T H E GEOGRAPHY OF CAPITALIST ACCUMULATION:
A R E C O N S T R U C T I O N OF T H E MARXIAN T H E O R Y *
David Harvey
Johns Hopkins University
The s p a t i a l d i m e n s i o n t o M a r x ' s t h e o r y o f
a c c u m u l a t i o n u n d e r t h e c a p i t a l i s t mode o f p r o -
d u c t i o n has f o r t o o l o n g been i g n o r e d . This
i s , i n part, Marx's f a u l t since h i s w r i t i n g s
on t h e m a t t e r a r e f r a g m e n t a r y and o f t e n o n l y
s k e t c h i l y developed. But c a r e f u l s c r u t i n y o f
h i s works r e v e a l s t h a t Marx recognized t h a t
c a p i t a l a c c u m u l a t i o n t o o k p l a c e i n a geograph-
i c a l c o n t e x t and t h a t i t i n t u r n c r e a t e d
s p e c i f i c kinds of geographical s t r u c t u r e s .
Marx f u r t h e r d e v e l o p s a n o v e l a p p r o a c h t o
l o c a t i o n t h e o r y ( i n w h i c h dynamics a r e a t t h e
c e n t e r o f t h i n g s ) and shows t h a t i t i s p o s s i -
b l e t o connect, t h e o r e t i c a l l y , t h e general
p r o c e s s e s o f economic g r o w t h w i t h an e x p l i c i t
u n d e r s t a n d i n g o f an e m e r g e n t s t r u c t u r e o f
spatial relationships. And i t f u r t h e r t r a n s -
pires t h a t t h i s locational analysis provides,
i n a l b e i t a l i m i t e d form, a c r u c i a l l i n k
between M a r x ' s t h e o r y o f a c c u m u l a t i o n and t h e
Marxian theory o f imperialism -- a l i n k which
many have s o u g h t b u t none have so f a r f o u n d
w i t h any c e r t a i n t y , i n p a r t , I s h a l l a r g u e ,
because t h e m e d i a t i n g f a c t o r o f M a r x ' s l o c a -
t i o n t h e o r y has been o v e r l o o k e d .
I n t h i s paper I s h a l l t r y t o demonstrate
how t h e t h e o r y o f a c c u m u l a t i o n r e l a t e s t o an
u n d e r s t a n d i n g o f s p a t i a l s t r u c t u r e and how t h e
p a r t i c u l a r form o f l o c a t i o n a l a n a l y s i s which
Marx c r e a t e s p r o v i d e s t h e m i s s i n g l i n k between
t h e t h e o r y o f a c c u m u l a t i o n and t h e t h e o r y o f
imperialism.
I. THE THEORY OF ACCUMULATION
Marx's t h e o r y o f growth under c a p i t a l i s m
places accumulation o f c a p i t a l a t the center
o f t h i n g s . Accumulation i s t h e engine which
powers g r o w t h u n d e r t h e c a p i t a l i s t mode o f
production. The c a p i t a l i s t s y s t e m i s t h e r e -
f o r e h i g h l y dynamic and i n e v i t a b l y e x p a n s i o n -
ary; i t forms a permanently r e v o l u t i o n a r y
f o r c e w h i c h c o n t i n u o u s l y and c o n s t a n t l y r e -
shapes t h e w o r l d we l i v e i n . A stationary
s t a t e o f s i m p l e r e p r o d u c t i o n i s , f o r Marx,
l o g i c a l l y i n c o m p a t i b l e w i t h t h e perpetu:tion
o f t h e c a p i t a l i s t mode o f p r o d u c t i o n . The
h i s t o r i c a l m i s s i o n o f thell b o u r g e o i s i e , " i s
expressed i n t h e formula accumulation f o r
accumu1atio;'s sake, p r o d u c t j o n f o r p r o d u c -
t i o n ' s s a k e (Ca i t a l , 1, p. 5 9 5 ) . Yet t h i s
h i s t o r i c a l m i s h e s n o t stem f r o m t h e i n -
herent greed o f t h e c a p i t a l i s t ; i t a r i s e s ,
r a t h e r , o u t o f f o r c e s e n t i r e l y independent o f
the c a p i t a l i s t ' s individual w i l l :
Only as p e r s o n i f i e d c a p i t a l i s t h e
c a p i t a l i s t r e s p e c t a b l e . A s s u c h , he
shares with the miser the passion f o r
* I n each o f t h e s e r e s p e c t s t h e p r o g r e s s o f
This paper i s i n p a r t excerpted from Chapter
5 o f a f o r t h c o m i n g book on u r b a n i z a t i o n u n d e r
capitalism.
9
w e a l t h a s w e a l t h . But t h a t which i n t h e
m i s e r i s mere i d i o s y n c r a s y , i s , i n t h e
c a p i t a l i s t , t h e e f f e c t of t h e s o c i a l
mechanism, of which he i s b u t one of t h e
w h e e l s . Moreover, t h e d e v e l o p m e n t of
C a p i t a l i s t p r o d u c t i o n makes i t c o n s t a n t l y
n e c e s s a r y t o k e e p i n c r e a s i n g t h e amount
of c a p i t a l l a i d o u t i n a g i v e n i n d u s t r i a l
u n d e r t a k i n g , and c o m p e t i t i o n makes t h e
immanent laws of c a p i t a l i s t p r o d u c t i o n t o
be f e l t by each i n d i v i d u a l c a p i t a l i s t , a s
e x t e r n a l c o e r c i v e l a w s . I t c o m p e l s him
t o keep c o n s t a n t l y extending h i s c a p i t a l ,
i n o r d e r t o p r e s e r v e i t , b u t e x t e n d i t he
c a n n o t , e x c e p t b y means of p r o g r e s s i v e
accumulation Iw., p . 5921.
Economic g r o w t h u n d e r c a p i t a l i s m i s , as
Marx u s u a l l y dubs i t , a p r o c e s s o f i n t e r n a l
c o n t r a d i c t i o n s which f r e q u e n t l y e r u p t as
crises. Harmonious o r b a l a n c e d g r o w t h u n d e r
c a p i t a l i s m i s , i n M a r x ' s view, p u r e l y a c c i -
d e n t a l because o f t h e spontaneous and c h a o t i c
n a t u r e o f commodity p r o d u c t i o n u n d e r c o m p e t i -
t i v e C a p i t a l i s m ( C a p i t a l , 2, p. 4 9 5 ) . Marx's
a n a l y s e s o f t h i s s y s t e m o f commodity p r o d u c -
t i o n l e d h i m t o t h e v i e w t h a t t h e r e were i n -
n u m e r a b l e p o s s i b i l i t i e s f o r c r i s e s t o o c c u r as
w e l l as c e r t a i n t e n d e n c i e s i n h e r e n t w i t h i n
c a p i t a l i s m w h i c h were bound t o p r o d u c e s e r i o u s
s t r e s s e s w i t h i n t h e a c c u m u l a t i o n p r o c e s s . We
c a n u n d e r s t a n d t h e s e s t r e s s e s more e a s i l y i f
we r e c o g n i z e t h a t t h e p r o g r e s s o f a c c u m u l a t i o n
depends upon and p r e s u p p o s e s :
( 1 ) The e x i s t e n c e o f a s u r p l u s o f l a b o r
-- an i n d u s t r i a l r e s e r v e army w h i c h c a n f e e d
t h e e x p a n s i o n o f p r o d u c t i o n . Nechanisms must
t h e r e f o r e e x i s t t o increase the supply o f
l a b o r power by, f o r example, s t i m u l a t i n g popu-
l a t i o n gtowth, generatin! m i g r a t i o n streams,
drawing l a t e n t elements -- l a b o r power em-
p l o y e d i n n o n - c a p i t a l i s t s i t u a t i o n s , women and
c h i l d r e n , and t h e l i k e -- i n t o t h e workforce,
o r b y c r e a t i n g unemployment b y t h e a p p l i c a t i o n
o f labor-saving innovations.
( 2 ) The e x i s t e n c e i n t h e m a r k e t p l a c e
o f requisite quantities of, o r opportunities
t o o b t a i n , means o f p r o d u c t i o n -- machines,
r a w m a t e r i a l s , p h y s i c a l i n f r a s t r u c t u r e s , and
the l i k e -- t o p e r m i t t h e expansion o f produc-
t i o n as c a p i t a l i s r e i n v e s t e d .
( 3 ) The e x i s t e n c e o f a m a r k e t t o a b s o r b
t h e i n c r e a s i n g q u a n t i t i e s o f commodities p r o -
duced. I f uses c a n n o t be f o u n d f o r goods o r
i f an e f f e c t i v e demand (need backed by a b i l i t y
t o p a y ) does n o t e x i s t , t h e n t h e c o n d l t i o n s
f o r c a p i t a l i s t accumulation disappear.
a c c u m u l a t i o n may e n c o u n t e r a s e r i o u s b a r r l e r
w h i c h , once reached, w i l l l i k e l y p r e c i p i t a t e
a c r i s i s o f some s o r t . Since, i n w e l l -
d e v e l o p e d c a p i t a l i s t economies, t h e s u p p l y o f
l a b o r power, t h e s u p p l y o f means o f p r o d u c -
t i o n and o f n e c e s s a r y i n f r a s t r u c t u r e s , a n d t h e
s t r u c t u r e o f demand a r e a l l " p r o d u c e d " u n d e r
t h e c a p i t a l i s t mode o f p r o d u c t i o n , Marx c o n -
cludes t h a t c a p i t a l i s m tends a c t i v e l y t o pro-
duce some o f t h e b a r r i e r s t o i t s own d e v e l o p -
ment. T h i s means t h a t c r i s e s a r e endemic t o
t h e c a p i t a l i s t accumulation process.
C r i s e s c a n be m a n i f e s t i n a v a r i e t y o f
ways, however, d e p e n d i n g on t h e c o n d i t i o n s
o f c i r c u l a t i o n and p r o d u c t i o n a t t h e t i m e .
We can see more c l e a r l y how t h i s c a n be s o b y
e x a m i n i n g , b r i e f l y , how Marx l o o k s a t p r o d u c -
t i o n , d i s t r i b u t i o n , consumpt!on and r e i n v e s t -
ment as s e p a r a t e phases ( o r moments") w i t h i n
the t o t a l i t y o f the c a p i t a l i s t production
p r o c e s s . He a r g u e s , f o r example, t h a t :
n o t o n l y i s p r o d u c t i o n immediately con-
sumption and consumption immediately
production, not only i s production a
means f o r Consumption and consumption
t h e aim of p r o d u o t i o n ... b u t a l s o , each
of t h e m . . . c r e a t e s t h e o t h e r i n c o m p t e t -
i n g i t s e l f and c r e a t e s i t s e L f a s t h e
other (Grundrisse, p . 9 3 ) .
I f p r o d u c t i o n and c o n s u m p t i o n a r e n e c e s s a r i l y
d i a l e c t i c a l l y i n t e g r a t e d w i t h each o t h e r w i t h -
i n p r o d u c t i o n as a t o t a l i t y , t h e n i t f o l l o w s
t h a t t h e c r i s e s which a r i s e f r o m s t r u c t u r a l
b a r r i e r s t o accumulation can be m a n i f e s t i n
each and any o f t h e phases i n t h e c i r c u l a t i o n
and p r o d u c t i o n o f v a l u e .
C o n s i d e r , f o r example, a t y p i c a l r e a l i z a -
t i o n c r i s i s w h i c h a r i s e s because a c c u m u l a t i o n
f o r a c c u m u l a t i o n ' s sake means, i n e v i t a b l y , t h e
" t e n d e n c v t o Droduce w i t h o u t r e a a r d t o t h e
l i m i t s o? t h e ' m a r k e t " ( T h e o r i e s - o f S u r p l u s
Value, 2, p. 5 2 2 ) . C a p j t a l i s t s c o n s t a n t l y
t e n d t o expand t h e mass and t o t a l v a l u e o f
c o m m o d i t i e s on t h e m a r k e t a t t h e same t i m e as
t h e y t r y t o maximize t h e i r p r o f i t s by keeping
wages down w h i c h r e s t r i c t s t h e p u r c h a s i n g power
o f t h e masses ( I b i d . . p. 492; C t p i t ; l , 3,
p. 484). T h e r e r a c o n t r a d i c t on e r e w h i c h
p e r i o d i c a l l y produces a r e a l i z a t i o n c r i s i s --
a mass o f c o m m o d i t i e s on t h e m a r k e t w i t h n o
purchasers i n s i g h t . This overproduction i s
r e l a t i v e o n l y , o f c o u r s e , and i t has n o t h i n g
t o do w i t h a b s o l u t e human needs -- "it i s only
c o n c e r n e d w i t h demand b a c k e d b y a b i l i t y t o
p a y " ( T h e o r i e s o f S u r p l u s V a l u e , 2, p. 5 0 6 ) .
Absolute overproduction i n r e l a t i o n t o a l l
human wants and needs i s . i n M a r x ' s v i e w ,
i m p o s s i b l e under c a p i t a l i s m .
B u t such r e l a t i v e o v e r p r o d u c t i o n may
a p p e a r a l s o as u n d e r c o n s u m p t i o n o r as an o v e r -
production o f capital (a capital surplus).
Marx r e g a r d s t h e s e f o r m s as m a n i f e s t a t i o n s o f
t h e same b a s i c o v e r a c c u m u l a t i o n p r o b l e m ( I b i d . ,
pp. 497-9). The f a c t t h a t t h e r e i s a s u r f e i t
o f c a p i t a l r e l a t i v e t o o p p o r t u n i t i e s t o employ
t h a t c a p i t a l means t h a t t h e r e has been an
o v e r p r o d u c t i o n o f c a p i t a l ( i n t h e f o r m o f an
o v e r p r o d u c t i o n o f commodities) a t a preceeding
s t a g e and t h a t c a p i t a l i s t s a r e o v e r - i n v e s t i n g
and u n d e r c o n s u m i n g t h e s u r p l u s a t t h e p r e s e n t
stage. I n a l l o f t h e s e cases, o v e r p r o d u c t i o n :
i s s p e c i f i c a L t y c o n d i t i o n e d by t h e
general law of t h e p r o d u c t i o n of c a p i -
tat.: t o produce t o t h e l i m i t s e t by
the productive forces, that i s t o say,
t o e x p l o i t t h e maximum amount of labour
w i f h a g i v e n amount of c a p i t a l , w i t h o u t
any c o n s i d e r a t i o n f o r t h e actuaL l i m i t s
of t h e market o r t h e needs backed by
a b i l f t y t o pay (w., p p . 534-51.
Th s same g e n e r a l l a w p r o d u c e s , p e r i o d i c a l l y ,
a:
10
p l e t h o r a of c a p i t a l [ w h i c h ] a r i s e s f r o m
t h e same c a u s e s a s t h o s e which c a l l
f o r t h a r e l a t i v e o v e r p o p u l a t i o n , and
is, t h e r e f o r e , a phenomenon supplement-
i n g t h e l a t t e r , although t h e y s t a n d a t
o p p o s i t e p o l e s -- unemployed c a p i t a l a t
one p o l e , and unemployed worker popula-
t i o n a t the other (Capital, 3, p . 2511.
The v a r i o u s m a n i f e s t a t i o n s o f c r i s i s i n
t h e c a p i t a l i s t system -- c h r o n i c unemployment
and underemployment, c a p i t a l s u r p l u s e s and
l a c k o f investment o p p o r t u n i t i e s , f a l l i n g r a t e s
o f p r o f i t , l a c k o f e f f e c t i v e demand i n t h e
m a r k e t , and s o on, c a n t h e r e f o r e be t r a c e d
back t o t h e b a s i c tendency t o overaccumulate.
S i n c e t h e r e a r e no o t h e r e q u i l i b r i a t i n g f o r c e s
a t work w i t h i n t h e c o m p e t i t i v e a n a r c h y o f t h e
c a p i t a l i s t economic system, c r i s e s have a n
important function -- t h e y e n f o r c e some k i n d
o f o r d e r and r a t i o n a l i t y o n t o c a p i t a l i s t
economic d e v e l o p m e n t . T h i s i s n o t t o s a y t h a t
c r i s e s a r e themselves o r d e r l y o r l o g i c a l --
they merely create the c o n d i t i o n s which f o r c e
some k i n d o f a r b i t r a r y r a t i o n a l i z a t i o n o f t h e
c a p i t a l i s t p r o d u c t i o n system. T h i s r a t i o n a l -
i z a t i o n e x t r a c t s a s o c i a l c o s t and has i t s
t r a g i c human consequences i n t h e f o r m o f b a n k -
ruptcies, f i n a n c i a l collapse, f o r c e d devalua-
t i o n o f c a p i t a l assets and personal savings,
i n f l a t i o n , i n c r e a s i n g c o n c e n t r a t i o n o f economic
and p o l i t i c a l power i n a few hands, f a l l i n g
r e a l wages, and unemployment. Forced p e r i o d i c
c o r r e c t i o n s t o t h e c o u r s e o f c a p i t a l accumula-
t i o n c a n a l l t o o e a s i l y g e t o u t o f hand, how-
e v e r , and spawn c l a s s s t r u g g l e s , r e v o l u t i o n a r y
movements and t h e chaos w h i c h t y p i c a l l y p r o -
v i d e s t h e b r e e d i n g g r o u n d f o r f a s c i s m . The
s o c i a l r e a c t i o n t o c r i s e s c a n a f f e c t t h e way
i n which t h e c r i s i s i s r e s o l v e d so t h a t t h e r e
i s no n e c e s s a r y u n i q u e outcome t o t h i s f o r c e d
r a t i o n a l i z a t i o n p r o c e s s . A l l t h a t has t o
happen i s t h a t a p p r o p r i a t e c o n d i t i o n s f o r r e -
newed a c c u m u l a t i o n h a v e t o be c r e a t e d i f t h e
c a p i t a l i s t system i s t o be s u s t a i n e d .
P e r i o d i c c r i s e s must i n general have t h e
e f f e c t o f expanding t h e p r o d u c t i v e c a p a c i t y
and r e n e w i n g t h e c o n d i t i o n s o f f u r t h e r accumu-
l a t i o n , We can c o n c e i v e o f each c r i s i s as
s h i f t i n g t h e a c c u m u l a t i o ; p r o c e s s flnto a new
and h i g h e r p l a n e . T h i s new p l a n e w i l l l i k e l y
e x h i b i t c e r t a i n combined c h a r a c t e r i s t i c s o f t h e
following sorts:
( 1 ) The p r o d u c t i v i t y o f l a b o r w i l l b e
much enhanced b y t h e employment o f more s o p h i s -
t i c a t e d m a c h i n e r y and e q u i p m e n t w h i l e o l d e r
f i x e d c a p i t a l equipment w i l l , d u r i n g t h e course
o f t h e c r i s i s , have become much c h e a p e r t h r o u g h
a forced devaluation.
( 2 ) The c o s t o f l a b o r w i l l b e much r e -
duced because o f t h e w i d e s p r e a d unemployment
d u r i n g t h e c r i s i s and, c o n s e q u e n t l y , a l a r g e r
s u r p l u s can be gained f o r f u r t h e r accumulation.
( 3 ) The s u r p l u s c a p i t a l w h i c h l a c k e d
o p p o r t u n i t i e s f o r investment i n t h e c r i s i s w i l l
be drawn i n t o new and h i g h p r o f i t l i n e s o f p r o -
duction.
( 4 ) An e x p a n d i n g e f f e c t i v e demand f o r
product -- a t f i r s t i n t h e c a p i t a l goods i n -
d u s t r y b u t subsequently i n f i n a l consumption
-- w i l l e a s i l y c l e a r t h e m a r k e t o f a l l goods
produced.
I t i s , p e r h a p s , u s e f u l t o p i c k up on t h e
l a s t e l e m e n t and c o n s i d e r how a new p l a n e o f
