China and the law of value

In his latest blog post Mike Roberts looks at the contradictory character of the Chinese economy, and concludes that whatever it is it's not predominantly capitalist. Among other things he discusses the role of the law of value in China.

http://thenextrecession.wordpress.com/2012/03/23/which-way-for-china-part-two

I made the following comment:

Thanks, Mike. You've opened a door here that has been very firmly shut for far too long. A door on a China where capitalism has not been restored, and where a restoration would make no economic sense. As you say about the World Bank report: "The report is also totally blind.  It wants China to abandon its current economic model and publicly-controlled financial system, which brought it successfully through the world financial crisis, and instead adopt the very model that led the US and Europe into disaster." Not to mention the Soviet Union - Russia is still recovering from its restoration, and two decades have passed.

So I'll stick my foot in the door and ask you for some clarification. You write: "So the Chinese economy is affected by the law of value.  That’s not really surprising.  You can’t ‘build socialism in one country’ (and if a country is under an autocracy, by definition).  Globalisation and the law of value in world markets feed through to the Chinese economy.  But the impact is ‘distorted’, ‘curbed’ and blocked by bureaucratic ‘interference’ from the state and the party structure to the point that it cannot yet dominate and direct the trajectory of the Chinese economy." You also write: "But the vast majority of employment and investment is undertaken by publicly-owned companies or by institutions that are under the direction and control of the Communist party. The biggest part of China’s world-beating industry is not foreign-owned multinationals, but Chinese state owned enterprises."

Is public ownership of the vast majority of companies and institutions and control of these by a single party enough to make a country non-capitalist?

If not, what else is required?

Is the only thing blocking the operations of the law of value in China interference by the state and party? If so, can a mode of production be changed and preserved by political decree?

As I understand it, the law of value operates most powerfully when the whole of an economy (pre-eminently the world economy, but to some extent a national economy) is commoditized. Land, means of production, labour power. Surplus value is generated by every (productive, market-oriented) interaction between labour and the means of production, and this surplus value is transformed into various kinds of capitalist surplus (rent, profit, interest) over the whole economy and equalized out into chunks proportional to capital invested. So where do the boundaries go between commoditized and non-commoditized production in China?

And what happens with surplus that isn't transformed into profit? Assuming normal conditions of production won't this mean that wealth equal to the average rate of profit (on the whole) remains within the system of production to be reinvested, or distributed as revenue not on the basis of ownership of a certain amount of capital but on quite other grounds? How do you view this "invisible" surplus? Disappearing completely into corrupt political and management pockets? Being ploughed back into production to a degree unmatched in capitalist economies?

Or, and this could be even more important, serving to pump up a credit system backed by real wealth in a way that is totally incomprehensible to mainstream economics (let's make that "to all economics except orthodox Marxism"). For decades now bourgeois economists have been gaping in disbelief at the "bad debts" incurred by non-capitalist economies like the Soviet Union and China, and predicting their imminent implosion. It hasn't happened.

One last thought in relation to all this... If underdeveloped and constantly embattled non-capitalist economies like the Soviet Union and China can easily outperform their underdeveloped and embattled peers (Indonesia, Brazil, India, for instance) over decades (not to mention the example of Cuba in relation to its peers in Central America and the Caribbean), and beyond this challenge the developed and "embattling" imperialist countries (the US, Europe, Japan) enough to keep them on their toes, mind their behaviour and strive to compete... well, if this is the case, what kind of impact would a non-capitalist state have if it arose in a relatively advanced and strategically robust country? Like Britain or Sweden?

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'Waistline' persisted in his technological fetishism, but also made a point about the law of value that I commented on:

Waistline, please give us the relevant quotes from the GP. 

You write: "As I understand things Marx directly states that the law of value will still operate under socialism, but not communism. This is stated in Critique of the Gotha Program." But "operating under" and "dominating" are not the same thing. And Marx never thought they were.

Under slave-ownership the law of value operated wherever commodity production and exchange were present. Notable in manufacture for the market, commerce, and money-lending. But it didn't determine the whole economic process. It was even more strongly present under feudalism, most especially in the capitalist enclaves of the city states (ex-Roman municipalities) like Florence, Venice or Augsburg. (Henri Pirenne is good on this.)

Under capitalism the law of value determines the whole process (and we can sharpen this to say that if you deny the viability of value as the fundamental theoretical concept underlying the economic analysis of capitalism, you're floating free in space untethered from reality, and might as well be a marginalist instead of a shame-faced pseudo-Marxist).

As the development of the forces of production make the class struggle more and more a desperate rear-guard action by the bourgeoisie, as they fight like cornered rats to keep the proletariat from power and the forces of production from developing unfettered by the constraints of bourgeois production relations, then the law of value becomes sidelined to an extent varying with the degree of oligopoly, the impermeability of political economic barriers between countries, and most particularly with the presence of countries based on a non-capitalist (proto-socialist) mode of production. 

