Figure 1.--Tsarist Russia was the least prepared for war. This is the Russia that Tsar Nicholas took to War. Russia had the fastest growing industrial sector in Europe, but it was still pootly developed compared to Germany. While a modern sector existed in the major cities, Russia had a largely agraian economy and population. Most of the population lived in rural areas under virtully medieval conditions. Barefoot children were commin in Eastern Europe, but notice here that the men are barefoot. Notice the high-angled roof, designed to avoid snow build up. Click on the image to read the caption for this stereoscopic view card. Russia's industry or transport system was in no condition to sustain a war against an industrial power like Germany, especially an industrial powerhouse like Germany. Even so the large Russian Army forced the Germans to divide their forces, making possible the French stand in the West.
The major powers of Europe had engaged in a massive arms race in the years leading up to World war I. They as result were well prepared for a short war. When it came it was unexpected and all the major beligerants all believed that the issue would be resolved in a few months of fighting. Despite huge expenditures for arms, none of the beligerants had made economic preparations for the War. Little or no thought ad been given to stockpiling statehic materials or organizing the economies for war. The Germans steamrolled through Belgium (August 1914), but the French stand on the Marne (September 1914) meant that the War would not be a quick one and ultimately it would be settled by the economies of the various national economies. Unfortunately for the Germans, the military advantage they had at the inception of the War was undermined by substantial economic weaknesses and their major ally, Austria-Hungary was even weaker. And if this was not bad enough, policies pursued by both countries as well as Allied naval power only weakened their economies and undermined their war effort as the War progressed. Germany had the largest indusrial power in Europe, permitting it to equip its very professional army which launched the War by invading neutral Belgium. The whole German war plan was to avoid the French border defenses by striking through Belgium. The objective was to envelop Paris as they had done in the Franco-Prussian War (1870), winning the War in a few weeks of fighting. They came very close to doing just that. The French victory on the Marne proved to be a disaster for Germany. While Germany had the largest industrial base, Britain and France combined had a larger industrial capacity. And there were serious weaknesss to the German war economy. Germany had few natural resources. Germany industry not only had to import raw materials, but food to feed its industrial workers. And the Allies implemented a naval blockade to cut off the needed imports. As a result German industrial output declined while British industry increased production as the War progressed. France was self-suffient in food production and Britain could import what it needed from the Empire or the United states. This inbalance did not impair German military performance at first, but gradually undercut both arms production and civilian morale. Russian attacks in the East were a major reason the French were able to stop the Germans. But of all the major beligerants, Tsarist Russia was the least prepared for war. Russia had the fasest growing industrial sector in Europe, but it was still pootly developed compared to Germany. It had a largely agraian population. Most of the population lived in rural areas under virtully medieval conditions. Its industry or transport system was in no condition to sustain a war against an industrial power like Germany, especially an industrial powerhouse like Germany. And tragically for the Russian people, there was no way for the Allies to get large quantities of war supplies to the Russians. Britainlargely financed the Allied wae effort, but by 1917 its emense financial reserves were being exhausted. The War would be decided by the neutral United States. Unlike the Europeans, the United States had not participated in the European arms race. It had a tiny, all volunteer army. It had, however, the most powerful economy on the planet. It had a larger industrial base than Germany as well as emense natural resources and the ability to not feed itself, but to grown enormous quntities of food for the Allies. Americans wanted no part in the War. Inceedibly Germany ignored all of this and virtually drove a deeply pacifist, but highly patriotic country into the War. It was a war policy on the part of the Germans that can only be described as incredible stupidity. In sharp contrast, the British understood from the very beginning the importance of the United States.
America
The War would be decided by the neutral United States. Unlike the Europeans, the United States had not participated in the European arms race. It had a tiny, all volunteer army. It had, however, the most powerful economy on the planet. It had a larger industrial base than Germany as well as emense natural resources and the ability to not feed itself, but to grown enormous quntities of food for the Allies. Americans wanted no part in the War. Inceedibly Germany ignored all of this and virtually drove a deeply pacifist, but highly patriotic country into the War. It was a war policy on the part of the Germans that can only be described as incredible stupidity. In sharp contrast, the British understood from the very beginning the importance of the United States. Unlike World War II, America before it declared war (April 1917) had not yet even begun to gear up for war. As a result, the United States was not the arsenal of democracy as it proved to be in World War II. It would have been had the war not nded in 1918. But as it turned out, the American Expedition Force (AEF) largely fought the War with Allied weapons. America's primary industrial contribution to the Allied war effport was shipping and trucks. The American economy, however made mjor contributions in finance, food, and raw materials. The major contribution, howevere, was in manpower. German Gen. Ludendirf adter the War would say tht the deciding facyor on the Western Front was the american infantry. And it was not just the million-man ARF that had reached the France, but another million still in training in America. And that was jist the brginning of the vast pool of potential American man power.
