The geography of capitalist accumulation: a reconstruction of the Marxian theory.

T H E GEOGRAPHY OF CAPITALIST ACCUMULATION:

A RECONSTRUCTION OF T H E MARXIAN THEORY *

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 . T h i s i s , i n p a r t , M a r x ' s f a u l t s i n c e 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 deve loped . B u t 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 r e c o g n i z e d t h a t c a p i t a l a c c u m u l a t i o n t o o k p l a c e i n a geograph- i c a l c o n t e x t and t h a t i t i n t u r n c r e a t e d s p e c i f i c k i n d s o f g e o g r a p h i c a l 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 app roach 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 c o n n e c t , t h e o r e t i c a l l y , t h e g e n e r a l 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 emergen t s t r u c t u r e o f s p a t i a l r e l a t i o n s h i p s . And i t f u r t h e r t r a n s - p i r e s t h a t t h i s l o c a t i o n a l a n a l y s i s p r o v i d e s , 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 M a r x i a n t h e o r y o f i m p e r i a l i s m - - a l i n k w h i c h 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 rgue , 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 .

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 f o r m o f l o c a t i o n a l a n a l y s i s w h i c h 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 i m p e r i a l i s m .

I n t h i s p a p e r I s h a l l t r y t o d e m o n s t r a t e

I. THE THEORY OF ACCUMULATION

M a r x ' s t h e o r y o f g r o w t h u n d e r c a p i t a l i s m p l a c e s a c c u m u l a t i o n o f c a p i t a l a t t h e c e n t e r o f t h i n g s . A c c u m u l a t i o n i s t h e e n g i n e w h i c h 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 p r o d u c t i o n . The c a p i t a l i s t sys tem 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 - a r y ; i t f o r m s a p e r m a n e n t l y 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 s t a t i o n a r y 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 pe rpe tu : t i on 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 e x p r e s s e d i n t h e f o r m u l a a c c u m u l a t i o n 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 sake (Ca i t a l , 1, p. 5 9 5 ) . Ye t t h i s h i s t o r i c a l m i s h e s n o t s tem f r o m t h e i n - h e r e n t g r e e d 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 i n d e p e n d e n t o f t h e c a p i t a l i s t ' s i n d i v i d u a l w i l l :

Only as p e r s o n i f i e d c a p i t a l i s t h e c a p i t a l i s t r e s p e c t a b l e . As such , he s h a r e s w i t h t h e m i s e r t h e p a s s i o n f o r

* T h i s p a p e r i s i n p a r t e x c e r p t e d f r o m C h a p t e r 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 under c a p i t a l i s m .

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 deve lopment 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 keep 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 b e 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 compe l s him t o keep c o n s t a n t l y e x t e n d i n g 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 by means of p r o g r e s s i v e accumula t ion Iw., p . 5 9 2 1 .

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 w h i c h f r e q u e n t l y e r u p t a s c r i s e s . Harmonious o r b a l a n c e d g r o w t h under c a p i t a l i s m i s , i n M a r x ' s v iew, 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 commodi ty p r o d u c t i o n under compe 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 ) . M a r x ' s a n a l y s e s o f t h i s sys tem o f commodi ty p roduc - t i o n l e d h i m t o t h e v iew t h a t t h e r e were i n - numerab le 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 roduce s e r i o u s s t r e s s e s w i t h i n t h e a c c u m u l a t i o n p r o c e s s . We can 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 resupposes :

( 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 can 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 i n c r e a s e t h e s u p p l y o f l a b o r power by, f o r example, s t i m u l a t i n g popu- l a t i o n g t o w t h , g e n e r a t i n ! m i g r a t i o n s t reams , d r a w i n g l a t e n t e lemen ts - - l a b o r power em- p l o y e d i n n o n - c a p i t a l i s t s i t u a t i o n s , women and c h i l d r e n , and t h e l i k e - - i n t o t h e w o r k f o r c e , 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 l a b o r - s a v i n g i n n o v a t i o n s .

( 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 r e q u i s i t e q u a n t i t i e s o f , o r o p p o r t u n i t i e s t o o b t a i n , means o f p r o d u c t i o n - - machines, raw 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 t h e l i k e - - t o p e r m i t t h e e x p a n s i o n o f p r o d u c - t i o n as c a p i t a l i s r e i n v e s t e d .

( 3 ) The e x i s t e n c e o f a m a r k e t t o a b s o r b t h e i n c r e a s i n g q u a n t i t i e s o f commod i t i es 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 pay ) 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 a c c u m u l a t i o n d i s a p p e a r .

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 wh ich , 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 . S ince , i n w e l l -

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

deve loped 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 roduc - t i o n and o f necessa ry i n f r a s t r u c t u r e s , and t h e s t r u c t u r e o f demand a r e a l l "p roduced" 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 , Marx con- c l u d e s t h a t c a p i t a l i s m t e n d s a c t i v e l y t o p r o - duce some o f t h e b a r r i e r s t o i t s own d e v e l o p - ment. T h i s means t h a t c r i s e s a r e endemic t o t h e c a p i t a l i s t a c c u m u l a t i o n p r o c e s s .

ways, however, depend ing on t h e c o n d i t i o n s o f c i r c u l a t i o n and p r o d u c t i o n a t t h e t i m e . We can see more c l e a r l y how t h i s can be so by examin ing , b r i e f l y , how Marx l o o k s a t p roduc - 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 t h e t o t a l i t y 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 p rocess . He argues , f o r example, t h a t :

not on ly i s produc t ion immediately consumption and consumption immediately p roduc t ion , n o t on ly i s p r o d u c t i o n a means f o r Consumption and consumption the aim of produo t ion ... but a l s o , each of t h e m . . . c r e a t e s the o t h e r i n compte t - ing 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 o t h e r (Grundr i s se , p . 9 3 ) .

C r i s e s can be m a n i f e s t i n a v a r i e t y o f

I f p r o d u c t i o n and consumpt ion 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 wh ich 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 a c c u m u l a t i o n 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 .

Cons ide 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 " tendencv 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 commod i t i es 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 max imize t h e i r p r o f i t s by k e e p i n g wages down w h i c h r e s t r i c t s t h e p u r c h a s i n g power o f t h e masses ( I b i d . . p. 492; C tp i t ; l , 3, p. 484). T h e r e r a c o n t r a d i c t on e r e w h i c h p e r i o d i c a l l y p roduces a r e a l i z a t i o n c r i s i s - - a mass o f commod i t i es on t h e m a r k e t w i t h no pu rchasers i n s i g h t . T h i s o v e r p r o d u c t i o n i s r e l a t i v e o n l y , o f cou rse , and i t has n o t h i n g t o do w i t h a b s o l u t e human needs - - " i t i s o n l y concerned w i t h demand backed by a b i l i t y t o pay" ( T h e o r i e s o f S u r p l u s Va lue , 2, p. 5 0 6 ) . A b s o l u t e o v e r p r o d u c t i o n i n r e l a t i o n t o a l l human wants and needs i s . i n Marx ' s v iew, i m p o s s i b l e under c a p i t a l i s m .

B u t such r e l a t i v e o v e r p r o d u c t i o n may appear a l s o as underconsumpt ion o r as an o v e r - p r o d u c t i o n o f c a p i t a l ( a c a p i t a l s u r p l u s ) . Marx r e g a r d s t h e s e fo rms as m a n i f e s t a t i o n s o f t h e same b a s i c o v e r a c c u m u l a t i o n p r o b l e m ( I b i d . , pp. 497-9). The f a c t t h a t t h e r e i s a s u r f e i t o f c a p i t a l r e l a t i v e t o o p p o r t u n i t i e s t o employ t h a t c a p i t a l means t h a t t h e r e has been an o v e r p r o d u c t i o n o f c a p i t a l ( i n t h e f o r m o f an o v e r p r o d u c t i o n o f commod i t i es ) a t a p r e c e e d i n g 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 underconsuming t h e s u r p l u s a t t h e p r e s e n t s tage . I n a l l o f t h e s e cases, o v e r p r o d u c t i o n :

i s s p e c i f i c a L t y c o n d i t i o n e d by the general law of t h e produc t ion of c a p i - tat . : t o produce t o t h e l i m i t s e t by t h e p r o d u c t i v e f o r c e s , t h a t i s t o s a y , 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 for the actuaL l i m i t s of t h e market or the needs backed by a b i l f t y t o pay (w., p p . 5 3 4 - 5 1 .

s same g e n e r a l l a w produces , p e r i o d i c a l l y ,

p l e t h o r a of c a p i t a l [which] a r i s e s f rom the same causes a s those which c a l l f o r t h a r e l a t i v e overpopula t ion , and is, t h e r e f o r e , a phenomenon supplement- ing the l a t t e r , al though they s tand a t o p p o s i t e p o l e s -- unemployed c a p i t a l a t one p o l e , and unemployed worker popula- t i o n a t the o t h e r ( C a p i t a l , 3 , p . 2 5 1 1 .

t h e c a p i t a l i s t sys tem - - 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 i n v e s t m e n t 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 marke t , and s o on, can 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 ove raccumu la te . 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 ana rchy o f t h e c a p i t a l i s t economic system, c r i s e s have an i m p o r t a n t f u n c t i o n -- t h e y e n f o r c e some k i n d o f o r d e r and r a t i o n a l i t y o n t o c a p i t a l i s t economic deve lopment . T h i s i s n o t t o say t h a t c r i s e s a r e themse lves o r d e r l y o r l o g i c a l -- t h e y m e r e l y c r e a t e t h e c o n d i t i o n s w h i c h 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 bank- r u p t c i e s , f i n a n c i a l c o l l a p s e , f o r c e d d e v a l u a - t i o n o f c a p i t a l a s s e t s and p e r s o n a l s a v i n g s , 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. Fo rced p e r i o d i c c o r r e c t i o n s t o t h e c o u r s e o f c a p i t a l accumula- t i o n can a l l t o o e a s i l y g e t o u t o f hand, how- eve 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 round 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 can a f f e c t t h e way i n wh ich t h e c r i s i s i s r e s o l v e d s o t h a t t h e r e i s no necessa ry 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 rocess . 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 have 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 sys tem i s t o be s u s t a i n e d .

e f f e c t o f expand ing t h e p r o d u c t i v e c a p a c i t y and renew ing t h e c o n d i t i o n s o f f u r t h e r accumu- l a t i o n , We can c o n c e i v e o f each c r i s i s as s h i f t i n g t h e accumula t io ; p r o c e s s f lnto a new and h i g h e r p lane . 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 f o l l o w i n g s o r t s :

( 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 be much enhanced by t h e employment o f more s o p h i s - t i c a t e d mach ine ry and equ ipment w h i l e o l d e r f i x e d c a p i t a l equ ipment w i l l , d u r i n g t h e c o u r s e o f t h e c r i s i s , have become much cheaper t h r o u g h a f o r c e d d e v a l u a t i o n .

