Global Transformation: Industry and Empire (1870-1914)

Posted on Jun 18, 2026 in History

Political Systems and International Relations

1.1. Political Systems. Between 1870 and 1914, there were two political systems:

  • Parliamentary system in Western Europe and the United States. Most countries adopted universal male suffrage, and the suffragette movement supported the vote for women, which was approved in Finland (1906) and Norway (1909).
  • Autocratic system persisted in Central and Eastern Europe:
    • The Austro-Hungarian Empire. Since 1867, it was organized as a dual monarchy with two crowns: Austria and Hungary, which had in common only the Emperor.
    • The Russian Empire approved the emancipation of the serfs in 1861, but the Tsar still held all the power.
    • The Ottoman Empire, an autocratic monarchy.

1.2. The International Situation. In Europe, the main powers were:

  • The United Kingdom, the strongest commercial power in the world during the Victorian Era (1837-1901), though it lost its industrial primacy in favor of Germany and the United States.
  • Germany became the second industrial power under William I.
  • France remained a world power.

Outside Europe, the strongest powers were:

  • The United States, which, after the Civil War, colonized the central prairies and became a leading industrial power.
  • Japan, during the Meiji Era, replaced the feudal monarchy with a constitutional monarchy and became an industrial power due to economic reforms, becoming a major power in the Pacific.

European Alliance Systems

There were two stages in the history of international relations:

  • Bismarckian Alliance Systems (1871-1890): These were a set of alliances based on secret diplomacy by Bismarck. Their objective was to isolate France, which wanted to recover Alsace-Lorraine, and to stop a Franco-Russian alliance.
  • Armed Peace (1891-1914): Due to the end of the Bismarckian Alliances, European countries rearmed and formed two alliance blocks:
    • The Triple Alliance, formed by Germany, Austria-Hungary, and Italy.
    • The Triple Entente, formed by France, Russia, and the UK.

The Second Industrial Revolution

2.1. The New Sources of Energy. At the end of the 19th century, new sources of energy appeared:

  • Oil, which allowed for the creation of the internal combustion engine.
  • Electricity: The invention of the accumulator and the transformer allowed its use for lighting and energy production, ending the need to locate industries next to energy sources.

2.2. Changes in Work Organization. The need for mass production of cheap goods led to:

  • Taylorism, created by Frederick Taylor: Work was divided into small tasks that were clocked, and production incentives were granted.
  • Fordism, created by Henry Ford: Based on the assembly line, where each worker performed only one task in the manufacturing process of the product, which was moved by a conveyor belt. As a consequence, productivity increased and products could be sold at lower prices.

2.3. The Leading Industrial Sectors. New industrial sectors appeared, especially the metallurgical and chemical industries:

  • Metallurgy: New metals appeared such as copper, used in the electrical industry, and aluminum, which was obtained using electricity.
  • Chemical Industry: Elaborated new petroleum products such as plastics, dyes, synthetic fibers, pharmaceuticals, and explosives.
  • Other Industries: Electric equipment and mechanics (sewing machines, typewriters, bicycles, etc.), textiles (artificial fibers and dyes), and the food industry (canning).

Developments in Economy and Capitalism

3.1. New Means of Transport and Communication.

  • New means of transport:
    • The electric railway (Siemens, 1879), trams, and urban railways.
    • The automobile, due to the invention of the internal combustion engine (Benz, 1886).
    • The airplane (Wright Brothers, 1903).
  • Infrastructures: The completion of the Panama Canal (1904) cheapened transport between the Atlantic and the Pacific. The extension of the railway enabled the expansion of the United States towards the West and Russia towards the East.
  • Communications: Inventions such as the telephone (Meucci, 1860), the phonograph (Edison, 1878), the cinematograph (the Lumière Brothers, 1895), and the radio (Marconi-Tesla, 1897).

3.3. The Birth of Finance Capitalism. The increase in size and financial needs of companies led to the appearance of Finance Capitalism, characterized by financial and corporate concentration:

  • Financial concentration led to the emergence of large banks like Crédit Lyonnais. These banks started granting loans to industries and participating in them as shareholders.
  • Corporate concentration aimed to dominate the market with the appearance of:
    • Cartels: A group of companies that cooperate to control prices.
    • Trusts: A company that owns different parts of the production chain.
    • Holdings: Companies that control other companies.

Demographic Growth and Urbanization

4.1. Demographic Growth. Between 1870 and 1914, the European population rose from 300 to 440 million people. The main consequences were:

  • Emigration abroad, favored by better means of transport. The main countries of origin were the United Kingdom, Ireland, and Scandinavia; the main destinations were the United States, Latin America, Australia, and New Zealand. Emigration reduced unemployment and social conflicts in the countries of origin.
  • Cities increased their population; by 1900, cities such as Paris and London held over one million people. They transformed their appearance due to improved hygiene conditions (sewers and rubbish collection) and technological innovations (lighting and electric trams).

