Political Economy: MODES OF PRODUCTION

STAGES OF SOCIETY
DEVELOPMENT ACCORDING
TO KARL MARX (1818-1883)
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 Introduction

• Marx identifies production as essential for

human existence. Any analysis of society and
its problems must, according to Marx, start in
an examination of its processes of production.
• All human societies have to be concerned,
before anything else, with the production and
distribution of the means of life.
• It is on this basis that Marx wrote on Stages in
society development which he refers to as
Modes of Production.
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 Introduction
• A mode of production comprises of Productive
forces and production relations which form
the economic base of the society where as
there is also ideological superstructure that
entails the political ideological foundation of
society e.g. laws

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 Introduction
• A Mode of production can be defined in
terms of how the society is socially organized
and what kinds of technologies and tools are
used.
• It is a combination of Productive forces and
the relations of production

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 Introduction
Productive Forces
• The productive forces consist of means of
production and labour power.
• Means of production include means of labor
(tools, machinery, premises and infrastructure,
what humans work with) and the objects of
labour (raw material, land-what humans work
on).

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 Introduction
• Labour power physical ability, skill, knowledge
and inventiveness. It is the level of development
of productive forces, and the way in which
society organizes their operation, which marks
out the different stages of society development
(Modes of production).
• It is the multitude of productive forces
accessible to men which Marx says determines
the nature of society.

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 Introduction
Production relations
• Production relations can either be antagonistic
or non-antagonistic. Firstly there are those
pertaining to ownership by persons, either
individually or collectively, of productive
forces.
• In societies where there is dominantly
collective ownership of means of production,
the relations will be non antagonistic as
opposed to societies with individualism.
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 Modes of Production
1. Primitive Communalism

• Karl Marx, in analyzing society development,

he considered this as the first mode of
production when an early man had just
started to live in some form of organized
society.
• People lived simply using primitive tools due
to very low levels of science and technology/
productive forces. (Note: Though he based his
analysis in European context, some ideas
apply in African context)
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 Primitive Communalism ctd
• There was little/ no social differentiation and
therefore the relationships among people
were non-antagonistic, the society was
classless because the means of production
were communally owned.

• Hence it was a classless society.

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 Primitive Communalism ctd
• The society depended mostly on hunting and
gathering. Important means of production
were communally owned for instance land.
• It seems there was equality between sexes
e.g. the subjugation of woman by man had not
yet taken place, so production relations were
non-antagonistic.

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 Primitive Communalism ctd
• During this stage, the superstructure had not
yet existed, however the society was ruled by
superstitions and people were slaves of nature
for they had not reached the stage of
manipulating nature, instead they essentially
depended on it for survival.

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 Primitive Communalism ctd
• Gradually, as the society developed, tools of
production were improved and members of
communities started permanent settlement.
• As a result of improvement of production
forces, there was production of surplus which
resulted into social stratification
(differentiation).
• This was the beginning of the fall of Primitive
communalism leading to the rise of slave
mode.
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 Primitive Communalism ctd
• There emerged those who acquired the
surplus (the haves) who started employing
those who did not have (the have nots).
• The former comprised of slave masters and
the latter slaves.
• Therefore the development/ improvement of
productive forces and the production of
surplus provided the basis for another mode
of production, slavery which was an
antagonistic mode of production.
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 Primitive Communalism ctd
• N.B: Primitive mode of production seem to
have cut across the late stone age and iron age
in the first years of the 1st millennium.

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 Slavery (Slave Mode of Production)

• This was the second mode of production and

the first class antagonistic mode of production
which was based on property relationships.
• This mode of production on which was best
exemplified by the Roman civilizations.
• The democracy of Roman and Ancient Greece
which has been written by many writers was
only democracy among the rulers.

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 Slave Mode of Production
• The pillars of Roman and Ancient Greek
civilization were the slaves and were not
beneficiaries of this democracy.

• They were merely used by the rulers to create

wealth for the use of the ruling group.

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 Slave Mode of Production ctd
• The economy under this mode of production
possessed no internal mechanism of self
production of labor force unlike under
Feudalism (to be seen later) that is the slaves
were owned (together with their labor) by the
slave masters.
• Slaves were not considered as human beings
but as property of their masters.

