Archive for the 'Marxism' Category

Examining Lenin and Keynes, both Critics of Finance Capital

by @ Wednesday, May 15th, 2013. Tags: ,
Filed under Capitalism, Keynes, Marxism

lenin statue communist Examining Lenin and Keynes

By Prabhat Patnaik

At first sight no two persons could have been more dissimilar.  One was a Cambridge don, with more than one foot in the British government; a supporter of the Liberal Party, staunchly opposed to the Bolshevik Revolution; an aesthete and a member of the Bloomsbury Group; a life peer in imperial Britain, and a solid, if sensitive, member of the British establishment.  The other was a Russian revolutionary, spending years in exile in acute penury, immersed in bitter conflicts among the émigrés, until suddenly confronted with a revolutionary uprising whose strivings and possibilities he comprehended with such clarity that he came to lead it, facing a civil war, a typhus epidemic, and an assassination attempt that ultimately claimed his life.

The secure tranquillity of the life of the one contrasted sharply with the tempestuous violence that continuously haunted the life of the other.  What could these two have in common?

For a start each felt a deep intellectual respect for the other, despite their political differences.  In his report to the second congress of the Communist International, having called John Maynard Keynes “a British bourgeois pacifist”, “a petit bourgeois philistine” and “an implacable enemy of Bolshevism”, V.I. Lenin went on to base his entire thesis about why conditions were ripe for a world revolution on Keynes’s analysis in The Economic Consequences of the Peace.  He even paid Keynes the compliment that “nobody had written about the condition of capitalism better than Keynes”.  Keynes, on his part, not only referred in several places to Lenin’s “brilliance”, but, in this same book, said apropos of inflation: “Lenin is said to have declared that the best way to destroy the capitalist system is to debauch the currency; . . . Lenin was certainly right.”

But mutual intellectual respect among bitter adversaries is neither unusual nor particularly remarkable.  What is really common to both these thinkers is their belief that the hegemony of finance in the period of maturity of capitalism had brought about a denouement where it became impossible for the system to go on as before.  Of course each had his own understanding of why finance had made capitalism impossible, and each had his own reading of where to go from there.  But the belief that a sheer continuity of the existing order was no longer possible was common to both.

Keynes saw the hegemony of finance as saddling capitalism with such extraordinarily high levels of unemployment that people, he feared, would not for long tolerate such an inhumane system.  Under this hegemony, speculation was no longer a mere bubble on a steady stream of enterprise, but became a torrent that buffeted enterprise around. 

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‘Emancipate Your Minds, Seek Truth from Practice!’: Contemporary Development of Marxist Philosophy in China

by @ Saturday, May 11th, 2013. Tags:
Filed under Capitalism, China, Marxism, Socialism

Posted on March 12, 2011 by Socialism and Democracy Online

There are many points of interest pertaining to the development of Marxist philosophy in contemporary China. This paper will focus on the following areas and problems: the debate about the criterion of truth; Marxist philosophical textbook reform; the inquiry into the human agent and subjectivity; Marxism and Confucianism; Deng Xiaoping’s theory; and the socialist market economic system. Let’s start with the debate about the criterion of truth, for this is the historical starting-point of contemporary Marxist philosophy in China.

1. The Debate about the Criterion of Truth

Academically, the real development of Marxist philosophy in contemporary China started in 1978. In that year, China’s intellectual life witnessed a great event. People in every walk of life were engaged in a debate: What is the criterion of truth?

Initially, the debate was related to the political struggle and the ideological debates within the Chinese Communist Party. Chairman Mao Zedong died in 1976, and the Cultural Revolution was officially declared to be ended. However, in ideology nothing seems to change much. The Chair of the Communist Party at that time was handpicked by Mao. As a way to maintain his position, he insisted on the doctrine of the “two whatevers”: (1) whatever policy decisions Mao had made must be firmly upheld; (2) whatever instructions Mao had given must be followed unswervingly. Hence, for the opposite faction, led by Deng Xiaoping (who was purged by Mao in 1975) to come back to power, it was necessary to break these “two whatevers.”

On May 11, 1978, a prominent Chinese newspaper, the Guangming Daily, published an article entitled “Practice Is the Only Criterion for Judging the Truth,” signed by “the Special Commentator.” The article argued that for all forms of knowledge, including Marxism, the nature of their truth must be judged and proved by practice. All scientific knowledge, including Marxism, should be amenable to revision, supplementation, and development in practice, in accordance with the specific conditions under which it is to be applied. This paper was widely echoed and provoked lively discussions throughout China. These led to a consensus that it is practice, not Mao’s words, that can tell us what is right and what is wrong. The immediate consequence of this great debate was that the advocates of the “two whatevers” lost their power, and Deng Xiaoping regained his power and started the Chinese economic reform. In contrast to the “two whatevers,” Deng’s motto is, “It does not matter whether a cat is black or white; as long as it can catch mice, it is a good cat.”

However, the debate has had a far-reaching influence on Chinese social science, in particular, on the study of Marxism itself. Since the Communist party came to power in 1949, Marxism, and its Chinese representative, Mao Zedong’s thought, has been regarded as the absolute and as a completed truth system. The only role philosophers could play¾and were required to play¾was to prove the rightness or truth of Marxism and Mao’s theory. Only political leaders, actually only Mao himself, could establish new truth and develop Marxism. Just as philosophy was the handmaiden of theology in the medieval West, so in China philosophy became the servant of Mao’s politics. Any question or criticism put to Marxism and Mao’s theory was regarded as a political challenge. For Mao, the most important thing that Marxist philosophy can teach is its theory of class struggle and the theory of proletarian dictatorship. Mao’s philosophy actually became a kind of “Struggle Philosophy.”

Now the debate about the criterion of truth and the establishment of practice as that criterion broke this myth of Marxism and of Mao’s theory. Marxism became a subject that could be reflected upon, examined, renewed, and developed. The truth-criterion discussion of 1978 was indeed a movement of enlightenment, a movement of thought liberation. It paved the way for contemporary China’s economic development, and it also paved the way for any possible new contributions to Marxism. It used to be the case that one could only “insist” on Marxism; now we could “develop” Marxism, and many now believed that only by developing Marxist philosophy could one really insist on it. It used to be the case that academic philosophy was always subordinate to the leaders’ thought and did not have any independent status. Since 1978, however, philosophical research has won a relatively independent academic position.

2. Reform of the Philosophical Textbook

The immediate effect of these developments for Chinese Marxism was the publication of new editions of the Marxist textbook. One would think that a new edition of a textbook is a matter of pedagogy, of the teaching of philosophy, rather than a matter of philosophical development, or development in philosophical thought. This is not the case in China, however.  For, generally speaking, it is only the Marxism embodied in the textbook that is regarded as the orthodox Marxism, the “true” Marxism that should be learned. A change in the textbook means therefore a change of attitude towards Marxism. To a great extent, the changes of the textbook mirror the situation of Marxist philosophical research.  To get a new edition of the Marxist textbook published, what is essential is not the approval of the referees, but that of the government. Now the situation has changed significantly, yet the reform and reconstruction of the official textbook is still regarded as an important aspect of the progress of Marxist philosophy.

Until 1978, the main textbook of Marxist philosophy in China was Dialectical Materialism and Historical Materialism (edited by Ai Siqi, the former leader of the Party School of the Communist Party). Its contents and structure were basically transplanted and transferred from the textbook of Marxist philosophy in the former Soviet Union, and it was deeply influenced by Stalinist dogmatism. Though political relations between the Soviet Union and China were broken in the early 1960s, this type of official philosophical textbook had remained unchanged.

