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Utopian, scientific and real socialism

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Optional. Socialism

  • There are two ways to define socialism:
    • By its aims: a socialist society is one that functions to meet the needs of the people.
      • It does not refer only to material needs, but to other types (personal development, for example).
      • This is the most complete definition.
    • By its means: a socialist society is one in which the people have control of the means of production.
      • It is often believed to be an equivalent definition to the previous one, because if people have control of the means of production (it is thought that) they will direct the allocation to meet their needs.
      • But this is a less complete definition, because people controlling the means of production does not always guarantee that they control the allocation or that their needs will be met.
      • For example, in a system of small landowners linked by the market, people control the means of production. However, competition among producers can force them to maximize profit, thereby neglecting their needs.
  • Depending on how socialism is conceived and what the strategy is to achieve it, we have different positions.
    • Proposed workings for a socialist society:
      • Distribution: equal, according to work, according to needs, etc.
      • Economic mechanism: market, federation, planning, etc.
      • Small production, cooperatives, communes, etc.
    • Strategies for achieving a socialist society:
      • Persuasion, elections, revolution, etc.
  • That's why there are anarchisms, communisms, and so on. And within these categories, there are further subdivisions. There isn't one socialism, but rather multiple forms of socialism.
  • There have also been societies that claimed to be socialist, but that did not resemble either of the two definitions; for this reason they were called "real socialisms".

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Utopias and dystopias

These utopias were not generally intended to be implemented, with a few exceptions (Plato in Syracuse, Jesuit missions). They were more ways of criticizing existing societies than concrete plans for alternative ones.

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“Utopian” socialism

  • The utopian socialists.
    • Saint- Simon (1760-1825), Nouveau christianisme
    • Robert Owen (1771-1858), New Lanark, New Harmony,
    • Charles Fourier (1772-1837), phalansteries,
    • Cabet (1778-1856), Nauvoo , New Icaria, Voyage en Icarie .
  • Strange socialists
    • Rodbertus (1805-1875), “Prussian socialism”
  • The “utopian socialists” did intend to implement their projects, for example by building small communities to demonstrate their viability. They relied on persuasion.
    • Engels labeled them "utopian" because they had detailed pre-established plans for their ideal and because they sought to convince others of it; rather, they failed to implement their ideas based on historical necessity or the struggle of the working classes, which is how Engels believed it should be done : From Utopian Socialism to Scientific Socialism , https://web.archive.org/web/20171214182801/http://webs.ucm.es/info/bas/es/marx-eng/80dsusc/index.htm
  • The anarchists and Rodbertus aspired to more general political solutions.
  • Tugan, Modern Socialism , 1912, �https://web.archive.org/web/20120414201301/http://www.ucm.es/info/bas/es/tugan/socialismo600.pdf

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Anarchism

  • Rejection of the state, of power.
  • Market as economic coordination (but often in a naive way; for example, by rejecting money).
  • A very varied, chaotic movement that is difficult to classify.
  • Main currents:
    • Mutualism
      • Proudhon (1809-1865)
      • Private or cooperative means of production
      • “Socialism of artisans”, labor-value
    • Anarcho-collectivism
      • Bakunin (1814-1876)
      • Collective means of production, autonomy of associations
      • To each according to their work, work-value
    • Anarcho-communism or libertarian communism
      • Kropotkin (1842-1921), Reclus (1830-1905), Malatesta (1853-1932), Goldman (1869-1940)
      • Collective means of production, federation of associations
      • To each according to their needs
  • Main experiences:

Bakunin

Kropotkin

Proudhon

Goldman

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Important: Marx and Engels. �“Scientific” socialism

  • Marx (1818-1883) is by far the most important author in the entire socialist tradition, far ahead of the others.
  • But Marx refuses to describe socialism and considers any attempt to do so utopian without a real-world reference point. That is why he rejects the plans of Fourier, Owen, and others.
  • Socialism must be “scientific”:
    • He had to explain capitalism scientifically, and find its laws of motion.
    • As a consequence of that explanation, he had to demonstrate that socialism was a historical necessity.
    • And here he considers his task complete. Therefore, he does not construct a description of how his socialism operates, but rather an analysis of capitalism.
  • Marx never claimed to know how socialism should work; he was always very cautious on this issue, and he always pointed out that:
    • Socialism was a historical necessity, and its realization was not the result of a prior intellectual project.
    • Contrasting it with reality was necessary to formulate a theory of socialism.
  • However, Marx and Engels do outline some ideas (sometimes quite insightful) about how socialism should function, but in a vague and unsystematic way . One has to delve into their texts to glimpse what their ideas were on the matter.
  • Texts by Marx and Engels: https://sites.google.com/site/manuelmuinhospan/referencias/marx-engels . The texts cited in the following slides can be found, arranged chronologically.

