CRISIS IN CAPITALIST SYSTEM

INTRODUCTION
Capitalist crisis refers to the major problem which affected most capitalists. Most of crisis in capitalism systems include war which was associated by development of capitalism in Europe especially from 1870's which was period of rapid industrialization in Europe. It was the rapid industrialization which made most of European nation to go beyond their boundaries so as to obtain industrial demand such as raw material, market as well as investment areas. It was the struggle for industrial demands which brought conflict and quarrels among European nation something which led to the capitalist crisis.

Crises in the capitalists system were the major conflicts and problems which affected capitalist in production mainly in Europe and increase exploitation in the colonies in Asia and Africa by the imperialists. The crises were;

1. The First World War.

2. The Great Economic Depression.

3. The Second World War.

FIRST WORLD WAR: CAUSES AND IMPACTS 
World War I was a military conflict from August 1914 to November 1918 that involved many of the countries of Europe as well as the United States and other nations throughout the world. World war I was one of the most violent and destructive wars in European history and the general use until a second worldwide conflict broke out in 1939 ( World war II). Before that year, the war was known as the Great War or the World War.

SHORT TERM CAUSES OF FIRST WORLD WAR 

Assassination of Archduke Ferdinand on 28th June 1914:
Austria's Prince Ferdinand and heir to throne and his wife Sophia were shot dead by a Serbian student while at their honeymoon at the bridge of Sarajevo, this was the immediate cause of World War One. Austria responded by giving an ultimatum to Serbia with the support of Germany. 
The conditions given included:

1. Serbia was to explain the assassination and bring the assassins to book.
2. Serbia was to dismiss all official which Austria suspected was involved in the murder.
3. Austrian officials and police were to be permitted to take part in the investigation. Serbia rejected some of the conditions with the support of Russia and her allies. On 25th July 1914 German declared war on France on 3rd august 1914, Britain declared war on Germany, Russia also joined the war hence World War One.

Germany's attack on Belgium: 
Germany mobilised and stationed her troops in Belgium and prevented French troops from advancing. Germany's attack on Belgium on 2 august 1914, caused Britain to quickly join the war on 14 august 1914, Britain accused Germany of breaking Belgium's neutrality which was confirmed since 1839 by the London conference. All these events also triggered the first world war in 1914.

LONG TERM CAUSES OF FIRST WORLD WAR

These are causes that took place and prepared ground for the outbreak of war long time ago before 1914.  

1. Imperialism
Development of capitalism into Monopoly stage. During that time European capitalist were struggling for Economic demands such as raw material, markets, cheap labor and areas for investment. The demand for these gave rise to various forms of struggle which led to fear and conflicts that led to war (First World War).

2. Germany Nationalism

After the unification of Germany, Germany intensified her military hence posing strong challenge to other capitalists nations in Europe especially Britain. Military power enabled Germany to acquire colonies in the world. This led to conflict between Germany and other powers which were also interested in colonies e.g. France and Britain.

3. The rise of rival Military alliances in Europe.

This was the union among imperialist states in Europe in order to obtain collective defense against their enemy states. This means it was the development of Military alliances among the European powers in order to defend each other militarily once they were attacked by other powers, there were two alliances;

Triple alliance: Germany, Austria – Hungary in 1879 and Italy in 1882.

Triple entente: Britain, France and Russia. These alliances were enemy to each other and competed in manufacturing of weapons and armies. This situation led to hostility which marked the starting of the war in 1914

4. Arms race / military preparedness / development of militarism: 

This was the competition of manufacturing military deadly weapons within the imperialists industrialised European nations who aimed to achieve the imperialists motives of their respective nations.

The armed race is symptomatic of the "security dilemma‟ in international relations whereby the pursuit of national security increases the sense of insecurity among the neighboring states, a well known example of an arms race is the Anglo-German naval rivalry between 1900 and 1914.

Expansion of the German naval involving the construction of powerfully armed and heavily armored battleships was met with the launch of the British Dreadnought class of naval vessels after 1906.

After the unification Germany began to manufacture new weapons that were beyond her domestic needs. This made other countries to join the competition of manufacturing weapons, they increased their defense budget the number of troops which necessitated or motivated them to go to war hence the outbreak of world war in 1914.

5. Oversea conflicts/ fighting for colonies/ imperialist motives:The industrial revolution in Germany, France and Britain led to economic domination leading to the scramble for colonies in Asia, Africa and Balkans and caused an immense increase in the manufactures of each country and a consequent need for foreign markets.

