Privatisation of public enterprises in Turkey: the case of PETKİM

Abstract

This research analyzes the concept of privatisation of Turkish state economic enterprises (SEE’s) throiçh the specific case of PETKIM, a public petrochemical monopoly. It consists of four parts. In the first part. a<Iescription of public enterprises is given. The extent of the public sector in the -world, the origins of industrialisation by SEE’s in developing countries are discussed. This part ends with the description of the common problems of SEE’s such as insufficient financial performance or inefficient management. The second part starts with the definition of privatisation. Then, the objectives of privatisation in Turkey and its implementation are described. The third part of this research tries to investigate the problems that PETKIM faces at the stage of privatisation. The lack of economies of scale and outdated technology of some of its plants are the major ones. Then, several methods of privatisation for PETKIM are evaluated. In the lost part, the Implications of privatisation are analyzed and in each case some recommendations are made. The mein issues are the use of the proceeds from privatisation and the impacts of privatisation on productive, allocative and managerial efficiencies