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The following OECD assessment and recommendations summarise Chapter 6 of the Economic Survey of Turkey published on 18 October 2006.
Agricultural reform has the potential to significantly raise productivity
The agricultural sector continues to employ as much as one third of the Turkish workforce and low productivity has been entrenched to date by a protective policy regime. Establishing a more competitive environment would help to modernize agriculture and raise output growth and productivity. In 2000-01 an important reform was introduced, with emphasis given to direct income support for farmers in place of more distortive and fiscally costly input and output subsidies, and the privatization of state-owned organizations which control agricultural output and input markets. But reform efforts now need to be revitalized. The 2000-01 reform agenda should be fully implemented and accompanied by additional policies to encourage the transition to commercial agriculture, such as ensuring that the legal framework is adequate for the transfer of land ownership to facilitate the creation of larger and more productive farms. However, given the large population working on small farms, and the absence of a safety net, land consolidation poses significant social challenges. The best way to ease these challenges is to implement the comprehensive package of reforms discussed above, in order to enhance job creation in industry, including in rural areas. But some social policy measures might also be needed to facilitate the transition, such as an increase in the means-tested public pension, which is currently below the absolute poverty level or the provision of other social support. Additional policies are also needed to improve framework conditions for private investment in irrigation and other infrastructure.
Agriculture's performance gap
USD, PPP-adjusted, 2000 prices
1. Labour productivity in industry / labour productivity in agriculture.
Remaining potential for employment adjustment
1. Employees per 1000 hectares of arable land.
2. Share of agricultural employment in total employment.
Source: OECD and FAO.
How to obtain this publication
The Policy Brief (pdf format) can be downloaded. It contains the OECD assessment and recommendations but not all of the charts included on the above pages.
The complete edition of the Economic survey of Turkey 2006 is available from:
For further information please contact the Turkey Desk at the OECD Economics Department at email@example.com. The OECD Secretariat's report was prepared by Rauf Gonenc, Anne-Marie Brook, Ugur Ciplak, Gökhan Yilmaz and Rina Bhattacharya under the supervision of Wilhem Leibfritz.