Outline for the Article/Chapter

Title of Article/Chapter: Ottoman State Finances in European Perspective

Brief overview: Under Selim III and Mahmud II in particular, the Ottoman Empire experienced
difficulties implementing centralized changes in the areas of finance, military, and administration.
Advancement was hampered by Janissaries' resistance and local uprisings. Mahmud II overthrew the
Janissaries in 1826 and ended the timar system in 1831, but he continued to face financial difficulties
as a result of wars and local uprisings.

The 1820s brought about reforms in the areas of administration, justice, and education, which raised
the need for resources. Inflation was brought on by ongoing budget deficits, which prompted domestic
borrowing and currency depreciation. The goal of Mahmud II's "defensive modernization" was to
survive military setbacks.

Centralizing tax collection was the Tanzimat era's main goal, but in 1854, financial strains from the
Crimean War forced Europe to borrow money. The Ottoman Public Debt Administration was
established in 1881 after a debt moratorium was imposed in 1876 due to the country's rapid debt
buildup.

The Ottoman Empire's fiscal and military capabilities trailed behind those of European powers
because of their earlier economic growth and centralization, even while centralization enhanced state
income. An examination of 1840s budget documents reveals initiatives to improve and fortify the
Empire's financial standing.

Importance of understanding the subject matter: It is important to comprehend the

centralization and reform initiatives of the Ottoman Empire because they illustrate the
difficulties in modernizing a heterogeneous empire in the face of both internal and foreign
challenges. Important factors include financial difficulties, opposition from local and military
leaders, and the effects of inflation and currency depreciation on the economy. The notion of
"defensive modernization" corresponds with international tendencies observed in Japan and
Russia. The financial entanglements impacting the sovereignty of the Empire are made
evident by the difficulties in changing tax systems and the dependency on European loans.
These historical events highlight how maintaining an empire requires a delicate balance
between political, economic, and military considerations.

Purpose of the article/chapter: This article/chapter's goal is to examine the Ottoman

Empire's late 18th- and early 19th-century attempts at reform and centralization. It looks at
the difficulties the central government had putting these changes into effect in the face of
internal opposition, military setbacks, and pressure from the economy, especially under Selim
III and Mahmud II. The essay compares these reforms to comparable modernization
initiatives in Russia and Japan in order to demonstrate the effects of these changes on the
empire's financial stability, military might, and administrative organization. It seeks to offer a
thorough grasp of the elements that shaped the Ottoman Empire's efforts to modernize and
preserve its sovereignty in the face of substantial upheaval and outside challenges.

Contextual information: The Ottoman Empire faced internal opposition and outside pressure
as it attempted to centralize and implement reforms in the late 18th and early 19th century.
Important reforms implemented under Sultans Mahmud II and Selim III sought to enhance
central control, modernize the armed forces, and improve the state of the economy. The
empire saw rising military spending, depreciated currency, and budget deficits even after
disbanding the Janissaries and performing the first modern census. In response to military
threats and territorial losses, defensive modernization is a larger trend that includes these
activities.

Key terms or concepts: Middle east, Worl War 1, GDP, income, finance, tax, Europe,
centralism, modern age, capitas.

Historical framework: Under Sultans Selim III and Mahmud II, the Ottoman Empire made
attempts to reorganize and concentrate its military and government in the late 18th and early
19th centuries. The timar system and the elimination of the Janissaries were two notable
reforms that were implemented in spite of opposition. Devaluing the currency and borrowing
from European markets resulted from financial difficulties caused by conflicts and reforms.

Principal Section 1: Revenue Sources Allotted to the Central Treasury

• The tax farm system, or mukataa.

• Customs and business taxes; income from monopolies (mines, salt pans, and mints); and
revenues from agriculture.
• Taxes on Avariz and Jizya.
• Incomes from farming and rural areas.
These resources are used by Sipahis for both military and administrative tasks.
• The history and advantages of the timar system.

Main Section 2: Ottoman State Finance During Two Principal Periods:

• The rise of local powers and the fall of central government authority from the start of the
19th century to the end of the 18th century;
• The centralism era from the middle of the 15th century to the end of the 16th century.

Main Part 3: II. Mehmed's Financial Reforms:

Raising taxes, establishing governmental monopolies, and seizing property.

bolstering the federal government and taking economic action.
Currency deformations and the fallout.
Ottoman cavalry's decline in effectiveness and the need for standing armies.
preference for tax-farming configurations.
borrowing domestically and growing the tax farm system.

Main Chapter 4: Financial Reforms in the Late 17th and 18th Centuries:

 Reforms and financial challenges following the Siege of Vienna in 1683.

Establishing and executing the manor system.
The manorial system's long-term failure.
financial changes with the 1768–1774 war and the implementation of the esham
system.

Main Part 5: Examination of Ottoman Budgets:

Introduction of "ex-post budgets," which were created in the early modern era by the Ottoman
central government.
Assembling historical records from the years 1523–1788.
Main Part 6: Comparison of Ottoman and European Revenues:

Total income of the Ottoman Empire and the nations of Europe.

Ottoman incomes in the nineteenth century were on par with those of nations in Europe.
With the exception of Spain and France, Ottoman revenues exceeded those of all other
European governments during the 19th century.
A level of income consistent with the Ottoman military's 16th-century achievements.
A comparison between the Ottoman central government's per capita tax collections and those
of European governments.

Main Part 7: Ottoman Financial Crisis and Its Consequences:

Financial problems in the Ottoman Empire from 1760 until 1830.

Exchange of currencies, high taxation, and state debt management.
reduction in both external and internal security, as well as detrimental repercussions on
economic growth.

Conclusion

A.Evidence from nations across Europe. The effect of state consolidation on fiscal
centralization.

B.Institutional components that the Middle East/Central Asian customs and the European
state system left behind for the Ottoman Empire. Ottoman central government's tax income
series (16th to 19th century). the connection between institutional modifications, economic
progress, and financial success.

C.A sequence of the central treasury's yearly cash income (from the start of the 16th century
to World War I). Growth in marginal income from the 1780s to the 1560s. revenue increased
by more than fifteen times between the 1780s and the First World War.

D.Estimated tax income per capita expressed in silver grams. modifications to income and
pricing. obtaining long-term financial success in the twenty-first century.