ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Development Banking An Intimate View

 a violation of the law of value. In any case, let us try to understand his reasoning. 'Does the Marxist theory of ground rent apply to the sphere of mining?' He thinks not, for "mining presents some obvious special features". The first of these is the non- renewability of the resources to be exploited. Mining capitalists therefore must be sure to put aside an amount sufficient to enable them to continue their activities, at the same rate of profit, when the mines they are working become exhausted. Thus, the mining capitalists devote part of their apparent gross profit (actually, this part is a cost) to exploration for new reserves, both in the area conceded to them and elsewhere. The second specific feature of mineral production is of a historical order. Mineral production appears and develops wth the development of captalism, whereas agricultural production pre-dated capitalism. Amin now puts forward a class-struggle-theory of mining rent. As the bourgeoisie of the Third World took shape as a class, and it embarked on the path of import substituting industrialisation, it demanded mining rent, and thus rent entered into the international price structure. Previously, when bourgeoisie was practically non-existent, and when imperialism was in alliance with the landlords in the Third World, there was no mining rent, but only ground rent. "In short, mining rent emerges because Algeria and Iran are industrialising themselves (even if only in a dependent way), and not vice versa"

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