World War I Economic History: Forging Nations, Shaping Economies, Unveiling World War I's Economic Legacy

By Fouad Sabry

What is World War I Economic History

The tactics that were utilized throughout the First World War (1914-1918) are included in the economic history of World War I. Additionally, related postwar issues such as war debts and reparations are also included in this history. This also encompasses the economic mobilization of labor, industry, and agriculture that ultimately results in the breakdown of the economy. Not only does it deal with economic warfare, like as the blockade of Germany, but it also deals with some topics that are directly tied to the economy, such as military transportation issues. See "Home front during World War I" for a more comprehensive look at the situation.

How you will benefit

(I) Insights, and validations about the following topics:

Chapter 1: Economic history of World War I

Chapter 2: Austria-Hungary

Chapter 3: Central Powers

Chapter 4: German Empire

Chapter 5: Aftermath of World War I

Chapter 6: Mobilization

Chapter 7: History of Russia (1894-1917)

Chapter 8: Eastern Front (World War I)

Chapter 9: Causes of World War I

Chapter 10: Allies of World War I

Chapter 11: Japan during World War I

Chapter 12: History of Germany during World War I

Chapter 13: United States home front during World War I

Chapter 14: Economy of Austria-Hungary

Chapter 15: Home front during World War I

Chapter 16: International relations (1814-1919)

Chapter 17: Diplomatic history of World War I

Chapter 18: French entry into World War I

Chapter 19: German entry into World War I

Chapter 20: Austro-Hungarian entry into World War I

Chapter 21: Russian entry into World War I

(II) Answering the public top questions about world war i economic history.

(III) Real world examples for the usage of world war i economic history in many fields.

Who this book is for

Professionals, undergraduate and graduate students, enthusiasts, hobbyists, and those who want to go beyond basic knowledge or information for any kind of World War I Economic History.

• Language: English
• Publisher: One Billion Knowledgeable
• Release date: Feb 2, 2024

Book preview

Chapter 1: Economic history of World War I

The economic history of World War I examines the strategies employed throughout the First World War (1914–1918), as well as postwar issues including war debts and reparations. In addition, it addresses the economic mobilization of labor, industry, and agriculture that leads to economic failure. It discusses economic warfare, like as the blockade of Germany, and some concerns closely tied to the economy, such military transportation issues. See Homefront during World War I for a broader perspective.

British poster encouraging investment in war bonds

None of the powers in 1914 had made any economic preparations for a protracted war, such as the stockpiling of food or vital raw resources. The longer the war lasted, the greater the benefits accrued to the Allies, whose economy were larger, more robust, and more adaptable, and who had better access to global resources. As Stephen Broadberry and Mark Harrison conclude, after the stalemate of late 1914, the stronger Allied capabilities for taking risks, absorbing the cost of mistakes, replacing losses, and amassing overwhelming quantitative superiority should have eventually tipped the scales against Germany..

Three Allies (Britain, Italy, and the United States) had a gain in their gross domestic product (GDP), while France, Russia, the neutral Netherlands, and the three major Central Powers experienced a decline. The GDP decreased by 30 to 40 percent in Austria, Russia, France, and the Ottoman Empire. In Austria, for instance, most pigs were murdered, thus there was no meat at the end of the war.

The Western Front quickly stabilized, with only a few hundred yards of movement. The most expensive item for both sides was artillery shells, the war's primary armament. Both sides constructed sophisticated railway networks that transported supplies within a mile or two of the front lines; horse-drawn wagons were utilized for the final deliveries. Approximately 10 million shells weighing 1.4 million tons of steel were fired by the French and Germans during the ten-month fight at Verdun.

The German U-boat counterblockade was overcome by the American convoy system and huge shipbuilding. Britain funded the majority of its allies' war expenses until it ran out of money, at which point the United States took over, financing those allies as well as Britain.

Women workers at the Royal Gun Factory, Woolwich Arsenal, London

Despite the absence of so many men in the military, the economy (as measured by GDP) increased by around 7 percent between 1914 and 1918; in comparison, the German economy fell by 27 percent. The war led to a reduction in civilian consumption and a significant reallocation of resources to armaments. The government's proportion of GDP increased from 8% in 1913 to 38% in 1918. (compared to 50 percent in 1943).

