US embassy cable - 05ANKARA1908

UNCLAS SECTION 01 OF 03 ANKARA 001908 
 
SIPDIS 
 
SENSITIVE 
 
TREASURY FOR PLANTIER 
 
E.O. 12958: N/A 
TAGS: ECON, EFIN, PGOV, SOCI, TU 
SUBJECT: TURKEY: THRIVING ECONOMY IN INDUSTRIAL TOWN 
 
REF: ANKARA 1330 
 
1. (U) Summary.  A visit to a thriving industrial town near 
Ankara showed the spreading positive impact of Turkey's 
economic recovery on ordinary citizens.  It also showed what 
seemed to be a newfound commitment on the part of elected 
politicians and businessmen to practicing entrepreneurship 
and self-reliance rather than looking for government 
handouts.  Although the town may not be representative of 
life in largely agricultural Anatolia, its success 
demonstrates that at least some of the economic recovery is 
"trickling down."  End Summary. 
 
2. (U) Embassy officers recently visited Akyurt, a booming 
industrial town 32 kilometers from Ankara's city limits. 
Close to the airport and fortunate to have been allocated an 
organized industrial zone some 20 years ago, it accounts for 
approximately one third of Ankara province's total industry 
and boasts numerous large factories.  Approaching the center 
of town, one passes several large factories including 
confectionery goods giant Ulker, the Kavaklidere Winery, and 
the MAN bus factory.  Inside the town, near the 
Sub-Governor,s (Kaymakam's) office, there is a bustling 
market where residents and out-of-towners sell fresh 
vegetables and fruit, clothes, and household goods.  The 
majority of the customers are women, clothed in head scarves 
and long skirts.  The rest of the town appeared to be clean 
and well-kept with several construction sites for two-story 
houses complete with gardens--part of the Mayor,s urban 
development plans. 
 
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Thriving Local Economy 
----------------------- 
 
3. (U) The main draws to the city, according to Akyurt,s 
Sub-Governor, Huseyin Basol Gulec, are its close proximity to 
Ankara's international airport (3-4 kilometers away), its 
proximity to Ankara,s city center, and the fact that it has 
an organized industrial zone which has the necessary 
infrastructure for industrial development.  Akyurt,s 
sub-province is home to about 230 factories, some of which 
are large international companies.  The main products 
produced in Akyurt,s factories are textiles, buses, food, 
and furniture. 
 
4. (U) The Sub-Governor painted a picture of a thriving local 
economy, emphasizing that local industrial output has been 
increasing since the 2001 crisis.  He believes that the 
economy is even much better off than it was before the 
crisis.  The Sub-Governor as well as the Mayor, Gultekin 
Ayantas, were also very proud of the fact that industry in 
Akyurt is environmentally friendly, both by coincidence (the 
industry located there is relatively clean) and design (the 
town does not approve the establishment of plants with 
industrial pollution). 
 
5. (U) Akyurt is one of the sub-provinces in Ankara,s 
Metropolitan Municipality which suffers the least from 
unemployment.  Factories employ about 20,000 to 25,000 
citizens and in the next couple of years, local officials 
believe it will be Ankara,s fastest developing sub-province. 
 The Sub-Governor said that by 2025, the population of Akyurt 
will reach upwards of 400,000 and the city has initiated 
infrastructure investments accordingly.  The population 
increase would not come from natural increase, but rather 
will come from an influx of poor people from Anatolian towns 
seeking employment.  With the expected growth comes a need 
for increased educational facilities.  The sub-province thus 
plans to open a new school every 3 years and has already 
allocated the land for them. 
 
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Urban Development Projects 
--------------------------- 
 
6. (SBU) Akyurt Mayor, Gultekin Ayantas, belongs to the 
ruling AK Party.  He was elected by 72% of the voters--the 
highest percentage of votes won by a mayor in any mayoral 
election held in the sub-provinces in recent years.  The 
Mayor told officers that he has been trying to make up for 
the lack of infrastructure development under the leadership 
of his predecessor, who was mayor for 20 years.  He has 
completed or initiated a sewage project, education projects, 
parks and recreation areas, and a covered market.  He is also 
sponsoring an anti-smoking campaign.  The Mayor would like to 
make Akyurt &attractive8 for residents of Ankara,s 
crowded, dirty city center.  He says the municipality has 
already signed an agreement with the Metropolitan 
Municipality to introduce natural gas.  He predicts a 20% 
increase in population when gas becomes available. 
7. (U) According to the 2000 census, Akyurt,s official 
population is 18,907.  However, the Mayor believes there are 
actually 30,000 people living in Akyurt and during the day, 
the population increases to 45,000 because of the 
out-of-towners working in Akyurt,s factories.  Despite the 
increase, the central government only allots enough resources 
for the official census population count.  Nevertheless, the 
Mayor seems to be making do with what the sub-province is 
allotted in government resources and is attempting to both 
beautify the city and encourage development and modernization. 
--------------------- 
Teach A Turk To Fish 
--------------------- 
 
