Author: John Bellamy Foster

  • The Financialization of Capitalism

    The Financialization of Capitalism

    The Financialization of Capitalism“, Monthly Review, vol. 58, no. 11 (April 2007), pp. 1-12. DOI: 10.14452/MR-058-11-2007-04_1

    Changes in capitalism over the last three decades have been commonly characterized using a trio of terms: neoliberalism, globalization, and financialization. Although a lot has been written on the first two of these, much less attention has been given to the third. Yet, financialization is now increasingly seen as the dominant force in this triad. The financialization of capitalism-the shift in gravity of economic activity from production (and even from much of the growing service sector) to finance—is thus one of the key issues of our time. More than any other phenomenon it raises the question: has capitalism entered a new stage?

    Translations:
    • Chinese Translations by Wang Nianyong and Chen Jiali Foreign Theoretical Trends (China), no. 7 (2007) and Wu Wei, Marxism and Reality (2008).
    • Translated in Monthly Review, Turkish edition, August 2007.
    • Spanish translation in Monthly Review, Selecciones en Castellano, no. 8 (March 2008).
    • Bangla translation in Bangla Monthly Review, no. 4 (September-November, 2007). Translated by Arindam Bandopaddhay.

     

  • The Ecology of Destruction

    The Ecology of Destruction

    The Ecology of Destruction“, Monthly Review vol. 58, no. 9 (February 2007), pp.1-14. DOI: 10.14452/MR-058-09-2007-02_1

    I would like to begin my analysis of what I am calling here “the ecology of destruction” by referring to Gillo Pontecorvo’s 1969 film Burn!. Pontecorvo’s epic film can be seen as a political and ecological allegory intended for our time. It is set in the early nineteenth century on an imaginary Caribbean island called “Burn.” Burn is a Portuguese slave colony with a sugar production monoculture dependent on the export of sugar as a cash crop to the world economy. In the opening scene we are informed that the island got its name from the fact that the only way that the original Portuguese colonizers were able to vanquish the indigenous population was by setting fire to the entire island and killing everyone on it, after which slaves were imported from Africa to cut the newly planted sugar cane.

    Reprints:
    • Reprinted and published in Norwegian in Torstein Dahle (and to artikler av John Bellamy Foster, Ødeleggelsens Økonomi (Tidsskrifter Rødt!, 2008), 100-16.
    Translations:
    • Chinese translation by Dong Jinyu, Foreign Theoretical Trends (China), no. 6, 2008, and translated separately by Liang Yongqiant, Internet Fortune (China), no. 4, 2009.
    • Persian translation in Paul M. Sweezy, et. al., Capitalism and the Environment (Tehran: Digar Publishing House, 2008.
    • French translation in La Brèche-Carré Rouge, December 2007-January February 2008, pp. 46-53.
    • German translation in Perspectiven: Magazin Für Linke Tehoerie Und Praxis, 2007, no. 2 (Vienna);
    • Portuguese translation in O Comuneiro, no. 4, 2007, www.ocomuneiro.com.
    • Norwegian translation in Rødt–special edition in Norwegian daily Klassekampen (Class Struggle), June 2007.
    • Translated in Monthly Review, Turkish edition, 2007.
    • Korean translation October 15, 2009, at http://programto.net/wordpress/.
    • Bangla translation in Bangla Monthly Review, no. 3 (June 2007). Translated by Tushar Chakrabarty.

     

  • ‘No Radical Change in the Model’

    ‘No Radical Change in the Model’

    No Radical Change in the Model“, foreword to “Brazil Under Lula: An MR Survey,” Monthly Review, vol. 58, no. 9 (February 2007), pp. 15-16. DOI: 10.14452/MR-058-09-2007-02_2

    In the 2006 presidential election campaign in Brazil, President Luiz Inácio Lula da Silva (known as Lula), leader of the Partido dos Trabalhadores (PT or Workers’ Party), was interviewed at length on July 11, 2006, by the Financial Times (which also interviewed Lula’s main rightist challenger Geraldo Alckmin). The interview touched on many topics but mainly concentrated on Lula’s adherence in his first term of office to the global neoliberal policies of monopoly-finance capital, particularly repayment of debt and “fiscal responsibility.” At two points in the interview the Financial Times bluntly asked whether Lula was looking toward a “radical change in the model,” i.e., whether he and his Workers’ Party intended to break with financial capital and neoliberalism in his second term of office. Lula gave them the answer they wanted: “There is no radical change in the model….What we need now, in economics and in politics, is to strengthen Brazil’s internal and external security.”

     

  • No Radical Change in the Model

    “’No Radical Change in the Model,’” foreword to “Brazil Under Lula: An MR Survey,Monthly Review, vol. 58, no. 9 (February 2007), pp. 15-16.

