Political Structures and Industrialization at the End of the 19th Century in Europe

At the end of the century political constitutions and parliaments were common in Europe, but governments in Western Europe tended to be run by parliaments while in central and eastern Europe, including Germany, Austria-Hungary and Russia, governments bypassed parliament and were authoritarian bureaucracies.

For a generation Britain had been Europe's superpower, but by 1897 it was already in decline. Its apogee was past. From 1845 to 1870 it had one-fifth of the world trade, including two-fifth's of the world's trade in goods that were manufactured. Britain was then the world's leading industrial power, but some other countries were advancing industrially, especially the United States and Germany

Germany at the end of the century was the continent's leading industrial power. France had been the leader in the production and sale of luxury items, but with the industrial revolution and heavy industry France did not maintain a leadership position. In 1880 it had only a 7.8 percent share of world manufacturing. France advanced it railways in the 1880s, and its industries were producing high quality goods, but by 1900 France's share of world manufacturing was down to 6.8 percent, the year that Germany's share was 13.2. Germany's production of steel and other items associated with heavy industry added to its military strength more than perfume and lady's hats helped France militarily. The French found little compensation in being world leaders in foreign investment. Despite being a great imperial power these investments were bringing little wealth back to France. France was largely a nation of small farmers on fertile soil, but its agriculture progressed slowly as farmers resisted change.

All of Austria-Hungary had only a 4.7 percent share of the world's manufacturing output. And Italy in 1900 had only a 2.5 percent share. Italy was divided between its more industrialized north and its more rural south. Seventy percent of Italy's population (34.4 million) was associated with agriculture, and many of Italy's peasants were impoverished. Its agriculture remained backward, with soil less fertile than France and some other countries, and it had less coal than Germany or Britain, Italy's importation of coal creating a drain on its balance of payments.

At the end of the century Romania remained less industrialized than Britain, Germany or France. Its banking and credit remained underdeveloped. Romania had moved from domination by an aristocratic, agrarian oligarchy to domination by an urban bureaucratic order. Romania was governed by an elite body of less than 3,000 men. In 1900, two percent of the population was employed as state functionaries, three percent were employed in the industrial sector of its economy, and more students were studying for a career as a government bureaucrat than suited the needs of an advancing economy.

By the end of the century, Britain was behind the United States in manufacturing output, with 18.5 percent of the world's total and the U.S. with 23.6 percent. [note] The United States was moving ahead of Britain as a world power not only because of manufacturing but also its great agriculture. And the U.S. and Germany were a threat to what had been British preeminence also in another area that served national power: science. Proud Englishmen, Winston Churchill among them, destested and spoke against the idea the Britain was in decline relative to other powers, but it was a bit arrogant for them to assume that other peoples would not catch up and and surpass little England and the Britons.

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Constitutions, Parliaments and Industrialization at the End of the Century