How popular is privatization? public attitudes towards privatization in Turkey

Abstract

Privatization became a global phenomenon in the 1980s, and as one of the main pillars of structural adjustment programs it was promoted by international institutions, namely the International Monetary Fund and the World Bank. Turkey was among the first countries to adopt this policy, ostensibly for the sake of increasing competition and efficiency. Until the 2000s, however, a very limited number of divestitures was finalized. Most privatizations in Turkey were undertaken thereafter with a speed and scope not experienced before. Privatization is more than an economic policy choice for the ownership of a firm; it has political and social implications for governments and, more importantly, for citizens. This thesis examines the main drivers that have shaped the support for privatization in Turkey from a public opinion point of view. Through the use of quantitative methods, it analyses the relationship between public opinion on privatization and socio-demographic characteristics, subjective income evaluation, political inclination and employment by using data from 5 waves of the World Values Survey for Turkey, conducted between years 1990 and 2011. The results indicate that socio-economic and socio-demographic factors as well as ideological factors and support for government are significant in shaping support for privatization. Nevertheless, temporality in general and the 2001 crisis in particular were the strongest factors in increased public support.