( 2 ) The c o s t o f l a b o r w i l l be much r e - duced because o f t h e w idesp read 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 g a i n e d f o r f u r t h e r accumu la t i on .

( 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 i n v e s t m e n t 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 - d u c t i o n .

( 4 ) An expand ing e f f e c t i v e demand f o r p r o d u c t - - a t f i r s t i n t h e c a p i t a l goods i n - d u s t r y b u t s u b s e q u e n t l y i n f i n a l consumpt ion -- 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.

l a s t e lemen 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, wh ich can i n c r e a s e t h e capa- c i t y t o abso rb p r o d u c t s , can be c o n s t r u c t e d . A n a l y s i s sugges ts 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:

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

P e r i o d i c c r i s e s must i n g e n e r a l have t h e

I t i s , perhaps , u s e f u l t o p i c k up on t h e

( 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 fo rms 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 peasan t 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 fa rm- i n g ) , o r by (ii) expand ing t h e p o i n t s o f i n - t e r c h a n g e w i t h i n t h e sys tem 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 ) .

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 organ iz i :g consumpt ion so 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 a c c u m u l a t i o n p rocess ( 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 example, be coop ted 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 c e r t a i n s o r t ) .

( 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 ex - p a n s i o n 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 l o n g - r u n a c c u m u l a t i o n ( t h i s o b v i o u s l y 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

( 2 ) C r e a t i n g new s o c i a l wants and needs,

( T h e o r i e s o f S u r p l u s Va lue , 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 appears as t h e b a s i s o f accumula- 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 expand ing t h e l a b o r s u p p l y and t h e m a r k e t f o r p r o d u c t s ) .

( 4 ) Expand ing g e o g r a p h i c a l l y i n t o new r e g i o n s , i n c r e a s i n g f o r e i g n t r a d e . e x p o r t i n g c a p i t a l and i n g e n e r a l expand ing towards t h e c r e a t i o n o f wha t Marx c a l l e d " t h e w o r l d mar- k e t . "

I n each o f t h e s e r e s p e c t s , o r by 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 can 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 can be v iewed r e a l l y as a m a t t e r o f i n t e n s i f i c a t i o n o f s o c i a l a c t i v i t y , o f mar- k e t s , o f p e o p l e w i t h i n a p a r t i c u l a r s p a t i a l s t r u c t u r e . The l a s t i t e m b r i n g s us. o f cou rse , 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 expans ion as a necessa ry p r o d u c t o f t h e a c c u m u l a t i o n p rocess . I n wha t 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 f r o m t h e o t h e r s . B u t i t i s c r u c i a l t o r e a l i z e t h a t i n p r a c t i c e v a r i o u s t r a d e - o f f s e x i s t be tween i n t e n s i f i c a t i o n and s p a t i a l ex - t e n s i o n -- a r a p i d r a t e o f p o p u l a t i o n g r o w t h and t h e easy c r e a t i o n o f new s o c i a l wants 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 ex - p o r t and an e x p a n s i o n o f f o r e i g n t r a d e unneces- s a r y f o r t h e expans ion 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 accumu la t i on . B e a r i n g t h i s i n mind, we w i l l p roceed t o examine t h e way i n wh ich 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 t h e p r o d u c t i o n o f s p a t i a l s t r u c t u r e s .

I I . TRANSPORTATION RELATIONS, SPAITAL INTECRA- TION A N D THE "ANNIHILATION O F SPACE BY TIME"

We w i l l s t a r t f r o m t h e p r o p o s i t i o n t h a t t h e " c i r c u l a t i o n o f c a p i t a l r e a l i g e s v a l u e w h i l e l i v i n g l a b o u r c r e a t e s v a l u e ( G r u n d r i s s e , p. 543). C i r c u l a t i o n has two aspec ts ; t h e a c t u a l p h y s i c a l movement o f commod i t i es 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 consumpt ion 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 up and t o t h e s o c i a l med ia- t i o n s ( t h e c h a i n o f w h o l e s a l e r s , 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 necessa ry i n o r d e r f o r t h e p roduced 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 rocess

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 -f- a t t e r a r e r e g a r d e d as necessa ry 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 regarded, t h e r e f o r e , as neces- s a r y d e d u c t i o n s o u t o f s u r p l u s , because t h e c a p i t a l i s t has t o pay f o r them.

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 cons ide red , t h e s p a t i a l c o n d i t i o n , t h e b r i n g i n g o f t h e p r o d u c t t o marke t , b e l o n g s t o t h e p r o d u c t i o n p rocess 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 " (Grundr i sse , pp. 533- 4). However, t h e means o f t r a n s p o r t a t l o n and communica t ion , because t h e y a r e made up a l m o s t e n t i r e l y o f f i x e d c a p i t a l , have t h e i r own p e c u l i a r l a w s o f r e a l i z a t i o n (m., p. 523) -- l a w s w h i c h stem f r o m t h e f a c t t h a t t r a n s - p o r t a t i o n i s s i m u l t a n e o u s l y p roduced and con- 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 sou rce o f s u r p l u s va lue , 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 under 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 o f t e n , t h e r e f o r e , v e r y a c t i v e i n t h i s sphere o f p r o d u c t i o n (m., pp. 531-3).

i n s o f a r as t h e e x p a n s i o n o f t h e m a r k e t and t h e e x c h a n g e a b i l i t y o f t h e p r o d u c t a r e con- n e c t e d w i t h i t " ( I b i d . , p. 534). P r i c e s , b o t h 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 raw 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 m a r k e t 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 "can b e r e d u c e d by impj;oved. cheaper and 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. 142) . 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 e lemen ts 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 marke t . d u c t i o n as a t o t a l i t y , t h e r e d u c t i o n o f t h e 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] be longs t o t h e deve lopment 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. 533-4) .

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 necessa ry . 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 necessa ry a r e v o l u t i o n ... i n t h e means o f com- m u n i c a t i o n and t r a n s p o r t " so t h a t t h e y "became g r a d u a l l y adap ted t o t h e modes o f p r o d u c t i o n o f mechan ica l i n d u s t r y , by t h e c r e a t i o n o f a sys tem o f r i v e r steamer;, r a i l w a y s , ocean s teamers and t e l e g r a p h s ( C a p i t a l , 1, p. 384) . The i m p e r a t i v e t o accumu la te 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 b a r r i e r s :

The t r a n s p ! r t a t i o n and communicatio;s

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

Viewed f r o m th: s t a n d p o i n t o f p r o -

P l a c e d i n t h e c o n t e x t o f a c c u m u l a t f o n i n

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 impor tan 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 . C a p i t a l by i t 8 na ture 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 the p h y s i c a l con- d i t i o n s of exchange ... becomes an e x t r a - o r d i n a r y n e c e s s i t y fo r i t f&YmdPiS8e, p . 5 2 4 ) .

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 fo rms o f commun ica t i on and t r a n s p o r t a t i o n i n o r d e r t h a t " t h e d i r e c t p r o d u c t can be r e a l i z e d i n d i s t a n t m a r k e t s i: mass q u a n t i t i e s " a t t h e same t i m e as new s p h e r e s n o f r e a l i z a t i o n f o r l a b o u r , d r i v e n by c a p i t a l can be 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 so 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 communica t ion and t r a n s p o r t a t i o n .

new sources o f raw m a t e r i a l s and o f new oppor - t u n i t i e s f o r t h e employment o f l a b o r under 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 u n l e s s t h e r e a r e compensat ing improve - ments i n t h e speed o f c i r c u l a t i o n . The t u r n - o v e r t i m e o f a g i v e n c a p i t a l i s equa l t o t h e p r o d u c t i o n t i m e p l u s t h e c i r c u l a t i o n t i m e ( C a p i t a l , 2, p. 248) . The l o n g e r t h e 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 , t h e s m a l l e r i s i t s annua l y i e l d o f s u r p l u s v a l u e . More d i s t a n t marke ts 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 - cess 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 s u r p l u s v a l u e f o r a p a r t i c u l a r c a p i t a l . By t h e same token , 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 a c c u m u l a t i o n p rocess . Speedin; up t h e v e l o c i t y o f c i r c u l a t i o n o f c a p i t a l c o n t r i b u t e s t o t h e a c c u m u l a t i o n p rocess . Under t h e s e con- 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 t i m e : t h e i m p o r t a n t t h i n g i s n o t t h e mar- k e t ' s d i s t a n c e i n space, b u t t h e speed ... w i t h wh ich i t can be reached" ( G r u n d r i s s e , p. 538 ) . There i s t h u s 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 wander ing p e r i o d o f com- m o d i t i e s (Ca i t a l 2, p. 249) . 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 accumula te :

%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 the 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 w i t h t i m e . .. The more deve loped t h e c a p i - t a l . . . t h e more does i t s t r i v e s imul tan- 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 the 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 ime" (Grundr i s se , p . 5 3 9 ) .

p r o d u c t i o n and r e a l i z a t i o n by a l o n g t i m e i n - t e r v a l , may s t i l l be c h a r a c t e r i z e d by 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 . T h i s k i n d o f t r a d e , and "ove rseas commerce i n g e n e r a l " t h u s fo rms "one o f t h e m a t e r i a l bases , ... one o f t h e sou rces o f t h e c r e d i t sys tem" (Ca i t a l , 2, pp. 251-2). deve lops t h i s argument a t g r e a t e r l e n g t h :

TAe open ing up o f more d i s t a n t marke ts ,

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

I n t h e G r u n d r i s s e (p. h r x

I t i s c l e a r . . . t h a t c i r c u l a t i o n 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 produc t ion p r o c e s s cannot be begun anew b e f o r e the t rans format ion of the 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 , the un- d and f l u i d t r a n s i t i o n of va lue 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 produc t ion 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 t ime and s p a c e . . . I t thus appears a s a m a t t e r of chance . . .whe ther 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 , the 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 abou t . The suspens ion of t h i s chance element by c a p i t a l i t s e l f i s c r e d i t .

The c r e d i t sys tem a l l o w s o f a g e o g r a p h i c a l ex- t e n s i o n o f t h e m a r k e t by e s t a b l i s h i n g c o n t ' i n - u i t y where t h e r e was none b e f o r e . The neces- s i t y t o a n n i h i l a t e space by t i m e can i n p a r t be compensated f o r by an emerg ing sys tem o f c r e d i t .

