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On the Theory of Imperialism

Peter F. Bell
Review of Radical Political Economics 1971 3: 74
DOI: 10.1177/048661347100300104

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Peter F. Bell

ON THE THEORY OF IMPERIALISM*

Introduction: The Need for a Theoretical Approach

The term imperialism is most commonly used as a description of a set
of unequal relationships between the advanced capitalist and underdeveloped
countries, and much less frequently to imply a their of international cap-
italist development. Yet the basis for an anti-imperialist ideology (and
strategy) necessitates the development of a fuller understanding of the
theoretical character of imperialism, and this implies the analysis of the
dynamics of advanced capitalism. An inquiry into imperialism will thus
serve a dual purpose: an analysis of the contradictions of capitalism and
the basis of a more effective political counter-ideology.

Used as a description for a series of relationships, or of historical

events, the term imperialism has a very different significance than in the
technical sense in which Lenin used it to apply to a particular stage of
capitalist development. Since many of the subsequent theoretical develop-
ments stem from Marxs and Lenins elaborations, their theories remain the
logical starting point. Firstly, it is necessary, however, to clear away
some of the problems and &dquo;vulgar&dquo; interpretations involved in the study of
imperialism.
The Problem of Studying Imperialism
Coming to an analysis of imperialism from the vantage point of a long
training in bourgeois economics poses two main problems: (1) the blindness
of the conventional paradigm with regard to its own ideological premises
and biases and (2) the a-historical character of bourgeois social theory.
(1) The former problem appears to render the term imperialism as a danger-
ously value-laden term compared to the &dquo;positive&dquo; concepts of voluntary
exchange, comparative advantage, factor-price equalization, etc. As long
as these tools of analysis are assumed value-free (as Myrdal and Robinson,
for example, have effectively shown, they are not) then it remains hard in-
deed to enter a world of exploitation and of dominant-subordinate power
relationships. (2) To quote Sweezy (1968): &dquo;It is a characteristic fea-
ture of non-Marxian though that it can comprehend the transitory character
of all earlier social orders, while this same critical faculty fails when
it is a question of the capitalist system itself.&dquo; (p. 21).

Since I currently preparing a Reader on the main theoretical literature

am
on imperialism, any comments on this note from URPE readers would be much
appreciated. Of great help were copies of the forthcoming papers by Arthur
MacEwan and Thomas Weisskopf referred to in the note, and the bibliography
of the seminar on &dquo;Political and Economic Aspects of Imperialism,&dquo; given at
Harvard, Fall 1970, supplied by Tom Weisskopf.

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 75

A further set of problems derive from the fact that nearly everyone
has aloosely defined concept of the meaning of imperialism, frequently
basing itself on either a set of moral suppositions or upon a form of
historical determinism, or economism. The former encourages the use of the
term as a slogan to condemn unexplained phenonema. For example, the Indo-
China war is seen as &dquo;immoral,&dquo; rather than as the logical consequence of
international capitalist relations. The latter sees history as the prod-
uct of crude economic interests and thus American foreign policy as a re-
flex of the need to acquire and control economic interests overseas and,
furthermore, the survival of capitalism is seen as dependent upon the con-
tinuation of these interests. The historical revisionists (Kolko, Wil-
liams) and prominent critics of American foreign policy (Chomsky) tend to
this interpretation. Much energy has been devoted to showing the exten-
sive economic interests of the U.S. and often simply equating imperialism
with foreign investment.

Theories of Imperialism
The following schema will be used to discuss various theories of
imperialism and some of the writers associated with these theories. The
types listed are, of course, overlapping rather than mutually exclusive.

1. Marxian Theory of Capitalist Development (Marx, Luxemburg).

a. Capitalism as a Universal System
b. Capitalist Development & the Falling Rate of Profit

2. The Theory of Capitalist 1m erialism: imperialism as a specific stage

of capitalist development Lenin, Hilferding).
3. Non-Marxian Theories of Imperialism : imperialism as the product of
specific features of capitalist production and distribution (Hobson,
Schumpeter).
4. Imperialism as a Use of Surplus (Baran, OConner).
5. Neo-Colonialism: extension of Marxist-Leninist theories, particularly
by writers in the underdeveloped world (Nkrumah, Bosch, Mandel).
6. The Theor of the Im erfectl Competitive Firm: the role of multi-
national corporations Hymer, OConnor, MacEwan, Wolff).
7. International Capitalist Development and Underdevelopment: the impact
of international capitalism on the structure and performance of the
underdeveloped world (Frank, Dos Santos, Girvan, Alavi, Arrighi,
Weisskopf).
What follows is the briefest introduction to these theories and
references to some of the more useful theoretical writings.

