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Typology of Industrialization Processes in the Nineteenth Century FUNDAMENTALS OF PURE AND APPLIED ECONOMICS EDITORS IN CHIEF J. LESOURNE, Conservatoire National des Arts et Métiers, Paris, France H. SONNENSCHEIN, University of Pennsylvania, Philadelphia, PA, USA ADVISORY BOARD K. ARROW, Stanford, CA, USA W. BAUMOL, Princeton, NJ, USA W. A. LEWIS, Princeton, NJ, USA S. TSURU, Tokyo, Japan Fundamentals of Pure and Applied Economics is an international series of titles divided by discipline into sections. A list of sections and their editors and of published titles may be found at the back of this volume. Typology of Industrialization Processes in the Nineteenth Century Sidney Pollard Bielefeld University, Federal Republic of Germany A volume in the Economic History section edited by P. David, Stanford University, USA and M. Levy-Leboyer, Universite Paris X, France CRC Press Taylor & Francis Group Boca Raton London New York CRC Press is an imprint of the Taylor & Francis Group, an informa business First published 1990 by Harwood Academic Publishers Published 2019 by CRC Press Taylor & Francis Group 6000 Broken Sound Patkway NW, Suite 300 Boca Raton, FL 33487-2742 © 1990 by Taylor & Francis Group, LLC CRC Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works ISBN 13: 978-3-7186-5007-1 (pbk) ISBN 13: 978-1-138-43487-5 (hbk) This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. The authors and publishers have attempted to trace the copyright holders of all material reproduced in this publication and apologize to copyright holders if permission to publish in this form has not been obtained. If any copyright material has not been acknowledged please write and let us know so we may rectify in any future reprint Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, reproduced, transmitted, or utilized in any form by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying, microfilming, and recording, or in any infonnation storage or retrieval system, without written pennission from the publishers. For permission to photocopy or use material electronically from this work, please access www. copyrightcom (http://www.copyrightcom/) or contact the Copyright Clearance Center, Inc. (CCC), 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400. CCC is a not-for-profit organization that provides licenses and registration for a variety of users. For organizations that have been granted a photocopy license by the CCC, a separate system of payment has been arranged. Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com and the CRC Press Web site at http://www.crcpress.com Library of Congress Cataloging-in-Publication Data Pollard. Sidney. Typology of industrialization processes in the Nineteenth century/ Sidney Pollard. p. cm. - (fundamentals of pure and applied economics, ISSN 0191-1708; v. 39) Includes bibliographical references. ISBN 3-7186-5007-X I. Industrialization-History-I 9th century-Case studies. 2. Economic development-History-19th century--(:ase studies. 3. Industry and state-History-19th century--(:ase studies. I. Title. II. Series. HD232I.P64 1990 338.94'009'034-dc20 89-24670 CIP Contents Introduction to the Series vii INTRODUCTION 1 Regional Patterns of Industrialization 6 PART 1. BRITAIN AND WESTERN EUROPE 7 1.1. Great Britain: The Pioneer Industrial Revolution 7 Slow Rate of Growth 7 Capital Investment and War 11 Structural Transformation 15 Causes 18 The International Setting 20 Social Consequences 21 1.2. Belgium: The First Industrializer on the Continent 23 Industrial Change 23 Policies and Causes 25 1.3. Switzerland 27 1.4. France - An Alternative Type? 29 Slow Growth and a Choice of Models 29 Structure and Industrialization 34 The Role of the State 39 France's Role in the World 41 PART 2. RAILWAYS AND COMPETITION: GERMANY AND THE USA 42 2.1. Germany, the Model Follower-on 42 Growth and Transformation 42 Structural Change 45 The Railways as Leading Sector 51 Banking and Finance 52 The Export Economy 54 The Role of the State 56 2.2. The USA: Industrialization on a Primary Commodity Base 58 The American Model of Industrialization 58 The Transport Revolution 62 Agriculture and Mining 65 Economic Growth 67 The Role of the State 72 V VI CONTENTS PART 3. THE LATECOMERS, AND PROSPECTS FOR THE TWENTIETH CENTURY 1A 3.1. Russia 74 3.2. Japan 81 3.3. Into the Twentieth Century 87 Notes 88 References 91 Index 103 Introduction to the Series Drawing on a personal network, an economist can still relatively easily stay well informed in the narrow field in which he works, but to keep up with the development of economics as a whole is a much more formid able challenge. Economists are confronted with difficulties associated with the rapid development of their discipline. There is a risk of 4'balkanization" in economics, which may not be favorable to its development. Fundamentals of Pure and Applied Economics has been created to meet this problem. The discipline of economics has been subdivided into sections (listed at the back of this volume). These sections comprise short books, each surveying the state of the art in a given area. Each book starts with the basic elements and goes as far as the most advanced results. Each should be useful to professors needing material for lectures, to graduate students looking for a global view of a particular subject, to professional economists wishing to keep up with the development of their science, and to researchers seeking convenient information on questions that incidentally appear in their work. Each book is thus a presentation of the state of the art in a particular field rather than a step-by-step analysis of the development of the litera ture. Each is a high-level presentation but accessible to anyone with a solid background in economics, whether engaged in business, govern ment, international organizations, teaching, or research in related fields. Three aspects of Fundamentals of Pure and Applied Economics should be emphasized: —First, the project covers the whole field of economics, not only theo retical or mathematical economics. —Second, the project is open-ended and the number of books is not predetermined. If new and interesting areas appear, they will gener ate additional books. Vll VIU INTRODUCTION TO THE SERIES —Last, all the books making up each section will later be grouped to constitute one or several volumes of an Encyclopedia of Economics. The editors of the sections are outstanding economists who have selected as authors for the series some of the finest specialists in the world. /. Lesourne H. Sonnenschein Typology of Industrialization Processes in the Nineteenth Century SIDNEY POLLARD Bielefeld University, Federal Republic of Germany INTRODUCTION Among economic historians, the "process of industrialization'* is a technical term. It is not to be understood as implying that there was no industry before its onset. On the contrary, in many European countries as well as in some countries outside Europe industrial activity had existed for many hundreds of years before ''industrialization'* set in. Nor is it to be understood to mean that the development of industry was necessarily central to it. Very often it was, but in some countries, it was the transformation of the primary sector, agriculture or forestry in particular, that was the key feature .In more recent years, the technical transformation or modernization of the services sector has sometimes played an important part. Essentially, what is implied by the term ' 'industrialization* * is a major economic change, affecting ultimately all sectors of the economy, in which output is increased, efficiency raised and new products are being produced, by methods involving new technologies and the enlarged use of capital. These, in turn, also necessarily involve improved means of transport, of communication and of trading, the application of science, the transformation of relations between employer and employed, the building of factories and of other large units of production such as mines or shipyards, a minimum standard of literacy, the adaptation of the legal system to strengthen the security of private property, or specifying the limits of public property, and other related features. Most of these are rather vague specifications lacking precise l

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