Arrighi - South Africa

8/13/2019 Arrighi - South Africa

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Research Foundation of SUNY

Peripheralization of Southern Africa, I: Changes in Production ProcessesAuthor(s): Giovanni Arrighi

Source:Review (Fernand Braudel Center),

Vol. 3, No. 2, The Incorporation of Southern Africainto the World-Economy, 1800-1940 (Fall, 1979)Published by: Research Foundation of SUNYfor and on behalf of the Fernand Braudel CenterStable URL: http://www.jstor.org/stable/40240833.

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Review,II, 2,Fall 1979, 61-191.PeripheralizationfSouthernAfrica,:Changes nProduction rocesses

Giovanni rrighi

I. Types f ncorporationIn discussing/nalyzinghe ncorporationf a regionntheworld-economyrom hepointofview of productionprocesses, eface hreemain uestions. he firsts that fdefininghedegree r stageof incorporationt differentpointsntime. eavingside heproblemshat risewith heemergencefmultinationalorporationssdominantroduc-tionunits,wemaydistinguishetweenormal r nominalincorporationnd realoreffectivencorporation.By he ormershall nderstandsituationnwhich oliti-cal dominationy nexternalower nd or conomic ela-tionswithhe apitalistorld-economyavebeen stablishedbutthe dominantatternsfproductionndreproductionwithinhe egionre till hoseypicalf xternalrenas. venifthey renot, hould or nyreason olitical omination

1979ResearchFoundationofSUNY 161

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1 2 GiovanniArrighicease and/oreconomic elations ith hecapitalist orld-economye severed,herewouldbe a tendencyoward here-establishmentfthose atterns.Byreal reffectivencorporation,nthe ther and, shallunderstandsituationnwhichhe atternsfproductionndreproductionypical f external renashaveceasedto bedominant ithinheregionnd tend odisintegrateua sys-tems. hat s, heocial, conomic,ndpoliticaletworkshat,beforencorporation,inkedhe ariousroductionnits ith-in theterritoryremodifiednsomefundamentalay ndintegratedn a wider, orld etworkominatedy apitalistrelations fproduction.This ncorporationfterritoriallyefined etworksntowider, orld etwork ay rmaynotbe associated ith heformation fnationalregional conomies. his s our secondquestion.ydefinition,hencorporationf regionterritoryinto heworld-economys characterizedy growingensityandconnectednessf henetworkshat ink heunits fpro-ductionftheregionterritoryothe outside orld- ypi-cally o productionnitsocatedn core ndsemiperipheralregions. national/egionalconomy ill esaid odevelop/exist f and only f)thegrowthf external etworkssmatched ythegrowthf internal etworksfequalorgreaterensityndconnectedness.This sanother ay f ayinghat nationalconomyrises,andreproducestself,henncorporationoesnot nderminebut nhanceshe apacityfa countryo capture inkagesso as toenlargehe nternaloundaboutnessfproduction.2The fact hat ome ountriesavethis apacity,nd othershavenot,s ndeed necessaryonditionor he eproductionofcore-peripheryelationships.orecountriesrethose nwhich he endencyowardhe ormationndreproductionfnationalconomiessstrongest;eripheralountriesre hose

1. Density s used n the ense n which ompletenesssused ngraph heory,i.e., nterms f the xtent owhich inks hat ouldpossiblyxist mongproductionunits o infact xist. Connectedness ,n the ther and,hastodo with he eciprocalreachabilityfproductionnits hrough rowthtimuli eneratednanyone of hem.

2. See Weisskoffnd Wolff1977).



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Changesn Productionrocesses 163inwhichuch tendencyithersnotpresentr scontinuouslyunderminedysocial and economicforces.Itfollows hat hereal or effectivencorporationf a terri-tory nto theworld-economy aytake one oftwodifferent,oppositeforms: eripheralr nonperipheralncorporation.shallspeakofperipheralncorporationr,more oosely,ofperipheralizationf a country/egionwhen ffectivencor-poration,.e., the ncrease n thedensity nd connectednessof henetworkshatinktsunits fproductiono the outsideworldhenceforwardhe external etwork)smatched ysmaller ncrease or by a decrease)in thedensitynd con-nectednessf the networks hat inkthese ameunits mongthemselveshenceforwardhe internal etwork).f,on theother and, he ncrease nthe atters smaller han hat n theformer, shall speak of nonperipheralncorporationr ofdeperipheralization .Wethenhaveto ask ourselves hethird uestion:what rethesocial, economic, ndpolitical orcesthatdeterminehedegree ndthe orm f ncorporation?t s n this ontext hatconsiderationf the class and social structure,s well as ofstate ction,becomes elevant. hemain heoreticalroblemsthatmustbe tackledempiricallyre to whatextent, nd inwhichways, he lassandsocial tructures,oth f he ountry/region hat s being ncorporated,nd of thecoreand semi-peripheralegions f theworld-economyt thetime f ncor-poration,re themselves eterminedy hedegreendformfthe incorporation.f it is found hatthe formerre largelydeterminedy the latter, n analysisof social and politicalfactorstthenational/ egionalevelwillnot dd much oourunderstandingftheprocess f ncorporation.f,ontheotherhand, uchfactors anbeshown o berelativelyutonomous,thequestionwill riseofwhetherheirmpact s imitedo thedeterminationf theposition nthethree-tieredtructureftheworld-economyhat hecountry/egion omes ooccupy,or whethernd how talso influencesheverytructureftheworld-economy.Theseare verygeneral uestionswhichwe would faceinanalyzing he incorporationn theworld-economyf any



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164 GiovanniArrighiregion country hatsoever. n thecase of southernAfrica,thevery efinitionf hedegreendform f ncorporationndrelated ocial structures ustnotonlytake ntoaccountbutstart rom considerationf theracialdualism hathasper-vaded its economies nd societies. n thispaper shall imitmyselfo illustratingow theabovecategoriesan be used ndefininghetrajectoryfincorporationftheonly outhernAfricanountryRhodesia)withwhich am atallacquainted.3To beginwith, shalltry o show hatupthrough 903-04heincorporationfRhodesia nto heworld-economyaspurelynominal, ndthat hedrivingorce f uch ncorporation asfinance apital as understoodn the classicaltheory f m-perialism. n SectionHI, the factors hatprecipitatedhetransitionrom ominal o effectivencorporationreoutlinedwith pecialreferenceo theEuropeancapitalist conomy. twillbe maintainedhat arly ncorporation asnonperipheral,and thatthe main forcebehind uchincorporation as thesettler ourgeoisiehat oalescedduringhepolitical nd eco-nomiccrisis f 1903-04.n thefinal ection,he ncorporationof Rhodesiawill be related o theproletarianizationftheAfrican easantrywithinRhodesia tselfnd to the ncorpo-rationof neighboringerritories.t will be suggested hat,while heearly endencyowardnonperipheralncorporationwas associatedwith heperipheralncorporationfterritoriesnorth f theZambesi, he stablishmentfa strongerationaleconomyouth ftheLimpopo n the nterwarears ended omove Rhodesia tself owardperipheraltatus.Some provi-sional conclusions oncerningherelationshipetweenocialstructuresnd forms fincorporation illthenbe drawn.Before start, warnings in order. n myopinion, hecategories am goingto use in thispaper ose someoftheirrelevance nce multinationalorporations ecome hedomi-nant unitsof productionn theworld-economy.Whenthishappens,we enter third haseof ncorporationhich wouldcall structural ,n the ensethat heworld ocial division f

3. Mycomments ntheRhodesian conomyrebasedon research hichs nowalmost enyears ld. I must hereforepologizefor he cantiness fmy eferencesorecent iterature.



