economic developments 1871-1914
- Created by: katied04
- Created on: 31-03-22 14:19
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- Economic developments1871-1914
- Initial industrial expansion
- supplemented with the political unification of 1871, adding a further stimulus to economic development.
- enabled the co-ordination of industry more effectively across the empire.
- Payment of french indemnity and inflationary effect of 1871 currency reform allowed for good, stable foundations for economic growth
- as many ironwork and machine manufacturing companies were set up in the years 1871-75, as there had been established in the preceeding 70 years.
- Untitled
- supplemented with the political unification of 1871, adding a further stimulus to economic development.
- Statistics for economic growth
- between 1873-1896, there was a world trade reccession
- until 1873, the economy had grown at san annual rate of 5%
- up until 1880s, agriculture still accounted for 35-40%of the GNP.
- by 1914, agriculture fell to 25%, whereas industry represented 45% of gnp
- 1890-1914, german industrial production tripled.
- Reasons for economic growth
- Growth in german population (40% in the whole decade) to fuel workforce. More younger people=more able bodies
- Availability of raw materials in newly unified state (ruhr, saar and silesia). big iron ore in alsace lorraine
- Other geographical advantages - e.g, transport in rhine and elbe (navigable rivers). flat northern plain = easy to build railways on (completed 1800).
- Highly developed education system - German elementary education was deemed best in the world. Higher education made increasing provision for the development of technical skills fuelling industrial growth
- there were more science graduates from just one university (munich) than all english universities combined in 1870.
- German banks were free from state control and heavily invested in industrial research, trade and economic development
- in 1872, 49 new banks were founded in Prussia (deutsche bank, dresdener bank)
- Development of ever larger businesses and organisations- newlaw in 1870 = easier to establish joint stock companies. trends towards bigger businesses and cartels.
- 8 cartels in 1875, 300 by 1900 and 600 by 1911
- Nearly every important industry had a cartel. 5 biggest dyesyuff industries were responsible for 90% of germanys output.
- siemens and aeg operated cartels in the electrical industry. Rhenish-westphalian coal syndicate controlled half of germanys output of coal and coke
- 8 cartels in 1875, 300 by 1900 and 600 by 1911
- A supportive government- industrial dvelopment was supported through bismarcks tariffs, caprivi trade treaties and measures. e.g, subsidies for shipping lines to keep transport costs down
- Initial industrial expansion
- Initial industrial expansion
- supplemented with the political unification of 1871, adding a further stimulus to economic development.
- enabled the co-ordination of industry more effectively across the empire.
- Payment of french indemnity and inflationary effect of 1871 currency reform allowed for good, stable foundations for economic growth
- as many ironwork and machine manufacturing companies were set up in the years 1871-75, as there had been established in the preceeding 70 years.
- Untitled
- supplemented with the political unification of 1871, adding a further stimulus to economic development.
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