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 promotes 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; Grundr i sse , p. 587) . 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 accomp l i shed b y a

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 - c u l a r . "A long 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 c e r t a i n p o i n t s , t h e r e i s t h e c o n c e n t r a t i o n 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 few" ( { a p i t a l , 2, p. 250). economize on c i r c u l a t i o n c o s t s depends, how- e v e r , on t h e n a t u r e o f t h e t r a n s p o r t a t i o n r e - l a t i o n s e s t a b l i s h e d and h e r e t h e r e appears t o be a dynamic tendency towards c o n c e n t r a t i o n . Improvements i n t h e means o f t r a n s p o r t a t i o n tend :

i n the 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 - ing market , t h a t i s t o s a y , towards the g r e a t c e n t r e s of p r o d u c t i o n and popula- t i o n , towards p o r t s of e x p o r t , e t c . . .. These p a r t i c u l a r l y g r e a t t r a f f i c f a c i l i - t i e s and t h e r e s u l t a n t a c c e l e r a t i o n of the c a p i t a l turnover . . . g i v e r i s e t o q u i c k e r c o n c e n t r a t i o n of b o t h the 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 ) .

r a t i o n a l l o c a t i o n o f a c t i v i t i e s w i t h r e s p e c t

The a b i l i t y t o

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 be d i m i n i s h e d o r enhanced by 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 l a b o u r ... c o n f i n e s s p e c i a l b ranches o f f l roduc- t i o n t o s p e c i a l d i s t r i c t s o f a c o u n t r y ( C a p i k a l , 1 , p. 353) . 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 by 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 dependent m a i n l y on l o c a l consumpt ion , such as b r e w e r i e s , a r e ... deve loped t o t h e g r e a t e f t e x t e n t i n t h e p r i n c i p l e c e n t r e s o f p o p u l a t i o n ( C a p i t a l , 2, p. 251).

The g e o g r a p h i c a l r a t i o n a l i z a t i o n o f t h e p rocesses o f p r o d u c t i o n i s i n p a r t dependent upon t h e chang ing 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 endency 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 p a r t o f c a p i t a l i t s e l f . The l a t t e r r e q u i r e d a t e c h n o l o g i c a l i n n o v a t i o n t o s u s t a i n i t , how- e v e r . Hence t h e i m p o r t a n c e o f t h e steam en- g i n e wh ich "per; i t ted p r o d u c t i o n t o be concen- t r a t e d i n towns and wh ich "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 speak ing , 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. 378) .

I n n o v a t i o n s o f t h i s s o r t , w h i c h r e l a t i v e l y speak ing f r e e p r o d u c t i o n f r o m l o c a l power sou rces and wh ich p e r m i t t h e c o n c e n t r a t i o n o f p r o d u c t i o n i n l a r g e u r b a n a g g l o m e r a t i o n s accom- p l i s h t h e same pu rpose 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 t i m e . 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 be 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 a c c u m u l a t i o n . I n g e n e r a l , i t appears t h a t t h e i m p e r a t i v e t o accumu la te p roduces c o n c e n t r a t i o n o f p roduc - t i o n and o f c a p i t a l a t t h e same t i m e as i t c r e a t e s an expans ion o f t k e m a r k e t f o r r e a l i z a - t i o n . As a consequence, f l o w s i n space" i n - c r e a s e remarkab ly , w h i l e t h e "marke t expands s p a t i a l l y , and t h e p e r i p h e r y i n r e l a t i o n t o t h e

c e n t r e . . . i s c i r c u m s c r i b e d b y a c o n s t a n t l y ex - p a n d i n r a d i u s ( T h e o r i e s o f S u r p l u s Va lue , 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 expan- s i o n . We w i l l examine c e r t a i n a s p e c t s o f t h i s r e l a t i o n f u r t h e r i n t h e s e c t i o n on f o r e i g n t r a d e .

t i e s does n o t r e m a i n cons ta 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 roduc - t i o n and 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 caused b y :he t r a n s f o r m a t i o n i n t r a n s p o r t f a c i l i t i e s (Ca i t a l , 2, p. 250). These t r a n s f o r m a t i o n s a h h e r e l a t i v e d i s t a n c e s o f p l a c e s 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 con- 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 o f o l d and t h e r i s e o f new c e n t r e s o f p r o d u c t i o n " (w., p. 249) .

The emergence o f a d i s t i n c t s p a t i a l s t r u c t u r e w i t h t h e r i s e o f c a p i t a l i s m i s n o t a c o n t r a d i c t i o n - f r e e p rocess . I n l l o rde r t o overcome s p a t i a l u b a r r i e r s and t o a n n i h i l a t e space w i t h t ime , s p a t i a l s t r u c t u r e s a r e c r e a t e d w h i c h themse lves 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 cou rse , 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 consumpt ion w h i c h c a n n o t be moved w i t h o u t b e i n g d e s t r o y e d . 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 be ing , 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 themse lves [appear ] i n l a n d e d p r o p e r t y as m e r e l y ( G r u n d r i s s e , p. 740p. r e p r e s e n t i t s e l f i n t h e f o r m o f a p h y s i c a l l andscape c r e a t e d i n i t s own image, c r e a t e d as use 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 on an expand ing s c a l e . The g e o g r a p h i c a l l andscape w h i c h f i x e d and immob i le c a p i t a l compr i ses i s b o t h a c r o w n i n g g l o r y o f p a s t c a p i t a l deve lopment and a p r i s o n w h i c h i n h i b i t s t h e f u r t h e r p r o g r e s s o f accumu- l a t i o n because t h e v e r y b u i l d i n g o f t h i s l a n d - scape i s a n t i t h e t i c a l t o t h e " t e a r i n g down o f s p a t i a l b a r r i e r s " and u l t ima te131 even t o t h e " a n n i h i l a t i o n o f space by t i m e .

T h i s c o n t r a d i c t i o n i s c h a r a c t e r i s t i c 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 k i n d s . W i t h " f i x e d c a o i t a l t h e

S i n c e 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 -

o s i t e d by i n d u s t r y " C a p i t a l t h u s comes t o

va iue I I i s 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 (Grundr i sse . p. 728) w h i l e t h e degree o f f i x i t y i n c r e a s e s w i t h d u r a b i l i t y . o t h e r t h i n g s b e i n g equa l (Ca i t a l 2, p . -160) . The necessa ry 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 i m m o b i l e s o r t w h i c h t h e i m p e r a t i v e t o accumu la te i m p l i e s imposes a f u r t h e r impera - t i v e :

The va lue of f i x e d c a p i t a l is r e - produced on ly i n s o f a r as i t is used u p i n the produo t ion p r o c e s s . Through d i s u s e i t l o s e s i t s va lue w i thou t i t s va lue pass ing on t o the p r o d u c t . Hence the g r e a t e r the s c a l e on which f i x e d c a p i t a l deve lops ... the more does the c o n t i n u i t y of t h e produc t ion p r o c e s s or the cons tan t f l o w o f r eproduc t ion become an extsrnaEZy oompett ing a o n d i t i o n f o r t h e mode of p roduc t ion founded on c a p i t a l (Crundr ie se , p , 7 0 8 ) .

C a p i t a l i s t deve lopment has t o n e g o t i a t e a k n i f e - e d g e p a t h between p r e s e r v i n g t h e v a l u e s o f p a s t c a p i t a l i n v e s t m e n t s i n t h e b u i l t en- v i r o n m e n t and d e s t r o y i n g t h e s e i n v e s t m e n t s i n o r d e r t o open u p f r e s h r o o m - f o r a c c u m u l a t i o n ( f o r a s p e c i f i c example o f t h i s see Harvey , 1975). As a consequence we can e x p e c t t o w i t n e s s a p e r p e t u a l s t r u g g l e i n w h i c h c a p i t a l -

i s m b u i l d s a p h y s i c a l l andscape 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 t ime , 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 c o u r s e o f a c r i s i s . a t a subsequent p o i n t i n t i m e . ves tment , o f t e n exp ressed as long-waves i n economic deve lopment (see, 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 exp ressed as p e r i o d i c r e - s h a p i n g s o f t h e geo- g r a p h i c e n v i r o n m e n t t o a d a p t i t t o t h e needs o f f u r t h e r a c c u m u l a t 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 space w i t h t i m e i s des igned t o c o u n t e r a c t what 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 f a l l . The c r e a t i o n o f b u i l t env i ronmen ts 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 wh ich , i n s t e a d o f s e r v i n g as d i r e c t means o f p r o d u c t i o n , i s i n - v e s t e d i n means o f t r a n s p o r t a t i o n and communi- c a t i o n and i n t h e f i x e d and t i r c u l a t i n g c a p i t a l r e q u i r e d f o r t h e i r o p e r a t i o n p. 251) . I n v e s t m e n t i n t h e means o t r a n s p o r - t a t i o n i s bound t o i n c r e a s e t h e o r g a n i c compo- s i t i o n o f s o c i a l c a p i t a l w h i c h t e n d s t o gener - a t e a f a l l i n t h e r a t e o f p r o f i t a t t h e same t i m e as i t s e f f e c t s a r e supposed t o i n c r e a s e t h e r a t e o f p r o f i t . Aga in , c a p i t a l i s t deve lop - ment has t o n e g o t i a t e a k n i f e - e d g e between t h e s e two c o n t r a d i c t o r y t e n d e n c i e s .

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 i n v e s t m e n t w h i c h 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 n o t i n t h e i r s o p h i s t i c a t i o n . I t l i e s , r a t h e r , i n t h e way i n w h i c h t h e y can 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 fundamenta l i n s i g h t s i n t o t h e p r o d u c t i o n o f v a l u e and t h e dynamics o f accumu- l a t i o n . I n t h i s t h e M a r x i a n approach i s funda- m e n t a l l y d i f f e r e n t t o t h a t t y p i c a l o f b o u r g e o i s 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 an o p t i m a l con- f i g u r a t i o n under a s p e c i f i c s e t o f c o n d i t i o n s and p r e s e n t s a p a r t i a l s t a t i c e q u i l i b r i u m a n a l y s i s . Dynamics a r e c o n s i d e r e d a t t h e end o f t h e a n a l y s i s -- u s u a l l y as an a f t e r t h o u g h t - - and t h e dynamics n e v e r g e t much beyond com- p a r a t i v e s t a t i c s . Consequent ly . i t i s g e n e r a l - l y acknowledged t h a t b o u r g e o i s 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 a n a l y s i s c e r t a i n n e c e s s i t i e s w i t h r e s p e c t 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 landscape wh ich 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 harmon ious 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 be tween t h e two t h e o r e t i c a l s tances i s i m p o r t a n t . I t sugges ts t h a t t h e two t h e o r i e s a r e r e a l l y concerned w i t h q u i t e d i f f e r e n t t h i n g s . Bourgeo is l o c a t i o n a l a n a l y s i s i s o n l y adequate 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 teaches 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 cou rse , 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 wh ich 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 geography and h i s t o r y .

