The fact that the wage level in the capitalist sector depends upon earnings in the subsistence sector is sometimes of immense political importance, since its effect is that capitalists have a direct interest in holding down the productivity of the subsistence workers. Thus, the owners of plantations have no interest in seeing knowledge of new techniques or new seeds conveyed to the peasants, and if they are influential in the government, they will not be found using their influence to expand the facilities for agricultural extension. They will not support proposals for land settlement, and are often instead to be found engaged in turning the peasants off their lands. Cf. Marx on “Primary Accumulation.” This is one of the worst features of imperialism, for instance. The imperialists invest capital and hire workers; it is to their advantage to keep wages low, and even in those cases where they do not actually go out of their way to impoverish the subsistence economy, they will at least very seldom be found doing anything to make it more productive. In actual fact, the record of every imperial power in Africa in modern times is one of impoverishing the subsistence economy, either by taking away the people’s land, or by demanding forced labour in the capitalist sector, or by imposing taxes to drive people to work for capitalist employers. Compared with what they have spent on providing facilities for European agriculture or mining, their expenditure on the improvement of African agriculture has been negligible. The failure of imperialism to raise living standards is not wholly to be attributed to self-interest, but there are many places where it can be traced directly to the effects of having imperial capital invested in agriculture or in mining.
W. Arthur Lewis