658 Accumulation on a World Seale = Polak, JJ. “BalanceoF-Payments Problems of Countries Reeoamaaay ing wth he Hep of ore Los Qty Joa af ie An Internationa Economic Syten. London, 1954 Polak, J. Ju and Chang, T, “Effects of Exchange Depreciation? Staff Papers, February 1950 ae Porter, R.S. “Buffer Stocks and Econ | nie Stability.” Oxfond Hage omic Papers, January 1950, : Poulantaas, N.Poucoi politique et classes sociles. Pats, 1958, j Pradel, "Loptimum dinvesisement.” Reoue d'économie poli | 0.3, 1933, j eobrazhensky, E.A. The New Economics. 1926 English ely Nam York, 1965. ret, ALR, lar Economice of Primary Producing Countrice Came Prokopovce, §.N. Lindustriaisation des pays apricoles et lsat row. Origins et form stu malhiplicaenr die rt. Thesis, Pris, 1948 Raj, The Monetary System of Egypt London, 1935. 1s récentes de a theo Ranger, T.O., od, Aspects of Central African History. Rvanstom ily Rao, “Deficit Financing, Capital Formation and Price Beau i A Underdeveloped.Eeonomy.” Indigm Economic Review, ReDMaA 1955, : < all Employment and. Economie Development." Indian BEDE Raslin, H. La dynamiga he Multiplier im Undenteveloped Ee Indian Economic Review, February 1952, miguesagaires ew Afrique opie Techniques et bases soci-économiques dex socités rane Reynolds, LG isty and Inds Rind, 1. L Egypte nesserinne. Pate, 1968 Richa, R, La cilation aw cerefoxr, Pati, 1969. 4 Ricfer, W. W.""A Proposal for an Intemational Buffer Stock AES “Journal of Polite! Economy, December 1946, Rippy. JF oom’ of the 18605 i Lat Aniercin Mines. Airs, March 1948 ve ei ala Bibliography 639 onnaie depuis , Hitoire des doctrines relative au cbt et Fob Laws jusgu' nos fs ats, 1938 ‘auelguee détinitions de Vépargne.” Revue d'éeonomie po gue, 1921 Guest-ce que le monnaie? Pais, 1920. sting Kauy dathe Nature end Significance of Economic Seine robertson, D. H. Money. Cambridge, England, 1947 1940. The Classification of Inventions. obinaod, J Studies, 1957-1938 aia The Economic of Imperfect Competition. Londo, 1933 an Eiay on Maraian Ecomomict. 24 e, New York, 1966. of Employment. London, 1937, a Bachege." i Esays nthe Theory of Employ ee oP nerasation of the General Thea." In The Rat it and Otter Essay. London, 1952. ‘putt Compection ani Falling Supply Pri.” Eeonomi fourm. 1932 nc the Economics of Techical Progres.” In Tbe Rat nterest nd Otter Essays op- i cms of Social Oppresion on Joey, W,"Atiean Savery and Other ys Caines Const in the Context ofthe Antic Sve Trade ne Dependent onan: New Zend and Cg edueon, obi 20 Dimrbwtion Ba Seay the United States 1938-9." Bonomi Jour on Pe. The Suge of Economic Growth, 24 cl, New York atoning Adapavon inthe Goll Coast: A Critique ofthe rao ir Cecil Trevor, CLE.” South Afrcen Jour of ‘Banking 68 Nie wengewana. | 660 Accumulation on a World Scale eRe Monetary Pocy and Social Confit i does. Behe acs Nevionale del Lavoro Quarterly Review, JulySeptembge | "tI 0.01 ae Fae Ee W. “Aspects of the Problem of Full Employment in 7 cthe Nate Baking Boom in Nigeria.” The Banker, Oabgy | *umAnN CGN, ha url of Economics, June 1988 51 raf Economie Deveopment. 1934 Rowthorn, R. “Capitalism Since che War Duplicated Tiburg Gage | “ ares decal ree SERBS) ee onic ne ae ae Deo wat cd onthe edo opt endec. Thelin was Uv an abo nee wee endow Poison ead in ers Pode he ener wil mie wear tue we Nee ta eed metals and certain Toxary gods. Alter a pore of pundergt’! ®Parcuar way (oll sad ron oe Tor eaneh nents tol En ec Sry eee tty tk MM ect ot ee, 1 an extnorinay sanding of bamansocuce cals tier pedus arxc and Geng bee ee the rota of ach. Ath a on ag Se Ce. Pree wad eae went mode of production wat introduced to faite productions ai .S™INES export of aprcuaral products, Gradually around thes areas of development for the belt ofthe cl tera ccpng Tote betwcen the center and the periphery tain of livestock, for example, provided fod forthe mg Sows na i he center Danaton aes. The "wanglar ade” that began with he th RSC RBTSE a hers had been practically no export of capital. The2 Recpentton se Work Seale sal Specialaton and the Flow of Capital 43 formation of monopolies was henceforth to make isp sxmonplce in characte, need to Be disguah beeomeeet ona uncar of ele Here ler facts ata” auie commonniae cara, se be seattant between focg invenmens inh periphery andl wih she nao erations] amon rasuons, Without Camda et ume of he “cn” ype (he Unellisig, 1 ink would be wea Koy Rl om he a Nether macs NMEA. om ea Sale ean, ee ewe of pec Tie Sem of capil id nor replete expor of gagmanmpion haa connec with em on ts oa he contrary, it timated ite made posible changes in op ene: the same in