In our article we will try to tell as much as possible about state-monopoly capitalism. This is a type of monopoly capitalism, which is characterized by a combination of two great forces - the whole state and monopolies. But this is a general outline. Over the years, this form of capitalism has changed, there were many reasons for this. Not enough production of workers, raw materials, gold. But we will talk about everything in more detail in our article.
Features of capitalism in the early twentieth century
The First World War is a huge blow to the industry of Europe and the world as a whole. Resources were plundered at tremendous speed, monopoly capital was increasing. Most of the areas of industry switched to the production of weapons (this product was necessary). The development of capitalism was also influenced by other factors (also caused by wartime).
Production focused on the largest and most technologically equipped enterprises. But the organizational structure also had a huge impact. During the war, large capitalists received huge profits. Unfortunately, at the same time, the working masses were impoverished, many small industrialists and entrepreneurs went bankrupt. To whom is war, and to someone truly is my mother.
But it was thanks to the First World War that an unprecedented strengthening and acceleration of the processes of concentration and centralization of capital took place. It was she who allowed to increase the power and number of monopolistic organizations. It was during the war that the monopolists crushed the state for themselves and used it for their own enrichment.
Becoming
State-monopoly capitalism in Russia is not much different from its foreign "analogues." But let’s start by understanding what a monopoly is. This, literally translated, is the exclusive right to sell or manufacture any product (service). At the beginning of the twentieth century, capitalism was strengthened by war.
It was she who allowed to accelerate and sharpen the process of converting monopoly capitalism into state-monopoly capitalism. In one year of the First World War, there have been as many transformations as there have not been in a quarter century. The whole industry crushed the government. And this happened in most countries - Germany, Britain, USA.
Particular attention should be paid to state-monopoly capitalism in the United States. In this state prevailed before the First World Monopoly. And already during and after the war they firmly crushed the state apparatus for themselves.
Early monopoly
The apparatus of government was subordinate in the capitalist countries through the formation of military-economic bodies. Their management was carried out by representatives of monopolistic organizations. And thanks to state regulation, there was a dispersal of the working masses, raw materials, and fuel. Moreover, all this happened exclusively in the interests of enterprises-monopolies.
These enterprises were funded and subsidized by the state and various mixed organizations. Monopolies widely used the state apparatus of oppression and propaganda. Only thanks to these structures was it possible to achieve space profits, and most importantly, to increase the exploitation of the working population.
Early stages of development
In the formation of state-monopoly capitalism, one main goal was set - strengthening capitalism, providing large industrialists with profit due to the oppression and exploitation of the working population. We can distinguish the forms of monopoly capitalism that are characteristic of the early stages of development:
- cartels;
- trusts;
- syndicates.
Modern forms are very different from the early ones:
- conglomerates;
- multinational companies;
- concerns.
These forms are characteristic of such countries as Germany, Great Britain, France.
A bit about Germany
If you look at the era of state-monopoly capitalism, you can see that Germany during this period was very far from the world market. And she waged war only at the expense of resources within the state. It is for this reason that Germany was the first to get in the way of state and monopolist intervention in the country's economy. During this period, one can observe maximum centralization and bureaucracy.
Intervention in the country's economy was due to the fact that the state was completely separated from the world market. And the needs that arose due to martial law only increased. The needs of the armed forces were enormous, they could be met only if the consumption of the working population of the country was sharply reduced. The consumption of raw materials and food stocks should be reduced to a minimum. Only in this case would the country be able to wage war.
German economic development
But it should be noted that some industries were superficially influenced by state-monopoly capitalism. So, under the control of the monopolies, such spheres as financial, transport, raw materials supply, foreign trade, labor, food supply of the population fell.
The monopolies focused on the distribution of raw materials and food products. The reasons why the economy began to grow faster:
- A single domestic market has formed.
- Two areas joined - Lorraine and Alsace.
- France issued considerable indemnities (or rather, 5 billion francs).
- Modesty, a sense of duty, respect for work, moderation - these are the main features of the "Prussian style". It was they who characterized German society and the state.
- The positive experience of advanced countries was used.
- Militarization (preparation for war).
Military orders were very expensive. All raw materials and scarce materials were distributed among several bourgeois groups.
United Kingdom
The state apparatus of England began to intervene in the economy much later than in Germany. At the very beginning of World War I, the government for the most part was a supporter of the state’s non-interference in the economy. But the difficulties that arose regarding the import and export of goods, along with a decrease in fuel production and a significant increase in the needs of the troops, forced the government to influence foreign trade, production, circulation of goods and their consumption.