e f f e c t i v e demand, w h i c h c a n i n c r e a s e t h e capa-
c i t y t o a b s o r b p r o d u c t s , c a n be c o n s t r u c t e d .
A n a l y s i s suggests t h a t i t can be c o n s t r u c t e d
o u t o f a complex m i x o f f o u r o v e r l a p p i n g e l e -
ments:
 ( 1 ) The p e n e t r a t i o n o f c a p i t a l i n t o new
spheres o f a c t i v i t y by ( i ) o r g a n i z l n g p r e -
e x i s t i n g forms o f a c t i v i t y a l o n g c a p i t a l i s t
l i n e s (e.g., t h e t r a n s f o r m a t i o n o f peasant
s u b s i s t e n c e a g r i c u l t u r e i n t o c o r p o r a t e farm-
i n g ) , o r b y (ii) expanding t h e p o i n t s o f i n -
terchange w i t h i n t h e system o f p r o d u c t i o n and
d i v e r s i f y i n g t h e d i v i s i o n o f l a b o r (new
s p e c i a l i s t b u s i n e s s e s emerge t o t a k e c a r e o f
some a s p e c t o f p r o d u c t i o n w h i c h was once a l l
c a r r i e d on w i t h i n t h e same f a c t o r y o r f i r m ) .
( 2 ) C r e a t i n g new s o c i a l w a n t s and needs,
d e v e l o p i n g e n t i r e l y new p r o d u c t - l i n e s ( a u t o -
m o b i l e s and e l e c t r o n i c goods a r e e x c e l l e n t
t w e n t i e t h c e n t u r y examples) and organizi:g
c o n s u m p t i o n s o t h a t i t becomes " r a t i o n a l w i t h
r e s p e c t t o t h e accumulation process ( w o r k i n g
c l a s s demands f o r good h o u s i n g may, f o r e x -
ample, b e c o o p t e d i n t o a p u b l i c h o u s i n g p r o -
gram w h i c h s e r v e s t o s t a b i l i z e t h e economy and
expand t h e demand f o r c o n s t r u c t i o n p r o d u c t s o f
a certain sort).
( 3 ) F a c i l i t a t i n g and e n c o u r a g i n g t h e e x -
pansion o f p o p u l a t i o n a t a r a t e c o n s i s t e n t
w i t h long-run accumulation ( t h i s obviously i s
n o t a s h o r t - r u n s o l u t i o n b u t t h e r e appears
t o be a s t r o n g j u s t i f i c a t i o n f o r M a r x ' s comment
( T h e o r i e s o f S u r p l u s V a l u e , 2, p. 47; c f .
G r u n d r i s s e , p. 764 and p. 771) t h a t "an i n c r e a s -
i n g p o p u l a t i o n a p p e a r s as t h e b a s i s o f a c c u m u l a -
t i o n as a c o n t i n u o u s p r o c e s s " f r o m t h e s t a n d -
p o i n t o f e x p a n d i n g t h e l a b o r s u p p l y and t h e
market f o r products).
( 4 ) E x p a n d i n g g e o g r a p h i c a l l y i n t o new
regions, increasing foreign trade. exporting
c a p i t a l and i n general expanding towards t h e
c r e a t i o n o f w h a t Marx c a l l e d " t h e w o r l d mar-
ket."
I n each o f t h e s e r e s p e c t s , o r b y some
c o m b i n a t i o n o f them, c a p i t a l i s m c a n c r e a t e
f r e s h room f o r a c c u m u l a t i o n . The f i r s t t h r e e
i t e m s c a n b e v i e w e d r e a l l y as a m a t t e r o f
i n t e n s i f i c a t i o n o f s o c i a l a c t i v i t y , o f mar-
kets, o f people w i t h i n a p a r t i c u l a r s p a t i a l
structure. The l a s t i t e m b r i n g s us. o f
course, t o t h e q u e s t i o n o f s p a t i a l o r g a n i z a -
t i o n and g e o g r a p h i c a l e x p a n s i o n as a n e c e s s a r y
p r o d u c t o f t h e accumulation process. I n what
f o l l o w s we s h a l l c o n s i d e r t h i s l a s t a s p e c t i n
i s o l a t i o n from the others. But i t i s c r u c i a l
t o realize t h a t i n practice various trade-offs
e x i s t b e t w e e n i n t e n s i f i c a t i o n and s p a t i a l e x -
tension -- a r a p i d r a t e o f population growth
and t h e e a s y c r e a t i o n o f new s o c i a l w a n t s and
needs w i t h i n a c o u n t r y may r e n d e r c a p i t a l e x -
p o r t and an e x p a n s i o n o f f o r e i g n t r a d e unneces-
s a r y f o r t h e e x p a n s i o n o f a c c u m u l a t i o n . The
more d i f f i c u l t , i n t e n s i f i c a t i o n becomes, t h e
more i m p o r t a n t g e o g r a p h i c a l e x t e n s i o n i s f o r
s u s t a i n i n g c a p i t a l accumulation. Bearing t h i s
i n mind, we w i l l p r o c e e d t o examine t h e way i n
which t h e t h e o r y o f accumulation r e l a t e s t o
the production o f spatial structures.
II. TRANSPORTATION RELATIONS, SPAITAL INTECRA-
TION A N D THE "ANNIHILATION OF SPACE BY
TIME"
We w i l l s t a r t f r o m t h e p r o p o s i t i o n t h a t
the " c i r c u l a t i o n o f c a p i t a l realiges value
w h i l e l i v i n g labour creates value (Grundrisse,
p. 543). C i r c u l a t i o n has t w o a s p e c t s ; t h e
a c t u a l p h y s i c a l movement o f c o m m o d i t i e s f r o m
p o i n t o f p r o d u c t i o n t o p o i n t o f consumption
and t h e a c t u a l o r i m p l i c i t c o s t s t h a t a t t a c h
t o t h e t i m e t a k e n u p and t o t h e s o c i a l m e d i a -
t i o n s ( t h e chain o f wholesalers, r e t a i l e r s ,
b a n k i n g o p e r a t i o n s , and t h e l i k e ) w h i c h a r e
n e c e s s a r y i n o r d e r f o r t h e p r o d u c e d commodity
t o f i n d i t s u l t i m a t e u s e r . Marx r e g a r d s t h e
f o r m e r as i n t e g r a l t o t h e p r o d u c t i o n p r o c e s s
11
and t h e r e f o r e p r o d u c t i v e o f v a l u e (Ca I t a l , 2.
p. 150; G r u n d r i s s e , p. 533-4). -f-
The a t t e r a r e
r e g a r d e d as n e c e s s a r y c o s t s o f c i r c u l a t i o n
w h i c h a r e n o t , however, p r o d u c t i v e o f v a l u e --
t h e y a r e t o be r e g a r d e d , t h e r e f o r e , as neces-
s a r y d e d u c t i o n s o u t o f s u r p l u s , because t h e
c a p i t a l i s t has t o p a y f o r them.
The t r a n s p ! r t a t i o n and communicatio;s
i n d u s t r y w h i c h s e l l s change i n l o c a t i o n
(C;pit;l, 2, p. 52) i s d i r e c t l y p r o d u c t i v e o f
va ue ecause " e c o n o m i c a l l y c o n s i d e r e d , t h e
s p a t i a l condition, the bringing o f the product
t o market, belongs t o t h e p r o d u c t i o n process
i t s e l f . The p r o d u c t i s r e a l l y f i n i s h e d o n l y
when i t i s on t h e m a r k e t " ( G r u n d r i s s e , pp. 533-
4). However, t h e means o f t r a n s p o r t a t l o n and
c o m m u n i c a t i o n , because t h e y a r e made up a l m o s t
e n t i r e l y o f f i x e d c a p i t a l , have t h e i r own
p e c u l i a r laws o f r e a l i z a t i o n
--
(m., p. 523)
l a w s w h i c h stem f r o m t h e f a c t t h a t t r a n s -
p o r t a t i o n i s s i m u l t a n e o u s l y p r o d u c e d and c o n -
sumed a t t h e moment o f i t s use. A l t h o u g h t h e
t r a n s p o r t i n d u s t r y i s o t e n t f a l l a source o f
s u r p l u s value, t h e r e a w s o n s f o r
c a p i t a l n o t t o engage i n i t s p r o d u c t i o n e x c e p t
u n d e r c e r t a i n f a v o r a b l e c i r c u m s t a n c e s . The
s t a t e i s often, therefore, very active i n t h i s
sphere o f p r o d u c t i o n (m., pp. 531-3).
The c o s t o f t r a n s p o r t a t i o n " i s i m p o r t a n t
i n s o f a r as t h e e x p a n s i o n o f t h e m a r k e t and
t h e e x c h a n g e a b i l i t y o f t h e p r o d u c t a r e con-
n e c t e d w i t h i t " ( I b i d . , p. 534). Prices, both
o f raw m a t e r i a l s = f i n i s h e d goods, a r e s e n s i -
t i v e t o t h e c o s t s o f t r a n s p o r t a t i o n and t h e
a b i l i t y t o d r a w i n raw m a t e r i a l s o v e r l o n g
d i s t a n c e s and t o d i s p a t c h t h e f i n i s h e d p r o d u c t
t o a d i s t a n t market i s o b v i o u s l y a f f e c t e d by
t h e s e c o s t s . The c o s t s o f c i r c u l a t i o n " c a n b e
r e d u c e d b y impj;oved. c h e a p e r a n d more r a p i d
t r a n s p o r t a t i o n (Ca i t a l 2, p. 1 4 2 ) . One
b y - p r o d u c t o f t h i h i h e a p e n i n g o f many
elements o f c o n s t a n t c a p i t a l (raw m a t e r i a l
i n p u t s ) and t h e e x t e n s i o n o f t h e g e o g r a p h i c a l
m a r k e t . Viewed f r o m th: s t a n d p o i n t o f p r o -
d u c t i o n as a t o t a l i t y , the reduction o f the
c o s t s o f r e a l c i r c u l a t i o n [ i n space] belongs
t o t h e development o f t h e f o r c e s o f p r o d u c t i o n
b y c a p i t a l " ( G r u n d r i s s e , pp. 5 3 3 - 4 ) .
Placed i n t h e c o n t e x t o f accumulatfon i n
g e n e r a l , improvements i n t r a n s p o r t a t i o n and
communicatior! a r e seen t o be i n e v i t a b l e and
necessary. The r e v o l u t i o n i n t h e modes o f
p r o d u c t i o n o f i n d u s t r y and a g r i c u l t u r e made
necessary a r e v o l u t i o n ... i n t h e means o f com-
m u n i c a t i o n and t r a n s p o r t " so t h a t t h e y "became
g r a d u a l l y a d a p t e d t o t h e modes o f p r o d u c t i o n
o f mechanical i n d u s t r y , by t h e c r e a t i o n o f a
s y s t e m o f r i v e r steamer;, r a i l w a y s , ocean
s t e a m e r s and t e l e g r a p h s ( C a p i t a l , 1, p. 3 8 4 ) .
The i m p e r a t i v e t o a c c u m u l a t e c o n s e q u e n t l y
i m p l i e s t h e i m p e r a t i v e - t o overcome s p a t i a l
barriers:
The more p r o d u c t i o n comes t o r e s t on
exchange v a l u e , hence on exchange, t h e
more i m p o r t a n t do t h e p h y s i c a l c o n d i t i o n s
of exchange -- t h e means of communioation
and t r a n s p o r t -- become f o r t h e c o s t s of
c i r c u l a t i o n . Capital by i t 8 nature
d r i v e s beyond e v e r y s p a t i a t b a r r i e r .
Thus t h e c r e a t i o n of t h e p h y s i c a l con-
d i t i o n s o f exchange ... becomes an e x t r a -
o r d i n a r y n e c e s s i t y f o r i t f&YmdPiS8e,
p . 524).
The c a p i t a l i s t mode o f p r o d u c t i o n p r o -
motes t h e p r o d u c t i o n o f cheap and r a p i d f o r m s
o f c o m m u n i c a t i o n and t r a n s p o r t a t i o n i n o r d e r
t h a t " t h e d i r e c t p r o d u c t can be r e a l i z e d i n
d i s t a n t m a r k e t s i: mass q u a n t i t i e s " a t t h e
same t i m e as new s p h e r e s n o f r e a l i z a t i o n f o r
l a b o u r , d r i v e n b y c a p i t a l c a n b e opened up
(-. G . ) .The r e d u c t i o n i n r e a l i z a t i o n
and c i r c u l a t i o n c o s t s h e l p s t o c r e a t e , t h e r e -
f o r e . f r e s h room f o r c a p i t a l a c c u m u l a t i o n .
P u t t h e o t h e r way around, c a p i t a l a c c u m u l a t i o n
i s bound t o b e g e o g r a p h i c a l l y e x p a n s i o n a r y and
t o be s o by p r o g r e s s i v e r e d u c t i o n s i n t h e
c o s t s o f c o m m u n i c a t i o n and t r a n s p o r t a t i o n .
TAe o p e n i n g up o f more d i s t a n t m a r k e t s ,
new s o u r c e s o f raw m a t e r i a l s and o f new o p p o r -
t u n i t i e s f o r t h e employment o f l a b o r u n d e r t h e
s o c i a l r e l a t i o n s o f c a p i t a l i s m , has t h e e f f e c t ,
however, o f i n c r e a s i n g t h e t u r n o v e r t i m e o f
c a p i t a l unless t h e r e a r e compensating improve-
ments i n t h e speed o f c i r c u l a t i o n . The t u r n -
o v e r t i m e o f a g i v e n c a p i t a l i s equal t o t h e
production time plus the c i r c u l a t i o n time
( C a p i t a l , 2, p. 2 4 8 ) . The l o n g e r t h e t u r n o v e r
time o f a given capital, the smaller i s i t s
annual y i e l d o f s u r p l u s value. More d i s t a n t
m a r k e t s t i e c a p i t a l up i n t h e c i r c u l a t i o n p r o -
c e s s f o r l o n g e r t i m e p e r i o d s and t h e r e f o r e
have t h e e f f e c t o f reducing t h e r e a l i z a t i o n o f
surplus value f o r a p a r t i c u l a r capital. By
t h e same t o k e n , any r e d u c t i o n i n c i r c u l a t i o n
t i m e i n c r e a s e s s u r p l u s p r o d u c t i o n and enhances
t h e accumulation process. Speedin; up t h e
velocity o f circulation o f capital contributes
t o t h e accumulation process. Under t h e s e c o n -
d i t i o n s "even s p a t i a l d i s t a n c e reduces i t s e l f
t o time: t h e i m p o r t a n t t h i n g i s n o t t h e mar-
k e t ' s d i s t a n c e i n space, b u t t h e speed ... with
w h i c h i t c a n be r e a c h e d " ( G r u n d r i s s e , p. 5 3 8 ) .
There i s thus a s t r o n g i n c e n t i v e t o reduce t h e
c i r c u l a t i o n t i m e t o a minimum f o r , , t o do so i s
t o m i n i m i z e " t h e w a n d e r i n g p e r i o d o f com-
m o d i t i e s (Ca i t a l 2, p. 2 4 9 ) . A d u a l need,
b o t h t o r e d h i ; c o s t and t h e t i m e i n v o l v e d
i n movement, t h u s emanates f r o m t h e i m p e r a t i v e
t o accumulate:
%bile c a p i t a l must on one s i d e s t r i v e t o
t e a r down e v e r y s p a t i a l b a r r i e r t o i n t e r -
counse, i . e . , t o exchange, and conquer
t h e whole e a r t h f o r i t s market, i t s t r i v e s
on t h e o t h e r s i d e t o a n n i h i l a t e t h i s space
with time. .. The more d e v e l o p e d t h e c a p i -
t a l . . . t h e more does i t s t r i v e s i m u l t a n -
e o u s l y f o r an even g r e a t e r e x t e n s i o n of
t h e market and f o r g r e a t e r a n n i h i l a t i o n
of space by t i m e " ( G r u n d r i s s e , p . 5 3 9 ) .
Long d i s t a n c e t r a d e , because i t s e p a r a t e s
p r o d u c t i o n and r e a l i z a t i o n b y a l o n g t i m e i n -
t e r v a l , may s t i l l b e c h a r a c t e r i z e d b y a l o n g
t u r n o v e r p e r i o d and a l a c k o f c o n t i n u i t y i n
t h e employment o f c a p i t a l . This kind o f
t r a d e , and " o v e r s e a s commerce i n g e n e r a l " t h u s
f o r m s "one o f t h e m a t e r i a l b a s e s , ...one o f
t h e s o u r c e s o f t h e c r e d i t s y s t e m " (Ca i t a l , 2,
pp. 251-2). I n t h e G r u n d r i s s e (p. h r x
d e v e l o p s t h i s argument a t g r e a t e r l e n g t h :
I t i s c l e a r . . . t h a t circulation
appears a s an e s s e n t i a l p r o c e s s of c a p i -
t a l . The p r o d u c t i o n p r o c e s s cannot be
begun anew b e f o r e t h e t r a n s f o r m a t i o n of
t h e commodity i n t o money. The c o n s t a n t
c o n t i n u i t of t h i s p r o c e s s , t h e un-
d and f l u i d t r a n s i t i o n of v a l u e
from one form i n t o t h e o t h e r , o r from
one phase of t h e p r o c e s s i n t o t h e n e x t ,
appears a s a fundamental c o n d i t i o n f o r
p r o d u c t i o n based on c a p i t a l t o a much
g r e a t e r degree than f o r a l l e a r l i e r
forms of p r o d u c t i o n . [ B u t ] w h i l e t h e
n e c e s s i t y of t h i s c o n t i n u i t y i s g i v e n ,
i t s phases a r e s e p a r a t e i n time and
s p a c e . . . I t thus appears a s a m a t t e r
of c h a n c e . . . w h e t h e r o r n o t i t s e s s e n -
t i a l c o n d i t i o n , t h e c o n t i n u i t y of t h e
d i f f e r e n t p r o o e s s e s which c o n s t i t u t e
i t s p r o c e s s a s a whole, i s a c t u a l l y
brought a b o u t . The s u s p e n s i o n of t h i s
chance element by c a p i t a l i t s e l f i s
credit.
12
The c r e d i t s y s t e m a l l o w s o f a g e o g r a p h i c a l e x -
t e n s i o n of t h e market by e s t a b l i s h i n g cont'in-
u i t y where t h e r e was none b e f o r e . The neces-
s i t y t o a n n i h i l a t e space b y t i m e c a n i n p a r t
b e compensated f o r b y an e m e r g i n g s y s t e m o f
credit.
The need t o m i n i m i z e c i r c u l a t i o n c o s t s as
w e l l as t u r n o v e r t i m e s p r o m o t e s a g g l o m e r a t i o n
o f p r o d u c t i o n w i t h i n a few l a r g e u r b a n c e n t r e s
w h i c h become, i n e f f e c t , t h e workshops o f c a p i -
t a l i s t p r o d u c t i o n ( C a p i t a l , 1, p. 352;
G r u n d r i s s e , p. 5 8 7 ) . The " a n n i h i l a t i o n o f
:pace b y ;4imeii i s h e r e a c c o m p l i s h e d b y a
rational location o f a c t i v i t i e s with respect
t o each o t h e r so as t o m i n i m i z e t h e c o s t s o f
movement o f i n t e r m e d i a t e p r o d u c t s i n p a r t i -
cular. "Along w i t h t h i s c o n c e n t r a t i o n o f
masses o f men and c a p i t a l t h u s a c c e l e r a t e d a t
certain points, there i s the concentration o f
t h e s e masses o f c a p i t a l i n t h e hands o f t h e
f e w " ( { a p i t a l , 2, p. 250). The a b i l i t y t o
economize on c i r c u l a t i o n c o s t s depends, how-
e v e r , on t h e n a t u r e o f t h e t r a n s p o r t a t i o n r e -
l a t i o n s e s t a b l i s h e d and h e r e t h e r e a p p e a r s t o
be a dynamic t e n d e n c y t o w a r d s c o n c e n t r a t i o n .
