Abstract

In "Finance Capital" (1910), Rudolf Hilferding put forward a theory of capitalist development and imperialism that exerted a powerful influence on Marxist thinking throughout the Twentieth Century. After the First World War, however, Hilferding radically altered that theory. Instead of global capitalist development fueling rivalries among the capitalist states that would likely lead to war, he postulated that mutual economic interests, buttressed by close political and cultural affinities, would be more likely to promote cooperative relations among the western powers which would seek to maintain international peace. Hilferding believed that the “unbridled competition of individual sovereign states” was gradually giving way to a “community of interests.” He suggested that international treaties, the expansion of democracy, and the construction of the League of Nations, would reduce the importance of national sovereignty and would pave the way for peace and socialism. The Second World War and the Cold War seemed to relegate Hilferding’s ideas to the dustbin of history, but the collapse of the communist world and the “triumph of capitalism” have, once again, radically altered the international terrain. This paper argues that important elements of Hilferding’s theory apply to the present capitalist order in which, though imperialism remains alive and well, war among the major powers seems improbable.