THE SECOND PHASE OF DERVIS BY MUSTAFA BALBAY (CUMHURIYET)
Prime Minister Bulent Ecevit called US President George W. Bush
yesterday to inform him of the economic program and its
regulations. During the phone call, Mr. Ecevit reportedly
emphasized that US support would also motivate the G-7 countries
to assist Turkey. The US President said the Administration is
following the developments in Turkey very closely and trying to
find the best way to help Turkey. Mr. Bush also underlined the
importance of the implementing the specified reforms in the
economic program soon. (Turkiye)
Foreign Minister Ismail Cem completed his visit to the Turkish
Republic of Northern Cyprus (TRNC) and held a joint press
conference with TRNC President Rauf Denktas yesterday. Stating
Turkey supported attempts to reach a permanent solution which can
be accepted by both nations on the island, Cem said, "Turkey
believes the best solution for Cyprus is to establish a
confederation. The Greek Cypriot Administration seems to rely on
its possible EU membership. However, the approval of their EU
membership would not be beneficial in the long term. They may see
positive yields in the short term, but it would bring more and
larger problems in the future." Replying to a question on the
reestablishment of S-300s on the island, Cem said, "It is totally
wrong to aggravate the disputes and create an unstable atmosphere
on the island. No one shall play with fire. The way to a
permanent solution on the island is clear. Nobody can reach a
solution by imposing what they want on the Turkish Cypriots."
Meanwhile, TRNC President Denktas said the EU was deceived by the
Greek Cypriots and added, "No attempt based on deception will
bring peace and stability." /Cumhuriyet/
Reportedly, Greece is trying to hide the issues with Turkey with
declarations on limiting her arms expenditure and decreasing the
number of soldiers. Greece is deploying 77% of her military power
against Turkey and spending $80 of every $100 on military
expenditure against Turkey. Turkish authorities said Turkey
deploys only 26% of her military power in the Aegean and Thrace,
and this difference casts a shadow on bilateral peace meetings.
/Turkiye/
State Minister Kemal Dervis is preparing to give information on
the late economic situation during the National Security Council
(MGK) meeting. Dervis will attend the meeting, to be chaired by
President Ahmet Necdet Sezer at the Cankaya Presidential Palace on
24 April. Detailed information on the National Economic Program
will be given in line with the precautions taken to overcome the
economic crisis during the MGK. This will be Dervis' first time
attending the MGK. Besides Dervis, economy aides will be also
present during the meeting. /Sabah/
A draft law to end the practice of printing money to reduce the
public deficit, was accepted at the Planning and Budget
Commission of the Turkish Grand National Assembly (TGNA). The law
would increase the authority of the Central Bank. According to
the bill, the Bank must now give information to the Plan and
Budget Commission twice a year. Dervis said, "We want to avoid
paying off deficits through the printing of money." The bill
defines the basic aim of the Central Bank as "ensuring the price
stability." /Hurriyet/
The IMF Turkey Desk Chief, Carlo Cottarelli postponed his return
date to the US. The IMF delegation has focused on funding for the
new economic program and preparation of a new letter of intent.
The delegation with participation of the new chief, Juha
Kahkonen, is holding meetings with economy bureaucrats. The IMF
will provide supplementary credit in addition to the
supplementary reserve facility(SRF) extended last year. This new
credit is expected to reach $6 billion. /Milliyet/
The Central Bank Governor, Sureyya Serdengecti, said stability of
the TL as a part of the monetary policy was achieved following
the economic crisis in February. Serdengecti said banks were
still not accustomed to the floating exchange rates but that
interest rates are at a satisfying level. Responding to questions
on the amount of foreign currency sold during the crisis,
Serdengecti said a total of $3.5 billion was sold the following
day and $5 billion in two days. He said foreign currency was sold
to those who brought in TL equal to the amount of currency.
