Abstract:

TIn this study, the economic, financial and political situation of the Ottoman Empire in a time period starting with the 1838 Balta Limani Treaty (BLT) and lasting until the World War I is analized. Especially, the financial integration of the Ottoman Empire to the world via BLT, the analysis and effects of political governance are discussed. With the BLT enactment, the Ottoman lands had opened to international trade and as a result, the Ottoman Empire had started to have a current account deficit. In the following period, international trade took a new dimension and created an international payments system for the Ottoman Empire. This situation caused that the banking system enter the Ottoman Empire economic system and constituted the basis of banking structure. As a result of the BLT agreement, it caused economic relief at first, but caused economic and financial difficulties in the following period. With the emergence of political processes, the BLT began to be interrogated. Howeber these interrogations were made for the use of the system, not the system itself. In this context, administrators believed to be “more qualified” were frequently changed. Ottoman rulers thought of political or financial support from European states rather than long-term economic results. In the following periods; foreign borrowing in 1854, the establishment of the Ottoman Bank in 1863 and the transfer of the power to money printing, and finally the moratorium process in 1876 were lived. Although it was tried to escape of this process by establishing of Duyun-ı Umumiye in 1881, the political system lost its effectiveness and as a result, the control of finance and economy was completely in the hands of foreigners and non-Muslims. Briefly in the article; the comparative analysis of the political power struggle and the financial power struggle is discussed.

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