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Changes nProduction rocesses 165labor tends o be subsumed ythetechnical ivision f aborwithin hemultinationalorporationshemselves.nthis hase,national conomies,where hey xist, end odisintegrateuasystems,nd a basic standard ordefiningore-peripherye-lationships ends to vanish. This raisescontroversialssueswhich,fortunately,e need not discuss as theyconcernperiod, he astthirty ears, hatfallsbeyond he copeofourcolloquium.II. FinanceCapitaland Nominal ncorporation

Until1903-04he ncorporationfRhodesia nto heworld-economywas purelynominal.Colonial domination nd im-portant conomicrelationswith he outsideworldhad beenestablished ut,quite apartfrom he fact hatbothwere tillrather recarious,s witnessed,mongother hings, ytheirtemporaryisruptionuringhe honaand Ndebele ebellions,nosignificanthanges adoccurredntheproductionrocessesof the ndigenousAfrican conomy. ocial networksinkingproductivectivitieswithin nd amongAfricanhouseholdswere tilldenser nd more losely onnected han hose ink-ingthe atter o thetradingnd mining utposts stablishedall overtheterritory.Throughoutheperiod,African ouseholdswere na posi-tiontoadd newconsumptiontems nd taxpaymentso theirbudgets.Simplyby lengtheningabor time,or by divertingsurplusabor time romraditionalses such s tribalwarfareand seigniorialribute,4 marketableurplus nthe form flaborpower rproduce ould be carved ut. nboth ases,nomajor hangeswere equirednthe ocialstructureromwhichtheAfricansraided hemoney conomy,r nthe echniquesembeddednthat tructure. ewconsumptiontems emaineddiscretionary,ndthe onditions f upply fAfricanroduceand laborpower byand largedetermined, uchmorethantheywerethemselves eterminedy,theconditions f pro-duction nd exchange n thecapitalist nclaves.4. On African conomies nd societies n southern ambezia beforencorpo-ration nd during heperiodof nominal ncorporation,ee MarciaWright's aperpresentedt this onference.



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166 GiovanniArrighiBecause of thehigh ostsoftransportnd the ack ofdevel-opment fcapitalistgriculture ithin hecountry,apitalistproductionndexchangenthe therectors elied ery eavilynotonlyon the upply f Africanaborpowerbut lso on thesupply fAfrican roduce.As a consequence, othwere on-ditioned y hewidefluctuationsnddiscontinuitieshat har-acterize urplusproductionnsubsistenceconomies.More-over, ny endencyostep p capitalistccumulationncreased

the demandfor Africanproduce,thereby iscouraging hesupply f African aborpower.Wemay n fact aythat, t this tage, apitalist roductionandexchangewere ittlemore han superstructureraftedontononcapitalistelationsfproductionndexchange, hoseoperationwas partially eoriented,ut whosestructureasi-callyremainedwhat t had beenbeforencorporation.ad theShona and Ndebelerebellions eensuccessfulndrivingheEuropeansout of thecountry,heAfrican eoplecould fallbackto their traditional atternsf ife imply yreallocat-ing/shorteningabortime ndbygiving pdiscretionaryon-sumption.Thispatternfearly ncorporation as associatedwith hepredominanceffinancial nd speculativenterests ver n-dustrial nd commercialnterests ithinmetropolitanapitalthatpromotednd sustainedhe ncorporation.5heobjectivepursuedbythe Rhodes-Ruddfinancial roup theunitcon-trolling he B.S.A. Company),and the largemetropolitanmerchant ankersthatsupported heenterpriseinanciallyandpolitically, asnotprimarilyhe ndustrial rcommercialprofitshatcould be reaped nproductionnd tradebut thespeculative ains hey ouldobtainbyfloatingompanies ndbybuyingnd selling hares n theLondonStockExchange.The mostglaring nd significantxampleof thepredomi-nance ofspeculative verproductiventerests as themining

5. The metropolitanapitalthatpromotednd sustained he ncorporationfRhodesia in theworld-economyorresponds ery losely o the mageof financecapital** ortrayedntheclassicaltheory fimperialism.haveanalyzedHobson'sconcept ffinanceapital nArrighi1978), ndthedifferencesetween obson's ndHilferding'soncepts nArrighi1979).



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Changes nProduction rocesses 167legislationntroduced y the B.S.A. Company.Two ofthegreatestmining xperts f thetime, ngaged n 1891bytheB.S.A. Companyto do theprospectingf theterritory,adfound hat, lthough hereefs ould be made to paya profitbysmall-scalendividual nterprise,either heextent fthereefs, or thequality f theore,northegeneral ormation fthecountryould ustifyheformationf argeLondon com-paniesfor heir urtherevelopment.6otonlywas this eportsuppressed,ut ncomplete isregardf ts dvice, hemininglegislationhatwas ntroducedarredndividualmine-workersfromrecovering old from heirproperties,heonlymeansofworkingorprofit eing heflotationf companyhathadto givethe B.S.A. Company50% ofthevendor's crip.The predominance f financial nd speculative nterestswas also evidentnthe B.S.A. Company's andpolicy. ndi-vidualenterprise as discriminatedgainst,whilevasttractsofcountry eregrantedo land andminingompanieswhoseflotationn London increasedopportunitiesorspeculativeand financial rofits.Moreover, estfarming inderminingoperations,hegovernmenttselflockedup enormousractsofthemost ertileandsituated ntheGoldBelt ndconferredupon prospectorsnd miners ariousprivilegesnregard owood and waterwhich eriouslynterferedith griculturalactivities.7A goodnumber fbigmining,and, ndtradingompanieswerethus ttractedo thenewcolony,where heygenerated

6. See March-Phillips1898) and also Rhodesan Finance**1894, 167-73, 28-55)and TheMarvellous rogressf he Chartered' ompany nd uMoreChartered*Finance,**1896, 193-200, 46-50). March-Phillips*omments n the uppressionfthereport y he nner ircle ftheChartered ompany reworthuoting: Itmaybepointed ut thatwhat he ompanyostby suppressinghe eport] as the upportofprofessionalndexperiencedminers,o whom thadnocredentialsfanyvaluetoshow.Thisdidnot,however,ogreatlymatterince heCompanywasdealingnotwithanexperienced ublic ngoldmatters,uch s theAmericans,.. butwith heEnglishpublic,who are in a stateof nfantinegnorance. incethen, he ountry as been etgo ofbythe olidbodyoftheprofession,nd is dealtwith hieflyy anguine oungcolonists,who, nminingmatters,renecessarilyather reenhorns;r elseavowedspeculatorswhoare after hepublic,notafter hegold.**ee March-Phillips1898,379).7. See Hone (1909, 196).



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168 GiovanniArrighiconditions f exceptional iquiditynd a secondarywaveofspeculative ctivities. t is true thatofthe44.5 million fnominal apitalregisteredp to 1904forminingndexplora-tioncompaniesoperatingn SouthernRhodesiaonlysome10-15million ctually ound tsway nto hecountry.8et,while hedifferenceetween he wofiguress a roughmeasureof the overcapitalizationf Rhodesianinvestment or thebenefit f underwriters,romoters, ompanydirectors,ndthe nner ircle f upporters,he atter igures still remark-ably high nvestmentn a relativelymalland undevelopedcountry.twas infact he iquidityndtheopportunitiesorspeculationngenderedy his nflux fmoney-capital,atherthan he upposedmineralndagricultural ealth fthe erri-tory, hat n theearlydaysattractedo Rhodesia a relativelylargenumber f white ettlers.Everyone nteringhe ountryookoutminingicenses,ndsinceonlyone was allowedper individual,icenseswere ngreatdemand. Those who lived in townseither old theirlicenses ominingompanies tveryhighprices, rgotpros-pectors opega block ofclaimsfor hem.Claimswere lso ingreat emand ecausewhat hepromotersfminingompaniesmostrequiredwas a number fmininglaims oconvince heshareholderst theannualgeneralmeetingsn LondonthatRhodesiawas a landofuntoldwealthwhosefirst ruitsheyheld itle o. Thecompanieswere hereforenxious ndwillingto pay highpricesforworthlesslaimsthatwerebroughtothem ytheprospectors. quallyprofitable ere he ctivitiesof contractors. ompanieswereacquiring argenumbers fclaimson each of which twas necessary o getthirty-footshafts unkwithin ourmonths fregistrationnorder hattheymight etain ossession ftheir laims.Theyhad,there-fore,to rely,forthe proving nd development f miningproperties, n contractorswho knewextraordinarilyittleaboutminingnd,as often s not, arried ut thisworkwith-out the supervision fan engineer. ong before heirworkwasinspected,heywould have receivedhepayfor heiraborand madea veryhandsomeprofit.98. SeeS. H. Frankel 1938, 157).