Temporal c r i s e s i n r i x e d c a p i t e l i n -

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 imens ion .

( C a p i i a l , 2,

The l o c a t i o n t h e o r y i n Marx i s n o t much

I I I . 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 two 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 rms !such as c o l o n i e s , p l a n t a t i o n economies, dependent 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 rom q u e s t i o n s o f f o r e i g n t r a d e i n h i s a n a l y s i s 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 ( C a p i t a l , 1, p. 581). He concedes, o f cou rse , 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 sugges ts t h a t c o n s i d e r a - t i o n o f t h e l a t t e r m e r e l y s e r v e s t o " c o n f u s e w i t h o u t c o n t r i b u t i n g any new e lemen t o f t h e p rob lem [ o f accumu la t i on ] , 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 tendency 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 lemen ts 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 v a l u e t o be a p p r o p r i a t e d . B u t s i n c e t h i s r a i s e s t h e r a t e o f accumu la t i on , i t m e r e l y has tens 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. 237) . The i n c r e a s e i n fo re ign* w h i c h i n e v i t a b l y ari:es w i t h t h e expans ion o f a c c u m u l a t i o n . m e r e l v 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 sphere 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. 408 ) .

Most 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 ma in pu rpose 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 expans ion o f t h e marke t . 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 deve lop - 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 .

S p e c i a l f a c t o r s " a l s o 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 can con fuse , concea 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 such f a c t o r s t o 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 i s n o t d e n l e d - - 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 u n d e r s t a n d i n g 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 .

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 Marx ' s s t a t e m e n t s on f o r e i g n t r a d e can 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 iews on how t h e a c c u m u l a t i o n p rocess 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 - t i o n a l s t r u c t u r e s . These v iews a r e u s u a l l y p r o j e c t e d i n t o a p r e - e x i s t i n g s t r u c t u r e o f n a t i o n s t a t e s , t e r r i t o r i e s w i t h d i f f e r e n t n a t u r a l p r o d u c t i v e c a p a c i t i e s and non- c a p i t a l i s t p r o d u c t i o n systems.

p r o d u c t i v e n e s s o f l a b o u r i s f e t t e r e d b y p h y s i - c a l c o n d i t i o n s " ( C a p i t a l , 1 , p. 5 1 2 ) . I n a g r i c u l t u r e he e x p e c t s unequa 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. 650) . n a t u r a l d i f f e r e n c e s f h i r e f o r e , a " p h y s i t a l b a s i s f o r t h e 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 (and 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 Na tu re , b u t o r a h i s t o r y

embrac ing thousands o f c e n t u r i e s (m., p. 512).

t ends t o t r a n s f o r m t h e s e 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 sys tem o f p r o d u c - t l o n and exchange wh ich se rves t h e purposes o f c a p f t a l i s t accumu la t i on . I n t h e p rocess 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 o v e r 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 commod i t i es (C;P:fal. 3 , p. 1191, w h i l e c e n t e r - p e r i p h e r y r e a ons w i l l be p roduced on a g l o b a l s c a l e :

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

Marx r e c o g n i z e s , f o r example, t h a t " t h e

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

"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 the 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 lobe 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 produc t ion , f o r supp ly ing t h e o t h e r p a r t which remains a c h i e f l y indus- 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 a l s o g a i n a h i g h e r r a t e o f p r o f i t b y 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 " commod i t i es p roduced i n o t h e r c o u n t r i e s w i t h i n f e r i o r p r o d u c t i o n f a c i l i t i e s . . . i n t h e 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. 238 ) . R e l a t i v e p r o d u c t i v e advantages y i e l d excess p r o f i t s and i f t h f y a r e pe rpe tuaE- ed i n t h e f o r m o f a permanent t e c h n o l o g y - g a p 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 lways 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 t e c h n o l o g y - p o o r r e g i o n s .

The i n t e r n a t i o n a l c r e d i t sys tem a l s o has a v i t a l r o l e t o p l a y i n c r e a t i n g t h e w o r l d 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 the n e c e s s i t y of expanding and l eap ing over the b a r r i e r t o c i r c u l a t i o n and the sphere of exchange. T h i s appears 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 . , t h e Eng l i sh [ 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" (Grundriase p . 416; c f . , Theor ie s of W l u e , 3 , p . 1 2 2 ) .

C a p i t a l e x p o r t -- 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 c a p i t a l i s m -- can, i n Marx ' s v iew, p r o v i d e tempora ry 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 ca i t a l e x p o r t can t a k e d i f f e r e n t fo rms as we w i l e s h o r t l y see and be engaged i n f o r q u i t e d i f f e r e n t reasons .

The g e n e r a l d r i v e t o overcome a l l s p a t i a l b a r r i e r s p roduces 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 rms o f p r o d u c t i o n and s o c i a l o r g a n i z a t i o n :

"When an i n d u s t r i a 1 p e o p l e , producing on the founda t ion of c a p i t a l , such as t h e Eng l i sh , e . g . , exchange o i t h t h e Chinese, and absorb va lue ... by drawing the l a t t e r w i t h i n the sphere of c i r c u l a t i o n of c a p i - t a l , then one s e e s r i g h t away t h a t t h e Chinese do no 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 " (Grundriese, p . 7291.

The i n t e r a c t i o n o f c a p i t a l i s t and non- c a p i t a l i s t modes o f p r o d u c t i o n w i t h i n t h e sphere o f c i r c u l a t i o n c r e a t e s s t r o n g i n t e r - dependenc ies . 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 sys tem 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 f r o m n o n - c a p i t a l i s t s o c i e t f e s -- " t o t h i s ex - t e n t t h e c a p i t a l i s t mode o f p r o d u c t i o n i s con- d i t i o n a l on modes o f p r o d u c t i o n l y i n g o u t s i d e o f i t s own s t a g e o f deve lopment " (Cap;tal, 2, p . 1 1 0 ) . T h l s i s a theme w h i c h Luxem u r g (1968) deve lops a t g r e a t l e n g t h i n h e r The Accumu la t i on o f C a p i t a l - - she argues , in e f f e c t , t h a t t h e f r e s h room f o r a c c u m u l a t i o n w h i c h 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 t h e f o r m o f p r e - c a p i t a l i s t s o c i e t i e s w h i c h p r o v i d e un tapped m a r k e t s t o abso rb what i s a p e r p e t u a l t endency f o r t h e o v e r p r o d u c t i o n o f commod i t i es under c a p i t a l i s m . Once t h e s e s o c i e t i e s a r e a l l b r o u g h t i n t o t h e c a p i t a l i s t ne twork then, i n h e r v iew, a c c u m u l a t i o n must cease.

Marx a l s o a rgued t h a t t h e h i s t o r i c t e n d - ency o f c a p i t a l i s m i s t o d e s t r o y and abso rb 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 a c c u m u l a t i o n . I n i t i a l l y , t h e mere p e n e t r a t i o n 0: t h e money f o r m has a d i s r u p t i n g i n f l u e n c e -- i t must d i s s o l v e t h e communitv and "draw new

where money i s n:t t h e community,

c o n t i n e n t s i n t o t h e m e t a b o l i s h o f c i r c u l a t i o n " ( G r u n d r i s s e , pp. 224-5) . I n t h e e a r l y s t a g e s c a D i t a l i s accumu la ted o u t o f t h i s "me tabo l i sm o f ' c i r c u l a t i o n " - - i ndeed , 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 remise f o r t h e deve lopment o f c a p i t a l i s t p r o d u c t i o n . The towns accumu- l a t e use 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 f o r m o f o r g a n i z a t i o n t o p r o d u c e r ' s c a p i t a l :

" a p p r o p r i a t e s an overwhelming p o r t i o n of t h e S U P p l U S produc t p a r t l y a s a med ia tor between commodit ies which s t i l l subs tan - t i a l l y produce f o r u s e value. . .and p a r t - l y because under 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 produc t w i t h whom t h e merchant d e a l t , namely, t h e s lave-owner, 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 - s t a n c e , t h e o r i e n t a l d e s p o t ) r e p r e s e n t t h e consuming w e a l t h and l u x u r y which t h e merchant s e e k s t o t r a p .... Mer- c h a n t ' s c a p i t a l , when i t ho lds a p o s i - t i o n o f dominance, s t a n d s everywhere for a s y s t e m o f robbery , so t h a t i t s development 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 p l u n d e r i n g , p i r a c y , k i d - napping, s l a v e r y and c o l o n i a l conques t .... The development of merchan t ' s c a p i t a l g i v e s r i s e everywhere t o t h e tendency towards p r o d u c t i o n of exchange v a l u e s . . . . 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 euery - where on t h e producing o r g a n i a a t i o n which it f i n d s a t hand and whose d i f - f e r e n t forms a r e mainly c a r r i e d on w i t h a view t o u s e va lue" ( C a p i t a l , 3, p p . 331-2) .

The r e s u l t a n t f o rms 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 p e n e t r a t i o n . One e f f e c t , f o r ex - ample, i s t o c r e a t e s c a r c i t i e s i n t h e non- c a p i t a l i s t s o c i e t y where t h e r e were none be- f o r e . N e c e s s a r i e s a r e t h e r e b y t r a n s f o r m e d i n t o l u x u r i e s and t h i s :

"de te rmines t h e whote s o c i a 2 p a t t e r n of backward na t ions . . .wh ich a r e a s s o c i a t e d w i t h a world market based on 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 large 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 s imp le form of c o t t o n or corn, t h e y can adhere t o t h i s s imp le u n d i f f e r e n t i a t e d Zabour because f o r e i g n t r a d e e n a b l e s them t o con- v e r t t h e s e s imp le p r o d u c t s i n t o any k ind o f u se va lue" ( T h e o r i e s o f Surplus Value , 3 , p . 243) .

The c r e a t i o n o f "underdeve lopmen t " by means o f a c a p i t a l i s t p e n e t r a t i o n w h i c h t r a n s f o r m s non- c a p i t a l i s t s o c i e t i e s f r o m r e l a t i v e l y s e l f - s u f f i c i e n t o r g a n i z a t i o n s f o r t h e p r o d u c t i o n o f use -va lues t o s p e c i a l i z e d and dependent u n i t s p r o d u c i n g exchange va lues , i s a theme w h i c h has been e x p l o r e d by con tempora ry w r i t e r s such as Baran (1957) and F rank (1969) . The l a t t e r , f o r example, c o i n s t h e ph rase " t h e deve lopment o f underdeve lopment " 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 rocesses t h a t Marx had i n mind .

