Türkiye Nears Referendum on Erdogan’s Two-Decade Rule

A handout photograph taken and released on April 29, 2023 by the Press Office of the Presidency of Türkiye, shows Turkish President and leader of the Justice and Development (AK) Party, Recep Tayyip Erdogan (C), flanked by his wife Emine Erdogan (R), waving to citizens upon his arrival on stage for an electoral rally at Gundogdu Square in Izmir, on April 29, 2023. (Photo by Handout / Press Office of the Presidency of Türkiye / AFP)
A handout photograph taken and released on April 29, 2023 by the Press Office of the Presidency of Türkiye, shows Turkish President and leader of the Justice and Development (AK) Party, Recep Tayyip Erdogan (C), flanked by his wife Emine Erdogan (R), waving to citizens upon his arrival on stage for an electoral rally at Gundogdu Square in Izmir, on April 29, 2023. (Photo by Handout / Press Office of the Presidency of Türkiye / AFP)
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Türkiye Nears Referendum on Erdogan’s Two-Decade Rule

A handout photograph taken and released on April 29, 2023 by the Press Office of the Presidency of Türkiye, shows Turkish President and leader of the Justice and Development (AK) Party, Recep Tayyip Erdogan (C), flanked by his wife Emine Erdogan (R), waving to citizens upon his arrival on stage for an electoral rally at Gundogdu Square in Izmir, on April 29, 2023. (Photo by Handout / Press Office of the Presidency of Türkiye / AFP)
A handout photograph taken and released on April 29, 2023 by the Press Office of the Presidency of Türkiye, shows Turkish President and leader of the Justice and Development (AK) Party, Recep Tayyip Erdogan (C), flanked by his wife Emine Erdogan (R), waving to citizens upon his arrival on stage for an electoral rally at Gundogdu Square in Izmir, on April 29, 2023. (Photo by Handout / Press Office of the Presidency of Türkiye / AFP)

Turkish President Recep Tayyip Erdogan dives Sunday into the final two-week stretch before a momentous election that has turned into a referendum on his two decades of divisive but transformative rule.

The 69-year-old leader looked fighting fit as he strutted back on stage after a three-day illness and tossed flowers to rapturous crowds at an Istanbul aviation fest on Saturday.

It was the perfect venue for reminding Turks of all they had gained since his Islamic-rooted party ended years of secular rule and launched an era of economic revival and military might.

He was flanked by the president of Azerbaijan and the Ankara-backed premier of Libya -- two countries where drones built by his son-in-law's company helped swing the outcome of wars.

Istanbul itself has become a modern and chaotic megalopolis that has nearly doubled in size since Erdogan came to power in 2003.

But hiding beneath the surface are a more recent economic crisis and fierce social divisions that have given the May 14 parliamentary and presidential polls a powder keg feel.

'Political coup attempt'

The nation of 85 million appears as splintered as ever about whether Erdogan has done more harm than good in the only Muslim-majority country of the NATO defense bloc.

Polls show him running neck-and-neck against secular opposition leader Kemal Kilicdaroglu and his alliance of six disparate parties.

The entry of two minor candidates means that Erdogan and Kilicdaroglu will likely face each other again in a runoff on May 28.

But some of Erdogan's more hawkish ministers are sounding warnings about Washington leading Western efforts to undermine Türkiye’s might through the polls.

Interior Minister Suleyman Soylu referred Friday to US President Joe Biden's 2019 suggestion that Washington should embolden the opposition "to take on and defeat Erdogan".

"July 15 was their actual coup attempt," Soylu said of a failed 2016 military putsch that Erdogan blamed on a US-based Muslim preacher.

"And May 14 is their political coup attempt."

Splintered society

Erdogan continues to be lionized across more conservative swathes of Türkiye for unshackling religious restrictions and bringing modern homes and jobs to millions of people through construction and state investment.

Türkiye is now filled with hospitals and interconnected with airports and highways that stimulate trade and give the vast country a more inclusive feel.

