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To cite this article: Jairus Banaji (1973) Backward capitalism, primitive accumulation and modes of production, Journal of
Contemporary Asia, 3:4, 393-413
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393
Articles
Backward Capitalism, Primitive Acc-
umulation and Modes of Production
Jairus Banaji
"Marxism takes its point o f departure from world economy, not as a sum o f national
parts but as a mighty and independent reality which has been created by the inter-
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national division o f labour and the world market, and which in our epoch imperiously
dominates the national markets"
Trotsky, The Permanent Re v ol ut i on
"Historic belatedness and the subjection or-China by the imperialists deprived the
Chinese bourgeoisie o f that progressive role which had been played by its European
forerunners in the bourgeois revolutions o f the West"
Trotsky, 'The War in the Far East and the Revolutionary Perspectives'
"What can the most demagogic petty bourgeoisie set against capitalist penetration?
Mere words; nothing more. They can offer no more than a temporary nationalist
orgy . . . Our mission is to explain and show the masses how only the socialist revo-
lution can present a real and effective barrier to the advance or imperialism"
Jose Carlos Mariategui, 'The Anti-imperialist Perspective'
" T h e nationalist model could be negated only by one o f two radical means: socialist
revolution or reintegration into world capitalim"
Octavia lanoi, Crisis in Brazil
To the bourgeoisie in the imperialist as well as in the dependent countries it is
axiomatic that given certain conditions, backward capitalism can sooner or later
achieve a rate of industrialization sufficiently rapid to absorb the mass of redundant
peasant labour in the villages. I For over sixty years now revolutionary marxists have
argued the opposite position: that in the conditions which characterise backward
capitalism development can at best assume a purely sporadic and combined charac-
ter, with a relative and partial industrialization superimposing itself on a disintegrat-
ing peasant economy which it cannot reintegrate rapidly enough. Whatever its
specific stature or the degree of its relative autonomy vis-a-vis imperialism, and re-
gardless of its political and ideological past, the bourgeoisie of the backward count-
ries cannot carry through the tasks associated historically with the bourgeois revo-
lutions in Europe and Japan. In particular, it has no final solution to the agrarian
problem, which remains an enormous burden to backward capitalism and an aid to
the revolutionary party. 2 In this historic sense "the democratic tasks of the back-
ward bourgeois nations lead directly in our epoch to the dictatorship of the prole-
tariat", that is, to socialist revolution. 3
market transfigured world economy as the old system of scattered national modes
of production disintegrated under its impulse. Behind the characteristic figures of
this epoch - early industrialization, expansion of trade, acquisition of colonies and
the migrations of labour and capital - lies the essential,fact that the national com-
ponents of world economy were increasingly bound together through a hierarchy
of forms of dependence and domination into a unified international structure. The
unity of world economy, hence the relative dependence of the 'parts' of world
economy on the 'whole', is the necessary point of departure in any discussion of
imperialism and economic backwardness.
But this unity acquired a specific historical expression in the fact that within
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feature of which was a wholesale expropriation of the peasantry and its conversion
into a class of outlawed proletarians. Against the persistent later confusion of these
levels of analysis his own indications make it clear that primitive accumulation in
the specific form charactedsing capitalist development in England is not a general-
ized model of capitalist industrialization valid for all sectors of world economy:
the chapter on primitive accumulation does not pretend to do more than trace
the path by which, in Western Europe, the capitalist order of economy emerged
from the womb of the feudal order of economy. It therefore describes the his-
torical movements which by divorcing the producers from their means of pro-
duction converts them into wage-workers.., while it converts those who possess
the means of production into capitalists... Now what application to Russia
could my critic make Of this historical sketch. Only this: if Russia is tending to
become a capitalist nation after the example of the teestcrt~ Europear~ c'o~c,tries
she will not succeed without having first transformed a good.part of her
. . .
