ECONOMIC OUTLOOK ( iZMiR AND IT'S DEVELOPMENT PROCESS )

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Many studies have pointed out that İzmir, which has a history of several thousand years, was one of the most dominant cities in the region in every age. But the exact location of the small city that was established the gulf cannot be determined. The historian Strabon stated that Old Smyrna was located in the location of present Kemeraltı arid that Smyrna had 20 stadia from here towards the west up to the Apollon temple and hot water baths. As a result of the conquest of İzmir by Alyattes in 570 BC the natives of the city spread out, causing the development of a lot of villages such as Buca, Bomova etc.. The natives of İzmir whoretumed to the gulf coasts in the year 570 BC began to live in an ordered and planned city in the ages of Antigonos and Lysimakhos. When we come to the the year 300 AD. İzmir had reached level of the great cities of the age like İskenderiye and Ephesus. But in those years the city was known by the name of the daughter of Lysimakhos,  Euredikeia, instead of Smyrna. In the short period in which the city was known by this name, its streets, perpendicular to each other were paved with large stones. There were large porticos (large covered areas at the entrance to bulindings with pillars supporting the roof) with entrances from their upper and lower levels to the streets. A wooden carving of Homeros was placed on four sides in one of these structures As far as we know, Homeros is from İzmir and poems about İzmir made him immortal, also portraying him on bronze coins.
The city  was expanding to the sea on one side, and towards the castle on the other side. The ramparts that extend to the temple of Zeus Akraios continued until the Meles Stream on the east. While the temple of Akraios opposes the old Jewish cemetery, and with the west of Bahribaba Park, the name of Meles Stream was given to a branch that departs from a river which is called by the same name today, after it passes the Kemer Bridge. This small stream was named Tabakhane Lake or Boyacı Stream and reached the sea from the Basmane region through the Fair area and Vasıf Çınar Boulevard. In other words it reached the sea from the east side of the region. According to this, the length of the city coast was 1750m. In addtion to this, there was an interior harbour of 1250m.
The ramparts that protected this highly developed city, with the exception of the castle on Pagos mountain extended 5 km. However, there wasn't a sewerage system as seen in most of the ancient cities. For this reason on rainy days the city was always dirty. Despite this, with its theatre, Agora, Gymnasion and Metroon it dominated the region.
The city worn out the events experienced in Small Asia, expanded after the age of Augustus. This expansion continued until the establishment of the Byzantium Empire and its early ages. A lot of temples were built in the city. Fire, earthquakes and epidemics often were seen, causing physical and social damage. Yet in spite of all this İzmir was chosen as the first and "
neokrat" city of Asia for the 3rd time in 222 BC. The period of relative decline in the age of Byzantium continued until late l8th century with some exceptions. The city lived in a semi-free state until the Ottomans took İzmir and the hinterland under their control. Independent cities and principalities existed in the hinterland at this time. As İzmir was the door to these principalities, opening to the outside, it was safe from most of the strife between these feudal entities. The city was subject to a few Arabian attacks before the Turks were seen in the region. Although İzmir was included in the lands of the Byzantium Empire during this time it resembled a colonial city. The harbour under the control of the Genoese and the simple castle was enlarged between the years of 1231 and 1235.  West Anatolian products that accumulated inside and outside the castle were transported to Europe by Genoese ships. The character of life in the city became monotone and everyone was involved in the transportation business to some extend. No improvements were made during these years.The Roman city walls decayed day. The stones of these ramparts and other splendid buildings were used to repair the harbour and other buildings. For example, as the theatre of the city was no longer used its materiai dismantled and removed. In the early l4th century by the treaty of Nymphoeon, the Geneose possessed all rights to İzmir (1261). As a result of this treaty the Genoese built a trade distric the the harbour castle. This activity was the most influential development undertaken for But after the 1300's the powerful struggles between the Genoese and the Turks created handi-caps with respect to the development of the city. Kadifekale, which had been left and ruined the coast was restored during this period and settled by the Turks. This settlement became was the son of Ahmet, in the castle in 1379. In 1390 Beyazıt included the Castle into the Ottoman lands.