Improvements i n t h e means o f t r a n s p o r t a t i o n
tend:
i n t h e d i r e c t i o n of t h e a l r e a d y e x i s t -
i n g market, t h a t i s t o s a y , towards t h e
g r e a t c e n t r e s of p r o d u c t i o n and popula-
t i o n , towards p o r t s of e x p o r t , e t c . . ..
These p a r t i c u l a r l y g r e a t t r a f f i c f a c i l i -
t i e s and t h e r e s u l t a n t a c c e l e r a t i o n of
the c a p i t a l turnover . . . g i v e r i s e t o
q u i c k e r c o n c e n t r a t i o n of b o t h t h e
c e n t r e s of p r o d u c t i o n and t h e markets"
(CapitaZ, 2 , p . 2 5 0 ) .
T h i s tendency towards a g g l o m e r a t i o n i n
l a r g e u r b a n c e n t e r s may b e d i m i n i s h e d o r en-
hanced b y s p e c i a l c i r c u m s t a n c e s . On t h e one
hand we f i n d t h a t " t h e t e r r i t o r i a l d i v i s i o n o f
labour ... c o n f i n e s s p e c i a l b r a n c h e s o f flroduc-
t i o n t o special d i s t r i c t s o f a country
( C a p i k a l , 1 , p. 3 5 3 ) . On t h e o t h e r hand, " a l l
b r a n c es o f p r o d u c t i o n w h i c h b y t h e n a t u r e o f
t h e i r p r o d u c t a r e d e p e n d e n t m a i n l y on l o c a l
c o n s u m p t i o n , such as b r e w e r i e s , a r e ... developed
t o the greateft extent i n the p r i n c i p l e centres
o f p o p u l a t i o n ( C a p i t a l , 2, p. 251).
The g e o g r a p h i c a l r a t i o n a l i z a t i o n o f t h e
processes of p r o d u c t i o n i s i n p a r t dependent
upon t h e c h a n g i n g s t r u c t u r e o f t r a n s p o r t f a c i -
l i t i e s , t h e raw m a t e r i a l and m a r k e t i n g demands
o f t h e i n d u s t r y and t h e i n h e r e n t t e n d e n c y t o -
wards a g g l o m e r a t i o n and c o n c e n t r a t i o n on t h e
part o f capital itself. The l a t t e r r e q u i r e d a
t e c h n o l o g i c a l i n n o v a t i o n t o s u s t a i n i t , how-
ever. Hence t h e i m p o r t a n c e o f t h e steam e n -
g i n e w h i c h "per;itted p r o d u c t i o n t o be concen-
t r a t e d i n towns and w h i c h "was o f u n i v e r s a l
a p p l i c a t i o n , and, r e l a t i v e l y s p e a k i n g , l i t t l e
a f f e c t e d i n i t s c h o i c e o f r e s i d e n c e by l o c a l
c i r c u m s t a n c e s " ( C a p i t a 1 , 1, p. 3 7 8 ) .
Innovations o f t h i s s o r t , which r e l a t i v e l y
s p e a k i n g f r e e p r o d u c t i o n f r o m l o c a l power
s o u r c e s and w h i c h p e r m i t t h e c o n c e n t r a t i o n o f
p r o d u c t i o n i n l a r g e u r b a n a g g l o m e r a t i o n s accom-
p l i s h t h e same p u r p o s e as t h o s e t r a n s p o r t i n -
n o v a t i o n s w h i c h s e r v e t o a n n i h i l a t e space w i t h
time. G e o g r a p h i c a l e x p a n s i o n and g e o g r a p h i c a l
c o n c e n t r a t i o n a r e b o t h t o b e r e g a r d e d as t h e
p r o d u c t o f t h e same s t r i v i n g t o c r e a t e new
o p p o r t u n i t i e s f o r c a p i t a l accumulation. In
general, i t appears t h a t t h e i m p e r a t i v e t o
accumulate produces c o n c e n t r a t i o n o f produc-
t i o n and o f c a p i t a l a t t h e same t i m e as i t
c r e a t e s an e x p a n s i o n o f t k e m a r k e t f o r r e a l i z a -
tion. As a consequence, f l o w s i n space" i n -
c r e a s e r e m a r k a b l y , w h i l e t h e " m a r k e t expands
s p a t i a l l y , and t h e p e r i p h e r y i n r e l a t i o n t o t h e
c e n t r e . . . i s c i r c u m s c r i b e d b y a c o n s t a n t l y ex-
pandin r a d i u s ( T h e o r i e s o f S u r p l u s Value, 3,
p. 2883 . Some s o r t o f c e n t r e - p e r i p h e r y r e l a -
t i o n i s bound t o a r i s e o u t o f t h e t e n s i o n be-
tween c o n c e n t r a t i o n and g e o g r a p h i c a l expan-
s i o n . We w i l l examine c e r t a i n a s p e c t s o f t h i s
r e l a t i o n f u r t h e r i n t h e s e c t i o n on f o r e i g n
trade.
Since t h e s t r u c t u r e o f t r a n s p o r t f t c i l i -
t i e s does n o t r e m a i n c o n s t a r i t , we f i n d a
s h i f t i n g and r e l o c a t i o n o f p l a c e s o f p r o d u c -
t i o n a n d o f m a r k e t s as a r e s u l t o f t h e changes
i n t h e i r r e l a t i v e p o s i t i o n s c a u s e d b y :he
transformation i n transport f a c i l i t i e s
(Ca i t a l , 2, p. 250). These t r a n s f o r m a t i o n s
a h h e r e l a t i v e distances o f places o f
p r o d u c t i o n f r o m t h e l a E g e r m a r k e t s and c o n -
s e q u e n t l y b r i n g a b o u t t h e d e t e r i o r a t i o n of
o l d and t h e r i s e o f new c e n t r e s o f p r o d u c t i o n "
(w., p. 2 4 9 ) .
The emergence o f a d i s t i n c t s p a t i a l
structure with the r i s e o f capitalism i s not
a c o n t r a d i c t i o n - f r e e process. Inllorder t o
overcome s p a t i a l u b a r r i e r s and t o a n n i h i l a t e
space w i t h time, spatial structures are
c r e a t e d w h i c h t h e m s e l v e s u l t i m a t e l y a c t as a
b a r r i e r t o f u r t h e r a c c u m u l a t i o n . These
s p a t i a l s t r u c t u r e s a r e expressed, o f course,
i n t h e f i x e d and immovable f o r m o f t r a n s p o r t
f a c i l i t i e s , p l a n t , and o t h e r means o f p r o -
d u c t i o n and c o n s u m p t i o n w h i c h c a n n o t b e moved
w i t h o u t being destroyed. Once t h e mode o f
p r o d u c t i o n o f c a p i t a l i s b r o u g h t i n t o being,
i t " e s t a b l i s h e s i t s r e s i d e n c e on t h e l a n d
i t s e l f and t h e s e e m i n g l y s o l i d p r e s u p p o s i t i o n s
g i v e n by n a t u r e themselves [appear] i n landed
p r o p e r t y as m e r e l y o s i t e d b y i n d u s t r y "
( G r u n d r i s s e , p. 740p. C a p i t a l t h u s comes t o
represent i t s e l f i n the form o f a physical
l a n d s c a p e c r e a t e d i n i t s own image, c r e a t e d
as u s e v a l u e s t o enhance t h e p r o g r e s s i v e
a c c u m u l a t i o n o f c a p i t a l o n an e x p a n d i n g s c a l e .
The g e o g r a p h i c a l l a n d s c a p e w h i c h f i x e d and
immobile c a p i t a l comprises i s b o t h a crowning
g l o r y o f p a s t c a p i t a l d e v e l o p m e n t and a p r i s o n
w h i c h i n h i b i t s t h e f u r t h e r p r o g r e s s o f accumu-
l a t i o n because t h e v e r y b u i l d i n g o f t h i s l a n d -
scape i s a n t i t h e t i c a l t o t h e " t e a r i n g down o f
s p a t i a l b a r r i e r s " and ultimate131 even t o t h e
" a n n i h i l a t i o n o f space by time.
This contradiction i s characteristic o f
t h e g r o w i n g dependency o f c a p i t a l i s m on f i x e d
c a o i t a l o f a l l kinds. With " f i x e d c a o i t a l t h e
vaiueIIis i m p r i s o n e d w i t h i n a s p e c i f i c ' use
v a l u e ( G r u n d r i s s e . p. 7 2 8 ) w h i l e t h e d e g r e e
o f f i x i t y increases w i t h d u r a b i l i t y . other
t h i n g s b e i n g e q u a l (Ca i t a l 2, p . - 1 6 0 ) . The
necessary i n c r e a s e i h i e o f f i x e d c a p i t a l
o f t h e immobile s o r t which t h e imperative t o
a c c u m u l a t e i m p l i e s imposes a f u r t h e r i m p e r a -
tive:
The v a l u e of f i x e d c a p i t a l is r e -
produced o n l y i n s o f a r a s i t is used u p
i n the p r o d u o t i o n p r o c e s s . Through
disuse i t l o s e s i t s value without i t s
v a l u e p a s s i n g on t o t h e p r o d u c t . Hence
t h e g r e a t e r the s c a l e on which f i x e d
c a p i t a l develops ... t h e more does the
c o n t i n u i t y of t h e p r o d u c t i o n p r o c e s s or
t h e c o n s t a n t f l o w o f r e p r o d u c t i o n become
an extsrnaEZy oompetting a o n d i t i o n f o r
t h e mode o f p r o d u c t i o n founded on
c a p i t a l (Crundriese, p , 7 0 8 ) .
C a p i t a l i s t d e v e l o p m e n t has t o n e g o t i a t e a
k n i f e - e d g e p a t h between p r e s e r v i n g t h e v a l u e s
o f p a s t c a p i t a l i n v e s t m e n t s i n t h e b u i l t en-
v i r o n m e n t and d e s t r o y i n g t h e s e i n v e s t m e n t s i n
o r d e r t o open u p f r e s h r o o m - f o r a c c u m u l a t i o n
( f o r a s p e c i f i c example o f t h i s see H a r v e y ,
1975). As a consequence we c a n e x p e c t t o
witness a perpetual s t r u g g l e i n which c a p i t a l -
13
i s m b u i l d s a p h y s i c a l landscape a p p r o p r i a t e t o
i t s own c o n d i t i o n a t a p a r t i c u l a r moment i n
time, o n l y t o have t o d e s t r o y f t , u s u a l l y i n
t h e course o f a c r i s i s . a t a subsequent p o i n t
i n time. Temporal c r i s e s i n r i x e d c a p i t e l i n -
v e s t m e n t , o f t e n e x p r e s s e d as long-waves in
economic d e v e l o p m e n t ( s e e , e.g., Kuznets, 1961,
B r i n l e y Thomas, 1972) a r e t h e r e f o r e u s u a l l y
e x p r e s s e d as p e r i o d i c r e - s h a p i n g s o f t h e geo-
g r a p h i c e n v i r o n m e n t t o a d a p t i t t o t h e needs o f
f u r t h e r accumulation.
T h i s c o n t r a d i c t i o n has a f u r t h e r d i m e n s i o n .
I n p a r t t h e d r i v e t o overcome s p a t i a l b a r r i e r s
and t o a n n i h i l a t e s p a c e w i t h t i m e i s d e s i g n e d
t o c o u n t e r a c t w h a t Marx saw as a p e r v a s i v e t e n -
dency under c a p i t a l i s m f o r t h e p r o f i t r a t e t o
fall. The c r e a t i o n o f b u i l t e n v i r o n m e n t s i n
t h e s e r v i c e o f c a p i t a l i s m means a g r o w t h o f
t h a t p o r t i o n o f s o c i a l w e a l t h which, i n s t e a d o f
s e r v i n g as d i r e c t means o f p r o d u c t i o n , i s i n -
v e s t e d i n means o f t r a n s p o r t a t i o n and communi-
c a t i o n and i n t h e f i x e d and t i r c u l a t i n g c a p i t a l
r e q u i r e d f o r t h e i r o p e r a t i o n ( C a p i i a l , 2,
p. 2 5 1 ) . I n v e s t m e n t i n t h e means o t r a n s p o r -
t a t i o n i s bound t o i n c r e a s e t h e o r g a n i c compo-
s i t i o n o f s o c i a l c a p i t a l which tends t o gener-
a t e a f a l l i n t h e r a t e o f p r o f i t a t t h e same
t i m e as i t s e f f e c t s a r e supposed t o i n c r e a s e
the rate o f profit. Again, c a p i t a l i s t develop-
ment has t o n e g o t i a t e a k n i f e - e d g e between
these two c o n t r a d i c t o r y tendencies.
The l o c a t i o n t h e o r y i n Marx i s n o t much
more s p e c i f i c t h a n t h i s ( a l t h o u g h t h e r e i s
much i n t h e a n a l y s i s o f f i x e d and immovable
c a p i t a l investment which i s o f i n t e r e s t b u t
w h i c h space p r e c l u d e s f r o m c o n s i d e r i n g h e r e ) .
The v i r t u e o f t h e s e f r a g m e n t a r y a n a l y s e s l i e s
not i n t h e i r sophistication. It l i e s , rather,
i n t h e way i n w h i c h t h e y c a n be t i g h t l y i n t e -
g r a t e d i n t o t h e fundamental i n s i g h t s i n t o t h e
p r o d u c t i o n o f v a l u e and t h e dynamics o f accumu-
lation. I n t h i s t h e Marxian approach i s funda-
m e n t a l l y d i f f e r e n t t o t h a t t y p i c a l o f bourgeois
economic a n a l y s i s o f l o c a t i o n a l phenomena.
The l a t t e r t y p i c a l l y s p e c i f i e s a n o p t i m a l con-
f i g u r a t i o n under a s p e c i f i c s e t o f c o n d i t i o n s
and p r e s e n t s a p a r t i a l s t a t i c e q u i l i b r i u m
analysis. Dynamics a r e c o n s i d e r e d a t t h e end
o f the analysis -- u s u a l l y as a n a f t e r t h o u g h t
- - and t h e dynamics n e v e r g e t much beyond com-
p a r a t i v e s t a t i c s . Consequently. i t i s g e n e r a l -
l y acknowledged t h a t bourgeois l o c a t i o n t h e o r y
has f a i l e d t o d e v e l o p a s a t i s f a c t o r y dynamic
r e p r e s e n t a t i o n o f i t s e l f . The M a r x i a n t h e o r y ,
on t h e o t h e r hand, commences w i t h t h e dynamics
o f a c c u m u l a t i o n and seeks t o d e r i v e o u t o f t h i s
analysis certain necessities with respect t o
g e o g r a p h i c a l s t r u c t u r e s . The l a n d s c a p e w h i c h
c a p i t a l i s m c r e a t e s i s a l s o seen as t h e l o c u s
o f c o n t r a d i c t i o n and t e n s i o n , r a t h e r t h a n as
an e x p r e s s i o n o f h a r m o n i o u s e q u i l i b r i u m . And
c r i s e s i n f i x e d c a p i t a l i n v e s t m e n t s a r e seen
as synonymous i n many r e s p e c t s w i t h t h e d i a -
l e c t i c a l t r a n s f o r m a t i o n o f g e o g r a p h i c a l space.
The c o n t r a s t b e t w e e n t h e t w o t h e o r e t i c a l
stances i s i m p o r t a n t . I t suggests t h a t t h e
two t h e o r i e s a r e r e a l l y c o n c e r n e d w i t h q u i t e
d i f f e r e n t things. Bourgeois l o c a t i o n a l
a n a l y s i s i s o n l y a d e q u a t e as an e x p r e s s i o n o f
o p t i m a l c o n f i g u r a t i o n s under s e t c o n d i t i o n s .
The M a r x i a n t h e o r y t e a c h e s us how t o r e l a t e ,
t h e o r e t i c a l l y , a c c u m u l a t i o n and t h e t r a n s f o r -
m a t i o n o f s p a t i a l s t r u c t u r e s and u l t i m a t e l y ,
of c o u r s e , i t p r o v i d e s us w i t h t h e k i n d o f
t h e o r e t i c a l and m a t e r i a l u n d e r s t a n d i n g w h i c h
w i l l a l l o w us t o u n d e r s t a n d t h e r e c i p r o c a l
r e l a t i o n s h i p s between g e o g r a p h y and h i s t o r y .
III. FOREIGN TRADE
Marx c o n s i d e r s f o r e i g n t r a d e f r o m t w o
r a t h e r d i f f e r e n t s t a n d p o i n t s ; f i r s t , as an
a t t r i b u t e o f t h e c a p i t a l i s t mode o f p r o d u c t i o n
 and second, as an h i s t o r i c a l phenomenon r e l a t -
i n g an e v o l v i n g c a p i t a l i s t s o c i a l f o r m a t i o n
w l t h p r e - c a p i t a l i s t s o c l e t i e s and e n e r a t i n g
v a r i o u s i n t e r m e d i a t e s o c i a l f o r m s !such as
c o l o n i e s , p l a n t a t i o n economies, d e p e n d e n t
economies, and t h e l i k e ) .
Marx i n v a r i a b l y a b s t r a c t s f r o m q u e s t i o n s
o f foreign trade i n h i s analysis o f the capi-
t a l i s t mode o f p r o d u c t i o n ( C a p i t a l , 1, p.
581). He concedes, o f c o u r s e , t h a t " c a p i t a l -
i s t p r o d u c t i o n does n o t e x i s t a t a l l w i t h o u t
f o r e i g n commerce" b u t s u g g e s t s t h a t c o n s i d e r a -
t i o n o f the l a t t e r merely serves t o "confuse
w i t h o u t c o n t r i b u t i n g any new e l e m e n t o f t h e
problem [ o f accumulation], o r o f i t s s o l u t i o n "
(Ca i t a l , 2, p . 4 7 0 ) . He a l s o a c c e p t s t h a t
f h t r a d e may c o u n t e r a c t t h e t e n d e n c y t o
a f a l l i n g r a t e o f p r o f i t because i t cheapens
t h e e l e m e n t s o f c o n s t a n t c a p i t a l as w e l l as
n e c e s s i t i e s and s o p e r m i t s a r i s i n g s u r p l u s
value t o be a p p r o p r i a t e d . But since t h i s
r a i s e s t h e r a t e of accumulation, i t merely
hastens t h e f a l l i n t h e r a t e o f p r o f i t i n t h e
l o n g run (Ca i t a l , 3, p. 2 3 7 ) . The i n c r e a s e
i n foreign* w h i c h i n e v i t a b l y ari:es w i t h
t h e expansion o f accumulation. merelv t r a n s -
f e r s t h e c o n t r a d i c t i o n s t o a w i d e r s p h e r e and
g i v e s them g r e a t e r l a t i t u d e " ( C a p i t a l , 2,
p. 4 0 8 ) .
M o s t o f M a r x ' s comments on f o r e i g n t r a d e
r e l a t e t o i t as an h i s t o r i c a l phenomenon and
a r e t h e r e f o r e p e r i p h e r a l t o h i s main purpose
i n Ca i t a l . F o r e i g n t r a d e i s t r e a t e d as a
p r e b i o n f o r c a p i t a l i s t a c c u m u l a t i o n as
w e l l as a consequence o f t h e e x p a n s i o n o f t h e
market. S i n c e consequences a t one s t a g e
become p r e - c o n d i t i o n s a t t h e n e x t , t h e d e v e l o p -
ment o f f o r e i g n t r a d e and c a p i t a l i s t s o c i a l
f o r m a t i o n s a r e seen as i n t e g r a l l y r e l a t e d .
Special factors" also a r i s e i n r e l a t i o n t o
f o r e i g n t r a d e w h i c h c a n c o n f u s e , c o n c e a l and
d i s t o r t m a t t e r s . The s i g n i f i c a n c e o f s u c h
factors t o actual h i s t o r i c a l situations i s not
denled -- t h e y a r e j u s t n o t r e g a r d e d as c r u -
c i a l f o r understanding t h e i n n e r l o g i c o f t h e
c a p i t a l i s t mode o f p r o d u c t i o n .
The t h e o r e t i c a l and h i s t o r i c a l a n a l y s e s