mark in the 1850's and 1860s, Sweden in the 1870s or Canada and Argentina in
the 1900s. The accumulations originating in these booms were sustained on an
expanding scale within and outside the export sector through the operation of
linkage effects, while the accelerated expansion of the home market which the lat-
ter determined tended to displace the economic centre of gravity to industries
producing primarily for this market. 2t Moreover, the periods of rapid primitive ac-
cumulation derived additional impulses from the influx of capital and labour which
the booms attracted from the countries of developed or nascent capitalism, the
latter mainly from those countries of Europe, such as I taly, in which capitalist in-
dustry had still to reintegrate the labour exuded by the disintegrating modes of
production in the towns and countryside. (One expression of the close interdepen-
dence of economic processes under world capitalism is the fact that such migrations
were an important source of primitive accumulation for the home country in the
form.of emigrants' remittances. For example, in Italy in 1901-1913, against a com-
mercial deficit of 10,230 million lire, invisible items showed a credit of 12,291 mil-
lion, over half of which derived from emigrants' savings. 22) The rapid expansion of
Argentine, Canadian or Swedish exports occurred within the framework of a capital-
ist economy, and moreover of a capitalist social formation in which the persistence
of pre-capitalist modes of production was of little or no importance even as a secon-
dary tendency - a fact distinguishing these formations from others which were ex-
periencing nascent capitalist development in that period. On the other hand, in the
export-dependent colonial and semi-colonial social formations such 'as Egypt, Burma
or lndochina sharp increases in production for the world market' throughout this
period were made possible and sustained on the foundations of pre-capitalist eco-
nomy, and within the framework of modes of production whose laws of develop-
ment were determined entirely by the subordination of those territories to imperial-
ism. That the rising curves of commodity production for the world market failed
to finance primitive capitalist accumulation in the colonies and semi-colonies appears
* The process which Peter the Great initiated early in the I 8th century within the framework
of mercantilist policies (19) was onJy finally accomplished two centuries later by the primitive
capitalist accumulation of the Stalinist bureaucracy. Through tile programme of coUectivisation
an embryonic state bourgeoisie under Stalin's leadership subordinated and totally destroyed the
forms o f production coexisting among the peasantry. As nettelheim writes, "'within the space of
eight years the great mass of Soviet peasants were uprooted.from their former conditions o f
e x i s t e n c e . . . " But in the particular conjuncture in which the bureaucracy found itself primitive
capitalist accumulation also required certain political conditions: a wholesale depoliticisation o f
the working class and rapid destruction of the forces inside party and state which still fought for
a proletarian class programme, mainly the Left Opposition.(20)
B A C K W A R D CAPITALISM 399
4. ColonialStagnation
The colonial modes of production 24 assumed several historical forms whose pe-
culiarities were determined in general by whether imperialism restructured the for-
mer modes of production in a given territory or h~stalled a mode of production
where none existed, and in particular by the specific form of restructuring of the
previous mode of production. The most important of these forms of restructuring
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the given mode of production were (a) incorporation of the peasantry into big es-
tates such as those prevailing in the Andes, Mexico, Cochin China, Central Luzon
or parts of India, 2s (b) tile peasant's rapid integration into the world market and
subjugation to the dominance of merchant and usurer capital, as in Egypt, Burma
or Cambodia, 26 and (c) rapid destruction of the productivity of the traditional
mode of production by economic and legal mechanisms as part of an internal pro-
cess of primitive capitalist accumulation, eg. Rhodesia. 2"7 The installed mode of
production invariably assumed a servile or semi-servile form, that is. it was based
chiefly on servile relations of exploitation, in most cases forcibly importing its
labour from outside the given territory. 2s On the other hand, where incorporation
of the peasantry into large estates was the dominant mechanism of imperialist re-
structuring of the traditional mode of production, the colonial mode assumed a
distinctly semi-feudal character. Where the basis of imperialist exploitation was
the peasant's relation to the world market and where this relation was structured
and sustained mainly outside the economic and juridical framework of big property
through the peasant's bondage to local merchant and usurer capital, the colonial
mode of production took on the character of a semi-cohmialism. As the exah~ple of
Egypt suggests, direct installation of a colonial state apparatus was not, in these in-
stances, essential to the process of exploitation. Finally, in the settler colonies in
Africa the colonial mode of production emerged as a purely transitional and sub-
ordinate phenomenon, fuelling an internal expansion of the capitalist mode of pro-
dt, ction.
Due to its peculiarities the slave-based colonial mode of production requires a
separate and specific analysis of the mechanisms retarding primitive capitalist accu-
mulation 29 and for this reason the semi-feudal and semi-colonial forms of colonial
production are the only objects of analysis here. To begin with, behind the retarded
primitive capitalist acct, mt, lation of territories subjected to these specific forms of
imperialist exploitation lay the retarded expansion of their home markets. Such ex-
pansion required not primarily a sufficient level of personal consumption, as the
Narodniks argued when assessing the prospects of capitalist development in Russia,
but advances in the sphere of productive consumption or investment, as Lenin em-
phatically pointed out. Therefore it would be wrong to argue that the continuous
impoverishment of the colonial peasantries or the deterioration of their prodl,ctive
capacities made industrialization in the colonies and semi-colonies "impossible".
