DMPQ-. Throw light on the development of industrial capitalism in Germany.

. From the beginning Germany was politically divided. It was also industrially quite backward. Her economy worked through the guild system. Furthermore Germany was an agricultural country. It was not ready to adopt the new industrial techniques. The continuous ware fare prevented the accumulation of capital and obstructed the development of capitalism Lack of banking facilities also hampered her growth. Germany had no colonial empire and efficient mercantile policy. All these factors delayed the growth and development of capitalism.

In 1819 with the formation of Zollverein, viz, the custom union, the industrial sector was developed in Germany. It also obtained a huge amount of finance as war indemnity from Austria after the Austro-Prussian war. All these provided a fillip to the development of capitalism in Germany thus a new phase began in the process of the growth of capitalism in Germany after the unification in 1871. That year was popularly known as the year of capitalism in Germany. Subsequently Germany captured the world markets and witnessed a rapid industrialization.

Capitalism in Germany was developed on the basis of rapid growth of industries in Germany. Industrial development was possible due to availability of coal and iron-ore and making of rail-way lines. It had also remarkable growth in chemical and electrical industries. The growth of banking system also contributed to the process of capitalism in Germany.

The role of state machinery in the growth of capitalism also cannot be denied. Stateowned factories continued to exist right up to the world war-ll, Prussian and Saxon porcelain factories, the development of transport and communication especially rail-road system, the federal states iron works, mines etc encourage the growth of capitalism in Germany A number of corporate companies were founded for public utilities like power plants, gas, water works, municipal transport etc. All these developments public, private and corporate sectors provided a fillip to capitalism. The emergence of capitalism also accompanied by the rise of trade union. Subsequently a large number of trade unions with strong central organizations were formed. It is remarkable that the German trade union movement was politically oriented. Most of them were affiliated to the Social Democratic Party. In short Germany was a capitalist country. Capitalism with trade union had a strong base in Germany.

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