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 These fo rms o f dependency a r e p o s s i b l e

domina te m e r c h a n t ' 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 purposes o f t h e f o r m e r . We t h e n f i n d :

" t h e cheapness of t h e a r t i c l e s produced by machinery, 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 conquering f o r e i g n markets . B y r u i n i n g h a n d i c r a f t p r o d u c t i o n in o t h e r c o u n t r i e s , machinery f o r c i b l y con- v e r t s them i n t o f i e l d s for t h e supp ly o f i t s raw m a t e r i a l . I n t h i s way, Eas 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 . 451) .

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. O r i g i n a l l y a f i e l d f o r " d i r e c t e x p l o i t a t i o n " - - 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 v a l u e s - - 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 marke t f o r B r i t i s h t e x t i l e p r o d u c t s :

"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 dependent on t h e I n d i a n market , 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 having r u i n e d h e r n a t i v e in- d u s t r y . You cannot c o n t i n u e t o inunda te a coun t ry w i t h your manu fac tures , u n l e s s you enable it t o g i v e you some produce in r e t u r n " (On Colon ia l i sm , p . 5 2 ) .

C a p i t a l e x p o r t i n t h i s case s e r v e d a d i f f e r e n t purpose 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 manu fac tu res . 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 romote commodity p r o d u c t i o n w h i c h c o u l d , v i a f o r e i g n t r a d e , p r o v i d e t h e where- w i t h a l t o pay f o r t h e goods w h i c h were b e i n g i m p o r t e d f r o m 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 m a r k e t .

r a t h e r d i f f e r e n t c o n d i t i o n s , a p p l i e s t o t h e deve lopment o f c o l o n i e s t h r o u g h s e t t l e m e n t . Marx i n s i s t s h e r e on d r a w i n g a d i s t i n c t i o n :

"There are t h e coZoniea proper, such a s t h e Un i t ed S t a t e s , A u s t r a l i a , e t c . Here t h e mass of t h e farming 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 of c a p i t a l f rom t h e motherland, a r e n o t c a p i t a l i s t s , nor do t h e y carry on c a p i t a l i s t p roduc t ion . They are more or l e s s peasan t s who work themse lves 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 l i v e l i h o o d .... I n t h e second t y p e o f c o l o n i e s -- p l a n t a t i o n s -- where commer- c i a l s p e c u l a t i o n s f i g u r e from t h e s t a r t and p r o d u c t i o n i s i n t e n d e d for t h e world market , t h e c a p i t a l i s t mode of produc- t i o n e x i s t s , a l though on ly i n a fo rmal 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 labour , which 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 inTwhich s l a v e s a r e used i s

The same s o r t o f l o g i c , o p e r a t i n g under

conducted by c a p i t a l i s t s " ( T h e o r i e s o f Surplus Value , 2, p p . 302-31.

C o l o n i e s o f t h e l a t t e r s o r t h o l d o u t t h e 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 r a t e s o f e x p l o i t a t i o n , t h e l o w e r 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 - d u c t i v i t y . 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 rocess reduce t h e excess p r o f i t t h e r e , b u t i n t h e p rocess t h e ave rage r a t e o f p r o f i t w i l l r i s e (w., pp. 436-7) . 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 ex- p o r t o f c a p i t a l :

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 because i t a b s o l u t e l y could n o t be a p p l i e d a t home, b u t because i t

can be employed a t a h igher r a t e o f p ro - f i t i n a f o r e i g n country" (Capital , 3, p . 2 5 6 ) .

W i t h comp le te m o b i l i t y , o f cou rse , 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 ave rage r a t e t h a n b e f o r e . B u t c o l o n i e s o f t h i s second s o r t a r e s t i l l advan- tageous 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, such as t h a t imposed b y s l a v e r y ) .

C o l o n i e s o f t h e f i r s t s o r t e x i s t i n a v e r y d i f f e r e n t r e l a t i o n t o t h e c a p i t a l i s t mode o f p r o d u c t i o n , however:

"There t h e c a p i t a l i s t regime everywhere 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 producer, who, a s owner o f h i e own c o n d i t i o n s o f labour, em- p loys 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 contra- 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 aystems, m a n i f e s t s i t s e l f here p r a c t i c a l l y i n a s t r u g g l e between them. !?here t h e c a p i t a l i s t has a t h i s back t h e power o f t h e mother- country , 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 product ion and appropr ia t ion , based on t h e inde- 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 ndependen t p r o - duce rs , t r a d i n g some s u r p l u s i n t o t h e marke 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 t h e c a p i t a l i s t f o r m 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 case 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 comp le te c a p i t a l i s t sense. C o l o n i a l f o rms 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 - e s t a b l i s h e d n o n - c a p i t a l i s t s o c i e t i e s . B u t 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 by s p i n - o f f s o f s u r p l u s p o p u l a t i o n and s m a l l q u a n t i t i e s o f c a p i t a l f r o m t h e c e n t r e s o f ac- c u m u l a t i o n , and s i n c e t h e y a l s o f o r m marke ts 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 iewed as b o t h t h e r e s u l t o f p a s t a c c u m u l a t i o n and a p r e c o n d i t i o n f o r f u r t h e r c a p i t a l accumu- l a t i o n . The U n i t e d S t a t e s p r i o r t o t h e C i v i l War, f o r example, p r o v i d e d an i m p o r t a n t , l a r g e - l y n o n - c a p i t a l i s t m a r k e t f o r t h e r e a l i z a t i o n o f commod i t i es p roduced under c a p i t a l i s t s o c i a l r e l a t i o n s i n B r i t a i 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 p r o d u c t i o n a l o n g c a p i t a l i s t l i n e s . 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 independen t , l a r g e l y non- c a p i t a l i s t , p r o d u c t i o n sys tem i n t o a new c e n t r e f o r c a p i t a l a c c u m u l a t i o n . " C a p i t a l i s t i c 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 though t h e l o w e r i n g o f wages and t h e de- 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 p. 773 ) . Marx expec ted a s i m i l a r t r a n s orma- t f o n i n I n d i a :

"when you have once introduced machinery i n t o t h e locomotion o f a country , which pOSSeSSe8 i r o n and Coals, Y O U are unable t o wi thhold i t from i t 8 f a b r i c a t i o n . You cannot maintain a n e t o f ra i lways over an immense country wi thout i n t r o - ducing a l l those i n d u s t r i a l processes necessary t o meet t h e immediate and cur- r e n t wants of rai lway locomotion, and o u t o f which t h e r e must grow t h e appl ica- t i o n o f machinery t o those branches o f

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

(Cap iFa l , 1,

i n d u s t r y n o t immediately conneoted w i t h ra i lways . The Paii?WaY8 eyetem 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 forerunner o f modern industry ... fwhioh) w i l l d i8eolVe t h e h e r e d i t a r y divisions o f labour, upon whioh r e s t t h e I n d i a n

I n d i a n progress and I n d i a n power. ... The bourgeois per iod o f h i e t o r y has t o oreate t h e mater ia l b a s i s o f t h e new world ... Bourgeois i n d u s t r y and oommeroe c r e a t e t h e r e m a t e r i a l condi t ione o f a new world i n t h e same way t h a t geologi - c a l revoZution8 have created t h e eur face o f t h e ear th" (On Colonial ism, p p . 8 6 - 7 1 .

Such a t r a n s f o r m a t i o n d i d n o t o c c u r i n I n d i a b u t i t d i d i n t h e U n i t e d S t a t e s . The f a i l u r e t o p r e d i c t c o r r e c t l y i n t h e I n d i a n case has no b e a r i n g wha tsoever on t h e v a l i d i t y o f 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 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 says 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 - s h i p s i n t h e c e n t r e s o f c a p i t a l i s t p r o d u c t i o n and a g e o g r a p h i c a l e x t e n s i o n o f t h o s e 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 o c c u r -- t h e l a t t e r a r e a m a t t e r f o r c o n c r e t e h i s t o r i c a l ana lyses . M a r x ' s 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 case 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 a n a l y s i s , n o t o f t h e o r y .

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 reasons f o r b e l i e v l n g t h a t t h e c a p i t a r o d u c t i o n sys tem c o u l d n o t and c a n n o t becli:tu-n i t s scope. F o r t h i s t o be t h e case wou ld r e q u i r e t h e e q u a l - i z a t i o n o f p r o f i t s , t h r o u g h c o m p e t i t i o n , on a g l o b a l s c a l e . To b e g i n w i t h , o f cou rse , t h e r e a r e a l l k i n d s o f b a r r i e r s t o be overcome be- f o r e such an e q u a l i z a t i o n i n p r o f i t r a t e s c o u l d o c c u r . We wou ld have t o presume t h e comp le te 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. 196) and adequa te i n s t i t u t i o n h A g e - ments ( fCee t r a d e , u n i v e r s a l money and c r e d i t system, t h e a b o l i t i o n o f a l l l aws 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 sphere t o p r o d u c t i o n i , t o a n o t h e r and f r o m one l o c a l i t y t o a n o t h e r , and so on ) . Under c a p i t a l i s m , t h e r e a r e a lways t e n d e n c i e s push- i n g i n t h e s e d i r e c t i o n s . F o r example:

"it is only f o r e i g n t r a d e , t h e development o f t h e market t o a world market, which causes money t o develop 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 weal th , m l u e , money, hence a b s t r a c t labour, develop i n t h e measure t h a t concre te 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 product ion r e s t s on t h e va lue or t h e t rans format ion o f t h e labour embodied i n t h e product i n t o s o c i a l labour. 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 rade 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

Castes , tho88 deUi8iVe impediments t o

c a p i t a l i s ' t product ion" (Theor ies of Sur- p l u s Value, 3, p . 2 5 3 1 .