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Marx and Engels. Characteristics of socialism. Plan or market

  • They seem to flatly reject private exchange, but not all types of exchange:
    • “Therefore, nothing can be more erroneous and absurd than to postulate the control of unified individuals over their total production, on the basis of exchange-value, of money (…) The private exchange of all the products of labor, all activities, and all wealth stands in strict antithesis not only to distribution based on a political or natural subordination of some individuals over others, but also to free exchange between individuals who are associated on the basis of common appropriation and control of the means of production,” Marx, Grundrisse , 1857 ( cited in Seongjin Jeong "Marx's Communism as an Association of Free Individuals: A Revision").
    • Here, “private exchange” is contrasted with “free exchange” based on common ownership, and only the former is rejected. But the difference is unclear. Perhaps they are referring to exchange between companies versus exchange between cooperatives.
  • They sometimes speak of “social production according to a pre-established plan.” Engels, From Utopian Socialism to Scientific Socialism , 1880. But they say nothing about how this plan would be established (how to obtain the information, how to perform the calculation, how to put it into practice).
    • There are letters from Engels to Marx in which he points out the importance of accounting. There are also references by Engels to the need for an authority (perhaps for the practical implementation of that plan); On Authority , 1873.
  • But perhaps that “pre-arranged plan” was not entirely opposed to a market-like mechanism. For example, in Engels’s preface to Marx’s The Poverty of Philosophy , 1847, he criticizes the lack of a regulator in Rodbertus ’s utopia that would act analogously to the market mechanism in establishing the quantities consumed and produced.
    • “In a society of producers who exchange their goods, competition sets in motion the law of value inherent in commodity production, thus establishing an organization and order of social production that are the only ones possible under the given circumstances. Only the devaluation and excessive price increases of products tangibly show the various producers what and how much society needs and what it does not. Now, this single regulator is precisely what the utopia represented by Rodbertus seeks to abolish. And if we now ask what guarantees there are that each item will be produced in the necessary quantity and not in a greater quantity, what guarantees there are that we will not feel the need for bread and meat while we are crushed by piles of beet sugar and swimming in torrents of potato brandy, or that we will not suffer a shortage of trousers to cover our nakedness while buttons for such garments abound by the millions, Rodbertus will solemnly refer us to his famous reckoning, which indicates that for every pound of surplus For every barrel of unsold sugar, for every button not sewn onto trousers, an exact bond has been issued, a perfect settling of accounts where everything matches up perfectly and by virtue of which "all claims will be satisfied and settled in a fair manner."
  • And in other texts, in response to criticisms of its unrealizable nature, it is pointed out (perhaps) that socialism should have a decentralized base coordinated by a common plan.
    • “Yes, gentlemen, the Commune intended to abolish that class ownership which turns the labor of the many into the wealth of the few. The Commune aspired to the expropriation of the expropriators. It wanted to make individual ownership a reality by transforming the means of production—land and capital—which today are fundamentally instruments of enslavement and exploitation of labor, into simple tools of free and associated labor. But that is communism, the “unrealizable” communism! However, those individuals from the ruling classes who are intelligent enough to realize the impossibility of the current system continuing—and they are not few—have appointed themselves the troublesome and strident apostles of cooperative production. Now, if cooperative production is to be anything more than a sham and a deception; if it is to replace the capitalist system; if united cooperative societies are to regulate national production according to a common plan, taking it under their control and putting an end to the constant anarchy and periodic upheavals, the consequences inevitable consequences of capitalist production, what then will that be, gentlemen, other than communism, “realizable” communism?”, Marx, The Civil War in France , 1871.
    • (There were criticisms of the community of goods since Antiquity; see for example Aristotle, Politics , 1263a, https://www.um.es/noesis/archivo/2023/Arist,Pol.pdf )

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Marx and Engels. Characteristics of socialism. Distribution and valuation

