Second Wave Industrialization: Comparing European and Asian Economies
Topic 4. The Second Wave
Switzerland
Switzerland was among the most precocious developed countries, boasting a high economic growth rate. This growth spurred structural development and economic takeoff. Key factors included high real income (higher wages and stable prices) and a strong external sector, where exports dominated the trade balance. Agricultural productivity was high due to advanced technology and effective farming systems. Switzerland’s industrial success was unique, combining advanced technology with labor-intensive industries, resulting in high-quality products. The education system featured both primary and higher education. Transportation innovation led to major advancements in transport systems. Banks were mixed-type (commercial and business), with inductive state intervention.
Holland
Holland experienced a high economic growth rate and extensive structural development, arguably the most significant as it considerably reduced agricultural dependence. Real income rose as wages increased faster than goods prices. Agricultural productivity was high, driven by sophisticated technological advancements necessitated by the geographical area. The industrial sector strengthened. The education system included basic primary and superior education. Transportation exerted both forward and backward drag effects. Established commercial banks were accompanied by inductive state intervention.
Scandinavia
Scandinavia had a high economic growth rate, although structural development was slower due to the greater importance of agriculture. Real income was a significant factor, with exports predominating over imports. High agricultural productivity led to the creation of the furniture industry. The education system comprised basic primary and higher education. Transportation generated a domino effect, both forward and backward. The banking system was mixed, with inductive state intervention.
Astro-Hungarian Empire
The Astro-Hungarian Empire had relative growth rates but lacked remarkable development due to the aristocracy’s continued power. Population growth fueled demand. Low agricultural productivity was a consequence of the feudal past. Industrial sectors relied on traditional industries (coal, textiles, and iron). Transportation had both forward and backward influence. The banking system was business-oriented, with direct state intervention.
Iberian Peninsula
The Iberian Peninsula’s growth rate was lower than other countries, with development hindered by the aristocracy’s influence. Population growth increased demand. Low agricultural productivity was a major economic challenge, although industry remained based on traditional sectors (coal, iron, textiles). Transportation generated only a forward drag effect. The banking system included commercial and business banking, with inductive state intervention.
Italy
Italy experienced some relative growth and development, also limited by the aristocracy. Population growth boosted demand. Low agricultural productivity stemmed from elementary school through various educational stages. Transportation improvements primarily facilitated forward communication. Industry focused on traditional sectors (coal, textiles, iron) and the emergence of new energy sources. The banking system was commercial, dedicated to financing, with inductive state intervention.
Balkans
The Balkans had a lower growth rate and less development due to the aristocracy’s dominance. Demographics showed vegetative growth with high birth rates and low mortality. Agricultural productivity was low, impacted by previous structures. Industry was traditional, but foreign industrial capital investment gradually emerged. Transportation primarily favored forward movement. Business banking was prominent, with direct state intervention.
Russia
Russia’s economic growth lagged, accompanied by lesser development. The geographical pattern was ancient, but infrastructure investment increased through public spending. Agricultural productivity was extremely low, hindered by rudimentary technology and capital shortages. Industry remained traditional. Transportation had both forward and backward drag effects. The banking system was commercial, with direct state intervention.
Japan
Japan had a low growth rate. Population growth increased demand, leading to greater public spending investment. Agricultural productivity was low, although industry still relied on traditional sectors (coal, iron, textiles). Transportation had a two-way domino effect, facilitating the development of the cotton, steel, and chemical industries. The education system included higher education. The banking system was mixed (commercial and business), with direct state intervention.