i n t e r s e c t a t c e r t a i n p o i n t s , however. Some o f
M a r x ' s s t a t e m e n t s on f o r e i g n t r a d e c a n be i n -
t e r p r e t e d as l o g i c a l e x t e n s i o n s o f h i s t h e o r e t -
i c a l v i e w s on how t h e a c c u m u l a t i o n p r o c e s s
g e n e r a t e s t r a n s p o r t a t i o n r e l a t i o n s and l o c a -
tional structures. These v i e w s a r e u s u a l l y
projected i n t o a pre-existing structure o f
nation states, t e r r i t o r i e s with d i f f e r e n t
n a t u r a l p r o d u c t i v e c a p a c i t i e s and non-
c a p i t a l i s t p r o d u c t i o n systems.
Marx r e c o g n i z e s , f o r example, t h a t " t h e
productiveness o f labour i s f e t t e r e d by physi-
c a l c o n d i t i o n s " ( C a p i t a l , 1 , p. 5 1 2 ) . In
a g r i c u l t u r e he e x p e c t s u n e q u a l r e t u r n s on
c a p i t a l advanced t o r e s u l t f r o m d i f f e r e n c e s
i n b o t h f e r t i l i t y and r e l a t i v e i o c a t i o n
(Ca i t a l 3, p. 6 5 0 ) . natural differences
f h i r e f o r e , a "physital basis f o r the
s o c i a l d i v i s i o n o f l a b o u r ( C a p i t a l , 1, p.
514). a l t h o u g h t h e y p r e s e n t p o s s i b i l i t i e s o n l y
( a n d n o t u n m o d i f i a b l e ones a t t h a t ) because i n
!he l a s t i n s t a n c e t h e p r o d u c t i v e n e s s o f l a b o u r
Is a g i f t , n o t o f N a t u r e , b u t o r a h i s t o r y
embracing thousands o f c e n t u r i e s
512).
(m., p.
C a p i t a l i s t p r o d u c t i o n and c i r c u l a t i o n
tends t o t r a n s f o r m these p o s s i b i l i t i e s i n t o
an i n t e g r a t e d g e o g r a p h i c a l s y s t e m o f p r o d u c -
t l o n and exchange w h i c h s e r v e s t h e p u r p o s e s
o f c a p f t a l i s t accumulation. I n t h e process
c e r t a i n c o u n t r i e s may e s t a b l i s h a monopoly
over t h e p r o d u c t i o n o f p a r t i c u l a r commodities
(C;P:fal. 3 , p. 1191, w h i l e c e n t e r - p e r i p h e r y
r e a ons w i l l be p r o d u c e d on a g l o b a l s c a l e :
14
"A new and i n t e r n a t i o n a l d i v i s i o n of
labour, a d i v i s i o n s u i t e d t o t h e r e q u i r s -
ments of t h e c h i e f c e n t r e s of modern i n -
d u s t r y s p r i n g s up, and c o n v e r t s one p a r t
of t h e g l o b e i n t o a c h i e f l y a g r i c u l t u r a l
f i e l d of p r o d u c t i o n , f o r s u p p l y i n g t h e
o t h e r p a r t which remains a c h i e f l y i n d u s -
t r i a l f i e l d " (CapitaZ. 1, p . 4 5 1 ) .
C a p i t a l i s t s i n t h e advanced c o u n t r i e s may
also gain a higher r a t e o f p r o f i t by s e l l i n g
t h e i r goods above t h e i r v a l u e i n c o m p e t i t i o n
w i t h "commodities produced i n o t h e r c o u n t r i e s
with i n f e r i o r production f a c i l i t i e s . . . i n the
same way t h a t a m a n u f a c t u r e r e x p l o i t s a new i n -
v e n t i o n b e f o r e i t has become g e n e r a l " ( C a p i t a l ,
3, p. 2 3 8 ) . R e l a t i v e p r o d u c t i v e advantages
y i e l d e x c e s s p r o f i t s and i f t h f y a r e p e r p e t u a E -
ed i n t h e form o f a permanent technology-gap
i t f o l l o w s ( a l t h o u g h Marx d i d n o t a p p a r e n t l y
make t h e p o i n t ) t h a t t e c h n o l o g y - r i c h r e g i o n s
a l w a y s have t h e c a p a c i t y t o e a r n h i g h e r p r o f i t s
w i t h i n a g i v e n l i n e o f p r o d u c t i o n compared t o
technology-poor regions.
The i n t e r n a t i o n a l c r e d i t s y s t e m a l s o has
a v i t a l r o l e t o play i n creating the world
m a r k e t and f a s h i o n i n g i t s s t r u c t u r e :
"The e n t i r e c r e d i t s y s t e m . . . r e s t s on
t h e n e c e s s i t y of expanding and l e a p i n g
o v e r t h e b a r r i e r t o c i r c u l a t i o n and t h e
s p h e r e of exchange. T h i s a p p e a r s more
c o l o s s a l l y , c l a s s i c a l l y , i n the r e l a -
t i o n s between p e o p l e than i n t h e r e l a -
t i o n s between i n d i v i d u a l s . Thus, e . g . ,
the English [ a r e ] f o r c e d t o lend t o
f o r e i g n n a t i o n s i n o r d e r t o have them a s
customers" ( G r u n d r i a s e p . 416; c f . ,
T h e o r i e s of W l u e , 3 , p . 1 2 2 ) .
Capital export -- a theme w h i c h L e n i n (1963,
pp. 715-19) e l a b o r a t e s on as c r u c i a l t o t h e
t h e o r y o f i m p e r i a l i s m as t h e h i g h e s t s t a g e of
capitalism -- can, i n M a r x ' s v i e w , p r o v i d e
temporary o p p o r t u n i t i e s f o r s u r p l u s c a p i t a l .
B u t c a i t a l e x p o r t c a n t a k e d i f f e r e n t f o r m s as
we w i l e s h o r t l y see and be engaged i n f o r q u i t e
d i f f e r e n t reasons.
The g e n e r a l d r i v e t o overcome a l l s p a t i a l
b a r r i e r s produces a v a r j e t y o f r e s u l t s i n r e l a -
t i o n t o n o n - c a p i t a l i s t f o r m s o f p r o d u c t i o n and
social organization:
"When an i n d u s t r i a 1 p e o p l e , producing
on t h e f o u n d a t i o n of c a p i t a l , such as t h e
E n g l i s h , e . g . , exchange o i t h t h e C h i n e s e ,
and a b s o r b v a l u e ... by drawing t h e l a t t e r
w i t h i n t h e s p h e r e of c i r c u l a t i o n of c a p i -
t a l , t h e n one s e e s r i g h t away t h a t t h e
Chinese do n o t t h e r e f o r e need t o produce
a s c a p i t a l i s t s " ( G r u n d r i e s e , p . 7291.
The i n t e r a c t i o n o f c a p i t a l i s t and non-
c a p i t a l i s t modes o f p r o d u c t i o n w i t h i n t h e
sphere o f c i r c u l a t i o n c r e a t e s s t r o n g i n t e r -
dependencies. The c i r c u l a t i o n o f v a l u e w i t h i n
t h e c a p i t a l i s t s y s t e m becomes dependent on t h e
c o n t i n u e d c o n t r i b u t i o n o f p r o d u c t s and money
from n o n - c a p i t a l i s t s o c i e t f e s -- " t o t h i s ex-
t e n t t h e c a p i t a l i s t mode o f p r o d u c t i o n i s con-
d i t i o n a l on modes o f p r o d u c t i o n l y i n g o u t s i d e
o f i t s own s t a g e o f d e v e l o p m e n t " (Cap;tal, 2,
p . 1 1 0 ) . T h l s i s a theme w h i c h Luxem u r g
( 1 9 6 8 ) d e v e l o p s a t g r e a t l e n g t h i n h e r The
Accumulation o f C a p i t a l -- she a r g u e s , in
e f f e c t , t h a t t h e f r e s h room f o r a c c u m u l a t i o n
which c a p i t a l i s m must d e f i n e can e x i s t o n l y I n
the form o f p r e - c a p i t a l i s t s o c i e t i e s which
p r o v i d e untapped markets t o absorb what i s a
p e r p e t u a l tendency f o r t h e o v e r p r o d u c t i o n o f
commodities under c a p i t a l i s m . Once t h e s e
societies are a l l brought i n t o the c a p i t a l i s t
network then, i n h e r view, accumulation must
cease.
 Marx a l s o a r g u e d t h a t t h e h i s t o r i c t e n d -
e n c y o f c a p i t a l i s m i s t o d e s t r o y and a b s o r b
n o n - c a p i t a l i s t modes o f p r o d u c t i o n a t t h e same
t i m e as i t uses them t o c r e a t e f r e s h room f o r
c a p i t a l accumulation. I n i t i a l l y , t h e mere
penetration 0 : t h e money f o r m has a d i s r u p t i n g
influence -- where money i s n:t t h e community,
i t m u s t d i s s o l v e t h e communitv a n d "draw new
continents i n t o the metabolish o f circulation"
( G r u n d r i s s e , pp. 2 2 4 - 5 ) . I n t h e e a r l y stages
c a D i t a l i s accumulated o u t o f t h i s "metabolism
o f ' c i r c u l a t i o n " - - i n d e e d , such a c c u m u l a t i o n
i s an h i s t o r i c a l p r e m i s e f o r t h e d e v e l o p m e n t
o f c a p i t a l i s t production. The towns accumu-
l a t e u s e v a l u e s and hence v a l u e s f r o m t h e
c o u n t r y s i d e w h i l e m e r c h a n t ' s c a p i t a l , as an
h i s t o r i c a l l y p r i o r form o f organization t o
producer's c a p i t a l :
" a p p r o p r i a t e s an overwhelming p o r t i o n o f
t h e S U P p l U S product p a r t l y a s a mediator
between commodities which s t i l l substan-
t i a l l y p r o d u c e f o r u s e value...and p a r t -
l y b e c a u s e u n d e r t h o s e e a r l i e r modes of
p r o d u c t i o n t h e p r i n c i p l e owners o f t h e
s u r p l u s p r o d u c t w i t h whom t h e merchant
d e a l t , namely, t h e s l a v e - o w n e r , t h e
f e u d a l l o r d , and t h e s t a t e (for i n -
stance, the oriental despot) represent
t h e consuming w e a l t h and l u x u r y w h i c h
t h e merchant s e e k s t o t r a p .... Mer-
c h a n t ' s c a p i t a l , when i t h o l d s a p o s i -
t i o n o f dominance, s t a n d s e v e r y w h e r e for
a s y s t e m o f r o b b e r y , so t h a t i t s de-
v e l o p m e n t among t h e t r a d i n g n a t i o n s of
o l d and modern t i m e s i s always d i r e c t l y
connected w i t h plundering, p i r a c y , k i d -
n a p p i n g , s l a v e r y and c o l o n i a l c o n q u e s t
.... The d e v e l o p m e n t of m e r c h a n t ' s
c a p i t a l g i v e s r i s e everywhere t o t h e
t e n d e n c y towards p r o d u c t i o n of exchange
values.. .. Commerce, t h e r e f o r e , has a
more or l e s s d i s s o l v i n g i n f l u e n c e e u e r y -
where o n t h e p r o d u c i n g o r g a n i a a t i o n
w h i c h it f i n d s a t hand and whose d i f -
f e r e n t f o r m s a r e m a i n l y c a r r i e d on w i t h
a view t o u s e v a l u e " ( C a p i t a l , 3, p p .
331-2).
The r e s u l t a n t f o r m s w h i c h emerge f r o m such
d i s r u p t i o n s depend, however, upon t h e f o r m o f
t h e p r e - e x i s t i n g s o c i e t y and t h e e x t e n t o f
c a p i t a l i s t penetration. One e f f e c t , f o r e x -
ample, i s t o c r e a t e s c a r c i t i e s i n t h e non-
c a p i t a l i s t s o c i e t y where t h e r e were none b e -
fore. Necessaries are thereby transformed i n t o
l u x u r i e s and t h i s :
" d e t e r m i n e s t h e whote s o c i a 2 p a t t e r n of
backward n a t i o n s . . . w h i c h a r e a s s o c i a t e d
w i t h a w o r l d market based o n c a p i t a l i s t
p r o d u c t i o n . No m a t t e r how l a r g e t h e
surplus p r o d u c t , t h e y ( t h e n o n - c a p i t a l i s t
p r o d u c e r s ) e x t r a c t from t h e s u r p l u s
labour o f t h e i r s l a v e s i n t h e simple form
of c o t t o n or corn, t h e y can a d h e r e t o
t h i s s i m p l e u n d i f f e r e n t i a t e d Zabour b e -
c a u s e f o r e i g n t r a d e e n a b l e s them t o con-
v e r t t h e s e s i m p l e p r o d u c t s i n t o any k i n d
o f u s e v a l u e " ( T h e o r i e s o f Surplus V a l u e ,
3, p . 243).
The c r e a t i o n o f " u n d e r d e v e l o p m e n t " b y means o f
a c a p i t a l i s t p e n e t r a t i o n w h i c h t r a n s f o r m s non-
c a p i t a l i s t s o c i e t i e s from r e l a t i v e l y s e l f -
s u f f i c i e n t organizations f o r the production o f
u s e - v a l u e s t o s p e c i a l i z e d and d e p e n d e n t u n i t s
p r o d u c i n g exchange v a l u e s , i s a theme w h i c h
has been e x p l o r e d b y c o n t e m p o r a r y w r i t e r s such
as B a r a n ( 1 9 5 7 ) and F r a n k ( 1 9 6 9 ) . The l a t t e r ,
f o r example, c o i n s t h e p h r a s e " t h e d e v e l o p m e n t
o f underdevelopment" t o c a l l a t t e n t i o n t o t h e
k i n d s o f p r o c e s s e s t h a t Marx had i n m i n d .
These f o r m s o f dependency a r e p o s s i b l e
o n l y a f t e r c a p i t a l i s t p r o d u c t i o n had come t o
15
dominate merchant's c a p i t a l so t h a t t h e l a t t e r
now b a s i c a l l y s e r v e s t h e p u r p o s e s o f t h e
former. We t h e n f i n d :
" t h e c h e a p n e s s of t h e a r t i c l e s produced
by m a c h i n e r y , and t h e improved means of
t r a n s p o r t and communication f u r n i s h t h e
weapons for c o n q u e r i n g f o r e i g n m a r k e t s .
B y r u i n i n g h a n d i c r a f t p r o d u c t i o n in
o t h e r c o u n t r i e s , machinery f o r c i b l y con-
v e r t s them i n t o f i e l d s for t h e s u p p l y o f
i t s raw m a t e r i a l . I n t h i s way, E a s t
I n d i a was compeZled t o produce c o t t o n ,
wool, hemp, j u t e and i n d i g o for Great
B r i t a i n " ( C a p i t a l , I, p . 4 5 1 ) .
The manner o f such a t r a n s f o r m a t i o n i s o f i n -
t e r e s t and I n d i a p r o v i d e s a good example.
Originally a f i e l d for "direct exploitation"
- - t h e d i r e c t a p p r o p r i a t i o n o f use values --
I n d i a was t r a n s f o r m e d a f t e r 1815 i n t o a m a r k e t
f o r B r i t i s h t e x t i l e products:
"But t h e more t h e i n d u s t r i a l i n -
t e r e s t became d e p e n d e n t o n t h e I n d i a n
m a r k e t , t h e more i t f e l t t h e n e c e s s i t y of
c r e a t i n g f r e s h p r o d u c t i v e powers i n
I n d i a , a f t e r h a v i n g r u i n e d h e r n a t i v e in-
d u s t r y . You c a n n o t c o n t i n u e t o i n u n d a t e
a country w i t h your manufactures, unless
you e n a b l e i t t o g i v e you some produce i n
return" (On Colonialism, p . 52).
C a p i t a l e x p o r t i n t h i s case served a d i f f e r e n t
p u r p o s e f r o m t h e mere l o a n o f money t o f i n a n c e
i m p o r t s o f manufactures. C a p i t a l was e x p o r t e d
t o I n d i a t o p r o m o t e commodity p r o d u c t i o n w h i c h
c o u l d , v i a f o r e i g n t r a d e , p r o v i d e t h e where-
w i t h a l t o pay f o r t h e goods w h i c h were b e i n g
imported from B r i t a i n . B r i t a i n had t o b u i l d
up commodity p r o d u c t i o n f o r exchanges i n I n d i a
if i t was t o m a i n t a i n I n d i a as an i m p o r t a n t
market .
The same s o r t o f l o g i c , o p e r a t i n g u n d e r
rather d i f f e r e n t conditions, applies t o the
development of c o l o n i e s through s e t t l e m e n t .
Marx i n s i s t s h e r e on d r a w i n g a d i s t i n c t i o n :
"There a r e t h e coZoniea p r o p e r , s u c h
as the United S t a t e s , Australia, e t c .
Here t h e mass of t h e f a r m i n g c o l o n i s t s ,
aZthough t h e y b r i n g w i t h them a Larger
o r s m a l l e r amount o f c a p i t a l f r o m t h e
m o t h e r l a n d , a r e n o t c a p i t a l i s t s , n o r do
t h e y c a r r y on c a p i t a l i s t p r o d u c t i o n .
They a r e more or l e s s p e a s a n t s who work
t h e m s e l v e s and whose main o b j e c t , i n t h e
f i r s t p l a c e , i s t o produce t h e i r own
livelihood
colonies --
.... I n t h e second t y p e o f
plantations -- where commer-
c i a l s p e c u l a t i o n s f i g u r e from t h e s t a r t
and p r o d u c t i o n i s i n t e n d e d for t h e world
m a r k e t , t h e c a p i t a l i s t mode of produc-
t i o n e x i s t s , although only i n a formal
s e n s e , s i n c e t h e s l a v e r y of Negroes p r s -
c l u d e s f r e e wage l a b o u r , w h i c h i s t h e
b a s i s of c a p i t a l i s t p r o d u c t i o n . But t h e
b u s i n e s s i n T w h i c h s l a v e s a r e used i s
c o n d u c t e d by c a p i t a l i s t s " ( T h e o r i e s o f
Surplus V a l u e , 2, p p . 302-31.
Colonies o f the l a t t e r s o r t h o l d o u t the
p r o s p e c t f o r h i g h p r o f i t s because o f t h e h i g h e r
rates o f exploitation, the lower p r i c e o f
n e c e s s a r i e s and, u s u a l l y , h i g h e r n a t u r a l p r o -
ductivity. C a p i t a l may move i n t o such c o l o n l e s
and i n t h e p r o c e s s r e d u c e t h e e x c e s s p r o f i t
there, b u t i n t h e process t h e average r a t e o f
profit w i l l rise (w., pp. 4 3 6 - 7 ) .
e x i s t s h e r e a p o s i t i v e inducement t o t h e ex-
There
port o f capital :
rrIfc a p i t a l i s s e n t abroad, t h i s i s
n o t done b e c a u s e i t a b s o l u t e l y c o u l d
n o t b e a p p l i e d a t home, b u t b e c a u s e i t
 can be employed a t a h i g h e r r a t e o f p r o -
f i t i n a f o r e i g n country" (Capital, 3,
p . 256).
With complete m o b i l i t y , o f course, t h e p r o f i t
r a t e w i l l u l t i m a t e l y be e q u a l i z e d a l t h o u g h
a t a h i g h e r average r a t e than before. But
c o l o n i e s o f t h i s second s o r t a r e s t i l l advan-
t a g e o u s because t h e y p e r m i t t h e i m p o r t a t l o n
o f cheap raw m a t e r i a l s on t h e b a s i s o f a
h i g h e r r a t e o f e x p l o i t a t i o n ( w h i c h presumes,
by t h e way, c e r t a i n i m m o b i l i t i e s t o l a b o u r