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 Slave Mode of Production
• It should be noted that this mode of
production was clearly evident with Roman
Empire that conquered North Africa and other
parts of the world during early civilizations.
• Towards the end of the Roman Empire, around
476AD, Roman conquests had slackened and
Roman law allowed slaves to regain some
freedom

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 Slave Mode of Production ctd
• This was as a result of slave revolts as a result
of harsh laws which affected slaves negatively.
• To gain this freedom, a slave was to pay lump-
sum of money to his master; this resulted into
the decrease in the number of slaves and
instead there were 'free workers' on farms
(small farmers) and this transformation led to
the break-up of production based on slavery.

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 Slave Mode of Production ctd
• Large-scale agriculture based on slavery
collapsed. In some other parts of the world,
powerful nobles acquired vast (land) holdings
which they governed independently of slave
masters.
• The slaves in this mode were turned into serfs
(note: not all slaves remained in the same
state and not all the masters became
landlords). This marked the beginning of
feudalism.
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 Slave Mode of Production ctd
• The practice which was referred to as origin of
social contract and was commonly practiced
by the Roman Catholic Church in the 9th and
10th century AD.
• Hence it can be said that the main conditions
for serfdom (feudal system) were laid down
within the slavery society.

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 Feudalism (5th - 17th Century

• Feudalism was never a single, unified system, nor did it

emerge everywhere at the same time. It grew up first in
Northern France during the 8th and 9th centuries. It
reached the Netherlands, England and Western German
in the 11th century. It was weaker in Eastern German,
Poland, Russia and Spain.
• Feudal system was very complex with the King at the
top, under him were nobles (comprising of Lords,
Vassals/ lesser Lords) and Knights (Soldiers) and
below were the Peasants (Serfs). The common
people (peasants) made the 90% of the population.
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 Feudalism ctd
• The focus in feudalism will be life in the manor. A manor
included a village or several villages and the surrounding
lands. The manorial system grew out of earlier traditions.
Under slave mode of production, the colonni (peasant
farmers) had received small plots of land.
• The colonni were no longer slaves, but they could not
leave the estate without permission. When German
nobles replaced Roman land owners, they retained the
colonni system.

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 Feudalism ctd
• It should be noted that during difficult years of the early
middle ages, many 'freed' peasants gave their land to
powerful Lords in exchange for protection (usufruct) for
life. Eventually they became tied to the Lord's land.
These peasants who were tied to the land were called
serfs.
• It is said that feudalism as a mode of production first co-
existed with slavery and later slavery disappeared. It was
in the 10th and 11th century that the system appeared in
its developed form with its political and religious
superstructure. In this mode of production, land was a
major means of production.

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 Feudalism ctd
• Although serfs were 'free' in this mode of production,
they were bound to put themselves under the service of
their patrons (Lords) in form of tenants. In this case, this
mode was an antagonistic mode of production with two
classes, Lords and serfs.
• During this era, implements of production and the
level of science and technology at large was slightly
advanced e.g. there was widespread use of plough.
The surplus produced was appropriated by the feudal
hierarchic of Lords, Bishops and Kings.

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 Feudalism ctd
• Serfs were exploited in various ways though they owned
means of labor. They were exploited through various
forms of rent.
• At the earliest stages of middle ages (around 11 th
century) in Western Europe, surplus was appropriated in
form of labor (labor rent). This is because the manorial
land was divided into 3; The first portion consisted of
land the peasants cultivates to meet their own needs

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 Feudalism ctd
• The second consisted of the land on which peasants for 3
days of the week performed their labor service, the
product of which went to the Lord (labor rent). The third
was common land.
• Alongside labor service, rent in kind was also paid by the
serfs. This consisted of agricultural and crafts products
(e.g. woven cloth).
• Rent in money, the serfs had to produce, sell the produce
and paid rent in form of money to the Lord. This was a
later development under feudalism especially with the
re-introduction of money economy.
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 Factors for the collapse of Feudalism

• Between 1000 – 1250AD, as a result of intensive

exploitation of serfs on Lord's land and as a result of other
socio-economic transformations, the feudal mode of
production began to decline;
• The serfs demanded for more freedom and resisted
some of the labor demands of the landlords as they
wished to increase productivity for their plots.
• The introduction of money, this made serfs to gain
direct access to the market. Trade had therefore
emerged. Some peasants (serfs) escaped from the ties
of landlords in the countryside, went to other fields
and made contracts with other landlords to use their
lands and pay only rent in money.
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 The collapse of Feudalism ctd
• Growth of towns, the escaped serfs became
middlemen in trade. Others established craft
industries and became artisans. This led to the
development of guild towns because these
artisans developed skills and business in
various cottages.

