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 geographi 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 .

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 p . 5921.

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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.

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 stresses w i t h i n t h e accumulation process. W e 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 popul 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 emp 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.

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 :

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( 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 product i o n as c a p i t a l i s r e i n v e s t e d .

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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

( 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. 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 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 9

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.

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 produce 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 . W e 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 :

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 supplementi 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 populat 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 t h e y e n f o r c e some k i n d important function 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 devaluat 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 accumulat 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, howe 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 .

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n o t o n l y i s p r o d u c t i o n immediately consumption 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 ) .

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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 3, o f t h e masses ( I b i d . . p. 492; C t p i t ; l , 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 "it i s only t o do w i t h a b s o l u t e human needs 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 .

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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 accumulation, W e 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.

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 . , The f a c t t h a t t h e r e i s a s u r f e i t pp. 497-9). 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 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 : stage.

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 p p . 534-51.

( 4 ) An e x p a n d i n g e f f e c t i v e demand f o r a t f i r s t i n t h e c a p i t a l goods i n product 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.

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(w.,

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

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 capac 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 farmexpanding t h e p o i n t s o f i n i n g ) , o r b y (ii) 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 market." 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 markets, 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 a r a p i d r a t e o f population growth tension 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 unnecess 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.

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). 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 necess 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.

-f-

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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. 5334). 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. 523) p e c u l i a r laws o f r e a l i z a t i o n 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 pp. 531-3).

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(m.,

(m.,

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 conPrices, both n e c t e d w i t h i t " ( I b i d . , p. 534). 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 i n t h e means o f comnecessary a r e v o l u t i o n 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:

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II.

TRANSPORTATION RELATIONS, SPAITAL INTECRATION A N D THE "ANNIHILATION OF SPACE BY TIME"

W e w i l l s t a r t from the 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

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 conbecomes an e x t r a d i t i o n s o f exchange 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).

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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 markets 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 improvements 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 mark 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 comm 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:

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'inu i t y where t h e r e was none b e f o r e . The necess 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, howe 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:

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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 populat 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 ) .

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%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 ) .

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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, I n t h e G r u n d r i s s e (p. h r x pp. 251-2). 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 :

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 enhanced 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 flroduct 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 developed 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 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).

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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 unand 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.

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 , however. 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 concent 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 accomp 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 product 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 12

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 expandin 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 between 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 expansion. W e 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 These t r a n s f o r m a t i o n s (Ca i t a l , 2, p. 250). 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 " p. 2 4 9 ) .

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 Temporal c r i s e s i n r i x e d c a p i t e l i n i n time. 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 geog 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 communic 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 compos i t i o n o f s o c i a l c a p i t a l which tends t o genera 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 development 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 It l i e s , rather, not i n t h e i r sophistication. 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 accumulation. I n t h i s t h e Marxian approach i s fundam 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 conf 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 u s u a l l y as a n a f t e r t h o u g h t o f the analysis - - and t h e dynamics n e v e r g e t much beyond comp 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 I t suggests t h a t t h e stances i s i m p o r t a n t . 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 .

(w.,

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 spatial structures are space w i t h time, 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 " C a p i t a l t h u s comes t o ( G r u n d r i s s e , p. 740p. 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 accumul 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:

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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 t h e more does the c a p i t a l develops 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 env 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 , As a consequence we c a n e x p e c t t o 1975). witness a perpetual s t r u g g l e i n which c a p i t a l 13

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 capit 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 .

"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.

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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 nonc 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 physic 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 p.

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 , by drawing t h e l a t t e r and a b s o r b v a l u e 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.

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512).

(m.,

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 3 , p. 1191, w h i l e c e n t e r - p e r i p h e r y (C;P:fal. 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

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 nonc 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 ext 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 cond 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 she a r g u e s , i n Accumulation o f C a p i t a l 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.

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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 accumul 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 :

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. W e then find:

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" 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 conv 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:

" 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 substant 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 Merc 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 dev 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).

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"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 ind 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 wherew 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

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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 :

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 nonc 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 conv 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 nonc 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

"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 I n t h e second t y p e o f plantations where commercolonies 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 product 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.

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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 pp. 4 3 6 - 7 ) . There 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 export o f capital :

(w.,

rrIf c 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 advant 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:

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 .

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"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, emp 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 motherc 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 acc 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 accumul 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 nonc 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 ormat f o n i n India:

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 pred 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.

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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 equali 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 bef 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 occur. W e 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 Under l o c a l i t y t o another, and s o o n ) . c a p i t a l i s m , t h e r e a r e always tendencies pushi 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 Surp 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 accumul 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 product i v i t i e s o f labour according t o natural 16

"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

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" p. 2 3 8 ) . Marx t h e n n o t e s t h a t :

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

(u.,

"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 . 1056).
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 penet 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 exceedingly 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:

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 I n h i s comments o n t r a n s p o r t a t i o n imperialism. 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 accumul 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 geographical scale. W e 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 representations 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.

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The p r o b l e m f o r t h e M a r x i s t s and neoM 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 outcomes 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, locat 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 genera 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 embedded 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

"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

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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 geographically. 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. W e 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 .

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 consequences 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 whereb 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 accumul a t i o n a r e ignored.

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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 penetrat 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 accumulation. 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 accumulation. I t would be b o t h erroneous and misconc 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 exp 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.

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 concent 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 capit 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 demons t r a t e where t h e e f f e c t i v e demand f o r commodit 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 economi 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 nonc 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 descriptions 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 analys 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

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 charact 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 specffically, during the l a t e development 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 .

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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 monop 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 ) .

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 manipulat 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 but also the historical economic c o n c e p t s 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 p. 737). t h e w o r k i n g c l a s s movement 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.

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(u.,

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 The 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 ) . 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 development 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 une 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 count 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).

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 part 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 consequence, 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 necess 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 concent 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 It i s . therefore, the task o f be e x c l u d e d . 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 19

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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

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 impossible. 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 movements 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 mission the accumulation o f c a p i t a l .

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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 complex. W e 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 comp 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:

Bence t h e n a t u r a l and human q u a l i t i e s great civiZiaing influence of capital; 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 , conf 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 contrad 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 tende n c y , and hqnce w i l l d r i v e towards i t 8 Own SUSpenSl-OTl."

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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 i s c o n d i t i o n a l upon an surplus value expansion, s p e c i f i c a l l y a constant exp 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

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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 consuming- 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 exp 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 prop 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

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 accumul 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 conting 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 accumul 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 point i n history. W e 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 . W e 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 accumul 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

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t r a n s f o r m a t i o n from t h e general t o t h e conc 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. W e 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 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

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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 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 Economy o f C i t i e s (Sage P u b l i c a t i o n s , Beverley H i l l s , C a l i f o r n i a ) .
FJRTHCOMING

I N THE l l E X T Y E A R

Underdevelopment i n L a t i n America issue 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 lated. Underdevelopment i n t h e T h i r d World two 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

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Hobson, J . A . , 1938, I m p e r i a l i s m ( A l l e n and 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).

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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 complete. 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 preparat 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 .

Marx, K., 1967, C a p i t a l ( T h r e e Volumes; n a t i o n a l P u b l i s h e r s , New Y o r k ) .

Inter-

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 Publ i s h e r s , New Y o r k ) .

, 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 Pubb o s c o w ) .
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). Thomas, B.,

TRANS L AT I 0 N HELP URGE iiT 1Y NEEDED

, and

ment

1972, M i r a t i o n and Urban D e v e l o p (Methuen, :ondon).

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 overburdened o u r t r a n s l a t i o n resources. W e 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.

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