power, s u c h as t h a t imposed b y s l a v e r y ) .
Colonies o f t h e f i r s t s o r t e x i s t i n a
v e r y d i f f e r e n t r e l a t i o n t o t h e c a p i t a l i s t mode
o f p r o d u c t i o n , however:
"There t h e c a p i t a l i s t regime e v e r y -
where comes i n t o c o l l i s i o n w i t h t h e r e -
s i s t a n c e o f t h e p r o d u c e r , who, a s owner
o f h i e own c o n d i t i o n s o f labour, em-
p l o y s t h a t labour t o e n r i c h h i m s e l f ,
i n s t e a d of t h e c a p i t a l i s t . The c o n t r a -
d i c t i o n o f t h e s e two d i a m e t r i c a l l y
opposed economic a y s t e m s , m a n i f e s t s
i t s e l f here p r a c t i c a l l y i n a s t r u g g l e
between them. !?here t h e c a p i t a l i s t has
a t h i s back t h e power o f t h e mother-
c o u n t r y , he t r i e s t o c l e a r o u t o f his
way by f o r c e , t h e modes o f p r o d u c t i o n
and a p p r o p r i a t i o n , based on t h e i n d e -
pendent labour o f t h e producer"
(CapitaZ, 1, p . 765).
C o l o n i e s made up o f s m a l l i n d e p e n d e n t p r o -
d u c e r s , t r a d i n g some s u r p l u s i n t o t h e m a r k e t ,
a r e t y p i c a l l y c h a r a c t e r i z e d by l a b o r s h o r t -
ages and a h i g h wage r a t e w h i c h i s n o t a t t r a c -
t i v e t o the c a p i t a l i s t form o f e x p l o i t a t i o n
( t h i s i s p a r t i c u l a r l y t h e c a s e where t h e r e i s
an abundance o f f r e e l a n d f o r s e t t l e m e n t ) .
Commodity p r o d u c t i o n does n o t e x i s t i n t h e
c o m p l e t e c a p i t a l i s t sense. C o l o n i a l f o r m s o f
t h i s s o r t may be, t h e r e f o r e , j u s t as r e s i s -
t a n t t o t h e p e n e t r a t i o n o f t h e c a p i t a l i s t mode
o f p r o d u c t i o n as t r a d i t i o n a l more l o n g -
established non-capitalist societies. But
s i n c e such n o n - c a p i t a l i s t c o l o n i e s a r e c r e a t e d
b y s p i n - o f f s o f s u r p l u s p o p u l a t i o n and s m a l l
q u a n t i t i e s o f c a p i t a l f r o m t h e c e n t r e s o f ac-
c u m u l a t i o n , and s i n c e t h e y a l s o f o r m m a r k e t s
f o r c a p i t a l i s t p r o d u c t i o n , t h e y a r e t o be
v i e w e d as b o t h t h e r e s u l t o f p a s t a c c u m u l a t i o n
and a p r e c o n d i t i o n f o r f u r t h e r c a p i t a l accumu-
l a t i o n . The U n i t e d S t a t e s p r i o r t o t h e C i v i l
War, f o r example, p r o v i d e d an i m p o r t a n t , l a r g e -
l y n o n - c a p i t a l i s t market f o r t h e r e a l i z a t i o n
o f commodities produced under c a p i t a l i s t s o c i a l
relations i n Britain.
The f i n a l s t a g e o f c a p i t a l i s t p e n e t r a t i o n
i s t h a t w h i c h comes w i t h t h e o r g a n i z a t i o n o f
production along c a p i t a l i s t lines. I n 1867
Marx n o t e d how t h e U n i t e d S t a t e s was b e i n g
t r a n s f o r m e d f r o m an i n d e p e n d e n t , l a r g e l y non-
c a p i t a l i s t , p r o d u c t i o n s y s t e m i n t o a new
centre f o r c a p i t a l accumulation. "Capitalistic
p r o d u c t i o n advances t h e r e w i t h g i a n t s t r i d e s ,
even t h o u g h t h e l o w e r i n g o f wages and t h e d e -
pendence o f t h e wage w o r k e r a r e l e t f a r f r o m
b e i n g down t o t h e European l e v e l ( C a p i F a l , 1,
p. 7 7 3 ) . Marx e x p e c t e d a s i m i l a r t r a n s orma-
t f o n i n India:
"when you have once i n t r o d u c e d machinery
i n t o t h e locomotion o f a c o u n t r y , which
pOSSeSSe8 i r o n and Coals, Y O U a r e unable
t o w i t h h o l d i t from i t 8 f a b r i c a t i o n .
You cannot m a i n t a i n a n e t o f r a i l w a y s
o v e r an immense c o u n t r y w i t h o u t i n t r o -
ducing a l l t h o s e i n d u s t r i a l p r o c e s s e s
n e c e s s a r y t o meet t h e immediate and c u r -
r e n t wants o f r a i l w a y l o c o m o t i o n , and
o u t o f which t h e r e must grow t h e a p p l i c a -
t i o n o f machinery t o t h o s e branches o f
16
i n d u s t r y n o t i m m e d i a t e l y conneoted w i t h
r a i l w a y s . The P a i i ? W a Y 8 e y e t e m W i l t
t h e r e f o r e beoome, in I n d i a , t r u l y t h e
f o r e r u n n e r o f modern industry ...fwhioh)
w i l l d i 8 e o l V e t h e h e r e d i t a r y divisions
o f l a b o u r , upon whioh r e s t t h e I n d i a n
C a s t e s , tho88 deUi8iVe impediments t o
I n d i a n p r o g r e s s and I n d i a n power.
The b o u r g e o i s p e r i o d o f h i e t o r y has t o
...
o r e a t e t h e m a t e r i a l b a s i s o f t h e new
world ... Bourgeois i n d u s t r y and oommeroe
create there material conditione o f a
new world i n t h e same way t h a t g e o l o g i -
c a l r e v o Z u t i o n 8 have c r e a t e d t h e e u r f a c e
o f t h e e a r t h " (On C o l o n i a l i s m , p p . 8 6 - 7 1 .
Such a t r a n s f o r m a t i o n d i d n o t o c c u r i n
I n d i a b u t i t d i d i n t h e U n i t e d S t a t e s . The
f a i l u r e t o p r e d i c t c o r r e c t l y i n t h e I n d i a n case
has n o b e a r i n g w h a t s o e v e r on t h e v a l i d i t y o f
t h e Marxian t h e o r y o f accumulation under t h e
c a p i t a l i s t mode o f p r o d u c t i o n . A l l t h e t h e o r y
s a y s i s t h a t c a p i t a l i s m i s bound t o expand
t h r o u g h b o t h an i n t e n s l f i c a t f o n o f r e l a t i o n -
ships i n the centres o f c a p i t a l i s t production
and a geographical e x t e n s i o n o f those r e l a t i o n -
s h i p s i n space. The t h e o r y does n o t p r e t e n d t o
p r e d i c t where, when and e x a c t l y how t h e s e i n -
t e n s i f i c a t i o n s and g e o g r a p h i c a l e x t e n s i o n s w i l l
occur -- the l a t t e r are a matter f o r concrete
h i s t o r i c a l analyses. Marx's f a i l u r e t o pre-
d i c t c o r r e c t l y i n t h e c a s e o f I n d i a was a
f a i l u r e o f h f s t o r i c a l analysis, n o t o f theory.
B u t i t so happens t h a t t h e r e a r e a l s o
good t h e o r e t i c a l r e a s o n s f o r b e l i e v l n g t h a t
the capita r o d u c t i o n system c o u l d n o t and
c a n n o t becli:tu-n i t s scope. For
t h i s t o be t h e case would r e q u i r e t h e equal-
i z a t i o n o f p r o f i t s , t h r o u g h c o m p e t i t i o n , on a
g l o b a l s c a l e . To b e g i n w i t h , o f c o u r s e , t h e r e
a r e a l l k i n d s o f b a r r i e r s t o be overcome be-
f o r e such an e q u a l i z a t i o n i n p r o f i t r a t e s c o u l d
o c c u r . We w o u l d have t o presume t h e c o m p l e t e
m o b i l i t y o f c a p i t a l and l a b o u r (Ca i t a l 3,
p. 1 9 6 ) a n d a d e q u a t e i n s t i t u t i o n h A g e -
ments ( f C e e t r a d e , u n i v e r s a l money a n d c r e d i t
system, t h e a b o l i t i o n o f a l l laws p r e v e n t i n g
t h e l a b o u r e r s f r o m t r a n s f e r r i n g f r o m one
s p h e r e t o p r o d u c t i o n i , t o a n o t h e r a n d f r o m one
l o c a l i t y t o another, and s o o n ) . Under
c a p i t a l i s m , t h e r e a r e always tendencies push-
i n g i n t h e s e d i r e c t i o n s . F o r example:
"it is o n l y f o r e i g n t r a d e , t h e d e v e l o p -
ment o f t h e market t o a world market,
which causes money t o d e v e l o p i n t o world
money and a b s t r a c t labour i n t o s o c i a l
labour. A b s t r a c t w e a l t h , m l u e , money,
hence a b s t r a c t l a b o u r , d e v e l o p i n t h e
measure t h a t c o n c r e t e labour becomes a
t o t a l i t y o f d i f f e r e n t modes of labour
embracing t h e world market. C a p i t a l i s t
p r o d u c t i o n r e s t s on t h e v a l u e or t h e
t r a n s f o r m a t i o n o f t h e labour embodied i n
t h e p r o d u c t i n t o s o c i a l l a b o u r . But t h i s
is o n l y p o s s i b l e on t h e b a s i s of f o r e i g n
t r a d e and t h e world market. T h i s is a t
once t h e m e - c o n d i t i o n and t h e r e s u l t of
c a p i t a l i s ' t p r o d u c t i o n " ( T h e o r i e s of Sur-
p l u s V a l u e , 3, p . 2 5 3 1 .
The t e n d e n c y o f c a p i t a l i s m , t h e r e f o r e , i s t o
est;blish a u n i v e r s a l s e t o f values, founded
on a b s t r a c t s o c i a l l a b o u r " as d e f i n e d o n a
g l o b a l s c a l e . T h e r e i s , i n l i k e manner, a
tendency f o r c a p i t a l e x p o r t t o e q u a l i z e t h e
r a t e o f p r o f i t on a g l o b a l s c a l e . An accumu-
l a t i o n process i m p l i e s a tendency f o r t h e
penetration o f c a p i t a l i s t social relations i n -
t o a l l a s p e c t s o f p r o d u c t i o n a n d exchange
throughout t h e world.
But d i f f e r e n t organic compositions o f
c a p i t a l between c o u n t r l e s , d i f f e r e n t produc-
t i v i t i e s o f labour according t o natural
differences, the d i f f e r e n t d e f i n i t i o n o f
" n e c e s s i t i e s " a c c o r d i n g t o n a t u r a l and c u l -
t u r a l s i t u a t i o n , mean t h a t t h e s e e q u a l i z a t i o n s
w i l l n o t b e accompanied b y an e o u a l i z a t i o n i n
t h e r a t e o f e x p l o i t a t i o n between c o u n t r i e s
(Ca i t a l 3, pp. 1 5 0 - 1 ) . It follows that "the
f h ' c o u n t r y r e c o v e r s more l a b o u r i n e x -
change f o r l e s s l a b o u r , a l t h o u g h t h i s d i f f e r -
ence, t h i s e x c e s s i s p o c k e t e d , as i n a n y e x -
change b e t w e e n c a p i t a l and l a b o u r , b y a c e r t a i n
class" (u., p. 2 3 8 ) . Marx t h e n n o t e s t h a t :
"Here t h e law of v a l u e undergoes
e s s e n t i a l m o d i f i c a t i o n . The r e l a t i o n -
s h i p between labour days of d i f f e r e n t
c o u n t r i e s may be s i m i l a r to t h a t e x i s t -
i n g between s k i l l e d , complex l a b o u r and
u n s k i l l e d , simple labour w i t h i n a
country. In t h i s case the r i c h e r
c o u n t r y e x p l o i t s t h e p o o r e r one, e v e n
where t h e l a t t e r g a i n s by t h e exchange"
( T h e o r i e s of S u r p l u s V a l u e , 3 , p p . 105-
6).
These a r e t h e k i n d s o f " s p e c i a l f a c t o r s "
w h i c h make o f f o r e i g n t r a d e a v e r y complex
issue, which generate c e r t a i n p e c u l i a r i t i e s i n
t h e t e r m s o f t r a d e between d e v e l o p e d and u n -
developed s o c i e t i e s ( T h e o r i e s o f Surplus Value,
2. pp. 474-5) and w h i c h p r e v e n t any d i r e c t
" l e v e l l i n g o u t o f v a l u e s b y l a b o u r t i m e and
even t h e l e v e l l i n g o u t o f c o s t p r i c e s b y a
general r a t e o f p r o f i t " between d i f f e r e n t
c o u n t r i e s ( I b i d . , p. 201). These k i n d s o f
f a c t o r s a r e p i c k e d up on b y Emmanuel ( 1 9 7 1 )
i n h i s a n a l y s i s o f i m p e r i a l i s m as " u n e q u a l e x -
change. "
These c o m p l e x i t i e s do n o t d e r i v e f r o m t h e
f a i l u r e o f c a p i t a l i s t d e v e l o p m e n t t o overcome
t h e s o c i a l and c u l t u r a l b a r r i e r s t o i t s pene-
t r a t i o n ( a l t h o u g h t h e s e b a r r i e r s can be ex-
ceedingly resistant). They stem, r a t h e r , f r o m
t h e i n h e r e n t c o n t r a d i c t o r y and hence i m p e r f e c t
c h a r a c t e r o f t h e c a p i t a l i s t mode o f p r o d u c t i o n
itself. They a r e t o be i n t e r p r e t e d , t h e r e f o r e ,
as g l o b a l m a n i f e s t a t i o n s o f t h e i n t e r n a l c o n -
tradictions o f capitalism. And u n d e r l y i n g a l l
o f these manifestations i s t h e f a c t t h a t
c a p i t a l i s m u l t i m a t e l y becomes t h e g r e a t e s t
b a r r i e r t o i t s own d e v e l o p m e n t . L e t us c o n -
s i d e r how t h i s i s m a n i f e s t on t h e w o r l d s t a g e .
C a p i t a l i s m c a n escape i t s own c o n t r a d i c -
t i o n o n l y t h r o u g h expanding. Expansion i s
simultaneously i n t e n s i f i c a t i o n ( o f social
wants and needs, o f p o p u l a t i o n t o t a l s , and t h e
l i k e ) and e o g r a p h i c a l e x t e n s i o n . F r e s h room
f o r a c c u m u f a t i o n m u s t e x i s t o r be c r e a t e d i f
capitalism i s t o survive. I f the c a p i t a l i s t
mode o f p r o d u c t i o n d o m i n a t e d i n e v e r y r e s p e c t ,
i n e v e r y s p h e r e and i n a l l p a r t s o f t h e w o r l d ,
t h e r e w o u l d be l i t t l e o r no room l e f t f o r
f u r t h e r a c c u m u l a t i o n ( p o p u l a t i o n g r o w t h and
t h e c r e a t i o n o f new s o c i a l w a n t s and needs
w o u l d be t h e o n l y o p t i o n s ) . Long b e f o r e such
a s i t u a t i o n was r e a c h e d t h e a c c u m u l a t i o n p r o -
cess would slow. S t a g n a t i o n would s e t i n
a t t e n d e d b y a w h o l e gamut o f economic and
s o c i a l problems. I n t e r n a l checks w i t h i n t h e
c a p i t a l i s t mode o f p r o d u c t i o n w o u l d b e g i n t o
be f e l t p a r t i c u l a r l y i n t h e s p h e r e o f c o m p e t i -
tion:
"As long a s c a p i t a l i s weak, i t s t i l l
i t s e l f r e l i e s on t h e c r u t c h e s of p a s t
modes of p r o d u c t i o n , or of t h o s e which
w i l l p a s s w i t h i t s r i s e . As soon a s i t
f e e l s s t r o n g , i t throws away t h e c r u t c h e s
and moves i n accordance w i t h i t s own l a w s .
As soon a s i t b e g i n s t o s e n s e i t s e l f and
becomes c o n s c i o u s o f i t s e l f a s a b a r r i e r
t o d e v e l o p m e n t , i t s e e k s r e f u g e i n forms
which, by r e s t r i c t i n g f r e e c o m p e t i t i o n ,
seem t o make t h e r u l e of c a p i t a l more p e r -
f e c t , b u t a r e a t t h e same t i m e t h e h e r a l d s
17
of i t s d i s s o l u t i o n and of t h e d i s s o l u t i o n
of t h e mode of p r o d u c t i o n r e s t i n g on i t "
( G r u n d r i s s e , p . 651).
IV. SOME COMMENTS ON THE THEORY OF IMPERIALISM
Marx h i m s e l f n e v e r p r o p o s e d a t h e o r y o f
imperialism. I n h i s comments o n t r a n s p o r t a t i o n
r e l a t i o n s , l o c a t i o n t h e o r y and f o r e i g n t r a d e he
c l e a r l y i n d i c a t e s , however, t h a t he has i n m i n d
some s o r t o f g e n e r a l t h e o r y o f c a p i t a l accumu-
l a t i o n on an e x p a n d i n g and i n t e n s i f y i n g geo-
g r a p h i c a l s c a l e . We have, i n t h e p r e c e e d i n g
t w o s e c t i o n s . a l r e a d y s k e t c h e d i n some o f t h e
main f e a t u r e s o f t h a t general t h e o r y , t o t h e
e x t e n t t h a t Marx a r t i c u l a t e d i t .
The t h e o r y o f i m p e r i a l i s m w h i c h has
emerged p o s t - M a r x o b v i o u s l y has s o m e t h i n g t o
c o n t r i b u t e t o w a r d s an u n d e r s t a n d i n g o f t h a t
g e n e r a l t h e o r y and t h e r e f o r e t o an u n d e r s t a n d -
i n g o f t h e ways i n w h i c h c a p i t a l i s m c r e a t e s
f r e s h room f o r a c c u m u l a t i o n . The t r o u b l e i s ,
however, t h a t t h e r e i s n o t one t h e o r y o f
i m p e r i a l i s m , b u t a whole h o s t o f representa-
tions o f the matter -- Marxist, neo-Marxist,
K e y n e s i a n , n e o - c l a s s i c a l and s o on. And t h e r e
a r e i n n u m e r a b l e d i v e r g e n c e s and d i f f e r e n c e s
w i t h i n e a c h s c h o o l ( B a r r a t t Brown, 1974, p r o -
vides a general overview). I shall confine
m y s e l f t o some g e n e r a l comments.
The p r o b l e m f o r t h e M a r x i s t s and neo-
M a r x i s t s , i t i s g e n e r a l l y argued, i s t o d e r i v e
a t h e o r y o f i m p e r i a l i s m o u t o f Marx. And i t
i s g e n e r a l l y a g r e e d t h a t no one has y e t s u c -
ceeded i n d o i n g so a l t h o u g h many h a v e t r i e d .
There i s a f a i r l y s i m p l e e x p l a n a t i o n f o r t h i s
s t a t e o f a f f a i r s . Marx c o n s t r u c t e d a t h e o r y
o f a c c u m u l a t i f n fo: a c a p i t a l i s t mode o f p r o -
duction i n a pure s t a t e w i t h o u t reference t o
any p a r t i c u l a r h i s t o r i c a l s i t u a t i o n . On t h i s
b a s i s , as we have seen, he d e m o n s t r a t e s t h e
n e c e s s i t y f o r i n t e n s i f i c a t i o n and e x p a n s i o n
as a c o n c o m i t a n t o f a c c u m u l a t i o n . The t h e o r y
o f i m p e r i a l i s m , as i t i s u s u a l l y c o n c e i v e d
o f i n t h e l i t e r a t u r e i s , b y way o f c o n t r a s t ,
a theory o f history. I t i s t o b e used t o e x -
