{"id":107463,"date":"2014-05-05T06:54:53","date_gmt":"2014-05-05T03:54:53","guid":{"rendered":"http:\/\/www.turkishnews.com\/en\/content\/?p=107463"},"modified":"2023-04-02T16:15:04","modified_gmt":"2023-04-02T13:15:04","slug":"following-the-turkish-corruption-trail-from-central-asia-to-the-balkans","status":"publish","type":"post","link":"https:\/\/www.turkishnews.com\/en\/content\/2014\/05\/05\/following-the-turkish-corruption-trail-from-central-asia-to-the-balkans\/","title":{"rendered":"FOLLOWING THE TURKISH CORRUPTION TRAiL, FROM CENTRAL ASIA TO THE BALKANS"},"content":{"rendered":"<p>&nbsp;<\/p>\n<p>BY\u00a0LILY LYNCH\u00a0\u00a0MAGAZINE\u00a0MARCH 31, 2014<\/p>\n<p><a href=\"https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image010.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-107465\" src=\"https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image010.jpg\" alt=\"image010\" width=\"300\" height=\"205\" srcset=\"https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image010.jpg 553w, https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image010-300x205.jpg 300w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p><strong>The Turkish Prime Minister\u2019s son-in-law is the CEO of a company that has enjoyed a cozy relationship with eccentric dictators in Central Asia and some of the most powerful leaders in the Balkans.\u00a0<\/strong><\/p>\n<p>The wedding of Esra Erdogan and Berat Albayrak was designed to showcase Turkey as the \u201cbridge between the West and the Islamic world\u201d. Though the hijab was still banned in public institutions, and scorned by Istanbul\u2019s secular elite, the bride wore a white headscarf draped in translucent jewels. About 7,000 guests flew in from various points around the globe to attend the extravagant event, which was held inside the same Istanbul convention center where the heavily protested 2004 NATO summit had taken place just a few days earlier.<\/p>\n<p>Security surrounding the high-profile nuptials was kept deliberately tight, with some 5,000 police officers dispatched to patrol the streets, and snipers assigned to rooftop positions across the city. Safety measures alone\u00a0reportedly cost\u00a050 billion Turkish lira.<\/p>\n<p>The ceremony\u2019s four official witnesses were all foreign dignitaries: King Abdullah II of Jordan, former Pakistani President General Pervez Musharraf, and the prime ministers of Greece and Romania.<\/p>\n<p>Silvio Berlusconi was unable to attend, but sent his regrets along with a Versace vase.<\/p>\n<p><a href=\"https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image002.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-107466\" src=\"https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image002.jpg\" alt=\"image002\" width=\"300\" height=\"210\" srcset=\"https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image002.jpg 620w, https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image002-300x210.jpg 300w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p><em>Esra Erdogan marries Berat Albayrak, soon-to-be CEO of Calik Holdings, in July 2004.<\/em><\/p>\n<p>The choice to include two Muslims and two Orthodox Christians in the marital rites was a deliberate one. Prime Minister Recep Tayyip Erdogan had only been in office for about four months at the time, and was eager to use his daughter\u2019s vows to remind the world about Turkey\u2019s historical prominence in the region. Of course, this was when Erdogan was eager to join the EU, and still cared about his standing with the \u201cinternational community\u201d. He even arranged to have a film crew from CNN Turk broadcast the entire wedding on live television.<\/p>\n<p>Ahmet Calik, one of the richest men in Turkey, stood beside Erdogan for the duration of the ceremony.<\/p>\n<p>The baby-faced groom was Berat Albayrak, a recent graduate of New York\u2019s Pace University and the son of a conservative journalist who had been a close friend of Erdogan\u2019s since 1980. Though Berat was just 23 years old when he married the prime minister\u2019s eldest daughter, he was fast-tracked to a prestigious position with Ahmet Calik\u2019s powerful Turkish conglomerate Calik Holding, which has extensive investments in the Balkans and Central Asia. Within a few years, he was its CEO.<\/p>\n<p><a href=\"https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image003.