Colonialism and capitalism are inextricably linked to one another
Colonialism refers to ruling over a foreign state whereas capitalism refers to the production of goods and services incentivized by profit maximization Colonial expansion was accompanied by ethnocentrism This led to the extermination, displacement and marginalization of indigenous populaces Capitalism in the sphere of economics was structured on the basis of social classes this further subjugated the indigenous populaces Colonialism reinforced the transition from pre-industrial or pre-capitalist societies towards capitalist industrial societies This was achieved via commoditization, commercialization, mercantile and finance capital investments The colonies gradually started primitive accumulation which was the emergence of a productive capital and a working class both of which are necessities for capitalist production The transition to capitalism in north western Europe took place between the 16th – 19th centuries Global development of capitalism adversely affected the integration of pre-capitalist societies into the new emerging economic structures because the industrial revolution was brought externally by the colonial masters via aggressive and radical processes rather than internally. Capitalism and colonialism share three key areas o Periodic stages of uneven development between colonizing powers and within colonies o Various colonial states represented different interests o Diversity of the pre – colonial societies on which European domination was imposed
Stages of Colonialism and Capitalism
Understanding the nexus between European colonization and the development of capitalism outlines 3 stages: o 16th century (1500s) – The Crisis of Feudalism and the 1st Stage of Expansion European expansion is closely linked to the crisis of feudalism reflected by The emergence of independent groups of merchants and introduction of urban manufacturing Dynastic wars for sovereignty within and between existing political territories Series of peasant uprisings The challenges faced by pre-capitalist feudal states pushed them to search for and seize wealth of foreign lands The systematic colonial rule was initiated by Gangster entrepreneurs – consisted of explorers, mercenaries and merchant adventurers o 17th and 18th centuries (1600s and 1700s) – Merchants, Slaves and Plantations Witnessed the intensification of pursuit of treasure and trade Establishment of new forms of settlements and introductions of international trade which was directly linked with the development of manufacturing industries and transition to capitalism in Europe Triggered the need for procurement of slaves from Africa The later half of the 17th century experienced the mercantile trade war which was armed conflict within colonies which further intensified antagonistic European expansion Intensified European expansion accelerated the transition to capitalism and international division of labor o 19 and 20th centuries (1800s and 1900s) – Colonialism in the Era of Industrial th
Capitalism and Imperialism
Experienced consolidation of schematic colonial rule through state formation Consequently, capitalist colonialism took over feudal colonialism because it possessed greater power and domination in an international context The expansion in this period changed the processes of colonialism as extensive and large – scale demand of different types and volumes of raw materials were required The distinctive features of this period were: Imperialism of free trade – effective network of naval bases in addition with political and military capacity were established Monopoly Capitalism – according to Lenin the great depression in late 19th century took place due to the mutation of capitalist competition into a more extreme and dangerous form Finance capital – which was a dominant form of capital carried out via banking European expansion in connection with capitalism in this period was due to the need to find new outlets for exports of capital for two reasons: Competition for overseas sources of raw materials and securing markets for European manufactured goods Search for more profitable investment opportunities Colonialism during imperialism provided a framework for industrial capitalism to expand internationally.