Photo: Interesting lineup. Stalin dropped, Chou En-Lai and Deng added

How Does Deng Xiaoping Create a New Historical Period?

By Li Hongfeng

Literature of Chinese Communist Party, Issue 4, 2014


Abstract: As the chief architect of China’s reform and opening up and socialist modernization drive, Deng Xiaoping created a new historical period of reform and opening up. During the historical process of advancing reform and opening up, Mr. Deng thoroughly demonstrated a strategist’s strategic thinking, judgment, design and decision. He created a new historical period, starting reaffirming and reinstating the Party’s ideological guideline of seeking truth from facts. After deeply studying the profound changes of domestic and foreign situations, Mr. Deng gave two important strategic judgments: China being and to be in the preliminary phase of socialism; and peace and development being two great issues of the contemporary world. On the basis of such two judgments, he made a series of far-reaching strategic decisions centering on his belief in socialist and communist causes. Mr. Deng suggested leadership should have principles, systematicness, foresight and creativity, which reflected Deng’s understanding of regularity in leadership and essential characteristics of his leading style.

In Deng’s life, he fell three times and rose up again. After Mr. Deng was reinstated at the third time, his career ushered in full swing and he created a new historical period of China’s reform and opening up. Looking back on the great historical process of Deng Xiaoping boosting reform and opening up and learning about his strategist’s wisdom in strategic thinking, judgment, design and decision can be beneficial to deepening reform comprehensively and carrying forward reform and opening up and socialist modernization drive.

I. Strategic starting point of defining ideological guidelines

The “cultural revolution” resulted in a ten-year-old turmoil and brought about severe calamities, incurring great costs to our Party, country and nation. The “left” wrongdoings can’t be continued and it is a must to correct those mistakes.

Deng Xiaoping undertook duties in a dangerous situation. As soon as taking office, Mr. Deng manifested a great strategist’s foresight. Facing the complex situation of many things waiting to be done, Deng Xiaoping grasped the most important link – starting from establishing the ideological guideline.

For Deng’s creation of a new historical period, it is a strategic starting point to reaffirm and reinstate the Party’s ideological guideline of seeking truth from facts.

Seeking truth from facts is our Party’s ideological guideline in both correctly understanding and changing the objective world. The China’s revolutionary process has fully proved: only on the basis of the guideline of seeking truth from facts, our Party could create the China’s revolutionary path of encircling the cities from the rural areas; our Party could find the three valuable approaches of the armed struggle, united front and party building; our Party could correctly resolve a series of basic problems on the nature, objective, driving force, goal and transformation of Chinese revolution; our Party could establish the correct political, military and organizing guidelines; our Party could build up a Marxist working-class vanguard in a semicolonial and semifeudal society with a large rural population and a small working-class population; our Party could successfully Sinicizing Marxism and create and develop Mao Zedong Though; our Party could surmount numerous hardships, overcome mistakes and frustrations in the progress, correctly sum up experience and lessons, unite all Party’s members and the whole Chinese nation and continuously accomplish new achievements. As the Party and Chinese people were armed with the ideological guideline of seeking truth from facts, the Chinese revolution embarked on the path to successes.

After become the ruling party, our Party had various mistakes and errors, especially the all-round wrongdoing of the “cultural revolution,” which was caused by various complex reasons but basically, resulted from the diversion from the ideological guideline of seeking truth from facts.

After smashing Gang of Four in 1976, the whole Party and nation were inspired. However, the wrong proposition of “two whatevers” remained restricting people’s thinking. The discussion on the criteria of truth succeeded in breaking the barriers of “two whatevers.” To support and promote the discussion on criteria of truth, Deng Xiaping made 26 remarks and speeches in less than two years in order to repeatedly expound on the essential reasons of seeking truth from facts.

Mr. Deng definitely pointed out: the “two whatevers” are wrong and don’t comply with both Marxism and Mao Zedong Thought. Marx, Engles, Lenin, Stalin or Mao Zedong proposed any “whatever.” It is not allowed to impair the whole Mao Zedong Thought with several or partial words and sentences. To follow Mao Zedong Thought shouldn’t focus on citations of Chairman Mao’s remarks but highlight the exertion of Mao’s essential thought.


Category : China | Marxism | Socialism | Blog

By Robert Ware
Philosophy Dept
University of Calgary

Posted on April 5, 2014
Socialism and Democracy Online /   

Few outside China would think of China as a socialist, or Marxist, society. Inside China the views vary widely, but few would say, without qualifiers, as the Constitution does, that China is socialist. No one – anywhere – now sees China as a model for socialism. Nevertheless, socialism is a strong force in China and Marxism a subject of continuing investigation. Just how significant a role socialism and Marxism play is not easily determined, but the importance of that role and some of its complexity is well worth considering.

Recently I have taught Marxism in Beijing and have had occasion to see some of the strengths and weaknesses of the theory and its application. After some remarks on my experiences there, I will discuss my observations about the nature of Marxism in China in theory and practice. Whatever one says about China’s problems and about how Marxism is discussed there, a large role for studying, developing, and applying Marxism in China remains.

I argue here that the significance of Marxism in China can be compared to that of democracy in the west, especially in North America. In both settings, the relevant practices are dysfunctional in significant ways, but both Marxism and democracy give a rationale and a tissue of support – and, consequently, a locus of struggle – for efforts to improve life for the majority. Their actual influence can be depressingly weak, but both are worthy of investigation, for political as well as intellectual reasons. I will consider some questions about the kinds of socialism and Marxism that prevail in China, but also, importantly, what topics are rejected or simply ignored.

