How was Germany governed and how did it change?

I control
The 1871
I control the 25

foreign policy I make laws with my

constitution states
chancellor and

I am the king of

ministers - i hire and

Prussia
Kaiser fire them
I can ignore
I am

resolutions
responsible

passed by only to the

I am minister-

Reichstag Kaiser president of

Prussia

Chancellor and ministers

Prussia
We have our
We can veto
We don't get

own
legislation if 14
paid so tend to

vote against Prussia has 17/58

be upper class
constitutions

seats
and control,

education,

healthcare,

police Bundesrat -
Reichstag -
We are not

upper house members of the

lower house 3 stage voting -

We are 58
pay more tax -

government vote counts

members

more
appointed by

state

assemblies The
We can accept or

chancellor
reject laws on certain

Local diets and

areas only - finance

We are all

can ignore us

assemblies led
conservatives-
- but we can
and defence budget,

by Prussian
make life
the annual budget
hard for him!
landtag
 How was Germany governed and how did political authority change and develop? 1871-1890
Bismarck and Willhelm I set up a Germany to give Prussia domiance,

the Junkers control and to allow the Chancellor and Kaiser to run

Government firmly
Germany how they wanted

in control Parties/ people

showing power
It could be argued that, in the 1870s, Bismarck was using the National
Bismarck was forced to end Kulturkampf in 1878 as he needed the support of

Liberals for his own ends and that when their demands were becoming
the centre to bring in tariffs, which the liberals did not support
too onerous he easily ditched them in 1878 and built a new political

alignment with the Centre Party

The introduction of protective tariffs in 1878/79 could be seen as a

Bismarck was bullied into tariffs by the alliance of steel and rye - pressure

decision taken by Bismarck independent of any influence from the

groups of industrialists and Junkers
political parties, e.g. Bismarck recognised that German agriculture and

industry was in need of protection from foreign competition

Bismarck was personally rather paranoid about the potential threat

Bismarck hated socialism and its growth caused - first the anti socialist law of

of socialism, which could explain the launch of his anti-socialist

1878 - when this failed he tried appeasing socialists with state socialism from

campaign in 1878, rather than any influence of the political parties 1883.

Bismarck showed great independence and creativity through the

introduction of social welfare legislation in the 1880s. This ran counter

to the traditional ideology of his supporters in the conservative parties

yet he was able to enact the legislation

The liberal period

The conservative period

Kulturkampf Central Association

Conservative
German
Health Centre party
Accident

Falk laws
Septennial
Alliance of
Anti-Socialist
Tariff law
Colonial
of German
Kaiser

parties get 85
insurance
becomes
insurance
Old age
Bismarck

Liberals win
(May laws) law passed, steel and
Laws are
League is
Industrialists
End of
Wilhelm I

introduced seats law largest law

155/399 created Kulturkampf died pension resigns
Rye introduced. founded

1871 1872 1873 1874 1875 1876 1877 1878 1879 1880 1881 1882 1883 1884 1885 1886 1887 1888 1889 1890
How was Germany governed and how did political authority change and develop? 1871-1890
The role of parties
Power remained from 1871 in power of unelected elites - unlike most of Europe. There were worries about a modern economy

working with political backwardness. Bismarck played groups against each other over this, he also distracted them with foreign

policy. This was used even more from 1890-1914.

Social
Liberal
National Liberal

democratic party Progressive party Centre party German conservative

party Free conservative

party party
Founded in 1875 Who: Middle
Who: Industrial
Who: German

Who:
Who: Junkers -

Who: socialist and

class Middle class/
Catholics -

commercial/
often from

workers groups Views:

protestant
mostly in south
industrial/
Prussia
Views: split -
develop
middle class -
Views: hate
wealthier
Views:

some argued for

parliamentary
educated and
Kulturkampf,

professional
Support Kaiser,

marxist revolution
government - wealthy fear socialism,

classes discipline,

and non co-

don't love
Views: national
hate Prussia.

Views: Similar
authority,

operation in
Bismarck's
unity, free
Want to

to
Bismarck,

politics.
nation state or
trade,
protect rights

conservatives -
protectionism,

Reformists - the
army constitutional
of states and

support
nationalist,

party should work

(not
Catholic

Bismarck,
army,

in the system to
authoritarian)
church
protectionism,
nationalist

achieve reform government.

nationalist,
foreign policy.

