The Birth of the Modern World (1870-1914) and the First World War (1914-1923)

Posted on Aug 15, 2024 in History

1. The Birth of the Modern World (1870-1914)

In the period between 1870 and 1914, the foundations of today’s world were established.

Europe experienced a period of tense international relations due to rivalries between European countries, particularly Germany and France.
Spain became a second-class power after it lost its remaining colonies in 1898.
The industrialized countries of Europe started producing manufactured goods in enormous quantities. At the same time, they began colonizing countries and regions which had a lot of raw materials.
The rise of consumer society resulted in greater social inequalities.
The living standards of the upper and middle classes improved, while the working class suffered the effects of economic crises.
Artists lost interest in the political and social themes which had characterized Realism. Instead, they experimented with new styles like Modernism and Impressionism.

2. Political Tension in Europe

Between 1871 and 1914, Europe experienced a period of uneasy peace. After the end of the Franco-Prussian War in 1871, there were no wars between the European powers. However, relationships between these nations were characterized by increasing tension. At the same time, many countries were increasing their production of arms and military equipment. Germany’s foreign policy became especially important during this period. This policy can be divided into two phases:

2.1 The Bismarckian System (1871-1890)

German Chancellor Otto von Bismarck established a system of alliances with Austria, Russia, and Italy. France’s main objective during this period was to recover the region of Alsace-Lorraine, which it had lost to Germany in 1871. However, for twenty years Bismarck used his alliances to prevent conflict in Europe, including a possible war with France over Alsace-Lorraine.

2.2 The Policies of Wilhelm II (1890-1914)

When he came to the throne, Kaiser Wilhelm II dismissed Bismarck and abandoned his system of alliances. Then Wilhelm II began a policy of expansionism known as Weltpolitik (world politics). This policy created tension between Germany and other European countries, especially in unstable regions such as Morocco and the Balkan Peninsula.

3. The Bourbon Restoration in Spain

The First Spanish Republic ended in 1874 with a military uprising and the proclamation of Alfonso XII, Isabel II’s son, as King of Spain. With the coronation of Alfonso XII, Spain became a parliamentary monarchy. This resulted in a period of stability.

The conservative Constitution of 1876 established limited male suffrage. There were only two official political parties, the Liberals and the Conservatives, who alternated in power by manipulating election results.
The king shared legislative power with the Cortes.

A number of significant developments occurred during Alfonso XII’s reign.

The last Carlist War, which had broken out in 1872, ended in 1876 with the victory of Alfonso XII and his forces.
Unofficial political groups, such as the Republicans, opposed the government because they felt excluded from the political system.
Regionalist movements developed in Andalucía, Cataluña, Galicia and the País Vasco.

When Alfonso XII died in 1885, his wife Maria Cristina became regent for their son Alfonso XIII, who was born shortly after his father’s death. During this regency period, a series of colonial wars took place. As a result of the Spanish-American War of 1898, Spain lost its last remaining colonies to the United States: Cuba, Puerto Rico and the Philippines. After what became known as the Disaster of ’98, Spain was relegated to second-class status in international politics.

The defeat that Spain suffered in 1898 had serious consequences. Many criticized the government, while the loss of colonial markets was detrimental to Spanish industry and trade. There were also working-class protests against conscription and the unfair rules which allowed people who could pay 2000 pesetas to gain exemption from military service.

4. Finance Capitalism

In late-19th-century Europe, industrial capitalism was increasingly being replaced by a new system known as finance capitalism. Under industrial capitalism, industrial production had been the most important economic activity. Under finance capitalism, activities related to the movement and management of money became the most important source of business profits.

4.1 Changes and Innovations

The emergence of finance capitalism in Europe was the result of a combination of technological, industrial, financial and organizational innovations.

Energy

New sources of energy were discovered that supplemented and even replaced coal and gas.

