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V.I. Lenin went further than Hobson. In his pamphlet "Imperialism, the Highest Stage of
Capitalism" (1916), Lenin saw imperialism arising out of modern capitalism, which
had become dominated by monopolistic combines. These combines found difficulty in
investing at home because the European market was saturated and they were also anxious
to control all sources of raw materials. The direct acquisition of colonies was the
solution, for "colonial possessions alone give complete guarantee of success to the
monopolies against all the risks of the struggle with competitors."
Their arguments were very one-sided and at times failed to square with reality. Yet
there were elements of truth in them. Profits were made out of imperial development by
munitions manufacturers and traders in raw materials from the colonies like rubber.
Imperial expansion did provide jobs for soldiers and administrators, and economic
pressure groups at times played a considerable part in persuading the governments of
Europe to embark on colonial expansion, as in Britain.
2. Political factors - the new imperialism grew out of the diplomatic situation in
Europe after the Franco-Prussian War in 1870. With the unification of Germany and
Italy, the development of nationalism had reached its highest point. There was no more
room for further expansion in the continent. Thus, the powers had to expand abroad in
Africa and Asia.
Political rivalry also played a part in the imperial scramble. Britain, already in
possession of a great empire, was apprehensive of the growing interest of other countries
in imperialism and sought to take measures to safeguard it. Her concern for the security
of the routes to India led to her occupying Egypt. The other powers were envious of the
British Empire, and they participated in the scramble for colonies. Once the imperial
movement had started, it generated its own momentum. Often territories were
absorbed not for their present value but as an insurance against the future.
Another vital political factor was the relationship between imperialism and democracy
in Western Europe. The industrial and white-collar classes were gradually being
enfranchised in the late 19th century. Politicians could not ignore their opinions and if
colonial adventures satisfied the craving of the masses for excitement, then it was
political wisdom to follow a 'forward' policy in imperial affairs. One could easily gain
popularity in carrying out colonial expansion.
The idea of Christianizing the backward peoples prompted the missionary societies
into action. Indeed, the late 19th century was perhaps the greatest period of
missionary work in the history of the Christian Church. About 40,000 Roman
Catholic and 20,000 Protestant missionaries went to Asia and Africa during these years.
The activities of the Church facilitated a political take-over later. For example, it was the
murder of two German missionaries in China in 1897 which gave the German
government the excuse to seize the port of Kiaochow.
The opening of the Suez Canal in 1869 made easier colonial expansion in the Far East.
The indigenous population could not prevent this because of the vast superiority in
weaponry possessed by the Europeans, so that in Africa and Asia a handful of European
soldiers could control vast territories.