In Lenin's early writings on the market question two spheres of expansion of
the home market are isolated. "On the problem of interest to us, that of the home
400 J O U R N A L OF C O N T E M P O R A R Y A S I A
market, the main conclusion from Marx's theory of realisation is the following:
capitalist production, and, consequently, the home market, grow not so much on
account of articles of consumption as on account of means of p r o d u c t i o n . . . For
capitalism, therefore, the growth of the home market is to a certain extent 'indepen-
dent' of the growth of personal consumption". 3 Again, "production does indeed
create a market for itself: production needs means of p r o d u c t i o n . . , to expand
that department of social production which manufactures means of production, it
is necessary to draw into it workers who immediately present a demand for articles
of consumption". 31 On the other hand, "the 'impoverishment of the masses of the
people' not only does not hinder the development of capitalism, but on the contrary,
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comes apparent only when we consider its effects on the dominant forms of that ex-
pansion, ie. on the process of accumulation itself. Among the many 'factors' retard-
ing the expansion of the market in Russia Lenin gave special importance to "the
retention of obsolete institutions which hh~der the det~elopment of agricultural
capitalism", a4 In the colonies and semi-colonies capitalism failed to penetrate agri-
cultural production on any significant scale either in the form of a landlord-bourgeois
revolution or through the capitalist differentiation of the peasantry. For the lower
strata of the colonial peasantry, both middle and semi-proletarian, the mechanisms
which imperialism utilised in restructuring the former modes of production (the in-
stallation of big property and the enforced dominance of merchant and usurer
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capital) drained away the surplus which might have revolutionised the conditions
of production. In most Asian colonies few tenants-at-will appear to have been in a
position ofdirect relation to the market, as the majority of those engaged in com-
modity production were compelled to contract loans on the 'advance system', that
is, according to agreements binding tile peasant to sell the produce of his crop to
the lender at a price fixed in advance and "invariably below that obtaining in the
open market", as On the other hand, the well-to-do strata which were economically
in a position to resist the encroachments of usurer capital and of rent exploitation,
on the whole tended to reinvest the profits of commodity production in pre-capital-
ist modes of exploitation or to hoard them or to convert them into gold. These ten.
dencies of colonial rural economy imparted to the process of differentiation its main
peculiarity, namely, that the pauperisation of the peasantry and its conversion into a
semi-proletarian class was an expression of factors which retarded its differentiation
along capitalist lines and which, in general, blocked other possible modes of tran-
sition to capitalism in agriculture.
In the final analysis, however, the atrophy of accumulation on the plane of
hzdustry played a far more decisive role in constricting the expansion of the home
market and shaping the mechanism of colonial stagnation. In contrast to earlier
processes of primitive capitalist accumulation, the relative lateness of Russian, Ger-
man and Japanese industrialization determined the special importance of the State
in starting and accelerating the process of expanded reproduction. That is to say, in
certain social formations of late capitalist development capitalism was "an offspring
of the State". 36 On the other hand, the condition on which the possibility of this
type of intervention and hence of the whole process of primitive accumulation rested,
namely, the national autonomy of the State, was historically absent in the colonies,
and semi-colonies. In social formations of the latter type the State was either directly
controlled and dominated by imperialism, as in India or Indochina, or indirectly
dominated by it through more distant mechanisms of control, mainly financial and
diplomatic, as in Egypt before the British Occupation or in Peru after Independence.
In the formations directly subjugated by imperialism, the latter's refusal to grant pro-
tection or formulate policies to encourage accumulation decisively delayed the emer-
gence of a colonial bourgeoisie by several decades, while in the semi-colonies where
domination assumed an indirect aspect, the class alliance between imperialism and
the agrarian interests producing for the world market and dependent on the export-
import house controlled by foreigners 37 crippled the early development of bourgeois
nationalism. Though it would be wrong to ignore a certain ideological overdeter-
402 JOURNAL OF CONTEMPORA R Y ASIA
industrial nucleus which emerged before World War I, mainly in Argentina and Brazil,
was forced to adapt its structure to the dominant exporter sector. On the other hand,
due to the possibilities of import-substitution and to the role of the latter in trans-
forming the dimensions of the market, even the least disruption in world economy
could shift the balance of class forces in favour of colonial capitalism. Regardless of
the specific elements determining the initial possibilities of expansion - import res-
trictions, war demand, tariffs, the Japanese Occuption - once lhe process of expan-
ded reproduction was established, it could move forward, within certain limits,
through the dynamism constituted internally by its own linkages and the additional
flow of income brought about by this expansion. 4z At, most certain political con-
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ditions were required to ensure a certain relative continuity in the process of primi-
tive accumulation and these the industrial bourgeoisie in the main colonies and semi-
colonies sought chiefly through its struggle to control the state apparatus and main-
tain its hegemony within the ruling class through alliances with the urban middle
class and sections of the peasantry (India) or proletariat (Brazil, Argentina).
But the determining role of world economy was revealed in two opposite ways:
not only in the fact that only in conditions of world crisis could the colonial bour-
geoisie find room for expansion, but equally in the fact that the limits on the fur-
ther progress of accumulation in the backward countries, ie. the conditions which
formed the basis for their reintegration into the orbit of imperialism after the early
phases of import-substitution and for the emergence of new modes of international
dependence subjugating the backward countries to imperialism,43 were inseparably
bound up with the basic characteristics of colonial social formations - in other
words, with their entire past historical evolution within the framework of the
world market and with the innermost tendencies of the old mode of production.
