Europe’s influence in the early 20th century extended far beyond its own borders, encompassing not only its vast colonial empires but also numerous dependent regions that were economically tied to European interests. By 1914, a significant portion of the world’s territory and population was under the direct or indirect control of European powers, an expansion that was facilitated through a variety of means.
European Dominance and Investment
The spread of European influence during this period was primarily driven by the pursuit of economic interests. European nations, along with Russia and the United States, made extensive investments in various regions outside their immediate colonial possessions. These investments were often larger than those in their own colonies and were protected through several methods. Military missions were established to train local forces, ensuring that they could maintain order and protect European investments. Financial missions oversaw and managed local economies, providing a degree of control over fiscal policies that benefitted European financiers. Additionally, Europeans living or conducting business abroad were granted special privileges through extraterritorial rights and capitulatory arrangements, which exempted them from local laws and placed them under the jurisdiction of their home countries.
Background of Industrialisation in the USA
At the close of the 18th century, the United States shared many similarities with Western European nations. The country was shaped by the Enlightenment, had undergone a revolution, and established liberal political institutions. Like France and other European states, it had a population primarily of European descent, with the tragic exception of enslaved Africans. The majority of Americans were engaged in agriculture, but urbanization was on the rise, and industrialization was beginning to take root. This pattern of development was consistent with trends observed across many parts of Europe at the time.
Questions for UPSC
1. How did European powers use military and financial missions to maintain control over their investments in dependent regions?
2. In what ways did the capitulatory arrangements and extraterritorial rights benefit Europeans in non-colonial regions, and how did these privileges affect the sovereignty of those regions?
3. Considering the similar patterns of industrialization in the USA and Europe, what factors contributed to the distinct path of industrial development in the United States compared to European countries?