Mike is one of the few professional economists in a position to help us determine the progress of this tug-of-war between production and circulation on the basis of the law of value, and production and circulation beyond it, on the basis of cooperative planning in the perspective of a whole economy run and operated by freely associated producers. To determine the proportion of the world economy driven by the one or the other system of organizing the social production of humanity.

Understanding the character and trajectory of China today is as important for the emancipation of the working class worldwide and thus humanity as understanding the Soviet Union was after 1917. 

Which is why this discussion we are having right here and now is so crucial.

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Waistline later provided a useful quote from the Gotha Programme:

What we have to deal with here is a communist society, not as it has developed on its own foundations, but, on the contrary, just as it emerges from capitalist society; which is thus in every respect, economically, morally, and intellectually, still stamped with the birthmarks of the old society from whose womb it emerges. Accordingly, the individual producer receives back from society — after the deductions have been made — exactly what he gives to it. What he has given to it is his individual quantum of labor. For example, the social working day consists of the sum of the individual hours of work; the individual labor time of the individual producer is the part of the social working day contributed by him, his share in it. He receives a certificate from society that he has furnished such-and-such an amount of labor (after deducting his labor for the common funds); and with this certificate, he draws from the social stock of means of consumption as much as the same amount of labor cost. The same amount of labor which he has given to society in one form, he receives back in another.Here, obviously, the same principle prevails as that which regulates the exchange of commodities, as far as this is exchange of equal values. Content and form are changed, because under the altered circumstances no one can give anything except his labor, and because, on the other hand, nothing can pass to the ownership of individuals, except individual means of consumption. But as far as the distribution of the latter among the individual producers is concerned, the same principle prevails as in the exchange of commodity equivalents: a given amount of labor in one form is exchanged for an equal amount of labor in another form.Hence, equal right here is still in principle — bourgeois right, although principle and practice are no longer at loggerheads, while the exchange of equivalents in commodity exchange exists only on the average and not in the individual case. In spite of this advance, this equal right is still constantly stigmatized by a bourgeois limitation. The right of the producers is proportional to the labor they supply; the equality consists in the fact that measurement is made with an equal standard, labor.
http://www.marxists.org/archive/marx/works/1875/gotha/ch01.htm

I replied: 

Waistline, thanks for the quote from the Gotha Programme.

What I'd like to point out here is that the remarks here are against utopian anarchist dreams of "from each according to his ability, to each according to his needs" the day after the setting up of a proto-socialist society. There are two axioms underlying everything Marx wrote. One is "Nothing comes of nothing" (no profit out of thin air for insubstantial things like "abstinence" or "responsibility") and the other is "Like exchanges for like" (in capitalist society based on the law of value, in aggregate, all commodities produced are exchanged against commodities of equal value).

Which means, in relation to the quote from the Gotha Programme, that the "deductions for the common funds" are equal to the surplus value of the whole of social production measured using the bourgeois yardstick of socially necessary labour time. This surplus value is gigantic, equivalent to the total profit appropriated by capitalists (and their governments) and "reinvested" (often in luxury buildings, the pyramids of our day), consumed as revenue (and how), or destroyed in war. So although associated workers "only" receive the equivalent for their labour power seen as a commodity, in part their labour power brings them much more wealth under the associated mode of production, and in part they receive vast wealth from the common funds in the form of education, health care, culture, public amenities etc etc.

In the initial stages of the non-capitalist mode of production, this pattern of production and distribution will be hugely distorted (birthmarked, gory, deformed) by the relative lack of development of the forces of production and by the immense superiority in terms of wealth and power of the remaining imperialist countries dominating the world economy. We saw this in the Soviet Union, and we are seeing it in China.

But since the capitalist mode of production is fighting an historically losing war against the socialist mode of production, our proto-socialist system is far stronger than decaying imperialism, DESPITE ALL APPEARANCES TO THE CONTRARY. These appearances are peddled by all bourgeois ideologists (including economists) as the truth. Our task as revolutionary Marxists is to expose this surface lie and prick it like a bloated wobbly bubble of sewer gas. The stench will be awful, but the view will be clear.

Waistline then added:

Choppa Morph, if you are not a police agent then stop your insults and personal attack. I suggest not using the weapon of personal insult on this blog. Since you started this cop, you really do not want to engage men in a contest of personal insults . . . .Cop Morph. 

And I responded:

Thanks for calling me a cop ;-) Next time back up your problems with my style with quotes and not just impressions. 

And when the hell did you ever see a cop argue about Marx's economic theory at this level in these terms??? And if you do find one, recruit the bastard!