Light energy was crucial to the British military effort. The majority of energy sources originated from British coal mines, where labor supply was an issue. However, the flow of oil for ships, trucks, and industrial use was crucial. There were no oil wells in the United Kingdom, so all petroleum was imported. The United States pumped the majority of the world's oil. In 1917, Britain consumed 827 million barrels of oil, of which 85 percent came from the United States and 6 percent from Mexico.

Prior to 1914, Clydeside shipyards were the busiest in the world, producing more than a third of the whole British output. During the war, they grew by a third, principally to construct the types of transports that German U-boats were actively sinking.

Ireland was on the edge of civil war in 1914 after Unionists, particularly those in Ulster, voted against a home rule statute passed by Parliament. When war came out, the law was suspended, and Protestants provided a substantial amount of military and industrial support.

The Commonwealth countries and India both played significant roles. The Asian and African colonies supplied a substantial number of civilian laborers and warriors. During World Conflict I, the Indian Army contributed numerous divisions and independent brigades to the European, Mediterranean, and Middle Eastern theaters of war. Over one million Indian troops served abroad; 62,000 were killed and another 67,000 were injured.

During the war, Canada was rich, but ethnic violence raged nearly out of control. Regarding long-term economic developments, the conflict had little effect on the direction or rate of change. Principal economic elements, the business and financial system, and technology continued on their trajectory. For a few years following the end of World War II, there was a tremendous degree of agitation among union members and farmers. During the war, women temporarily filled wartime jobs.

The Australian Honour Flag, given to subscribers of the Seventh War Loan of the Australian Government in 1918

As prime minister beginning in October 1915, Billy Hughes strengthened the government's role in the economy while handling heated arguments over the question of conscription.

South Africa was responsible for supplying two-thirds of the British Empire's gold production (most of the remainder came from Australia). When the war began, Bank of England officials collaborated with the government of South Africa to prevent gold supplies to Germany and compel mine owners to sell only to the Treasury at prices determined by the Treasury. This facilitated the acquisition of weapons and food in the United States and other neutral countries. London ceded authority to the mining companies by 1919. (which were now backed by the South African government). They desired the higher prices and New York sales that a free market would generate.

Destroyed houses in Dinant, 1915.

Belgium suffered extensive material damage, providing a significant barrier to its economic recovery following the conflict.

At the beginning of the war, the Germans invaded Belgium, and Belgium remained occupied for the duration of the conflict. There was both spontaneous large-scale militant and passive opposition. More than 1,400,000 refugees escaped to France or the neutral Netherlands.

Rubber had long been the primary export of the Belgian Congo, and production levels remained stable during the conflict, but its importance dropped from 77 percent (by value) of exports to barely 15 percent.

New sources became available, Massive copper mining in Province Katanga.

The Union Minière du Haut Katanga company dominated the copper industry, Beira, along a direct rail line to the sea, exports its goods.

The war created a substantial demand for copper, output increased dramatically from 997 tons in 1911 to 27,000 tons in 1917, thereafter decreased to 19,000 tons in 1920.

Elizabethville includes smelters.

Prior to World War II, copper was sold to Germany, In order to prevent capacity loss, All of the Congo's wartime produce was acquired by the British, with the proceeds going to the Belgian government in exile.

During the battle, diamond and gold mining also developed.

The British-Dutch company Lever Bros.

During the conflict, the palm oil industry developed significantly, while cocoa production increased, combined rice and cotton.

New rail and steamship routes were constructed to accommodate the increased export trade.

French photograph entitled "Heroic Women of France.

Hooked up to the plough, Developing the soil.

The entire agricultural industry falls on their shoulders.

Uncomplaining, with a mood that approaches religious jubilation, The French woman carries the load.", c.

