Chapter Four, Imperialism Without Colonies, p. 91 to 113

Chapter Four, Imperialism Without Colonies

a. sudden upsurge in the aggressive pursuit of colonies
b. commercial revolution > disintegration of feudalism > foundation of capitalism
c. colonialism: the control or governing influence of a nation over a dependent people, territory, or people. Has always existed.
1. pursuit/acquisition of colonies
2. military forces defined trade routes
3. upon industrialization, native industry was destroyed, natural resources were stolen,
4. large scale industry based on metallurgy, application of organic chemistry, new sources of power, new means of communication & ocean transport
5. periods: mercantile capitalism, competitive industrial capitalism, monopoly capitalism

Distinguishing features of New Imperialism
a. monopoly capitalism- corporation, high degree of economic concentration
b. nation states develop markets
c. expansion of markets must occur
d. British loans built railroads all over
e. money loans obscure markets
f. foreign sources of energy are required
g. knowledge: 1/3 of capital investment, actual machines is 1/3
h. The U.S. capital contribution for industries is less in poor countries than rich ones
i. domestic labor is “too expensive”
j. 1. the purchase of foreign bonds
k. 2. the purchase/development of oil wells/mines
l. profit rates for transporting minerals are very high
m. depleted natural resources > depleted profit for mining the resource
n. profit rate dominates all investment decisions
o. “business can be understood as a system of power.”
p. owning raw materials allows companies to change their prices
q. low labor costs + politics open to investment: firms move there!
r. the move to manufacture components & finished products in Japan, Italy, Korea, Hong Kong has certainly been felt by certain sections of U.S. Labor.
s. expansive drive for advanced capitalist countries to operate on a world scale
t. the army expands markets and props up other advanced nation’s economies
u. government is a servant of large corporations & banks
v. the government may have wide freedom in determining policy
w. ruling groups might have less freedom: they need a strong economy to maintain power
x. competition among vested interests
y. compromise between Northern industrialists & Southern Bourbons in the US after Civil War
z. compromise between the landed aristocracy & large industrialists in Germany


Structure:
a. a government “must” provide a comfortable environment for the leading industrialists & bankers to operate in
b. reforms must run counter to the basic interests of big business

Basic points:
a. monopoly structure of big business in metropolises
b. the imperative for these economic centers to grow & control materials sources & markets
c. continuation of an international division of labor which serves the needs of metropolitan centers
d. national rivalry among industrial powers for export & investment opportunities in each other’s markets & over the rest of the world
e. keep subordinate nations dependent
f. ward off encroachment of rival powers
g. extend influence and control over reserves of former colonies
h. allocation of resources is the result of many historic forces
i. colonialism destroys traditional power center
j. rulers of colonies were dependent on mother countries
k. preferential trade/political arrangements to maintain former economic ties.
l. manipulation of local ruling groups
m. influencing allocation of resources with the International Monetary Fund (IMF)
n. the US dollar became the dominant international currency
o. NY became the main international banking center
p. becoming the main provider of military & economic aid
q. constructing a global network of military bases & staging areas