Lenin's Theory of Imperialism

Introduction :

The word "imperialism" has been derived from the word "imperia" which means to build upon an empire and "imperium" which means supreme power to command.Imperialism is the creation and maintenance of an unequal economic, cultural, and territorial relationship, usually between states and often in the form of an empire, based on domination and subordination relationship.There are mainly two schools of thought on imperialism :

• Liberal theory of Imperialism
• Marxist theory of imperialism

Lenin is from the Marxist school.According to Lenin in his study " Imperialism-The Highest Stage of Capitalism" he outlines imperialism as "Imperialism emerged as a development and direct continuation of the fundamental properties of capitalism in general.But capitalism became capitalist imperialism only at a definitive very higher stage of development".He also said that one of the main special features of imperialism(advanced capitalism) was the export of capital as distinct from the export of ordinary commodities.

Stages of Capitalism according to Lenin:

• MONOPOLY FORMATION : The concentration of production and capital had developed to such an extent that it had created monopolies which played an important part in economic life.In every industry,a very large proportion of the total trade was done by a few big concerns which were usually linked together by agreements for price-fixing, quotas and so on thus in effect exerting a joint monopoly.

• FINANCE CAPITAL : Bank capital merged with industrial capital creating a "finance-capital" oligarchy which virtually ruled each country.In the early days, the industrial capitalists were distinct from bankers, who had little or no concern or direct interest in industrial concerns, though they lent money to them and took a share of the profit in the form of interest .But with the growth of industry and wide establishment of "share-company", the men who owned banks also began to take shares in industrial companies while the rich industrialists took shares in banks.Thus,there emerged what is called banker-industrialist.The bank working with an industrial concern with which it was linked in this way, could help that concern by lending it money, by making loans to other companies on conditions that orders were placed with the concern in which the bank was interested and so on.Thus the finance-capital group was able to increase its wealth rapidly and its monopoly control of one section of industry after another and its voice received greater attention from the state.

• EXPORT OF CAPITAL DISTINCT FROM EXPORT OF COMMODITIES (FINANCIAL OLIGARCHY):The export of capital as distinct from the export of commodities grew in importance.In the early periods of capitalism, Britain exported textiles and other manufacturing goods to other countries and with such proceeds bought local products, thus in effect exchanged her manufactures for raw material and food required for British industry.England became a capitalist country before any other and by the middle of the 19th century, having adopted free trade, claimed to be "the workshop of the world", the supplier of manufactured goods to all countries.But by the last quarter of the 19th century, other countries also developed into independent capitalist states.On the threshold of the 20th century, a new type of monopoly was formed; monopolist associations of capitalists in all capitalistically developed countries and the monopolistic position of a few rich countries in which the accumulation of capital reached gigantic proportions.An enormous surplus of capital had arisen in the advanced countries.

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