The Industrial Revolution (1750-1870)
The Industrial Revolution (1750-1870): A Changing World
The Great Divergence
The Industrial Revolution propelled Western nations to unprecedented power and wealth, surpassing the economic limitations of the old regime. This phenomenon, known as the “Great Divergence” or “European Miracle,” stemmed from government intervention, geography, and cultural traditions. Europe’s progressive trajectory may be attributed to climate, location, resources, philosophical views, and societal organization. While the former three acted as facilitators, the latter two were fundamental. Pre-industrial Europe fostered individual freedoms through political and cultural institutions like universities and codified justice systems, with England leading the way.
The Industrial Revolution in Great Britain
England possessed ideal conditions for growth: a moderate climate, abundant water resources, and crucial coal reserves. These factors enabled the development of its culture and political system.
Characteristics of Industrialization in England
Population shifted from agriculture to manufacturing, accelerating growth from the mid-18th century. London’s population exploded, surpassing Wales’ in 1751 and Scotland’s in 1801. Technological advancements in textiles followed. The first power loom, invented in 1785, saw limited initial application due to low weaver wages. Its widespread use came later in the 19th century. The introduction of steam-powered looms and mules led to labor unrest as artisans were displaced. The steel sector focused on saving raw materials, particularly fuel. Darby introduced coal in blast furnaces in 1709 to produce pig iron, later refined into wrought iron. These innovations saved time and increased production, leading to the expansion of metal industries.
Global Dominance
In the mid-18th century, Britain’s exports were dominated by wool (69%). It re-exported colonial goods from America and Asia to Europe. By 1801, industrialization transformed trade. Britain became a food importer, focusing on cotton textiles and steel. It became the “workshop of the world,” initially serving the European market, then expanding to Latin America and the East as European markets declined. This shift led to lower prices and reduced product quality.
Urban Transportation
Industrialization increased demand for urban transport. Cities needed efficient systems to accommodate growing populations. Road networks improved, and canal construction boomed, shifting heavy goods from roads to waterways. Coastal and overseas shipping expanded, requiring port investments. Railways lowered transport costs, connected regions, and stimulated the steel industry.
The Spread of Industrialization
The First Industrial Revolution (1750) spread across Western Europe by 1870. Factors included abundant natural resources (coal, iron, waterpower), agricultural advancements, pre-existing industrial traditions, geographic proximity to England, technological innovation, and stable political institutions. Initial delays were attributed to reliance on forests for fuel and pre-existing socio-institutional regimes.
Factors in Industrialization’s Spread
The internationalization of the Industrial Revolution involved the development of international trade (raw materials, iron ore), urbanization, and transportation. Key elements were coal, iron ore, food, and minerals. Cities experienced population growth through natural increase and immigration, requiring sanitation, water supply, and lighting improvements. International capital flowed into railways and developing countries. Free trade and the gold standard provided a stable framework for economic activity.
Financial Systems
Banks and insurance companies acted as financial intermediaries. Investment options expanded from land, property, and loans to railways and industrial partnerships. The development of corporations and limited liability led to the popularity of stock market investment.