Modern capitalism did not emerge in peace—it was forged in conquest, slavery, and war. War capitalism describes the brutal system that underpinned the rise of global empires, linking state violence, private profit, and imperial control. Unlike the market-driven capitalism of later centuries, war capitalism thrived on forced labor, plundered resources, and militarized trade. It enabled unprecedented economic expansion, but only through systematic domination and exploitation. From the plantations of the Caribbean to the battlefields of Iraq, the fusion of capital and coercion has shaped the modern world. Understanding this dark foundation reveals how violence remains embedded in today’s global economy.
Introducing War Capitalism
Defining War Capitalism
War capitalism is a system where economic growth is driven by violence, coercion, and imperial control rather than free markets. It relies on the strategic use of military force, enslaved labor, and state power to create profit opportunities. Unlike classical capitalism, it doesn’t depend on voluntary exchange or competition but instead on conquest and domination. Private actors—merchants, investors, and companies—collaborated with states to extract wealth from colonized territories. This system was foundational to the rise of Western empires, creating global supply chains based on force. War capitalism laid the groundwork for modern global inequality by institutionalizing exploitation and concentrating wealth in imperial centers.
The Origins of War Capitalism
War capitalism emerged during the Age of Exploration, as European powers used military force to dominate trade and territories. The Portuguese and Spanish conquests set the precedent, but it was the British and Dutch who perfected the model. Naval supremacy, colonial violence, and monopolistic trading companies allowed Europe to control vast global networks. These empires combined private capital with state militaries to seize land, suppress resistance, and enslave populations. Plantation economies in the Americas, fueled by African slavery, became war capitalism’s core. This fusion of finance, violence, and imperialism redefined global economic structures and permanently altered the balance of power between nations.
Core Features of War Capitalism
#1. Violent Expansion and Military Force
War capitalism depends on armed conquest to open markets and secure profits. Empires invaded territories not to promote trade but to dominate it. Military campaigns destroyed resistance, dismantled local governance, and cleared the way for economic exploitation. Violence was not incidental—it was central to securing trade routes, ports, and resource-rich regions. States provided the firepower, while merchants and investors reaped the rewards. Wars created new frontiers for plantations, mines, and commercial hubs. This model established an enduring link between military aggression and economic gain. Expansion was not peaceful—it required soldiers, gunships, and strategic brutality to displace indigenous populations and install profit-driven control.
#2. Enslaved and Coerced Labor
War capitalism relied on forced labor to extract maximum profit with minimal cost. Enslaved Africans powered the plantation economies that fed global markets. Indigenous peoples were often conscripted or terrorized into labor under colonial regimes. This system turned human beings into capital assets, bought, sold, and exploited for production. Labor was not freely given; it was taken by force or under extreme coercion. The brutality of work camps, plantations, and mines ensured high output at the expense of human life and dignity. This foundation of unfree labor created enormous wealth for European powers and their investors, forming the backbone of early global capitalism.
#3. Private Power Backed by the State
Private capitalists expanded global influence through state-sponsored violence and legal authority. Merchants and trading companies didn’t act alone—they operated with official licenses, military escorts, and legal immunity. The state provided warships, soldiers, and political cover for private ventures abroad. Chartered companies like those trading in Asia or the Americas effectively became arms of empire. They raised armies, waged wars, and governed colonies while funneling profits back home. This fusion of state violence and private gain blurred the lines between commerce and imperialism. Profit and power were mutually reinforcing, enabling unchecked exploitation in the name of national prestige and economic growth.
#4. Control of Strategic Trade Routes and Ports
War capitalism prioritized seizing and securing chokepoints in global trade. Naval empires used military power to dominate seas, straits, and port cities. Whoever controlled these nodes controlled global commerce. These locations were not just transit points—they were sources of taxes, customs revenue, and monopolized trade. Fortified ports served as military bases and commercial hubs. European powers systematically displaced local traders and enforced their own terms of exchange. Control meant exclusion—blocking rivals, redirecting trade flows, and ensuring dependency. This strategic domination enabled small imperial powers to exert oversized economic influence by bottlenecking movement of goods, people, and capital around the world.
