Sven Beckert Unveils Capitalism’s Complex Global History

Sven Beckert’s new book, *Capitalism: A Global History*, presents an extensive examination of the economic system that shapes modern life. Spanning nearly a millennium, this ambitious work explores the often-overlooked connections between wealth and suffering, underscoring how capitalism has transformed societies around the globe.

In the 17th century, the Peruvian city of Potosí claimed to be the “treasure of the world,” producing an astonishing 60% of the world’s silver. This wealth not only fueled Spain’s military ambitions and paid off debts but also played a significant role in the economic development of India and China. While the city’s elite indulged in luxury goods from Europe and beyond, the plight of indigenous miners was dire, with one in four perishing in the harsh conditions of the Cerro Rico mine, which came to be known as “the mountain that eats men.”

Beckert, a Harvard history professor and author of the acclaimed *Empire of Cotton*, challenges the traditional Eurocentric narrative surrounding capitalism. He asserts that capitalism is not merely a product of democracy and the Enlightenment but a complex system deeply rooted in power dynamics, violence, and state influence. He describes capitalism as “the ceaseless accumulation of privately controlled capital,” arguing that understanding it requires a broader perspective than that offered by its proponents.

The term “capitalism” itself emerged in France during the 1840s, but the system predates this designation by centuries. Beckert traces capitalism’s evolution back to the bustling port of Aden in 1150, which served as a crucial trade hub between Asia and the Middle East. Here, merchants developed practices such as accountancy and insurance, laying the groundwork for what Beckert describes as a “capitalist archipelago.” Despite their wealth, these early capitalists lacked the political power or prestige granted by state endorsement.

The period known as the “Great Connecting,” from 1450 to 1650, marked a pivotal transformation in capitalism. The discovery of the Americas allowed European traders to carve out new markets, establishing a system of “war capitalism” where trade routes were secured through conflict. Colonialism further intertwined capitalism’s fabric, promoting a “connected diversity” that led to both local exploitation and global interdependence.

Sugar and silver became key commodities that reshaped economies and societies. On the island of Barbados, a mere 74 sugar planters leveraged resources from the Americas, labour from Africa, and capital from Europe to create a private slave colony. This exploitative model reflected a broader trend, as millions of enslaved individuals across the Americas represented vast sums in unpaid labour.

Beckert skillfully dismantles the romanticized notions surrounding capitalism. He critiques the idea of the free market as a construct of intellectuals, revealing how the Protestant work ethic was manipulated to justify child labour and exploitative practices abroad. He cites the infamous Belgian King Leopold II, who rationalized the forced labour of millions in the Congo Free State as a means to instil a “sanctity of work.”

Despite its brutal foundations, capitalism has shown remarkable resilience. Beckert notes that many observers, including Karl Marx and economist Joseph Schumpeter, predicted its demise. Yet, capitalism has continually adapted, proving to be both dynamic and unstable. This duality is reflected in its “permanent revolution,” which brings about periods of crisis alongside unprecedented growth.

After World War II, the economic landscape shifted, with figures like John Maynard Keynes advocating for state intervention to mitigate capitalism’s destructive tendencies. This period saw significant growth and relative equality, often characterized as “capitalism with a human face.” However, Beckert argues that the rise of neoliberalism has led to a commodification of every aspect of life, pushing capitalism toward an existential crisis.

The scope of Beckert’s research is extensive, covering diverse locations such as Barbados, Samarkand, and Phnom Penh. He references cultural texts and profiles influential figures, from the wealthy merchant Jakob Fugger to Chile’s General Pinochet, illustrating the multifaceted impacts of capitalism.

While Beckert effectively highlights the negative aspects of capitalism—ranging from scientific racism to environmental degradation—he leaves some questions unanswered. He acknowledges the system’s capacity to generate longer life spans and higher living standards, yet often presents it as an unrelenting force of exploitation. This perspective risks oversimplifying the complexities of economic systems throughout history.

In *Capitalism: A Global History*, Beckert presents a narrative that is both compelling and daunting. He frames his work as an “actor-centred history,” emphasizing the human elements behind capitalism’s evolution. Yet the portrayal of capitalism as an insatiable monster raises critical questions about its inherent nature.

Published by Allen Lane in March 2023, Beckert’s comprehensive study challenges readers to reconsider the economic systems that govern their lives, urging a deeper understanding of capitalism’s intertwined legacy of progress and suffering.