II.

History

Cartels originated in Germany during the 1870s, coinciding with the growth of that country's economy. Their successful operation is thought to be partially responsible for German aggression, which led to two world wars. During World War I the government of Germany utilized domestic cartels to produce armaments and other war materials. In the next two decades German firms continued to combine to control production. One of the most important was I. G. Farbenindustrie, which produced chemicals and dyestuffs. By the start of World War II almost all German industry was controlled by cartels, supervised and encouraged by the government.