Imperialism: Causes and Forms of Domination

5.1. Imperialism and its Causes. Imperialism was the process of colonial expansion carried out by European powers, the United States, and Japan between 1870 and 1914, allowing them to occupy most of Asia, Africa, and the Pacific. The main causes were:

  • Political and strategic: Possession of colonies assured international prestige and allowed control of trade routes.
  • Demographic: Colonies allowed for reduced unemployment in the metropolis and relieved internal social tensions.
  • Economic: The Second Industrial Revolution required new territories for raw materials and markets. Colonies provided cheap labor and investment opportunities.
  • Ideological: Social Darwinism used Darwin’s ideas to proclaim the superiority of the white race and its mission to “civilize” the rest of the world.

5.2. The Forms of Colonial Rule. The major imperialist powers were Great Britain and France; others included Germany, Belgium, Spain, and Russia, plus the United States and Japan. The main types of colonies were:

  • Concessions: Commercial and political advantages obtained from independent countries, such as the transfer of ports for trade (e.g., China).
  • Protectorates: An indigenous government existed, but the colonial power controlled foreign policy, the army, and resources (e.g., Egypt and Morocco).
  • Colonies: Territories under the sovereignty of the metropolis. There were two types:
    • Settler colonies: Involved large settling of foreign populations and were self-administered (e.g., British dominions of Canada, Australia, New Zealand, and South Africa).
    • Exploitation colonies: Administered by the metropolis to exploit resources (e.g., India).

Colonial Expansion and the Scramble for Africa

6.1. The Formation of Colonial Empires.

The Scramble for Africa

Until 1870, European countries only controlled parts of the African coast. Afterward, they began to explore the continent and create empires. To prevent clashes, European powers met at the Berlin Congress (1884), establishing rules for occupation:

  • Only effective control of a territory guarantees possession, not just discovery.
  • Free navigation on the Niger and Congo Rivers was recognized.

Following the conference:

  • The United Kingdom tried to establish a continuous empire from Cairo in the north to the Cape in the south.
  • France tried to establish an empire from Senegal in the west to Somalia in the east.
  • Other territories were occupied by Belgium, Portugal, Italy, and Spain.

Imperialism in Asia, Oceania, and America

  • Asia: China and Persia were divided into areas of influence. The UK occupied India and Burma; France occupied Indochina; the Netherlands occupied Indonesia. Siam remained independent. Russia occupied Siberia and Central Asia; Japan occupied Korea and Manchuria; the US took the Philippines from Spain.
  • Oceania: The UK occupied Australia, while the US occupied archipelagos like Hawaii.
  • America: The US took Cuba and Puerto Rico from Spain, and the territory of the Panama Canal.

Consequences of Imperialism

6.2. The Consequences of Imperialism. Imperialism had different effects on the metropolis and the colonized nations:

  • The metropolis obtained wealth, social peace, and knowledge of other civilizations, but international conflicts became more severe.
  • The colonies suffered negative effects:
    • Political: Loss of independence and aggravated internal conflicts due to arbitrary borders.
    • Economic: Traditional subsistence economies were replaced with export agriculture. Industrialization was prevented to impose uneven trade (exporting raw materials and importing manufactured goods). Infrastructures were built only for the interest of colonial powers.
    • Social: Society was divided into a foreign minority (controlling government and economy) and an indigenous majority living in separate, often poorer conditions.
    • Cultural: Local cultures were replaced by the foreign cultures of the colonial powers.

Chronology of Key Events

  • 1870-1914: Imperialism and the Second Industrial Revolution.
  • 1848: Convention of Seneca Falls.
  • 1868: Meiji Restoration.
  • 1875: German Socialist Party (SPD) founded.
  • 1884-1885: Conference of Berlin.
  • 1889: Second International.
  • 1898: Fashoda Incident; Disaster of ’98.
  • 1899-1901: Boxer Rebellion.
  • 1903: Wright Brothers’ first flight.

Key Terms and Definitions

  • Imperialism: The process of colonial expansion carried out by European powers, the United States, and Japan between 1870 and 1914.
  • Metropolis: The European power that ruled a colony.
  • Monroe Doctrine: A foreign policy supported by the United States that rejected any kind of European intervention in the American continent.
  • Exploitation Colonies: Territories occupied specifically to extract raw materials.
  • Scramble for Africa: The rapid division of Africa among different colonial powers.
  • Armed Peace: A period of high tension and military buildup in Europe between 1870 and 1914.
  • Protectorate: A territory ruled by indigenous authorities but under the supervision of the metropolis.
  • Triple Entente: An alliance between Russia, France, and the United Kingdom to stop German expansion.
  • Triple Alliance: An alliance joining Germany, the Austro-Hungarian Empire, and Italy to achieve German hegemony in Europe.