>>> [EMAIL PROTECTED] 10/10/00 09:55AM >>>
Query: I know that Karl Marx has not discussed in great detail the
transition/evolution in economic systems from clan wealth accumulation or
other forms of primitive accumulation to capitalism. He has acknowledged
that a division between production and trading (forms of merchant traders)
has always existed even in the most primitive economies. Sometimes but
not always this trade becomes very specialized and accumulates capital in
the hands of merchants. I am specifically interested in exploring what
role, if any, "merchant capitalism" or commercial capitalism played in this
evolution. Is mercantilism a precursor to capitalism? Is merchant
capitalism a sufficient (or even a necessary) condition for the development
of industrial capitalism? Many Medieval economies had well developed and
powerful merchant classes but not all of them evolved into full-blown
industrial capitalism. All thoughts and/or references are most welcome and
appreciated.
((((((((((((
CB: There is a big debate on this on the Marxism and PEN-L lists now.
Thanks Charles. My thoughts on the topic begin with W. W. Rostow's work on the Stages of Economic Growth that explored the conditions that led to the development of capitalism in advanced countries like England. This work led to numerous controversies as to the take-off point of industrial capitalism, particularly in England.
Andre Gunder Frank and Immanuel Wallerstein emphasize the interplay between the social and economic conditions in interconnected regions/countries, but their framework has unfortunately played a minor role, if any, in traditional analysis on the development of capitalism and the contribution of merchant trade. There is also the Cambridge School that focuses on a domestic consumption side prompted impetus for the development of capitalism. But apart from these two views, most of the traditional economic analysis on conditions that led to the growth in capitalism narrowly concentrates on the specific conditions of the industrial revolution in England (here the focus is clearly on industrial capitalism). Even Karl Marx did not give much importance to mercantilism as a precursor to industrial capitalism, but rather focused on the transition from the feudal farmer to the industrial capitalist.
In my opinion, many mercantilist developments have been so crucial in the development of capitalism such as the international letter of credit, integrated capital markets using bank branches and bank checks, coalitions in trade, and joint stock companies. One can actually find the roots of the modern day corporation in the joint stock company. I don't really see how mercantilism can be viewed as just an aberration that is neither a necessary nor a sufficient condition in the transition to capitalism.
Diane
