The Effects of Globalization on Turkish Public Financial Management and Budget Process

Introduction

World-wide market relations caused by globalization have differentiated states’ views on the economy. Because governments could not take advantage of the opportunities brought by the market, they were criticized for not being able to make effective and rapid decisions on strategic issues. However, it has become a general demand of governments to use public resources efficiently by adopting new technologies to harmonize the structure of public administration with global competition (Sahin, 2007). Increasing international competition and political developments with the globalization process led to rethinking the role of the state. Also globalization and its effects; has forced the countries to make administrative reforms in every country to restructure the state and become competitive with other countries internationally (Inans, Guner and Sarisoy, 2007). All these reasons have led states to change public administration systems not only to sustain their existence, but also to compete and develop.

In the new global economic environment, countries have had the need to replace their old protective policies and institutions with methods that will make them more competitive and effective. Restructuring of public administration, also called state reform or public sector reform has come to the forefront as one of the main topics of countries’ agenda. Many countries saw the restructuring of public administration as a necessity to adapt to the globalizing world and increasing competition. Especially after 1990, in the quest's framework to adapt to global competition, restructuring efforts in public administration have been brought to the agenda in many countries (Bilgin, 2005).

While all these developments in the international arena affect public administrations to act swiftly, many international organizations such as IMF, OECD and the World Bank have also supported public administration reform in different ways. This international impact also led to the expansion of public financial management reforms. In addition, successful reforms in various countries have pushed other countries into an effort to change their management systems (Sahin, 2007). In this process, especially in many OECD countries, reforms were carried out in public administration. During the restructuring process; although the countries targeted the transition to different management because of political, cultural and administrative differences, the basic standards and general trends in restructuring have been similar. Elements such as a citizen-oriented bureaucratic understanding, participation, transparency, accountability, being effective and efficient, strengthening the strategic dimension, highlighting decentralization and flexibility applying market-based modern management techniques, management structures based on results and performance, worldwide, it can be cited as an example of the similar aspects of implemented public administration reforms (Bilgin, 2005).

Turkey also could not stay out of this process. Restructuring efforts in public administration have become one of the main areas of discussion in our country that started in the 1990s and continued in the early 2000s. The agenda of public administration reforms in Turkey to enter the study, other factors besides global developments have also been effective. These factors can be exemplified by the severe economic crises we experienced and the corruption events that shook the public (Bilgin, 2005). The main purpose of the research, globalization, is to work together to reveal the effects of globalization on the restructuring of public financial management in Turkey. For this purpose, in the research; first of all, globalization and the new public administration approach were explained. Then, the effects of globalization on public financial management are examined. In the last part of the research, the effects of globalization on Turkish public financial management; with the Public Financial Management and Control Law No: 5018, changes and developments in the budget process are analysed by considering them.