  • Distribution criteria:
    • Marx defends "to each according to their needs" as the criterion for distribution, although he acknowledges that in an intermediate stage it may be necessary to partially apply "to each according to their work." He criticizes the Gotha Programme of 1875. This seems a correct and quite progressive position for his time.
    • But there are also ambiguous positions related to the practical implementation of this principle:
      • On the one hand, the “foolishness of the utopia of work bonds” is criticized; Engels' preface to The Poverty of Philosophy , 1847.
      • On the other hand, they refer to labor “allotments”: “Money capital ceases to exist in socialized production. Society distributes labor power and means of production among the various branches of activity. Producers may, for example, receive paper allotments, and in exchange for them withdraw from the social reserves of consumption an amount corresponding to their labor time. These allotments are not money. They do not circulate.” Capital II.
      • The difference is not clear. Perhaps the "assigned" ones are a reference to "to each according to their work" which would have to be used partially in an intermediate phase.
  • Assessment in a socialist system:
    • They criticize the use of labor values as values of socialism, as Proudhon or Rodbertus advocated , because that would mean reproducing the allocation of resources in a capitalist system. From today's perspective, this is a correct and very insightful position.
      • “To want to abolish the capitalist mode of production by the procedure of restoring 'true value' is […] to want to found a society in which the producers will finally dominate their products, by the consistent realization of an economic category that is the most complete expression of the subjection of the producers to the product,” Engels, Anti- Dühring , 1878.
      • See also a more extensive discussion of Proudhon in The Poverty of Philosophy .
    • They do not provide a detailed assessment of socialism, although some references can be found:
      • “The plan will ultimately be determined by comparing the useful effects of the various objects of use with each other and with the quantities of labor necessary for their production. People do all this very simply at home, without needing to introduce the famous 'value',” Engels, Anti- Dühring .
      • It appears that Engels suggests a “subjective” valuation (“the useful effects of the various objects of use”) in contrast to objective costs (“the amounts of labor necessary for their production”). This “subjectivist” view of socialism also seems correct from a contemporary perspective.
    • But there are also ambiguous texts, difficult to interpret. Perhaps they reject private exchanges, or the valuation of work as a value system.
      • “Within a collectivist society, based on the common ownership of the means of production, the producers do not exchange their products; the labor invested in the products does not appear here, either, as the value of these products as a material quality possessed by them, for here, in contrast to what happens in capitalist society, individual labors no longer form an integral part of the common labor by way of a detour, but directly.” Critique of the Gotha Programme , 1875.

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Real socialisms

  • Russia-USSR
    • 1918-1921, War Communism (attempt at planned communism)
    • 1921-1929, New Economic Policy, NEP (state capitalism)
    • 1929-1991, Five-Year Plans (Administrative Economics)
      • 1953-1991, Reform Policies: Khrushchev , Kosygin , Gorbachev
  • Other models

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Important. The failure of real socialism. Russia-USSR

  • There are two clearly distinct moments.
  • The failure of War Communism (1918-1921).
    • It was the only attempt to implement the ideas of the Bolsheviks ( Bukharin and Lenin), who sought to replace the market with a completely centralized, pre-planned system.
      • That total centralization is not found in Marx's work.
    • It was a tremendous failure, with the collapse of the economy and several million deaths from hunger.
    • In response to rebellions by workers and especially peasants, Lenin implemented the NEP (1921-1929), a “state capitalism” in his words.
      • Bukharin : “Enrich yourselves.”
  • The failure of the five-year plans (1929-1991).
    • It was an administrative economy, geared towards heavy industry and armaments. The aim was not to replace the market through central planning, but rather to modify resource allocation by setting prices and consumption and production quotas from the state.
      • This administrative economy is also not found in Marx's work.
    • It was a system more similar to the "war economies" of England and Germany in World War I, with the exception of differences such as nationalization. It also had parallels in Göring's Four-Year Plan, or in the war economies of England and the US during World War II.
    • Its initial implementation under Stalin was genocidal, but under Stalin's successors it did not have that character.
    • “War economies” are effective at directing resources toward arms production, which is why they were implemented in capitalist countries during World Wars I and II. However, they are highly inefficient in other respects (for example, because state-set prices do not accurately reflect real shortages), and therefore they were abandoned in those countries after the wars ended.
    • Faced with the inefficiency of the system, Soviet leaders after Stalin tried to introduce reforms and market mechanisms, with very little success.
      • Reforms by Khrushchev , Kosygin , and Gorbachev. There were also attempts at reform in the "satellite" countries.
    • Resistance and the difficulty of reforming the system led to its collapse.
      • It has been said that revolutions arise where essential reforms encounter insurmountable obstacles. This seems to be true of the French Revolution of 1789 and also of the fall of the Berlin Wall.

