Imperialism

Question 1

Linked to Marx

Answer 1

• Builds on Marx - internationalises Marx’s theory of Capitalism
• Adopted Marx exploitation theory of capitalism - adding inequality of development of different parts of the world
• More practical than Marx
• Sees objective position of all classes in all countries
• Sympathetic of working class

Question 2

Description of WW1

Answer 2

• War a struggle among mature capitalist powers over possessions of external domains
• Struggle forced upon them by objective laws of Capitalist Development

Question 3

About Imperialism

Answer 3

• Highest stage/special stage of capitalism
• With attention placed on rise of concentrated capital and growth of monopolies
• Into world economy - dominant countries exploit less developed periphery
• 5 stages of Imperialism

Question 4

Stage 1 of 5: Concentration of Capital

Answer 4

• Fewer but larger companies (in developed countries)
• Reinvest and expand business
  1. Employ more people - wages rise
  2. Invest in Labour saving machines - less workers needed
  - More workers available - bargaining power decline
  3. Machines no surplus value - reduce profits
  - Value = how long took to make + value produce
  4. Profits squeezed, business bankrupt
  5. Machines from bankrupt businesses - big businesses profitable
• Concentration of capital (+production) in ever-growing enterprises - large enterprises more productive
• Free trade in Britain; concentration - monopoly
• Imperialism as the age of monopolies
  - Capitalist in new social order
  - Compulsory submission to monopolist associations

Question 5

Stage 2 of 5: Finance Capitalism

Answer 5

• Growth of banking sector
• Credit system - buying shares via banking
• Previously only take loans and store money
• Finance capitalism concentrated into a few hands (virtual monopoly)
• Ever-increasing profits from floating companies
• Floating companies on stock market for big profits
• Shares create financial oligarchy
• Banker = industrial capitalist
• Principle company reigning subsidiary companies
• Controlling over other subsidiaries - monopoly/ cartel
• Own 40% company to direct affairs; small scattered shareholders
• Banks issuing bonds - France 4 banks have monopoly
• Monopoly controls millions - penetrates every sphere public life
• Ownership of capital (shareholders) separate from applicators of capital separate from applicators of capital

Question 6

Stage 3 of 5: Export Capitalism

Answer 6

• Increasing profits exporting capital abroad - backward countries
• High profits, low land cost, low wages, cheap raw materials
• Not keen on welfare/ investment in state bc not profitable
• If did, would not be capitalism
• Exporting capital = momentum for colony conquest
• Easier to monopolise colonial markets
• Eliminate competition/ ensure supplies - target developing world
• Scramble for Africa seen as state and private actors combined
• Common desire to colonise
• Division of international world into classes - deep division between rich and poor

Question 7

Stage 4 of 5: Division of the world among Capitalist Associations

Answer 7

• Capitalist associations grow (in connection to political alliances between states) - territorial divisions
• Spheres of influence - created by colonialism
• Countries force countries to partake - structural imperative
• Home market BOUND to international market
• Big monopolist associations spread - gravitate to international agreement (supermonopoly)
• Shortage of raw materials = competition in hunt through world - struggle for colonies
• Non-economic superstructure - grows on basis of finance capital, politics and ideologies - stimulate colonial conquest

Question 8

Stage 5 of 5: Division of the world among great powers

Answer 8

• Capitalism over-expanding - fight among powers for restructuring (Africa seized and divided)
• Struggle for division and re-division through conflict (WW1)
• End of capitalism when conflict grows to Armageddon with seeds of new hope

Question 9

Imperialism: Special State of Capitalism

Answer 9

• Imperialism development of fundamental characteristics of capitalism
• Free competition basic feature of capitalism BUT monopoly key feature of imperialism
• Monopolies grown out of Capitalism - exist above and alongside it
• Imperialism = monopoly stage of capitalism

Question 10

Leninist view of recent conflicts

Answer 10

• Powerful states using military and economic force to cling to hegemonic positions
• Actions of USA, Soviet Union, China
• Capitalism only overthrown violently because capitalists wouldn’t give up on dominant position peacefully

Question 11

Problems with Lenin’s Theory - General

Answer 11

• Most of followers high skilled workers, not peasants
• Lacks empirical evidence - utopian ideas show little evidence in real world
• Theory of Monopolistic Ideology inaccuracies - often viewed as negative aspect of economies - lacks competition

Question 12

Problems with Lenin’s Theory - Colonies/ Export of Wealth

Answer 12

• Eugene Varga - post-war France + Britain capital primarily invested at home - not in colonies
• Did not earn higher profits investing abroad bc otherwise would have post-WW1 to recuperate losses
• Theory doesn’t account for costs of maintaining empires -focus on small minority profiting overall
• Switzerland/ Sweden Capitalist but no colonies (not final stage)
• Theory doesn’t explain why US help Europe post-WWI instead of exploiting