Since 1978, Chinese philosophers have introduced important modifications or re-formulations to different aspects and levels of Marxist philosophy.

First, breaking away from the constraint of the traditional textbook, they returned to the original works of Marx, Engels, and Lenin. Many concepts have been redefined, such as matter, consciousness, existence, spirit, static, motion, ideals, struggle, social existence, social consciousness, knowledge, truth, practice. Various basic views and positions were re-evaluated, such as, “the basic problem of philosophy,”  “the challenge of epistemological skepticism,” “the relationship between dialectics and metaphysics,” “the relationship between materialism and idealism,” “the basic contradictions in human society,” “epistemological methods,” and so on. Some Marxist theories were abandoned, whereas others were re-formulated.

Second, many new concepts and views, mainly derived from Western philosophy and/or sciences, were introduced into the Marxist philosophic textbook, including concepts such as: subject and subjectivity, object and objectivity, medium, element, structure, function, information, feedback, control, social system, social organism, purpose, emotion, will, cognitive model, thinking world, value, evaluation, and so on; and views such as:  “the idealist way and the practical way of human understanding of the World”; “the interactive law between subject and object”; “the farsightedness, selection, and creativity of human cognition”; “subjective principle and the system principle in cognition”; “the unity of truth and value”, “the concrete and historical unity among Truth, Good, and Beauty.” Some new research methods were transplanted, and applied to Marxist philosophical research, for example, the methods of genetic theory, atomic analysis, constructive explanation, and functional analysis.

Third, many new domains have been explored, and many new branches have been introduced and developed, for example, axiology, theory of practice, philosophical methodology, philosophical anthropology, the theory of social organisms, the theory of social control, the genetic theory of cognition, the theory of cognitive evolution, philosophy of man, philosophy of science, philosophy of humanities and social science, scientific epistemology, social epistemology, philosophy of daily life, feminist philosophy, philosophy of environment and ecology, and so on.

These philosophical achievements provided the new foundation to the textbook reform and reconstruction of Marxism in China. There are many textbooks with different outlooks. I would like to mention briefly the following four that are the most influential.

a. Dialectic Materialism and Historical Materialism, editor-in-chief, Xiao Qian, a professor at the People’s University of China. The book maintains the main structure of Ai Siqi’s textbook but thoroughly absorbs the new achievements of the sciences. It includes sub-divisions such as materialism, dialectics, and epistemology, theory of society and history, and methodology. It is the most influential textbook of Marxist philosophy in China. The problem of this book is that some of the new contents of the philosophy could not find their suitable place in the old system.

b. The Basic Principles of Marxist Philosophy, chief editor, Gao Qinghai, a professor at Jilin University. It is based on the historical development of Western philosophy and of Marxist philosophy. The major strength of the book lies in its attempt to locate the historical sources of the main philosophical concepts and its emphasis on understanding Marxist philosophy historically. The problem of this book is its difficulty in distinguishing the content of Marxist philosophy from that of Western philosophy. The other problem is that it is too historical, and somewhat weak in the construction of philosophical arguments.

c. Professor Huang Danshen, of Beijing University, tries to compile a system of Marxist philosophy according to his understanding of Lenin’s Philosophical Notebooks. The structure of his textbook system is based on 36 pairs of concepts. Since Lenin’s philosophical notebooks are his reading notes on Hegel’s Logic, Huang’s plan carries the obvious influence of Hegel’s philosophy. The other problem of his system is that 36 pairs of concepts are not enough to include all aspects of philosophy.

d. Professor Xia Zhentao of the People’s University of China, and Ouyang Kang [the present author], a professor at Wuhan University, have created another new system of Marxist philosophy according to their understanding to Karl Marx’s “Practical Materialism.” We understand that the major characteristic of Marxist philosophy is its emphasis on “practice.” This is also the basic point of difference between Marxist and non-Marxist philosophy. It is a fact that Karl Marx never called his philosophy dialectical materialism or historical materialism; instead he referred to it as “Practical Materialism” in his Economic and Philosophic Manuscripts (1844). His most famous sentence was the one that appeared on his tombstone: “Philosophers only explain the world, but the problem is to change it.” Based on Marx’s ideas, we developed a comprehensive understanding of the concept of “practice” and redefined the nature of Marxist philosophy as a kind of Dialectical, Historical, Humanistic, and Practical Materialism. Marxist philosophy is a philosophy of the relationship between Man and the World. The highest function of Marxist philosophy is to help people to recognize, to understand, to evaluate, to control, to develop, and to deal with this relationship more rationally and more efficiently. The new outlook of Marxist philosophy will be a kind of new Subjective-Methodological system.

At the present time, the reform and the reconstruction of the textbook of Marxist philosophy is still going on. We believe that further developments of Marxist philosophy in China should be individualized and personalized, rather than following a unified pattern. Different Marxist philosophers should be encouraged to develop their own philosophical systems based on their own understanding of Marxist philosophy, and they should use their special research methodology.          

3. Exploring the Human Agent and Subjectivity

In the past, human beings had little standing in Chinese Marxist philosophy. Even when the notion of man was mentioned occasionally, it mainly referred to the collective, group, class and nation, but not to the individual. This has been criticized as “stressing nature but forgetting man” – i.e., stressing the collective man but forgetting the individual person. Now it is agreed that the individual human being should be the main topic of Marxist philosophy.

With the publication of Marx’s newly discovered  Economic and Philosophic Manuscripts,* Chinese philosophers have become more interested in the problems of humanism and alienation. Some claim that the individual human being should be the starting point of Marxist philosophy. Others think that problems of the individual human being should be the highest target, the primary task, the central subject-matter and the final destination of Marxist philosophy. Still others suggest that humanism can be included in Marxism if it is defined as a basis for ethical consideration. The discussion, however, suffered a setback in the anti-liberalism movement of 1984.

Another related topic is subjectivity. Both subject and object are new concepts of Chinese Marxist philosophy that did not appear in the old philosophical textbook. In the 1980s, discussion of this issue was not limited to Marxist philosophy, but was also found in the literatures of critical theory, ethics, aesthetics, and so on. Why were Chinese intellectuals so interested in the problems of subject, subjectivity, and the subjective principle? The answer is that in discussing subjectivity, the central philosophical position of the individual human being could be established. There are many different positions in the inquiry into subjectivity. Some argue against it on the ground that to emphasize subjectivity would lead to the denial of cognitive objectivity. Others, on the other hand, push the subjective principle to the extreme of advocating an absolute free will. My M.A. thesis is entitled “On Subjective Ability,” and I have published many papers on this topic. I believe that the subjective movement in contemporary Chinese philosophy was actually a thought liberation movement.

In May 1997, Professor Huang Danshen of Beijing University organized a National Association of the Philosophy of Man, which held its first conference in Beijing. The Philosophy of Man has become a very hot topic in China today. One strong feature is to connect this topic with the new outlook of Marxist philosophy. Some claim that the Philosophy of Man is the hallmark of contemporary Marxist philosophy. Others think that the Philosophy of Man is only a part of Marxist philosophy. Nevertheless, the efforts to establish the Philosophy of Man have stimulated much philosophical research and have greatly extended the development of Marxist philosophy in China.

4. Marxist Philosophy and Confucianism

How should Marxist philosophy deal with its relationship to the traditional Chinese value system?           

