The Industrial Revolution beyond Europe: the United States and Japan
Based on a lecture by Michel Oris[1][2]
The economic rise and industrial dynamics of the United States and the industrial awakening of Japan are fascinating chapters in world history that invite reflection on strategy and adaptability. This course offers a narrative exploration of these developments, beginning with the roots of protectionism in the United States, an economic doctrine carefully woven by Alexander Hamilton. Through the prism of history, we will see how tensions between the industrial North and the agricultural South shaped the country's economic trajectory.
In parallel, we will travel to the Japanese archipelago, where a once inward-looking nation met the winds of change with the arrival of American ships. The story continues by tracing Japan's path from the Meiji era, where progressive reforms transformed agriculture and a thirst for knowledge led to enlightening journeys across Europe.
Weaving together the threads of education, innovation and international politics, we discover how these countries not only consolidated their independence but also established their influence. The stories of this period will not fail to illustrate how crucial decisions paved the way for today's geopolitical chessboard. This educational tour is less a lesson than an invitation to travel back in time, where each stage reveals the strategic choices that have, step by step, shaped our contemporary era.
The case of the United States[modifier | modifier le wikicode]
A sizeable domestic market[modifier | modifier le wikicode]
The Industrial Revolution in the United States was characterised by economic growth driven primarily by domestic demand, a phenomenon largely supported by various demographic and economic factors. By the end of the 19th century, the country already had a domestic market of more than 60 million people, following a major wave of immigration that had seen more than 23 million Europeans settle in the United States since the turn of the century. With a vast territory rich in natural resources, the United States did not have to rely heavily on imports for its raw materials. Vast reserves of coal, iron and other minerals provided a solid base for industrial development. Oil exploitation, which began with the first oil well in Pennsylvania in 1859, also fuelled industrialisation. European immigrants not only stimulated demand for consumer goods but also provided an abundant workforce for the booming industries. This workforce was crucial in establishing a dynamic and diverse labour market capable of supporting a variety of industrial sectors. Investment in infrastructure has also played a key role. For example, the railway network, which expanded dramatically after the Civil War, reached almost 200,000 miles of track by the end of the century. This not only helped to open up and integrate regional markets, but also reduced transport costs, making American products more competitive. Innovation was a driving force behind industrialisation, supported by a favourable legal framework that encouraged research and the protection of intellectual property. The entrepreneurial spirit was cultivated, and figures such as Thomas Edison, with his 1,093 patents, symbolised this period of intense creativity. Government policy, through the introduction of high tariffs, protected infant industries, allowing American companies to thrive sheltered from foreign competition. This fostered an environment in which industries could grow without having to rely heavily on foreign markets. The US economy benefited from a combination of strategic policies, abundant resources and a steady influx of talent and labour. All of this has contributed to economic growth that has been remarkably self-sustaining, resulting in a high proportion of national wealth being generated by domestic activities. This economic autarky laid the foundations for the superpower that the United States became over the next century.
Under the mercantilist system of the British Empire, the American colonies were often limited in their economic development. England saw the colonies primarily as sources of raw materials and as markets for its manufactured goods. British trade and shipping laws were designed to control colonial trade and ensure that the economic benefits accrued to the mother country. This included restrictions on manufacturing in the colonies and the obligation for the colonies to export certain raw materials only to England. These policies led to growing discontent among the American colonists, who began to see these restrictions as a brake on their prosperity and economic freedom. The tea tax, and other taxes levied by the Townshend Acts, were particularly unpopular because they were imposed without the representation of the colonists in the British Parliament, hence the famous slogan "No taxation without representation". The Boston Tea Party of 1773 was a direct response to these taxes and to the monopoly granted to the British East India Company over the tea trade. This symbolic protest action was one of the sparks that led to the American Revolution and ultimately to the United States' Declaration of Independence in 1776. After independence, the United States sought to diversify its economy and reduce its dependence on European products. American leaders such as Alexander Hamilton supported the development of a mixed economy comprising both agriculture and industry. In particular, Hamilton advocated the use of protective tariffs to help fledgling US industries develop in the face of foreign competition. As the nineteenth century progressed, the United States increasingly adopted economic policies that favoured industrialisation and the development of a robust domestic market, thus contributing to its rise as an economic power.
