Home ›› 09 Apr 2023 ›› Opinion
In the Open Veins of Latin America Eduardo Galeano described an 1870 genocidal war of regime change waged on Paraguay by a Triple Alliance of its neighbors, Argentina, Uruguay, and Brazil, on behalf of British imperialism. The target, nationalist president Solano Lopez, died in battle. The country lost 56,000 square miles of territory. Paraguay’s population was reduced by 83.3 percent. By the end, Galeano wrote: “Brazil had performed the role the British had assigned it.” Before the intervention, “Paraguay had telegraphs, a railroad, and numerous factories manufacturing construction materials, textiles, linens, ponchos, paper and ink, crockery, and gunpowder… the Ibycui foundry made guns, mortars, and ammunition of all calibers… the steel industry… belonged to the state. The country had a merchant fleet… the state virtually monopolized foreign trade; it supplied yerba mate and tobacco to the southern part of the continent and exported valuable woods to Europe… With a strong and stable currency, Paraguay was wealthy enough to carry out great public works without recourse to foreign capital… Irrigation works, dams and canals, and new bridges and roads substantially helped to raise agricultural production. The native tradition of two crops a year, abandoned by the conquistadors, was revived.” After the war: “it was not only the population and great chunks of territory that disappeared, but customs tariffs, foundries, rivers closed to free trade, and economic independence… Everything was looted and everything was sold: lands and forests, mines, yerba mate farms, school buildings.”
Summarizing all this, Galeano wrote: “Paraguay has the double burden of imperialism and subimperialism.”
“Subimperialism,” Galeano continued, “has a thousand faces.” Paraguayan soldiers joined an intervention against the Dominican Republic in 1965, under the command of a Brazilian general, Panasco Alvim. Paraguay “gave Brazil an oil concession on its territory, but the fuel distribution and petrochemical business [was] in U.S. hands.” The U.S. also controlled the university, the army, and the black market as well, of which Galeano wrote: “Through open contraband channels, Brazilian industrial products invade the Paraguayan market, but the Sao Paulo factories that produce them have belonged to U.S. corporations since the denationalizing avalanche of recent years.”
Elaborating on Brazil’s sub-imperial function since 1964, Galeano wrote: “A very influential military clique pictures the country as the great administrator of U.S. interests in the region, and calls on Brazil to become the same sort of boss over the south as the [U.S.] is over Brazil itself.”
Ruy Mauro Marini Analyzes the Phenomenon
It is perhaps no coincidence that the leading scholarly authority on sub-imperialism is the Brazilian scholar Ruy Mauro Marini. Mauro’s 1977 article was published shortly after Galeano’s book. To understand “global capitalist accumulation and subimperialism” some background on the theory of imperialism set out by Lenin is in order, and more recent books like Zak Cope’s The Wealth of Some Nations and Patnaik and Patnaik’s A Theory of Imperialism teach the theory eloquently. The key concepts are unequal exchange and value transfer, magical processes through which the wealthy countries exchange smaller amounts of labor for larger amounts of labor from the poor countries. The mechanisms are many: patent regimes, Western corporate control of Global South resources, denomination of oil and other commodities in U.S. dollars, IMF and Western-bank loan terms and draconian rescue packages, Western arms sales and military training programs—all backed up by the threat of sanctions, coups, invasions, and “color revolutions,” which happen frequently enough to remind Global South governments to stay in line. In Imperialism, Lenin described the pressure on wealthy countries to “go imperialist:” winners in the Western domestic market invariably consolidate and tend towards monopoly; these winners are invariably coordinated increasingly through banks and financial interests; throwing new investments in to a mature market brings lower returns than they can get in newly opened ones, so the financiers seek colonies to get high returns on their growing piles of capital; the colonies also address their interests in labor and raw materials that are cheap (or ideally, free, through theft).
Mauro shows how this dynamic can lead to sub-imperialism if the context is right. Sub-imperialism, he writes, is “the form assumed by the dependent economy when it reaches the stage of monopoly and finance capital,” and it has two basic components.
The first is a “relatively autonomous” expansionist policy that functions under the overall umbrella of U.S. hegemony.
The second is what Mauro calls a “medium” organic composition of capital. To explain this concept an example comparison will suffice: an economy with a high organic composition of capital is one where workers use advanced, costly machinery that itself required a lot of labor to produce (the word “composition” refers to how much so-called “dead labor” went into the machines on which the “living labor” is now laboring). These are the workers in the vacuum labs making nanometre-precise computing chips. An economy with a low organic composition of capital is one where workers labor with their hands or simple tools, cutting sugar cane with machetes as day laborers. Their work is called “unskilled” and their wages are proportionately lower.
In 1977, Mauro argued that in Latin America, only Brazil had both the medium organic composition and the relatively autonomous expansionist policy. But what about today? And what about in other regions?
Generalizing the Concept
Are there sub-imperialists in South Asia? Pakistan exercises its ambitions in Afghanistan under U.S. hegemony. Imran Khan was overthrown in a coup for withdrawing support for the U.S. occupation of Afghanistan; his successors have worked hard to prove their subordination to the hegemon. India meddles in the affairs of its small neighbors like Bhutan and does so under U.S. hegemony; Western corporations certainly have an immense footprint in both India and Pakistan.
In the Middle East, Saudi Arabia and Turkey qualify as sub-imperialists though both showcase how each sub-imperialist is a special case. In Africa, South Africa has been analyzed as a sub-imperialist and tiny Rwanda could well qualify as a Central African version.
Who doesn’t fit? None of the U.S. Five Eyes partners (Australia, New Zealand, Canada, or UK) nor Japan, nor Israel, since all are high-income countries with higher than “medium” organic composition of capital.
Nor do China, Russia, or Iran fit the sub-imperialist mold. They may exercise hegemony—or contest it—in their regions, but they do not do so under the umbrella of U.S. hegemony.
This brings us back to Brazil and to the changes in the world since the writings of Mauro and Galeano on sub-imperialism.
Until very recently, unilateral U.S. hegemony was the basic fact of world affairs.
No one could contest the U.S. invasions of Grenada, Panama, Iraq, or Haiti or its destruction of Yugoslavia and Libya. But Russia and Iran did contest the U.S. plan to dismantle Syria in 2015.
Globetrotter