The principal field for European policies of economic expansion was Africa which is where clashes occurred due to colonial interests.

Economic rivalry in Africa between France and Great Britain, and between Germany on one side and France and great Britain on the other, almost precipitated war in European and even South America between 1898 and 1914.

6. European balance of power: Every European country wanted to maintain military economic and political superiority over the others which led to the outbreak of war. Germany wanted to remain the lion of the land through its military, while Britain wanted to remain the shark of the sea because it had very powerful marine technology

Such ideology caused other nations to struggle for recognition even if it meant risking world peace. Therefore, World War One broke out in 1914 because each nation wanted to maintain their status quo and claim recognition.

7. European nationalism: Many European nations joined the war to defend their national interests, e.g. the assassination of Archduke Ferdinand by a Serbian student was an act of nationalism against Serbia, while the conflict with France was meant to regain Alsace and Lorain from France.

EFFECTS OF THE WAR ON AFRICA

POLITICAL EFFECTS 

1. Change of Colonial master for example in Tanganyika was given to Britain in 1921. Rwanda and Burundi to Belgium and South West Africa/ Namibia to the Boers. The shift of colonial power in Africa after the war all German colonies in Africa were formally taken over by the victorious powers in theory each of these new occupying powers held their new territories on behalf of the newly formed league of Nation. They were born by the term of their mandate to safeguard the interest of the African people and prepare them for eventual self-government. In practice the European victors treated their new acquisition much like any other colony

2. Death among Africans soldiers and civilians. Many African soldiers lost their lives in the battle (field of war ) over work and others due to the out of diseases such as cholera influenza, and diarrhea. It is estimated about 100,000 people died.

3. Rise of communicable diseases e.g. Plague, influenza and malnutrition about 70,000 people died in Tanganyika.

4. Insecurity among African societies. Many African societies were psychologically affected after they had witnessed their relatives being taken by force to fight for their colonial masters.

5. Destruction of colonial economy production in the settler farms and mines plantations felt because labours were recruited as soldiers.

6. Intensive exploitation of African people because they wanted to recovery their economies which were ruined by the war such as land alienation and forced labor.

7. Destruction of physical infrastructure like railways, roads, harbors ports etc.

8. Decline of overseas trade;-External trade between the colonial and Europe failed because there were no shapes which sailed to Europe during and immediately after the war. Shortage of labour in the plantation areas, European family had suffered a set back with the absence of men at work, in some places farms had been left and their owners, if they survived the war, were usually deported

The Great Economic Depression: its causes and impact on Africa.

THE WORLD GREAT DEPRESSION

Depression in economic means a period in an industrial nation characterized by low production and sales and high rate of business failures and unemployment. The Great depression - refers to the worst period in the industrial nations characterized by low production, low sale and high rate of business failure and unemployment from 1929 – 1933.

It started in USA and spread to Europe and others parts of capitalist world (colonies) except Russia.

The causes of Great Economic Depression

1. Domestic over production, there was too much production of goods which was experienced in USA and Europe that lacked market and caused overproduction and low market hence the fall in production in 1929.

2. High protective tariffs by USA made other European countries to impose tariffs on USA goods. This caused piling of goods that couldn’t be sold (over production).

3. Unequal distribution of income. Capitalists paid workers low wages which reduced the purchasing power rate of the working class who were the majority.

4. The fall of stock of exchange in USA; this made business to collapse as people were selling their shares and others withdrew their money from industries, banks and farms. Companies could not continue with production neither could they sale their products. They closed business and sack of workers.

5. Speculations. It was the period when people were expecting depression to occur hence they started to produce more goods also in industries and farmers produce a lot of products and as an outcome the depression did not occur and resulted to overproduction of goods which could not be sold, that is high supply and low demand.

6. Less government control of capitalists’ economy. This made markets to be saturated with too much unsold goods. This caused problem of high supply and low demand in 1920’s.

IMPACTS OF GREAT ECONOMIC DEPRESSION ON AFRICA (TANGANYIKA)

1. Increase in colonial economic exploitation especially in agriculture e.g. increased forced labor, land alienation etc.