The controversy between traditionalism and anti-traditionalism has been hot in modern China for many decades. Since the New Cultural Movement of May 4, 1919, anti-traditionalism was the main trend. To some, revolution means rejecting traditional Chinese culture, especially Confucianism. Mao Zedong was deeply influenced by traditional Chinese culture in his early years. But one of the most important aims of his Cultural Revolution was to get rid of Confucianism, and even of all traditional Chinese culture. Traditional Chinese culture is regarded as an obstacle to China’s modernization. Others looked down upon Chinese philosophy, and believed that Chinese philosophy was not mature, and that it lacked logic. They admired only Western civilization and philosophy. Meanwhile, the more traditionally-minded scholars insisted that Chinese culture and philosophy should be the mainstream in China. Now the problem is whether it is possible to combine Marxist philosophy with traditional Chinese culture. Can Marxist philosophy be developed without learning from Chinese culture and philosophy? How can Marxist philosophy become intrinsic to contemporary Chinese culture? How can Marxist philosophy find its foundation and roots in Chinese soil?Almost all Chinese philosophers now realize the necessity of combining Marxist philosophy and traditional Chinese philosophy. Integrating Chinese philosophy and culture into Marxist philosophy is the necessary way to develop Marxist philosophy in China. It is also the necessary way to discover and recognize the contemporary meaning of traditional Chinese culture and philosophy.  There are many positive elements in traditional Chinese culture and philosophy that may be profitably absorbed into Marxist philosophy. Here we briefly list some of them:           

The idea of the unity of Man and Heaven (Nature)
Now our entire world is deeply involved in the ecological controversy surrounding the relationship between Man and Nature. The sharp opposition between man and nature has been characteristic of much traditional Western culture and philosophy, and Marxism itself is a product of that tradition. To find possible ways to achieve a harmony of man and nature has from the beginning been a basic theme in traditional Chinese philosophy. Chinese philosophers insisted that nature is to be regarded not as the slave of man but as the equal partner in human life and in the formation of humanity. Man should stay on good terms with nature. Human beings should respect and protect nature. To protect nature is to protect the necessary environment of human life. Traditional Chinese philosophy is full of ecological insights and anticipations.  The same ecological concerns can be found in Karl Marx’s Economic and Philosophic Manuscripts.   
The outlook and method of the Mean (Zhong Yong).
The Mean, also called “the Impartiality” or “the Doctrine of the Mean,” is the Middle Way.  Epistemologically, the method of the Mean seeks to master the object in a complete and rounded way by avoiding any kind of extreme, excess, and partiality. In the context of social life, the Middle Way prescribes that each human being should form his own judgment regardless of the opinions of others. 

Harmony among peoples
Chinese philosophy emphasizes peace and harmony among peoples and condemns irrational and unnecessary conflicts and unjust wars. Chinese philosophers insisted that human beings should respect and help each other. And their harmonious relationship is to be based on the common understanding of virtues. Rulers should treat their people as they treat their children. To show respect to the old and to protect youth were regarded as the basic virtues in ancient China. Traditional Chinese virtues, such as diligence and filial piety, have their contemporary meanings in today’s human life and should become the intrinsic content of Marxist ethics.

Recently there have been heated discussions on Asian Values in the East and also in the West.. It is generally agreed that Confucianism is the main core of Asian values, which include in particular “Family Values.”   Many Chinese philosophers believe that the teachings of traditional Chinese philosophy could still be applicable to human life today.  They retain their relevance in contemporary world culture.
5. Deng Xiaoping Theory

Deng Xiaoping theory is regarded as the new stage and new outlook of Marxist philosophy in contemporary China. It is the guiding ideology in building Socialism with Chinese Characteristics. Deng’s thought has been intensively studied.

I think that the most important contributions of Deng Xiaoping theory lie in the liberation of the human spirit in contemporary China. The core and key point of Deng’s theory is “emancipating the mind” and “seeking truth from facts.”  Seeking truth from facts is the quintessence of Marxism-Leninism and Mao Zedong Thought. Deng emphasized this in 1978 and used it to counter the “two whatevers,” thus opening up a new area for China. It was called the first Spirit Liberation Movement in China.  After the political incidents in 1989, there were some arguments about where China should go, especially whether China should continue its reform and open policy. Deng stressed the emancipation of the mind in his trip to South China in 1992. This affirmation cleared up many important misconceptions about Socialism, and advanced the reform to a new stage. This was called the second Spirit Liberation Movement, which initiated the socialist market system in China. After Deng’s death, there have been some debates regarding his theory and practice. Secretary-General Jiang Zemin and the central committee of CPC stressed these two aspects again in its 15th National Congress in September 1997. This was regarded as the third Spirit Liberation in today’s China.

Deng Xiaoping’s other important contribution to Marxist philosophy is to establish a new criterion for socialist theories. He claimed that the fundamental questions we should ask about socialism are what socialism is and how to build it. He raised three fundamental criteria for judging a proposal or a policy: whether it is favorable for promoting growth of the productive forces in a socialist society, whether it is favorable for increasing the overall strength of the socialist state, and whether it is favorable for raising the people’s living standards. The criteria were called the “three favorables.”  By these three value criteria, people could actually evaluate all social policy and social administration and could judge between right and wrong and between good and bad.

Deng Xiaoping theory is a system with rich contents. He has greatly contributed to the contemporary development of China. His philosophical ideas give us enlightenment although they do not complete the development of Marxist philosophy in China. Deng’s theory itself should be developed in time.

6. Marxism and Chinese Socialist Market System

One special and current problem facing Chinese Marxist philosophers is how Marxist philosophy answers the challenges of constructing a socialist market economic system in China. In the past 20 years, the economic system in China has been changed from the central planning system via planned commercial system to a socialist free market system. The economy has developed rapidly. The new market system has thrown all traditional disciplines, such as philosophy, literature, and history into turmoil. As everyone knows, Marxism in China had a privileged political position in the planning of the social system. Now Marxist philosophical research has become a kind of academic research. The authority of Marxist philosophy can only be based on its content and function, depending on whether it is recognized by society. Marxist philosophers stand on the same level as other scholars. It is not only a kind of challenge but also a fair competition. This situation forces and stimulates Marxist philosophers in China to do their work better than ever. It is the motivating force underlying the development of Marxist philosophy as an academic discipline.

The socialist market economy, as a part of Chinese Marxism, is both a heritage and a development of Marxist economics. In our prior understanding of Marxism, socialism is the opposite of capitalism. The basic nature of capitalism is private ownership, free market economic system, and wealth distribution according to the ownership of capital. As the opposite of capitalism, the basic nature of socialism lies in the public ownership of capital, planned economic system, and wealth distribution according to work. The former Soviet Union, some Eastern European countries, and China had tried for many years to follow these criteria for socialism, and the consequence is not good at all. This situation led the Chinese Communist Party to re-think and re-understand Marx and Engels, especially the ideas of their later years. If one inquires more deeply into why they contrasted socialism with capitalism, one will discover that in their understanding, the highest goal of socialism is to create the higher productive forces, to get rid of social inequality, to destroy poverty, and to make all social groups richer. Socialism is thus a more advanced system than capitalism. But these ideas are not easy to actualize. Each country has to find its own effective and possible way according to its own history and reality. Only when your socialist theory succeeds can it be proved to be true socialism, and only then can your practice be accepted and followed by your people. Otherwise socialism will have no reason and no power to attract the people. Here we should insist that practice is the only criterion to judge the truth of socialism and of Marxism.

