From the smallest rural villages in Bangladesh to the large, bustling metropolitan centers of Cairo or Istanbul, small and medium enterprises (SMEs) are the lifeblood of Islamic communities around the world, keeping local economies humming.
I first became interested in the potential of leveraging Islamic finance to grow SMEs when I led a seminar on the topic in 1997. I’ve come full circle, almost 20 years later, when I had the opportunity to speak last month in Istanbul at a conference on “Leveraging Islamic Finance for SMEs” organized by the World Bank Group, the Turkish Treasury, the Islamic Development Bank and TUMSIAD, the largest association of SMEs in the country with 10,000 members.
In 1964, I came to the United States from South Korea, then an extremely poor developing country that most experts, including those at the World Bank, had written off as having little hope for economic growth.
My family moved to Texas, and later to Iowa. I was just 5 years old when we arrived, and my brother, sister, and I spoke no English. Most of our neighbors and classmates had never seen an Asian before. I felt like a resident alien in every sense of the term.
As the father of four children, I know how important access to good, quality health care is. All parents aspire to be able to provide the same for their children. That’s why we at the World Bank Group are working with our partners around the globe to make universal health coverage a reality for all.
Uniting finance and development has been a lifelong passion of mine. Earlier in my career, I supported then French President Jacques Chirac with the development of an international airline ticket solidarity tax to provide global public goods for the poor. This kind of innovative thinking eventually led to the creation of UNITAID which works to prevent, treat, and diagnose HIV/AIDS, tuberculosis, and malaria more quickly, cheaply and effectively. Other innovative financing mechanisms include the International Finance Facility for Immunization and the Global Vaccine Initiative.
Turkey has radically transformed its land title registration system, and decreased the turnaround time for recording property transactions to just two hours.
I remember my first visit to the agency in 2007. The agency is heavily staffed (15,000), has more than 100 branches and its main headquarters had once almost fallen apart. In my first visit, the head of the agency gave me a nice surprise: he showed me a land book that dated back to the 18th century, and included a record of my great-great-grandfather’s land title in Palestine.
The head of the agency had great plans to transform the agency by improving land records, introducing computerization and integrating the system into the overall e-government program, and setting a time limit of one day to register land transactions. Based on that an ambitious reform agenda, we worked together over a few months’ ‘time to prepare the cadastre modernization project. The Bank partly financed this reform through a $100 million loan, while the Turkish government funded the rest of the program. The project started in 2007, and I moved on to other positions later that year.
This time I had a second surprise. The institution is completely transformed. The main office has been completely and beautifully renovated. It now resembles any other government office in the US or Europe. The agency presented its achievements. It was amazing to see what had been accomplished in 8 years. The government is about to complete the renovation of the cadastre and the computerization of all land records, including historical records from Ottoman times. Service delivery has improved dramatically, with property transactions now being registered within 2 hours. They also integrated cadastre registration into the overall e-government program, which allows any Turkish citizen to access the record of their land/property online. Above all, customer satisfaction has reached 97% — something unheard of for land agencies, often known to be among the most corrupt agencies in many countries.
So what is the story about regional inequalities in Turkey?
Peki, bunun ardında yatan hikaye nedir?
While many economies are recovering from the global recession, there are still 600 million jobs needed to be created over the next decade to maintain today's employment rates. Eliminating extreme poverty and boosting shared prosperity for the bottom 40 percent of the population by 2030 requires that we engage more effectively to bring hundreds of millions of people into productive work and out of poverty.
While many initiatives on youth employment have been undertaken over the past few years, there is still limited knowledge about the best way to design, implement and coordinate these interventions, and how to link them to broader reforms that promote private investment and business creation and/or expansion. At the same time, the limited knowledge that we do have does not take into account the significant heterogeneity of constraints across settings and different youth populations, and few programs are designed to take into account these differences in context and needs.