History of Ottoman Tobacco Sector from the Perspective of Economic Mindset

In this study, the process of moving away from the Ottoman mindset principles was analyzed through the developments in the Ottoman tobacco sector. The institutional structuring of the state in the Ottoman tobacco sector did not go beyond the taxation of the sector. On the other hand, depending on the economic developments in the XVIIIth century, it was observed that the conditions for the market relations were formed in the Ottoman tobacco sector. The successful organization of the Ottoman tobacco sector in the enterprises under the name of "farm" (çiftlik), where production for the market was carried out, led to the limitation of the principle of fiscalism and to the departure from other principles. The beginning of foreign borrowing of the Ottoman Empire in the second half of the XIXth century is a turning point in the institutional history of the tobacco industry. Both the repayment of government debts and the transfer of a share to the government from their own revenues by the Düyun-ı Umumiye Administration and Reji Company, which were established in this process were evaluated within the scope of fiscalism. On the other hand, the flexible attitude of the state in the struggle against tobacco smuggling shows that priority is given to ensuring the livelihood of the people within the framework of the iaşe (subsistence). It can be accepted that the expenses made for the struggle against smuggling reduce the share of tobacco revenues to be transferred to the state, but this situation compromises the fiscalism for the sake of the iaşe.