IGNOU HISTORY NOTES : History Of Modern Europe (Mid 18th to 20th Centuries)- INDUSTRIAL CAPITALISM

IGNOU HISTORY Study Notes for IAS, UPSC Exams

History Of Modern Europe Mid 18th to Mid 20th Centuries

INDUSTRIAL CAPITALISM

Structure

8.0 Objectives
2.1 Introduction
8 2 The Industrial Revolution and Industrial Capitalism
8.3 Important Aspects of Industrial Capitalism
8.4 Approaches to the Study of Industrial Capitalism
8.4.1 Early Writers On Political Economy
8.5 Reflections On the History of Industrial Capitalism - I
8.5.1 Rostow
8.5.2 Gelxhenkron
8.6 Reflections On the History of Industrial Capitalism - II
8.7 Reflections On the History of Industrial Capitalism - III
8.8 Let Us Sum Up
8.9 Keywords
8.10 Ansvers to Check Yours Progress Exercises '

8.0 OBJECTIVES

After Reading thls Unit, you should be able to

clear czrtain basic concepts regarding industrial revolution,
understand how different writers understand the nature of industrial capitalism, and
understand that the criticisms and assessment of these writers can take us forward in getting to know the nature of industrial capitalism.

8.1 INTRODUCTION

This Unit deals with various understandings of the nature of industrial capitalism. The
emergence of industrial capitalism transformed to a large extent the nature of production
process prevalent in the pre-capitalist phase. The nature of this transformation influenced all
aspects of society and economy in a many sided manner. Consequently the attempts to grasp
this change tended to be partially or sometimes even incorrectly reflected m various writings.
Indeed we are still trying to grasp the phenomenon today.

8.2 THE INDUSTRIAL REVOLUTION AND INDUSTRIAL CAPITALISM

Many aspects of modem politics in Europe were related to the transformation of economic life
during the 18th and 19th centuries. Specifically important here was the growing significance
of (lnstrial capitalism during this period This in turn was linked to the industrial
revolution In Europe.
The concept inciustrial revolution suggests primarily certain technological and economic
changes. with important social consequences and social origins. It denotes (i) the extensive
application of water, steam (and later electrical) power in production systems, (ii) the focus of
product~ori m the factory and its formidable mechanization, (iii) major changes in'the
cha~.acler and exploitation of "home" and "foreign" markets, and (iv) the near disappearance
ol'subs~stcnce agriculture. This expression refers to the early phase of the domlnion of
Industrial capital in economic and social life
Industirial capitalism itself implles the investment of capital in manufacturing industry, with a
subordnation of labour to such mkestment and a rocus on the maximum extraction of profits