The Chinese socialist market economic system is based on following arguments.           

1). Marxist socialism is not a kind of dogma but an active and practical movement. The highest goal of socialism is to develop productive forces in the most effective way. The basic doctrine of socialism is to enrich all members of society. To meet its goals, the development models of socialism in the world are not universal and unique but variable and multiple. In different countries, socialism requires different models and different ways. This is a necessary way to realize and to develop socialist theory.

2). The market, as an economic form, is neutral in relation to political and ideological systems. The market system does not belong only to capitalism but can also be used by socialism. Today’s world is basically a global market economic system. Any individual country should consciously join in the world market system if they want to become a member of international society rather than being isolated. This also applies to China.

3). It is impossible to complete the transition from capitalism to communism in one step. There are some middle stages between them. Socialism is a middle stage in the transitional process. It should contain the characteristics of these two societies.

4). The Socialist free market system with Chinese Characteristics is a new development of Chinese Marxism. On the one hand, it insists that the highest aims of socialism are to develop the productive forces and to enrich people’s lives to the greatest extent. On the other hand, it fits with the down-to-earth situation of contemporary China.

5). It has been proven through many years’ unsuccessful practice in China before 1978 that the pure central planning economic system was a way neither to develop productive forces nor to raise the people’s living standard. The fastest continuous economic development in China since 1978, especially since 1992, has strongly proved the benefits of the socialist market system.

Reference

Ai Siqi ed.: Dialectic Materialism and Historical Materialism, People’s Press, Beijing, 1970.

The Special Commentator: “Practice Is the Only Criterion for Judging the Truth”, Guang-ming Daily, May 11, 1978.

Gao Qinghai: The Basic Principles of Marxist Philosophy, Jilin Press, Changchun 1989.

Xiaoqian etc. ed. The Basic Principles of Marxist Philosophy, The Chinese People’s University Press, Beijing, 1992.
Ouyang Kang: An Introduction to Social Epistemology, China Social Science Press, Beijing, 1990.

Ouyang Kang: The Methodology of Philosophy Research, Wuhan University Press, Wuhan, 1998.

Ouyang Kang: From the Discussion of Truth Criterion to the Construction of the New Morphology of Marxist Philosophy, TIANJING SOCIAL SCIENCES, 1998(6)

The author: Prof. Dr. Ouyang Kang, Dean of the School of Humanities, Head of the Department of Philosophy, Wuhan University, Wuhan, Hubei 430072, P. R. China, Tel/Fax +86-27-87882755 , Email: kouyang@whu.edu.cn.

*[Ed. note: Although Marx’s 1844 manuscripts were first published in 1932 (in Berlin), it was not until 1979 that they were published in China.]



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Questioning the Falling Rate of Profit:

by @ Friday, April 12th, 2013. Tags: , ,
Filed under Capitalism, Marxism, Socialism, Technology

A Critique of Heinrich in MR on Technology, Value and Crisis

By Keith Joseph

The Kasama Project

Monthly Review published an essay by Michael Heinrich critiquing Marx's work on the falling rate of profit called:Crisis Theory and the Falling Rate of Profit.  I haven't seen any response yet.  Here's mine.

Heirnrich puts forth three basic theses: 1. Marx, at the end of the day, does not present a coherent and final crisis theory.  2. Marx had two more or less distinct economic projects.  The first begins with the Grundrisse (although this text appears to the public last) and includes the three volumes of Das Kapital and the Theories of Surplus Value. This was the project as Marx originally conceived it and announced it in the Preface to A Contribution to the Critique of Political Economy (the six book plan). The second, lesser known, project begins after 1865 and see Marx re-working his earlier formulations in light of new evidence and even scaling down his ambitions.  He now believes he will only be able to complete part of his work and others will have to finish it.  3. The math on the falling rate of profit doesn’t add up.

The essay is very interesting and I am certainly eager to investigate Marx’s “second” project more thoroughly.  Heinrich does a fine job of explaining how Marx conceived the critique of political economy  at various moments and his emphasis on Marx’s willingness to continually question and re-think his findings is important and worthy of emulation.

I found Heinrich’s refutation of the falling rate of profit's math unconvincing because it is not clear that Heinrich understands the falling rate of profit at the conceptual level.  Setting the rate of profit and the rate of surplus value into mathematical formula  is an important step in the proof of the theory and the formalization of theory can bring clarity but the way that Heinrich proceeds obfuscates more than it reveals.  

Simply put, rising productivity of labor manifests itself in a falling profitability of capital.  It is not clear in Heinrich’s critique that he understands this basic point at the conceptual level.

Rising labor productivity means less labor embedded per unit of output so the commodity bears increasingly less value. Additionally, rising labor productivity destroys existing values since value is determined by socially necessary labor times and rising labor productivity shortens socially necessary labor times. So, existing values must compete in the market with values created under the new conditions of production.  Any labor time above the new socially necessary standard is disappeared in the market as a result of competition.  A falling rate of profit can co-exist, for a time, with a rising mass of profit if the capital relation is reaching new places and markets are expanding.  Heinrich ignores all this.  Now he does mention the importance of the credit system (which is the most developed form of money under capitalism) and its importance to understanding modern crisis.  The credit system is no doubt crucial.

Heinrich’s error, I think, is revealed in the following. Heinrich quotes a famous passage from the Grundrisse and then he argues that it is mistaken. 

“In the so-called “Fragment on Machines,” one finds an outline of a theory of capitalist collapse. With the increasing application of science and technology in the capitalist production process, “the immediate labour performed by man himself” is no longer important, but rather “the appropriation of his own general productive power,” which leads Marx to a sweeping conclusion: “As soon as labour in its immediate form has ceased to be the great source of wealth, labour time ceases and must cease to be its measure, and therefore exchange value [must cease to be the measure] of use value. The surplus labour of the masses has ceased to be the condition for the development of general wealth, just as the non-labour of the few has ceased to be the condition for the development of the general powers of the human head. As a result, production based upon exchange value collapses.”

Heinrich’s then says:

These lines have often been quoted, but without regard for how insufficiently secure the categorical foundations of the Grundrisse are. The distinction between concrete and abstract labor, which Marx refers to in Capital as “crucial to an understanding of political economy,” is not at all present in the Grundrisse.6 And in Capital, “labor in the immediate form” is also not the source of wealth. The sources of material wealth are concrete, useful labor and nature. The social substance of wealth or value in capitalism is abstract labor, whereby it does not matter whether this abstract labor can be traced back to labor-power expended in the process of production, or to the transfer of value of used means of production. If abstract labor remains the substance of value, then it is not clear why labor time can no longer be its intrinsic measure, and it’s not clear why “production based on exchange value” should necessarily collapse. When, for example, Hardt and Negri argue that labor is no longer the measure of value, they do not really refer to the value theory of Capital but to the unclear statements of the Grundrisse.7

Hardt and Negri’s arguments, regardless of what they may assert, are not consistent with the Grundrisse and that they appeal to the authority of the Grundrisse is not a mark against that text.  But that is a minor point.  Heinrich points out that value embedded in a machine (that is the labor time embedded in the machine) is transferred from the machine to the product.  This is correct. 

