UNIVERSITY OF NAIROBI

SCHOOL OF LAW

Course Title: Social Foundation

Course Code: GPR3104
GROUP 35
GROUP MEMBERS
1.Freddie Mbira-GPR3/148280/2024
2.Mghoi Margaret samba -GPR3/148680/2024
3.Warui Mercy Wanjiru-GPR3/148677/2024
4.Ishwaaq Abdiwahab-GPR3/149143/2024
5.Felix Rugeiyamu Gitau- GPR3/147910/2024
6.Susan Wambui -GPR3/148840/2024
7.RUBBY MULA OWITI-GPR3/148920/2024
8.Owen Oduor Odhiambo -GPR3/148999/2024
9.Abdirahman Osman Maalim -GPR3/148864/2024

Introduction

Understanding Economic Structure through Marxist Theory

When we talk about economic structure, we are basically referring to the backbone of
any society. It’s the system that determines how things are produced, how labour is
organized, and how wealth or resources are distributed. It shapes how people relate to
each other economically, and in most cases, even socially and politically. This
includes the modes of production like agriculture, industry, or services, relations of
production like who owns what and who works for who, and the general economic
system like capitalism, socialism, or communism. In simpler terms, the economic
structure sets the rules of the game in a society. It decides who gets what, who works,
and who profits.
To unpack this further, we need to look at it through a Marxist lens. Karl Marx, a
19th-century philosopher and economist, came up with a theory that sees the economy
as the foundation of society. He argued that the economic base, which includes the
forces and relations of production, determines the superstructure. The superstructure is
made up of politics, law, culture, ideology, and institutions. This relationship is what
is often referred to as base and superstructure. According to Marx, the base is what
drives everything else.
This brings us to historical materialism, another key Marxist idea. This is basically the
theory that all historical change is rooted in material conditions, not ideas or religion
or morals. So, when the way people produce and relate to each other economically
changes, like from feudalism to capitalism, it transforms the entire society. It’s not
that ideas don’t matter, but Marx believed that ideas are shaped by the material reality,
not the other way around. In short, economic conditions are the main driver of human
history and societal change.

Understanding capitalism from a Marxist perspective is important because it helps us

see through the everyday justifications we are given for inequality and exploitation.
Under capitalism, the means of production like factories, land, machines are owned
privately, and the majority of people, meaning the working class or proletariat, have to
sell their labour to survive. Marx saw this relationship as exploitative. Workers
produce value, but they only get a wage, while the owners, also known as the
bourgeoisie, get the profit. This exploitation is not a mistake in the system. It is the
system.

Furthermore, capitalism doesn’t just create wealth. It also creates class divisions.
These classes are not just economic. They shape people’s access to power, education,
healthcare, and influence. And according to Marx, these class structures are the root of
conflict in capitalist societies. So when people fight for better wages, housing, or
healthcare, they are often unknowingly fighting against the economic structure itself.
This is why Marx called for a revolutionary transformation. He believed society
needed to move from capitalism to socialism, where the means of production are
owned collectively, and eventually to communism, where there are no classes at all.

In this paper, we will break down the main elements of the capitalist economic
structure using Marxist thought. We will examine the modes of production, look into
how labour relations are formed and maintained, assess the dynamics of different
economic systems, and finally analyze how social classes emerge and operate within
this framework. Concepts like base and superstructure, historical materialism, and
Marx’s general worldview will guide our understanding of how capitalism works not
only as an economic system, but also as a powerful force that shapes every other
aspect of society.
By approaching capitalism through a Marxist lens, we can better understand the
hidden forces behind wealth and poverty, power and powerlessness, and why certain
groups continue to benefit while others are left behind. It’s not just about economics.
It’s about how society is built, and why.

Modes of Production
The marxist theory provides a critical view for analysing capitalism,
emphasizing the role of economic systems and class struggles. Under
this analysis we will explore how modes of production, private property
and class relations form the base foundation of capitalism and in
contrast with feudalism and socialism.

1) Modes of production in capitalism

In the marxist theory the mode of production consist of the forces of
production which include labour, tools and the resources needed and
also the relations of production which consist of the social relationships
around production.
The mode of production is characterized by private ownership of the
means of production that consist of entities like factories, land and
technology. This means that the capitalist class owns the means of
production while the working class is responsible for production.

2) private ownership of the means of production.

