Belgium’s Industrial Revolution: Key Factors
Belgium was the first continental European region to fully adopt the model of British industrialization. Despite frequent political changes, Belgium showed a remarkable degree of continuity in its economic development model.
Several factors contributed to this early industrialization:
- Firstly, the region had a long industrial tradition.
- Secondly, Belgium had natural resources similar to those of Britain. Its coal deposits were readily accessible, and even after 1850, its production was greater than any other country in continental Europe. It had iron mines in the vicinity of coal deposits, as well as lead and zinc.
- Thirdly, because of its location, traditions, and political context, Belgium received important contributions from technology, business, and foreign capital, and enjoyed a privileged position in certain foreign markets, especially France.
In Belgian coal mines, steam engines were most widely used, attracting significant numbers of employers and French capital. The network of canals and waterways linking the north of France to Belgian mining sites greatly facilitated this traffic. In the 1870s, when coal production accelerated, new mines were dug in Belgium with French capital.
The cotton industry also grew. At the beginning of the 19th century, a local businessman traveled to England as an industrial spy and managed to smuggle spinning machines, a steam engine, and skilled workers to operate the machines in an abandoned convent, thus starting the modern Belgian cotton industry. This local businessman soon faced competition in the Sambre-Meuse valley and the mountains of the Ardennes, where there was a traditional steel industry that used charcoal as fuel.
Around 1815, production of steam engines and textile machinery began, employing many skilled workers from Britain. The Belgian Revolution resulted in an economic depression, which was short-lived and followed by an industrial boom.
Apart from international economic conditions, two special factors were mainly responsible for the character and economic scope of Belgium’s industrialization:
- The government’s decision to build a network of railways at public expense.
- A notable industrial innovation in the field of banking and finance.
In 1822, King William I authorized the creation of a banking corporation, which was endowed with state property. Although the bank had very broad powers given its nature, the yield was low.
In 1840, Belgium was the most industrialized country in continental Europe in terms of capital, followed very closely by Britain, even though its rates of industrial growth slowed down slightly and were later overtaken by those of other industrialized countries. In 1914, Belgium was still the most industrialized country in continental Europe in terms of output per capita, only outdone by Britain.
Throughout the century, the industries that had made possible the start of its economic growth remained the basis of its prosperity: coal, iron, nonferrous metals, engineering, and to a lesser extent than in Britain, the textile industry.
In conclusion, it is clear that the Belgian economy depended largely on the international economy, where 50% or more of its gross national product came from exports, with France particularly important in this regard.