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ERC WORKING PAPERS

00/4 The IMF and reforming the public sector in Turkey

Nazım K. Ekinci

The latest three-year stand-by agreement with the IMF that was concluded in December 1999 addresses precisely the reforming public sector in Turkey which has pervasive implications. The program can be seen as a continuation of the IMF-World Bank sponsored program of the early eighties. The main aim of the paper is to explain the conditions that led to the making of the latest stand-by agreement by setting it against the evolving role of the IMF in crisis prevention. The agreement is in fact one of the first examples of the type of program that is indicative of the new role of the Fund. The role of the US in extending a preferential political treatment for Turkey has also been instrumental in the making of the agreement. An overview of the agreement and a discussion of its broader implications for the public sector and state-society relations are also provided.

2000

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