Class System

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Class System Theory
Question 4
How Lenin explains the evolution of imperialism from capitalism
The development of imperialism can be mainly defined by understanding capitalism. Capitalism is an economic and political system in which the private sector has the majority control in determining trade and industrial matters rather than the state. Lenin in his studies shows that imperialism is the highest stage of capitalism. He explains this through economic analysis of the transition from free competition to a system characterized by a few powerful private organizations. His studies clearly define imperialism as the monopoly stage of imperialism.
Lenin’s deep understanding of monopoly helps him outline principle features characterizing imperialism that further explains the evolution from capitalism. One policy is the concentration on production and capital that creates monopolies which play primary vital decisive functions in the economic situation of a country. Another principle is the creation of financial capital also known as financial oligarchy. Financial institutions merge to form a few powerful finance monopolies. In the third principle, Lenin puts more emphasis on the importance of capital export, unlike the commonly known commodity export.
Formation of international monopolies and capitalist associations is another principle that characterizes imperialism. The need to enhance economic growth promotes the rise of powerful international organizations; this leads to the last principle where Lenin finds out that these powerful global monopolies divide the world into economic territories (45).

Enormous profitability of imperialism leads to dominance by these economic giants, more so explained by what was described as imperialist’s wars. Imperialist’s conducts activities which are much more centered on profit generating, unlike the capitalist. This demonstrates the need for imperialism and to some advanced extent the evolution from capitalism.
Work Cited
Lenin, V.I. “Imperialism, the Highest Stage of Capitalism.” Modern History of the Arab Countries by Vladimir Borisovich Lutsky 1969, www.marxists.org/archive/lenin/works/1916/imp-hsc/.