9. See Wilson n.d., 14); Hone (1909,244-45).



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Changes n Production rocesses 169The provisionof transport nd communications, eingessential rerequisiteso theopeningup of theterritory,asan integral artofthespeculative perationaunchedbytheRhodes-Ruddfinancialgroupand its London connections.Three ompanies,losely onnected ithheB.S. A.Company,wereformedo finance,hroughhe ssue ofdebentures,heconstructionfvariousrailwayines.One linereachedBula-wayofromVryburgt the ndof1897, nd another onnected

Salisburyo Umtali n 1899.The two ineswerefinallyinkedup in 1902.In theshortrun,themostnoticeable ffects frailway onstruction ere hemomentumdded to thebuild-ingboomandthe nflux f peculativemoney-capital.s soonas townsites had beendecidedon bytheB.S.A. Company,theywere dividedup into smallplotsor stands,whichweresoldtothepublic.Standswere xchanging andsat fabulousand rising rices, nd largeprofits eredailybeingmade notonlybyforeignpeculators ut lso by he ettlers ho agerlyinvestedn land and building entures.10As the ownshipsecamemore ettled,heminingnd com-mercial ompaniesgrewdissatisfied ith hetemporaryronand wood buildings, nd put up in theirplace substantialtwo-storiedtone ndbrickbuildings.With hearrival ftherailway rom ape Townthebuilding oomgatheredmomen-tum.From1898onward, overnmentffices, otels,munici-pal and companybuildings, lubs, churches, nd schoolssprang p inBulawayo.Theexpectationhat his ity, esidesproving most mportantailway enter, ould oonbecomea secondJohannesburg,ncouraged peculationn land andbuildingeading o theflotationfnew ompaniesnLondon.Architects, uildingcontractors,masons, bricklayers,ndothers onnectedwith he radewere ttractedo the ownsbytheexceptional conomicopportunitiesreatedbythe nfluxofmoney-capitalrom broad.11The rumors f vast mineral esources nd greatfarmingpossibilitiesnduced peculativectivitiesn commerce s well

10. See Hone (1909, 314-15).11. See Hone (1909).



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170 GiovanniArrighias in mining nd construction.ommercial ompanieswerefloated nLondon,and the amereckless astewhich harac-terizedminingompaniesnacquiring ast areas ofworthlessmininglaims ould be noticed mong ommercialompaniesinestablishingargebusinesses ll overthecountry. highlypaidstafffmanagers,ubmanagers,ecretaries,ookkeepers,and shopassistantswas sentoutto theprincipal owns.Mer-chant ompanies rectedwarehouses ndshopsandequippedthemwith ll therequirements,nd manyof the uxuries, fan industrialociety.12With he oming f arge ommercialompanies,ndividualtraders ppeared.Thesegenerally ad little r no capitalattheir isposaland were, s a rule,partly rentirelyinancedby thelargecommercial ouses.Theirbusinesswas carriedout almost exclusivelywiththe Africanpopulation.Theygenerallypenedmain stores nd lived ncloseproximityolargeAfrican illagesor mines, nd built emporaryradingstations tvillages ome fifteenotwentymilesdistant. radeconsisted f bothbuying nd selling, hough ew ash trans-actionswere ffected.n thevillages,he rader'stock hieflyconsisted fcheapwhite r coloredcalicoes, alt,brasswire,and beads,and theAfricans aidfor hese ommodities ithgrain.Thetrader lwayspreferredarter ocashtransactionsas thereby egaineda doubleprofit. he lowopportunitycostoftheAfrican easantryn theproductionf ubsistencecrops, he ack ofcompetition ithin achparticularrea,andthefinancial xtravagancesftheminingompanieswere llfactors hatcontributed o the exceptionalprofitabilityfthis rade.13White ettlershusbenefitednvariousways romhe pecu-lativeboom of the 1890's. Even whentheyenteredwage-employment,heyreceived alaries muchhigher hantheywould have received n core countries r in other ands ofrecent uropeansettlement,14articularlyf ccount staken

12. See Hone (1909,307-13).13. See Hone (1909).14. Around1902-04, uropeanwages nRhodesiawere wotothree imes igherthan nEngland; neand a half otwo imes igherhan nAmericandAustralia,nd5-15%higherhan nSouthAfrica.



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Changes n Production rocesses 171of their ctual skillsand performance. ccording o someemployers,hodesiahad become thedumping round or llthe most unreliablewhite abor . Moreover,owingto thesupplyof labor being inadequate,manymen unskilled nspecialwork,or lacking n technical raining,wereofferedand acceptedpositions orwhich heyhad little r no experi-ence. Lowproductivityasnot obewondered twhen manwhohad beendischarged rom heCape MountedPolice wasputinto a responsible osition n, n office; former nder-graduate t Oxfordwas plunged nto a wholesaleor retailgrocer's usiness; clerkfrom he Bank ofEngland etoutprospectingorgold;or an unsuccessfulchoolmastereter-mined o start arming.15The foregoing haracterizationf economic activitynRhodesia during he periodof nominal ncorporation asemphasized heemergence, ithin hecapitalist conomy, fdiverse nterestsnd, at the same time, hetemporaryon-vergence f such interests nderthe hegemony f financecapital.The diversenterests ere: a) thoseofcompany ro-motors ndfinancialpeculators,b) thoseof argemetropoli-tancompanies peratingnminingnd other rades, nd (c)those f he ettlers.hough he atter ere artlyelf-employedand partly mployed orwages, hey epresented fairly o-mogeneoussocial stratumwithout lear internal ivisionsalong occupational rclass ines. ndeed, heirmain haracter-isticwastheir ery ighmobilityothbetween elf-ndwage-employmentnd among trades,whichcontinuouslyepro-ducedtheir etty ourgeois tatus nd lack ofspecialization.Any endencyoward roletarianizationaseffectivelyounter-actedbythe nflux fspeculativemoney-capitalhat reated,formost f hem,xceptionalpportunitiesfgainfulelf-ndwage-employment.hisofcourse s also thebasic reasonwhy,up to 1903, he nterestsf white ettlersenerallyonvergedwith hoseof theB.S.A. Company ndofthe argemetropoli-tan enterpriseshatpromoted nd, respectively,preadthespeculative oom.