Dislike power of
army Keep Junker

church in state.

power
Believe in

keeping rights

of individuals -

often support

conservative

parties after

1881
How was Germany governed and how did political authority change and develop? 1871-1890
The role of parties
Bismarck and the liberals 1871-1879
1871 - National liberals won 155/399 seats in Reichstag
With the Progressive liberals and Free conservatives they gave Bismarck a good majority.
Until 1878 the Liberals always supported Bismarck
They supported unification and backed policies of limiting differences between the states.
Bismarck was no a Liberal; he was motivated by circumstance not ideology.
He kept their support in the 1870's as their aims were the same and when they weren't the Liberals often gave in.
1874 - Septennial law - they agreed to a 7 year check on army budget rather than a yearly and allowed a press law that increased censorship
These went against Liberal ideas.
The Liberals and Bismarck compromised - but he never let them control his policies

This changed with economic crisis

currency reform in 1871 brought more

money.
This led to more risk with money to

make profit.
Kulturkampf - 1871 Austrian stock market collapsed in

1873 as well as a financial crisis in the

Bismarck attacked the Catholic church.

USA.
Pope challenged the German state with his declaration of papal infallibility in

Caused economic depression.

1870 - the pope would always come first to Catholics - even above Kaiser.
Germany survived - growth still u

He opposed the centre party due to this - he wanted more German nationalism
2.5% a year.
Falk appointed to minister of Culture in Prussia in 1871 - led to May/Falk laws of

led to pressure for economic

1873
protectionism - tariffs. 1st pressure

E.g. Jesuits forced to leave, Catholic schools supervised by state, civil weddings

group - Long-Name society - tariffs

compulsory
would lose Liberal support/
Bismarck also did it as liberals hated centre party - Bismarck hoped it would get

Led to alliance of steel and rye in

stronger support for a new economic policy

1877
Failed - it strengthened Catholicism and led to the growth of centre party.
In 1878 the liberals would not support a new economic policy so Bismarck no

longer needed to support them. 1878 Pope gave offer of friendship and Falk

fired 1879
 How was Germany governed and how did political authority change and develop? 1871-1890
The era of conservativism 1879-90
Causes
Conservative policies
1878 - Bismarck announced a bill that would end free Problems in Reichstag
trade
Bismarck had to support more conservative policies due to his support from

The liberals rejected it.

the conservatives.
Bismarck dissolves the Reichstag - hoping for a more
However, socialist support increased at the same time.
supportive majority.
Bismarck needed to contain forces demanding change while attempting to

There were two attempts on the Kaiser's life - blamed

defend traditional rights and privileges?
(wrongly) on socialists.
Bismarck appeals to nationalist sentiments in Germany
Socialists lose seats, so did liberals and conservatives The election of 1881 was a defeat for Bismarck - he could only rely on support

and centre party gained. of German conservatives and Free conservatives.

The liberals became worried about losing all influence 3/4 of deputies opposed the government
and many supported an anti socialist law - passed in The National Liberals had split - the left became the Secessionists and who

1878. hated Bismarck - the rest drifted further right and supported co-operation

15 rebels also voted for protectionism with the conservatives.

Free trade bill passed in 1878 by a conservative/ centre The socialists - SPD founded in 1875 - represented working class.
party majority. Stood for democracy and equality, neither which Bismarck liked. It also

Bismarck still had problems in the Reichstag posed a threat as it was an international movement.
Kulturkampf ruined Bismarck's relationship with the Bismarck scared by its growth.
Centre party Bismarck used the two assassination attempts to pass an anti socialist law

Less right wing liberals were willing to support in 1878 banning all socialist meetings and publications.
Bismarck than he hoped. SPD was still allowed in elections.
Bismarck received no majority in the Reichstag The law lasted for 12 years and was unsuccessful
until 1887 The socialists only grew in strength - almost twice as many voted in