Electricity: In 1867, Bergès designed a hydroelectric generator to produce electricity for factories. This led to the construction of large hydroelectric power plants and the installation of electric cables to provide homes and factories with electricity. In 1879, Edison invented the electric light bulb, which soon replaced gas lights in factories, streets and people’s homes.
Oil: New processes were discovered to refine oil and produce new fuels such as kerosene and petrol. The first oil refinery was built in Cleveland (United States) in 1889, with money invested by Nelson Rockefeller, an American businessman. Rockefeller later established Standard Oil, the world’s largest oil company. Oil became particularly important after the invention of the petrol-powered car in the late 19th century.

Technology

A number of other inventions and innovations helped to increase industrial productivity. For example, improved versions of the Bessemer converter made it cheaper to produce steel for railways, cars, industrial machinery and very tall buildings known as skyscrapers. Other technological advances included stainless steel, which is used to make precision instruments, and new types of fibres, such as artificial silk, which revolutionized the textile industry.

New Industries

Electrical technology became an important industry, dedicated to the production of equipment such as generators, engines, wires, lamps and light bulbs. Important German companies, such as Siemens and AEG, were established during this period. New food industries, which preserved perishable food in metal tins, also developed. In addition, the chemical industry started producing a variety of goods, such as perfume, medicines and dynamite.

Finance and Investment

Business owners needed enormous amounts of capital to establish, maintain and expand their industrial operations. They obtained finance from a variety of sources.

They could request a loan from a bank, in exchange for interest.
Some banks also made direct investments in industry.
Businessmen could also form a company and sell shares to investors. In exchange, the investors received part of the profits.
Investors could buy and sell shares in different companies at the stock exchange.

New Business Structures

During the late 19th century, companies tried to reduce competition by developing new forms of organization. These included:

Cartels: Associations of different companies working in the same industry which made collective decisions about production and prices.
Trusts: Giant businesses, formed by various companies working in different industries, which used their size to control the market for their products and eliminate their competitors.
Holding companies: Large financial companies that earned a profit by buying and holding shares in other companies.

Some companies acquired monopolies over certain products or services by eliminating their competition. In some cases, governments gave monopolies to companies in return for money or a share of the company’s profits.

4.2 The Consequences of Finance Capitalism

The rise of finance capitalism between 1870 and 1914 had both positive and negative consequences.

Consumerism: A new culture of consumerism developed, as people demanded more manufactured goods. Businesses also started to use advertising to increase sales and profits.
Economic instability: In periods of economic crisis, there was less demand for goods. This reduced business profits, resulting in factory closures, high unemployment and social conflict.
International trade: There were improvements to transport systems, including new roads and railways. In addition, modern vehicles were beginning to be used, such as cars, lorries and steamships. Both these developments facilitated the expansion of international trade.
Trade imbalances: Industrialized countries bought raw materials in less developed countries and colonies at high prices. This caused serious trade imbalances between developed and less developed countries.
Increased industrial productivity: Factories began to use the assembly-line system of production. This improved productivity and provided more of the new manufactured goods which consumers demanded.

5. The Turn-of-the-Century World Economy

In the late 19th century, the process of industrialization continued in the European countries where it had already begun. It also spread to other countries around the world. By the turn of the century, three countries were the world’s biggest industrial producers.

Germany: Was Europe’s leading industrial producer. This was due to its powerful iron and steel industry, which made use of technological advances like the Bessemer converter. The electrical and chemical industries also played an important role in German economic development.
The United States: Had industrialized rapidly in the second half of the 19th century. Increased immigration from Europe provided an expanded workforce for industry, and contributed to the country’s westward expansion towards the Pacific. Westward expansion also led to the construction of a transcontinental railway system. This facilitated and increased the movement of people and goods.
Japan: Did not have many businessmen or investors who could start new industries. As a result, the Japanese government built its own factories, established banks and introduced measures to increase the country’s exports.

During this period, Great Britain ceased to be the world’s leading industrial power because its factories were outdated and it did not invest in new industries. In Spain, the most industrialized areas continued to be Cataluña (the textile industry) and the País Vasco (the iron and steel industry, and ship-building). Foreign businessmen also continued to control some industries, such as the Río Tinto mines in Huelva.

6. Imperialism

During the late 19th and early 20th centuries, a number of developed countries took control of other regions and lands all over the world. These lands became colonies and formed part of the various colonial empires. Some of these empires were newly established in this period, while in other cases, countries that were already imperial powers expanded their empires.