Visits, courses, and socialists

Teaching Marxism in China is fascinating, although the same can probably be said for teaching most other subjects there, primarily because of China’s great development and energy, as well as its complexity and chaos. My observations here come largely from recent visits to China, including three weeks in the fall of 2007 (accompanied by my wife, Dr. Diana Hodson), a month at Renmin University in Beijing in July 2010, and two months at Peking University (again with my wife) in September-November 2011. I have also learned much from many helpful correspondents and subsequent contacts, both inside China and out.

In 2007, I visited five academic institutions in Beijing and Shanghai, lecturing on analytical Marxism and libertarian socialism and discussing Marxism and democratic theory, in China and abroad. (I was revisiting universities, where I had taught analytical philosophy in 1984-85 [Fudan University in Shanghai] and 1986-87 [Peking University and the Institute of Philosophy in Beijing]. In the 1980s, I also lectured on analytical Marxism at a variety of universities and institutes throughout the country.) I also participated in a conference in 2007, at a Communist Party university in Shanghai, celebrating the 140th anniversary of Marx’s Capital with over a hundred economists, mostly Chinese, and a few theorists from other disciplines. In 2010, I taught a summer course at Renmin University of China (RUC) in Beijing and served as a commentator at a conference at the Central Compilation and Translation Bureau (CCTB) celebrating the 150th anniversary of the Grundrisse.1

At Peking University in the fall of 2011, I taught a small undergraduate philosophy course on analytical Marxism and a graduate philosophy seminar on Marxism and radical politics. G.A. Cohen’s philosophically acute and influential studies were the central texts for the seminar. We looked at new approaches to historical materialism, the core of Marxist studies in China, and at equality and freedom, which are generally not discussed as Marxist topics.

The first reading assignment I gave for my summer course in 2010 on analytical Marxism at RUC2 was Albert Einstein’s “Why I am a Socialist” and two introductions to analytical Marxism. The first short writing assignment was to answer the question “Why I am a socialist,” or alternatively “Why I am not a socialist.”3 From the start, I had a good opportunity to learn about young people’s views in contemporary China through this small group of university students in Beijing. Of the thirty students, twenty gave reasons for why they were socialists and ten gave reasons for why they were not. In the twenty, I include one who became socialist later, after reading the Communist Manifesto (I assume again) in English. I also include two who said they were not socialists because they were communists.

Given what I had heard previously in China, I was surprised that two-thirds of my students were socialist, but of course I could not conclude anything in general about young people from that exercise. Certainly, that the course was on Marxism would be a factor, although there were students in the course who were there for the credits, out of curiosity, and for the opportunity to develop their English. After the assignment was handed in, we talked about what young people in universities and in the country generally think about socialism. Before telling them the results, I asked them to guess the division of the class in the exercise. There was a fair amount of variation about the class and greater variation for figures about the views of other groups. Afterwards, I learned, through quizzing many friends and contacts, that there is little idea of how many people, young or old, are socialists.

I know of no good studies of the number of Chinese who are socialists, but it is also difficult to know what a good study would be. Much depends on how the question is asked and what the meaning of socialism is in the relevant context. The same is true for understanding what significance to give to the 2009 Rasmussen poll that ‘found’ that one third of US young people under 30 believe that socialism is superior to capitalism. What do the people polled think socialism is? In the case of the Chinese, young people would naturally think of Marxist-Leninist-Mao Zedong thought or socialism with Chinese characteristics.

The reasons that people give, however, tell something about what they mean when they think of socialism. Quite a few of my students explained their allegiance in terms of their beliefs about human nature. Several said that they were socialists because it is human nature to be altruistic or collectivist, and a similar number were not socialists because, they said, people are self-interested by nature. Of course, this was a good topic for discussion in the class on a topic that is usually given short shrift in Chinese Marxist studies.

Many students were socialists because of parents or grandparents who were members of the Communist Party or had fought in Korea or the War of Liberation. And there were a variety of personal reasons, including moral reasons. An interesting rhetorical question was: if not a socialist, what would you be? The suggestion was that capitalism is not a viable alternative. The dominant question is what kind of socialism should there be.

With even cursory contact, it is obvious that there are millions of socialists in China. There were twenty in my class, and if two thirds of the adult population were socialists, China would have about 500 million socialists. That surely wildly overestimates the numbers, even for a country with a constitution that proclaims its socialism. For a more plausible estimate, consider first that the Communist Party of China has about 80 million members. There is certainly a lot of opportunism and cynicism amongst them, but on the basis of my private queries of many members, I cannot imagine that more than a quarter of them would actually reject socialism, even in their hearts.4 That leaves at least 60 million socialists in the Party.

Then there are surely several million socialists outside the Party. Many people are principled Maoists – some who see positive aspects of the Cultural Revolution – for example those involved with the Utopian Bookstore in Beijing, which has a wide variety of socialist and anarchist books in translation, where lectures are given, and with a widely followed Chinese website – until early 2012 when it was closed down after the detention of Bo Xilai. Bo, the former mayor of the megacity, Chongqing, is thought to have had millions of socialist followers because of popular social policies with Maoist trappings. These days there are also many “Marxologists” and other socialist theorists who do not want to be Party members. Some committed Marxists reject membership for principled reasons. Some socialists prefer not to undergo the strictures and discipline of the Party. Many lack the enthusiasm and happily go on with their own private lives. I would add another 10 million socialists outside the Party.

Thus, my very rough guess is that there are at least 70 million socialists in China. This should not come as a surprise to anyone who observes the intellectual scene in universities, institutes, and the media. Socialism is a known ideology that many take seriously and many more are curious about. (I also heard of many who scoffed at fellow students studying Marxism and socialism.5 There is a lively diversity of opinion.)

