Impact of capitalism on nationalism

IN my humble understanding, it’s undeniable that capitalists dominate the modern world, both economically and politically.

Even capitalists themselves remain uncertain whether capitalism harmonises with nationalism.

While a robust economic system is essential for any state's growth, nationalism faces significant threats under capitalism.

The capitalist system is meticulously designed to make the rich richer and the poor poorer. Regardless of the arguments, this remains the reality.

Capitalists have acquired their wealth and knowledge at the expense of the poor and middle classes.

Calling them ‘bloodsuckers’ may seem harsh, but it reflects today’s reality, where the capitalists exploit the labour of the poor.

Just consider the practices of banks worldwide.

Writing about capitalism and nationalism without delving into history and academic research would be unproductive. Let us explore how literature can illuminate this discussion.

Different theorists have offered varied perspectives on nationalism.

Clifford Geertz posited that nationalism stems from ancient, deep-seated bonds of kinship, ethnicity, and shared history, viewing national identity as a natural, immutable characteristic. Conversely, modernists argue that nationalism is a product of modernity and industrial society. Ernest Gellner theorised that the rise of the modern state and the need for a unified culture for economic and administrative efficiency fostered nationalism.

Yuval Noah Harari, in ‘21 Lessons for the 21st Century,’ questions why, in an era where humanity forms a single civilisation facing common challenges, Britons, Americans, Russians, and others gravitate towards nationalistic isolation.

Negri and Hardt (2000) suggest that if capital disregards national borders, this should highlight the transgressive and transnational power of migrants and the labour movement. Capital’s international operations are a response to these forces.

One significant impact of capitalism on nationalism is economic inequality. Capitalist economies often suffer from wealth and income disparities. When a large portion of the population feels left behind, social unrest can arise, fueling populist nationalism.

George Orwell, in ‘The Road to Wigan Pier,’ aptly notes, "But it is a world in which to be poor and to be sick are almost synonymous. And if it is true that a capitalist society, taken as a whole, is healthier and more productive than a feudal one, this is a long way from saying that it is healthy."

In my view, the capitalist system is unhealthy. It is akin to a body where one part is robust and healthy, while the other part is weak and ailing. The healthy part continually destroys the unhealthy part until it vanishes.

If a country under capitalism fails to distribute wealth and resources fairly, people will migrate elsewhere in search of basic sustenance. Would anyone leave their homeland if they could thrive there? Certainly not. This is a glaring negative impact of capitalism on nationalism.

Examining economic inequality and populist nationalism reveals that populist leaders often exploit economic grievances, blaming globalisation and foreign entities for domestic issues. This rhetoric fuels nationalistic sentiment, positioning the nation against perceived external threats. The rise of populist nationalism in various countries is a reaction to the inequalities and insecurities created by global capitalism.

Brexit is a prime example of this dynamic.

Many Brexit supporters argued that the European Union’s regulations and economic policies infringed on the United Kingdom’s sovereignty. The campaign tapped into nationalistic sentiments, emphasising the need to ‘take back control’ from global institutions perceived as undermining national autonomy.

The impact of capitalism on nationalism is multifaceted, marked by both synergy and tension. While capitalism can drive economic growth and national pride, it can also exacerbate economic inequalities, challenge national sovereignty, and dilute cultural identities.

The interplay between capitalism and nationalism continues to shape global politics, with profound implications for social cohesion, economic policies, and international relations.

Mohammed Anwar Al Balushi

Academic Lecturer and Advisor,

Oman College of Management and Technology