6.1 The Colonial Empires

European powers, along with the United States and Japan, colonized large areas of Africa, Asia and Oceania, but the largest colonial empires belonged to Great Britain and France.

The British Empire: The British Empire was the largest colonial empire. It included colonies in North America, Asia, Africa and Oceania. Its most important possessions were India and Australia.
The French Empire: The French Empire was not as extensive as the British Empire. It included colonies in Africa and Asia.

6.2 The Causes of Imperial Expansion

The main factors which led to imperial expansion were the emergence of finance capitalism and the rapid industrial development which the colonial powers were experiencing in this period.

Colonies provided industrialized countries with cheap raw materials.
Colonies also provided new markets where industrialized countries could sell the manufactured goods which they produced at home.
For the imperial powers, colonies were also a symbol of international prestige. In addition, imperial expansion could make a country more powerful in international terms. As a result, the colonial powers competed with one another for control of strategic locations around the world.
Colonies were also an attractive destination for European emigrants. Europe’s population had been growing steadily and machines were replacing many workers in factories, so many working-class people emigrated to the colonies to look for work and better living standards. Some governments encouraged emigration to reduce social conflict.

6.3 The Consequences of Imperialism

Imperialism had important consequences that still affect the world today.

Colonies were controlled by a minority that imposed European culture. Native people had second-class status and racial segregation was common.
Rivalry between the imperial powers was one of the causes of the First World War.
The world economy became extremely imbalanced because the wealthy nations controlled industry and trade, and exploited less developed countries.

7. War and Revolution (1914-1923)

Between 1871 and 1914, rivalries between European countries had resulted in the formation of two powerful alliances that fought against one another during the First World War.

The wartime economy was dominated by military needs. Many 19th-century industrial and technological advances were used to manufacture weapons and other military equipment.
Society was transformed by the war. For example, many women worked in the factories.
Russia’s participation in the First World War had severe effects on its population. This was one of the causes of the Russian Revolution.
Spain remained neutral during the First World War, but the government had to deal with a series of political, economic and social problems, as well as a military conflict in North Africa.
During this period, the Avant-garde movement greatly influenced art.

8. The First World War

The First World War was fought by two opposing alliances that included various European countries, as well as the United States and Japan.

8.1 The Causes of the War

During the period of uneasy peace in Europe at the end of the 19th century, there had been various sources of tension.

France wanted to recover the region of Alsace-Lorraine, which it had lost to the German Empire in 1871.
Between 1878 and 1908, the Austro-Hungarian Empire occupied and then annexed Bosnia-Herzegovina. This led to nationalist protests on the part of Serbians living in Bosnia. It also angered Russia, Serbia’s traditional ally.
Industrialized European countries expanded their empires and competed for control of colonies, especially in North Africa.
Britain and Germany became involved in a naval arms race. Both countries built a range of powerful new battleships known as dreadnoughts.

As a result of these disputes, two alliances were established. On 28 June 1914, Archduke Franz Ferdinand, the heir to the Austro-Hungarian Empire, was assassinated by a Serbian gunman in the Bosnian city of Sarajevo. His death triggered the sequence of events that led to the First World War: the Austro-Hungarian Empire declared war on Serbia, blaming the Serbs for the archduke’s death.

8.2 The War’s Participants and Phases

After the Austro-Hungarian Empire had declared war on Serbia, other European countries chose sides, based on their pre-existing alliances and own national interests. As a result, two alliances emerged which then fought each other for the next four years.

Participants in the War

The Central Powers: The Austro-Hungarian Empire was supported by the German Empire, the Ottoman Empire and Bulgaria.
The Allied Powers (The Allies): Serbia was supported by Great Britain, France and the Russian Empire. Later, they were joined by Japan, Romania, the United States, Greece and Portugal. Although Italy was a member of the Triple Alliance, it remained neutral at the beginning of the war. However, in 1915, Italy joined the Allied Powers, hoping to acquire territory that belonged to the Austro-Hungarian Empire.

Phases of the War

The First World War can be divided into three main phases.