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Important. The failure of real socialism. Other cases

  • China is a special case, less interesting than the USSR.
    • Mao provoked a whole series of absurd and senseless tragedies, such as the Great Leap Forward (1959-1961) or the Cultural Revolution (1966-1976).
    • After Mao, Deng Xiaoping implemented "socialism with Chinese characteristics" (1978-), which is a kind of NEP, although not on the same scale.
      • Deng: “To get rich is glorious.”
    • The Soviet and Chinese NEPs were indeed successful in terms of economic growth, but they were capitalist systems.
  • Yugoslavia is also a separate case, but a more interesting one.
    • It used markets as a means of coordination among cooperative enterprises, with some degree of self-management. It achieved greater improvements in living conditions and higher growth than the USSR or Mao, though not without difficulties such as unemployment and debt. Some regions (Slovenia) reached the GDP per capita of Japan or the United Kingdom, but others (Bosnia) were very poor.
    • It went into crisis after Tito's death, and disappeared due to the ethnic conflicts of the 90s.
  • The Prague Spring could have been a viable alternative, but it was crushed by Soviet tanks.
    • Perestroika can be understood as a second attempt at the Prague Spring.
    • These systems might have evolved into something more like Yugoslavia or a kind of advanced social democracy.
  • Anarchism in Spain and Ukraine was also crushed by communist armies.
    • It is doubtful that these systems could be a viable alternative in their pure form. Using the market without modifications inevitably leads to competition among the commune-cooperatives, and with it, the maximization of profit. Unrestricted anarchist systems would have increasing inequalities, cycles, imbalances, and dehumanization; they would end up behaving like capitalisms without capitalists.

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“War communism”

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Ideas of the Bolsheviks �before War Communism

  • Some authors, Bukharin and Lenin for example, believed they could "complete" Marx's imprecise ideas. They generally did so in opposition to capitalism; if one thing happened under capitalism, then another should happen under socialism.
    • Where Marx was prudent and referred to the need for a contrast with reality, in Bukharin and Lenin there was “boldness” and imagination.
    • They had no basis in reality, and in fact both authors had little or no serious training or knowledge of economics. Bukharin had studied it somewhat, but only superficially. Lenin often echoed Bukharin 's economic positions.
    • Lenin treated Marx as if he were a prophet, as if to discover the truth one had to study not the facts but Marx's texts. "Research" consisted of delving into Marx's works. The presentation of this "research" consisted of lists of short quotations from Marx, often taken out of context and twisted to fit political positions completely contrary to those defended by Marx himself. For Lenin, Marxism was true because it was certain, all-powerful because it was accurate. Marx had spoken the truth, the whole truth, and Lenin was his true interpreter.
  • Bukharin :
    • Nikolaĭ Bukharin and Yevgeny Preobrazhensky , The ABC of Communism , 1919, https://fundacionfedericoengels.net/images/PDF/abc-comunismo-bujarin.pdf
    • A large and solid workers' cooperative. No market, no value, no money, a pre-established general production plan. Precise accounting. Multifaceted culture. Initially, to each according to their work; in developed communism, free access.
  • Lenin:
  • These incredibly naive and utopian, almost delusional ideas, despite not being found in Marx and despite having been abandoned later by their real authors, have sometimes been attributed to Marx himself.
  • Most socialist and Marxist authors defended completely opposite positions.
    • For example, Kautsky defended the need to use money in socialism.

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Ideas of the Bolsheviks �before War Communism

Bukharin and Preobrazhensky : ABC of Communism , 1919

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Ideas of the Bolsheviks �before War Communism

Lenin, Vladimir Ilyich Ulyanov (1870-1924) �The State and Revolution , 1918, https://archive.org/details/obras-completas-lenin-tomo33/page/102/mode/2up?view=theater

?

?

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“War communism”

  • Policy:
    • Attempt at centralized planning and abolition of the market. Nationalization of all industries.
      • Creation of the Higher Council of Economy, Vesenjá (VSNJ), December 1917.
    • Prodrazvyorstka , mass requisitions from peasants as a way to feed the cities and the army.
    • Rationing.
    • Hyperinflation as a policy.
      • Mass printing of money as a form of financing and as a way to eliminate monetary wealth, aimed at the abolition of money (“money machine gun”).
    • Mandatory work, prohibition of strikes.
      • "He who does not work, neither shall he eat."
  • Consequences:
    • In theory, central planning. In practice, complete chaos and total disorganization.
    • The absence of a rational economic mechanism, aggravated by the civil war, caused an unprecedented disaster.
    • Massive collapse of all production. Several million deaths from starvation.
      • Trotsky: “The ruin of the productive forces surpasses anything known in history.”
    • Leaving cities for the countryside as a form of survival.
      • Moscow lost half its population; Petrograd three-quarters.
    • Black markets prevented the situation from being even worse.
      • Much of the food that reached the cities came through these black markets.
      • Bartering emerged in response to the devaluation of money.
    • Peasants rose up across the country.
  • Although it was later claimed that it was a policy determined by the civil war situation, in reality many of its policies were implemented before the war began.
    • For Bukharin, this was the way to achieve communism: “We conceive of war communism as universal, so to speak a 'normal' form of the economic policy of the victorious proletariat, and not as something related to war, that is, in accordance with a state defined by civil war,” https://es.wikipedia.org/wiki/Comunismo_de_guerra
  • Kronstad rebellion was the trigger for the abandonment of War Communism.