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-107467\" src=\"https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image003.jpg\" alt=\"image003\" width=\"300\" height=\"168\" srcset=\"https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image003.jpg 585w, https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image003-300x169.jpg 300w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p><em>Calik and Erdogan.<\/em><\/p>\n<p><strong>\u201cWe will wipe out Twitter,\u201d Erdogan promised<\/strong>\u00a0at a recent campaign rally in the industrial city of Bursa. \u201cI don\u2019t care what the international community says. They will see the Turkish republic\u2019s strength.\u201d<\/p>\n<p>The Twitter blackout was reportedly a response to rumors that audio recordings linking Erdogan to alleged corruption had surfaced on the site. It was the latest episode in a sordid corruption scandal that has dominated Turkey since dawn broke on December 17.<\/p>\n<p>This winter, key cabinet ministers resigned, and their adult children were taken into police custody. Numerous members of the prime minister\u2019s ruling Justice and Development Party (AKP) were arrested, along with the head of the state-owned financial institution Halkbank. Police were said to have found shoe boxes stuffed with $4.5 million in cash inside the bank director\u2019s home. Soon a grainy VHS-quality sex tape started circulating online, which appeared to star the pious prime minister\u2019s businessman brother, Mustafa Erdogan, engaged in an act of adultery.<\/p>\n<p>Erdogan\u2019s response has been characteristically defiant. He\u2019s fought back by attacking the internet and purging the police force of thousands of officers. The prime minister maintains that he\u2019s only trying to protect the country from\u00a0another coup. (Turkey has endured four in recent memory: in 1960, 1971, 1980, and 1997). For now, it seems Erdogan has emerged victorious.<\/p>\n<p><a href=\"https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image004.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-107468\" src=\"https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image004.jpg\" alt=\"image004\" width=\"300\" height=\"199\" srcset=\"https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image004.jpg 635w, https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image004-300x200.jpg 300w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p><em>Erdogan gives a speech to AKP members in Ankara, December 2013.<\/em><\/p>\n<p>The prime minister and others in his orbit say members of a secretive Islamic religious order known as the Gulen movement have methodically infiltrated Turkey\u2019s judiciary and police force as part of a plan to overthrow Erdogan from the inside, and the government and the\u00a0<em>cemaat<\/em><em>\u00a0<\/em>(religious movement)\u00a0have been engaged in a very public media war for months.<\/p>\n<p>Fethullah Gulen is an enigmatic diabetic who has lived in self-imposed exile in rural Pennsylvania since 1999. In a Foreign Policy poll conducted in 2008, he was voted \u201cthe most influential intellectual in the world\u201d.<\/p>\n<p>But Erdogan\u2019s AKP scored a significant victory in Sunday\u2019s\u00a0nationwide local elections, which seems to indicate that Gulen\u2019s allegations of widespread graft have done little to dent the prime minister\u2019s popularity with much of the electorate.<\/p>\n<p>It\u2019s easy to see how Gulen may have overestimated the persuasive powers of his own influence: His disciples have opened some 1,000 schools in over 140 different countries, and established media outlets, including Zaman \u2014 the newspaper with the widest circulation in Turkey.<\/p>\n<p>Until relatively recently, the Gulenists were the AKP\u2019s allies in the fight to challenge Turkey\u2019s state-sponsored secularism and powerful army. In\u00a0Gulen: The Ambiguous Politics of Market Islam<\/p>\n<p>, which was released in August, \u00a0Joshua D. Hendrick described the Gulen movement as the AKP\u2019s \u201cmost important collective partner\u201d. Little has been said about how the Gulen movement, which followers call\u00a0<em>Hizmet<\/em>\u00a0or service, may have benefited from a decade spent collaborating with Erdogan\u2019s government. Hendrick notes that Gulen-affiliated institutions \u201creceived favors\u201d from AKP bureaucrats, and that companies operated by Gulen\u2019s followers \u201creceived tenders with the help of AKP policies\u201d.