northwestern Europe

European entrepreneurs did not hesitate to bribe or even kidnap British engineers, and they also smuggled advanced machinery out of the British isles.

Preconditions:

• Napoleonic wars helped set the stage for industrialization in western Europe by abolishing internal trade barriers and dismantling guilds that discouraged technological innovation and restricted the movement of laborers.

Where

• Belgium

  • • the earliest continental center of industrial production where coal, iron, textile, glass, and armaments production flourished in the early nineteenth century

• France

  • • By 1830 French firms employed about fifteen thousand skilled British workers who helped establish mechanized textile and metallurgical industries in France.

    • mid-nineteenth century, French engineers and inventors were devising refinements and innovations that led to greater efficiencies especially in metallurgical industries

• Germany

  • • 1840s - German coal and iron production soared

    • 1850s an extensive railroad network was under construction

    • Post-1871, Bismarck’s government sponsored rapid industrialization in Germany

      • • encouraged the development of heavy industry

        • the formation of huge businesses became a hallmark of German industrialization

          • • The Krupp firm--dominated mining, metallurgy, armaments production, and shipbuilding

United States

North American entrepreneurs did not hesitate to bribe or even kidnap British engineers, and they also smuggled advanced machinery out of the British isles.

Origins

• 1820s --entrepreneurs lured British crafts workers to New England and built a cotton textile industry

• mid-1800s--over a thousand mills were producing fabrics from raw cotton grown in the southern states, and New England had emerged as a site for the industrial production also of shoes, tools, and handguns

• By the 1860s, rails linked the industrial northeast with the agricultural south and the midwestern cities of St. Louis and Chicago, where brokers funneled wheat and beef from the plains to the more densely populated eastern states.

• 1870s heavy iron and steel industries emerged in areas such as western Pennsylvania and central Alabama where there were abundant supplies of iron ore and coal

• By 1900 the United States had become an economic powerhouse

Russia

Until the end of the 19th century (1800s), Russia's economy remained agrarian

• Crimean War (1854-1856)

  • • Russia driven from Crimea by British and French forces

    • Russia realized how far they had fallen behind militarily

Initial Reforms under Alexander II:

• Emancipation of Serfs (1861)

• new law codes

• zemstvoes - regional councils established for input on local decisions

• began military reforms

• began building railroad network

  • • facilitated grain shipments to the west (would help finance industrialization)

Reforms under Alexander III (r. 1881-1894) and Nicholas II (r. 1894-1918)

• Sergey Witte, Russian finance minister (from 1893-1903), encouraged European investment in Russian infrastructure and factories

  • • approximately 50% of Russia's industrial factories were foreign owned

    • Trans-Siberian Railroad

      • • project was officially announced by Tsar Alexander III in 1891 (completed in 1916)

        • Sergei Witte paid for the railway by raising loans, increasing taxes and simply printing roubles.

        • project had major geo-political implications for East Asia

• By 1900, Russia ranked 4th in Steel production and 2nd in petroleum production

• Increased Industrialization = increased urbanization = increased radical ideologies

Japan

Tokugawa “closed country policy” came to an end with the arrival of U.S. Commodore Matthew Perry with 4 well-armed, steamships and his demand that the Japanese trade with the USA

• resulted in Treaty of Kanagawa which opened two ports to American merchants (also English, French, Dutch, and Russian) and extraterritorial rights

In 1867, the Tokugawa shogun stepped down and Emperor Mutsuhito took control of the government & took the title “Meiji” (“enlightened rule”)

• The Meiji emperor believed the best way to prevent Western intervention was to modernize

Government Actions to promote Industrialization

• sent diplomats to Europe & America to study Western ways and adapt them to Japan

  • • Foreign observations were used to restructure the state and economy

• established the Ministry of Industry in 1870 to oversee economic development

  • • government built model factories to provide experience with new technology

    • Education was extended as a means of developing a workforce

      • • used models from German, America, & French public schools

    • Private enterprise soon joined government initiatives, particularly in textiles

