Capitulation and Siyasah Syar’iyah Al-Maliyah Impact on Economic Stability of the 18th & 19th Ottoman Turks

Desmadi Saharuddin, Meirison Meirison, Inayatul Chusna, Ade Sofyan Mulazid

Abstract


Free trade and foreign investment that characterize the 21st Century trade and business model do not benefit all parties, particularly Islamic countries. Only those who have well-established economic system and large capital gain the most benefit. This condition had occurred during the Ottoman Khalifah. Therefore, this article aims to prove that free trade and foreign investment during the Ottoman, in the form of capitulation, brought negative impact on the Ottoman’s economy and politics. Capitulation is an agreement between the Ottoman and Western European countries that regulated economic and legal sectors by giving privilege to the European countries to come and trade in the Ottoman. The Ottoman became a free market place that eliminated the Islamic economic system. The Ottoman saw the agreement as its Siyasah Syar’iyah Al-Maliyah to protect the political sovereignty when facing European countries. Once the agreement benefited the Ottoman, later it caused economic political problems. The domestic industries faced difficulty when competing with foreign trades. The Ottoman government did not have full authority over the law and justice of the Europeans in the Ottoman. The capitulation that was expected by the Ottoman to protect its economy and politics had put the country under the domination of Western Europe. What happened to the Ottoman is proof that the free market is only beneficial to developed countries with active industries. Therefore, this historical fact should be reference for Islamic countries in conducting their foreign economic system.


Keywords


Capitulation, Ottoman Turks, free-trade, eestern countries.

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DOI: http://dx.doi.org/10.21043/qijis.v7i2.4847

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