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Raved commented:

Getting back to China. Marxists who deny that the law of value prevails in China are proposing a hybrid economy where the LOV is subordinated to the plan. This is possible briefly in a healthy workers state. Not so in a bureaucratically degenerate workers’ state. There can be no efficient allocation of labour time when the plan is managed by a bureaucracy. Stagnation follows. Hence the bureaucracy’s interest is to convert itself in a capitalist class by opening up to the LOV operating on the global market. Once the state officially allows the LOV to enable global prices to apply to China capitalism is restored. Since that state is already centrally organised and can manage to combine cheap labour with advanced technology the rate of exploitation and accumulation is extraordinarily high. Only on that basis can we explain China’s remarkable growth rate and expansion into the global economy. China is not only capitalist, it is super-capitalist, and hence imperialist.

I then responded to him and Waistline:

Waistline - It's not a question of you and me "simply having different points of view", it's a question of you and Marx having different theoretical understandings of the relationship between means of production and modes of production.

Raved (and I'm sorry I got swept past your first comment, so to say) - In China (as was the case in the Soviet Union) we have proto-socialism - a situation in which the mode of production is fundamentally non-capitalist, but in which (to use Preobrazhensky's term) primitive socialist accumulation is taking place in the teeth of political and economic aggression from an imperialism that still dominates the world economy. The process is further distorted by political and economic aggression WITHIN the new state where the interests of imperialism are promoted by its counter-revolutionary agents in the bureaucratic regime - as Trotsky spells out in The Revolution Betrayed. However, as long as the bureaucracy (and its twin the military) as a whole is predominantly dependent for its power and privileges on the non-capitalist state, it will defend this state. It is tearing itself to pieces this way and will either be dissolved by a resurgent revolutionary socialist workers movement or capitulate to imperialism and consummate the political counter-revolution with full restoration, that is a socio-poltical counter-revolution, as happened in the USSR/Russia. Trotsky makes this alternative very clear in the Transitional Programme of the Fourth International.

You write that this view holds that China is "a hybrid economy". That is correct as long as we remain clear that this involves a single dominant socio-economic system incorporating elements of another system within it. That is, not so much a mongrel, as a root system and stem with an alien organism grafted onto it. You also write that in this view "the LOV is subordinated to the plan". This, however, is nonsense if you equate a non-capitalist society with a smoothly functioning plan. If a non-capitalist society is equal to your idea of "the plan" as the "efficient allocation of labour time", then imperialist corporations are non-capitalist because they allocate labour time with extreme efficiency (within certain bounds), and we have never ever seen a non-capitalist society of any description because we have never seen such efficient allocation of labour time in any existing society.

This is perverting both Marx and the evidence of our own eyes.

First our own eyes - we see China allocating labour time more efficiently than comparable capitalist countries (eg India) and even than imperialist countries, while avoiding (as Mike R and Hydeparkspeakes note) the catastrophic crises of overproduction these other societies have suffered. Not very efficiently compared to a perfectly efficient allocation, but MORE efficiently. As a whole.

And secondly Marx, because as I showed by the quotes from Capital III ch 27, he already saw the non-capitalist character of the operations of joint-stock companies before 1867. That is, a hybrid economy dominated by one mode of production (capitalism) but with a new and superior mode of economy grafted on to it (or growing within it), that is the economy of associated producers. So he had no problem whatever envisaging this kind of setup. If imperialism is a duck with a swan grafted on to it (or a dragon pregnant with a unicorn ;-), then non-capitalist societies, proto-socialist systems, are swans with ducks grafted on to them (or unicorns still fighting their way free from the stinking placenta and rotting remnants of the dragon they have emerged from).

This is the economic side of things. The political is very important too. Despite all appearances and a judgement that a political counter-revolution had been carried out in the USSR, Trotsky in the Revolution Betrayed insisted that it is still a workers state, ie non-capitalist. While others were claiming it was fascist or state capitalist. (Or if they were Stalinist stooges, fully-fledged socialism.) We have since seen a genuine socio-economic counter-revolution in Russia, and the convulsions involved. There is no principled difference between Trotsky's insistence that the Soviet Union was still a workers state and our insistence today that China is still a workers state. Neither you nor anyone else has yet demonstrated that a socio-economic revolution has taken place in China. Capitalist techniques including certain legal entitlements to profit, sure, but nothing turning the country inside out as happened and is still happening in Russia.

Until you can prove beyond reasonable doubt that this has happened then either you hold that China was never a non-socialist society, or you are wrong about its recent history.

So convince me.

