World History Module IASbaba

Industrial Revolution
Industrial Revolution in Germany: 1845

Events:

 Berlin, Hamburg and Prague were connected by railway lines

 Several textile mills were set up between 1850-1880
 Transport system was improved and the length of roads reached 18000
miles by 1862
 Production of iron and coal reached a high point by 1870
 Industrialization was promoted by ‘Unification of Germany’
 Capital investment increased rapidly after 1870; Population reached 6.5
million by 1910
 Before WWI Germany became an industrial rival of Great Britain.
 Germany was at the forefront in the use of chemicals in agriculture and
use of science in steel industry

1900 – 90% of dye market was captured by Germany

1914 – 60% more production of chemicals than Great Britain

 Second largest production of iron and steel behind America

 50% share in global market of electronic goods

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Reason behind Germany’s rapid progress in industrialization is –

I. Availability of social capital

 used for building roads, ports, canals and railway lines
 invested in machinery and buildings
II. Expansion of technical education – large number of scientists and
chemists
III. Careful utilization of inventions made in other countries
IV. Network of banks – long term loan goals for industries
V. Formation of cartels – maintained growth rate of capital & kept rate of
profit high
VI. Excellent condition of agriculture

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Industrial Revolution in Russia

Industrial Revolution reached Russia very late.

Russia lagged behind due to the following reasons –

 Lack of good currency system

 Lack of adequate capital
 Serfdom was still prevalent

…and it begins

1861 – Serfs were freed & foreign capitalists were invited to invest in industries

Cooperation of British & French firms – Raised output of coal, iron and
petroleum

Post Crimean war – Government start to promote industries; State bank was
established in 1860

 The government guaranteed issue of bonds, expanded the railway

network and invited foreign capitalists to set up industries
 Railway network was around 81,000 miles by 1917; Roads were not that
developed (only 30.000 miles)
 Creation of iron & steel industry on a massive scale created monopoly of
the capital
 Small scale industries contribute 1/3rd of production and employed 5
million people

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 Engineering industry remained stagnant; Technical basis and

organization of industries was outdated
 Reforms were beneficial only for a small chunk of population whereas
majority of people lived in deplorable conditions & were torn with
discontent
 Russia had all the potential to grow into an economic power but:
 Clash of class-interest
 Wide-spread of discontent among people put a check on it

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