1887 as 1878
The liberal period 35 deputies in 1890
The conservative period

Kulturkampf Central

Conservative
German
Health
Centre party
Accident

Falk laws
Septennial
Alliance of
Anti-Socialist
Tariff law
Colonial
Association of
End of
Kaiser

parties get 85
insurance
becomes
insurance

Liberals win
(May laws) law passed, steel and
Laws are
introduced League is
German
Kulturka
Wilhelm I
Old age
Bismarck

seats law largest law

155/399 Rye introduced. founded Industrialists
mpf died pension resigns
created
1871 1872 1873 1874 1875 1876 1877 1878 1879 1880 1881 1882 1883 1884 1885 1886 1887 1888 1889 1890
 How was Germany governed and how did political authority change and develop? 1871-1890
The era of conservativism 1879-90
State socialism Germanization
Why?
Bismarck did attempt positive social change in response to his problems. Poles and Jews were also targeted by Bismarck in his policy of Germanization.
State socialism gave sickness and accident insurance for the lowest paid
He was in part responding to the demands of conservatives and knew these

workers and pensions for the over 70's and permanently disabled. policies would meet their approval.
What motivated him? he never even ,mentioned this policy in his
1886 - a Settlement law encouraged German peasants to to settle in eastern

memoirs. provinces which 16,000 Poles and Jews (with Russian citizenship) were forced to

leave.
Possibly he had a desire to help those in need.
By 1885, more than 32,000 had left.
Possible to win support from working class and discourage demands for

Those Poles who remained suffered discrimination.

greater political power. Polish was no longer taught in schools.
Possibly the aim was to rob support from the SPD by getting support for
French speakers in Alsace-Lorraine had to be taught German
the government from workers.
Bismarck and the Reichstag
How
Bismarck tried to reduce the power of the Reichstag.
1883 - Health insurance
Its authority over the military was reduced, but generally he was unsuccessful,

1885 accident insurance despite threats to change the constitution,

1889 old age pension Instead he focused in protecting the Prussian Junkers in civil service and army.
A sympathetic majority in the Reichstag came only as a result of problems

Response? overseas.
Socialists were unsure how to react. There were problems in the Balkans threatening war. Bismarck exploited this

they approved of the measures, but did not wish to support a regime
and in 1887 the Kartell (German conservatives, Free conservatives and

that was trying to destroy them. National liberals) won 220 seats whilst the socialists lost seats.
Bismarck was able to push through a new septennial law military budget.
They rejected the bills and they were amended - the laws were then

However, in March 1888 Wilhelm I died and his grandson, Wilhelm would not

passed successfully.
see eye to eye with the Iron chancellor

The liberal period

The conservative period

Kulturkampf Central

Conservative
German
Health
Centre party
Accident

Falk laws
Septennial
Alliance of
Anti-Socialist
Tariff law
Colonial
Association of
End of
Kaiser

parties get 85
insurance
becomes
insurance

Liberals win
(May laws) law passed, steel and
Laws are
introduced League is
German
Kulturka
Wilhelm I
Old age
Bismarck

seats law largest law

155/399 Rye introduced. founded Industrialists
mpf died pension resigns
created
1871 1872 1873 1874 1875 1876 1877 1878 1879 1880 1881 1882 1883 1884 1885 1886 1887 1888 1889 1890
How was Germany governed and how did political authority change and develop? 1871-1890
Imperial policy Fall of Bismarck
Bismarck had stated that he did not want

Germany to get colonies in 1871, nor build a

The belief was the Kaiser let Bismarck got his way in nearly everything.
bigger navy. The two had their ups and downs and Bismarck would threaten to resign

In 1884 he embarked on a policy of colonial

to get his way.
expansion that would see German territory
The relationship worked and the Kaiser generally allowed Bismarck to

grow. make his own decisions.

Why?
The death of Wilhelm I in 1888 brought in a new Kaiser who ruled for only
3 months.
Colonial expansion only generate enthusiasm from
Then, Wilhelm's grandson assumed the crown.
people that would benefit so it is unlikely he did it for
Wilhelm II was determined to make his mark on Germany and rule

social reasons. himself.

1884 did see an increase in nationalism and Bismarck
Wilhelm and Bismarck fell out over policy - particularly the issue of

used this to his advantage. socialism.

