There was a time when Istanbul was one of the safest cities in the world, because people were afraid of the police. People are no longer as afraid of the police as they used to be. Mugging used to be almost unknown; now everybody is afraid of mugging. In that sense, the downside of liberalization is already being felt in Turkey. And of course some people are afraid of Kurdish ethno-terrorism, which worries Turks very much more than the religious sort.

I'm optimistic about Turkey's prospects for reaching the E.U.'s standards of development, governance, and democracy, whether inside or outside the E.U. Provided you have a prosperous, rational society in Turkey that can interact with Europe and the West, I don't really care what kind of institutional arrangement you have. The point to make about Turkey and Europe is that it's a very long, drawn-out process. What's important is that the process not be stopped, that Turkey and Europe evolve in the right direction, on a path of convergence. Convergence is the name of the game.

Turkey's relationship with the West is a love-hate one. There are people in Turkey who want to open to the outside world and others who are frightened of the outside world. They don't feel secure; they think that foreigners are trying to harm or even destroy Turkey. But that's not true of the majority of Turks, who want to exercise their skills in a global market.

Historically Turkey hasn't had much success in attracting foreign investment. Slowly that is changing. There's a tradition of arbitrary decisions by government ministers and senior civil servants, which would ruin businesses from one day to the next, and which has tended to deter foreign investment. That's changing, and convergence with E.U. practices is a good thing in that it improves governance.

Most Turkish Kurds want a quiet life and improved economic conditions. But the Kurdish regions of Turkey are mountainous; they're ill-favored climatically; they're poor; and there's a limit to what the government can do there without wasting a lot of resources. Developing the south east may mean decamping a large part of its population. But the thing that will improve the lot of the Kurds more than anything else will be the stabilization of Iraq in the first place, because then the Turkish southeast stops being a dead end. It can become a bridge, with trade flowing in both directions.

As things change in Turkey people find in religious observance a certain framework of safety, of continuity. This is quite a common phenomenon. In a strange way it's part of a democratization of society. Although religious observance seems more common these days, it's not that people who did not go to mosques have started to go to mosques. I don't know anyone in Turkey who's become a born-again Muslim. It's a question of individual choice, and it does not stop the organic secularization of Turkish society, which carries on regardless.

Turkey has had a customs union with Europe since 1996, and there's free trade in everything other than farm products and services. And Turkey has shown that it can compete. It's good at making cheap goods - household appliances, food, detergents, cheap clothes. And they make a lot of white goods, cheap TVs, washing machines, electric appliances, steel, and, recently, auto parts. And Turks are gradually moving into IT.