p l a i n t h e h i s t o r i c a l development o f c a p i t a l i s t
s o c i a l f o r m a t i o n s on t h e w o r l d s t a g e . I t has
t o a d d r e s s t h e way i n w h i c h c o n f l i c t i n g f o r c e s
and c l a s s i n t e r e s t s r e l a t e t o each o t h e r i n
s p e c i f i c h i s t o r i c a l s i t u a t i o n s , determine out-
comes t h r o u g h t h e i r i n t e r a c t i o n s and t h e r e b y
set the preconditions f o r the next stage i n
the evolution o f c a p i t a l i s t social formations.
4 a r x n e v e r c o n s t r u c t e d such a n h i s t o r i c a l
t h e o r y , a l t h o u g h t h e r e i s some e v i d e n c e t h a t
h e i n t e n d e d t o do so i n u n w r i t t e n books on t h e
S t a t e , F o r e i g n T r a d e and t h e W o r l d M a r k e t
( M a r x - E n g e l s C o r r e s p o n d e n c e , pp. 112-3).
M a r x ' s t h e o r y o f t h e c a p i t a l i s t mode o f
p r o d u c t i o n p l a i n l y c a n n o t be u s e d as t h e b a s i s
f o r d e r i v i n g an h i s t o r i c a l l y s p e c i f i c t h e o r y
o f i m p e r i a l i s m i n a n y d i r e c t manner. Yet, as
we have seen i n t h e p r e c e e d i n g s e c t i o n on
f o r e i g n trade, Marx's t h e o r e t i c a l i n s i g h t s
i n t e r s e c t w i t h h i s t o r i c a l analyses a t c e r t a i n
points. And t h e c r u c i a l m e d i a t i n g i n f l u e n c e .
w h i c h m o s t o f t h e w r i t e r s on i m p e r i a l i s m
i g n o r e , i s t h e n e c e s s a r y t e n d e n c y t o overcome
s p a t i a l b a r r i e r s and t o a n n i h i l a t e space w i t h
time -- t e n d e n c i e s w h i c h Marx d e r i v e s d i r e c t l y
from t h e theory o f accumulation. Marx's
theories o f transportation relations, loca-
t i o n and g e o g r a p h i c a l c o n c e n t r a t i o n , e x p a n d i n g
spheres o f r e a l i z a t i o n -- i n s h o r t t h e gener-
a l t h e o r y o f a c c u m u l a t i o n on a n e x p a n d i n g and
i n t e n s i f y i n g geographical scale -- i n fact
c o m p r i s e M a r x ' s own t h e o r y o f i m p e r i a l i s m
( a l t h o u g h he d i d n o t c a l l i t t h a t ) . Since
m o s t w r i t e r s i g n o r e t h i s g e n e r a l t h e o r y embed-
ded i n Marx i t w o u l d a p p e a r t h a t t h i s p r o v i d e s
us w i t h t h e m i s s i n g l i n k between M a r x ' s t h e o r y
o f accumulation and t h e v a r i o u s t h e o r i e s o f
i m p e r i a l i s m t h a t have been p u t f o r w a r d s i n c e .
B u t even h e r e we c a n n o t make d i r e c t d e r i -
vations. M a r x ' s g e n e r a l t h e o r y t e l l s us o f
t h e n e c e s s i t y t o expand a n d i n t e n s i f y geo-
graphically. B u t i t does n o t t e l l us e x a c t l y
how, when o r where. Looking a t t h e i n t e r -
s e c t i o n o f t h e s e g e n e r a l arguments w i t h c o n -
c r e t e h i s t o r i c a l a n a l y s e s , we w i l l u s u a l l y be
able t o i d e n t i f y the underlying l o g i c dictated
by c a p i t a l a c c u m u l a t i o n a t w o r k . But t h e
u n d e r l y i n g l o g i c does n o t , and i n d e e d c a n n o t
u n i q u e l y d e t e r m i n e outcomes. The l a t t e r have
t o be understood i n terms o f t h e balance o f
forces -- economic, s o c i a l , p o l i t i c a l , i d e o l o -
g i c a l , c o m p e t i t i v e , l e g a l , m i l i t a r y , and t h e
like -- t h r o u g h w h i c h i n t e r e s t g r o u p s and
c l a s s e s become c o n s c i o u s o f t h e c o n t r a d i c t o r y
u n d e r l y i n g l o g i c and seek b y t h e i r a c t i o n s t o
" f i a h t i t o u t " t o some s o r t o f r e s o l u t i o n
(cf: A C o n t r i b u t i o n t o t h e C r i t i q u e o f P o l i t i -
c a l Economy, p. 2 1 ) . To s p e c i f y t h e r e l a t i o n -
s h i p s between t h e M a r x i a n t h e o r y o f a c c u m u l a -
t i o n and t h e t h e o r y o f i m p e r i a l j s m as i t i s
u s u a l l y c o n s t r u e d poses, t h e r e f o r e , a d o u b l e
difficulty. We have t o s p e c i f y how t h e
" i n n e r l o g i c " o f t h e c a p i t a l i s t mode o f p r o -
d u c t i o n , a b s t r a c t l y conceived, r e l a t e s t o t h e
c o n c r e t e r e a l i t i e s , t h e phenomenal forms, o f
t h e h i s t o r i c a l process. And we a l s o have to
t a k e account of t h e m e d i a t i n g i n f l u e n c e o f
p o l i t i c a l , i d e o l o g i c a l , m i l i t a r y and o t h e r
s t r u c t u r e s which, a l t h o u g h t h e y must be
g e n e r a l l y o r g a n i z e d s o as t o be c o h e r e n t w i t h
t h e course o f c a p i t a l accumulation, a r e n o t
u n i q u e l y d e t e r m i n e d by i t .
Most a n a l y s e s o f i m p e r i a l i s m u s u a l l y s t a r t
i n f a c t from t h e analysis o f a c t u a l h i s t o r i c a l
situations. This i s p a r t i c u l a r l y true i n the
work o f T h i r d W o r l d w r i t e r s , such as Fanon
( 1 9 6 7 ) , Amin ( 1 9 7 3 ) and F r a n k ( 1 9 6 9 ) , whose
s t a r t i n g p o i n t i s t h e experience of domination
and e x p l o i t a t i o n b y t h e advanced c a p i t a l i s t
countries. This experience i s then p r o j e c t e d
i n t o t h e Marxian framework f o r u n d e r s t a n d i n g
e x p l o i t a t i o n i n general. The consequence o f
t h i s i s a variety o f representations o f the
Marxian theory o f imperialism. Each r e p r e -
s e n t a t i o n may be a c c u r a t e f o r i t s own p l a c e
and t i m e , b u t e a c h ends u p d r a w i n g upon j u s t
one o r t w o f a c e t s o f M a r x ' s own t h e o r y o f
c a p i t a l accumulation f o r support. By i m p l i c a -
t i o n , a n d sometimes q u i t e e x p l i c i t l y , i t i s
suggested t h a t o t h e r f a c e t s o f Marx's t h e o r y o f
a c c u m u l a t i o n a r e e i t h e r i r r e l e v a n t o r wrong.
Luxemburg ( 1 9 6 8 ) i s an e x c e l l e n t c a s e i n
point. She b e g i n s h e r a n a l y s i s w i t h a concen-
t r a t e d c r i t i c i s m o f M a r x ' s r e p r o d u c t i o n schemes
i n Volume 2 o f Ca i t a l and, r e a c t i n g v e r y
strongly t o t h e d k 7 m p l i e d there t h a t capi-
t a l i s t a c c u m u l a t i o n can c o n t i n u e i n p e r p e t u i t y ,
she seeks t o show t h a t Marx had f a i l e d t o demon-
s t r a t e where t h e e f f e c t i v e demand f o r commodi-
t i e s was t o come f r o m i f a c c u m u l a t i o n was t o
be sustained. L u x e m b u r g ' s own s o l u t i o n i s t h a t
t h e e f f e c t i v e demand has t o b e f o u n d o u t s i d e o f
t h e c a p i t a l i s t s y s t e m i n p r e - c a p i t a l i s t econom-
i c formations. I m p e r i a l i s m i s t o be e x p l a i n e d
as " t h e p o l i t i c a l e x p r e s s i o n o f t h e a c c u m u l a -
t i o n o f capital i n i t s competitive struggle
f o r what s t i l l r e m a i n s open o f t h e n o n -
c a p i t a l i s t e n v i r o n m e n t " (Luxemburg, 1968, p.
446). As e v i d e n c e , Luxemburg assembles d e s -
c r i p t i o n s o f t h e v i o l e n t p e n e t r a t i o n o f non-
c a p i t a l i s t s o c i e t i e s , s u c h as China, b y c a p i -
t a l i s t s i n s e a r c h o f m a r k e t s as w e l l as des-
criptions o f the various imperialist r i v a l r i e s
amongst t h e c a p i t a l i s t powers t h r o u g h o u t t h e
w o r l d.
L u x e m b u r g ' s argument i s , i n many r e s p e c t s ,
b o t h c o m p e l l i n g and b r i l l i a n t . But her analy-
s i s amounts t o a o n e - s i d e d d e v e l o p m e n t o u t o f
18
Marx. The o b j e c t i o n i s n o t t h a t she i s wrong
-- i n d e e d , we have a l r e a d y seen t h a t c a p i t a l i s t
d e v e l o p m e n t may become c o n t i n g e n t upon o t h e r
modes o f p r o d u c t i o n , t h a t t h e p e n e t r a t i o n and
disruption o f non-capitalist !ocieties are
i m p l i e d b y t h e i m f e r a t i v e t o t e a r down
spatial barriers, and t h a t v i o l e n c e , m a k i n g
u s e o f s t a t e power, c a n e a s i l y b e r e s o r t e d t o .
The o b j e c t i o n i s t h a t Luxemburg sees t h e con-
sequences o f t h e i m p e r a t i v e t o a c c u m u l a t e
s o l e l l i n these terms. The o t h e r means where-
b y c a p i t a l i s m c a n c r e a t e f r e s h room f o r accumu-
l a t i o n a r e ignored.
Read a s a t h e o r e t i c a l t r e a t i s e on what m u s t
happen i f a l l o t h e r means f o r c r e a t i n g f r e s h
room f o r a c c u m u l a t i o n a r e s e a l e d o f f ,
L u x e m b u r g ' s work i s a b r i l l i a n t e x p o s i t i o n .
Read as a d o c u m e n t a t i o n o f how t h e l o g i c o f
c a p i t a l i s t accumulation underlies t h e penetra-
t i o n and d i s r u p t i o n o f n o n - c a p i t a l i s t s o c i e -
t i e s , t h e work i s compelling. B u t r e a d as a
derivation o f the necessity f o r imperialism
o u t o f a c o r r e c t i o n o f Marx's e r r o r s i n h i s
specification o f c a p i t a l i s t reproduction,
L u x e m b u r g ' s work i s b o t h e r r o n e o u s and m i s c o n -
ceived. To p u t t h e c r i t i c i s m t h i s way i s n o t
t o say, however, t h a t t h e p r o c e s s e s t o w h i c h
Luxemburg draws a t t e n t i o n may n o t become, a t a
certain stage i n c a p i t a l i s t history. v i t a l t o
the perpetuation o f the c a p i t a l i s t order.
Whether o r n o t t h i s t u r n s o u t t o b e t h e c a s e
depends, however, upon t h e c a p a c i t y o f t h e
c a p i t a l i s t s y s t e m t o c r e a t e f r e s h room f o r
a c c u m u l a t i o n b y o t h e r means.
The r e p r e s e n t a t i o n o f i m p e r i a l i s m i n t h e
w o r k s o f B a r a n ( 1 9 5 7 ) and F r a n k ( 1 9 6 9 ) c a n be
c o n s i d e r e d i n a s i m i l a r way. Clearly implied
i n M a r x ' s l o c a t i o n t h e o r y i s t h e emergence o f
a general s t r u c t u r e o f center-periphery r e l a -
t i o n s i n p r o d u c t i o n and exchange, w h i l e t h e
t e a r i n g down of s p a t i a l b a r r i e r s t o exchange
may c r e a t e d e p e n d e n c r and " t r a n s f o r m n e c e s -
s a r i e s i n t o l u x u r i e s f o r t h e economy n e w l y
b r o u g h t i n t o t h e m e t a b o l i s m o f exchange. These
k i n d s o f r e l a t i o n s h i p s a r e examined i n d e t a i l
i n t h e w o r k o f B a r a n and F r a n k and t h e y c a n
r e l a t i v e l y e a s i l y be i n t e g r a t e d i n t o t h e
M a r x i a n f r a m e when t h e l o g i c o f a c c u m u l a t i o n
i s p r o j e c t e d i n t o an a c t u a l h i s t o r i c a l s i t u a -
tion. B a r a n and F r a n k a r e t h e r e f o r e on s t r o n g
t h e o r e t i c a l g r o u n d s when t h e y c l a i m t h a t b a c k -
wardness and u n d e r d e v e l o p m e n t c a n and m u s t be
produced and p e r p e t u a t e d by t h e p e n e t r a t i o n o f
capitalist social relations into non-capitalist
economles. They may a l s o be on s t r o n g f a c t u a T
g r o u n d s when t h e y c l a i m t h a t t h i s i s t h e g e n e r -
a l r e l a t i o n s h i p which e x i s t s between t h e T h i r d
W o r l d and t h e m e t r o p o l i t a n c e n t r e s o f accumula-
tion. B u t , as w i t h t h e work o f Luxemburg, t h e
a n a l y s i s has t o be r e g a r d e d as a s i n g l e - f a c e t e d
d e v e l o p m e n t o u t o f M a r x ' s t h e o r y o f accumula-
tion. I t would be b o t h erroneous and miscon-
c e i v e d t o r e g a r d t h i s d e v e l o p m e n t e i t h e r as a
c o r r e c t i o n t o or a u n i q u e d e r i v a t i o n o u t o f
Marx. F r e s h room f o r a c c u m u l a t i o n c a n b e
c r e a t e d by a v a r i e t y o f strategems i n a c t u a l
h i s t o r i c a l s i t u a t i o n s . Whether o r n o t a
d i f f e r e n t s t r u c t u r e o f r e l a t i o n s t o t h a t ex-
p l o r e d b y B a r a n and F r a n k i s p o s s i b l e depends
-
n o t on t h e t h e o r y b u t on t h e p o s s i b i l i t i e s c o n -
tained i n actual h i s t o r i c a l situations.
Lenin's contribution t o the Marxist theory
o f i m p e r i a l i s m i s , o f course, fundamental. And
i n some r e s p e c t s i t i s t h e m o s t i n t e r e s t i n g
b o t h w i t h r e s p e c t t o i t s c o n t e n t and i t s method.
Lenin d i d n o t attempt t o derive the theory out
o f Marx. He r e g a r d e d t h e phenomena o f i m p e r i a l -
i s m as s q m e t h i n g t o b e r e v e a l e d b y m a t e r i a l i s t
h i s t o r i c a l analysis. S p e c i f i c a l l y , he was c o n -
c e r n e d t o : x p l a i n t h e 1914-18 w a r as an i m p e r i -
a l i s t war f o r t h e d i v i s i o n o f t h e w o r l d , f o r
t h e p a r t i t i o n and r e p a r t i t i o n o f c o l o n i e s and
spheres o f i n f l u e n c e . o f f i n a n c e c a p i t a l , e t c . "
( L e n i n , 1963, p. 6 7 3 ) . The method i s t h e r e -
f o r e h i s t o r i f ; a l and L e n i n uses t h e t e r m
i m p e r i a l i s m t o describe t h e general charac-
t e r i s t i c s o f t h e phenomenal f o r m assumed by
capitalism during a p a r t i c u l a r stage o f i t s
development -- specffically, during the l a t e
n i n e t e e n t h and e a r l y t w e n t i e t h c e n t u r i e s . In
t h i s he r e l i e s v e r y h e a v i l y on t h e w o r k o f a
n o n - M a r x i s t , Hobson ( 1 9 3 8 ) . Yet L e n i n a l s o
seeks t o un:over " t h e economic e s s e n c e o f
i m p e r f a l i s m and t o r e l a t e t h e u n d e r s t a n d i n g
o f t h e phenomenal a p p e a r a n c e o f i m p e r i a l i s m t o
Marx's t h e o r e t i c a l i n s i g h t s i n t o t h e nature o f
t h e c a p i t a l i s t mode o f p r o d u c t i o n .
The phenomenal a p p e a r a n c e o f c a p i t a l i s m
i n t h e i m p e r i a l i s t stage o f i t s development
i s summarized i n t e r m s o f f i v e b a s i c f e a t u r e s :
( 1 ) t h e c o n c e n t r a t i o n of p r o d u c t i o n and
c a p i t a l has d e v e l o p e d t o such a h i g h
s t a g e t h a t i t has c r e a t e d monopolies
which p l a y a d e c i s i v e r o l e i n economic
l i f e ; (2) t h e merging of bank c a p i t a l
w i t h i n d u s t r i a l c a p i t a l , and t h e c r e a -
t i o n , on t h e b a s i s of t h i s " f i n a n c e
c a p i t a l , of a f i n a n c i a l o l i g a r c h y ;
(3) t h e e x p o r t of c a p i t a l a s d i s t i n -
g u i s h e d from t h e e x p o r t of commodities
a c q u i r e s e x c eptional importance; ( 4 1
t h e f o r m a t i o n o f i n t e r n a t i o n a l mono-
p o l i s t a s s o c i a t i o n s which s h a r e t h e
worZd among t h e m s e l v e s , and ( 5 ) t h e
t e r r i t o r i a l d i v i s i o n of t h e whole
w o r l d among t h e b i g c a p i t a l i s t powers
i s completed (Lenin, 1963, p . 7 3 7 ) .
The t e n d e n c y t o w a r d s c o n c e n t r a t i o n and
c e n t r a l i z a t i o n o f c a p i t a l i s , i n Marx's
a n a l y s i s , i n t e g r a l t o t h e general process o f
a c c u m u l a t i o n ( C a p i t a l , 1, C h a p t e r 2 5 ) . The
physical concentration o f production t o
a c h i e v e economies o f s c a l e i n a l o c a t i o n a l
sense i s a l s o , i n M a r x ' s t h e o r y , p a r a l l e l e d
by a g r o w i n g c e n t r a l i z a t i o n o f c a p i t a l . L e n i n
a l s o grounds t h e l o g i c o f c a p i t a l e x p o r t i n
Marx's theory. He r e b u t s t h e argument t h a t
c a p i t a l i s m c o u l d e v e r achieve an equal develop-
ment i n a l l s p h e r e s o f p r o d u c t i o n o r a l l e v i a t e
t h e m i s e r y o f t h e mass o f w o r k e r s :
"If c a p i t a l i s m d i d t h e s e t h i n g s i t
would n o t be c a p i t a l i s m ; f o r b o t h un-
e v e n development and a s e m i - s t a r v a t i o n
l e v e l of e x i s t e n c e of t h e masses a r e
fundamental and i n e v i t a b l e c o n d i t i o n s
and c o n s t i t u t e t h e p r e m i s e s of t h i s
mode of p r o d u c t i o n . As long a s c a p i -
t a l i s m remains what i t i s , surplus
c a p i t a l w i l l be u t i l i z e d n o t f o r t h e
p u r p o s e of r a i s i n g t h e s t a n d a r d of
l i v i n g of t h e masses i n a g i v e n coun-
t r y , f o r t h i s would mean a d e c l i n e i n
p r o f i t s f o r the c a p i t a l i s t s , but f o r
t h e p u r p o s e of i n c r e a s i n g p r o f i t s by
e x p o r t i n g c a p i t a l abroad t o t h e b a c k -
ward c o u n t r i e s . I n t h e s e backward
c o u n t r i e s p r o f i t s are usually high,
