[This was originally posted to the Introduction to Marxism mailing list.]
Ten years after Monthly Review published André Gunder Frank’s “Capitalism and Underdevelopment in Latin America”, Robert Brenner wrote an article in the July-August 1977 New Left Review that took aim at the “dependency school” associated with Paul Sweezy, Paul Baran, Samir Amin and André Gunder Frank. All of these authors were readily identifiable with Monthly Review, but Brenner attacked Immanuel Wallerstein as well, who was seen much more as a “world systems” theorist than a dependency theorist. Whatever differences existed between the dependency and world systems theories, they were united in their belief that capitalism was responsible for the development of underdevelopment in the 3rd world.
The proximate cause of Brenner’s article was to refute Paul Sweezy’s analysis of the origins of capitalism. In the 1950s, Sweezy debated Maurice Dobb in the pages of Science and Society over the “transition to capitalism question”. In “Studies in the Development of Capitalism” Dobb put forward the argument that capitalism developed through a combination of changes in the British countryside (enclosure acts, etc.) and colonialism in the New World. Strongly influenced by the historian Henri Pirenne, Sweezy took the position that a revival of trade with Asia was primarily responsible. Sweezy’s analysis influenced A.G. Frank as will be evident in Brenner’s polemics below.
Brenner adopted Dobb’s basic thesis but dropped the part about colonialism. Indeed, he was so emphatic about capitalism originating in the British countryside that he was positively hostile to any analysis that looked to “primitive accumulation” in the New World. In other words, he found the analysis of Baran and Frank that I have posted here over the past month or so to be outside of Marxism insofar as they supposedly put the struggle between nations over that of the class struggle. Basically, Brenner was arguing from the standpoint of classical Marxism against “Third Worldist” deviations-at least that is the way he saw it.
Brenner’s article is very long (70 pages) so I will only forward and comment on the sections that are relevant to the debate over dependency theory. (Unfortunately the article is only accessible to NLR subscribers so I really can’t supply a direct link.) My comments will appear in italics and will be enclosed by brackets. The “transition question” is of course very crucial to Marxist theory but will probably return to it later on after we have worked through the debates in Marxism over imperialism.
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New Left Review I/104, July-August 1977
Robert Brenner
The Origins of Capitalist Development: A Critique of Neo-Smithian Marxism
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[André Gunder] Frank and Capitalist Development
It has thus been maintained that the very same mechanisms which set off underdevelopment in the ‘periphery’ are prerequisite to capital accumulation in the ‘core’. Capitalist development cannot take place in the core unless underdevelopment is developed in the periphery, because the very mechanisms which determine underdevelopment are required for capitalist accumulation. In the words of André Gunder Frank, ‘economic development and underdevelopment are the opposite faces of the same coin’. As Frank goes on to explain: ‘Both [development and underdevelopment] are the necessary result and contemporary manifestation of internal contradictions in the world capitalist system . . . economic development and underdevelopment are relational and qualitative, in that each is actually different from, yet caused by its relations with, the other. Yet development and underdevelopment are the same in that they are the product of a single, but dialectically contradictory, economic structure and process of capitalism. Thus they cannot be viewed as the product of supposedly different economic structures or systems . . . One and the same historical process of the expansion and development of capitalism throughout the world has simultaneously generated-and continues to generate-both economic development and structural underdevelopment.’ [3] Specifically: ‘The metropolis expropriates economic surplus from its satellites and appropriates it for its own economic development. The satellites remain underdeveloped for lack of access to their own surplus and as a consequence of the same polarization and exploitative contradictions which the metropolis introduces and maintains in the satellite’s domestic structure.’ [4]
Obviously such a view of underdevelopment carries with it a view of development, the unitary process which ostensibly brought about both. Frank’s primary focus has in fact been on the roots of underdevelopment, so it has not been essential for him to go into great detail concerning the origins and structure of capitalist development itself. Yet, to clarify his approach, it was necessary to lay out the mainsprings of capitalist development, as well as underdevelopment; accordingly, Frank did not neglect to do this, at least in broad outline. The roots of capitalist evolution, he said, were to be found in the rise of a world ‘commercial network’, developing into a ‘mercantile capitalist system’. Thus ‘a commercial network spread out from Italian cities such as Venice and later Iberian and Northwestern European towns to incorporate the Mediterranean world and sub-Saharan Africa and the adjacent Atlantic Islands in the fifteenth century . . . until the entire face of the globe had been incorporated into a single organic mercantilist or mercantile capitalist, and later also industrial and financial, system, whose metropolitan centre developed in Western Europe and then in North America and whose peripheral satellites underdeveloped on all the remaining continents.’ [5] With the rise of this system, there was ‘created a whole series of metropolis-satellite relationships, interlinked as in the surplus appropriation chain noted above’. As the ‘core’ end of the chain developed, the ‘peripheral’ end simultaneously underdeveloped.
