Mithat Melen

The skin of our teeth

20 Mart 2009
Even parliamentarians cannot follow the bills which are passed through Parliament. Even if you know the bills you have to take special courses for understanding the language used in the texts. Even if you start understanding them you are not able to make out for which subjects they can be applicable. People who write these bills don’t seem to care if people understand them or not. And these people are known to be experts in their fields.

When a bill is debated in Parliament usually the person taking the floor tries to explain the meaning of it to the parliamentarians. The most popular issue these days is the problem of Turkish identitiy numbers on ID cards. According to Turkish legislation if an ID card holder doesn’t have his or hers ID number on the document he or she will not be able to vote in the 29 March municipal elections.

Actually the legislation was adopted in Parliament years ago but it is apparent that either citizens weren’t interested in it or it was not properly disseminated within the community. To put the problem in a nutshell, 4 million Turks don’t have ID numbers on their ID cards. We all know that Turks leave everything until the last moment. In other words we do nothing until it comes to the skin of our teeth. 

To pay our taxes we wait until the final day. We don't start studying until the last day before examinations start. We admit this reality but I don’t accept that we are slow at doing everything. First of all the Grand National assembly should always be one step ahead of the public and all developments.

In other words Parliament should be prepared beforehand and have the ability to calculate the future. It shouldn’t wait for things to happen to bring a solution to them. The solution should be there if something in the future does happen.

To do this Parliament should be under close scrutiny and daily life should be followed attentively. There is another aspect to the problem. To say ,"What can we do? This is the law," cannot be an excuse. 

It is our perfect right as citizens to go to the polls and vote. But even this cannot be done easily in Turkey. On one hand we form the law to enable 4 million people to use their right to vote and on the other hand to restrain these people from voting we try to manipulate the Constitution. Two weeks before the elections, and still ambiguity prevails under hailstorms of words.

I have never seen an election in Turkey which was not hotly debated ,was not branded as controversial, was not called manipulated. Maybe we like fighting over every issue. Even in the 21st century don’t we know how to solve a problem concerning citizens’ voting?

At the last minute nobody can accuse the other of negligence. During these final two weeks before elections people are crowding in census offices trying to get their ID numbers. We have to solve this problem as soon as we can. If we need to change the legislation let’s do it quickly and enter the election day taking a deep, comfortable breath.

Otherwise, if you say, "This is the law and I will apply it," you will be able to solve nothing. On the contrary you will bring upon yourself more problems which will immiediately emerge just after the elections. Nobody should be sursprised if the election results are canceled solely because of this problem. If we don’t want this to happen let’s act quickly and do something.
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Catching fish

13 Mart 2009
Heiner Flassbeck, the former finance minister of the government of Social Democrat Chancellor Gerhard Schröder, is now the director of the Institute for Globalization and Strategies for Development of UNCTAD (United Nations Development and Trade Conference Organization) . In an interview with the Belgian newspaper Le Soir, he said that the United Nations should pay more attention to the global economic crisis. "The state has to intervene in the economic and financial sectors," he added referring to the Nobel economic laureate Joseph Stiglitz’s ideas.

"Europe will have to increase its already existing policy of protectionism. Several European countries are increasing their capacity of competition to the detriment of others. Especially Germany in the Euro zone is increasing this tip of balance. Following Germany’s lead other European countries started to protect their own markets. "If this protectionism continues The World Trade Organization(WTO) will have a very hard time in lifting obstacles," the former German minister said. The rest of his analysis is as follows: On the other hand the IMF seems to have become ineffective in solving international monetary problems. The world’s major problem today seems to be a lack of strong institutions that have the capacity to think as a packet all trade, financial and monetary problems and find solutions to them.

To create more productivity all salaries should be handled again. If salaries are brought down countries will be able to increase their capacity of competitiveness by resorting to devaluations. Competition should not be among governments but among companies. The 1994 Bretton Woods’ is of a more Keynesian structure. Countries cannot continuously have foreign trade gaps. If countries compete with each other they won’t be able to pay back their debts.

