The Evaluation of Financial and Commercial Relations In 17th Century Istanbul with Social Network Analysis (SNA)
Halime AlkanStatistical and econometric methods are increasingly used worldwide in the field of economic history. In this study, in accordance with this general trend, the financial (credit) and commercial transactions carried out in Istanbul in the 17th century are examined using social network analysis (SNA) within the framework of a belief-based classification. . Our research sought to determine who the key players were in the economic relations of the period. In this context, the kadi registers of Istanbul Central and Galata courts, which were located in the two busiest commercial districts of the Ottoman capital Istanbul between 1602-1697 were used. The Ottoman kadi registers were evaluated in terms of social and economic aspects and the dynamics of social relations were put forward. In addition, the SNA applications used in different studies in the field of Ottoman history and economics in the literature were given a new example in the context of Ottoman economic history. In this context, firstly, the transactions carried out in the context of financial and commercial relations in the Ottoman Empire in the 17th century were mentioned, then information was given about social network analysis, and, finally, the literature on its applications in various fields was mentioned. Then, the empirical part of the study was carried out to reveal the prominent names in terms of the intensity of economic relations and capital accumulation. According to the results obtained in the evaluation for the periods 1602-1619 and 1661- 1697, in the first period, while the weight of Muslim elements was seen in terms of persons, statesmen and foundations in financial relations, Christian elements came into prominence in commercial transactions. In the second period, Christians were more active in commercial and financial relations.
17. Yüzyıl İstanbul’unda Finansal ve Ticari İlişkilerin Sosyal Ağ Analizi (SNA) ile Değerlendirilmesi
Halime AlkanDünyada iktisat tarihi alanında istatistiksel ve ekonometrik yöntemler giderek daha yaygın olarak kullanılmaktadır. Bu genel eğilime uygun olarak bu çalışmada 17. yüzyılda İstanbul’da yürütülen finansal (kredi) ve ticari işlemlerin kimler tarafından daha yaygın olarak gerçekleştirildiği inanca bağlı bir sınıflandırma çerçevesinde sosyal ağ analizi (SNA) yöntemi kullanılarak incelenmiştir. Bu sayede iktisadi ilişkilerde merkezi konumda bulunan kişilerin kimler olduğu tespit edilmiştir. Bunun için 1602-1697 yılları arasında Osmanlı başkenti İstanbul’un en işlek iki ticari semtindeki İstanbul Merkez ve Galata mahkemelerine ait kadı sicillerinden yararlanılmıştır. Böylece bir taraftan Osmanlı kadı sicilleri toplumsal ve iktisadi açıdan değerlendirilerek toplumsal ilişkilerin dinamikleri ortaya koyulmuş, diğer taraftan literatürde Osmanlı tarihi ve iktisat alanına ilişkin farklı çalışmalarda kullanılan SNA uygulamalarına Osmanlı iktisat tarihi bağlamında yeni bir örnek kazandırılmıştır. Çalışmada öncelikle 17. yüzyılda Osmanlı’da finansal ve ticari ilişkiler bağlamında yapılan işlemlerden bahsedilmiş, ardından sosyal ağ analizi hakkında bilgi verilerek çeşitli alanlardaki uygulamalarına dair literatüre değinilmiştir. Daha sonra çalışmanın ampirik kısmına geçilmiş, iktisadi ilişkilerin yoğunluğu açısından öne çıkan isimler ortaya koyulmuştur. Verilere bağlı olarak 1602-1619 ve 1661- 1697 dönemleri için yapılan değerlendirmede ulaşılan sonuçlara göre; ilk dönemde finansal ilişkilerde gerek kişiler, gerek devlet adamları gerekse de vakıflar açısından Müslüman unsurların ağırlığı görülmekte, ticari işlemlerde ise Hıristiyan unsurlar ön plana çıkmaktadır. İkinci dönemde ise Hıristiyanların daha yoğun finansal ve ticari ilişkilerde bulunduğu söylenebilir.
In the 17th century, thanks to the advanced financial instruments and institutions established under Islamic law in the Ottoman Empire, intensive credit networks developed (Pamuk, 1999, s. 84-85). Instead of the prohibition on interest in Islam (Kuran, 2012, s. 184), the probability of invalidating interest-based contracts by the kadi resulted in high interest rates (Kuran, 2012, s. 192). On the other hand, a number of methods, tools and commercial arrangements were developed in the Islamic world to carry out the function of interest rate loans. These are like business partners such as mudaraba, credit arrangements, debt transfers and credit letters (Pamuk, 1999, s. 90-91).
“Mudaraba” means the company was established with the labor-capital partnership (Devellioglu, 2013, s. 770). In the mudaraba agreement, a partnership is established on the money or property of the investor and the merchant’s labor. The profit obtained as a result of mudaraba is divided between the parties at predetermined rates. In case of loss, the merchant has no obligation (Çizakça, 1999, s. 4). Although the trader has unlimited responsibility, he also takes the investment risk (Kurt, 1994, s. 172; Kuran, 2012, s. 73).
Another institution that should be taken into account in this context is the cash waqfs. The cash waqfs are established by donating money for a charitable purpose (a certain amount of cash) by a person who has a good financial status. This money is lent to the person demanding the debt. However, the debtor should show some real estate (usually home) mortgage in return for the credit received. In this case, the property of the debtor’s house is temporarily transferred to the cash waqf and the ownership is returned to the property when the debtor pays his debt. The borrower can continue living at his/her home by paying a certain rent to the waqf. This rent, which constitutes the profit of the waqf, usually has a rate ranging between 9-12% (Kurt, 1994, s. 186; Çizakça, 2006, s. 24-25). This method is called “istiglâl”.
In the study, firstly the relations arising in the financial and commercial markets in the 17th century are presented visually using the kadi registers of the Istanbul Central and Galata courts between 1602-1617 and 1661-1697 with Gephi 0.9.1. Then the statistical calculations are calculated. The most commonly used measure “degree-centrality” is calculated taking into account the constraint of reaching sufficient data for historical studies. Thus, in addition to identifying the central actors in the network, the results also responded to many questions such as the sectors that are at the forefront of the economy, the people who had capital accumulation, between the beginning and the end of the century. In this way, this study has contributed to the literature of economic history which contains empirical analysis.
The social network is a real-world social network of people (or other social actors) and their connections. It consists of a number of points or “nodes” representing social actors and lines or “edges” that represent the existence of a particular relationship between actors (Carrington, 2014, s. 36). In this context, the units used as actors in this study are Muslims, Christians, Jews and waqfs established by Muslims. The lines identified in the study are divided into two as financial and commercial transactions in general. These are also divided into subclasses within themselves. For example, financial transactions contain debt, inheritance, istiqlal etc. Commercial transactions are divided into sub-items such as sales / rents partnership, partnership (ship), partnership (mudaraba) etc. Although there are many sub-items other than these, the most prominent ones have been mentioned in the study.
The results obtained from the study are as follows: In the first period (1602- 1619), the prominent names (women, waqfs and government officials) are Muslims factors. This result emphasizes the Muslim weight in terms of dominating the financial market and having capital. In the commercial sector, which reflects the private sector more and achieves far greater degrees of centrality, trade with ships and Christians are in the forefront. In the other period (1661-1697), values of a higher degree of centrality are reached in the financial sector, unlike the previous period. In addition, it is observed that Armenians were in commercial relation with the debtors. In terms of sectoral, sheep trade and butchery are more intensive business areas and it is seen that Christians have more share in these sectors. In this case, it is possible to say that trade relations are transactions made to provide financiers and thus the financial and commercial sectors feed each other.