The Importance Of Primitive Capitalization

Primitive accumulation is the development of capitalist products by a means of precapitalist modes of production. Primitive accumulation of capital was the driving force behind European wealth and power. These precapitalist modes of production, consisted of stealing and slavery, which allowed countries to develop a large quantity of capital production. This accumulation of wealth, allowed some countries to flourish and develop relations between capital and labour. Uruguayan journalist, Eduardo Galeano, wrote a book called Open Veins of Latin America, describing his views on primitive accumulation and the countries affected by it. He stressed that although there is a distinct separation between two social classes, they still rely on each other. …show more content…
According to Galeano, “the formidable international concentration of wealth for Europe’s benefit prevented the jump into the accumulation of industrial capital in the plundered areas”(28). Galeano is conveying that the inferior and plundered countries, were not able to capitalize due to Europe’s rise to power and international concentration of wealth. Also, the developing countries were “not only victims of that process of international concentration, but that subsequently they have had to try and compensate for their industrial backwardness”(28). These underdeveloped countries, had to realize the primitive accumulation of capital in order to compensate for their industrial …show more content…
Primitive accumulation gives one country an unfair advantage over other countries, through inequitable ways of accumulating capital. This can be used describe the economic relationships seen today, because of the inequality of the economy. Galeano describes the market as a “dictatorship of one group over another, always for the benefit of the developed capitalist countries”(237). Galeano also explores the trade gap between trading countries. This trade gap gives one country a disadvantage compared to the others countries. A trade gap or trade deficit, is when a country 's imports exceeds the number of exports. According to the Instituto Latinoamericano de Planificación Económica y Social in the Open Veins of Latin America, “the trade gap will rise up to $4.6 billion in 1975 and to $8.3 billion in 1980”(238). These predicted numbers, would put Latin America in loads of financial debt. A trade gap can obviously create huge financial issues for countries and it can also give another country a substantial advantage over that