Colonial capitalism emerged within a social formation characterized economically
by the following basic features: (i) by a retarded development of capitalist produc-
tion relations in agriculture, hence by a low productivity of peasant labour and stag-
nant output levels; (ii) by a structure of industry whose backward and one-sided
character sprang directly from the policies of delayed primitive accumulation; (iii)
by a concen, tration of exports on the products of agriculture. But far from eliminat-
ing and overcoming these features the peculiarities of the colonial process of indus-
trialization only i:ztensified them. In the first place, because early industrialization
drew on more archaic sources of primitive accumulation in trade (India) or the
profits of production for the world market (Brazilian coffee), no sharp conflicts
opposed the nascent industrial bourgeoisie to the classes whose fortunes were bound
up with colonial production. Moreover, as long as industrialization derived its main
dynamisms from a diversion of existing demand to local producers, ie. from the con-
quest of a pre-existing market by local industry, no historic basis existed for a radical
bourgeois assault on semi-feudalism. Thus while the urban market for capitalism
expanded rapidly throughout this period, the dimensions of the rural market for
industry were left untouched. 44 Secondly, as most of the h~dustrialization during
the Depression was confined to the consumer industries, the colonial bourgeoisie
remained dependent on imports for the bulk of its machinery, capital equipmeilt
and intermediate goods. At the particular stage of development which the most de-
veloped colonial capitalisms had reached by the 50s, this dependence assumed two
404 J O U R N A L OF C O N T E M P O R A R Y A S I A
aspects - due to a shortage of foreign exchange to finance the needed capital equip-
ment, a financial dependence, and due to the progressively advanced character of
substitution in this stage, a teclmological dependence. As the limiting force of these
effects came into play, backward capitalism rapidly ran into sporadic but intense
deficits on current account which it could only finance by depleting its past accumu-
lations of foreign exchange and by recourse to foreign capital.
Thus the curve of import substitution was determined in the most general sense
by the conditions in which capitalism was forced to develop in the backward sectors
of world economy. Despite its intensely nationalist and genuinely anti-imperialist
ideology and political traditions, 4s the colonial-bourgeois State was driven by the
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objective contradictions of its class situation into deeper and deeper dependence on
imperialism. On the political plane the transition to this new period of accumulation
determined one of two types of evolutions: either a relative displacement of the
industrial bourgeoisie by realignments within the ruling class, eg. renewed domi-
nance of tile landowners (Argentina) or a progressive readjustment of the forms of
its relationship with imperialism, varying from attempts to break with the West and
go over to Russia (Egypt) or to balance between Russia and the West (India) to whol~
sale capitulation to foreign monopoly capital (Brazil after Goulart). 46 But regard-
less of the specific type of evolution, hence of the specific political character of the
regime, military-oligarchic, bourgeois-democratic, bourgeois-nationalist and so on,
these shifts in the balance of class forces were important mainly in establishing tile
political conditions for the transition to dependent primitive accumulation, or in
carrying the process to a more advanced stage.
* One of the most clearly discernible phenomena associated with foreign~dominated import-
substitution is the emergence of a certain neo.endavism within the industrial sector of the
backward countries to which the bulk of foreign private capital is attracted. The tatter tends to
be concentrated in the most rapidly growing industrial sectors (such as transport equipment,
electrical machinery, chemical products, etc.) which due to their specific technological charac-
teristics, and the effects they produce, both directly and through backward linkages, block
the expansion of industrial employment and deepen the vertical structure of the market. While
it condemns the mass of" the population to unemployment and underconsumption, colonial
capitalism is compelled to cultivate the sectors of bourgeois consumption more and more
feverishly.(47)
406 J O U R N A L OF CONTEMPORA R Y ASIA
* From the standpoint o f the necessary theoretical and strategic tasks o f revolutionary parties
in the backward countries the notion o f dependent primitive accumulation is, o f course, insuf-
ficient because too abstract. The concrete analyses which these parties will have to make of their
own specific situations require a further, but still preliminary, step - differentiating the unity of
dependent capitalism into its concrete forms and the particular contradictions characterising
each form. For example, imperialism's subjugation of Ceylon and her domination of India could
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be reduced to a single 'model' only at the cost of eliminating precisely those peculiarities in
each of these relationships which are, after all, the main object of marxist analysis.