This is not to deny that there is also strong interest in capitalism and ideas of neoliberalism in some circles, although there are ways in which such interests are against the grain, historically and politically. Economic decisions might favor private ownership and individual entrepreneurs, but rarely would they be justified on the basis of capitalist ideology or neoliberal theory. Occasionally, ideas are drawn from western “capitalist” thinkers, but almost always in support of socialism with Chinese characteristics.


Category : China | Marxism | Philosophy | Blog

Part of the CCDS team at the conference: Kathy Sykes, Janet Tucker, Harry Targ, Paul Krehbiel

By Paul Krehbiel
Committees of Correspondence for Democracy and Socialism

"The capitalist class is in a serious crisis without solution," said David Schweikart at the Moving Beyond Capitalism conference held in San Miguel de Allende, Mexico from July 30-August 5, 2014.  "But there is a solution," he said, "economic democracy, democratic socialism." Over 200 people from 15 countries discussed how to make this happen, organized by the Center for Global Justice.

Chronic high unemployment, depression of wages and benefits, cuts in social services, and growing inequality and repression, and social and political resistance are endemic to nearly all capitalist countries, said Schweikart, a Philosophy professor at Loyola University in Chicago, and author of After Capitalism. 

Schweikart’s model of democratic socialism calls for a regulated competitive market economy, socialized means of production and democratic workplaces (he advocates worker-run cooperatives as an example), non-profit public banks to finance projects, full employment, and a guarantee that human needs will be meet for everyone. 

Cliff DuRand, a conference organizer, said people are creating alternatives to capitalism today all over the world.  "If we’ve built these alternative institutions, the next time the capitalist system collapses…we will be able to survive without it."

Gustavo Esteva, a former Mexican government official, founder of the University of the Land in Oxaca, and an advisor to the Zapatistas in Chiapas in southern Mexico, gave a good account of how the indigenous people of this region are creating a new democratic and socialist-oriented society that they control, within the borders of a capitalist Mexico.  The Zapatistas launched an armed uprising in the mid-1990′s to stop NAFTA and the Mexican government from allowing multi-national corporations to come into Chiapas to extract minerals to enrich the corporations and destroy their lives and their local economy. 

Ana Maldonado of the Venezuelan Ministry of Communal Economy could not attend, so University of Utah Professor Al Campbell filled in for her.  Campbell has worked in Venezuelan with the Community Councils, a new form of grassroots democracy and socialism.  Created in 2006 by the late socialist president Hugo Chavez, there are 20,000 Community Councils today, each holding meetings in neighborhoods where all residents can attend, discuss, and vote on decisions for their community. 

Private, for-profit banks came under sharp attack for causing the 2008 Great Recession, and for ripping off billions of dollars from people world-wide, primarily through charging high interest rates.  Ellen Brown, founder of the Public Banking Institute based in California, declared, "Without interest payments, there would be no national debt," which now stands at over $15 trillion.  Politicians use the debt as an excuse to cut funds for education, health care and other social programs.  An example of local bank rip-offs is a bank loan for the purchase of a house, where the homeowner pays the bank 2-3 times or more than the cost of the house due to interest payments. 

Brown said the solution is to set up not-for-profit public or state banks — like the Bank of North Dakota.  She describes how to do it in her book Democratizing Money: The Public Bank Solution.  Since the 2008 economic crash, 20 other states including California have introduced bills to study or establish publicly-owned state banks.

"The US controls third world countries," Brown explained, "by putting them in debt and then forcing repayment with high interest rates," which they can’t afford to pay.  Brown said the book, Confessions of an Economic Hitman, by John Perkins, explains how devastating this is. 

Coops in Cuba

Camila Pineiro Harnecker, a leader of the cooperative movement in socialist Cuba, explained that her country is giving much more attention to the development of worker-run cooperatives as a way to help workers create jobs for themselves, and learn how to become masters of their work and work lives. The state socialist sector dominates the economy, but coops now comprise 12% of the workforce and are expected to increase in number.


Category : Capitalism | Education | Marxism | Socialism | Solidarity Economy | Blog

By Liu Zhenying


September 24, 2014


The Chinese version of Capital in the Twenty-First Century (2014) by French economist Thomas Piketty hasn’t been published for good reason. It is inappropriate for Piketty to associate his book with Das Kapital, the 1887 critical analysis of political economy by German philosopher Karl Marx.

Difference in political tendency

The political leaning of Capital in the Twenty-First Century can be classified as left-wing. It suggests imposing a progressive tax each year ranging from 0.1 percent to 10 percent on returns on capital, or 80 percent of punitive capital holding tax on the revenue of over $5oo,ooo. This has led US right-wing pundits to label Piketty a Marxist. But Piketty isn’t a Marxist in the conventional sense, which can be seen from his proposition of not scrapping the capitalist system.

Capital in the Twenty-First Century examines the relations between rate of returns on capital and rate of economic growth, explaining the former is higher than the latter with existing materials. This indicates an analytical framework of confrontation between capital gain and labor income, whereby the increased portion must be the reduced portion of workers’ labor income. It is the same as Das Kapital, which is based on confrontation between labor and capital, specifically paid employment. This doesn’t prove Piketty is a Marxist, however, because classical political economics are also based on labor-capital conflicts.

Conflicts between labor and capital are common in classical political economics. Based on these conflicts, Piketty pivots from the stance of contemporary Western mainstream economics to classical political economics. He doesn’t draw such a conclusion from self-contradiction of the capitalist mode of production as Marx did in Das Kapital, which urged the overthrowing of the capitalist system and establishment of capital public ownership.

Piketty once asserted that he has returned to the stance of classical economics due to his dissatisfaction with mainstream economics. However, it is a big leap to go from classical economics to Marxist economics.

Piketty imagines solving the problems caused by capitalist fundamentalism without solving core contradictions, which indicates he hasn’t realized the gap. Commentators accuse him of being a “utopian.” Indeed, Piketty makes the case that the bourgeoisie would rather see the collapse of capitalism than adopt his proposed tax reforms.

