As Turkey faces the 21st century, itmust confront a series of critical policy questions: Can itcontinue to make progress in the fight against poverty? Isit possible to accelerate this improvement, which givenTurkish growth rates, has been disappointing? What needs tobe done to ensure that GDP growth pays off in terms ofbroad-based increases in employment and wages? Is itrealistic to envision a future growth path in which 40percent of employment remains in the agriculture sector? Canthe widening of disparities between regions somehow bereversed? This report recommends the key elements of astrategy to improve living standards and reduce povertyinclude: 1) Provide a macroeconomic environment that isconducive to growth and price stability. 2) Remove biasesagainst employment creation outside of agriculture. 3)Facilitate the outflow of resources from agriculture andprovide a basis for productivity growth in the sector. 4)Invest in education, and especially in that or poorchildren. 5) Reallocate Government expenditures so that theyare better targeted to the economically vulnerable.