In 1424 the first Turkish coin was minted in İzmir. In 1426 the harbour castle had passed to the Ottomans but trade was still in the hands of the Genoese. While Ottoman domination influenced the city, the issue of the capitulations began to make create changes in the structure of the Ottoman cites of the interior. When the coastal cities were developing, İzmir was the foremost settlement due to the state of its infrastructure. The rapid capitalism that was also seen in Europe also caused the development of these cities through trade relations.
Developments of this age can be examined in three seperate parts. The first one is the arrival of a party of European tradesman and members of religious institutions to İzmir, the second is the bulinding of splendid socio-cultural and commercial buildings possessing symbolic value and the third is the entrance of foreing powers and capital in West Anatolion trade and attaining dominance. The establishment of Netherlands Royal Church in 1612, the arrival of the Jesuits to İzmir in 1623, the establishment of England Royal Church in 1625 and the building of St. Polycarpe can be given as examples. Of course the biggest influence here is the establishmerıt of the Levant Company by the English in 1581 and the establishment of the Compagnie d'Orient by the French in 1666. These commercial foundations prevented people trading independently in their own right and thereby controlled trade. The establishment of this system based on the monopolistic practies, in İzmir attracted foreign merchants that had previously settled in Sakız (
Chios) Island. In the l7th century İzmir entered a stable period. The taxation and customs systems were advantageous for the foreign merchants, therefore trading in Sakız Island became equal with trading in İzmir. As the consulates of countries came to İzmir following the companies, families settled on Sakız Island that came from cities possessing certain concessions and developed on the basis of trade, for example Venice, Marseilles, Geneva and Livorno began to move to İzmir. This movement increased especially after the Ottomans gave permission allowing the possesion of property by foreigners. After 1857, these families had large European styled houses on large tracts of land in the outskirts of İzmir. We see families like the Giraud, Charlton, Bealhomme, Whitall, Chaumaud, Patterson and Baltacı among these. Some of the families had so increased the capital that they earned in this time that, they settled in Istanbul among the Galata Bankers and began lending money to the Ottomans.
The second subject we mentioned was the construction of splendid buildings for the operation of the trade and the strorage of goods that came to İzmir from the hinterland for export. The construction of buildings like Büyük Vezir Han, Küçük Vezir Han (
1678), Kızlar Ağası Hanı (1744) and Çuhacılar Bedesten was done with the remaining stones from the antique theatre. In addition to the numerous churches in the city the Ottoman religious foundation built many mosques in İzmir. The most splendid of these were Hisar Mosque (1592), Şadırvan Mosque (1636), Başoturak Mosque (1652), and the Kestanepazarı Mosque (1667). At this same time when the Ottomans were expanding to dominate the sea, they were confronted by the Venetians. The Venetian fleet that attacked İzmir in 1472, came again in 1694 and conquered the Sakız Island near İzmir. Because of this, the Sancak Castle built in 1650 was later strengthened and customs buildings were built.
The third element that had an effect on the development of the city was the increasing strength of the notables that controlled the agricultural lands and areas in the region. In the 18th century. Jews like Isac Ağa could be seen alongside Muslims like Araboğlu and Karaosmanoğlu. These powerful men who were carrying out cultivation in agreement with the European merchants controlled the land and the raw-materials of their large estates. The economic developments of the period organisied the city of İzmir as an export harbour. The import goods that entered the city consisted mainly of clothing. The organisation and distribution of these was in the hands of Greeks from Sakız and this group had taken the scattered trade into their hands. From the end of the l8th century onwards the Greek population coming from the islands to the agricultural lands of Anatolia for work were employed in the settlement of these European merchants in İzmir and Anatolian cities. Gradually a wholesale Greek trade group was created in İzmir. Therefore as we enter the l9th century, we can see that trade in İzmir had revived and splendid buildings, especially caravanserais and residences had increased in number. Minority groups no longer needed the protection of the consulates or the Levant Companies. This resultd in the abolution of the Levant Company in 1825. The Ottoman-England commercial treaty was signed in 1838. As a result of this, minorities were no longer dependent upon state controlled companies the Levant Company. The groups mostly harmed by this treaty were the Greek, Armenian and Jewish groups. Up until then these groups had carried out the business of the Italian, French, Jewish and other foreigners during Ottoman rule. The life in İzmir also changed after 1838. New houses were built and areas  opened to improvement and the banking sector developed.