Difference in research methods

Capital in the Twenty-First Century shouldn’t be considered a modern Das Kapital. Both books differ in research subjects. More importantly, they have different research methods and both therefore draw inevitably different conclusions. Capital in the Twenty-First Century explains “polarization” with data, strongly refuting theories that distort so-called facts.

No matter how reasonable Piketty’s ideas are, the bourgeoisie will never acknowledge he is right nor accept his proposed policies.

Piketty’s proposed policies have historically been adopted and are even being implemented in some North European countries. However, whether these proposals will be adopted on a greater scale doesn’t depend on whether the ruling classes are clear that the rate of return on capital must conform to economic growth rate. It instead depends on whether their interests can be guaranteed. The capitalist system defines human nature as individualistic and selfish, with the bourgeoisie only caring about their own interests without considering greater mankind.

Without attempting to persuade the bourgeoisie to become reasonable, Das Kapital proposes not having any illusions about them. For this reason, Das Kapital presents an insurmountable critique without comparison.

This isn’t to say that Das Kapital, as a 19th-century book, can explain all phenomena in the 21st century. Marxist theorist Ernest Mandel thought Das Kapital was more suitable for the 20th century. Based on the inherent negativity of capitalism, however, it is in the 21st century that the logic of Das Kapital has been actually realized.

Marx researched virtual capital, but there was no virtual economy in his era. Marx realized the self-denial of capital would inevitably result in socialism, but he didn’t seesocialism which would have the same level of productivity under capitalism and even has lower level of productivity than developed countries . If a 21st-century adaptation of Das Kapital is written, its logic should follow Marxist theory.

 The author is a teacher at the Shanghai Party Institute First Branch School at the Communist Party of China’s Shanghai Administration Institute.

Category : Capitalism | China | Marxism | Socialism | Blog

Marta Harnecker: New Paths Require a New Culture on the left

Venezuela’s president Nicolas Maduro with Marta Harnecker at the award ceremony.

 The speech was given by Marta Harnecker on August 15, 2014, accepting the 2013 Liberator’s Prize for Critical Thought, awarded for her book, A World to Build: New Paths towards Twenty-first Century Socialism; translated by Federico Fuentes

By Marta Harnecker

Links International Journal of Socialist Renewal

August 24, 2014 –  I completed this book one month after the physical disappearance of President Hugo Chávez, without whose intervention in Latin America this book could not have been written. Many of the ideas I raise in it are related in one way or another to the Bolivarian leader, to his ideas and actions, within Venezuela and at the regional and global level. Nobody can deny that there is a huge difference between the Latin America that Chávez inherited and the Latin America he has left for us today.

That is why I dedicated the book to him with the following words:

To Commandante Chavez, whose words, orientations and exemplary dedication to the cause of the poor will serve as a compass for his people and all the people of the world. It will be the best shield to defend ourselves from those that seek to destroy this marvellous work that he began to build.

When Chávez won the 1998 presidential elections, the neoliberal capitalist model was already foundering. The choice then was whether to re-establish this model, undoubtedly with some changes such as greater concern for social issues, but still motivated by the same logic of profit-seeking, or to go ahead and try to build another model. Chávez had the courage to take the second path and decided to call it “socialism”, in spite of its negative connotations. He called it “21st century socialism,” to differentiate it from the Soviet-style socialism that had been implemented in the 20th century. This was not about “falling into the errors of the past”, into the same “Stalinist deviations” which bureaucratised the party and ended up eliminating popular participation.

The need for peoples’ participation was one of his obsessions and was the feature that distinguished his proposals from other socialist projects in which the state resolved all the problems and the people received benefits as if they were gifts.

He was convinced that socialism could not be decreed from above, that it had to be built with the people. And he also understood that protagonistic participation is what allows people to grow and achieve self-confidence, that is, to develop themselves as human beings.

I always remember the first program of “Theoretical Aló Presidente”, which was broadcasted on June 11, 2009, when Chavez quoted at length from a letter that Peter Kropotkin, the Russian anarchist, wrote to Lenin on March 4, 1920:

Without the participation of local forces, without an organization from below of the peasants and workers themselves, it is impossible to build a new life.
It seemed that the soviets were going to fulfil precisely this function of creating an organization from below. But Russia has already become a Soviet Republic in name only. The party’s influence over people … has already destroyed the influence and constructive energy of this promising institution – the soviets.

That is why very early on I believed it necessary to distinguish between the socialist project and a model. I understood project to mean the original ideas of Marx and Engels, and model to refer to one form that this project has historically taken. If we analysis Soviet-style socialism, we see that in those countries that implemented this model of socialism, one that Michael Lebowitz has recently called the socialism of conductors and conducted based on a vanguardist mode of production, the people were no longer the protagonist, organs of popular participation were transformed into purely formal entities, and the party was transformed into an absolute authority, the sole depositary of truth that controlled all activities: economic, political, cultural. That is, what should have been a popular democracy was transformed into a dictatorship of the party. This model of socialism, that many have called “real socialism” is a fundamentally statist, centralist, bureaucratic model, where the key missing factor is popular participation.


Category : Capitalism | Marxism | Socialism | Venezuela | Blog


Deng Xiaoping – The World’s Greatest Economist

By John Ross, August 22, 2014

August 22, 2014 is the 110th anniversary of the birth of Deng Xiaoping. Numerous achievements would ensure Deng Xiaoping a major position in China’s history – his role in shaping the People’s Republic of China, his steadfastness during persecution in the Cultural Revolution, his extraordinarily balanced attitude even after return to power towards the development and recent history of China, his all-round role after 1978 in leading the country.