The tendency 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 es t ;b l i sh a u n i v e r s a l s e t o f va lues , f ounded 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 on a g l o b a l s c a l e . There i s , i n l i k e manner, a tendency f o r c a p i t a l e x p o r t t o e q u a l i z e t h e r a t e o f p r o f i t on a g l o b a l s c a l e . An accumu- l a t i o n p rocess i m p l i e s a tendency f o r t h e p e n e t r a t i o n o f c a p i t a l i s t s o c i a l r e l a t i o n s 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 and exchange t h r o u g h o u t t h e w o r l d .

c a p i t a l be tween c o u n t r l e s , d i f f e r e n t p roduc - t i v i t i e s o f l a b o u r a c c o r d i n g t o n a t u r a l

B u t d i f f e r e n t o r g a n i c c o m p o s i t i o n s o f

d i f f e r e n c e s , t h e 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 - 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" 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 (Grundr i s se , p . 651). w i l l n o t be accompanied by an e o u a l i z a t i o n i n

of i t s d i s s o l u t i o n and of the d i s s o l u t i o n

t h e r a t e o f e x p l o i t a t i o n be tween c o u n t r i e s (Ca i t a l 3, pp. 150 -1 ) . I t f o l l o w s t h a t " t h e 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 exchange 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 excess i s pocke ted , as i n any ex - change be tween c a p i t a l and l a b o u r , by a c e r t a i n c l a s s " (u., p. 238) . Marx t h e n n o t e s t h a t :

"Here t h e law of va lue 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 - ing between s k i l l e d , complex labour and u n s k i l l e d , s imple labour w i t h i n a c o u n t r y . I n t h i s c a s e the r i c h e r country e x p l o i t s t h e poorer one, even where t h e l a t t e r ga ins by t h e exchange" (Theor ie s of Surplus Value, 3 , p p . 105- 6).

These a r e t h e k i n d s o f " s p e c i a l f a c t o r s " w h i c h make o f f o r e i g n t r a d e a v e r y complex i s s u e , w h i c h g e n e r a t e 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 te rms o f t r a d e between deve loped and un- deve loped s o c i e t i e s ( T h e o r i e s o f S u r p l u s Va lue , 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 by 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 by a g e n e r a l r a t e o f p r o f i t " be tween 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 by Emmanuel (1971) 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 "unequa l ex - 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 deve lopment t o overcome t h e s o c i a l and c u l t u r a l b a r r i e r s t o i t s pene- t r a t i o n ( a l t h o u g h t h e s e b a r r i e r s can be ex - c e e d i n g l y r e s i s t a n t ) . 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 i t s e l f . 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 con- t r a d i c t i o n s o f c a p i t a l i s m . And u n d e r l y i n g a l l o f t h e s e m a n i f e s t a t i o n s 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 deve lopment . L e t us con- 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 tage .

t i o n o n l y t h r o u g h expand ing . Expans ion i s s i m u l t a n e o u s l y i n t e n s i f i c a t i o n ( o f s o c i a l 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 resh room f o r a c c u m u f a t i o n must e x i s t o r be c r e a t e d i f c a p i t a l i s m i s t o s u r v i v e . I 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 domina ted i n e v e r y r e s p e c t , i n e v e r y sphere 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 wou ld 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 wants and needs wou ld 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 reached t h e a c c u m u l a t i o n p r o - cess wou ld s low . S t a g n a t i o n wou ld s e t i n a t t e n d e d by a who le gamut o f economic and s o c i a l p rob lems . 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 wou ld 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 sphere o f c o m p e t i - t i o n :

C a p i t a l i s m can escape i t s own c o n t r a d i c -

"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 the c r u t c h e s of p a s t modes of produc t ion , or of those 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 the c r u t c h e s and moves i n accordance w i t h i t s own laws . As soon a s i t b e g i n s t o sense i t s e l f and becomes consc ious of i t s e l f a s a b a r r i e r t o development , i t s e e k s re fuge 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 , bu t a re a t t h e same t ime t h e h e r a l d s

IV. SOME COMMENTS ON THE THEORY OF IMPERIALISM

Marx h i m s e l f n e v e r p roposed a t h e o r y o f i m p e r i a l i s m . I n h i s comments on t r a n s p o r t a t i o n r e l a t i o n s , l o c a t i o n t h e o r y and f o r e i g n t r a d e he c l e a r l y i n d i c a t e s , however, t h a t he has i n mind some s o r t o f g e n e r a l t h e o r y o f c a p i t a l accumu- l a t i o n on an expand ing and i n t e n s i f y i n g geo- g r a p h i c a l s c a l e . We have, i n t h e p r e c e e d i n g two 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 ma in f e a t u r e s o f t h a t g e n e r a l 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 pos t -Marx o b v i o u s l y has someth ing t o c o n t r i b u t e towards 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 unders tand - 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 who le h o s t o f r e p r e s e n t a - t i o n s o f t h e m a t t e r - - M a r x i s t , n e o - M a r x i s t , Keynes ian , 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 each s c h o o l ( B a r r a t t Brown, 1974, p r o - v i d e s a g e n e r a l o v e r v i e w ) . I s h a l l c o n f i n e m y s e l f t o some g e n e r a l comments.

The p rob lem f o r t h e M a r x i s t s and neo- M a r x i s t s , i t i s g e n e r a l l y argued, i s t o d e r i v e a t h e o r y o f i m p e r i a l i s m o u t o f Marx. And i t i s g e n e r a l l y ag reed t h a t no one has y e t suc- ceeded i n d o i n g so a l t h o u g h many have 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 - d u c t i o n i n a p u r e s t a t e w i t h o u t r e f e r e n c e 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 demons t ra tes 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 expans ion 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 , by way o f c o n t r a s t , a t h e o r y o f h i s t o r y . I t i s t o be used t o ex - p l a i n t h e h i s t o r i c a l deve lopment 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 tage . I t has t o add ress 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 , d e t e r m i n e o u t - comes t h r o u g h t h e i r i n t e r a c t i o n s and t h e r e b y s e t t h e p r e c o n d i t i o n s f o r t h e n e x t s t a g e i n t h e e v o l u t i o n 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 . 4 a r x n e v e r c o n s t r u c t e d such an 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 ev idence t h a t he 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 rade and t h e Wor ld M a r k e t (Marx-Enge ls Cor respondence, 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 used 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 any 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 t r a d e , M a r x ' 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 a n a l y s e s a t c e r t a i n p o i n t s . 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 . wh ich most 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 necessa ry tendency 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 t i m e - - t e n d e n c i e s wh ich Marx d e r i v e s d i r e c t l y f r o m t h e t h e o r y o f a c c u m u l a t i o n . M a r x ' s t h e o r i e s o f t r a n s p o r t a t i o n r e l a t i o n s , l o c a - t i o n 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 , expand ing spheres o f r e a l i z a t i o n - - i n s h o r t t h e gener - a l t h e o r y o f a c c u m u l a t i o n on an expand ing and i n t e n s i f y i n g g e o g r a p h i c a l s c a l e -- i n f a c t compr i se 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 ) . S ince most w r i t e r s i g n o r e t h i s g e n e r a l t h e o r y embed- ded i n Marx i t wou ld appear t h a t t h i s p r o v i d e s us w i t h t h e m i s s i n g l i n k between M a r x ' s t h e o r y

o f a c c u m u l a t i o n 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 .

v a t i o n s . 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 and i n t e n s i f y geo- g r a p h i c a l l y . 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. L o o k i n g 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 con- c r e t e h i s t o r i c a l ana lyses , we w i l l u s u a l l y be a b l e t o i d e n t i f y t h e u n d e r l y i n g l o g i c d i c t a t e d by c a p i t a l a c c u m u l a t i o n a t work . B u t 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 u n d e r s t o o d i n te rms o f t h e b a l a n c e o f f o r c e s - - 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 l i k e -- t h r o u g h wh ich i n t e r e s t g roups 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 by 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

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 -

( c f : 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. 21) . 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 accumula- 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 d i f f i c u l t y . We have t o s p e c i f y how t h e " i n n e r l o g i c " o f t h e c a p i t a l i s t mode o f p r o - d u c t i o n , a b s t r a c t l y conce ived , 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 p rocess . And we a l s o have to t a k e accoun t o f 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 wh ich , 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 c o u r s e o f c a p i t a l a c c u m u l a t i o n , a r e n o t u n i q u e l y d e t e r m i n e d by i t .

Most a n a l y s e s o f i m p e r i a l i s m u s u a l l y s t a r t i n f a c t f r o m t h e a n a l y s i s o f 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 . T h i s i s p a r t i c u l a r l y t r u e i n t h e work o f T h i r d Wor ld w r i t e r s , such as Fanon (1967) , Amin (1973) and Frank (1969) , whose s t a r t i n g p o i n t i s t h e e x p e r i e n c e o f d o m i n a t i o n and e x p l o i t a t i o n by t h e advanced c a p i t a l i s t c o u n t r i e s . T h i s e x p e r i e n c e i s t h e n p r o j e c t e d i n t o t h e M a r x i a n f ramework 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 g e n e r a l . The consequence o f t h i s i s a v a r i e t y o f r e p r e s e n t a t i o n s o f t h e M a r x i a n t h e o r y o f i m p e r i a l i s m . 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 ime , b u t each ends up d r a w i n g upon j u s t one o r two 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 a c c u m u l a t i o n f o r s u p p o r t . By i m p l i c a - t i o n , and sometimes q u i t e e x p l i c i t l y , i t i s sugges ted t h a t o t h e r f a c e t s o f 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 a r e e i t h e r i r r e l e v a n t o r wrong.

Luxemburg (1968) i s an e x c e l l e n t case i n p o i n t . She b e g i n s h e r a n a l y s i s w i t h a concen- t r a t e d c r i t i c i s m o f M a r x ' s r e p r o d u c t i o n schemes i n Volume 2 o f Ca i t a l and, r e a c t i n g v e r y s t r o n g l y t o t h e d k 7 m p l i e d t h e r e t h a t c a p i - t a l i s t a c c u m u l a t i o n can c o n t i n u e i n p e r p e t u i t y , she seeks t o show t h a t Marx had f a i l e d t o demon- s t r a t e where t h e e f f e c t i v e demand f o r commodi- t i e s was t o come f r o m i f a c c u m u l a t i o n was t o be s u s t a i n e d . Luxemburg '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 be 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 sys tem i n p r e - c a p i t a l i s t econom- i c f o r m a t i o n s . 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 accumula- t i o n o f c a p i t a l i n i t s c o m p e t i t i v e s t r u g g l e f o r what s t i l l r ema ins open o f t h e non- 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 ev idence , Luxemburg assembles des- c r i p t i o n s o f t h e v i o l e n t p e n e t r a t i o n o f non- c a p i t a l i s t s o c i e t i e s , such as China, by c a p i - t a l i s t s i n s e a r c h o f m a r k e t s as w e l l as des- c r i p t i o n s o f t h e v a r i o u s i m p e r i a l i s t 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.

b o t h c o m p e l l i n g and b r i l l i a n t . B u t h e r a n a l y - s i s amounts t o a o n e - s i d e d deve lopment o u t o f

Luxemburg 's argument i s , i n many r e s p e c t s ,

Marx. The o b j e c t i o n i s n o t t h a t she i s wrong -- indeed, we have a l r e a d y seen t h a t c a p i t a l i s t deve lopment 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 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 ! o c i e t i e s a r e i m p l i e d b y t h e i m f e r a t i v e t o s p a t i a l b a r r i e r s , and t h a t v i o l e n c e , mak ing use o f s t a t e power, can 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 accumu la te s o l e l l i n t h e s e te rms. The o t h e r means where- by c a p i t a l i s m can c r e a t e f r e s h room f o r accumu- l a t i o n a r e i g n o r e d .