Frank did not go much further than this in filling out his view of capitalism as a whole, its origins and development. But he was unambiguous in locating the dynamic of capitalist expansion in the rise of a world commercial network, while specifying the roots of both growth and backwardness in the ‘surplus appropriation chain’ which emerged in the expansionary process: [6] surplus appropriation by the core from the periphery, and the organization of the satellite’s internal mode of production to serve the needs of the metropolis. In this way, Frank set the stage for ceasing to locate the dynamic of capitalist development in a self-expanding process of capital accumulation by way of innovation in the core itself. Thus, for Frank, the accumulation of capital in the core depends, on the one hand, upon a process of original surplus creation in the periphery and surplus transfer to the core and, on the other hand, upon the imposition of a raw-material-producing, export-dependent economy upon the periphery to fit the productive and consumptive requirements of the core.
It has been left for Immanuel Wallerstein to carry to its logical conclusion the system outlined by Frank. Just as Frank and others have sought to find the sources of underdevelopment in the periphery in its relationship with the core, Wallerstein has sought to discover the roots of development in the core in its relationship with the periphery. Indeed, in his magisterial work, The Origins of the Modern World System, [7] Wallerstein attempts nothing less than to establish the origins of capitalist development and underdevelopment and to locate the mainsprings of their subsequent evolutions.
Wallerstein’s System
Wallerstein aims to systematize the elements of the preliminary sketch put forward in Frank’s work. His focus is on what he terms the ‘world economy’, defined negatively by contrast with the preceding universal ‘world empires’. So the world empires, which ended up by dominating all economies prior to the modern one, prevented economic development through the effects of their overarching bureaucracies, which absorbed masses of economic surplus and prevented its accumulation in the form of productive investments. In this context, Wallerstein declares that the essential condition for modern economic development was the collapse of world empire, and the prevention of the emergence of any new one from the sixteenth century until the present. Wallerstein can argue in this way because of what he sees to be the immanent developmental dynamic of unfettered world trade. Left to develop on its own, that is without the suffocating impact of the world empires, developing commerce will bring with it an ever more efficient organization of production through ever increasing regional specialization-in particular, through allowing for a more effective distribution by region of what Wallerstein terms systems of ‘labour control’ in relation to the world’s regional distribution of natural resources and population. The trade-induced world division of labour will, in turn, give rise to an international structure of unequally powerful nation states: a structure which, through maintaining and consolidating the world division of labour, determines an accelerated process of accumulation in certain regions (the core), while enforcing a cycle of backwardness in others (the periphery). [8]
Without, for the moment, further attempting to clarify Wallerstein’s argument, it can be clearly seen that his master conceptions of world economy and world empire were developed to distinguish the modern economy, which can and does experience systematic economic development, from the pre-capitalist economies (called world empires), which were capable only of redistributing a relatively inflexible product, because they could expand production only within definite limits. Such a distinction is both correct and necessary. For capitalism differs from all pre-capitalist modes of production in its systematic tendency to unprecedented, though neither continuous nor unlimited, economic development-in particular through the expansion of what might be called (after Marx’s terminology) relative as opposed to absolute surplus labour. That is, under capitalism, surplus is systematically achieved for the first time through increases of labour productivity, leading to the cheapening of goods and a greater total output from a given labour force (with a given working day, intensity of labour and real wage). This makes it possible for the capitalist class to increase its surplus, without necessarily having to resort to methods of increasing absolute surplus labour which dominated pre-capitalist modes-i.e. the extension of the working day, the intensification of work, and the decrease in the standard of living of the labour force. [9]
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Wallerstein does not, in the last analysis, take into account the development of the forces of production through a process of accumulation by means of innovation (‘accumulation of capital on an extended scale’), in part because to do so would undermine his notion of the essential role of the underdevelopment of the periphery in contributing to the development of the core, through surplus transfer to underwrite accumulation there. More directly, Wallerstein cannot-and in fact does not-account for the systematic production of relative surplus product, because he mislocates the mechanism behind accumulation via innovation in ‘production for profit on the market’: ‘The essential feature of a capitalist world economy . . . is production for sale in a market in which the object is to realise the maximum profit. In such a system, production is constantly expanded as long as further production is profitable, and men constantly innovate new ways of producing things that expand their profit margin.’ (rfd, p. 398.)