Protectionism has started to turn into economic wars. Due to this situation the world economy has become mismanaged. As an example, if a country cannot protect its economy it starts protecting its national interests. States can only intervene in cases to draw out the necessary rules and have them correctly applied. For this the international monetary system has to have stability. The markets are unable to help us understand the economic systems. The important point is that governments should take the lead to understand the problems and the states should take the upper hand in the matter. Today all international markets which are unstable should be reformed through state intervention.

Starting with raw materials, no speculative manipulations should be made on the prices of products and services. To do this from north to south and from east to west everybody should start negotiating. It is clear that world politicians stil don’t understand the importance of the global crisis. That’s why it will be very difficult for the G-20 Group to find solutions to the problem. There are 192 countries in the world and their main issue is to balance their economies.

Instead of adopting protectionist policies, politicians prefer to act together, increasing interest rates is backfiring. The stabilizing of interest rates and money rates and taking control of the banks will be the main lesson to be taken from this crisis. Solutions should be found in the neo-liberal structure otherwise it is widely believed that the system will crash completely. It is clear that Flassbeck has no high hopes about the future. The ones who are administering the American economy and President Obama are aware that they have reached nowhere with the measures they have taken. I would like to draw your attention to the difference between providing fish and teaching how to catch fish. Today the United States continues with her policiy of providing fish. But when the all the fish is eaten and nothing has been left, what will happen? It is obvious that the existing economic theories are unable to solve the global economic crisis. New theories, new institutions and new structures are direly needed. Maybe Heiner Flassbeck’s idea to find solutions through joint meetings among 192 nations could be taken seriously. But it will not be easy. The solutions should be produced by locomotives who are dragging behing them the world economy. For our part, we have to choose our own place, remain straight and continue on our way.
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Political Reactivation

6 Mart 2009
The European Union will host several international meetings in April. First and most important of all, newly elected U.S. President Obama will attend the NATO summit in the Alsace-Lorraine region, which is organized jointly by France and Germany. The summit will take place both in Strasbourg and the German city Kleve. NATO, with its growing membership of 26, will for the first time in recent years discuss new strategies and new concepts during the summit. And another first will be that Obama for the first time will come together with his NATO allies. In April again the G-20 summit will be held. This time London will host the meeting in which new economic and financial structures will be discussed. The new Secretary of State Hillary Clinton will go to Brussels for the NATO foreign ministers meeting.

The entire world is suffering from the continuing global crisis and the difficulties felt by the real sector. The entire world including the U.S tries to find solutions to the problems, stock markets are crashing, companies are going bankrupt. The world is entering an era where real leadership is needed. If these serious problems cannot be solved they will be followed by serious social unrests and political tensions.

NATO is celebrating its 60th birthday this year. For years NATO’s role was being discussed as controversial around the world but admittedly it has played its part quite adequately. Now with the changing world all international organizations have started to question their positions. With this new world order top of the international agenda is to structure new economic and foreign policies.

On the other hand a wind blowing from Europe toward Turkey tried to have us accept that the EU’s problem was its capacity of digestion and enlargement weary, as if such problems don’t exist for NATO and its new members. NATO continues its enlargement and is happy and comfortable with it. What’s more, Croatia, Lithuania and other new European states have focused on NATO and the EU as their strategic targets.

When the Transatlantic alliance and the EU will enlarge toward the Caucasus the questions will be, how will this affect relations between Russia and NATO, Russia and Europe and of course Turkey? Although in a limited capacity France returned to the NATO fold in 1996 and is continuously negotiating. France’s recent decision was to join again NATO’s military wing but continue its nuclear program outside the Transatlantic alliance. Rumors say that France is negotiating with the United States for a NATO command. Portuguese

NATO today has other issues on its agenda, including combating terror, cyber wars, energy security and pirates. One of NATO’s major problems is Afghanistan. The U.S and NATO say a new structure is needed in the region, leaving aside the idea of classic military force. This may mean sending a gendarmerie-like force of 17,000 troops to the region, which will include military units from Turkey, Italy, France, Spain and Canada. But to do this all NATO members, including Turkey, have to be satisfied.

