Reason privatization, objectives and results: Turkey analysis

Capitalism has led to two great depressions in the last century. The first one is the great depression of 1929, and the other one is the oil crisis, which started in 1973, introducing the concept of stagflation into the literature of economy. The first crisis revealed that the classics not interfering the market were wrong, while the second one indicated that Keynes, who proposed economy politics with demands and stipulated intervention of government in economy, was incompetent. In particular, public enterprises came out thanks to the crisis of 1973, and eventually the inefficiency of public economic enterprises were considered as the main reason for the crisis. Therefore, this general conclusion put the issue of the privatization of public economic enterprises on the agenda, and liquidation of public sector began in many countries. In practice, it was first applied in Chile, but the Pioneer country was England. While these changes were made in the world, the practice studies related to privatization in Turkey started after 1980; in other words, they began with Turgut Özal and his liberal ideas. Following the military coup, Özal was promoted and assigned as Prime Minister, and like Margaret Thatcher and Ronald Reagan, he also supported the idea of privatization and made attempts relative to this issue. After one-party state (Anavatan), the coalition governments sustained the activities of privatization as well. On the other hand, Adalet Kalkınma Party, which has been the party in power for the last 12 years, has also taken the activities of privatization one step further and during the first years of leadership, the party made much more privatization activities than the former parties in power. In the first part of the study, the economic situation of the country was discussed within the frame of economic movements as well as Mercantilism and the other modern movements of today.In addition, the concept of privatization was elaborated, and Public Economic Enterprises was defined theoretically. In the second part of the study, the privatization activities made in the world were studied and analyzed according to the countries selected. In the third part, on the other hand, the process of privatization in Turkey was examined from its foundation period until today besides the process of actual privatization beginning with Özal was analyzed chronologically by elaborating particularly the important privatizations during the period of party in power in those years. The study was concluded with the evaluation of the negative sides of privatization and with the suggestions related to alternative ways. Keywords: Privatization, Privatization in the World, Privatization in Turkey, Privatization Tecniques, Privatzation Effects.