Austria-Hungary
The Austrro-Hungarian Empire was an empire in name only. It was an alignment of the Austrian Emore and Hynarian Kingdom. And even within the Austrian Empire there were political institutions surviving from the medieval era that means that the imperial government did not have cnrtralized control over the political or economic structure. This was very differenbt ffrom the other empires (German and Tsarist) as well as nation states like Britain and France). The Kingdom of Hungary lost its former status as a result of the Russian supression of the Hungarian Revolution (1848). The status question as settled by the monarchical personal union of the two countries--the Compromise of 1867. A series of reforms followed in which the Austria and Hungary became co-equal states within the Empire. Austria-Hungary was a huge if decentralized state entity. It was the second-largest country in Europe, only exceeded by the highly centralized Tsarist Empire. For several centuries it waone of the great powers of Europe. On paper it was still a major power. Itwas no only large in area, but had the second lasrgest population, exceeded ny the Tsarist and German Empires. Economiclly, Austra-Hungary was, however, no longer a great power. Like Russia it had lagged behind the other major countrues (Britain, France, and Germsny). The Empire had not been participated in the Industrial Revolution in a mzjor way. And what industry had developed was largeky concentrated n the Czech Lzmds (Bohemia). Thus almost all of the Empire;'s heavy industry was located in the Czech Lands. [Schulze, p. 295.] The Imperial Government (unlike Germny) had not promoted industrialization. The Czech industrial develooment was primrily the result of individual Czech iniatives, not Imperial policy. The economic structure of the Empire varied along east/west fault line. The western areas (Austria and the Czech Lands were the most developed. Areas in the East were largely agucultyural and in xime areas almost feudal. Considerable growth occurred in the 19th century. Abd by the end if the century, the agricultural East was growing more rapidky than the more developed West and economic differences had begun to become less pronounced. . Hungary had developed a strong agriculture and food industry centered on Budapst. A factir here was the rather Feudal situation of Hunfarian lnd lords in Slovakia. Hungary's food industry not only fed the Empire, but provided a substantial proportion of the Empire's exports. In the more developed West there was some industrial development. This inclued some heavt jundustry in the Czech Lands centered on Prague nd small-scale manufactiring in Austria, centered on Vienna. Heavy industry inluded machine tools, electric power equipment, and the automotive industry. Light industry included the precision mechanics industrydominant. The East-West division of labor as well as the monetry and customs union was resulting in economic growth in the lare-19th and early-20th century. This was the sutuation at the ime the War btoke out. as a result of the war, the national governments of Austria and Hungary established a highly centralized war economy, essentially creating as a bureaucratic dictatorship. Both countries drafted skilled workers and engineers as well as gricultural workers with no thought as to the econpmic comsequemces. without realizing the damage to the economy. [Tucker, pp. 85-91.] The Czech Lands, nominally under austrrian control had the most advanced economy in the Empire. They were not, however, fully committed to the War effort. The Czechs rejected a war-time customs union with Germany, not only bcause it threatended their industry, but because it would increase German language and cultural hegenommy. Mny Czechs had begun to think about independence. Bankers began purchasing corporate securities from the Czech Lands and avoid Hungarian and Austrian secruitues. This helped to insure control over Czech economic resources.
Belgium
Britain
Britain began the War as the peak of its Empire. It was the center of the greatest empire in world history. It was the center of international finance. New York was chsllenging London, but not superceeded it. Amerocan industrial expansion had exceeded that of Britain. Germany had also exceeded Britain in industrial production, but only marginally. Germany could not match British finances and even more ominously for the Germans access to imported food and raw materials. Here the Royal Navy had command of the Seas to both gurantee British access to world markets and to enforce a blockade on Germany. Although having little impact at the onset of the War, this would ultimately proved decisively. The British as a result were able to expand production during the War. The British GDP grew about 7 ercent duriung the War, even with conscription which began in 1916. In sharp contrast the Geman economy contracted more than 25 percent -- a disasterous impact on the war economy and the German people. The Government share of British GDP soared from only 8 percent before the War (1913) to nearly 40 percent in 1918, reflecting the war economy. Interestingly World WarII would require an even greater cokmmitment, an estimated 50 percent (1943). [Ferguson, p. 249.] The British became concerned about the war effort in 1916, both because of the disater on the Somme and war production. In the end the British produced what they needed. Munitions was a major concern. While the western Front was reltively static, it consumed vast quantities of munitions. The Allies managed to out produce the Germans in many imprtant areas. Before the War, the Germans outspent the Allies in land forces. Britain had only a small volunteer Army. The British increased artillery production grew from 91 guns (1914) to 8,039 (1918). Aircraft were a brand new weapon system. British production skyrocketed from 200 planes (1914) to 3,200 (1918). Germany could not beginn tgo match thosevnumbers. Production of machine guns increased from only 300 to an amazing 121,000 guns. [Kennedy, p 267.] Britain was the country most exposed by the War. It imported more of its food than any other of the major powers, much more than Germany. Thus while the Royal Navy could not break through the Western Front, unless they kept the sea lanes open, Britain could not continue the War. As long as the sea lanes remained open, could import what it needed. And here Britain's financial strength and access to American financial markets, meant that it could afford to import what it needed. There were no neutrality laws in place during World War I. The Anglo-French Financial Commission obtained a $0.5 billion loan from private American banks (1915). And British financial strength was vital to the allied war effort. Britain as the war progressed found itself funding most of the Empire's war expenditures, Italy's expenses, and two thirds of the Franch and Russian expenses as well as the expenses of sevral smaller countries. As a result, Britain's gold reserves, overseas assetts, and and private credit lines were running out. Ionically, Kaiser Wilhelm came to the rescue, by forcing America into the war (1917). This placed the immense final resources of thecUnited states on the allied side. President Wilson arrange for Treasury loans totaling $4.0 billion (1917-18). [Lobell] Shipments of raw materials and food from America and the Empire permitted Britain to feed its people and military and maintain the production of its war economy. Thisas something Germany was unable to do. [Daunton] And again Britain financial strength and Govrnment policies meant that Britain managed the impact of inflation. Here Germany totally failed. [Balderston]
The British with the Labour Party in the coaltion Government encouraged trade unions. Membership grew from 4.1 million (1914) to 6.5 million (1918). Membership peaking at 8.3 million (1920) before declining to 5.4 million as aesult of the brief 1920-21 post-War Depression (1923). [Mitchell, p. 68.]
