Programmatic Public Sector Development Policy Loan (PPDPL)

The PPDPL supports a sustained medium-term process of legal, institutional, and structural development that promotes growth and improves social conditions by (a) maintaining the currently enabling macroeconomic framework; (b) reforming substantially the country's social protection system, which covers social security, universal health insurance (UHI), and social assistance, (c) continuing the ongoing process of upgrading the financial controls and expenditure management of public resources, and (d) improving the administration and governance of the public sector. The program supported by the Loan contains actions, milestones, and expected results in each of the above four broad areas of policy. Accordingly, the PPDPL has been designed around four components which, in turn, contain conditions, triggers, and indicators critical to achieving the objectives of the government's program as well as to measuring implementation progress and results achieved. The first component supports the maintenance of the macroeconomic framework which has underpinned Turkey's recovery after the 2001 crisis as well as the ongoing sustained episode of rapid economic growth that began in 2002 and continues to date. The second component focuses on improving the quality of fiscal adjustment by addressing the growing deficits in the social security system through (a) parametric reforms of pensions and (b) structural improvements in the institutional and administrative framework for the provision of social security benefits and social assistance. This component also supports universal access to health services while deploying actions to increase the efficiency and contain the cost of health services funded by the state. The third component supports continued implementation and broadening of the structural and institutional reforms of the public financial management and budget systems that the World Bank began supporting under the Programmatic Financial and Public Sector Adjustment Loan (PFPSAL) series of loans. The fourth component supports improving the administration and governance of the public sector through actions required to reduce regional disparities, promote decentralization, and combat corruption at all levels of the public sector.