greater precision of estimates– Estimates for strata, not only for the population– But sampling weights must be used. All indicators

should be computed using them

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Reports on the Investment Climate

• Investment Climate Assessments are critical instruments to:– quantify features of the investment climate that

matter most for productivity and income growth, especially for the poor;

– track changes in the investment climate within a country or a region

– compare performance within regions or countries.

Implementation

• 12-16 Months starting from February 2015

• 2/3 Private Surveying Companies

• Undertaken in 26 regions

The Process

Web portal

Data Collection: Enterprise Survey- 6000 firms- 26 NUTS II Regions

26 Regional ICA Reports

1 Main Report

Institutional Capacity Building Visit to World Bank HQ

Training for Analysis of ES results 5 Days training to DA and MoD Staff

Training for Investment Support and Promotion 5 Days training to ISO Staff

Best Practice Learning Exchange on IS&P 2 Learning Visits

Evaluation of IS&P Framework Investment Promotion and Support Report

5 Regional Stakeholders Workshop

Kick- off event In Ankara

Regional Dissemination 6 Regional Publicity Events

International Dissemination Final International Event in Istanbul

Policy Information

CapacityBuilding

Creating Awareness & Dissemination

Teşekkürler