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China and capitalist restoration

In a discussion on FaceBook (11 March 2012) Gerry Downing answers MT and takes the opportunity to  justify the idea that capitalism has been restored in China.
Gerald Downing FaceBook

I don't know why you think I think that China is a deformed workers state but you are wrong. In my view the date of transition was 1992, although that is arguable (Workers Power put it at about the same time). Here is what I think:Let us list the features of the Chinese economy and state to see which it is;1. The “iron rice bowl” is basically gone. Mao’s welfare state has been abolished apart from in a few places. The Gini Coefficient shows a sharply rising graph of income and wealth inequality in China since the early 1980s as in India, not yet as high as Brazil, Mexico and South Africa but getting there. 2. There is a thriving capitalist sector with its own class differentiated bourgeoisie and working class. China now has more millionaires than the UK, Germany or Japan, although at 450,000 it is still a long way behind the U.S. even though that fell by 2.5 million to 6.7 million in 2008. All deformed and degenerated workers’ states expropriated their capitalists and prevented that class arising anew. 3. There is a Stock Exchange and capitalist banks, although, a la Bismarck, Stolypin and Keynes, they are state controlled (unlike in Britain under Blair and Brown) to ensure the better development of capitalism. All deformed and degenerated workers’ states had/have no stock exchanges. This is not neo-liberal capitalism but it is capitalism nevertheless.4. The monopoly of foreign trade is gone but the state still retains strategic control over trade as good capitalist planners. All deformed and degenerated workers’ states had/have a state monopoly of foreign trade.5. They are developing as an imperialist power; their investments in Africa, South America and Sri Lanka, for example, are for purely commercial and strategic/military purposes. This is totally unlike the practice of the USSR where support and investment was to strengthen their hand and give them more pawns in the chess game of achieving peaceful cooperation and compromise with the world Imperialism. The USSR was prepared to sponsor, ideologically and materially, armed opposition to imperialism to this end, China arms its clients but has no ideological opposition to imperialism, however distorted, to offer. However China still retains strong elements of a semi-colonial state in its far-flung backward regions, which are prey to US/CIA interventions to begin the breakup of a developing rival. It is still a long way from a fully fledged imperialist power and history never proceeds in a straight line without wars and revolutions so its uninterrupted development is far from certain.Comrades, when we see a bird that walks like a duck and swims like a duck and quacks like a duck, we call that bird a duck. James Robertson had pragmatically seen the significance of the long swim of the capitalists from Cuba to Miami by 1966 but the International Committee of Gerry Healy and Pierre Lambert refused to look at what had happened there after 1959. In his play Galileo Bertolt Brecht’s Galileo invites the leading scholars of Florence to peer into his telescope for the ultimate proof that Aristotle was wrong; but the men refused to look, instead making evasive, dogmatic speeches about why the telescope could not possibly show any such thing. A little more pragmatism and common sense would now assist comrades, before we progress to the more complex world of the Marxist dialectic. China is capitalist, look; it waddles and paddles and quacks, it’s a duck!.

I responded: 

Sorry, Gerry, I think your duck might turn out to be a swan - even though it's exceedingly ugly as a duckling ;-)

Your version of the history of the capitalist mode of production in the era of transition to socialism is impressionist because it ignores all the important historical questions. 

Most importantly it ignores the question of how modes of production develop and transform - from slave-ownership to feudal to capitalist etc. Despite occasional hiccups they don't head back. It's not straightforward, but it's irreversible. If the new mode of production breaks down, you get chaos and catastrophe - in our day formulated as socialism or barbarism.

So if imperialism is the ultimate stage of capitalism (ie can develop no further scientifically speaking, but just decay or metamorphose into something new and non-capitalist) and is essentially capitalism pregnant with socialism, we must ask what the direction of history is and why capitalism can so easily return to a country where its foundations were destroyed. Against the tide. This tide - clearly seen by Marx in the 1860s, where he states (in Capital III) that capitalism is socialized through and through in every respect except ownership and the direct consequences of ownership), and fully accepted by Lenin - is important for understanding the history of the 20th century. Especially the Soviet Union and its character.

First of all, it's the only possible explanation for the survival of revolutionary Russia and the Soviet Union for seven decades. Trotsky recognizes this in the Revolution Betrayed where he attacks impressionist notions that the Soviet Union was no longer a workers state in 1936. The political distortions in the Stalinist USSR were at least as great as the economic distortions in China today, if not greater - Trotsky didn't hesitate to draw direct parallels between the Stalinist regime and the Nazi regime in Germany. He characterized it as counter-revolutionary. But the foundations of the USSR were different. The capitalist "integument" had "burst asunder", and social economic productive forces were no longer constrained by private appropriation. The results of the newly unleashed productive forces were skimmed off by the bureaucrats, of course, but this isn't the same.

Right, so despite a counter-revolutionary regime that banned all political opposition and critical Marxist thinking, crushed oppositional organizations and individuals, didn't understand Marxist economics, and spread lies and confusion about socialism, the new workers state, crippled, weak and impoverished, survived for seven decades and put the imperialist world to shame on many fronts.

