The role of the waqfs in the finance of the 16th and 17th century Ottoman economy

In this hereby study, in which we try to answer the question of the role of the waqfs in the finance of the 16th and 17th century Ottoman economy by studying the literature on the waqf institution, we mention briefly the Ottoman and World economy of the era and put forth the definition for waqfs, the types of waqfs, their origins and their historical developments. After discussing the conditions looked for in the components of the waqfs, we emphasized the relationship between the waqfs and the economy of the Ottoman Empire. In the first portion, we tried to come up with a healthier answer by analyzing the direct service waqfs and cash waqfs separately. Due to their controversial nature and the fact that they provided a more effective solution to the financing problems and with this attribute, they filled a huge gap in the Ottoman economy, we emphasized on the cash waqfs. In the final portion, we made an overall evaluation. As a result of all these, we came to the conclusion that the structure of the cash waqfs established in the 16th century was much like the micro-level credit institutions of today, which try to meet the demands of consumer needs instead of financing the entrepreneur. We also brought up the matter of the objections made to the cash waqfs, and believe that the reason wasn?t the increase of the funds assigned per waqf or the fact that people gave up establishing real estate waqfs in order to establish cash waqfs but as a result of the increase in the number of these aforementioned waqfs, a brand new and unwonted sector was created. On the other hand, we found out that, the point of view of the public to the directly established cash waqfs and cash waqfs established with a real estate differ from each other, and that the effects of banning the cash waqfs, even for once, had a much longer lasting effect then believed. Besides these it has been attested that the waqfs established in the 17th century gave much more credits to the market, supported larger projects, thought more commercially by directing a large portion of its interest receipts to its equity capital instead of using them for charity, even though within limits tried to grow, began to institutionalize and as a result of all these, were much like the European Banks of the time and that they laid the foundation of the current financing system in Turkey. We aim to discuss the positive and negative effects of the cash waqfs to the economy by including the fact that the cash waqfs didn?t have the authority to gather deposits, which were left out in previous studies. Also the profits and budgets of both the cash waqfs and the real estate waqfs are expressed in YTL for the first time. Finally the idea that the interdependence tradition within the Ottoman society was a social expansion in order to become a dominant state instead of an internal kindness gesture has been emphasized.