Economics of Philanthropic Institutions, Regulation and Governance in Turkey

Abstract

This paper merges the literature on regulation, specifically private provision of public goods, and governance with the literature on philanthropic institutions (awqaf) in Turkey. Traditionally, awqaf (plural for the waqf) have been very functional regarding the socioeconomic realms in Muslim societies. On the other hand, the provision of public goods is one of the core discussions under the literature on regulation and governance, particularly the property rights. This paper analyzes the role of waqf which has historically been more than a charitable organization: an economic agent in Turkey. Being a long-time provider of public goods, awqaf can be studied of property rights and regulation process, while its organizational structure could be considered as a subject to the firm theory. Turkish philanthropic institutions possess historical significance in terms of their organizational evolution and relationship to the changing governance structures in the country. Therefore, also discussed in this paper are the similarities and differences between the awqaf and Western charitable organizations, particularly in terms of organizational structures, definition of property rights, and their evolution under different governance-related structures such as rule of law and contract enforcement.

Keywords: Philanthropic Institutions, Regulation, Governance, Turkey

JEL Classification: H410, L310, L510