ABSTRACT

Sincethestateisnotanautonomousactor,butratheravehicleofthe rulingclass,themonopolybourgeoisieisthedrivingforceofexpansion/ colonialism.Hilferdingbasedhisexplanationonthedomesticfinancecapitalwhoseattemptsofcartelizationwouldeventuallyovercometheanarchy ofcapitalistproduction(markets)andeconomiccrises,yetfailtoresolvethe contradictionbetweenthebourgeoisieandtheproletariat.Heexplained imperialistexpansionintermsoftheneedsofmonopolycapitalistssearchingforcheaperrawmaterialsandlabourforhigher.profits,openingnew marketsfortheexcessofgoods,andfinally,findingoutletsforinvestments. Inotherwords,expansionoccursforfinancial,commercial,andcompetitive needs.Imperialismisunderstoodhereastheinternationalizationofatamed domesticintra-bourgeoiscompetition.2Financecapitalrequiredastrong statewhosepoliciessupportedthemonopolycapitalist'sworld-widecompetitivestruggleformarkets.Inordertomobilizeenoughdomesticresources forimperialism,thestatewasincreasinglytorelyonanideologyofimperialismreinforcedintimesoffierceinternationalcompetition:amixtureof

racism, nationalism, and militarism. Similarly, Bukharin insisted that the growing internationalization of capitalism went hand in hand with a growing nationalization of politics. On the domestic level monopoly capitalists could not necessarily rely on a strategy of divide-and-rule because of the counteraction of trade unions. On the international level, however, they could mobilize the nationalist loyalty against another monopoly-capitalist state.