Everybody knows that the U.S will withdraw 100,000 troops from Iraq in 18 months replacing them with well-trained forces. The major problem is that these 100,000 forces will not be able to be deployed in Afghanistan as U.S. legislation is banning such a move. NATO foreign ministers engaged in their meeting have skipped an important development that occurred near them. Almost all European leaders are admitting that the economic and financial situation is glum.

2009 will be a difficult year for the entire world. If Turkey will not be able to go through this year without any major hitches the situation will not be bright for the country. Europe is entering a period of economic stagnation while Turkey doesn’t take any measures. All over the world there is a major political reactivation going on. On the part of Turkey, meanwhile, everything has been focused on the upcoming municipal elections. I sincerely hope that after the elections everything will not be too late for Turkey.
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Surf and turf

27 Şubat 2009
The shipbuilding sector in Turkey is one of the most important ones, having high value added. It is a real sector, which employs a total of 150,000 people, supporting all side industries and brings into the country a large amount of foreign currency My country is surrounded by seas on three sides. Turkey’s coastal strip is 8,400 kilometers, whereas her land borders are 2,700 kilometers long. But Turkey is unable to benefit from the economic opportunities the sea would bring it. Even in Istanbul the lack of sea traffic is appalling.

Maritime countries around the world know how to benefit from their seas. Maritime transportation is the most important one in the world. Looking back at history you will realize that the Ottoman Empire’s downfall came with her loss of her naval power. In actual fact the birth of the state has been through the establishment of maritime trade.

For centuries ship building has been one of the most important sectors in the world. After naval forces dominated the world for centuries, countries started moving to land. Let’s not forget that the American continents were found during a round-the-world maritime expedition.

The shipbuilding sector in Turkey is one of the most important ones, having high value added. It is a real sector, which employs a total of 150,000 people, supporting all side industries and brings into the country a large amount of foreign currency. Ship building is considered the locomotive sector by almost all countries in the world. Where one person works at the ship-building sector six others are employed in the side industries.

Shipbuilding has its own risks. Although security measures have been taken, mortal accidents occur in this sector. The rate of mortality is 10 per 10,000 in Far Eastern countries whereas it is 2 to 3 per 10,000 in EU countries. Unfortunately in Turkey this rate is 3 per 10,000.

Although the number of orders to Turkish shipyards by the beginning of 2007 was 200 this dropped to seven by 2008. By the second half of 2008, 98 orders were postponed and 160 were cancelled. Today the total weight of the orders has dropped from 6.3 million dead weight tonnage to below 2.5 million. By the end of 2008 the number of the layouts in shipyards has reached to 20,000 persons.

Especially in shipyards in Tuzla, Istanbul, the number of workers who died in accidents has hurt us deeply. But now the sector is on the brink of collapsing as it has been hit by the global economic crisis. It is of vital importance for Turkey that the necessary measures have to be taken to save the sector.

There is another danger we will have to face in addition to the order postponements and cancellations. Led by Greece, EU countries want to buy all unfinished ships and add them to their fleets for very low prices. The approximate age of Turkish ships is around 23 years.

If one day EU countries decide that no ships older than 10 years will enter into their ports then a maritime transportation monopoly will be created and the prices will be set up according to their decisions.

Germany, is opening credits of 20 billion euros to its ship building sector through its public bank named KFW. China, through the Eximbank is giving credits of $10 billion to shipyards in the Zhgiang and Jiangs regions.

We have to save and support our shipyards as soon as possible through the necessary measures that have to be taken. If we do it until it’s too late then the sector will be finished.
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Putting in one sack

21 Şubat 2009
The government is putting every law in Turkey in one sack under a new bill titled, "Preventing the Escalation of the Jobless Rate." In Turkish, putting in one sack also means to cancel or update previous laws. When the new Sack Bill is adopted in Parliament, 29 laws that are in motion in the country will be changed. But using a complex procedure the law, which is aimed at improving the present economic situation, becomes more incoherent than ever. With the new bill, lands belonging to the Treasury will be leased for 49 years, the revenue problem of the Agricultural Products Department, or TMO, will be solved, but it completely upsets the loaning system.

