G-10 History Notes - Development of Capitalism and Nationalism (1815-1914) PDF

**Unit 1** **DEVELOPMENT OF CAPITALISM AND NATIONALISM 1815 to 1914** 1. **Features of Capitalism** Capitalism has been the dominant economic system in the Western world since the collapse of feudalism. In the capitalist system, most means of production are privately owned. The growt...

**Unit 1** **DEVELOPMENT OF CAPITALISM AND NATIONALISM 1815 to 1914** 1. **Features of Capitalism** Capitalism has been the dominant economic system in the Western world since the collapse of feudalism. In the capitalist system, most means of production are privately owned. The growth of capitalism was influenced significantly by the Industrial Revolution. The Industrial Revolution first started in England in the 18th century. The great Industrial Revolution was mainly responsible for the tremendous economic transformation in Western Europe and the United States of America in the nineteenth century. After England, Belgium, France, and the German states were European countries that became industrialized. Following the Industrial Revolution, new sources of energy and power, particularly coal and steam, replaced wind and water powers. The Factory system was created to replace the domestic system (in which individual workers used hand tools or simple machinery to fabricate goods in their own homes or workshops attached to their homes). Industrialization promoted the development of new socio-economic classes, especially the proletariat and the bourgeoisie. During the early modern period, Europeans built a transatlantic economy in which the slave trade and slavery played a key role. Modern industrial capitalism arose from eighteenth-century transatlantic commerce. Europeans made a large amount of money through their network of colonies and sugar, cotton, and tobacco plantations. These riches sometimes referred to as 'capital', were used to fund Europe's industrialization. As a result, the transatlantic slave trade and plantation riches were important factors in the development of capitalism in Europe. For example, the slave trade delivered tremendous riches to British port towns such as Liverpool. Textile mills subsequently played a key part in the rise of the city of Manchester. The means of production in the capitalist system are owned by a small group of wealthy individuals known as capitalists or bourgeoisie. The proletariat receive wages for their labour. The creation of products and services in a capitalist economy is based on demand and supply, or free commerce and competition, as in a market economy. The government imposes fewer restriction and interferes less. The capitalist economy differs from the socialist economy's central planning structure, which is also known as a command economy. A command economy is one in which the government is in charge of the economy. It is also an economy in which the government controls the volume of production, their distribution and prices. Feature of capitalism - Private property - Competition - Market price determine by demand supply - Profit motives - No/less government interference In countries like Germany and Italy, industrialization was linked to the mass militarization and nationalism, which ultimately led to World War I. Then these countries felt that they had to build up colonial empires in order to compete with the longtime colonial powers such as Great Britain and France. 2. **Features of Nationalism and Formation of Nation States** **Nationalism** is the strong sense of belonging and loyalty to one\'s nation, leading to pride in one\'s country and unwavering support for the government and its pursuits. 1. **Unification Of Italy** Italy was left completely fragmented by the settlements reached at the Congress of Vienna in 1815. Italy in 1815 faced three obstacles to unity. - 1 The first was the Austrian occupation of Lombardy (Lombardia) and Venice in the\ north and northeast of the Italian peninsula.\ 2. The second was the Papal States, the principality under the sovereignty of the pope;\ the Papal States straddled the centre of the peninsula, cutting the north off from the\ south. Often foreign powers, as for instance France in 1849, intervened to protect Papal independence.