growth and retardation in the ottoman economy, the case of ottoman selanik, 1876-1912 by ahmet ...

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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
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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 of loneliness has been like a ball and
chain restraining ambition, as much of 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 of 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 Boom and the Growth of Salonica.......................................261
3.1. Regional Trends and Patterns .........................................................261
3.2. The Growth of Salonica............... 265
4. The Growth and Transformation of the Manufacturing Industry....................278
4.1. Dynamics of Industrial Growth and the Rise of the Factory
System.......................................................... 283
4.2. Artisanal Manufacturing........................................................................300
Conclusion...................................................................................................................309
7. AFTERWORD.........................................................................................................313
8. APPENDIX
Appendix 1: Tax Revenues and the Estimation of the Real Tax-Base...............319
Appendix 2: Provincial Population and the Number of Households in Selanik...322
Appendix 3: Cereal Exports from Salonica..............................................................323
Appendix 4: Cash Crop Prices in Salonica..............................................................324
Appendix 5: Agricultural Bank Credits....................................................................325
Appendix 6: Real Estate Ownership in Salonica.....................................................328
Appendix 7: Shipping in Selanik...............................................................................329
9. BIBLIOGRAPHY.....................................................................................................330
ACKNOWLEDGEMENTS
Over the past six years, many people put much effort, care and trust into this
study.
I would like to thank my supervisor, Dr. Peter Howlett, for all the support and
guidance he has given me since my early M.Sc. days at the LSE. Peter read virtually
everything I wrote during the course of research and made key comments that helped
improve the clarity and consistency of my arguments. Without his criticisms and
insight, this thesis would have been prone to serious weaknesses.
Mere acknowledgement cannot express the debt I owe Professor Engin D.
Akarli of Brown University, who was a constant source of support, encouragement and
inspiration. I was fortunate enough to benefit from his in-depth knowledge of theoretical
issues and his vast experience in Ottoman studies. His advice gave me direction and
perspective at seemingly impossible moments.
I would also like to thank the many other distinguished academics who
contributed, in different ways, to the current study. Professor Donald Quataert and Dr.
Oktar Ttirel read the early drafts of the thesis and made useful comments, which helped
me formulate the broad conceptual and historical framework of the thesis.
Dr. Halil Berktay, Professor §evket Pamuk and Professor Zafer Toprak
generously gave me the much needed financial support and professional guidance
during my term of tenure at the Ataturk Institute of Modem Turkish History at Bogazi9i
University in Istanbul during 1995/1996.
I would also like to thank the staff of British Library of Political and Economic
Sciences, SOAS library, British Library, Bogazi9i University Library, Public Record
Office, Prime Ministry Archives in Istanbul, Hakki Tank Uz Library, Ataturk
Kiituphanesi, and the French Institute of Anatolian Studies for their help and
cooperation during my research.