<\/p>\n<p>Many ethically questionable activities involving both Calik Holdings \u2014 the company headed by Erdogan\u2019s son-in-law \u2014 and the Gulen movement extend far beyond Turkey\u2019s contemporary borders, because Erdogan and Gulen share something else: a belief that modern Turkey is the continuation of the Ottoman Empire and the center of a collective civilization that stretches from Central Asia all the way to the Balkans.<\/p>\n<p><a href=\"https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image005.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-107469\" src=\"https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image005.jpg\" alt=\"The first prize winning photo in the Portraits Stories category in the 2007 World Press Photo Contest, shows the &quot;Father of the Turkmen&quot; President Separmurad Nyazov of Turkmenistan\" width=\"300\" height=\"300\" srcset=\"https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image005.jpg 500w, https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image005-300x300.jpg 300w, https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image005-150x150.jpg 150w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p><em>Turkmenbashi, the \u201cFather of all Turkmens\u201d in a 2007 World Press Photo Contest-winning image. (Photo credit: REUTERS\/Nicolas Righetti\/Rezo\/Handout, one time usage permitted).<\/em><\/p>\n<p><strong>Ahmet Calik, the billionaire businessman who stood beside a teary Erdogan\u00a0at Esra and Berat\u2019s wedding, enjoyed a bizarre and almost intimate relationship with Saparmurat Atayevich Niyazov, better known as Turkmenbashi, the\u00a0father of all Turkmens. Niyazov ruled Turkmenistan from 1985 until his death in 2006, and during that time, he cultivated one of the most eccentric personality cults in modern history. The list of things he banned was long: car stereos, ballet, long hair, make-up on newscasters, libraries outside of the capital, recorded music at weddings, opera, the death penalty, and video games. He also established a Ministry of Fairness.<\/strong><\/p>\n<p>All the while, human rights were non-existent; torture, imprisonment and forced psychiatric treatment were used to keep dissidents in line; and the country was one of the most repressive in the world. Ahmet Calik, who made Erdogan\u2019s son-in-law his CEO, was the dictator\u2019s closest advisor and confidante.<\/p>\n<p><a href=\"https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image006.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-107470\" src=\"https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image006.jpg\" alt=\"image006\" width=\"300\" height=\"210\" \/><\/a><\/p>\n<p><em>Erdogan\u2019s son-in-law Berat Albayrak and billionaire Ahmet Calik.<\/em><\/p>\n<p>Calik is a native son of Malatya, one of the fast-growing Anatolian Tiger cities credited with driving the Turkish economy. A middle-aged man with a well-trimmed mustache and an affinity for silk ties, Calik has\u00a0been called\u00a0the Gulen movement\u2019s \u201cstar entrepreneur\u201d. In US diplomatic cables, he\u2019s also been\u00a0described\u00a0as \u201cclose to AKP and the prime minister himself\u201d. As of last year, he had an estimated\u00a0net worth\u00a0of $1.7 billion.<\/p>\n<p>He also had a knack for exploiting Niyazov\u2019s delusions of grandeur for his own financial gain.<\/p>\n<p>President Niyazov wrote a semi-autobiographical \u201choly book\u201d called the Ruhnama in 2001 that schoolchildren were forced to memorize, and which eventually supplanted normal education in Turkmenistan altogether.<\/p>\n<p>\u201cI sacrifice my life and my flesh to you; if I do the slightest harm to you, let my tongue dry and fall off like a leaf,\u201d a group of Turkmen schoolchildren recite from the Ruhnama in one unsettling scene from Arto Halonen\u2019s 2007 documentary, The Shadow of the Holy Book.<\/p>\n<p>There\u2019s a massive, mechanized statue of the Ruhnama towering over the capital city of Ashgabat \u2014 a birthday gift to the dictator from Ahmet Calik. Every night at exactly 8 pm, the cover of the book opens and an audio recording blares the Ruhnama\u2019s verses, while a colorful video of Turkmenbashi\u2019s face is projected onto an enormous blank page.