Capitalism is primarily defined by the seperation of workers from the
owners, this means that wealth accumulates in the hands of the
capitalist class but not so much on the working class which results to
class divisions.
The surplus value - This means that the profits made by capitalists from
from paying workers less than the value of what they produce was a
key factor to the formation of classes.
 3) Contrasts with feudalism and socialism
Feudalism is primarily based on hereditary ownership an example is the
land controlled by lords and labour is provided by the servants the
relations here are fixed.
Socialism on the other hand aims to eliminate class distinctions through
collective ownership and democratic control over the means of
production.
Unlike capitalism, socialism seeks equal distribution and the end of
expliotation of the working class.

4) Class structures and labour relations.

The working class here produce the goods while the capitalists
appropriate the surplus value. In a capitalist context rent bacomes a
form of surplus extraction. In mordern times the CEO and majore
shareholders gain from worker’s labour without being directly involved
in the production.

In conclusion it can be said that the marxist theory illustrates that

capitalism is driven by the pursuit of profits that are maintained
through class exploitation . This stracture influences how resources are
distributed and how social classes are formed and kept alive

Labour Relations and Alienation

1. Wage Labour:
The defining feature of labour under capitalism is wage labour.
Workers do not own the tools, factories, land, or other resources
necessary to produce goods or services. To earn a living, they must
sell their labour power – their capacity to work – to an employer.
The wage is the price of this labour power, determined (though often
unevenly) by the forces of supply and demand in the labour market.
Factors like the number of available workers, the skills they possess,
and the demand for labour in specific industries influence wage
levels.
 2. Separation from the Means of Production:
Workers are separated from the means of production. They do
not own the equipment or resources they use in their work. This
separation is a defining characteristic that distinguishes capitalism
from previous economic systems where workers often owned their
tools or land.
3. The Goal of Profit:
Capitalists hire labour with the primary goal of generating profit. They
aim to produce goods or services that can be sold for more than the
cost of production, including wages. This profit motive drives the
organization of work and the decisions about what and how things
are produced.
4. The Labour Process:
The capitalist organizes and controls the labour process. They
decide how work is done, the pace of work, and the division of tasks.
Workers typically follow instructions and perform specific tasks
within a larger production process that they do not control.
5. Potential for Exploitation:
Critical perspectives, particularly Marxist theory, highlight the
potential for exploitation in the capitalist labour relationship. This
perspective argues that workers create more value through their
labour than they receive in wages. The difference, known
as surplus value, is appropriated by the capitalist as profit.
Even without adhering to a strict Marxist view, it's evident that an
inherent power imbalance exists between employers (who have
capital and the ability to hire or not hire) and individual workers
(who depend on wages for their survival). This imbalance can lead
to situations where workers receive less compensation than the full
value of their contribution.
6. Alienation:
• Capitalist modes of production can lead to alienation of the worker

in several ways, as described by Marx:

o Alienation from the product of their labour:Workers often do

not see or control the final product they help create. It belongs to
the capitalist.
o Alienation from the act of working: Work can become repetitive,

monotonous, and lack intrinsic satisfaction, serving merely as a

means to an end (earning a wage).
o Alienation from their species-being (human

essence): Capitalism can reduce creative and social labour to a

 mere means of survival, hindering the full development of human
potential.
o Alienation from other workers: Competition in the labour market
and the hierarchical organization of workplaces can create divisions
among workers.

7. Labour Markets and Competition:

Capitalist societies have labour markets where workers seek
employment and employers seek to hire. These markets are subject
to various forces, including supply and demand, government
regulations (like minimum wage laws and labour protections), and
the power of labour unions.
Workers often compete for jobs, which can put downward pressure on
wages and working conditions if not counterbalanced by other
factors.
8. Evolution of Labour Rights:
Over time, workers have organized into labour unionsand advocated
for labour rights to improve wages, working conditions, and job
security. This has led to the development of laws and regulations
that provide some protection for workers in many capitalist
economies.

CAPITAL ACCUMULATION AND CLASS FORMATION.