But when Heinrich says:

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Resistance Is Surrender

by @ Thursday, March 21st, 2013. Tags:
Filed under Capitalism, Marxism, Socialism

‘Bombard Those in Power with Strategically Well-selected, Precise, Finite Demands…’

By Slavoj Žižek

London Review of Books

One of the clearest lessons of the last few decades is that capitalism is indestructible. Marx compared it to a vampire, and one of the salient points of comparison now appears to be that vampires always rise up again after being stabbed to death. Even Mao’s attempt, in the Cultural Revolution, to wipe out the traces of capitalism, ended up in its triumphant return.

Today’s Left reacts in a wide variety of ways to the hegemony of global capitalism and its political supplement, liberal democracy. It might, for example, accept the hegemony, but continue to fight for reform within its rules (this is Third Way social democracy).

Or, it accepts that the hegemony is here to stay, but should nonetheless be resisted from its ‘interstices’.

Or, it accepts the futility of all struggle, since the hegemony is so all-encompassing that nothing can really be done except wait for an outburst of ‘divine violence’ – a revolutionary version of Heidegger’s ‘only God can save us.’

Or, it recognises the temporary futility of the struggle. In today’s triumph of global capitalism, the argument goes, true resistance is not possible, so all we can do till the revolutionary spirit of the global working class is renewed is defend what remains of the welfare state, confronting those in power with demands we know they cannot fulfil, and otherwise withdraw into cultural studies, where one can quietly pursue the work of criticism.

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21st Century Socialism in Vietnam

by @ Wednesday, December 26th, 2012. Filed under Cuba, Marxism, Socialism, Vietnam

Nguyen Phu Trong Meeting with Raul Castro

Socialism and the Path to Socialism - Vietnam’s Perspective

By Nguyen Phú Trong
General Secretary of the Communist Party of Vietnam

Nguyen Phu Trong, general secretary of the Communist Party of Vietnam, paid an official friendship visit to Cuba and gave a presentation at the Nico Lopez Party School of the Cuban Communist Party.

Following are excerpts from Party leader Trong’s presentation. 

Socialism and the path to socialism is a fundamental and practical theoretical topic with broad and complicated content, demanding thorough and in-depth study. I hereby mention just a few aspects from Vietnam’s perspective for your reference and our discussions. And several questions are focused: What is socialism? Why did Vietnam choose the socialist path? How to build socialism in Vietnam step by step? How significant has Vietnam’s renewal and socialism building process been over the past 25 years? And what lessons have been learnt?

As you know, socialism can be understood in three different aspects: socialism as a doctrine, socialism as a movement, and socialism as a regime. Each aspect has different manifestations, depending on the world outlook and development level in a specific historical period. The socialism I want to discuss here is a scientific socialism based on Marxist-Leninist doctrine in the current era.

Previously, when the Soviet Union and its constellation of socialist countries existed, striving for socialism in Vietnam seemed logical and implicitly validated. But after the collapse of the Soviet Union, socialist regimes fell in many countries and the worldwide socialist revolution began to ebb. Now, the cause of socialism has been revived, sparking widespread interest and heated debate.

It is true that capitalism has never been more widely accepted than it is now, and it has achieved great successes, especially in liberating and developing productive capacity and advancing science and technology. Many developed capitalist countries have established social welfare systems which are more progressive than ever before, thanks to strong economies and long struggles by their working class. However, capitalism cannot overcome its inherent fundamental contradictions.  We are witnessing a financial crisis and economic decline which originated in the US in 2008, rapidly spread to other capitalist centers, and has impacted every country around the globe.

In addition to this economic crisis with its related food and energy crisis, a depletion of natural resources and deterioration of the environment are posing great challenges to the existence and development of humankind. These are the consequences of a socio-economic development process which champions profits, considers wealth and material consumption the measures of civilization, and makes individualism the main pillar of society. They are the essential characteristics of capitalism’s mode of production and consumption.  The ongoing crisis once again proves that capitalism is anti-advancement, anti-humanity, and unsustainable economically, socially, and ecologically. As Karl Marx said, capitalism damages the things that constitute its wealth, namely, labor and natural resources. According to scientists, the current crisis cannot be completely resolved in the framework of a capitalist regime.

Recent social protest movements flaring up in many developed capitalist countries have exposed the truth about the nature of capitalist political entities. In fact, democratic regimes which follow the “free democracy” formula advocated and imposed by the West never ensure that power truly belongs to the people and for the people—the natural factor of democracy. Such a power system still belongs mostly to the wealthy minority and serves the interests of its major capitalist groups. A very small proportion, as small as 1% of the population, holds the majority of the wealth and means of production, controls most of the financial institutions and mass media, and dominates the whole society.

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Krugman, Marx and the ‘Rise of the Robots’

by @ Sunday, December 9th, 2012. Filed under Globalization, Marxism, Technology, Unemployment

'Marxist Echoes' Indeed...It's Called the Crisis from the Growing Organic Composition of Capital over Labor--and the Tendency of the Rate of Profit to Fall  -Ed

 

By Paul Krugman
SolidarityEconomy.net via NYTimes

Dec. 8, 2012 - Catherine Rampell and Nick Wingfield write about the growing evidence for "reshoring" of manufacturing to the United States. They cite several reasons: rising wages in Asia; lower energy costs here; higher transportation costs. In a followup piece, however, Rampell cites another factor: robots.

    The most valuable part of each computer, a motherboard loaded with microprocessors and memory, is already largely made with robots, according to my colleague Quentin Hardy. People do things like fitting in batteries and snapping on screens.

    As more robots are built, largely by other robots, "assembly can be done here as well as anywhere else," said Rob Enderle, an analyst based in San Jose, Calif., who has been following the computer electronics industry for a quarter-century. "That will replace most of the workers, though you will need a few people to manage the robots."

Robots mean that labor costs don't matter much, so you might as well locate in advanced countries with large markets and good infrastructure (which may soon not include us, but that's another issue). On the other hand, it's not good news for workers!

This is an old concern in economics; it's "capital-biased technological change", which tends to shift the distribution of income away from workers to the owners of capital.

Twenty years ago, when I was writing about globalization and inequality, capital bias didn't look like a big issue; the major changes in income distribution had been among workers (when you include hedge fund managers and CEOs among the workers), rather than between labor and capital. So the academic literature focused almost exclusively on "skill bias", supposedly explaining the rising college premium.

But the college premium hasn't risen for a while. What has happened, on the other hand, is a notable shift in income away from labor:

If this is the wave of the future, it makes nonsense of just about all the conventional wisdom on reducing inequality. Better education won't do much to reduce inequality if the big rewards simply go to those with the most assets. Creating an "opportunity society", or whatever it is the likes of Paul Ryan etc. are selling this week, won't do much if the most important asset you can have in life is, well, lots of assets inherited from your parents. And so on.

I think our eyes have been averted from the capital/labor dimension of inequality, for several reasons. It didn't seem crucial back in the 1990s, and not enough people (me included!) have looked up to notice that things have changed. It has echoes of old-fashioned Marxism -- which shouldn't be a reason to ignore facts, but too often is. And it has really uncomfortable implications.

But I think we'd better start paying attention to those implications.



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China’s ‘New Left’ Grows Louder

by @ Sunday, October 7th, 2012. Filed under China, Marxism, Socialism

Followers of Bo Xilai Criticize Direction of Communist Party, Exposing Leaders to Sensitive Questions Over Mao's Legacy

By BRIAN SPEGELE
SolidarityEconomy.net via Wall Street Journal

BEIJING Oct 6, 2012—Supporters of ousted political leader Bo Xilai are turning up the note of political discord in China with increasingly loud criticism that the policies of current Communist Party leaders are widening inequality and breeding social unrest.

