OCR Specification focus:
‘Economic nationalism promoted modernisation, protection and state support for growth.’
Economic nationalism in nineteenth-century Germany was central to modernisation, encouraging industrial growth, state-led policies, and protective measures that reshaped society and advanced national development.
The Concept of Economic Nationalism
Economic nationalism refers to policies aimed at strengthening a nation’s economy through protection, state intervention, and the promotion of internal development. It emphasised self-sufficiency and prioritised national industries over external competition.
Economic Nationalism: A political and economic philosophy advocating state-led policies, protection of domestic industries, and measures to accelerate national development.
Economic nationalism developed alongside political nationalism, providing the material foundation for aspirations of unity. By linking modernisation to national progress, it became an essential force shaping German identity.
The Role of Modernisation
Modernisation in Germany during the nineteenth century involved rapid transformation of economic, social, and technological structures. It was closely associated with:
Industrialisation, particularly in textiles, coal, iron and steel.
Urbanisation, as populations moved to industrial centres.
Expansion of infrastructure, notably railways, which integrated the German lands.
Education and technical training, promoting a skilled workforce.
The state and nationalist thinkers viewed modernisation as vital to enhancing military strength, economic independence, and international prestige.
State Support for Economic Growth
German governments played a crucial role in promoting growth, particularly through Prussian leadership. Economic nationalism expressed itself in several ways:
Protective tariffs safeguarded developing industries from foreign competition, especially against Britain’s industrial dominance.
Subsidies and investment supported railways, mining, and heavy industry.
Banking systems, such as the Disconto-Gesellschaft, enabled large-scale industrial credit.
State-led reforms encouraged modern farming methods, reducing reliance on imports.
By combining protection with investment, state authorities shaped a distinct path to modernisation that reinforced national strength.
Protectionism and Policy Debates
Economic nationalism fuelled debates between advocates of free trade and supporters of protection.
Free trade was associated with liberal economic ideas, emphasising consumer benefits and international cooperation.
Protectionists argued that tariffs defended fragile industries, sustained employment, and created conditions for future expansion.
The victory of protectionist arguments during much of the nineteenth century aligned economic policy with nationalist goals, ensuring that Germany could compete with other major powers.
Intellectual and Social Underpinnings
The case for economic nationalism was advanced by intellectuals such as Friedrich List, who emphasised the link between national economic development and political independence.
Friedrich List: German economist (1789–1846) who argued for protective tariffs and state intervention to nurture infant industries, laying theoretical foundations for German economic nationalism.
His ideas influenced policymakers to prioritise long-term national prosperity over short-term consumer gain. Socially, economic nationalism resonated with emerging middle classes who sought opportunities in industry and commerce, as well as with landowners who demanded protection for agricultural output.
Economic Nationalism and Industry
Industrial growth in Germany owed much to policies inspired by economic nationalism:
Coal and steel industries thrived in the Ruhr and Saarland.
Chemical and electrical industries grew under state-supported innovation.
Railways accelerated economic integration, reducing regional isolation and fostering a sense of shared national economy.
Railway network across the German lands in 1849. The map visually demonstrates how new trunk lines stitched regions together, underpinning market integration, mobility, and state capacity. Thin lines denote roads; rail lines are clearly traced, aligning with the notes’ focus on infrastructure-led modernisation. Source
These industries underpinned Germany’s transformation into a leading European power, reinforcing the relationship between economic and national modernisation.
Interior of the Krupp Gun Works (published 1915), where army and navy artillery was manufactured. The scene exemplifies how state-backed heavy industry scaled up production, linking industrial modernisation to military capacity—an outcome highlighted in the notes. Extra detail: the image is WWI-era, showing the policy trajectory at its wartime peak. Source
Links Between Economic Nationalism and National Identity
Economic modernisation provided tangible proof of national progress. It fostered pride in German capabilities and reduced reliance on foreign imports, aligning with the broader nationalist project.
Key connections included:
Integration: Railways and trade networks united disparate German states.
