Peculiarities of Industrial Structure of Scotland - Essay Example

Swarna1 Word count: 2037 (excluding bibliography) P.Swarnalatha ID # 5448 Order # 156870 Why did the industrial structure that emerged in mid nineteenth-century Scotland endure for as long as it did? Introduction Scotland is the northernmost country of the United Kingdom with a geographical area of 78,789 sq km and with a population (2001) of 5,062,011. Its important industries are coal and oil production, electronics, forestry, and marine fishing. Scotland became part of the United Kingdom of Great Britain in 1707, when the parliaments of both governments passed the Act of Union. After 1745 the history of Scotland became part of the history of Great Britain. Scotland has no sovereign executive but retains vestiges of ancient sovereignty in its own legal and educational systems. The present status is that it has established its own parliament in Edinburgh to vote on wide-ranging political issues while remaining part of the United Kingdom. Most Scottish industry and commerce is concentrated in a few large cities on the waterways of the central lowlands. Edinburgh, on the Firth of Forth, is a cultural center, the administrative capital of Scotland, and a center of paper production and publishing. Glasgow, one of the largest cities in Great Britain, lies on the Clyde. It is Scotlands leading seaport and a center of shipbuilding and it supports numerous light industries. Although heavy industry has declined, the high-technology “Silicon Glen” corridor has developed between Glasgow and Edinburgh. Several changes occurred in structure of industries with the passage of time (Campbell, 1985). The significance of coal, once Scotlands most important mineral resource, has declined. Oil, however, gained prominence in Scotlands economy during the 1970s, with the growth of North Sea oil extraction companies. Natural gas is also abundant in the North Sea fields. Other important industries are textile production (woolens, silks, and linens), distilling, and fishing. Textiles, beer, and whisky, which are among Scotlands chief exports, are produced in many towns. However one should remember that the industrial revolution that occurred in Scotland in 18th century laid foundation for the present prospect of industries (Lee, 1995). Moreover the industrial structure followed by Scotland in mid nineteenth century had several strong advantages which helped Scotland to achieve its present growth. Keeping these points in view, the present study has been conducted with the following objectives. 1) What are the dominant industries of Scotland and their respective strengths in mid nineteenth century. 2) What are the major factors that led to sustenance of industrial direction or structure for longer period in Scotland. Methodology: Literature relating to the industrial structure in Scotland in mid nineteenth century was reviewed systematically. Information regarding the problems that existed, inherent strengths and dominant industries present in Scottish society in mid nineteenth century was also collected and presented in logical manner. The information relating to the positive factors like unification of Scotland with England, stronger agrarian growth rate and technological innovations emerged during that period was documented. The views of historians regarding the industrial structure of Scotland were incorporated in the collected review of literature. The technical information relating to the specific objectives was presented from different sources and discussed thoroughly. Results and Discussion What are the dominant industries of Scotland and their respective strengths in mid nineteenth century? One of the main reasons for successful continuation of industrial structure in Scotland in mid nineteenth century is the right blend of different type of industries (Paul Robertson, 1975). In other words, the industries were planned and allowed for establishment in such a manner that they fulfilled the market demand existed during that time. Similarly they have been planned in such a manner that the raw material was made available regularly for almost all the industries. The faster growth in agricultural crop production had also supported the necessary supply of raw materials for the respective industries. The selection of location of the established industries was also one of the crucial points for the success. Some of the achievements made in the technological era also helped the industrial structure to endure for longer period in Scotland in mid nineteenth century (Ann E Whetstone, 1978). For example, in the 18th century, Scotsmen such as David Hume and Adam Smith stood in the forefront of the European Enlightenment. Educational standards, from elementary to university level, were high, and many English religious dissenters, barred from Oxford and Cambridge, received excellent educations in Scotland. Over all, this intellectual atmosphere resulted in many practical inventions which in turn contributed for further industrial revolution, including the work of James Watt. The economic results of its union with England eventually proved wholly favorable to Scotland, and the people gradually enjoyed a higher standard of living. One more transformation was that feudal land tenure slowly gave way to modern leases. Thriving commerce within the British Empire led to expansion of shipping and shipbuilding, and Glasgow achieved eminence as a commercial center. One more important factor responsible for stable industrial growth of Scotland is the in the form of strong organization of trade union movements representing the genuine interests of the working class. The second half of the nineteenth century was witness to a major expansion of the Scottish economy, especially in heavy industry. This was accompanied by the development of new managerial strategies of control, and by the introduction of unskilled or semi-skilled labour into trades previously the preserve of the skilled. Economic change