This article examines the transformation of economic thought in the Ottoman Empire between the Second Constitutional Era and the end of World War I (1908–1918), focusing on the tension between liberalism and the doctrine of the “National Economy.” The study analyzes how the Committee of Union and Progress (CUP) initially adopted liberal economic principles emphasizing free enterprise and individual initiative, but later shifted toward statist and protectionist policies under the influence of nationalist ideology after the Balkan Wars. By comparing the liberal economic views of Mehmed Cavid Bey with the nationalist and solidarist ideas of Ziya Gökalp and Tekin Alp, the article explores the theoretical and practical implications of this paradigm shift. It also discusses the abrogation of the Capitulations, the establishment of national banking institutions, and the emergence of “war profiteers” as reflections of the socio-economic and moral dimensions of this transformation. Ultimately, the CUP era represents the historical foundation of the statist economic philosophy and the quest for national economic independence that would later shape the early Republican period.
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Taceddin Kayaoğlu (2025) studied this question.
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