Regulatory Institutions and Better Regulation

Under normal conditions, competitive market economy should be completely free from regulations. However, in conditions when the market economy is regularly disrupted and a fully competitive market cannot be attained, a regulatory understanding, on a temporary basis if possible, could be discussed. In the financial services sector wherein the symmetry in the dissemination of information is disrupted (assymetric information) and in sectors with a natural monopoly characteristic (energy, water, mining etc.); the stakeholders of the sector and the central authority may manage the disruption of the market and create a controlled competition environment. However in such a structure; the stakeholders and the central authority should have equal weight in the decision making processes and in administrative capacity and the structure should be independent from the central authority both in terms of administration and finance. In addition; the regulatory organisations established on the assumption of the natural monopoly characteristic should be inclined to gradually leave this task to the market as the market approaches full competition conditions. It is necessary for all regulations besides the market disruption to be reduced to zero or for them to be constantly reviewed with a market operations friendly (good governance/better regulation) understanding.

TÜSİAD Parliamentary Affairs Committee
Public Reform Working Group