Georg Leo Graf von Caprivi de Caprara de Montecuccoli was a German general and statesman who served as the chancellor of the German Empire from March 1890 to October 1894. Caprivi promoted industrial and commercial development, and concluded numerous bilateral treaties for reduction of tariff barriers. However, this movement toward free trade angered the conservative agrarian interests, especially the Junkers. He promised educational reforms to the Catholic Center party which would increase their influence, but failed to deliver. As part of Kaiser Wilhelm's "new course" in foreign policy, Caprivi abandoned Bismarck's military, economic, and ideological cooperation with the Russian Empire, which historians consider a major mistake. Even worse, Caprivi misjudged multiple opportunities to open good relations with the United Kingdom of Great Britain and Ireland. Frustrated, Britain turned to the Empire of Japan and the French Third Republic for agreements. Caprivi's downfall came with trade agreements that favored German industry and urban workers over more powerful agricultural interests. Historians praise his refusal to renew the harsh restrictions on socialists, and his success in the reorganization of the German military.

The Imperial German Navy or the Kaiserliche Marine was the navy of the German Empire, which existed between 1871 and 1919. It grew out of the small Prussian Navy, which was mainly for coast defence. Kaiser Wilhelm II greatly expanded the navy. The key leader was Admiral Alfred von Tirpitz, who greatly expanded the size and quality of the navy, while adopting the sea power theories of American strategist Alfred Thayer Mahan. The result was a naval arms race with Britain, as the German navy grew to become one of the greatest maritime forces in the world, second only to the Royal Navy.