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6.2. The second industrial revolution

The seventies of XIX century were marked by the so-called second technological revolution (tab. 6.3).

This revolution did not concede on scales to the first one, it had been connected to electrification, creation of the engine of internal combustion, the invention of telegraph and phone, development of manufacture of steel, occurrence of chemical dyes and mineral fertilizers.

Table 6.3

The main features of industrial development of the countries on boundary of XIX-XX centuries.

Level of industrial development of the country

Stimulating (+) and constraining (-) factors

England

The new enterprises are not under construction, England loses the superiority; during the 1840-1914 the share of England’s agriculture was reduced from 45 to 14 %. For 1850-70 agriculture’s manufacture increased on 1/5; the real wages increased; it allowed to lower social intensity.

(-)

Growth of wages and taxes led to falling of the English industrialists’ profit; to transfer of capitals to other countries (the countries of British Empire and the USA) with a cheap labour. The English investments achieved 4 billion pounds abroad, the profit of the enterprises belonging to English capitalists abroad in 4 times surpassed profit inside the country.

Germany

The Industrial boom in 1850-70. Capacity of steam engines increased in 9 times; by that parameter Germany had overtaken France. On manufacture’s range Germany conceded England in 2,5 times (backlog managed to be overcome only by 1914).

(+)

  • The relative cheapness of a labour

  • Protectionist policy of the government.

France

Industrial production in France grew more slowly, than in Germany and the USA, in 1870-1914 it increased three times.

(-)

  • Having sufferred defeat in France - Prussian war of 1870-71, France had been compelled to pay the big reparations.

  • A lack of natural resources (coal and iron ore).

  • As foreign loans made more profit, than internal, the French capitals left abroad (by 1914 export of the capital in 4 times surpassed investments in the industry; the sum of investments abroad was 2 billion pounds).

THE USA

The largest industrial power, produced the third of a world industrial output.

(+)

  • Rich natural resources

  • Inflow of the English capitals

  • Huge immigration (During 1870-1914 in the USA arrived 30 million immigrants and the population has achieved 97 million people.)

The new technological revolution generated the new industries: electrotechnical, automobile, chemical, steelmaking. Scientific and technical knowledge were spread over the world, and new inventions were made in different countries, especially in Germany and the USA. In the same countries new industries developed also.

The new industrial society was generated in the countries of Europe and Northern America. Other countries lived in the former, agrarian world.

As it was marked above, becoming of manufacturing in Russia began later, than in the countries of the Western Europe. In 1860-1914 the Russian industry developed quickly and had managed to reduce the backlog some.

In 1914 Russia produced:

  • 4,8 millions t. of steel (26,09 % in comparison with Germany),

  • 35 millions t. coal that makes 18,42 % from German’s manufacture volume,

  • 250 thousand t. of clap was processed (51,44 % in comparison with Germany).

Russia was approximately flush with France by total volume of industrial production, however the population of Russia five times surpassed the population of France. Russia remained the agrarian, peasant country. With total number of population in 180 million, it had been occupied only 4 million in the industry.

Despite of non-uniform distribution of influence of the industrial revolutions, it is possible to allocate their basic characteristic features inherent in all countries (tab. 6.4).

Table 6.4

The characteristic of the industrial revolutions

The first industrial revolution

The second industrial revolution

The basic

technical

innovations

The steam-engine

The combustion engine

The basic

source

energy

Coal

  • Oil (opening and development of oil fields at the end of 19 centuries in the USA, Russia, in the Near East).

  • Electricity (introduction of high voltage’s lines, housekeeping using of an electricity due to the invention of Edison’s lamp, the invention of an electric tram).

The basic developing industries

  • Textile (it is supported by demographic growth).

  • Metallurgical (it is stimulated with development of a railway transportation).

  • Metallurgical;

  • Chemical (the invention of synthetic dyes);

  • Motor industry (since 1920 mass demand for automobiles in the USA);

  • Aircraft construction;

  • Shipbuilding;

  • Farmaceutical industry.

Methods of management

Old methods are applied. The sizes of the enterprises had increased; mass employment is characteristic. Transition from shop to a factory.

Introduction of a conveyor method by the American engineer Taylor. Rationalization of work by its splitting into making operations, timing of each stage of work. The result: fast increase in productivity. For the first time the method had been applied in motor industry (Ford, USA).

Industrial revolutions are accompanied by change of labour’s geography that had found reflection, first, in mass resettlement of the countrymen, supported by the railway’s development, and, second, in growth of a urban saturation (for example, by the middle of XIX century in cities and working settlements of England 86 % of the population had concentrated).

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