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 The collapse of Feudalism ctd
• These changes in economy giving rise to trade
and towns challenged the status quo of the
feudal Lords in the countryside. These artisans
were the ones who as merchants invested
their capital into handicraft industry.

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 The collapse of Feudalism ctd
• Enclosure system, around 1340s much land
was turned into use for sheep rearing and this
required more land. These increased demands
for land led to the enclosure movement in
which the landlords began to fence off their
land and even common land to acquire land
for use.

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 The collapse of Feudalism ctd
• In this case the landlords increased land rents
and peasants who could not pay were pushed
off the land, the peasants who lost their jobs
on land moved to urban centres where craft
industry had developed.

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 The collapse of Feudalism ctd
• All the above led to the transformation of the
feudal mode of production and marked the
beginning of capitalism which in its early form
appears as mercantile capitalism, with the
artisan class (merchant class) as the nucleus of
the mode of production (capitalism).

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 Capitalist Mode of Production (Capitalism)
• In Marx's critique of capitalist political economy, the
capitalist mode of production is the production system of
capitalist societies, which began in Europe in the 16th
century, grew rapidly in western Europe from the end of
the 18th century, and later extended to most of the
world. It is a system of wage-labour and commodity
production for sale, exchange, and profit, rather than
for the immediate need of the producers.
• It is characterized by: the predominance of private
ownership of the means of production and exploitation
of wage labor, distribution and exchange in a mainly
market economy (commodity production), and capital
accumulation (production for profit).
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 Capitalist Mode of Production (Capitalism) Contd…

The production relations are highly antagonistic with two major

classes capitalists (Bourgeoisie ) and workers (proletariats)
The capitalist mode of production is based on
1) Workers (proletariats) who are free to sell their work but
exploited by the capitalists
2) Ownership of the means of production by the capitalist
(Bourgeoisie)
3) The emergence of a money based economy, with profit
maximization motive

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 Stages in the Development of Capitalism
1. Mercantile capitalism (16th to 18th Century)
• Merchant capitalism is a term used to refer to the
earliest phase in the development of capitalism as an
economic and social system. It was a system of political
economy prevailing in Europe after the decline of
feudalism, based on national policies of accumulating
gold, establishing merchant marine, and developing
industry and mining to attain a favorable balance of
trade. In this case the wealth of a nation depended on
its possession of precious metals and governments
focused on national commercial interests, a merchant
marine, the establishment of colonies e.g in Americas
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 Mercantile capitalism contd…
• In this era, trade was the great wheel driving the whole
engine of society, particularly international trade. We
sometimes refer this stage as ‘Commercial capitalism’
• It should be noted that this was the era that some
countries in Europe made the discovery of gold and silver
in America; there was trans Atlantic slave trade; the
conquest and plunder of India- This is what we refer to as
primitive accumulation of capital in Europe that formed
the base for merchant capital. All the products of these
activities went to service the growing capitalism in
Europe
• Eventually, with capital accumulation this stage gave way
to another stage in capitalism development: industrial
capitalism
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 2. Industrial Capitalism (18th -19th Century)
• This is the age of machines. Industrial capitalism was
characterized by the presence of industrial revolution
• Characteristics: There was growth of steam power as the
main source for energy in production; the rapidly
increase in the usage of machinery; the rise of large scale
factories where hundreds of workers were assembled
under one roof; the rapid decimation of handicraft
industries and the growth of large scale metallurgical and
capital goods industries; the increasing strict separation
of employers (capitalists/bourgeoisie) owning the means
of production in industry and employees (workers) who
earned their living by selling their labor power; hence
antagonistic production relations
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 Industrial Capitalism contd…
• We sometimes refer to it as competitive capitalism.
• To quote the words of Lenin “The enormous growth of
industry and the remarkably rapid concentration of
production in ever-larger enterprises are one of the most
characteristic features of capitalism”
• During this era some money lenders lent money to
capitalists and with such financing capitalists were also
able to outcompete others. It was the time of survival for
the fittest. Some capitalists (producers) were thrown out
of the market due to competition. This scenario gave way
to monopoly capitalism which is referred to as
imperialism-the highest stage of capitalism.