\ 3 The third obstacle was formed by the existence of several independent states. Inaddtion to this - Lack of consensus: Different groups wanted different forms of government- monarchy, republic, federal structure. \... - Foreign interferences: Powerful foreign states like Austria, France, and the Papal States had interests in Italian affairs. \... - Role of the Church: The Pope and the Catholic Church were against the idea of a unified Italy, mainly because that threatened papal territories. On the French border was the Kingdom of Sardinia, also called Piedmont-Sardinia, which had slowly expanded since the Middle Ages and was the most advanced state in Italy. The Kingdom of Sardinia consisted of the region called Piedmont in northwestern Italy and the island of Sardinia. The Kingdom of the two Sicilies occupied the southern half of the peninsula and the island of Sicily. Other small states were the duchies of Tuscany (Toscana), Parma, and Modena, all governed by relatives of the Habsburgs, the family that ruled Austria. In each of these states, the monarch exercised absolute powers of government. Leaders and the process of the unification movement of Italy Giuseppe Mazzini: He had a vision for a united Italy. Mazzini viewed "Nation States" to be a necessary and opposed monarchy. He was a member of the Carbonari, a secret society of Italian unification formed to abolish foreign rules in Italy. In 1831, Mazzini founded a movement called "Young Italy" which attracted tens of thousands of Italians. He wanted a liberal democratic republic to govern a united Italy. Mazzini played a leading role in the 1848 Revolution. For a short period, he was a leader of a Roman republic proclaimed in the Papal States. But the French forces overthrew the republic established by Mazzini. **Count Camillo di Cavour**: In 1852, Cavour became prime minister of the independent Kingdom of Sardinia. He was an aristocrat and well-educated. He took part in the 1848 revolutions. He strengthened Piedmont by promoting industry, encouraging railroad building, improving agriculture, fostering education and enlarging the army. Cavour disliked absolutism and favoured the British type of parliamentary government. He wanted Italy to be both industrialized and united. He tried to reduce the influence of the Roman Catholic Church in politics. Since Austria was the greatest obstacle to Italian unity, Cavour searched for allies against Austria. In 1858, Cavour and Napoleon III made a secret agreement. Napoleon agreed to send troops to drive the Austrians out of Lombardy and Venetia if Austria declared war on Sardinia. For this favour, Cavour promised to give the regions of Nice and Savoy to France. Cavour manoeuvred Austria into declaring war on Piedmont. The combined Sardinia-French forces defeated the Austrians. Sardinia got Lombardy and Venetia from this war. France was to keep Nice and Savoy. Parma, Modena and Tuscany drove out their pro-Austrian rulers, and by plebiscites, they voted to be annexed to Sardinia. **Giuseppe Garibaldi**, leading the Red Shirts, played a key role in the unification of Italy by capturing southern Italy and uniting it with the northern kingdom of Piedmont-Sardinia. In 1861, the Kingdom of Italy was established under King Victor Emmanuel II, though Venetia and the Papal States remained outside its control. Italy gained Venetia in 1866 after Austria\'s defeat by Prussia in the Seven Weeks War, and in 1870, following the withdrawal of French troops during the Franco-Prussian War, Italians took Rome, completing the unification. Rome became the capital, though the Pope retained control over Vatican City. **1.2.2. Unification of Germany** In the mid-19th century, many Germans supported the idea of a unified Germany, but various forces opposed it. The German Confederation, created in 1815 by the Congress of Vienna, consisted of 39 independent states, with Austria dominating. Prussia eventually led the unification efforts, though the 1848 revolution to unify Germany failed. Key opposition to unification before 1870 came from foreign powers like Austria, Russia, and France, small German states fearing Prussian control, and Catholic states concerned about Protestant domination. **Steps toward Unification** During the Napoleonic French Empire (1804--1814), Germans developed a sense of unity to resist French control. The growth of the German railway symbolized emerging unification, as travel became easier and promoted a sense of togetherness. In the 1848 Revolution, German liberals pushed for unification based on shared tradition, education, and language. However, the movement failed due to disagreements among the ruling classes over the form of government to establish. The Zollverein, created in 1834, was an economic alliance between German states that removed tariffs, promoting trade and economic growth. Otto von Bismarck, a conservative politician from the Prussian nobility, played a key role in unifying Germany under Prussian leadership. Appointed as Prussian prime minister in 1862 by King Wilhelm I, Bismarck used his philosophy of *realpolitik* (practical politics) and a \"Blood and Iron\" policy (military power) to strengthen Prussia and push for German unification. Prussia\'s economic and military strength, especially its iron and steel industries, were critical to this effort. **Realpolitik:** pursue