/Milliyet/
Former US Ambassador to Turkey, Mark Parris, said the reform
package prepared by Kemal Dervis should be passed through the
Turkish Grand National Assembly (TGNA) and implemented soon. He
said, "Otherwise, Turkey may pay a high price compared to the
previous crises." Stressing foreign loans will help the Turkish
economy only in the short term, Mr. Parris said, "If the Turkish
government and the TGNA can establish trust in economic
institutions and ensure transparency, foreign finance
institutions and friendly countries will not refrain from
supporting Turkey." Additionally, Rahmi Koc, Chairman of the Koc
Holding Executive Board, said the Economic program is Turkey's
last chance. Stressing he supports both the program and Minister
Kemal Dervis, Koc said, "The government and TGNA members
understand the seriousness of the situation. I am not worried
about that. However, the program must not be interrupted."
/Turkiye/
Justice Minister Hikmet Sami Turk, Interior Minister Sadettin
Tantan and Deputy Prime Minister Husamettin Ozkan convened to
discuss the extradition of Cavit Caglar. Caglar was convicted of
corruption at Egebank and Etibank and arrested in the US two days
ago. Turk said the extradition request will be conveyed to US
authorities very soon. Turk said, "Turkey has a special agreement
for extradition of criminals with the US". /Milliyet/
As April 24 approaches, the day Armenians commemorate the alleged
genocide against their grandfathers during the Ottoman Empire,
the Culture Ministry has sped up efforts to launch campaigns
expressing Turkey's viewpoint on the subject. A group of
academicians will come together to tell the world the Turkish
side of events. The group was defined by Culture Minister
Istemihan Talay as a "task force." Coordination of the group's
activities would be carried out by eminent historian Professor
Ilber Ortayli. Speaking at a ceremony held to promote a CD,
prepared by the ministry and called "Armenian Question
-Allegations and Facts", Talay said scientists would attend
international conferences to defend Turkey's theses. The CD,
available in Turkish, French, English and German, will be
distributed to all Turkish diplomatic missions abroad. /Turkish
News/
While Armenians in Canada have been intensively lobbying for the
recognition of the so-called genocide, the Canadian government
has made it clear they oppose the bill. Officials at the Canadian
Embassy in Ankara said that the Canadian government refuses to
define the events in 1915 as "genocide". The government has
conveyed its view to Parliament, which is preparing to vote on
the issue April 25. /Turkish Daily News/
True Path Party (DYP) leader Tansu Ciller said yesterday that
President Ahmet Necdet Sezer also wanted the necessary amendments
to the Electoral and Political Parties Law to be passed
immediately. President Sezer received Ciller at the Presidential
Palace. Speaking to reporters after a 40-minute meeting with the
President, Ciller said certain amendments to these laws were
necessary in order to integrate voters with Parliament. The first
of these amendments must ensure that election campaign expenses
(of political parties) be inspected in accordance with European
Union norms. "I am pleased to see President Sezer, too, favors
the immediate passage of the necessary amendments to the
Electoral and Political Parties' laws. /Turkish News/
The G-13, composed of the Finance Ministers from candidate
countries applying for full EU membership, will convene April 21.
Finance Minister Sumer Oral will speak at the meeting on the
public deficits and the difficulties faced in calculating the
debts. Oral is expected to meet with the Finance Ministers of the
G-7 countries. /Milliyet/
The Treasury will audit and supervise the institutions' borrowing
money with a Treasury guarantee. The Treasury will demand data on
the revenues and expenditures of these institutions and control
the use of credit. /Milliyet/
President Ahmet Necdet Sezer approved the Law to abolish the
Sugar Monopoly. The bill abolishing the privileges of the
Pipelines Transportation Company(BOTAS) on natural gas imports
and distribution was adopted yesterday at the National
Assembly(TGNA). /Milliyet/
The Civil Aviation Draft Law, which created uneasiness between
the State Minister Yuksel Yalova and the Minister of
Communication, Enis Oksuz, was accepted by the Public Works
Commission of the Turkish Grand National Assembly (TGNA). The
draft law allows the airlines companies to determine the price
tariffs by themselves. According to the draft law accepted by the
TGNA, those with an air communication license, will be able to
freely fix their prices in accordance with the economic and
social conditions. However, they will have to announce to the
prices to the third parties. The flight tariffs determined by
license owners will be valid seven days after the approval of the
Ministry of Communication. /Hurriyet/
Minister of Tourism, Erkan Mumcu, said they expect to earn more
than $10 billion in tourism revenue this year. Stressing
approximately 12.5 million tourists may visit Turkey, Mr. Mumcu
said, "This year we expect a 22%-increase in the number of
tourists traveling to Turkey." Noting the current documented bed
capacity is 275,000, the Minister said, "Together with the hotels
under construction, the bed capacity rises to 400,000-420,000.
