Capitalism thrives on the concept of free market, where goods are produced in mass scale and then are distributed out based on the concept of Laissez Faire or market with minimum or no regulations. Though laissez faire or economics without/minimum control is a key requirement at the home state, the rules of the market can be influenced for one’s own advantage through Imperialism. Imperialism provides that unfair market principles, where a country under the influence of capitalist classes, controls every aspect of production, regulations and consumption in the society as they have complete control on each and every aspect of the individuals. Capitalism, thrives on the concept of profit, where higher profit margins are the only success parameters.
Capitalism, leads to setting up of production capabilities in mass scale, where the country is flooded with goods to be consumed. But the production capabilities with enhancement in technology expands to such extent that it leads to over production. In order to meet the supply requirement, Industries start looking for foreign markets from which they could attain greater customer base(create demand) for more profit. But the foreign market is already under the control of the local industries, run by local individuals where the entry of a new player is competitive and cutthroat. Through Imperialism, one country exerts military power first to take over legislation and regulation of another country in the name of civilizing. But it is actually setting up a ground base for capitalist industries to come in and exploit the individuals as well as the country’s natural resources. Favorable market condition is provided by the Imperialist authorities under which their industries thrive while the local industries are destroyed through taxation and controlled manipulation.
This could be explained in great details with the Rise of British Raj in India and the subsequent Capitalism that followed. Industrial Revolution in Britain forced the factories of Manchester to look for other markets as the competition in England was getting gruesome. The British East India Company was mainly run by the Industrialist forces of Britain which under the patronage of the British Crown, established a colony in India at first and then later expanded to take control over the entire of India through their private militia. Once a control was set up, Indian farmers were asked to produce only for the requirements of the British Industries, mainly in the form of raw materials. Cotton and Indigo were the chief exports while unfair amount of taxation were imposed on Indian handicraft and household industries in the name of maintaining the affairs of the British Raj. Though the local industries were allowed to survive, the dumping of cheaper goods from the factories of Manchester made it unviable for local industries to produce thus establishing a dominance of British Industries over India. Also, the British controlled over what could be sold or traded by other European powers like France, Portugal and Dutch in India hence they had a complete dominance over trade in every aspect over India. This was capitalism in its brute form where the forces of capitalism and monarchy combined to form a superlative imperial force.
The irony of the concept is that it was not only done by Britain, but also by Spain in Latin America, Portugal over West Africa, Belgium over Central Africa, Dutch over South East Asia, Japan over Manchuria and all European powers over China. The Capitalist forces financed the colonialist expansion of the imperial powers and in return were rewarded with complete undulated control over the market of such attained colonies.
Though the examples are relevant from the 19th and 20th century, in 21st century the principles of Capitalism leading to imperialism is still evident with the rise of multinational corporations. Corporations throughout the world have indirectly influenced the policies of weaker countries; by burdening them with un-payable debt and then coming in as a liberator; requiring them to open up industries of their significant interests in return. The concept of Laissez Faire was embodied as the fundamental principle of the 21st century economics, of which the World Trade Organisation is the Chief Guardian. The rising levels of global conflicts is the chief proponent of that ideology. Once a country is taken over in the name of liberation from tyrannical rule; the corporations move in for redevelopment. But in the first instance, the wars are required to be financed by somebody, which is done by the capitalist system of the society of the aggressor country.
Capitalism under control is desirable, but complete free form of capitalism without any control leads to unethical profiteering. Social and moral ethics are undermined and everything possible is done to ensure that profits are booked at the highest levels through subjugation of people in the process. Hence Imperialism is the natural outcome of Capitalism. Both in historic and present context.