Now, there is no doubt that capitalism is a system in which production for a profit via exchange predominates. But does the opposite hold true? Does the appearance of widespread production ‘for profit in the market’ signal the existence of capitalism, and more particularly a system in which, as a characteristic feature, ‘production is constantly expanded and men constantly innovate new ways of producing’. Certainly not, because production for exchange is perfectly compatible with a system in which it is either unnecessary or impossible, or both, to reinvest in expanded, improved production in order to ‘profit’. Indeed, we shall argue that this is the norm in pre-capitalist societies. For in such societies the social relations of production in large part confine the realization of surplus labour to the methods of extending absolute labour. The increase of relative surplus labour cannot become a systematic feature of such modes of production.
[The above paragraph is crucial to understanding the difference between Frank and Wallerstein on one side and Brenner on the other. For Brenner, the production of relative surplus value over and against absolute surplus value is a sine qua non for capitalism. The earliest stage of capitalism is marked by the production of absolute surplus value through 11 hour work days using very simple machinery. But with increased competition, capitalism is forced to rationalize production and improve labor productivity through technological innovation. In other words, the industrial revolution. Implicit in this analysis is the failure of the plantation and mining systems in the colonial world to live up to Brenner’s litmus test. To illustrate, Belgium was deeply involved in the production of relative surplus value when its working class produced automobile tires in the 1920s but in the Congo, when workers were dragooned into tapping rubber using the simplest of tools, there was only the production of absolute surplus value. In my view, this distinction between absolute and relative surplus value is not very useful in understanding colonial capitalism.]
[Brenner now turns to a lengthy discussion of his differences with Sweezy and Wallerstein over the transition from feudalism to capitalism that I am skipping over. Suffice it to say that his critique revolves around the idea that the transfer of wealth-including gold, silver, fur, etc.-from the New World to Europe could not account for the rise of capitalism. He makes this even more explicit when he turns once again to André Gunder Frank.]
Frank and his Critics
From this perspective, it is impossible to accept Frank’s view, adopted by Wallerstein, that the capitalist ‘development of underdevelopment’ in the regions colonized by Europeans from the sixteenth century-especially the Caribbean, South America and Africa, as well as the southern part of North America-is comprehensible as a direct result of the incorporation of these regions within the world market, their ‘subordination’ to the system of capital accumulation on a world scale. Frank originally explained this rise of underdevelopment largely in terms of the transfer of surplus from periphery to core, and the export-dependent role assigned to the periphery in the world division of labour. [83] These mechanisms clearly capture important aspects of the functioning reality of underdevelopment. But they explain little, for, as the more searching critics of Frank’s earlier formulations pointed out, they themselves need to be explained. In particular, it was stated, they needed to be rooted in the class and productive structures of the periphery. [84]
However, in more recent work, Frank has attempted to respond to his critics specifically by integrating an analysis of internal class structure into his theory of underdevelopment. He argues that ‘underdevelopment is the result of exploitation of the colonial and class structure based on ultraexploitation; development was achieved where this structure of underdevelopment was not established because it was impossible to establish. All other factors are secondary or derive from the basic question of the type of exploitation.’ [85] By this reasoning, it was the relations of exploitation which came to dominate Latin American and Caribbean production for export, especially slavery and other sorts of enforced-labour systems, which determined underdevelopment. Thus, ‘The colonial and class structure is the product of the introduction into Latin America of an ultraexploitative export economy, dependent on the metropolis, which restricted the internal market and created the economic interests of the lumpen bourgeoisie (producers and exporters of raw materials). These interests in turn generated a policy of under- or lumpen development for the economy as a whole.’ [86] Perhaps we could paraphrase Frank’s argument in the following terms: on the one hand, growing production for the market stimulated by world demand determined increasing pressure to extract greater surplus; on the other hand, the establishment of class systems of production based on the direct use of force determined that this increasing output would be achieved through the extension of absolute, rather than relative, surplus labour-with familiar results.