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76
1. Marxian Theory of Capitalist Development
Possibly the best introduction to the Marxian theory of history as
seen through the development of the forces of production, and the relation-
ship between these forces and the dominant ideology, is in Marx & Engels,
The German Ideology. For a contemporary application of some of these ideas
see Hymer and Resnick (1971) and MacEwan (1971), which are interpretations
of world history, capitalist expansion and the role of ideology.

A. Capitalism as a Universal System

Capitalism &dquo;rationalizes the world and all human action&dquo; as bourgeois

social relations reduce everything to a common denominator. It is univer-
sal also in its geographical impact, drawing the whole world into a single
system of commerce and commodity production: &dquo;The bourgeoise has through
its exploitation of the world-market given a cosmopolitan character to
production and consumption in every country...The cheap prices of its com-
modities are the heavy artillery with which it batters down all Chinese
walls ... It compels all nations on pain of extinction to adopt the bourgeois
mode of production.&dquo; (Communist Manifesto). For an elaboration, see
Avineri (1968).

Furthermore, capitalist development is built in part on primitive

accumulation in colonies and dependent territories. Thus, in a very real
sense the development of capitalism implies an international set of econom-
ic relationships which derives from the historical nature of its mode of
production. The international character of capitalist production is allud-
ed to in Capital (see Vol. I, Ch. 33), but not given systematic treatment;
see also Oliver Cox (1964), and Avineri (1969).

B. Capitalist Development and the Falling Rate of Profit

Marxs analysis of the changing organic composition of capital and

the concentration and centralization of capital (Vol. III, pp. 252-4, 516-
19 ; Vol. 1, pp. 685-9, Kerr edn.) suggests ways in which capitalism will
seek to offset a falling rate of profit; one way is in the form of foreign
trade (Vol. III, pp. 272-80). Luxemburg extended and developed this anal-
ysis to all stages of capitalist development, arguing that realization of
surplus value is dependent upon a strata of buyers outside of capitalist
society. (See her Accumulation of Capital, 1913).

2. The Theory of Capitalist Imperialism

For Lenin imperialism was the &dquo;highest stage&dquo; of capitalism repre-

sented by the emergence of inter-capitalist rivalry, monopoly and the domi-
nance of finance capital. Building upon Hilferdings Das Finanzkapital
(1910) and upon Hobson, Lenins book, Im erialism, became accepted as the
orthodox Marxian explanation.
see 0Conner (1970a).
See Sweezy
19 8 , Ch. 17. For a critique,
For a modern presentation, see Gillman (1958)-

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 77

3. Non-Marxian Theories of Imperialism

Hobsons Imperialism: A Study (1902) argued that maldistribution of
income in Britain and consequent underconsumption necessitated the acqui-
sition of colonies as investment outlets. Schumpeter subjected Marxs
theories to a searching attack in Capitalism, Socialism and Democracy (1942)
and Imperialism and Social Class. These theories are non-Marxian in the
sense that they view imperialism as an aberration of capitalism rather than
as an outcome of its normal functioning, and they eschew all recognition of
historical materialism as an explanation of history.
4. Imperialism as a Use of Surplus
(1957) the theoretical focus has shifted from the falling
Since Baran
rate of profit to the notion that a contradiction of advanced capitalist
development is its inability to absorb economic surplus. Baran & Sweezy
(1966) show that this surplus, or element of socially wasteful production
in national income, has tended to grow historically and that domestic out-
lets are becoming increasingly less satisfactory methods of absorption,
tending to greater reliance upon foreign outlets and an increasingly mili-
tarized economy.

