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Imperialism (Ann Arbor Paperbacks)

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The word "imperialism" today has become worn from misuse. Many of us have come to expect the word to signify that the speaker is a radical Marxist, or perhaps an embittered citizen of a defunct imperial power. Unfortunate indeed, because discussion of imperialism as a type of foreign policy decision has thereby been squelched.
But in 1902, when Hobson wrote Imperialism, it was not yet a term of odium. Imperialism was a foreign policy strategy advocated as a benefit to the colonial power and to the subjugated nation alike; one advocate referred to it as "...the greatest secular agency for good known to the world," and some of the greatest minds of the day--John Stuart Mill, John Ruskin, William Gladstone, Joseph Chamberlain and Alfred Milner--were "social imperialists," partisans of a mission to bring liberal institutions to the rest of the world, and create markets for British manufactured goods. More common by far were advocates of imperialism as an alternative to redistributive socialist policies, as an outlet for surplus population (Britain was widely regarded as being overpopulated), and as a backyard for flagship companies. Hobson was addressing these arguments without acrimony, and without assuming a radical agenda his readers were unlikely to share.

The fact that self-described socialists and lassez-faire dogmatics alike, in 1902, regarded "imperialism" as a means to their rival ends, shows that this was not merely a right-left debate, and Hobson attacks the idea of solving the problems of capitalist societies by making war on other nations. His analysis of imperialism and its allure for the industrialized world makes this one of the most revealing books on 19th century history. The effects of imperialism on the rest of the human race are spelled out with precision and clarity, as is his nuanced analysis of why it is doomed to fail. Hobson's forecasts of the future of imperialism is astonishingly prescient, especially his passage on China.

Hobson was a pioneer of the underconsumptionist theories, theories later advanced by Keynes, Samuelson, and Tobin. Underconsumption presupposes that mature economies are unlikely to be be able to consume all that they produce; as a result, more capital accumulates, the marginal return on that capital declines, and stagnation sets in. But while Hobson was a seminal mind in economics, this is not an economics book--it is overwhelmingly a historical survey of ideologies, propaganda and the harsh reality, a disciplined yet creatively assembled explanation of how the needs of industrial Britain were so woefully met by imperial dogma. With the terrifying triumph of neo conservative ideology in our era, it is an extremely relevant book for contemporary citizens of America, and of the world.

When a powerful country invades another with the express intention of changing their culture or system of government, there are several things that can happen. The invasion can be military, economic or various combinations of both. In the first case, the invaded country can mount armed resistance until the invaders eventually leave. For the second case, a small percentage of the natives can adopt the ways of the invaders and become the ruling class while the majority simply continues their lives. In the third case the invaded country can assimilate the ways of the invaders into their culture, becoming a synthesis. All three cases have happened in response to the policy that we now know as imperialism.

In the century since this book was written, imperialism has become somewhat of a derogatory term, so it is avoided when describing modern actions. The strategy advocated by the American group known as neo-cons is a modified version of what the European countries did a century ago under the banner of imperialism. Their policy is that the United States invades a Middle Eastern country and imposes a local democratic government. The country then becomes a powerful role model for others in the region and they also adopt a democratic government. Once democracy becomes the norm, the countries will be transformed into modern states that are friendly to the west.

Those who adhere to that thought should have read this book first. Hobson is very non-judgmental about the motives of people who advocated imperialism, but he is not restricted in his conclusions regarding the results. When the powerful states carved up Africa and Asia between them, imperialism was touted as an effective way to change the world for the better. Many of the best minds in the west supported imperialism as an effective way to increase the standards of living of the subjugated peoples. It was also considered as a way to provide outlets for the excess population and energy of the subjugators. However, in only a few cases were the results anywhere close to what was intended. One hundred years later, Africa still foments with tribal conflicts, with democracy a hypothetical rather than a reality.

Hobson also demonstrates a great deal of insight into what the future could bring. His statement on page 313, " . . . the pressure of working-class movements in politics and industry in the West can be met by a flood of Chinese goods . . . " On page 317 he also mentions the possibility of Japan embarking on an Asian version of Manifest Destiny and adopting an imperialist policy in Asia. In some sense he predicted the rise of the Empire of Japan and the current situation with the Peoples Republic of China rising to the status of a great economic power.

Although he occasionally adopts the terminology and arrogance of European cultural supremacy over "the natives", Hobson has written a well-balanced treatise on how imperialism was viewed and justified at the time it was the global norm. His statements on the results should be required reading for policy makers and business people who are required to deal with other cultures.

John Hobson's "Imperialism" is one of those social science classics that never really ages because the fundamentals of power, class and wealth never really change. The book was written in 1902 in the wake of the Boer War, a bloody, three-year-long conflict instigated by mining companies bent on British annexation of South Africa's gold-rich Afrikaaner republics. Hobson saw the Boer War as emblematic of a wider British push to gobble up colonies in Africa and Asia in the last three decades of the 19th century. He wanted to know why.

His answer: Economics. According to Hobson, Britain's upper classes earned more income than they could realistically consume or invest. Chronically weak spending led to gluts of unsold goods and a drying up of investment opportunities. Seeking a way out of this trap, British financiers and manufacturers looked to foreign markets for salvation. However, these markets couldn't absorb Britain's excess savings (via exports and investment) unless they were under British control. Business and financial interests thus organized and led an Imperialist lobby supported by military officers, colonial civil servants, missionaries, arms manufacturers, and the jingo press. Imperialism was engineered by elites, but the wider British public went along. Ignorant of foreign cultures, ordinary Britons thrilled to the exploits of Empire and flattered themselves that they were in the vanguard of humanity. As always, the stupid enabled the greedy.

Hobson was not an economic determinist or a revolutionary. He argued that higher levels of public spending and a more egalitarian distribution of income would keep domestic demand in line with supply, thus neutralizing the need for imperial expansion. And as readers will discover, "Imperialism" is much more than a tract on international politics and economics. It covers an amazing range of topics, from the psychology (and hypocrisy) of late-Victorian imperialism to the structuring of "native" labor policies that would support colonial plantations and mines. It illuminates every subject it treats. In one startling passage, Hobson even foresaw a world where China has developed a powerful manufacturing sector by combining Western investment with indigenous cheap labor. He wrote: "It is at least conceivable that China might so turn the tables upon the Western industrial nations, and...flood their markets with her cheaper manufactures, and refusing their imports in exchange might take her payment in liens upon their capital, reversing the earlier process of investment until she gradually obtained financial control over her quondam patrons and civilizers." And this was written in 1902!

"Imperialism" isn't perfect. In particular, it advances a theory of imperialism but doesn't subject the theory to detailed empirical confirmation by examining particular episodes of annexation. But while imperfect, "Imperialism" is a great book. Six stars.

Shouldn't we forget, however, that Hobson's book was used by Lenine and later by Staline to develop their anti-imperialism and antisemitic theories. At the best of my knowledge, the Lenine-Staline-and-beyond propaganda and policy are not the best examples to follow. Potential readers of this book should be aware of this. For more details, please consult part 7 of Paul Johnson's book "A history of the Jews".