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Industrialisation outside Britain

Reasons for the delay of

industrialization on the continent
The industrial Revolution spread to other countries like
France, Germany etc , but not to any important degree
before about 1830.
Transportation system was well developed; France
was far larger than England its rivers were not as easily
navigable, its seaports farther apart.
The scale of innovation and its incorporation in
economic production was not as substantial as Britain.
Industry was curbed by guild restrictions, which
prevented the easy implementation of innovation in
established manufacturing areas.
Political instability, absolutism, despotism,
corruption etc.
Lacked administrative uniformity ; lacked well
integrated market
Deferential taxation system
Lack of uniform legal systems
The Continent was not as blessed with an
abundance of raw material as England; Few
major coal ; abundant supply of timber
discouraged exploration that might have resulted
in their discovery.
Distances and distinction between social and
economic ranks were far greater on the
Continent than in England.
Privileged vs. Unprivileged
Money was not the social solvent in France
and Germany.
Country banks were not available, as in English
In some countries, laws prevented aristocrats
from engaging in business.
After the revolution middle-class Frenchmen,
though free in theory to rise as high on the social
and economic ladder as they might aspire,
appear largely to have remained content to make
only enough money to sustain a modest-size
Revolutionary constitutional changes in France, which
had favorued the lower middle class by encouraging its
acquisition of property, prevented the growth of
industry by dispersing capital into the hands of
innumerable small-scale enterprises.
The entrepreneurial spirit missing.
British industrialists believed in their patriotic duty to
prevent the exportation of their techniques. Until
1825, British artisans were forbidden to emigrate;
until 1842, much innovative machinery could not be
Factors for industrialization on the
Population continued to increase
More areas dependent upon the importation
of manufactured goods i.e. Latin America etc.
Between 1800 and 1850 population of
Europe almost doubled.
More people did not necessarily mean further
industrialization. In Ireland, for example,
where other necessary factors were absent,
more people meant less food.
Transportation improved in western Europe both during and
following the Napoleonic wars.
The Austrian Empire added over 30,000 miles of roads between
1830 and 1847;
Belgium almost doubled its road network in the same period.
France built, in addition to road, 2,000 miles of Canals.
Governments played a more direct role in the Continent than in
Napoleons rationalization of French and imperial institutions had
introduced Europe to the practice of state intervention.
His legal code, which guaranteed freedom of contract and
facilitated the establishment of joint-stock enterprises,
encouraged other rules to provide a similar framework for
commercial expansion.
In Prussia, lack of private capital necessitated
state operation of a large proportion of that
countrys mines.
In no European country but Britain would
railways be built without the financial
assistance of the state.
policies to protect national industry.
A regime of high duties on goods of foreign
manufacture was imposed by the tariff
joint-stock investment bank- the Societe Generale
was founded, an institution designed to facilitate the
accumulation of ready capital for investment in
industry and commerce.
educational system whose aim, among others, was to
produce a well-trained elite capable of assisting in the
development of industrial technology.
What Britain had produced almost by chance the
Europeans began to reproduce by design.
The import of machinery from Britain in later period
also provided momentum to industrialization.
Second Industrial Revolution
Industrial Revolution in the late 19th and 20th
centuries has popularly been termed as
second Industrial Revolution.
While Great Britain had been the birthplace of
the first revolution, the second occurred most
powerfully in the United States and Germany
It took place in the field of pharmaceuticals,
electrical, chemicals.
Important Characteristics
new technologies,
new methods,
new, alloys
Science based industries,
high degree of mechanization increase in
production or output
formations of corporations & big
companies/trust, improvement in management
Use of oil instead of steam
Advancement in organizational structure etc.
was other important characteristics of
industrial revolution.
Even in the field of iron & steel, new
technologies were adopted to produce strong
& large quantum of steel, for eg- Bessemer
process & open hearth furnace, produced high
steel on large scale.
In USA, the movement of the population to the west,
Development of trans continental railways (1852-69);
scientific developments in chemical, electrical,
invention of dynamo,
telephone of Graham bell,
wireless telegraphy by Stephen field,
type writers, etc.
provided impetus to industrialization
American produced more & it also consumed
more during the second half of 19th century,
this resulted in industrialization on large scale
Effects of Industrial Revolution on
The revolution led to mechanization
standardization of social life,
modified social institutions such as that of the family
The industrialization raised the standard of living,
enhanced the national wealth,
interdependence of the people increased because
industrialization welded the nation into a compact
economic unit, with each person dependent upon
many others for his livelihood.
The gap between employer and employee
widened due to spread of corporate ownership.
life of working class became more impersonal.
The revolution depressed agriculture and
speeded up urbanization,
encouraged immigration and made possible the
more rapid growth of population.
low living standard, slums and poverty
stimulated cultural development.
The industrialization produced cycles of
prosperity and depression with abundant periodical
The various divisions of the people were forced to
reassess their roles in society.
The Farmers once regarded as the "chosen people of
God on the earth" and long accustomed to dominating
the nation, were forced to play a subsidiary role, for,
the industrialists, now, had gained control of the
society. Their leaders launched the agrarian
uprisings of the last quarter of the century.
