US embassy cable - 05ANKARA6302

C O N F I D E N T I A L SECTION 01 OF 02 ANKARA 006302 
 
SIPDIS 
 
E.O. 12958: DECL: 10/18/2015 
TAGS: PGOV, PREL, PINS, TU 
SUBJECT: AFYON:  PROSPERITY AND INEQUALITY IN AN ANATOLIAN 
TOWN 
 
 
Classified By: PolCouns Janice G. Weiner for reasons 1.4(b, d). 
 
1.  (C)  SUMMARY:  Afyon, a clean and prosperous town located 
three hours southwest of Ankara, is better off than many 
Turkish cities, yet visiting PolOffs heard complaints about 
the economy.  We met with a variety of citizens in Afyon, 
including businessmen, farmers, academics and government 
officials.  Although there is a lot of economic activity and 
opportunity in Afyon, PolOffs heard many complaints about 
economic inequality and insecurity.  END SUMMARY. 
 
2.  (U)  Afyon, officially Afyonkarahisar, located three 
hours southwest of Ankara, is on the crossroads from Ankara 
to several major cities, including Izmir, Antalya, and 
Kutahya.  Afyon is a relatively clean and prosperous town of 
150,000 people, dominated from above by a breathtaking 
fortress atop a craggy peak.  Below the central Anatolian 
community bubble thermal springs, which are one of the 
secrets to its economic success. 
 
SIPDIS 
 
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Afyon's Diversified Economy 
--------------------------- 
 
3.  (U)  Afyon is prosperous thanks to its strategic location 
and diversified economic base.  Afyon's marble is well-known, 
with dozens of small family-run marble cutting operations. 
Much of this marble is exported to Europe, the U.S. and 
elsewhere.  At least a half a dozen thermal spa hotels, which 
cater mostly to Turks, are operating or under construction in 
Afyon. 
 
4.  (U)  Afyon is also strong in agriculture.  The region is 
surrounded by potato and onion fields, owned by the locals 
but worked by migrant Roma, whose tent camps on the perimeter 
of the fields are clearly visible from the highway.  At one 
time Afyon was the country's number one egg and poultry 
producing province; this industry remains an important one. 
Animal husbandry and food processing are sizable enterprises 
and the region is famous for its sausage and clotted cream. 
Surprisingly, we heard nothing about opium production in 
Afyon, despite the fact that limited opium production for 
medical purposes is legal in the province whose name, in 
Turkish, means opium. 
 
5.  (C)  Despite Afyon's relative prosperity, local farmers 
complained to PolOffs about the governing Justice and 
Development Party's (AKP) agricultural policy (i.e. minimal 
subsidies and price supports) and economic conditions. 
According to the head of the farmers' association, "AKP's 
lightbulb is growing dim."  (Comment:  A radiating lightbulb 
is AKP's official party logo.  End Comment.)  Although highly 
supportive of the Afyon AKP mayor and the current Ag Minister 
Mehmet Mehdi Eker, the farmers were critical of PM Erdogan 
and the former Ag Minister Sami Guclu.  (Comment:  Minister 
Guclu was forced to resign earlier this year because he could 
not resolve a Turco-Russian agricultural trade dispute.  End 
Comment.)  Although they seemed resigned to the reality, the 
farmers also complained about the downturn in the sugar beet 
industry caused by the importation of cheap U.S. corn syrup. 
 
6.  (U)  Afyon's economy also benefits from the city's 
location at an important crossroads.  It is home to a company 
that owns the central Anatolian distributorships for both 
Proctor and Gamble and Philip Morris.  An outlet mall is 
under construction for Levi's and other western clothing 
companies.  In fact, the only McDonald's between Ankara and 
the coastal resort town of Antalya is located in Afyon. 
 
--------------------------------------------- -- 
Opportunity, Inequality and Insecurity in Afyon 
--------------------------------------------- -- 
 
7.  (C)  Although there is a lot of opportunity in Afyon, we 
heard many complaints about economic inequality.  We 
repeatedly heard from our contacts that young men and women 
who are raised in Afyon, but receive their university 
education elsewhere, do return to their hometown and find 
worthwhile employment.  We met young entrepreneurs who have 
successfully expanded and diversified their traditional 
family businesses; we also met wealthy tycoons who like to 
show off their expensive toys and hobbies and no doubt 
contribute to some of the social class resentment we heard in 
Afyon. 
 
8.  (C) Durmus Yoruk and Huseyin Sen, assistant economics 
professors at Afyon,s Kocatepe University,  generally give 
AKP high marks for its management of the Turkish economy, but 
complain about persistent problems related to instability and 
inequality.  They say most of the economic growth, including 
in Afyon, has benefited larger corporations, whereas small 
and medium-sized businesses have not seen any improvement. 
They lament that the income distribution in the city is not 
fair -- there are a few wealthy families, but the majority of 
the people are "just getting by."  The professors say that 
young women (and their parents) are looking for marriages to 
young men with job security.  These women prefer men who have 
secure government jobs to men with higher paying, but 
insecure private sector employment. 
 
9.  (C) COMMENT: Turkish boosters like to point to the 
positive macroeconomic numbers the country has put up over 
the past few years, but the reality is more complicated. 
Economic growth is generally limited to large corporations 
and most Turks are still hurting economically.  Turkish 
youths prefer secure government jobs to entrepreneurialism, 
and small and medium-sized businesses are mainly interested 
in holding on, not trying to find new ways to expand profits 
or market share.  Few Turks are willing to face the fact that 
many mom-and-pop operations and small farms (often less than 
20 acres in size) will have to grow, consolidate, or go out 
of business if the country is transitioning into a modern, 
21st century economy that can survive in the EU.  In the 
meantime, the responsible rich will grow richer, the 
irresponsible rich will play with their toys, and the average 
Turkish family will continue to get by while living in fear 
of another economic crisis.  END COMMENT. 
MCELDOWNEY