Industrialisation and Urbanisation History of Germany Lecture 3 Schedule 1. The Industrial Revolution 2. Population Growth and Migration 3. The Emergence of Classes 4. Cultural Change 5. Social Costs 6. Conclusion Industrial Revolution • Late 18th, early 19th c. Started in Britain, spread then over the whole European continent. • Industry replaces agrarian sector as most important economic sector • Economy based on manual labour was replaced by industry, industrial manufacturing and machinery. It began with the mechanisation of the textile industries and the development of iron-making techniques. • Improvement of transportation (canals, roads, railways) • Steam power – fuelled primarily by coal and powered machinery Dramatic increase in production capacity and productivity Fundamental socio-economic and cultural changes Second Industrial Revolution Since middle of the 19th c. Development of chemical, electrical, petroleum and steel industries Mass production of consumer goods Mechanisation of manufacture of food and drink, clothing and transport Employment for increasing number of population whose needs were satisfied by mass production Spread of the Industrial Revolution Paths to industrialisation The „British‟ model of coal & iron-fired industrialisation (Germany had many of the same raw materials as GB) Late-comer industrialisers benefit from technology transfer Role of foreign investors in early industrialisation (Irish capital in Hibernia mines in 1855) Role of state in German investment (Prussian government interest in railways, coal mines) Role of big investment banks (often represented on board of companies) (1913 ~ 100) Metal Coal Transport Building Textile 1870 7,5 13,9 8,9 20,1 31,9 1880 13,9 24,7 16,1 29 40,1 1890 23,8 36,9 27,9 45,6 65 1900 47,5 57,5 50,1 67 72,8 1913 100 100 100 100 100 Hans-Ulrich Wehler, Deutsche Gesellschaftsgeschichte, vol. 3 (Munich, 1995 Data from: Paul Bairoch, "International Industrialization Levels from 1750 to 1980" JEEH 11 New Technologies in Industrial Production in Germany 1870-1900 Heavy industry Mechanical Electrical Industry Chemical Industry engineering English blast furnace Dynamos Artificial fertilizers technology Locomotives (Siemens) Dyes Coal from Silesia and Internal Electrical engines Plastics 1885 the Ruhr combustion Telephones engine 1876 Pharmaceuticals Ores from Lorraine Power stations Cars 1889 Safety explosives Bessemer process Films 1885 1879 Diesel engines 1896 X-ray units Stainless steel 1912 Zeppelins (airships) 1900 Airplanes 1905 Famous companies/industrialists Stumm Krupp Thyssen Bosch Siemens Daimler Benz AEG - Rathenau Bayer BASF Electrical industry - Siemens Siemens pointer telegraph, 1847 Electrical dynamo, 1866 Steel – Krupp, Essen Pioneering of seamless railway wheels Alfred Krupp, 1812-87, the „Cannon King‟ Develops Bessemer process for purifying steel Close contacts with arms industry Krupp steelworks, Essen, stages of growth 1819, 1852, 1912 Krupp & munitions Krupp‟s cast-steel cannon at Krupp‟s 42cm „Dicke Bertha‟ the 1851 Exhibition in London siege gun (used to reduce Liege in 1914 and shell Paris) Some consequences of the Industrial Revolution Population effects: productivity increases, health improvements, lower birth rates Urbanisation – industry as “city forming” activity Class society Environmental damage Growth of global markets & international trade Some Peculiarities Important role of state investment (coal mining in Saarland belonged to Prussian state) Important role of finance capital (long-term investments, directors of banks in supervisory boards of shareholder companies) Important role of industrial associations (lobbyism) Important role of cartels Associations, lobbyism and trade unions Centralverband Deutscher Industrieller Free = Socialist 1876 (Central Union of German “Generalkommission” general Industrialists) commission Bund der Industriellen 1895 (Union of Christian “Gesamtverband” Industrialists) “yellow” = liberal Hansabund 1909 Vereinigung der deutschen Arbeitgeberverbände 1913 (Union of German Employers‟ Associations) Exert pressure on the government Organising the working class, and Reichstag deputies representing interests of workers, indirect successes – Successes: Tariffs 1878/79 state intervention and “welfare state” Channelling dissatisfaction? Cartels Cartels created in times of crisis (1873 ff), 70 in 1887, 143 in 1895 Agreements between companies to fix prices, regulate output Legally binding (in USA cartels were forbidden) But… So successful and useful, that even more cartels were founded after 1896, 673 by 1910 Not all sectors dominated by cartels: potash industry (100%), paper industry (90%), coal (82%), iron and cement industries (less than 50%), electrical industry (less than 10%), almost no cartels in chemical industry Schedule 1. The industrial revolution 2. Population Growth and Migration 3. The Emergence of Classes 4. Cultural Change 5. Social Costs 6. Conclusion Demographic Revolution Inhabitants of German Empire: 1864: 39,392,000; 1871: 40,997,000; 1910: 64,568,000 Growth of urban population More big cities Urbanisation of daily life Migration and “uprooting” Relative decline of agrarian population Emigration and immigration Improvement of health care – decline of infant mortality (since 1900) and higher life expectancy Schedule 1. The industrial revolution 2. Population Growth and Migration 3. The Emergence of Classes 4. Cultural Change 5. Social Costs 6. Conclusion Class In Marxist terms a class is a group of people defined by their relationship to the means of production. Social class is based on economically determined relationship to the market (owner, renter, employee etc.) – Max Weber Similar life chances Common interests Subjective factor: Identification with class Social Consequences of the Industrial Revolution Creation of an industrial working class – Rise of organised labor Growth of bourgeoisie (merchants, entrepreneurs) – economically dominant Craftsmen (old Mittelstand - middle class) become less important Civil servants and white collar workers (new Mittelstand - middle class) Der Sozialist, Robert Koehler, 1885, DHM, Berlin Villa Hügel in Essen (Krupp family) Schedule 1. The industrial revolution 2. Population Growth and Migration 3. The Emergence of Classes 4. Cultural Change 5. Social Costs 6. Conclusion First threshing-machine in Lankow near Schwerin in 1882 Carl Wilhelm Christian Malchin, 1882, DHM, Berlin Großstadt (Berlin), Hugo Krayn, 1914, DHM, Berlin Das Stufenalter der Frau, F. Leibner, um 1900 Schedule 1. The industrial revolution 2. Population Growth and Migration 3. The Emergence of Classes 4. Cultural Change 5. Social Costs 6. Conclusion Modell einer Berliner Mietskaserne, Berlin, um 1880, DHM, Berlin Elendsquartier in der Berliner Spreestr. 6, Berlin, about 1910 (DHM, Berlin) Schedule 1. The industrial revolution 2. Population Growth and Migration 3. The Emergence of Classes 4. Cultural Change 5. Social Costs 6. Conclusion Effects of “Great Depression” 1873-1896 Peculiarities of German economy: role of state, cartels, finance capital, corporations Relative financial weakness: needs of state (armament), less productive agrarian sector (Junkers), compared to Britain industrial late comer – less accumulation of capital (financial capital of world – London) Workers: improved living standards – pauperisation Bourgeoisie: weak or strong? class conscious or aiming to adopt culture of nobility Alliance of rye and iron (East Elbian Junkers and industrialists of Ruhr district) – dominant – responsible for “German special path”? How important were economic questions for outbreak of WWI?
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