17
Jan

Bus/Taxi Coop in Cuba

Cuba is poised to be the first country in the world to have cooperatives make up a major portion of its economy. It is a laboratory for a new society.

By Cliff DuRand

Cuba is engaged in a fundamental reshaping of its society. Calling it a renovation of socialism or a renewal of socialism, the country is re-forming the economic system away from the state socialist model adopted in the 1970s toward something quite new. This is not the first time Cuba has undertaken significant changes, but this promises to be deeper than previous efforts, moving away from that statist model. Fidel confessed in 2005 that “among the many errors that we committed, the most serious error was believing that someone knew how to build socialism.” That someone, of course, was the Soviet Union. So, Cuba is still trying to figure out for itself how to build socialism.

To understand the current renovation it is important to distinguish between ownership and possession of property. The productive resources of society are to remain under state ownership in the name of all the people. Reforms do not change the ownership system. Reforms are changing the management system, bringing managerial control closer to those who actually possess property. So while the state will continue to own, greater autonomy will be given to those who possess that property. In effect, Cuba is embracing the principle of subsidiarity, which holds that decisions should be made at the lowest level feasible and higher levels should give support to the local. This means more enterprise autonomy in state enterprises and it means cooperatives outside of the state.

It is expected that in the next couple years the non-state sector is expected to provide 35% of the employment. Along with foreign and joint ventures, the non-state sector as a whole will contribute an estimated 45% of the gross domestic product (PIB). Hopefully coops will become a dominant part of that non-state sector.

Cooperatives

Already 83% of agricultural land is in coops. Much of that has been in the UBPCs (Basic Units of Cooperative Production) formed in the 1990s out of the former state farms. But these were not true cooperatives since they still came under the control of state entities. Now they are being given the autonomy to become true coops.

Even more significantly, new urban coops are being established in services and industry. 222 experimental urban coops are to be opened in 2013. As of 1st of July, 124 have been formed in agricultural markets, construction, and transportation. A big expansion in this number is expected in 2014.

In December 2012 the National Assembly passed an urban coop law that establishes the legal basis for these new coops. Here are some of its main provisions:

  • A coop must have at least 3 members, but can have as many as 60 or more. One vote per socio. As self-governing enterprises, coops are to set up their own internal democratic decision making structures.
  • –Coops are independent of the state. They are to respond to the market. This is to overcome the limits that hampered some agricultural coops in the past.
  • –Coops can do business with state and private enterprises. They will set their own prices in most cases, except where there are prices established by the state.
  • –Some coops will be conversions of state enterprises, e.g. restaurants. They can have 10 year renewable leases for use of the premises, paying no rent in the first year if improvements are made.
  • –Others will be start-up coops.
  • –There will be second degree coops which are associations of other coops.
  • –Capitalization will come from bank loans, a new Finance Ministry fund for coops and member contributions. Member contributions are treated as loans (not equity) and do not give additional votes. Loans are to be repaid from profits.
  • –Coops are to pay taxes on profits and social security for socios.
  • –Distribution of profits is to be decided by socios after setting aside a reserve fund.
  • –Coops may hire wage labor on a temporary basis (up to 90 days). After 90 days a temporary worker must be offered membership or let go. Total temporary worker time cannot exceed 10% of the total work days for the year. This gives coops flexibility to hire extra workers seasonally or in response to increased market demands, but prevents significant collective exploitation of wage labor.

This is a big step forward for Cuba. Since 1968 the state has sought to run everything from restaurants to barber shops and taxis. Some were done well, many were not. One problem was worker motivation. Decisions were made higher up and as state employees, workers enjoyed job security even with poor performance. However, their pay was low. Now as socios in cooperatives they will have incentives to make the business a success. The coop is on its own to either prosper or go under. Each member’s income and security depends on the collective. And each has the same voting right in the General Assembly where coop policy is to be made. Coops combine material and moral incentives, linking individual interest with a collective interest. Each socio prospers only if all prosper.