<\/p>\n<p>Calik was the first foreign businessman to understand that translating the Ruhnama into a new language was the most effective means of obtaining lucrative business contracts in Turkmenistan. Hendrick claims that a \u201csenior-level aristocrat\u201d in the Gulen movement\u2019s hierarchy prepared a Turkish translation of the so-called \u201cBook of the Soul\u201d, which Calik then presented to Turkmenbashi at an official ceremony.<\/p>\n<p><a href=\"https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image011.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-107471\" src=\"https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image011.jpg\" alt=\"image011\" width=\"300\" height=\"267\" srcset=\"https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image011.jpg 531w, https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image011-300x267.jpg 300w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p><em>Statue of the Ruhnama in Ashgabat, Turkmenistan. A birthday gift from Calik to Turkmenbashi.<\/em><\/p>\n<p>Niyazov famously renamed the months of the year after members of his own family, but few know this was actually Calik\u2019s idea. The eccentric cruelties of his dictatorship were seemingly infinite:<\/p>\n<p>He used the enormous wealth generated by Turkmenistan\u2019s production of 70 billion cubic meters of natural gas each year to experiment with the limits of his country\u2019s extreme climate. He demanded that an ice palace be built in the middle of the Karakum desert \u2014 the hottest place in Central Asia. Though summer temperatures in the area often exceed 50 degrees celsius (about 122 degrees fahrenheit), he also insisted that desert ice park include a flock of penguins. (A U.S. diplomatic cablesays\u00a0Calik\u2019s company built the ice palace).<\/p>\n<p>An International Crisis Group\u00a0report\u00a0on Turkmenistan for the year 2004 mentions Calik\u2019s name numerous times. He was and remains the biggest foreign investor in Turkmenistan.<\/p>\n<p>Calik\u2019s own operations in the country have included textile factories that produce denim for H&amp;M, Levi\u2019s, and Calvin Klein using child labor, and a number of outlandish construction projects in Ashgabat, including the Great Saparmurat Turkmenbashi Cultural Center, and the Independence monument, which looks like a gilded missile.<\/p>\n<p>Calik is\u00a0suspected\u00a0of \u201cfinancial machinations\u201d and \u201cabuse of his access to Turkmenbashi\u201d. He was granted full Turkmen citizenship in the 1990s, and served as Minister of Textiles. Turkmen opposition leaders often complained that Calik exercised an \u201cunhealthy\u201d level of control over Turkmenistan\u2019s internal affairs.<\/p>\n<p><a href=\"https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image008.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-107472\" src=\"https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image008.jpg\" alt=\"image008\" width=\"300\" height=\"225\" srcset=\"https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image008.jpg 533w, https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image008-300x225.jpg 300w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p><em>Calik at a ribbon cutting ceremony with Niyazov (Turkmenbashi).<\/em><\/p>\n<p>In addition, Calik supported the publication and distribution of a new Turkmen-language version of Zaman, the Gulen-affiliated newspaper. Soon, there were local editions of Zaman being published in the Central Asian capitals of Kazakhstan, Uzbekistan, and Kyrgyzstan.<\/p>\n<p>Then in 2003, Niyazov abruptly announced that Russian should no longer be a language of instruction in schools. By the end of Niyazov\u2019s life, only one Russian-language school remained, and the country\u2019s only French and German schools were also closed. \u201cThe Turkmen government virtually prohibited internationally sponsored curricular reform altogether,\u201d Erika Dailey and Iveta Silova, two prominent researchers on Central Asia,\u00a0wrote.<\/p>\n<p>But Turkish schools, operated by members of the Gulen movement, managed to thrive under the oppressive and bizarre dictatorship. In fact, there were 16 Gulen-affiliated \u201cTurkmen-Turkish\u201d schools scattered across Turkmenistan by the start of the 2006-2007 school year.