Some may be surprised by the Turkish government’s renewed eagerness to join the European Union (EU). The Turkish government has, after all, been busy passing a batch of internet surveillance laws, blocking Twitter and YouTube, reining in the judiciary and policing protests as if each and every one was a mob at the palace gates.
All of which, it goes without saying, is very un-EU-like.
For a few years Turkey’s EU bid seemed like it was dead. Having endured the condescension that accompanied certain European views of Turkey’s EU prospects, Turkish politicians revelled in the contrast between Eurozone crises and Turkey’s record growth. The prime minister even suggested Turkey would quit Nato, another pillar of Europe, and throw its lot in with China and Russia. But now, of course, things are different.
First, Turkey is gearing up for a period of great uncertainty. President Recep Tayyip Erdogan has promised nothing less than a fundamental transformation of Turkish society. Newly appointed prime minister Ahmet Davutoglu faces general elections in 2015. Economic growth is slowing. A season of contentious policy-making is here. The government’s re-energised EU negotiations will help Turkey finesse one of its most important critics – the EU – during the controversies to come. Plus, if the government’s domestic critics are turning to the EU, the government will do well to crowd the front of the line.
Second, ISIL, Syria, Iraq, and Turkey’s own Kurdish “question” promise a knife-edge year in which the only sure prediction seems to be the unforeseen event. Undercutting its previous foreign policy pretensions and affecting policy on refugees, export markets, terrorism, and more, the Turkish government knows these crises are desperate. The government’s recent EU strategy paper mentions this front and centre. That an urgent strategic imperative binds Turkey to Europe is now harder to ignore.
Third, the Turkish government knows it must reform its education, labour, and other policies if its economy is to grow beyond low value-added sectors such as construction. But the necessary reforms are politically risky. EU requirements can provide cover. In short, there is clear utility, even necessity, in Turkey’s EU policy.
But it isn’t clear the government has accepted what a real bid for EU membership will eventually require: a fundamental choice between irreconcilables.
Will Turkey be a EU-style liberal democracy, with individual rights and institutional independence so well protected that Turkey’s major social issues, such as the Kurdish “question”, cronyism, and the relationship between politics and religion can be effectively and progressively governed by courts, legislation, and public policy debate?
Or will Turkey remain a country where citizens are governed by paternalistic rulers that expect deference, muted criticism, and who reserve the right to discipline society according to particular interests and ideology, and “solve” social issues with social engineering?
This second model is where the government is today. And in their efforts to reshape society, the government has inherited a long and steady tradition that stretches back to (and even beyond) the founding of modern Turkey.
The conventional wisdom says it is the Kurdish nationalist movement that can make or break the government’s efforts to pass a new constitution that will give Mr Erdogan executive powers – the foundation of the government’s plans to engineer what it calls “New Turkey” and a more conservative, pious society.
To capture the Kurdish swing vote, Mr Erdogan, through his aides, has been negotiating with Abdullah Ocalan, the imprisoned leader of the Kurdistan Workers’ Party (PKK), and working to maintain Ocalan’s prestige and influence among nationalist Kurds. Dangling incentives, such as Ocalan’s possible transfer to house arrest, Mr Erdogan wants Ocalan to have the PKK disarm and to deliver the Kurdish national vote for the new constitution.
But all this looks to be in jeopardy. Selahattin Demirtas’s presidential campaign broadened the Kurdish nationalist platform, most significantly in the minds of many Turkish citizens, away from Ocalan’s prison cell, and boosted the case that the party, more than the prisoner, should speak for its constituency.
Also, as long as ISIL remains a threat, the PKK can’t disarm. Moreover, as it fights ISIL the PKK will gain in power, prestige, and even increase its armaments. PKK leaders in Northern Iraq will matter more than the force’s nominal, imprisoned leader.