agriculture asin industry—progress has i. : mi ch area highs levels than others (3) eat, shag the Pec ade ofthe piper di not worsen unt abot 1880, after ey Siren, Dts vega expr rom ional low ake up more than 40 percent of the exports of the pop” esd than prodaced vp adc ip Seu - eCPM cig agate ad hoe p ih high ates of productivity, in mining oil and agriculture finaly (3) cat the evel of wage (in the captalitsetor, of 5) ot the sue inthe periphery a8 a the center-and tha this mee sigalcaly appeared folowing the waston of eaptliam enter rom the compet othe monopoly phase cory of mernainal relations must embrace all ee facts and mens The current theory of comparative advantages doesnot Jes co do this at aon the comtay, the sclntte elements a few manufactured articles of importance chiefly for Peripheral countries a different levels of industiaastion) More than 15 percent. Agricultural products-eapcraly (Gworthirds of the tou), but also industrial aw ater fotton, rubber, etc, which make up the remaining thd ‘most 40 pereent of the exports of the ‘Third Word of ro ‘hemselves no longer supplied by tratona agrcultune: sr onpenits come from modern capitalist plantations sellin Ricardo hare bees lon in te ogee, pseudortheory per carted Fruit Tas, hee quarters of the exall poultry allows se 6 make Se esiphery come from highly productive modern sectors wh txpresion of capitalist development inthe periphery, tos the direct result of investment of capital by the conten, cons that confit with the facts) and thus to become a mere spre that refuses to take acount ofthe facts and this degeners: sue to its function as an apologetic ideology of univer har specazation in the periphery is anymmetecal, which Giles lowly linked wih ne cee oe ee eiphe dos ney 80 percent oft ade wth the ceel@SO4 Mart ary of momen eeetae nono cy th veal changes he cer hve developed ata hen faMD™ Pons gen ry panane ephan Gn hoean ee ee Sa S0 percent ofthe foreign trade ofthe central counties "S008 inthe penalise pera, made by Lente and coed Steen: ameter. These internal exchanges within the cals, YY. Ben and Sweery, and ()clements of = ak of com indus products for industrial pale" ll © be completed on npece chen woe ken om contemporary Mars, notably Emmanuel and Pll. Periphery. We shall also have to consider renee tendeneee, of capta especially from the United States to Europe) sal ‘pment of public aid (fom the advanced countries vo ne ta bbeenuse the functions of thee rclitions vary, depending on {4 matter of internal relations at the center of of ehsvons enter and periphery he TEsition andthe Flow of Capital 45 44 Accumalation on a Word Seale ali THE THEORY OF INTERNATIONAL EXCHANG ere moment, te dita ores The Classical (Ricardian) Theory The “elasical” theory of international economic relation 'y a theory of international trade in commodities "It lim the interest of each ofthe partners in an exchange to specail this will aise the Level of total income, in terms of use wa J tabor Contained in Unit Product Quantves of tab countries. This theory belongs toa definite context, that of Relative advantage ist mode of production, as we shall seein the assumption held by England about wages. In Portgal over Portal For the British clascal economists, labor & the source of oo Intctest, profit, and reat are, for them, not ireducble gu 120 hours 150 only diferent forms of what Marx was to reveal a “sup 100 hours nan that ithe share of the value of the products of labor whi etuan tothe workers but goes o the owner ofthe land and ‘money, capital. This is why Ricardo sees the exchange of Mg doth v.89 ofwine = 1.200f wine amounts of labor erystalized in two products with difering the sphere of external exchange the commodities exchange ‘unequal quantities of labor, reflecting uneven levels of prod To take Ricard’s wellknown example, Portugal has tages than England forthe production of both wine (in whic of labor sufie to produce a unit ofthis commodity, x gall England) and cloth (in which 90 hours of labor proce ji what 100 hours produce in England). But it has compara advantages for producing wine than for producing cloth since es suppose that Portugal agrees to specialize in wine, and obtains th from England. ifthe total available labor power in Portugal 510 1,000 hours and the consumption of wine remains fixed at Fs then Portugal wll devo $00 hour labor to producing wine ‘wn consumption. 