Ricardo wrote:
>I don't think arguments a la Ernest Mandel will do today. 

Have they been superseded or something? What's your objection to the
following:

(From V2 of "Marxist Economic Theory")

In the decisive formative period of the capitalist mode of production,
extending from the sixteenth to the end of the eighteenth century, the
creation of the world market was of crucial importance. Its main results
for the primitive accumulation of capital in Western Europe have been
examined above. But all through this period of the birth of capitalism the
two forms of surplus-value appeared at each step. On one hand, it was the
outcome of the surplus labour of the wage workers hired by the capitalists;
on the other, it was the outcome of vales stolen, plundered, seized by
tricks, pressure or violence from the overseas peoples with whom the
western world had made contact. From the conquest and pillage of Mexico and
Peru by the Spaniards the sacking of Indonesia by the Portuguese and the
Dutch and the ferocious exploitation of India by the British, the history
of the sixteenth and eighteenth centuries is an unbroken chain of deeds of
brigandage which were so many acts of international concentration of vaIues
and capital in Western Europe, the enrichment of which was for, in the
literal sense of the word, by the impoverishment of plundered areas.

It can be stated unhesitatingly that the contribution made by this capital
was decisive for the accumulation of the commercial capital and money
capital which, between 1500 and 1750, created the conditions which proved
propitious for the industrial revolution. It is difficult to calculate the
total amount involved, but if one takes into account only the most
substantial contributions these add up to a staggering sum.

Hamilton estimates at over 500 million gold pesos the total amount gold and
silver exported from Latin America between 1503 and 1660. According to
Colenbrander, the total value of the dividends, officials' remittances and
cargoes of spices taken out of Indonesia by the Dutch East India Company
amounted to 600 million gold forms for the period 1650-1780. On the basis
of the calculations made by Father Rinchon, we know that profits from the
slave trade amounted in eighteenth-century France to nearly half a billion
livres tournois (without including the profit arising from the work done by
the slaves, which came to several billion livres).' The profits obtained
from the labour of the negroes in the British West Indies amounted to �200
to �300 million.

Finally, even if estimates differ markedly on this point, it is not
exaggeration (see the work of a high colonial official, a firm defender of
the Empire, Sir Percival Griffiths: The British Impact on India)  to
estimate at �100 to �150 million the outcome of the British plundering of
India between 1750 and 1800.

The total amount comes to over a billion pounds sterling, or more than the
capital of all the industrial enterprises operated by steam which existed
in Europe around 1800!

We do not allege that all this wealth went directly to nourishing European
industry. A large share of it did nourish this industry indirectly, through
the luxury expenditure of the rich, whether new or old, through State
expenditure financed by public loans and paid for out of colonial revenues.
But the historical connections between this influx of capital into Europe
and the conditions favouring the industrial revolution are undeniably direct.

Father Rinchon remarks regarding the enrichment of France in the eighteenth
century: "The growth in colonial establishments, the progress in trade and
transport, and rise in power, wealth and reputation of the metropolitan
country, all these resulted from the slave trade. France's external trade
in the eighteenth century enjoyed a favourable balance of several million
livres, and this was due to the export of colonial products which were the
fruit of slave labour."

G. Martin observes, even more precisely: "Every port to which the
slave-ships returned saw the rise of manufactures in the eighteenth
century--refineries, cottons, dyeworks, sweet-making--in increasing numbers
which testified to the advance of business and industry. In Nantes, for
instance, there were founded in the course of the eighteenth century 15
refineries, 5 cotton manufacturers . . . , two big dyeworks, two
sweet-making establishments . .. Industries created, private fortunes
increased, the public wealth of the cities transformed, the flowering of a
new class--the big merchants eager to play a part in public affairs--these
are the essential features with which the slave trade marked the evolution
of France in the eighteenth century."

And Brooks Adams defines the direct relationship between the plundering of
India by the East India Company, after the battle of Plassey, and the
beginning of the industrial revolution: "Very soon after Plassey the Bengal
plunder began to arrive in London, and the effect appears to have been
instantaneous, for all authorities agree that the 'industrial revolution',
the event which has divided the nineteenth century from all antecedent
time, began with the year 1760 (the battle of Plassey occurred in 1757) ..
. At once, in 1759, the bank (of England) issued �10 and �15 notes (for the
first time)."

The writer recalls that Burke estimated at �40 million the British
extortions in India between 1757 and 1780. H. V. Wiseman estimates that
between 1770 and 1780 the labour of slaves in the West Indies brought
another �40 million to Britain. Around 1770 the value added annually (wages
plus profits) in the whole of British industry was put at only �24~5
million in the well-known writings of Arthur Young (Political Arithmetic,
etc.). It can be concluded without exaggeration that for the period
1760-1780 the profits from India and the West Indies alone more than
doubled the accumulation of money available for rising industry.

Thus, even before industrial capitalism had developed in England, the
exploitation, whether casual or systematic, of overseas countries was one
of the chief sources of Europe's wealth. And the chief victims of primitive
accumulation were, more than the yeomen driven from heir farms by
sheepraising or the journeymen of the crafts left without work in the towns
and forced to work for a miserable pittance in or-relief workshops, the
indios condemned to mita (forced labour), the Bantu sold as slaves, the
wretched inhabitants of the Hongy Islands, terminated by the expeditions of
the Dutch East India Company, the people of the decadent Mogul Empire,
pitilessly plundered by the agents of the British East India Company. It
was this systematic plundering of four continents, during the commercial
expansion of the sixteenth to eighteenth centuries, that created the
conditions for the decisive lead acquired by Europe from the industrial
revolution onward.

Louis Proyect

(http://www.panix.com/~lnp3/marxism.html)


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