particular circumstances of 1848.
THE UNIFICATION OF GERMANY
Despite the collapse of revolutionary and reforming endeavours by 1849, the
return of conservative regimes was characterised by a curious combination of
political reaction with frequently progressive economic policies. The 1850s saw
rapid economic growth in Germany: coal, iron and textile production expanded,
as did the building of railways: the length of the railway network trebled
between 1850 and 1870. The percentage of the population working in factories
grew from 4 per cent in 1850 to 10 per cent in 1873; and GNP per capita grew
by one-third between 1855 and 1870. Although briefly interrupted after the
economic crash of 1857, economic growth in Prussia stood in stark contrast to
the preponderantly stagnant economy of Austria, whose industrial growth
centres of Vienna, Prague and Bohemia generally were outweighed by the vast
swathes of economically backward agricultural regions. Austria also had to
devote a considerable proportion of the budget to military expenditure to deal
with troublesome situations in Italy and the Balkans. The growing economic
disparity between Prussia and Austria was an important factor in the eventual
victory of Prussia over Austria in the struggle for domination of a unified
Germany. Austrian attempts either to break up or join the Customs Union were
foiled, and in 1865 the
Zollverein
was renewed, on Prussian terms, excluding
Austria. Prussia was thus in a position to benefit from the markets of the smaller
German states, which her rapidly expanding economy required. The latter were
economically in no position to leave the Prussian-dominated Customs Union,
despite their pro-Austrian political sympathies.
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