But one ensures him a position among a tiny handful of people at the peak not only of Chinese but of world history. This was China’s extraordinary economic achievement after reforms began in 1978, and the decisive role this played not only in the improvement of the living standards of Chinese people but the country’s national rejuvenation. So great was the impact of this that it may objectively be said to have altered the situation not only of China but of the world.

China’s economic performance after the beginning of its 1978 reforms simply exceeded the experience of any other country in human history. To give only a partial list:

• China achieved the most rapid growth in a major economy in world history.

• China experienced the fastest growth of living standards of any major economy.

• China lifted 620 million people out of internationally defined poverty.

• Measured in internationally comparable prices, adjusted for inflation, the greatest increase in economic output in a single year in any country outside China was the U.S. in 1999, when it added US$567 billion, whereas in 2010 China added US$1,126 billion – twice as much.

• During the beginning of China’s rapid growth, 22 percent of the world’s population was within its borders – seven times that of United States at the beginning of its own fast economic development.

Wholly implausibly, it is sometimes argued that this success was merely due to "pragmatism" and achieved without overall economic theories, concepts, or a leadership really understanding the subject (particularly with no knowledge of U.S. academic economics!). If true, then the study of economics should immediately be abandoned – if the greatest economic success in world history can be achieved without any understanding of the subject, then it is evidently of no practical value whatever.

In reality this argument is entirely specious. Deng Xiaoping’s approach to economic policy was certainly highly practical regarding application – the famous "it doesn’t matter if a cat is black or white provided it catches mice." But it was extremely theoretical regarding foundations – as shown clearly in such works as In Everything We Do We Must Proceed from the Realities of the Primary Stage of Socialism, We Are Undertaking An Entirely New Endeavour, and Adhere to the Principle to Each According to his Work. Deng Xiaoping’s outstanding practical success was guided by a clearly defined theoretical underpinning, which can be understood particularly clearly in its historical context and in comparison with Western and other economists.

As is generally known, after 1949 the newly created People’s Republic of China constructed an economy, fundamental elements of which were drawn from the Soviet Union. It is important to understand that there was nothing irrational in this – the USSR, up to that time, had the world’s most rapidly growing economy.

Indeed, the immediate post-1929 success of the USSR was of extraordinary dimensions. During 1929-39 the USSR achieved 6 percent annual GDP growth, which until then was by far the fastest ever achieved by a major economy, and almost twice the historical growth rate of the United States. Despite colossal destruction in World War II, by 1949 the USSR had already regained its prewar production level.

The elements which produced such historically unprecedented economic growth were clear. From 1929, Stalin, with the First Five Year Plan, launched the USSR on an economic policy never previously attempted in any country – construction of a national basically self-enclosed administered economy. Resources were not allocated by price but by material quantities – a steel factory did not buy iron ore on the market but had it allocated by administrative decision. Foreign trade was minimized. State ownership was applied even to small scale private enterprises such as restaurants. Farmers’ small holdings were eliminated and agriculture organized into large scale collective farms.

Despite verbal claims that this policy was "Marxist," Stalin’s economic structure was in fact radically at variance with that of Marx himself. To use the Marxist terminology common to both China and the USSR, Soviet economic policy in 1929, in a single step, replaced economic regulation by prices (exchange value) by allocation by material use (use value).


Category : Capitalism | China | Keynes | Marxism | Socialism | Blog

Schafik Handal, Hugo Chávez, Fidel Castro and Evo Morales, in Havana in 2004

By Roger Burbach

Telesur, July 1, 2014

Something remarkable has taken place in Latin America in the new millennium. For the first time since the Sandinista revolution in Nicaragua, radical left governments have come to power in Venezuela, Bolivia, and Ecuador, raising the banner of socialism. The decline of the US empire, the eruption of anti-neoliberal social movements, and the growing integration of the region on its own terms have created a space for the rejuvenation of socialism after the dramatic setbacks of the last century. Cuba is part of this transformative process as its leadership moves to update the country’s economy while the Cuban people experience new freedoms.

In what follows, the theoretical debates and the praxis of socialism in the twenty-first-century socialism will be explored. The intent is not to provide a singular theory of the new socialism, but to put forth some of the interpretations of the contemporary struggles that are taking place in Latin America.

Theories of Twenty-First-Century Socialism

Drawing on the wide-ranging discussions of twenty-first-century socialism taking place in the hemisphere, political theorist Marta Harnecker, who served as an informal adviser to Hugo Chavez, outlines five key components of what constitutes socialism. First, socialism is “the development of human beings,” meaning that “the pursuit of profit” needs to be replaced by “a logic of humanism and solidarity, aimed at satisfying human needs.” Secondly, socialism “respects nature and opposes consumerism – our goal should not be to live ‘better’ but to live ‘well,”’ as the Andean indigenous cultures declare. Thirdly, borrowing from the radical economics professor Michael Lebowitz, Harnecker says, socialism establishes a new “dialectic of production/distribution/consumption, based on: a) social ownership of the means of production, and b) social production organized by the workers in order to c) satisfy communal needs.” Fourthly, “socialism is guided by a new concept of efficiency that both respects nature and seeks human development.” Fifthly, there is a need for the “rational use of the available natural and human resources, thanks to a decentralized participatory planning process” that is the opposite of Soviet hyper-centralized bureaucratic planning.(1)

To construct a socialist utopia along these lines will be a long endeavor, taking decades and generations. Today different explorations, or counter-hegemonic processes, are at work throughout the hemisphere. As Arturo Escobar – a Colombian-American anthropologist known for his contribution to post-development theory– writes in ‘Latin America at a Crossroads’:

