Industrial Capital, Development and Marxism View BACKFACE OF INDUSTRIAL CAPITAL *Industrial capital became clearer to people after industrial revolution that was first held in Europe depending England in 1860. *Though the term capital started to be focused after French revolution to modernity, it had been used practically after industrial revolution in England. MARX VIEW TO INDUSTRIAL CAPITAL industrial capital comprises all the branches of industry run on a capitalist basis implies the class antagonism between capitalists and wage-laborers

1. WELCOME
TO OUR PRESENTATION

2. INDUSTRIAL CAPITAL
AND
UNDERDEVELOPMENT

3. Industrial Capital, Development and
Marxism View
BACKFACE OF INDUSTRIAL CAPITAL
*Industrial capital became clearer to people after industrial
revolution that was first held in Europe depending England in
1860.
*Though the term capital started to be focused after French
revolution to modernity, it had been used practically after
industrial revolution in England.
– MARX VIEW TO INDUSTRIAL
CAPITAL
– industrial capital comprises
all the branches of industry
run on a capitalist basis
– implies the class
antagonism between
capitalists and wage-
laborers

4. Industrial Capital And Development
World Bank, 1994
role of capital in development
completely depends on capital and
social mobility
WB clears that all types of progress,
prosperity and development depend on
that capital in large context
infrastructure development broadly
depends on human development
The dominant elements in the public sector
of a country is capital stock that tends to be
existed to infrastructure such as
roads
telecommunications
Energy
hospitals
schools
above mentioned elements and their functions
depend on capital.

5. DIFFERENT COMPOSITIONS OF
CAPITALS IN MARXISMConstantCapital
• the part
of capital
that
purchases
material
means of
productio
n the part
of
advanced
capital
that does
not
expand its
value in
productio
n
Variablecapital
• By
“variable
capital”,
Marx
meant
that
proportio
n of
capital,
which is
invested
in wages,
in the
purchase
of labour-
power.
Fixedcapital
•the
productive
capital whos
e value does
not circulate
completely
with an
individual
commodity
product, but
that rather
spreads its
value over
many
products
Circulatingcapital
•to the
productive
capital whos
e whole
value is
incorporated
in and
circulates
with
individual
commodity
products;
capital
invested in
raw
materials,
auxiliary
materials,
and labor-
power.
OthersConcepts
•Commodity capital
refers to
the industrial
capital in the form of
produced
commodities
awaiting sale.
•Capital advanced
refers to the amount
of money that a
capitalist must layout
for labor-
power and means of
production
•Capital employed
refers to the amount
of productive capital

6. THEORY OF SURPLUS-VALUE
Marx’s theory of surplus value is the circulation of capital, expressed
symbolically as:
M - C ... P ... C’ - M’
Where M’ = M + M.
We can see that the full the circulation of capital consists of three
phases:
The purchase of means of production and labor-power
The production process, and
The sale of commodities.

7. The composition of capital has two aspects
– THE VALUE COMPOSITION
– Value composition of capital refers
to 'the proportion in which it [i.e.
capital] is divided into constant
capital or value of the means of
production, and variable capital or
value of labour power, the sum
total of wages'
– THE ORGANIC COMPOSITION
– The “organic composition of
capital” is the ratio of the value of
the materials and fixed
costs embodied in production of a
commodity to the value of
the labour-power used in making it.

8. THE EFFECT OF
TURNOVER ON
THE RATE OF
PROFIT •Because the turnover of
capital includes a period
of circulation, an
additional advance of
circulating capital is
required for production to
continue during the time
of circulation
1
•During its turnover,
circulating capital
frequently exists in money
form, waiting to be
exchanged for labor-
power, raw materials, and
auxiliary materials.
2
Rate of profit means the ratio
of surplus value to the sum
of constant and variable capital.
Turnover time determines the
duration of the circuit
of industrial capital. Turnover
time, we know, consists of
production time and
circulation time
Marx demonstrates

9. UNDERSTANDING ADAM SMITH’S ANALYSIS
capital in this phase stay on moving when it is in
circulating mood rather than in production mood.
For example, A machine is considered as fixed capital,
and the labor power is a part of circulating capital,
because the machine is bought once and for all which
is not in fact the case when it is paid for by
instalments, while the worker is not, but rather that the
labor that the worker expends enters entirely into the
value of the product, while the value of the machine
enters bit by bit.

10. MARXIST ANALYSIS OF FIXED AND
CIRCULATING CAPITAL
Labor the only equipment of production
which is produced for home necessity and
export embodies highly mechanized
techniques. In other view, the adoption of
techniques or methods of production are
not suited to their local requirements that
is imposed the underdeveloped world.
In other views, the situation in many
underdeveloped countries where
industrial output speeds ahead with a
growing section of the population who
left in dire for needs and poverty that is
one more expression of the absurdity of
accumulation as a principle of social
organization.

11. Understanding Accumulation and Employment
Current Employment and Long Term
Employment
This two aspect of employment are basically called
such as
1. Current employment: In relation to the ratio
of the working periods of constant and variable
capital, the higher the long-term employment,
the lower the current employment
2. long-term employment: On the other hand the
more the current employment the less the long-
term employment.

12. THE RATE OF SURPLUS VALUE
INCREASE
the production at the disposal of
its labor force, both by
increasing this very absolutely
and by reducing the number of
workers in current employment.
To disposal workforce to
increase high degree of
mechanization the surplus value
is increased

13. RELATIONSHIP
BETWEEN
UNEMPLOYMENT AND
JOB SEEKING
Determination of the Natural
Rate of Unemployment:
I. Availability of job information: A factor in
determining frictional unemployment and
how quickly the unemployed find a job.
II. The level of benefits: Generous benefits
may discourage workers from taking jobs
at the existing wage rate.
III. Skills and Education: The quality of
education and retraining schemes will
influence the level of occupational
mobilities.
IV. Flexibility of the labour market: E.g.
powerful trades unions may be able to
restrict the supply of labour to certain
labour markets
The natural rate of unemployment is
the difference between those who
would like a job at the current wage
rate – and those who are willing and
able to take a job.
It is the level the natural rate of
unemployment is unemployment
caused by supply side factors rather
than demand side factors

14. Understanding the Major Causes of Unemployment
rapid growth of
population
the lack of
proper
policymaking
and
implementation.
Long-term
colonialization
Geoffrey Key has identified many causes behind the
unemployment problem. Those are
Dearth food
production
Corruption in
every stages of
the society
Lack of proper
education and
technological
training

15. THANK
YOU!