Building an Ottoman National Economy

Abstract This article reveals late Ottoman (1876–1908) debates over agrarian policy in the empire’s Arab provinces that set the parameters for a fully articulated discourse of national economy emerging after the constitutional revolution of 1908. Debates between imperial officials, regional capitalists and foreign consular agents produced protectionist restrictions on the newly constructed agrarian land market, especially in an extended geography encompassing Palestine and the Hijaz Railway. Ottoman officials viewed the Arab provinces both as an untapped resource and as a possible alternative base in the event of Anatolia’s occupation. Restrictions on the land market constructed Muslim cultivators as ideal landholders and non-Muslim subjects, both Christian and Jewish, as potentially suspect and unfit for landholding. Protectionist and exclusionary agrarian policies responded to a wider context of imperial capitalism in which Ottoman officials occupied a subordinate, but still sovereign, position. These policies had an unrecognized legacy in the colonial and postcolonial Middle East, creating a durable state domain that aimed to shield large swaths of land as territory from foreign investment and occupation. The much-discussed work of Frederick List on national economy focused on practices of import substitution and tariffs with empirical examples culled mainly from the United States and Germany. In the Ottoman Empire, in contrast, agrarian policy played a crucial role in practices of national economy because of the urgent prerogative to maintain territorial sovereignty in the face of imminent colonial expansion. The article suggests a reappraisal of the contributions of Ottoman policy debates to the broader history of capitalism.