• limited foreign involvement

  • • Lack of capital dictated direct government involvement in the stages of industrialization

    • Japan depend on the importation of equipment and raw materials from the West

    • depended on selling manufactured goods abroad

Transformation of Society

• Conscription provided a new army and navy

  • • army modeled to emulate Germany

    • navy modeled to emulate British

• 1884- Civil-service examinations were utilized to open the bureaucracy to men of talent

• 1889 constitution and Parliament modelled after Germany

  • • Recognized the supremacy of the emperor

    • Voting rights were determined by property qualifications

      • • Five percent of the population to cast ballots

    • The form of government gave great authority to wealthy businessmen and nobles

      • • Inclusion of businessmen among political elite

        • A small oligarchy continued to dominate the government into the 20th century

    • Political parties developed

• Western fashions became popular in Japan

By the 1890s, Japan saw itself as a modern nation that needed raw materials

• Like other industrialized nations, Japan began its imperialist in East Asia

  • • 1894-1895 - Japan wins Sino-Japanese War with Qing China and takes control of Formosa (Taiwan) and gain a "spere of influence" in China

    • 1904-1905--Russo-Japanese War--Japan attacks Russian ships at Port Arthur (Manchuria) and sends forces north to Mukden in 1905

    • 1910--annexes Korea

By 1914, Japan had 7,000 miles of railroad track; thousands of factories; profitable tea, silk, shipbuilding industries. They had ended Western extraterritorial rights and previous unequal trade treaties. They had also established the beginnings of an empire outside of Japan that would grow after WWI.

§ Shipbuilding in India and Southeast Asia

• initially, Southeast Asia produced much of the merchant vessels used in the Indian Ocean trade

• Chinese, Portuguese, and Dutch merchants during this time period would come to dominate the purchase of these ships.

• eventually, the British would force these ships to only be sold to them.

• transition to steel ships in the 1800s would result in these production centers being less important

§ Iron works in India

• During the Mughal era, Iron mines and production were well established producing weapons for their military

• the British would eventually force the closure of the production and mining centers as a means to prevent rebellion

§ Textile production in India and Egypt

India

• India had long been the dominant in the production of textiles in the Indian Ocean region.

  • • during the reign of Akbar the Great, some historians say the Mughal empire controlled as much as 25% of global GDP

    • by the mid-1800's (before British rule), India's share of global GDP had fallen because of the Industrial production of Europe and the United States, but still accounted for as much as 17% of global GDP

    • by the turn of the 20th century (after the establishment of the British Raj), Indias share of global GDP had fallen to less than 1%

• Policies of the British Raj (1861-1947)

  • • during the Civil War in the United States (1861-1865), British forced Indian farmers to grow “cash crops”

    • raw materials (cotton) were then sent back to Britain and made into finished clothing

    • The British brought the manufactured goods back to India and sold them to Indians to make a profit.

    • Indian businesses could not compete with cheap British-made goods so they closed down and the British were the only suppliers.

    • The Indian economy was devastated by the effects of British manufacturing dominance.

Egypt and Muhammad Ali

• Muhammad Ali encouraged farmers to grow cash crops such as cotton and

  • • Established a monopsony (single-buyer system)

• Est. prices to buy grain & cotton from farmers, and resold those commodities (outside of Egypt) at market price. Money/Profits went to the Government.

  • • Grain prices were high as a result of Napoleonic Wars

• built factories to supply the army (uniforms and weapons)

• Post-1841--British would Egypt to:

  • • reduce size of their military

    • dissolve the state monopoly/single-buyer system

    • allow Europeans to undertake business ventures in Egypt

• during the Civil War in the United States (1861-1865), Egypt restructured their economy to grow “cash crops”

  • • Egypt took loans from French and British lenders at high interest rates (25%+) to fund irrigation projects for cotton production

    • when the US Civil War ended, commodity prices for cotton dropped and Egypt was left with the debt