However, when compared with our rivals, the number should be at
least 1.2 million beds." /Turkiye/
Kuwaiti Former Minister of Oil, Suud Nasir Al-Sabah is expected
to arrive in Ankara today to deliver a written message from the
Emir of Kuwait to President Ahmet Necdet Sezer. According to a
statement released from the Kuwaiti Embassy in Ankara, Al-Sabah
will thank Ankara for its support of Kuwait against Iraq's
aggressive policies. Al-Sabah will come to Ankara as a special
envoy of the Kuwaiti Emir and will be received by President
Sezer. /Turkish Daily News/
A bill proposing amendments to the Turkish Armed Forces(TSK)
Personnel Law and the Turkish Republic Retirement Fund Law has
been submitted to Parliament. The bill would enable civilians who
meet specific requirements to become officers in the forces for
three years. According to the bill, men and women who have
completed four years of higher education and are under 27 years
of age can apply for a short service commission. Should these
people satisfy the conditions for becoming reservist officers,
they will be given regular commissions according to the needs of
the General Staff. /Turkish Daily News/
Kyrgyzstan will present the former Speaker of the Turkish Grand
National Assembly (TGNA), Hikmet Cetin, with a medal of "Dank"
(Fame). Cetin was deemed worthy of this award for his
contributions to the development of friendship and solidarity
between Turkey and Kyrgyzstan. /Sabah/
In the US House of Representatives a "Turkish-American Friendship
Group" was established by 17 representatives. For the first time,
a pro-Turkey group has been established in juxtaposition the
Armenian and Greek lobbies. The group was formed by the joint
initiatives of Democrat Congressman from Florida, Robert Wexler,
Republican Congressman from Kentucky, Ed Whitfield, and
Republican Congressman from Texas, Kay Granger. A joint statement
issued by the founding members said, "Turkey is an important
friend and ally of the US. We believe it is time to form a
friendship group in Congress regarding bilateral and regional
topics." /Turkiye/
Professor John Philip Jones, one of the most respected names in
the advertising sector, used Ataturk as an example in terms of
overcoming the economic crisis during a meeting titled 'Is it
worth it to advertise?'. During the meeting, organized by the
Advertisers Association, Advertisers Foundation and the
International Association of Advertisers, which brought
representatives of the sector together, Jones answered questions.
He said during an economic crisis, strategic plans should be
carried out, and Ataturk should be taken as an example. Jones
said, "There is no need to go any farther concerning the things
to be done in a crisis. Take Ataturk as an example. He
participated in the Canakkale Battle as a young officer and
succeeded in defeating the enemy, who was six times stronger.
While achieving this, he was pro-active, not reactive. Thus,
consider advertising as an investment and act according to your
strategic targets." /Hurriyet/
The Parliament Planning and Budget Commission has approved a bill
proposing the restructuring of the Unemployment Agency under the
name Turkish Labor Agency (ISKUR). Under the bill, people seeking
a job will apply to private employment bureaus. The bureaus will
only charge the employer, not the employee, when they match
workers to jobs. ISKUR will endeavor to lower the unemployment
rate and regulate unemployment pay. If the bill is passed by
Parliament, ISKUR will work to find employment for the
handicapped, former prisoners and those who need state care.
