Decline of the Ottoman Economy

axation was not applied uniformly throughout the empire, usually between 10-20%. Taxation on Muslims was done with tithes, non-Moslems paid a poll tax. There were also numerous taxes in everyday life which Moslem and non-Moslems paid, marriage tax. After Mehmed II, the job of tax collection was given to the highest bidder. There were two Treasuries, one for the government and another for the sultan.The sultan received a fifth of all booty, a 10 % death tax and all property of civil servants on their death in addition to the numerous luxurious gifts he received sultan owned all lands except for those of the mosques. Official registers were kept of all the animals,crops of the large timar and zimat military fiefs.

Decline of the Ottoman Economy

The Ottoman and Malmuk stranglehold on trade with the East and their excessive markups caused Europeans to seek other routes to Asia, launching the Age of Discovery and the international trade which flowed through the empire declined . Also, the silver which poured in from the New World caused inflation and other economic troubles for the empire, which was based on a silver standard.

In 1600, the Ottoman empire was an important market for Europeans, by 1900 it was much less important. Internal trade was more important than international . Industrial Manufacturing emerged in the 1850s with the production of Oriental carpets for domestic and international sale.

The principal industries of the early empire were geared toward producing war materials and brought prosperity. It has been estimated that there was a population of 25-30 million in the Ottoman Empire in 1800, as the empire became reduced, the population was about 26 million by 1914. A great bulk of the empire's population was in Turkish held Europe - the Balkans.throughout