Restructuring the Public Sector in Post-1980 Turkey: An Assessment

Abstract

This chapter aims to assess the change in the role of the public sector as a major spender and producer in line with the structural adjustment experience of the Turkish economy in the last two decades. The review on the social security network is also considered, given its intimate connection with the provision of health service in Turkey. The evolution of the Turkish public spending pattern exhibits some interesting parallels with both middle income developing countries and the developed economies since the early 1970s. The data on the functional distribution of Turkish central government expenditure are plagued with definitional breaks and inconsistencies; hence neither the changes in functional shares over time nor comparisons with those of other countries seem very reliable. The drive for privatization gained momentum by the preparation of a 'Privatization Master Plan' by Morgan Guarantee Trust & Associates, which was financed by the World Bank and issued in 1986.