Industrialization and Imperialism: 1870-1914

The Second Industrial Revolution and Imperialism

The Second Industrial Revolution (1870-1914)

The Second Industrial Revolution, taking place between 1870 and 1914, was characterized by rapid industrialization. This was primarily due to the increased importance of the financial sector in industry and the rise of finance capitalism.

Innovations and Changes

Production increased because of the following factors:

• New sources of finance: To establish businesses, owners had to find new sources of finance, such as joint-stock companies, the stock exchange, and banks.
• New technological advances: Improvements to the Bessemer converter, dynamite, stainless steel, and artificial fibers.
• New business structures: Cartels, holding companies, and trusts.
• New sources of energy: Electricity and oil.
• New industries: Food industry, chemical industry, and automobile industry.

Consequences

The rise of finance capitalism affected all aspects of life. The most significant impacts were:

• The organization of work: It changed, and the assembly line developed.
• The birth of the consumer society: It developed due to an increase in production, leading to a new way of thinking. The upper class was the only social group that could afford luxury items, while the lower class had lower wages and couldn't afford consumer goods.
• Economic crises and cycles: Economic crises occurred because of the excess of products that the market could not consume.

Cycles of economic growth followed by crises became a characteristic feature of capitalism. The evolution was divided into the following stages: Economic expansion or growth, crisis, recession, and recovery.

Growth of International Trade

International trade increased due to the growth of industrial production, improvements in transport systems, and the construction of tunnels and canals. Dynamite enabled the construction of large tunnels.

The Expansion of the Second Industrial Revolution

Its development continued in the European countries that had industrialized during the First Industrial Revolution. In the Second Industrial Revolution, three countries became the world's biggest industrial producers:

• United States: Underwent rapid industrialization due to mass immigration from Europe that provided the workforce, the growth of new industries, and the concentration of many companies.
• Germany: Became the leader of European industry due to the development of its powerful iron and steel industry.
• Great Britain: Continued as an industrial power but with a lesser position.
• France: Was the fourth most important industrial producer.
• Japan: Began its process in 1870.
• Russia: Industrialized after 1890, and with state investment, developed a state-controlled bank and invested in some industries.

Industrial Development in Spain

Industrial development continued to be slower than in the rest of Europe. Foreign companies invested capital in mining.

The most industrialized areas were in Catalonia (textile industry), Basque Country (powerful iron and steel industry), and Altos Hornos de Vizcaya (steel and shipbuilding industries).

The expansion helped the iron and steel industry and also helped trade with Madrid. There were very few railway connections between the Spanish provinces.

Imperialism

A number of developed countries took control of regions and lands all over the world during the late 19th and early 20th centuries. These lands became colonies that later formed colonial empires. The main objective of imperialism was the political and economic control/exploitation of those colonies.

Causes of Imperialism

Imperialism was mainly a result of finance capitalism. Other reasons also contributed.