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Category : Cooperatives | Cuba | Socialism | Solidarity Economy
1
Jan

Treat the Seven Important Ideological Trends Correctly and Make Innovations in Our Social Sciences Independently

An Interview with Professor Cheng Enfu

Interviewer: Liang Weiguo
Chinese Social Sciences Net (CSSN)

[Introduction to the Interviewee] March 31, 2012 – Cheng Enfu, born in Shanghai in 1950, is a professor, PhD candidate supervisor, and representative to the Eleventh National People’s Congress, as well as the director of the Marxist Academy, an affiliate of the Chinese Academy of Social Sciences (CASS).
In May 2004, Prof. Cheng gave a lecture in a study meeting of the Political Bureau of the CPC Central Committee presided by Hu Jintao, general secretary. In February 2002, he presented a report on how to reform in a theoretical symposium presided by Jiang Zemin, former general secretary. He has been seen as “one of the representatives of the fourth generation of China’s economists” and “one of the most creative economists in China” by some influential newspapers in China and Japan.

Prof.. Cheng is also a member (academician) of CASS, member of the CASS Academic Division Presidium, director of the Academic Division of Marxism Study in CASS, chairman of the World Association of Political Economy (a global academic community), chairman of the Chinese Society for Studies of Foreign Economics, president of the Institute for Studies of Regularities in China’s Economy, and an “Expert of the Marxism Discipline Appraisal Group in the Academic Degree Commission” of the State Council. He enjoys a State Council Special Allowance.

Cheng Enfu, the director of the Marxist Academy in CASS, is describing the current situation of China’s ideological field.

It is the premise of a firm political belief to keep ideologically sober. What ideological trends are there in the ideological realm in China today? What are their key ideas? How to understand and treat them? How to develop the philosophy and social sciences with Chinese characteristics and Chinese style? Liang Weiguo, CSSN reporter, had an interview with Prof. Cheng Enfu recently for the answers to the questions.

To Resist the negative effects of Neoliberalism on reform

Interviewer: It is a must to identify the true and the false through comparisons among various ideologies if we want to get clear on what are Marxism, socialism with Chinese characteristics and the socialist core value system. Director Cheng, what ideological trends are there in our society today?
Cheng Enfu: In fact, there are seven important ideological trends in the ideological realm in China today: Neoliberalism, Democratic Socialism, the New Left, Eclectic Marxism, traditional Marxism, Revivalism and Innovative Marxism. By ideological trend, I use it as a neutral concept and various studies of Marxism can also be seen as ideological trends.

In the 1870s, the UK suffered from a serious economic crisis. T.H. Green firstly created a theory which maintained the tradition of UK’s liberalism and implemented state intervention to bring the role of state into full play. After the 1890s, many radical intellectuals — who called themselves “collectivists” — within and outside the Liberal Party contended to build an equal and cooperative new society. “Neoliberalism” was the popular word which represented the theory they held. Could you please give us your understanding of “Neoliberalism”?

Neoliberalism is the ideology, economic theory and policy proposal of the monopolizing capitalist classes. Its theories and policies can be summarized as “four de- or -izations”.

Firstly, Neoliberalism stands for de-regulation of economy. It believes that planning of economy and regulation of distribution by state would ruin economic freedom and kill the enthusiasm of the “economic man”. Only by letting the market run freely can we have the best result.

Secondly, Neoliberalism stands for the privatization of economy. It contends that privatization would become the basis on which the role of market could be brought into full play, and private enterprises are the most efficient ones, and the public resources should be privatized. Neoliberalism tends to reduce public sectors, state-owned sectors and institutions to the minimum, or none.

Thirdly, Neoliberalism stands for the liberalization of economy. It claims that free choice should be the most essential principle of economic and political activities. We should have the right to possess personal property and carry out free trade, consumption and employment. But it denies the free flow of the labor force. The nature of its liberalization of economy is to protect the unfair economic globalization dominated by the US and the unjust old international economic order.

Fourthly, Neoliberalism stands for the personalization of welfare. It stands against building a welfare state and improving the welfare of the laborers. And that is a typical feature of Neoliberalism. However, it has not been clearly stated in the academic circles both in and outside China.

Zhang Weiying and Yao Yang, professors of Peking University, are leading figures of China’s Neoliberalism.

The diversification of guiding ideologies advocated by Democratic Socialism

The concept of Democratic Socialism was first put forward in the book “The Preconditions of Socialism” by Eduard Bernstein in 1899. In June 1951, the Socialist International passed the declaration “Aims and Tasks of Democratic Socialism” as its principles when it was founded. It clearly set “Democratic Socialism” as its program and standed openly against the scientific socialism of Marxism.

