International Congress on Eurasian Economies

International Conference on Eurasian Economies

12-14 October 2011 – Bishkek, KYRGYZSTAN

Paper detail

Paper ID : 287
Status : Paper published
Language : Turkish
Topic : Growth and Development
Presenter: Prof. Dr. Doğan Nadi Leblebici
Session : 5B Büyüme ve Gelişme I

The Cost of Bureaucracy in Emerging Liberalized Economies: The Case of Turkey
Gelişen Liberal Ekonomilerde Bürokrasinin Maliyeti: Türkiye Örneği

Abstract

During 1980s, developed and developing economies have tended to be more liberalized for the sake of effectiveness assumed to be realized by the virtue of free market economy. Through with this tendency, public bureaucracies have been oriented to utilize productivity methods and techniques of private sector which acts and proofs itself within free market economy. This model for public sector was called "new public management". By this new model, it was supposed that wastefulness in public bureaucracies would be eliminated and they would become more productive. In Oliver Williamson's terms, experienced economic crises in 1970s have been thought to be as a result of bureaucratic failure, and this could be compensated by replacing bureaucracy with market economy. After 30 years of experiencing new public management, and new global economic crises, this assumption seems to need to be tested with relevant comparative data of bureaucratic cost. For testing the hypothesis, longitudinal data of annual budgets of certain ministries in Turkey having voluminous bureaucracies and budgets were collected and compared. Results showed that increasing cost of bureaucracies may require new measures to prevent new economic crises. However, it is not clear that market economy is capable of overcoming economic problems and of filling the gap of a possible lack of regulatory mechanisms.

JEL codes: E02

Leblebici, Doğan Nadi, Kurban, Ayşegül (2011). "The Cost of Bureaucracy in Emerging Liberalized Economies: The Case of Turkey" in Proceedings of International Conference of Eurasian Economies 2011, pp.306-310, Bishkek, KYRGYZSTAN.

DOI: https://doi.org/10.36880/C02.00287

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Session 5B: Büyüme ve Gelişme I

Istanbul Beykent University Kyrgyz-Turkish Manas University Promotion Fund of the Turkish Prime Ministry Turkish Central Bank