goals by any means necessary (go to war, lie, break treaties) "Blood and Iron" policy- using military power to achieve unification of Germany. German unification was achieved by the force of Prussia. The unification movement was enforced from the top-down, a product of Prussian royal policies. Otto von Bismarck led German unification by appealing to national feelings and through the following three wars: Danish War 1864 (against Denmark), Seven Weeks War 1866 (against Austria), and Franco-Prussian War -1870/71 (against France). **The Danish War:** The first war of German unification was the 1864 Danish War, which began over the duchies of Schleswig and Holstein. As a result of the war, Schleswig was given to Prussia, while Austria kept Holstein. The Austro-Prussian War of 1866: The Seven Weeks War, which was a war between Prussia and Austria was not simply to control the territory of Schleswig and Holstein. More importantly, it was about the leadership of Germany. Prussia was supported by Italy in its move. The small German states that feared Prussian domination were on the side of Austria. At the Battle of Königgrätz (or Sadowa) on 3 July 1866, the Prussian army quickly defeated the Austrian forces. **Results of the Seven weeks war**: Holstein was annexed by Prussia Austria was excluded from German affairs Venetia was given to Italy The North German Confederation was formed under the leadership of Prussia. It consisted of all German states except states in the south, where the people, were liberal and Catholic **The Franco-Prussian war of 1870-71** This was a conflict between France and Prussia in 1870--1871. To provoke France to declare war on Prussia, Bismarck published the Ems Telegram, a carefully edited version of a conversation between King Wilhelm and the French ambassador to Prussia. The Ems Telegram was significant because it encouraged France to declare war on Prussia in 1870. This conversation inflamed popular sentiment on both sides in favor of war. Napoleon soon declared war on Prussia. Then, the Southern German states of Bavaria, Wurtemberg, Baden, and Hesse Darmstadt entered the war on the side of Prussia opposing French invasion. On September 2, 1870, French forces were defeated at the battle of Sedan. The defeat brought the French Second Empire to an end. The proclamation of the new German Empire at Versailles was the pinnacle of Bismarck\'s efforts to unite Germany. In the Treaty of Frankfurt signed on 10 May 1871: A) France agreed to cede to Germany the provinces of Alsace and Lorraine, rich areas in coal and iron; B) France agreed to pay huge war indemnities to Germany. In 1871, the German Empire was proclaimed at the Palace of Versailles, outside Paris, with King William of Prussia as German Emperor (Kaiser). The unification of Germany was largely driven by Prussian leadership, particularly through the efforts of Otto von Bismarck. Bismarck, using his philosophy of \*\*realpolitik\*\* and his \"Blood and Iron\" policy, achieved unification through a series of wars: 1\. \*\*Danish War (1864)\*\* -- Prussia gained Schleswig, while Austria kept Holstein. 2\. \*\*Austro-Prussian War (1866)\*\* -- Prussia defeated Austria, annexed Holstein, and excluded Austria from German affairs, forming the North German Confederation. 3\. \*\*Franco-Prussian War (1870-71)\*\* -- Bismarck provoked France into declaring war, leading to Prussia\'s victory. The German Empire was proclaimed in 1871 at Versailles, with the annexation of Alsace and Lorraine. The Zollverein, an economic alliance, and Bismarck\'s military strategy played key roles in achieving a \*\*top-down unification\*\* under Prussian dominance, culminating in the establishment of the German Empire under Kaiser Wilhelm I. **1.2.3. The American Civil War** The American Civil War took place from 1861 to 1865 between the Union and Confederates. The Union fought to abolish slavery, while the Confederates wanted to keep slavery for their economy. Most fighting was in the South, leaving it devastated. The seceding states sought independence, not to control the government. The southern economy depended mainly on cotton. The white plantation owners in the southern states viewed slavery as essential for their survival. As the economy of the northerners was based more on the industry than agriculture, they hired people as factory workers at low wages, thus reducing the need for enslaved people in the north. This economic disparity led to opposing differences in societal and political views. In the north, the influx of immigrants contributed to a society in which people of different cultures and classes lived and worked together. The South, however, continued to hold onto a social order based on white supremacy in both private and political life. Many in the north came to view slavery