To What Extent Was The South African War (1899 - 1902) A Capitalist War

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Izzy Sanders 13A        Personal Study - History

To what extent was the South African War (1899 - 1902) a capitalist war?

Throughout history the study of the causes of conflict has often been found more interesting that the results.  The South African War (also referred to as the Boer War) was particularly fascinating for the amount of contestation over its beginnings.  The difficulty it understanding how the Boer War began could be down to its nature as a war of the Empire, making Britain’s role in it a slightly touchier subject and harder to make more facts known.  The almost conspiratorial confusion surrounding the origins of the South African War has led many individuals from contemporary to recent years to comment upon it; from the economist J. A. Hobson and Bolshevik leader Lenin to historians Iain Smith and A. N. Porter.          

In examining whether the South African War could be described as a capitalist war it is important to outline the various forms of capitalism that can be taken into account.  The first is that of the external forces: the war was primarily fought with the capitalist priorities of the British government in mind (particularly over South Africa’s vast mineral resources).  The second is that the South African War was fought domestically between the capitalist mine owners, the British-owned, South African press and the independent Afrikaner (Boer) Republic.  The argument on the origins of the South African War explores imperialism.  This argument states that the South African War was a way of extending the influence of the British Empire via the destruction of Boer independence and the protection of British Uitlander interests outside of the Cape Colony.

The discovery of rare minerals has been a major natural resource and economic boon to South Africa owing to their power on the global market, which remains significant through to present day South Africa.  It was for this reason that the discovery of gold on the Witwatersrand (Transvaal) in 1886 and subsequent mining activities had such a vast impact upon the economy and society of South Africa.1 In fact, the seams of gold were so extensive and rich that the discovery eventually led to the construction of Johannesburg, the largest urban municipality in Southern Africa and the centre of the gold mining trade.  Such was the abundance of the Witwatersrand gold that by 1897 it's financial output totalled some £10,583,616 per annum.2 Compare this to the previous competitors at Barberton or Lydenburg in South Africa and not one of them could come close to these sorts of figures.  J.A Hobson further stated that ‘No one, however, believes that any gold-field comparable, either in richness or in reliabileness, to the Rand is likely to be established in Rhodesia or elsewhere.’  Such was the strength of the Witwatersrand goldfields that the independent state of the Transvaal went from having a relatively tenuous hold on the global market to being the single largest producer of gold in the world by 1898 (accounting for 27% of global gold production) 3, even outstripping diamonds (which had been discovered in 1870 in Kimberly) as South Africa’s most profitable export.  The enormous strength of the Transvaal economy through the pre-existing diamond mines, fledgling gold fields and the discovery of coal caused a dramatic shift of power away from the British-held Cape, to the Afrikaner north.  However, this prodigious amassing of economic and political power towards the Boer-held Transvaal, it could be argued, was not as auspicious as it seemed to be.  As Paul Kruger, the President of the Transvaal stated, ‘Instead of rejoicing you would do better to weep, for this gold will cause our country to be soaked in blood’.

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        As the Transvaal was becoming such a focus of economic power, it is important to remember that for many years Britain had been and remained the strongest commercial power in the world, owing much of it’s capital supremacy to the strength of the pound sterling.  Yet the strength of sterling was, in turn, index linked to the gold standard, so whoever commanded the gold, dominated the market.  The discovery of gold in the Transvaal in the 1890’s led to a sharp revision in the global order of power.  This turbulence in the market can be demonstrated by the number of ...

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