• Email
  • Single Page
  • Print

Turkey Goes Out of Control

bellaigue_1-040314.jpg
Bulent Kilic/AFP/Getty Images
Protesters with placards of Turkish Prime Minister Recep Tayyip Erdoğan and the US-based Turkish cleric Fethullah Gülen during a demonstration against corruption, Istanbul, December 25, 2013. The text on the placards says ‘We will cast them down!’
Two pilots who are flying an airplane together start punching each other in the cockpit. One ejects those members of the crew whom he believes to be close to his rival; the other screams that his copilot isn’t a pilot at all, but a thief. At that moment, the plane spins out of control and swiftly loses height, while the passengers look on in panic.

These are lines from a recent newspaper column by Can Dündar, a Turkish journalist, and I can think of no clearer aid to understanding the perverse, avoidable, almost cartoonish confrontation that has engulfed Turkey since last December, and that threatens to undo the political and economic gains of the past decade.

The parties to the confrontation are the prime minister, sixty-year-old Recep Tayyip Erdoğan, and a Turkish divine, Fethullah Gülen, thirteen years his senior. Erdoğan leads the ruling Justice and Development Party (AKP), and works in the political hurly-burly of Ankara, the country’s capital. Gülen is Turkey’s best-known preacher and moral didact. He lives in seclusion in Pennsylvania, reportedly in poor health (he has heart trouble). Gülen presides loosely but unmistakably over an empire of schools, businesses, and networks of sympathizers.

It is this empire that Erdoğan now depicts as a “parallel state” to the one he was elected to run, and he has undertaken to eliminate it. The feud began in earnest last December and has had a remarkably destructive effect. Many of Gülen’s followers work within the government and have had much power. Now large parts of the civil service have been eviscerated, much of the media has been reduced to unthinking carriers of politically motivated revelation and innuendo, and the economy has slowed down after a decade of strong growth. The Turkish miracle is over.

Erdoğan’s AKP government and the Gülen movement share a modernizing Islamist ideology, and although relations between them have been deteriorating for some time, before the current crisis it was possible to be affiliated with both. Coexistence ended abruptly on December 17, when more than fifty pro-AKP figures, including the head of Halkbank, a state-owned bank, a construction magnate, and the sons of three cabinet ministers, were taken in for questioning by prosecutors who are regarded as Gülen’s men.

The raids were allegedly carried out by Gülenist policemen and they were given much attention by newspapers and TV stations with a similar pro-Gülen bent. Allegations that the well-connected detainees were guilty of bribery, smuggling, and other crooked activities were tweeted and retweeted in a frenzy of condemnation; the Gülenist assault from within the government as well as outside it had been well planned. Incriminating evidence was indeed uncovered, including some $4.5 million kept in shoeboxes in the home of the Halkbank chief executive, along with indications of payments to ministers. It soon emerged that a second phase of the same investigation would touch the prime minister’s son.

The speed and vigor of Erdoğan’s reaction to these events indicate that he regarded them as a precursor to his own destruction. He immediately began clearing out compromised or potentially traitorous members of his entourage, and within a few days had replaced half his cabinet, including those members whose sons had been taken into custody. The purge has spread to far points of the civil service. As part of Erdoğan’s campaign against the influence of Gülen, thousands of policemen have been moved from their posts, as well as senior prosecutors involved in the corruption case, and bureaucrats associated with the departed ministers have also been shuffled or dismissed.

Earlier in February the government began investigating Gülenist police officers on suspicion of “forming an illegal organization within the state.” Erdoğan stopped the judicial investigations and instead took direct action. Two months shy of municipal elections, and six months away from a presidential election he hopes to contest, he survives. But the political tradition he represents, a synthesis of Islamism and the free market, is hurt, the prime minister has been badly damaged, and there will be more damage to come.

Before the Erdoğan–Gülen confrontation started to show itself, in early 2013, and certainly before last summer’s nationwide protests, when Turkish liberals took to the streets against their authoritarian prime minister, Turkey’s modernizing Islamist current enjoyed much goodwill. Erdoğan personified it. He came to power in 2003, after a decades-long struggle by Islamists against the oppressive tactics of the country’s long-entrenched secular institutions, notably the army and judiciary. Within a few years of becoming prime minister, Erdoğan seemed to be rectifying many of the country’s problems. Exploiting the strong majority enjoyed by the AKP in parliament, he stabilized and liberalized the erratic, semi-planned economy, making Turks richer than they had ever been, and introduced numerous liberal reforms (such as ending torture and giving increased rights to the Kurds). Perhaps most important of all, he brought under control of the elected civil authorities the armed forces, which had overthrown no fewer than four elected governments since 1960.

All along, the AKP was in an unofficial coalition with less visible Islamists, and their most powerful coalition partner was the movement of Fethullah Gülen. His schools turned out well-behaved, patriotic, pious Turks, and the government welcomed them into the bureaucratic and business elites that gradually displaced the old secular guard. Erdoğan and Gülen seemed to embody the longing of many Turks for an Islam in harmony with electoral democracy, entrepreneurship, and consumerism. And the Islamic element in the formula was supposed to guarantee high standards of ethics and behavior. For years, public life had been venal, loutish, and appetite-driven; the Islamists promised to do things differently.

