The effect of privatizeted local administration services on satisfaction of beneficiaries

The purpose of this study is to analyze the effect of the privatized local administration services on the degree of public satisfaction in Turkey and Spain from the perspective of institutional economics. Today as the degree of local administrations? autonomy is discussed in the world and in Turkey, privatized local administration services are also being the subject of discussion under this framework. In this study, this matter is examined based on the survey data which measured the public satisfaction from privatized local administration services in Aydın and Madrid. Privatization is perceived as the evolution of local administrative institutions into the market direction and analyzed under the framework of institutional economics.In the first part of the research, the literature on institutional economics is reviewed. Especially, institutional economics is identified as the evolution of institutions and ?game theory? in the light of Douglass C. North and Thorstein Veblen?s ideas. Thinking that institutional economics has emerged as a critique of mainstream economics first, a critique of mainstream economics was presented. Later, the definition of institutional economics is made and the differences between institutions and organizations. After touching briefly on the methodology of institutional economics, the common denominators of institutional economists are stated and the institutional economist is defined. Finally, the place of institutional economics among the schools of economics is specified and its characteristics are presented.In the second part of the study, a literature review on the local administrative system of Spain, which will be compared to that of Turkey, is given. After giving brief information about Spain, detailed information about its local administrative structure is given and the structure of its geographical authority is mentioned.After mentioning Spain?s local administrative system, Turkey?s local administrative system is examined in two parts. Thinking that the reader has major information about the system in Turkey, this part is kept relatively short. Basically, the definitions and characteristics of local administrations in Turkey are presented. Later, the types of local administrations are given, but municipalities, which are the most effective type of local administrations, are examined in more detail. Especially, the 5393 No. Municipality Law?s content and interpretation are examined thoroughly since it involves revolutionary reforms.In the third part of the study, the matter of ?privatization? is taken up. The techniques of privatization are examined in detail to better understand the types of privatization of privatized local administration services, which is one of the main titles of the study. The theoretical benefits of privatization were stated and in the end of the study the benefits and costs are compared. Thinking that privatization is a transition from a state economy to a market economy, state and market failures are mentioned.In the last part, the application of the research is presented. In this section, the data, which were obtained from the 18-question-survey done in the central regions of Aydın and Madrid are evaluated and their statistical analyses are done. The questions are mainly on satisfaction from local administrative services and the participants? views on privatization. By this, whether or not local administrations whose primary purposes are public?s satisfaction and satisfying their needs are successful in privatization practices.The evaluation part is of advisory nature to local administrations in Turkey. Especially because of the fact that that the characteristics of the people in Spain show similarity with those in Turkey, that both countries? social characteristics have too much in common, these advises have become very effective in taking the local administrative system in Spain as a model.