13. August 2002

1. "Dervis tests Turkey's political waters", Turkey's former economy minister Kemal Dervis on Sunday met rivals of Prime Minister Bulent Ecevit in an apparent attempt to forge a political alliance ahead of general elections on 3 November.

2. "Turkey: Outgoing Dervis Expected To Join The Political Fray", Dervis is now expected to join the political fray ahead of the 3 November legislative elections. But this nonparty technocrat -- who stands behind a $16 billion IMF deal to rescue Turkey's ailing economy -- is keeping potential allies guessing about his next steps.

3. "Turkey eyes European Union in wave of reforms", amid Turkey’s ongoing political and economic turmoil parliament has adopted a series of reforms that could enhance civil liberties and potentially hasten integration into the European Union.

4. "Iraq to hand out more than four million school books to Iraqi Kurds", the Iraqi education ministry has started handing out more than four million school books to pupils from Kurdish provinces of northern Iraq outside Baghdad's control, a newspaper said Tuesday.

5. "Bahceli to discuss Ocalan with Ecevit and Yilmaz", Nationalist Action Party (MHP) leader Devlet Bahceli has reportedly called on his government coalition partners to meet with him to discuss the situation of Abdullah Ocalan.

6. "A Unity lacking bases", former State Minister Kemal Dervis’s continuing quest for a broad-based political alliance


Dear reader,

due to the holiday time our "Flash Bulletin" will not be forwarded to email addresses from August 1, 2002 until August 25, 2002. It can be viewed, however, right here in the internet at www.flash-bulletin.de as usual.

the staff


1. - BBC - "Dervis tests Turkey's political waters":

August 12, 2002

Turkey's former economy minister Kemal Dervis on Sunday met rivals of Prime Minister Bulent Ecevit in an apparent attempt to forge a political alliance ahead of general elections on 3 November.
The move comes just a day after Mr Dervis, who was charged with leading Turkey out of its worst economic crisis in modern times, resigned from his post.
In his first statement since stepping down, Mr Dervis promised to work with ex-Foreign Minister Ismail Cem and his New Turkey Party (YTP), a centre-left movement he has implied he may join.
At a time when a pro-Islamic party tops opinion polls, Mr Dervis said he would work to build a new secular coalition that reflected modern social liberal principles.
"We are continuing to act together," Mr Dervis said after meeting Mr Cem in Istanbul. "We have to think strategically and work very seriously."
He has also stressed the importance of political stability as the United States considers military action against neighbouring Iraq.

Political blow

Mr Dervis' resignation was yet another serious blow to Mr Ecevit, who has been battling to hold his government together.
Mr Dervis' guidance was crucial in securing a $16bn loan backed by the International Monetary Fund, as Turkey struggles to recover from its worst recession since World War II.
Turkey's economic problems have been compounded by the unstable political situation.
Mr Ecevit has named Masum Turker, a deputy from his own Democratic Left Party, as the new economy minister.
Mr Turker quickly stressed that he is committed to push ahead with economic reforms which are required to retain support from the International Monetary Fund.
"It will be our single-option economic policy.
"Moves that could damage confidence or any other different practices will not be allowed," he said.
Mr Dervis' resignation had been widely expected and therefore it did not have much impact on Turkey's unstable financial markets when trading resumed on Monday.
The IMKB index of leading Turkish shares was down 1.3% in early trading.
We're not expecting any panic," analyst Ismail Erdem of Finansbank said.
The departure of Mr. Dervis was expected and the [economic recovery] program does not depend on one person."

New leader?

Mr Ecevit reportedly told Mr Dervis on Friday that he should make up his mind whether he wanted to remain in his post or continue with his initiative to unite Turkey's fractured centre-left.
In recent weeks Mr Dervis - a former World Bank official - has been holding behind-the-scenes talks with rivals of the prime minister.
Mr Dervis has resigned once already, amid a political crisis in July during which more than 60 legislators quit Mr Ecevit's party, triggering a sharp fall in the value of Turkey's currency.
But hours later, he withdrew his resignation - after reportedly being persuaded to stay on by President Ahmet Necdet Sezer.

