II. The fundamental characteristics of the new stage of capitalism

II. The fundamental characteristics of the new stage of capitalism
The closing years of the 19th century and the opening years of the 20th had been marked by a succession of wars — between China and Japan in 1894, Spain and the USA in 1898, Britain and the Boer republic in South Africa in 1899, Japan and Russia in 1904, Italy and Turkey in 1911, the Balkan states and Turkey in 1912, and between the Balkan states themselves in 1913. This ascending wave of wars culminated in outbreak of the first world war in 1914.
The “Great War” of 1914-18 brought into stark view a significant quality that had marked, on a growing scale, the wars of the “age of imperialism” — the struggle between the “Great Powers” for hegemony of the world and the control of its economic resources, actual and potential. It constituted concrete evidence that, as Lenin put it in his 1920 preface to his Imperialism:
Capitalism has grown into a world system of colonial oppression and financial strangulation of the overwhelming majority of the people of the world by a handful of “advanced” countries. And this “booty” is shared between two or three powerful 10 Imperialism, the Highest Stage of Capitalism
world plunderers armed to the teeth (America, Great Britain, Japan), who are drawing the whole world into their war over the division of their booty.
Imperialism was therefore not to be explained as merely a change in the foreign policies of the governments of the “advanced” countries, but as a change in the nature of capitalist relations of production. While cautioning that it was necessary not to forget “the conditional and relative value of all definitions in general, which can never embrace all the concatenations of a phenomenon in its full development”, Lenin pointed out that if it were necessary to “give the briefest possible definition of imperialism we should have to say that imperialism is the monopoly stage of capitalism”. Such a definition, he added, “would include what is most important, for, on the one hand, finance capital is the bank capital [i.e., the money capital] of a few big monopolist banks, merged with the capital of the monopolist associations of industrialists; and, on the other hand, the division of the world is the transition from a colonial policy which has extended without hindrance to territories unseized by any capitalist power, to a colonial policy of monopolist possession of the territory of the world, which has been completely divided up”.
Lenin noted “five basic features” as the imperialist stage of capitalism:
(1) the concentration of production and capital has developed to such a high stage that it has created monopolies which play a decisive role in economic life; (2) the merging of bank capital with industrial capital, and the creation on the basis of this “finance capital”, of a financial oligarchy; (3) the export of capital as distinguished from the export of commodities acquires exceptional importance; (4) the formation of international monopolist capitalist associations which share the world among themselves; and (5) the territorial division of the whole world among the biggest capitalist powers is completed.
Taken separately each of these phenomena shows a degree of becoming a difference in kind. But in their totality, they represent a transformation of quantity into quality — a qualitatively new stage in the development of capitalism. Taken as a whole, their central characteristic is the transformation of free competition into its opposite, into monopoly. This indicates that the distinguishing features of imperialism are not to be dismissed as superficial or temporary aberrations, accidentally modifying the “normal course” of capitalism. They indicate that the essential production relations of capitalism have developed all the potentialities latent within their primary antagonism (socialisation of the productive process and private appropriation of the results of this process), and that before any further development of the social relations of production is possible the antagonism itself must be eliminated. This can be seen most clearly if Imperialism, the Highest Stage of Capitalism 11 we examine in succession each of the five basic features of imperialism distinguished