Ottoman State Finances in European Perspective 1500-1914

1. Ottoman State Finances in European Perspective 1500-1914 Historical and Economic Outlook at this Muslim Empire

2. Karaman and Pamuk’s article • This article illustrates the economic developments and policies of the Ottoman Empire during the early modern era (1500-1914) • The article portrays the historical rise of the Ottoman Empire along with how capitalism and economic stagnation led to its collapse • Goal: demonstrate through visual means the main points of Karaman and Pamuk’s article

3. Rise of the Ottoman Empire • Beginning in the 16th century, the Ottoman Empire, founded in present day Turkey, began to dominate both territory and trade within in the Middle East, North Africa, and Southeastern Europe

4. Rise and Fall • The Ottoman Empire surged forward during the 16th and 17th century, but was in the process of fading as World War I approached

5. Ottoman Expansion • The main means of the Ottoman Empire’s expansion was through military conquest • Many Ottoman sultans like the famous Osman I, Murad II, and Mehmed the Conqueror committed themselves to extending the boundaries of the empire

6. Sack of Constantinople • The highlight and peak of the Ottoman Empire’s conquests was capturing the legendary trading center and city of Constantinople • Previously held by the Byzantine Empire, a Turkish force led by Mehmed the Conqueror sacked this city in 1453

7. Economic Rise • The Ottoman Empire used the conquered city of Constantinople (renamed Istanbul) as a trade center and established numerous trade routes • As the article portrays the Ottoman Empire used a centralized economic system with the sultan being in charge of commerce; this meant that the government oversaw all transactions and controlled the trade of specific items (like gold and spices) • In addition, the Ottomans increased their naval power and maritime trade in both the Mediterranean and through the Red Sea towards India and Southeast Asia

8. Cultural Expansion • As the Ottoman Empire boundaries and trade expanded, so did the spread of Turkish art and architecture

9. 19th Century Stagnation • However, in the 19th century the Ottoman’s economy faced a period of stagnation • The exchange of Ottoman coins dropped to what would be equal to a dime for a dollar in today’s standard of U.S. monetary exchange according to Karaman and Pamuk’s article

10. The Fall of the Ottoman Empire • While Europe’s economy boomed due to the Industrial Revolution, the Ottoman Empire’s weakened • The Ottoman Empire could not keep up with both capitalism which Europeans had been using against the empire (with its centralized monarchial economic system) and now with the Industrial Revolution

11. World War I • Thus, as World War I approached, the Ottoman Empire was known as the ‘Sick Man of Europe’ and did not have much economic or political power • In fact, as Karaman and Pamuk’s article illustrates, industrialization and capitalism led to a period of European imperialism. During this period, the Ottoman’s Empire and trade prowess drastically shrank • At the turn of the century, the Ottoman Empire held a little land in Southeastern Europe and some in the Middle East; the British had taken over Egypt to ensure their trade rights over the Suez Canal (which severely limited the Ottoman’s trading)

12. The Fall • Although Turkish forces desperately tried to prevent the fall of the Ottoman Empire, the economic conditions and WWI caused for the inevitable demise of the empire to be accelerated as technologically superior European forces took over the political and economic power of the Ottoman Empire in 1914.