Why was Germany able to Industrialize After 1835?

Many medievalist economic institution also remained in place hampering the growth of agriculture and industries. Feudalism returned and continued with the serfdom of many and their obligation to provide a share of their harvest and labor to their landlords. Moreover, guilds controlled much of the industries and because with their licensure policies, establishing factories proved to be difficult and limited. In trade perspective, local German textile industry faced competition when the allies lifted the Continental System that blocked the entry of cheap British textile. A depression followed in 1817 exacerbated a drop in agricultural production driving food prices up.