Most German expansion was in Africa, several
Wilhelm wanted social reform and wanted to woo the working classes

protectorates including Cameroon, Togoland, German

away from the SPD.
East Africa, German South West Africa. Bismarck wanted a more aggressive anti socialist policy e.g. expelling

Some of this led to clashes with Britain and France also

people from their homes those suspected of socialist agitation.
viewed this with suspicion. This bill was defeated and at the elections that followed the centre party

Britain did recognise Germany's colonies as she was

and socialists increased their seats.
distracted elsewhere. Bismarck wanted to use the Reichstag refusal to support measure

German success was not great - Bismarck had hoped to

concerning the army and anti socialism as an excuse to redraft the

adopt a hands off policy by allowing companies through

constitution and reduce the powers of the Reichstag.
their territories, this was not possible. Wilhelm opposed this plan, he had an alternative chancellor in mind in

Stopping opposition in East Africa alone cost 9 million

Caprivi.
Reichsmarks and took two years. In March 1890 - Bismarck even lost the support of the conservatives -

There colonies were both a political and economic

Wilhelm gave Bismarck an ultimatum and he resigned.
disappointment
 ‘Bismarck’s policies strengthened the unity of Germany in the years 1871 to 1890.’

his alliance with the National Liberals from 1871 to 1878 the Kulturkampf caused greater opposition to the government in

enabled him to introduce a range of measures to promote the the 1870s from the increasingly assertive and successful Centre

unity of Germany, including a new currency, the Reichsbank, Party, and caused German Catholics to pull together against the

abolition of internal tariffs, single legal code and court system government in defence of their religion
and a postal service  the Anti-Socialist Laws and State Socialism both failed to suppress

 the abandonment of the Kulturkampf in the late 1870s the growth of socialism from 1878 to 1890, causing greater political

enabled Bismarck to form a new alliance with the Catholic and social divisions. In 1890, the SPD won 35 seats in the Reichstag
Centre Party in favour of protection and the Anti-Socialist Laws,  the introduction of protective tariffs in 1878/79 caused greater

which overcame some of the hostility which had existed during division between the elites, who benefitted most from the policy,

the Kulturkampf and the working classes, who endured higher food prices as a

 the Anti-Socialist Laws initially reduced the strength of the consequence

SPD and resulted in the departure from Germany of some of  persecution of the national minorities did little to promote their

the more extreme socialist elements. Bismarck’s policies of integration into the new Reich. The French in Alsace-Lorraine and

state socialism were a constructive attempt to win over working the Danes in Schleswig-Holstein consistently elected deputies who

class opinion to the government represented their separate national identities.

 Germanisation in the Polish areas of the east was successful
in suppressing the Polish language, expelling 34,000 Poles, and
encouraging the purchase of Polish farms by Germans.

Overall, students might conclude that Bismarck’s policies strengthened the unity of Germany in the 1870s, as he famously remarked that ‘In 1871, I had

an empire, but by 1879 I had a nation’. There were, however, inherent tensions within the new Germany along religious, political and ethnic lines which

were difficult to overcome and Bismarck’s rather confrontational attitude served as much to widen these divisions as to heal them up to 1890.
How significant was the role played by political parties in influencing government policy in the years 1871

to 1890? - 2017

the National Liberals formed an alliance with Bismarck between 1871

it could be argued that, in the 1870s, Bismarck was using the National

and 1878 during which they were able to influence his policies of
Liberals for his own ends and that when their demands were becoming
national unification and the Kulturkampf too onerous he easily ditched them in 1878 and built a new political

 in 1874, the National Liberals led the Reichstag’s resistance to

alignment with the Centre Party
Bismarck’s proposal for a permanent arrangement for the military
 the introduction of protective tariffs in 1878/79 could be depicted as

budget. In the end Bismarck was forced to compromise through the

a decision taken by Bismarck independent of any influence from the

passing of the Septennial Law political parties, e.g. Bismarck recognised that German agriculture and

 the success of the Catholic Centre Party in mobilising opposition to

industry was in need of protection from foreign competition
the Kulturkampf through the 1870s forced Bismarck to abandon the
 Bismarck was personally rather paranoid about the potential threat

policy of socialism, which could explain the launch of his anti-socialist

 in order to form a new anti-socialist bloc within the Reichstag,

campaign in 1878, rather than any influence of the political parties
Bismarck introduced protective tariffs in 1878/79 to gain the support of
 Bismarck showed great independence and creativity through the

the Centre Party and to reinforce his natural alliance with the
introduction of social welfare legislation in the 1880s. This ran counter

