Crisis Stirs Fury

As Turkey's economic crisis heads into its second month with no end in sight, the mathematics of despair have become visible in every corner of the country's largest city.

It has never been easier to get a taxi, or harder to get on a city bus, as people save any way they can. Normally crowded restaurants along the Bosporus are empty. And despite enticing spring window displays, retail trade is sluggish at best.

The economic crisis, sparked by a dispute between Prime Minister Bulent Ecevit and President Ahmet Necdet Sezer six weeks ago, has resulted in a 75 percent devaluation of the lira. Turkey's poor have been hit hardest by the crisis and, day by day, the middle class is struggling for survival and becoming increasingly angry.

"Poor people with savings in Turkish lira have been hardest-hit. The rich can diversify, keep their savings in United States dollar accounts and offshore banks. But the poor and the middle class have very little they can do to protect themselves," said Oner Ayan, manager of the Turkish institutional sales desk at Raymond James and Associates, a New York investment company.

"The same logic is true for the businessmen as well. Larger businesses have protected themselves at least partially by exports or cash in foreign exchange. But companies which are in the growing stage, or those with high debt, are suffering a lot," he said.

Angry demonstrations

An Ankara florist who broke through security to throw an empty cash register at Ecevit as he left his residence sparked anti-government demonstrations early in the week. The protests continued in cities across the country.

The florist, who shouted, "Dear Prime Minister, I am just a tradesman," as the guards dragged him away, was fined 47 million lira--about $39--for his actions.

In Ankara on Wednesday, thousands of people clashed with police and more than 200 were injured during a demonstration that demanded the resignation of the government.

Police fired into the air and used water cannons and tear gas to disperse a crowd of more than 70,000 after demonstrators threw stones, bricks and pieces of wood at police.

At least 202 people, including 137 police officers, were treated in hospitals, the Anatolia news agency reported. Three people, including one police officer, were reported to be in serious condition.

Last week, thousands of protesters closed businesses and blocked highways in Ankara and Istanbul, shouting, "The government must resign!" and waving placards with the words "You're sucking our blood."

Traditional Friday sermons in the country's mosques were devoted last week to an appeal for calm and order.

But many are finding little solace in religious appeals or the promises of government officials.

At a taxi stand in the Rumeli Hisari neighborhood on the European Side of Istanbul, Kainat Celitaz, 35, married and the father of two young children, said: "In two weeks, I will quit driving a taxi. I rent the car for 600 million lira [about $500] each month and my contract is over in two weeks. The owner wants to increase the rent to 750 million [about $625]. But that's my profit. That's almost all I make in a month now."

Luckier than most

Still, Celitaz said he is luckier than most people. "When my family moved to Istanbul many years ago, my father built a house," he said. "My mother lives upstairs and my wife and I live downstairs. We don't have to pay rent. But I can't do hard labor because I've had heart surgery. Without my job driving a cab, I am afraid my mother will end up taking care of me, just like when I was a child."

Just down the street, Selim and Muzaffer Mermerci have run the Karadeniz restaurant for 11 years. The most expensive item on the menu is karisik kebab, or a mixed grill, for 4.7 million lira ($3.90). Most dishes are less, like the Turkish version of pizza, lahmacan, for 40 cents.

Survival, not profits

"Until now, we have never had a problem keeping up our payments, rent and our employees' salaries. Before we even made enough money that we were able to save a little," Selim Mermerci said. "But we haven't paid last month's bills, and this month's will be due soon. We are trying to survive to make our payments now, not profits."

The Mermerci brothers increased their prices 15 percent when the Value of the lira began to slip but have not raised them since because they already lost one-third of their client base. Further increases, they fear, would cost them more customers.

Their problems are compounded by investors in Germany lending them money in deutsche marks. The devaluation of the Turkish lira has doubled their debt. If the economic crisis is not solved soon, the Mermercis' business will close.

"If this fails, I do not see another business to go into. All businesses are having difficulties. I will sell everything and look for work," Selim Mermerci said. "My child, who now attends private school, will have to go to public school. I know that this is losing all that we have worked so hard for all these years, but that is what will have to be."

* The article was selected from the Internet Edition of the Chicago Tribune. To visit the site, point your browser to http://chicagotribune.com/.