There are not only negative but positive aspects of the bill. As an example, taxes will be cut from investments.

Especially investors investing in eastern and southeastern Anatolia, increasing employment and creating new jobs will be a benefit from the bill.

But the negative aspect is, as I wrote above, that neither of the laws included in the Sack are related to each other and the renewals and amendments are not easily understood if you are not the law maker or the legal expert. In technical terms, nobody can grab the importance of the bill to the economy and, in macro terms, to Turkey.

The bill will deal with the paperwork of the bureaucracy and will ease the hand of the government versus the bureaucracy. But, the problem is that even I cannot understand what is meant in the text. To put it in a nutshell, a perplexing atmosphere regarding the bill has been created.

Why do we make these laws? What is the duty of the Parliament? Its duty is not only making and passing bills. On the contrary, it has to move ahead of current events in order to try to solve Turkey’s problems, and update present bills in order to support the law and order of the Turkish State.

We are passing through a period in which the impacts of the global economic crisis are being felt more deeply in Turkey.

We were aware that even if there was not such a global crisis Turkey would eventually be dragged into deep economic difficulties as no necessary changes in the infrastructure and no required economic reforms were made, despite all of our warnings. Turkey was very comfortable until the recent past benefiting from credits showered upon it.

Even New York newspaper peddlers were aware that when one day those credits would be cut off, Turkey would enter into a very difficult economic position. Today if we say we have overcome this crisis, or, this crisis hasn’t touched us, it means we are distorting the truth for local economic consumption until the end of the upcoming municipal elections.

It is clear that days before or just after the municipal elections the government will have to take very strict economic measures. For the time being the government is negotiating with the IMF and tries to have the negotiations drag as long as it can. It is also clear that the government is trying to save the day with the present bill it wants be passed from Parliament. Because the bill doesn’t introduce any new reforms or makes clear what should be done to combat the impacts of the global crisis.

It has to be clearly understood that a new economic and political structure is being set up in the world. As an emerging market Turkey has to adapt itself to this new structure and adjust its economy to world markets, which will regain their stability in 2010 and 2011.

The most important aspect of the bill that drew my attention is that a legislation, which changes a total of 29 present bills and will affect at least seven ministries, has been designated only to the Social Security Ministry. 2009 will be a very difficult year for Turkey. Even gaining the municipal elections will not be enough to overcome these difficulties. If you don’t stab a knife in the economic wound, the economy will stab its knife into your body. We have experienced this several times in Turkey.

All of us are very disturbed and concerned about a deep economic crisis, which will hit Turkey very hard. If we don’t want to live an economic nightmare then let’s all together find a way of getting out of this situation without using any issue for our own political consumption.
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Find your own solution

13 Şubat 2009
Maybe we did a first in the history of the United States. The best eye-opener about the impact of the economic crisis was the servile attitude of shopkeepers who once looked down their noses at us. They were even willing to bargain. When we went inside this shop, which is close to Times Square, one snowy New York evening Imam, the Bangladeshi guy, cut off $30 from the price of a suitcase I bought. Another eye opener is President Obama giving priority to the solution of economic problems and have the $800 billion stabilization pact pass from Congress. In Britain the presidents of the banks, which were saved by state intervention, apologized from their shareholders and the people in their testimony at the House of Commons.

Here in Turkey everybody is giving alarm signals to the government. Recently the TİSK (Employers Union) Advisory Council, addressing the government stated that the economic crisis was mismanaged and an atmosphere of security could not be created. "Priority should be given to measures to save the economy," they said. "The real economy had problems even before the global economic crisis hit us. But as local and foreign markets shrank with the impact of the crisis we were dragged in a very bad situation from which we don’t know how to get out. Today the economy is in recession. The government’s priorities have always been the upcoming municipal elections and the developments abroad. Their approach to us was like, find your own solutions, you are at your own peril, " the statement continued.

For the year 2008 the current accounts gap has been announced as $41.416 billion. This shows a 8.4 per cent increase than 2007.