Elections called

Last week, the prime minister was forced to call elections for 3 November - 18 months ahead of schedule - to break the political deadlock which has virtually paralysed his government.
Mr Dervis has made no secret of his support for Mr Cem and the New Turkey Party.
The two men, popular pro-Western figures, have been dubbed Turkey's "Dream Team".


2. - Radio Free Europe - "Turkey: Outgoing Dervis Expected To Join The Political Fray":

August 12, 2002 / by Jean-Christophe Peuch

After weeks of uncertainty and rumors over his deteriorating relations with Turkish Prime Minister Bulent Ecevit, Economy Minister Kemal Dervis resigned over the weekend, vowing to work toward uniting Turkey's fragmented center-left parties. Dervis is now expected to join the political fray ahead of the 3 November legislative elections. But this nonparty technocrat -- who stands behind a $16 billion IMF deal to rescue Turkey's ailing economy -- is keeping potential allies guessing about his next steps.

Ending weeks of speculation over his future in Prime Minister Bulent Ecevit's crumbling coalition cabinet, Turkish State Minister and Economy Minister Kemal Dervis handed in his resignation on 10 August, vowing to work toward ending his country's endemic political fragmentation.

A former World Bank director, the 53-year-old Dervis had returned to his native country in March 2001 to take over the reins of the economy, with broad powers in banking and market regulation.

Ecevit appointed a little-known lawmaker from his Democratic Left Party, or DSP, to replace the outgoing minister. A former accountant, 51-year-old Masum Turker, will face the uneasy task of overseeing efforts to rescue Turkey from its worst economic crisis since 1945.

Yet, market analysts believe the new economy minister will have limited influence, if any, over ongoing reforms aimed at reversing an 18-month-old recession with the help of $16 billion in loans from the International Monetary Fund, or IMF.

All the more so because Turkey, which last month plunged into political turmoil amid rumors about Ecevit's health, is heading toward early legislative polls that, barring unexpected developments, should take place on 3 November. Turker is unlikely to survive politically beyond that date.

Dervis resigned less than 24 hours after Ecevit summoned him to his office to urge him either to stop canvassing rival political parties or to relinquish his portfolio.

Addressing reporters on 10 August, Dervis said "uneasy" talks he held the day before with the head of government prompted him to action. "[Ecevit] told me that it would not be right for me to continue serving in the government while pursuing political activities. Given the situation and having assessed [the prime minister's] opinion, I am resigning from the government," Dervis said.

Dervis's decision ended weeks of latent confrontation with the embattled Ecevit, whose DSP last month dropped to fourth position in parliament after a series of defections that left it with only 65 seats, down from a precrisis 128.

It was the second time Dervis had attempted to leave the cabinet in recent weeks.

Ecevit had first accepted his minister's resignation on 11 July but had to recant his decision upon President Ahmet Necdet Sezer's request.

The prime minister had long expressed his annoyance at Dervis's flirting with prominent DSP defectors, such as former Foreign Minister Ismail Cem and former State Minister Husamettin Ozkan.

Cem and Ozkan, who both resigned from the government last month, have since laid the foundations of a new political party known as New Turkey (Yeni Turkiye), or YTP, which they pledge will accelerate economic reforms and Turkey's progress toward accession to the European Union.

Political analysts believe the popular Dervis will be a valuable asset to the new group and boost its electorate ahead of the 3 November elections.

YTP Chairman Cem has repeatedly said that he would like to join forces with the man generally described as the main architect behind the IMF-backed economic rescue program. But Dervis is keeping Turkey in suspense about his plans.

The outgoing minister, who yesterday met with Cem and Ozkan, has so far refused to say whether he will formally join the YTP, although he has made it clear he wants to work together with the new formation.