Alexander Hamilton, as the first US Secretary of the Treasury, was instrumental in establishing economic policies that would shape the country's economic development. In his famous Report on Manufactures, presented in 1791, Hamilton advocated the use of protective tariffs to encourage the development of domestic industry, which was then in its infancy and unable to compete on an equal footing with the more developed and well-established British industries. Hamilton argued that without tariff protection, American industries would struggle to develop in the face of competition from imported products, which were often cheaper due to the economies of scale and technological advancement enjoyed by European producers. He proposed measures such as import tariffs to make foreign products more expensive and therefore less attractive than locally produced products. However, he also opposed export taxes, understanding that such taxes could penalise American exporters and reduce the competitiveness of American raw materials on world markets. The American Civil War, which lasted from 1861 to 1865, was not only an ideological and social conflict, but also an economic one. The industrialised North advocated a protectionist system that protected its industries by imposing high tariffs on imported goods. Conversely, the South, which was mainly agrarian and dependent on cotton exports, supported free trade in order to continue to benefit from European export markets without prohibitive tariffs. The North's victory marked the triumph of protectionism in the United States and set the stage for rapid industrialisation after the war. The period after the Civil War saw the United States become one of the world's leading industrial powers, thanks in part to these protectionist policies, which encouraged the development of national industries.
Dynamism and protectionism[modifier | modifier le wikicode]
The policy of protectionism in the United States was strongly influenced by the desire for economic independence from England and other European industrial powers. Alexander Hamilton was a strong advocate of this approach. His vision was that a system of protective tariffs was necessary to allow American infant industries to develop and compete with British imports, which benefited from Britain's industrial and technological lead. Hamilton argued that young American industries needed time to mature and become competitive. Tariffs were therefore intended as a temporary measure to give domestic companies time to grow without being crushed by foreign competition. In practice, this meant imposing tariffs on imported products that competed directly with American-made products. These tariffs made foreign products more expensive, making American products relatively cheaper by comparison and more attractive to local consumers. This strategy was part of a wider framework of policies aimed at strengthening the national economy, including the creation of a national bank and the standardisation of the currency. Tariffs were an important source of revenue for the federal government at a time when other forms of taxation were still limited. Over time, protectionism became a central element of American economic policy and remained predominant for many decades, notably with the passage of Tariff Acts, such as the Morrill Tariff of 1861, which increased tariffs shortly before the outbreak of the American Civil War, followed by further increases during and after the war. Protectionist policies have been debated and adapted throughout the economic history of the United States, reflecting changes in the needs of the national economy, pressure from different interest groups, and the evolution of economic theories.
The northern states, which were in the midst of industrialisation, benefited from protectionist policies to develop their fledgling industry. Tariffs on imported goods protected them from European competition, particularly from British manufactured goods, which were often cheaper and of better quality due to the advance of the industrial revolution in the United Kingdom. On the other hand, the economy of the South relied heavily on agriculture, and more specifically on the production of cotton, which was nicknamed "white gold". This crop was extremely lucrative, largely because of the slave labour that drastically reduced production costs. Cotton from the South was in great demand, not only by the textile industry in the North, but also in Europe, particularly the factories in Manchester, England. Southern cotton growers were therefore in favour of free trade because it allowed them to export their cotton without restrictions and to benefit from cheaper imported manufactured goods. In response to American protectionism, European nations, and England in particular, were able to impose their own tariffs on cotton imports, which was detrimental to the economic interests of the South. This clash of economic interests was one of the many factors that led to the rift between North and South, and ultimately to the Civil War. With the victory of the North, protectionist policies were strengthened, providing a fertile ground for further industrialisation and the economic transformation of the United States into a major industrial power in the late nineteenth and early twentieth centuries. The Civil War and the abolition of slavery also meant the end of the old Southern economic system, which had to adapt to a new, more diversified, post-slavery economic reality.
