Epiphany (Aug 2010)
Privatization, Competition and Beyond
Abstract
Privatization not only results in the transfer of state assets, but it also reduces economic role of the government. Developing and developed countries have experienced privatization in different ways for years. This article focuses upon the issue of privatization in Turkey. Turkey launched its comprehensive economic liberalization program named ‘structural adjustment reform' in 1980 by the stimulation of the World Bank and IMF. Later on, privatization has been an official state ideology with two institutions, the Privatization Higher Council and the Privatization Administration. Some of their implementations have been given. Privatization policies have multiple, often together with often inter-related and conflicting political, economic and financial objectives. They must be evaluated according to political, social and economical structures and conditions of the country concerned. Together with privatization, competition and its institutional framework with implementations have also been analyzed in the paper. The paper maintains that there seemed no direct and strong relationship between the privatization endeavours and institutional competition. Finally, the study points out that Turkey seems to be a bare-foot runner in its privatization venture unless there is a proper competitive market, together with a sound social security system and a profound capital market.