The main goal in a capitalistic society is to make profit among the
individuals and businesses. This is achieved by selling goods and
services for more than the price it costs to make them and thus
profit is bore. The profit is then reinvested to make more money a
process known as Capital Accumulation. The money reinvested in
the business may be used to buy new equipment or hire more
workers to generate more income for the business.
Karl Marx observed that this cycle leads to the formation of distinct
social classes:
I] Capitalists (Bourgeoisie): Individuals or groups who own the
means of production. They invest capital to generate profits.
ii) Workers (Proletariat): Individuals who do not own production
means and must sell their labor to earn wages.
This difference creates a system where capitalists aim to maximize
profits to accumulate wealth and thus may end up paying lower
wages to workers and thus creates a class struggle. This class
struggle causes the rich to become richer and the poor struggle
even more.
Class struggle – The ongoing tension and conflict between those
who own the means of production and those who do the actual
work.
This class struggle leads to a conflict of interest where the workers
seek better wages and conditions, while capitalists aim to minimize
costs to maximize profits.
Choices have consequences and overtime Capital accumulation can
lead to significant social and economic inequalities. Due to a small
group of capitalists may control a large portion of wealth and
resources, while a larger group pf workers may struggle with lower
incomes and thus would cause social tensions and an immediate
change should take place.
In conclusion Marx believed that eventually the working class to
become aware of their exploitation and it would drive them to seek
a more equitable system where resources and power are shared
more fairly among all members of society.

CAPITALISM VS. SOCIALISM.

Capitalism is an economic system where individuals or private
companies own and control businesses and resources. The main
goal is to make profits and success is often driven by competition.
However, it may result in significant economic inequalities, as those
with resources can accumulate even more wealth.
Socialism is an economic system where the community or state
owns and controls major industries and resources. The focus is on
distributing wealth and resources more equally among all members
of society.
Marx critiqued capitalism for its tendency to concentrate wealth and
power in the hands of a few, leading to exploitation of the working
class. He believed that socialism could address these issues by
promoting shared ownership and reducing economic disparities. In a
socialist system, the means of production are owned collectively,
aiming to ensure that the wealth generated benefits all members of
society, not just a few of them. This system seeks to eliminate
exploitation and reduce economic disparities.
In contrast, Capitalism emphasizes private ownership, where
individuals or corporation own businesses and resources but
Socialism advocates for public ownership where the community or
state manages resources and industries to serve the common good.
In capitalism, market forces determine production and distribute,
which can lead to inequalities. In contrast, socialism relies on central
planning to allocate resources, aiming to meet the needs of all
citizens. (In Planning and Distribution).
In conclusion, capitalism and socialism represent two distinct
approaches to organizing society and the economy.Understanding
these systems is crucial for analyzing the legal and social structures
that govern our societies and for considering how different economic
models impact justice and equality.

The Superstructure and Ideology

Now that we already looked at the base or economic structure, it’s also important to look at the
superstructure, which is the other part of society according to Marxist theory. The superstructure
includes things like media, education, religion, culture, the legal system, and even the family.
Basically, all the things that don’t directly produce wealth, but still have a big role in maintaining
the economic system. It sits “on top” of the base and in many ways it reflects and supports
whatever is happening at the economic level.

In capitalist societies, the superstructure plays a big role in protecting the system and helping it
to survive. Even though these institutions might seem neutral, they actually serve the interests of
the ruling class. For example, schools and the education system in general seem like they are just
there to help people learn and grow. But actually, they also teach people to obey rules, respect
authority, and accept their position in life. Students are taught to arrive on time, follow
instructions, sit still, and basically prepare for a life of work. In this way, education does more
than give knowledge. It helps reproduce the same kind of society by training people to fit into
their expected roles. This is what Marxists call social reproduction.

Religion is another part of the superstructure that plays a powerful role. A lot of religious
teachings encourage people to accept suffering and hope for a reward in the afterlife. Things like
“it’s God’s plan” or “everything happens for a reason” can make people accept poverty,
inequality, and hardship instead of questioning the system. It keeps people calm and obedient
even when their conditions are unfair. This helps the capitalist system by preventing resistance or
revolution.

The media is also a very big part of this. Whether it’s news, movies, music, or social media, the
media is used to spread the dominant ideology. In simple terms, ideology is a set of beliefs or
ideas that shape how people see the world. In capitalism, the media constantly promotes the idea
that success is based on individual effort. We’re always told that “hard work leads to success” or
that “anyone can make it if they try hard enough.” While this might be true in some cases, it
ignores the bigger picture. Not everyone has the same starting point. Some people are born into
wealth and others into poverty, and hard work alone doesn’t erase that.

This kind of messaging creates what Marx called false consciousness. This is when people
believe ideas that go against their own best interests. For example, a poor person might believe
that rich people deserve everything they have just because they worked hard, without realising
that the system is actually built to benefit the rich from the beginning. Instead of blaming the
system, they blame themselves for not working hard enough. This keeps the ruling class safe and
unchallenged.