<\/p>\n<p>Most agree that \u201cGulen-affiliated\u201d Turkish schools blossomed under Niyazov\u2019s repressive dictatorship due in large part to Ahmet Calik. \u201cThe Gulen community is very active in Turkmenistan because its members served as advisors to President Niyazov himself (the adviser on energy issues and the deputy minister of textiles, Ahmet Calik),\u201d Dailey and Silova explained. \u201cIn addition, the Gulen community is known for its supportive attitude toward the authoritarian government of Turkmenistan.\u201d<\/p>\n<p>Parents needed to pay high fees to send their children to the schools, meaning Gulenist institutions, spread throughout post-Soviet Central Asia in the name of \u201cTurkic brotherhood\u201d, largely served the elite. The annual tuition for a spot at a Gulen-affiliated school in Turkmenistan was roughly $1,000 in the early 2000s, while\u00a0GDP per capita\u00a0was only about $5,000.<\/p>\n<p>Turkmenbashi dropped dead of myocardial infarction in December 2006, leaving control of the country to his dentist, Gurbanguly Berdymukhamedov. This successor and strange Niyazov doppelganger made Calik uneasy about the security of his own business dealings in Turkmenistan, even though the two had lived as neighbors in the same Ashgabat highrise built by Calik\u2019s own construction firm for years. According to diplomatic cables, Calik had an emotional four-hour dinner in Istanbul with American Charg\u00e9 d\u2019affaires Richard Hoagland in September 2007 during which he lamented that the late Turkmenbashi had \u201ctreated him like a son\u201d.<\/p>\n<p><a href=\"https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image013.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-107473\" src=\"https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image013.jpg\" alt=\"image013\" width=\"300\" height=\"199\" srcset=\"https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image013.jpg 600w, https:\/\/www.turkishnews.com\/en\/content\/wp-content\/uploads\/2014\/05\/image013-300x199.jpg 300w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p>Bulent Kilic\/AFP\/Getty Images<\/p>\n<p>Protesters with placards of Turkish Prime Minister Recep Tayyip Erdo\u011fan and the US-based Turkish cleric Fethullah G\u00fclen during a demonstration against corruption, Istanbul, December 25, 2013. The text on the placards says \u2018We will cast them down!\u2019<\/p>\n<p>Two pilots who are flying an airplane together start punching each other in the cockpit. One ejects those members of the crew whom he believes to be close to his rival; the other screams that his copilot isn\u2019t a pilot at all, but a thief. At that moment, the plane spins out of control and swiftly loses height, while the passengers look on in panic.<\/p>\n<p>These are lines from a recent newspaper column by Can D\u00fcndar, a Turkish journalist, and I can think of no clearer aid to understanding the perverse, avoidable, almost cartoonish confrontation that has engulfed Turkey since last December, and that threatens to undo the political and economic gains of the past decade.<\/p>\n<p>The parties to the confrontation are the prime minister, sixty-year-old Recep Tayyip Erdo\u011fan, and a Turkish divine, Fethullah G\u00fclen, thirteen years his senior. Erdo\u011fan leads the ruling Justice and Development Party (AKP), and works in the political hurly-burly of Ankara, the country\u2019s capital. G\u00fclen is Turkey\u2019s best-known preacher and moral didact. He lives in seclusion in Pennsylvania, reportedly in poor health (he has heart trouble). G\u00fclen presides loosely but unmistakably over an empire of schools, businesses, and networks of sympathizers.<\/p>\n<p>It is this empire that Erdo\u011fan now depicts as a \u201cparallel state\u201d to the one he was elected to run, and he has undertaken to eliminate it. The feud began in earnest last December and has had a remarkably destructive effect. Many of G\u00fclen\u2019s followers work within the government and have had much power. Now large parts of the civil service have been eviscerated, much of the media has been reduced to unthinking carriers of politically motivated revelation and innuendo, and the economy has slowed down after a decade of strong growth. The Turkish miracle is over.