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The Agricultural Credit System in the Ottoman Empire between 1863 and 1888

Published online by Cambridge University Press:  03 October 2017

SERTAÇ DOKUZLU
SERTAÇ DOKUZLU*
Affiliation:
Uludag University, Agricultural Faculty, Department of Agricultural Economics, Bursa / [email protected]
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Abstract

Agricultural credit organisations are paramount to every country because agriculture must operate under threats of risk and uncertainty. When small-scale family farms are dominant, all types of agricultural organisations become important to keep farmers’ incomes at a reasonable level and encourage agricultural development. Midhat Pasha understood the importance of agricultural organisations, and he created a well-designed system for agricultural credit. He is the founder of Homeland Coffers that distribute credits to farmers. The original side of these credit organisations was capital accumulation and the methods of using it. Capital for these Coffers were provided by the joint actions of credit users. Midhat Pasha connected two cooperatives while the production cooperative provided capital for Homeland Coffers, they operated as a credit cooperative for twenty-five years in the Ottoman Empire. This credit organisation helped development of agriculture and provided many social benefits to the rural area.

Type
Research Article
Information
Rural History , Volume 28 , Issue 2 , October 2017 , pp. 177 - 188
Copyright
Copyright © Cambridge University Press 2017 

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References

Notes

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