24 SOCIAL SCIENTIST At the level of macro-relations, Marx analysed the effects of technical developments on the increasing 'organic composition of capital', increasing social division of labour imposing conditions of proportionality among industries; the effects on the general rate of profits of technical improvements cheapening wage goods on the one hand and increasing organic composition of capital on the other; effects of relative immiserisation of labour on realisation of profits. In other words, attempts were made by Marx to analyse the interconnections between technical change and the process of accumulation working through primarily distributive relations. He analysed these effects on the macro-system through noting the tendencies and countci tendencies that were generated by increasing organic composition of capital, cheapening of wage goods, changing class-relations and their distributive implications, the 'anarchy' as well as growing monopoly dominance in intra-capitalist relations etc, with sharpening of internal contradictions. History and Formal Theory in Marx What is remarkable in Marx is the ingenious way in which he was able to integrate the historical experiences of the specific epoch in capitalist development with his formal analysis. His analysis, at places, was incomplete and not all his specific results/prognostications have been proved correct. Yet, his is the best example of an attempt to integrate historical changes with analysis of the macrobehaviour of the system. While analysing tendencies and countertendencies at the level of the macro-system, Marx was able, using the conceptual tools of surplus value (relative and absolute), to delve deeper into the production sphere and describe the dynamics of capital-labour relation within the labour process where the capitalist was in control. The openness of his theory of distribution (profit) allowed him to grapple with historico-specific features that entered into the determination of technical methods, the wage level and the expanding universe of commodities. Schumpeter, on the other hand, with his Walrasian (modified in his own way) theoretical framework for value and distribution, failed to inte« grate history and technical change into his formal analysis of capitalist societies, nor could he deduce rigorously the dynamic consequences of technical change. 1 P SrafFa, Production of Commodities by Means of Commodities, Cambridge, Cambridge University Press, 1960. See also among others, K Bharadwaj, Classical Political Economy and the Rise to Dominance of Supply and Demand Theories, Calcutta, Orient Longman, 1978; M Dobb, Theories of Value and Distribution, Cambridge, GHP, 1971; L L Pasinetti, Lectures on the Theory of Production^ London, Macmillan, 1977; and P Garegnani, Marx c gli Economist! classic!, Torino, Einaudi, 1981. 2 Marj: adopts this starting point in Theories of Surplus Value, I, Moscow, Progress Publishers, 1963 3 M Dobb, op cit. Also, see K Bharadwaj, "Ricardian Theory and Ricardianism", in Contributions to Political Economy, 1983. 4 M Dobb, op cit, K Bharadwaj, op cit, 1978.