<\/p>\n<p>Erdo\u011fan\u2019s\u00a0AKP\u00a0government and the G\u00fclen movement share a modernizing Islamist ideology, and although relations between them have been deteriorating for some time, before the current crisis it was possible to be affiliated with both. Coexistence ended abruptly on December 17, when more than fifty pro-AKP\u00a0figures, including the head of Halkbank, a state-owned bank, a construction magnate, and the sons of three cabinet ministers, were taken in for questioning by prosecutors who are regarded as G\u00fclen\u2019s men.<\/p>\n<p>The raids were allegedly carried out by G\u00fclenist policemen and they were given much attention by newspapers and\u00a0TV\u00a0stations with a similar pro-G\u00fclen bent. Allegations that the well-connected detainees were guilty of bribery, smuggling, and other crooked activities were tweeted and retweeted in a frenzy of condemnation; the G\u00fclenist assault from within the government as well as outside it had been well planned. Incriminating evidence was indeed uncovered, including some $4.5 million kept in shoeboxes in the home of the Halkbank chief executive, along with indications of payments to ministers. It soon emerged that a second phase of the same investigation would touch the prime minister\u2019s son.<\/p>\n<p>The speed and vigor of Erdo\u011fan\u2019s reaction to these events indicate that he regarded them as a precursor to his own destruction. He immediately began clearing out compromised or potentially traitorous members of his entourage, and within a few days had replaced half his cabinet, including those members whose sons had been taken into custody. The purge has spread to far points of the civil service. As part of Erdo\u011fan\u2019s campaign against the influence of G\u00fclen, thousands of policemen have been moved from their posts, as well as senior prosecutors involved in the corruption case, and bureaucrats associated with the departed ministers have also been shuffled or dismissed.<\/p>\n<p>Earlier in February the government began investigating G\u00fclenist police officers on suspicion of \u201cforming an illegal organization within the state.\u201d Erdo\u011fan stopped the judicial investigations and instead took direct action. Two months shy of municipal elections, and six months away from a presidential election he hopes to contest, he survives. But the political tradition he represents, a synthesis of Islamism and the free market, is hurt, the prime minister has been badly damaged, and there will be more damage to come.<\/p>\n<p>Before the Erdo\u011fan\u2013G\u00fclen confrontation started to show itself, in early 2013, and certainly before last summer\u2019s nationwide protests, when Turkish liberals took to the streets against their authoritarian prime minister, Turkey\u2019s modernizing Islamist current enjoyed much goodwill. Erdo\u011fan personified it. He came to power in 2003, after a decades-long struggle by Islamists against the oppressive tactics of the country\u2019s long-entrenched secular institutions, notably the army and judiciary. Within a few years of becoming prime minister, Erdo\u011fan seemed to be rectifying many of the country\u2019s problems. Exploiting the strong majority enjoyed by the\u00a0AKP\u00a0in parliament, he stabilized and liberalized the erratic, semi-planned economy, making Turks richer than they had ever been, and introduced numerous liberal reforms (such as ending torture and giving increased rights to the Kurds). Perhaps most important of all, he brought under control of the elected civil authorities the armed forces, which had overthrown no fewer than four elected governments since 1960.<\/p>\n<p>All along, the\u00a0AKP\u00a0was in an unofficial coalition with less visible Islamists, and their most powerful coalition partner was the movement of Fethullah G\u00fclen. His schools turned out well-behaved, patriotic, pious Turks, and the government welcomed them into the bureaucratic and business elites that gradually displaced the old secular guard. Erdo\u011fan and G\u00fclen seemed to embody the longing of many Turks for an Islam in harmony with electoral democracy, entrepreneurship, and consumerism. And the Islamic element in the formula was supposed to guarantee high standards of ethics and behavior. For years, public life had been venal, loutish, and appetite-driven; the Islamists promised to do things differently.