7 OF 8

External Threats and Internal Transformations

The Ottoman Empire had a dual economy in the nineteenth century consisting of a large subsistence sector and a small colonial-style commercial sector linked to European markets and controlled by foreign interests. The empire's first railroads, for example, were built by foreign investors to bring the cash crops of Anatolia's coastal valleys--tobacco, grapes, and other fruit--to Smyrna (Izmir) for processing and export. The cost of maintaining a modern army without a thorough reform of economic institutions caused expenditures to be made in excess of tax revenues. Heavy borrowing from foreign banks in the 1870s to reinforce the treasury and the undertaking of new loans to pay the interest on older ones created a financial crisis that in 1881 obliged the Porte to surrender administration of the Ottoman debt to a commission representing foreign investors. The debt commission collected public revenues and transferred the receipts directly to creditors in Europe.

The 1860s and early 1870s saw the emergence of the Young Ottoman movement among Western-oriented intellectuals who wanted to see the empire accepted as an equal by the European powers. They sought to adopt Western political institutions, including an efficient centralized government, an elected parliament, and a written constitution. The "Ottomanism" they advocated also called for an integrated dynastic state that would subordinate Islam to secular interests and allow non-Muslim subjects to participate in representative parliamentary institutions.

In 1876 the hapless sultan was deposed by a fetva (legal opinion) obtained by Midhat Pasha, a reformist minister sympathetic to the aims of the Young Ottomans. His successor, Abdül Hamid II (r. 1876-1909), came to the throne with the approval of Midhat and other reformers. In December of that year, on the eve of the war with Russia, the new sultan promulgated a constitution, based on European models, that had been drafted by senior political, military, and religious officials under Midhat's direction. Embodying the substance of the Young Ottoman program, this document created a representative parliament, guaranteed religious liberty, and provided for enlarged freedom of expression. Abdül Hamid II's acceptance of constitutionalism was a temporary tactical expedient to gain the throne, however. Midhat was dismissed in February 1877 and was later murdered. The sultan called the empire's first parliament but dissolved it within a year.

7 OF 8