BusinessDay 12 Apr 2018
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Thursday <strong>12</strong> <strong>Apr</strong>il <strong>2018</strong><br />
FT FINANCIAL TIMES<br />
C002D5556<br />
BUSINESS DAY<br />
A1<br />
World Business Newspaper<br />
University crackdown<br />
raises fears for Turkish<br />
academic freedom<br />
Detention of antiwar students seen as indicative of growing intolerant of dissident<br />
LAURA PITEL<br />
The hilltop campus of prestigious<br />
Bogazici University<br />
in Istanbul was long viewed<br />
as a sanctuary. But in recent<br />
weeks, its tranquility has<br />
been shattered.<br />
Armoured vehicles have entered<br />
the campus, police have raided libraries<br />
and accommodation blocks and<br />
more than two dozen students have<br />
been detained.<br />
The clampdown was triggered by a<br />
fight over Turkey’s military operation in<br />
the Syrian Kurdish enclave of Afrin. A<br />
student society set up a stand offering<br />
sweets in honour of those killed in the<br />
operation. Other students objected and<br />
a scuffle broke out.<br />
The dispute prompted a furious<br />
response from President Recep Tayyip<br />
Erdogan, who slammed the antiwar<br />
protesters as “communist, traitor youth”.<br />
“We won’t give these terrorist youth<br />
the right to study at these universities,”<br />
he vowed.<br />
Turkish officials insist that the arrests<br />
are a legitimate security measure<br />
aimed at quashing support for the<br />
outlawed Kurdish militant group that<br />
was the target of Afrin campaign.<br />
But critics view the clampdown at<br />
the state institution as a fresh salvo in<br />
a wider assault on academic freedom<br />
in Turkey.<br />
“Students don’t want to come to<br />
university because there are still undercover<br />
police on campus,” said Cihangir<br />
Oz, a first-year student. “People don’t<br />
feel safe. Everyone is asking: how can<br />
we create a scholarly environment<br />
when police are in the library and in<br />
the dorms?”<br />
Bogazici staff are proud of the<br />
university’s reputation for liberalism<br />
and have staunchly guarded its independence.<br />
In the 1990s, they defied the<br />
secularist generals by allowing female<br />
students to wear the Muslim headscarf<br />
on campus. But now, many fear, the<br />
Deal aims to ease border delays but two of the biggest economies have refused to sign<br />
university will no longer be able to<br />
avoid the growing pressure.<br />
Umut Ozkirimli, a Bogazici graduate<br />
and political science professor at<br />
Lund University in Sweden, said: “This<br />
is just the latest step in a process that<br />
has been going on for some time now.<br />
Everyone knew that Bogazici and the<br />
private universities could not remain<br />
unscathed. And now it has started.”<br />
The early years under Mr Erdogan’s<br />
Justice and Development Party (AKP)<br />
were viewed by many as a golden<br />
era for scholarly freedom, with space<br />
opened up for debate on subjects long<br />
considered taboo. But critics say that as<br />
the Turkish president has adopted an<br />
increasingly majoritarian style of leadership,<br />
infused with a religious form<br />
of Turkish nationalism, he has grown<br />
more intolerant towards dissidents.<br />
Mr Erdogan was enraged by a petition<br />
in 2016, signed by more than 2,000<br />
academics, that criticised his government’s<br />
military operations against an<br />
outlawed Kurdish militia. The Turkish<br />
president described the signatories as<br />
terrorist supporters, prompting a wave<br />
of sackings and arrests.<br />
The crackdown accelerated in the<br />
wake of the violent coup attempted<br />
in 2016, which was followed by a vast<br />
purge of state institutions.<br />
A total of 5,800 academics were<br />
dismissed from their jobs, according<br />
to a tally by Turkey’s Human Rights<br />
Joint Platform. Some had ties to the<br />
Gulen movement, the Islamic fraternity<br />
accused of orchestrating the putsch,<br />
but others were leftists and liberals<br />
who maintain that they have no links<br />
to the group.<br />
Mr Erdogan also used the special<br />
powers granted under a state of<br />
emergency imposed in the wake of<br />
