As a result the PKK withdrew most of its fighters from Turkey and at its seventh party congress, held at the beginning of last year, struck from its programme all calls for armed struggle and the independence of Kurdistan. This capitulation was, in fact, the logical and inevitable outcome of the organisation's bourgeois nationalist perspective. The PKK has now reacted to the growth of social discontent and the sharpening of the economic and political crisis of the Turkish state by offering its services to bolster the Turkish state even as the state continues to persecute, torture and murder PKK members.
Capitalist circles see the situation here as dangerous and are pulling out for that reason.
Foreign capital has fled, and domestic capital is seeking to flee as well. In other words, capital has not found Turkey's situation to be conducive to business confidence. The Turkish government eventually reacted to the crisis, responding to pressure from the International Monetary Fund and World Bank by naming the former World Bank technocrat Kemal Dervis to the post of finance minister. The Turkish and international media have used the broad and justified popular anger against the corruption and high-handedness of the government to portray Dervis as the saviour of the country. There have been massive protests by workers, peasants and small businessmen against factory closures, privatisations and cuts in wages and social benefits.