2. Fall of price of agriculture products e.g. Price of sisal fell from 32 per ton in 1929/30 to 12 per ton in 1931/32. 
3. Fall of wages e.g. Wage of sisal cutter in Tanga fell from 30 TSH per month to 15 TSH per month in 1935. 
4. Fall of government revenue e.g. from Tsh 750,000 in 1929 to Tsh 450,000 in 1931/32. 
5. Massive unemployment due to low prices of agriculture products; many settlers in Kenya and Usambara left their farms thus leaving many workers out of work. 6. Reduction of government expenditure on social services.

The effects of Great Economic Depression on Africa had some advantages.

To Tanganyika and Africa because they raised people’s consciousness about exploitation thus resulted in Nationalism and the rise of anti –colonial union in 1945.

IMPACTS OF GREAT ECONOMIC DEPRESSION IN GENERAL

1. Unemployment, many people lost their jobs due to closure of industries and companies.

2. Reduction of wages which reduced people’s purchasing power which cause more closing of industries and unemployment.

3. Fall of production in industries due to lack of markets.

4. Overproduction in USA, Britain and other countries.

5. The growth of Military dictatorship in Europe. E.g. Germany under Adolf Hitler and his Nazi party in 1933, and Italy under Mussolini and his fascism party.

6. Financial institution such as banks had no money hence some were closed down.

7. Germany failed to pay for the war reparation to European allies and its debt to USA.

8. Economic nationalism emerged where by nations formed united fronts in order to get out of Great Economic Depression e.g. New deal in USA where government provided money and other helps to industries, farmers, banks, in order to continue with production and revive the economy.

IMPACTS OF GREAT DEPRESSION ON AFRICA

1. Intensive exploitation over the Africans. The Africans were forced to provide more so as to maintain income they used to get before the crisis, the government started cutting down the cost of running the government and also through taxation on the Africans the colonial government decided to increase tax on the Africans so as to rise revenue.

2. Unemployment there was massive redundancy of wages labours that particular group faced economic and social hardship.

3. Fall of prices in agricultural crops. The fall of production in Europe went together with the fall of market for primary product, hence the Africans were unable to sell their export crops at reasonable price. Also this led to the fall of agricultural production, planters and settlers deserted their farms leaving them without close settlers deserted their farms leaving them without close supervision. The Africans shifted from cash crops to food crop cultivation

4. Decline of social services. The colonial government cut out services such as education and medical services. The Africans had to pay for those services

5. Depression in economic means a period in an industrial nation characterized by low production and sales as well as high rate of business failures and unemployment. Great economic depression was an economic slump or break down which took pale in 1929-1933. This crisis started in the united state of America (U.S.A) and then spread to Europe, Asia and Africa.

6. The great economic depression was characterized by fall of profit, fall of price of goods, un employment, decline of living standard, closure of banks and decline of living standard, closure of banks and other financial institutions high poverty rate fall of world trade etc

Measure taken to overcome Great Economic Depression in the colonies.

1. Colonial government made it compulsory to produce crops e.g. British obliGreat Economic Depression the Suleiman and the Buganda to produce cotton.

2. Increased taxation to set more income.

3. Massive land alienation to produce more raw materials to revive European economy.

4. Settlers were encouraged to conduct research to get better seeds.

5. Forced labour was intensified to recover capitalist economy.

The Second World War: Causes and impacts on Africa.

THE SECOND WORLD WAR 1939 1945.

This was military fighting between the axis power; Germany, Italy and Japan and allied power such as Britain, France, USA and Russia which took place between 1939 –1945.

Second World War started on Sept, 1939 when German invaded Poland. On 3 rd Sept 1923, Britain and France declared war on Germany.

CAUSES OF SECOND WORLD WAR

Immediate causes of the second World war

1. Japanese attack on Manchuria; in the year 1931 Japan are invaded the part of China ( Manchuria) and created a new state called Manchukuo. Unfortunately the league of nation did not punish Japan for her aggression and in 1933 Japan decided to quit the league of Nations. The silence of the league of Nations sparkled terrorism ambitions among fascist nations

2. Ethiopia crisis in 1935, Benito Musolin of Italy invaded Ethiopia, this attempt was contrary to the United Nations charter which required all members to settle their differences through it. Further more Italy with drew from the league of Nations in order to prepare military for the second world war.

3. Hitler’s aggressive policies:- since 1930’s Hitler began to violet the versatile peace treat agreement which accused her to be causative of the first world war and in 1933 German withdrew from the league of Nations ad continued with her aggression of invading other other nations in order to create stronger German and expansion her territories. In 1939 she occupied Czechoslovakia and Poland hence the outbreak of the second world war.