“Some argue that these processes might lead to a re-invention of socialism; for others, what is at stake is the dismantling of the neo-liberal policies of the past three decades – the end of the ‘the long neo-liberal night,’ as the period is known in progressive circles in the region – or the formation of a South American (and anti-American) bloc. Others point at the potential for un nuevo comienzo (a new beginning) which might bring about a reinvention of democracy and development or, more radically still, the end of the predominance of liberal society of the past 200 years founded on private property and representative democracy. Socialismo del siglo XXI, pluri-nationality, interculturality, direct and substantive democracy, revolución ciudadana, endogenous development centered on the buen vivir of the people, territorial and cultural autonomy, and decolonial projects towards post-liberal societies are some of the concepts that seek to name the ongoing transformations.” (2)

Orlando Núñez, a leading Marxist theorist from Nicaragua, amplifies our understanding of the long transition to socialism with a more orthodox approach. Rejecting 21st century socialism as a concept to describe what is occurring in Latin America today, he asserts that the region is in a very preliminary phase of “transitioning to socialism in which we should not pretend we are constructing socialism.” Rather we are confronting neoliberalism and each country in Latin America is “facing different conditions.” He adds, “new flags are appearing in the social struggle against the dominant system that cannot be resolved by the logic of capitalism.” It is “a post-neoliberal or post-capitalist struggle” against woman’s inequality and patriarchy, racial and ethnic discrimination, and the degradation of the environment. More fundamentally it is against “savage capitalism,” and “neo-colonialism,” both internally and externally. (3)

The Brazilian political scientist Emir Sader, in The New Mole: Paths of the Latin American Left, argues that the setback for socialism in the 20th century was so severe that it is still recuperating to this day. Socialism can be part of the agenda, but the priority must be on forming governments and political coalitions to dismantle neoliberalism, even if that means accepting the broader capitalist system for the time being.(4) This in part explains why the construction of socialism in the coming years and decades will be a diverse process – differing widely from country to country. There is no single definition or model–we are indeed witnessing, two, three, many transitions to socialism..

Part 2: Rise of the Social Movements and New Theories of Social Struggle

The origins of twenty-first century socialism are found in the wave of social movements led by peasants and indigenous organizations that swept the rural areas of Latin America as state socialism was collapsing. By the mid-1990s they had assumed the lead in challenging the neoliberal order, particularly in Ecuador, Mexico, Bolivia, and Brazil. These new organizations were generally more democratic and participatory than the class-based organizations that traditional Marxist political parties had set up in rural areas in previous decades. In general, they came to fill the gap left by a working class that was fragmented, disoriented, and dispersed due to the assault of neo-liberalism. With a broad range of interests and demands, including indigenous and environmental rights, these new social movements transcended the modernist meta-narratives of both capitalism and traditional socialism.


Category : Bolivia | Cuba | Marxism | Socialism | Solidarity Economy | Venezuela | Blog

China & Market Socialism: A Question of State & Revolution


By Vince Sherman

Return to the Source, May 20, 2014

Deng Xiaoping: A People’s Hero

After the fall of the Soviet Union, most of the socialist countries tragically fell to the onslaught of Western imperialism. Among the horrific blows dealt to the international communist movement, five socialist states resisted the tide of counterrevolution and, against all odds, maintain actually existing socialism in the 21st century.

Though each face very specific obstacles in building socialism, these five countries–the Republic of Cuba, the Socialist Republic of Vietnam, the Lao People’s Democratic Republic, the Democratic People’s Republic of Korea, and the People’s Republic of China–stand as a challenge to the goliath of Western imperialist hegemony. Among them, however, China stands unique as a socialist country whose economic growth continues to supersede even the most powerful imperialist countries.

Though an embarrassing number of Western “left” groups challenge the designation of any of these five countries as socialist, no country raises greater opposition than China. Many Western “left” groups claim that modern China is a full-fledged capitalist country. Owing their ideological heritage to bogus theoreticians like Leon Trotsky, Tony Cliffe, and Hal Draper, some groups argue that China was never a socialist country, claiming instead that the Chinese state is and has been state capitalist.

I counter their outrageous reactionary assertions with six theses:

First, Chinese market socialism is a method of resolving the primary contradiction facing socialist construction in China: backwards productive forces.

Second, market socialism in China is a Marxist-Leninist tool that is important to socialist construction.

Third, the Chinese Communist Party’s continued leadership and control of China’s market economy is central to Chinese socialism.

Fourth, Chinese socialism has catapulted a workers state to previously unknown economic heights.

Fifth, the successful elevation of China as a modern industrial economy has laid the basis for ‘higher’ forms of socialist economic organization.

And sixth, China applies market socialism to its relations with the Third World and plays a major role in the fight against imperialism.

From these six theses, I draw the conclusion that Marxist-Leninists in the 21st century should rigorously study the successes of Chinese socialism. After all, if China is a socialist country, its ascension as the premiere world economic power demands the attention of every serious revolutionary, especially insofar as the daunting task of socialist construction in the Third World is concerned.

Market socialism is a method of resolving the primary contradiction facing socialist construction in China: backwards productive forces.

