5.7: Illiberal Modernization - Germany

The Creation of the German Empire

Germany did not exist until 1871. Instead, there were a number of independent German kingdoms which included Prussia, Austria, Bavaria, and Saxony.  Similar to the US thirteen colonies, the different German kingdoms all had distinctive traditions, customs, and histories.  Additionally, the northern German states were heavily Protestant and the southern states were Catholic. A national government would work to culturally homogenize the people living in Germany. The German states were all undergoing economic modernization before Germany was established.  As early as 1830, the German states were also connected by railroad.

It was Prussia under King Wilhelm I that led the effort to unify the German kingdoms under his rule. Otto von Bismarck, who had become prime minister of the Kingdom of Prussia in 1862, was the main architect of the German Empire. German unification was a step-by-step process that involved warfare. Overall, Austria and France were the major obstacles to German unification. However, Prussia had good relations with Russia and Britain who did not see Prussia as a major threat. Prussia soundly defeated Austria in 1866 and France in 1871.  A German empire created a new dynamic in diplomatic relations. The Franco-Prussian War (1871) was the first of three major conflicts between the French and the Germans over the next 75 years in which millions would die.  Bismarck believed that the French sought revenge after its humiliating defeat and he wanted Germany to have a strong military frontier.  France then became enraged after Germany annexed two provinces in eastern France, Alsace and Lorraine.

Figure \(\PageIndex{1}\): The Proclamation of the German Empire by Anton von Werner, in the Public Domain

Nation-Building, Economic Development, and the Social Question  

Bismarck was the prime minister of Prussia and the chancellor of Germany. With military success, Bismarck was able to have the German constitution approved.  Under this constitution, the emperor had the power to appoint all officials, command the military, and sign treaties. The German Constitution had universal direct suffrage with a secret ballot for the lower house. Although the legislative branch had the authority to approve laws and taxes, it did not control the military. Like the USA, Germany adopted a federalist system. The other German kings remained on the throne and there were separate governments for the kingdoms. However, the king of Prussia was also the German emperor. Figure 5.7.1 depicts the proclamation of the German Empire in January 1871. Artist Anton von Werner created 4 images of the Proclamation of the German Empire, which took place in the Hall of Mirrors at the Palace of Versailles. The German emperor and princes are standing on the dais. Bismarck and a group of military officers are standing below facing the emperor. This painting is the third version, and it was commissioned by the Prussian royal family in February 1885 as a present for Bismarck’s 70th birthday on April 1, 1885. Because the painting was intended to be a birthday gift for Bismarck, he is highlighted and shown wearing a uniform of a different color than the army officers around him. Why would the other German kings need to be present?

The German government was engaged in nation-building after 1871 with public education, infrastructure, a common currency, and standardized weights and measurements. At the same time, there were clear indications that many in Germany saw other Europeans as racially inferior. The national government granted the different German kingdoms the right to expel non-citizens and the Prussian government expelled 32,000 Polish inhabitants.  Many in the German government saw the east as a frontier like the US west which should be populated by Germans. The Slavic population to the east was viewed as racially inferior.  Additionally, there were members of the German legislature, such as Hermann Ahlwardt, who denounced Jews as an inferior race that had no place in the new German Empire.

Germany quickly became an industrial powerhouse that could economically compete with the USA, France, and Britain. German steel production increased dramatically after it took control over the iron mines of Lorraine. By the late 1800s, Germany produced more steel than Britain. A national bank was established in 1875 which made long-term low interest loans to businesses. High tariffs were also put in place. German businesses promoted research and development which showed impressive results in pharmaceuticals, synthetic dyes, photography, and chemical fertilizers. Germany also became a major producer of automobiles. However, the German economy was dependent on imports of raw materials and food by the early 1900s.

Although Bismarck was not a pro-labor chancellor, he did address some of the problems that workers faced. Overall, Bismarck supported the idea of a moral economy.  The health insurance law of 1883 provided health care to a large segment of wage earners. The government also provided unemployment insurance. Workers would receive compensation if injured on the job after an accident insurance law was passed in 1884. Old age and disability insurance was passed in 1889. German workers had a much more positive view of the government after these laws were passed.  As a consequence, workers more and more rejected violent revolutions and supported the German Social Democratic Party (SPD) which was an evolutionary socialist political party. 

Two New European Nation-States: Germany and Italy Compared

There were some significant similarities as well as differences between nation-building in Germany and Italy.  On one hand, Italians held some common bonds, because the history of the Roman Empire was shared by most Italians. On the other hand, Italy was under foreign domination since the Middle Ages. The Papacy controlled Rome and much of central Italy.  In the aftermath of the Napoleonic Wars, Austria controlled most of the remainder of the peninsula. The only independent state was the Kingdom of the Piedmont.  This kingdom would unite the rest of the peninsula just as Prussia brought most of Germany under its rule.

Italian nationalism was embraced by more elites by the mid-1800s. However, Italy got its independence due to outside factors. Austrian power was removed after it lost to Prussia in 1866.  Then, Britain supported Italian independence to weaken France. Italy was in a much less advantageous position than Germany in the late 1800s. It lacked coal and iron. As a consequence, Italy remained agricultural and most Italians were impoverished peasants. Additionally, most Italians did not share a common language but spoke distinctive dialects. Northern Italians dominated both the government and the military.  Only about one-quarter of all Italian men could vote, because there were income and literacy requirements. As a consequence, the vast majority of the peasantry remained disenfranchised.

Review Questions

• How had Germany become a powerful nation by 1900?
• Why did workers support evolutionary socialists in Germany?