Special employment projects will be created, and rehabilitation
centers will be formed as a part of these efforts. /Turkish News/
The Real Estate Investment Partnership Journal(GYODER) and
Finance Journal held a panel titled "Turkey in the Eyes of
Foreign Investors", yesterday. During the panel discussion, the
head of Turkmall, Otto Nagel, said it is exactly the right time
to invest in Turkey. The group director of the Deutsche Bank Real
Estate Department, David Brush, said long-term indicators in
Turkey are conducive to investment. Brush said they have an
interest in Turkey's retail and housing sectors. /Milliyet/
Lufthansa German Airlines and Austrian Airlines have had a rather
successful year so far. Both companies expanded their Turkish
markets and sought to increase the number of passengers by making
renovations to their companies. During a joint press conference,
representatives of Lufthansa German Airlines and Austrian
Airlines explained their positions in the market, and said they
were rather pleased with ticket sales this year. Ofer Kisch,
Lufthansa's Turkey representative, said they had carried 47
million passengers in 2000. Noting that this (Winter 2001) was a
successful season for them in Turkey, Kisch said: "The number of
tourists boarding planes from Turkey increased 30.2 percent
between November 2000 to February 2001. The number of passengers
increased 26 percent during the same period and reached 72.8
percent of capacity." /Turkish News/
The Financial Times covered the opening of a new Ford plant in
Turkey. Stating the plant will provide Turkey with new employment
opportunities, the paper said the Turkish government was pleased
with the plant opening during the recession period. /Cumhuriyet/
The "Construction 2001 Istanbul" fair will be held May 2-6 with
500 local and foreign firms participating. Firms from Denmark,
Germany, Belgium, the US, Italy, Britain, etc. are expected to
join the fair held in Beylikduzu TUYAP Fair Center. /Turkiye/
MCM, (Motor Damage Early Warning System), developed by Arcelik's
technological company, Artesis, was listed as one of the best 40
products for the year 2000 by the American 'Control Engineering'
magazine. The magazine's editors chose the best products of the
year 2000 according to technological development criteria, its
impacts on the market and its service. The award winning products
were placed in nine categories. /Sabah/
Prof. Ilber Ortayli, an academician with Ankara University's
History Department, received the fifth Aydin Dogan Foundation
Award. /Milliyet/
Columnist Mustafa Balbay writes on the economic program prepared
by State Minister Responsible for Economy, Kemal Dervis and the
reactions of the TGNA members. A summary of his column is as
follows:
"It can be said the second stage for the economy has begun
following the program's announcement by the State Minister Kemal
Dervis. There have been many arguments, both pro and con,
regarding the appointment of Kemal Dervis as State Minister
Responsible for Economy. Disregarding all rumors, Dervis formed a
team among the bureaucrats and they began working on a program.
Dervis announced a program after 52 days and will be faced with
more difficulties during the second phase. It can be said the
second phase will continue by the end of this month. If an
agreement can be reached with the IMF until the end of April, and
more foreign support than previouly expected can be obtained, the
markets will be relieved and the third phase will begin.
Before passing into the third phase, we should not comment on
foreign support but analyse the present situation. Kemal Dervis
announced the program, and the Government instead of stating it
was the Coalition's program, only gave its support. The Council
of Ministers met after the program's announcement and made a
decision (not mentioned in the program) concerning the farmers.
It seems as if the Government will wait and see how things are
going; if the situation improves it will say the program belongs
to the Government, if not, it will simply place the blame on
Dervis.
Certainly, no one says agriculture should not be encouraged. On
the contrary, among developed countries all attach special
importance to agriculture. The EU countries support agriculture
even though they have an abundance of agricultural products.
However, the Agriculture Minister should have explained his views
to Mr.Dervis while the program was being prepared and sought a
solution. Two main comments have been expressed with the start of
the program's second stage. The first sees Dervis as successful
as Ozal and able to carry Turkey through its transition period
with great popular support. Dervis is also believed to have
warmed up to politics and is expected to be the new prime minister
following the firming up of foreign support. The second view sees
Dervis as an actor in a conspiracy that plans to sell Turkey to
the United States. This view says Dervis was sent to Turkey as a
spy. The reason for both views lies in the lack of
self-confidence of the people, and their tendency to not follow
world developments. Of course, the despair of the people and the
bottleneck in internal politics should also be mentioned.
Today, it is impossible to follow a closed economic policy and to
achieve economic development without taking the conditions of the
world into consideration. However, it is also not possible to
overcome this crisis only through foreign support. The solution
lies in producing new sources of energy from the local balances
in Turkey."
