Lecture Notes: Industrialization and the Role of the State

Introduction

• Discussion on state involvement in the Industrial Revolution:
  • Some states industrialized from the bottom up, while others took a top-down approach.

Context of Industrialization

• Industrialization shifted economies and global power dynamics, primarily in Western Europe and the United States.
• Industrialized nations gained significant advantages, dominating non-industrialized nations.

Example: Egypt's Industrialization

• Egypt in the early 19th century:
  • Part of the declining Ottoman Empire, operating largely independently.
  • Muhammad Ali as a leader promoting industrialization for independence from Ottoman control.
• Steps taken by Egypt:
  • Established textile and weapons factories.
  • Peasants cultivated wheat and cotton, which were sold on the world market.
  • Raised tariffs on imported goods to protect local industry.
• Challenges faced:
  • British intervention in 1849 during Egypt's conflict with the Ottomans.
  • Britain forced the removal of tariffs, leading to an influx of British goods that stunted Egyptian industry.

Contrast: Japan's Successful Industrialization

• Japan's isolation during the Tokugawa Shogunate:
  • Limited trade with the West, only open to Dutch traders.
• Factors influencing Japan's shift:
  • Observing Western powers dominating Asian states, especially China.
  • U.S. Commodore Matthew Perry's demand for Japan to open trade, using intimidation tactics.
• Response to Western pressure:
  • Initiated aggressive state-sponsored industrialization as a defensive measure.
  • Overthrow of the shogunate in 1868 led to the Meiji Restoration, restoring imperial power.
• Key developments during the Meiji Restoration:
  • Borrowed heavily from Western industrial practices, including technology, culture, and governance.
  • Established a constitution with an elected Parliament (inspired by Germany).
  • National investment in railroads, banking systems, and factories producing textiles and munitions.
• Results:
  • Japan emerged as a major industrial power in Asia, able to engage with Europe and America on equal terms.

Conclusion

• The differing outcomes of industrialization in Egypt and Japan highlight the importance of state involvement and response to Western pressures.
• Japan's successful adaptation and industrialization contrasted sharply with Egypt's struggles, influenced by foreign intervention.