The European economy 1870-1914

Résumé du document

The end of the 19th century is for Europe a period of industrialization, especially characterized by a series of innovations in transports. When continental Europe started to industrialize, it emulated British industrialization. Transports were easier. There was a national market in Britain whereas feudal structures remained in several countries. However, even if the aristocracy was still dominant, there was a gradual process of industrialization. Industrialization is a transformation of society and economy involving shift of population and resources from agrarian to manufacturing sector.

The legal precondition to this transformation in Continental Europe was the Napoleon Code. People came from the lands to the city. Technological innovations (railways as from 1840s, steel as from 1870s) applied in Continental Europe. It was necessary for the transport of commodities and constructing railways stimulated demand. Labour force was also needed. It created a national demand. Steel was first produced in Britain and then in continental Europe. Britain still dominated the market for manufacturing goods but Germany industrialized quickly.

There was a major cultural difference between Great Britain and continental Europe: the role of the State. In Germany, the military force was developed. Moreover, in this country, railways were financed by banks (long term). It was also safe and long-terms banks which financed the French economy. The French economy was somewhat slow whereas the German one was far more dynamic. Germany had already overtaken France.

Extraits

[...] It was challenging Britain and wanted a world Empire. However, we generally use the term ‘Great Depression to speak about the period 1873-1896. Indeed, there was a decrease of prices in both industry and agriculture. Investors could improve their profits but it did not foster consumption. For many people, there was no Great Depression because the standard of living was still very high. The government tried to protect German industry and agriculture. This protectionism is probably one of the most important causes of rapid economic growth in Germany. [...]

[...] It also had higher education than Britain. With industrialization, the process to produce food was easier. France and Great-Britain continued to have access to global resources. In 1914, Europe dominated the world. References - Stephen Broadberry and Kevin O'Rourke eds., The Cambridge Economic History of Modern Europe, vol. 1870 to The Present, Cambridge - Sidney Pollard, Peaceful Conquest. The Industrialization of Europe, 1780- 1914, London - Tom Kemp, Industrialization in nineteenth century Europe, Lodon chapter 1 - Alexander Gerschenkron, Economic Backwardness in Historical Perspective, 1966. [...]

[...] The European economy 1870-1914 The end of the 19th century is for Europe a period of industrialization, especially characterized by a series of innovations in transports. When continental Europe started to industrialize, it emulated British industrialization. Transports were easier. There was a national market in Britain whereas feudal structures remained in several countries. However, even if the aristocracy was still dominant, there was a gradual process of industrialization. Industrialization is a transformation of society and economy involving shift of population and resources from agrarian to manufacturing sector. [...]

[...] Illiteracy was higher in other European countries. The French elite also had access to higher education (‘Grande écoles'). The main weakness of the French education system was secondary school which was not compulsory (only 8.3 France benefited from a series of innovations (metallurgy, motorcar). In the Pas-de-Calais, there were exploitations of mines. Steel manufacturing industries such as in Nancy (Lorraine) were developed. Moto-car manufacturing was also developing. In cars were produced. France was also the biggest producer of aircrafts (French monoplane in 1914). [...]