Social unrest
The country's president, Ahmet Necdet Sezer, vetoed legislation to reduce subsidies for tobacco farmers this month, saying it would cause too much added suffering. The military-dominated National Security Council discussed the potential for social unrest at a recent closed meeting, according to newspapers.
Laila's high-flying customers got a taste of social unrest on a recent Saturday. As the sports cars and limousines lined up to deposit their occupants, 20 young men appeared, chanting slogans. "The plunderers are here," they shouted. "Where are the laborers?" The club's security guards hustled them away.
Sefik Oztek, Laila's owner, was philosophical about the demonstration. "They once demonstrated outside Parliament," he said. "Now it's Laila, because this is where the power is."
Oztek, 38, surveyed his domain from a banquette near the top of the multilevel club on the Bosporus. Seven restaurants, three bars, several huge video screens and countless speakers blasting music were arrayed before him.
On a busy night, 4,000 people jam the club. Most pay a US$16 cover charge, though VIP cards were sent to 2,500 celebrities and big spenders before the season started in June. Prices vary at the restaurants, but dinner and drinks for two runs about US$100.
Oztek, who pays US$1.25 million to rent the space for the summer, said the hard times have not hurt business. "People are conscious of the crisis, so we pay extra attention to prices and quality," he said. "But we offer a few hours of escape and relaxation."
The story is different at most restaurants in Istanbul. Managers of places in all price ranges said the devalued lira and economic uncertainty had cut revenues deeply.
"In the last six months, we have lost two-thirds of our clients," said Kazim Kaya, who owns the traditional restaurant in the Taksim neighborhood where Akayoglu works as a waiter. "My costs keep increasing," Kaya said, "but I can't reflect it in my prices. I don't want to lose any more customers."
Distrust of the government is high. If elections were held today, no established party, including the three that make up the current government, would get enough votes to sit in Parliament, according to a recent nationwide poll.
"You have extreme lack of trust in the state about anything getting better, and the economic insecurity for an overwhelming majority of society," said Hale Boratav, chairman of the psychology department at Istanbul's Bilgi University. "It's hard for people to be optimistic."
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