The Workers were forced to form labour
unions to press for more pay, for, they were
now rendered powerless to bargain
individually with corporations, shorter
hours of work and better working conditions.
They lost faith in present economic system
and joined radical parties to explain their
The traditional laissez faire policy which held that the function of
the government was to protect life and property without interfering
in economic affairs, was no longer liked
The industrialization brought the United States into world affairs
economically, politically and emphasized American nationalism.
It changed the nature of both politics and diplomacy.
Ablest men were drawn into industry, the political offices in cities,
states, and the nation were filled with second rate people. Many
of them were corrupt and opportunists. It resulted into the wave of
fraud which had shocked the world.
A strong wave of imperialism swept nations
The natural environment has also suffered
from the effects of the Industrial Revolution.
Pollution, deforestation, and the destruction
of animal and plant habitats continue to
increase as industrialization spreads.
Japanese experience of
Japanese experience of industrialization was different from western
country in more than one way, eg-
the normal pattern for industrialization in western countries was progressed
from light industry, mining, metallurgy, energy, chemical textiles to mass
production of goods,
whereas in Japan, heavy industries came into existence without following
the root of industrial progression.
In fact, railways developed in Japan even before iron & steel industries,
since materials were imported from west.
Similarly, ship building industries were established simultaneously with
textile & iron-steel industry,
Japanese industries were established because the states promoted them
& bore the burden through subsidies, protection etc. (fiscal measures)
The criteria used for industrialization in Japan were national interest
rather than economic viability of the project.
Role of Government in
Industrialization of Japan
There were many reforms undertaken in Japan after Meiji
restoration (1868).
These included fiscal reforms, agricultural reforms etc.
One of the important agenda of the Meiji reforms was the
modernization of the Japanese economy.
Although the Meiji government inherited heavy debts from its
predecessors but it also acquired some newly built factories and
shipyards at the same time.
In the closing years of the Tokugawa the Bakufu as well as several
han had begun to tentatively establish ironworks and foundries. For
example, the han of Hizen had in 1850 established a iron smelting
Similarly in shipbuilding there had been certain developments. The
Bakufu as well as other han had built steamships.
Coal mines were being modernized and cotton
spinning plants built. The Meiji government built on
this small but developing foundation.
In order to achieve the goals of economic development
the Meiji government set up a ministry of industries
and opened modern coal mines in 1870.
Funds were raised by levying an agricultural tax.
These funds were utilized for the industrialization of
the country. Series of developments took place during
the period.
Japans first railway line, between Tokyo and the port
of Yokohama, was built in 1870-1872.
A machine tool factory was set up in 1871,
a cement plant in 1875 and a glass factory in
1876 but till 1881 the balance of trade was not in
favour of Japan.
Textile machinery was imported from Europe,
and foreign technicians were employed to train
workers, as well as to teach in universities and
schools, and Japanese students were sent
In 1872, modern banking institutions were
Between 1868-1881 , the government spent about 36.4
million yen in these enterprises but the development was
limited since for instances by 1881 there were just two
hundred miles of rail lines in the country.
Later the government encouraged private investment in
this fields by guaranteeing the investments. For example by
1903 there were 4,500 miles of operating track and 70 per
cent of this was built by private companies.
In 1906 the Railway Nationalization Bill led to the
acquisition of seventeen companies and the Imperial
Japanese Railways had more paid up capital than all
industrial companies combined.
In shipbuilding also the government followed a policy of selective
subsidies to encourage the growth of indigenous business
enterprises. Initially Iwaski Yataro's Mitsubishi Company was given
massive subsidies and it was able to effectively counter foreign
competition. But soon there were changes and the NYK (Nippon
Yusen Kaisha), formed in 1885, became the major company.
The Shipbuilding Encouragement Act of 1896 is a good example of
the way in which domestic construction was promoted.
The Act provided that steel steamships built in wholly owned
shipyards would get a subsidy of 12 yen per ton for ships of 700-
1000 tonnes and 20 yen per tonne for 1,000 or more tonne ships.
If the engines were Japanese made than 75 yen per horsepower
would be given as addition.
Between 1883 and 1913 the government gave
subsidies so that the company could expand
its fleet and they were able to raise their
share of tonnage carried into Japanese ports
to 50 per cent.
As a side benefit the development of
shipbuilding industries led to development of
engineering and other related skills.
The government laid more stress on the development
of heavy-strategic military and chemical industries to
make Japan a powerful state.
The radical changes brought about by the programme
of modernisation led to the growth of the modern
sector that had close links with military demands.
When military expenditure increases then the modern
sector grew as it did during the Sino-Japanese and
Russo-Japanese wars.
It helped to disseminate Western technology and skills.
There were similar developments in the
generation of electric power which was
increased by technological developments in
hydroelectric generation and high tension
Cheaper labour and capital costs allowed
small companies to buy cheaper motors which
in turn enabled them to increase their
introduction of these new developments led to
a gradual change.
Textile, glass, silk, paper and cement industries
had made sufficient progress by 1890.
It was through the efforts of individuals and
support of the government that Zaibatsu (large
business organisations controlled by individual
families) dominated the economy for a
considerable period of time.