ABSTRACT

This chapter examines Istanbul’s metropolitan development in light of current economic and administrative policies in theoretical perspective, which are supported by three case studies of recent large-scale urban infrastructure projects to underline such relations. These projects have been criticized by civil society organizations, city planners and environmentalists but this did not prevent their construction. Dynamics behind such ‘big and strong’ projects, consortiums and their partnership is analyzed in this study.

Turkey started to work initially, with the intention of restructuring in response to the economic crisis, but over time, under the guidance of the private sector, the policies created resulted in political favoritism. The re-allocation of resources and changes in macro-economic policies in line with the preferences of the political government of the time was born out of the conservative bourgeois class. In summary, the effect of neo-liberalism, the private sector became an important stakeholder in Turkey and has been quite effective in the general economic policy formulation and direction.

During the early neo-liberal period a new trend emerged; the New Public Management Model promoted managerial and administrative structuring to enhance state effectiveness, efficiency and principles of accountability. The new model recommended the shrinking of the central state’s administrative capacity. So, the growth of the private sector through the privatization of economic production encouraged the decentralization of central authority and power to local or regional authorities.

After strengthening the private sector, local governments became in interest area of big firms and big interest groups. Legal regulations in the field of local government paved the way for such relationships. For example, in many areas, as a general principle, produce and provide direct public services, rather than focusing on the acquisition will allow it adopted in the private sector. The private sector’s capacity to offer an alternative to local governments as service providers proved to be effective.