<\/p>\n<p>But the Islamists, too, do not lack for appetites. Shortly after the initial detentions by G\u00fclen\u2019s police allies in December, a video purporting to show a senior\u00a0AKP\u00a0figure in flagrante delicto was posted on the Internet. (Abdurrahman Dilipak, a leading pro-government columnist, claimed there were forty more such \u201cdoctored\u201d tapes in existence.) Recorded phone conversations involving G\u00fclen have also been leaked and heard by millions. In one he is deciding which Turkish firm should receive a contract offered by a foreign government. In another, he and a lieutenant discuss the likelihood that three \u201cfriends\u201d (i.e., followers) in senior positions at Turkey\u2019s banking regulatory body will protect a G\u00fclen-affiliated bank, Bank Asya, from government investigation. (Shortly after the leak, the three officials in question lost their jobs.) All this seemed a long way from the image of a frugal sage ailing gently in the hills of Pennsylvania that G\u00fclen has cultivated.<\/p>\n<p>The tone of the conflict is unrestrained, and is being set from the top. Erdo\u011fan refuses to utter G\u00fclen\u2019s name in public, but when he talks of \u201cfalse prophets, seers, and hollow pseudo-sages,\u201d his target is clear. In one of the frequent sermons that G\u00fclen delivers from his home, reaching big audiences in Turkey by means of supportive television stations and the Internet, the exiled preacher recently placed a malediction on his enemies, beseeching God to \u201cconsume their homes with fire, destroy their nests, break their accords.\u201d Allegations of extensive government corruption, many of them involving rigged contracts for construction projects and the violation of zoning laws, have been repeated by the G\u00fclenist media often enough for many of them to stick. On February 24, recordings of telephone conversations between the prime minister and his son, Bilal, in which the two plan the hiding of tens of millions of euros, were posted on YouTube. The prime minister has called the recordings fabricated, but the posting in question was viewed some two million times in the twenty-four hours after it was uploaded. Even if Erdo\u011fan\u2019s purges of the judiciary and the police mean that there will not be successful prosecutions (and Turkey\u2019s parliamentary immunity will protect some of Erdo\u011fan\u2019s allies), it is hard to imagine the government regaining its former reputation for probity.<\/p>\n<p>The terrain of the dispute is as much commercial as political. The government has accused the G\u00fclen-affiliated Bank Asya of buying $2 billion in foreign currency shortly before December\u2019s police operations, the implication being that bank officials had been tipped off and anticipated the ensuing fall of the Turkish lira. The bank is now struggling to contain a run on deposits that saw its share price fall by 46 percent between December 16 and February 5. Even non-G\u00fclenist financial experts believe that the government has orchestrated the withdrawals in an attempt to ruin Bank Asya, heedless of the collateral damage, both to small depositors and the banking system as a whole, that this would cause. Turkish capitalism is only tenuously governed by the rule of law.<\/p>\n<p>Erdo\u011fan\u2019s image is suffering. Last summer\u2019s protests disclosed to the public a prime minister ruled by rage and fear, as he reacted to the dissatisfaction of a largely secular minority not with magnanimous gestures, which would have satisfied many of the protesters, but with baton charges, tear gas, and denunciations of a plot by outside powers, sustained by a sinister \u201cinterest rate lobby,\u201d to deny Turkey its rightful place in the sun. By \u201cinterest rate lobby\u201d Erdo\u011fan means unscrupulous Western speculators\u2014Jews, by implication\u2014and his remarks speak to older memories, among them of Turkey\u2019s indebtedness to European bankers in Ottoman times, which weakened the empire before its collapse in World War I. But he is also evoking the grim 1990s, when an inflationary, debt-ridden, and unproductive economy was the plaything of investors who took profits when the markets were up and reentered after the inevitable crash\u2014benefiting from real interest rates that averaged 32 percent.