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“War communism”

Trotsky, The Revolution Betrayed , https://www.marxists.org/espanol/trotsky/1936/rt/index.htm

“The first three years following the revolution were marked by open and brutal civil war. Economic life was completely subordinated to the needs of the front. In the face of extreme resource scarcity, cultural life, characterized by the bold breadth of thought, especially that of Lenin, was relegated to the background. This is what is known as the period of War Communism (1918-1921), a heroic parallel to the War Socialism of capitalist countries. The economic objectives of the Soviet government were primarily limited to sustaining the war industries and utilizing the meager existing reserves to combat the war and save urban populations from starvation. War Communism was, in essence, a regulation of consumption in a besieged fortress.”

It must be acknowledged, however, that their initial intentions were broader. The Soviet government attempted to achieve a planned economy through regulation, both in terms of consumption and production. In other words, it envisioned a gradual, unmodified transition from the system of war communism to true communism. The Bolshevik Party program adopted in 1919 stated: "In the area of distribution, the power of the Soviets will persevere inflexibly replacing trade with a nationally organized distribution of products, based on a comprehensive plan."

But the conflict between reality and the program of war communism became increasingly apparent: production steadily declined, not only due to the disastrous consequences of the hostilities, but also to the disappearance of the incentive of individual self-interest among producers. The city demanded wheat and raw materials from the countryside, giving nothing in return but pieces of multicolored paper called money, a practice long ingrained in the culture. The peasant buried his reserves, and the government sent detachments of armed workers to seize the grain. The peasant sowed less. Industrial production in 1921, the year following the end of the civil war, rose, at best, to one-fifth of what it had been before the war. Steel production fell from 4.2 million tons to 183,000, a decrease of 23 times. The global harvest fell from 801 million quintals to 503 million in 1922. A terrible famine ensued. Foreign trade collapsed from 2.9 billion rubles to 30 million. The ruin of the productive forces surpasses anything known in history. The country, and with it, the power structure, found itself on the brink of collapse.

The utopian hopes of war communism were subsequently subjected to extremely severe and, in many respects, justified criticism.

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“War Communism”: �Kropotkin ’s Letters to Lenin

Bolshevik propaganda poster: �Remember the hungry!

https://commons.wikimedia.org/wiki/File:The_Soviet_placard.jpg

Hyperinflation. 250 million ruble banknote, 1924 https://en.wikipedia.org/wiki/Hyperinflation_in_early_Soviet_Russia

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The New Economic Policy, NEP

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The New Economic Policy, NEP

  • The rebellions of peasants and workers, especially the one in Kronstadt, determined the change in policy.
    • Kronstadt was taken by the Red Army on March 18, 1921; on March 21, Lenin imposed the NEP.
    • The party viewed this new policy as a renunciation of socialism. Lenin called it “state capitalism.”
  • Policies:
    • Restoration of the market, of exchanges.
      • Bukharin : “Enrich yourselves”
    • The requisitioning of goods from the peasants was replaced by a tax, in kind until 1924, and in cash afterwards.
    • Private property:
      • Private companies with fewer than 20 employees; later also companies with more employees.
      • Companies with more employees are leased, sometimes from the former owners.
    • salaried work.
    • Currency renewal and stabilization:
      • 1 chervonet = 7.74 grams of pure gold.
    • Establishment of concessions to foreign capital.
      • For example, the Russian -American Industrial Corporation .
  • Consequences:
    • Economic growth:
      • Restoration of industry and agriculture.
      • Very significant reduction in hunger.
    • Inequality:
      • Nepmen or NEP men; nouveau riche.
      • Kulaks, wealthy peasants,
    • Arrest.

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Ideas of the Bolsheviks �after War Communism. The NEP.

