Economy of Ottoman

This entry compares the ancient medieval imperial tradition with the modern economic approach and examines the evolution of the economic structure of the Ottoman Empire. Ancient medieval imperial traditions viewed the social economy as separate from the state economy and connected class consciousness with the concept of economy. Influenced by traditional values, the Ottoman Empire crafted its economic structure to prioritize the interests of the state, which held the highest position on the social structure pyramid. Understanding the evolution of the Ottoman economy requires analyzing two distinct time periods: the classical period and the boom period. During the classical period, the Ottoman economy controlled both land and markets with a focus on the timar system and war entrepreneurship. Conditions of the economy are subject to change over time, necessitating the implementation of measures such as devaluation. In the eighteenth century’s latter half, the state’s financial predicaments heightened, resulting in the requirement for a new tax system. The previously utilized timar system was abandoned and replaced by the iltizam system. Unfortunately, this shift also created complications and exposed new social strata, including the notables. The mansion system produces negative outcomes without increasing tax revenues, and the notables’ arbitrary practices prompt the central government to take precautions. Additionally, the confiscation of the notables’ savings during II. Mahmud’s reign bolstered central authority. However, the establishment of the Duyun-u Umumiyeh resulted in further diminishing the independence of the state, and foreign states gained influence over the control of economic life. This entry aids in comprehending economic developments by examining the periodic difficulties and changes experienced by the Ottoman economy throughout history.