Africa’s contribution to European capitalism was far greater than mere monetary returns. The colonial system permitted the rapid development of technology and skills within the metropolitan sectors of imperialism. It also allowed for the elaboration of the modern organizational techniques of the capitalist firm and of imperialism as a whole. Indeed, colonialism gave capitalism an added lease of life and prolonged its existence in Western Europe, which had been the cradle of capitalism.

It is not enough that the conditions of labour are concentrated at one pole of society in the shape of capital, while at the other pole are grouped masses of men who have nothing to sell but their labour-power. Nor is it enough that they are compelled to sell themselves voluntarily. The advance of capitalist production develops a working class which by education, tradition and habit looks upon the requirements of that mode of production as self-evident natural laws. The organization of the capitalist process of production, once it is fully developed, breaks down all resistance.

Capitalism in its imperialist stage arrives at the threshold of the most complete socialization of production. In spite of themselves the capitalists are dragged, as it were, into the new social order, which marks the transition from complete free competition to complete socialization. Production becomes social, but appropriation remains private. The social means of production remain the private property of a few. The framework of formally recognized free competition remains, but the yoke of a few monopolists on the rest of the population becomes a hundred times heavier, more burdensome and intolerable.

The first four centuries of Afro-European trade in a very real sense represent the roots of African underdevelopment. Colonialism flourished rapidly from a European viewpoint, because several of its features were already rooted in Africa in the preceding period. One of the most decisive features of the colonial system was the presence of Africans serving as economic, political, and cultural agents of the European colonialists. Those agents, or “s,” were already serving European interests in the pre-colonial period. The impact of trade with Europe had reduced many African rulers to the status of middlemen for European trade; it had raised ordinary Africans to that same middleman commercial role; and it had created a new trading group of mixed blood—the children of European or Arab fathers. Those types can all be referred to as “compradors,” and they played a key role in extending European activity from the coast into the hinterland, as soon as Europeans thought of taking over political power.

Capitalism in the 19th century did not doom the worker to a life of perpetual poverty. Instead, they kept creating new and better-paying employments as the decades went by. They produced the wealth and rising income that resulted in the emergence of a phenomenon completely new to human history: a self-supporting and educated middle class that grew more and more as they lower classes bettered their economic well-being.

The class in power controls the dissemination of information. The capitalists misinformed and miseducated workers in the metropoles to the point where they became allies in colonial exploitation. In accepting to be led like sheep, European workers were perpetuating their own enslavement to the capitalists. They ceased to seek political power and contented themselves with bargaining for small wage increases, which were usually counter-balanced by increased costs of living. They ceased to be creative and allowed bourgeois cultural decadence to overtake them all. They failed to exercise any independent judgment on the great issues of war and peace, and therefore ended up by slaughtering not only colonial peoples but also themselves.

However, the peasants and workers of Europe (and eventually the inhabitants of the whole world) paid a huge price so that the capitalists could make their profits from the human labor that always lies behind the machines. That contradicts other facets of development, especially viewed from the standpoint of those who suffered and still suffer to make capitalist achievements possible. This latter group are the majority of mankind. To advance, they must overthrow capitalism; and that is why at the moment capitalism stands in the path of further human social development. To put it another way, the social (class) relations of capitalism are now outmoded, just as slave and feudal relations became outmoded in their time.

Colonialism strengthened the Western European ruling class and capitalism as a whole. Particularly in its later phases, it was evidently giving a new lease of life to a mode of production that was otherwise dying. From every viewpoint other than that of the minority class of capitalists, colonialism was a monstrous institution holding back the liberation of man.

The underlying economic logic of the colonial economy was the exploitation of natural and human resources. Colonies became sites for generating surplus while the were sites of accumulation. The result was the development of the centres and the underdevelopment of the peripheries. Production processes relied heavily on coercion rather than on contractual consensus for reproduction: forced labour, forced peasant production, enforced cash-crop sales, restrictions on organisation and association and the criminalisation of ‘civil relations’.

The rise of capitalism, rather than delivering improvements in human welfare, was associated with plummeting wages, a reduction in human stature, and a marked upturn in the incidence of famine. Progress did not begin until the 1880s in the European core, and the 20th century in the European periphery, the latter roughly a century later than the standard narrative suggests.

There are significant differences between the American and European version of capitalism. The American traditiionally emphasizes the need for limited government, light regulations, low taxes and maximum labour-market flexibility. Its success has been shown above all in the ability to create new jobs, in which it is consistently more successful than Europe.

It would be extremely simple-minded to say that colonialism in Africa or anywhere else caused Europe to develop its science and technology. The tendency towards technological innovation and renovation was inherent in capitalism itself, because of the drive for profits. However, it would be entirely accurate to say that the colonization of Africa and other parts of the world formed an indispensable link in a chain of events which made possible the technological transformation of the base of European capitalism. Without that link, European capitalism would not have been producing goods and services at the level attained in 1960. In other words, our very yardsticks for measuring developed and underdeveloped nations would have been different.

It was a product of the irrationality of the capitalist mode of production. The search for profits caused production to run ahead of people’s capacity to purchase, and ultimately both production and employment had to be drastically reduced. Africans had nothing to do with the inherent shortcomings of capitalism; but, when Europeans were in a mess, they had no scruples about intensifying the exploitation of Africa. The economic depression was not a situation from which Britain could benefit at the expense of Sweden or where Belgium could gain at the expense of the U.S.A. They were all drowning, and that was why the benefits of the colonies saved not only the colonizing powers but all capitalist nations.

The whole existence and development of capitalism in Britain and France between 1885 and 1960 was bound up with colonization, and Africa played a major role. African colonies meant surplus appropriated on a grand scale; they led to innovations and forward leaps in technology and the organization of capitalist enterprise; and they buttressed the capitalist system at home and abroad with fighting men. Sometimes, it appeared that these two principal colonial powers reaped so many colonial benefits that they suffered from “too much of a good thing.”