1917–20, praising the contribution of women to agriculture

In 1914, the German invasion grabbed forty percent of France's heavy industry, particularly steel and coal. In 1918, the French GDP was 24 percent smaller than in 1913, and as a third of the economy went towards the war effort, the civilian standard of life dropped by half. However, thousands of small companies developed across France, employing women, youth, the elderly, crippled veterans, and soldiers behind the lines. Vietnamese and Algerian laborers were recruited. Each day, plants manufactured 200,000 75mm shells. The United States donated a substantial amount of food, steel, coal, and machine tools, as well as $3.6 billion in loans to finance it all; the British provided a further $3 billion.

In 1917, the infusion of American food, money, and raw resources provided significant help. After 1917, the economy was sustained by American government loans used to purchase food and manufactured products. In 1918, the entrance of nearly a million American soldiers resulted in substantial expenditures on food and building materials.

The numerous areas of France suffered in various ways. 14 percent of France's industrial workforce resided in the occupied zone in 1913, yet it produced 58 percent of France's steel and 40 percent of its coal.

The French government issued four issuance of war bonds on the London market, raising 55 million pounds. These bonds were denominated in francs as opposed to pounds or gold, and they were not insured against exchange rate swings. After the war, the franc depreciated, and British bondholders unsuccessfully sought repayment.

French colonies provided labor for weapons factories and other French industries. Ho Chi Minh, who worked in Paris and was extremely active in organizing fellow Vietnamese, even demanded a voice for them at the 1919 Paris Peace Conference, is a notable example. The French army recruited tens of millions of colonials. Africa supplied 212,000 soldiers, of which 160,000 fought on the Western front.

Despite Britain's financial assistance, the Russian economy was much too backward to sustain a large war, and things deteriorated swiftly. Late in 1915, there was an extreme lack of artillery ammunition. Despite its poor organization and lack of ammunition, the enormously vast but poorly armed Russian army battled tenaciously and courageously. The number of casualties was huge. By 1915, many soldiers were sent to the front without weapons and instructed to collect whatever they could from the battlefield.

The outbreak of World War I revealed the incompetent administration of Nicholas II's czarist government. Russia's entry into the conflict was preceded by a display of national solidarity, with the defense of Slavic Serbs serving as the primary rallying cry. The Duma and the zemstva declared complete support for the government's war effort during the summer of 1914. The early phase of Russia's military expansion demonstrated that the empire had learned from the Russo-Japanese War. The initial conscription was well-organized and peaceful. But military reversals and government incompetence quickly alienated the majority of the populace. The majority of Russia's foreign supplies and markets were cut off by the enemy's control of the Baltic and Black seas.

Russia was unprepared for a large war and reacted slowly as issues escalated from 1914 to 1916. Inflation became a significant issue. Due to insufficient material support for military operations, the War Industry Committees were established to ensure that essential supplies reached the front lines. However, army officers engaged in disputes with civilian leaders, seized administrative control of the front lines, and refused to cooperate with the committee. The central government lacked confidence in the independent war support efforts established by zemstva and municipalities. The Duma clashed with the government's war bureaucracy, and centrist and center-left lawmakers ultimately joined the Progressive Bloc to establish a constitutional government. While the central administration was hamstrung by court intrigue, the strain of the war began to produce unrest among the general populace. Due to military expenditures, transit bottlenecks, financial turmoil, and administrative blunders, food shortages are increasingly affecting metropolitan regions.

Italy joined the Allies in 1915, but its military preparations were inadequate. British loans covered nearly all of its war costs. The Italian army of 875,000 men lacked heavy artillery and machine guns and was poorly directed. The industrial base was insufficient to offer sufficient quantities of modern technology, while the rural base produced little spare food.

Poster to promote the sale of Liberty Bonds, c.

1917–18; Donated funds will sever the ties that connect Columbia to the stake.

In terms of weapons production, the fifteen months following April 1917 were marked by an incredible parade of errors, misplaced exuberance, and confusion. The Americans were willing, but they did not understand their duty. Wilson was unable to determine what to do and when, as well as who was in command. The coal crisis that struck in December 1917 exemplified the chaos. A severe crisis ensued since coal was by far the most important source of energy and heat. There was an abundance of coal being produced, but 44,000 freight and coal cars were stuck in horrifying traffic jams in East Coast train yards. There were two hundred ships waiting in New York harbor for cargo that had been delayed due to the commotion. The plan involved nationalizing the coal mines and railroads for the period, closing manufacturing one day per week to conserve fuel, and implementing a rigid system of priorities. Wilson did not assume command of the crisis until March 1918.

