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Imperialism, the Highest Stage of Capitalism
''Imperialism, the Highest Stage of Capitalism'' (1917), by Vladimir Lenin, describes the function of financial capital in generating profits from imperialist colonialism, as the final stage of capitalist development to ensure greater profits. The essay is a synthesis of Lenin’s modifications and developments of economic theories that Karl Marx formulated in ''Das Kapital'' (1867).〔John Baylis and Steve Smith (2005) ''The Globalization of World Politics'' OUP: p. 231〕
== Summary ==
In his Prefaces, Lenin states the First World War was “an annexationist, predatory, plunderous war”〔“Imperialism and Capitalism” in the ''Communist International'', No. 18, October 1921. p. 3. http://www.fordham.edu/halsall/mod/1916lenin-imperialism.html#bm3.〕 among empires, whose historical and economic background must be studied "to understand and appraise modern war and modern politics".〔“Imperialism, The Highest Stage of Capitalism'' Preface April 26, 1917. http://www.fordham.edu/halsall/mod/1916lenin-imperialism.html.〕
In order for capitalism to generate greater profits than the home market can yield, the merging of banks and industrial cartels produces finance capitalism—the exportation and investment of capital to countries with underdeveloped economies. In turn, such financial behaviour leads to the division of the world among monopolist business companies and the great powers. Moreover, in the course of colonizing undeveloped countries, Business and Government eventually will engage in geopolitical conflict over the economic exploitation of large portions of the geographic world and its populaces. Therefore, imperialism is the highest (advanced) stage of capitalism, requiring monopolies (of labour and natural-resource exploitation) and the exportation of finance capital (rather than goods) to sustain colonialism, which is an integral function of said economic model.〔Paul Bowles (2007) ''Capitalism'', Pearson: London. pp. 91–93〕〔(''Imperialism the Highest Stage of Capitalism'' III. Finance Capital and the Financial Oligarchy )〕 Furthermore, in the capitalist homeland, the super-profits yielded by the colonial exploitation of a people and their economy, permit businessmen to bribe native politicians, labour leaders and the labour aristocracy (upper stratum of the working class) to politically thwart worker revolt (labour strike).
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