The imperialist phase of capitalist accumulation which implies uni-

versal competition comprises the industrialisation and capitalist eman-

cipation of the hinterland where capital formerly realised its surplus

value. Characteristic of this phase are: lending abroad, railroad con-

structions, revolutions, and wars. The last decade, from 1900 to 1910,

shows in particular the world-wide movement of capital, especially in

Asia and neighbouring Europe: in Russia, Turkey, Persia, India, Japan,

China, and also in North Africa. Just as the substitution of commodity

economy for a natural economy and that of capitalist production for a

simple commodity production was achieved by wars, social crises and

the destruction of entire social systems, so at present the achievement

of capitalist autonomy in the hinterland and backward colonies is

attained amidst wars and revolutions. Revolution is an essential for the

process of capitalist emancipation. The backward communities must

shed their obsolete political organisations, relics of natural and simple

commodity economy, and create a modern state machinery adapted

to the purposes of capitalist production. The revolutions in Turkey,

Russia, and China fall under this heading. The last two, in particular, do

not exclusively serve the immediate political requirements of capitalism;

to some extent they carry over outmoded pre-capitalist claims while on

the other hand they already embody new conflicts which run counter

to the domination of capital. These factors account for their immense

drive, but at the same time impede and delay the ultimate victory of the

revolutionary forces. A young state will usually sever the leading strings

of older capitalist states by wars, which temper and test the modern

state’s capitalist independence in a baptism by fire. That is why military

together with financial reforms invariably herald the bid for economic