The marxian theory Dr E Mary Christobel Department

The marxian theory Dr. E. Mary Christobel Department of economic

Introduction Karl marx , the celebrated author of ‘Das kapital‘ is one of the few celebrities in history who cast a spell on hundreds of millions of people by his doctrines.

The marxian theory Marx contributed to theory of economic development in three respects , namely, in broad respect of providing an economic interpretation of history.

Materialistic interpretation of history The materialistic interpretation of history attempts to show that all historical events are the result of a continuous economic struggle between different classes and groups in society.

The marxian process of economic development The propertied and the non-propertied classes. The existing property relations “turn into fetters” on the forces of production.

Surplus value Marx uses his theory of surplus value as the economic basis of the ‘class struggle’ under capitalism and it is, on the basis of his theory of surplus value that he builds the super structure of his analysis of economic development.

Capital accumulation It is surplus labour that leads to capital accumulation. The supererogatory labour simply augments the capitalist’s profits.

Definition “Capital is dead labour that vampire like only lives by sucking living labour and lives the more, the more labour it sucks” -As Marx say

critical appraisal Marx’s theory of capitalist development has been accepted by his followers as a gospel truth while it has been severely criticised by his opponents for the following reasons.

Surplus value unrealistic The whole marxian analysis is built on theory of surplus value.

Marx-A false prophet Marx has proved to be a false prophet.

Technological progress helpful in increasing employment Marx pointed out that with increasing technological progress, the industrial reserve army expands.

Falling tendency of profits not correct Marx contends that as development proceeds, there is an increasing in the organic composition of capital which brings about a decline in the profit pate.

Marx could not understand flexibility in capitalism Marx also could not foresee the emergence of political democracy as the protector and the preserver of capitalism.

Cyclical theory wrong Marx emphasized that capital accumulation led to a reduction in the demand for consumption goods and fall in profits.

Static analysis Marx’s theory, though it sought to explain a dynamic process, was in the words of schumpeter’. ü Labour theory of value ü A modified version of subsistence theory of wages.

conclusion Despite these weaknesses, some of the. Marxian tools pertaining to his theory of economic development have ever since become part and parcel of theory of economic growth.

The marxian theory and underdeveloped countries The marxian theory is not applicable directly to underdeveloped countries. Marx did not think of the problems of such countries.