The movement, known as the new left, remains relatively small and obscure, and is unlikely to have a major impact on the coming shuffle of party leadership positions. But criticism from Communist hard-liners in the era of online social media places China's leaders in a tricky position as a debate over the direction of the party and China's economic model is quickly spreading from universities and closed-door sessions into public view.

Calls from what's known as China's new left are growing in volume, laying bare divisions around Mao's legacy and the role of the state in China's economy, placing leaders in a tricky position. Anti-Japan protesters hold portraits of Mao outside the Japanese Embassy in Beijing last month.

The new left—a loose collection of academics, lower-ranking government officials, writers and overseas activists—advocates a stronger hand for the state in economic planning as well as a return to the values put forth by the late Chairman Mao Zedong. The new left argues that China's economic reforms over more than 30 years have led to wide income disparity, and the movement has criticized the takedown of Mr. Bo, once its most visible leader.

Dealing with the new left requires some balancing for the party. Unlike the political activists who often oppose the party on democratic or human-rights grounds, the new leftists act as defenders of the vision Mao once laid out for China: Rejecting them outright would risk exposing party leaders to sensitive questions around the very foundation the party is built on.

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Capitalism’s Ideological Crutches

by @ Monday, September 3rd, 2012. Tags:
Filed under Capitalism, Marxism, Wall Street

 

By Richard D Wolff 
Online University of the Left  via Truthout | Op-Ed

Sept 3, 2012 - Capitalism's crises have always threatened it. True, capitalism's defenders could fairly easily dismiss crises when they were shallow and short with limited suffering for the unemployed, bankrupt and their dependents and communities. Some said they were merely "bumps in the capitalist road" to growth and prosperity. Others saw crises as capitalism's way to "clean out inefficient firms" and thus prepare its next upswing. Such interpretations of capitalism - ideologies - have long served to counter criticisms of its instability, recurring cycles and the suffering they impose.

However, such ideologies arouse many more than the usual skeptics when - as in the 1930s and again since 2007 - capitalism's downturns cut deep and persist. Then capitalism's stark inefficiencies become too glaring as millions of unemployed workers alongside idled productive capacity yield massive waste and long-lasting social costs. Bailouts of large financial capitalists by the governments they control turn skeptics into critics. The critics then become mobilized into a real political opposition when subsequent government "austerity" policies shift the costs of crisis and bailouts onto the mass of people.

Capitalists and the rich remain determined now NOT to bear the costs of the bailouts or the crisis. Unlike in the 1930s, they don't see organized, determined and militant workers' movements to worry about today - nor any USSR positioned as an alternative to modern capitalism. So, they push austerity policies for governments everywhere. To sustain governments' austerity policies, capitalists and the rich lean on their ideological crutches to try to thwart political opposition.

The mainstream ideology that works best as capitalism's crutch is blame the government. This interpretation of modern society insists that the ultimate root and cause of economic problems is the government, not capitalism nor capitalists. If you are unemployed, foreclosed, or underpaid, the problem is not the capitalist who refuses to employ you, evicts you, or pays you poorly. It is instead partly your own fault, but mostly that of the government: the politicians and the bureaucrats.

Blame-the-government ideology serves capitalists and the rich executives, managers, professionals and advisers who depend on them. They can boost their profits and wealth by cutting wages, jobs and benefits, using toxic technologies, relocating businesses overseas, jacking up prices, foreclosing, evicting, and so on. They can provoke global crises and take massive bailouts with public money. To cover all that, business and political leaders, media spokespersons and academics compose a chorus that endlessly repeats, "blame the government." They seek to transform that idea into "common sense" so victims of capitalists' actions will automatically not blame them, but instead get angry at politicians.

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Why Socialism Can Abolish Classes, Including Workers, While Capitalism Creates Misery and Unemployment

by @ Sunday, August 19th, 2012. Filed under China, Marxism, Socialism, Technology, Unemployment

While the many robots in auto factories typically perform only one function, in the new Tesla factory in Fremont, Calif., a robot might do up to four: welding, riveting, bonding and installing a component.

Skilled Work, Without the Worker

By JOHN MARKOFF
SolidarityEconomy.net via New York Times

DRACHTEN, the Netherlands — At the Philips Electronics factory on the coast of China, hundreds of workers use their hands and specialized tools to assemble electric shavers. That is the old way.

At a sister factory here in the Dutch countryside, 128 robot arms do the same work with yoga-like flexibility. Video cameras guide them through feats well beyond the capability of the most dexterous human.

One robot arm endlessly forms three perfect bends in two connector wires and slips them into holes almost too small for the eye to see. The arms work so fast that they must be enclosed in glass cages to prevent the people supervising them from being injured. And they do it all without a coffee break — three shifts a day, 365 days a year.

All told, the factory here has several dozen workers per shift, about a tenth as many as the plant in the Chinese city of Zhuhai.

This is the future. A new wave of robots, far more adept than those now commonly used by automakers and other heavy manufacturers, are replacing workers around the world in both manufacturing and distribution. Factories like the one here in the Netherlands are a striking counterpoint to those used by Apple and other consumer electronics giants, which employ hundreds of thousands of low-skilled workers.

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The Difference Between Capital and Capitalism

by @ Sunday, August 19th, 2012. Filed under China, Marxism, Socialism

The Emergence Of Social Capital

By Sidney Gluck
Political Affairs

August 18 2012 - The 21st century is witnessing an epochal change, something to be noted in the emergence of two economic poles-one dominated by Western capitalism and the other in the process of forming an association of former colonial countries in various levels and forms of economic development.  Socio-economic changes have taken place in history similarly, but not with such an explosive and defining character. As an exception, capitalist colonial domination was part of its industrialization impinging on resources and cheap labor for greater personal gain.

There are now three forms of capital accumulation: privately owned industry, stocks, enterprises and financial capital; socially owned government accumulation utilized for industrial development, infrastructure, and forms of social obligations; and, social security wealth belonging to retired workers.  Economic growth differs under the control of private and social forms of capital. The former is concerned with private individual accumulation. The latter is concerned with economic growth and improvement of the conditions of the working population, which creates the wealth in industrialized society.

The social security form of capital belongs to the people who have paid in during their productive years to support retirement and is a form of accumulation from their earnings placed in trust with the government for administration. For the past few years, this capital has been used and safely invested in the country and the proceeds added to the accumulation of the retirees.

The emergence of social capital reflects a major change in society, just as the emergence of private capital posited the change from feudalism to capitalism as an economic system and basis of social relations. The growth of social capital is inevitable as private capital ceases to expand domestic growth and job creation in developed Western countries, which comprise one third of the world's population and where labor has succeeded through historic struggles to increase wages and living standards. Hence, industrial growth in developed countries has diminished or ceased. Investments have shifted to former colonial countries, including China, for the past thirty years, with incredible rates of accumulation reflected in the highest earnings of Wall Street despite the 2008 economic crisis, which ended for private capital in mid-2009 but persists in its fourth year with fifteen million still jobless and 17% poverty stricken.

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Marxism, the 21st Century and Social Transformation

by @ Wednesday, August 1st, 2012. Filed under Economic Democracy, Marxism, Organizing, Socialism

By Bill Fletcher, Jr.
SolidarityEconomy.net via Freedomroad.org   

This article was originally published on the website: Philosophers for Change, philosophers.posterous.com.