The first organized trade fleets coming from Europe to İzmir, began travelling in these years. The Aynard brothers began to carry out this business in 1829. In the same year Humbert Giraud trading with Marseilles established Semaphore C.A. In 1835 shipping companies working overseas beqan to call at İzmir. The French qovernment entered the business building 10 steam shins toward this aim in 1835. Every month three voyages were undertaken from Merseilles, the voyage taking 11 days. In 1866, we see that the Management İzmir Karantina moved to Urla from the district of the military hospital and that ships waited here according to the route they had travelled. Sometimes this took up 10 days.
The loading and unloading of the ships that came to İzmir which did not have a developed har  bour created problems. In 1867 an agreement was signed to built a new harbour ito replace the    old harbour which was in a ruined stacte. Previously there were lots of houses with gardens on the shore. According to the agreement signed with the Ottoman Empire the customs building and harbour were to be completed on 13 March 1880. All rights were to belonging to the Dussand brothers who were the construction firm. Although the harbour of İzmir was found to be favourable with respect to town planning and development techniques it was decided that the south entrance was not suitable for the entrance of the ships. Because of this, all the entrances were directed to the northern gate. An area in the port 3,245 m by 100 m was gained from the sea. The areas created as a result of this filling were sold by the company and to increase the profit, plots were created parallel to the sea. Consequently, these areas were filled with buildings and a city structure contrary to the traditional street system of İzmir was created. The front sides of the streets running perpendicular to the sea was closed and the newly established I. and II. Kordon Streets prevented the İmbat breeze from entering the inner parts of the city.
The developing city created a new transportation systems as a result of the construction of the harbour. The Steam Ship establishment founded in the gulf in 1884 for the harbour, worked as a Turkish-Armenian partnership under the name of Hamidiye Company until the May/15/1919 when it was transferred to the Guffray Harbour Company. French Street and Sultan Street lost their positions as streets on İzmir's waterfront. It is known that the minority groups lived on this road beginning from the Customs Building and continuing towards the shore. The two faces of İzmir could be seen here. It was here that Western life coexisted with the mystical air of East. French Street was the backbone of the West and Kemeraltı Street was the backbone of the Turks. Like French Street, Kemeraltı Street which had also been on the waterfront became an inner street as a result of the fillings in the harbour. We know that this street and harbour existed when Timur (
Tamerlane) came to İzmir with his army. The castle founded on the entrance of the harbour was no longer a waterfront castle in 1830's. In 1872, already in ruins it was demolished and 40 the houses inside it was given to a charitable foundation. This castle area where the old municipality building of İzmir was built was demolished leaving an influential name and economic order behind it. Even today we can see the foundations that controlled the economy of İzmir. A new economic order was growing in the areas created by the fılling of the harbour. The inner harbour that wasn't being used when the traveller Tuornefort came to İzmir in 1701 because it was partially marshy was gradually filled with buildings plot by plot The harbour that was closed from here on by a chain was invaded by the warehouse buildings and caravanserais which stored agricultural products prior to export. These huge buildings which were built haphazardly from rough stones symbolised the transformation from traditional Ottoman-Seljuk type of commercial buildings to warehouses. Markets in these areas introduced new technology to Anatolian to visit. The sale of iron tools were seen towards the middle of the l9th Century. Coal, a luxury product in that age was sold here to replace wood as fuel as was another luxury good; sugar. Kestane pazarı, the market surrounding the city's main mosque in which were sold the farmers' grains and seeds was the meeting place of the Anatolian people who dependent on agriculture for their existence.
For Anatolian people who came from the hinterland to the city centre was a place of symbolic value to visit, before retuming to the village with sugar and cloth thay had purchased here. The second consumer market was in the surrounding area of the Hisar Mosque. Here Jews took their place among other groups of sellers establishing a jewelery market. In the general understanding this is a traditional market place with the guild system of shops, members of the same trade placed in a but it is not a good example of the classical traditional Ottoman market.
