Marx and Imperialism

Imperialism seems to have replaced capitalism as the main enemy/problem for many people

Marx and Engels had little to say on the subject of imperialism. Their remarks on colonialism and foreign trade, particularly the section on counter-tendencies to the tendency of the Falling Rate of Profit, have been used to give authority to other theories and blown up out of proportion to justify anti-imperialism, but all they basically say is that a national capital tries to avoid the crisis caused by the Falling Rate of Profit, which in turn is caused by the increase in the ratio of constant to variable capital, of machinery to workers, by investing in foreign countries. Briefly, the Falling Rate of Profit is explained by the fact that capitalists are forced by competition to produce cheaper goods by increasing the ratio of machinery to workers. Because labour is the only source of value, the rate of profit is given by dividing the proportion of living labour in the product by the proportion of dead labour, or machinery. This rate must fall as the proportion of machinery rises. Capital invested "at home", in production for foreign trade, can also yield a higher rate of profit "because it competes with commodities produced by other countries with less developed production facilities, so that the more advanced country sells its goods above their value". This enables the more advanced country to dominate the less advanced, by making more profit. Capital invested directly in production in the colonies also produces more profit: "the reason why this can yield higher rates of profit is that the profit rate is generally higher there on account of the lower degree of development, and so too is the exploitation of labour, through the use of slaves and coolies, etc." What this passage means is that a higher rate of profit is obtainable in countries where exploitation is less developed, where more variable capital (labour) is required to turn out a given quantum of value from a given unit of constant capital (machinery).

Marx doesn't make too much of this counter-tendency to the Falling Rate of Profit. He adds that though the more advanced country "receives more labour in exchange for less", it is all "pocketed by a particular class, just as in the exchange between labour and capital in general". Both foreign trade and capital export are just particular examples of capitalism in general. They are not qualitatively different from what capital does within its "home" country. The "super-profits" of anti-Imperialist theory are, in other words, simply larger quantities of ordinary profits. Taking over competitors with less developed production facilities by destroying them by selling cheaper goods, and taking advantage of these less developed facilities to make more profit, is part of capital's daily life. Moralistic protest about the unfairness of imperialism, as opposed to ordinary capitalism, is an attempt to confuse us about the nature of the beast. (The enslavement of Africans was qualitatively worse than the forced deportations of the English, Scots and Irish poor, but if a capitalist power is more savage and parasitic abroad than it is at home, that is only because the class struggle at home has restrained it. If "First World" workers have been "bribed", that is because they have forced the bosses to bribe them.)

Marxian economics does not measure the level of exploitation by how high or low wages are but by reference to the amount of surplus value produced as compared with the amount of wages paid, whether high or low. By this measure the workers of the advanced countries were more exploited than those of the colonies, despite their higher wages, because they produced more profits per worker. Lenin failed to understand why different rates of wages prevail in different countries. According to him, wages are higher in imperialist countries because the capitalists there bribe their workers out of the superprofits which they earn from exploiting the subjugated countries. Marx's explanation as to why wages were higher in these countries. Both productivity and the rate of exploitation (ratio of paid to unpaid labour) were higher there:
"The more productive one country is relative to another in the world market, the higher will be its wages compared with the other. In England, not only nominal wages but (also) real wages are higher than on the continent. The worker eats more meat, he satisfies more needs. This, however, only applies to the industrial worker and not the agricultural labourer. But in proportion to the productivity of the English workers their wages are not higher (than the wages paid in other countries)" (Theories of Surplus Value, Part Two).

A lower rate of wages does not make any one country any less capitalist than another: The ruling class in all countries pay workers as much as they think they have to, calculated from:
a) the need for workers to stay alive and, to a greater or lesser degree, healthy,
b) the shortage or otherwise of workers capable of doing the job, and
c) the class struggle

(Where does a wage rise gained by struggle end and a bribe begin? Lenin's position implies that British workers should deduce what proportion of their pay checks are the proceeds of the exploitation of the colonies, and hand that proportion back to their employers, declaring their refusal to be bribed.) A lower rate of wages does not make any one country any less capitalist than another: "The different states of the different civilised countries, in spite of their motley diversity of form, all have this in common, they are based on modern bourgeois society, only one more or less capitalistically developed" ( Marx, Critique of the Gotha Programme, 1875).

A country may be highly industrialised or a developed agricultural one or the chief supplier of raw materials for industry or whatever. This happens due to the division of labour amongst the various capitalist countries.

It was only in 1920, in a preface to the French and German editions, of his Imperialism, the Highest Stage of Capitalism that Lenin introduced the idea that a section of the working class in the imperialist countries shared in the booty extracted from capitalists, the so-called “aristocracy of labour” of skilled workers – shares in the proceeds of the exploitation of colonial and now ‘Third World’ countries, workers and peasants in the rest of the world. Basically, he argued that as profits were greater in the undeveloped parts of the world capitalists were eager to invest there; this brought the capitalist states into continual conflict over the division of the world. Part of the "super-profits" of this imperialist exploitation were used to pay higher wages and provide social reforms for sections of the workers at home. They were thus led away from revolutionary socialism towards opportunism.His anti-imperialism was to try to secure the support of anti-colonial movements for his beleaguered regime in Russia. If they succeeded, he believed, they would deprive the imperialist state concerned of its super-profits and so also of its ability to buy off its workers. Deprived of their share the workers' standard of living would drop and they would once again become revolutionary, affording a chance for a Bolshevik-type vanguard to seize power. It was a political manoeuvre – “workers and colonial peoples unite” – that went against the basic principle of Marxian economics that wages represent the value of the labour-power a worker sells and contain no element of surplus value. Wages paid to skilled workers here reflect the higher quality – due to more education, training and skill – of the labour power they have to sell. Marx had a quite different explanation as to why wages were higher in these countries. Both productivity and the rate of exploitation (ratio of paid to unpaid labour) were higher there.