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 , Luxemburg '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 documen ta t i on o f how t h e l o g i c o f c a p i t a l i s t a c c u m u l a t i o n u n d e r l i e s t h e p e n e t r a - t i o n and d i s r u p t i o n o f n o n - c a p i t a l i s t s o c i e - t i e s , t h e work i s c o m p e l l i n g . B u t r e a d as a d e r i v a t i o n o f t h e n e c e s s i t y f o r i m p e r i a l i s m o u t o f a c o r r e c t i o n o f M a r x ' s e r r o r s i n h i s s p e c i f i c a t i o n o f c a p i t a l i s t r e p r o d u c t i o n , Luxemburg 's work i s b o t h e r roneous and miscon- c e i v e d . 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 rocesses 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 c e r t a i n s t a g e i n c a p i t a l i s t h i s t o r y . v i t a l t o t h e p e r p e t u a t i o n o f t h e c a p i t a l i s t o r d e r . Whether o r n o t t h i s t u r n s o u t t o be t h e case 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 sys tem 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 works o f Baran (1957) and Frank (1969) can be c o n s i d e r e d i n a s i m i l a r way. C l e a r l y i m p l i e d 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 g e n e r a l s t r u c t u r e o f c e n t e r - p e r i p h e r y 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 dependencr and " t r a n s f o r m neces- 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 new ly 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 work o f Baran and F rank and t h e y can 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 rame 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 - t i o n . Baran and F rank 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 rounds when t h e y c l a i m t h a t back- wardness and underdeve lopment can and must be p roduced 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 c a p i t a l i s t s o c i a l r e l a t i o n s i n t o n o n - c a p i t a l i s t economles. They may a l s o be on s t r o n g f a c t u a T grounds when t h e y c l a i m t h a t t h i s i s t h e gener - a l r e l a t i o n s h i p wh ich e x i s t s be tween t h e T h i r d Wor ld and t h e m e t r o p o l i t a n c e n t r e s o f accumula- t i o n . But , 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 deve lopment o u t o f M a r x ' s t h e o r y o f accumula- t i o n . I t wou ld be b o t h e r roneous and miscon- c e i v e d t o r e g a r d t h i s deve lopment 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 resh room f o r a c c u m u l a t i o n can be c r e a t e d by a v a r i e t y o f s t ra tegems i n a c t u a l h i s t o r i c a l s i t u a t i o n s . Whether o r n o t a d i f f e r e n t s t r u c t u r e o f r e l a t i o n s t o t h a t ex - p l o r e d by Baran and F rank 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 con- t a i n e d 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 .

L e n i n ' s c o n t r i b u t i o n t o 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 s , o f cou rse , f undamenta l . And i n some r e s p e c t s i t i s t h e most 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. L e n i n d i d n o t a t t e m p t t o d e r i v e t h e t h e o r y o u t 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 sqmeth ing t o be r e v e a l e d by m a t e r i a l i s t h i s t o r i c a l a n a l y s i s . S p e c i f i c a l l y , he was conce rned t o : x p l a i n t h e 1914-18 war 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 . "

t e a r down

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 must

( L e n i n , 1963, p. 673) . 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

t e r i s t i c s o f t h e phenomenal f o r m assumed by c a p i t a l i s m d u r i n g a p a r t i c u l a r s t a g e o f i t s deve lopment - - s p e c f f i c a l l y , d u r i n g t h e l a t e n i n e t e e n t h and e a r l y t w e n t i e t h c e n t u r i e s . I n 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 work o f a n o n - M a r x i s t , Hobson (1938) . Yet L e n i n a l s o seeks t o un:over " t h e economic essence 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 appearance o f i m p e r i a l i s m t o M a r x ' 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 n a t u r 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 .

i n t h e i m p e r i a l i s t s t a g e o f i t s deve lopment i s summarized i n te rms 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 deve loped t o such a high 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) the 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 the b a s i s of t h i s " f inance 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) the e x p o r t of c a p i t a l a s d i s t i n - guished from the e x p o r t of commodities a c q u i r e s e x c e p t i o n a l importance; ( 4 1 t h e format ion of i n t e r n a t i o n a l mono- p o l i s t a s s o c i a t i o n s which share the worZd among themse lves , 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 the whole world 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 m p e r i a l i s m t o d e s c r i b e t h e g e n e r a l c h a r a c -

The phenomenal appearance o f c a p i t a l i s m

The tendency towards 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 M a r x ' s a n a l y s i s , i n t e g r a l t o t h e g e n e r a l p rocess o f a c c u m u l a t i o n ( C a p i t a l , 1, Chap te r 2 5 ) . The p h y s i c a l 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 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 M a r x ' s t h e o r y . 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 a c h i e v e an equa l deve lop - ment i n a l l spheres 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 worke rs :

"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 no t be c a p i t a l i s m ; f o r b o t h uneven 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 premises 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 no t f o r t h e purpose of r a i s i n g the s tandard of l i v i n g of t h e masses i n a g i v e n coun- t r y , f o r t h i s would mean a d e c l i n e i n p r o f i t s f o r t h e c a p i t a l i s t s , but f o r t h e purpose 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 the backward 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 a r e u s u a l l y 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 are low, raw m a t e r i a l s a r e cheap ... The ex - 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 those c o u n t r i e s t o which i t i s e x p o r t e d . While , t h e r e f o r e , t h e expor t of c a p i t a l may t end 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 c a p i t a l - e x p o r t i n g c o u n t r i e s , i t can on ly do s o by expanding and deepen- ing t h e f u r t h e r development of c a p i t a l - ism throughout the world" (Lenin, 1963, p p . 7 1 6 - 8 ) .

L e n i n i s h e r e emphas iz ing 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 c o n t a i n e d i n t h e M a r x i a n t h e o r y 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

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 . P l a i n l y , he i s n o t e x c l u d i n g t h e deve lopment 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 spheres 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 , accomp l i shed by f i n a n c e c a p i t a l i s m t h r o u g h p o l i t i c a l man ipu la - t i o n s , o f t h e i n e v i t a b l e uneven deve lopment 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 "can and must be d e f i n e d d i f f e r e n t l y i f we b e a r i n m i n d n o t o n l y t h e b a s i c , p u r e l y economic concep ts ... b u t a l s o t h e h i s t o r i c a l p l a c e o f t h i s s t a g e 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 g e n e r a l , o r t h e r e l a t i o n be tween i m p e r i a l i s m and t h z two main t r e n d s i n t h e w o r k i n g c l a s s movement (u., p. 737). I m p e r i a l i s m t h u s has t h e e f f e c t o f " e x p o r t i n g " some o f t h e t e n s i o n s c r e a t e d by 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 t o p e r i p h e r a l a reas . 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 upper 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 wha 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. 677) . T h i s l a s t a s p e c t o f i m p e r i a m has t o be rega rded 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 deve lopment 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 deve lopment o f t h e c l a s s s t r u g g l e . 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 g e o g r a p h i c a l expans ion o f deve lopment must o c c u r .

L e n i n b l e n d s c o n c r e t e h i s t o r i c a l a n a l y s i s , 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 fundamenta l i n s i g h t s f r o m Marx ' 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 must 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 a c c u r a c y 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 s c o r e 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 t h e l a t t e r r e s p e c t , L e n i n , l i k e most o t h e r w r i t e r s on i m p e r i a l i s m , deve lops M a r x ' s g e n e r a l 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 t h e o r y o f c a p i t a l i s t a c c u m u l a t i o n i s p a r - t i a l l y obscu red f r o m v iew .

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 t h e o r y " u n t o i t s e l f , " d i v o r c e d f r o m 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 . As a consequence, t h e argument o v e r what i m p e r i a l i s m i s , has degenera ted i n t o an argument o v e r wh ich o f s e v e r a l compe t ing p r i n c i p l e s s h o u l d be used t o d e f i n e i t . marke ts? The a t t a i n m e n t o f cheaper raw m a t e r i a l s ? The s e a r c h i n g o u t o f a more e a s i l y e x p l o i t e d and a more d o c i l e l a b o u r f o r c e ? Is i t p r i m i t i v e a c c u m u l a t i o n a t t h e expense o f n o n - c a p i t a l i s t s o c i e t i e s ? Does i t i n v o l v e c h e a t i n g t h r o u g h exchange? Is i t t h e neces- s a r y e x p o r t o f c a p i t a l t o s e t up new c e n t r e s o f i n d u s t r i a l a c c u m u l a t i o n ? Is i t t h e concen- t r a t i o n o f r e l a t i v e s u r p l u s v a l u e on a l o c a l - i z e d b a s i s ? I s i t t h e m a n i f e s t a t i o n o f monopoly power, exp ressed 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 sys tem o f n a t i o n s t a t e s ? I s i t f i n a n c e c a p i t a l o p e r a t i n g t h r o u g h 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 coop ta - t i o n ? I s i t s i m p l y t h e i n t e r n a t i o n a l d i v i s i o n o f l a b o u r ? Is i t a p a r t i c u l a r c o m b i n a t i o n o f any o f t h e above? Under M a r x ' s g e n e r a l t h e o r y a l l o f t h e above a r e p o s s i b l e and none a r e t o be exc luded . I t i s . t h e r e f o r e , t h e t a s k o f c a r e f u l h i s t o r i c a l a n a l y s i s t o d i s c o v e r w h i c h o f t h e s e 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 s t a g e o f deve lopment o f c a p i t a l i s t s o c i a l

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

The deve lopment o f pve rseas

f o r m a t i o n s . 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 rms and man i - f e s t a t i o n s . A l l i t does i s t o i n d i c a t e t h e u n d e r l y i n g i m p e r a t i v e , c o n t a i n e d w i t h i n t h e c a p i t a l i s t system, t o accumu la te 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 expand ing and i n t e n s i f y i n g g e o g r a p h i c a l s c a l e .

a n a l y s i s o f t h e s e v a r i o u s m a n i f e s t a t i o n s i n r e l a t i o n t o c a p i t a l a c c u m u l a t i o n i s i m p o s s i - b l e . Indeed, a g r e a t dea l can be done he re . And we can 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 accumula te , by wha teve r means i s e a s i e s t . The p a t h o f c a p i t a l i s t accumula- t i o n w i l l move t o whereve 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 ana lyses 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 weakes 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, by 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 weakes 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 by 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 b o u r g e o i s i e t o a c c o m p l i s h i t s h i s t o r i c a l m i s - s i o n - - t h e a c c u m u l a t i o n o f c a p i t a l .