The city that was formed after the early 19th century gradually increased its relationship with Anatolia. Aydın and Manisa were the two main cities in the hinterland. The European desire to reach the Aegean which had large ore-beds in addition to rich agricultural lands forced the Ottomans to accept the new technology and the building of the railways of Manisa and Aydın. So many projects were underway in this period that a state of confusion characterised the empire. Even the tunnel project to connect Anatolia and Thrace was suggested to the Sultan in 1901. In addition to the railway lines of Aydın and Manisa proposals for the Çanakkale and Çeşme railways were made. For example the Çanakkale line proposal included the operation rights of the mines and forests in a twenty kilometer belt on the left and right sides of the railway line. These rights would belong to the construction company. İzmir was developing by opening to the outside world. Post offices of many countries were built in addition to their consultates.
European fashion was coming to this culturally developed city in spite of the difficulties of providing it. Cultural life was sometimes very active and we see theatres especially in the summer months in Buca and İzmir in the early l9th Century. These buildings were developed further by the minority groups after the middle of the century. Kordon was the theatre district in İzmir. The Cammarano theatre, opened in 1861, was the second such building in the city after the Kivitos Theatre located in Punta. Both of these buildings were lost by fire, one of them in 1884 and the other in 1863. But İzmir was already building its splendid new theatres at I. Kordon when these burned down. The most important of these were İzmir Theatre, Kramer Theatre, Sporting Club Theatre, Pathe Cinema and Theatre and Theatre and Turkish Theatre in Kordon near Pasaport district. Later on, Sakarya and Teyyare Cinemas were also built in the I. Kordon.
In the early 20 th century the situation didn't change and a series of decisions taken during the World War was not effective in securing the Ottoman dominance in İzmir. Stability in the city was lost with the presence of the Greek army in the city from 1919 until 1922, and the life of the city stopped completely by the fıre in 1922. Most of the groups that held the control of the economy and the industry of İzmir in their hands left the city with their capital. Likewise the cultural life of the city ceased. As a result, İzmir entered a social depression. The families that possessed large capital like the Marcopoli, Aliotti, Convalle, Dellagrammatica, Hacı Costi, Bosovich de Cramer and Keyser families had left the city as did many other banks. Other industrial groups  like Caramaniola, Rankin, Issigonis, Foscolo, Ollivier, Patterson, Athanossoula, Mangonioti, Wittall, Leonidopulos, Yovonaki and Lipovac and many other families followed in the same way.
The young Turkish State held the first Economic Congress that it organised to give direction to the national economy in İzmir in March 1923. The efforts to restore this ruined city that had three quarters of it burnt began in the following way: Sewage of 1,800 m, raods totalling 403,000 m2, and a total of 7125 buildings were to be constructed in the ten years of  this project beginning after 1923. The construction plans of the ruined and burnt out parts, were completed in a short time and construction began in 1927. Osmaniye Street with a width of 8m had been the largest street in İzmir's industrial area. The streets that replaced it on the new plan were Gazi Bulvarı (
38 m), Fevzi Paşa Bulvarı (30 m) and I. Kordon Street (30 m). They were to be the largest streets in the city. Apart from these the municipality purchased an area of 40.000m2 and it built apartment houses in the districts of Çayırlıbahçe and Kahramanlar. These 400 houses were the models of houses to be rebuilt in the area destroyed.
Illumination by electricity replaced the previously existing coal gas system but was not fully operational until 1935. A new concept was emerging from the new architectural plans in the allocation of new usable areas and new roads. The İzmir exhibition centre (
the area of the  Fair today)  the seeds of which were planted in 1923 demonstrates this clearly. The exhibition that was opened as 1933, the Fair of September 9 th was located in the area of the fıre. An area of 32.00m2 was reserved behind the Atatürk Statue in Cumhuriyet Square (opened in July 28, 1932). The fair that was opened on this area was transformed to the area of a park by the name of Culture Park. As this space was not enough, the area was extended and a green area was created in the centre of the city. This place was also included to the Fair.
