Power Struggle and Urban Economy: The Economy of Istanbul After Its Time as Capital (1923-1939)

Istanbul, a city that served as the capital for empires for centuries, lost its administrative importance with the abolition of the sultanate, the declaration of the republic, and the termination of the caliphate. The Republic of Turkey's decision to designate Ankara as its capital was not merely a strategic one but also a choice directly linked to the young state's goals of becoming a modern nation-state.

The new government considered Istanbul too "Islamic" and "cosmopolitan," viewing it as an untrustworthy city with a structure difficult to control. Furthermore, it was seen as responsible for the poverty of Anatolia. For this reason, prioritizing Anatolia in development initiatives and confronting the Ottoman past became part of the new ideology.

The political and economic decisions made during the early years of the Republic led Istanbul, with its declining population and loss of administrative functions, into a period dominated by neglect and indifference. While Ankara emerged as a model and self-sacrificing city in the modernization process, Istanbul was marginalized and pushed into a passive position. The accumulated wealth of Istanbul was not utilized in national development goals, and the city lost its economic dominance in many areas, particularly trade.

This book addresses these claims in two sections. The first section examines Istanbul's stagnation and decline following its loss of capital status in the face of government policies; the second section analyzes Ankara's role within the context of the modern nation-state.