The Rise of Islamic Capital in Central Anatolia As a New Economic Power, 1980-Present

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The Rise of Islamic Capital in Central Anatolia As a New Economic Power, 1980-Present ECONOMIC ENGAGEMENT OF RELIGIOUS ETHICS IN A GLOBAL ECONOMY: THE RISE OF ISLAMIC CAPITAL IN CENTRAL ANATOLIA AS A NEW ECONOMIC POWER, 1980-PRESENT by Başak Özoral A Dissertation submitted to the Faculty of Graduate Studies and Research in partial fulfillment of the requirements of the degree of Doctor of Philosophy Institute of Islamic Studies McGill University Montreal January 2011 © Başak Özoral 2011 ii ABSTRACT Title: Economic Engagement of Religious Ethics in a Global Economy: The Rise of Pious Muslim Entrepreneurs in Central Anatolia as a New Economic Power, 1980- Present Author: Başak Özoral Department: Institute of Islamic Studies Degree: Doctor of Philosophy This study attempts to clarify the role of religious values in the rise of new pious Muslim entrepreneurs in Turkey, based on field study carried out in Kayseri from 1980 to the present. It particularly attempts to account for the influence of religion on the work ethic of these entrepreneurs, popularly known as “Anatolian Tigers.” To achieve the goals of this research, in-depth interviews were held with thirty Turkish business people from both religious and secular backgrounds. The qualitative data was interpreted by using a discourse analysis technique. In this research, special attention is given to the evolving power balance between the secular elite and the new pious economic class, which replaces to some extent the earlier polarization between the republican elites and the people. The new pious economic elite is following a path of modernity by directly addressing needs that have been ignored by the secular republican project and its elites. The case of Turkey indicates that Westernization is not the only possible path to modernity. This new development, if indeed it continues, may prove to be one of the most important transformations determining the future of Turkey. The study also seeks to analyze the compatibility of the work ethic of pious entrepreneurs with capitalism in the case of Kayseri. This work will illustrate the impact of local heritage and religious values on modern economic activity. iii iv RÉSUMÉ Titre: L’engagement économique de l’éthique religieuse dans une économie globale: l’essor d’entrepreneurs musulmans pieux dans l’Anatolie centrale comme nouveau pouvoir économique, 1980- Présent. Auteur: Başak Özoral Département: Institut d’études islamiques Degré: Doctorat Cette étude vise à clarifier le rôle des valeurs religieux dans l’essor de nouveaux entrepreneurs pieux en Turquie, fondé sur une enquête sur le terrain menée à Kayseri (1980- Présent). Elle essaie en particulier à expliquer l’influence de la religion sur la morale de travail chez ces entrepreneurs, connus sous le nom de «tigres anatoliens». Pour atteindre les buts de ce travail, des entrevues approfondis étaient tenus avec une trentaine de dirigeants d’entreprises turques de formations variées. Les données qualitatives ont été interprétées en utilisant la technique de l’analyse de discours. Dans cette recherche, une attention particulière est prêtée à l’équilibre de pouvoir évoluant entre l’élite laïque et la nouvelle classe moyenne religieuse, ce qui remplace dans une certaine mesure la polarisation antérieure entre les élites républicaines et peuple. La nouvelle classe moyenne pieuse s’engage à bâtir son propre chemin à la modernité en affrontant les besoins non reconnus par le projet républicain séculaire et ses élites. Le cas de la Turquie révèle que l’occidentalisation ne constitue pas le seul chemin vers la modernité. Ce nouveau développement, s’il continue, sera parmi les plus importantes transformations à déterminer le futur du pays. L’étude cherche aussi à analyser la compatibilité entre le moral de travail chez les entrepreneurs pieux et le capitalisme dans le cas de Kayseri. Ce v travail va illustrer l’impact de l’héritage local et les valeurs religieuses sur l’activité économique. vi ACNOWLEDGEMENT Upon the completion of this thesis, I wish to express my gratitude to a number of people whose material and moral support have greatly contributed to the realization of this project. First and the foremost, I would like to acknowledge the readiness of my thesis supervisor, Professor A. Üner Turgay, who has constantly encouraged me in my research and allowed me the independence that I desired to accomplish this work. He has given me such valuable advice, comments and criticism throughout the course of my research. I have relied on his advice and guidance, both personal and academic. I wish also to thank Professors Wael Hallaq and Bilal Kuşpınar, for introducing me to the many branches of Islamic studies and for making it a pleasure to attend their lectures. I owe special thanks to Salwa Ferahian of the Institute of Islamic Studies Library for her invaluable