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Category : China | Marxism | Neoliberalism
31
Dec

Black Panther liberation school, a main instrument of counter-hegemony.

Section IV of Towards the War of Position:


Gramsci in Continuity and Rupture  with Marxism-Leninism

[Full document available as PDF download HERE]

By Amil K.
Revolutionary Initiative / Canada

Sept 10, 2013 – The main concern of the prison notebooks is the development of “the philosophy of praxis”1 with the aim of rejuvenating communist strategy in light of the failures and setbacks in Gramsci’s period. However fragmentary the passages of the notebooks are, they compose a totalizing system of thought in which a major focal point is the question of strategy. While there is so much more to the prison notebooks in terms of Gramsci’s intellectual contributions than questions of class war and strategy – hence, the Gramsci being a treasure trove for liberal academics – many of the notes point back to what Gramsci calls the war of position. But this concept can only be appreciated by unpacking some of the conceptual apparatus built up around it throughout the prison notebooks, which includes concepts such as the historical bloc; the ‘analysis of situations’; hegemony; Gramsci’s concept of philosophy and the organic intellectual; his distinct notion of the Party;and finally, his explanation of civil society.

Understanding the Historical Bloc

One of the core concepts of Gramsci’s prison notebooks is the ‘historical bloc’. While the term is only scarcely mentioned in the prison notebooks, given the concept’s role in framing much of Gramsci’s conceptual apparatus it can be argued that Gramsci’s prison notebooks are a long-running elaboration of the concept. There is no section dedicated to the historical bloc, only a couple short passages:

    Concept of ‘historical bloc’, i.e. unity between nature and spirit (structure and superstructure) unity of opposites and of distincts (137).

Structures and superstructures form an ‘historical bloc’. That is to say the complex, contradictory and discordant ensemble of the superstructures is the reflection of the ensemble of the social relations of production (366).

If I may take the liberty to flesh this out somewhat, in light of my reading of the prison notebooks, the historical bloc is the organic but contradictory unity between the dominant and subaltern social groups in a given historical period, the relations of which are historically emergent and need to be understood as such in order to understand the nature of the relations among these social groups in the present. Whereas ‘nature’ here is considered relatively fixed and generally changes only over much longer periods, the ‘Spirit’ is the contradictory unity between structural and super-structural elements in a bloc of time. On the one hand, the concept of the historical bloc is a rather orthodox reformulation of Marx’s historical materialism, a principle thesis of which Gramsci paraphrases at certain points throughout the prison notebooks: “1. That no social formation disappears as long as the productive forces which have developed within it still find room for further forward movement; that a society does not set itself tasks for whose solution the necessary conditions have not already been incubated” (106).

On the other hand, Gramsci’s elaboration of the architecture of the historic bloc (without actually referencing the term) throughout the prison notebooks reveals an awareness of the incredibly dynamic and ever-shifting character of the relationships among the “discordant…ensemble of the social relations of production” (366). The acute awareness of the dynamism at play amongst various levels of relations of force is a feature of Gramsci’s thinking that makes his analyses of history so penetrating and his overall method of historical and political analysis such a force of rejuvenation for “the philosophy of praxis” and the communist movement. Of particular importance for Gramsci, and for any communist movement, is a comprehensive study of the oppressed and exploited classes within their own historical bloc.

In his note “History of the Subaltern Classes: Methodological Criteria”, Gramsci provides a schema for what such a historical reconnaissance actually consists of when it comes to the “subaltern classes.” Whereas the historical unity of the ruling classes is realized in the State (and therefore its historical development can be traced through the development of the State as well),

    The subaltern classes, by definition, are not unified and cannot unite until they are able to become a “State”: their history, therefore, is intertwined with that of civil society, and thereby with the history of States and groups of States. Hence it is necessary to study: 1. The objective formation of subaltern social groups, by developments and transformations occurring in the sphere of economic production; their quantitative diffusion and their origins in pre-existing social groups, whose mentality, ideology, and aims they conserve for a time; 2. their active or passive affiliation to the dominant social formation, their attempts to influence the programmes of these formations in order to press claims of their own… 3. the birth of new parties of the dominant groups, intended to conserve the assent of the subaltern groups and to maintain control over them; 4. the formations which the subaltern groups themselves produce, in order to press claims of a limited and partial character; 5. those new formations which assert the autonomy of the subaltern groups, but within the old framework; 6. those formations which assert the integral autonomy (52).

