US embassy cable - 05ANKARA6326

C O N F I D E N T I A L SECTION 01 OF 02 ANKARA 006326 
 
SIPDIS 
 
E.O. 12958: DECL: 10/20/2015 
TAGS: PGOV, PREL, PINS, ECON, EFIN, EAGR, 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 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 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)  Agriculture is also important for the local economy. 
 The town 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 Afyon is the 
center of Turkey's internationally-sanctioned poppy 
production for medical purposes.  The word, Afyon, in fact, 
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. perceived 
to be inadequate 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.  (Note:  Turkey's protection of its sugar beet 
growers results in Turkey having sugar prices far above world 
market prices.  End Note.) 
 
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, are able to find gainful employment upon 
their return to their hometown.  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: Turkey's strong economic growth and the 
stabilization of the economy since the 2001 crisis is 
impressive, however, what we found in Afyon is 
representative:  many ordinary Turks profess not to have felt 
these improvements.  We believe their complaints need to be 
taken with a grain of salt:  people tend not to go out of 
their way to praise economic policy-making when the principal 
benefits to most ordinary Turks are the end to wild swings of 
instability and a reduction of inflation.  Nevertheless, the 
perception of an absence of "trickle-down" is widespread, and 
the big beneficiaries of recent growth are concentrated among 
a relatively limited group of businesspeople, investors, and 
recently-hired employees.  Given the history of economic 
instability, Turkish youths prefer secure government jobs to 
entrepreneurialism.  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