f o r c a p i t a l i s s c a r c e , t h e p r i c e of
land i s r e l a t i v e l y low, wages a r e low,
raw m a t e r i a l s a r e cheap ... The e x -
p o r t of c a p i t a l i n f l u e n c e s and g r e a t -
l y a c c e l e r a t e s t h e development of
c a p i t a l i s m i n t h o s e c o u n t r i e s t o which
i t i s e x p o rted. While, t h e r e f o r e , the
e x p o r t of c a p i t a l may t e n d t o a c e r -
t a i n e x t e n t t o a r r e s t development i n
the capital-exporting countries, i t
can o n l y do s o by expanding and d e e p e n -
i n g t h e f u r t h e r development of c a p i t a l -
ism throughout t h e w o r l d " ( L e n i n , 1 9 6 3 ,
p p . 716-8).
L e n i n i s here emphasizing c e r t a i n o f t h e
p o s s i b i l i t i e s contained i n the Marxian theory
o f c a p i t a l i s t a c c u m u l a t i o n when p r o j e c t e d
19
i n t o an a c t u a l h i s t o r i c a l s i t u a t i o n . Plainly,
he i s n o t e x c l u d i n g t h e d e v e l o p m e n t o f c a p i t a l -
i s t p r o d u c t i o n i n new c e n t r e s , a l t h o u g h t h e
c a r v i n g up o f t h e w o r l d i n t o s p h e r e s o f i n -
f l u e n c e w i t h c e n t r e s o f a c c u m u l a t i o n and
f p h e r e s tf r e a l i z a t i o n i s r e g a r d e d as a
managed r a t i o n a l i z a t i o n , a c c o m p l i s h e d b y
f i n a n c e c a p i t a l i s m through p o l i t i c a l manipula-
t i o n s , o f t h e i n e v i t a b l e uneven d e v e l o p m e n t o f
c a p i t a l i s m . B u t L e n i n a l s o argues t h a t i m -
p e r i a l i s m " c a n and m u s t b e d e f i n e d d i f f e r e n t l y
i f we b e a r i n m i n d n o t o n l y t h e b a s i c , p u r e l y
economic c o n c e p t s ... but also the historical
place o f t h i s stage o f c a p i t a l i s m i n r e l a t i o n
t o c a p i t a l i s m i n general, o r t h e r e l a t i o n
b e t w e e n i m p e r i a l i s m and t h z t w o m a i n t r e n d s i n
t h e w o r k i n g c l a s s movement (u., p. 737).
I m p e r i a l i s m t h u s has t h e e f f e c t o f " e x p o r t i n g "
some o f t h e t e n s i o n s c r e a t e d b y t h e c l a s s
s t r u g g l e w i t h i n t h e c e n t r e s o f accum;lation to
p e r i p h e r a l areas. The " s u p e r p r o f i t s o f
i m p e r i a l i s t e x p l o i t a t i o n make i t " p o s s i b l e
t o b r i b e t h e l a b o u r l e a d e r s and t h e u p p e r
s t r a t u m o f t h e l a b o u r a r i s t o c r a c y . And t h a t
i s j u s t w h a t t h e c a p i t a l i s t s o f t h e "advanced"
c o u n t r i e s a r e d o i n g " ( I b i d . , p. 6 7 7 ) . This
l a s t a s p e c t o f i m p e r i a m has t o be r e g a r d e d
as t h e j o i n t outcome o f t h e i n e v i t a b l e uneven
d e v e l o p m e n t o f c a p i t a l i s m on a w o r l d s c a l e and
a c o r r e s p o n d i n g uneven d e v e l o p m e n t o f t h e c l a s s
struggle. C a p i t a l becomes m o b i l e i n o r d e r t o
escape t h e consequences o f a c l a s s s t r u g g l e
waged a t a p a r t i c u l a r p l a c e and t i m e o r e l s e
i t r e p a t r i a t e s s u p e r p r o f i t s t o buy o f f i t s
home l a b o u r f o r c e w i t h m a t e r i a l advancement.
I n e i t h e r case a geographical expansion o f
development must occur.
Lenin blends concrete h i s t o r i c a l analysis,
based on t h e p r i n c i p l e s o f h i s t o r i c a l m a t e r i a l -
ism, w i t h some f u n d a m e n t a l i n s i g h t s f r o m M a r x ' s
t h e o r y . An e v a l u a t i o n o f L e n i n ' s t h e o r y m u s t
r e s t , t h e r e f o r e , on an assessment o f h i s h i s -
t o r i c a l accuracy and a c r i t i c a l e v a l u a t i o n o f
t h e way i n w h i c h t h e M a r x i a n t h e o r y i n t e r s e c t s
w i t h t h e h i s t o r i c a l m a t e r i a l s . On t h e f o r m e r
score t h e r e a r e grounds f o r t h i n k i n g t h a t
L e n i n ' s r e l i a n c e on Hobson and H i l f e r d i n g l e d
h i m i n t o some f a c t u a l e r r o r s . I n the l a t t e r
r e s p e c t , L e n i n , l i k e m o s t o t h e r w r i t e r s on
i m p e r i a l i s m , develops Marx's general t h e o r y
i n a o n e - s i d e d r a t h e r t h a n an a l l - e m b r a c i n g
manner. As a consequence t h e c o n n e c t i o n t o
t h e theory o f c a p i t a l i s t accumulation i s par-
t i a l l y obscured f r o m view.
The p r o b l e m w i t h t h e M a r x i s t t h e o r y o f
i m p e r i a l i s m i n g e n e r a l , i s t h a t i t has become
a theory "unto i t s e l f , " divorced from Marx's
t h e o r y o f c a p i t a l a c c u m u l a t i o n . As a conse-
quence, t h e a r g u m e n t o v e r what i m p e r i a l i s m i s ,
has d e g e n e r a t e d i n t o an argument o v e r w h i c h
o f s e v e r a l c o m p e t i n g p r i n c i p l e s s h o u l d be u s e d
t o d e f i n e i t . The d e v e l o p m e n t o f p v e r s e a s
m a r k e t s ? The a t t a i n m e n t o f c h e a p e r raw
m a t e r i a l s ? The s e a r c h i n g o u t o f a more e a s i l y
e x p l o i t e d and a more d o c i l e l a b o u r f o r c e ? Is
i t p r i m i t i v e a c c u m u l a t i o n a t t h e expense o f
n o n - c a p i t a l i s t s o c i e t i e s ? Does i t i n v o l v e
c h e a t i n g t h r o u g h exchange? Is i t t h e neces-
s a r y e x p o r t o f c a p i t a l t o s e t up new c e n t r e s
o f i n d u s t r i a l a c c u m u l a t i o n ? Is i t t h e concen-
t r a t i o n o f r e l a t i v e s u r p l u s v a l u e on a l o c a l -
ized basis? I s i t the manifestation o f
monopoly power, e x p r e s s e d t h r o u g h t h e p o l i t i -
c a l o r g a n i z a t i o n o f a system o f n a t i o n s t a t e s ?
I s i t finance c a p i t a l operating through m u l t i -
n a t i o n a l c o r p o r a t i o n s and government c o o p t a -
tion? I s i t simply the international d i v i s i o n
o f l a b o u r ? Is i t a p a r t i c u l a r c o m b i n a t i o n o f
any o f t h e above? Under M a r x ' s g e n e r a l t h e o r y
a l l o f t h e above a r e p o s s i b l e and none a r e t o
be e x c l u d e d . It i s . therefore, the task o f
c a r e f u l h i s t o r i c a l a n a l y s i s t o discover which
o f these m a n i f e s t a t i o n s i s dominant a t a p a r t i -
c u l a r stage o f development o f c a p i t a l i s t s o c i a l
formations. M a r x ' s g e n e r a l t h e o r y does n o t
p r e t e n d t o p r e d i c t p a r t i c u l a r f o r m s and m a n i -
festations. A l l i t does i s t o i n d i c a t e t h e
underlying imperative, contained w i t h i n the
c a p i t a l i s t system, t o a c c u m u l a t e c a p i t a l and
t o do i t , o f n e c e s s i t y , on an e x p a n d i n g and
i n t e n s i f y i n g geographical scale.
T h i s i s n o t t o say t h a t a t h e o r e t i c a l
analysis o f these various manifestations i n
r e l a t i o n t o c a p i t a l accumulation i s impossi-
ble. I n d e e d , a g r e a t d e a l c a n be done h e r e .
And we c a n a l s o p l a c e one b e t . The s u r v i v a l
o f c a p i t a l i s m i s p r e d i c t e d on t h e c o n t i n u e d
a b i l i t y t o a c c u m u l a t e , by w h a t e v e r means i s
easiest. The p a t h o f c a p i t a l i s t a c c u m u l a -
t i o n w i l l move t o w h e r e v e r t h e r e s i s t a n c e i s
weakest. I t i s t h e t a s k o f h i s t o r i c a l and
t h e o r e t i c a l analyses t o i d e n t i f y t h e s e p o i n t s
o f l e a s t r e s i s t a n c e , o f g r e a t e s t weakness.
L e n i n once a d v i s e d a l l r e v o l u t i o n a r y move-
ments t o l o o k f o r t h e w e a k e s t l i n k i n c a p i t a l -
ism. I r o n i c a l l y , c a p i t a l i s m manages, b y t r i a l
and e r r o r and p e r s i s t a n t p r e s s u r e , t o d i s -
c o v e r t h e w e a k e s t l i n k s i n t h e f o r c e s opposed
t o c o n t i n u e d a c c u m u l a t i o n and b y e x p l o i t i n g
t h o s e l i n k s t o open up f r e s h p a s t u r e f o r t h e
bourgeoisie t o accomplish i t s h i s t o r i c a l mis-
sion -- the accumulation o f c a p i t a l .
V. MARX'S THEORY OF C A P I T A L ACCUMULATION ON AN
EXPANDING GEOGRAPHICAL SCALE A S A WHOLE
M a r x ' s t h e o r y o f c a p i t a l a c c u m u l a t i o n on
an e x p a n d i n g g e o g r a p h i c a l s c a l e i s q u i t e com-
p l e x . We have d e l v e d i n t o Marx t o t r y t o d i s -
c o v e r i n h i s w r i t i n g s some o f i t s b a s i c com-
p o n e n t s . B u t t o be a p p r e c i a t e d p r o p e r l y t h e s e
components have t o be seen i n r e l a t i o n b o t h
one t o each o t h e r and t o t h e v a r i o u s m o d e l s
w h i c h Marx d e v i s e d t o u n d e r s t a n d c a p i t a l i s t
p r o d u c t i o n , exchange and r e a l i z a t i o n as a
totality. I n a r a t h e r s p e n d i d passage i n t h e
G r u n d r i s s e ( p p . 4 0 7 - l o ) , Marx p r o v i d e s a k i n d
o f "overview sketch" o f h i s general theory:
The c r e a t i o n by c a p i t a l o f a b s o l u t e
surplus value ... i s c o n d i t i o n a l upon an
expansion, s p e c i f i c a l l y a constant ex-
p a n s i o n , o f t h e s p h e r e of c i r c u l a t i o n
.... A p r e c o n d i t i o n of p r o d u c t i o n based
on c a v i t a t i s t h e r e f o r e t h e v r o d u c t i o n
h e e n c y o n one s i d e t o c r e a t e
e v e r more s u r p l u s l a b o u r , so i t has t h e
complementary t e n d e n c y t o c r e a t e more
p o i n t s of exchange.
From t h i s , o f c o u r s e , we can d e r i v e " t h e t e n d -
ency t o c r e a t e t h e w o r l d market [which] i s
d i r e c t l y g i v e n i n t h e concept o f c a p i t a l n i t -
s e l f " and t h e need, i n i t i a l l y a t l e a s t , to
s u b j u g a t e e v e r y moment o f p r o d u c t i o n i t s e l f t o
exchange and t o suspend t h e p r o d u c t i o n o f
d i r e c t u s e v a l u e s n o t e n t e r i n g i n t o exchange."
Marx t h e n goes on t o say t h a t :
the production of r e l a t i v e s u r p ~ u s
-
v a l u e ...r e q u i r e s t h e p r o d u c t i o n of new
c o n s u m v t i o n ; r e a u i r e s t h a t t h e con-
suming- c i r c i e w i t h i n c i r c u l a t i o n e x -
pands a s d i d t h e p r o d u c t i v e c i r c l e
previously. F i r s t l y q u a n t i t a t i v e ex-
p a n s i o n of e x i s t i n g consumption;
s e c o n d l y , c r e a t i o n of new n e e d s by pro-
p a g a t i n g e x i s t i n g o n e s i n a wide c i r -
c l e ; t h i r d l y , p r o d u c t i o n of net, n e e d s
and d i s c o v e r y and c r e a t i o n o f new u s e
values.
As a r e s u l t o f t h e s e e x p a n s i o n a r y t e n d e n -
cies, capitalism creates:
a system of general e x p l o i t a t i o n of t h e
20
n a t u r a l and human q u a l i t i e s
great civiZiaing influence of capital;
.... Bence t h e
i t s production o f a stage o f society i n
comparieon t o w h i c h a l l e a r l i e r one8
appear a s mere l o c a l d e v e t o v m e n t s of
humanity and a8 n a t u r e i d o l a t o r y . For
t h e f i r s t t i m e , n a t u r e becomes p u r e l y a n
o b j e c t f o r humankind, p u r e l y a m a t t e r of
utility .... In accord w i t h t h i s t e n d e n c y ,
c a p i t a l d r i v e s beyond n a t i o n a l b a r r i e r s
and p r e j u d i c e s a s much a s beyond n a t u r e
w o r s h i p , a s w e l l a s a l l t r a d i t i o n a l , con-
f i n e d , e n c r u s t e d s a t i s f a c t i o n e of p r e s e n t
n e e d s , and r e p r o d u c t i o n s o f o l d ways of
l i f e . I t i s d e s t r u c t i v e towarde a l l o f
t h i s , and c o n s t a n t l y r e v o l u t i o n i z e s i t ,
t e a r i n g down a l l ' t h e b a r r i e r s w h i c h hem
i n t h e d e v e l o p m e n t o f t h e f o r c e s of p r o -
duction, the expansion of needs, t h e a l l -
s i d e d d e v e l o p m e n t o f p r o d u c t i o n , and t h e
e x p l o i t a t i o n and exchange of n a t u r a l and
mental f o r c e s ....
But...since every such b a r r i e r contra-
d i c t s i t s c h a r a c t e r , i t s p r o d u c t i o n moves
i n c o n t r a d i c t i o n s which are c o n s t a n t l y
overcome b u t j u s t a s c o n s t c n t t y p o s i t e d .
Furthermore, t h e u n i v e r s a l i t y towards
which it i r r e s i s t a b l y s t r i v e s encounters
b a r r i e r s i n i t s own n a t u r e , w h i c h w i l t ,
a t a c e r t a i n s t a g e of i t s d e v e l o p m e n t ,
allow i t t o be recogniaed as being i t -
s e l f t h e g r e a t e s t b a r r i e r t o t h i s tend-
e n c y , and hqnce w i l l d r i v e towards i t 8
Own SUSpenSl-OTl."
M a r x ' s s k e t c h does n o t i n c o r p o r a t e a l l o f
t h e e l e m e n t s w h i c h we h a v e i d e n t i f i e d i n t h i s
p a p e r b u t i t does c o n v e y a f e e l i n g f o r w h a t he
had i n m i n d i n c o n s t r u c t i n g a t h e o r y o f accumu-
l a t i o n on an e x p a n d i n g g e o g r a p h i c a l s c a l e .
P l a i n l y , t h e d r i v e t o accumulate l i e s a t t h e
center o f the theory. T h i s d r i v e i s expressed
p r i m a r i l y i n t h e p r o d u c t i o n process t h r o u g h
t h e c r e a t i o n o f a b s o l u t e and r e l a t i v e s u r p l u s
value. But the creation o f value i s contin-
g e n t upon t h e a b i l i t y t o r e a l i z e i t t h r o u g h
circulation. F a i l u r e t o r e a l i z e v a l u e means,
q u i t e simply, t h e negation o f t h e value c r e a t -
ed p o t e n t i a l l y i n p r o d u c t i o n . Thus, i f t h e
s p h e r e o f c i r c u l a t i o n does n o t expand t h e n
a c c u m u l a t i o n comes t o a h a l t . C a p i t a l , Marx
never t i r e s o f emphasizing, i s n o t a t h i n g o r
a s e t o f i n s t i t u t i o n s ; i$ i s a process o f c i r -
c u l a t i o n b e t w e e n p r o d u c t i o n and r e a l i z a t i o n .
T h i s p r o c e s s , w h i c h m u s t expand, m u s t accumu-
l a t e , c o n s t a n t l y r e - s h a p e s t h e work p r o c e s s
and t h e s o c i a l r e l a t i o n s h i p s w i t h i n p r o d u c t i o n
a s i t c o n s t a n t l y changes t h e d i m e n s i o n s and
forms o f c i r c u l a t i o n . Marx h e l p s u s t o u n d e r -
s t a n d these processes t h e o r e t i c a l l y . But
u l t i m a t e l y we have t o b r i n g t h i s t h e o r y t o
b e a r on e x i s t i n g s i t u a t i o n s w i t h i n t h e s t r u c -
ture o f capitallst social relations a t this
p o i n t i n h i s t o r y . We have t o f o r c e an i n t e r -
s e c t i o n between t h e t h e o r e t i c a l a b s t r a c t i o n s ,
on t h e one hand, and t h e m a t e r i a l i s t i n v e s t i -
g a t i o n s o f a c t u a l h i s t o r i c a l c o n f i g u r a t i o n s on
the other. To c o n s t r u c t and r e - c o n s t r u c t
M a r x ' s t h e o r y o f a c c u m u l a t i o n on an e x p a n d i n g
g e o g r a p h i c a l s c a l e as a t o t a l i t y r e q u i r e s s u c h
an i n t e r s e c t i o n . We have i n d e e d t o d e r i v e t h e
theory o f i m p e r i a l i s m o u t o f t h e Marxian
theory o f accumulation. B u t t o do so we have
t o move c a r e f u l l y t h r o u g h t h e i n t e r m e d i a t e
steps. I n M a r x ' s own t h o u g h t i t a p p e a r s t h a t
t h e c r u c i a l i n t e r m e d i a t e s t e p s encompass a
t h e o r y o f l o c a t i o n and an a n a l y s i s o f f i x e d
and i m m o b i l e i n v e s t m e n t ; t h e n e c e s s a r y c r e a -
t i o n o f a geographical landscape t o f a c i l i t a t e
a c c u m u l a t i o n t h r o u g h p r o d u c t i o n and c i r c u l a -
tion. B u t t h e s t e p s f r o m t h e t h e o r y o f accumu-
l a t i o n t o t h e t h e o r y o f i m p e r i a l i s m , o r more
generally t o a theory o f history, are not
s i m p l e m e c h a n i c a l d e r i v a t i o n s because down
t h i s p a t h we h a v e t o a c c o m p l i s h a l s o t h a t
t r a n s f o r m a t i o n from t h e general t o t h e con-
c r e t e which comprised t h e c e n t r a l t h r u s t o f
M a r x ’ s u n f i n i s h e d work. We have t o l e a r n , i n
s h o r t , t o c o m p l e t e t h e p r o j e c t w h i c h Marx
u n d e r s c o r e s a t t h e b e g i n n i n g o f Volume 3 o f
Ca i t a l -- we have t o b r i n g a s y n t h e t i c u n d e r -
dim-- ng o f t h e p r o c e s s e s o f p r o d u c t i o n and
c i r c u l a t i o n u n d e r c i p i t a l i s m t o b e a r on c a p i -
t a l i s t h i s t o r y and t h u s a p p r o a c h s t e p b y s t e p
t h e f o r m w h i c h t h e y assume on t h e s u r f a c e o f
.
soc ie t y ”