This schematic outline for studying the subaltern is a major component for understanding the historical bloc. This method of historical analysis is the means by which a communist formation ultimately determines whether or not a favourable situation exists for the subaltern social groups to accumulate revolutionary forces and whether the situation is favourable to them becoming the ruling class at a given conjuncture of history; in other words, the essence of this historiographical method reduces to the question of whether the situation is favourable for revolution in the present historical bloc.

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Category : Hegemony | Intellectuals | Strategy and Tactics
23
Dec

clip_image002Based on experiences of Brazil, Venezuela and the state of Kerala, India

By Marta Harnecker, translated by Federico Fuentes

[Paper presented at the International Scientific Academic Meeting on Methodology and Experiences in Socio-environmental Participatory processes, Cuenca University, November 13-15, 2014.*]

December 19, 2014 — Links International Journal of Socialist Renewal — These words are aimed at those who want to build a humanist and solidarity-based society. A society based on the complete participation of all people. A society focused on a model of sustainable development that satisfies people’s genuine needs in a just manner, and not the artificial wants created by capitalism in its irrational drive to obtain more profits. A society that does all this while ensuring that humanity’s future in not put at risk. A society where the organized people are the ones who decide what and how to produce. A society we have referred to as Twenty-First Century Socialism, Good Living or Life in Plenitude.

The question is how can we achieve this complete participation? How can we guarantee as much as possible that all citizens, and not just activists or leftists, take an interest in participation? How can we achieve the participation of middle class sectors alongside popular sectors? How can we ensure that solidarian interests prevail over selfish ones? How can we attend to the concerns of the poorest and most forgotten and repay the social debt inherited by previous governments?

I am convinced that it is through what we have called “decentralized participatory planning” that we can achieve these objectives. We have reached this conclusion not on the basis of reading books and academic debates, but through the study of practical experiences of participatory budgets and participatory planning, primarily in Brazil, Venezuela and the Indian state of Kerala.

We were very attracted to the experience of participatory budgeting undertaken by the regional Workers’ Party government in Porto Alegre, Brazil, because we saw it as a new, transparent, rather than corrupt, way of governing, that delegated power to the people.

In Venezuela, we got a strong sense of how the popular subject was strengthened through the initiative taken by Chávez to promote the creation of communal councils and his decision to grant them resources for small projects. This was not done in a populist manner, with the state coming in to satisfy the community’s demand; rather it occurred after a process of participatory planning where the citizens of the community implemented what he called “the communal cycle”, which involved the following actions: diagnosis, elaboration of a plan and budget, execution of the project, and control over how it was carried out.[1]

Lastly, our work was been greatly enhanced by what we learnt from one of the first experiences in the world of “decentralized participatory planning” that occurred in the Indian state of Kerala. There, a communist government decided to carry out an important process of decentralization, not only of monetary resources, but also material and human resources, to aid with the implementation of local development plans that were based on the active participation of local residents. The end result of this has been a more egalitarian economic development when compared to the rest of India, and a growth in resident’s self-esteem and self-confidence. This type of decentralization allowed for greater local government autonomy when it came to planning their development, which facilitated the progress of a much more effective participatory planning.

I. A decentralised participatory planning proposal

The type of planning we advocate is the antithesis of the centralized planning implemented under the Soviet Union. In the old USSR, it was thought that to coordinate all efforts towards building a new society, a central authority was required to decide objectives and means. It was a process in which decisions were always made from above, on many occasions without taking into consideration that down below was where people best knew the problems and possible solutions.

Similarly, often processes that claim to be participatory limit themselves to being processes of simple consultation. Rather than promoting a process of decision-making by citizens, local politicians limit themselves to consulting citizens. The people in the local area are called upon to participate in working groups where they are asked to point out their main priorities for public works and services for their respective communities. A technical team collects these and it is the technicians and not the people who decided upon which projects to implement. We don’t deny that a willingness to listen to people represents a step forward, but it is very limited.

