Military or Market-Driven Empire Building: 1950-2008

Axis of Logic, April 29, 2008

James Petras

Introduction

From the middle of the 19th century but especially after the Second World War, two models of empire building competed on a world scale: One predominantly based on military conquests, involving direct invasions, proxy invading armies and subsidized separatist military forces; and the other predominantly based on large-scale, long-term economic penetration via a combination of investments, loans, credits and trade in which ‘market’ power and the superiority (greater productivity) in the means of production led to the construction of a virtual empire.

Throughout the 19th to the middle of the 20th centuries, European and US empire building resorted to the military route, especially in Asia, Africa, Central America, North America and the Caribbean. By far the British and US colonized the greatest territories through military force, followed by the introduction of state directed mercantile systems, the Monroe doctrine for the US and imperial preference for the British. South America following independence became the site of the growth of market powered empire building. British and later US capital successfully captured the commanding heights of the economies, especially the agro-mining and petroleum export sectors, trade, finance and in some cases attached customs and treasury to cover debt collection. As late developing capitalist countries and emerging imperial powers (EIP), the US, Germany and Japan faced the hostility of the established European empires and limited access to strategic markets and raw materials.

Continued . . .