The industrialisation of the United States in the 19th century was a period of radical transformation and meteoric growth. Between 1820 and 1910, the country saw an 11-fold increase in its Gross National Product (GNP), while European GNP only tripled. During the same period, GNP per capita in the United States almost tripled, reflecting a considerable improvement in living standards and increased productive efficiency. This growth was underpinned by major technological innovations and a population that quadrupled, thanks largely to sustained immigration. The US was attracting people in search of prosperity, ensuring a steady supply of workers and entrepreneurs. With this increase in population, American industry never experienced a labour shortage, and the influx of capital was simultaneous. Investment, both domestic and foreign, flowed in, attracted by the expanding industrial and commercial opportunities. The exploitation of abundant natural resources, such as the Mississippi, which played a key role in the transport and distribution of goods, added to this prosperity. The power of this river was comparable to that of many steam engines, symbolising ingenuity and the optimal exploitation of the country's natural advantages. The development of the United States during this period was so remarkable that it became synonymous with development, wealth and economic dynamism on a global scale. The combination of increased productivity, innovation, a skilled workforce and the strategic use of natural resources solidified the United States' position as one of the world's leading economic powers at the beginning of the 20th century.
By 1913, the United States had established itself as the world's leading economic power, thanks to a series of transformations and strategic developments. Accelerated industrialisation, supported by a series of landmark technological innovations, propelled industrial output beyond that of European economies. The country's demography has grown exponentially, fuelled by immigration and high birth rates, providing both a vast market of domestic consumers and an abundant industrial workforce. Major investment in infrastructure, particularly railways, created a network linking the different regions of the country, opening up new markets and simplifying national trade. Technological advances also played a key role, particularly in energy production and mass production methods, greatly increasing industrial efficiency. On the economic front, protectionist policies sheltered infant industries from international competition, while the development of a unified domestic market stimulated business. The US financial sector enjoyed robust growth, with a developed banking system and concentration of capital facilitating investment in businesses and major industrial projects. Agriculture was not to be outdone, with highly productive mechanised production not only supporting the expanding population but also generating large export surpluses. What's more, the relative political stability of the United States, compared with European powers often in the throes of conflict or on the brink of the First World War, contributed to an environment conducive to economic growth. These favourable conditions, combined with a period of internal peace following the American Civil War, enabled the United States to become a global economic leader, a position that was strengthened by its entry into the First World War, where it played the role of essential supplier to the belligerent nations while remaining outside the initial conflicts.
Specific features of Japan[modifier | modifier le wikicode]
Japan's industrial success, especially in comparison with other countries outside Europe and North America, belied the notion that modernity and industrialisation were the exclusive preserve of Western nations. This Japanese transformation, known as the Meiji era after the restoration of Emperor Meiji in 1868, is a story of rapid and deliberate modernisation. Japan, isolated for centuries under the sakoku policy, opened up under pressure from the Western powers. Unlike Egypt or the countries of Latin America, Japan undertook a series of radical reforms to transform its economy and society in order to avoid foreign domination. The Japanese ruling elite recognised that to preserve their independence, they had to adopt Western technologies and methods, but adapt them to their own cultural and social context. They sent students and delegations abroad to learn Western practices in engineering, science and government. Back in Japan, this knowledge was used to establish modern infrastructure, such as railways and telecommunications systems, as well as to modernise the army. Industrialisation was also encouraged by government policies that established and supported new industries with capital investment, often through nationalisation before transferring these entities to the private sector. Japanese culture, with its emphasis on discipline, hard work and social harmony, facilitated the adoption of industrial working practices. In addition, Japan had a tradition of centralising power under the shogunate, which allowed the Meiji government to effectively direct national transformation. As a result, Japan became an industrial and military power, as demonstrated by its victory in the Russo-Japanese War in 1905. This positioned Japan as a major player on the world stage and inspired other Asian and African countries, proving that it was possible to modernise and achieve industrialisation without entirely losing one's culture and autonomy. Japan succeeded where other non-Western countries had failed, by implementing a deliberate industrialisation strategy while retaining political and cultural independence. The result was a unique model of industrial development that propelled Japan to become the world's second largest economy well into the 21st century.
