Turkish Economies
A history of trade and commerce in Turkey.
Economy of the Seljuk Sultanate
The first Turkish peoples migrating out of Central Asia primarily followed a nomadic herding lifestyle. They accompanied herds of sheep and goats by horse and camel, moving between pastures as needed. Others led more sedentary lives, growing cereals and other staple crops to trade with the nomads and foreign merchants. Young warriors might serve their own clans or work as mercenaries, including for the Byzantine Empire. Through conquest, raids, agriculture, and trade, the early Anatolian Turks formed a number of small kingdoms, or beyliks, with the largest being the Seljuks and their offshoot, the Sultanate of Rum.
The Seljuks controlled the lands of many people, including settled populations like the Armenians. They built a new economy that benefited from Byzantine trade routes and the manufacturing skills of their subjects. They conducted trade by both land and sea and built caravansaries, or merchant inns, along roads for their protection. Camels, mules, and horses carried their goods to cities like Baghdad, Tabriz, and Constantinople, while ships took them as far as medieval Europe.
Ottoman Empire Economics
When the Ottoman Turks took over former Seljuk territories, they inherited a rich economic tradition. They recognized the critical importance of controlling the Bosporus Strait, which connects the Black Sea to the Mediterranean. This strait had been a commercial hub for over a thousand years. Its major city, Constantinople, sat at the heart of the Eastern Roman Empire, connecting the Silk Road of China to the markets of Europe and the Middle East. By the 15th century, however, the city had lost its global prominence. A devastating sack by Christian forces in the Fourth Crusade and growing competition from Italian city-states both reduced its economic might.
After toppling the city in 1453, the Ottomans worked to revitalize the area’s economy. Like the Seljuks before them, Ottoman sultans funded caravansaries along major trade routes. Their cities housed merchants of many faiths and backgrounds, each with their own specialties and networks of connections to contribute. As a general rule, Christian and Jewish citizens were more likely to engage in external trade than Muslims. Some bought, produced, or sold luxury items. Others purchased raw goods from peasant farmers and exported them in bulk.
For the most part, the Ottoman economy remained agricultural through the 20th century. Its major exports included wheat, barley, textiles, opium, grapes, figs, wool, and tobacco. Nevertheless, urban centers continued to develop economically. Cairo in particular boomed through the cotton trade. The Ottoman state closely supervised its commerce through taxes, regulations, education, and sponsorship of trade guilds. This led to a competitive environment with opportunities for upward mobility, as well as a large and sophisticated bureaucracy.
Modern Economics in Turkey
The Ottomans were generally a prosperous state, but they failed to keep up with industrialization. In addition, the fact that so many of their merchants were ethnic or religious minorities encouraged the gradual splintering of the empire. When the modern Republic of Turkey emerged in 1923, its strongest industries were still textile manufacturing and agriculture. In the decades that followed, the nation has alternated between periods of growing industry and economic instability. Unlike many other Middle Eastern nations, it possesses no major oil reserves and is reliant on energy imports. Balancing these imports, exports, foreign investments, and the value of the Turkish lira are all central to Turkey’s modern economic plan. In recent decades, the nation has made efforts to join the European Union, an ongoing process.
References
Cahen, Claude. The Formation of Turkey: The Seljukid Sultanate of Rum: Eleventh to Fourteenth Century. Routledge. 2014.
Faroqhi, Suraiya, Bruce McGowan, and Sevket Pamuk. An Economic and Social History of the Ottoman Empire, 1300-1914. Cambridge University Press. 1994.
Faroqhi, Suraiya. Subjects of the Sultan: Culture and Daily Life in the Ottoman Empire. I.B. Tauris. 2005.
Finkel, Caroline. Osman’s Dream: The History of the Ottoman Empire. Basic Books. 2005.
Howard, Douglas Arthur. The History of Turkey. Greenwood Press. 2001.
Kandiyoti, Deniz and Ayşe Saktanber, eds. Fragments of Culture: The Everyday of Modern Turkey. I.B. Tauris. 2002.
Pamuk, Sevket. The Ottoman Empire and European Capitalism, 1820-1913: Trade, Investment and Production. Cambridge University Press. 1987.
“The World Factbook: TURKEY.” Central Intelligence Agency, Central Intelligence Agency, 20 June 2018, www.cia.gov/library/publications/the-world-factbook/geos/tu.html.
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