close

Newsroom

Turkey’s regulatory framework ‘must improve’

4th August 2014

MGI World Turkey’s regulatory framework ‘must improve’

Turkey must make major improvements to the regulatory regime for businesses if it is to foster growth in the years ahead, claims a new study from the Organisation for Economic Cooperation and Development (OECD).

The body, which has just published a new global standard for the automatic sharing of tax information, says Turkey’s future hinges on implementing structural reforms that boost productivity and competitiveness across the economy.

“Structural change in the business sector would strengthen competitiveness, exports, employment, income and savings, help rebalance domestic and external demand, and move the economy toward an externally sustainable path,” says the report.

“Turkey should strive to make its product and labour market regulations more growth-friendly while continuing to reduce regulatory obligations related to company size.”

It warns that small businesses often circumvent much of the regulatory framework. These companies employ most of the workers in the country and therefore it is vital they become part of the full financial and accounting framework.

In contrast, the OECD notes that large institutional firms often face heavier legal and regulatory burdens, particularly relating to tax and social obligations. As a result of this “segmentation” of the business sector, productivity gains are hindered, while there is a growing “social divide” between the workers of these types of firms.

With this in mind, the report claims regulatory and tax reforms should try to make the business conditions  the same  for all firms, regardless of size.

“Enforcement should become more predictable,” the OECD adds. “Economy-wide productivity, competitiveness and income would improve considerably if a higher share of the working age population were employed in the more efficient firms.”

Meanwhile, the report also calls for a shake up of “rigid” labour market rules that it says are holding back growth across the business sector. The OECD would like to see the end of restrictions on different forms of employment, such as temporary work, employment through work agencies, home-based work and remote work.

This, it claims, would make it easier for businesses to hire low-skilled workers and therefore foster job creation in the formal sector. This could also open up higher quality jobs to women in the formal sectors of the economy.

Read more on Industry news and Europe

MGI World Italian village on hillside with text

Do you have clients considering a move to Southern Europe? See what the Italian government is offering to make Italy the country of choice for expatriates

21st June 2021

MGI Vannucci & Associati has published a new article detailing the advantages of the 'Italia...

MGI World Atc Certified Public Accountants logo with a member of MGI Worldwide logo

Athens-based atc Certified Public Accountants excited to join the MGI Worldwide network as they look towards building a bigger presence in Greece

16th June 2021

With ambitions to grow and continually improve and add value to Clients, atc Certified Public...

MGI World Ghana and Kenya flags with text under

Changes in legislation impact the accounting industry in Ghana and Kenya

8th June 2021

In the latest edition of the International Accounting Bulletin (IAB), member firms MGI O.A.K...