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The technologies of information and communications and their application are becoming central issues for all governments trying to achieve long-run growth and international competitiveness. This country study provides a comprehensive analysis of the role of informatics in economic development and examines Turkey's efforts to develop its capacity in those areas. During the 1980s, Turkey laid the foundation for its transition to an information-based economy by liberalizing finance and investment regulations and by reducing barriers to competition. Tariffs on computer equipment were slashed, and the government embarked on a program of investment in the communications system. Investors responded, particularly in the finance and travel sectors and in select operations of large corporations. But the largest consumer of these technologies is still the Turkish government. And gains in productivity expected from modernization have not yet been widely evident. This study says that the most effective policy to promote an information-based economy is a commitment to open competitive markets. The major factor in that commitment is building up an educated workforce. Although Turkey's performance in this area is better than most developing countries', this report contends it needs to do more to meet its goal of full participation in the new era of informatics. The study contains cross-country comparative data throughout the book and in annexes.