Wednesday, April 03, 2013

***The Wheels Of Capitalism In Its Swaddling Clothes- Fernand Braudel’s View




Book Review

The Wheels Of Commerce-Civilization & Capitalism:15th-18th Century, Fernand Braudel, Harper&Row, New York 1979


Karl Marx, the 19th century revolutionary socialist and dissector of the underpinnings of the capitalist mode of production, is most famous for his inflammatory pamphlet, The Communist Manifesto, a programmatic outline of, and rationale for, the socialist reconstruction of society beyond the current capitalist market system. Not as well known, and certainly not as widely read, was his equally important Das Capital that, painstaking, gives a historical analysis of the rise of capitalism based on the appropriation of surplus value by private owners. Where Marx worked in broad strokes to lay out his theory relying mainly on (and polemizing against) bourgeois economists the work under review, the second volume of a three volume study of the evolution of capitalism, Fernand Braudel’s Wheels of Commerce, fills in the spaces left by Marx’s work. Although Braundel, of necessity, tips his hat to Marx’s insights his work does not depend on a Marxist historical materialist concept of history, at least consciously, although in its total effect it is certainly comparable with that interpretation of history.

Braudel digs deep into the infrastructure of medieval society to trace the roots of capitalism to the increased widespread commerce that the rise of rudimentary production of surplus goods permitted. He highlights, rightly I think, the important role of fairs, other lesser adjunct forms of commercial endeavor like peddling and shop keeping, and the rise of fortunately located (near rivers, the ocean, along accessible roadways) cities committed full-time to creating a market for surplus goods being produced in the those cities, on the land and, most importantly, in far-off places. Naturally, such activity as the creation of markets kept creating demand for more and varied products making more expansive (and expensive) journeys necessary. The opening of wide-flung trade routes, over land and on the seas, exploited by merchant-adventurers (in the widest sense of that term) thereafter became practical, if still highly risky, for those committed to those activities.

Needless to say in a densely written six hundred page volume the number of examples of commercial endeavors (some presented in more than in one context) that Braudel highlights is beyond anything a short review could do justice to. A quick outline here will have to suffice. The already noted rise of a merchant class ready to do business over great stretches and under trying circumstances; the still controversial basis for the rise of a distinct capitalist ethic that drove the markets(think Max Weber and the Protestant ethic); the importance of double bookkeeping of accounts and the introduction of bills of exchange to facilitate payment; the exploitation of vast colonial areas for minerals and other natural resources such as gold and silver used as physical value in every day market exchanges; the rise and fall of Spanish and Portuguese colonialism based on the gold and silver mines and slave trade; the successive rises of the Dutch and English colonialisms based on that slave trade and control of the sea lanes; the rise of joint-stock companies and other forms of collective capitalist ventures; the introduction of a stock exchange to place value on those enterprises; the increased role of a national state in the emergence of capitalism as defender of private property, as purchaser of goods, and insurer of last resort against hard times; the shifts in class status away from feudal norms and rise in class consciousness in society; and, the applicability of the capitalism to non-European societies such as Japan, and non-Christian cultures such as Islam.

Just to outline some of the topics as I have just done will give one a sense that this is an important work (and act as an impetus to read volume one and three) for those who want to get the feel of what the dawn of capitalism looked like. And for those who want to move beyond capitalism a very good companion to that not widely read Das Capital of Marx.

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