and technological advance constantly restructure the composition of the working class: "The working class is not a static economic category. It is remade and remakes itself in a dialectical interplay as changes which occur in the economic and social structure of capitalism elicit political responses." The working class is never simply the victim of capitalist exploitation. Workers join together to resist and to defend their interests: "Organisation is at first localised. However, as capital grows and nationalises itself, labour follows suit." Labour initially organises in pre-industrial forms - the oath-bound secret society. Over time, however, this gives way to local, then regional, then national trade union organisation. Eventually, the trade unions intervene into the political arena: The ideal balance between agriculture and industry was one of the important factors for successful industrial growth in Scotland in mid nineteenth century (Christopher Harvie, 2006 and Irene Maver,2000). The boost in agricultural productivity in general and cotton and wool in particular led to proportionately stronger industrial structure in Scotland. It is other wise also. The agriculture also got impetus because of industrial demand for raw materials. The increasing market for meat and wool spurred new developments in agriculture and cattle breeding. Towards the end of the 18th century, cotton spinning and weaving on the new power machinery of the Industrial Revolution became Scotlands leading industries. By the end of the 19th century, metallurgical industry had come to dominate the economy. One more development was that the exploitation of rich coal and iron fields resulted in a concentration of heavy industry in a central belt running from Ayrshire to Fife. The rise of a new middle class and an urban working class also contributed for better industrial growth as they contributed enormously in factory jobs. What are the major factors that led to sustenance of industrial direction or structure for longer period in Scotland? Some of the situations present in the late 18th century in Scotland were mainly responsible for the successful endurance of industrial structure evolved in mid nineteenth century. The complex of radical socioeconomic changes, such as the ones that took place in Scotland in the late 18th century, that are brought about when extensive mechanization of production systems are most important factors which in turn resulted in a shift from home-based hand manufacturing to large-scale factory production. Some technological changes like the use of iron and steel, new energy sources, the invention of new machines that increased production (including the steam engine and the spinning jenny), the development of the factory system, and important developments in transportation and communication (including the railroad and the telegraph) have made favorable atmosphere for ideal industrialization in Scotland in mid nineteenth century. As a result the Industrial Revolution was largely confined to Scotland and England from 1760 to 1830 and then spread to Belgium and France. The technological innovations made during 1830–1860 period were also most important in making industrial structure endured for a long period. Till this period, cotton manufacturers, steamboat promoters, and railroad administrators alike were less concerned with productivity than with turning a quick profit through monopolies, cartels, and niche markets. Precise cost control was almost impossible and subcontracting was the rule, as well as piece-work rather than wages. In this environment, technical innovations that sped production could lessen costs for the manufacturer. The feeling or sense of nationalism also led to more technological advancement including industrial revolution in Scotland in mid nineteenth century (Graeme Morton, 1996 and Hanham, 1967). Similarly, Scotland experienced a fair and smooth transformation from traditional agrarian society to modern agricultural and industrial era which led to a stable industrial structure (Devine and David Dickson, 1983). There was also a theory of historians that unification of England with Scotland resulted in more stable economy and industrial structure for Scotland which endured for long (Neil Earnshaw, 1992). During the First Industrial Revolution in Scotland, the industrialist replaced the merchant as the dominant figure in the capitalist system. In the latter decades of the nineteenth century, when the ultimate control and direction of large industry came into the hands of financiers, industrial capitalism gave way to financial capitalism and the corporation. This has also led to more stable industrial structure in Scotland in mid nineteenth century. The industrial structure also facilitated introduction of new products and services which greatly increased international trade. Improvements in steam engine design and the wide availability of cheap steel meant that slow, sailing ships could be replaced with steamships, such as Brunels SS Great Western. Similalry, electricity and chemical industries also moved to the forefront. The industrial structure in Scotland also facilitated amalgamation of industrial cartels into larger corporations, mergers and alliances of separate firms, and technological advancement (particularly the increased use of electric power) which has also resulted in its higher stability. Cut-throat competition in the mid-1800s caused the creation of super corporations and conglomerates. Many companies borrowed heavily to achieve the vast sums of money required to takeover their rivals, resulting in a new capitalist stage of development. The proportionate development of more intricate and efficient machines along with monopolistic mass production techniques greatly expanded output and lowered production costs (Malcolm Gray, 1976). Long-term economic trends led Scotland and Britain to be more receptive to the desires of prospective overseas investment. At the end of the Victorian-era, the