5. Neo-Colonialism

As used by the anti-colonial leaders after the Second World War, this
term has come to mean the continuing dependence of the ex-colonies upon the
metropolitan countries which vitiates any meaningful political or economic
development. OConnor (1970a) cites the declaration of the 1961 Third All-
Africa Peoples Conference as a manifesto of this position, which accepts
&dquo;the original Leninst identity between monopoly capitalism and imperialism.&dquo;
The writings of Nkrumah, Bosch, Sukarno and others have expressed this
position.
6. The Theory of the Imperfectly Competitive Firm

The expansion of capital overseas is seen as a logical outcome of the

search for profits by both competitive and monopolistic firms. MacEwan has
argued that expansionism becomes more intense under the latter as multi-
national corporations take the leading role in the internationalization of
capital. (MacEwan, 1971). Hymer (1971) shows how the workings of the
multinationals lead to a new international division of labor between the
rich and poor countries, forming the basis for the modern forms of uneven
development. OConnor (1970b) and Girvan (1970) explore further aspects
of the impact of this corporate form on underdevelopment. Wolff (1970) ex-
plores the nature of corporate expansion as the extension of markets, the
obtaining of raw materials and theexploitation of new sources of labor.
7. International Capitalist Development and Underdevelopment
Most recent work imperialism has been concerned with examining the
on
impact of capitalist development on the development and maintenance of

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78

underdevelopment. Foremost in these esplorations was Frank (1966, 1970)

who explored the development of dominant-subordinate relationships in Latin
America. Dos Santos (1970), Alavi (1964) and others have examined the de-
tailed functioning of the penetration of capitalistic economic, social and
political relations in the underdeveloped world. The bibliography and
selections in Rhodes (1970) offer an extended introduction to this litera-
ture. For an overview of the ways in which subordination of the poor to
the rich countries is effected, their impact upon growing inequalities due
to inadequate growth, and the threat of socialist challenge to internation-
alI capitalist hegemony, see Weisskopf (1971). The implications of these
controls in terms of American foreign policy are examined in Magdoff (1969),
MacEwan (1971). Particularly important for an understanding of some con-
temporary problems is the link between these forces and the dominant ide-
ology which they give rise to. The immediate basis for specific actions
(e.g., Vietnam) may be ideological and not economic and as long as this is
not altered the ideology can take on a force of its own: &dquo;Actions can,
through the dictates of ideology, be undertaken or continued when they in
fact run counter to the maintenance of the system.&dquo; (MacEwan 1971).
Hunter College (CUNY), Department of Economics; and Yale University, Eco-
nomic Growth Center.

References Cited

Register 1964.
Alavi, H., "Imperialism Old and New," Socialist ,
Avineri, S., The Social and Political Thought of Karl Marx (Cambridge,
1969).
Avineri, S., Karl Marx on Colonialism and Modernization (Doubleday, 1968).
Baran, P., The Political Economy of Growth (Monthly Review, 1957).
Baran, P., & Sweezy, P., Monopoly Capital (Monthly Review, 1966).
Cox, O., Capitalism as a System (Monthly Review, 1966).
Dos Santos, "The Structure of Dependence," American Economic Review, Paper
& Proceedings (May, 1970).
Frank, A.G., Capitalism and Underdevelopment in Latin America (Monthly Re-
view, 1966).
Frank, A.G., Latin America: Underdevelopment or Revolution (Monthly Review,
1970).
Gillman, J., The Falling Rate of Profit (Cameron, 1958).
Girvan, N., "The Multinational Corporation and the Structure of Dependence
of Mineral-Export Economies," Discussion Paper, Economic Growth Cen-
ter, Yale University, 1970.
Hymer, S., & Resnick, S., "International Trade and Uneven Development," in
Kindleberger Festchrift (M.I.T. Press forthcoming, 1971).
Hymer, S., "The Multinational Corporation and the Law of Uneven Develop-
ment," in J. Bhagwati (ed.), Economics and World Order (MacMillan,
forthcoming 1971).
MacEwan, A., "Capitalist Expansion, Ideology and Intervention," in Edwards,
Reich, and Weisskopf, The Capitalist System (Prentice-Hall, forth-
coming 1971).
Magdoff, H., The Age of Imperialism (Monthly Review, 1969).

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 79

OConnor, J., "The Economic Meaning of Imperialism," in Rhodes (1970).

OConnor, J., "International Corporations and Economic Underdevelopment,"
Science and Society (1970).
Rhodes, R. (ed.), Imperialism and Underdevelopment (Monthly Review, 1970).
Sweezy, P., The Theory of Capitalist Development (Monthly Review, 1968).
Weisskopf, T., "Capitalism, Underdevelopment and the Future of the Poor
Countries," in J. Bhagwati, Economics and World Order (MacMillan,
forthcoming 1971).
Wolff, R., "Modern Imperialism : A View from the Center," American Economic
, (May, 1970).
Review, Papers and Proceedings

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