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 3. Monopoly capitalism(Imperialism) 19th c +
• Imperialism is the highest stage of capitalism in which
capitalism does not contain itself within its national
borders as a result of overproduction and the desire to
make profits, hence it crosses its borders to invest
elsewhere. This marked the beginning of colonialism in
Africa and other parts of the world.
• To quote the words of Friedrich Engels and Karl Marx in
their communist manifesto: “ …the need for constantly
expanding market for its products chases the bourgeoisie
over the whole surface of the globe. It must nestle
everywhere, settle everywhere, and establish connection
everywhere. The bourgeoisie has through its exploitation
of the world market given a cosmopolitan character to
production and consumption in every country”
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 Characteristics of Imperialism
• Concentration and centralization of capital in few
hands. This meant merging of a number of capitalists
(producers). For instance formation of cartels where
monopolies came together to join their activities.
Examples were Oil industry (1928) by Shell, Anglo Persian
(BP) among others. They set common prices and
coordinated their planning and advertising. These are
what today we refer to as Transnational corporations
(TNCs)
• Export of capital as distinguished from export of
commodities: Capital was exported to colonies to build
railways, and other public utilities. This was to create
sources for raw materials and spheres for capital
investments
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 Characteristics of Imperialism contd…
• Territorial Division of the world among the biggest
capitalist powers: The more capitalism was developed,
the more strongly the shortage of raw materials was felt,
the more tense the competition and hunt for raw
materials was felt, the more desperate the struggle for
the acquisition of colonies became.
• The scramble for colonies towards the last quarter of the
19th century and the re-partition of the continent among
imperial powers took place in this stage (refer to
scramble and partition of Africa in 1884/1885)
• It is on the basis of this exploitative nature of capitalism
that Karl Marx advocated for socialism/communism, a
mode of production that is egalitarian (classless) in
nature
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 Socialist Mode of production (Socialism)
Karl Marx (1818-1883)

• According to Karl Marx, the historic mission of the conscious

proletariat is to overthrow the capitalist system and put in its place a
socialist order. It is not enough though for the proletariat to simply
seize the bourgeoisie state and use it for its end. The proletariat must
smash the bourgeoisie state and in its place build the dictatorship of
the proletariat as an instrument for suppressing the bourgeoisie.
• By putting an end to bourgeoisie property, the most complete form of
private property, the proletariat eliminates the basis of exploitation.
 Socialism defined…
•According to H. D. Dickinson, "Socialism is an economic
organisation of society characterized by public ownership of the
material means of production and all members of the
community being entitled to benefit from socialized planned
production on the basis of equal rights."
•According to Paul M. Sweezy : "In its primary meaning is a
complete social system which differs from capitalism not only in
the absence of private ownership of the means of production
but also in its basic structure and mode of functioning."
•In brief Socialism, as an alternative to capitalism, is an economic
system which is controlled and regulated by the government so
as to ensure welfare and equality of opportunity to the people.
 Ideology behind Socialism/Communism
• The ideology behind Socialism and Communism is Marxism:
a method of socio-economic inquiry based upon a materialist
interpretation of historical development, a dialectical view of
social change, and an analysis of class-relations and conflict
within society.
• Communism is a system of government in which the state
owns all the means of production as it is with socialism. The
difference between the two is that communism operates a
totalitarian, collectivized economic order in which all
decisions about production, consumption and distribution are
made by the state. It is authoritarian and revolutionary in
nature, yet socialism can be gradual. Not all socialist countries
are communist but all communist countries are socialist.
 Characteristics of Socialism

The distinguishing feature of socialism and communism in

the sense of Karl Marx is the abolition of bourgeoisie
property. Regardless the many definitions of socialism,
characteristics of socialism are as follows:
1. Equality:
The moral imperative of socialism is egalitarianism.
Socialism developed as a reaction against the injustice and
miseries of industrial capitalism. It was considered that only
by introducing greater equality into economic relations that
the condition of the working classes can be improved.
Socialism aims at providing equal opportunities to all.
 Characteristics of Socialism contd…
Hence socialism emphasizes the principles of liberty, equality-
fraternity, co-operation, social communion and comradeship.
However, it would be wrong to imagine that socialism wants to
bring about absolute equality. Such equality is neither desirable
nor feasible. Socialism recognizes income differences based on
merit and productivity.

