Industrialized countries in the

late XIX – early XX centuries

 Industrial revolution and changes in the
society
Uneven development of capitalism
Countries of “OLD Countries of “YOUNG CAPITALISM”
CAPITALISM”
ENGLAND & GERMANY, ITALY, AUSTRIA, RUSSIA.
FRANCE, For a long time, feudal relations and
since the industrial fragmentation dominated in these countries.
revolution started here But the Great French bourgeois revolution
earlier. pushed for the weakening of feudal relations.
In the last third of the XIX century. United
Germany overtook England and France in
terms of development. In the XX century
The United States comes out on the first
place in terms of economic development.
 Modernization
The process of transition from a
traditional society to an industrial
one. This is a long and very complex
process, in its course, on the basis of
industrialization, changes cover all
aspects of society.

In the 19th century, thanks to the

completion of the industrial revolution,
industrialization develops.
 Echelons of Modernization

Countries with the high level of development of capitalism

(England, France, US) XVII – XVIII centuries.
• Early entry into the path of capitalist development;
• Evolutionary, gradual nature of development;
• The development of capitalism is determined by internal
factors;
• Impulses for development come "from below" from
society, from the business environment;
• Stable, mature structures characteristic of capitalism
are being formed.
 Echelons of Modernization

Countries with an average (Germany, Japan) and low average

(Russia, Austro - Hungary) level of development of capitalism:
2nd half of XIX century
• Later entry into the path of capitalism;
• The forced, "catching up" character of the development of
capitalism;
• A combination of internal and external factors that determine
• this development;
• Development impulses come not from society, but from
the state;
• An economy of a multi-structural type is being formed,
along with the capitalist, there are also pre-capitalist ways
 Echelons of Modernization

Countries with weak development of capitalism

(Latin America, Asia, Africa)
early 20th century:
• Late entry into the path of capitalism;
• The leading factors are external factors of development;
• Impulses come "from above" from power;
• A special monocultural character of the economy is being
formed, i.e. only those industries develop in which foreign
investments are invested;
• Stable elements of pre-capitalist relations remain;
 Features of the modernization process
Countries of the
Countries of the "first Countries of the “second "third echelon" of
echelon" of echelon” of
General Development Issues modernization (USA, modernization (Germany,
modernization
Russia, Italy, Japan) (China, Latin
England, France)
America)
The beginning of the transition to
Early Relatively late Late
the modernization of the economy

Dominant Development Factors Internal Internal & external External

Elements of traditional society Minimum Significant Significant

The path to modernization Revolutionary Reformist Mixed
Presence of liberal political
Highly developed Absent or minimal Minimum
traditions
The pace of modernization Medium High Medium
Political and social stability Relatively high Low Medium
The nature of development   Catching up Catching up
The role of the state in the
Minimal High Significant
economy
Qualitative indicators of socio-
High Low Low
economic development

The nature of the economy Private capitalist Multilayer Multilayer

       
 The main features of an industrial society

Beginning of mass Concentration of Strengthening the Expansion of social

production of production and regulatory role of functions of the state
manufactured capital the state in the
goods economy

Ford conveyor, Opportunity to Antimonopoly Laws on compensation for

labor ensure the (antitrust) policy. industrial injuries, various
intensification, the development and Formation of the insurance systems, mutual
way of life and implementation infrastructure of an assistance. 8-hour working
living conditions of new industrial society. day for certain categories of
of people changed technologies, to Protection of workers, prohibition of
get out of the Nature. child labor, old-age
crisis by pensions. Development of
combining. education, science,
Morgan Steel healthcare.
Trust. Boom of
large joint-stock
companies
 Ways of development of capitalism
"Prussian way" of development of
capitalism
- landownership has not been
liquidated;
- the bourgeoisie has no political
power;
democracy is not developed.
It's a slow road of developing the
capitalism
"American way" of development of
capitalism
- rich raw materials;
- Availability of vacant land - the base
for farming;
- a large number of immigrants;
- development of science, technology,
railway construction;
democratic system.
It's the fast track development of
capitalism
 Stages of development of capitalism

Stage 1 - XVI-end of the XVIII century - the period of initial

accumulation of capital
• The destruction of private labor property and the emergence of private
capitalist property based on the exploitation of wage labor;
• The emergence of manufactories
Stage 2 - the end of the XVIII 2nd 19th century - period of industrialization
• Transfer of all sectors of the economy to the basis of large-scale machine
production.
• The transformation of the country from agrarian to industrial.
• Rapid development of commodity-money relations based on free competition.
• The transformation of the bourgeoisie and the proletariat into the main classes
of society.
 Stages of development of capitalism

Stage 3 - the end of XIX - 1 half. XX centuries - period of imperialism

• The rapid growth of the productive forces is accompanied by a process of
concentration of property in the hands of a few and the proletarianization
of the broad masses of the working people.
• Active government intervention in the economy.
• The dominance of the financial oligarchy.
• Reaction in domestic and foreign policy
Stage 4 - 2nd half. 20th century
• Shareholding of enterprises.
• Great importance is given to mental work.
• Growth of knowledge-intensive industries regulated market.
 At the end of the XIX century, free
competition capitalism was replaced by
monopoly capitalism (imperialism).

