Fri, May 25 2012

Economic crisis hitting Turkey’s urban poor – World Bank

Fri, Oct 02 2009 10:23 CET 2759 Views
Economic crisis hitting Turkey’s urban poor – World Bank

Leftist protesters shout slogans as Turkish riot police try to stop them in front of a university where International Monetary Fund (IMF) managing director Dominique Strauss-Kahn was speaking in Istanbul on October 1 2009. A Turkish student threw a shoe at Strauss-Kahn as he made a speech to students in Istanbul.


Falling incomes have hit Turkey’s urban poorest hard, according to a new survey.
 
The economic slowdown, through lower incomes and higher unemployment, has affected the lives of most families in the five largest urban centres in Turkey: Adana, Ankara, Istanbul, Izmir, and Kocaeli. 
 
Almost three-quarters of families report reductions in income between October 2008 and June 2009, according to a new survey of 2100 households, jointly sponsored by TEPAV, a Turkish think-tank, Unicef and the World Bank.
 
"Unemployment is the most visible impact of the economic crisis in Turkey. Yet, even many workers who have held on to their jobs have seen their income fall, especially informal and self-employed workers," Ulrich Zachau, World Bank country director for Turkey, said.
 
"Moreover, falling incomes have hit the urban poor most frequently: among the poorest 20 per cent of urban families, nine out of 10 say that they have had to find ways to cope with lower incomes."
 
Urban families were adjusting to lower earnings in various ways. 
 
Families mostly were buying cheaper food and non-food items, but also tried to economise on the amount of food consumption. 
 
Reducing expenditures for social events, producing their own food, and changing transportation also feature prominently, according to the survey. 
 
At the time of the survey, a third had fallen behind in utility payments, and nine per cent had lost their electricity connection, at least temporarily. 
 
By contrast, families appeared to protect what they spent on education and health as much as possible.
 
"The survey shows the many different ways that families try to deal with the consequences of the crisis," according to Reza Hosseini, resident representative of Unicef Turkey. 
 
"Among the poorest 20 per cent of urban families, almost half of the parents reported that they had to reduce food consumption for their children. Monitoring closely whether such economic stress continues for these poor families will be a priority."
 
Many poor urban families say they have mobilised support from neighbors, friends, family, their community, and public programs to make ends meet. 
 
Yet, in-depth interviews with some families reveal that these support networks are stretched. About a fifth of the poorest families say they have been left without any support at all, the survey found. 
 
"The survey provides much information about the impact of the economic slowdown on Turkish families," Guven Sak, managing director of TEPAV, said. 
 
"It shows that there is a need for dialogue among government, civil society, universities and the general public alike as to what social policies could best support impacted households in these times," Sak said.
 

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