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

V . MARX'S THEORY OF CAPITAL 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 expand ing g e o g r a p h i c a l s c a l e i s q u i t e com- p l e x . We have d e l v e d i n t o Marx t o t r y t o d i s - c o v e r i n h i s w r i t i n g s some o f i t s b a s i c com- ponen ts . 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 mode ls 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 t o t a l i t y . 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 (pp . 4 0 7 - l o ) , Marx p r o v i d e s a k i n d o f " o v e r v i e w s k e t c h " o f h i s g e n e r a l t h e o r y :

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 s u r p l u s v a l u e ... is c o n d i t i o n a l upon an expans ion , s p e c i f i c a l l y a c o n s t a n t ex - pans ion , o f t h e sphere of c i r c u l a t i o n .... A p r e c o n d i t i o n of p r o d u c t i o n based on c a v i t a t i s t h e r e f o r e t h e v r o d u c t i o n

h e e n c y on 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 labour, so i t has t h e complementary tendency t o c r e a t e more p o i n t s of exchange.

From t h i s , o f cou rse , 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 m a r k e t [ w h i c h ] i s d i r e c t l y g i v e n i n t h e concep t 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 , t o 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 use 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 :

t h e produc t ion of r e l a t i v e s u r p ~ u s - va lue ... r e q u i r e s t h e produc t ion of new consumvtion; 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 expands a s d i d t h e p r o d u c t i v e c i r c l e p r e v i o u s l y . F i r s t l y q u a n t i t a t i v e ex - pans ion of e x i s t i n g consumption; second ly , c r e a t i o n of new needs by pro- paga t ing e x i s t i n g ones 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, needs 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 v a l u e s .

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 tenden- c i e s , c a p i t a l i s m c r e a t e s :

a sys t em o f genera l e x p l o i t a t i o n o f t h e

n a t u r a l and human q u a l i t i e s .... Bence t h e g r e a t c i v i Z i a i n g i n f l u e n c e o f c a p i t a l ; i t s p r o d u c t i o n o f a s t a g e o f s o c i e t y i n comparieon t o which a l l e a r l i e r one8 appear a s mere l o c a l deve tovmen t s of humanity and a8 n a t u r e i d o l a t o r y . 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 an o b j e c t f o r humankind, p u r e l y a m a t t e r of u t i l i t y .... In accord w i t h t h i s t endency , 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 worsh ip , a s w e l l a s a l l t r a d i t i o n a l , con- f i n e d , e n c r u s t e d s a t i s f a c t i o n e of p r e s e n t needs , 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 which hem i n t h e development o f t h e f o r c e s of pro- d u c t i o n , t h e expans ion o f needs , t h e a l l - s i d e d development o f p roduc t ion , 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 .... d i c t s i t s c h a r a c t e r , i t s p r o d u c t i o n moves i n c o n t r a d i c t i o n s which a r e 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 i t i r r e s i s t a b l y s t r i v e s encoun ter s b a r r i e r s i n i t s own n a t u r e , which w i l t , a t a c e r t a i n s t a g e of i t s development , a l l o w i t t o be recogniaed a s be ing 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 t endency , and hqnce w i l l d r i v e towards i t 8

B u t . . . s i n c e e v e r y such b a r r i e r con t ra -

Own SUSpenSl-OTl."

M a r x ' s s k e t c h does n o t i n c o r p o r a t e a l l o f t h e e lemen ts w h i c h we have i d e n t i f i e d i n t h i s paper b u t i t does convey a f e e l i n g f o r what he had i n m ind i n c o n s t r u c t i n g a t h e o r y o f accumu- l a t i o n on an expand ing 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 accumu la te l i e s a t t h e c e n t e r o f t h e t h e o r y . T h i s d r i v e i s exp ressed p r i m a r i l y i n t h e p r o d u c t i o n p rocess 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 v a l u e . B u t t h e c r e a t i o n o f v a l u e i s c o n t i n - g e n t upon t h e a b i l i t y t o r e a l i z e i t t h r o u g h c i r c u l a t i o n . 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 s i m p l y , t h e n e g a t i o n o f t h e v a l u e 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 sphere 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 n e v e r t i r e s o f emphas iz ing , 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 p rocess o f c i r - c u l a t i o n be tween 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 rocess , w h i c h must expand, must accumu- l a t e , c o n s t a n t l y re -shapes t h e work p rocess 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 as i t c o n s t a n t l y changes t h e d imens ions and fo rms o f c i r c u l a t i o n . Marx h e l p s us t o under - s t a n d t h e s e p rocesses t h e o r e t i c a l l y . B u t 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 - t u r e o f c a p i t a l l s t s o c i a l r e l a t i o n s a t t h i s p o i n t i n h i s t o r y . We have t o f o r c e an i n t e r - s e c t i o n be tween 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 t h e o t h e r . 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 expand ing 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 such an i n t e r s e c t i o n . We have i n d e e d t o d e r i v e t h e t h e o r y o f i m p e r i a l i s m o u t o f 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 . 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 s t e p s . I n M a r x ' s own t h o u g h t i t appears 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 necessa ry c r e a - t i o n o f a g e o g r a p h i c a l l andscape 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 - t i o n . B u t t h e s t e p s f r o m t h e t h e o r y o f accumu- l a t i o n t o t h e t h e o r y o f i m p e r i a l i s m , o r more g e n e r a l l y t o a t h e o r y o f h i s t o r y , a r e n o t s i m p l e mechan ica l d e r i v a t i o n s because down t h i s p a t h we have t o a c c o m p l i s h a l s o t h a t

t r a n s f o r m a t i o n f r o m t h e g e n e r a l t o t h e con- c r e t e w h i c h compr i sed t h e c e n t r a l t h r u s t o f Marx ’ s u n f i n i s h e d work. We have t o l e a r n , i n s h o r t , t o comp le te t h e p r o j e c t w h i c h Marx undersco res 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 under - dim-- ng o f t h e p rocesses o f p r o d u c t i o n and c i r c u l a t i o n under 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 approach s t e p by s t e p t h e f o r m wh ich t h e y assume on t h e s u r f a c e o f soc i e t y . ”

REFERENCES

Amin, S., 1973, A c c u m u l a t i o n on a Wor ld S c a l e

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

( M o n t h l y Review Press , New York ) .

Growth ( M o n t h l y Review Press , 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 (Pengu in 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 Wretched o f t h e E a r t h (Pengu in Books, Harmondsworth, M i d d l e s e x ) .

F rank , A . G., 1969, C a p i t a l i s m and Underdeve lop - ment i n L a t i n Amer ica ( M o n t h l y Review Press , New Y o r k ) . /

F rank , A . G., 1969, C a p i t a l i s m and Underdeve lop - ment i n L a t i n Amer ica ( M o n t h l y Review , Press , New Y o r k ) . ,

Harvey , 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 C o u n t r i e s - t h e Case o f t h e U n i t e d S t a t e s ” i n 6. Gapper 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 , B e v e r l e y H i l l s , C a l i f o r n i a ) .

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

Kuznets , S., 1961, C a p i t a l i n t h e Amer ican 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 Bureau o f Economic Research. P r i n c e t o n U n i v e r s i t y P r e s s ) .

S tage o f C a p i t a l i s m ” i n S e l e c t e d Works, Vo l . 1 ( P r o g r e s s P u b l i s h e r s , Moscow).

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

Luxemburg, R., 1951, The A c c u m u l a t i o n o f Cap i - - t a l (Rou t ledge and Kegan Pau l , London).

Marx, K., 1967, C a p i t a l (Th ree Volumes; I n t e r - n a t i o n a l P u b l i s h e r s , New York ) .

, 1970, A C o n t r i b u t i o n t o t h e C r i t i q u e o f P o l i t i c a l Economy ( I n t e r n a t i o n a l Pub- l i s h e r s , New York ) .

, 1973, G r u n d r i s s e (Pengu in Books,

, 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

Harmondsworth, M i d d l esex ) .

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 Su r - l u s Va lue (Th ree P a r t s ; P rog ress Pub-

b o s c o w ) .

, and Enge ls , F., 1955, S e l e c t e d Cor - respondence (P rog ress P u b l i s h e r s , Moscow).

ment (Methuen, :ondon). Thomas, B., 1972, M i r a t i o n and Urban Deve lop -

F J R T H C O M I N G I N THE l l E X T Y E A R

Underdeve lopment i n L a t i n Amer ica - - i s s u e e d i t e d by L u i s Ch ives , p r e s e n t l y b e i n g t r a n s - l a t e d .

Underdeve lopment i n t h e T h i r d Wor ld -- two j s s u e s e d i t e d by M i l t o n Santos , w i t h some 40 papers by T h i r d and F i r s t Wor ld w r i t e r s .

R u r a l Amer ica - - i s s u e e d i t e d by I n g o l f Voge le r .

S e v e r a l o t h e r s p e c i a l i s s u e s a r e v i r t u a l l y com- p l e t e .

Genera l I s s u e s . Our comrades i n L i s b o n have p romised a paper 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 geographers t h e r e . Bob C o l e n u t t has a paper on t h e London p r o p e r t y m a r k e t wh ich i s i n t h e f i n a l s tages o f p r e p a r a - t i o n . S e v e r a l exchange papers f r o m Espaces e t S o c i e t i e s a r e b e i n g t r a n s l a t e d .

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 can be p u t t o good use a t t h i s t i m e .

TRANS L AT I 0 N HELP URGE i’iT 1 Y NEEDED

o f m a t e r i a l i n Span ish and F rench w h i c h has ove rbu rdened o u r t r a n s l a t i o n r e s o u r c e s . We 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 papers i n t o E n g l i s h , p a r t i c u l a r l y f r o m p e o p l e w i t h backgrounds i n Marx ism and T h i r d Wor ld under - deve lopment . I f you can h e l p p l e a s e w r i t e t o R i c h a r d Peet , An t ipode , Box 225, West S i d e S t a t i o n , Worces te r , Mass., 01602.

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