In one sense, each growing economy in Europe adapted its own banking to its particular needs. Britain, the leading 19th century nation in Europe, developed its private banking structure for the needs of colonial trade: long-term capital investment opportunities abroad. Germany, on the other hand, developed its banking structure with the purpose of 'catching up'.

The growth of 19th century manufacturing was built on the back of Enslaved People, the taxes of Indian peasants and the subsequent impoverishment of the Indian peoples. Enslaved peoples provided cotton, the raw material, from which industrial textile manufacturing became the leading product of the industrial revolution. The money derived from Indian taxpayers became the backbone of the City of London.

We need to ask and understand what are the necessary conditions for a society to transform itself so that it can industrialise? This question is perhaps one of the critical issues of history. In this blog, I examine what transformation entails for society and what conditions are necessary for this to occur. The components needed for transformation include the following occurring more or less simultaneously: 1. The reformation of ideas. Everywhere old ideas, in particular, religious frameworks are challenged…

The transformation from an ancient society towards an industrial urban capitalist world has nearly always been a revolutionary process which has torn society apart. The almost complete breakdown of societies in the multi-layered wars between the 1780s and 1815, and then from 1914 to 1945, reflect these long-term processes at work. At the end of both periods, not only was the world a very different place with many millions of people dead, but many of the necessary conditions towards the industrial urban capitalist world had also been established.

The twin historical forces of colonialism and capitalism ‘destroyed’ much of the ancient social, economic, ideological and political systems of the world and transformed it. Today we call this ‘progress’. Progress did not happen all at once, of course. People, states, and governments resisted over long periods, but in the end, most peoples were overwhelmed…