The Political Economy of Regulation in Turkey

The Political Economy of Regulation in Turkey brings together leading international scholars and experts on Turkey and regulatory reform to provide essential information on the recent Turkish experience and its relation to competition policy. After the 19

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Tamer Çetin    Fuat Oğuz ●

Editors

The Political Economy of Regulation in Turkey

Editors Tamer Çetin Department of Economics Yildiz Technical University Yildiz Kampusu Yildiz 34349 Besiktas Istanbul, Turkey [email protected]

Fuat Oğuz Baskent University Baglica Kampusu Eskisehir Yolu 20 06530 Baglica Ankara Turkey [email protected]

ISBN 978-1-4419-7749-6 e-ISBN 978-1-4419-7750-2 DOI 10.1007/978-1-4419-7750-2 Springer New York Dordrecht Heidelberg London © Springer Science+Business Media, LLC 2011 All rights reserved. This work may not be translated or copied in whole or in part without the written permission of the publisher (Springer Science+Business Media, LLC, 233 Spring Street, New York, NY 10013, USA), except for brief excerpts in connection with reviews or scholarly analysis. Use in connection with any form of information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed is forbidden. The use in this publication of trade names, trademarks, service marks, and similar terms, even if they are not identified as such, is not to be taken as an expression of opinion as to whether or not they are subject to proprietary rights. Printed on acid-free paper Springer is part of Springer Science+Business Media (www.springer.com)

Preface

Turkey, along with many emerging economies, is passing through a transformation in its network and infrastructure industries. While the reform effort has its ups and downs, the trend seems irreversible. We have been watching the transformation since its beginning and wanted to bring together a comprehensive and informative book in order to provide an overview of the major issues from electricity generation to water issues. Seeing the whole picture usually helps to distinguish the institutional aspects more clearly. Our belief that institutional factors play a more prominent role in network industries comes from our readings on other countries’ experiences and the regulatory processes in Turkey. In the book, we tried to reflect complexities that surround decision-making in those markets. This book is the outcome of a collective effort to bring up-to-date information on the regulatory reform in Turkey and provide a general guide to understanding prominent issues. We draw together the main components of the regulatory issues in network industries and the role of competition policy. Regulation and competition policy has to be analyzed together to get a better picture of the nature of regulatory process. We anticipate that the book would be helpful for a wide spectrum of readers, collectively engaged in research, policy, and practice. It is our hope that it will have contributed to the setting of a more relevant research agenda. We gratefully acknowledge the contributions of the authors. Each of our authors has firsthand experience in the relevant subject both academically and in the field. We thank our editor Jon Gurstelle and the staff at Springer for bringing this book into publication. Is