Lecture Notes: State-Sponsored Industrialization During the Industrial Revolution

Overview

Some states industrialized from the top-down, unlike others that did so from the bottom-up.
Focus on Egypt and Japan as examples of state-sponsored industrialization.

Industrialization shifted economic power towards Western Europe and the United States.
Non-industrialized nations risked falling behind in global power dynamics.

Ottoman Empire Context: Egypt was technically part of the Ottoman Empire but operated independently.
- The Ottoman Empire was declining due to internal issues, limiting its ability to industrialize.
Muhammad Ali's Leadership:
- Initiated industrialization to reduce dependency on Ottoman Sultans.
- Established textile and weapon factories.
- Directed agricultural production (wheat, cotton) for government profit.
- Raised tariffs to protect local industries.
Challenges:
- Britain opposed Egypt's industrial growth due to strategic interests in Asian trade routes.
- British intervention led to the removal of tariffs, flooding Egypt with British goods.
- Resulted in the stunted growth of Egypt’s industrial sector.

Tokugawa Shogunate: Japan was isolated, with limited Western interaction.
Motivation for Change:
- Witnessed Western domination in Asia, especially in China.
- Arrival of US Commodore Matthew Perry pressured Japan to open trade.
- Perry's show of force influenced Japan to reconsider its isolation.
Meiji Restoration (1868):
- Young samurai overthrew the shogunate, reinstating the emperor.
- Adopted Western industrial practices to strengthen defenses and escape domination.
- Sent emissaries to learn Western technologies and systems.
- Established a constitution with a parliament, inspired by Germany.
- State-funded infrastructure, railroads, banking, and industrial factories.
Outcomes:
- Japan emerged as a major industrial power in Asia.
- Able to negotiate as equals with Western nations.

Both Egypt and Japan initiated state-sponsored industrialization to modernize their economies.
Japan's efforts were notably more successful, allowing them to become a significant power in the region.

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