“The old imperialism had the ‘advantage’ that the leading metropolitan power of the time, Britain, could keep its economy open to the goods of the then newly-industrializing countries, without getting indebted (on the contrary it became the largest capital exporter in the years before the First World War). For at least four decades up to 1928, India had the second largest export surplus in the world (second only to the USA); and this despite the imports of goods that caused domestic de-industrialization. But this export surplus was entirely appropriated by Britain not only to pay for its current account deficit with continental Europe, North America and regions of recent European settlement, but also to allow it to export capital to these regions.” CapitalismIndiaColonialismImperialismFree TradeBritish Colonialism Book:The Veins of the South Are Still Open: Debates Around the Imperialism of Our Time Source: The Veins of the South Are Still Open: Debates Around the Imperialism of Our Time
“Such an increase in supply price [i.e. raw materials from the Global South], however, creates serious problems for capitalism. These arise not because of a diminishing rate of profit or a slide towards a stationary state as Ricardo had feared. Such fears relate in any case to long-run prospects. Increasing supply price, in so far as it gets translated to an increase in price, undermines the value of money, and that is a very serious and immediate issue for capitalism. If wealth-holders believe that the value of money in terms of commodities is going to fall over time, then nobody will hold wealth in its money-form.” CapitalismColonialismImperialismRaw MaterialsValue Of Money Book:The Veins of the South Are Still Open: Debates Around the Imperialism of Our Time Source: The Veins of the South Are Still Open: Debates Around the Imperialism of Our Time