<\/p>\n<p>These traumas have informed Erdo\u011fan\u2019s approach to the monetary aspects of the crisis. Even before December 17, a combination of the Federal Reserve\u2019s tapering of bond purchases, the threat of rising global interest rates, evidence that the Turkish economy was cooling, and political jitters caused by last summer\u2019s protests had reduced the value of the lira by 9 percent. The decline accelerated after the December arrests, but the prime minister only endorsed a hike in interest rates after the value of the currency had fallen by a further 13 percent, and Turkish companies, with their heavy exposure to short-term, dollar-denominated debt, were struggling to meet financial obligations. Finally, on January 28, the Central Bank raised rates and the lira\u2019s fall was arrested.<\/p>\n<p>Erdo\u011fan\u2019s ideological resistance to raising rates has cost Turkish companies dearly. In the words of Inan Demir, an economist at Finansbank, in Istanbul:<\/p>\n<p>There was no choice but to hike, or there would have been full-scale panic, but it should have been done earlier. Now Turkish companies have the worst of all worlds, with continuing difficulties in meeting redemptions, due to the weak lira, and higher financing costs because of the rate hike.<\/p>\n<p>In the space of just four months, Finansbank has revised its growth forecast for 2014 from 3.7 percent to 1.7 percent\u2014after a decade of growth averaging more than 5 percent.<\/p>\n<p>For all its troubles, Turkey\u2019s economy is still big, its citizens 43 percent better off than they were when Erdo\u011fan came to power. This more successful country is the subject of\u00a0<em>The Rise of Turkey: The Twenty-First Century\u2019s First Muslim Power<\/em>, a new book by Soner Cagaptay, a Turkey expert at the Washington Institute for Near East Policy. One sympathizes with Cagaptay, who finished his book long before the present crisis, but even then his tone might have struck one as triumphal\u2014a reminder of the tendency of many observers, captivated by the spectacle of Turkey shedding the complexes of the past, to downplay the perils of the future. Cagaptay dwells at length on the political and economic advances of the Erdo\u011fan years, but he does not go into the tensions within Turkish Islamism, which are likely to define the country\u2019s politics for some time, or the corruption that underlies the country\u2019s capitalist successes.<\/p>\n<p><em>The Rise of Turkey\u00a0is also quiet about the G\u00fclen movement\u2014except for its part in organizing a glittering international conference, attended by Cagaptay, on Turkey\u2019s \u201cleadership role in the Arab Spring.\u201d Such a conference would be unthinkable now, for Erdo\u011fan\u2019s Muslim Brotherhood allies have been bundled out of power in Egypt and his Syrian policy, predicated on a swift overthrow of Bashar al-Assad, is in disarray. Cagaptay is far from the only academic to have accepted hospitality from the G\u00fclen movement, and his description of it as \u201cprestigious\u201d cannot be contested. But there is more to Fethullah G\u00fclen than prestige.<\/em><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; BY\u00a0LILY LYNCH\u00a0\u00a0MAGAZINE\u00a0MARCH 31, 2014 &nbsp; The Turkish Prime Minister\u2019s son-in-law is the CEO of a company that has enjoyed a cozy relationship with eccentric dictators in Central Asia and some of the most powerful leaders in the Balkans.\u00a0 The wedding of Esra Erdogan and Berat Albayrak was designed to showcase Turkey as the \u201cbridge [&hellip;]<\/p>\n","protected":false},"author":83,"featured_media":107465,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[89],"tags":[],"class_list":["post-107463","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-turkey"],"_links":{"self":[{"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/posts\/107463","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/users\/83"}],"replies":[{"embeddable":true,"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/comments?post=107463"}],"version-history":[{"count":0,"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/posts\/107463\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/media\/107465"}],"wp:attachment":[{"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/media?parent=107463"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/categories?post=107463"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/tags?post=107463"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}