the failed coup to bestow himself with<br />
the power to directly select university<br />
rectors. One of his first appointments<br />
was at Bogazici, where he chose an<br />
engineering professor whose sister is<br />
an AKP member of parliament.<br />
Africa free trade pact raises hopes of prosperity<br />
JOHN AGLIONBY<br />
Venezuela stopped<br />
bond payments in<br />
September<br />
Page A3<br />
While Charles Oppong and<br />
three other drivers prepared<br />
to spend a ninth night sleeping<br />
under their trucks at a border<br />
post, officials from Ivory Coast and<br />
Ghana blamed each other for such<br />
hold-ups.<br />
Pointing the finger at his Ghanaian<br />
counterparts, an Ivorian official<br />
complained that Ghana insisted on<br />
closing the border at 6.30pm every<br />
day. But 500m away, a Ghanaian<br />
immigration officer retorted that his<br />
country’s laws were “perfect”, adding<br />
that “the difficulties are with our<br />
neighbours”.<br />
Mr Oppong and his frustrated<br />
colleagues said there was a disagreement<br />
over how much duty should be<br />
paid as they crossed from Ivory Coast.<br />
Yet their cargo was hardly contentious<br />
— all they were transporting<br />
was empty milk cartons.<br />
“Hopefully we’ll get it sorted tomorrow,”<br />
he said. “But we’re luckier<br />
than some people. Some cargo is<br />
delayed here for a month.”<br />
Such problems are common<br />
across Africa as poor logistics, bureaucratic<br />
bottlenecks, decaying<br />
infrastructure and corruption are<br />
blamed for stymieing trade across<br />
the continent’s borders. Ivory Coast<br />
and Ghana are both members of<br />
the Economic Community of West<br />
African States (Ecowas), which allows<br />
Continues on page A2<br />
UK businesses call for post-Brexit alignment with EU regulations<br />
CBI presents report on 23 sectors of the UK economy<br />
GEORGE PARKER<br />
Large swaths of the economy will<br />
be damaged if the UK deviates<br />
too far from EU regulations after<br />
Brexit, according to a new report from<br />
the CBI business lobby.<br />
Carolyn Fairbairn, head of the CBI,<br />
said the opportunities for business<br />
afforded by future regulatory freedom<br />
from Brussels were “limited” and that<br />
the majority of sectors want to stay close<br />
to current rules.<br />
She said that any gains from deregulation<br />
in some sectors are “vastly<br />
outweighed by the costs that will be<br />
incurred if the UK’s rules change so<br />
much that it reduces smooth access to<br />
the EU’s market”.<br />
The CBI said it had spoken to thousands<br />
of companies across 23 industries<br />
to provide Theresa May and her<br />
IMF chief warns trade war could rip apart global economy<br />
Lagarde says countries should ‘steer clear of protectionism’<br />
CHRIS GILES<br />
Christine Lagarde warned on<br />
Wednesday that the rules that<br />
underpin global trade were<br />
“in danger of being torn apart” by<br />
protectionist forces in what the IMF<br />
managing director said would be “an<br />
inexcusable, collective policy failure”.<br />
Speaking at the University of Hong<br />
Kong, Ms Lagarde warned of the gathering<br />
threats of a trade war and the<br />
rapid rise in public and private debt<br />
around the world. But she stresses<br />
that the global economy continued<br />
to grow strongly and remained optimistic<br />
about the remainder of <strong>2018</strong><br />
and 2019.<br />
Tit-for-tat tariffs announced by<br />
the US and China have sparked fears<br />
of a damaging trade war between the<br />
world’s two largest economies.<br />
“The multilateral trade system<br />
has transformed our world over the<br />
past generation. But that system of<br />
rules and shared responsibility is now<br />
in danger of being torn apart. This<br />
would be an inexcusable, collective<br />
policy failure,” she warned.<br />
Her concerns came in the week<br />
before finance ministers from around<br />
the world gather in Washington<br />
to discuss what the IMF chief said<br />
China accelerates<br />
opening to foreign<br />
financial groups<br />
Page A4<br />
negotiators with a detailed breakdown<br />
of the kind of Brexit sought by business<br />