Comrade Deng Xiaoping

The Chinese revolution in 1949 was a tremendous achievement for the international communist movement. Led by Mao Zedong, the Chinese Communist Party (CCP) immediately charted a course of socialist reconstruction in an economy ravaged by centuries of dynastic feudalism and imperial subjugation from both Europe and Japan. The CCP launched incredible campaigns designed at engaging the masses in constructing socialism and building an economy that could meet the needs of China’s giant population. One can never overstate the incredible achievements of the Chinese masses during this period, in which the average life expectancy in China rose from 35 years in 1949 to 63 years by Mao’s death in 1976. (1)

Despite the vast social benefits brought about by the revolution, China’s productive forces remained grossly underdeveloped and left the country vulnerable to famines and other natural disasters. Uneven development persisted between the countryside and the cities, and the Sino-Soviet split cut China off from the rest of the socialist bloc. These serious obstacles led the CCP, with Deng Xiaoping at the helm, to identify China’s underdeveloped productive forces as the primary contradiction facing socialist construction. In a March 1979 speech at a CCP forum entitled “Uphold the Four Cardinal Principles,” Deng outlines the two features of this contradiction:

First, we are starting from a weak base. The damage inflicted over a long period by the forces of imperialism, feudalism and bureaucrat-capitalism reduced China to a state of poverty and backwardness. (2)

While he grants that “since the founding of the People’s Republic we have achieved signal successes in economic construction, established a fairly comprehensive industrial system,” Deng reiterates that China is nevertheless “one of the world’s poor countries.” (2)

The second feature of this contradiction is that China has “a large population but not enough arable land.” Deng explains the severity of this contradiction:

When production is insufficiently developed, it poses serious problems with regard to food, education and employment. We must greatly increase our efforts in family planning; but even if the population does not grow for a number of years, we will still have a population problem for a certain period. Our vast territory and rich natural resources are big assets. But many of these resources have not yet been surveyed and exploited, so they do not constitute actual means of production. Despite China’s vast territory, the amount of arable land is limited, and neither this fact nor the fact that we have a large, mostly peasant population can be easily changed. (2)

Unlike industrialized Western countries, the primary contradiction facing China was not between the proletariat and the bourgeoisie–the proletariat and its party had already overthrown the bourgeoisie in the 1949 revolution–but rather between China’s enormous population and its underdeveloped productive forces. While well-intended and ambitious, campaigns like the Great Leap Forward would continue to fall short of raising the Chinese masses out of poverty without revolutionizing the country’s productive forces.

From this contradiction, Deng proposed a policy of “socialism with Chinese characteristics,” or market socialism.


Category : China | Marxism | Socialism | Blog


By Harry Targ

Committees of Correspondence for Democracy and Socialism (CCDS)

For presentation at the  upcoming “Moving Beyond Capitalism” Conference, Center for Global Justice, San Miguel de Allende, Mexico July 29-August 5, 2014


The deepening 21st century crises of capitalism-from growing economic impoverishment to neo-fascism to literal destruction of planet earth-demand movements and visions of change unparalleled in quantities and qualities of response. Anti-capitalist responses to these crises range from helplessness to spontaneous activism. Often political reactions ignore the history and context of the crises and the movements that have come before that have planted the seeds of fundamental social change. This paper will survey movements of social change in the era of neoliberal globalization suggesting both the breadth of such movements and the historical context from which they came. The tasks for today still require an analysis of the nature of existing systems and responses, visions of desirable alternatives, and contextualized discussions of moving from here to there. “Moving Beyond Capitalism” requires such a grounding of the future in the past and the present.

21st Century Imperialism: Post-Cold War Perspectives on Global Political Economy

The collapse of the Soviet Union transformed world affairs, scholarly analyses of international relations, punditry, and rationales for imperial foreign policies. A new buzzword became part of political discourse to describe the international system: “globalization.” Almost immediately a large literature was generated suggesting that the world had changed. Globalization was replacing the system of often hostile nation-states that had characterized the world since the sixteenth century.[1]

While interpretations of globalization varied, the common conception of the term suggested that a process of relations was occurring in which interactions between nations, business and financial organizations, groups, and peoples had become so frequent and intense that they were creating one global society.[2] Major globalizing institutions included multinational corporations, especially the 200 largest global corporations with production, distribution, and decision-making facilities in many countries, and international financial institutions engaged in speculative activities all across the globe. At the cultural level a handful of media conglomerates produced a large percentage of the cultural products, images, artistic endeavors, and print and electronic information that the world consumed. Finally, international institutions such as the World Bank, the International Monetary Fund, and the newly created World Trade Organization brought international influence to bear on states that resisted the globalization process.


Category : Capitalism | Democracy | Globalization | Marxism | Socialism | Blog


Farsi News Service Interviews Professor William I. Robinson

Prof. William I. Robinson: Global Capitalism Is In the Midst of Its Most Severe Crisis

Interview by Kourosh Ziabari

June 24, 2014 – TEHRAN (FNA)- Prominent American sociologist Prof. William I. Robinson believes that the United States government is the biggest perpetrator of terror in the world and its military adventures across the globe have claimed the lives of millions of innocent citizens.

According to Prof. William I. Robinson, “if we define terrorism as the use of violence against civilians for political objectives, then the US state is the world’s leading terrorist.”

“US intervention abroad in the 20th century – the forging of a US empire – claimed tens of millions of victims, inflicted untold suffering, and set back the aspirations of freedom and democracy in dozens of countries,” said Prof. Robinson in an exclusive interview with Fars News Agency.

Prof. Robinson also went on to say that capitalism, which is the predominant economic and political worldview of the United States and other imperial powers is in the midst of its most severe crisis in close to a century, even worse than the crisis in the 1930s, “because we are on the precipice of an ecological holocaust that threatens the very earth system and the ability to sustain life, ours included, because the means of violence and social control have never before been so concentrated within a single powerful state, and because the global means of communication is also extraordinarily concentrated in the hands of transnational capital and a few powerful states.”

William I. Robinson is a professor of sociology, global and international studies, and Latin American studies at the University of California at Santa Barbara. His latest book entitled “Global Capitalism and the Crisis of Humanity” was just published in 2014. In the early 1980s, he worked as a journalist in the war-torn Nicaragua. From 1984 to 1990 he was a member of the Union of Nicaraguan Journalists. His articles and writings have appeared on such news websites as Al-Jazeera, Huffington Post and Truth Out.