But the Islamists, too, do not lack for appetites. Shortly after the initial detentions by Gülen’s police allies in December, a video purporting to show a senior AKP figure in flagrante delicto was posted on the Internet. (Abdurrahman Dilipak, a leading pro-government columnist, claimed there were forty more such “doctored” tapes in existence.) Recorded phone conversations involving Gülen have also been leaked and heard by millions. In one he is deciding which Turkish firm should receive a contract offered by a foreign government. In another, he and a lieutenant discuss the likelihood that three “friends” (i.e., followers) in senior positions at Turkey’s banking regulatory body will protect a Gülen-affiliated bank, Bank Asya, from government investigation. (Shortly after the leak, the three officials in question lost their jobs.) All this seemed a long way from the image of a frugal sage ailing gently in the hills of Pennsylvania that Gülen has cultivated.

The tone of the conflict is unrestrained, and is being set from the top. Erdoğan refuses to utter Gülen’s name in public, but when he talks of “false prophets, seers, and hollow pseudo-sages,” his target is clear. In one of the frequent sermons that Gülen delivers from his home, reaching big audiences in Turkey by means of supportive television stations and the Internet, the exiled preacher recently placed a malediction on his enemies, beseeching God to “consume their homes with fire, destroy their nests, break their accords.” Allegations of extensive government corruption, many of them involving rigged contracts for construction projects and the violation of zoning laws, have been repeated by the Gülenist media often enough for many of them to stick. On February 24, recordings of telephone conversations between the prime minister and his son, Bilal, in which the two plan the hiding of tens of millions of euros, were posted on YouTube. The prime minister has called the recordings fabricated, but the posting in question was viewed some two million times in the twenty-four hours after it was uploaded. Even if Erdoğan’s purges of the judiciary and the police mean that there will not be successful prosecutions (and Turkey’s parliamentary immunity will protect some of Erdoğan’s allies), it is hard to imagine the government regaining its former reputation for probity.

The terrain of the dispute is as much commercial as political. The government has accused the Gülen-affiliated Bank Asya of buying $2 billion in foreign currency shortly before December’s police operations, the implication being that bank officials had been tipped off and anticipated the ensuing fall of the Turkish lira. The bank is now struggling to contain a run on deposits that saw its share price fall by 46 percent between December 16 and February 5. Even non-Gülenist financial experts believe that the government has orchestrated the withdrawals in an attempt to ruin Bank Asya, heedless of the collateral damage, both to small depositors and the banking system as a whole, that this would cause. Turkish capitalism is only tenuously governed by the rule of law.

Erdoğan’s image is suffering. Last summer’s protests disclosed to the public a prime minister ruled by rage and fear, as he reacted to the dissatisfaction of a largely secular minority not with magnanimous gestures, which would have satisfied many of the protesters, but with baton charges, tear gas, and denunciations of a plot by outside powers, sustained by a sinister “interest rate lobby,” to deny Turkey its rightful place in the sun. By “interest rate lobby” Erdoğan means unscrupulous Western speculators—Jews, by implication—and his remarks speak to older memories, among them of Turkey’s indebtedness to European bankers in Ottoman times, which weakened the empire before its collapse in World War I. But he is also evoking the grim 1990s, when an inflationary, debt-ridden, and unproductive economy was the plaything of investors who took profits when the markets were up and reentered after the inevitable crash—benefiting from real interest rates that averaged 32 percent.

These traumas have informed Erdoğan’s approach to the monetary aspects of the crisis. Even before December 17, a combination of the Federal Reserve’s tapering of bond purchases, the threat of rising global interest rates, evidence that the Turkish economy was cooling, and political jitters caused by last summer’s protests had reduced the value of the lira by 9 percent. The decline accelerated after the December arrests, but the prime minister only endorsed a hike in interest rates after the value of the currency had fallen by a further 13 percent, and Turkish companies, with their heavy exposure to short-term, dollar-denominated debt, were struggling to meet financial obligations. Finally, on January 28, the Central Bank raised rates and the lira’s fall was arrested.

Erdoğan’s ideological resistance to raising rates has cost Turkish companies dearly. In the words of Inan Demir, an economist at Finansbank, in Istanbul:

There was no choice but to hike, or there would have been full-scale panic, but it should have been done earlier. Now Turkish companies have the worst of all worlds, with continuing difficulties in meeting redemptions, due to the weak lira, and higher financing costs because of the rate hike.

In the space of just four months, Finansbank has revised its growth forecast for 2014 from 3.7 percent to 1.7 percent—after a decade of growth averaging more than 5 percent.

For all its troubles, Turkey’s economy is still big, its citizens 43 percent better off than they were when Erdoğan came to power. This more successful country is the subject of The Rise of Turkey: The Twenty-First Century’s First Muslim Power, a new book by Soner Cagaptay, a Turkey expert at the Washington Institute for Near East Policy. One sympathizes with Cagaptay, who finished his book long before the present crisis, but even then his tone might have struck one as triumphal—a reminder of the tendency of many observers, captivated by the spectacle of Turkey shedding the complexes of the past, to downplay the perils of the future. Cagaptay dwells at length on the political and economic advances of the Erdoğan years, but he does not go into the tensions within Turkish Islamism, which are likely to define the country’s politics for some time, or the corruption that underlies the country’s capitalist successes.

The Rise of Turkey is also quiet about the Gülen movement—except for its part in organizing a glittering international conference, attended by Cagaptay, on Turkey’s “leadership role in the Arab Spring.” Such a conference would be unthinkable now, for Erdoğan’s Muslim Brotherhood allies have been bundled out of power in Egypt and his Syrian policy, predicated on a swift overthrow of Bashar al-Assad, is in disarray. Cagaptay is far from the only academic to have accepted hospitality from the Gülen movement, and his description of it as “prestigious” cannot be contested. But there is more to Fethullah Gülen than prestige.

  • Email
  • Single Page
  • Print