MULTILATERAL IMPERIALISM 59 October Revolution of 1917 as the first big blow against imperialism. And let us add to it: since then the ever increasing and strengthening socialist part of the world is progressively rolling back imperialism on all continents of our world. Since 1917 imperialism is no more an expanding system. On the contrary, it shrinks as a result of two main developments which are closely interlinked: 1) The emergence of a new type of society, namely, socialism, in more and more countries (the Soviet Union, Eastern Europe, China, Indochina, Cuba, Angola, Mozambique, and so on); 2) the decolonization process, stepped up in the fifties and sixties, which lias weakened the world imperialist system, even though up to now it has often resulted in neo-colo-nialism. The Cause of Imperialist Economy To Nabudere it is clear that imperialism can be explained only in terms of international dimension and the shape of capitalist development. Therefore, it is of the outmost importance to establish clearly the laws of capitalist political economy. Time and again it is stressed by the author that the most important law of the political economy of capitalism discovered by Marx is the law of the tendency for the rate of profit to fall. According to some neo-Marxists like Baran and Sweczy this law is not valid any more. In their opinion modern imperialism is necessary not because the rate of profit should tend to fall, but exactly because it does not fall. Therefore, the real problem is one of absorption of surplus and profit. This absorption can be achieved only through a) consumption, b) investment and c) waste. Nabuderc rightly criticizes these theories by pointing out that the real problem is not one of surplus absorption, but one of surplus-value realization (p 175). Because of the continuous change in the organic composition of capital in favour of constant capital the rate of profit cannot but shrink, for the only production factor capable of creating surplus value is the labour force, that is, the variable capital. He recognizes that there are some tendencies counteracting this law, created by the monopolies and by the trans-formation of a growing part of the national income through the modern imperialist state into a source of extra profit for monopoly capital, mainly in the form of military purchases. Therefore > monopoly capital not only does increase the exploitation of labour by raising productivity, but exploits as well all consumers (p 176) • But clearly, this process cannot go on; it is of a temporary c haracter.