Austria-Hungary

Economy

The Austro-Hungarian economy changed dramatically during the existence of the Dual Monarchy. Technological change accelerated industrialization and urbanization. The capitalist mode of production spread throughout the Empire during its fifty-year existence. The old institutions of feudalism continued to disappear. Economic growth centred around Vienna, the Austrian lands (areas of modern Austria), the Alpine lands, and the Bohemian lands. In the later years of the nineteenth century rapid economic growth spread to the central Hungarian plain and to the Carpathian lands. As a result of this pattern wide disparities of development existed within the Empire. In general the western areas achieved far more development than the east. By the early 20th century most of the Empire had started to experience rapid economic growth. The GNP per capita grew roughly 1.45% per year from 1870 to 1913. That level of growth compared very favourably to that of other European nations such as Britain (1.00%), France (1.06%), and Germany (1.51%). (Source: Good, David. The Economic Rise of the Habsburg Empire). However, the Empire's economy as a whole still lagged considerably behind the economies of other powers, as it had only begun sustained modernization much later. Britain had a GNP per-capita almost three times larger than the Habsburg Empire, while Germany's stood almost twice as high as Austria-Hungary's. Nonetheless, these large discrepancies hide different levels of development within the Empire.

Related Topics:
Industrialization - Urbanization - Capitalist - Feudalism - GNP

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Rail transport expanded rapidly in the Austro-Hungarian Empire. Its predecessor state, the Habsburg Empire, had built a substantial core of railways in the west originating from Vienna by 1841. At that point the government realized the military possibilities of rail and began to invest heavily in their construction. Bratislava, Budapest, Prague, Kraków, Graz, Laibach (Ljubljana), and Venice became linked to the main network. By 1854 the Empire had almost 2000 kilometres of track, about 60 to 70% of it in state hands. At that point the government began to sell off large portions of track to private investors to recoup some of its investments and because of the financial strains of the 1848 Revolution and of the Crimean War.

Related Topics:
Rail transport - Habsburg Empire - 1841 - Bratislava - Kraków - Graz - Ljubljana - Venice - 1848 Revolution - Crimean War

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From 1854 to 1879 private interests conducted almost all rail construction. What would become Cisleithania gained 7952 track kilometres, and Hungary built 5839 track kilometres. During this time many new areas joined the railway system and the existing rail networks gained connections and interconnections. This period marked the beginning of widespread rail transportation in Austria-Hungary, and also the integration of transportation systems in the area. Railways allowed the Empire to integrate its economy far more than previously possible, when transportation depended on rivers.

Related Topics:
1854 - 1879

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After 1879 the Austro-Hungarian government slowly began to re-nationalize the rail network, largely because of the sluggish pace of development during the worldwide depression of the 1870s. The years between 1879 and 1900 saw more than 25,000 km of railways built in Cisleithania and Hungary. Most of this constituted "filling in" of the existing network, although some areas, primarily in the far east, gained rail connections for the first time during this period. The railroad reduced transportation costs throughout the Empire, opening new markets for products from other lands of the Dual Monarchy.

Related Topics:
Depression - 1870s - 1900

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