Three rivals, three theoretical issues

Just before 1900, the Second Industrial Revolution brought economic concentration, corporations, and cartels just when state infrastructures were “naturalizing” civil societies (see Chapter 14). Even Britain, the home of transnationalism, became more centralized and territorialized. But Germany, becoming the greatest European Power, went farther. By 1914, the German Reich was the leading exponent of “authoritarian national capitalism” – welding together semiauthoritarian monarchy, organized capitalism, and nation-state. The leading edge of power had shifted into Central Europe. Why? What was the nature of this power configuration, and what were its consequences?

If we start around 1800, we have much explaining to do. The state that acquired the German Reich was the kingdom of Prussia, a secondrank Power, controlling only two-thirds of North Germany, mostly rather backward. Its territory, population, and economic resources were smaller than its pretensions to power. It was far from achieving German hegemony. Two rivals also blocked the way, Austria and confederal Germany. In 1815, Germany was a loose confederation comprising Austria (its president), Prussia, and thirty-seven smaller states. Most were puny; yet they were protected by neighboring Great Powers and by the belief of many Germans that confederation protected freedom of religion (Lutheran Prussia and Catholic Austria had state churches); minor princes, cities, and merchant communities; and general civil liberties. With so many state boundaries, for example, censorship was ineffective; discursive literacy flowed right across Germany. In 1800, Austria was a Great Power, ruling more than double Prussia's territories and population.