15. See TheLabour Problem n Rhodesia 1901,49) and Hone (1909, 13-14).



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ChangesnProductionrocesses 173concentrationf ontrol ithinhendustryade ossiblehereorganizationfgoldminingn a moreproductiveasis.Competitionnthe abormarket, hich adledtorapidlyrising ages,wascheckedhroughrganizedecruiting,spe-cially orthf heZambesi. alariesndofficexpenses erereducedn every irection.hrough ollectiveurchases,supplies ere btainedtmuchmprovederms. herecklessbuyingfmininglaimsromrospectorsas bandoned. hesystemf ettingutdevelopmentork ncontract asre-placed, nd nany ase tbecame ossibleoallowno morethan marginalrofito contractors.mprovedrofitabilityofproduction adepossibleelf-financinghrougheinvest-mentfprofitshich ecamehemain,fnot he nly,ourceofcapital.16Thisrestructuringftherelationsfproductionndex-changenthepart f arge oreignompanies ightery ellhaveresultedna peripheralncorporationfthe ountryntheworld-economy.owever,henext ecadewitnessedn-steadthedevelopmentf a fairlywell-balancedationalcapitalistconomyndowedwith, s we shall ee,an agri-culturalectorhat roducedmainlyor he nternal arketand manufacturingectorinked ackwardndforwardithlocal primaryroduction.ffectivencorporation,notherwords,idnot ndermineut nhancedhe apacityf he ewcolony o capture inkages,herebynlarginghe nternalroundaboutnessfproduction.his evelopmentanbe racedto the onvergencef twomainfactors:hereactionf thesettlerettyourgeoisieo the inancialrisis f1903-04,ndtheprompthangesn thepolicies f theB.S.A.Companyimplementedo meet henew ocial ndeconomicituation.Thecurtailmentfgainful age-ndself-employmentp-portunitieshat adfirstttractedhe ettlersoRhodesia idnotdrive hem utof he ountry.ather,t nducedhem omoveresolutelyntoproductivectivities.n gold mining,those ompanieshatwere nable o secure orkingapitalodealwith heir ropertiesn a large cale reducedhe caleof their perations. arge laimholdersegan o lease their

16. See Hone 1909, 261);Chamber f MinesofRhodesia1905); ndJollie( 924,29).



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174 GiovanniArrighiclaimson tribute o individualswho erected mallbatteries.Tributes n developedpropertiesecameeasytoobtain, nddumpsof untreated andscould be had at a nominal ent.nthisway hosewhohadbeenconnectedwith heminingndus-try nd whose services had beenrendered bsoletebythereorganizationf the industry eganto be drawn ntotheproduction rocess s small-workers. 17At the same timethere ccurred sudden ncrease ntheinvolvement f settlers n agriculture. first timulushadcomefromhecattleplagueof1901.Before hatyear he et-tlers,houghhey ad nvested eavilynthepurchase f and,had neverbecomepermanentlynterestedn agriculturee-cause of themoreprofitablepportunitiesnother irections.Thecattleplague,bydisruptingx-wagon ransport,nducedtransportiders o collect ogetherheremnantsf heir attle,to breakuptheirand,andput tunder ultivation. he crisisof1903gavenew mpulse oEuropean griculture. any ndi-viduals,whohad boughtand,were nduced oenter gricul-turalproduction ythevanishing fopportunitiesnwage-employment,rospecting,ontracting,tc. Moreover,thecontraction ftheminingndustrythemainbuyer flocalagricultural roduce) and the influx of new competitorsbroughtbout keener ompetitionmongthose radingwiththeAfrican opulation.Thus,profitable pportunitiesnthisdirection ere onsiderablyestrictedndmany fthe radersbeganto find tmoreprofitableo growmealiesthemselvesthanto buythemfromAfrican easants.18Mechanizationwas argely esortedoinorder ogetroundthe abor hortage.n 1904, heAgriculturalssistanteportedthat herapidity ithwhichRhodesian armers ere ecuringmachinery as astonishing ,onsideringtscost. Fruit reesof all varietieswereplanted nd vegetable ardening or hemarketwasfast eveloping. ompetition ithmportedood-stuffswas fairly uccessful. n 1904,it was estimated hatapproximately85,600ofthedecreasen mportsfthatyear

17. See B.S.A. Company 1903);Wilson n.d., 15).18. See B.S.A. Company1902); Hone (1909, 198-99).



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ChangesnProductionrocesses 175wasdue o mportubstitution.9 Whitegrarianourgeoisiethus amento eingvenf tspositionemainedrecarious.Itsstaple roduct asthemealieIndian orn)whichmadeitvulnerableo Africanompetitionnd hereforeoconsider-ableprice luctuations.nderhese onditions echanizationwasrisky, hile abor-intensiveroductionashamperedythe ost ndshortagef abor.Thisgreaternvolvementnproductionasnot sufficientconditionor he take-offf nationalapitalistconomy.Left o tself,s the boveremarksbout gricultureuggest,itwas ikelyo be frustratednd short-lived. hat ustaineditandgave tmomentumt this rucialonjunctureere hechangeshat imultaneouslyookplace nthepolicies ftheB.S.A. Company. o someextenthechangeswere pon-taneous,.e., heywere henaturalutcome f hepursuanceof the nterestsf theCompanyn the newcircumstancescreated ythecrisis.As the peculativeoomofthe1890'sslackened,hemain reoccupationf he nner ircle haton-trolledheCompany ecame hevalorizationf theassetsalreadycquired atherhan heacquisitionf new ssets.Theprofitabilityf ome f he ssets,uch s the oldminesin which heCompanyndrelatednterestsad securedcontrollinghare, epended ainlyn nternalconomiesndthe vailabilityf abor.But hevalueof uch ssets s realestate ndrailwaysependedery eavilynthe eneralevelofeconomicctivityarriedut n the erritory.heB.S.A.Companyhus ecamencreasinglynterestedn the ffectiveexpansionf ll ines fproductionatherhann peculativegains.Themost ignificantignofchangewasthe Mines ndMineral rdinancef March1903,which ave mall laim-holdershe ightowork or rofitna 2 1/ %royaltyasis,withoutroceedingoflotation.tthe ame ime,heB.S.A.Company egan o take sternerttitudeowardhe argecompanies. t the ndof1903, he dministrationlassified

19. See B.S.A. Company 1903); Report ftheSecretaryorAgriculture1905);ReportoftheAdministrator1905).



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Changes nProduction rocesses 177alreadybegun o be voiced n 1902.When, fter hedeathofRhodes,several f the directors aid a visit o Rhodesia, heCompany'sentirepolicy,from hesmallnumber f electedmembersn theLegislative ouncil,and the nadequaciesoftheminingaws, o the arge hareholdingsf heB.S. A. Com-pany nRhodesian ompanies,ndthe xcessive ailwayates22was called intoquestionat publicmeetings eld in all thetowns.With hecompletion f therailwayinerunningromSouthAfrica hrough hodesia andBeira at theendof1902,the ssueofrailway atesbecame major auseofdiscontent.Railwayrates o theportofBeirawerekept rtificiallyighinorder o maintainrafficn theVryburg-Bulawayoection,whichwas also controlled ythe B.S.A. Company.Thus,forexample,the ratesfromBulawayoto Beira 67S miles)ex-ceeded herates rom ulawayo o PortElisabeth1,200miles).The mainreasonsfor hispolicywere hat a) a reductionfrates ntheBeira inewouldhave reatedosses ntheVryburg-Bulawayo ine argerhan he ncreased evenue n theformerline, nd (b) such a reductionwas expected o be metbythestate-controlledouthAfrican ailwayswith eductionsftheratesto Vryburg. he B.S.A. Companywas obviouslynotprepared o launcha rate-cuttingar.Thus the natural ol-lusionbetween he tworailway ompanies ontrolled ytheB.S.A. Companywas accompaniedbycollusionbetweenhelatter ndtheCapeColony.Thispolicy voked tormy rotestson thepartofthe settlersparticularlyrom hose iving nthe astern art fthe ountry) howereoined by heminingcompanies n expressinghe opinionthattherailway atesthroughouthecountrywere xcessive.The settlers lso ob-jectedto thepolicyofusingrevenue orcurrentapitalex-penditure, hichmposed n them heburden fconstructingrailwayswhich heydid notown,and forwhich heywouldeventually aveto pay.23The conflict verrailway olicies s emblematicf a widerconflict f interests etween he B.S.A. Companyand the

