State monopoly capitalism

The theory of state monopoly capitalism was initially a Marxist doctrine popularised after World War II. Lenin had claimed in 1916 that World War I had transformed laissez-faire capitalism into monopoly capitalism, but he did not publish any extensive theory about the topic. The term refers to an environment where the state intervenes in the economy to protect large monopolistic or oligopolistic businesses from competition by smaller firms.

State monopoly capitalist theory aims to define the final historical stage of capitalism following monopoly capitalism, consistent with Lenin's definition of the characteristics of imperialism in his short pamphlet of the same name.

Occasionally the concept also appears in neo-Trotskyist theories of state capitalism as well as in libertarian anti-state theories. The analysis made is usually identical in its main features, but very different political conclusions are drawn from it.

The main Marxist–Leninist thesis is that big business, having achieved a monopoly or cartel position in most markets of importance, fuses with the government apparatus. A kind of financial oligarchy or conglomerate therefore results, whereby government officials aim to provide the social and legal framework within which giant corporations can operate most effectively.

This is a close partnership between big business and government, and it is argued that the aim is to integrate labor-unions completely in that partnership.

Different versions of this idea were elaborated by economists of the Communist Party of the Soviet Union (e.g., Eugen Varga), East Germany's Socialist Unity Party, the French Communist Party (e.g., Paul Boccara), the Communist Party of Great Britain (e.g., Ben Fine and Laurence Harris), and the American Communist Party of the USA (e.g., Victor Perlo).

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