With 61 seats, Cem's party is currently the fifth-largest in parliament and is one of the few groups that will compete for votes on the left ahead of the November poll. In a bid to widen his electoral platform, Cem last week announced plans to work together with the Democratic Turkey Party, or DTP, a small center-right group headed by former diplomat Mehmet Ali Bayar.

A total of 23 parties are expected to take part in the election, including the pro-Islamic Justice and Progress Party of former Istanbul Mayor Recep Tayyip Erdogan, a longtime favorite of opinion polls.

Dervis, who says his heart is "on the center-left," pledged on 10 August "not to enter politics for the sake of politics," but rather to take part "in a political debate and movement that could generate economic solutions" for Turkey.

"I will work for the creation of an alternative, an alternative that can be created from the existing alternatives and that would reflect and assimilate a modern, social, and liberal understanding that could truly come to power on its own in Turkey," Dervis said.

Dervis did not mention any specific party he could join or support in the run-up to the poll during the press conference he held to announce his resignation.

The conservative "Hurriyet" newspaper today quoted him as asking YTP leaders Cem and Ozkan for "two more days" before he decides whether to join forces with them.

Also today, another mainstream Turkish daily, "Milliyet," quoted Dervis -- who has repeatedly stressed that he does not consider himself a politician -- as saying that he needs to remain outside political parties "for a while."

Reflecting the increasing pressure put on the former economy minister, DTP leader Bayar today said that everybody is waiting for Dervis's next step. "The decision Dervis will make is important for Turkey," Anadolu news agency quoted Bayar as saying.

Meanwhile, Turkey's traditionally volatile markets reacted calmly to Dervis's move, losing a mere 1.3 percent by midday today. Financial experts do not expect any panic following the weekend resignation.

Anticipating Dervis's decision, analysts have long said they do not see the economic-recovery program as depending on the former World Banker alone.

International lenders were also long accustomed to the idea that Dervis would quit. Witness the decision made on 8 August by the IMF to approve a new $1.1 billion installment loan to help Turkey -- the fund's largest debtor, after Brazil -- overcome its economic crisis.

Newly appointed Economy Minister Turker pledged yesterday to pursue efforts to implement IMF-backed reform programs and said Ankara's relations with the fund will remain unchanged. He also ruled out any populist spending ahead of the November poll. "We are determined to continue implementing the [IMF-backed] program without a single concession [on our part]. For us, this will be the only possible political option. We will not tolerate any move that could erode confidence [that this program] will be implemented or that could lead to a different implementation. Especially with the election approaching, we will not put into practice any kind of electoral economy," Turker said.

Turkey's lawmakers cut short their summer recess last month to decide on a date for early elections and to adopt a string of reforms needed to pave the way for membership talks with the EU. They held another emergency session on 8 August to vote on an extra budget worth some $93 million to help cover the cost of the early poll. Most of this sum will be distributed among political parties vying for seats in the next legislature, while the remaining money will go to the electoral commission.

In a bid to reassure investors and voters, Ecevit said on 11 August that he expects his new economy minister to concentrate his efforts on boosting domestic production and ensuring that income is distributed fairly among Turkey's 68 million citizens.

But with less that three months before the poll, which political analysts predict could turn into an electoral rout for most of Turkey's traditional parties, it could be too late for the veteran 77-year-old leader.


3. - Eurasianet - "Turkey eyes European Union in wave of reforms":

August 13, 2002 / by Mevlut Katik

Amid Turkey’s ongoing political and economic turmoil, which includes the recent resignation of Economics Minister Kemal Dervis, parliament has adopted a series of reforms that could enhance civil liberties and potentially hasten integration into the European Union. Some local analysts have portrayed the legislation as one of the three major reformist efforts in Turkish history since the founding of the Ottoman Empire.

The EU has insisted on several changes in Turkey’s legal framework, including more humanitarian support to Kurds and the abolition of the death penalty, before it will consider Ankara’s accession possibilities. Given the protracted Turkish government crisis this summer, many Turkish observers doubted that parliament could meet the EU’s demands. However, Parliament and the MPs met on August 5, and in a 17-hour session, approved a package known as the EU Adaptation Laws.

