Economy of the Ottoman Empire

Economic history of the Ottoman Empire covers the period 1299–1923. The economic history falls into two distinctive sub periods. The first is the classic era (enlargement), which comprised a closed agricultural economy, showing regional distinctions within the empire. The Second period was the reformation era that comprised state organized reforms, commencing with administrative and political structures through to state and public functions. Change began with military reforms extending to military associated guilds (Ottoman: لنكا) and public craft guilds.

The Ottomans saw military expansion and fiscalism as the main source of wealth, with agriculture seen as more important than manufacture and commerce.[1] Western mercantilists gave more emphasis to manufacture and industry in the wealth-power-wealth equation, moving towards capitalist economics comprising expanding industries and markets whereas the Ottomans continued along the trajectory of territorial expansion, traditional monopolies, conservative land holding and agriculture.

The quality of both land and sea transport was driven primarily by the efforts of the Ottoman administration over this time. As a result, the quality of transport infrastructure varied significantly over time depending on the current administration's efficacy. The story of transport in the empire should not be seen as one of continual improvement. Indeed, the road infrastructure was significantly better in the 16th century than it was in the 18th century.

In Anatolia the Ottomans inherited a network of caravanserai (also known as hans) from the Selçuk Turks that preceded them. It was in the interest of the empire to ensure the safety of couriers and convoys and by extension merchant caravans. The caravanserai network was extended into the Balkans and provided safe lodgings for merchants and their animals.

The Jelali revolts of the 16th and 17th centuries did much to disrupt the land transport network in Anatolia. The empire could no longer ensure the safety of merchants who then had to negotiate safe passage with the local leader of the area they were travelling through. Only in the 18th century with concerted efforts to improve the safety of the caravanserai network and the reorganization of a corps of pass-guards did land transport in Anatolia improve.

The empire did not take an active interest in sea trade preferring a free-market system from which they could draw a tax revenue. However such laissez-faire policies were not always followed. For example, under Hadim Suleyman Pasha's tenure as Grand Vizier till 1544, the Ottoman administration was directly involved in the spice trade with the aim of increasing revenue. However such policies were often repealed by their successors.

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