The IMF's representative in Türkiye, Andrew Vorkink, said Sunday that the Fund's recent decision to expand Türkiye's quota, alongside China, South Korea, and Mexico, reflects the country's growing standing in the global economy.
Vorkink noted that short-term speculative capital entering Türkiye fell by 80 percent in the first half of 2006, while direct foreign investment and longer-term capital flows rose. He projected that direct foreign investment would surpass $15 billion in Türkiye for the full year, with further growth expected in 2007.
He outlined a four-part reform agenda for boosting employment: sustaining macroeconomic stability, improving the business environment, making labor markets more flexible, and investing in education and technology. He said Türkiye ranks among the least flexible labor markets in the OECD, and that high taxes and social security costs drive informal employment. Unemployment insurance access should also be widened, he added.
On research and development, Vorkink said the World Bank sees potential for government, universities, and the private sector to collaborate, with universities serving as drivers of technological progress.
He also said Türkiye's economic foundations, administrative capacity, and judicial functioning are stronger than those of Bulgaria and Romania, both set to join the EU the following year. Vorkink, who had served in Türkiye since 2004, was scheduled to depart in November.
Historical summary. TurkishPress restated this wire report, first published in October 2006, in its own words.