The vote reflected the divisions that define Turkish politics – 253 MPs voted for it while 152 from the Nationalist party and the pro-Islamic AKP, which leads in the polls currently, voted against it. But it did not fall victim to those divisions. Turkish politicians hope that the EU will announce that it is formally prepared to hold accession talks with Turkey, when European leaders convene at a December summit in Copenhagen.

The laws directly address European misgivings about Turkish policy. They allow teaching and broadcasting in Kurdish, and they outlaw the death penalty. Predictably, these measures spurred protests by relatives of Turkish soldiers who have died fighting the Kurdistan Workers’ Party, an extremist group known as the PKK. The leader of the PKK, Abdullah Ocalan, has received a death sentence, though Turkey has kept a moratorium on capital punishment since 1984. A day after parliament passed the EU adaptation package, demonstrators blocked the main bridge over the Bosphorus. On August 9, language-institute owner Nazif Ulgen applied to run the country’s first Kurdish language courses in three big cities.

In addition, parliament eased restrictions on public demonstrations, lifted penalties for criticizing state institutions, articulated new freedoms for the media, made it easier for international organizations to work in the country, and allowed non-Muslim religious organizations to buy property. The package also outlined tougher measures against illegal immigration and altered the duties of police.

So far, reaction to the reform measures in European capitals has been restrained. While EU officials in Brussels welcomed the parliament’s action, they indicated that Turkey’s accession aspirations would depend more on how the legislation was implemented. Turkey, which received candidate status in 1999, is one of 13 states aspiring to EU membership.

Despite the adoption of the legislation, Turkey’s EU integration hopes are clouded by questions concerning the government, which has been hampered by the fractious nature of Turkish politics. New parliamentary elections are scheduled for November 3. Given that Turkish law requires a political party gain at least 10 percent of the vote to secure parliamentary seats, the political campaign season is already in full swing.

Dervis announced his long-expected resignation August 10, saying that he sought to forge and lead a broad-based alliance of center-left parties to win a sound majority in the parliament after the elections.

At the time of his resignation, Dervis, who was a former director of the World Bank, had served as Turkey’s chief shepherd of an International Monetary Fund loan agreement since March 2001. Prime Minister Bulent Ecevit named a back-bench MP and political ally, Masum Turker, as Dervis’ replacement.

Although many expect Dervis will join the New Turkey Party (YTP) formed by Ismail Cem, the former foreign minister, he could upset these expectations. He said on August 10 that he would continue to work together with Cem. However, Dervis wants to establish a broad campaign coalition. Among his chief aims is to woo the People’s Republican Party (CHP), which is not keen to cooperate with the YTP. A senior CHP official accused Dervis of "designing politics from above."

Center-left parties in Turkey have a long history of infighting that has perhaps alienated voters. Dervis is striving to raise the appeal of the political center in Turkish politics through coalition building. On August 11, for example, he met with Mehmet Ali Bayar, leader of a center-right party called the Democratic Turkey Party. The two pledged that they would "seek ways to act together before and after the elections."

Such spirit of cooperation on the political level may prevail as Turkey seeks EU membership. But there is a risk that the EU adaptation laws could heighten social tension and raise concerns about the state’s cohesion. Kurds now free to learn Kurdish, for instance, may find themselves marginalized and question their national allegiances. More important, though, the Turkish majority may also come to realize that enhanced freedoms do not divide the country. If it can produce a coherent and energetic government to enact its laws, Turkey may extend European democracy closer to Central Asia, restoring a tradition of tolerance that dates back to Ottoman times. That achievement would dwarf any person’s, or any party’s, short-term fortunes.


