Industrialization in Denmark began to take hold in the latter half of the 19th century. The country’s first railroads were constructed in the 1850s, significantly improving communication and facilitating trade. Despite Denmark's lack of natural resources, this period of industrial growth was propelled by overseas trade, allowing industries to develop and flourish. As industrialization progressed, there was a substantial migration from rural areas to the cities, reshaping the nation’s demographic and economic landscape.
During this period, Danish agriculture underwent a transformation, focusing on the export of dairy and meat products, particularly to Great Britain. After Denmark's defeat in the Second Schleswig War in 1864, the nation shifted its trade strategy. Instead of relying on German middlemen in Hamburg, Denmark established direct trade routes with England. This change facilitated the country's emergence as a major exporter of butter. Land reforms, technological advancements, and the establishment of educational and trading systems played a crucial role in this agricultural success. Although agricultural cooperatives emerged later in the century, it was the leadership of Denmark's landed, intellectual, and political elites that initially drove these changes. They implemented land reforms that helped create a middle-ranking class of farmers, who adopted innovative agricultural techniques from wealthy estate owners and further developed them through cooperative efforts.
The Danish labor movement also began to take shape in the 19th century, influenced by both internationalism and nationalism. The movement gained momentum as social issues became intertwined with international labor solidarity. In 1871, socialist journalist Louis Pio emerged as a leading figure, advocating for the workers to organize independently. Inspired by socialist theory and the ideas of the First International, Pio founded the International Labour Association for Denmark, which later evolved into the Social Democratic Party. This organization united labor union activities with political action, blending national and international elements of the workers' struggle. Pio believed that internationalism was essential for workers' progress, asserting that without cooperation across borders, workers would be unable to challenge the power of the middle classes, who used nationalism to maintain control.
The Danish labor movement's efforts led to strikes and demonstrations demanding higher wages and social reforms. These demands, although moderate, were met with resistance from employers and authorities. Tensions culminated in the Battle of Fælleden on May 5, 1872, when the authorities arrested Louis Pio, Poul Geleff, and Harald Brix, the movement’s three leaders, charging them with high treason. They were subsequently exiled to the United States, where they attempted to establish a socialist colony in Kansas, which ultimately failed.
In the political realm, the growing independence and influence of the Danish peasantry began to challenge the existing elites. As political opportunities expanded, peasants, along with liberal and radical urban elements, gained more power, eventually securing a majority in the Folketing, Denmark's lower house of parliament. Although changes had been made to strengthen the power of the Landsting, the upper house, the Left Venstre Party demanded to form a government. King Christian IX initially resisted but relented in 1901, appointing Johan Henrik Deuntzer from Venstre to form the Cabinet of Deuntzer. This marked the beginning of a tradition of parliamentary governance in Denmark. Since 1901, except for the Easter Crisis of 1920, no government has ruled against the majority in the Folketing, establishing the foundation for modern Danish democracy.