2.2 European economic and political penetration

European powers gradually tightened their grip on the Ottoman Empire through economic and political means. Capitulations, debt, and informal empire allowed them to exert control without direct colonization, weakening Ottoman sovereignty and finances.

The Ottomans attempted reforms to modernize and resist European encroachment, but these efforts fell short. Meanwhile, European nations colonized North Africa and made strategic moves to secure their interests in the region.

Economic Concessions and Influence

Capitulations and Extraterritoriality

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• Capitulations granted special privileges to European merchants in Ottoman Empire
• Included exemptions from local taxes and laws
• Allowed European powers to establish separate legal systems for their citizens
• Extraterritoriality extended legal immunity to foreign nationals
• Undermined Ottoman sovereignty and economic control
• Created dual legal system favoring Europeans over Ottoman subjects

Financial Control and Debt

• Ottoman Public Debt Administration established in 1881 to manage Ottoman debt
• Controlled significant portion of Ottoman revenue to repay European creditors
• Reduced Ottoman government's financial autonomy
• Concessions granted to European companies for infrastructure projects
• Included railroads, ports, and natural resource extraction
• Further increased European economic influence in Ottoman territories

Informal Empire and Spheres of Influence

• Informal empire exerted control through economic and political pressure
• Avoided direct colonization while maintaining influence
• Spheres of influence divided Ottoman territories among European powers
• Each power gained preferential economic and political rights in designated areas
• Created competition between European nations for Ottoman resources
• Weakened Ottoman central authority and accelerated decline

Ottoman Reforms and Decline

Tanzimat Reforms and Modernization Efforts

• Tanzimat reforms initiated in 1839 to modernize Ottoman Empire
• Aimed to centralize government and improve administration
• Introduced new legal codes based on European models
• Reformed education system to include Western-style schools
• Reorganized military along European lines
• Attempted to create Ottoman citizenship regardless of religion or ethnicity
• Faced resistance from conservative elements and religious authorities

Challenges and Decline

• Reforms failed to fully address underlying structural problems
• Ottoman economy remained weak and dependent on European imports
• Military modernization proved costly and ineffective
• Growing nationalism among ethnic minorities threatened imperial unity
• Continued territorial losses weakened Ottoman prestige and power
• Eastern Question emerged as European powers debated fate of Ottoman Empire
• Diplomatic maneuvering by European nations to gain advantage in Ottoman decline
• Balkan crises and Russian expansionism further complicated Ottoman position

European Colonization

North African Colonization

• French colonization of Algeria began in 1830
• Used pretext of diplomatic incident to launch invasion
• Established direct rule and settler colony in Algeria
• Algerian resistance led by Abd al-Qadir lasted until 1847
• British occupation of Egypt in 1882 followed financial crisis
• Initially temporary intervention became long-term occupation
• British controlled Egyptian finances and foreign policy

Strategic Acquisitions and Agreements

• Suez Canal opened in 1869, connecting Mediterranean to Red Sea
• Financed by French and Egyptian investment
• British government purchased Egypt's shares in 1875
• Became vital strategic asset for British Empire
• Berlin Conference of 1884-1885 regulated European colonization in Africa
• Established rules for claiming territories and resolving disputes
• Sykes-Picot Agreement of 1916 secretly divided Ottoman territories
• Allocated future spheres of influence to Britain and France
• Laid groundwork for post-World War I Middle East borders