Conservatives to the traditional ideology of his supporters in the conservative parties

 Bismarck’s proposed permanent anti-socialist bill of 1890 was rejected

yet he was able to enact the legislation
by the political parties in the Reichstag. This defeat, and the relative
 Bismarck used the prospect of war to influence the 1887 election

success of the parties opposed to Bismarck’s policies in the subsequent

and was able to manufacture a Kartell of right-wing parties which

election, contributed to his resignation. dominated the Reichstag. In this way, Bismarck was able to reassert his
dominance over the political parties for a few years.

Overall, students may conclude that under the new German constitution of 1871, Bismarck had to take note of the views of the political parties and
therefore they were able, to an extent, to influence his policies. However, Bismarck was not responsible to the Reichstag and was free to ignore the
views of the parties whenever he wanted. Bismarck often regarded the parties with disdain and sought to manipulate them at every turn in order to
manufacture support for his own policies. In this he was aided by the relative naivety and inexperience of the parties in using their potential
influence under the constitution. Therefore, government policy in this period was dominated by Bismarck’s priorities not those of the political
parties.
 Bismarck was able to

How effective was opposition? 1871-90

effectively manipulate

the Kulturkampf resulted in

the political parties in

the significant growth of the

1878/79, for example his

Centre Party
break with the National
Kaiser despite their support for

Liberals, causing the

protection in 1878/79, they

party to split, when they

The chancellor was did not become allies of

became too obstructive

only responsible to Bismarck and regularly

over the issue of

the Kaiser so the opposed his policies

protective tariffs.
Reichstag could do throughout the 1880s
little about the
chancellor

The Socialist Party grew in

Bismarck was
strength throughout the

also able to
period, ultimately winning 35
the collapse of Bismarck’s

bring the
seats in 1890. ‘Kartell’ in 1890 and his

Kulturkampf to
Bismarck was defeated by the
subsequent inability to

an end and gain

Reichstag in his attempt to
control the Reichstag played a

the support of
the anti-socialist laws
make the anti-socialist laws
significant part in his downfall.
the Centre Party
were continually
permanent in the same year
for his new
renewed from 1878 to

policy of
1890, and he was also

protection able to introduce

the National Liberals were able to force concessions out of

social welfare
Bismarck in the 1870s.
Bismarck's downfall in

legislation in the
For example, he had to agree to the Reichstag’s scrutiny of the

1890 was due to his

1880s despite
military budget every seven years, and his initial bill for a new
disagreements with the

opposition in the
Press Law had to be considerably watered down before passing

new Kaiser rather than

Reichstag through the Reichstag.

any significant

opposition in the
They also got a new currency, a Reichsbank, standardised legal

Reichstag system - the liberals wanted further unification policies

‘Opposition in the Reichstag had little effect on Bismarck’s political authority in the years 1871 to 1890.’
Explain why you agree or disagree with this view.

under the constitution of the new Germany, written by Bismarck in

the National Liberals were able to force concessions out of

1871, the chancellor was only responsible to the Kaiser. This limited the
Bismarck in the 1870s. For example, he had to agree to the

extent to which the Reichstag could exercise any influence over

Reichstag’s scrutiny of the military budget every seven years, and
Bismarck. He also retained total control of foreign policy his initial bill for a new Press Law had to be considerably watered

he was able to effectively manipulate the political parties in 1878/79, for

down before passing through the Reichstag
example his break with the National Liberals, causing the party to split,
the Kulturkampf resulted in the significant growth of the Centre

when they became too obstructive over the issue of protective tariffs.
Party and, despite their support for protection in 1878/79, they did

He was also able to bring the Kulturkampf to an end and gain the
not become allies of Bismarck and regularly opposed his policies

support of the Centre Party for his new policy of protection throughout the 1880s
the anti-socialist laws were continually renewed from 1878 to 1890, and
the Socialist Party grew in strength throughout the period,

he was also able to introduce social welfare legislation in the 1880s

ultimately winning 35 seats in 1890. Bismarck was defeated by the

despite opposition in the Reichstag Reichstag in his attempt to make the anti-socialist laws permanent

•Bismarck's downfall in 1890 was due to his disagreements with the

in the same year
new Kaiser rather than any significant opposition in the Reichstag. the collapse of Bismarck’s ‘Kartell’ in 1890 and his subsequent

inability to control the Reichstag played a significant part in his

downfall.