In other words, the poles of Kurdish influence are shifting away from the Erdogan-Ocalan axis. And as such, the chance for their limited bargain, which required no deep democratic restructuring reforms, might have passed. It is now difficult to see the basis upon which the Kurdish national movement can be persuaded to settle for anything less than a Turkey fully in line with EU norms. As the current crisis increases the urgency of solving Turkey’s Kurdish “question”, Turkey’s leaders have a fundamental decision to make.
Caleb Lauer is a freelance journalist who covers Turkey
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
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The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
The finalists
Player of the Century, 2001-2020: Cristiano Ronaldo (Juventus), Lionel Messi (Barcelona), Mohamed Salah (Liverpool), Ronaldinho
Coach of the Century, 2001-2020: Pep Guardiola (Manchester City), Jose Mourinho (Tottenham Hotspur), Zinedine Zidane (Real Madrid), Sir Alex Ferguson
Club of the Century, 2001-2020: Al Ahly (Egypt), Bayern Munich (Germany), Barcelona (Spain), Real Madrid (Spain)
Player of the Year: Cristiano Ronaldo, Lionel Messi, Robert Lewandowski (Bayern Munich)
Club of the Year: Bayern Munich, Liverpool, Real Madrid
Coach of the Year: Gian Piero Gasperini (Atalanta), Hans-Dieter Flick (Bayern Munich), Jurgen Klopp (Liverpool)
Agent of the Century, 2001-2020: Giovanni Branchini, Jorge Mendes, Mino Raiola
How to play the stock market recovery in 2021?
If you are looking to build your long-term wealth in 2021 and beyond, the stock market is still the best place to do it as equities powered on despite the pandemic.
Investing in individual stocks is not for everyone and most private investors should stick to mutual funds and ETFs, but there are some thrilling opportunities for those who understand the risks.
Peter Garnry, head of equity strategy at Saxo Bank, says the 20 best-performing US and European stocks have delivered an average return year-to-date of 148 per cent, measured in local currency terms.
Online marketplace Etsy was the best performer with a return of 330.6 per cent, followed by communications software company Sinch (315.4 per cent), online supermarket HelloFresh (232.8 per cent) and fuel cells specialist NEL (191.7 per cent).
Mr Garnry says digital companies benefited from the lockdown, while green energy firms flew as efforts to combat climate change were ramped up, helped in part by the European Union’s green deal.
Electric car company Tesla would be on the list if it had been part of the S&P 500 Index, but it only joined on December 21. “Tesla has become one of the most valuable companies in the world this year as demand for electric vehicles has grown dramatically,” Mr Garnry says.
By contrast, the 20 worst-performing European stocks fell 54 per cent on average, with European banks hit by the economic fallout from the pandemic, while cruise liners and airline stocks suffered due to travel restrictions.
As demand for energy fell, the oil and gas industry had a tough year, too.
Mr Garnry says the biggest story this year was the “absolute crunch” in so-called value stocks, companies that trade at low valuations compared to their earnings and growth potential.
He says they are “heavily tilted towards financials, miners, energy, utilities and industrials, which have all been hit hard by the Covid-19 pandemic”. “The last year saw these cheap stocks become cheaper and expensive stocks have become more expensive.”
This has triggered excited talk about the “great value rotation” but Mr Garnry remains sceptical. “We need to see a breakout of interest rates combined with higher inflation before we join the crowd.”
Always remember that past performance is not a guarantee of future returns. Last year’s winners often turn out to be this year’s losers, and vice-versa.
Roll of honour 2019-2020
Dubai Rugby Sevens
Winners: Dubai Hurricanes
Runners up: Bahrain
West Asia Premiership
Winners: Bahrain
Runners up: UAE Premiership
UAE Premiership
}Winners: Dubai Exiles
Runners up: Dubai Hurricanes
UAE Division One
Winners: Abu Dhabi Saracens
Runners up: Dubai Hurricanes II
UAE Division Two
Winners: Barrelhouse
Runners up: RAK Rugby
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MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
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THE SPECS
Engine: 1.5-litre
Transmission: 6-speed automatic
Power: 110 horsepower
Torque: 147Nm
Price: From Dh59,700
On sale: now
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