Bismark

When Bismarck was made chancellor of Prussia in 1862, he embarked on a series of political moves that led to one of Europe's most powerful empires.

He made decisions that would maintain the power of the Prussian military. Bismarck's strategy involved three wars against Austria, France, and Denmark. Prussia won mainly due to its higher level of industrialization, and partly due to Bismarck's skill and luck. Prussia's economic power over smaller states combined with an advanced industrial base, ensured victory. The result was the foundation of a German empire under Prussian leadership.

The unification of Germany, a capitalist state, encouraged industrial growth. Steel, coal and iron production, and railway construction increased rapidly. As Bismarck and his allies expanded their upper hand, the new German empire underwent an economic transformation. A national banking and communications system was established. German laws were combined, making all of its citizens