Internationalization of Capital 107 slums of poverty."The savage in a cave does not feel himself a strang- er...but the cellar dwelling of a poor man is a hostile dwelling." If,instead of this perverse pattern of growth,underdeveloped coun- tries aimed at producing a bundle of basic consumption goods on a mass scale,they could increase employment and reduce the worst aspects of poverty.They could use technology that has been known for decades, and less capital per unit of output would be required because of the long production runs and standardized output.They would have little need for multinational corporations whose special advantages for the most part lie in differentiated products and new goods. The State During the Pax Americana large corporations from all countries came more and more"to see the world as their oyster,"to use the prophetic phrase of former Assistant Undersecretary of State Anthony Salomon. It is not yet theirs.Just because capitalism ideally transcends the bound- aries of the nation-state,it in no way means that it has really surmounted them.The nation-state was an integral part of the system under which capitalism grew;at this point it is seen as a barrier that limits the further growth of capital and must be overcome.However,the nation-state is a structure of power,and in order to supersede it,international capital must mobilize new power bases in its support. Multinational corporations (and their owners)are only one sector of society.They are a few hundred giants with great power,but with a heavy past and great limitations on their ability to deliver the goods. They first must battle with the smaller businesses,state bureaucracies, and colonial remnants,whose more nationalistic outlook is antagonistic to the progress of world capitalism;second,with the minority that works directly or indirectly for them,and must accept their goals and rules; and,finally,with the majority of the world's population that lies outside their sphere and is largely excluded from the benefits of"modern- ization.” The Historical Role of the State In its early days,capital allied itself with the central power of the sovereign against the feudal classes.This system,working in complex ways,helped to drive the population off the land to become a free wage labor force in the towns and cities.People became unencumbered by property in the twofold sense:they were free of feudal claims on their time and had no property of their own,and therefore had no alternative to working for others. This content downloaded from 202.120.14.154 on Mon,04 Jan 2016 03:31:29 UTC All use subject to JSTOR Terms and ConditionsInternationalization of Capital 107 slums of poverty. "The savage in a cave does not feel himself a strang￾er ... but the cellar dwelling of a poor man is a hostile dwelling." If, instead of this perverse pattern of growth, underdeveloped coun￾tries aimed at producing a bundle of basic consumption goods on a mass scale, they could increase employment and reduce the worst aspects of poverty. They could use technology that has been known for decades, and less capital per unit of output would be required because of the long production runs and standardized output. They would have little need for multinational corporations whose special advantages for the most part lie in differentiated products and new goods. The State During the Pax Americana large corporations from all countries came more and more "to see the world as their oyster," to use the prophetic phrase of former Assistant Undersecretary of State Anthony Salomon. It is not yet theirs. Just because capitalism ideally transcends the bound￾aries of the nation-state, it in no way means that it has really surmounted them. The nation-state was an integral part of the system under which capitalism grew; at this point it is seen as a barrier that limits the further growth of capital and must be overcome. However, the nation-state is a structure of power, and in order to supersede it, international capital must mobilize new power bases in its support. Multinational corporations (and their owners) are only one sector of society. They are a few hundred giants with great power, but with a heavy past and great limitations on their ability to deliver the goods. They first must battle with the smaller businesses, state bureaucracies, and colonial remnants, whose more nationalistic outlook is antagonistic to the progress of world capitalism; second, with the minority that works directly or indirectly for them, and must accept their goals and rules; and, finally, with the majority of the world's population that lies outside their sphere and is largely excluded from the benefits of "modern￾ization." The Historical Role of the State In its early days, capital allied itself with the central power of the sovereign against the feudal classes. This system, working in complex ways, helped to drive the population off the land to become a free wage labor force in the towns and cities. People became unencumbered by property in the twofold sense: they were free of feudal claims on their time and had no property of their own, and therefore had no alternative to working for others. This content downloaded from 202.120.14.154 on Mon, 04 Jan 2016 03:31:29 UTC All use subject to JSTOR Terms and Conditions