34. International Public Finance Conference
The Evaluation of Intensive Municipal Economic Enterprises in Local Governments From the Point of View of Public BenefitMurat Çak, Binhan Elif Yılmaz, Volkan Oğhan
Today, municipalities, which are a local government unit, are provided with legal and financial opportunities to meet the common local needs and to fulfill the relevant services. However, the municipalities prefer the way of corporatization with the settlements such as Municipality-Owned Enterprises (MOEs), subsidiary company, and partnership in fulfilling services and rendering of various goods and services. Through the application of MOEs, which offers an alternative to municipalities in the case of income generation, it provides operating in market economy according to market conditions in line with the increase in local public benefit of a public entity. Public correlation in the state of establishment and management of MOEs may cause them to be in a different status than other actors of the market. MOEs are established according to the reasons such as efficient and local service delivery through privatization, the use of opportunities and techniques in market economy without bureaucratic processing burden, benefiting the flexible wage policy and skilled labor, reducing the effect of centralized administration supervision, the generation of new income sources, and the use and diversification of local opportunities. In addition, these enterprises should be evaluated in terms of wealth matters such as efficiency in local service delivery, financial supervision, the competition in market economy, and corresponding of social choices. In this study, legal regulations constituting a basis for the establishment of MOEs, summarized the reasons and form of establishment, its structure, fields of activity, efficiency and productivity levels and used as an alternative delivering service method at the local level, and its application results will be examined.