Examining the contradictory dialectic of the formation of semi-feudal capitalism on the materials of the Baltic village, the author of the monograph, associate professor of Tartu State University V.M. Feinstein considers this process as a particular peculiar manifestation of the general pattern of the development of capitalism in breadth, an objective result of resolving the contradictions of commodity feudal production, which is intensively influenced by international industrial capital. Part 1 clarifies the objectively operating mechanism of the formation of capitalism on the basis of decaying commodity feudal production, part II is devoted to a specific consideration of the main problems of the formation of landowner capitalism in the Estland and Yaifland provinces of Russia.