The bulk of external capital for rapid industrialization has gone only to a few countries, in
which three groups stand out:
(a) the ultra-dependent accumulation of Pakistan, S. Korea, Taiwan and some other coun-
tries and territories. In the 1950s and the 1960s the three economies mentioned achieved the
highest rates of growth of manufacturing o u t p u t , far exceeding the average for Asia. The basic
characteristic o f industrial growth in this group was an abnormally high rate of investment sus-
tained mainly by massive inflows of foreign, chiefly US, capital. Eg. in 1960-64, net assistance
as a proportion of gross domestic capital formation was 58% for S. Korea, 30% for Pakistan and
2t % for Taiwan. Pakistan and Taiwan experienced the highest income elasticities o f demand for
imports, 2.6 and 1.9 respectively, and around 1965-67 attracted the largest flows of net foreign
private capital in Asia as a whole - S. Korea topped the list with ~1409 million, Pakistan was
second with [ 1 9 5 m and Taiwan third with ~192m. (49)
(h) the semi-dependent accumulation of Argentina, Brazil and India which in 1963 accoun-
led for about half the total manufacturing output o f the backward economies and were, with
Mexico, in the industrial vanguard of the 'third world'. This group experienced much lower
rates of growth in the 1960s. Despite lower import-elasticities, the combination of their much
higher levels of industrial development (vertically integrated import-substitution) with stagnant
or declining export levels induced chronic dependence on inflows of capital (in gross terms they
attracted the bulk of official assistance in their respective 'regions'). In Argentina the Prebisch
Plan of 1955 explicitly linked any potential acquisition of machinery and equipment for expand-
ing industrial capacity to the outcome of efforts to attract foreign capital; importation of most
capital goods was prohibited unless financed by foreign capital. Due to the efforts of the
Frondizi regime, heavy imports of such goods during 1960-61 enabled many import-substituting
and some export industries In expand. The bulk of foreign capital attracted to Argentina in this
period went into chemicals, automobiles, non-ferrous metals, oil refining and machinery. (50) In
Brazil much of the substitution in capital goods was carried through by foreign subsidiaries o f
General Electric, Siemens, Brown-Boveri (heavy electricals), and Schneider (heavy n=achinery)
etc. By 1968 foreign capital controlled 80% of the pharmaceutical industry, 39% of engineering
production, 62% of car component production, 4 8 % o f aluminium.(5 I) Finally, in India the
build up of Dept. I industries was totally bound up with official flows. However, in this group
unlike the previous one, industrialization was already fairly advanced before the transition to
dependent accumulation in the 1950s: Vargas, Peron and Nehru embodied, in this sense, the
uppermost limits of the potentialities of colonial capitalism.
(c) the type of dependent accumulation which lran today represents with her rapid and, in
some ways, quite advanced industrialization closely bound up with government receipts from
the profits of foreign oil monopolies and with the projection of forward linkages from petro-
leum to the rest of the economy. (52) To these three basic types we can add:
(d) countries like Bolivia or Thailand which appear to have attracted US assistance for mili-
tary or 'strategic' reasons (53)
(el countries like Cuba, Egypt and those in E. Europe which form or formed part of a system
of dependency dominated by Russian state capitalism. (54)
A complete analysis of 'nan-colonialism' would require a study of the complex relationships
between the particular forms of dependent accumulation - however we choose to determine
these - and variations in the form o f state power and in the politico-ideological superstructure.
One link that is immediately apparent is the relation between monopoly capital, chiefly US, and
the neo-fascist regimes of the third world - Brazil, Turkey, Indonesia and so on; but what are
the specific interrelations between imperialism, dependent capitalism and formations of the
BACKWARD CAPITALISM 407
on the Left. On the one hand, positions reminiscent of that held by Serrati in the
debate on the colonial question at the Second Congress of the Comintern, dismissing
peasant struggles against imperialism as scarcely worth support, as irrelevant inter-
ventions in a process which, like the movement of Hegel's Idea, fias its only point of
culmination in advanced Europe ;sT on the other hand, 'third worldist' positions
which confer on those struggles the determining role, dismissing the proletariats of
Europe, Japan, America and the backward nations as insufficiently 'revolutionary'
(many of the attitudes which Lenin fought against in the Narodniks recur in the
latter positions). But between the workers of Birmingham, Chicago, Berlin and
Tokyo and the peasants of Laos, Cambodia and Vietnam has not the law of com-
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abolition of landlord economy and against the incursions of landlord capitalism, for
the unionisation of urban and rural workers, for the evacuation of foreign military
bases, etc.
FOOTNOTES
1. For reflections of this position in development economics see W.A. Lewis, 'Economic
Development with unlimited supplies of labour', Manchester School 1954, J.C. Fei and
0. Ranis, Development o f the Labour Surplus Economy: Theory and Policy (Illinois
1964), the articles by D.W. Jorgenson in Economic Journal 1961, Oxford Economic
Papers 1967, or, following a different line of thought, H.B. Chenery, 'Foreign assistance
and economic development', J.H. Adler (ed), Capital Movements and Economi'c Develop-
ment (New York 1967) and the other liberal advocates of foreign assistance criticised by
A.K. Bagchi, 'Aid models and inflows of foreign aid', Economic and Political Weekly,
January 1970 (Annual Number).
2. This position was argued for Russia by L. Trotsky: The Permanent Revolution and Results
and Prospects (Pathfinder Press 1969). See also the opening sections of the History o[
the Russian Revolution. For the agrarian queslion as an aid to the party see 1905 (Allen
Lane 1972).
3. L. Trotsky, 'Introduction', The Permanent Revolution.
4. L. Trotsky, The Third International After Lenin (Pathfinder 1970) pp. 19-20.
5. V.I. Lenin, The Development o f Capitalism in Russia, chapter 8, section S. Collected
Works (CW) !11 p. S94.