22. See Gann 1965,Ch. 5); Hone (1909, 151-52).23. Hone (1909,329-35);Chamber f Mines 1903,30-32);Jollie 1924,217).



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178 GiovanniArrighisettlers. oth had an interestn theexpansionofeconomicactivitywithinRhodesia.But while uchexpansionwas,fortheCompany, hemeans o theendofraising hevalue of tsassets therailways eing ne of tsmain ssets), or he ettlersexpansion tselfwas theend,and a reductionntherentsndprofits xpectedbytheB.S.A. Companyfromtsassets wasconsidered necessary ondition or tsachievement.The crisishardened he conflict.n 1904theprotestmove-ment atheredmomentumotonly round he ssueofrailwayratesbut gainstCompany ule ngeneral. headministrationwas attacked as a hopelessly umbersome nd expensivemachine. ts opponentsmaintained hat therewas an enor-mous wasteofmoney. hecrywas raised hat hepeoplewhobore thetaxation houldhaveadequate representation.24conference eld nSalisbury esolved that t sdesirable hattheadministrativeights ftheChartered ompanyshouldcease so soon as they an be relieved ftheresponsibilityoranydeficiencyetween evenue ndexpenditure. epresenta-tives fthe onference ere hen lected oproceed oEnglandin order o conferwith heLondon board. At themeetingnLondon the questionsof mining egislation, ailwayrates,ownership funalienatedand,right o expropriateherail-ways,and control ver theLegislativeCouncil wereraised.Owingto thedivergencefviews, heconferencended nadeadlock.The reasons or hedeadlock re nothard ofind. hecrisishad a contradictorympacton theB.S.A. Company:on theonehand, s argued bove, tmadenecessary major hiftnpoliciesto enhance thevalue of theassetsacquired n thephase of speculation;on the otherhand, it tightenedhefinancial onstraints ithinwhich he hift adtotakeplace.Even before hecrisis, he Boer War had strained heCom-pany'sfinancialituation:xpenseshadrisen harply,ndtheBoardhad to issuefurtherhares.Bytheend of1903, hough

24. Thisclaimwasrather ddin viewofthefact hat he ettlersaid ess hanhalfofthe otalrevenues btained hroughaxation; heB.S.A. Company inanced con-siderable eficit.Moreover,nthatveryyear, major hift f theburden ftaxationonto theAfrican opulation ookplace.



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Changes n Production rocesses 179nearly millionuthorizedhares nd 11/4millionmortgagedebenturehareshad been issuedto theBritish ublic,theB.S. A. Companywascrippled y n nsufficiencyffundswithwhichto financefurther eficits.Withthecollapse of thespeculative oom the credit f theCompany nLondon be-camemuchshaken,making urtherssues ofshares nd de-benturesmpracticable.25Thesefinancialonstraints ade t mpossible or heCom-panyto takethe ongviewnecessaryo reacha compromisewiththe settlers. et, the Companywas induced to makefurther nilateral oncessionsnot only by economic self-interestutalso bytheneedto legitimizetsrule. n 1904, heconcessions o small-workersere broadened nd there c-curred major hiftftheburden ftaxation romhe ettlersandforeign apitalon to theAfrican opulation.Theeagernesswithwhich he ettlersespondedo theneweconomic pportunitiesonvincedhedirectorsftheB.S.A.Company ogofurthernthepolicy f ncouraginghe ettlersinmineral ndagriculturalroduction.n1907, nthe ccasionof a good-willvisit of the board of directors o Rhodesia,miningegislation aschanged gain nfavor f mall- orkersand themoreproductiveargecompanies, eavily enalizingthosecompaniesthat stillproducedat a loss or lockedupclaimsfor peculative urposes.26Therepresentativesf he arge ompanies rotestedtronglyagainstthe changes.Theyclaimedthat the royaltieswereexcessive, nd that,owingto the scarcity f labor,itwasimpossibleo work ll theclaims.Theywarned hat tamper-ingwith itles reates feelingf nsecuritynddistrust,ndestablishes dangerousprecedentna young ountrywhichstillrequires he ntroductionf a large mount fcapital odevelop t .27 hebargainingowerof the argeforeignom-panieshad however eenconsiderably eakenedbythe col-lapse of thespeculative oom and correspondinghanges n

25. See Arrighi1970).26. See Phimister1976,465-81).27. See Hone (1909,287-88).



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180 GiovanniArrighithe nterestsftheB.S. A. Company.Moreover, ythis ime,the nterestsfthe argecompanies hemselves eredividedsince the companiesthat had alreadybeenputon a soundeconomic ootingnd were elf-financingas was the ase withmost ftheminingompanies ontrolledy heRhodes-Ruddfinancial roup),were eeking oexpandthroughhe cquisi-tionofuninspectedlaimsorclaims nthehands f heweakercompanies. t is notsurprisinghereforehat he argecom-panies9 ppositionto changewas ineffectualn restrainingchange.The directors9isit f 1907 was infact heoccasion offar-reachinghangesnother ectors s well.Ofparticularignifi-cancewasthemuch reatermphasisaidupon he evelopmentof European agriculture. he prospectors9nd mineowners9rights f access to water,grazing and, and wood were re-stricted.More favorable erms nd conditions orobtaininglandweregranted.twaspledgednottogive nymoregrantsor concessions f land to companies. t was promised o re-organize heAgriculturalepartment,nd to recruitne ortwoexpertsoadviseEuropeanfarmers nthegrowingfnewcrops.And,finally,hedirectors ndertookoprovide verypossiblefacilityor heexportationfwhateverurplus rainmight ave beenproduced nd, fnecessary,oerect levatorsat Beira and to arrange pecial sea freights ithshippingcompanies.28The changes n economicpolicieswereaccompaniedbyimportant olitical oncessions.Thoughthedirectorstatedthat thetimehad notyetarrived orRhodesiato becomeaself-governingolony,theelectedmembersweregrantedmajorityntheLegislative ouncil. While twas true hat heunofficialmajoritywas largely ullifiedytheprovisionhatno ordinance nterferingiththe and and otherrights ftheCompany99ight ediscussedwithoutheAdministrator'sconsent,hepolitical nd economic eformsftheseyearshadcreated n institutionalrameworkhatreflectedhenewre-lationship fforces etween ettlersnd companies nd that28. Sec Hone (1909,187,288-89, 93-94);B.S.A. Company 1907).



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Changes n Production rocesses 181would favorthe further evelopment f a national settlerbourgeoisie.The small-workerecamethedynamic actornthe xpan-sionof thegoldminingndustry. e developed roductionnmany propositionswhichweretoo small to interestminingcompanies, utwhich roved emunerativeohim rwhich ewas prepared o work t a rateofprofithatustcovered heinvestmentfhis own labor time.Moreover, ythoroughlyprospectingnd proving heeconomicvalue ofthecountry'smineralresources,he opened up profitable nd low-riskopportunitiesorproduction n a larger nd morecapital-intensivecale on thepartoflargecompanies.As Phimisterhas put t,where at firstmall-workers,ntheform ftribu-tors,had followed apital,capitalwas nowfollowingmall-workers .29Thespectacularncreasenthevalueofgoldproductionhatensued ed, ofcourse, o a great ncrease nthedensityndconnectednessf he radenetworkhat inked ouseholdsndenterprisesocated nRhodesiawith heoutsideworld.How-ever, hefact hat he mall-workerssedhighlyabor-intensivetechniquesfproduction,nd, boveall,consumed r nvestedlocallymostoftheir rofitsmeant hat hecreation f leak-ages wasmatched ythecreation f linkages hat ould becaptured hroughxpansion n other ectors. fthis ctuallyhappened, t was due mainly o theparalleldevelopmentfsettlergrarian apitalism.