Prime Minister Tayip Erdoğan in his speech at Justice and Development Party, or AKP’s parliamentary group meeting reacted to those who are pessimistic about the near future. "Regardless of what they say Turkey is moving forward. You always weep and weep. Hey, why can’t you just say, ’Even during this crisis we have reached these numbers.’ Because you are not willing to see the reality. We brought down the amount of the debt to the IMF from $23.5 billion to only $8 billion. Why don’t we speak about these issues? Before us 21 banks declared bankruptcy. After we became government we were careful enough to tie our donkey to a very sturdy cane and no banks went down.

"This era is not an era when the person in Çankaya was sitting comfortably and only the government was working. Now both of us are working full speed. There is no lack of measures. Turkey will easily overcome these difficult situations. During this process we have delivered a very successful performance. With the reforms we put underway we managed to minimize the impact of the economic crisis over Turkey. We are passing through a crisis, which can be seen once in a century. Of course a certain percentage drop will occur in our exports. I had said we will overcome this situation with the least loss and everybody made fun of me. And don’t worry. About the point we reached in the negotiations with the International Monetary Fund, or IMF, we will decide on what is the most ideal one," were his words at the group meeting. Just as I gave you an example from the United States I want to further my observations on what is happening in that country. The Americans at least admit that there is a serious economic crisis in the country and they have to take dire global measures to overcome it. In Britain bank presidents accept that they have mismanaged the situation and apologize from the people.

Before the economic crisis started here in Turkey the markets were in a very bad situation. Led by the automotive, construction and textile industries several companies were declaring bankruptcy and laying off their workers. Even in those days we were warning the government saying that solutions should be found to the economical infrastructure problem and without taking these measures the Turkish economy would not be able to survive. To top it now we are hit by this global crisis. As usual today we don’t take any concrete measures but feign to do so and try to find a way to pass through this difficult situation until the local elections. Adding to it we believe in speaking the language of the streets so that the ordinary man would understand it. But nobody is giving credit to this policy any more. The brand of unreliability has been put on.

More than the IMF and the European Union Turkey actually needs a government that will give a sense of security to the markets. If you tell the truth and admit your mistakes people will be willing to help you. But if you lose your credibility nobody will try and help you any more. "Let’s solve this problem all together under the roof of the Grand National Assembly. None of us should use these problems for local political consumption," we asked during these recent six months. But you preferred to choose a language of the streets, which nobody understands in the international arena, and even to yourself doesn’t sound sincere. Most probably the prime minister and government members are aware that almost all governments in Turkey lost their seats during economic crises. You may win again in the upcoming elections and you even may seem very successful to yourselves. But what will happen after the elections? The economies of the United States and EU countries will enter into recovery periods after 2010 and 2011. We, on the other hand have to adopt the necessary reforms in this crucial year we have entered and be able to catch the positive international developments lying ahead.
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The upper state

6 Şubat 2009
The term "the upper state" is popularly used in the United States. It defines the socio-geographical setting of the north of the country. In actuality the capital city of the state of New York is not its namesake against all beliefs, but Albany, which is a lovely town surrounded by greenery and only 400 kilometers from New York City. When last week I was visiting friends in this lovely town, I couldn’t understand why they were complaining about. In that unbelievably vast pastures I realized a considerable size of industry was underway. The Coopers Town Lake was frozen. People were crossing to the other side walking. "This is nothing, last week it was minus 20 degrees Celsius they told me.

In this region winter sports are popular in almost all places. People here are using snow mobiles for every daily need in their lives. I have to admit that these snow mobiles are one of the deepest joys of my life.

Actually we Turks have always perceived the United States as an industrial nation, where as it is an agrarian based country. I’m sure the cheapest milk around the world is sold in the United States. Also a nature preserving nation is producing a productive policy and protecting the environment.

As for as I can see the global financial crisis has not yet touched the Americans. Although you may feel a slowing down in the economic pace, the cost you have to pay both ways by train Washington-New York is $221 per person. As soon as you hop on the Amtrak, you notice almost all the passengers are well-dressed, courteous, hard working. They drop their luggage on the head-set, sit and immediately switch on their notebooks. I watched the lady sitting next to me for more than three hours. Her fingers never ceased running over the keyboard. If my Internet wouldn’t break down I would do the same.

