The New Ottoman Public Debt Administration Shadow in Turkey: Anatomy of Collapse

The New Ottoman Public Debt Administration Shadow in Turkey: Anatomy of Collapse

 

The final periods of the Ottoman Empire present a striking example of how a state can decay from within. The practice of granting governorships to pashas through bribery, under the name of "iltizam" (tax farming), had turned the state's most fundamental source of income into a quagmire. The province of Aleppo was concrete evidence of this decay: pashas, indebted by 200,000 gold coins, appointed the Armenian moneylender's accountant as "Director of Finance" and ruthlessly levied taxes to collect 500,000 gold coins from the people. The tax collection activity was an organized system of plunder that had infiltrated the state's official structure; it was the rise of a class that enriched itself at the expense of the people.

 

Paralysis of Production and the Shadow of Rebellions

Heavy taxation completely destroyed the people's motivation to produce. Farmers tilling their fields and livestock breeders raising ten cows were subjected to such heavy taxes that all basic production sectors, including agriculture, animal husbandry, weaving, tile-making, and blacksmithing, became paralyzed. The desperation of the people, cut off from production, hungry, and unemployed, combined with deep anger towards the central authority, triggered the "Celali rebellions."

The rebellions were not merely acts of defiance but social explosions that paved the way for the state's collapse and the country's occupation; they were a bitter indicator of the complete breakdown of the people's trust and loyalty to the state, and how the nation was driven to despair.

 

Today's Bitter Reality: Architects of Deliberate Collapse and Tax Injustice

Today, we can easily observe a similar process of economic collapse beginning to unfold. Unbelievable predictions, such as Sir Mehmet Şimşek's mission being to accelerate the collapse, or even that the economy is being "deliberately collapsed for certain political goals," cloud the mind. Deep concern that national interests are being sacrificed for political calculations is like pawns being sacrificed on a chessboard.

The Ministry of Finance "erasing the taxes of cronies" while suffocating small businesses, merchants, and entrepreneurs is not merely an injustice but a systemic problem that erodes the state's tax collection capacity, increases budget deficits, and multiplies the burden on honest taxpayers. We must confront the reality that the promises of "Justice and Development" have turned into deception or empty words, as both justice and development have been "collapsed."

Systemic decay fundamentally shakes the legitimacy of the state and the people's trust in it. A process that begins with small corruptions can eventually seize control of the entire state mechanism and lead to irreversible degradation.

 

Concrete Reflections of Economic Destruction: The Devastating Effect of Capital and Brain Drain

The concrete effects of the current economic crisis are evident in the deep loss of trust in the business world. Businesspeople are selling their assets and fleeing abroad, destroying not only the current situation but also the country's future economic potential, job creation capacity, and international competitiveness. The relocation of textile firms to countries like Egypt is a concrete example of "capital flight" and "brain drain"; the departure of skilled labor and financial resources from the country hinders innovation and production, making the country dependent on foreign sources.

The collapse of half of the companies in Laleli and Merter, important trade centers in Istanbul, their declaration of concordat, and the emptying of the streets, show that the crisis is not limited to macroeconomic data but directly impacts commercial life, employment, and local economies, while economic contraction increases unemployment, deepens poverty, and reduces social welfare.

 

As the Foundations of the State Tremble: In the Shadow of National Sovereignty

Economic collapse shakes not only commercial life but also the fundamental structures of the state and the social fabric. The collapse of the artisan and merchant class, seen as the "fortress of the state," reveals how local economies and the existence of the middle class are being threatened. The rebellion of ordinary citizens with statements like, "Corrupt politicians and corrupt businessmen, along with the mafia, have plundered the country," is not merely an accusation but a systemic problem that demonstrates how organized crime, having infiltrated state institutions, destroys the rule of law and exploits the country's resources.

Analogies such as "They descended upon us like Public Debt Administration officials" evoke the loss of economic independence and foreign intervention in the late Ottoman period, expressing the dire extent to which the current situation has reached in terms of national sovereignty. The problem is not only economic but also reinforces the perception that political independence is in danger. The expression, "The Republic of Turkey and the Turkish Nation are struggling in the hands of the illegitimate ones!" is not merely an observation but reflects the deep despair, helplessness, and anxiety about the future felt by the people.

 

Who is Responsible? In the Shadow of the "Sultan" and the "Hitman": A Leadership Crisis

Criticism directed at those responsible for the current economic and political crisis deepens with the characterization of Sir Mehmet Şimşek as a "hitman," implying that he is merely an implementer, and that another "sultan" figure is behind the real decisions and policies. Criticisms such as "a deliberate mistake" underline the intention, implying that the situation is not merely a failure but the result of conscious choice and political strategy.

Now, criticisms target not only economic policies but also the country's governance, decision-making processes, and political responsibility, aiming at an "authoritarian rule" and "irresponsible leadership" management model that completely destroys faith in political leaders.

The process we are experiencing, how similar it is to the events that led the Ottoman Empire to ruin, starting with the Public Debt Administration, isn't it?

History repeats itself if lessons are not learned!

 

SADİ ÖZGÜL