When the bureaucratic regime finally sold out to imperialism we got to see real economic counter-revolution in the mode of production sense. First and only time. No lessons have been drawn from this in relation to China. Impressionism talks as if real economic counter-revolution has taken place there too. This is making a nonsense of the category of counter-revolution. Both poltical and economic. Counter-revolution on this scale is spectacular. 1991 in Russia, however well prepared it was politically, and however eagerly and non-militarily embraced it was by imperialism, was not a reformist transition, an undramatic gliding over to capitalist ownership and management.

The urban and rural workers - trampled and despised under Stalinism - were stripped of what little they had left. But this little was HUGE - it was the fundamentally different relationship between a worker and the forces of production in a non-capitalist state. Every speck of inequality and meanness and brutalization in the USSR had arisen AGAINST the nature of a workers state, even a backward and isolated one in a world dominated by imperialism. Superficial analyses (eg the State Capitalist view) missed this aspect of the USSR completely. 

In China, however well prepared the political and some of the economic conditions might be, we have seen nothing approaching the devastation and barbarity of post-restoration Russia. The political chaos. The human destruction. Reversing a mode of production from non-capitalist to capitalist is non-trivial. It means (historically speaking) ramming a big bouncing baby back into a womb that was already too small before it was born. In Russia the only way the restoration has survived is by reshaping the womb, so to speak. The social scale of the forces of production could only be handled by the state taking over the role of capitalist - leading to a real state capitalism run by loyal oligarchs and powerful politicians. Foreign imperialism is nowhere. 

No one has bothered to envisage what might actually happen in China following a real restoration. We have lazily watched capitalist techniques being introduced and just nodded sagely saying: "look - restoration - goodness me..." This has also led to idiotic reinterpretations of "pre-restoration" such as "Mao's welfare state".

In the Revolution Betrayed Trotsky castigated those who treated the bureaucracy as one featureless mass. He pointed out that the class struggle doesn't vanish because its surface expression is suppressed. But the same error is being made in relation to China. And this is the second big problem of the China is Capitalist view. The Chinese bureaucracy is larger and more powerful and far more stable than the Soviet bureaucracy ever was, but it is just as riven by economic, social and political differences - the material interests of the lower, middle and upper bureaucracies are not the same, and often they are in complete contradiction. Lower bureaucrats would stand to lose everything in a restoration. Middle bureaucrats (as always) feel more secure with the status quo. Upper bureaucrats (the equivalent of the Soviet nomenclatura) would probably prefer restoration. Now - and this is BIG - for Marxists a state is an apparatus mobilizing violent force to maintain and defend a particular mode of production. The army, militias, and the elements making them up. Not just leaders but rank and file. Not just general staff but higher and lower officer castes, and the foot soldiers. This organized violence is inextricably bound up with the political and economic management of the state. 

So where does the army stand in relation to restoration? Well, bugger me, how should I know, is the answer, to judge by the total lack of inquiry into the question. 

In short, it's reasonable to assume that there are very powerful forces in China working in both directions - for restoration and against it. Much stronger and more contradictory than they were even in the Soviet Union, as China is a larger and more powerful nation.

Further, just as the USSR prospered (in spite of everything) during the 30s while imperialism was on its knees, China has been prospering during the loooong drawn out death rattling of the great capitalist crisis following the post-war reconstruction (etc) boom. Since say 1980 (when Thatcher and Reagan initiated a desperate reactionary assault on the core imperialist working class) China has been doing very well thank you.

Now, if I were a Chinese bureaucrat of any rank (particularly perhaps a top bureaucrat) I would be asking myself this question: "if imperialism is making such an intolerable mess of things, getting bogged down in expensive unwinnable wars, rotting away socially, lurching from one deep crisis to the next even deeper crisis... and I'm doing just fine with things the way they are here, getting kickbacks from my industrial and financial cronies... and my cronies are doing just fine being looked after by me... Why the fuck would I ever be stupid enough to give everything up and join a losing side? Why should I go aboard their sinking ship?? They are now coming to me with a begging bowl. Asking for bail-outs and handouts, begging for mercy. Nope, I'll carry on as I am for a bit, I think. So, as far as full frontal restoration goes, thanks, but no thanks."

These questions I raise are all fundamental. They can't be answered with trade figures or organizational charts. Economy is Political economy, not company economics, and the big political questions just aren't being asked.

If we hold with Trotsky, then we should move beyond the Revolution Betrayed (1936) to the Transitional Programme (1938), a much more general document assimilating the lessons worked out in the Revolution Betrayed and all of Trotsky's and the class's previous Bolshevik-Leninist experience.

The most important single sentence in the TP is the very first: "The world political situation as a whole is chiefly characterized by a historical crisis of the leadership of the proletariat."