    Foreword

    In the 2006 presidential election campaign in Brazil, President Luiz Inácio Lula da Silva (known as Lula), leader of the Partido dos Trabalhadores (PT or Workers’ Party), was interviewed at length on July 11, 2006, by the Financial Times (which also interviewed Lula’s main rightist challenger Geraldo Alckmin). The interview touched on many topics but mainly concentrated on Lula’s adherence in his first term of office to the global neoliberal policies of monopoly-finance capital, particularly repayment of debt and “fiscal responsibility.” At two points in the interview the Financial Times bluntly asked whether Lula was looking toward a “radical change in the model,” i.e., whether he and his Workers’ Party intended to break with financial capital and neoliberalism in his second term of office. Lula gave them the answer they wanted: “There is no radical change in the model….What we need now, in economics and in politics, is to strengthen Brazil’s internal and external security.”y

    Lula’s attempt here to reassure the financial community marks the dramatic shift that the Workers’ Party of Brazil has undergone over the years, and especially since winning the presidency in 2002. Although Lula was reelected in October 2006 with 60 percent of the vote, it was not simply as a candidate with a populist base, but one who was also broadly acceptable to global financial capital.

    The PT arose in 1979 in the wake of a massive labor revolt by millions of industrial workers in the years 1978 and 1979. It was during this period of labor unrest that Lula—then president of the Metalworkers’ Union of São Bernardo do Campo and Diadema on the outskirts of São Paulo, Brazil’s most industrialized city—emerged as the new movement’s most charismatic leader, openly defying the military government. By 1989, when Brazil held its first free, democratic, presidential elections since 1960, the Workers’ Party had become such a mass, popular force that Lula came close to winning the presidency, losing in the end to his conservative opponent, Fernando Collor de Mello.

    At the time of that defeat MR editors Harry Magdoff and Paul Sweezy (“Notes from the Editors,” February 1990) observed that Lula’s and the PT’s strengths lay in “stressing the need for land reform, suspension of payment on Brazil’s enormous foreign debt, and above all redistribution of income and wealth.”

    Lula ran subsequently as the PT candidate in the 1994 and 1998 elections but was defeated both times by Fernando Henrique Cardoso, who as a former Brazilian finance minister and then as president played a leading role in the introduction of a monetary stabilization plan for the Brazilian currency (the real) in line with IMF requirements, marking the triumph of neoliberal policy in Brazil.

    In 2002 Lula ran again. But this time the PT under his leadership indicated a greater willingness to accept the conditions imposed by neoliberalism, including full repayment of Brazil’s debt. Taking care of economic “fundamentals” was to be prioritized even at the expense of the PT’s broader social program. On that occasion his election campaign was successful. Lula’s first term consequently was characterized by its adherence to the main neoliberal agenda, including very stringent economic programs aimed at debt repayment and “fiscal responsibility.” This was coupled with a much less ambitious program than originally conceived on behalf of the poor. While passing out some benefits to its constituents the PT has also promoted neoliberal structural reforms that directly undermine the overall position of workers. This has then constituted a kind of Latin American social-democratic “third way” strategy in which neoliberal ends are hegemonic.

    Realizing the importance and complexity of the Brazilian political economy, its centrality to struggles throughout Latin America, and the general lack of an in-depth understanding of its key features outside of Latin America itself, MR last year solicited a group of articles by authors associated with the radical economic association, Sociedade Brasileira de Economia Política (SEP). The SEP publishes its own quarterly journal Revista, and we were able to obtain the help of members of the editorial board of that journal—principally the assistance of Rosa Maria Marques and Paulo Nakatani, who brought the various pieces together—but also the support of Leda Maria Paulani. The following special MR survey, consisting of four articles written last spring together with a more recent introduction commenting on the October 2006 presidential election, is the result.

     

  • The Dialectics of Nature and Marxist Ecology

    “The Dialectics of Nature and Marxist Ecology,” in Bertell Ollman and Tony Smith ed., Dialectics for a New Century (London: Palgrave, 2007), pp. 50-82.

    For ‘Western Marxism’ — a term introduced by Maurice Merleau-Ponty in 1955 in his Adventures of the Dialectic (1973) to describe the philosophical tendency stemming from Georg Lukács’ History and Class Consciousness (1971; originally published in 1923) — no concept internal to Marxism has been more antithetical to the genuine development of historical materialism than the ‘dialectics of nature’. Commonly attributed to Engels rather than Marx, this concept is often seen as thedifferentia specifica that beginning in the 1920s separated the official Marxism of the Soviet Union from Western Marxism. Yet, as Lukács, who played the leading role in questioning the concept of the dialectic of nature, was later to admit, Western Marxism’s rejection of it struck at the very heart of the classical Marxist ontology — that of Marx no less than Engels.

  • “Foreword” to István Mészáros

    “Foreword” to István Mészáros, O Desafio E O Fardo Do Temp Histórico: O Socialismo No Século XX! [The Challenge and Burden of Historical Time] (Portuguese edition, Boitempo Editorial, Sao Paulo, Brazil, 2007), pp. 13-18.

