Imperialism: The Highest Stage of Capitalism

“Capitalism has grown into a world system of colonial oppression and of the financial strangulation of the overwhelming majority of the population of the world by a handful of ‘advanced’ countries.”

Lenin introduces the language of “colonialism” as it relates to how capitalist states take over economic and social welfare. One of his principal theses is that capitalism functions as a systemic means of oppression anywhere and everywhere it touches.

“The enormous growth of industry and the remarkably rapid concentration of production in ever-larger enterprises are one of the most characteristic features of capitalism.”

Capitalism tends to concentrate capital, wealth, and resources in the hands of the few rather than in the hands of the many. The preferment of industry—as opposed to agriculture—makes this concentration even more rapid.

“This transformation of competition into monopoly is one of the most important—if not the most important—phenomena of modern capitalist economy…”

Lenin argues that imperialism does not accidentally succeed capitalism. Instead, it is a necessary, intrinsic, and unavoidable outgrowth of capitalism.

“The greatest success no longer goes to the merchant whose technical and commercial experience enables him best of all to estimate the needs of the buyer, and who is able to discover and, so to speak, ‘awaken’ a latent demand; it goes to the speculative genius [?!] who knows how to estimate, or even only to sense in advance, the organisational development and the possibilities of certain connections between individual enterprises and the banks…”

With the advance of capitalistic enterprise, industry and craftsmanship are not ordered to meet the needs of the community or customer. Now needs are created; industry is ordered purely to economic gain and financial victories.

“As banking develops and becomes concentrated in a small number of establishments, the banks grow from modest middlemen into powerful monopolies having at their command almost the whole of the money capital of all the capitalists…”

Banking, far from contributing to the greater ease of transactions and commerce, becomes the means by which money is gathered into fewer hands and allows the most powerful monopolies to be in charge of the majority of global capital.

“We see the rapid expansion of a close network of channels which cover the whole country, centralising all capital and all revenues, transforming thousands and thousands of scattered economic enterprises into a single national capitalist, and then into a world capitalist economy.”

The continuing globalization and centralization of power and money is an unavoidable outcome of capitalism. The system encourages and rewards the concentration of power, from the centralization in individual nations to the eventual centralization on the world stage.

“The change from the old type of capitalism, in which free competition predominated, to the new capitalism, in which monopoly reigns, is expressed, among other things, by a decline in the importance of the Stock Exchange.”

Lenin distinguishes between old-style capitalism and new (or late-stage) capitalism. Earlier stages of capitalism are truly founded on free enterprise and competition; later stages lead to monopolies which stamp out competition.

“Thus, the twentieth century marks the turning-point from the old capitalism to the new, from the domination of capital in general to the domination of finance capital.”

Lenin sees a historical turning point where something new has arrived on the stage of history—capitalism’s late-stage form is new, but has led to an imperialism that the world has seen many times before. Now the goal is the complete domination of financial capital.

“Finance capital, concentrated in a few hands and exercising a virtual monopoly, exacts enormous and ever-increasing profits from the floating of companies, issue of stock, state loans, etc., strengthens the domination of the financial oligarchy and levies tribute upon the whole of society for the benefit of monopolists.”

Finance capital is the ultimate, controlling means by which the monopoly is created and becomes the ruling power over individuals and smaller corporations.

“A monopoly, once it is formed and controls thousands of millions, inevitably penetrates into every sphere of public life, regardless of the form of government and all other ‘details.’”

When a monopoly controls the economic reality of billions of people, it is impossible to escape. The monopolies of late-stage capitalism deny the economic impact on individual communities that smaller entities could have.

“It is characteristic of capitalism in general that the ownership of capital is separated from the application of capital to production, that money capital is separated from industrial or productive capital, and that the rentier who lives entirely on income obtained from money capital, is separated from the entrepreneur and from all who are directly concerned in the management of capital.”

Capitalism stands in contrast to previous modes of economic advancement, where the individual was in much greater control of capital in addition to their own labor. Capitalism by definition concentrates capital into the hands of the few to give the work of production over to the many.

“Typical of the old capitalism, when free competition held undivided sway, was the export of goods. Typical of the latest stage of capitalism, when monopolies rule, is the export of capital.”

The former stages of capitalism concentrated on the export of goods. Capital was used to create goods, which were shipped globally. Under late-stage capitalism and imperialism, it is not goods which are of primary importance but the capital itself. Actual money is sent abroad and used to multiply finance capital exponentially.