A distinctive feature of Tokugawa policy was Japan's period of isolation, known as sakoku, during which foreigners were largely forbidden to enter and Japanese forbidden to leave the country. From 1640 to 1853, this policy not only isolated Japan from foreign influences and conflicts, but also allowed the country to develop a unique internal culture and economy, without direct interference or competition from European colonial powers. Although sakoku was a relative closure, it was not total isolation. Japan maintained limited relations with certain foreign nations, such as the Netherlands, through the Dejima trading post in Nagasaki Bay, and with China and Korea through restricted and controlled contacts. These selective exchanges enabled Japan to keep abreast of world developments without exposing itself to overwhelming foreign influence. Japan was thus spared many of the negative consequences of colonisation, including exposure to foreign diseases to which the population had no immunity. This contrasts sharply with the experience of many indigenous peoples in the Americas, for example, where the introduction of diseases such as smallpox and influenza by Europeans caused devastating pandemics. When Japan opened up under pressure from Commodore Perry's Black Fleets of the United States in 1853, it was able to negotiate its position in the world with relative independence, thanks in part to its period of isolation. This enabled it to modernise on its own initiative and on its own terms, rather than being forced to follow the dictates of a colonial power. This self-directed modernisation, which began with the Meiji era, laid the foundations for an industrial Japan that would eventually be recognised as a world power in the early twentieth century.
The landing of the American military fleet known as the "Black Ships" led by Commodore Matthew Perry in 1853 was a turning point for Japan. This event marked the end of Japan's policy of isolationism (sakoku) and paved the way for the country's modernisation. Commodore Perry sailed into Edo Bay (now Tokyo) with a fleet of armed black ships and demanded that Japan open its ports to international trade, using the demonstration of American naval strength as a means of persuasion. Aware of their technological military inferiority and keen to avoid the fate of other colonised nations, Japanese leaders agreed to sign the Treaty of Kanagawa in 1854. This treaty stipulated that:
- The ports of Shimoda and Hakodate would be opened to American trade, breaking more than two centuries of economic isolation.
- American ships would be able to refuel and repair in these ports.
- An American consul would be established in Shimoda, an important step towards regular diplomatic relations.
Contrary to what is sometimes perceived, the treaty did not allow completely free and tax-free trade. Instead, it opened ports for resupply and established diplomatic relations, laying the foundations for future trade negotiations. This was followed by other agreements, known as the Unequal Treaties, which were more advantageous to the United States and other Western powers, forcing Japan to concede trade and navigation rights, as well as tax exemptions for their nationals. These events forced Japan to modernise rapidly to resist foreign influence and were a catalyst for the Meiji Restoration in 1868, which transformed Japan into a modern industrial and imperial nation.
The impressive arrival of the American fleet in Japan acted as an electroshock for the country, brutally revealing the technological and military gap that separated it from the Western powers. This realisation was an essential driving force for Japan, showing it that openness and modernisation were crucial if it was to maintain its independence and not suffer the fate of many other colonised nations. This revelation culminated in the Meiji Revolution, beginning in 1868, a pivotal period that marked a radical change in Japan's political, social and economic organisation. It signified the restoration of imperial power, the abolition of the shogunate, and launched a series of reforms to rapidly transform Japan into an industrialised nation. By embracing industrialisation and adopting Western technologies, administrative practices and even cultural aspects, Japan sought to position itself on an equal footing with the world's great powers, thus beginning its ascent to global economic power.
The land reform undertaken during the Meiji period was pivotal to Japan's economic development. This reform changed the tax structure linked to agriculture, which formed the bedrock of the Japanese economy at the time. By replacing variable taxes, which were levied according to crop size, with a fixed taxation system based on the estimated value of land, the Meiji government was able to stabilise its tax revenues. This new system had several advantages. Firstly, it allowed the government to accurately forecast its tax revenues, which was crucial for the planning and development of infrastructure and services. Secondly, by decoupling tax from actual production, farmers were less penalised for poor harvests and could reinvest more in production in good years. What's more, by making taxes fixed, there was an incentive to increase agricultural productivity and efficiency, since any increase in production translated directly into an increase in the farmer's net income. This reform also made it possible to raise the capital needed to finance the modernisation and industrialisation of the country. With more predictable revenues, the government was able to issue treasury bills and invest in infrastructure projects, such as railways and ports, which would prove decisive in integrating national markets and accelerating industrial development. By consolidating its tax base and encouraging more intensive agricultural production, Japan was laying the foundations for its future economic growth and rise as an industrial power.