leaders.<br />
Asked whether Eurosceptic enthusiasm<br />
for breaking loose from Brussels<br />
might prevail, Ms Fairbairn said: “There<br />
are trade offs between control and access.<br />
Our ambition is simple: to make<br />
sure that kind of ideological debate can<br />
be properly informed.”<br />
The CBI survey, “Smooth Operations”,<br />
found that in 18 of the sectors<br />
surveyed, companies favoured convergence<br />
after Brexit: regulations that<br />
were either close to or identical to<br />
those in the rest of the EU.<br />
Ms Fairbairn said that Britain<br />
should seek a say over shaping those<br />
rules after Brexit, even if it would no<br />
longer have a formal say in the European<br />
Parliament, European Commission<br />
or the EU Council, where laws<br />
were “darker clouds looming” on the<br />
horizon.<br />
Ms Lagarde criticised the thinking<br />
of Donald Trump’s administration,<br />
while also directing her ire at Germany’s<br />
trade imbalances and the lack<br />
of proper protection of intellectual<br />
property and inefficient state subsidies<br />
in China.<br />
Tariffs “not only lead to more expensive<br />
products and more limited<br />
choices, but they also prevent trade<br />
from playing its essential role in boosting<br />
productivity and spreading new<br />
technologies” Ms Lagarde said, as she<br />
called on countries to “steer clear of<br />
protectionism in all its forms”.<br />
She hit at the Trump administration’s<br />
focus on the US bilateral trade<br />
deficit with Beijing, saying this was<br />
the result of complicated global supply<br />
chains in which China ran a significant<br />
trade deficit with other countries from<br />
which it imported component parts.<br />
She said the Trump administration<br />
should look closer to home to<br />
improve its overall trade deficit. “The<br />
US, for example, could help tackle<br />
excessive global imbalances by curbing<br />
gradually the dynamics of public<br />
spending and by increasing revenue<br />
— which would help reduce future<br />
fiscal deficits.”<br />
are made.<br />
“Alignment will need to come with<br />
mechanisms for influence and enforcement<br />
that benefit both sides,” she<br />
said, arguing that non-EU members<br />
such as Albania and Turkey had some<br />
say through EU agencies.<br />
Ms Fairbairn said there was “good<br />
engagement now” with ministers on<br />
the priorities for the EU trade negotiation;<br />
in the early months of Mrs May’s<br />
premiership relations between the CBI<br />
boss and prime minister were frosty.<br />
The report identified some sectors<br />
that were more enthusiastic about the<br />
possibility of regulatory divergence<br />
after Brexit, including shipping, waste<br />
and environmental services and water.<br />
It said that the agriculture, food and<br />
drink sector saw “limited opportunities”<br />
for divergence from EU rules, as<br />
did the hospitality trade.<br />
Germany, meanwhile, should<br />
use its excess savings, which drives<br />
its trade surplus “to boost its growth<br />
potential — including through investments<br />
in physical and digital<br />
infrastructure”.<br />
And in a passage aimed at China,<br />
she said an important trade policy<br />
reform package “includes better<br />
protecting intellectual property, and<br />
reducing the distortions of policies<br />
that favour state enterprises”.<br />
“Let us redouble our efforts to<br />
reduce trade barriers and resolve disagreements<br />
without using exceptional<br />
measures,” Ms Lagarde urged.<br />
The IMF managing director also<br />
sought to highlight fears for the continued<br />
growth of public and private debt,<br />
which IMF research to be published<br />
next week will say has reached an alltime<br />
high at $164tn.<br />
“Compared to its 2007 level, this<br />
debt is now 40 per cent higher, with<br />
China alone accounting for just over<br />
40 per cent of that increase,” Ms Lagarde<br />
said.<br />
Without action being taken to<br />
reduce the build up of debt, countries<br />
were more vulnerable to shocks, as<br />
are the banks and corporate sectors<br />
of countries where debts had grown<br />
quickly, especially China and India.