Economic Crisis Hits The Urban Poor

ANKARA- The Turkey Welfare Monitoring Survey, sponsored by TEPAV, UNICEF and the World Bank, conducted with 2100 families suggest that urban families, especially the poor, were affected quite negatively by the economic crisis. Nearly three quarters of families reported a fall in their incomes between October 2008 and June 2009. To adjust for the fall in incomes, families primarily bought cheaper food, substitute for cheaper non-food items and decrease the amount of food consumption.

According to the results of the Welfare Monitoring Survey conducted in Adana, Ankara, Istanbul, Izmir and Kocaeli, the economic slowdown has affected the lives of the majority of families in the five largest urban centers of Turkey. The crisis has affected these families through lower incomes and higher unemployment. Almost three quarters of families reported reductions in thei income between October 2008 and June 2009. Urban families adjusted to lower earnings in various ways: families primarily buy cheaper food and non-food items and also economize the amount of food consumption. Other ways prominently used were reducing expenditures for social events, producing their own food and changing transportation methosd. On the contrary, families appear to protect education and health expenditures as much as possible. At the time of the survey, one third of the families failed to pay electricity, gas and water utility payments, and nine percent had lost their electricity connection at least temporarily.

Poor urban families state that they have relied on support from neighbors, friends, family, their community and public support programs to make ends meet. In particular the poor and middle classes noted that they borrowed heavily and that new borrowing amounted up to one half of their total income. On the other hand, in-depth interviews with some families revealed that such support networks have been tightening and that one-fifth of families were left without any support.

Assessing the survey results TEPAV Director Prof. Dr. Guven Sak said: "The survey reveals valuable information on the impacts of the economic slowdown on families in Turkey. At the same time, the results indicate that there is a need for a dialogue mechanism between the government, civil society, universities and the public about the social policies that must be implemented to support such families."

World Bank Turkey Director Ulrich Zachau underlined that job loss is the most visible effect of the economic crisis and maintained that, "[The] poor were most heavily affected by the income reductions. Among the poorest families in the surveyed urban centers, nine out of ten families stated that they had to find a way to cope with lower incomes."

UNICEF Turkey Permanent Representative Reza Hosseini said: "The survey presents the picture that shows that families found several ways to cope with the outcomes of the crisis. One among the many important findings is that in more than half of the poor families, parents stated that they had to reduce the amount of food for their children. We have to monitor closely whether or not this economic tension prevails for poor families."

Follow-up rounds of the survey are currently planned for November 2009 and May 2010.