Jim wrote: "As Doug notes, the question of how the surplus-value is utilized is crucial. Paul Baran also asked this question."
Agreed. Mandel discussed this very specifically in a 1967 paper "Primitive accumulation and the industrialisation of the third world" (continuing his analysis from Marxist Economic Theory), which I translated, noting the difference between the original accumulation of money-capital and the original accumulation of industrial capital. It is quite possible for the direct producers to be separated from the land and become propertyless proletarians, without this leading to anything other than partial and one-sided industrialisation, because (1) the local bourgeoisie has no strong motive for industrialisation within the socio-economic structure and culture which exists, (2) because more lucrative, less risky sources of surplus-value exist, and (3) because protectionism, superior productivity and monetary manipulations of the developed countries block industrial development beyond what is compatible with the interests of the developed countries. J.