He empowered conservative women by enabling them to stay veiled in school and in civil service -- a right that did not exist in the secular state created from the Ottoman Empire's ashes in 1923.

And he won early support from Türkiye’s long-repressed Kurdish minority by seeking a political solution to their armed struggle for an independent state that has claimed tens of thousands of lives.

But his equally passionate detractors point to a more authoritarian streak that emerged with the violent clampdown on protests in 2013 -- and became even more apparent with sweeping purges he unleashed after the failed 2016 coup attempt.

Erdogan turned against the Kurds and jailed or stripped tens of thousands of people of their state jobs on oblique "terror" charges that sent chills through Turkish society.

His penchant for campaigning and gift for public speaking enabled him to keep winning at the polls.

But the current vote is turning into his toughest because of a huge economic crisis that erupted in late 2021.

Democratic traditions

Erdogan's biggest problems started when he decided to defy the rules of economics by slashing interest rates to fight inflation.

The lira lost more than half its value and inflation hit an eye-popping 85 percent since his experiment began.

Millions lost their savings and fell into deep debt.

Polls show the economy worrying Turks more than any other issue -- a point not lost on Kilicdaroglu.

The 74-year-old former civil servant pledges to restore economic order and bring in vast sums from Western investors who fled the chaos of Erdogan's more recent rule.

Kilicdaroglu's party will send out 300,000 monitors to Türkiye’s 50,000 polling stations to guarantee a fair outcome on election day.

Opposition security pointman Oguz Kaan Salici sounded certain about a smooth transition should Erdogan lose.

"Power will change hands the way it did in 2002," he said of the year Erdogan's party first won.

A Western diplomatic source pointed to Türkiye’s strong tradition of respecting election results.

Erdogan's own supporters turned against him when the Turkish leader tried to annul the opposition's victory in 2019 mayoral elections in Istanbul.

But the source observed a note of worry among Erdogan's rank and file.

"For the first time, (ruling party) deputies are openly evoking the possibility of defeat," the source said.



To Get Their Own Cash, People in Gaza Must Pay Middlemen a 40% Cut

A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)
A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)
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To Get Their Own Cash, People in Gaza Must Pay Middlemen a 40% Cut

A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)
A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)

Cash is the lifeblood of the Gaza Strip’s shattered economy, and like all other necessities in this war-torn territory — food, fuel, medicine — it is in extremely short supply.

With nearly every bank branch and ATM inoperable, people have become reliant on an unrestrained network of powerful cash brokers to get money for daily expenses and commissions on those transactions have soared to about 40%.

"The people are crying blood because of this," said Ayman al-Dahdouh, a school director living in Gaza City. "It’s suffocating us, starving us."

At a time of surging inflation, high unemployment and dwindling savings, the scarcity of cash has magnified the financial squeeze on families — some of whom have begun to sell their possessions to buy essential goods.

The cash that is available has even lost some of its luster. Palestinians use the Israeli currency, the shekel, for most transactions. Yet with Israel no longer resupplying the territory with newly printed bank notes, merchants are increasingly reluctant to accept frayed bills.

Gaza’s punishing cash crunch has several root causes, experts say.

To curtail Hamas’ ability to purchase weapons and pay its fighters, Israel stopped allowing cash to enter Gaza at the start of the war. Around the same time, many wealthy families in Gaza withdrew their money from banks and then fled the territory. And rising fears about Gaza’s financial system prompted foreign businesses selling goods into the territory to demand cash payments.

As Gaza’s money supply dwindled and civilians’ desperation mounted, cash brokers' commissions — around 5% at the start of the war — skyrocketed.

Someone needing cash transfers money electronically to a broker and moments later is handed a fraction of that amount in bills. Many brokers openly advertise their services, while others are more secretive. Some grocers and retailers have also begun exchanging cash for their customers.