4. Russo- Germany Non-Aggression policy. In 1939, Russia suddenly signed a non aggression treaty with German that feed Hitler from the danger of the two front wars and agreed to divide East European area particularly Poland between them. This East European area particularly Poland between them. This Strengthened Hitler’s demand upon Poland.

5. Hitler’s ultimatum to Poland. Hitler demanded Germany control of a strip of land across the polish corridor, which separated east Prussia from the main part of German when Poland refused these demands, Hitler declared war Poland on September 1939

Long term causes

1. The Impact of Versailles peace treaty on Germany.

Under this treaty the Germany lost her colonies and had to pay for war reparation to the winners. This situation made Germany to demand for the lost colonies through war hence the outbreak of Second World War.

2. The economic depression during inter war period. in order to solve the problem of Great depression, some imperialist nation allied more and more in exploitation of their colonies like German, Italy and Japan had to for alternatives solutions. In this case Japan invaded Manchurio in 1931. Italy invaded Ethiopia in 1935 to 1939 while German invaded Holland and Czechoslovakia in 1939, all those moves raised the international concern hence, the outbreak of the Second World war.

3. Formation of Military alliances such as axis power and allied power greatly accelerated the war.

4. Rise of fascism and Nazism. There were ideologies developed in German (Nazism) and Italy ( fascism) prestige the Germany believed to be a superior race and wanted to control the whole world. For example Adolph Hitler (German) and be nit Muslin ( Italy ) wanted to expand their countries, they wanted to use wars in fulfilling their dreams.

5. Failure of League of Nations to defend world peace e.g. failure to prevent invasion of Ethiopia by Italy in 1935.

6. The impact of Great Economic Depression.

Unemployment, high cost of living etc. The imperialists nations replied on colonies to solve this problem so nations with no colonies as such as Germany, Italy and Japan hard to work for the alternative solutions. That is why Italy invaded Ethiopia; Germany invaded Poland Czechoslovakia, Motherlands. All these actions raised international concern hence the outbreak of wars.

7. Hitler aggressive policy for example:

1933 withdrew from League of Nations.

1935 started rearmament schemes.

1938 seized Sudetenland.

1939 invaded Poland

All this actions leads to Second World War

8. The failure of appeasement policy. This was a policy adopted by France and Britain while aimed at avoiding war with aggressive powers like Italy and Germans. The war broke because Britain and France didn’t stand against dictators in Italy and Germany.

9. Germany invasion over Poland to Spanish civil war 1936; German, Italy and Russia used the war to test their weapons and techniques.

Impacts of the second world war on Africa

1. Increase of exploitation in Africa;- Apart from introducing Agricultural schemes also they created marketing boards, increase of taxation, land alienation, intensive forced labour, low wages and long working hours. All these were applied by capitalist nations to revamp their economy that were badly affected by second world war

2. Introduction of cash production:-this was implemented differently in different areas such as The Nachingwea scheme delt with groundnuts production, the Sukuma cotton scheme was established for producing cotton all these projects were launched by capitalists in order to compensate their loss economy led by the second world war and to pay back the debts to the United states of America.

3. It contributed to the rise of Nationalism ideologies to Africans -Africans became politically conscious after the return of Ex-soldiers from war who acted as the catalyst on leading people to struggle for Nationalism as they had acquired many skills and tactic hence they had to apply them for the Liberation of their nations and fellow Africans

4. It led to the rise of USA AND USSR as the world economical powers. Both USA and RSSR played a significance role in the decolonization of Africa through different approaches for example USA propagated for Nationalism of Africa in order to get an access of exploiting Africa through Neo –colonialism while USSR on its side supported the Africa through Neo-colonialism. While USSR on its side supported the Africans freedom fighters both morally, materially and technologically, this is because USSR under socialism policy they believe on equality.

5. Fall of African economy;- this was triggered by the recruitment of Africa energetic people to war, while are the ones who were the main producers. Following the fall of African economy many African facilities collapsed and let to dependence nature economy to many African countries.

6. Depopulation of African people. The number of African people decreased since some died on the battle while fighting as recruited soldiers, some died of hunger and starvation as there total unrest during the war as producers were recruited as soldiers hence there were no production also commutable disease 

like cholera, diahorea, influenza small pox etc killed many people.