Privatization in Turkey

This study comprehensively evaluates and asses the privatization in Turkey for the period 1985-2007. The following topics have been analyzed: Historical background of State Economic Enterprises (SEEs) in Turkey, institutional and legislative background of privatization in Turkey, institutional frame of privatization process in Turkey, auditing process of privatization in Turkey, purpose and philosophy of privatization, employees of Privatization Administration, privatization procedure, privatization methods, assessment procedure of privatization, SEEs included in the privatization portfolio in 2007, privatization receipts and expenditures between 1985 and 2007, and impact of privatization on labor at privatized SEEs. Additionally, oppositions and resistance are discussed and evaluated for the mentioned time period. The main conclusion of this study is that the privatization process in Turkey has been successful during the recent years due to adequate legislative regulations, macroeconomic stability, and political stability.

The Acceleration of Privatization: Understanding State, Power Bloc, and Capital Accumulation in Turkey

Privatization has been on a lot of countr ies' agenda, especially for the emerging countries for a long time. In Turkey, as an emergin g country, privatization plan has been a very high priority among the State Budget income items f or three decades. To identify and to explore the accounting role in privatization is the critical issue for the countries under privatization process. In this study, the importance of financial reporting d uring privatization process is examined. The overall responsibility of accounting in privatizati on is to develop investor confidence to channel the flows of funds and to ensure the effective and effi cient use of capital funds. Therefore, without a sound accountancy framework, the privatization proc ess would not generate the desired long term economic, social, and financial development results . Therefore, we analyzed the period of Turkish privatization experience by underlying the importan ce of financial reporting in this process. For this purpose, in the first part of the study, we defined the privatization and argued the positive and negative opinions about it. In the second part, we clarified the role of accounting in privatization process under disclosure, transitional problems, tr aining, valuation problems, and inflation accounting subsections. In the third part, we dis cussed the recent accounting developments which may effects privatization in Turkey. In the fourth part, we summarized the implementation of privatization in Turkey. Then, we mentioned the key issues in privatization process for emerging economies. Based on the Turkey's privatization prac tices, financial reporting has a very important role in the SOE's privatization process. In our poi nt of view, since accounting has an important role in privatization, this role takes place before , during and also after the privatization. It shoul d be taken into consideration that the main objective of privatization is not only to privatize SOE's, but also keep the sustainability of privatized SOE' s. While privatization creates sources for new investments of the governments, it should support t he effectiveness and economics of goods and services in the area of privatization. So the susta inability of privatized companies is very important as well as their sales. All of the above purposes c an be controlled by solely accounting.

This chapter presents a political economic analysis of the privatization movement in Turkey. In terms of pace and volume, the privatization experience in Turkey can be examined in two different periods. In the period 1985–2003, privatization amounted to only 8.2 billion dollar, while it reached approximately 36.4 billion dollar in the period 2004–2009. The radical transformation in the privatization policies of Turkey is worth analyzing from a political economy perspective. To this purpose, first, the historical background to privatization in Turkey and the circumstances leading to liberalization and privatization policies will be examined. Second, the factors influencing the privatization process such as objectives, strategies, and the effects of economic, legal, institutional, and political conditions will be discussed. Analysis of the privatization experience in Turkey reveals that factors such as legal and institutional structures, political will, unstable macroeconomic conditions, ideological resistance, and rent seeking activities shaped the privatization movement and its consequences.

The effect of power distribution privatization on electricity prices in Turkey: Has liberalization served the purpose?

Introducing the Privatization in Turkey

From ancient Greece to the Renaissance period, up to privatization, which showed the effect on both Britain from Nazi Germany it emerges both in and outside Turkey. In this study the historical process of privatization in the world and in Turkey, the process of privatization, privatization has been mentioned in the domain. The first arrangement made in 1984 on privatization in Turkey, privatization, which began in 1986, the species, in taking the scope of privatization of SOEs No. 233 Decree, and for compatibility with the Constitution on 2018 703 Decree Law No. 85 Amendments to Article It was mentioned that the privatization authority was given to the President. The aims, benefits and disadvantages of privatization have been addressed using the current figures and data. This process was tried to be revealed by making a literature review.