REFERENCES
Amin, S., 1973, A c c u m u l a t i o n on a W o r l d S c a l e
( M o n t h l y Review P r e s s , New Y o r k ) .

Baran, P., 1957, The P o l i t i c a l Economy o f

G r o w t h ( M o n t h l y Review P r e s s , New Y o r k ) .

B a r r a t t Brown. M., 1974, The Economics o f I m -

p e r i a l i s m ( P e n g u i n Books, B a l t i m o r e ) .

Emmanuel, A., 1972, Unequal Exchange (New L e f t

Books, London).
Fanon, F., 1967, The W r e t c h e d o f t h e E a r t h
( P e n g u i n Books, Harmondsworth, M i d d l e s e x ) .

F r a n k , A . G., 1969, C a p i t a l i s m a n d U n d e r d e v e l o p -
ment i n L a t i n A m e r i c a ( M o n t h l y Review ,
P r e s s , New Y o r k ) . ,/
H a r v e y , D., 1975, “The P o l i t i c a l Economy o f
U r b a n i z a t i o n i n Advanced C a p i t a l i s t FJRTHCOMING I N THE l l E X T Y E A R
Countries - t h e Case o f t h e U n i t e d
S t a t e s ” i n 6. G a p p e r t and H. Rose, eds.,
Urban A f f a i r s Annual No. 9 - The S o c i a l Underdevelopment i n L a t i n America --
issue
Economy o f C i t i e s (Sage P u b l i c a t i o n s , e d i t e d by L u i s Chives, p r e s e n t l y b e i n g t r a n s -
Beverley H i l l s , C a l i f o r n i a ) . lated.

Hobson, J . A . , 1938, I m p e r i a l i s m ( A l l e n and Underdevelopment i n t h e T h i r d World --two

Unwi n , L o n d o n ) .
K u z n e t s , S., 1961, C a p i t a l i n t h e A m e r i c a n
Economy; I t s F o r m a t i o n and F i n a n c i n g
( N a t i o n a l B u r e a u o f Economic Research.
Princeton University Press).
L e n i n . V . I . . 1963, “ I m p e r i a l i s m , t h e H i g h e s t
S t a g e o f C a p i t a l i s m ” i n S e l e c t e d Works,
V o l . 1 ( P r o g r e s s P u b l i s h e r s , Moscow).
Luxemburg, R., 1951, The A c c u m u l a t i o n o f C a p i -
-
t a l ( R o u t l e d g e and Kegan P a u l , London).
Marx, K., 1967, C a p i t a l ( T h r e e Volumes; Inter-
n a t i o n a l P u b l i s h e r s , New Y o r k ) .
, 1970, A C o n t r i b u t i o n t o t h e C r i t i q u e
o f P o l i t i c a l Economy ( I n t e r n a t i o n a l Pub-
l i s h e r s , New Y o r k ) .
j s s u e s e d i t e d b y M i l t o n S a n t o s , w i t h some 40
p a p e r s by T h i r d and F i r s t W o r l d w r i t e r s .
Rural America -- i s s u e e d i t e d by I n g o l f Vogeler.
S e v e r a l o t h e r s p e c i a l i s s u e s a r e v i r t u a l l y com-
plete.
G e n e r a l I s s u e s . Our comrades i n L i s b o n have
p r o m i s e d a p a p e r on t h e s i t u a t i o n i n P o r t u g a l
and t h e r o l e p l a y e d by g e o g r a p h e r s t h e r e . Bob
C o l e n u t t has a p a p e r on t h e London p r o p e r t y
market which i s i n t h e f i n a l stages o f prepara-
t i o n . S e v e r a l exchange p a p e r s f r o m Espaces e t
Societies are being translated.
Your f i n a n c i a l h e l p i n t h e f o r m o f s u b s c r i p -
t i o n s t o more t h a n t h e u s u a l f o u r i s s u e s , l o a n s
o r g i f t s c a n be p u t t o good u s e a t t h i s t i m e .

, 1973, G r u n d r i s s e ( P e n g u i n Books,
Harmondsworth, M i d d l e s e x ) .

, 1971, On C o l o n i a l i s m ( I n t e r n a t i o n a l
P u b l i s h e r s , New Y o r k ) .

, 1967; 1968 and 1972, T h e o r i e s o f S u r -

l u s V a l u e ( T h r e e P a r t s ; P r o g r e s s Pub-
b o s c o w ) .
TRANS L AT I 0 N HELP URGE i’iT 1Y NEEDED
, and E n g e l s , F., 1955, S e l e c t e d C o r -
r e s p o n d e n c e ( P r o g r e s s P u b l i s h e r s , Moscow). A n t i p o d e i s r e c e i v i n g an i n c r e a s i n g volume
o f m a t e r i a l i n S p a n i s h and F r e n c h w h i c h has
Thomas, B., 1972, M i r a t i o n and Urban D e v e l o p - o v e r b u r d e n e d o u r t r a n s l a t i o n r e s o u r c e s . We
ment (Methuen, :ondon). u r g e n t l y need h e l p i n t r a n s l a t i n g t h e s e p a p e r s
i n t o English, p a r t i c u l a r l y from people w i t h
b a c k g r o u n d s i n M a r x i s m and T h i r d W o r l d u n d e r -
development. I f you can h e l p please w r i t e t o
R i c h a r d P e e t , A n t i p o d e , Box 225, West S i d e
S t a t i o n , W o r c e s t e r , Mass., 01602.

21