Changes

The Ottoman Empire’s economy was much influenced by Muslim economic theories. These favoured state intervention, protectionism and frowned upon the profit motive. The Ottoman reformers knew that realized they had to liberalize the economy if they were wanted to have the resources generate sufficient capital to contend with the EuropeansEuropean nations. The Tanzimat reforms attempted to introduce many ambitious a series of economic and financial reforms, including the abolition of guilds, free trade, the right to private property and a new tax system. New banks were established, despite the Islamic religious elite denouncing interest payments as Riba or usury, which since it was contrary to the Koran. The Sultan and his government also began to move moved towards the lifting of barriers on trade and abandoned protectionism. The Ottoman government in order to implement their secular projects as part of the Tanzimat Reforms, established courts that oversaw economic regulation. The Napoleonic Trade Laws were adopted from the 1850s.<ref>Hanioglu, M. Sukru. ''A Brief History of the Late Ottoman Empire'' (Princeton, Princeton University Press, 2008), p. 141. </ref> The Islamic courts still issues decrees on Sharia Law, both in urban and tribal areas, but increasingly they were unable to arbitrate in the areas of economic regulation. These changes were all designed to develop the Ottoman Economy. The changes made were all based on the western model. This was partly because the Ottoman Caliph sought to replicate the policies of the western governments to become as powerful as they had in recent decades.<ref>Jason Goodwin, ''Lords of the Horizons: A History of the Ottoman Empire''. (Penguin Books, Hamondsworth,2003, p. 189.</ref>

The reforms had a real but limited impact on the Ottoman Empire. The education system was completely secularized and a . A new secular elite was to receive their created through the education in this the new schools. The economic reforms did change the nature of the Ottoman Economy and ended the religious regulation of the economy. The economic changes brought a measure of prosperity to the population. This was mainly because as the Turks traded more with Europeans they had access to new technologies and this helped to modernize the economy. Many of the inhabitants lives in the Empire were not really changed . It should be noted that while Banks were established and modern economic practices were introduced the majority for the population were not impacted upon. The rights of individual citizens were technically improved but in reality the Sultan still had almost unlimited power over his subjects. Furthermore, the Sultan remained the absolute rule of the Empire. The reforms had changed the Empire but it had failed to modernize the realm. The Ottomans still had failed to modernize their country and they remained behind their European neighbours, to whom they continued to lose territory, in the Balkans.

The Ottoman Government was forced to adopt economic reforms in order to ensure that it had the sufficient resources to compete with the western powers. They adopted modernizing and secularizing policies in order to transform the economy. The reforms were radical and contrary to the Muslim ethos of the Empire and the Islamic scholars. The Ottoman Government was able to impose its will on an often reluctant population, as it bid to make the changes necessary to ensure the survival of the Empire. The reform projects were only partially successfully as they failed to modernize the realm and ensure its survival beyond World War I.