[The final paragraphs of Brenner’s article get to the political differences between “dependency theory” and what he offers up as a return to a class-based Marxism.]
Conclusions
Frank’s original formulations aimed to destroy the suffocating orthodoxies of Marxist evolutionary stage theory upon which the Communist Parties’ political strategies of ‘popular front’ and ‘bourgeois democratic revolution’ had been predicated. [107] Frank rightly stressed that the expansion of capitalism through trade and investment did not automatically bring with it the capitalist economic development that the Marx of the Manifesto had predicted. In the course of the growth of the world market, Chinese Walls to the advance of the productive forces might be erected as well as battered down. When such ‘development of underdevelopment’ occurred, Frank pointed out, the ‘national bourgeoisie’ acquired an interest not in revolution for development, but in supporting precisely the class system of production and surplus extraction which fettered economic advance. In particular, the merchants of the periphery backed the established order, for they depended for their profits on the mining and plantation enterprises controlled by the ‘reactionaries’, as well as the industrial production of the imperialists in the metropolis. But even the industrial capitalists of the periphery offered no challenge to the established structure-partly as a consequence of their involvement in luxury production serving the upper classes-while they merged with the ‘neo-feudalists’ through family connections and state office. As Frank asserted, to expect under these circumstances that capitalist penetration would develop the country was, by and large, wishful thinking. To count on the bourgeoisie for a significant role in an anti-feudal, anti-imperialist revolution was to encourage a dangerous utopia.
Yet, the failure of Frank and the whole tradition of which he is a part-including Sweezy and Wallerstein among others-to transcend the economic determinist framework of their adversaries, rather than merely turn it upside down, opens the way in turn for the adoption of similarly ill-founded political perspectives. Where the old orthodoxy claimed that the bourgeoisie must oppose the neo-feudalists, Frank said the neo-feudalists were capitalists. Where the old orthodoxy saw development as depending on bourgeois penetration, Frank argued that capitalist development in the core depended upon the development of underdevelopment in the periphery. At every point, therefore, Frank-and his co-thinkers such as Wallerstein-followed their adversaries in locating the sources of both development and underdevelopment in an abstract process of capitalist expansion; and like them, failed to specify the particular, historically developed class structures through which these processes actually worked themselves out and through which their fundamental character was actually determined. As a result, they failed to focus centrally on the productivity of labour as the essence and key to economic development. They did not state the degree to which the latter was, in turn, centrally bound up with historically specific class structures of production and surplus extraction, themselves the product of determinations beyond the market. Hence, they did not see the degree to which patterns of development or underdevelopment for an entire epoch might hinge upon the outcome of specific processes of class formation, of class struggle. The consequence is that Frank’s analysis can be used to support political conclusions he would certainly himself oppose.
Thus so long as incorporation into the world market/world division of labour is seen automatically to breed underdevelopment, the logical antidote to capitalist underdevelopment is not socialism, but autarky. So long as capitalism develops merely through squeezing dry the ‘third world’, the primary opponents must be core versus periphery, the cities versus the countryside-not the international proletariat, in alliance with the oppressed people of all countries, versus the bourgeoisie. In fact, the danger here is double-edged: on the one hand, a new opening to the ‘national bourgeoisie’; on the other hand, a false strategy for anti-capitalist revolution.
[The above paragraph is really the coup de grace that Brenner intended to deliver to Monthly Review Marxism. Although he does not spell it out exactly, the words “cities versus the countryside” are a veiled reference to Maoism. It is true that Monthly Review identified itself as Maoist to some degree and could have been challenged on that basis, but it is puzzling that Brenner did not make that line of attack clearer. Furthermore, the idea of adapting to the ‘national bourgeoisie’ is hardly supported by André Gunder Frank’s career. While his Marxism, and particularly his evolution into a “long wave” theorist, often left something to be desired, he was never one to stump for a progressive 3rd world bourgeoisie.]