In arriving at an overall judgement, students may argue that Bismarck had written the German constitution in 1871 quite deliberately to place

himself at the centre of power. His position as chancellor was entirely responsible to the Kaiser and not the Reichstag, therefore in many ways his

political authority was undiminished as long as he retained the faith of the Kaiser. However, the constitution also gave the Reichstag the power to

approve or reject new legislation, therefore, Bismarck had to take note of the opinion of the parties. In doing this, Bismarck proved an able

manipulator of the political parties, however, he was not able to totally disregard their opinions and, therefore, they did play some role in limiting

his political authority and freedom of action.

 How and with what results did the economy develop and change?
what caused economic change? Geography
the introduction of protective tariffs in

1878/79, in response to requests from

Germany enjoyed a range of geographical

industrialists and agriculturalists, helped

advantages – it was rich in raw materials which

THE GOVERNMENT to protect the German economy from the

provided cheap access for German industry to

worldwide depression, and demonstrated

essential resources such as coal and iron ore. It also

the government of the newly-unified

that the government was responsive to

had several navigable rivers and the broad, flat

German Empire removed internal

the most influential economic interests. plains of the North were well-suited to railway

protective tariffs and trade barriers.

development
This stimulated trade between the
Growth of industries
different states
technological revolution due to petroleum and
People
following unification, the government
electricity. significant population growth provided both

introduced a new currency for the

Led to new way to make steel -Thomas Gilchrist
the labour force and the market for Germany’s

whole of Germany. This simplified

process - using the Iron Ore in Lorraine - made
growing industrial sector
trade and removed costly currency
steel creation faster - by 1910 - Germany was
1871 - 41 mill to 65 million in 1910
exchanges between the German states.
making double Britain's amount of steel.
Furthermore, the currency reform Growth in steel led to growth in railways and

caused mild inflation which made it

armaments - Prussian railways expanded from
Education
easier for businesses to borrow money 5000 km in 1878 to 37,000 in 1914.
other aspects of government policy

the education system was focused on the

supported economic growth, e.g.

legislation to promote the

Urbanisation development of technical and scientific skills,

which supported the expansion of industry

establishment of joint-stock

the growth of industries led to a population

companies, a single system of weights

boom moving people from countryside to cities to

and measures, support for the

work - this did lead to hygiene problems

Banking
extension of the railway network
although these quickly improved.
between 1871 and 1878, Bismarck was
the banking sector enjoyed great

Real wages rose

closely aligned with the National
freedom and invested heavily in

industrial and economic development.

Liberals, many of whom were

industrialists and businessmen. This

Business Links between banks and businesses

political alignment meant that

the cartelisation of German business removed
were very close.
government policy was in line with the
wasteful competition and maintained profit

desire of German business leaders for

levels, which could then be reinvested into

free trade in these years further expansion

 How and with what results did the economy develop and change?
What was the extent of economic change? 1871-90

Unification and end of Franco-Prussian war Economic depression

the worldwide economic downturn after 1873 did have an impact

between 1871 and 1873, the economy experienced significant

on Germany and growth rates up to 1890 fluctuated
growth due to the impact of the French indemnity paid
industrialists established the ‘Central Association of German

after the war of 1871, the introduction of a common

Manufacturers’ to put pressure on Bismarck to introduce protective

currency and the removal of internal trade barriers

tariffs in the late 1870s because German industry was suffering

from slow growth and foreign competition

Railways
the development of the German railway network continued throughout

this period which had a positive impact on economic growth and

demand for coal, iron and steel

agriculture
New industries agriculture suffered in the 1870s due to a series of bad

harvests and competition from cheap American and

by 1890, German companies were the world leaders in newer

Russian grain, hence the formation of the ‘Alliance of

industries such as synthetic dyes, medicines, plastics, electrical

Steel and Rye’ with the manufacturers to put pressure on

goods. This was partly the result of the excellence of technical

Bismarck to introduce protective tariffs
and scientific education within Germany agriculture also suffered from the impact of railways

which exposed farmers to more competition and

stimulated the movement of people from the countryside

to the towns.