Prof. Robinson took part in an exclusive, comprehensive interview with FNA and responded to our questions about the demise of capitalism, the future of globalization, the setbacks and failures of the US foreign policy and the human consequences of Washington’s military adventures. What follows is the text of the interview.

Q: What’s your viewpoint regarding the consequences of the US military expeditions across the world, including the devastation of the natural resources of the countries that are attacked, the killing of the unarmed civilians, the forced migration and displacement of the war-hit population, the pollution of the air, the infliction of irretrievable damages on the environment and the erosion of democratic institutions in these countries? Who is going to compensate for these losses?

A: The US state is acting as the gendarme for global capitalism at a time when global capitalism is in deep crisis. It is the core institution in what I have referred to as the transnational state, and in my view it represents at this time the interests of transnational capital, of a transnational capitalist class.

The United States has committed successive war crimes and crimes against humanity in recent years. However, let us recall that this is the continuation of a long historical pattern, what we used to call imperialism, and some still do refer to as imperialism. The United States as a country was born on the basis of the slavery of Africans and other peoples and genocide against the native populations of North America.

Expansion from the original East Coast colonies began from the very inception of the Republic. Texas was annexed from Mexico in 1836 by white Southern slavers who were seeking to expand cotton plantation based on the slavery of Africans. This expansion continued in 1848 as the United States annexed one half of Mexican territory in a war of aggression justified by “Manifest Destiny”. US rulers then launched extra-territorial expansion, starting with the invasion, occupation, and colonization of Puerto Rico, the Philippines, and Cuba in 1898, and followed by literally hundreds – perhaps thousands – of interventions in the 20th century, including convert operation, the orchestration of coup d’etats, counter-insurgencies, military invasions, occupations, and so forth – throughout Latin America, Africa, the Middle East, and Asia, but also in Southern and Eastern Europe. US intervention abroad in the 20th century – the forging of a US empire – claimed tens of millions of victims, inflicted untold suffering, and set back the aspirations of freedom and democracy in dozens of countries – yet US rulers had the arrogance and cynicism to claim that its aggression against the world’s people was in the name of freedom and democracy.

Of course the United States does not hold a monopoly on such expansionism and interventionism in the modern era of capitalism. Over the past two centuries, and even earlier, England, France, Spain and other European powers were carving out their own colonial empires, unleashing unfathomable brutality and suffering. The culprit here, beyond a particular nation-state, is an outwardly expanding capitalism involving imperialism and colonialism. The United States stands out because it became the dominant world power in the wake of World War II and set about to construct a truly global empire, the likes of which the world had not previously seen.

However, and this is the key point I wish to highlight here, US intervention around the world clearly entered a qualitatively new period after September 11, 2001. This new period should be seen in the context of emergent 21st century global capitalism. Global capitalism is in the midst of its most severe crisis in close to a century, and in many ways the current crisis is much worse than that of the 1930s because we are on the precipice of an ecological holocaust that threatens the very earth system and the ability to sustain life, ours included, because the means of violence and social control have never before been so concentrated within a single powerful state, and because the global means of communication is also extraordinarily concentrated in the hands of transnational capital and a few powerful states. On the other hand, global inequalities have never been as acute and grotesque as they are today. So, in simplified terms, we need to see the escalation of US interventionism and the untold suffering it brings about, including what you mention – the killing of unarmed civilians, the destruction of the environment, forced migration and displacement, undermining democracy – as a response by the US-led transnational state and the transnational capitalist class to contain the explosive contradictions of a global capitalist system that is out of control and in deep crisis.

You ask me who is going to compensate for these losses. That will depend on how the world’s people respond. There is currently a global revolt from below underway, but it is spread unevenly across countries and has not taken any clear form or direction. Can the popular majority of humanity force the transnational capitalist class and the US/transnational state to be accountable for its crimes? Mao Zedong once said that “power flows through the barrel of a gun.” What he meant by this, in a more abstract than literal way, I believe, is that in the end it is the correlation of real forces that will determine outcomes. Because the United States has overwhelming and “full spectrum” military dominance, it can capture, execute, or bring to trial people anywhere around the world… it has “free license”, so to speak, to act as an international outlaw. We don’t even have to take the more recent examples. In December 1989 the United States undertook an illegal and criminal invasion of Panama, kidnapped Manuel Noriega – whether or not he was a dictator is not the point, as the United States puts in power and defends dictators that defend US and transnational elite interests, and brought him back to US territory for trial. What country in the world now has the naked power “flowing through the barrel of a gun” to invade the United States, capture George Bush, Dick Chaney, Donald Rumsfeld, and other war criminals, and bring them somewhere to stand trial for war crimes and crimes against humanity?

Q: In your writings, you’ve warned against the growing gap between the rich and the poor, the slant accumulation of the global wealth in the hands of an affluent few and the impoverishment of the suppressed majority. What do you think are the reasons for this stark inequality and the disturbing dispossession of millions of people in the capitalist societies? You wrote that the participants of the 2011 World Economic Forum in Davos were worried that the current situation raises the specter of worldwide instability and civil wars. Is it really so?

A: We have never in the history of humanity seen such a sharp social polarization between the haves and the have-nots, such grotesque levels of inequality, within and among countries. There have been countless studies in recent years documenting the escalation of inequalities, among them, the current bestseller by Thomas Piketty, “Capital in the Twenty-First Century.” The pattern we see is that the notorious “1 percent” monopolizes a huge portion of the wealth that humanity produces and transnational corporations and banks are registering record profits, but as well that some 20 percent of the population in each countries has integrated into the global economy as middle class and affluent consumers while the remaining 80 percent has experienced rising levels of insecurity, impoverishment, and precariousness, increasingly inhabiting what some have called a “planet of slums.”


Category : Capitalism | Globalization | Hegemony | Marxism | Blog