4. - AFP - "Iraq to hand out more than four million school books to Iraqi Kurds":

BAGHDAD / August 13, 2002

The Iraqi education ministry has started handing out more than four million school books to pupils from Kurdish provinces of northern Iraq outside Baghdad's control, a newspaper said Tuesday.
Education Minister Fahd Salem al-Shaqra told the Al-Rafidain weekly that the 4.25 million text books were being distributed to pupils from the provinces of Arbil, Sulaymaniyah and Dahuk in preparation for the 2002-2003 school year in accordance with instructions from President Saddam Hussein.
The books include Kurdish-language publications and Arabic-language literature and grammar texts, as well as an "Arabic-Kurdish dictionary printed for the first time," Shaqra said.
Most of northern Iraq has been outside Baghdad's control since a Kurdish uprising following the 1991 Gulf War.
But like the rest of Iraq, it receives essential goods under a UN-supervised exemption from sweeping economic sanctions imposed on Baghdad following its 1990 invasion of Kuwait.


5. - Anadolu - "Bahceli to discuss Ocalan with Ecevit and Yilmaz":

ANKARA / August 13, 2002

Nationalist Action Party (MHP) leader Devlet Bahceli has reportedly called on his government coalition partners, Prime Minister and Democratic Left Party (DSP) leader Bulent Ecevit and Motherland Party (ANAP) leader Mesut Yilmaz, to meet with him to discuss the situation of terrorist organization PKK head Abdullah Ocalan. Sources say that Bahceli will, rather uncharacteristically, suggest that Ocalan be interred in an F-type prison rather than continue to be housed in isolation as the sole inmate on Imrali Island. During the debates over death penalty abolition, Bahceli had continually argued that Ocalan deserved execution for his crimes. Nevertheless, if Ecevit and Yilmaz reject Bahceli’s F-type prison proposal, he will reportedly try to use this issue against them in campaigns for elections this fall.


6. - Cumhuriyet - "A Unity lacking bases":

Former State Minister Kemal Dervis’s continuing quest for a broad-based political alliance

August 13, 2002 / by Cuneyt Arcayurek

We are experiencing a syndrome, the ‘Dervis syndrome,’ so much so that it has become almost impossible to discuss or write about the elections and political parties. Dervis has resigned from his state minister post and prospects of his joining to the New Turkey (YT) have turned into a riddle. Husamettin Ozkan a former deputy prime minister and one of the YT’s top figures, reportedly warned Dervis when last they spoke that his hesitating to join the YT was doing it harm. Dervis is certainly aware of this, but he also wants to continue his search for an alliance on the center left. His quest for a broad-based political framework has taken many ambiguous forms. His last miraculous proposal is to unite the parties on the center left and to not let a single vote be wasted. Leaving aside his hesitation about joining the YT, he even gives the impression that he is looking for another party to become its member. Dervis’s only rationale for this is an analysis projecting that the half of the parties on both the center left and right won’t be able to reach the election threshold, thus multiplying the number of seats in Parliament held by the Justice and Development Party (AKP). In contrast, YT Chairman Ismail Cem along with Husamettin Ozkan hold exactly the opposite view. They think that the YT, without any doubt, will meet the 10% threshold and achieve even better than that. It seems that the Cem–Ozkan duo has been unable to persuade Dervis. His willingness to unite the center left under a single umbrella lacks, however, some very basic elements. First of all, no one has yet laid down the criteria around which this unity is going to be carried out. Without such a totality of basic aims and targets, this sincere wish of Dervis is doomed to stay a mere fiction. Let’s imagine that the Democratic Left Party (DSP), the YT, the Republican People’s Party (CHP) and the Democratic Turkey Party (DTP) prove successful in getting together and entering the elections. Will this alliance be able to form a coherent, harmonious government against the AKP? Moreover, what will be this government’s basic criteria and targets in economic and social policy? Hardly anyone knows the answers to these questions, not even Dervis himself. Let’s be realistic. The DSP has being declaring for quite a long time that it would not take part in such an alliance anyway. The CHP is pessimistic about Dervis. What is left? The YT and the DTP. What if these two unite? Nothing will come from this except for an empty and an imaginary world.