According to 2009 figures, labor force participation rate in developed economies is above 70 percent. This rate is hovering at around 60 percent in Eastern European countries. Although the labor force participation rate has surged by 3 percentage points in Turkey, it still remains low, at 49 percent. We see that the limited increase in this period was mostly attributable to the rising trend of labor force participation among the female population. Government incentives for social security contributions oriented towards newly recruited women and young people, which have been in place since 2009, are very influential in this development. Nevertheless, at 28 percent, the female labor force participation rate in Turkey is very low compared to European countries. While the labor force participation among females with a university degree converges towards the EU average, with a ratio of 71 percent, only 23 in every 100 women with a high school or lower education participate in the labor market. Regulations to be implemented in the labor market in the forthcoming period will contribute to sustainable growth and an increase in employment on a permanent basis. Within this scope, it is essential that:   Flexibility of the labor market should be increased,    Competition within the private sector is promoted,    Pay-roll taxes are reduced, and    Necessary policies for establishing an educated and qualified labor force, which will accommodate private sector requirements, are followed.
Moreover, the effects of these reforms will emerge slowly and gradually. However, this is the only way to ensure permanent economic welfare. Monetary policy does not have a lasting effect on the long-term growth performance of the economy other than the benefits of establishing and sustaining price stability. The Central Bank will continue to make a concerted effort to achieve price stability as per the duties and responsibilities entrusted by its Law. BIS Review 104/2010  5  I would like to end my remarks by extending my regards to all participating academicians and policy-makers for their valuable contributions to the “World Business Congress of the International Management Development Association”. Also, I would like to thank, once more, the members of Karatay University their contributions to the conference. 6  BIS Review 104/2010