Second Industrial Revolution: Impacts and Imperialism

Second Industrial Revolution: Characteristics and Impacts

The Second Industrial Revolution, initially termed the "second technical revolution," encompassed a broad range of transformations within the industrialization process. While technological changes remained central, the period also witnessed significant shifts in market size and structure. These technical innovations triggered a cascade of changes affecting the workforce, the educational and scientific systems, corporate governance, work organization, consumption patterns, and even politics. This series of economic transformations ultimately led to demographic and social changes, resulting in increased political demands and gains in political representation.

Technological Advancements: The Core of Change

The period from 1870 to 1913, the heart of the Second Industrial Revolution, saw some of the most significant advancements in human control over nature. Unlike the relatively simple relationship between science and technology during the First Industrial Revolution, the Second was characterized by a more complex and intertwined relationship, requiring specialized expertise for development and implementation. Moreover, while the First Industrial Revolution primarily focused on the textile and steel industries, the Second saw a diversification and expansion of technological change. The inventor transitioned from an eccentric figure to a socially recognized professional, often integrated into large corporations.

Key Technological Fronts

The most radical innovations occurred between 1870 and 1913, primarily in the United States and Germany. Three fundamental technological fronts can be distinguished:

• New Materials: This included metals like steel, zinc, nickel, and aluminum, whose development was closely linked to advancements in electricity. Chemicals such as soda, sulfuric acid, and fertilizers also played a crucial role, particularly in the Second Agricultural Revolution.
• Energy: Energy consumption and supply increased and diversified significantly.
• Mechanization: Mechanization continued relentlessly, driven by the increasing scale of production units. The machine tool, a machine that makes other machines, became central to this process. Mechanization also extended to agriculture (combines, harvesters, balers), maritime transport, communications, and ground transportation (railways, trams, and subways).

These innovations resulted in the expansion of natural resource utilization, labor savings, and the development of complementary technologies. Companies that adopted these innovations saw significant productivity gains. The demand for specific resources favored countries possessing them, while those reliant on older technologies faced disadvantages.

New Forms of Labor Organization

The Second Industrial Revolution also brought about a new organization of labor. Efforts were made to streamline the work process, most notably through the scientific organization of labor, as exemplified by the principles of Taylorism and Fordism. These principles transformed the nature of work and the role of the worker. Labor relations within companies became increasingly unstable, with management authority often a source of conflict. Large corporations developed strategies to dominate markets, reduce competition, and stabilize supply and demand.

The Expanding Role of the State

This new model of industrialization significantly impacted the role of the state, particularly in Europe, where state intervention became more pronounced. States sought to expand foreign markets for their companies through trade agreements while simultaneously protecting domestic markets through tariffs and regulations on capital and labor markets.

The Second Colonial Expansion: Imperialism in the 19th Century

In much of Africa and Asia, where national states had not fully formed, European countries often exerted economic control without imposing direct colonial rule. This informal imperialism allowed them to ensure respect for property rights and free trade. However, from the 1880s onward, a surge in formal conquest and direct rule (colonialism and new imperialism) occurred. This resulted in the partitioning of almost all of Africa among the major European powers and, later, Japan.

Economic Interpretations of Imperialism

The economic interpretation of colonialism suggests that imperial domains served as settlement areas for surplus population, ensured the supply of cheaper raw materials to imperialist countries, and expanded markets for goods and capital. This interpretation holds some validity for Great Britain, as a significant portion of its investments and trade were directed towards its colonies and dominions. British rule over India, in particular, was crucial for the functioning of the international economy. However, recent research suggests that British imperialism may have been profitable for some investors but not necessarily for the country as a whole. France's experience differed, with only about 10% of its imports and exports and less than 9% of its foreign investments tied to its colonies, although certain sectors saw higher figures. Therefore, the Marxist thesis linking these phenomena is debatable.

Geostrategic and Socio-Political Factors

Geostrategic factors played a significant role. Great Britain aimed to protect its routes to India, while other powers sought to obstruct British access and gain prestige as major international players. This led to the formation of a hierarchical world order, both economically and politically. Socio-political causes are more complex but were likely as important as economic ones. According to Schumpeter, imperialism served as an instrument of political control for the aristocracy and a tool for national cohesion. As an expression of nationalism, imperialism helped channel discontent arising from social inequalities caused by industrialization, providing a sense of national identity, particularly for the middle classes.

In any case, imperialism, whether formal or informal, placed limits on the economic development of annexed territories. As an expression of nationalist ideology, it also pushed European powers towards a militaristic policy that ultimately culminated in the outbreak of World War I in 1914.