Theexpansion fEuropean griculturenthedecadefollow-ing1903-04was even morespectacular hanthatofthegoldminingndustry. he number ffarmsmorethandoubled,European-ownedattle ncreased ver tentimes, nd maizeproductionnEuropeanfarmsncreased lmostfifteenimes.Thedependence n importsnd onpurchases fAfrican ro-duce was greatly educed reating downwardpressure nfoodstuffriceswhich ended o move romhe ceiling eter-minedbythe andedcostofimported roduce o the floor29. See Phimister1976,474).



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1 2 GiovanniArrighidetermined y the F.O.R. export price n Rhodesia.30 hecheapening f foodstuffsad, ofcourse, mportantorwardlinkage ffects,articularlyor he abor-intensiveoldminingindustryndfor hefood-processingndustries. oresignifi-cant,however,werethebackward inkage ffectsssociatedwith heenlargementfthe nternalmarket. ikethesmall-workerngoldmining,heEuropean armerot nly xpandedAfricanwage employmentutspent ocally goodpart fhisprofits, hus contributingo the emergence f a domesticmanufacturingector.As thefollowingable shows unfortunatelynly na veryimpressionisticay),bytheearly1910's n embryonic anu-facturingector losely ntegrated ith hedomesticconomyhadcome ntobeing.New inkageffects ere hus stablished.The reductionn the cost ofcement roughtboutby ocalproduction,or xample, timulatedapitalformationntheformof buildings,kraals, silos, dippingtanks, rrigationworks, nd bridges.The creation ftheGweloCreameryn1913, stablishednresponse o the mergenceftheranchingand dairyingndustriesfavored, n turn,bythefall n thepricesnmaize), timulatedhefurtherrowthf hese ranchesofagriculture yproviding morereliablemarket or ream.The oil and thebacon factories ad similar ffectstheoilfactory aving lso forwardinkageswith anchingnddairy-ingthroughhe upply fgroundnut akeas cattle eed), ndin1914Europeanfarmers9ales of ream, igs, ndoil-bearingseeds to local factoriesmountedto27,840,whichrepre-sented significanttimulusoward iversifiedroductionormanyofthem.31Onthewhole, he vidence eems osuggesthat he ffectiveincorporationfRhodesia ntheworld-economyas,atleastin ts arly tages, onperipheraln the ensedefinedn ectionI. Itwould lso seem hat hemain ocioeconomic orce ehindthisnonperipheralncorporation as thesettler ourgeoisiethathadcoalescedduring hepolitical ndeconomic risis f

30. See Reportsof the Controller f Custom n.d.); Reportsof theDirector/Departmentf Agriculturen.d.).31. See noteunderTable 1.



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Changes nProduction rocesses 183TABLE 1

Manufacturingnterprises stablished n theEarly1910's*Main ource fProductrProcess MainOutlet Rawmaterials

Consumeroods:1. Bacon domesticEuropean) domesticagric.)2. Meat acking domesticEuropean) domesticagric.)3. Flour domestic domesticagric.)4. Butter domesticEuropean) domesticagric.)5. Seedoil joint upplywith & 16) domestic domesticagric.)6. Soap joint upply ith5& 16) domesticAfrican) domesticagric.)7. Tobacco domesticAfrican) domesticagric.)8. Furniture domestic (?)Produceroods:9. Cement domesticagric, onstr.) domestic10. Sawmills domesticrwys.,onstr.) domestic11. Ropes,mats sacks domesticagric, oalmine) domestic12. Smelting export domesticmining)13. Calcium arbide domesticmining) (?)14. Whitersenic domesticagric.) (?)15. Cotton innery export domesticagric)16. Groundnutake jointsupply ith & 6) domesticagric.) domesticagric)ProducerndConsumeroods:17. Tannery export domesticagric.)*The ablehasbeencompiledn thebasis f nformationontainedna varietyof sources,ncluding,he B.S.A. Company, irectors' eports ndAccounts(various ears);Report f the CostofLiving ommittee1921);Report ftheRhodesian esourcesommittee1921).1903-04.hehighntersectoralnd ow nternationalobilityof he apital ersonifiedy his ourgeoisie,ogetherith hehigh animal pirits hat haracterizedts ctionn thepo-liticals well s in he conomicrenas, ereargelyesponsi-blefor he mergencefanembryonicationalconomy.nthe rocess,inanceapital,spersonifiedy heB.S.A.Com-pany,ost tshegemonyverRhodesianociety. t firsthissimplyed othe reationrombove f n nstitutionalrame-work avorableo thegrowthf settlerapitalism. s thisgrowth aterialized,hebalance fforcesncreasinglyhifted



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184 Giovanni rrighiinfavor f the ettlerourgeoisie,henewhegemoniclass,whichn the arly 920's ttainedolitical ower.IV. DevelopmentndUnderdevelopmentntheProcess f ncorporation

Theprocessfnonperipheralncorporationutlinedn hepreviousectionannot eunderstoodxceptnrelationo heproletarianizationf theAfricaneasantryithin hodesiaon theonehand, nd,ontheother and, otheperipheralincorporationfZambia,Malawi, ndMozambique.Withregardo thefirstelationship,s I have rgued lsewhere,the evelopmentf heAfricaneasantconomiesereimplytwosidesof the amecoin.32heargumenteednotbere-peatedhere ut wogeneral ointsreworthmphasizing.Thefirstoint oncernshekey ositionccupied yEuro-peanagriculturenthis wo-sidedrocess fdevelopment/underdevelopment.s a matterffact, hemostmportantand pecificontributionfEuropeangricultureothe evel-opment f a capitalistconomyn Rhodesiawas not thecreation ndcapturingflinkagesutlinedntheprevioussection, uttheestablishmentf a competitiveelationshipwithheAfricaneasantry.hat s,by ndermininghe bilityofthe atteroeconomicallybtaintsgrowingashrequire-ments hroughhe sale ofproduce ather han he ale oflaborpower,tsteadilyncreasedhe lasticityfthe upplyofAfricanabor ta wage ate ompatibleith he take-offof a relativelyell-balancedapitalistconomy.tis to thisspecialposition f the settlergrarian ourgeoisien themechanicsfcapitalistevelopmenthat oth he seof tatepowerobringbout ts riumphverAfricangriculturenditseventual ise ohegemonyithin hodesianocietymustbe traced.Thesecond oints that,ntheprocess f ncorporation,the atternsfproductionndreproductionfAfricanouse-holds hangedadicallyndbecamen ntegralnddependentpart f heRhodesianapitalistconomy.or he astmajority

32. See Palmer 1977); Phimister1977); Arrighi1970).



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ChangesnProductionrocesses 18Sof theAfrican opulation, articipationn thecapitalisteconomy hroughwage-employmentost its discretionarycharacter,ndthe ocial tructuresnwhich easant roduc-tionwasembeddedisintegrateduasystems.ptoa certainpoint,heprocesshat edtothis utcomeanbedescribedsa process fperipheralncorporationftheAfricaneasanteconomies.here s a threshold,owever,eyond hicht sno ongeregitimateospeak fperipheralncorporationincethevery ermsfthe ore-peripheryelationshiphat efineit come obe fusedna wage abor-capitalelationship.It switheferenceothe conomiesfZambia,Malawi,ndMozambiquehatwemay egitimatelypeak fa peripheralincorporationunctionalo thenonperipheralncorpora-tionof Rhodesia. or these ountrieslayed doubleroleinsustainingationalapitalist evelopmentnRhodesia. tis wellknown hat hey ave,n he irstlace, layedhe oleof reservoirsf relativelyheaplaborpowerfromwhichRhodesia asdrawn,hroughoutheperiod nderonsidera-tion,halfor more f tswage-labororce. heroleof thisextraterritorialaborpowerhas beenparticularlyrucialduringhe gestation eriod fcapitalistgriculture,.e.,beforets evelopmentctuallyroughtbout he eripheraliza-tion/roletarianizationf heAfricaneasantrynRhodesia.33Withouthese xternaluppliesf abor ower,he take-offof nationalapitalistconomynRhodesiawould ave eenimpossible.