as not just socially unjust, but morally wrong. In the north, there was a strong anti-slavery movement known as Abolitionism. The term abolitionist generally refers to dedicated opponents of slavery in the early 19th century America. In the 1830s, the movement gathered some momentum. Some famous leaders of this movement were William Lloyd Garrison and Frederick Douglass. Abraham Lincoln won the 1860 presidential election, amended the constitution, and vowed to stop slavery\'s spread. Eleven southern states seceded, forming the Confederacy under Jefferson Davis, leading to the Civil War Lincoln\'s Emancipation Proclamation and Homestead Law freed slaves in rebel states, leading to constitutional amendments for equality. This sparked a turning point in the civil war, with many slaves joining the Federal army. Lincoln\'s assassination by a Confederate sympathizer in 1865 marked a tragic end. Results of the civil war On December 6, 1865, the Thirteenth Amendment was adopted, which officially outlawed slavery. The collapse of the plantation economy in the southern part. The rise of industrialization, larger city centres, and the development of infrastructures such as railroads, banks, and factories in the southern part of the USA. However, progress was slow. The constitutional changes acted as a point of departure in the struggle for equal civil and human rights. **1.2.4. Nationalism and the "Eastern Question"** The Eastern Question was a diplomatic problem posed in the 19th and early 20th centuries. It arose as a result of the rise of nationalist feelings among the Balkan peoples, the declining Turkish (Ottoman) empire and the divergent interests of Great powers in the near east. The Balkans were part of the decaying Ottoman Empire. This region was home to peoples with multi-ethnic backgrounds, such as Serbs, Bulgarians, Rumanians, and Greeks. In the early 1800s, discontent in the Balkan region was increased by the rise of the nationalism. Following the decline of the Ottoman Turkish rule in this region, different countries competed to dominate the Balkans. By 1830, Greece became an independent state and Serbia achieved some self-rule. In the 1850s and 60s, independence and nationalist movements among the people of the Balkan provinces of the Ottoman Empire grew bigger and stronger. Russia, Great Britain, France, Austria-Hungary, Italy and Germany followed their own national interests in the Balkan region. The foreign powers intervened for their own ends in the struggles between the Turks and the nationalist groups. **Russia:** Russia supported the Balkan nationalists for several reasons: The Russians were Slavs, like the Bulgarians and the Serbs. They were Orthodox Christians as were many of the discontented Balkan groups. Moreover, Russia wanted to gain access to the Black Sea and the Mediterranean Sea. **Britain:** Britain's main concern was to protect its interests in India and did not want the Russians in the Mediterranean, where they might challenge their sea power. They supported the Turks to suppress the nationalist movements. **Austria:** Austria supported the Ottomans because they did not want Russian expansion in the region. Revolts broke out in several parts of the Balkan region in 1875. Romania, Montenegro and Serbia got their independence in 1878. Between 1878 and 1913, the Ottoman Empire was reduced in size because Great Britain, Austria, France and Italy shared its territories. As a result, tension and hostility were rising to a dangerous level. 1\. What is the primary feature of capitalism? A\) Government control of production B\) Private property C\) Collective ownership D\) Central planning 2\. What was the main obstacle to Italian unity in 1815? A\) Lack of industrial resources B\) foreign power intervention C\) The influence of the United States D\) Strong support for democracy 3\. What was the role of the Zollverein in German unification? A\) It created a military alliance against France. B\) It established economic cooperation among German states. C\) It promoted socialist ideas in Germany. D\) It limited trade between Germany and other countries. 4\. Which war led to the formation of the North German Confederation? A\) Danish War B\) Franco-Prussian War C\) Austro-Prussian War D\) World War I 5\. The primary cause of the American Civil War was: A\) Industrialization in the North B\) The question over slavery C\) Westward expansion D\) Foreign intervention 6\. What was a major outcome of the American Civil War? A\) Expansion of slavery in the South B\) Economic decline in the North C\) The adoption of the Thirteenth Amendment D\) Increased agricultural production in the South 7\. Which country supported Balkan nationalists due to shared Slavic and Orthodox Christian ties? A\) Austria B\) France C\) Britain D\) Russia