Corporatisation in Local Government: The Case of Turkey

Turkey has a long history with municipally owned corporations (MOCs), but their importance for the public sector has increased significantly from 2010 onwards. In the 2010s, the total number of MOCs in Turkey has almost doubled, to accommodate two-thirds of all public personnel employed currently in the Turkish local government. The service areas of MOCs in Turkey show a great variety, and many MOCs are active in multiple sectoral areas. However, most MOCs in Turkey serve in-house services for municipalities rather than service provision. Despite the growing importance of MOCs in the public sector, the public data about MOCs are conspicuously absent, and there are many loopholes and contradictions in the regulations. The information gap and the legal complexity surrounding MOCs seem to be associated with the mismatch of the prescriptive legal code with the regulatory flexibility aimed through corporatisation and the legal complexity brought by the shift to an executive presidential system following the 2017 referendum. After the shift of power in key metropolitan municipalities from the Justice and Development Party (AKP) to opposition parties following the 2019 local elections, the central government has started to tighten up the financial and administrative control on MOCs.