http://en.wikipedia.org/wiki/Ernest_von_Koerber
What if Ernst von Koerber's economic plan had actually been carried through in Austria-Hungary? After becoming Prime Minister in 1900, Koerber tried to overcome the nationalist divide in Cisleithenia (Austrian half of the Empire) through a great public works program that would build up the rail roads to Lemberg, capital of Galicia and 4th largest city in the Empire, and Triest, the largest and most important port, which would link the port with Prague and enhance the rail roads in Slovenia and Carinithia, while also enhancing the port capacity of the city. Furthermore and probably much more importantly his plan called for building up a canal system that would link the Danube with the Elbe, Oder, and Vistula rivers, reducing shipping costs to Austrian and Bohemian industry immensely. Furthermore it would also reduce costs in shipping goods to Hamburg for shipment abroad and allow for cheap Russian coal to be brought in. There were also plans to regulate rivers to prevent yearly floodings and damage to nearby towns/infrastructure/agriculture.
Essentially the plan would have caused a major boom to the economy (at the time it would have cost 1 billion crowns), especially when there was a general recession going on. Much like other successful dictatorships it would have given the Empire purpose as a facilitator of infrastructure and trade that would be a massive boon to the various nationalities, hopefully glossing over the more negative aspects of the regime.
Unfortunately, the historical plan, though passed in parliament and begun, was sabotaged by the Finance Ministry, whose head was very conservative in economic policy, and somewhat sadly, very principled in his stands. The project was unfunded and only some minor canals were built.
What if all this went through? The 1st phase was the Danube-Oder Canal through Bohemia and was scheduled to take between 1902-1912. The next phase would include either the Vistula canal or the Elbe, but ultimately the whole plan was to be completed in 1927. Historically the rail road to Triest was built, but the Lemberg line wasn't.
The industry of Cisleithenia would likely boom as a result, perhaps butterflying away WW1, and unemployment would drop. Up until the plan fell through Koerber's efforts actually managed to get the various nationalities to work together (though he made political concessions to each group), including opening up parliament to the general franchise.
Once the plan fell through Koerber fell and the various groups returned to obstructionism. By 1905 the Hungarian crisis loomed. What would happen if Koerber survived past 1904 and his plan was carried out? I think he may well have pushed for universal suffrage in Hungary and Austria, which potentially would have changed the political game in AH.
http://books.google.com/books?id=EJ...CBcQ6AEwAA#v=onepage&q=koerber canals&f=false