June 28, 2012 - A discussion of the future of socialism and social transformation must be grounded in two realities.  The first reality is the broader economic, environmental and state-legitimacy crises in which humanity finds itself.  In other words, the convergence of these three crises means that the necessity for a genuine Left capable of leading masses of people is more pressing than ever.  It means that while one cannot sit back and wait for the supposed “final” crisis of capitalism to open up doors to freedom — since capitalism is largely defined by its continual crises — it is the case that the convergence of these three crises brings with it a level of urgency unlike any that most of us have experienced.  Not only is there a need for a progressive, if not radical set of answers to these crises at the level of immediate reforms, but the deeper reality is that capitalism — as a system — is incapable of providing legitimate, sustainable answers to these crises, whether individually or collectively.

The second reality, and the central focus of this essay, is that any discussion of a progressive post-capitalist future must come to grips with the realization of the crisis of socialism in which every trend in the global Left has been encased.  This has been a crisis at the levels of vision, strategy, state power and organization. It is a crisis that cannot be avoided by either a retreat to pre-Bolshevik Marxism or slipping into the abyss of post-modernism.  The reality of the crisis of socialism can only be avoided at our own peril.

The crisis of socialism can be said to have emerged in the context of the Stalinist hegemony over the international communist movement, creating challenges for the global Left (and not just the orthodox communist movement) at multiple levels.  One level has been that of the question of the post-capitalist socialist state.  The revelations regarding the authoritarian rule of the Stalinist Communist Party of the Soviet Union (CPSU) shattered the sense of a genuine socialist democracy, even if one applauded the social accomplishments of the Soviet Revolution and its courageous sacrifices in the struggle against fascism.

In addition to the question of the socialist state, there emerged also the question of socialist strategy.  There was the matter of strategy in what has come to be known as the “global South” and the “global North.” In the global South, the Left-led national democratic revolutions, based on the alliance of workers and peasants, represented a major breakthrough in what had been a very Eurocentric Marxism.  The impact of the Chinese, Vietnamese and Cuban Revolutions, to name only three, not only reshaped Marxism, but also had an impact on other Left as well as progressive nationalist political tendencies.  Yet by the 8th decade of the 20th century, these revolutionary currents seemed to have stalled.  The Chinese Revolution, with the death of Mao, altered course and ultimately embraced what can only be described, non-rhetorically, as a capitalist road.  Movements and state systems that Egyptian Marxist Samir Amin has described as “national populist projects,” i.e., anti-imperialist projects led by elements of the nationalist petty bourgeoisie (and in some cases the national bourgeoisie) that never fully broke with capitalism, found themselves drifting either back toward the global North or following a cynical embrace of the Soviet bloc.

Strategy plagued Marxist-led movements in the global North.  Parties and movements that embraced social democracy all but abandoned anything other than the rhetoric of socialism and quite comfortably assumed the role of guardians of the welfare state under democratic capitalism.  In many cases such parties, e.g., the British Labour Party; the French Socialist Party, while championing progressive social legislation and popular rights in their respective nation-states, also advanced a rabid defense of ‘enlightened’ colonialism and imperial privilege for countries they came to govern.

Communist parties in the global North followed a different trajectory, but in general came to develop a strategy for achieving power based largely on a non-revolutionary interpretation of the theoretical approach of Italian communist leader Antonio Gramsci.  This interpretation, what the Maoists considered “revisionism” and what many other revolutionary Leftists saw as simply patently reformist, involved a protracted and largely electoral route to power.  But this route, even when it involved the creation of alternative institutions, e.g., worker cooperatives, was very gradualist and rarely able to accommodate itself to sudden shifts in the mass movements.  In fact, this approach placed a premium on the control of mass movements, and in many cases, the pacification of such movements, e.g., the French Communist Party in 1968.  These parties, not always unlike those out of social democracy, while rhetorically anti-imperialist, were inconsistent in practicing anti-imperialism against their own state/empire.

Yet the radical challenges to reformist approaches to the struggle for power had their own sets of flaws.  For much of what came to be known as the radical or revolutionary Left, there was a failure to distinguish the political vs. the ideological struggle.  As a result, there was — and in many cases continues to be — a premium placed on purity.  The anti-capitalist struggle is all too often seen as the articulation of the “correct” direction and the denunciation of anything that is perceived as inconsistently revolutionary (that is, articulation by one or another super-revolutionary group-let or self-important individual).  Such an approach, even where it has gained appeal, has been temporary, grounded in subjectivism, and inevitably led to sectarianism, and ultimately marginalization.

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Five Reflections about 21st Century Socialism

by @ Monday, June 18th, 2012. Filed under Cuba, Marxism, Socialism, Venezuela

 

By Marta Harnecker

The journal Science and Society devoted a special number in April 2012 [Volume 76, No. 2] to explore central topics in the current discussion about socialism. Marta Harnecker and five other Marxist authors from different countries were invited to participate in this reflection by the editors Al Campbell and David Laibman, who prepared a set of five questions. This paper written in July 2011 presents her contribution with some foot notes that does not appear in the journal. The following topics are explored: 1. Why speak of socialism today?; 2. Central features of socialist organization of production; 3. Incentives and the level of consciousness in the construction of socialism; 4. Socialism and the transition to socialism; and 5. The centrality of participatory planning in socialism.

1. WHY SPEAK OF SOCIALISM TODAY?

1. Why talk about socialism at all if that word has carried and continues to carry such a heavy burden of negative connotations, after the collapse of socialism in the USSR and other Eastern European countries?

2. After the fall of the Berlin Wall and the demise of the Soviet Union, Latin American and world leftist intellectuals were shocked. We knew better what we did not want in socialism than what we wanted. We rejected the lack of democracy, totalitarianism, state capitalism, bureaucratic central planning, collectivism that sought to standardize without respect for differences, productivism that emphasized the expansion of productive forces without taking into account the need to preserve nature, dogmatism, the attempt to impose atheism and persecution of believers, the need for a single party to lead the transition process.

3. But at the same time Soviet socialism was collapsing, democratic and participatory processes in local governments began to emerge in Latin America there, and these foreshadowed the "kind of alternative to capitalism that people wanted to build." These processes not only foreshadowed the new society; they also demonstrated in practice that people could govern in a transparent, non-corrupt, democratic and participatory manner. Political conditions in several Latin American countries were thus prepared, making it possible for the left to come to power through democratic elections.

4. Those lights that radiated throughout our continent were enhanced by the resounding failure of neoliberalism and, most recently, by the global crisis of capitalism. An alternative to capitalism thus started to become more necessary than ever. What should it be called?

5. It was President Chávez who had the courage to call socialism this alternative society to capitalism He called it "21st-century socialism," reclaiming the values associated with the word socialism: "love, solidarity, equality between men and women and equity among all," but adding the adjective "21st century" to differentiate the new socialism from the errors and deviations present in the model of socialism that was implemented during the 20th century in the Soviet Union and the Eastern European countries.

6. However, it must be remembered that 35 years earlier, in the early 1970s in Chile, the victory of President Salvador Allende, supported by the leftist Popular Unity coalition, began the world's first peaceful transition to socialism. Although the Popular Unity government was defeated by a military coup three years later, it left important lessons. If our generation learned anything from that defeat, it was that peaceful progress towards that goal required us to rethink the socialist project applied until then in the world; that it was therefore necessary to develop a project that was more adequate to Chilean reality and more appropriate for a peaceful path. Allende's folkloric expression, "socialism with red wine and empanadas," seemed to capture this, pointing towards building a democratic socialist society rooted in national popular traditions.  And so I believe that the Chilean experience should be considered the first practical experience that tried to get away from the Soviet model of socialism and move toward what we now call 21st-century socialism.

