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Consolidation and funding

One of the earliest psychology societies was La Société de Psychologie Physiologique in France, which lasted from 1885 to 1893. The first meeting of the International Congress of Psychology sponsored by the International Union of Psychological Science took place in Paris, in August 1889, amidst the World's Fair celebrating the centennial of the French Revolution. William James was one of three Americans among the 400 attendees. The American Psychological Association (APA) was founded soon after, in 1892. The International Congress continued to be held at different locations in Europe and with wide international participation. The Sixth Congress, held in Geneva in 1909, included presentations in Russian, Chinese, and Japanese, as well as Esperanto. After a hiatus for World War I, the Seventh Congress met in Oxford, with substantially greater participation from the war-victorious Anglo-Americans. In 1929, the Congress took place at Yale University in New Haven, Connecticut, attended by hundreds of members of the APA. Tokyo Imperial University led the way in bringing new psychology to the East. New ideas about psychology diffused from Japan into China.

American psychology gained status upon the U.S.'s entry into World War I. A standing committee headed by Robert Yerkes administered mental tests (" Army Alpha " and " Army Beta ") to almost 1.8 million soldiers. Subsequently, the Rockefeller family, via the Social Science Research Council, began to provide funding for behavioral research. Rockefeller charities funded the National Committee on Mental Hygiene, which disseminated the concept of mental illness and lobbied for applying ideas from psychology to child rearing. Through the Bureau of Social Hygiene and later funding of Alfred Kinsey, Rockefeller foundations helped establish research on sexuality in the U.S. Under the influence of the Carnegie-funded Eugenics Record Office, the Draper-funded Pioneer Fund, and other institutions, the eugenics movement also influenced American psychology. In the 1910s and 1920s, eugenics became a standard topic in psychology classes. In contrast to the US, in the UK psychology was met with antagonism by the scientific and medical establishments, and up until 1939, there were only six psychology chairs in universities in England.

During World War II and the Cold War, the U.S. military and intelligence agencies established themselves as leading funders of psychology by way of the armed forces and in the new Office of Strategic Services intelligence agency. University of Michigan psychologist Dorwin Cartwright reported that university researchers began large-scale propaganda research in 1939–1941. He observed that "the last few months of the war saw a social psychologist become chiefly responsible for determining the week-by-week-propaganda policy for the United States Government." Cartwright also wrote that psychologists had significant roles in managing the domestic economy. The Army rolled out its new General Classification Test to assess the ability of millions of soldiers. The Army also engaged in large-scale psychological research of troop morale and mental health. In the 1950s, the Rockefeller Foundation and Ford Foundation collaborated with the Central Intelligence Agency (CIA) to fund research on psychological warfare. In 1965, public controversy called attention to the Army's Project Camelot, the "Manhattan Project" of social science, an effort which enlisted psychologists and anthropologists to analyze the plans and policies of foreign countries for strategic purposes.

In Germany after World War I, psychology held institutional power through the military, which was subsequently expanded along with the rest of the military during Nazi Germany. Under the direction of Hermann Göring 's cousin Matthias Göring, the Berlin Psychoanalytic Institute was renamed the Göring Institute. Freudian psychoanalysts were expelled and persecuted under the anti-Jewish policies of the Nazi Party, and all psychologists had to distance themselves from Freud and Adler, founders of psychoanalysis who were also Jewish. The Göring Institute was well-financed throughout the war with a mandate to create a "New German Psychotherapy." This psychotherapy aimed to align suitable Germans with the overall goals of the Reich. As described by one physician, "Despite the importance of analysis, spiritual guidance and the active cooperation of the patient represent the best way to overcome individual mental problems and to subordinate them to the requirements of the Volk and the Gemeinschaft." Psychologists were to provide Seelenführung, the leadership of the mind, to integrate people into the new vision of a German community. Harald Schultz-Hencke melded psychology with the Nazi theory of biology and racial origins, criticizing psychoanalysis as a study of the weak and deformed. Johannes Heinrich Schultz, a German psychologist recognized for developing the technique of autogenic training, prominently advocated sterilization and euthanasia of men considered genetically undesirable, and devised techniques for facilitating this process.

After the war, new institutions were created although some psychologists, because of their Nazi affiliation, were discredited. Alexander Mitscherlich founded a prominent applied psychoanalysis journal called Psyche. With funding from the Rockefeller Foundation, Mitscherlich established the first clinical psychosomatic medicine division at Heidelberg University. In 1970, psychology was integrated into the required studies of medical students.

After the Russian Revolution, the Bolsheviks promoted psychology as a way to engineer the "New Man" of socialism. Consequently, university psychology departments trained large numbers of students in psychology. At the completion of training, positions were made available for those students at schools, workplaces, cultural institutions, and in the military. The Russian state emphasized pedology and the study of child development. Lev Vygotsky became prominent in the field of child development. The Bolsheviks also promoted free love and embraced the doctrine of psychoanalysis as an antidote to sexual repression. Although pedology and intelligence testing fell out of favor in 1936, psychology maintained its privileged position as an instrument of the Soviet Union. Stalinist purges took a heavy toll and instilled a climate of fear in the profession, as elsewhere in Soviet society. Following World War II, Jewish psychologists past and present, including Lev Vygotsky, A.R. Luria, and Aron Zalkind, were denounced; Ivan Pavlov (posthumously) and Stalin himself were celebrated as heroes of Soviet psychology. Soviet academics experienced a degree of liberalization during the Khrushchev Thaw. The topics of cybernetics, linguistics, and genetics became acceptable again. The new field of engineering psychology emerged. The field involved the study of the mental aspects of complex jobs (such as pilot and cosmonaut). Interdisciplinary studies became popular and scholars such as Georgy Shchedrovitsky developed systems theory approaches to human behavior.

Twentieth-century Chinese psychology originally modeled itself on U.S. psychology, with translations from American authors like William James, the establishment of university psychology departments and journals, and the establishment of groups including the Chinese Association of Psychological Testing (1930) and the Chinese Psychological Society (1937). Chinese psychologists were encouraged to focus on education and language learning. Chinese psychologists were drawn to the idea that education would enable modernization. John Dewey, who lectured to Chinese audiences between 1919 and 1921, had a significant influence on psychology in China. Chancellor T'sai Yuan-p'ei introduced him at Peking University as a greater thinker than Confucius. Kuo Zing-yang who received a PhD at the University of California, Berkeley, became President of Zhejiang University and popularized behaviorism. After the Chinese Communist Party gained control of the country, the Stalinist Soviet Union became the major influence, with Marxism–Leninism the leading social doctrine and Pavlovian conditioning the approved means of behavior change. Chinese psychologists elaborated on Lenin's model of a "reflective" consciousness, envisioning an "active consciousness" (pinyin: tzu-chueh neng-tung-li) able to transcend material conditions through hard work and ideological struggle. They developed a concept of "recognition" (pinyin: jen-shih) which referred to the interface between individual perceptions and the socially accepted worldview; failure to correspond with party doctrine was "incorrect recognition." Psychology education was centralized under the Chinese Academy of Sciences, supervised by the State Council. In 1951, the academy created a Psychology Research Office, which in 1956 became the Institute of Psychology. Because most leading psychologists were educated in the United States, the first concern of the academy was the re-education of these psychologists in the Soviet doctrines. Child psychology and pedagogy for the purpose of a nationally cohesive education remained a central goal of the discipline.