Initial German Offensives (1914): The German Empire made several rapid offensives, invading Belgium, which was neutral, as well as the north of France. At the same time, German forces were fighting to prevent Russian advances in the east.
Trench Warfare and New Allies (1915-1917): In 1915, the Western Front between Germany and the Allies stabilized and a period of trench warfare began. In 1917, the United States entered the war in support of the Allies, but the Russian Empire began to collapse as a result of the Russian Revolution.
Allied Victories and the Armistice (1918): Russia withdrew from the war, but the Allies achieved a number of victories both in the east and the west. After a political revolution took place in Germany, Kaiser Wilhelm II abdicated and the armistice was signed on 11 November 1918.

9. Economy and Society During the War

From 1914 to 1918, the demands of the war had a dramatic impact on the economies and societies of the participants.

9.1 The War Economy

In countries that were at war, most economic activity was directed towards the military effort. Industry concentrated on producing supplies and equipment for the armed forces, including food, uniforms, weapons and vehicles. Many recent inventions were also used in the war, such as the telephone, the telegraph, armored tanks, airplanes, submarines, grenades, machine guns, heavy artillery and poison gas.

At the same time, the production of consumer goods decreased because there weren’t enough workers in the factories. As a result, there were shortages of some products and prices increased. In response to this problem, governments introduced rationing systems to distribute food and other basic items. People received books of ration tickets that they could exchange for limited quantities of rationed goods. Some people also bought and sold things on the black market.

9.2 Social Effects of the War

During the war, men were conscripted or recruited into the armed forces. In European countries and their colonies, advertisements were often used to encourage patriotism and convince more young men to enlist in the armed forces. As soldiers went to war, women had to replace them in many areas of economic activity, for example, in offices and factories. After the war, many women wanted to continue working, but there weren’t enough jobs for everyone. In addition, women who continued working after 1918 were usually paid less than men.

10. The Post-War World

10.1 The Peace Settlement

After the armistice, representatives of the Allied Powers met at the Paris Peace Conference (1919-1920) to decide the conditions that would be imposed on the defeated Central Powers. At the conference, United States President Woodrow Wilson proposed a peace agreement that would promote reconciliation between the various participants in the war. However, this idea was rejected by Allied countries that had been devastated during the conflict, such as France. Instead, they wanted the Central Powers to compensate them for their losses.

The Peace Treaties

The Allies ratified five treaties at the Paris Peace Conference, which were then signed by the defeated countries. The Treaty of Versailles established especially severe terms for Germany.

It could not have tanks or an air force.
It had to return Alsace-Lorraine to France and the German region of East Prussia was divided from the rest of the country by a corridor of land that was given to Poland.
It had to pay reparations to the European Allies.
It had to sign the war-guilt clause.

The Treaty of Versailles would become the source of problems because the German people felt humiliated by its harsh conditions.

The League of Nations

During the Paris Peace Conference, President Wilson proposed the establishment of the League of Nations – an international organization that would guarantee peace and prevent future wars. However, the defeated Central Powers were not allowed to join the League at first. In the end, the United States did not become a member either.

10.2 The Consequences of the First World War

The First World War had especially serious consequences for Europe, where most of the battles and destruction took place. The most significant consequences of the war were:

Death and injury: The war produced millions of casualties. This reduced the population and the available workforce in post-war Europe.
Material destruction: The fighting destroyed cities, factories, farmland and infrastructure such as roads, bridges and ports. These material losses did great damage to the European economy.
Economic decline: Europe lost its economic leadership and needed loans from the United States to rebuild after the war and repair the damage caused by the fighting. The United States became the world’s leading economic power.
New European states: The map of Europe changed dramatically as a consequence of the peace treaties. The German, Austro-Hungarian, Russian and Ottoman Empires ceased to exist. As a result, new states were created, including Poland, Czechoslovakia, Austria, Hungary, Yugoslavia and Finland.
Colonial changes: The Paris Peace Treaties gave Allied Powers control over colonies or regions that had belonged to the Central Powers before the war. These were known as mandate territories. The countries that benefited the most from the mandates were Great Britain (which gained control over Iraq and other parts of the Middle East) and France (which gained control over Syria and Lebanon).