During the conflict, many women gained access to and assumed previously male-dominated occupations. Many worked on factory assembly lines, making trucks and weapons. The women's morale remained high as millions of volunteers joined the Red Cross to aid soldiers and their families. Rare exceptions excepted, women did not protest the draft. Department shops hired African American women for the first time as elevator operators and cafeteria waiters.

The AFL's leader, Samuel Gompers, and virtually all labor unions were staunch backers of the war effort. As salaries rose and full employment was attained, they reduced the number of strikes. The AFL unions enthusiastically urged their young men to serve in the military and vigorously fought efforts by the anti-war Industrial Workers of the World (IWW) and left-leaning Socialists to restrict recruiting and halt war output. Gompers was nominated to the influential Council of National Defense by President Wilson, where he established the War Committee on Labor. In 1917, AFL membership climbed to 2.4 million. The Union attempted to make its victories permanent in 1919 by calling for a series of massive strikes in the meat, steel, and other industries. The unsuccessful strikes relegated unions to the status they held circa 1910.

German munitions factory, 1916

Germany quickly recruited her armed forces, but had to improvise when it came to mobilizing its civilian sector for the war effort. Due to the British blockade, food supplies, machinery, and raw materials were extremely limited.

Walter Rathenau played a crucial role in persuading the War Ministry to establish the War Raw Materials Department (Kriegsrohstoffabteilung—KRA). From August 1914 to March 1915, he was in command of the department and established its fundamental rules and procedures. His senior personnel was on loan from the business sector. The KRA prioritized raw commodities threatened by the British blockade and supplies from seized Belgium and France. It established pricing and regulated distribution for crucial war industry. It initiated the creation of substitute raw materials. KRA met numerous inefficiencies because to the complexity and egotism of trade, industry, and the government.

Before the conflict began, Turkish nationalists seized control of the Ottoman Empire. They displaced Greeks and Armenians, who had formed the backbone of the commercial community, and replaced them with ethnic Turks who were offered favorable contracts despite their lack of international connections, credit sources, and entrepreneurial abilities.

The Compromise of 1867 led to the monarchical personal union of the two kingdoms, Austria and Hungary.

After the Hungarian Revolution of 1848, Kingdom of Hungary lost its prior status.

However, following the changes of 1867, Within the Empire, the Austrian and Hungarian states became equal.

Geographically, Austria-Hungary was the second-largest country in Europe, after the Russian Empire, at 621,538 km² (239,977 sq mi), The Empire of Austria and the Kingdom of Hungary have long maintained distinct legislatures: the Imperial Council (Austria) and the Diet of Hungary, respectively. Except for the Pragmatic Sanction of 1713, the Empire of Austria and the Kingdom of Hungary never had common law.

One could only be an Austrian citizen or a Hungarian citizen, never both.

The empire's heavy industry was mostly concentrated on machine building, particularly for the electric power industry, locomotive industry, and automotive industry, whereas the precision mechanics industry dominated in light industry.

During the war, the national governments of Vienna and Budapest established a highly controlled military economy, which led to a bureaucratic dictatorship. It drafted skilled laborers and engineers without recognizing the economic harm it caused.

The Czech region had a better developed economy, but it was hesitant to contribute to the war effort. Because it threatened their language and culture, the Czechs rejected any customs union with Germany. Czech bankers had an eye toward early independence; they purchased several Czech stocks, so ensuring their strong domestic position in 1918's Czechoslovakia.

Initially, Bulgaria, a 4.5 million-person poor rural nation, remained neutral. It joined the Central Powers in 1915.

After the outbreak of World War I in 1914, Chile's international trade plummeted and the government's income fell to half its former level.

