[OPE] US Crisis: Capitalists Win, Workers Lose

From: Doğan Göçmen (dogangoecmen@aol.com)
Date: Tue Jul 08 2008 - 13:19:43 EDT

US Crisis: Capitalists Win, Workers Lose

Turkey has been one of the countries worst
affected by the current financial crisis in the USA. Economists Ercan
and Tören predict the success of capitalists and a weakening of labour

Bıa news centre - İstanbul



    Ayca Örer



"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

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

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) 


Doğan Göçmen
Author of The Adam Smith Problem:
Reconciling Human Nature and Society in
The Theory of Moral Sentiments and Wealth of Nations,
I. B. Tauris, London&New York 2007


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