help. I would like to thank Murat Yerlikhan, who provided me with many documents, newspapers, and articles about Kayseri. He was also the contact person who kindly arranged interviews with many entrepreneurs and workers in Kayseri. Without his help, it would not have been possible to conduct my interviews. I also thank Steve Millier and Charles Fletcher for helping me with the editing of this dissertation. I would also like to extend my special thanks to Hasher Majoka for his valuable comments as a friend and editor. Finally, I need to express my eternal gratitude to my husband Şefik Özoral. This thesis could not have been completed without his endless support. vii viii TABLE OF CONTENTS ABSTRACT iii RÉSUMÉ v ACKNOWLEDGEMENTS vii TABLE OF CONTENTS ix INRODUCTION 1. CHAPTER ONE 29. Theoretical Framework: Islamic economic ethics in the modern global economy I. Morality and Economic Realm 32. I.1. Separation of morality and economy 36. II. Intellectual and socio-economic background of the contradictions between Islam and modern capitalism 44. II.1. The roots of the antagonism between Islamic ethics and modern rational Capitalism 45. III.The main features of the Islamic economic ethics 47. III.1. Obligatory charity in Islam: Zakat 47. III.2. Prohibition of interest in Islam: The question of Riba 52. III.3. Voluntary charity in Islam 56. III.3.a. Sadaqa 57. III.3.b. Charitable institutions in Muslim societies: Waqf endowments 59. III.3.c. Centralization of Waqfs and the beginning of economic intervention by the West in markets in Muslim countries 65. 1. The effects of state centralization on Waqf in the Ottoman Empire 65. 2. Post-Colonial attitudes towards Waqf 67. IV. A discussion on the Islamic responses to modern Capitalism 72. V. The increasing role of Muslims in modern global economy 78. VI. Conclusion 79. ix CHAPTER TWO 81. Changing dynamics of Islamic discourse in a secular context: in The case of Turkey I. Transformation of the Socio-Economic life 81. II. Culture, religious values and economy 82. III. Historical context 83. III.1. From the Ottoman Empire to modern Turkey: The roots of economic ethics 83. III.1.a. Main characteristics of Ottoman-Turkish economic life 83. III.2. The effect of the Ahi-Fütüvvet Institution on the economic ethics in Ottoman society 87. III.2.a. The rise of Ahi institutions 90. III.2.b. The economic ethics of Ahism 92. III.2.c. The role of Ahi Institutions in socio-economic progress 97. IV. Changing economic ethics: Towards modernization in the Turkish economy 99. IV.1. Emergence of the “Missing” Bourgeoisie Class 99. IV.2. A new era: Islamic finance enters the Turkish economic sector 107. IV.3. The rise of Islamic corporations in Turkey: “Anatolian Tigers” 112. IV.4. Anatomy of the “Anatolian Tigers” in Turkey 115. IV.4.a. Cultural and social dimensions 115. IV.4.b. Production patterns at the local level 117. IV.5. The Rising Power of “Islamic Capital” 120. V. Conclusion 122. CHAPTER THREE The making of modern Islamic identity in Turkey and its main actors 125. I. The correlation between economic progress and political empowerment 125. I.1. The identity transformation of the religious circle in Turkey 125. x II. Emergence of Different Features of Islamism in Turkey and Its Main Actors 128. II.1. The AKP 128. II.1.a. Economic empowerment 134. II.1.b. Political balance under the AKP 137. II.1.c. Criticism of the AKP Government 139. II.2. MÜSİAD: Change and Continuity in a Political-Economic Context 141. II.3. The New Pious Economic Elites under the Challenge of Capitalism: Changing Dynamics among Pious Muslim Groups in Turkey: New Patterns of Consumption and Life Styles 151. III. Contradictions and Oppositions in the New Turkey 157. IV. Conclusion 160. CHAPTER FOUR 163. Kayseri: Between Tradition and Modernity I. Contextualizing Kayseri 163. I.1. Combining strict piety with raging entrepreneurship 163. I.2. Characteristics of the City 172. I.2.a.Historical background of Kayseri 172. I.2.b.Economic improvement in Kayseri 181. I.2.c.The Characteristics of SMEs in Kayseri 185. I.3. Analyzing the religious identities of Kayseri 188. I.4. Kayseri “Settings” as a traditional cultural element 194. I.5. Political Identity of Kayseri 196. CHAPTER FIVE 201. Summary and Findings 201. I. Socio-cultural analysis of religiously conservative entrepreneurs 201. I.1. Education levels of the owners of companies 201. I.2. Role of religious ethics in business life 202. xi I.3. Attitudes towards wealth and charity 203. I.4. Changing lifestyles of pious businessmen 205. I.5. Importance of Religious Identity in the work environment 206. I.6. Motivation and success in commercial life in Kayseri 208. I.7. Cultural life in Kayseri 209. I.8. Differences between the ‘Anatolian Tigers’ and other entrepreneurs 210. I.9. How does the prohibition of interest in Islam impact economic activities in Kayseri? 212. I.10. The role and the place of Muslim Women in economic Life 214.
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