The conditions on the continent were poor for all combatants. Other than the loss of personnel, Britain's civilian economy suffered the least damage. Its merchant fleet and financial holdings sustained the heaviest damage. During the war, the United States and Canada flourished. In principle, the reparations imposed on Germany by the Treaty of Versailles were intended to restore the damage to the civilian economies, but only a small portion of the reparations funds were allocated to this purpose. The majority of Germany's reparations payments were funded by loans from American banks, which the beneficiaries used to repay U.S. Treasury loans. Germany paid 19 billion goldmarks in reparations and received 27 billion goldmarks in loans from New York bankers and others between 1919 and 1932. Germany eventually repaid these loans after World War II.

{End Chapter 1}

Chapter 2: Austria-Hungary

In common parlance, Austria-Hungary was more commonly known as the Austro-Hungarian Empire. It was formed with the Austro-Hungarian Compromise of 1867 in the aftermath of the Austro-Prussian War, and it was dissolved shortly after Hungary terminated the union with Austria on October 31, 1918. Austria-Hungary constituted the final phase in the constitutional evolution of the Habsburg monarchy.

One of the great powers in Europe during that time period, After the Russian Empire, Austria-Hungary occupied the position of Europe's second-largest country in terms of land area, at 621,538 km² (239,977 sq mi)

On July 28, 1914, Austria-Hungary issued a declaration of war against the Kingdom of Serbia, which marked the beginning of World War I. Austria-Hungary was one of the Central Powers that participated in the conflict. When the military authority signed the armistice at Villa Giusti on November 3, 1918, it had already been essentially dissolved for all intents and purposes. While the independence of the West Slavs and South Slavs of the Empire as the First Czechoslovak Republic, the Second Polish Republic, and the Kingdom of Yugoslavia, respectively, as well as the majority of the territorial demands of the Kingdom of Romania and the Kingdom of Italy were also recognized by the victorious powers in 1920, the Kingdom of Hungary and the First Austrian Republic were treated as its successors de jure.

Silver coin: 5 corona, 1908: A bust of Franz Joseph I facing right with the caption Franciscus Iosephus I surrounding it, Dei gratia, imperator Austriae, rex Bohemiae, Galiciae, Illyriae and Everything Else, and Apostolic King of Hungary

The realm's official name was in German: Österreichisch-Ungarische Monarchie and in Hungarian: Osztrák–Magyar Monarchia (English: Austro-Hungarian Monarchy), in German, the Danubian Monarchy was known as the Donaumonarchie; Dunai Monarchia, sometimes known as Dual Monarchy (German: Doppel-Monarchie), is the term used in Hungary; The Dual Monarchy and The Double Eagle (German: Der Doppel-Adler) are both Hungarian and German words; Hungarian: Kétsas), But none of these ever gained significant traction, not in Hungary nor anywhere else.

In the internal administration of the realm, the entire name of the realm was referred to as The Kingdoms and Lands Represented in the Imperial Council and the Lands of the Holy Hungarian Crown of St. Stephen.

German: Die im Reichsrat vertretenen Königreiche und Länder und die Länder der Heiligen Ungarischen Stephanskrone

Hungarian: A Birodalmi Tanácsban képviselt királyságok és országok és a Magyar Szent Korona országai

After the year 1867, the initials that were placed at the beginning of the names of official institutions in Austria–Hungary signified the level of responsibility held by those entities:

k.

u.

k.

(kaiserlich und königlich or Imperial and Royal) was the label for institutions common to both parts of the monarchy, e.g, the K.U.K. of it.

In addition to the Kriegsmarine (War Fleet),, in the course of the war, the K.U.K. of it.

Armed with (Army).

The name k.k. was retired and replaced by common army..

k.u.k. to.

1889 was the year that, at the request of the Hungarian government, they finally arrived.

K.

k.

(kaiserlich-königlich) or Imperial-Royal was the term for institutions of Cisleithania (Austria); This designation referred to the Crown of Bohemia while using the word royal..

K.

u.

(königlich-ungarisch) or M.

k.

(Magyar királyi) (Royal Hungarian) referred to Transleithania, the territories that were once under Hungarian control.

Within the boundaries of the Kingdom of Croatia and Slavonia, Its independent institutions are responsible for keeping k.