#5. Resource Extraction from Colonized Lands
Colonial conquest under war capitalism focused on stripping natural resources for export. Imperial powers turned conquered territories into extraction zones. Forests, minerals, spices, sugar, cotton, and rubber were harvested for external markets. Local needs were ignored. Infrastructure like roads and ports were built not to serve local populations but to accelerate resource flow to metropoles. Agricultural patterns were restructured to feed distant economies, creating dependency and food insecurity. Extraction was often destructive, leaving environmental ruin and depleted ecosystems. Colonized lands became raw material suppliers, locked into subordinate roles in global trade. This asymmetry solidified imperial dominance and global economic hierarchy.
#6. Suppression of Local Economies and Autonomy
War capitalism dismantled indigenous economies to ensure dependency on imperial systems. Traditional industries, crafts, and trade networks were intentionally disrupted or destroyed. Colonial authorities imposed taxes payable only in foreign currency, forcing locals into wage labor. Legal systems criminalized self-sufficiency and restricted native enterprise. Markets were flooded with cheap imports, undermining local producers. Infrastructure investment favored extraction and export, not local development. This economic sabotage made colonies reliant on foreign goods, capital, and governance. Suppressing autonomy wasn’t just political—it was economic strategy. It locked colonized peoples into exploitative roles, ensuring long-term control by disabling the capacity for independent growth.
#7. Global Inequality as a Product and Tool
War capitalism produced global inequality and then used it to maintain dominance. The system transferred vast wealth from colonies to imperial centers, creating sharp divisions in global prosperity. These disparities weren’t accidents—they were engineered. Unequal trade terms, labor exploitation, and coercive governance ensured profits flowed upward. Once inequality existed, it justified further control. Imperial powers argued colonized regions were “underdeveloped” and needed guidance, reinforcing dependency. Financial systems, trade laws, and development models were shaped to protect elite interests. Inequality became both the outcome and rationale for continued exploitation, making global poverty a structural feature of the capitalist order, not a temporary imbalance.
#8. Fusion of Capital, Violence, and Empire
War capitalism represents the merging of economic ambition, militarized force, and imperial rule. It was not a transitional phase—it was foundational to modern global capitalism. Profit motives drove violence, and violence enabled profits. Empires built global networks not through free trade but through coercion. Capitalists gained global reach by riding on the back of conquest. The state empowered private enterprise with guns and governance. The results were systemic: enduring inequality, dependency, and geopolitical power concentrated in the hands of a few. This fusion shaped the world economy and continues to influence how resources, labor, and power are distributed today.
War Capitalism Through History
Empire-Building and the Economics of Slavery
Slavery was central to the economic architecture of early empires under war capitalism. European powers used enslaved labor to build profitable plantation economies in the Americas and the Caribbean. This system enriched imperial centers through the extraction of sugar, cotton, tobacco, and other commodities. Millions of Africans were forcibly transported, generating capital for banks, shipping companies, and merchants. Slavery was not separate from capitalism—it was its engine. The profits from human bondage financed industrial expansion and shaped modern financial institutions. Colonies became profit machines, operated through racialized violence and legal systems designed to perpetuate ownership. This brutal economic model sustained empires and globalized exploitation.
Industrial Capitalism and the Legacy of War
War capitalism laid the foundation for industrial capitalism by providing capital, markets, and raw materials. The wealth generated through slavery and empire funded the infrastructure of industrialization in Europe. Cotton from forced labor fed British textile mills, while profits from colonies financed railroads, factories, and banks. Colonial markets were locked into buying finished goods, deepening economic asymmetry. Industrialization did not replace war capitalism—it evolved from it. While slavery declined, new forms of labor exploitation rose. Empire remained essential for securing raw materials and suppressing competition. The industrial age masked its violent roots under the guise of progress, but the legacy of war remained embedded in its structure.