We advocate a more integral process in which it is the people who genuinely discuss and decide upon their priorities, elaborate, where possible, their own projects and carry them out if they are in the condition to do so without having to depend on superior levels. We seek to fully involve citizens in the planning process, which is why we refer to it as participatory planning.

To achieve complete citizen’s participation we must take the plans of small localities as our starting point, where conditions are more favorable for peoples’ participation, and apply the principle that everything that can be done at a lower level should be decentralized to this level, and only keeping as competencies of higher up levels those tasks that cannot be carried out at a lower level. This principle is referred to as subsidiarity.

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Category : Democracy | India | Socialism | Solidarity Economy | Venezuela
15
Dec

An Overview of New Resources on Their Deep Connection

By Sven Beckert
The Chronicle

Dec 12, 2014 – Few topics have animated today’s chattering classes more than capitalism. In the wake of the global economic crisis, the discussion has spanned political boundaries, with conservative newspapers in Britain and Germany running stories on the "future of capitalism" (as if that were in doubt) and Korean Marxists analyzing its allegedly self-destructive tendencies. Pope Francis has made capitalism a central theme of his papacy, while the French economist Thomas Piketty attained rock-star status with a 700-page book full of tables and statistics and the succinct but decisively unsexy title Capital in the Twenty-First Century (Harvard University Press).

With such contemporary drama, historians have taken notice. They observe, quite rightly, that the world we live in cannot be understood without coming to terms with the long history of capitalism—a process that has arguably unfolded over more than half a millennium. They are further encouraged by the all-too-frequent failings of economists, who have tended to naturalize particular economic arrangements by defining the "laws" of their development with mathematical precision and preferring short-term over long-term perspectives. What distinguishes today’s historians of capitalism is that they insist on its contingent nature, tracing how it has changed over time as it has revolutionized societies, technologies, states, and many if not all facets of life.

Nowhere is this scholarly trend more visible than in the United States. And no issue currently attracts more attention than the relationship between capitalism and slavery.

If capitalism, as many believe, is about wage labor, markets, contracts, and the rule of law, and, most important, if it is based on the idea that markets naturally tend toward maximizing human freedom, then how do we understand slavery’s role within it? No other national story raises that question with quite the same urgency as the history of the United States: The quintessential capitalist society of our time, it also looks back on long complicity with slavery. But the topic goes well beyond one nation. The relationship of slavery and capitalism is, in fact, one of the keys to understanding the origins of the modern world.

For too long, many historians saw no problem in the opposition between capitalism and slavery. They depicted the history of American capitalism without slavery, and slavery as quintessentially noncapitalist. Instead of analyzing it as the modern institution that it was, they described it as premodern: cruel, but marginal to the larger history of capitalist modernity, an unproductive system that retarded economic growth, an artifact of an earlier world. Slavery was a Southern pathology, invested in mastery for mastery’s sake, supported by fanatics, and finally removed from the world stage by a costly and bloody war.

Some scholars have always disagree with such accounts. In the 1930s and 1940s, C.L.R. James and Eric Williams argued for the centrality of slavery to capitalism, though their findings were largely ignored. Nearly half a century later, two American economists, Stanley L. Engerman and Robert William Fogel, observed in their controversial book Time on the Cross (Little, Brown, 1974) the modernity and profitability of slavery in the United States. Now a flurry of books and conferences are building on those often unacknowledged foundations. They emphasize the dynamic nature of New World slavery, its modernity, profitability, expansiveness, and centrality to capitalism in general and to the economic development of the United States in particular.

The historians Robin Blackburn in England, Rafael Marquese in Brazil, Dale Tomich in the United States, and Michael Zeuske in Germany led the study of slavery in the Atlantic world. They have now been joined by a group of mostly younger American historians, like Walter Johnson, Seth Rockman, and Caitlin C. Rosenthal, looking at the United States.

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Category : Capitalism | Racism | Slavery
8
Nov

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:

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.

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Category : China | Marxism | Socialism
31
Oct

 

Xi Jinping’s Tiger Hunt and the Politics of Corruption

By Andrew Wedeman

ChinaCenter.net

The Communist Party of China has been grappling with corruption almost from its birth. Corruption was one of the major issues during the 1989 anti-government demonstrations.