6. V.I. Lenin, 'Once more on the theory of realisation', CW IV p. 91-92.
7. A.G. Frank, Capitalism and Underdevelopment in Latin America (Penguin Books 1969)
or the similar position of L. virile, 'Latin America: feudal or capitalist', !. Petras and
M. Zeitlin (ed) Latin A merica: Reform or Revolution? A Reader (New York 1968).
E. Laclau, 'Feudalism and capitalism in Latin America', N e w Left Review May-June 197 I.
It should be empliaslsed that Frank's political position is perfectly correct insofar as it
stresses the primacy of socialist revolution.
8. For example, p-p. Rey, Stir I'Articulation des Modes de Production, Centre d'etude de
planification soclaliste, Sorbonne (mlmeo.), Bipan Chandra, 'Colonialism and modern-
ization', Indian History Congress i 970, S. Mukherji, 'Institutional rigidities in the
agrarian market in early 20th century Bengal', Current Dynamics, September 1970,
U. Patnaik, 'Development of capitalism in agriculture', Social Scientist. September ! 972 -
who all reject the simple characterization of the colonial economy as either 'feudal' or
'capitalist'.
9. Third International After Lenin, p. 209; Lenin's distinction between exchange and pro-
duction relations was cited by Kuusinen in the concluding stages of the 'decolonisation
debate' in the Comintern, t 928. See the International Press Correspondence numbers
for luly - November 1928.
10. K. Marx, "To the editors of Otechestvennlye Zapiskl', dated November 187'7. Contrast
with M. Dobb, 'Prelude to the Industrial revolution', Papers on Capitalism, Development
and Planning (Bombay 1967) w h o proposes exactly the view Marx attacks.
It. K. Marx, Capital 1 (Moscow 1961) p. 751. In these parts of Capital frequent references
are found to 'methods' and 'levers' o f primitive accumulation, suggesting that more was
involved in the process than the expropriation o f the peasantry.
12. E. Preobrazhensky, The N e w Economics (Oxford 1967). Preobrazhensky, a brilliant
Marxist economist and, with Trotsky, one o f the leaders o f the Left Opposition in
410 JOURNA L OF CONTEMPORAR Y ASIA
Russia. was the only one to make a serious intervention on the question of 'primitive
accumulation" after Marx.
I 3. C. Bettelheim, 'Theoretical comments', in A. Emmanuel, Unequal Exchange. A S t u d y o f
tire Imperialism o f Trade (New Left Books 1972) p. 29"I-8.
14. For Italy cf. J. Cammett, 'Two recent polemics on the character of the Italian Risorgi.
men to ', Science and Society [ 963, and A. Gerschenkron, E c o n o m i c Back wardness in
Historical Perspective (Harvard 1962) chap. 5 on Romero's thesis that, had there been
an agrarian revolution in this period, the whole pace of Italy's primitive capitalist accu-
mulation would have been dragged hack. Cf. Barrington Moore Jr., Social Origins o f
Dictatorship and Democracy (Peregrine Books 1969) on 'labour-repressive forms of
capitalist agriculture'.
l $. A. Gramsci, Selections From The Prison Notebool~s (Lawrence and Wishart 1971 ) p. 83,
pp. 269-70, Cf. Trotsky, 'The war in the Far East and the Revolutionary perspectives',
The Founding Conference o f the Fourth International (New York, no date) on Japan:
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"Emerging from the ranks of the feudal nobility and the warrior caste of samurai, the
bourgeoisie adapted the old institutions, with some modifications, to the requirements
of the new systems of capitalist exploitation. Thus ancient feudal institutions, including
a 'divine' monarchy, a semi-independent military caste, and semi-feudal types of exploit-
ation exist side by side with a 'democratic' parliament and'powerful industrial and finan-
cial t r u s t s . . . '" Cf. also the contribution of H.K. Takahashi to the debate on the tran-
sition from feudalism to capitalism, Science and S o c i e t y 1967, and .I. Halliday, 'Japan-
Asian capitalism', N e w Left R e v i e w 44 (! 96"/) who says of the Meiji Revolution: "even
the precise class nature of the Revolution is a subject of dispute. The problem seems Io
lie in the divorce between the force which brought about the Revolution (the developing
capitalist relations of production and distribution) and the main class behind the Meiji
Restoration itself (the warriors), and between the strata which controlled state power
after the Revolution and the class character o f their policies".
16. Takahashi, loc. cir.
17. cf. M.E. Falkus, The lndustrialisation o f Russia 1 700-1914 (Macmillan 1972) pp. 69-'/3.
! g. R. Luxemburg, The Junius Pamphlet. The Crisis in the German Social Democracy re-
printed in Rosa L u x e m b u r g Speaks (Pathfinder ! 970).
19. cf. A. Gerschenkron, Europe in the Russian Mirror. F o u r Lecturs in E c o n o m i c History
(Ca mbridge 19"/0), lecture 3.
