The State and Accumulation under Contemporary Capitalism

Paramjit Singh,Balwinder Singh Tiwana

doi:10.13169/worlrevipoliecon.11.1.0076

Abstract

The classical and neo-classical economists present capitalism as a self-regulating and self-sustaining system. A system works on Say's law of market or Walrasian general equilibrium lines where market device works so efficiently that there are no possibilities of instability. The full utilization of available resources keeps the economy on a steady state growth path. However, Marxian and Keynesian economists do not believe in this idealistic interpretation of the working of capitalist economic system. They argue that cyclical instability is a fundamental tendency of capitalist economic structure. Historically, it has been proven that the capitalist system, from its very inception, has required state intervention, not only in its external relations but also in its internal functioning. The stability of capitalism depends upon the stability of capital accumulation which in turn depends upon state facilitation and direct state intervention in the economic affairs. In the light of these facts, the present paper makes an attempt to scrutinize the role of state in the accumulation process, which has evolved with the evolution of social classes and has been dominating economic and social affairs in accordance with the needs of the dominant class.

Highlights

Since the 1970s, the capitalist world system has undergone fundamental transformations in both its structure and institutional framework
Neoliberal ideology adduces that human well-being can be advanced by liberating individuals’ entrepreneurial freedom and skill within a specific economic structure and institutional framework
Neoliberalism is international finance capital’s current agenda. It was initially implemented in the developed countries using state power, together with an institutional network that subsequently extended to the developing economies of Asia and Africa

Summary

Introduction

Since the 1970s, the capitalist world system has undergone fundamental transformations in both its structure and institutional framework. Recent experience shows that neoliberal ideology dominates Third World nations’ economic and political spheres; it moulds their cultural and social affairs according to the needs of international finance capital.

Results

Conclusion