The Rise of the Military-Industrial Complex
The military-industrial complex institutionalized profit-driven war as a permanent economic engine. After World War II, defense spending became central to major economies, especially in the United States. Governments funneled massive funds to private arms manufacturers, research labs, and contractors. Permanent standing militaries, global bases, and high-tech weapons created a constant demand cycle. War became economically rationalized—not just as defense, but as industry. Political decisions increasingly aligned with corporate interests tied to defense. This model blurred lines between national security and profit-making, making war an ongoing business. The legacy of war capitalism continued through institutional partnerships between governments and powerful corporations.
Modern Warfare and Corporate Profiteering
Modern wars generate vast profits for private entities through contracting, reconstruction, and logistics. In recent conflicts, private companies have supplied everything from weapons to food, security, and infrastructure. Governments outsource critical war functions to firms seeking high returns, not stability. War zones become markets—disaster areas turned into business opportunities. Corporate lobbying influences policy decisions, including when and where to intervene militarily. The cycle of destruction and reconstruction becomes a revenue stream. This commodification of conflict aligns directly with the logic of war capitalism: violence as an economic tool. Modern wars are less about ideology or security and more about securing access, influence, and returns.
Case Studies: From Iraq to Ukraine
The U.S. Invasion of Iraq and Corporate Profiteering
The Iraq War opened large-scale profit channels for private companies embedded in military operations and reconstruction. Logistics, infrastructure rebuilding, fuel delivery, and security services were outsourced to firms operating under government contracts. These companies saw rapid revenue growth from wartime activities, often without competitive bidding or full accountability. Contracts ballooned even as project outcomes remained questionable or incomplete. Wartime destruction created new markets for rebuilding, supply chains, and resource management, all monetized under the guise of stabilization. The war’s chaos enabled high-margin operations in dangerous zones. Iraq became a textbook case of war capitalism, where state-sponsored violence directly enabled private enrichment.
Afghanistan and the Rise of Private Military Contractors
Afghanistan became a testing ground for outsourcing core military and security functions to private actors. Contractors played increasingly central roles in battlefield support, intelligence gathering, and armed operations. This privatization blurred lines between official military action and commercial interest. The scale of private involvement grew as traditional forces faced logistical and operational limits. With high daily costs per contractor, the financial incentive for prolonged engagement escalated. These firms operated under looser rules of engagement, complicating accountability. Afghanistan revealed how modern war zones could be operated through corporate networks, converting conflict into continuous business. Profit, not just policy, shaped the conduct and duration of war.
The War in Ukraine and the Military-Industrial Complex
The Ukraine conflict reignited massive demand for advanced weapons, surveillance systems, and logistical support, boosting defense sector profits. Countries expanded military budgets in response to regional instability, directing substantial funds toward equipment, ammunition, and training. Arms manufacturers scaled up production, anticipating long-term demand from both Ukraine’s defense needs and the rearmament of allied states. Procurement deals accelerated, often bypassing normal deliberative processes. This urgency allowed defense firms to lock in multi-year contracts, embedding war into national economic strategies. Ukraine highlighted how conflict revitalizes the military-industrial complex, reaffirming the old logic of war capitalism—violence as a lever for economic expansion and global influence.
Closing Thoughts
War capitalism is not a relic of the past—it is a persistent force shaping modern global dynamics. From its roots in slavery and empire to its evolution in today’s military-industrial networks, it reveals how violence and profit remain deeply intertwined. Recognizing this system allows us to question the real drivers of conflict, inequality, and economic power. It challenges the myth that markets alone drive progress. Instead, it forces a reckoning with the historical and ongoing role of coercion in global capitalism. Understanding war capitalism is essential to imagining a more just and equitable international economic order.