True, bourgeois revolutions are not on the agenda. International capitalists, local capitalists and neo-feudalists alike have remained, by and large, interested in and supportive of the class structures of underdevelopment. Nevertheless, these structures have kept significant masses of use value in the form of labour power and natural resources from the field of capital accumulation. Until recently, of course, the class interests behind ‘industrialization via import substitution’ have not, as a rule, been strong enough to force the class structural shifts that would open the way to profitable investment in development. However, with contracting profit opportunities in the advanced industrial countries and the consequent drive for new markets and cheap labour power, potentially available in the underdeveloped world, such interests may now receive significant strength from unexpected quarters. Should a dynamic of ‘development’ be set in motion as a consequence-and that is far from certain-it could hardly be expected to bring much improvement to the working population of the underdeveloped areas, for its very raison d’être would be low wages and a politically repressed labour force. But this would in no way rule out its being accomplished under a banner of anti-dependency, national development and anti-imperialism.
[What would be Brenner be alluding to above? He is warning against an “anti-dependency” government that represses its own working class using “anti-imperialist” rhetoric. Possibly the most striking example of this tendency in the past 30 years has been the Islamic Republic of Iran. Once again, it must be underlined that Monthly Review has never adapted to the Islamic Republic notwithstanding the occasional strange posting on MRZine that Monthly Review editors have tolerated for reasons not worth going into here.]
Most directly, of course, the notion of the ‘development of underdevelopment’ opens the way to third-worldist ideology. From the conclusion that development occurred only in the absence of links with accumulating capitalism in the metropolis, it can be only a short step to the strategy of semi-autarkic socialist development. Then the utopia of socialism in one country replaces that of the bourgeois revolution-one moreover, which is buttressed by the assertion that the revolution against capitalism can come only from the periphery, since the proletariat of the core has been largely bought off as a consequence of the transfer of surplus from the periphery to the core. Such a perspective must tend to minimize the degree to which any significant national development of the productive forces depends today upon a close connection with the international division of labour (although such economic advance is not, of course, determined by such a connection). It must, consequently, tend to overlook the pressures to external political compromise and internal political degeneration bound up with that involvement in-and dependence upon-the capitalist world market which is necessary for development. Such pressures are indeed present from the start, due to the requirement to extract surpluses for development, in the absence of advanced means of production, through the methods of increasing absolute surplus labour.
[The warnings about ‘third-worldist’ ideology have to be understood in the context of the reaction against the excesses of the 1960s. Many socialists woke up with a hangover when they discovered that chants of “Ho, Ho Ho Chi Minh” had fallen on deaf ears in the U.S. and other industrialized countries. Basically, Brenner wanted to reorient the movement back to the metropolitan centers where the working class was powerful enough and advanced enough to “overlook the pressures to external political compromise and internal political degeneration”, but unfortunately not at all interested in socialist revolution. Not much has changed since Brenner wrote this article. The 3rd world continues to supply the shock troops against imperialism and the revolutionary process in Venezuela, Bolivia, Ecuador, and Peru would seem to have a lot more in common with André Gunder Frank’s analysis than Robert Brenner’s, particularly when you keep in mind that Frank was calling attention back in 1967 to Mariategui, a relatively obscure figure in Marxism at that time but one destined to influence the Latin American revolution of the 21st century.]
On the other hand, this perspective must also minimize the extent to which capitalism’s post-war success in developing the productive forces specific to the metropolis provided the material basis for (though it did not determine) the decline of radical working-class movements and consciousness in the post-war period. It must consequently minimize the potentialities opened up by the current economic impasse of capitalism for working-class political action in the advanced industrial countries. Most crucially, perhaps, this perspective must tend to play down the degree to which the concrete inter-relationships, however tenuous and partial, recently forged by the rising revolutionary movements of the working class and oppressed peoples in Portugal and Southern Africa may be taken to mark a break-to foreshadow the rebirth of international solidarity. The necessary interdependence between the revolutionary movements at the ‘weakest link’ and in the metropolitan heartlands of capitalism was a central postulate in the strategic thinking of Lenin, Trotsky and the other leading revolutionaries in the last great period of international socialist revolution. With regard to this basic proposition, nothing has changed to this day.
[The reference to Portugal and Southern Africa clearly was intended to bolster the idea that the classical model of working class revolution was returning once again. However, at the very time that Brenner was writing these words, the Sandinista revolution was rapidly gathering strength and moving toward final victory. The class forces of that revolution involved small ranchers and the informal economy, hardly the traditional bastions of proletarian revolution. Perhaps today’s financial crisis will spur the world working class into action once again but it would be a mistake to dismiss social forces that have not been vetted by classical Marxism. History does move in wayward directions after all.]