We frequently encounter a cliché that everyone knows: “Ignorance of the law is no excuse!” But what about not knowing court decisions? Can a person be sued and penalized by the same administration for “complying with” the provisions of a regulation which the administration has published? I can almost hear many of you saying, “Of course not; that’s absurd...
If we restrict the supply, can we reduce the prices? From the perspective of economics, it should be the opposite. So, does limiting the number of bakeries and requiring permits for bread sales reduce bread prices? After the New Year, bread prices increased in some cities, sparking debates about whether this is a “price hike” or simply an “adjustment.” A few days ago, the...
I came across a news article in a newspaper a while ago, and the title of the article caught my attention: Yes, you read it correctly! In 2008, a requirement was introduced that anyone wanting to become a general secretary of chambers and stock exchanges must have a criminal conviction for the abovementioned crimes. The first sentence above was the headline of a news article published in...
In the third article of the series on Regulatory Traps, we examine the developments after a parliamentary commission’s work at the Grand National Assembly of Turkey (TBMM). Although the first few paragraphs may seem technical, the continuation of the article explores how an intervention by the relevant commission, driven by aesthetic concerns, resulted in unintended consequences. In 1994...
In the first part of the “Pitfalls of Regulations” series, we delved into the intricacies of regulation, explored the perils of neglecting the nexus between purpose and means, and outlined what corrective actions should be taken [1]. Now, we embark on a journey concerning the introduction of “Regulatory Impact Analysis” (RIA) into Turkish legislation in 2006 and its...
Regulations are a concept that actually exists in our lives as long as the state exists, partly due to the development of market economies and partly due to the winds of European Union membership, resulting in more frequent encounters and discussions. Regulation, in its simplest definition, signifies “rules based on state authority.” Therefore, regulations stand apart from other...
The success story of the liberalization of domestic air passenger transportation in our country in 2002 is essential for concretely illustrating the benefits of competition and the relationships between policy design, bureaucracy, regulations, and markets. Some key lessons from this success story are outlined below: The data relating to the market at the beginning of the liberalization process...
The Theory… I had the privilege of addressing the delegates from several countries at the OECD’s Global Forum on Competition in 2006 (see the presentation). As one of the lead discussants, I summarized the relationship between competition and concessions in just 15 minutes. Therefore, I decided to sum up the whole issue in one chart, and later on, in my seminars, I had the chance to...
One of the fundamental tenets of a market economy is that when the “invisible hand” operates without any hindrance or guidance, the efficiency of activities and societal welfare will be maximized. Therefore, the necessity to preserve competition is one of the most important principles of a market economy. When we look at any introductory economics textbook, we are likely to see...
In the previous post titled “Privatization and Competition – Part I: Why?” I have stated that the goal of privatization is not merely “disposing of public enterprises to the private sector” because it is difficult to operate state-owned companies (SOEs) like private enterprises and often not feasible. Instead, the aim is to transfer these entities to the private sector...
In seminars related to competition law, when the privatization topic comes up, it’s common to see that the majority of participants approach the issue with preconceived notions and often ask the following classic question: Why are we “selling” these State Owned Enterprises (SOEs), which are among “the most profitable organizations” in the country? The statements in...
Watching buildings turn into decks of cards after an earthquake leaves one facing pain and many questions. Especially if the hospitals, where we entrust our lives, and schools or dormitories, where we entrust our beloved children, were the first to collapse in every earthquake… It is tough to accept that we prepare graves for ourselves and our loved ones with the taxes we pay! In such days...
Let’s wear the shoes of an investor and prepare for the tender of the privatization of the telecommunications monopoly in a given country. Which of the options below will be more attractive for you, thus you will be willing to invest more money? And why? a) The company will be sold, including the monopoly rights, and no one will interfere with your pricing later on. b) The company will be...
A well-designed industrial policy is actually one of the most important tools for a country’s development. However, since every country’s production resources, capabilities, and priorities differ from raw materials to human resources, it is not possible to talk about a one-size-fits-all industrial policy. On the other hand, it is now understood that industrial policies are not solely...
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