Even things like fashion or popular culture can be part of the superstructure. People are always
being told to buy new things, look a certain way, and “keep up” with trends. This creates
constant consumption, which is what capitalism needs to survive. It keeps money flowing to the
top while making people think it’s all about freedom or choice. But is it really choice when all
the choices benefit the same group of people?

In conclusion, the superstructure may not directly involve factories or money, but it’s deeply
connected to the capitalist system. It helps keep people in their place, supports the dominant
ideology, and reproduces the same patterns over and over. Through institutions like school,
church, and media, people learn to accept the world as it is, even when it’s unfair. That’s why
Marxist thinkers always say that to change society, we can’t only focus on the economy. We also
have to challenge the superstructure and expose the false consciousness it spreads.

Distribution of Resources

From a Marxist point of view in an economic structure, capitalism is

seen and based on ownership of the economy which is mainly
characterized by private ownership which further leads to the division
of the economy and thus forming classes such as the bourgeoisie who
are the owners and the proletariat who are the workers.
Some of the key elements of capitalism include; class struggles,
private ownership of production, market competition amongst the
private owners among others.
Under capitalism, there is unequal distribution of resources as the
resources are mostly attainable by the [people who are of the higher
classes living people in the lower class to suffer as a result.
In such an economy, the minority who own the production resources
exploit the majority leading to them becoming rich while the majority
are suffering in poverty as they don’t have their own means of
production.
Take an example of states such as The United States of America which
has both a capitalist and a communist division, the capitalists are way
more better off economically and financially clearly showing how this is
not only something that is happening in Kenya’s jurisdiction but also in
other major ecomomies of the world.
In Thomas Picketty’s book ‘’Capital in the twenty-first century’’ he tried
differentiating between wealth v. income, analyzed the historical
trends in capitalist economy and the inequalities in it and critiqued
neoliberal policies.
In Picketty’s book, he indicates the increased importance of inherited
wealth which supports the Marxist view that capitalism leads to
formation of class hierarchies
In conclusion, we see both Marx and Picketty showing that capitalist
economies in their natural nature lead to continuous wealth
accumulation at the top of the hierarchy which in most cases has led to
constant inequalities to the workers or the lower class and they both
emphasized that capitalism economies need interventions to deal with
the imbalances.

Historical Development of Capitalism

Capitalism emerged from feudalism through a process involving

increased trade, urbanization, and the rise of a merchant class,
ultimately leading to private property, market-driven economies,
and individual entrepreneurship. This transition was further fueled
by colonialism, the Industrial Revolution, and global expansion,
which created global class divisions through processes like primitive
accumulation and the unequal distribution of resources. Historical
materialism provides a framework for understanding this historical
development.
1. Capitalism's Roots in Feudalism:
Feudalism was a hierarchical system where land ownership and
loyalty to lords were central.
 As trade grew and cities developed, a merchant class emerged,
challenging the traditional feudal order.
This shift towards market-driven economies and private property
laid the foundation for capitalism.
2. The Rise of Colonialism and Global Expansion:
Colonialism involved European powers exploiting resources and
labor in other parts of the world.
This process of primitive accumulation, as described by Marx,
involved the forced seizure of land, resources, and labor, creating a
global division between colonizers and colonized.
Global expansion facilitated the spread of capitalism and its
associated structures.
3. The Industrial Revolution and its Impact:
The Industrial Revolution, with its technological advancements and
factory production, transformed economies.
It led to increased productivity and efficiency, but also exacerbated
social inequality and the creation of a working class.
This period witnessed the rise of capitalism as the dominant
economic system.
4. Global Class Divisions:
The expansion of capitalism created a global class structure with a
wealthy capitalist class and a working class.
The unequal distribution of resources and opportunities, fueled by
colonialism and industrialization, led to significant disparities
between nations and within them.
Historical materialism provides a framework for understanding how
these class divisions emerged and were maintained.

