The Review of Political Economy has done a great service to those interested in political economy, and in particular those concerned with the revival of the surplus approach. It has published the manuscript of Pierangelo Garegnani's unpublished paper.
From Fabio Petri's introduction:
In the last year of his life, Pierangelo Garegnani (1930–2011) worked on revising a paper on Marx’s labour theory of value drafted 30 years before, which had remained unpublished. This revised paper is what is reproduced below.
The paper had been read at a 1980 Conference on Marx in Bielefeld, Germany. It was a new version, in English, of the paper ‘La teoria del valore: Marx e la tradizione marxista’, published, together with an early Italian version of Garegnani (1984) as well as some other material, in Garegnani’s Marx e gli economisti classici (1981: pp. 55–90); the project had originated in a series of articles published in the Italian weekly Rinascita in 1978 and 1979. In the opening page of an essay on ‘The Labour Theory of Value: ‘Detour’ or Technical Advance?’, Garegnani (1991: pp. 97 and 113, endnote 4) announced the present work as forthcoming, but in fact the paper did not go to print. In September 2010 Garegnani resumed working on the paper, to add to it a further Section IX concerning more recent discussions on Marx and the labour theory of value. He intended to co-author this additional Section with me, and it is from the ensuing collaboration that I have obtained the typescript of the Bielefeld paper, dated 1981, titled ‘The Labour Theory of Value in Marx and in the Marxist Tradition.’ On why this 1981 paper was still unpublished 10 years later, what went wrong with its publication in 1991, and why then the paper remained dormant for nearly 20 more years, Garegnani supplied little information. About these questions one can only wait for when an examination of his papers and correspondence – a vast task yet to be commenced – will possibly allow for a well-founded historical reconstruction of his choices.
Unfortunately Garegnani passed away in October 2011, before a draft of the additional Section IX could be achieved (see Petri  for further details). But in that last year he also worked on revising the Bielefeld paper, that is the first eight sections of the intended new paper. The result of the revision is presented here. Although not a final version ratified by the author, it is a fully autonomous paper, and quite definitive: the draft contains no incomplete sentences or notes by Garegnani indicating that certain points might need further work. Relative to the 1981 version, it contains additional observations and stylistic improvements, but no changes in the basic arguments.
The aim and contents of the paper were summarized at some length by Garegnani himself when announcing it in the opening page of the 1991 essay. In that summary, which can now be read as an introduction to the arguments contained in the paper here submitted to the public, Garegnani (1991: p. 97) stresses that the paper is devoted to further confirming the thesis, advanced in Garegnani (1984), that the role of the labour theory of value in the classical approach and in Marx was the ‘technical’ one of providing a ‘measurement independent of distribution, of product, wages and means of production,’ thus allowing a determination of the rate of profits as the ratio of net social product to capital advances, surmounting, in the only – albeit imperfect – way concretely available at the time, the (apparent) vicious circle of a rate of profits dependent on relative prices in turn dependent on the rate of profits. With particular regard to Marx, Garegnani explains, the confirmation is achieved by showing that the traditional interpretations that attribute other roles to the labour theory of value ‘have little foundation in Marx’s own work. This applies in particular to the readings often made of some characteristic concepts of Marx, like his distinction between ‘inner’ and ‘apparent’ relations of the bourgeois system, the distinction between ‘abstract’ and ‘concrete’ labour, the representation of the wage as ‘value of labour power’, or the sense in which Marx refers to labour exploitation – a sense which, as he explicitly states, has little if anything to do with the labour theory of value.’ These interpretations ‘have indeed made it difficult to comprehend a large part of Marx’s theoretical work’. No attempt at diplomacy here! The published 1991 essay is then presented as an appendix to that still unpublished paper, defending the latter’s arguments against the views on Marx’s labour theory of value expressed by Samuelson, Baumol, Myrdal, Meek, Morishima, and Sen.
There remains to indicate why publishing this paper today is deemed important. The main reason is that Garegnani’s understanding of the role of the labour theory of value in Marx (and of the correct reading of those ‘characteristic concepts of Marx’) appears to be scarcely known outside Italy , a fact that has helped the frequent placement of his overall approach in the ranks of an allegedly anti-Marx ‘Sraffian school’. This reaction is hardly surprising in the light of the substantial diversity of Garegnani’s theses from the long-dominant ones. So dominant was the tradition attributing to the labour theory of value indispensable roles other than the one indicated by Garegnani – for example, the role of proving labour exploitation – that it is not difficult to understand that the spontaneous reaction of scholars steeped in the traditional interpretation may have been one of skepticism, if not of hostility, toward a view which, by claiming that nothing is lost by replacing the labour theory of value with Sraffa’s equations, seemed to reject fundamental elements of Marx’s assessment of the nature of the capital–labour relation. The absence of a detailed exposition in English of the arguments Garegnani supplies in support of his views has made it difficult to give those arguments the attentive consideration warranted by the recognized depth of thought of the author. The publication of the present paper aims at making such adequate consideration possible .
The criticism, in the last sections of the paper, of two Italian scholars absent from recent debates does not seem to be outdated either, because views similar to those they expressed are still present today. The near identification one finds in Lucio Colletti’s (1924–2001) writings of the concepts of fetishism, alienation, and abstract labour continues the long (and still alive) tradition stressing the ‘qualitative’ roles of Marx’s labour theory of value, and has been influential outside Italy too (see, for example, Foley 1982: p. 46, fn. 5). The argument put forward by Claudio Napoleoni (1924–1988), that outside the labour theory of value one cannot view profits as the fruit of exploitation , is representative of a widely shared view that helps us to understand the reluctance of many Marxists to replace the labour theory of value with the correct analysis of prices as provided by Sraffa.
Independently of how convincing it will be found, this paper questions the idea of a so-called ‘Sraffian school’ antithetical to Marx. Leaving aside the analytical and even philological legitimacy of referring to Sraffa’s work and its later developments as any new particular ‘school’ distinct from the modern reappraisal of the classical approach to value and distribution, the paper shows that no such counterposition is applicable to a scholar highly representative of that line of thought, in whose view Marx’s overall approach actually turns out to be strenghtened, rather than challenged, by the correct determination of rate of profits and prices achieved with Sraffa.
 The publication in 1985 of a French version of the Bielefeld paper (Garegnani 1985), also containing a short appendix criticizing Rowthorn (1974), does not seem to have been widely noticed: I have found it cited in only one (unpublished) paper concerned with Marx’s theory of value, Chattopadhyay (2000).Most of these issues were briefly tackled in this old post. Read paper by Garegnani here.
 And at supplying at last the needed background to the 1991 essay.
 Napoleoni’s argument is available in English in Napoleoni (1991). Garegnani does not cite this article, presumably because of the little time he had to work on the last three Sections, which have remained almost unchanged from the 1981 version.
H/T to Franklin Serrano and Sergio Cesaratto for bringing the paper to my attention.