1¢ will ths have 500 hours which ican Sith to produce its own cloth (500:120 = 42 units) orto is $ extra units of wine with which to obtain $ nits of cloth 08 of unit of cloth through the exchange. Bu, although thas J tse values, i wll have putin 500 hours in order to obtain $ ee of sloth which England has produced in 400 hours. ts own Por 100 > 3120 ons hour of lbor is exchanged for 08 of an English hou: 28 rasta0e®- The inequality of the exchange, in tems of ex tes therefor co Porcgas intrest co specialize inthe Sell 6 lcs she lower productivity of bee a Fong ‘o lines of production and get is cloth from England, ex say the inequality in poductivty of labor snot natural Producing this cloth at home would cost Portugal less than HM ctotSHh the comparative advunage cote aioe me tee 2trolee tems, The aseton hat inpors in be advanagau MF Mbt prope Poe woe oy ane of use values even if he product imported could be made sty of England inal ldo produce cloth 80 cheaply forms the main cotibeton made by Ric, a6 lag. 8 90-ic worth is whie ey cgpeets ne wrth Adan Sith? ano wine in 450 hours and will dispose of $50 We must not make this theory say more than it docs he hase org46° Accumulation on a Word Scale tonal specialization and the Flow of Capital $7 iis and several counties, this hasbeen intro ny effect-on the general frame of hours with which to produce 6.9 units of cloth (350.80) exchange will oceur, since costs are identical in both Portugal will have gained, in comparison with the prev 69-5 = 19 ofa unit of cloth MM Portugal now agrees to specialize in wine, and foes to catching up with England in this fd, whae Henceforth it must devote 450 hours to prodcing $ ung 'ts own consumption (5 x 90); it has $50 hour at us ‘subsequently without @ Ss ‘the fact that those enterprises which engage in trade. —" directly aware, not of the relative cost co iglnpleatereee ter eS ea ay eee continued to be higher than unity (1 of theoretical ela ‘were produced using the country’s highest technique. nc 1.34 of wine, instead of 1.20), so that the terms of trade, remain unchanged. The choice isnot as good for Portugal Potential progress in the cloch industry (reduction of ee. £80 hours) is greater than inthe production of win hous) "tis thos more to the country’s interest to develop those Production in which the greatest progress posable, hoes, where foreign trae i concerned, to the ploy ‘of this kind of development. The trading options thus te have tobe modified at each phase of development. This a ‘azsressive conception of inteational lations, but it co te history and to the present situation, and wll not cence co in place of a world sytem of nations, we haves flyin Ist world tions (absence of transport costs, and production with ea ‘The introduction ofthese thee realities int the schema Frog mh scm tobe vtated from the stat by the assuny Presentation without, however, altering its eseatal content 2 an ae ae ee fe enc nemin wage in both eons bt te sess of proucon wich dcrening (or nein ene a I cen eae rae tear nga ne ce oe ace ene “infant industry.” at least forthe time bey." The ° ‘anspor costs that modify s relative advaneage." Astor ne pee Oa eee th RSC BTS48 Accumalation on 4 Word Seale 1 specialisation an tbe Flew of Capital 49 ‘tive advantage) why exchange should take place. Neverthel — ‘xchange docs begin, Bente old ill s como produced more chespiy nA Cold produces A uy the In, therefore rodton of gold comimues snd pode Ides inten: Wages sn rcs fal nA andr ile teri? ton of gold then sops ig profaie fn Btn te fea the ston i, which septs both coe ei tl more gold but fewer commodities, while W's production al vi te hat inceed, tough in longer produces ay gl line soumoion of te exchange of ew produc by two coun become identical inthe tw counties er ca ee Fame ein Cal cease as tn lw ng oshing exer or che mich tat both counts the sine Gig eg fsa, etl, es Ping br te ch at ah nh Spee tne ards coed et nego pte mn ssl ain someting bye thes beret rl co sad ee ee nb ssine bythe county eat ay for al is impors cnc betnen rl cont and occa ge he mi en net WY Tove mot seed she a ed of his roca eh exact pon ofthe exchange aio in the magi of = ecpelers ses = ——Siaerineeireiee Zev sone inthe same direction, This presumes thatthe WAMU oes pate sabia Te Taloving two sropsions_ Scveen subsitence gods and lxuy gods, x second call nn ee wl be brought into the schema: wages and prices wil ng MEET ened ational nome ihe Se SE Proporonste but thy wl nein conane wore Se direction figed (as mensured by the place of each of these products in is (rns mechanism explains how the advantage derived froaMlMeersajoal Tacoma)ahe bigsce advantage gained by the with another country comes in the end to the capitalists By that supplies che more important comm odity ountis concerned, their mass of profit incteshng