“On the threshold of the twentieth century we see the formation of a new type of monopoly: firstly, monopolist associations of capitalists in all capitalistically developed countries; secondly, the monopolist position of a few very rich countries, in which the accumulation of capital has reached gigantic proportions.”

First, monopolies formed in individual communities. Then, monopolies formed and concentrated in individual states and nations. Finally, the national monopolies centralized and become global, worldwide monopolies.

“As long as capitalism remains what it is, surplus capital will be utilised not for the purpose of raising the standard of living of the masses in a given country, for this would mean a decline in profits for the capitalists, but for the purpose of increasing profits by exporting capital abroad to the backward countries.”

Capitalism rewards the success of the individual at the expense of the community and one’s competitors. Excess capital or profit is not put back into the community, nor is it used to create a higher standard of living for everyone. Rather, it continues to create greater and greater profits. These profits are sent abroad to other countries so that the same monopolies can continue benefiting on foreign soil.

“The capital-exporting countries have divided the world among themselves in the figurative sense of the term. But finance capital has led to the actual division of the world.”

The world is now in a state where imperial powers have left no land untouched and unclaimed. Formerly, the world was merely divided theoretically and by agreement. With the rise to power of imperialist finance capitalists, the world has been divided into sovereign powers, colonies, and even brand new countries and dividing lines.

“The capitalists divide the world, not out of any particular malice, but because the degree of concentration which has been reached forces them to adopt this method in order to obtain profits.”

It’s irrelevant whether capitalists divide the world out of malice and hatred for the subjects of which they demand obedience. Even with the best of intentions—which many of them surely lack—the world is divided and conquered to the detriment of the many and for the inordinate gain of the very few.

“For the first time the world is completely divided up, so that in the future only redivision is possible, i.e., territories can only pass from one ‘owner’ to another, instead of passing as ownerless territory to an owner.”

Now that the world has been divided up and handed out to world powers, there is no longer any land that is open, discoverable, or receptive. All land, all territories, are claimed and owned and held under threat of violence or in economic shackles. In the future, the only thing that can be done is for territories to be divided up again, by treaty or by war.

“It is beyond doubt, therefore, that capitalism’s transition to the stage of monopoly capitalism, to finance capital, is connected with the intensification of the struggle for the partitioning of the world.”

Capitalism will inevitably transition to monopoly capitalism. Basic principles of free trade and commerce stamp out competition. Goods and services are no longer exchanged for capital; instead, capital is divvied out to create further capital by usurious means.

“The principal feature of the latest stage of capitalism is the domination of monopolist associations of big employers. These monopolies are most firmly established when all the sources of raw materials are captured by one group…”

Monopolies harm economies. They hoard the raw materials necessary for creating material goods. They set prices without competition and further their hold on a specific sector of industry.

“Imperialism emerged as the development and direct continuation of the fundamental characteristics of capitalism in general.”

Imperialism is the flower of capitalism. It is the final form of the roots of simple capitalism. Imperialism dominates all it can; it creates colonies across the globe by which it can further its influence and gain hold of more raw materials and markets.

“The question is: what means other than war could there be under capitalism to overcome the disparity between the development of productive forces and the accumulation of capital on the one side, and the division of colonies and spheres of influence for finance capital on the other?”

Capitalism has divided the world into haves and have-nots. Violence is the only means by which to overcome this. Capitalism will not allow divisions to resolve by peaceful means; it will only allow change via revolution.

“One of the special features of imperialism connected with the facts I am describing, is the decline in emigration from imperialist countries and the increase in immigration into these countries from the more backward countries where lower wages are paid.”

The lifestyle of the very highest classes, the financiers, the promise of higher wages, and those in power create the illusion that imperialist countries are desirable. Capitalism creates a division in nation-states: A select few are seen as worthy of emigrating to, while the vast majority are viewed as places from which one must flee.

“Imperialism is the epoch of finance capital and of monopolies, which introduce everywhere the striving for domination, not for freedom. Whatever the political system, the result of these tendencies is everywhere reaction and an extreme intensification of antagonisms in this field.”

Capitalism—and later imperialism—create a world in which the highest ideal is not freedom, but power. This is true regardless of the political system or type of governance or constitution present in a particular state. All are striving for power, but power only ends up in the hands of the very few and wealthy.