We need to work out what this means ACTIVELY in relation to problems of capitalist restoration and the fate of Russia and China. It's not enough to passively sit around and bemoan "restoration" and counter-revolution without even considering this aspect of the matter. Because what is happening in Russia and China, obviously, is an expression of the class struggle today in a period of extreme imperialist putrefaction. If "restoration" can be brought about at the stroke of a pen, at the whim of some highly placed bureaucrats in Beijing, and does not depend on a social cataclysm involving a direct confrontation between the working class and the bourgeoisie, then we might as well go into "politics" and fight for a place by the trough in Brussels or Washington. There was no bourgeoisie in the Soviet Union when restoration occurred (which is one reason why it took so long to materialize), so the confrontation was far from straightforward and extremely mediated. There is no real bourgeoisie in China (no state power, no control of commanding heights or army etc etc) so there will be no straightforward confrontation there. 

What we have to do is to work out what social (ie class forces) will be involved in the decisive confrontation, how the bourgeois element will be mediated in China, and in what way we can bring an end to historical crisis of the leadership of the proletariat.

We can't do this by handing our enemies a walkover and letting them win by default. "Oh shit, capitalism just restored itself in China. Well, ain't that a shame. Still, it'll be our turn soon..."

I think if a political Galileo were to ask today's "scholars of Florence" to look into his telescope, the thing they would shrink from observing would be "capitalism pregnant with socialism", and a Chinese workers state whose social and economic fate is by no means decided yet.

This very ugly duckling might make quacking noises, but if we use Galileo's microscope (well, today's equivalent :-) we will see that the DNA is that of a swan.

Cuba - imperialism, bureaucracy, socialism

An article in Havana Times dealt with some pressing issues, and got a dismissive "workers control of the workplace" response, so I responded to both the article and the comment.

Cuba: Counter-revolution vs. Socialist Utopia

http://www.havanatimes.org/?p=58814 

Pedro Campos
HAVANA TIMES, Jan 1 — The genuine counter-revolution doesn’t conceal itself, it protests openly against socialist utopia with arguments like this:

“No. It’s not possible. It can’t be done under the current conditions. We cannot develop large-scale cooperativism, self-management and the consequent democratization of society. The objective and subjective conditions don’t exist.

“We have to first develop capitalism, letting domestic and foreign capital develop the country. They will return to modernize the sugar industry and all other industries, ports and communications for us, though we need a strong and organized working class. Furthermore, imperialism is right here; it could easily appropriate self-managed cooperatives and enterprises and take advantage of democratization to get rid of the historic leaders and put the old oligarchy back in power.”
Those who express such notions — and reveal their leanings toward the new Chinese imperialism — cannot even fool elementary school children. In any case, imperialism, which is one sole entity, can paint itself blue, yellow or red and it would be very easy to appropriate the assets of the government.

These assets belong to “all” in words, but which in truth, the only ones who feel like they are owners are the members of the bureaucratic class, who are increasingly isolated from the people.

If properties belong to the people — to individuals or collectives, to work groups or community groups, to freely associated workers or the self-employed — then all of this would indeed be very difficult for imperialism.

It would not be the same to confront and expropriate a bureaucratic state, ready and willing to share economic power with foreign capital, as it would be to take on people who own the means of production and control their destiny.

The supporters of statism spout a line that sounds orthodoxly Marxist (“the great development of the productive forces of capitalism and the wealth it generates is what will bring on socialism”).

Yet they have destroyed the country’s economy, squandered its resources and compelled its youth, professionals and technicians trained by the Cultural Revolution to choose between leaving the country or selling churros [strips of fried dough] and ice cream cones.

They have in fact become the main brake on the development of new forms of socialist production.

The enemies of de-statization are opposed to the turning over the management and control of the profits of state-run enterprises to workers’ councils. The statists are the ones who are blocking the establishment of an extensive cooperative law for industry and services, while at the same time they prioritize wage exploitation by private wealth.

They are preventing the elimination of the multitude of absurd state monopoly regulations on the market, rejecting the urgently needed unification of the currency and impeding other changes.

In short, they are the ones who are retarding the development and strengthening of the Cuban revolutionary process. They are obstructing the socialization and democratization of economic and political power.

Whether they achieve their objectives or not, only time will tell. What is clear is that many young people, workers, professionals, technicians, homemakers and retirees who have spent their lives for this lamentable system of “state socialism” are unwilling to continue putting up with the deceit.

They’re demanding radical changes to the state-centric economic and social policies of the party/government.

These same people from below — on their own and without waiting for the readiness or approval of the established bureau-bourgeoisie — are carrying out various life-important economic, social, cultural and political initiatives outside of state institutions.