2. Public ownership of the means of production :

Socialist systems are economic systems that emphasize public
ownership and heavy government influence in economic affairs.
Hence under socialism, there is collective ownership of the means
of production. It eliminates private property in land and other
means of production. Lands, mines, mills, factories, the entire
system of finance and trade, etc., would be nationalized. Means of
production become social property.
 Characteristics of Socialism contd…
However, it does not mean that private enterprise and
private property are totally non­existent in socialist
economy, but their relative importance is so insignificant
that they can be ignored.
N.B: private property in the form of houses, furniture,
household equipment and other consumer's goods is
allowed, what is the problem is bourgeoisie property for
exploiting others
 Characteristics of Socialism contd…

3. More emphasis on social welfare :

•Under socialism the maximization of social gains is the guiding

motive of production. But under capitalism the monopolies
exploit the workers, ruin and impoverish the majority of the
population as they want to maximize profits. Socialist production
would be meant to satisfy the material and, cultural
requirements of the society. Instead of enrichment of the few
the entire society should be enriched.
• As opposed to individualism under capitalism in which
everybody is being responsible for his or her own welfare,
socialism ensures that society maximizes the welfare of its
members. Everyone is entitled to the benefits of socialized
production on the basis of equal rights.
 Characteristics of Socialism contd…
4. Economic Planning :
• Economic planning is an essential feature of
socialism. As the material means of production are
owned by the state/public, conscious and
deliberate productive decisions can be arrived at
only by a board.
• With the establishment of social ownership of the
principal means of production, the development of
society is brought under conscious control. Pigou
has rightly observed that it is impossible to imagine
socialism as anything other than centrally planned.
 Characteristics of Socialism contd…

5. Establishment of a classless society :

• As we had earlier seen, under capitalism the society is divided into
two principal classes—the capitalists and the workers. There is
eternal conflict and antagonism between these two classes. One
class exploits the other. Contrary, socialism aims at establishing a
classless society.

• Under ‘autho­ritarian/ radical socialism’, there is practically one

class, that is, the class of the peasants and workers. As all the
means of production are owned by the state, the capitalist class
simply does not exist. Under ‘liberal/modern socialism’, although
private capitalists exist, yet their activity is controlled and
regulated. They do not enjoy unrestricted freedom. They are under
the observation of the state.
 Characteristics of Socialism contd…
6. Little importance of price mechanism:
•In a socialist economy (such as former socialist China, USSR,
Tanzania, Cuba ) the price mechanism was given a minor role in
resource allocation. A specific plan based on social needs provides
guidelines for resources allocation.
However, in democratic socialism(the less radical socialism such as
the social democrats all over the world e.g. in Germany, Britain etc)
the price system is allowed some role according to the size of
private sector.

Case studies/Examples: The proletariat has won victories in the

struggle for socialism. Taking advantage of the favorable conditions
presented by inter-imperialist wars, the proletariat of the former
Soviet Union and China succeeded in establishing socialism in their
own countries after the first and the second world wars
respectively. These victories in the struggle for socialism serve as
shining examples for the proletariat of the world.
 Conclusion and food for thought

Note: It should be noted that from 1989-1991

onwards most countries in Eastern Europe that
used to practice socialism/communism (guided by
the classical radical Marxism ideology) have
transformed themselves towards market socialism
accommodating elements of capitalism. Should we
say that global capitalism has triumphed? Then
should we say that Marxism ideology that inspired
socialism and communism practice is dead?
 Conclusion and food for thought contd…
• As it is also noted the parties that follow socialism today
(guided by Neo-Marxism/ less radical ideology) are
evolutionary and not as radical as Karl Marx would anticipate.
All the socialist parties (social democrats) that we see today
such as the Obama’s can be considered socialists but they are
not revolutionary. This also includes other socialist parties in
Britain, Germany, Italy, Scandinavians and all over Europe.
But the most important thing these socialists have retained
the fundamental Marxian idea that human emancipation
from exploitation, oppression, discrimination and the
inevitable linkage between privilege and misery can come
from struggle by the exploited and the disadvantaged. They
have not completely abandoned the insights and inspirations
of Karl Marx. Hence Karl Max’s ideas are still relevant.
 Communist Mode of Production
• This is the age of perfection in technology
• It presupposes that science and technology
are for all and there is very little difference
between manual and mental labour hence the
guiding principles for production is from each
according to his/her ability and to each
according to his/her needs
 Communist Mode of Prodn
• Communism presupposes that moral standards and
intellectual excellence are extremely advanced. It is
said to be an egalitarian society with no difference
between people, no classes e.t.c.
• In communism, the superstructure becomes
scientific ideology. It should be re-emphasized that
communist societies are non-existent so far.
However, the other five modes of production have
been experienced by mankind in the process of
social development.