Once unlimitedupplies flabor had beencreatedn-ternally,s theywere ythemid-1920's,hemain ole f hecountriesn question ecame hatofprovidinghodesianproducts ith relativelyrotected arket. hegrowthf33. The gestationag** as particularlyongmainly ecause the tockof Euro-pean-owned attlewas largely uiltupwith attlepurchased romAfricans ndup-graded y heuse of mportedulls.As a consequence,hegrowthfEuropeanmixedfarmingnd cattleranching enerated demandforAfrican-ownedattle, teadilyincreasing rices, ffectivelyounteractinghe endencyowards risingffort-priceofAfrican articipationn theproducemarket. heFirstWorldWar nd thepostwarboom in external emandfor Rhodesiancattle nd maizefurtherelayed he fullmaterializationf the effects f thedevelopmentfcapitalist griculturepontheeffort-pricefAfrican articipationn the abormarket. ee Arrighi1970, 215-16).



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1 6 GiovanniArrighithe nternalmarket ame, nfact, o be restrainedy a) theunderdevelopmentf African griculturend (b) theraciallydiscriminatoryrameworkn which relations fproductionand exchange ametobe embedded. fcostsoftransportretaken nto ccount,however, hodesian econdaryndustriesand someof their rimary roducts uch as maizecouldhopeto be competitivenly nneighboringerritories.nd itwasprecisely he demandforRhodesianproductsgeneratednsome of them theCopperbelt nd Katanga) thatsustainedRhodesianeconomicgrowthhroughouthe1920's.34If the peripheralncorporation f territoriescross theeastern nd northern orders ustainedn a crucialwayna-tional-economyormationnRhodesia,developmentscrossthe southern order ventually nderminedt.Competitionfrom he Rand in the recruitmentf labor had been a majorproblem orRhodesian mployersight rom he arly aysofsettlement.hehigherwagesofferedyRandmines ttractedlabornotonlyfrom he outhern frican eripheryutfromRhodesia itself.Many of the restrictionsmposedupon themobilityf aborwere argelymotivatedy heneed oprotectthe domestic abormarket.As unlimited upplies f abor were reatednRhodesia,competitionn thisfront ecame ess acute while thardenedon the front f industrialnvestment. lso, Rhodesia hadalwaysbeen t a disadvantagencompeting ith outhAfricain this ield. n 1913, or xample, heB.S.A. Company loseddowna tobaccofactorynBulawayobecause tfoundt moreprofitableo acquirea controllingnterestn an establishedmanufacturingusiness n South Africa.Rhodesianbutter,ham, nd bacon remained fan inferioruality elative o theimportedrticles,pparentlyecauseof vicious irclewhere-by if the productwerebetter nd the supply teadier hemarketwouldbefirmer,utwithout nassuredmarket mancannot afford o spendthenecessarymoney o improve hemethods fproduction .35imilarly,whole ange fproducts

34. See Reports ftheControllerfCustoms1924, 1926, 1927, 1928,1929).35. See Jollie 1924, 153).



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Changes n Production rocesses 187suchas textiles, agsfor ransportfgrain ndcoal,asbestoscement heets s substitutesorgalvanized ron,pyrites orthe manufacturef sulphuric cid- all ofwhich ould havebeenproduced ocallyfrom hestandpoint favailabilityfraw materials nd outlets could not meetthecompetitionfrommanufacturersn the Union who werenearer o thelargest onsumingenters.36Besides largernternalmarket,outh Africahada largerinternalreservermy fWhite killedaborand,as industri-alizationproceeded,hegapnotonly n the ize ofthe nternalmarketsbut also in the external conomiesthatcould beobtainedby operatingn a relativelyndustrializednviron-ment ncreased urther. t the outbreak f theFirstWorldWar,thegap had widened ufficientlyo preventRhodesiafrom akingfulladvantageof thefavorable onditions orindustrializationreated ywar hortages.mportubstitutionfor hewholeof southernAfrica ame to be concentratedntheUnion,which urthertrengthenedts omparative egionaladvantage n industrial roduction.It was in the nterwareriod,however,hatSouthAfrica'score position n theregionwas consolidated nd stabilized.Here thecrucialfactorswerepoliticalrather haneconomic.I am referringo the factthat n the 1920's,generally,ndespecially n the 1930's,South Africaand Rhodesia tookdivergent athsin industrial olicy.WiththeformationftheNationalist-Laboractgovernment,hepaceof ndustrial-ization nSouthAfricabeganto be forced, otonly hroughtariffsn manufacturedoods but also through irect tateinterventionnsetting pkeyndustriesuch s iron ndsteel.37In Rhodesia,on the otherhand,thegovernmentontinuedto follow hepolicyofmaintaininghe closest radeconnec-tionswith othBritain ndSouthAfrica,eavingheRhodesianmarket pento theirmanufacturersventhough heUniongovernment,nder ressure rom tsownWhite armingom-munity, annedimportationf Rhodesian scrubcattle ndlimited heduty-freemportationfRhodesiantobacco.36. See Reportofthe RhodesianResourcesCommittee1921).

37. See Legassick 1977, 175-200).



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188 GiovanniArrighiThougha certain ariffutonomy rom heUnion was at-tained n 1930, his utonomywas notused to protectRho-desiansecondaryndustriesut rather o giveconcessions oBritishmanufacturesnexchange orpreferencesccorded oRhodesianprimaryroducts.t is safeto saythat ittlef nythoughtwas given o tariffolicy s a meansofencouragingsecondaryndustry. uties remained,bove all, a devicetoraiserevenues,nd as such weremoremarkednthecase of

luxury oods,that s,thekindofgoods east ikely obepro-duceddomestically.n themid-1930's,omestate nvestmentin secondaryndustries id take place,but itwas aimed atkeeping live industries eserted yprivatenvestorspowerstations,meatprocessing lants, roasting lant orow-gradeore,etc.)ratherhan t creating lever or ndustrialrowth.Rhodesiadid experienceome ndustrial rowth, otwith-standinghe ackofgovernmentupport, uring he nterwaryears.As a matter ffact, rom purely uantitativeoint fview hegrowthf econdaryndustries asremarkable.38ewnewbranches fproduction, owever,wereadded to thosementionedn section II, the mainnewventures eingtherefrigeratingorks utupby he mperial old StorageCom-pany, factoryormaking xtracts f meatopenedbyLiebigin1933, ndtheRhodesian ugarRefineriesormedwoyearslater,which oon passedunder hecontrol fTate & Lyle.It willbe noticed hatthesewereall investmentsy argeforeign ligopolies aimed at processing ocal produceforexport.We shallpresentlyeturno thesignificancef thisfact.For themomentt is importanto emphasize hat,not-withstandinghe xpansion f tsoutput, hodesian econdaryindustryontinuedo be dominated y mall,ndividualnter-prises.Even as late as 1938 thefirst earforwhich eliablefiguresreavailable), he verage utput f Rhodesianmanu-facturingnterprises as on theorder f17,000themodaloutput eing essthan5,000) ndthe veragenumberfem-

38. According o myown estimatesbased on official ata), between 924 and1938 hevalueadded ofsecondaryndustriesncreased t an average ompound ateofapproximately% peryear, nd its hareof the ggregate alueofmovable oodsproduced nRhodesia ncreased rom17.1%to 26.4%.