In short, state-monopoly capitalism in England was very different from that which prevailed in Germany. Military-economic control had a different form of communication between the state and industry. There were no complex institutes of state representatives in industrial bodies. This is the main difference from the German device. Supervisory committees were bodies from the bourgeoisie, and they maintained ties between industry and state structures.
Tasks of the “regulator” of the military industry
Since 1915, the Ministry of Army Supply has been the “regulator” of the military industry. His tasks included:
- Liaising with industrialists.
- Separation of military orders.
- Monitoring the execution of military orders.
The Minister of Army Supply (according to the law issued on January 27, 1916) had the right to personally proclaim absolutely any enterprise involved in the supply of military personnel under the control of the government.
And these are the following enterprises:
- Engaged in the repair (construction) of buildings for the military or naval departments.
- Enterprises engaged in equipping factories.
- Enterprises involved in the repair and equipping of ports and docks.
- Power plants.
- Factories manufacturing fire fighting equipment.
France
Signs of state-monopoly capitalism could be observed in France. That's just the development took place spontaneously, there was no previously thought-out program of events in France. This is the main difference from states such as Germany and the United Kingdom. This is not to say that the state climbed into economic life as hard as it was in Germany. Nevertheless, regulation was applied due to lack of food, metals, fuel and labor.
Organizations took defense industry plants as well as enterprises procuring raw materials under regulation. In France, all imports of scarce goods were completely monopolized. But let's talk about the pros and cons of state-monopoly capitalism. Among the pros, one can single out the fact that in some sectors the monopoly is more effective, there are more incentives and means for the development of industry.
But there are also disadvantages - the resources of society are misallocated, income inequality among the population is very noticeably increasing. In addition, the possibility of inhibition and stagnation of scientific and technological progress is increasing. The increased control over the economy caused the growth of the state apparatus. There were many more officials in France, as well as in Germany and Great Britain.
Monopolies in Russia
And now it's time to talk in more detail about Russia. Yes, during the First World War, state-monopoly capitalism began to develop in our country. Lenin interrupted this development by making an unprecedented revolution. If all over the world the working class was oppressed and enslaved, then in Russia it was able to conquer the entire state apparatus.
In the pre-war era, imperialism in Russia was not very strong, in contrast to the dominant in England or Germany. But the prerequisites of monopoly capitalism in state-monopoly were, and the obvious. The concentration of production capacities along with the centralization of capital, as well as the formation of industrial and banking monopolies, caused the state apparatus to become subordinate to monopolies.
Transition to state monopolies
For the transition to the European type of Russia, there were not enough political prerequisites. At that time there was an autocracy that did not transform into a monarchy of the bourgeois type (as it was in England or Germany). Therefore, state-monopoly capitalism in Russia was very different from Western European.
The landowners were of great importance to the economy, as they held all power in their hands. The bourgeoisie exerted a much lesser influence; in fact, it was removed from power. Lenin argued that in tsarist Russia there was a predominance of military and feudal imperialism. He also drew attention to the fact that the monopoly of autocracy and military force partially replenishes (and sometimes replaces) the monopoly of financial capital.
World War I allowed Russia to create an environment that turned out to be favorable for raising large capital. But due to the fact that the bourgeois elements were weak, capitalism could not reach the level to which it reached in Europe.
The government under the tsar fought against devastation, tried to provide all the needs of the troops, regulating the country's economy in a bureaucratic way. This gradually (but inevitably) brought the state and monopolists closer together.
But the problem is that all the events were spontaneous (as in France). They were scattered and chaotic in nature, so they could not improve the economic life of the country. Moreover, economic devastation only increased in scale.
Great October Revolution
It is worth noting that state-monopoly capitalism in our time is developed quite strongly. But still not like in Europe or the USA. And the reason for this is the coming to power of the working people. Until 1915, in Russia, the government had very little influence on the country's economy. The exception can be called rather unsuccessful attempts to assess the cost of food and conduct public procurement of certain groups of products. As a result, by the end of 1917 the general state of the national economy could be called deplorable.
V. I. Lenin was able to uncover the causes of economic devastation and show the way out of the crisis. It was this man in his writings who described the path to be followed in order to prevent the death of the Empire. And the path was simple - the workers and peasants conquer power and together move towards socialism. And what came of it - only the lazy does not know. The indestructible union collapsed, Russia turned towards capitalism. And who knows if this direction will turn out to be erroneous after 70 years?
In the fall of 1917, the working class of Russia won power in the country. The leader of the uprising was the Bolshevik party, and it was in her hands that power passed. It is with the October Revolution that we can begin the countdown of a new time - the era of the development of socialism. Russia lost the First World War; millions of lives and destinies were broken. But the war would still go on, blood would pour. It was the revolution that made it possible to stop the first imperialist war.