Privatization of Social Security System and Its Consequences: The Turkish Case

Abstract

The purpose of this study is to critically analyze the efficiency of the private pension system in Turkey. Firstly, the social security system and the recent institutional reforms will be briefly evaluated. Secondly, the private pension system in Turkey will be examined as a government strategy to cut down on the economic cost of welfare provision and sharing the cost of social responsibility with the emerging private pension market. Thirdly, the efficiency of the private pension system will be evaluated with respect to the survey data collected in Mugla, Turkey. Finally, a comparative analysis on the private pension system and the public social security system will be carried out on a structural level, both empirically and theoretically. If the social responsibility of welfare provision is funneled to the market, what kind of social risks will emerge if the market is in crisis? The institutional responses together with social dynamics will contribute to an evaluation of policy alternatives under potential financial crisis.

DOI: http://dx.doi.org/10.5755/j01.ss.78.4.3238