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Changes nProduction rocesses 189ployeesEuropeans ndAfricans)waslessthan60.39 his ackof concentrationndoubtedlyustainedntersectoral obilityand competitive ehavior, nd it probablywas one of themainfactors ehindhe apidgrowth oted bove.Atthe ametime,however,t hindered hedevelopment fthegrowingnumber f ndustrieshatrequired arge-scale, ighly apital-intensiveroduction. or thisreason t s notsurprisinghat,in theabsenceof activesupportfrom hestate,Rhodesiancapitalfailedn thisperiod ocapture ignificantew inkages.By1938 tstillhadno capitalgoods industryo speakof,norevenso classica colonial ndustry s textiles.The densitynd connectednessf internal conomicnet-worksrelative o those of externalnetworkswere furtherreducedby the penetration f the Rhodesianeconomybyforeign ligopolies.The three ases ofmanufacturinglantsmentionedboveareexamples.Muchmoremportant as thedevelopmentfchromeore and asbestosproduction,whichgeneratedarge eakagesof imported apital goods and re-patriated rofits.ven the trong inkages etween he mall-workersndthe ettlergrarian ourgeoisie, otwithstandinga revival uringhegreat epressionfthe1930's, egan obesevereds the ormereclined ndthe atterhiftedroductionfrommaizeand cattle o tobacco.Nonperipheralncorporationhus urnedntoa peripheralincorporationhat eftRhodesiain an intermediateositionbetween he regionalcore (South Africa)and theregionalperipheryZambia,Malawi,Mozambique).Wemaywellaskatthispointwhathasdeterminedheposition feachcountryin this hree-tieredtructurefthe outhern fricanconomy.A fullanswer o thisquestionwould require much betterknowledge fthehistoryfthe ubcontinenthan can claim.I shallthereforeimitmyselfo suggesting workingssump-tion thatemerges utof theanalysisofthe ncorporationfRhodesiaoutlinedntheprevious wo sections.As we haveseen n sectionHI, the mainfactorn thenon-peripheralncorporationfRhodesiain theworld-economy

39. See CensusofIndustrial roduction1938).



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190 GiovanniArrighihas beenthe formationnd riseto hegemonyfa settlernational ourgeoisie.hefact hatneithernZambia, or nMalawi, ornMozambique40id nationalettlerourgeoi-sie riseto hegemony,r evenform,eems o validate heassumptiononcerninghodesia,nd also to explainwhythese ther ountriesxperiencedperipheralncorporationrightrom hebeginning. hat ifferentiatedhodesia romSouthAfricawas thedifferentlass tructureftheir ettlerpopulations.hat s, he lass hat ose ohegemonynSouthAfricanthe19 0' wasnot o much settlerational our-geoisies a settlerationalroletariatementedy thnicity.41It isto this ifference,think,hatweshould race he iver-gence f he ndustrialolicies ursuedy heRhodesianndSouthAfricanovernmentsnthe 920's nd1930's- diver-gence hat, s we have een,wascrucialncrystallizinghecore-peripheryelationshipetweenhe wo ountries.

40. See Vail and White paper presentedt this onference)n Mozambique.41 As CharlesvanOnselen's aper t this onferencehows,n he ameperiodnwhich, ccording o my nalysis, settler ourgeoisiewasformed nd rosetohege-mony n Rhodesia, n South Africa he Afrikaneretty ourgeoisiewas defeatedpolitically nd rapidly proletarianized. he Afrikaner ational proletariat hat

emerged ouldnotpossible ollow he amepathtohegemonys theRhodesian et-tler ourgeoisie, amelyttain olitical ia economic egemony.thad nstead o seekthepoliticalkingdom irst, hich t actually ttained, artially,n 1924 nd,morefirmly,n 1948.

ReferencesGiovanniArrighi,LabourSupplies n Historical erspective: Study ftheProle-tarianization f theAfrican easantry n Rhodesia,**ournal f DevelopmentStudies, , 1970,209-10.GiovanniArrighi, heGeometryf ImperialismLondon: New LeftBooks, 1978).GiovanniArrighi,MImperialismo,**n EnciclopediaEinaudi (Torino: G. Einaudi,1979).B.S.A. Company,Directors'Report nd Accounts,1901,1902,1903.CensusofIndustrial roductionSalisbury, 938).Chamberof Mines ofRhodesia,EighthAnnualReport Bulawayo,1903).S. H. Frankel,Capital InvestmentnAfricaLondon, 1938).L. H. Gann,A History fSouthernRhodesia.EarlyDays to 1934 London:Chatto& Windus,1965).P. F. Hone,SouthernRhodesia London, 1909).



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Changes nProduction rocesses 191E. TawseJollie,TheReal Rhodesia London, 1924).TheLabour Problem n Rhodesia and Proposed mportation fChinese.Opinionsfrom eadingmenreprintedromtheBulawayoChronicleBulawayo,1901).M. Legassick, Gold, Agriculture,nd Secondary ndustryn SouthAfrica, 885-1970:FromPeripheryo Sub-Metropole s a Forced Labor System, nR. Pal-mer& N. Parsons,eds., The Roots of Rural Povertyn Central nd SouthernAfricaBerkeley:Univ.ofCalifornia ress,1977),175-200.L. March-Phillips,The Chartered ompany,**he NationalReview, ondon,May1898.The MarvellousProgressof the Chartered'Company,**he Investors'Review,London,1896,193-200.**MoreChartered*inance,**he nvestors' eview,London,1896,346-50.R. H. Palmer,Land and Racial Domination n Rhodesia Berkeley:Univ. ofCali-fornia ress,1977).I. Phimister,The ReconstructionftheSouthern hodesianGoldMiningndustry,1903-10,**conomicHistoryReview, ndser.,xxix,3,Aug. 1976,465-81.I. Phimister,Peasant ProductionndUnderdevelopmentnRhodesia,1890-1914,**in R. Palmer& N. Parsons, ds.,TheRootsofRuralPovertyn CentralndSouth-ernAfricaBerkeley:Univ.ofCalifornia ress,1977),255-67.ReportoftheAdministrator,905.Reports fthe ControllerfCustom,passim.Reportofthe Cost ofLivingCommitteeSalisbury, 921).Reports ftheDirector/ epartment fAgriculture,assim.Report fthe RhodesianResourcesCommitteeBulawayo,1921).ReportoftheSecretaryorAgriculture,904,1905.RhodesianFinance,or a NewStoryofa Golden Fleece,'** he nvestors' eview,London,1894,167-73, 28-35.LeroyVail & LandegWhite, Capitalism's truggle orMozambicanLabor, 1900-1914,**eview, II, 2, Fall 1979,243-75.Charlesvan Onselen, The World theMiningCapitalistsMade: Transvaal,1890-

1914,**eview, II, 2, Fall 1979,289-302.R. Weisskoff E. Wolff,Linkages ndLeakages: ndustrial rackingn an EnclaveEconomy,**conomicDevelopmentnd Cultural hange, xv,4,July 977, 07-28.N. H. Wilson, d., SouthernRhodesia: Notes on theMining ndustryfSouthernRhodesia Salisbury,n.d.).M. Wright,The ReluctantntegrationfZimbabwe,1850-1908,**eview, II, 2,Fall 1979,211-28.

Arrighi - South Africa

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