20. B e t t e l h e i m a p u d Rey, op. cir. Cf.T. Cliff, R u s s i a : A Marxist Ailalysis (IS 1972) and
R. Banaji, 'Russia from proletarian revolution to social imperialism', E c o n o m i c and
Political ICeekly 1973 (forthcoming).
21. see the good articles of L. Jorberg, 'Structural change and economic growth: Sweden in
the 19th ce,st ury', F. Crouzet et al ted) Essays in European Economic History 1789.1914
(Edward Arnold 1969), 'The industrial revolution in the Nordic countries', C.M. Cipolla
ted) The Fontana Economic History o f Europe: The Emergence o f lnclustrial Societies -
2, and cf. R.E. Caves, 'Export-led growth and the new economic history', 1. Bhagwati
et al ted) Trade, Balance o f Payments and Growth (Amsterdam and London 1971 ).
22. as pointed out by L. Cafagna, 'The industrial revolution in Italy 1830-1914', The
Fontana Economic History o f Europe: The Emergence o f lnclustrial Societies - 1 (Fon-
tana Books 1973), p. 303.
23. It does to C. Kindleberger, E c o n o m i c D e v e l o p m e n t (Tokyo 1965) p. 164, P. EIIsworth,
'The dual.economy'. Economic D e v e l o p m e n t and Cultural Change 1962, R.E. Baldwin,
'Patterns of development in newly settled regions', C. Etcher and L. Wilt ted) Agriculture
in Economic D e v e l o p m e n t (Bombay 1970). None of these writers even attempt to dif-
ferentiate colonial social formations according to the dominant form of the mode of
production. Moreover, because they disintegrate the structure of world economy, they
can only grasp certain relatively superficial characteristics of these formations and thus
finally end by uttering tautologies, eg. "the primitive and stagnant character of under-
developed economies explains their failure to develop"[
24. on this concept, cf. C.F.S. Cardoso, 'S.M. Pelaez y el caracler del regimen colonial',
Estudios Sociales Centroamericanos 1972, J.L. Herbert, 'F-ssai d'explication theorique
de la reallte sociale Guatemalteque', Indianite et L u t t e des Classes (Paris 1972), J. Banaji,
'For a theory of colonial modes of production', E c o n o m i c and Political Weekly, Decem-
ber 23, 19"/2.
25. For s remarkably concrete study of this process of incorporation, cf. C. Gibson, The
A z tees under Spanish Rule. A History o f the Indians o f the Valley o f Mexico 1319-1810
(Stanford and Oxford 1964). On the Philippines, see M.S. McLennan, 'Land and tenancy
in the Central Luzon Plain', Philippine Studies, October ] 969.
BACKWARD CAPITALISM 411
26. Cf. J. Delvert, Le Paysan Cambodgien (The Hague ! 961 ) pp. 51 I -S I 8 on the articulation
of local merchantusurer capital with the big import-export houses on one side and the
peasantry on the other. See also the article by S. Mukherji cited in footnote 8 above. In
China in the 19th century the older semi-feudal mode of production was combined with
a colomal mode o f production of this specific form, ie. characterized by the penetration
o f foreign capital through the circuits o f local merchant capital.
27. See the excellent analysis o f this form in G. Arrighi. 'Labour supplies in historical pers-
pective: a study of the I~roletarisation o f the African peasantry in Rhodesia', Journal o f
Development Studies 1970; The Political Economy of Rhodesia (The Hague 1967) and
S. Trapido, 'South Africa in a comparative study o f industrialization' (paper presented to
the seminar on 'the societies o f Southern Africa in the 19th and 20th century', Institute
o f Commonwealth Studies, University of London, October 1970).
28. Cf. the early sections o f C. Furtado, The Economic Growth of Brazil (California 1963)
who points out that the slave-based sugar industry was profitable enough to self-finance
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tively close integration between the industrial bourgeoisie and landowners, cf. Bagchi,
op.cit., oh. 6.11.
45. As shown for India by Bipan Chandra, 'The Indian capitalist class and imperialism
before 194'/', (mimeo, 1972). The anti-imperialism of the Indian bourgeoisie, specifically
the National Congress, which A. Gordon poses as a problem in his interesting, 'The
theory of the "progressive" national bourgeoisie', Journal o f Contemporary Asia, vol. 3
no. 2 19"/3, is not difficult to grasp when related to the c/ass interests o f a rising colonial
bourgeoisie in the phase o f import-substitution within a national framework dominated by
by a colonial state apparatus. In this context bourgeois anti-imperialism is neither a facade
which the bourgeoisie erects to fool the people nor the kind o f movement which justifies
tailism behind the banner o f 'national capitalism'. In Peru in the ! 920s, while APRA
tended to have the latter illusion, .lose Carlos Mariategui in his attack on APRA, 'The
anti-imperialist perspective', New Left Review, November-December 1971, showed
traces o f the former. Mariategui was absolutely right insofar as he denounced and exposed
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illusions leading to tailism behind bourgeois nationalism, but wrong insofar as he tended
to assimilate all bourgeois-nationalist movements to the model o f a quick betrayal a la
Chiang Kai-shek. In the Indian context positions similar tO Mariategul's were taken up by
the Comintern during its 'third period', with disastrous consequences for the growth o f
the Indian CP.
