Privatization of Water Resources in the Context of Neoliberal Economic Policies: The Case of Hydroelectric Power Plants in Türkiye

Fatih Sami Özakyol and Hakan Reyhan

Fiscaoeconomia, 2025, issue 4

Abstract: This study examines the conceptual foundations of neoliberalism and the processes of commodification and dispossession of nature through the case of water. Neoliberalism is not merely a set of economic policies but is considered a paradigm with political, social, and environmental dimensions. The study analyzes seven core principles of neoliberalism: privatization, marketization, deregulation, market-friendly reregulation, the use of market instruments in public services, the promotion of support mechanisms in civil society, and the creation of self-sufficient individuals and communities. It demonstrates how these principles function in the transformation of natural resources in favor of capital. The privatization of water in Türkiye is analyzed within this framework. This analysis is conducted within the scope of a qualitative research method and is based on literature review and document analysis techniques. The expansion of hydroelectric power plants, the amendments to Environmental Impact Assessment (EIA) regulations, and Urgent Expropriation Decisions are examined. It is shown how the liberalization of the energy market has accelerated this process. Moreover, the study emphasizes that practices legitimized under the discourse of public interest have restricted local communities’ access to common resources. This has reinforced state-capital collaboration. The study addresses the economic, political, environmental, and social dimensions of neoliberal economic policies together. In the economic dimension, it reveals that the privatization of water and hydroelectric power plants (HPPs) has created new market opportunities in favor of capital, thereby strengthening state-capital cooperation. In the political dimension, the liberalization of the energy market, the amendments to EIA regulations, and Urgent Expropriation Decisions have created a legal basis for market actors. In the environmental dimension, it is determined that small and medium-scale HPPs often have negative impacts on ecosystems, but these impacts are overlooked through ‘EIA not required’ decisions. In the social dimension, it is found that local communities’ access to common resources is restricted, their living spaces are narrowed, and despite increasing social reactions, opportunities for participation in decision-making processes remain limited.

Keywords: Neoliberalism; Commodification of Nature; Water Privatization; Dispossession; Hydroelectric Power Plants (search for similar items in EconPapers)
JEL-codes: B41 L25 P16 Q50 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:fis:journl:250426

DOI: 10.25295/fsecon.1761995

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