Turkiye Poverty and Equity Assessment

Investment Rating - The report does not explicitly provide an investment rating for the industry [4]. Core Insights - The poverty assessment indicates that Türkiye has made significant progress in poverty reduction, with poverty rates halving from over 20% in 2007 to 9.84% in 2020, and chronic poverty declining from 24% to 10% [32][40]. - The main driver of poverty reduction has been income growth, particularly from labor, rather than redistribution of welfare [33][70]. - The report highlights the importance of tracking inequality outcomes and ensuring progressive growth to sustain poverty reduction [70]. Summary by Sections Introduction and Summary - The assessment aims to document the evolution of monetary poverty in Türkiye over the past two decades and identify the main drivers behind poverty reduction [18][19]. - It links changes in income distribution and shared prosperity trends over time, including a special section on poverty dynamics [18][19]. Recent Literature on Poverty, Inequality, and Mobility in Türkiye - Various studies have documented the trajectory and drivers of poverty, inequality, and mobility in Türkiye, showing a significant reduction in poverty rates driven by economic growth [21][22][23][24]. - The literature emphasizes the role of social assistance and economic reforms in reducing poverty and inequality [26][27][28][29]. Summary of Main Findings - Türkiye has seen a considerable decline in poverty rates, with chronic poverty and vulnerability to poverty also decreasing significantly [32]. - Labor income growth has been progressive, particularly between 2009 and 2016, contributing to shared prosperity [33][34]. - The demographic profile of the poor indicates that children and larger households are more vulnerable to poverty [36][37]. Policy Proposals - The report suggests prioritizing the creation of productive jobs that raise labor incomes and investing in human capital to eliminate poverty [71].