Police in Turkey have rounded up hundreds of construction workers at Istanbul's new airport after they protested labor safety, bed bugs in their accommodations, delayed salaries and colleagues' deaths.
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Turkish gendarmerie officers detained around 500 laborers on Saturday after they staged a protest over working conditions at Istanbul's new airport, according to a union leader and newspaper reports.
The protest was triggered after 17 workers were injured in a shuttle bus accident on Friday. Thousands of workers joined the demonstration which was broken up by riot police who deployed tear gas and water cannon, reported Turkey's Cumhuriyet newspaper.
Opposition lawmaker Ali Bayar, who visited the site after the protests, said the rows of container homes where the workers are housed "look like a detention camp." The laborers have also complained about poor food, bed bugs in their sleeping quarters, delayed salaries and colleagues' deaths.
In February, the Labor Ministry in Turkey, an EU candidate country, said 27 workers had died at the airport since the start of work there in 2015, mainly from work accidents or health problems.
Unions have long complained about poor working conditions at the airport - a prestige project for President Recep Tayyip Erdogan - but workers' right to protest had been curtailed under a state of emergency introduced after the July 2016 coup attempt. The measures were lifted in July. Turkey-EU relations have been strained by the Ankara government's power grab following the failed coup.
The Turkish lira crash is threatening to turn into a debt and liquidity crisis. DW explains how the lira got to this point.
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The big picture
Turkey is in the throes of a full-blown currency crisis, with the Turkish lira losing nearly 45 percent of its value since the start of the year. The currency crisis threatens to plunge the world's 18th-largest economy into a financial crisis and trigger contagion in emerging markets and Europe.
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Search for yield
Turkey has traditionally suffered from a large current account deficit. This difference between import and export of goods and services has been filled through external borrowing in foreign currency. A decade of easy money and low interest rates in the United States and EU following the 2008 financial crisis led to investors searching for higher yields to emerging markets like Turkey.
Image: AP
Credit-fueled growth
The external funds entered the Turkish economy to finance deficits, massive government spending and company borrowing. Credit-fueled growth helped the Turkish economy grow and boosted the government’s popularity through increased consumption and major construction projects. Here, road paint reads: "Slow down."
Image: Getty Images/AFP/O. Kose
Reducing exposure to emerging markets
Investors have pulled back money from emerging markets in recent months as the US Federal Reserve has steadily raised interest rates and is cutting back on easy money policies in response to a robust American economy. This has caused the dollar to increase, the lira to fall, and Turkish bond yields to rise.
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Loss of confidence in Erdogan's strong hand
The pressure on Turkey is reflective of broader trends in emerging markets, although the lira is by far the worst performer. That's because investors have lost confidence in management of the economy under President Recep Tayyip Erdogan, who believes in unorthodox economic policy, demands low interest rates and constantly assails "the interest rate lobby." Inflation is at 16 percent a year.
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Trump's tweet shakes markets
On August 10, US President Donald Trump announced higher tariffs on Turkish imports of steel and aluminum. The tariffs themselves are minor and impact around $1 billion (€875 million) in trade, but they weighed on market confidence in the vulnerable Turkish economy. Even more, Trump’s direct reference to the Turkish lira sent the currency tumbling.
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Frenemies
The imprisonment of US pastor Andrew Brunson has weighed heavily on relations, leading to a series of escalations. Ties between the two NATO allies have also nosedived over US support for Syrian Kurdish forces, Ankara's plans to buy a Russian missile system and Turkey's demand that Washington extradite US-based Islamic cleric Fethullah Gulen, whom Erdogan blames for the failed July 2016 coup bid.
Image: Reuters/K. Lemarque
One man show
Poor relations between Washington and Ankara have added to Turkey's economic woes, but given broader fundamentals it is only a proximate cause of the market mayhem. More than 30 percent of the lira’s loss has come since June, when Erdogan took over the office with new sweeping powers. Erdogan's authoritarian hand has distanced the country from traditional Western allies and hit confidence.
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Albayrak: the son-in-law
After winning a June election, Erdogan spooked markets when he tightened his control over the central bank. Instead of appointing technocrats, Erdogan appointed his son-in-law Berat Albayrak (pictured) to lead the newly empowered Finance Ministry. This has raised concerns over the central bank's independence given the president’s repeated statements against raising interest rates.
Image: picture-alliance/M. Alkac
'Economic war'
Erdogan has not inspired confidence in responding to the lira meltdown. He speaks of "economic war" and a "campaign" waged by external powers designed to weaken Turkey. Instead of taking drastic action to shore up confidence, such as raising interest rates or going to the International Monetary Fund (IMF), the government is couching itself in nationalistic rhetoric of sacrifice.
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Airport operator IGA said its CEO had met union representatives and was looking into their complaints. Ozgur Karabulut, general manager of the Dev Yapi-Is union, said the union had received only verbal pledges from IGA and wanted commitments in writing.
"Most of them had to go to work today under pressure and under threat," Karabulut said. "So they went to work today unwillingly but they want the public to know that they will be protesting tonight if their friends are not released."
The yet-unnamed airport, Istanbul's third, is scheduled to open on October 29 and is part of a construction boom in Turkey overseen by Erdogan and supported by public contracts for bridges, roads and railways and the promise of quick money from investors, especially those based in Arab countries.