Imperialism - monopoly capitalism –

is a special stage in the development of
capitalism, in which it seeks to spread its
dominance in all areas of society - economic,
political, ideological, cultural.
 Production upgrade prerequisites:
1. The invention of the industrial electric motor led
to a significant increase in labor productivity in all
industries.

Thomas Edison and The world's first power plant in

his light bulb New York
2. The advent of the automobile shaped an entire
automotive industry.
 3. Coal has been replaced by a new source of
energy - oil and gas. A diesel engine appears
(created by Rudolf Diesel in 1896), which is used
to equip submarines, cars, tanks, and aircraft.

Gas use. Poster Oilfields in Baku

from 1892.
4. A revolution in the organization of labor was
the assembly line, which made it possible to in-
line, mass production

Conveyor belt at
Henry Ford's car
factory
Economic crises of overproduction became
inevitable, leading to rising unemployment and
increasing poverty among the workers.
Factory
↓
machine production
↓
Reducing the number of employees
↓
Fall in purchasing power
↓
Oversaturation of the domestic market with goods

1825 - the first crisis of overproduction in England.

1836 – 1837 - Crisis in England, France, USA.
1847 - crisis throughout the European continent.
1858 - world economic crisis.
 Consequences of economic crises
Crises of overproduction

Economic consequences Social consequences

Reducing Ruin of small Reducing Rising un-

production and medium- salaries, fees employment
sized owners

Concentration of production Deterioration of the situation

and capital of the population

Formation of monopolies social upheaval

 Forms of monopolies

lower forms

Cartels Sindicates

higher forms

Trusts Concerns

Transnational
Corporations
 Signs of Imperialism
The predominance of
the export of capital
over the export of Aggravation of the
Combination of free goods struggle for the territorial
competition and and economic division of
monopolies the world

IMPERIALISM

The merger of industrial and Establishing a close

banking capital and the connection between financial
formation of a financial capital and the state
oligarchy apparatus
 CONCEPTS
• Industrial revolution - a leap in the development
of productive forces, which consisted in the
transition from manufactory to factory
production.
• Industrialization - is the process of creating large-
scale machine production in all major sectors of
the economy
• Urbanization - the growth and development of
cities as large industrial centers
• Socio-economic structure - a system of
production relations of a certain type
 CONCEPTS

• Investments - long-term capital investments in

sectors of the economy
• Monopoly - an enterprise or group of enterprises
that leads the market, which allows them to
control and determine prices
• A cartel - is a form of association of firms,
companies, banks that agree on the size of
production, markets, prices, etc., while
maintaining production independence
 CONCEPTS
• Syndicate - a form of monopolistic
association concluded for the joint sale of
goods.
• A trust - is a form of monopoly in which the
enterprises included in it completely lose their
production and financial independence and
are subject to a single management.
• Concern - a form of association of enterprises
that formally retain independence, but are
actually subordinate to centralized financial
control and management.
 Concepts
Промышленный переворот – скачок в развитии производительных сил,
состоявший в переходе от мануфактуры к фабричному производству
Индустриализация – процесс создания крупного машинного производства
во всех основных отраслях экономики
Урбанизация – рост и развитие городов как крупных промышленных
центров
Общественно-экономический уклад – система производственных
отношений определённого типа
Инвестиции – долгосрочные вложения капитала в отрасли экономики
Монополия – предприятие или группа предприятий, лидирующих на рынке,
что позволяет им контролировать и определять цены
Картель – форма объединения фирм, компаний, банков, которые
договариваются о размерах производства, рынках сбыта, ценах и т.д.,
сохраняя при этом производственную самостоятельность
Синдикат – форма монополистического объединения, заключённого для
совместного сбыта товаров
Трест – форма монополии, при которой входящие в него предприятия
полностью теряют свою производственную и финансовую
самостоятельность и подчиняются единому управлению
Концерн – форма объединения предприятий, формально сохраняющих
самостоятельность, но фактически подчинённых централизованному
финансовому контролю и руководству