Labor costs to go down in poor areas
BERLIN - Anatolia News Agency
Economy Minister Çağlayan says incentives are the antidote to terrorism.Labor costs will decrease in some lesser developed regions in Turkey through the government’s new incentive scheme, while the minimum wage will be kept at the same level, Economy Minister Zafer Çağlayan Feb. 9 in Berlin Germany.
The government will implement varying amounts of social insurance premiums based on the level of regional development, he said.
“We are implementing this policy not only to increase competitiveness, but also to promote economic development in various provinces,” said Çağlayan.
Labor intensive sectors
Çağlayan also said that the package would include investment incentives for sectors that are particularly labor intensive.
“For example, we are not going to support feed and flour, but all the other sectors will be included in the less developed regions,” explained Çağlayan.
Çağlayan labeled the incentive scheme as an “antidote for terrorism,” stressing that the least developed regions in Turkey require government incentives to curb job seeking migration to the West and to lower unemployment in those areas.
Furthermore, he said that these investments would be an antidote both to terrorism in the east and to the Turkish economy’s looming current account deficit.