Library:Imperialism, the highest stage of capitalism/The place of imperialism in history

We have seen that the economic quintessence of imperialism is monopoly capitalism. This very fact determines its place in history, for monopoly that grew up on the basis of free competition, and precisely out of free competition, is the transition from the capitalist system to a higher social-economic order. We must take special note of the four principal forms of monopoly, or the four principal manifestations of monopoly capitalism, which are characteristic of the epoch under review.

Firstly, monopoly arose out of the concentration of production at a very advanced stage of development. This refers to the monopolist capitalist combines, cartels, syndicates and trusts. We have seen the important part that these play in modern economic life. At the beginning of the twentieth century, monopolies acquired complete supremacy in the advanced countries. And although the first steps towards the formation of the cartels were first taken by countries enjoying the protection of high tariffs (Germany, America), Great Britain, with her system of free trade, was not far behind in revealing the same basic phenomenon, namely, the birth of monopoly out of the concentration of production.

Secondly, monopolies have accelerated the capture of the most important sources of raw materials, especially for the coal and iron industries, which are the basic and most highly cartelised industries in capitalist society. The monopoly of the most important sources of raw materials has enormously increased the power of big capital, and has sharpened the antagonism between cartelised and non-cartelised industry.

Thirdly, monopoly has sprung from the banks. The banks have developed from modest intermediary enterprises into the monopolists of finance capital. Some three or five of the biggest banks in each of the foremost capitalist countries have achieved the “personal union” of industrial and bank capital, and have concentrated in their hands the disposal of thousands upon thousands of millions which form the greater part of the capital and income of entire countries. A financial oligarchy, which throws a close net of relations of dependence over all the economic and political institutions of contemporary bourgeois society without exception – such is the most striking manifestation of this monopoly.

Fourthly, monopoly has grown out of colonial policy. To the numerous “old” motives of colonial policy, finance capital has added the struggle for the sources of raw materials, for the export of capital, for “spheres of influence,” i.e., for spheres for profitable deals, concessions, monopolist profits and so on; in fine, for economic territory in general. When the colonies of the European powers in Africa, for instance, comprised only one-tenth of that territory (as was the case in 1876), colonial policy was able to develop by methods other than those of monopoly – by the “free grabbing” of territories, so to speak. But when nine-tenths of Africa had been seized (approximately by 1900), when the whole world had been divided up, there was inevitably ushered in a period of colonial monopoly and, consequently, a period of particularly intense struggle for the division and the redivision of the world.

The extent to which monopolist capital has intensified all the contradictions of capitalism is generally known. It is sufficient to mention the high cost of living and the oppression of the cartels. This intensification of contradictions constitutes the most powerful driving force of the transitional period of history, which began from the time of the definite victory of world finance capital.

Monopolies, oligarchy, the striving for domination instead of the striving for liberty, the exploitation of an increasing number of small or weak nations by an extremely small group of the richest or most powerful nations – all these have given birth to those distinctive characteristics of imperialism which compel us to define it as parasitic or decaying capitalism. More and more prominently there emerges, as one of the tendencies of imperialism, the creation of the “bondholding” (rentier) state, the usurer state, in which the bourgeoisie lives on the proceeds of capital exports and by “clipping coupons.” It would be a mistake to believe that this tendency to decay precludes the possibility of the rapid growth of capitalism. It does not. In the epoch of imperialism, certain branches of industry, certain strata of the bourgeoisie and certain countries betray, to a more or less degree, one or other of these tendencies. On the whole, capitalism is growing far more rapidly than before. But this growth is not only becoming more and more uneven in general; its unevenness also manifests itself, in particular, in the decay of the countries which are richest in capital (such as England).

In regard to the rapidity of Germany”s economic development, Riesser, the author of the book on the big German banks, states:

“The progress of the preceding period (1848–70), which had not been exactly slow, stood in about the same ratio to the rapidity with which the whole of Germany”s national economy, and with it German banking, progressed during this period (1870–1905) as the mail coach of the Holy Roman Empire of the German nation stood to the speed of the present-day automobile … which in whizzing past, it must be said, often endangers not only innocent pedestrians in its path, but also the occupants of the car.”

In its turn, this finance capital which has grown so rapidly is not unwilling (precisely because it has grown so quickly) to pass on to a more “tranquil” possession of colonies which have to be seized – and not only by peaceful methods – from richer nations. In the United States, economic development in the last decades has been even more rapid than in Germany, and for this very reason the parasitic character of modern American capitalism has stood out with particular prominence. On the other hand, a comparison of, say, the republican American bourgeoisie with the monarchist Japanese or German bourgeoisie shows that the most pronounced political distinctions diminish to an extreme degree in the epoch of imperialism – not because they are unimportant in general, but because in all these cases we are discussing a bourgeoisie which has definite features of parasitism.

