EC-Funded Technical Assistance for Industrial
Restructuring of Şanliurfa Project (Turkey)

In 2009-10, for the UNDP and with funding through the European Commission, ECG's principals helped implement the Industrial Restructuring of Şanliurfa Project in Turkey.

Challenge: Turkey's ┼×anliurfa province has benefited from a range of national economic development instruments including large-scale public investments as well as interregional transfers and incentives. The heavy public investments have had a positive impact on Sanliurfa's economy, expanding slightly the range of basic commodity crops, and paving the way for the emergence of rudimentary manufacturing, including cotton ginning, limited cotton yarn production, niche irrigation equipment manufacturing, and basic food processing.

Despite the high level of investments, income per capita remains around half the Turkish average and the economy of the province still exhibited an unhealthy reliance on public investments/spending, commodity crops, inefficient agricultural methods and low technology usage. It was evident that it was critically important to organize the industrial sectors' and other economic development actors for Şanliurfa to more effectively capitalize on the province's rich natural and industrial attributes.

Solution: In 2009, one of ECG' experts was retained by the UNDP as Team Leader of an international consulting team to implement a key portion of the EC-funded Industrial Restructuring of Şanliurfa (IRS) Project. Three strategic industrial sectors possessing the potential for being competitive nationally and internationally were identified. Rigorous competitiveness assessments were conducted of these sectors, agri-food, textiles and apparel and specialized manufacturing for agriculture. Then the next phase of the project was executed using a participatory approach, building capacity for public-private dialogue fostering the development of an environment conducive to improving the competitiveness, innovation and export of Turkish enterprises.

Results: These efforts resulted in the development of an Integrated Industrial Development Plan which put forth a policy framework and specific recommendations to implement the economic vision for Sanliurfa as a whole. In addition, it included detailed roadmaps for the three priority sectors, a long list of project-based interventions for the short, medium and longer terms and 13 detailed project fiches for attracting investment. Further, throughout the strategy development process, tangible shifts in the mentality of a key set of entrepreneurs and their government/university counterparts were noted, who were making progress on specific joint initiatives that resulted in the introduction of new products and technologies, and expanded access to markets.

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