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### Viewing cable 05ANKARA1908, TURKEY: THRIVING ECONOMY IN INDUSTRIAL TOWN

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
05ANKARA1908 | 2005-04-03 14:06 | 2011-08-24 01:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Ankara

`

    This record is a partial extract of the original cable. The full text of the original cable is not available.

    031406Z Apr 05

` `

    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.

    -----------------------
    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.

    ---------------------------
    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 ¬
    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

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