As we saw in the previous section, with the development of finance capital, industries in entire countries became united into large enterprises controlled by banks. Various producers joined forces, and the anarchy of competitive production within each nation was replaced by the formation of monopolies and state-capitalist trusts.
In the early 20th century, some thinkers believed that finance capital would eventually eliminate competition altogether by creating a global monopolistic organisation, described by German social democrat Karl Kautsky as “ultra-imperialism”. Although today, the lesser imperialist powers are almost entirely subordinate to the US in super- or hyper-imperialist formations such as NATO, united in their pursuit of profits from the Global South, this period where inter-imperialism is not the principal form of conflict can only be a temporary phase, and has certainly not introduced an era of peace as predicted.
During the cyclic periods of inter-imperialist conflict, finance capital ends competition among enterprises within individual nations, but also gives rise to competition among various state-capitalist trusts. In this respect, finance capital brings competition to a larger and more destructive stage. Instead of a struggle between individual manufacturers, we witness conflicts between entire nations and an unprecedented scale of expenditure and waste. Let us now consider why competition on the world market assumes such a violent form.
For this, it is necessary to consider tariffs. Even prior to the epoch of imperialism, import duties had long been used to protect domestic industries from foreign competition. With the development of syndicates, tariffs not only continued to block external competitors but also facilitated the uninterrupted rising of prices without fear of cheap foreign goods.
Armed with huge profits, the syndicated capitalists then turned to foreign nations, selling their goods at a loss to eliminate local competitors and establish dominance across the globe. In this respect, the syndicated capitalists exploit both their own people and those of foreign lands. Notably, the more people and markets they control through tariffs, the greater is their profit—leading to wars of conquest to expand the tariff’s boundaries.
Although tariff policies eventually hindered the export of goods to foreign nations, the capitalists maintained their right to export capital—establishing factories, purchasing shares, setting up new enterprises, lending, and so forth. The greater the accumulation of surplus capital within a country, the more pronounced were its efforts to export capital. Consequently, the more “developed” nations exported their capital to relatively “backward” ones and, to protect these investments, the “developed” nations were compelled to completely annex the “backward” nations through military force.
As Lenin described imperialism during his own time, “Imperialism is capitalism at that stage of development at which the dominance of monopolies and finance capital is established; in which the export of capital has acquired pronounced importance; in which the division of the world among the international trusts has begun, in which the division of all territories of the globe among the biggest capitalist powers has been completed.” It must be stressed that this was Lenin’s analysis of imperialism during the time of the first world war, and should not be lazily used as a general definition for imperialism 100 years later. For example, following the period of neoliberalism, imperialist nations like the US actually became net importers of capital and adapted to oppress nations by other means. Imperialism is therefore better understood as simply the age where finance and monopoly capital are dominant, which has taken different forms throughout its history.
Although the wave of national liberation struggles against imperialism throughout the 20th Century has led to the vast majority of nations gaining their formal independence and sovereignty, the forms and methods of imperialism have nevertheless persisted and adapted to this new world order. Instead of the direct colonialism and enslavement of entire peoples which was the norm in the days of empire, new, neocolonial relationships of economic and political domination have now become the norm. This can be seen through the actions of imperialist financial institutions like the World Bank which provide loans to Global South nations, but only on political conditions that ensure these countries become utterly subservient to the domination of foreign capital, for example, by preventing the nationalisation of industry, oil, minerals, and other strategic resources. The US is not only hostile to communist governments, but will seek to overthrow any nationalist bourgeois government which seeks sovereignty from American capital and the dollar.
With the world divided among a handful of imperialist powers, and with uneven development an inherent feature of capitalism, the outbreak of war between the established powers and the emerging powers has also become an inevitable cycle. This explains both the First and Second World Wars, the defining characteristic of which is that they were murderous to an unparalleled degree. No scale of human sacrifice could be deemed too great.
Today, the outbreak of a third world war is likely. Israel’s genocidal actions in Palestine, and its acts of aggression against Lebanon, Syria, and Iran, coupled with Western complicity, threatens to drag Britain into a wider conflict in West Asia. The provision of British Shadow Storm missiles to Ukraine is another huge escalation, which can only be perceived by Russia as an act of war in Eastern Europe. The New Cold War against China could easily develop into a hot war, for example in the case of the United States interfering with the planned reunification of capitalist Taiwan with the socialist mainland. All of these conflicts are interconnected, with the common factor being the United States’ struggle to defend its economic hegemony and expand its markets into the one continent which it has failed to conquer completely: Eurasia. Our government could end our complicity in these wars tomorrow, but instead pulls us towards a global catastrophe due to its utter subservience to US imperialism.
Yet, the drive for war also has an unintended effect. As more people recognise that the system of capitalist imperialism fails to benefit them, as evidence of the monstrosities of war finds its way online, as the threat of global nuclear destruction looms, and as state funds are directed towards producing armaments rather than meeting basic human needs, it is inevitable that war, whose burden is felt most heavily by the working class, turns the masses against the existing capitalist order.
As Mao Zedong explained, “The First World War was followed by the birth of the Soviet Union with a population of 200 million. The Second World War was followed by the emergence of the socialist camp with a combined population of 900 million. If the imperialists insist on launching a third world war, it is certain that several hundred million more will turn to socialism, and then there will not be much room left on earth for the imperialists; it is also likely that the whole structure of imperialism will utterly collapse.”
Further Reading
Imperialism: The Highest Stage of Capitalism, V. I. Lenin
Socialism and War, V. I. Lenin
Militarism and Anti-Militarism, K. Liebknecht
On the Correct Handling of Contradictions among the People, Mao Zedong
Neo-Colonialism, the Last Stage of Imperialism, K. Nkrumah
Hyper-Imperialism: A Dangerous Decadent New Stage, The Tricontinental
Discussion Questions
- Lenin described imperialism as the “highest stage” of capitalism, but what different forms has imperialism taken during this highest stage?
- Lenin gave a short list of characteristics of imperialism during the first world war. Do these characteristics apply to imperialism today? If not, does this mean it is no longer imperialism?
- Can capitalist countries wage anti-imperialist wars?
- Can the national bourgeoisie be convinced to unite with the working class against imperialism? If so, what are the risks/limits?
- How do we wage anti-imperialist struggle from within an imperialist country?