UNDERSTANDING CAPITALISM THROUGH CASE LAWS AND REAL-

LIFE EXAMPLES:
Capitalism is an economic system characterized by private ownership of the means of
production, profit motive, wage labor and market competition.
1. Land ownership and dispossession
In Willy Kimutai Kitilit v Michael Kibet (2018), the case was about a dispute over land
ownership. In many Kenyan communities, land is more than property, it is tied to
identity, survival and history. Capitalism treats land like a commodity to be bought
and sold. Dispossession occurs when land is appropriated for commercial interests or
development often displacing marginalized communities.
2. Labor exploitation in capitalist system
 In Kenya Plantation and Agricultural Workers Union v Del Monte Kenya Ltd
(2015), the plantation workers face poor wages and working conditions despite the
company making huge profits. Capitalism prioritizes profit maximization often at the
expense of labor rights. Laor becomes commodified and workers are paid less than the
value they produce.
3. Urban poverty and inequality
For example, Kibera Informal Settlements, one of Africa’s largest informal
settlements, shows how cities can grow without taking care of everyone. They are a
result of inadequate housing and employment opportunities in capitalist cities.
Capitalism tends to create sharp class division with wealth concentrated among elites
and poverty prevalent among the working class and unemployed.
4. Global capitalism and local exploitation
For example, Kenya’s Tea and Flower Industries, supply products around the world
but the workers on those farms often live in property. Big global companies take the
biggest share of profits while local workers endure low wages and insecure jobs.
Capitalism is global in nature exploiting cheaper labor markets in the global south to
maintain profitability in the global north.
5. Alienation and class struggle
For example, Youth unemployment and hustler narrative, many young Kenyans
identify as hustlers – people doing whatever they can to survive. This shows how
tough it is to find stable work in a system that doesn’t create enough jobs. Workers
feel alienated from meaningful work and societal participation. The false
consciousness of “hustling” conceals systemic inequality, suppressing collective
action and reinforcing capitalist ideology.
6. Primitive accumulation and colonial capitalism
For example, Mau Mau Uprising & Land Theft, the colonial powers took huge areas
of land from Kenyan and used it to build their wealth. The Mau Mau uprising was a
rebellion against this injustice. Primitive accumulation involves forcibly taking land
and labor to initiate capitalist production. Colonialism was central to the rise of global
capitalism with long term effects on former colonies like Kenya.

Conclusion

The Economic Structure of a Capitalist Society: A Marxist Perspective

The criticism of capitalism by Karl Marx is based on its mode of production, class

relations, and exploitation of labor dynamics. In the case of a capitalist economy, the
means of production (factories, machinery, land, and capital) are held by the capitalist

class, or bourgeoisie, in private ownership terms. The working class, or proletariat, sells

wages for their work without owning or having control over the product of their labor.

Production and Labor Relations

Capitalist production is driven by profit maximization, not by meeting human needs.

Workers work for wages, but the surplus value the extra wealth generated above their

wages is taken by capitalists, entrenching inequality. This creates class antagonism, as

workers remain economically subordinated to the owners of production.

Under capitalism, work is ‘commodified, bringing human workers down to the level of

economic units. According to Marx, this alienation alienates workers from their labor,

from their fellow workers, and from their own humanness, entrenching an exploitative

system. Economic crises, unemployment, and automation are further evidence of the

instability of capitalism.

Economic Systems and Class Formation

Marx saw capitalism as distinct from other economic orders, like socialism, which

seeks collective ownership of means of production, and communism which attempts to

establish a classless society. Capitalism's reliance on private accumulation creates

wealth concentration in the form of hard social classes that perpetuate inequality.

According to the Marxist theory of class consciousness, once workers become aware of

their exploitation, then they can organize themselves and demand systemic change.

The history of humanity has witnessed initiatives toward socialism and labor rights, but

capitalist dominance worldwide prevails to this day.

Efforts to mitigate capitalism's unfairness through progressive taxation, preservation of

labor, and social welfare programs suggest ongoing criticism and development.

Nevertheless, there is still controversy: Can capitalism be reformed, or must it be

overthrown?
Critical Question: Is Capitalism Sustainable?

Capitalism's reliance on continuous expansion within a finite universe is fraught with

difficulties. Economic recessions, environmental ruin, and widening inequality highlight

the system's weakness. Will reforms tame capitalism, or will its own contradictions

drive it toward other forms of the economy?

Relevance of Marxist Thought Today

Marxist thought remains relevant in analysing contemporary issues like gig economy

exploitation, wealth concentration, and global inequality. The rise of automation and

precarious work echoes Marx’s warnings about Labor’s commodification, while

movements for economic justice reflect enduring class struggles. However, critics

argue Marxism underestimates capitalism’s adaptability and the complexity of modern

class identities. Nonetheless, its framework for critiquing power dynamics and

envisioning systemic change continues to inspire transformative ideas.

Quote from Marx

"The proletarians have nothing to lose but their chains. They have a world to win."

Marxist analysis remains a strong critique of capitalism, forcing societies to question

systems of economic power and seek pathways toward just transformation.