Tariffs
Bismarck’s protective tariffs introduced in 1878–79 enabled

German agriculture and industry to weather the effects of

the worldwide economic downturn.

 ‘The economic growth of Germany, in the years 1871 to 1890, was due to government policies.’
Assess the validity of this view.

the government of the newly-unified German Empire removed internal

Germany enjoyed a range of geographical advantages – it was rich in

protective tariffs and trade barriers. This stimulated trade between the
raw materials which provided cheap access for German industry to

different states essential resources such as coal and iron ore. It also had several

following unification, the government introduced a new currency for

navigable rivers and the broad, flat plains of the North were well-

the whole of Germany. This simplified trade and removed costly

suited to railway development
currency exchanges between the German states. Furthermore, the
significant population growth provided both the labour force and the

currency reform caused mild inflation which made it easier for

market for Germany’s growing industrial sector
businesses to borrow money the education system was focused on the development of technical

other aspects of government policy supported economic growth, e.g.

and scientific skills, which supported the expansion of industry
legislation to promote the establishment of joint-stock companies, a
the cartelisation of German business removed wasteful competition

single system of weights and measures, support for the extension of the
and maintained profit levels, which could then be reinvested into

railway network further expansion

between 1871 and 1878, Bismarck was closely aligned with the National
the banking sector enjoyed great freedom and invested heavily in

Liberals, many of whom were industrialists and businessmen. This

industrial and economic development. Links between banks and

political alignment meant that government policy was in line with the
businesses were very close.
desire of German business leaders for free trade in these years
the introduction of protective tariffs in 1878/79, in response to requests

from industrialists and agriculturalists, helped to protect the German

economy from the worldwide depression, and demonstrated that the

government was responsive to the most influential economic interests.

In reaching an overall judgement, students may argue that German economic expansion was a natural consequence of several factors

which existed independently of government policy, such as the geographical advantages, population growth and the education system.

However, government policy following unification in 1871 did help to promote this economic expansion further and also guide the

economy through potentially rough waters through the introduction of protective tariffs in 1878/79. Therefore, economic expansion was

not ‘due to’ government policy but it was ‘helped by’ it.
 There was consistent economic growth in industry and agriculture in the years
1871 to 1890.’ Explain why you agree or disagree with this view.

between 1871 and 1873, the economy experienced significant growth

the worldwide economic downturn after 1873 did have an impact on

due to the impact of the French indemnity paid after the war of 1871,
Germany and growth rates up to 1890 fluctuated
the introduction of a common currency and the removal of internal
industrialists established the ‘Central Association of German

trade barriers Manufacturers’ to put pressure on Bismarck to introduce protective

the development of the German railway network continued

tariffs in the late 1870s because German industry was suffering from

throughout this period which had a positive impact on economic

slow growth and foreign competition
growth and demand for coal, iron and steel agriculture suffered in the 1870s due to a series of bad harvests and

by 1890, German companies were the world leaders in newer

competition from cheap American and Russian grain, hence the

industries such as synthetic dyes, medicines, plastics, electrical goods.

formation of the ‘Alliance of Steel and Rye’ with the manufacturers to

This was partly the result of the excellence of technical and scientific
put pressure on Bismarck to introduce protective tariffs
education within Germany agriculture also suffered from the impact of railways which exposed

Bismarck’s protective tariffs introduced in 1878–79 enabled German

farmers to more competition and stimulated the movement of people

agriculture and industry to weather the effects of the worldwide

from the countryside to the towns.
economic downturn.

Overall, students might conclude that Bismarck’s policies strengthened the unity of Germany in the 1870s, as he famously remarked that ‘In 1871, I had

an empire, but by 1879 I had a nation’. There were, however, inherent tensions within the new Germany along religious, political and ethnic lines which

were difficult to overcome and Bismarck’s rather confrontational attitude served as much to widen these divisions as to heal them up to 1890.