Dialectic in western marxism

The fundamental principles of modern dialectical philosophy derive from Hegel. He sums them up as follows. ‘Everything is inherently contradictory ... Contradiction is the root of all movement and vitality, it is only in so far as something has a contradiction within it that it moves, has an urge and activity' (Hegel 1969, 439). In Hegel's philosophy these ideas form part of an all−embracing idealist system which portrays all phenomena ×− both natural and social ×− as subject to dialectic. Marx inherits and transforms these ideas; but how precisely he does so has been a topic of much dispute within western Marxism. Marx himself describes his relation to Hegel with the aid of a couple of graphic but vague metaphors. He says that he turns Hegel's dialectic ‘right side up' in order to ‘discover the rational kernel within the mystical shell' (Marx 1961, 20). But how can this be done? Is there a ‘rational kernel' to Hegel's dialectic? If so, how can it be extracted?
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