Although it was not a united country until 1871, industrialization across Germany began in the early 1800s, and it quickly saw Germany emerge as a Great Power in Europe. German industrialization was largely driven by coal and steel production, of which Germany had rich deposits, and these were used in construction and infrastructure to modernize the country. The mechanization of agriculture also fed into this, as many people from rural regions flocked to cities in search of work. Many of the coal and iron deposits were located in Germany's west, particularly around the Rhine and Ruhr regions, and industry here benefitted from strong rail and water transport networks. Today, with over five million inhabitants, the Ruhr region is the most populous metropolitan area in the country, largely due to these developments. While Germany was among the most advanced nations in the world by the end of the 19th century, industrial output grew higher still in the 20th; between 1896 and 1913, industrial output in Germany doubled.
Interwar turmoil
After the First World War, Germany lost its resource rich territories of Alsace-Lorraine and the Saarland, while the Rhine and Ruhr regions were also occupied by France, and much of its industrial output was sent to other countries as war reparations. Hyperinflation in 1923 also saw the collapse of the German economy, and it was not until the late-1920s that economic recovery from the war truly began, although this was also short-lived. As Germany had been dependent on financial aid from the U.S. in order to recover and meet its reparation payments, the Great Depression in the U.S. had dire consequences for the German economy. From 1929 until 1932, industrial output fell once more, and many historians point to this economic difficulty as a catalyst for the rise of nationalism and fascism in Germany. The Nazi Party then ascended to power in 1933, the year the Depression ended, and the economy was restructured to support a war of expansion. Among other factors, this involved tax breaks for large businesses, allowing cartels to control local business, increasing average working hours, and prioritizing industrial employment by importing food from the east. The strength of Germany's industry then allowed the Axis powers to take control of most of Europe during the Second World War, but it was ultimately defeated by 1945.
Post-war split
Following the war, Germany was split into two separate states; commonly referred to as East and West Germany. The west was a liberal democracy with a free-market economy, while the east was a communist state with a command economy, yet both became leaders in their respective trading blocks during the Cold War. When looking at industrial growth over the next three decades, using output in 1963 as a benchmark, East Germany's output grew over nine times larger from 1949 to 1975, whereas West Germany's grew by a factor of six. It is important to remember, however, that the west was larger, more populous, and starting from a more industrially developed point than the east, therefore it was consistently more advanced. The West also had fewer restrictions placed on it from other nations after the war, and it played a leading role in European integration; whereas the East was influenced more heavily by the USSR and it had less trade with other advanced nations, which hindered its technological development. West Germany's output took a hit in the 1970s due to the 1973-1975 Recession, whereas the East's economy was protected as it had little trade with the U.S. and its partners. However, the West quickly recovered and economic stagnation in the East throughout the 1980s would contribute to the eventual collapse of the Eastern Bloc, and Germany was officially reunified in 1990.
FAQs
The application of intensive agricultural techniques led to a doubling in the value of all farm products despite a sharp decline in the rural population. Industry accounted for 60 percent of the gross national product in 1913. The German working class grew rapidly in the late 19th and the early 20th century.
Why did Germany industrialize so quickly? ›
The central growth engine for industrialization in Germany was railroad construction. The demand generated by the railroad boosted developments in the three closely interrelated key industries: mining, metal production and mechanical engineering.
What factors made Germany a key industrialized state by the late 1800's? ›
The mechanization of agriculture also fed into this, as many people from rural regions flocked to cities in search of work. Many of the coal and iron deposits were located in Germany's west, particularly around the Rhine and Ruhr regions, and industry here benefitted from strong rail and water transport networks.
Why is Germany no longer a superpower? ›
German Output Has Trended Downward Since 2017 Peak. Alongside global volatility, political paralysis in Berlin is intensifying long-standing domestic issues such as creaking infrastructure, an aging workforce and the snarl of red tape.
What were 3 major impacts of industrialization? ›
Economic changes resulted in a wider distribution of wealth, the decline of land as a source of wealth in the face of rising industrial production, and increased international trade. Sweeping social changes occurred, including the growth of cities and the development of working-class movements.
What was the main impact of industrialization? ›
The effects of industrialization included a significant population growth, the urbanization or expansion of the cities, improved access to food, a growing demand for raw materials and the development of new social classes formed by capitalists, a working class, and eventually a middle class.
What was one effect of industrialization in Germany? ›
The industrialization of cities, such as Berlin, greatly increased the price of living for the working class. Because of this, children who were a cheap source of labor, were often times expected to work daily for meager earnings.
Where did industrialization start in Germany? ›
Coal mining and iron processing developed mainly in Upper Silesia, because there the Prussian state took care of modernisation and aristocratic landowners raised capital for investment: The first co*ke blast furnaces were built and steam engines were constructed in Gliwice before the turn of the 19th century.
How did Germany get so rich? ›
The German chemical industry became the most advanced in the world, and by 1914 the country was producing half the world's electrical equipment. The rapid advance to industrial maturity led to a drastic shift in Germany's economic situation – from a rural economy into a major exporter of finished goods.
What happened in the 1850s in Germany? ›
Yet the 1850s, so politically barren, were economically momentous, for it was during this period that the great breakthrough of industrial capitalism occurred in Germany. The national energies, frustrated in the effort to achieve civic reform, turned to the attainment of material progress.
In 1870 the modern German nation was created and thereafter major industries were founded that led to the full fledged industrialization of Germany.
What was Germany's obstacles to industrialization? ›
Germany has faced challenges to its industrial power at various points in its history. After World War I, the Treaty of Versailles imposed restrictions on Germany's industrial capacity, but it rebounded in the interwar period. However, during and after World War II, Germany's industrial base was severely damaged.
Who wanted to keep Germany weak? ›
The Yalta Conference 1945
Stalin wanted Germany to stay weak. He was concerned that they might attack the USSR again in the future. He wanted them to pay compensation to the USSR for damage during the war. The USA wanted Germany to stay strong.
When was Germany at their strongest? ›
The years 1941/1942 saw the high point for the German army which controlled an area from France to deep into Russia, and from Norway to western Egypt.
What was the result of German unification? ›
The unification of Germany fundamentally altered the delicate "balance of powers" established by the Congress of Vienna with the creation of a large, wealthy, and powerful nation-state in central Europe.
What were the effects of the German revolution? ›
The German Revolution forced the abdication of Kaiser Wilhelm II, ending the Hohenzollern monarchy and plunging Germany into weeks of political struggle and uncertainty.