The receipt of high monopoly profits by the capitalists in one of the numerous branches of industry, in one of numerous countries, etc., makes it economically possible for them to corrupt certain sections of the working class, and for a time a fairly considerable minority, and win them to the side of the bourgeoisie of a given industry or nation against all the others. The intensification of antagonisms between imperialist nations for the division of the world increases this striving. And so there is created that bond between imperialism and opportunism, which revealed itself first and most clearly in England, owing to the fact that certain features of imperialist development were observable there much earlier than in other countries.

Some writers, L. Martov, for example, try to evade the fact that there is a connection between imperialism and opportunism in the labour movement – which is particularly striking at the present time – by resorting to “official optimistic” arguments (à la Kautsky and Huysmans) like the following: the cause of the opponents of capitalism would be hopeless if it were precisely progressive capitalism that led to the increase of opportunism, or, if it were precisely the best paid workers who were inclined towards opportunism, etc. We must have no illusion regarding “optimism” of this kind. It is optimism in regard to opportunism; it is optimism which serves to conceal opportunism. As a matter of fact the extraordinary rapidity and the particularly revolting character of the development of opportunism is by no means a guarantee that its victory will be durable: the rapid growth of a malignant abscess on a healthy body only causes it to burst more quickly and thus to relieve the body of it. The most dangerous people of all in this respect are those who do not wish to understand that the fight against imperialism is a sham and humbug unless it is inseparably bound up with the fight against opportunism.

From all that has been said in this book on the economic nature of imperialism, it follows that we must define it as capitalism in transition, or, more precisely, as moribund capitalism. It is very instructive in this respect to note that the bourgeois economists, in describing modern capitalism, frequently employ terms like “interlocking,” “absence of isolation,” etc.; “in conformity with their functions and course of development,” banks are “not purely private business enterprises; they are more and more outgrowing the sphere of purely private business regulation.” And this very Riesser, who uttered the words just quoted, declares with all seriousness that the “prophecy” of the Marxists concerning “socialisation” has “not come true”!

What then does this word “interlocking” express? It merely expresses the most striking feature of the process going on before our eyes. It shows that the observer counts the separate trees, but cannot see the wood. It slavishly copies the superficial, the fortuitous, the chaotic. It reveals the observer as one who is overwhelmed by the mass of raw material and is utterly incapable of appreciating its meaning and importance. Ownership of shares and relations between owners of private property “interlock in a haphazard way.” But the underlying factor of this interlocking, its very base, is the changing social relations of production. When a big enterprise assumes gigantic proportions, and, on the basis of exact computation of mass data, organizes according to plan the supply of primary raw materials to the extent of two-thirds, or three-fourths of all that is necessary for tens of millions of people; when the raw materials are transported to the most suitable place of production, sometimes hundreds or thousands of miles away, in a systematic and organized manner; when a single center directs all the successive stages of work right up to the manufacture of numerous varieties of finished articles; when these products are distributed according to a single plan among tens and hundreds of millions of consumers (as in the case of the distribution of oil in America and Germany by the American “oil trust”) – then it becomes evident that we have socialization of production, and not mere “interlocking”; that private economic relations and private property relations constitute a shell which is no longer suitable for its contents, a shell which must inevitably begin to decay if its destruction be delayed by artificial means; a shell which may continue in a state of decay for a fairly long period (particularly if the cure of the opportunist abscess is protracted), but which will inevitably be removed.

The enthusiastic admirer of German imperialism, Schulze-Gaevernitz, exclaims:

“Once the supreme management of the German banks has been entrusted to the hands of a dozen persons, their activity is even today more significant for the public good than that of the majority of the Ministers of State.” (The “interlocking” of bankers, ministers, magnates of industry and rentiers is here conveniently forgotten.) … “If we conceive of the tendencies of development which we have noted as realized to the utmost: the money capital of the nation united in the banks; the banks themselves combined into cartels; the investment capital of the nation cast in the shape of securities, then the brilliant forecast of Saint-Simon will be fulfilled: “The present anarchy of production caused by the fact that economic relations are developing without uniform regulation must make way for organization in production. Production will no longer be shaped by isolated manufacturers, independent of each other and ignorant of man”s economic needs, but by a social institution. A central body of management, being able to survey the large fields of social economy from a more elevated point of view, will regulate it for the benefit of the whole of society, will be able to put the means of production into suitable hands, and above all will take care that there be constant harmony between production and consumption. Institutions already exist which have assumed as part of their task a certain organization of economic labour: the banks.” The fulfillment of the forecasts of Saint-Simon still lies in the future, but we are on the way to its fulfillment – Marxism, different from what Marx imagined, but different only in form.”

A crushing “refutation” of Marx, indeed! It is a retreat from Marx”s precise, scientific analysis to Saint-Simon”s guesswork, the guesswork of a genius, but guesswork all the same.

January–July, 1916.