Prestige: Industrial strength elevated Germany’s international status.
Military capacity: Economic growth enabled better armaments production.
Social mobility: Expansion of industry created new opportunities for the urban middle class.
By tying material progress to national pride, economic nationalism reinforced the appeal of political unification.
Limitations and Criticisms
Despite its achievements, economic nationalism faced limitations:
Regional disparities persisted, with industrialisation concentrated in western regions, leaving much of rural Germany underdeveloped.
Social tensions emerged as rapid modernisation created poor urban living conditions and labour unrest.
Opposition from liberals who favoured free trade highlighted divisions within German politics.
Nonetheless, these tensions reflected the scale of transformation underway and underscored the contested nature of modernisation.
The Enduring Legacy
Economic nationalism remained a central theme throughout the nineteenth century, laying foundations for later German unification and the emergence of the German Empire. Its emphasis on protection, state support, and modernisation ensured that economic change was not simply a by-product of industrialisation but a deliberate tool of national development.
In this way, economic nationalism promoted modernisation, protection and state support for growth, fulfilling its role as a key force in shaping German nationalism between 1789 and 1919.
FAQ
Britain pursued free trade after repealing the Corn Laws in 1846, focusing on global markets and minimal tariffs. Germany, in contrast, adopted economic nationalism by protecting domestic industries with tariffs and encouraging state investment.
This difference reflected Germany’s developmental stage: unlike industrially dominant Britain, Germany needed protection to nurture its “infant industries” and build an integrated economy.
Large landowners, particularly the Prussian Junkers, supported tariffs on imported grain to protect domestic agriculture from cheap overseas competition.
Their influence ensured that agricultural as well as industrial sectors benefited from protective measures. This alliance between industrialists and landowners strengthened economic nationalism by creating broad elite support for tariff policies.
Railways were not only vital for trade and mobility but also became a cultural symbol of progress and national pride.
They demonstrated technological advancement.
They connected distant regions, symbolising unity.
They showed the state’s commitment to investing in modern infrastructure.
Thus, railways embodied both the practical and ideological goals of economic nationalism.
German banks, often with state backing, provided long-term credit for industrial ventures that required large capital investments, such as railways, steelworks, and chemical plants.
Institutions like the Disconto-Gesellschaft and Darmstädter Bank pioneered new financial methods, linking banking directly to industrial growth. This partnership between finance and industry distinguished Germany’s economic nationalism from more laissez-faire models.
Economic nationalism laid the foundations for Germany’s later pursuit of global power by creating industrial strength and self-sufficiency.
Modern industries supported military expansion.
Economic independence reduced reliance on imports.
Industrial confidence encouraged pursuit of overseas markets and colonies.
Although initially focused on internal development, the policies of economic nationalism eventually enabled Germany to project its power abroad.
Practice Questions
Question 1 (2 marks)
What did Friedrich List argue was necessary for Germany’s economic development during the nineteenth century?
Mark Scheme:
1 mark for identifying protective tariffs.
1 mark for identifying state intervention to nurture infant industries.
(Maximum 2 marks.)
Question 2 (6 marks)
Explain two ways in which economic nationalism contributed to the modernisation of Germany in the nineteenth century.
Mark Scheme:
Up to 3 marks for each valid explanation (maximum 6 marks).
Award marks for:
Clear identification of a contribution (1 mark).
Development of the point with supporting detail (1 mark).
Explanation of how this specifically promoted modernisation (1 mark).
Indicative content:
Railways and infrastructure: economic nationalism encouraged state investment and railway expansion, which integrated German regions, boosted trade, and supported industrial growth.
Protectionist policies: tariffs shielded new industries from foreign competition, allowing coal, steel, and chemicals to develop, creating a modern industrial base.
State support: governments provided subsidies and banking support, fostering technological innovation and encouraging urbanisation and a skilled workforce.
Accept any other relevant explanation of economic nationalism and its role in German modernisation.
