Evaluation of the activities of independent regulatory agencies in terms of public interest: Sample of Tobacco and Alcohol Market Regulatory Authority

This thesis is devoted to the evaluation of Tobacco and Alcohol Market Regulatory Authority's activities, which is authorized for regulation in tobacco and alcohol sector in Turkey, from the perspective of public interest between 2002-2017. Regulation is one of the basic functions of the state to regulate the private sector. State has resort to the regulations when there are besides the monopolies, market failures such as externalities and asymmetric information in the market. As a result of market failures, the state intervenes in the certain sector, making the necessary arrangements and providing public interest. Independent regulatory agencies that are authorized to regulate have become widespread in many sectors such as electricity, natural gas, banking, telecommunications and agriculture starting from 2000s in Turkey. On the other hand, regulations aimed at ensuring public interest may be captured by certain political or economic interest groups in the market within a certain period of time, and regulations are created to benefit interest groups. The aim of this study, which falls into the fields of political science, public administration and economics, is to critically evaluate the theoretical accumulation in the field and to analyze the activities of the Turkish Tobacco and Alcohol Market Regulatory Authority, which has the regulating authority, in the context of public interest and capture theories. Adhering to the purpose of the thesis indicators for the effectiveness of tobacco and alcohol regulation applied in Turkey are determined separately for each sector between 2002-2017. While analyzing the progress in both sectors, a holistic approach has been adopted by looking at the same time from producers' and consumers' perspective, who are the main participants of the market. Obtained findings are interpreted under the classification of production, display, sales and use regulations. Different results arise for each regulation from the analysis made. As a result of the production regulation, it has been concluded that the markets in both sectors were captured by foreign companies or at least some large domestic companies. On the other hand, it is found that there is some progress in sales, display and usage regulations in favor of public interest.