5.6: Industrialization: Government’s Role

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What is this about? What were the causes and effects of the economic strategies different governments adopted?

Ottoman Empire

  • Was in a rough position in the 1800s
    • Their nickname was the “Sick man of Europe”

Reasons for the Ottomans’ “Sickness”

  1. Powerful European countries like Britain, France, Russia were starting to eat up pieces of land from the empire
  1. Growing nationalist sentiments threatened to tear the empire apart
  1. As power and wealth shifted to industrialized nations, Western Europe got richer while non-industrialized nations like the Ottomans saw their power and wealth decline
  1. Ottomans plagued with a string of weak and ineffective leaders

Ottoman Industrialization

Rise of Muhammad Ali

  • Muhammad Ali became the governor of Egypt in 1805
  • Because of the weak Ottoman sultans, he could do what he wanted to
  • Under him, Egypt rapidly industrialized and modernized
    • Textile factories, arms factories and shipyards were built
    • Reformed military to make it look more like a European military
    • Good example of state-sponsored industrialization

Japan

  • From 1639 to 1853, Japan isolated itself from the outside world
    • Developed a rich culture and wanted to protect it from outside influence
  • However, Western Europe wanted to sell their goods to Japan

Japan Confronts Foreigners

  • In 1853, Commodore Matthew Perry, by showing up with his big military ships with the guns, forced Japan to reluctantly open up
  • However, Japan didn’t want to become the next China,
    • They witnessed the humiliation of China and the British forcing the acceptance of opium imports through war
  • So Japan decided to take steps to protect their culture through limited modernization to fend off the Westerners
  • In 1868, the shogun was overthrown and the emperor was reinstated, leading to the Meiji Restoration

Meiji Restoration

  • Japan paid for these reforms through a very high agricultural tax
  • Government played a significant role in promoting and supporting industrial development
  • However they also encouraged some private investment
    • Sometimes flourishing industries would be sold to zaibatsu, powerful Japanese family business organizations
    • The zaibatsu, along with the government, played a crucial role in the industrialization of Japan

Examples of Reforms

  • Formally abolished feudalism in 1868
  • Built railroads and regular roads
  • Established a constitutional monarchy
  • Subsidized industrialization