(kraljevski) Also known as Royal, as stipulated by the Croatian–Hungarian Settlement, In both Croatia and Slavonia, Croatian was the only language recognized for official use, And those organizations were only Croatian in nature.

In accordance with a decree issued by Franz Joseph I in 1868, the realm bore the official name Austro-Hungarian Monarchy/Realm (German: Österreichisch-Ungarische Monarchie/Reich; Hungarian: Osztrák–Magyar Monarchia/Birodalom) in its international relations.

In English, it was more commonly abbreviated as the Dual Monarchy, or it was referred to simply as Austria.

The Austro-Hungarian Compromise of 1867 (called the Ausgleich in German and the Kiegyezés in Hungarian), It marked the beginning of the dual structure of the empire, which was established in place of the Austrian Empire (1804–1867), started during a period in which the strength of the empire was rapidly waning.

As a direct consequence of its defeat in the Second Italian War of Independence, its sway over the Italian Peninsula was rendered effectively null and void, while it maintained its position as head of the states that comprised the previous German Confederation, after the end of the Austro-Prussian War in 1866, the leadership of Austria was taken over by Prussia, in conjunction with the Confederation of North German States, without the inclusion of Austria, as the preeminent force in the German-speaking region.

the unrestricted authority enjoyed by the Kingdom of Hungary, which had been misplaced following the failed revolution in Hungary in 1848.

Continued Hungarian frustration with Austrian dominance, as well as growing national awareness among the various other ethnicities that comprised the Austrian Empire, were both additional factors that contributed to the constitutional revisions. Austria's crushing of the Hungarian liberal revolution of 1848–49, which took place with help from Russia, was a contributing factor in the unhappiness of the Hungarian people. After 1849, direct Hapsburg rule took the place of Hungary's long-standing tradition of constitutional autonomy under the auspices of its own distinct parliament, known as the Diet of Hungary. On July 28, Franz Joseph, in his new capacity as King of Hungary, ratified and issued the new laws, which legally gave birth to the Dual Monarchy. This was the day that the Dual Monarchy came into existence.

Bosnian Muslim resistance during the battle of Sarajevo in 1878 against the Austro-Hungarian occupation

The German Question was ultimately resolved in favor of a Lesser German Solution as a result of the Peace of Prague (1866), which brought an end to the Austro-Prussian conflict.

Recruits from Bosnia-Herzegovina, including Bosniaks who practice Islam (31 percent ), as early as the year 1879, were forced into duty in specialized formations of the Austro-Hungarian Army and received praise for their valor while fighting for the Emperor of Austria, being presented with a greater number of medals than any other unit.

Eduard Wagnes wrote Die Bosniaken kommen, a military march, in their honor and dedicated it to be played at their funeral.

Due to the fact that they were unable to act as a mediator between the Ottoman Empire and Russia about the control of Serbia, When the quarrel between the two powers turned into a war, Austria–Hungary proclaimed that they would take a neutral stance in the battle.

Through the assistance of Romania and Greece, After Russia's victory over the Ottoman Empire, it signed the Treaty of San Stefano, which aimed to establish a big, pro-Russian Bulgarian state.

An international outrage was caused by this pact, and it nearly led to a war on a scale that encompassed all of Europe. Both Austria–Hungary and Britain dreaded the prospect of a large Bulgaria becoming a satellite of Russia, which would have given the tsar the ability to exercise dominance over the Balkans. Benjamin Disraeli, the Prime Minister of the United Kingdom, placed warships into position against Russia in order to block the expansion of Russian dominance in the eastern Mediterranean, which was getting dangerously close to the path that Britain took through the Suez Canal. In Austria, the Treaty of San Stefano was regarded as being much too favorable for Russia and the Orthodox-Slavic goals it sought to achieve.

The Russian triumph was nullified by the Congress of Berlin, which partitioned the huge Bulgarian state that Russia had formed out of Ottoman territory and denied any section of Bulgaria full independence from the Ottomans. This effectively nullified the Russian win.

