19th Century Europe: Revolutions, Industrialization, and Capitalism
The Fall of Napoleon and the European Restoration
Napoleon’s Downfall
Napoleon’s armies conquered much of Europe. This led to rising nationalistic feelings against the invaders, with patriots in many countries opposing Napoleon’s ideals. In 1808, opposition arose in Spain against Joseph Bonaparte. By 1814, Napoleon was defeated and abandoned by France and Russia. In 1815, he was defeated at Waterloo and exiled to St. Helena, where he died in 1821. Europe returned to the old regime.
The Congress of Vienna and the Holy Alliance
From 1814-1815, victorious states convened at the Congress of Vienna, aiming to restore monarchical absolutism. Led by Russia, the UK, Prussia, and Austria, they reshaped the map of Europe. These decisions were solidified with the Holy Alliance in 1815, an agreement of mutual aid among monarchs against liberal revolutions. By 1815, liberalism and nationalism were in direct opposition to the restoration.
Liberalism
Liberalism is a political system based on individual liberty. It emphasizes citizen freedom, popular sovereignty, and representative government through elected parliaments. Power is divided, rejecting absolute monarchy or tyranny. Liberalism also promotes property rights and a market economy.
Nationalism
Nationalism is a political ideology centered on the nation itself and its sovereignty. It clashed with the Holy Alliance and fueled struggles between Germany and Italy.
Revolutions of the 19th Century
Revolutions of 1820
Several uprisings occurred around 1820, spurred by the Holy Alliance. In Greece, a patriotic movement led to a successful insurrection, with independence proclaimed in 1822 and achieved in 1829. Spanish colonies in continental America also achieved victory.
Revolutions of 1830
From 1829-1835, revolutions took place across central and western Europe. In 1830, France overthrew its monarchy, establishing a liberal monarchy. Belgium also gained independence from Holland. However, Poland’s uprising was suppressed by the Czar of Russia in 1831. In 1832, Britain expanded voting rights. Spain experienced a period of gradual liberalism from 1833-1839.
Spring of the Peoples (1848)
The Spring of the Peoples in 1848 was driven by democratic ideals. The revolution began in France, leading to the overthrow of King Louis Philippe and the establishment of a social republic with universal male suffrage.
Unification of Italy and Germany
In the latter half of the 19th century, both Italy and Germany underwent unification processes. Italy’s unification was led by Piedmont, while Prussia spearheaded German unification. Both movements were driven by the bourgeoisie, who formed alliances with the wealthy, resulting in conservative outcomes.
Italy
Italy, initially divided into six states, saw its unification begin in 1859 when Piedmont, under Cavour, waged war against Austria and annexed Lombardy. Garibaldi led uprisings that overthrew existing monarchs. In 1861, Victor Emmanuel, King of Piedmont, became King of Italy. Veneto was ceded by Austria in 1866, and the Papal States were annexed in 1870, with Rome becoming the new capital.
Germany
Germany, comprised of 36 states, saw Prussia take the lead, establishing a customs union that excluded Austria. In 1848, the Prussian King was offered the crown of a unified Germany but declined due to its liberal nature. Otto von Bismarck led Prussia into wars against Austria and France, ultimately uniting all German states. Following the victory at Sedan, the Second Reich was proclaimed, with William I as Emperor (Kaiser).
Europe at the End of the 19th Century
By the end of the 19th century, Europe experienced a period of relative political stability and established borders. However, national problems persisted, particularly with independence movements. Western Europe saw advancements in voting rights and the rise of social democracy.
European Industrialization and Capitalism
The Industrial Revolution
The Industrial Revolution, beginning in Britain in the 18th century, resulted from technological and economic changes.
Demographic Revolution
The 18th century witnessed a demographic revolution in Europe, with the population growing from 140 million to 266 million. This was due to increased food production, improved hygiene, and medical progress, leading to decreased mortality and increased birth rates. Life expectancy rose from 38 to 50 years.
Agricultural Revolution
Increased demand for food led to rising agricultural prices. Private property was encouraged to stimulate production. New techniques like crop rotation and the elimination of fallow periods were adopted, along with increased mechanization. New crops improved nutrition.
Steam Engines and Factories
Technological innovation played a key role in the Industrial Revolution. Efficient machines increased production and reduced costs. Early machines were powered by humans or water, but the steam engine, invented by James Watt in 1769, revolutionized industry.
Textile Industry
The cotton industry in the UK was the first to be mechanized. In the 18th century, trade in calico from India was banned to boost domestic cloth production. Inventions like the flying shuttle (1733), the spinning jenny, and the power loom (1785) transformed textile manufacturing.
Coal, Iron, and Steel
Initially, iron production was limited, but the invention of coke (Darby, 1732) accelerated the process. Later, the Bessemer converter transformed iron into steel.
Transportation Revolution
Efficient transportation was crucial for industrial and agricultural growth. Stephenson’s invention of the locomotive in 1829 revolutionized land transport, with the first passenger line connecting Manchester and Liverpool. Steam engines were also applied to ships, reducing transatlantic crossing times to 15 days.
Expansion of Commerce
The Industrial Revolution led to a market economy. Improved transport boosted internal and international trade. Free trade theories advocated for unrestricted trade between nations to promote economic growth. However, tariffs (protectionism) were also implemented to counter British dominance.
Industrial Capitalism
Capitalism emerged as the economic model of the Industrial Revolution, with liberalism as its political counterpart.
Liberalism and Capitalism
British thinkers like Adam Smith defined economic liberalism, establishing its core principles:
- The pursuit of self-interest and profit drives the economy.
- Market forces, through supply and demand, balance competing interests.
- The state should not interfere in the economy and should allow free trade.
Under capitalism, the means of production are privately owned, and labor is exchanged for wages. The lack of planning and continuous growth led to economic crises due to overproduction and imbalances between supply and demand.
Banking and Finance
Banking played a vital role in capitalism’s development, providing capital to businesses, facilitating investments, and simplifying payments. Banks acted as intermediaries between savers and businesses. As businesses required more capital, joint-stock companies emerged, dividing capital into shares that could be traded on stock exchanges.
Expansion of Industrial Capitalism
Industrial capitalism spread to France and Belgium in the early 19th century, and by 1850-1870, it reached Russia, Germany, the USA, and Japan. These countries often utilized foreign technology and capital, along with state intervention. Southern Europe industrialized more slowly, while Eastern Europe remained largely unindustrialized until the 20th century.
Second Industrial Revolution
A second phase of industrialization began in the late 19th century, with global leadership shared between Germany, the USA, Japan, and the UK.
New Energy Sources and Industries
Electricity and oil replaced coal as primary energy sources. The dynamo (1869) generated electricity, and the transformer (1897) made it suitable for household use. Electricity revolutionized industry, leisure, and transportation. Oil extraction began in the US in the 19th century, and the internal combustion engine led to its use in automobiles (1885). Diesel engines improved ship speed and capacity. Aviation also emerged, with the Wright brothers’ first flight in 1903. Metallurgy advanced to produce materials for cars, and the chemical industry produced new materials like concrete.
New Industrial Organization
Mass production (Taylorism) increased productivity but also led to unemployment. Ford was a pioneer of mass production, which required significant investments, favoring large companies and leading to industrial concentration. Agreements between companies to fix prices emerged, leading to cartels (agreements between different companies), holdings (financial groups controlling shares in multiple companies), and monopolies (exclusive control over a product’s trade).