Imperialism and the Second Industrial Revolution

Imperial Expansion: From Colonialism to Imperialism

Imperialism was a new phenomenon, distinct from the colonialism of the 17th and 18th centuries. Capitalism had led to the emergence of a global economy, and the economic rivalries of great powers were affected by the expansion of colonial empires.

Economic Causes

These were related to the effects of the Second Industrial Revolution. Overproduction favored the extension of protectionist policies. It was necessary to find new consumer markets for products of the metropolis, providers of raw materials, and capital investment rather than surpluses.

Political Causes

Nationalism led to a policy of power and prestige, and colonial conquest was a demonstration of both.

Other Causes

There was significant European population growth and migration. Other factors were the recovery of the missionary spirit and scientific interest. Four centuries of European expansion had left the imprint of a colonial presence spread over all continents. This remarkable experiment in colonial occupation led to territorial expansion. In a short time, a new world map was created. Already settled areas became more important for the new global economy as producers and consumers.

British Colonial Hegemony

The United Kingdom, as the leading economic and political power at the end of the 19th century, had a string of joint strategic enclaves. One type was British colonies of settlement, and the other was operating colonies that supplied the commodity market and served the metropolis. India was a supplier and consumer of cotton fabrics made from British raw material. India was the Jewel in the Crown, a whole continent, very populated and with an ancient culture.

The Scramble for Africa

In 1880, Africa was a continent almost unknown to Europeans, who occupied some coastal enclaves with strategic and commercial interest. By 1914, its territory was already fully allocated.

Second Industrial Revolution

New Forms of Capital and Expansion of Industrialization

• Great Britain: Leading industrial power, a quarter of the world's industrial production, population multiplied by three.
• France: Industrial development since 1850.
• Italy: Industrial development since 1860.
• Russia: A lot of development, although with soaring poverty levels.

New Industrial Powers

• Germany: A set of independent states, 1871 saw political unification and economic/industrial development. Incorporation into the revolution, the population multiplied by two and a half in 50 years. At the beginning of the 20th century, its chemical industry was the most important, and it became the main rival of the United Kingdom.
• United States: Increased population, abundance of resources, building of the railroad, adoption and development of capitalist production, balanced distribution of resources by the number of inhabitants.

Rhythms of the Capitalist Economy

Globalization, from the late 19th century to the present day, the transport revolution, expansion of capitalism through the creation of an international market, the character of capitalism.

The First Great Depression of Capitalism (1873-1896)

Very low production, crisis in agriculture, prices dropped, worker rings, competition between firms increased, rivalry between world powers increased, and protectionist measures were implemented.

The Great Depression: Transforming Economic Growth and Industry

Increasing competition between countries.

The Concentration of Firms

To eliminate competition, create monopolies and control the market, both domestic and international. Types:

• Cartel: Agreed price.
• Trust: Business fusion, horizontal fusion (same activity) and vertical fusion (different processes).
• Holding: Financial company. Through controlled banks, it is in the U.S. and Germany, the formation of companies endangers some states.

Economic Protection

To protect its market, tariffs were raised.

Technical Progress and Technological Innovation

Great inventions, production methods. When the population increases, economic power and consumption increase. Electric power has multiple industrial applications in transportation and everyday life. Oil is the main source of energy. The chemical industry made mass production possible, as did Taylorism.