The paper provides a comprehensive survey of privatization transastions in Turkey which took place between 1986 and 2000. The objectives of the privatization programme and privatized and nominated SOEs are discussed. The breakdown of total proceeds by sales methods and scope of the privatization programme by economic sectors are examined. The saleability of relatively large public enterprises is reviewed and utilization of privatization proceeds during and after privatization process is critically appraised. In addition, an attempt is made to discuss the politics of privatization by referring to key political and economic factors which have influenced implementation of the privatization programme. Following a short review of the economic environment and macroeconomic indicators in Turkey, focus is also placed on the research results that are available on the performance of public, private and privatized SOEs, particularly in the cement sector. In the final section, some key issues relevant to Turkish privatization are accentuated and some conclusion are drawn. © 2001 John Wiley & Sons, Ltd.

Against the backdrop of major changes in Turkey's development strategy and policy regimes, the paper provides an assessment of the aggregate performance of the non financial state-owned enterprise (SOE) sector, and examines the nature and process of reform initiatives during the decade of 1985-95. The paper argues that the performance of the SOE sector should be evaluated not only against the background of its institutional framework, but also in relation to the economic policy mix at the macro level. In this vein, the recently revised SOE data have been processed in a form that matches the policy cycle identified in the 1985-95 period. The analysis brings out the strong sensitivity of SOE financial indicators to changes in major policy characteristics, including Government's stance on income distribution, real wages and modes of deficit financing. Following the assessment of overall SOE performance over time, the paper critically reviews Turkey's privatization experience, examines legal setbacks, and documents major asset sales and related expenditures. The implications of the present analysis for future SOE reform are also discussed.

Part I. Broad Issues and Region-Wide Perspectives 1. Perspectives on state-owned enterprises reform and the MENA region Merih Celasun 2. Institutional analysis of state-owned enterprises reform and MENA region Mustapha K. Nabli 3. Privatization: a positive analysis with extensions to the MENA region Sahar M. Tohamy and Peter Aranson 4. Getting ready for globalization - a new privatization strategy for the Middle East and North Africa? John Page 5. Infrastructure privatization in the Middle East and North Africa Jamal Saghir 6. Savings and privatizations Ahme d Galal Part II. Country Studies 7. An analysis of compensation programs for redundant workers in Egyptian public enterprise Ragui Assaad 8. State-owned enterprise in Jordan: strategy for reform Taher H. Kanaan 9. Privatization in Sudan in the 1990's: prospects and problems El-Khider Ali Musa 10. State-owned enterprises and privatization in Turkey: policy, performance and reform experience Merih Celasun and Ismail Arslan 11. Productivity and profitability in 500 largest firms in Turkey, 1980-1994 Suley man Ozmucur 12. The relative efficiency of public manufacturing industry in Turkey: an intertemporal analysis using parametric and nonparametric production function frontiers Osma n Zaim and Fatma Taskn

Privatization in Turkey: what has been achieved?

In the 1980s public policy shifted sharply in favor of market-based solutions, in contrast to the previously dominant “Keynesian” approach to economic management. A number of countries, irrespective of their regimes or stages of development, are currently implementing programs designed to reduce the size and scope of the public sector and strengthen the market. The privatization of public enterprises constitutes a key element in such a strategy.1 Yet hitherto, the extent of privatization—the number of enterprises involved as well as the scale of divestiture—has been extremely limited, especially considering the amount of rhetoric the idea has generated. In addition, the vigor with which privatization policies have been pursued also shows considerable variation among countries. These “stylized facts” of privatization clearly merit an explanation.2 Here I will look for that explanation by using the Turkish experience with privatization between 1980 and 1989 as a case study.

La Turquie s'était dotée pendant la période kémaliste d'un important secteur public. Depuis 1985 un programme de privatisation est mené, mais il ne rencontre pas le succès espéré et il est difficile d'établir un bilan sérieux. En outre le gouvernement Demirel semble privilégier l'autonomie et la restructuration des entreprises publiques.

<p style="text-align:justify">This research reflects neoliberal economic policies by demonstrating the privatization of education in Turkey. The increase in the number of students of private schools and private schools in Turkey along with the relationship between public education investments and household income of education have been explained by using the document analysis technique from qualitative research methods. As in many countries, public education in Turkey has been removed from the basic human rights and commercialized and transformed into a commodity that has been bought and sold. Neoliberal transformation aims to generate a strong and dependent structure that eliminates political and economic freedoms. The documents published by the Ministry of National Education and the Turkish Statistical Institute were obtained from the relevant institutions and the data were analysed. It has been concluded that education has undergone a rapid privatization in Turkey, while investments in public education have decreased rapidly. Also the funds required to be allocated to public schools have been transferred to private schools, and the education rights of the children of poor families have been diminished.</p>

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.