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Growth and Retardation in the Ottoman Economy, The GROWTH AND RETARDATION IN THE OTTOMAN ECONOMY, THE CASE OF OTTOMAN SELANIK, 1876-1912 BY AHMET ORHUN AKARLI SUBMITTED TO LONDON SCHOOL OF ECONOMICS AND POLITICAL SCIENCE FOR THE DEGREE OF PH.D. AUGUST 2001 UMI Number: U615209 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. Dissertation Publishing UMI U615209 Published by ProQuest LLC 2014. Copyright in the Dissertation held by the Author. Microform Edition © ProQuest LLC. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code. ProQuest LLC 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106-1346 f u e s a s F 7 S% 8 I97S 6 ABSTRACT During the late nineteenth and early twentieth centuries, Selanik became one of most modernised and dynamic regions of the Ottoman Empire. With its tightly knit marketing networks and extensive railway systems, relatively well-developed financial markets, fluid land market, modem factories, burgeoning urban areas and port-cities, Selanik had clearly become one of the leading commercial regions of the entire eastern Mediterranean basin by the* turn of the twentieth century. Two primary forces underlay the process of economic modernisation in the region, namely the capitalist world economy and the reform efforts of the Ottoman government. Enhanced integration with the world economy brought new opportunities and helped bolster economic modernisation in the region. The reform efforts and infrastructure investments of the Ottoman state also contributed to the moment of commercialisation and modernisation. Notwithstanding the impressive dynamism and apparent modernisation of the regional economy, serious processes of retardation and backwardness also surfaced rather strongly during the same period. Ironically, the very same forces that generated much dynamism in the regional economy also prepared the structural ground for retardation and backwardness. More specifically, the growing moment of commercialisation and enhanced integration with the world capitalist economy created serious dislocations in the agrarian economy and prepared ground for economic retardation. Likewise, the organisational, fiscal and diplomatic weakness of the Ottoman government undermined the existing potential for economic development and growth. Thus, a dual economic structure emerged whereby facets of “modernity” and growth meshed with those of economic retardation and backwardness. The socio­ economic tensions and contradictions building up in this process prepared the structural background to the dissolution and eventual collapse of the Ottoman rule in the Balkans. In other words, the sporadic fits of modernity and growth could not be sustained, given the overwhelming dominance of European economic interests and the apparent, weakness of the Ottoman state. The conflict ridden transformation process simply erupted in uprising, revolution and war. The fear o f loneliness has been like a ball and chain restraining ambition, as much o f an obstacle to a full life as persecution, discrimination or poverty. Until the chain is broken, freedom, for many, will remain a nightmare T. Zeldin TABLE OF CONTENTS ACKNOWLEDGEMENTS .................................................. i LIST OF TABLES AND CHARTS ................................................................ iii LIST OF ABBREVIATIONS................................................................................. iv MEASURES, WEIGHTS AND CURRENCY.......................................................v MAPS............................................................................................... vi Chapter Page 1. INTRODUCTION................................................................................................1 1. The Problem ....... .............. ..........................:.................................1 2. Sources and Structure.............................................................................................15 2. CHAPTER I: THE PATTERN OF AGRARIAN TRANSFORMATION, TRENDS AND DIRECTIONS, A QUANTITATIVE APPROACH...................20 Introduction................................................................................................................. 20 1. Measuring Performance in Sub-Sectors: Cereal Production, Cash Crop Production and Animal Husbandry ....................................................................23 1.1. Cereal Production................................................................................... 40 1.2. Cash Crop Production.............................................................................47 1.3. Animal Husbandry .................................................................................. 51 2. Overall Trends in Agricultural Production.........................................................51 2.1. Changing Levels of Agricultural Production.......................................51 2.2. Demographic Trends.............................................................................. 54 Conclusion 65 2. CHAPTER II: DYNAMICS OF AGRARIAN TRANSFORMATION, THE MARKET PROCESS............................................................................... 69 Introduction.................................................................................................................69 1. The Conjuncture and the Historical Context.....................................................72 2. Agricultural Production in an Unregulated Context...........................................77 2.1. Cereal Production.................................................................................. 77 2.2. Cotton Cultivation: American Competition and the Blessing of the Domestic Market ......................................................................................100 3. Agricultural Production under Overseas Influence..............................................106 3.1. Silk Production: Disaster and Recovery ...............................................106 3.2. Tobacco Cultivation: Monopolies, Regulations and Foreign Trading Houses....................................................................................................... 113 3.3. Opium Production. The Dynamism o f the Overseas Markets .............126 Conclusion..................................................................................................................130 4. CHAPTER III: DYNAMICS OF AGRARIAN TRANSFORMATION, AGRICULTURAL REFORM AND GOVERNMENT POLICY................. 134 Introduction................................................................................................................. 134 1. The Creation of an Agrarian Bureaucracy and the Selanik Agricultural School ..............-......................... 137 1.1. Bureaucratic Organisation: Prospects and Limitations.......................138 1.2. The Agricultural School of Salonica: Potential and Reality ............... 141 2. Public Credit Policy and the Agricultural Bank .................................................146 2.1. General Developments...........................................................................146 2.2. Developments in Selanik................ 153 3. Reform Efforts and Crisis Management: Obstacles and Promises .....................159 Conclusion..................................................................................................................176 5.CHAPTER IV: THE DYNAMICS OF DYNAMICS OF DISPOSSESSION AND THE LOGIC OF RENT SEEKING: PROPERTY RIGHTS, TENURE SYSTEMS AND TAXATION ................................................................. 179 Introduction................................................................................................................. 179 1. The Transformation of the Ottoman Land regime and systems of Taxation: A Long Term Perspective....................... 182 2. Relations of Property and (Re)Distribution: The Selanik Region, 1880-1910 ..................................................................................................... 206 2.1. The Consolidation of Property Rights: Registration, Deliverance of Justice and Law Enforcement...............................................................206 2.2. The Peasant Proprietors, the Landlords and their Tenants................214 3. Dynamics of Commercialisation, Rural Displacement and the Logic of Rent Seeking ............................................................................................................227 3.1. Property Rights and Peasant Proprietors ................................ 227 3.2. Property Rights kid the Crisis of the Qftlik Economy ....................... 235 Conclusion...................................................................................................................240 6.CHAPTER V: FACETS OF MODERNISATION: SERVICES, URBAN CONSTRUCTION INDUSTRY AND MANUFACTURING........................243 Introduction.................................................................................................................243 1. The Dynamics of Urbanisation: Railways, Overseas Trade and Commercial Agriculture......................................................................................................247 2. The Development of the Urban Service Sector................................................253 3. The Construction
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