The leadership, in fact, responded to public anger over corruption and what was then known as “official profiteering” by launching a major campaign, in the course of which the number of individuals charged with corruption jumped from 33,000 in 1988 to 77,000 in 1989, and 72,000 in 1990.

Since the 1989 campaign, the leadership has waged an ongoing “war” against corruption and routinely prosecutes substantial numbers of officials. Between 1997 and 2012 the Supreme People’s Procuratorate reported that it indicted 550,000 individuals on either corruption or dereliction of duty charges, including three members of the powerful Politburo (Chen Xitong in 1997, Chen Liangyu in 2006, and Bo Xilai in 2012).

These prior efforts notwithstanding, upon assuming the office of General Secretary of the party in November 2012, Xi Jinping announced yet another campaign, which was formally approved by the Third Plenum of the Eighteen Party Congress in early November 2013. At first, the campaign appeared to be a repeat of the same old song and dance. Many of the steely toned slogans about the necessity to fight a life-and-death struggle against corruption and the need to put an end to extravagant spending by officials and cadres had been raised many times before.

Announcements of new regulations mandating fewer dishes at official banquets, banning the purchase of luxury sedans and their use for unofficial business, and the construction of lavish government buildings all reiterated orders issued in past years. Eighteen months on, however, it appears that far from a smoke and mirrors attempt to create the impression of action, Xi Jinping’s anti-corruption campaign may well be the most sustained and intensive drive against corruption since the start of the reform era.

By the Numbers

Measuring the intensity of an anti-corruption campaign is, admittedly, a tricky business given that we cannot even roughly estimate the true extent of corruption. Instead, we can at best guess at the extent by asking experts for their impressions of how bad things are or tracking changes in the number of officials who suddenly stop being corrupt because they get caught. Indices such as the popular Corruption Perceptions Index (CPI) published by Transparency International would have us believe that rather than getting worse, corruption in China has actually been on the decline for at least a decade, with its score falling from 7.6 (out of a maximum of 10, where 10 is the most corrupt and 1 the least corrupt) in 1995 to 6.0 in 2013, which would put China just below the 75th percentile and hence not among the worst of the worse.1

Data on prosecutions tell a different story. The number of criminal indictments was up 9.4 percent in 2013, with the total number of corruption and dereliction cases increasing from 34,326 in 2012 to 37,551 in 2013 (see Figure 1). The number of officials holding position at the county and departmental levels who were indicted rose from 2,390 to 2,618, a 9.5 percent increase. The number of officials the prefectural and bureau levels who were indicted shot up more dramatically, from 179 in 2012 to 253 in 2013, a 41.4 percent jump. Although nine percent increases in the total number of cases and in the number of county and department officials indicted may seem modest for a highly trumpeted campaign, these increases followed a decade in which the total number of indictments had been slowly decreasing. Increases in 2013, moreover, follow more modest increases in 2012. As a result, the total number of indictments in 2013 was 16.2 percent more than in 2011, and the number of country and department officials indicted was up 12.6 percent compared to 2011. More critically, the 41 percent increase in prefectural and bureau level officials indicted is the largest such increase since 2004, and represents a 27.8 percent rise over 2011. Finally, eight officials at the provincial and ministry levels were indicted, compared to five in 2012. The party’s Discipline Inspection Commission (DIC) also reported a 13.3 percent increase in the number of party members who faced disciplinary action.

Indices

Sources: Zhongguo Jiancha Nianjian [Procuratorial Yearbook of China], (Beijing: Zhongguo Jiancha Chubanshi, various years) and Zuigao Renmin Jiancha Yuan Gongzuo Baogao [Work report of the Supreme People’s Procuratorate], 3/18/2014, available at http://www.spp.gov.cn/tt/201403/t20140318_69216.shtml, accessed 6/12/2014.

Note: To provide a long-term perspective, I have transformed the raw data on cases filed into an index anchored on the years 1997-8. I do this because the 1997 revision of the criminal code decriminalized a large number of low-level offenses. The dramatic drop in cases filed thus creates the misleading impression that either corruption fell dramatically, which it did not, or that enforcement suddenly slacked off, which it did not either.

Targeting

It is also possible to look at the type of corruption a campaign is targeting and who is getting caught to get a more nuanced sense of whether Xi’s roar is that of a paper or a real tiger.

continue

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Category : China | Socialism