in tela cimmstor st erie ssa ve demands be salucs. Exchange uimatly modes he sacar ins diel int Ricard soca ie eect eae wale peed able to profi, and speeds up the proces of capital accumlilen the wo nia he espe or dccomey Uy boone it Both the puter cours. Ricardos theory is ts bound alee sec ‘rom Sconce to the al Harmonies eotgy of Unive change conditions tn Riard's example 7 indeterminacy within which the exchange "yuh margin abrinks when we bringin several vanish sol products but it does no aon of the exchange of two products by two coun of the partners the results obtained would be basic tsumption that real wages are identical (and equal ME'cly oppose to thre decevbed shoves eae of oper sitence"). The advantage of specialization is that the valv@MPE Satire ofthe pstace, she ean of node Nawab oncebe co ower can be lowered in the two countries involved, and thelMRPOME® ofthe two, and in cases af dqroporiontennporence of fae of srplos valueand on that bss the rate of profc—caalMM®® Products exchanged, he roo of rade eld face the pnt This assumption males sms only because Ricardo args igMBPME the ew mort earn of ade would favor he pare: Sex of two “pure” capita systems in elton fo cch aS Dex rnr coat ee seo ea do at ue unaware of this, Deans he cannot dtingush between Me™. "He Partner andthe number ood impor oe poate Production and» social formation, and because esc in that: We narow the ss oh eet We Oe tae ie Ide f production an eter yp, hat of pure rainaly. MMO he term ow ing aera Me he find te ive demands, Bi incon of indeterminacy wat not ffeced in a Johe Stuart Mil who, by applying the quantity theoryety oR ery decled 0 vndertke a thorough analy Ipewween costs in money. ‘These costs Facioured by the ratio ‘of money, brought the element of reciprocal demand, the terms of exchange anywhere within the margin of ing [At these prices the balance of payments may, by pure d ‘quilibrium, or it may not. Inthe later case, am internat old will take place. All prices will nse in one county, Se ae aitces eames pres of ep he her cuny pic lay he er vs of term of tad wil Be modi in he decon need UM ers of tem em GEREN scuba ofthe bance of payment ec the tegen vk the se commis a cdo neds ob Rana (he theory ofthe “pie ef) 1 hall ug, tt Dol Hencorthepo8 8 ote, an ‘moreover, that if two paper currencies are assumed to 4 the principle of comparatis e ae ena iii of he balance sues an altation nthe ate lb whch Tose bts bs agunee dt he ft hat he fl heh. air te of hp ceca oe (emt fice onion of ea et eee es a ee incon) tht cnet rhe ecg ce gine de sce nes ces icing) ae rr Sng oem! ren Os ot te intense ote repo demands icone ete’) Mo snc wih i eee mpl of ea gc ot crea 9k el ede Let us suppose that instead they lie outside this margin, ora red than in Ricardo’s theory. aaielalotast eee sete eal ic ang fee merce hn i Re RES ade sity demi the nner of eds calm! OT th rf he oneen o comat rat ears thes ot he asc cnc unt meen of cena fee lane bel tmned by foes crm a rats ate ate he ete pct fe en see (bi deca labs MM a Te Sk en ea (Ceiznged andthe extre iis of thi tm of tae) A eT plenty (and so relatively cheaply) a factor tres ht ne has of payment cae PON ny od at fee ame nthe excag ere an quatinen Mn cenePutr ine o rducdon, aren rtitstiteconcrpion of value, since prices sMMmmed he natu of creat oe ‘comparative advantages. This determined by relative demands, independently of costs fonment causes the theory henceforth to beat an obviously apol- Eve ih hi astmpon heey smn a pillage anes Bw a hwy ap ‘wo partes of itn satu exctange eee ped ening: i isnot contained a prior! in objective reality (eompar Sees hey actully are, the bigs advange ll to MMUductte)Empuial serene Pe eae ea erie ate who mls fever goods and the on MMM He themes Guanten eer oe sends Hes ov rlatvey mot portant ks own econo Ma 0 “pervene’ price cece’) ce cat on seeds eocoek capital and iabor-are given,” whereas this "The postive approach." The labor theory of value was HMO 1 ely meng an OT are gen,” whee this eercttesl cconomists ws whelé after 1870. The wets DSPOTMENE I and Depress arta He arr itied ie Probe ofnteration exchange refused" endowment Deeg oe ns en ee th ant ecm cst ior Anaad so MRIS! Wi ce moda Ecce atpeties oa the levels of produetivity of the partners in an exchange ‘that market prices are not proportionate tothe amounts of RSC ing.org.52. Accumulation on a Word Scale tion ad the Flow of Capital 53 pec parative advantages sno longer useful by ange is advantageous 0 everyone! erntions Si The approach in terms of ebsiation ™ Although the Ee of value was dropped quite soon fora long eime tere