8. (SBU) Mayor Ayantas, who has an education and 
civil-engineering background, criticized Turks for &not 
obeying the rules8 and he believes the country will be able 
to develop more effectively once Turkish citizens start 
"obeying the rules.8  He was very critical of &gecekondus8 
or village-like shanty towns of small makeshift houses in 
which internal migrants live mainly as the result of a 
shortage of affordable housing.  He said that Turks are 
turning &big towns into villages8 with the construction of 
poor, dilapidated "gecekondus."  He also said that Turkish 
citizens have been misguided over the years as &Turkey gave 
its citizens fish, rather than teaching them how to fish.8 
 
9. (U) One area where the town seems to be dedicated to the 
Mayor,s idea of &teaching Turks to fish8 is at Akyurt,s 
Public Education Center.  According to the director of the 
center, Mr. Ali Isik, the literacy rate in Akyurt is 98.7%. 
The goal is to have 100% literacy in the sub-province.  The 
school has approximately 296 students and offers English 
instruction, computer, vocational, and literacy courses.  In 
recent years, the more popular courses have been the courses 
in computers and English language instruction.  The center 
seems to be very successful with 99% of the students enrolled 
finishing their courses. 
 
-------------------------------- 
Union Heads Not As Enthusiastic 
-------------------------------- 
 
10. (U) The head of the local drivers association, Ahmet 
Magden, was less positive than the Sub-Governor and Mayor 
about the economic situation of the association's 550 
members.  He claimed that drivers (truck, bus, and taxi) are 
actually worse off now than 5 years ago because of higher 
taxes, fees, and traffic fines. He did admit however, that 
there are less accidents today because of tougher enforcement 
of traffic laws and that compulsory car insurance is popular. 
 
11. (U) The chairman of the Industrialists and Businessmen's 
Association (AKSIAD), Mr. Irfan Giray, also does not believe 
the economy (local and overall) is doing better than it was 
five years ago before the economic crisis.  He strongly 
believes that Turkey must strictly follow IMF structural 
guidelines in order to stabilize the economy.  Though he 
admitted that previous governments were guilty of not 
prioritizing spending, and bribery and corruption, he 
believes that the current government is trying to implement 
IMF measures.   Like the Mayor, Giray, says that Turks need 
to learn how to &obey the rules.8 
 
12. (U) With regards to local business, Giray told Embassy 
officers that the main challenges to industry in Akyurt are a 
lack of sufficient infrastructure to support growth*mainly 
in the form of water supply and purification, electricity, 
natural gas, and high-tech communications.  Of the 150 
industries in Akyurt, 45 of them are members of AKSIAD. 
AKSIAD was established 2 years ago to resolve the 
infrastructure problems facing the industrial zone.  Though 
their collective efforts may affect Akyurt proper as well, 
they are mainly focused on the infrastructure needs of the 
association members. 
 
13. (U) Embassy officers met with Giray at the MAN bus 
factory where he serves as Director of Corporate Affairs and 
General Administration.  The factory is primarily owned by 
the German multinational MAN and it employs 2,500 workers. 
The company made a 320 million Euro turnover in 2004 and is 
doing well.  The factory produces both for the domestic 
market and for exports. 
 
14. (SBU) Comment:  Akyurt is one of Ankara,s more 
economically fortunate sub-provinces, its thriving industry 
reflecting the current boom in manufacturing.  Other 
Anatolian towns which rely on agriculture as their main 
source of economic activity have seen less direct benefit 
from the improving economy.  Akyurt's industrial capacity is 
promising and it appears to have local government officials 
and businessmen who are committed to development and 
modernization and who have a refreshing attitude towards 
&obeying the rules.8  In a country historically fraught 
with civil and government corruption and bribery, with 
citizens who rarely abide by local traffic laws or civic 
regulations, leaders in the Akyurt sub-province seem to, at 
least, want to change the status quo.  Since he came into 
office one year ago, the Mayor says he has not allowed a 
single building to be constructed without permission, thus 
stemming the continuation of &gecekondus8 and the idea of 
&turning big towns into villages.8  Moreover, the AKSIAD 
chairman,s strong support of IMF measures is impressive in a 
country in which the IMF is widely misunderstood and resented 
by Turks other than economists and corporate executives.  End 
Comment. 
EDELMAN