Second Industrial Revolution and Imperialism
Definitions
Cartels: Horizontal associations of different companies working in the same industry, making collective decisions about production and prices.
Protectorates: Areas of strategic interest where the indigenous population maintained its own government, but under the supervision of the colonizing power, which controlled foreign policy and the defense of the area (e.g., Morocco and Egypt).
Sources of Energy in the Second Industrial Revolution
- Oil: New fuels such as kerosene and petrol were produced from oil in oil refineries. The importance of petrol grew with the development of the petrol-powered car in the 19th century. Rockefeller later founded the Standard Oil Company, the world’s largest oil company.
- Electricity: Hydroelectric generators produced electricity for factories. The installation of electric cables provided homes and factories with electricity. In 1879, Thomas Edison invented the electric light bulb, which replaced gaslight in factories, streets, and homes.
The Economic Cycle
- Economic Expansion or Growth: An increase in investment, production, and employment; salaries and companies’ profits increase.
- Crisis: Production is higher than demand; prices fall, profits decrease, and salaries are reduced.
- Recession or Depression: Investment falls, companies close down; there is mass unemployment, and consumption stagnates.
- Recovery: Supply balances with demand, and the economy begins to expand.
Expansion of the Second Industrial Revolution
United States
The United States underwent rapid industrialization due to:
- Mass immigration from Europe, providing the workforce.
- A high level of mechanization.
- The concentration of many companies.
- New industries, such as the chemical and electrical industries.
The expansion of the railways connected the industrial centers in the east with the agricultural areas in the west, providing plenty of raw materials and land.
Germany
Germany became the leader of European industry due to its powerful iron and steel industry. Other industries also developed, such as the electrical and chemical industries. Other factors that favored industrial development included:
- Banks, which financed new companies.
- The concentration of industrial companies.
- State support with the approval of laws that favored development, such as patent law.
The car industry was also developed.
Four Reasons for Imperialism
- For European countries, colonies were a symbol of international prestige; it was also important to control strategic locations in the case of armed conflict.
- The growth of the population in Europe and the use of machinery in factories caused high levels of unemployment, and many people emigrated to the colonies. Governments encouraged emigration to the colonies.
- Scientific progress: Geographic expeditions to unknown areas of the world, such as the African continent.
- The supremacy of white people and the perceived duty to bring European culture and Christian values to indigenous societies (considered less civilized).
The Berlin Conference (1884-1885)
The European countries interested in controlling the Congo agreed to delegate control of the region to the King of Belgium, Leopold I, and imposed a procedure for European countries that wanted to acquire African territory: in order to claim a territory, they first had to militarily occupy the area. This decision accelerated the process of the division of the African continent because the main European powers raced to be the first to arrive in the areas they wanted to occupy.
Consequences of Imperialism: Social and Cultural
- Colonizing countries imposed Western cultures, and indigenous people were relegated to second-class status.
- Social and racial segregation developed because the colonists considered themselves superior to the other indigenous people. This continued recently.