It is within those institutions where many are grabbing on, attempting to control everything possible in society while accusing their opponents complicity with the imperialist enemy.

Any initiatives from outside bureaucratic control are met with the slogan, “Either you are with us, or you are with the imperialist enemy.” For them, then, there are no more options.

One has to ask themself: Who have been the true accomplices of the imperialist enemy?

Have they been those who have shown through their policies that “socialism” — which has never existed — has been a social, economic and political disaster. Are they those who have succeeded in making most people not even want to hear the word “socialism”? Those who have made Latin Americans reject socialism as an approach to people bettering their lives and living more freely?

Are the true accomplices of the imperialist enemy those of us who want socializing and democratizing changes now, with less state and bureaucratic control over the economy and politics?

Alternatively, are they the supporters of counter-revolutionary immobilism, who are counting on foreign investment and private capitalism to save their state-centered bureaucratic wage-labor model of the neo-Stalinist cut, to later “try” to reintroduce the cycle of bourgeoisie expropriation by the “working class”?

Are the accomplices of the enemy the ones who have never set out to change production relations of capitalism?

Are they the ones who wish to deepen the revolution and change everything that resists it or are they those who in the name of change don’t want to change anything, so that everything remains the same, especially the same bureaucracy that has held political power for a half a century and has led the country to the current disaster?

Are they the ones who turn to various forms of violence and repression to combat those who peacefully advocate different ideas?

Likewise, the following will also have to be answered: Can the majority of those old, reactionary, conservative, stiff and accustomed brains, with their old, authoritarian, bureaucratic-centralism-educated ways of command and control change their mindsets, as is demanded by those at the heights of power when self-recognizing the incapacity of the centralized system?

Wouldn’t it be better to set aside those stuck in neo-Stalinism thought and instead empower the people, the younger generations, to democratically develop new forms of social, economic and political organization and new leaders demanded by the changing situation, instead of seeking a “cadre policy” aimed at ensuring the perpetuation of “everything that must be changed”?

I hope the party conference this January will help in finding answers to these questions, whether by action or omission.

2 RESPONSES TO “CUBA: COUNTER-REVOLUTION VS. SOCIALIST UTOPIA”

1. Grady Ross Daugherty says:

   January 3, 2012 at 2:32 am

   Like all Marxists, comrade Pedro apparently believes that only state property is socialist, and that socialist property can only be that owned by the state. The fact that he calls for democratic running of state-owned enterprise by the workers does not alter the fact that he is, in a programmatic sense, a state monopoly socialist.

   The old Utopians made the programmatic error of abolishing private productive property rights immediately. Those entering their exemplary communes put everything into the communal pot, and this was going to show the world how communism could be exampled and built right now, without a multi-generation bridge to is elimination.

   The Marxists speak of socialism as a bridge to a society without private property, then force the abolition of private property onto society at the beginning of the bridge journey. It has never worked.

   Marxism makes the same programmatic error as the Utopians, by making everything productive common, state property, as did Cuba by 1968. Pedro Campos still cannot understand that workers can only achieve democratic self-management of the workplace by owning it directly. He clings to the fantasy that someday, somehow the workers could and would achieve workplace democracy under state monopoly ownership socialism.

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     THIS IS MY RESPONSE:

     
     

     January 4, 2012 at 4:57 am

     Grady thinks that direct workers ownership of the workplace will bring socialism. If that ownership is capitalist – which it will be if the state hasn’t expropriated the capitalist bourgeoisie – then the workers will start off exploiting themselves and before long transform themselves into capitalists using the labour of workers imported from outside the workplace. This is anarchist, autonomist utopianism.

     
     But for a state to expropriate capitalism, it can’t be a bourgeois state – the bourgeoisie won’t expropriate itself. Individual bourgeois rivals – of course! But not the whole class. And to create a non-bourgeois non-capitalist state you need an anti-capitalist revolution that tears the means of production (land, factories, finance) out of the hands of the bourgeoisie, and takes them into its own hands defending them against the raging bourgeoisie/imperialism by force of arms.

     
     The problem of a non-capitalist state run by a reactionary privileged bureaucracy is one facing every workers (plus peasants) revolution. Revolutions can degenerate, and the harsher the pressure from imperialism, and the less well-developed the material preconditions for modern production, the easier this degeneration is. This was seen in the USSR in the 1920s in the losing battle fought by the revolutionary Left Opposition against the degenerating Stalin-led wing of the Communist Party. The defeat of the revolutionaries led to the political degeneration of the USSR and ultimately to its capitulation to imperialism in 1991. And made the successful anti-capitalist revolutions in Yugoslavia, Vietnam and China deformed from the start, since they took the degenerated Soviet Union as their model. No workers democracy – in fact, anything but workers democracy!