At the turn of the 20th century, Japan experienced rapid population growth and modernisation, which brought about considerable social and economic change. One of the government's responses to these challenges was to facilitate emigration to countries such as Brazil and Peru. These emigration policies aimed to solve several problems. Firstly, they offered a solution to rural overpopulation and pressure on agricultural land, by transferring part of the population to regions where there was a demand for agricultural labour and where opportunities to acquire land were available. Secondly, it also allowed Japan to forge economic links with other nations, which could potentially open up markets for its exports and contribute to its economic growth. Brazil and Peru, with their vast tracts of arable land and need for labour for coffee plantations and other crops, were attractive destinations for Japanese migrants. Moreover, both countries were open to Japanese immigration, hoping that it would contribute to the development of their agriculture and economy. The Japanese who emigrated established thriving communities, particularly in Brazil, which is now home to the largest Japanese population outside Japan. This diaspora has not only helped to relieve demographic pressure in Japan, but has also contributed to the spread of Japanese culture and skills abroad. The example of Alberto Fujimori as a descendant of Japanese immigrants becoming President of Peru in the 1990s illustrates the influence and success that these communities have been able to achieve in Latin America. It shows how Japanese emigration policies at the turn of the century had lasting and significant repercussions far beyond Japan's borders.
The Meiji Restoration in Japan was a period of rapid modernisation and industrialisation, undertaken by the government to transform the country into a world power. To achieve this, the Meiji government adopted a dirigiste state strategy to establish an industrial sector. Initially, the state took the initiative in creating industries. These industries were often models directly inspired by the technological and industrial advances seen in Europe, particularly in England, which was then at the forefront of the industrial revolution. By setting up these companies, the government not only laid the foundations for a modern national industrial fabric, but also acquired the technological skills and knowledge needed to compete on the international stage. Once these industries had been successfully established, the state sold them to the private sector. This privatisation served several purposes. It raised capital for the state and encouraged private investment in the economy. In addition, it spread industrial practices across the economy and encouraged broader, sustainable economic growth led by the private sector. To secure the support of the powerful daimyos (feudal lords) and samurai who had ruled the country during the Edo period, the government converted their economic status. The compensation they received in rice was converted into government bonds and cash, giving them the means to participate in the new capitalist economy. Many were encouraged to invest in the new industrial enterprises. The effect of these policies was to consolidate national unity and create a class of entrepreneurs and industrialists who saw their economic success as linked to the success of the nation. Patriotic commitment to industrialisation was strongly promoted by the government, which instilled the idea that contributing to industrial development was a national duty. As a result, the Meiji period saw the emergence of a modernised and industrialised Japan, capable of competing with the Western powers both militarily and commercially.
During the period of radical transformation known as the Meiji era, Japan adopted a proactive state strategy of acquiring foreign knowledge and technology. This strategy was central to its process of industrialisation and modernisation. The government played the role of initial importer, sending delegations of students and officials abroad, particularly to Europe and the United States, to study and purchase advanced technologies. These emissaries acquired not only machinery, but also know-how and knowledge of industrial production, including factory design, arms manufacture and other manufactured goods. This knowledge was then transferred to Japan, where trainers taught local craftsmen how to use the new machines. This training often took place in apprenticeship centres or within the new factories built on the Western model. Japanese craftsmen, renowned for their finesse and technical skill, quickly adapted to the imported technologies. The efficiency with which these skills were assimilated and improved enabled Japan to become independent of Western imports relatively quickly. Within a short space of time, the country began to produce locally goods that had previously been imported, and over time even began to export manufactured goods. This technological independence was a pillar of Japan's new economic strength, propelling it to the status of an industrialised nation and enabling it to rank among the world powers of the time.
