Abstract
The end of the 19th century is for Europe a period of industrialization, especially characterized by a series of innovations in transports. When continental Europe started to industrialize, it emulated British industrialization. Transports were easier. There was a national market in Britain whereas feudal structures remained in several countries. However, even if the aristocracy was still dominant, there was a gradual process of industrialization. Industrialization is a transformation of society and economy involving shift of population and resources from agrarian to manufacturing sector.
The legal precondition to this transformation in Continental Europe was the Napoleon Code. People came from the lands to the city. Technological innovations (railways as from 1840s, steel as from 1870s) applied in Continental Europe. It was necessary for the transport of commodities and constructing railways stimulated demand. Labour force was also needed. It created a national demand. Steel was first produced in Britain and then in continental Europe. Britain still dominated the market for manufacturing goods but Germany industrialized quickly.
There was a major cultural difference between Great Britain and continental Europe: the role of the State. In Germany, the military force was developed. Moreover, in this country, railways were financed by banks (long term). It was also safe and long-terms banks which financed the French economy. The French economy was somewhat slow whereas the German one was far more dynamic. Germany had already overtaken France.
