The purpose of establishing colonies was to serve the interest of the mother nation economically and socially. For a late comer as Germany in the late nineteenth century, colonies also provided the psychological reassurance of their ability in claiming the membership of super powers. It was stated that without establishing colonies, Germany could not be taken as one of the superpowers, and without being considered a superpower, Germany would face a life threatening crisis. While Bismarck was rather conservative in colonization, William II was much more active, which reflected the grave economic, social and psychological changes in Germany since her unification. Germany's colonial institution, which lasted no more than 40 years, provides an excellent example of the three-way interactions involving the imperial policies towards the colonies, the governance of the colonies, and the reaction of the people in the colonies.