    Translation(s):
    • English version of foreword in English edition of book, (New York: Monthly Review Press, 2008).
    • Portuguese language version also printed in Le Monde Diplomatique—Brazilian edition, November 2007.
    • Included in Spanish edition: El Desafio y la Carga del Tiempo Histórico.
  • Monopoly-Finance Capital

    Monopoly-Finance Capital

    Monopoly-Finance Capital“, Monthly Review, vol. 58, no. 7 (December 2006), pp. 1-14. DOI: 10.14452/MR-058-07-2006-11_1

    The year now ending marks the fortieth anniversary of Paul Baran and Paul Sweezy’s classic work, Monopoly Capital: An Essay on the American Economic and Social Order (Monthly Review Press, 1966). Compared to mainstream economic works of the early to mid-1960s (the most popular and influential of which were John Kenneth Galbraith’s New Industrial State and Milton Friedman’s Capitalism and Freedom), Monopoly Capital stood out not simply in its radicalism but also in its historical specificity. What Baran and Sweezy sought to explain was not capitalism as such, the fundamental account of which was to be found in Marx’s Capital, but rather a particular stage of capitalist development. Their stated goal was nothing less than to provide a brief “essay-sketch” of the monopoly stage of capitalism by examining the interaction of its basic economic tendencies, narrowly conceived, with the historical, political, and social forces that helped to shape and support them.

    Translations:
    • Chinese translation by Research Center on Marxism, Yunnan Normal University, Foreign Theoretical Trends (China), no. 3, 2007.
    • Turkish translation in http://www.sendika.org, October 16, 2008.
    • Arabic translation by Thamer Al-Saffar in Civilized Dialogue 1925, May 24, 2007, http://www.ahewar.org/debat/show.art.asp?aid=97582

     

  • The Optimism of the Heart

    The Optimism of the Heart

    The Optimism of the Heart“, (memorial to Harry Magdoff), Monthly Review, vol. 58, no. 5 (October 2006), pp. 10-26. DOI: 10.14452/MR-058-05-2006-09_2

    The following intellectual biography of Harry Magdoff is a slightly revised and expanded version of a piece that was posted on MRzine a few days after Harry’s death on January 1, 2006. It evolved out of an earlier biography I wrote for the Biographical Dictionary of Dissenting Economists in 2000. Since the aim of this biography was to present the basic facts of Harry’s intellectual career, personal feelings and observations were largely excluded. A brief word on Harry’s character and the warm emotions he engendered within those who knew him therefore seems essential here.

    Online draft, placed on www.monthlyreview.org

    Translations:
    • Translated in Monthly Review, Turkish edition, no. 2 (2006), pp. 9-22.
    • Bangla translation included in in the Rank of the Wretched: A collection of Short Biographies of Albert Einstein, Paul M. Sweezy, and Harry Magdoff. Dhaka, Bangladesh: Shrabon Prokashoni, 2006.
    • Chinese translation by Shoutao Sun in Foreign Theory Dynamics, 3 (2006).

     

  • The Environmental Conditions of the Working Class: An Introduction to Selections from Fredrick Engles’ The Condition of the Working Class in England in 1844

    The Environmental Conditions of the Working Class: An Introduction to Selections from Frederick Engels’ The Condition of the Working Class in England in 1844,” (coauthored with Brett Clark, Clark listed first), Organization & Environment, vol. 19, no. 3 (September 2006), pp. 375-88. DOI10.1177/1086026606292483

    Both urban sociology in general and urban environmental justice studies began with Frederick Engels’s seminal work “The Condition of the Working Class in England in 1844“. Engels provided a walking tour of the environmental conditions in the manufacturing establishments and slums of the factory towns of England, together with a similar view of London. He addressed conditions of widespread pollution and helped lay the grounds for the development of social epidemiology. He connected this to his “Outlines of a Critique of Political Economy” that influenced his even more famous collaborator Karl Marx. For Engels, “The Condition of the Working Class in England in 1844″ was to be the first of a series of connected analyses of ecology that stretched through more than half a century and included “The Housing Question” and Dialectics of Nature,” making him one of the most important but underappreciated contributors to the development of environmental thought.

  • Aspects of Class in the United States

    Aspects of Class in the United States

    Aspects of Class in the United States: An Introduction“, Monthly Review, vol. 58, no. 3 (July-August 2006), pp. 1-5. DOI: 10.14452/MR-058-03-2006-07_1

    If class war is continual in capitalist society, there is no doubt that in recent decades in the United States it has taken a much more virulent form. In a speech delivered at New York University in 2004 Bill Moyers pointed out that the effects of this relentless offensive by the vested interests against the rest of the society are increasingly evident. In 2005 the New York Times and the Wall Street Journal each published a series of articles focusing on class in the United States.

    Reprints:
    • Reprinted in Michael Yates, ed., More Unequal: Aspects of Class in the United States (New York: Monthly Review Press, 2007), pp. 15-18.
    Translations:
    • Translated in Monthly Review, Turkish edition, no. 9 (Istanbul: Kalkedon, 2006).