46. On Argentina see E. Laclau, 'Argentina: imperialist strategy and the May crisia',New
Left Review, J uly-August 19'/0 ; on Egypt, M. Hussein, La Lutte de C/asses en E&ypre,
i 945. 70 (Paris 19"/I ); on Brazil, O. lanni, Crisis in Brazil (Columbia t 9"/0) and J. Quartim,
Dictatorship and Armed Struggle in Brazil (New Left Books 19"/I ). A similar analysis o f
the relations between imperialism and the Indian bourgeoisie still needs to be made. To
begin with, revolutionaries in India will have to abandon the classic myth that because
their bourgeois is not a 'national' one, ie. capable o f accomplishing primitive accumulation
through its own resources, it must be 'comprador'.
47. Cf. for an analysis of this mechanism, K. Bharadwaj, 'Notes on political economy o f de-
velopment: The Indian case', Economic and Political Weekly February 1972 (Annual
Number).
48. See C. Payer, 'The perpetuation o f dependence: the I M F and the Third World', Monthly
Review, Sept. 19'/I, and 'Exchange controls and national capitalism: the Philippines ex-
perience',Yournal o f Contemporary Asia, vol. 3 no. I 19'/3. On the background to these
interventions, ie. earlier accumulations o f foreign debt. cf. Economic Commission for
Latin America, External Financing in Latin America (UN New Y o r k 1965), Economic
Commission for Asia and the Far East, lndustridl Developments in Asia and the.Far East,
Volume I. Progress and Problems o f Industrialization (UN New York 1966), A. Maizeis,
Industrial Growth and World Trade (Cambridge 1965).
49. On this group: International Development Organisation, Industrial Development Survey,
Volume I V (UN New York 1972), S.H. Kim, Foreign Capital f o r Economic Development
A Korean Case StNdy (Praeger 1970), B. Balassa, 'Industrial policies in Taiwan and
Korea', apud di Marco, op.cit. I. Brecher and S. Abbas, Foreign A i d and Industrial
Development in Pakistan (Cambridge 1972).
50. C.F. Diaz-Alejandro. Exchange Rate Devaluation in a Semi.Industrialized Country: Tire
Experience o f Argentina, 1933.61 (Massachussets 1965).
$ t. Cf. J. Bergsman, Brazil: Industrialization and Trade Policies (Oxford 1970).
52. .l. Amuzegar and M. All Fekrat, lran: Economic Development under Dualistic Conditions
(Chicago 1971).
S3. Cf. the A d m i n i s t r a t o r of AID cited in L. Whitehead, The US and Bolivia: A Case o f Neo.
Colonialism (London ! 969).
54. For Egypt-Russia relations in terms of this t ype of analysis, cf. M. Hussein, op.cit.
$5. On this see E. Mandel, 'Imperialism and national bourgeoisie in L. America', International
vol. I no. 5, R. Pumaruna-Letls, Perou: Revolution Socialistee ou Caricature de Revo-
lution? (Paris 1971 ) and Hussein's analysis of Nasserism, op. cir.
$6. An image which Trotsky used for Russia, On Lenin (Oxford 1971) p. 144.
57. For Serrati, cf. ll. Carrere d'Encausse and S.R. Schram, Marxism and Asia (Allen Lane
1969) p. 165f.
58. A phrase used by Beta Kun at the Baku Congress in 1920, d'Encausse and Schram, op.
cir. p. 177, but not taken up since.
59. The Platform o f the Left Opposition 1927.
60. L. Trotsky, Tire Death Agony o f Capitalism and the Tasks o f the Fourth International.
What is referred to, on the Asian Left, as a 'new de moc ra t i c r e v o l u t i o n ' and s ome t i me s
a 'people's democratic r e v o l u t i o n ' oft e n means only what T r o t s k y i s t s have always meant
BACKWARD CAPITALISM 413
by a 'transitional programme'. The main difference is that when these concepts are
interpreted in this specific sense rather than as separate 'stages' of revolution in Stalin's
sense, the question of alliance with the rich peasantry, or even sections of the bourgeoisie,
recedes from the plane of strategy, where the Stalinists put it, to that of tactics, while
on the other hand, the problems of socialist revolution receive the main emphasis in the
party's propaganda and agitation.
"You cart teach anything you like today. Ten years ago if you taught
from a red book with a hammer and sickle sign on the cover chances
a r e you might land in jail, but today you can teach anything - provided
you stick to teaching and don't DO anything."
Field Marshall Prapass addressing an audience of Chulalongkom Univer-
si~ professors (Bangkok Post, August 31, ] 9 73J.
II
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