Turkey’s economic growth and women’s labour force participation Turkey has demonstrated strong and inclusive growth over the last decade (OECD,

2.1 Turkey’s economic growth and women’s labour force participation Turkey has demonstrated strong and inclusive growth over the last decade (OECD, 2014). As stated by Turkey’s Minister of Finance, Mehmet Şimşek, in March 2015, Turkey’s fundamental macroeconomic policies have demonstrated continued improvement in this timeframe (Şimşek, 2015). While GDP growth slowed to three per cent in 2014, which still outpaced all developed economies, it is anticipated to return to above four per cent per year over the next five years starting in 2015 (EIU, 2015; Şimşek, 2015).

Within this context of sustained economic growth and transformation, Turkey’s labour market has also been changing. Key indicators such as GDP per worker and labour productivity per hour worked have shown marked improvement, as Turkey has outpaced other similar sized upper-middle income economies and come close to meeting European Union levels (Şimşek, 2015). However, one of the anticipated challenges in the labour market will be reducing unemployment as the labour market, in particular as there is there are growing numbers of low-skilled entrants into the labour force (Şimşek, 2015). This is particularly true for Turkish women.

Women in Turkey have traditionally lagged significantly in their official participation in Turkey’s economy. According to TurkStats,women’s labour participation rate is only 31.5 per cent (2015).This rate does not compare well with other upper middle income countries, such as the BRICS (Brazil, Russia, India, China and South Africa),

members of the OECD, and members of the EU (Boudet et al. 2014).The average rate for women’s participation in the labour force for the EU-28 is 51.3 per cent (Eurostat, 2015).As noted by the Organisation for Economic Co-operation and Development (OECD) in its most recent survey of Turkey’s economy,

Women’s very low labour force participation in Turkey is reflected in shortcomings in human capital: 78 per cent of the female working age population have less than high school education, 58 per cent have primary education or less and 17 per cent are illiterate.

In urban areas, women’s labour force participation stayed as low as 17 per cent until the mid-2000s. In rural areas, many women are counted as unpaid family workers, artificially increasing participation but often masking low productivity quasiunemployment in the informal sector. When these women migrated to urban areas they generally found no job and withdrew from the labour force. (OECD Economic Surveys, Turkey 2014, p. 81)

The World Bank (WB) and the Turkish Ministry of Family and Social Policy (MoFSP) have identified two important factors affecting women’s low participation in the labour force in Turkey are the lack of affordable child care services; as well as lack of business networks/

mentorship for women once they are in the labour force or if they start a business (Boudet et al. 2014; Gökşen et al, 2014).⁷ As will be demonstrated later in this report, women’s co-operatives in Turkey can and do help address both of these factors. As noted by the former Minister of Family and Social Policy in Turkey, Fatma Şahin, women’s “access to the labour market is still an important problem” (Şahin, 2014).

Increasing women’s participation in the labour force is a priority for the Government of Turkey and there have been positive changes in the last five years (Şimşek, 2015).

This is particularly true in urban areas, where female participation has increased up to 50 per cent, mostly by university educated women (OECD, 2014). There have also been positive trends amongst women with high school education or less, whose participation rates increased from 11.7 per cent to 16 per cent between 2007 and 2012 (OECD, 2014).

Turkey’s Tenth Development Plan (2014-2018) identifies improving women’s low labour force participation as a clear priority, aiming to increase women’s participation to almost 35 per cent by 2018 (Ministry of Development, 2014). Other important goals include improving women’s roles in decision making in the family and economic life, as well as providing assistance to allow women to enter the workforce. Co-operatives are also cited in the Plan, noting the need to “improve [co-operatives]” as an important legal structure that contributes to doing business together (Ministry of Development, 2014).

7 The MoFSP and the WB published in 2014 a thorough comparative summary of trends in women’s participation in Turkey’s labour market (Gökşen et al, 2014).

2.2 Co-operatives

Although co-operatives can take on different forms, they aspire to align with the same accepted international definition as well as follow the same seven co-operative principles.⁸ The International Co-operative Alliance (ICA), the international body representing national co-operative associations, defines a co-operative as “an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations, through a jointly owned and democratically controlled enterprise” (ICA, 2015).⁹ The ICA sets out seven co-operative principles: Voluntary and open membership;

democratic member control; member economic participation; autonomy and independence; education, training and information; co-operation among co-operatives;

and concern for community (ICA, 2015). This definition and these principles make a clear link become the economic viability that a co-operative necessarily needs to demonstrate, and the social and cultural aspirations that a co-operative needs to meet. Co-operatives are one of many forms of doing business and can take on different legal forms – for example for-profit or not-for-profit – or be defined in different ways – for example, community association versus enterprise – depending on the jurisdiction in which the co-operative operates.

The most credible and methodologically sound research into the size and scale of the global co-operative sector is published by the ICA. Since the United Nations sanctioned the International Year of Co-operatives in 2012, the ICA has published a Co-operative Monitor of the world’s largest co-operatives as a means of better understanding and promoting the economic and social benefits of co-operatives.

The most recent issue of the Co-op Monitor reports that the world’s 300 largest co-operatives have revenues over USD 2 trillion (ICA, 2014). Over one billion people worldwide are co-operative members, three billion people make their living through co-operatives, and co-operatives employ 20 per cent more people than multinational corporations (Co-operatives UK, 2014).

The impressive economic statistics are built upon a business model which also meets social and cultural aspirations. The basis for this is that co-operatives at their root are formed by groups of individuals that come together voluntarily to collectively address needs in their communities that are not being met by the public or private sectors. As a result, an effective co-operative – small, medium, or large – is one that exists because of and for its members, with a primary focus being to meet its members’ needs (CCA et al, 2012). As a result, and as acknowledged by

8 This can be understood in terms of broader emergence of a public international co-operative law in the last decade (Henrÿ et al, 2012).

9 The International Co-operative Alliance (ICA) is is an independent, non-governmental organization established in 1895 to unite, represent and serve co-operatives worldwide. It provides a global voice and forum for knowledge, expertise and coordinated action for and about co-operatives.

the European Parliament for instance, co-operative enterprises assist in resolving social issues, promote sustainable economic growth, fairer incomes, and wealth distribution (European Economic and Social Committee, 2012). In 2014, the ICA in partnership with the International Labour Organisation (ILO) have produced a policy brief, Co-operatives and the Sustainable Development Goals, which outlines the ways in which the co-operative model could assist in achieving the Sustainable Development Goals in the Post-2015 Development Agenda (2014). Research and independent evaluations have demonstrated that co-operatives can and do meet such development goals, when they are supported effectively (CAPRA, 2013).¹⁰

According to the ILO’s Guidelines on Co-operative Legislation, it is commonly accepted that the role of government in co-operative affairs be restricted to four functions: legislation, registration, dissolution/ liquidation, and monitoring the application of the law by the co-operatives (Henrÿ et al, 2012). While co-operative laws in Turkey will be discussed later in this report (see Chapter 5), a key element of these Guidelines bears mentioning here.

The main objective of a co-operative law be to guarantee minimum government involvement, maximum deregulation, maximum democratic participation and minimum government spending by translating the co-operative principles into a legally binding framework for the organization of self-determined self-help. (Henrÿ et al, 2012).

Co-operatives are found in over 90 countries around the world and are providing goods, services and jobs that are needed in their communities.