Imperialism and Capitalist Decay

(quote of the issue)

The current global economic turmoil was triggered by a banking collapse, the result of rampant financial speculation originating in the U.S. and largely centred on housing and real estate. Writing nearly a century ago, Bolshevik leader V.I. Lenin noted the displacement of capitalist “free competition” by monopolies and the domination of finance capital centred on the banking industry. Lenin emphasized that the rise of this worldwide imperialist system signaled an epoch of capitalist decay, posing the need for proletarian socialist revolution in order to reorganize society in the interests of the vast majority.

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Imperialism, as the highest stage of capitalism in America and Europe, and later in Asia, took final shape in the period 1898–1914. The Spanish-American War (1898), the Anglo-Boer War (1899–1902), the Russo-Japanese War (1904–05) and the economic crisis in Europe in 1900 are the chief historical landmarks in the new era of world history.

The fact that imperialism is parasitic or decaying capitalism is manifested first of all in the tendency to decay, which is characteristic of every monopoly under the system of private ownership of the means of production. The difference between the democratic-republican and the reactionary-monarchist imperialist bourgeoisie is obliterated precisely because they are both rotting alive (which by no means precludes an extraordinarily rapid development of capitalism in individual branches of industry, in individual countries, and in individual periods). Secondly, the decay of capitalism is manifested in the creation of a huge stratum of rentiers, capitalists who live by “clipping coupons.” In each of the four leading imperialist countries—England, U.S.A., France and Germany—capital in securities amounts to 100,000 or 150,000 million francs, from which each country derives an annual income of no less than five to eight thousand million. Thirdly, export of capital is parasitism raised to a high pitch. Fourthly, “finance capital strives for domination, not freedom.” Political reaction all along the line is a characteristic feature of imperialism. Corruption, bribery on a huge scale and all kinds of fraud. Fifthly, the exploitation of oppressed nations—which is inseparably connected with annexations—and especially the exploitation of colonies by a handful of “Great” Powers, increasingly transforms the “civilised” world into a parasite on the body of hundreds of millions in the uncivilised nations. The Roman proletarian lived at the expense of society. Modern society lives at the expense of the modern proletarian. Marx specially stressed this profound observation of Sismondi. Imperialism somewhat changes the situation. A privileged upper stratum of the proletariat in the imperialist countries lives partly at the expense of hundreds of millions in the uncivilised nations.

It is clear why imperialism is moribund capitalism, capitalism in transition to socialism: monopoly, which grows out of capitalism, is already dying capitalism, the beginning of its transition to socialism….

By exposing the fact that the opportunists and social-chauvinists are in reality betraying and selling the interests of the masses, that they are defending the temporary privileges of a minority of the workers, that they are the vehicles of bourgeois ideas and influences, that they are really allies and agents of the bourgeoisie, we teach the masses to appreciate their true political interests, to fight for socialism and for the revolution through all the long and painful vicissitudes of imperialist wars and imperialist armistices.

—Lenin, “Imperialism and the Split in Socialism” (October 1916)