We believe that we are living in the historical period of Imperialism. Imperialism is the final stage in the development of capitalism, the stage preceding the transformation of this society into a socialist society. Although during imperialism the basic structure of capitalism is the same as it has been in preceding centuries, imperialism is a stage of capitalism that is characterized by several distinctive features.
One of these characterizing features is the concentration of the means of producing and distributing wealth into the hands of a few giant monopolies in each key economic field. Instead of the competition between large numbers of firms that took place during the early days of capitalism; markets are now controlled and divided up among giant concerns that cooperate with each other more than they compete. This concentration of control in the hands of fewer and fewer capitalists is a force caused by the tendency of capitalists to socialize and expand the means of production wherever possible. The tendency towards monopolization is inherent in the system itself and independent of the will of individuals.
Another characteristic feature of imperialism is the increasing control of certain sectors of the economy by the banks. In earlier capitalist periods, industrial companies were able to use the capital generated by their own profits to expand production. Under imperialism, the banks have gained control of more and more capital and used this control to dominate certain economic sectors. A bank like the Chase Manhattan sits at the hub of a vast network of corporations involved in oils, electronics, chemicals, steel and other areas. This finance capital of the banks dominates other forms of capital throughout the rest of the economy. The dominance in the whole economy by finance versus industrial capital is a serious question which needs further study by Communists.
A third characteristic of imperialism is the export of surplus capital from the imperialist countries to other countries. As earlier capitalist countries exported commodities around the world to make profits, imperialist countries now export money around the world. This exported money is used for investments. This capital investment is not a voluntary action of a single capitalist, but is an essential factor in the drive for higher and larger profits. It is the demand for profit which requires capitalists to turn to imperialism’ for new areas in which to invest. The profits from these investments are sent back to the imperialist countries, and in turn generate another cycle of exporting capital.
It is these profits generated by imperialism that allow the capitalist class to support a “labor aristocracy” of opportunists within the working class movement of each imperialist power.
Another characteristic of imperialism is the division of the world market among the monopolies. In the earlier stages of capitalism, companies competed with each other for control of their own country’s internal markets. As the large number of competing firms consolidated into a handful of giant monopolies, the internal market of each country was divided among these monopolies. After conquering these internal markets, the monopolies next looked to expand into markets in other countries.
For centuries, capitalism has been creating a world market, tying the economic life of most of the world’s people into a single capitalist system. Under imperialism, this system becomes a prize to be divided and redivided among the monopolies. These markets are necessary for the survival of an imperialist country, for they provide raw materials, cheap labor, a place to dump goods, military bases, and most importantly, an opportunity to export capital.
The division of the world market leads to another characteristic of imperialism; the military division of the world among the imperialist powers. The attempts by some imperialist powers to acquire by military means the territory and resources that they believe correspond to their economic strength has led to the constant wars of this era, with World Wars I and II being the climaxes of this process. Initially, imperialist powers resorted to outright military rule of their colonies. The past decades have seen the rise of “neo-colonialism”, by which an imperialist country buys off a comprador class within the dominated country to carry on the goals of the monopolies. However, imperialist countries have never hesitated to use direct military intervention, if they felt it necessary, as the examples of Viet Nam and the Dominican Republic make clear. That imperialism will lead to another major war or wars is likely, unless worldwide revolution can prevent this.
Imperialism today is the stagnation stage of what was once a progressive system. Capitalism advanced human progress by destroying the bonds with which feudalism held back the development of the means of production. However, in this stage of capitalism, the advancement of the means of production is held back by the property relations of capitalism. The monopolies have control of the markets, and are concerned primarily with maintaining that control, rather than developing better and more efficient ways to meet society’s needs.
Furthermore, the colonies are held in a perpetual state of poverty, for their role is merely to supply the appetites of the imperialist powers, and any surplus generated in the colonies goes to the imperialist countries. Imperialism is a system by which a small number of countries benefit from the impoverishment of a large number of countries.