Why am I writing all this? Because the American nation is workaholic. And I really envy them. I gave lectures for two days running first at the New York Dowling University and then the Columbia Universities for two days running. The audience was very interested.

The focus issues of the questions directed at me in both universities were the state of the Turkish economy, whatever was happening in Iran, Iraq, Syria and the rest of the region etc... and the Ergenekon case, in Turkey, and Davos.

I have to state that the problem the Turks have to deal with is transparency. The Grand National Assembly should take national steps to solve the problem.

One option seems to be to set up a party modeled through the National Endowment for Democracy, or NED, in the United States.

Everybody should debate every issue, be it a Turkish, Kurdish, American or a Greek one with the other in peaceful terms. In the coming months, not only will the so-called Armenian genocide issue will come to the Turkish forefront there are unbelievably issues and problems which will create headaches for Turkey.

The Turkish Grand National Assembly needs a body which will be a carrier voice for it to the outside world. To do it you have to establish a new structure. I’m in Washington DC. I gave a lecture at the Georgetown University and attended conferences in prominent educational institutions. My conclusion of these conferences I drew was that, we have to be present here and talk everybody and we’ll see afterward.
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Press adviser

30 Ocak 2009
It had been five years since I had last visited Çorum. I couldn’t resist my friend Selim Bilge’s insisting invitations and had a wonderful 12 hours in this Central Anatolian town. Actually Çorum recorded an unbelievable pace of development these last five years. At the conference hall of the recently built Anitta Hotel, I addressed an audience of business people, merchants and politicians for two hours. I always say that a new flame is growing in Anatolia. Even in this atmosphere of economic crisis the flame of producing in Çorum is brightly glowing. All members of the audience were very interested in international developments and were eager to listen to whatever was going to happen in the United States with the new Obama administration. Another major topic we discussed was the relations with the European Union.

Turkish officials tend to ignore a vital issue which is when Ankara sneezes Anatolia is catching a bad flu. People think nobody is affected from whatever is happening in Turkey. On the contrary, people are deeply affected and they suffer. Adnan Bey who is a successful architect and former member of parliament asked me the following question: "When are we going to see a time when persons who have selflessly served Turkey will not be punished?"

You cannot differentiate the Anitta hotel from other luxury hotels around the world. The service is impeccable, the rooms large and very well furnished. You can have all amenities here you can ask in a five-star hotel. The hotel’s guest service manager Gönül Hanım is an efficient businessperson. In one hour all 70 of us in the group were perfectly served a delicious meal even though no prior reservations were made. I had to congratulate Gönül Hanım and her team for their achievement. I don’t know any European hotels which can serve 70 people at dinner without having made any reservations.

It is good to see that the Anatolian press is always surviving no matter what kind of crisis they face. When I visited the Manşet newspaper I saw my human-size poster pasted on the walls of the office. It was a very pleasant surprise that Çorum journalists had made such a deep study about my curriculum vitae. The editor-in-chief, Lokman Bey, and reporter Murat were making predictions about my future political career. I decided to appoint one of them my private assistant and the other my press adviser one day.

The inhabitants of Çorum are openly adapting to the life of the 21st century. Even the stores selling leblebi were very much modernized. Most probably 250 kilometers to Ankara this city was very much affected by the cultural legacy of Hattusas, the ancient capital of the Hitites. Unfortunately this time I couldn’t visit the famous Hitite relics. Years ago after I had visited those relics with dear Hasan Yılmaer I’d written an article which made me famous. Hasan Ağabey had told everybody at that time that my article was a scoop. At the time the guide who was taking us around those ancient relics had caught an interesting inscription on a 4,000 year old tablet. The inscription was about a message sent to the capital city saying, "What happened to the two oxen?" Afterward I had written the article saying, "I discovered the document of a Hitite bribe." Who said there cannot be the document of a bribe. Even thousands of years ago there were such documents revealing even then government officials were taking bribes or kickbacks. You can comment on this as you like. I promise you within the next five years I will visit Çorum again.
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