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21st Century Socialism and Cooperatives

by @ Sunday, March 11th, 2012. Filed under Cuba, Economic Democracy, Marxism, Socialism, Solidarity Economy

Cuba’s Alternative to Privatization

By Marce Cameron
SolidarityEconomy.net via GreenLeft Weekly

March 11, 2012 - Cuban President Raul Castro has urged the Caribbean nation's citizens to contribute to a free and frank debate on the future of Cuba’s socialist project.

For the Cuban Communist Party (PCC), the aim of this debate is twofold: to strive for consensus on a new Cuban model of socialist development and to empower Cuba’s working people to implement what has been decided.

In other words, to advance a socialist renewal process in the face of entrenched opposition from within the administrative apparatus.

It is first and foremost a debate about the economy. A draft policy document, the Economic and Social Policy Guidelines, was submitted to a national debate for three months before to its adoption by the Sixth PCC Congress in April last year.

The core principles and objectives of the draft were conserved, but the final version of the Guidelines was substantially modified on the basis of this public debate.

The PCC said total attendance at the 163,000 local debates held in workplaces, study centers and neighborhoods was about 8.9 million, with many people attending more than one.

More than three million interventions were noted and grouped into 781,000 opinions, about half of which were reflected in the final document. A summary detailing each modification and its motivation, and the number of interventions in favour, was published after the congress.

The Guidelines is not a theoretical document. The government commission responsible for overseeing its implementation has been charged with drafting, as Castro put it, “the integral theoretical conceptualization of the Cuban socialist economy”.

Rather, the Guidelines is a set of principles and objectives that point to a new Cuban socialist-oriented economic model.

Yet implicit in them is a reconception of the socialist-oriented society in Cuba’s conditions.

Transitional society

The ultimate objective of the socialist revolution is a global classless society in which technology enables minimal human labour to produce goods and services, allowing these to be freely distributed to satisfy people’s rational needs.

Socially owned, this system of production would free everyone from the compulsion to work for others. It would allow a flowering of the human personality that is stunted by capitalist exploitation and alienation, both of which are embodied in the capitalist market.

What blocks this transition is not a lack of technology, but private ownership of most productive wealth and the class rule of the corporate rich over society.

The transition from capitalism to socialism is marked by tension between planning and the market. Democratic planning to meet social needs first becomes increasingly dominant, then ultimately the sole determinant of economic activity.

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Marx, Keynes and China Today

by @ Friday, February 10th, 2012. Filed under China, Economic Democracy, Marxism, Socialism
Deng Xiaoping and John Maynard Keynes

12 02 05 Deng & Keynes

By John Ross Jiao Tong University, Shanghai

Introduction

The international importance of China’s economy is twofold. The first is practical - the scale of China’s economic growth, its global impact, and the consequences for the improvement of the social conditions of China and the world’s population. The second is theoretical, including the potential international applicability of conclusions drawn from China’s economic policies.

Regarding the latter it is necessary to clearly state that no country can mechanically copy another. As China’s political leaders and economic theorists stress its economy has unique ‘Chinese characteristics’. This was formulated as a cardinal principle by the initiator of China's economic reform, Deng Xiaoping: ‘To accomplish modernization of a Chinese type, we must proceed from China’s special characteristics.’  (Deng, 30 March 1979) Therefore China must: ‘blaze a path of our own.’ (Deng, 21 August 1985).

As recently reiterated by Justin Yifu Lin, Chinese Chief Economist and Senior Vice President of the World Bank: ‘we can never be too careful when it comes to the application of a foreign theory, because with different preconditions, no matter how trivial they seem, the result can be very different.’ (Lin, 2012, pp. 66 - emphasis in the original) In that sense, therefore, there is no ‘Chinese model’. However as Lin simultaneously states: ‘Some may think that the performance of a country as unique as China, with more than 1.3 billion people, cannot be replicated. I disagree. Every developing country can have similar opportunities to sustain rapid growth for several decades and reduce poverty dramatically if it exploits the benefits of backwardness, imports technology from advanced countries, and upgrades its industries.’ (Lin, 2011)

There is, however, no contradiction between these different statements. The fundamental structural elements of which an economy is composed (consumption, investment, savings, primary industry, secondary industry, tertiary industry, trade, money etc.) are universal. However the particular way in which these elements combine and are interrelated in any economy is unique and entirely specific both in place and time – which is why no country can copy another’s economic policy, while it can learn from other economies. As analyzed below, China has solved in practice problems stated in general macro-economic theory. For that reason such elements, in very different forms and combinations, are of major importance for economic policy elsewhere. However the specific forms and combinations in which such policies are applied are entirely unique both in each country and at different points in time.

The practical impact of China’s economic rise have been considered extensively elsewhere.1 The focus of this article is on the theoretical economic issues. In particular it aims to relate China’s economic performance to Western economic theory which will be more familiar to most readers.

China and macro-economic theory in Keynesian and Marxist terms

China’s ‘reform and opening up’ process under Deng Xiaoping was, of course, formulated in a Marxist economic framework. It can indeed be clearly outlined in those terms – see the appendix below, for a more detailed account of Chinese discussions on these issues see (Hsu, 1991), but an alternative statement in Western economic terms, those of Keynes, is considered here.

Stated briefly in Marxist terms, China’s reform policy included a critique of Soviet economic policy that this had made the error of confusing the ‘advanced’ stage of socialism/communism, in which the regulation of the economy is ‘for need’, and therefore not market regulated, with the socialist, or more precisely ‘primary’ developing stage of socialism, during which the transition from capitalism to an advanced socialist economy takes place and in which market regulation takes place. This transition should be conceived as extending over a prolonged period. The final formulation arrived at was that China’s was a ‘socialist market economy with Chinese characteristics’. Contrary to suggestions by some writers, for example (Hsu, 1991), such an analysis is in line with Marx’s own writings although, as shown below, it is not necessary to be a Marxist understand it - a more detailed analysis is given in the appendix.

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New Hybrids: Paths to 21st Century Socialism on the Micro Level

Workers at the Evergreen Cooperative Laundry in Cleveland

Worker-Owners of America, Unite!

By GAR ALPEROVITZ
SolidarityEconomy.net via NYT Op-Ed

Dec 14, 2011, College Park, Md.- THE Occupy Wall Street protests have come and mostly gone, and whether they continue to have an impact or not, they have brought an astounding fact to the public’s attention: a mere 1 percent of Americans own just under half of the country’s financial assets and other investments. America, it would seem, is less equitable than ever, thanks to our no-holds-barred capitalist system.

But at another level, something different has been quietly brewing in recent decades: more and more Americans are involved in co-ops, worker-owned companies and other alternatives to the traditional capitalist model. We may, in fact, be moving toward a hybrid system, something different from both traditional capitalism and socialism, without anyone even noticing.

Some 130 million Americans, for example, now participate in the ownership of co-op businesses and credit unions. More than 13 million Americans have become worker-owners of more than 11,000 employee-owned companies, six million more than belong to private-sector unions.

And worker-owned companies make a difference. In Cleveland, for instance, an integrated group of worker-owned companies, supported in part by the purchasing power of large hospitals and universities, has taken the lead in local solar-panel installation, “green” institutional laundry services and a commercial hydroponic greenhouse capable of producing more than three million heads of lettuce a year.

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