Until the decade of 1950's, İzmir was concerned with the restoration of the areas destroyed by fire.. Meanwhile, settlements like Buca, Bornova, Güzelyalı and Karşıyaka were rapidly developing.. Güzelyalı line was connected to the city in a very short time due to its favourable position. Karşıyaka had difficulties with transportation, but it could be reached both land and sea. Buca and Bornova were filled with the houses of the rich minority families. Roads and railway lines were laid here. After the1950's, private trade begun to grow rapidly. As a result of the global developments after the World War II, İzmir needed to draw up a new city plan in its new internatianal setting. In twenty years the population of İzmir had doubled and the city now extended as far as the Sarıkışla, Güzelyalı and the outskirts of Kadifekale districts. In the 1950's a town planing competition was organised and revision of this work created the basis for the developments we are witnessing today. In accordance with this, Bayraklı, the harbour of Alsancak and the area behind it were chosen to be the business area. This area includes large storage and business centres. As the Fair is a permanent green area, the city shifted towards Güzelyalı. Buca and Bornova, like Karşıyaka, were merged with the city. Konak Square was protected as the historical and physical centre of the city after the construction of Clock-tower.
After this period, industry also grew in the city and industrial foundations like Çimentaş and Metaş led this development. Numerous factories were established with foreign participation and settled in the east of the city. We can count Cevher, CMS, Tuborg, Botaş, BMC, Elbo, Dizelsan, and Pınar among these. The city also developed rapidly together with the gradually accelerating industry and as the population reached two million, 42% of which were living in unhealthy slum areas known as "
gecekondu".
Today İzmir has developed with Konak as its centre; and the inner area, shaped like the fingers of a hand. Twenty eight percent of the population lives in Karşıyaka, eighteen percent in Buca and eleven percent in Bornova. 3.114.859 people live in İzmir today. The average density is 416 people per hectare. 32 % of the working population deals with trade. Industry is in third place with 23% and the service sector is first with 38%. The total labour force in proportion to the population is about 32%. It is estimated that the population of İzmir will be 4,300,000 in the year 2010.
İzmir will continue to be the centre of this region towards the year 2001. But this time it's hinterland region will not be the region of l7th, l8th and l9th centuries. İzmir had an hierarchical relationship with its hinterland, co-existing in a stable interdependent socio-economic and cultural balance. A balance which saw the city feed from it and feed it. The hinterland is no longer the relatively closed system and has entered into open relation with the outside system like İzmir itself. İzmir has again become a city that will exist not by itself but together with its region. In the east, in the region of Kemalpaşa the industrial area is extending. On this site, the first organised industrial zone of İzmir has been developed and this region extends as for as the Aliağa industrial settlement. Again this area accommodates the collective residential areas that include more than ten thousand houses. The region that is known as Egekent is a settlement of 40,000 people. The project of Ev-ka near by, has provided 3145 homes to the residents. These projects considered to be help ful in preventing shanty haphazard housing, cover an area of 115 hectares. It is estimated that 60.000 people will live in the total area. Another similar area of this kind exits in Bornova where 1408 houses have been built. There are also 9700 such houses in Buca.
The Western extension is the most densely occupied part of İzmir. There are large forests on the southem side. This region, showing a linear extension  parallel to the shore ends with the recreational areas of İzmir. In the summer months there is dense traffic on this line. Another special feature of this region are the Balçova baths.
The Southern side is a region where industrial and residential areas have developed together . The forests and agricultural lands in this region are factors that have prevented development. The Airport and the Tahtalı Dam, which will intersect in the following years, are located in this area. Due to the existence of the airport, The Duty Free Region is also settled here. The industries based on agriculture were leaving their places to the production of intermediery and investment products, in this development period. The developments that are seen in the new settlements in the surroundings of the city were increasing due to the new transportation facilities. This situation led to the creation of new market places in the city.
İzmir became a densely populated city in the last years. Big problems started to emerge in the areas of the old city because of this increase. The main policy that is adopted in the city is to decrease the density of the city by planning decisions. İzmir extending densely and vertically is unable to give the humanitarian life standards to its residents. Due to this, settlements in the surroundings like Kemalpaşa, Seferihisar, Menemen and Torbalı are to be the centres that will decrease the burden of İzmir. The activities and connections of transportation developing in these settlements will pull the population in a certain extend. Urla, in this order is giving service to the macro decisions of the planning by attracting residence settlements.
İzmir is now a new city. First of all the developments in transportation and industry pulled the city life into a different dimension. In spite of this İzmir is still a regional distribution and collection centre. The city has gained a regional metropole identity by adding its cultural activity to its econonomic functions through two universities and a technology institute.

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