In 1878, at the Congress of Berlin, Austria was granted permission to occupy Bosnia and Herzegovina, but the territory was not annexed, a region consisting primarily of Slavic speakers.

In order to strengthen its position in the Balkans, Austria maintained control over Bosnia and Herzegovina through occupation.

Serbia, Both Montenegro and Romania attained their complete independence.

Nonetheless, The Balkans continued to be a hotbed of political upheaval, with a seething desire for independence and intense competition between major world powers.

At the Congress of Berlin in 1878 Gyula Andrássy (Minister of Foreign Affairs) managed to force Russia to retreat from further demands in the Balkans.

Because of this, The Greater Bulgarian Empire was dismantled, and independence for Serbia was ensured.

After the Congress of Berlin, the major European countries engaged in a convoluted web of alliances and treaties in an effort to ensure continued peace and order in the region.

In October 1879 and May 1882, Austria–Hungary formed a defensive alliance with Germany in order to protect itself from the instability in the Balkans and the aggression from Russia, as well as to compete with the interests of France in Europe. In October of 1882, Italy became a member of this collaboration that was a component of the Triple Alliance. The primary motivation for this was Italy's imperial competition with France. Bismarck decided to replace the League of the Three Emperors with the Reinsurance Treaty with Russia in order to prevent the Habsburgs from impulsively beginning a war over Pan-Slavism. This was done since tensions between Russia and Austria–Hungary remained high.

Emperor Franz Joseph I in 1905

The Compromise created a true union between the Austrian Empire and the Habsburg provinces, which were known at the time as the Lands Represented in the Imperial Council, or Cisleithania. All of the other state tasks were to be managed independently by each of the two governments.

Certain regions, such as Polish Galicia within Cisleithania and Croatia within Transleithania, enjoyed autonomous status, each with its own distinct governmental structures (see: Polish Autonomy in Galicia and Croatian–Hungarian Settlement). Other regions, such as Croatia within Transleithania, also enjoyed autonomy.

Because the border between Austria and Hungary was so clearly demarcated, there was no such thing as dual citizenship; one could either be a citizen of Austria or of Hungary, but never of both. After the Hungarian revolution of 1848, both the Hungarian government and the Hungarian parliament were suspended; they were later reinstated after the Austro-Hungarian Compromise in 1867.

The Habsburg Monarchy's major capital was located in Vienna. Compared to the Hungarian component, the Cisleithanian (Austrian) part had around 57 percent of the total population and the greater share of its economic resources.

The rule of the Austro-Hungarian Empire might be broken down into three distinct parts:

the common foreign, military, and a joint financial strategy under the rule of the king (only for diplomatic, military, and naval expenditures; eventually expanded to encompass Bosnian issues).

Austrian or Cisleithanian governance, if you like (Lands Represented in the Imperial Council)

the government of Transleithania, sometimes known as Hungary (Lands of the Crown of Saint Stephen)

Electoral districts of Austria and Hungary in the 1880s.

On the map, districts that are in opposition to one another are shown in varying colors of red, Districts controlled by the ruling party are represented by varying colors of green, The free municipalities are represented in white.

The first prime minister of Hungary after the Compromise was Count Gyula Andrássy (1867–1871).

The previous constitution of Hungary has been reinstated, Together with his coronation, Franz Joseph became King of Hungary.

Andrássy next served as the Foreign Minister of Austria–Hungary (1871–1879).

The Empire came to rely more and more on a cosmopolitan bureaucracy, in which Czechs played an important role. These bureaucrats were supported by loyal elements, such as a significant portion of the German, Hungarian, Polish, and Croat aristocracy.

Officially known as the Ministerial Council for Common Affairs, the common government, or Ministerrat für gemeinsame Angelegenheiten in German) came into existence in 1867 as a result of the Austro-Hungarian Compromise.

The administration in Vienna, Austria, which up until then had ruled the monarchy became the government of the Austrian part, while a separate government was constituted for the Hungarian part.

In addition, a common government was established in order to deal with the limited number of issues concerning the common national security, and the Common Army was established, navy, The imperial household and matters of international policy, not to mention the customs union.

It was made up of three joint ministries of the Imperial and Royal governments