Germany 1/4

Agriculture

Reasons for economic growth

How economically powerful was Germany?

Old and new industries

Economic developments

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German banks pursued an adventurous policy of generous long term credit facilities for industrial firms

German industry encouraged scientific research. This resulted in many important discoveries.

Germany had an excellent education system

Germany had a very good railway system.

Germany possessed huge natural resources: coal from the Ruhr, Saar and Silesia (by 1914 Germany mined a quarter of the world’s coal); iron ore from Alsace-Lorraine and the Ruhr.

Germany’s population continued to grow rapidly, from from just under 50 million in 1890 to almost 68 million in 1914

1890-Second industrial revolution focussing on 'new' industries with advanced technology e.g. electricals, chemicals, machinery and the car industry

Germany become a monopoly for the coal industry

German firms such as Siemens led the way for electrical developments

By 1913 Germany controlled half the world's trade in electricals

Highest export rates compared to Britain or Germany

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German imports rose from 2.8 to 10.8 billion marks between 1880 and 1913. German exports rose from 2.9 to 10.1 billion in the same period. The greatest rise was in manufactured goods. By 1914 the trademark ‘Made in Germany’ had become and international symbol of high quality.

The trade gap was filled by ‘invisible earnings’ - profits from investments, services, banks and insurance.

By 1914 Germany had become the world’s third largest creditor nation (after GB and USA). and German banks were established worldwide.

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There was a huge rise in the German merchant shipping fleet

By 1914 the value of trade passing through the port of Hamburg was exceeded only by New York and Antwerp.

Germany’s colonies were of almost no economic significance. German trade was mainly with Europe, North and South America and Asia

Evidence of decline

Evidence against decline

Still very important even after the revolution and was heavily protected by tariffs

Fall in prices despite tarriffs

Bad harvests

Many landowners experienced financial difficulty

Decline in people working in agriculture

New infrastructure exposed landowners to new competition

Many peasants moved to cities to work in different industries

GNP share fell from 40% to 25% in this period

Cultivation of land better organised

Cultivators of crops did well

Machinery and fertilisers more readily available

Growth of towns and protection given to farmers gave new opportunities to enterprising farmers

More than 4 million acres of land were brought under cultivation between 1880-1900

Trade and Wealth

Germany specialised in selling chemicals, metal goods, machinery, textiles and coal

By 1913 Germany was one of the major trading and exporting nations of the world

As industries grew so did overseas trade

Germany was labelled as a 'world power' when it came to trade

Free trade v Protectionism

Protectionism is when government policies restrict international trade to help domestic industries

Free trade-international trade without any barriers e.g. tariffs