Unit 1: Development of Capitalism and Nationalism 1815-1914

This unit explores the transition of the Western world from feudalism to industrial capitalism and the subsequent rise of nationalism. It details how economic shifts led to the unification of major European powers and internal conflicts like the American Civil War.

1.1 Features of Capitalism

Capitalism became the dominant economic system in the West following the collapse of feudalism. Its growth was driven primarily by the Industrial Revolution, which began in England during the 18th century.

• Means of Production: Most means of production (factories, tools, land) are privately owned.
• Economic Drivers: The system is operated for profit maximization and guided by a free market economy.
• Social Impact: The Industrial Revolution created two distinct social classes: the proletariat (working class) and the capitalist (owners).
• Spread of Industry: Following England, nations like Belgium, France, and the German states became industrialized.

1.2 Features of Nationalism and Formation of Nation States

Nationalism is a sentiment of belonging to a particular nation, often rooted in shared culture, language, or territory.

• Contributing Factors:
  • Economic: Concern for the standard of living.
  • Social: Group values, customs, and traditions.
  • Political: The desire for autonomy or power.
  • Historical/Geographic: Attachment to specific lands and longstanding practices.
• Historical Roots: The Renaissance, the Protestant Revolution, and the expansion of commerce helped grow nationalist sentiment before the 19th century.

1.2.1 Unification of Italy

After the Congress of Vienna (1815), Italy was left fragmented and faced significant obstacles to unity, including foreign occupation.

1. Leadership: The movement was led by the Kingdom of Piedmont-Sardinia.
2. Cavour’s Diplomacy: Count Camillo di Cavour, the Prime Minister, formed an alliance with France to drive Austria out of Italian territories.
3. Garibaldi’s Conquest: In the south, Giuseppe Garibaldi led the “Red Shirts” to capture Sicily and the southern mainland, later handing power to King Victor Emmanuel II.
4. Final Steps: Venetia was annexed in 1866, and Rome was added in 1870, completing the unification.

1.2.2 Unification of Germany

While the Austrian Empire initially dominated the German Confederation (39 states), Prussia eventually took the lead in unification.

• Zollverein (1834): An economic alliance that removed tariffs between German states, promoting a strong shared economy.
• Bismarck’s Strategy: Prime Minister Otto Von Bismarck (the “Iron Chancellor”) used Realpolitik and a “Blood and Iron” policy to unify Germany through military strength.
• Three Wars of Unification:
  1. The Danish War (1864): Over the duchies of Schleswig and Holstein.
  2. The Austro-Prussian War (1866): Also known as the Seven Weeks War; Prussia defeated Austria at the Battle of Sadowa.
  3. The Franco-Prussian War (1870/71): Defeat of France led to the final unification of the German Empire.

1.2.3 The American Civil War (1861–1865)

The war was fought between the Northern states (The Union) and the Southern states (The Confederates).

• Core Conflict: The Union sought to abolish slavery, while the Confederates relied on it as the basis of their plantation economy.
• The Goal of the South: The southern states attempted to secede and declare independence rather than take over the federal government.
• Consequences: The Union was preserved, and slavery was ended in the United States.

1.2.4 Nationalism and the “Eastern Question”

The “Eastern Question” referred to the diplomatic problems caused by the decline of the Ottoman Empire.

• Balkan Nationalism: Diverse ethnic groups (Serbs, Greeks, Bulgarians, Rumanians) sought independence from Turkish rule.
• Great Power Intervention: European powers (Russia, Britain, Austria) competed for influence in the Balkans, often leading to conflict.

Key Terminology

• Capitalism: An economic system where means of production are privately owned and operated for profit.
• Industrial Revolution: The period of rapid economic change where machines and factories replaced manual labor.
• Nationalism: A movement or sentiment emphasizing loyalty to a nation-state.
• Realpolitik: “The politics of reality”—tough power politics with no room for idealism.
• Zollverein: An 1834 custom union that allowed for tariff-free trade between German states.
• Junker: Landed nobility in Prussia who drove the unification effort.
• Proletariat: The social class consisting of industrial wage earners.