     
     Before the threat of imperialist restoration in China (the biggest threat) or Cuba (most important for Latin America and the Americas including the US) can be properly tackled, all this historical experience needs to be examined, understood and assimilated. Which means spreading and discussing in depth the issues and arguments in the 1920s when the revolutionary fire was still bright in the Soviet Union. Which means discussing the Left Opposition and most significantly the arguments and positions of its leader, Leon Trotsky, whose role in the October Revolution together with Lenin can be compared to the teamwork of Fidel and Che in Cuba, with the difference that Lenin and Trotsky were incomparably better versed in Marxism and more deeply rooted in working class revolutionary activity.

     
     Pedro passes over this completely. And this makes his well-meaning words a bit like foam on the waves. History and the workers revolutionary movement are the ocean and the Gulf Stream, speeches detached from these are liable to be flung in the air by a rock and swept away by the wind.

West Germany fails in East Germany

From a discussion list.

July 1 marks the 20th anniversary of the introduction of the deutsche mark in East Germany in the runup to full reunification. But the economic benefits that West German politicians promised failed to materialize. What went wrong?

http://www.spiegel.de/international/germany/0,1518,703802,00.html 

 

Fascinating.

But "What went wrong?" is not the right approach.

"Why has the whole project been such a miserable failure from beginning to end?" is better. With the follow-up questions: "Why do East Germans still miss the old East Germany after two decades, in spite of everything (and there are a LOT of in-spite-ofs)?", and "Why was the whole fiasco foreseeable from the start?"

It failed because it was trying to turn back the wheel of history. It's just as impossible to force socialism back into its capitalist womb as it was to force capitalism back into its feudal womb. Of feudalism back into slave-states. This is very paradoxical - the new states are "weaker" than the old states, but a thousand times more viable. The GDR, the Soviet Union, etc were getting on quite well enough thank you, in spite of the in-spite-ofs. It was the Nomenklatura bureaucrats who were most dissatisfied, not the workers. They sold the workers down the river to keep their power and privileges in the shape of capitalists.

One little example I saw in the paper today can illustrate this. The usual propaganda about Cuba, and the usual crap about the country being on the brink of collapse (all non-capitalist countries are always on the brink of collapse according to official capitalist doctrine)... BUT one tiny tell-tale detail... Things are getting so bad now that SOME workplaces are no longer going to provide free lunches to the workers. FREE LUNCHES FOR THE WORKERS! In a country on the brink of collapse, that has no right to exist according to capitalist propaganda. Way-hay! Give me that kind of poverty any day.

East Germany couldn't be integrated into West Germany without being torn down completely and built up from scratch. And the people didn't want this. And you can't say you're making a people more prosperous if you raze their lives to the ground (unless, of course, if you're the US in Iraq or Afghanistan, you can and do). It could be brought into the Western sphere of power as a reservoir of cheap labour and cheap land, and that's about it. Referring to Russia in 1990, Kissinger wrote that the West had one year to push its reforms through - while the "euphoria lasted". Before people woke up to the fact that they'd been lied to and were being ripped off.

Question two: Why the nostalgia? 5 years after 1917 (at the most) Russians had forgotten all about the Tsar and Tsarism. It was just a bad dream. Poof, gone. It took less than 5 years for the new state to seem natural, and the old state to be deep in the cesspool of history never to be retrieved. In East Germany 20 years have now passed since the return of the capitalism everyone was said to be dying to get back. And the new state is still not natural, and the old state has not been forgotten. Twenty years!! And the richest capitalist state in Europe has fucked up completely in bringing hope and prosperity to a country with the same language culture and (more or less) history. It has poured money into a bottomless historical pit. It just can't afford the requirements. It has neither the money, nor the moral, cultural or social authority for the task.

And if West Germany can't manage to restore capitalism successfully in East Germany, where the hell CAN capitalism be successfully restored?? And by who?

Cuba (In Spite Of) is a model in Latin America. East Germany is not a model in Europe. Europe has no models since Sweden lost its halo.

Question 3: "Foreseeable?" I'll dig up some old discussion contributions I made back in the day. You'll notice that the Kissinger remark fits in with an obvious scepticism towards the whole restoration project. And it should be obvious that no single part of a country can buy up that country's whole economy. Reformist socialists had this illusion in the late forties. And failed. That's not the way economies work or history works. Post-capitalist society - proto-socialism if you like - takes over what it finds and makes something viable of it. Restored capitalist society destroys what it finds and makes a squalid mess of it. 

To force a vigorous baby back into the womb you have to chop it up first. 

Capitalism and the Western way of life bring security, prosperity and happiness to all - except they don't.

And humanity won't have security, prosperity or happiness until Capitalism and the Western way of life have been tossed into the cesspool of history along with Tsarism. And we'll dump the In-Spite-Ofs too, while we're at it.