"If I need $60, I need to transfer $100," said Mohammed Basheer al-Farra, who lives in southern Gaza after being displaced from Khan Younis. "This is the only way we can buy essentials, like flour and sugar. We lose nearly half of our money just to be able to spend it."

In 2024, inflation in Gaza surged by 230%, according to the World Bank. It dropped slightly during the ceasefire that began in January, only to shoot up again after Israel backed out of the truce in March.

Cash touches every aspect of life in Gaza

About 80% of people in Gaza were unemployed at the end of 2024, according to the World Bank, and the figure is likely higher now. Those with jobs are mostly paid by direct deposits into their bank accounts.

But "when you want to buy vegetables, food, water, medication -- if you want to take transportation, or you need a blanket, or anything — you must use cash," al-Dahdouh said.

Shahid Ajjour’s family has been living off of savings for two years after the pharmacy and another business they owned were ruined by the war.

"We had to sell everything just to get cash," said Ajjour, who sold her gold to buy flour and canned beans. The family of eight spends the equivalent of $12 every two days on flour; before the war, that cost less than $4.

Sugar is very expensive, costing the equivalent of $80-$100 per kilogram (2.2 pounds), multiple people said; before the war, that cost less than $2.

Gasoline is about $25 a liter, or roughly $95 a gallon, when paying the lower, cash price.

Bills are worn and unusable

The bills in Gaza are tattered after 21 months of war.

Money is so fragile, it feels as if it is going to melt in your hands, said Mohammed al-Awini, who lives in a tent camp in southern Gaza.

Small business owners said they were under pressure to ask customers for undamaged cash because their suppliers demand pristine bills from them.

Thaeir Suhwayl, a flour merchant in Deir al-Balah, said his suppliers recently demanded he pay them only with brand new 200-shekel ($60) bank notes, which he said are rare. Most civilians pay him with 20-shekel ($6) notes that are often in poor condition.

On a recent visit to the market, Ajjour transferred the shekel equivalent of around $100 to a cash broker and received around $50 in return. But when she tried to buy some household supplies from a merchant, she was turned away because the bills weren’t in good condition.

"So the worth of your $50 is zero in the end," she said.

This problem has given rise to a new business in Gaza: money repair. It costs between 3 and 10 shekels ($1-$3) to mend old bank notes. But even cash repaired with tape or other means is sometimes rejected.

People are at the mercy of cash brokers

After most of the banks closed in the early days of the war, those with large reserves of cash suddenly had immense power.

"People are at their mercy," said Mahmoud Aqel, who has been displaced from his home in southern Gaza. "No one can stop them."

The war makes it impossible to regulate market prices and exchange rates, said Dalia Alazzeh, an expert in finance and accounting at the University of the West of Scotland. "Nobody can physically monitor what’s happening," Alazzeh said.

A year ago, the Palestine Monetary Authority, the equivalent of a central bank for Gaza and the West Bank, sought to ease the crisis by introducing a digital payment system known as Iburaq. It attracted half a million users, or a quarter of the population, according to the World Bank, but was ultimately undermined by merchants insisting on cash.

Israel sought to ramp up financial pressure on Hamas earlier this year by tightening the distribution of humanitarian aid, which it said was routinely siphoned off by militants and then resold.

Experts said it is unclear if the cash brokers’ activities benefit Hamas, as some Israeli analysts claim.

The war has made it more difficult to determine who is behind all sorts of economic activity in the territory, said Omar Shabaan, director of Palthink for Strategic Studies, a Gaza-based think tank.

"It's a dark place now. You don't know who is bringing cigarettes into Gaza," he said, giving just one example. "It's like a mafia."

These same deep-pocketed traders are likely the ones running cash brokerages, and selling basic foodstuffs, he said. "They benefit by imposing these commissions," he said.

Once families run out of cash, they are forced to turn to humanitarian aid.

Al-Farra said that is what prompted him to begin seeking food at an aid distribution center, where it is common for Palestinians to jostle over one other for sacks of flour and boxes of pasta.

"This is the only way I can feed my family," he said.