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Submitted by Ali Sokmen on

Looking at the chart and also taking into account the figures on the evolution of income distribution from the Turkish Statistics Institute, I would argue that Turkey's growth between 2006 and 2011 has not been a good example of inclusiveness. At least in terms of income and consumption, that is.

We can see that the consumption growth of the bottom 40% is below that of the national average in Turkey. Of course, in absolute terms the gorwth is considerable, which reflected positively on the lives of the poor people. Nevertheless, in order for growth to be clasified as inclusive, it should at least occur under the existing distribution of income/consumption, or also reduce the inequalities. In Turkey's case, the poor are getting richer while the middle and upper classes are getting richer even faster. Brazil, with help of its redistributive and human development oriented policies such as the Bolsa Familia has done a much better job in improving the lives of the poor and bridging the gap between rich and poor, thus providing a better example of inclusiveness.

The inequality effect of Turkish growth is nevertheless small, especially when compared with China or Indonesia. We should also keep in mind that inequality in Turkey was declining during the five years before 2006, and the trend reversed during the 2008-2009 crisis. We are yet to see whether the increase is temporary and the declining trend will resume.