During the Meiji era, which began in 1868, Japan embarked on an ambitious modernisation strategy. Instead of relying on foreign experts, the country sent its young people to study at universities and technical colleges in Europe and North America. These Japanese students acquire advanced skills and, once back home, become the architects of the nation's industrial transformation. These young people trained abroad are not only armed with technical knowledge; they are also imbued with a strong sense of patriotism, eager to use their expertise to contribute to Japan's development. They set about adapting and improving Western technologies, adapting them to local Japanese needs and conditions. Their work enabled the country to gradually free itself from its dependence on the West and establish its own industries. The aim was clear: to transform Japan into an autonomous industrial power, with its own brands and technologies capable of competing on the world market. This process of assimilation, innovation and improvement led Japan, in the space of a few decades, to transform itself from an isolated, traditional society into a major industrial player on the international stage.
Even before the Meiji era, education in Japan had deep roots in society, which made it much easier to adopt Western innovations during the country's industrial revolution. By the seventeenth century, a relatively well-developed educational network already existed, which is remarkable given the complexity of Japanese writing, composed of kanji (Chinese characters) and kana (syllabaries). By the mid-nineteenth century, Japan's literacy rate was impressive, with only half the population unable to read or write, a notable statistic especially when compared to other nations of the time. This meant that the population already had a foundation on which to build new skills and knowledge. When the Meiji government embarked on its modernisation process, it looked to Western educational models, particularly the American model, to overhaul and improve its education system. In doing so, it created a framework that not only enabled the rapid acquisition of new technical skills needed for industrialisation, but also encouraged critical and innovative thinking. The effect of this approach was to further strengthen Japan's ability to assimilate Western technology and make it its own, creating an educated and skilled workforce ready to support the country's economic growth and development.
The Japanese approach during the Meiji era was characterised by a policy of selective and strategic borrowing of international best practice, a form of industrial and cultural eclecticism that enabled Japan to rise rapidly on the world stage without over-reliance on a single other nation or foreign model. The Imperial Japanese Navy, for example, was modelled on the British Royal Navy, which was considered at the time to be the most powerful maritime force in the world. By drawing inspiration from this model, Japan was able to develop a modern naval force capable of defending its interests and extending its influence. Similarly, the Japanese army learned from Napoleon's Grande Armée, a force known for its revolutionary tactics and organisation. This has enabled the Japanese infantry to modernise its structure and adapt to contemporary methods of warfare. On the political front, the Japanese government chose to draw inspiration from the German model when drafting its constitution. At the time, Germany was renowned for its strong state organisation and legal system, characteristics that the Japanese found suited to their objectives of modernisation and centralisation of power. This judicious eclecticism in adopting various foreign influences not only enabled Japan to rapidly modernise its army and government, but also fostered a national sense of pride and autonomy. By combining and adapting these different models to their unique context, the Japanese were able to create a system that was both modern and tailored to their specific needs, laying the foundations for what would become one of the most dynamic and innovative economies of the twentieth century.
Japan's victory over Russia in the Russo-Japanese War in 1905 marked a historic turning point, underlining Japan's rapid rise as a military and industrial power. The Battle of Tsushima, in particular, was a key event, where the Japanese fleet inflicted a decisive defeat on the Russian navy, then considered one of the most powerful in the world. The victory over the Russian troops at Port Arthur consolidated Japan's reputation as a competent and modern military force. These successes signified Japan's recognition as the first non-Western power to win a major victory against a modern Western power. This had a resounding effect around the world, especially in Asia, where it was seen as a signal that Western colonial powers could be challenged. However, as its power grew, Japan also began to adopt imperialist policies, following in the footsteps of the Western powers it had previously criticised. The colonisation of Korea, Taiwan and parts of China demonstrated this expansionist side of Japanese policy. This imperialist behaviour continued in the early 20th century and intensified in the 1930s, leading to major conflicts in Asia and contributing to the outbreak of the Second World War in the Pacific. After its defeat in the Second World War, Japan was occupied by the Allied forces, mainly the United States. However, in the decades that followed, the country enjoyed a period of exceptional economic growth, known as the "Japanese economic miracle". This period of reconstruction and expansion eventually propelled Japan to the position of the world's second largest economy during the 20th century, a status it maintained until the emergence of China as an economic superpower at the beginning of the 21st century.