One major war measure was to recruit women to enter the work force. Women entered munitions factories and took other home front jobs vacated by men needed at the front. [Braybon] Women were also recruited for farm labor--the Womens Land Army. While Britain and the allies won the War, there were serious post-War consequences.
France
France was a major European industrial power. It's industrial base was much smaller than that of Germany. As aresult, France on its own was no match for Germany. But France and Britain together had a lrger industrial base, even if Austrian-Hungary's rather limited industrial capacity is added in. Even more importat, bcause the British Royal Navy controlled the internztionl sealanes, French industry had access to all he needed raw materials which Germny industry did not have. The sitiuation was somewgat altered whn German armies at the onset of the war seized a substantial area of northern France, this included important industrial assetts. France, unlike Germany, was self-suffient in food production. It did not, however, have the capability of feeding the vast number of refugees that flooded south from Belgium and northern France after the Germans invaded.
The Germans steamrolled through Belgium (August 1914), but the French stand on the Marne (September 1914) meant that the War would not be a quick one and ultimately it would be settled by the economies of the various national economies. Unfortunately for the Germans, the military advantage they had at the inception of the War was undermined by substantial economic weaknesses and their major ally, Austria-Hungary was even weaker. And if this was not bad enough, policies pursued by both countries as well as Allied naval power only weakened their economies and undermined their war effort as the War progressed. Germany had the largest indusrial power in Europe, permitting it to equip its very professional army which launched the War by invading neutral Belgium. The whole German war plan was to avoid the French border defenses by striking through Belgium. The objective was to envelop Paris as they had done in the Franco-Prussian War (1870), winning the War in a few weeks of fighting. They came very close to doing just that. The French victory on the Marne proved to be a disaster for Germany. While Germany had the largest industrial base, Britain and France combined had a larger industrial capacity. And there were serious weaknesss to the German war economy. Germany had few natural resources. German industry not only had to import raw materials, but food to feed its industrial workers. And the Allies implemented a naval blockade to cut off the needed imports. As a result German industrial output declined while British industry increased production as the War progressed. The economic inbalance did not impair German military performance at first, but gradually undercut both arms production and eventually civilian morale. The Germans even before defeating the Russians decided to add the United States to the beligerants it faced. Pushed by economic declines, the Kaiser decided to stake everything on one final massive offensive in the West.
Italy
Japan
Russia
Russian attacks in the East were a major reason the French were able to stop the Germans. But of all the major beligerants, Tsarist Russia was the least prepared for war. Russia had the fasest growing industrial sector in Europe, but it was still pootly developed compared to Germany. It had a largely agraian population. Most of the population lived in rural areas under virtully medieval conditions. Its industry or transport system was in no condition to sustain a war against an industrial power like Germany, especially an industrial powerhouse like Germany. And tragically for the Russian people, there was no way for the Allies to get large quantities of war supplies to the Russians.
Sources
Balderston, T. "War finance and inflation in Britain and Germany, 1914�1918," Economic History Review (1989) Vol. 42, No. 2, pp. 222-44.
Braybon, Gail. Women Workers in the First World War: The British Experience (1990).
Daunton, M.J. "How to Pay for the War: State, Society and Taxation in Britain, 1917�24," English Historical Review (1996) Vol. 111, No. 443, pp. 882�919.
Ferguson, Niall, The Pity of War: Explaining World War One (1999).
Kennedy, Paul. The Rise and Fall of the Great Powers: Economic Change and Military Conflict from 1500 to 2000 (1987).
Lobell, Steven. "The Political Economy of War Mobilization: From Britain's Limited Liability to a Continental Commitment," International Politics (2006) Vol. 43, No. 3, pp. 283�304.
Mitchell, B.R. Abstract of British Historical Statistics (1962).
Schulze, Max-Stephan. Engineering and Economic Growth: The Development of Austria-Hungary's Machine-Building Industry in the Late Nineteenth Century (Peter Lang: Frankfurt, 1996).
Tucker, Spencer E., ed. European Powers in the First World War: An Encyclopedia (1999). pp 85�91.
