US Crisis: Capitalists Win, Workers Lose

"Turkey is entering a period of micro-reforms. The ruling Justice and Development Party (AKP) finished its macro-reforms in order to conform to international systems in the last legislative period. The foreign capitalists affected by the international economic crisis may see Turkey as a possible region of investment. If that is the case, then a more flexible employment policy will increase the dominace that capital will have over labour."

Effects of crisis on Turkey 

Economist Fuat Ercan thus interprets the probable developments in Turkey following the financial crisis in the USA. He and his colleague Tolga Tören have evaluated the possible effects of the international market crisis on Turkey and particularly on workers for bianet.

The Istanbul Stock Exchange has been one of the most affected internationally. Tören said that problems with the USA mortgage crdits had caused a financial crisis that was related to the fluctuations of capitalism.

According to Ercan, this crisis was bigger than that of 1929 and added, "There is so much accumulated capital in the world that we are facing a crisis of how to use this capital."

"In the USA, two thirds of the credits given are mortgages. There has been a liquidity problem on the markets for a long time. Capitalists are experiencing problems and new ways to create capital need to be found. This may be housing loans, investment in technology or a turn towards countries who are in the process of becoming capitalist."

Small savings most affected

Ercan added, "These kinds of crises hit those with small or medium savings. If you only have 100 Lira, and you lose 60 of them, then you are very much affected."

Capitalists Approve of AKP

Tören and Ercan agree that capitalists approve of the AKP's economic policies of the last four years. Tören, "The AKP has listened to [economic advisor] Kemal Dervis's advice about separating politics and the economy. The main move has been to unite different capitalist groups."

According to Ercan, "The AKP has used all of the possibilities that the international expansion has offered. There has been more foreign capital brought into Turkey than in the last forty years. Capitalists looking for new areas after this crisis may look towards Turkey, which has done its homework."

Labour will be destroyed

After the 2001 crisis, unemployment increased in Turkey, and micro-reforms require flexible employment policies, says Ercan. "The value of the labour market will drop when foreign capital comes to Turkey, the dominance of capital over society will increase and an urban transformation will take place. Farmers, seen as a burden, will be destroyed."
The AKP is allowing capital to enter the area of social security and is at the same time reducing the social right to security to charity. Tören says, "In terms of capitalists, those supporting the AKP must overcome the 'fragility' of their demands and organise more effectively. For workers this means less power, less organisation, less defense." (AÖ/EÜ/AG)