service sector (banking, insurance and shipping, for example) began to gain prominence at the expense of manufacturing. One of the main reasons for this trend is that the banks had given huge amont of loans for the bigger companies who entered in to amalgamations and hence they started controlling the industries. Negative effects: Industrialization also produced severe social and economic distress, for which traditional private philanthropy proved inadequate, and led to outbreaks of unrest in city and countryside alike such as the Crofters War of hard-pressed tenant farmers in the 1880s. It was reported that the economic miracle was made possible with industrial revolution in Scotland but it also resulted in social disaster (Devine, 1999, Fraser and Morris, 1990 and Devine et al., 2005). The industrial revolution also resulted in disruption of religious institutions in Scotland (Brown and Fry, 1993). It was felt that religious institutions like the Church got severely affected due to the changes in cultural traits of the people caused by the faster industrial growth directly or indirectly. One more negative affect due to faster industrial growth rate was that the Scotland was compelled to participate in wars resulting in huge losses on all fronts. Concentration on heavy industry made Scotland to participate in World War I indirectly. Scotland suffered heavily in the depression between the wars. The fall of industrial growth in Scotland was clearly noticed in 1930s (Malcolm Gray, 1981). Some historians reported that Scotland experienced industrial rise and relative decline, concerned above all with the leaders and workers (industrial, political, manufacturing, mining and engineering, as well as religious, union, educational and moral) who produced the former and suffered in the latter (William Knox, 1999). Conclusion: Several countries experienced industrial revolution and in majority of the cases they had got benefited for a shorter period and they also had to face disadvantages of emergence of new industrial units. Scotland is one of the few countries whose industrial structure endured for a long as it resulted in continuous positive effects. It is more relevant to refer to the industrial structure that emerged in mid nineteenth century in Scotland which proved to be more sustainable one due to several inherent strengths in it. The unification of Scotland with England, stronger agrarian sector development and proportionate technological innovations and higher market demand were responsible for the long term endurance of industrial structure in Scotland. All the positive factors of favorable industrial atmosphere in England like strong infrastructure and proportionate technological advancements have certainly helped the Scotland to frame an ideal industrial structure. In addition, faster growth of agriculture in terms of crop production has helped tremendously for favorable industrial growth rate and it also provided necessary flexibility for Scotland in formulating its unique industrial structure in mid nineteenth century. However, one must not forget the fact that Scotland also experienced fall in industrial growth later which led to several necessary changes in industrial structure. References: Ann E. Whetstone. (1978), Review paper on An Economic History of Modern Scotland, 1660-1976 (by Bruce Lenman). The American Historical Review, Vol. 83, No. 5 P:1265-1266. Brown, S.J. & Fry, M. (1993), (eds), Scotland in the Age of Disruption. Campbell. R. H.(1985), Scotland Since 1707: The Rise of an Industrial Society. J. Donald publication, p : 274. ISBN-10: 0859761223. Christopher Harvie. (2006), "Review of T.M. Devine, C.H. Lee, and G.C. Peden, eds, The Transformation of Scotland: The Economy Since 1700," H-Albion, H-Net Reviews, http://www.h-net.org/reviews/showrev.cgi?path=186091149693676. Devine, T.M. (1999), The Scottish Nation 1700-2000 Chs. 12, 15, 20 Devine, T.M., Lee, C.H. and Peden, G.C. (2005), (eds.,) The Transformation of Scotland Chs. 2, 5. Devine, T.M. and David Dickson. (1983), Ireland and Scotland, 1600-1850: Parallels and Contrasts in Economic and Social Development. John Donald Publishers. P:283. Fraser, W.H. and Morris, R.J. (1990), (eds.,) People and Society in Scotland, Vol. 11, 1830-1950 Chs. 3, 6, 9. Graeme Morton, T. (1996), Scottish Rights and Centralisation in the Mid-Nineteenth Century. Nations and Nationalism 2 (2), 257–279. Hanham, H.J. (1967), `Mid-century Scottish nationalism: romantic and radical in Ideas and Institutions of Victorian Britain, (ed) R. Robson, [AB46] Irene Maver. (2000),"Review of T. M. Devine, The Scottish Nation: A History 1700-2000," H-Albion, H-Net Reviews, May,http://www.h-net.org/reviews/showrev.cgi?path=21333957377847. Lee. C. H. (1995), Scotland and the United Kingdom: The Economy and the Union in the Twentieth Century (Insights from Economic History). Manchester University Press. P:150. ISBN-10: 0719041015. Malcolm Gray, Paul L (1981), Review paper on The Rise and Fall of Scottish Industry, 1707-1939. (by R. H. Campbell). The Economic History Review, New Series, Vol. 34, No. 2 , pp. 320-321. Malcolm Gray. (1976),. Review paper on The Development of the West of Scotland: 1750-1960 (by Anthony Slaven). The Economic History Review, New Series, Vol. 29, No. 2 P: 318-319. Neil Earnshaw. (1992), Review paper on Growth and Contraction, Scottish Industry, c.1860-1990, (by Peter L. Payne). The Economic and Social History Society of Scotland. P:49. Robertson. (1975), Review article on The Development of the West of Scotland, 1750-1960.(by Anthony Slaven). The Journal of Economic History, Vol. 35, No. 4, P: 900-902. William Knox. (1999), Industrial Nation: Work, Culture and Society in Scotland, 1800-Present. Edinburgh University Press. P:352. ISBN-10: 0748610855. industrys links with the state, the conservatism of management and workers towards change, the role of empire, the role of politics in the sense the trade unions influenced government to protect jobs Read More