The whole thrust of Marx's own analysis of capitalism was that the workers movement would first triumph in the economically advanced parts of the world, not in a relatively backward economic area like Russia. Lenin explained away this contradiction by arguing that Marx had been describing the situation in the pre—imperialist stage of capitalism whereas, in the imperialist stage which had evolved after his death, the capitalist state had become so strong that the breakthrough would not take place in an advanced capitalist country but in the weakest imperialist state. Tsarist Russia had been the weakest link in the chain of imperialist countries and this explained why it was there that the first "workers revolution" had taken place. This was tantamount to saying that the Russian revolution was the first "anti-imperialist" revolution, and in a sense it was. Russia was the first country to escape from the domination of the Western capitalist countries and to follow a path of economic development that depended on using the state to accumulate capital internally instead of relying on the export of capital from other countries.

Lenin argued that imperialism was in part a conscious strategy to buy off the working classes in the imperialist countries. His evidence consists of one quote from arch-imperialist Cecil Rhodes , and one from Engels to the effect that the workers of England "merrily share the feast" of its colonies. The "labour aristocracy" theory had the political purpose of enabling the Bolsheviks to argue for the workers in the colonies to form united fronts with their local ruling classes against Imperialism. This in turn had the aim of dividing the working class internationally, and turning it into cannon fodder for capitalist war. Lenin's expanded theory made the struggle in the world not one between an international working class and an international capitalist class, but between imperialist and anti—imperialist states. The international class struggle which socialism preached was replaced by a doctrine which preached an international struggle between states.

In the early days of the Bolshevik regime, when Russia was faced with a civil war and outside intervention by the Western capitalist powers, Lenin realised that this was a card he could play to try to save his regime. Playing the anti -imperialist card meant appealing to the "toiling masses" of Asia not to establish socialism but to carry out their own anti-imperialist revolutions. The 'super-exploited" countries were to be encouraged to seek independence as this would weaken the imperialist states, who were putting pressure on Bolshevik Russia. This strategy was presented to the workers movement in the West as a way of provoking the socialist revolution in their countries. Deprived of their super— profits, the ruling class in the imperialist countries would no longer be able to bribe their workers with social reforms and higher wages; the workers would therefore turn away from reformism and embrace revolution.

After Lenin's death in 1924, this strategy of building up an "anti-imperialist" front against the West was continued by his successors. Because it taught that all the people of a colonial or a dominated country had a common interest in obtaining independence, i.e. a state of their own, it was very attractive to nationalist ideologists and politicians in these countries. They called on all the inhabitants of the country they sought to rule to unite behind them in a common struggle to achieve independence. As a result, in these countries "socialism" became associated with militant nationalism rather than with the working-class internationalism it had originally been. The political struggle there came to be seen as a struggle, not between the working class and the capitalist class, hut as a struggle of all patriotic elements— workers, peasants and capitalists together—against a handful of traitorous, unpatriotic elements who would have sold out to foreign imperialists. They called on all the inhabitants of the country they sought to rule to unite behind them in a common struggle to achieve independence. As a result, in these countries "socialism" became associated with militant nationalism rather than with the working class internationalism it had originally been. The political struggle there came to be seen as a struggle, not between the working class and the capitalist class, hut as a struggle of all patriotic elements - workers, peasants and capitalists together -against a handful of traitorous, unpatriotic elements who would have sold out to foreign imperialists.

Rosa Luxemburg accused Lenin as having "thrown the greatest confusion into the ranks of socialism," and goes on to state: "The Bolsheviks have supplied the ideology which has masked the campaign of counter-revolution; they have strengthened the position of the bourgeoisie and weakened that of the proletariat ... With the phrase about the self-determination of nations the Bolsheviks furnished water for the mills of counter-revolution and thus furnished an ideology not only for the strangling of the Russian Revolution itself, but for the planned counter-revolutionary liquidation of the entire World War." She describes how during the course of the Russian Revolution "Contrary to what the Bolsheviks expected, one after another the liberated "nations" took advantage of the freshly granted freedom to take a position of deadly enmity to the Russian Revolution, combining against it with German Imperialism... of course it is not the 'nations' by whom that reactionary policy is carried on, but only the bourgeois and petty-bourgeois classes ... who have converted the national right of self-determination into an instrument of their counterrevolutionary class policy."

But eventually however Lenin's views won the day.

Yes, Marx and Engels did support certain nationalist movements and some wars - to bring capitalism to feudalistic states, to usher the capitalist class into political power so they could create the pre-requisites of socialism; an actual working class within an industrialised society. Prussia against the Slavs. Britain and France against Tsarist Russia. Even Prussia against France so as to strengthen unification of Germany. But can anyone seriously think that such a policy is required in to-days world where capitalism is now the predominant system and its the working class thats the decisive class not the capitalists. What may have been right in the 19th Century for Marx and Engels, may not now be the right choice in the 20th Century under changed circumstances . What was perhaps provident for backward Russia in the eyes of Lenin not be applicable or advisable for the rest of us.