Trotsky, The Revolution Betrayed , https://www.marxists.org/espanol/trotsky/1936/rt/index.htm

“Lenin argued for the need to restore the market to ensure the survival of millions of isolated peasant farms accustomed to defining their relationships with the outside world through trade. The circulation of goods should serve as the link between the peasants and nationalized industry. The theoretical formula for this link is very simple: industry will provide the countryside with the necessary goods at prices that allow the state to forgo requisitioning agricultural products.”

The reform of economic relations with the countryside was undoubtedly the most urgent and thorniest task of the NEP. Experience quickly demonstrated that industry itself, even when socialized, needed monetary calculation methods developed by capitalism. The plan could not rely solely on intellectual data. The interplay of supply and demand remained, and will continue to be for a long time, the indispensable material basis and the saving grace.

The legalized market began its work with the help of a reorganized monetary system. From 1923 onward, thanks to the initial impetus from the countryside, industry was revived and quickly demonstrated intense activity. Suffice it to say that production doubled in 1922 and 1923 and reached its pre-war level in 1926, meaning it had increased fivefold since 1921. Harvests increased in parallel, but much more modestly.

[…]

“Small-scale commodity production inevitably creates exploiters. As agriculture recovered, differentiation increased within the peasant masses; the old path of easy development was followed. The kulak—the wealthy peasant—grew richer more rapidly than agriculture progressed. The government's policy, whose slogan was 'Towards the countryside,' was in reality oriented towards the kulaks. The agricultural tax was much heavier for poor peasants than for wealthy ones, who, moreover, benefited from state credit. Surplus wheat, generally owned by wealthy peasants, served to enslave the poor and was sold at speculative prices to the urban petty bourgeoisie. Bukharin , theorist at that time of the ruling faction, directed his famous slogan to the peasants: ' Get rich !' This meant, in theory, the gradual assimilation of the kulaks into socialism. In practice, it meant the enrichment of the minority at the expense of the masses.” the vast majority.

The government, trapped by its own policies, was forced to retreat step by step before the rural petty bourgeoisie. The use of wage labor in agriculture and the renting of land were legalized in 1925. The peasantry became polarized between the small capitalist and the day laborer. Meanwhile, the state, deprived of industrial goods, was eliminated from the rural market. As if sprung from the earth, an intermediary emerged between the kulak and the small artisan master. Even the state-owned enterprises had to resort, with increasing frequency, to traders for raw materials. The rising tide of capitalism was evident everywhere. Anyone who reflected on the matter could easily be convinced that the transformation of the forms of property ownership, far from solving the problem of socialism, only served to raise it.

[…]

“Of course, the ruling faction never repudiated the collectivization of agriculture 'in principle,' but it assigned it a timeframe of decades. The future People's Commissar for Agriculture, Yakovlev , wrote in 1927 that if the socialist transformation of the countryside could only be carried out through collectivization, 'it will not, of course, be in one, two, or three years, and probably not even in ten...' 'The kolkhozes (collective farms) and the communes,' he wrote later, 'certainly are, and will not be for a long time, anything more than islands in the middle of the plots'... Indeed, at that time only 0.8% of farming families were part of collective farms.”

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Optional. Bolshevik ideas �after War Communism. The NEP

Lenin. “ Five Years of the Russian Revolution and Prospects for the World Revolution . ” Collected Works , Volume 45, https://www.marxists.org/espanol/lenin/obras/1922/noviembre/13.htm

“Having emphasized that as early as 1918 we considered state capitalism as a possible line of retreat, I will now analyze the results of our new economic policy. I repeat: at that time it was still a very vague idea; but in 1921, after having overcome the most important stage of the civil war, and having overcome it victoriously, we were faced with a major internal political crisis—I suppose the greatest—in Soviet Russia. This internal crisis laid bare the discontent not only of a considerable portion of the peasantry, but also of the workers. It was the first time, and I trust it will be the last in the history of Soviet Russia, that large masses of peasants were against us, not consciously, but instinctively, due to their state of mind. What was the cause of this unprecedented and, of course, unpleasant situation for us? The cause was that we had advanced too far in our economic offensive, that we had not secured a sufficient base, that the masses felt what we were not yet able to articulate at that time.” consciously, but very soon, a few weeks later, we recognized that the direct step to purely socialist forms, to purely socialist distribution, was beyond our capabilities, and that if we were not in a position to scale back and limit ourselves to easier tasks, bankruptcy would threaten us. The crisis began, in my opinion, in February 1921. By the spring of that same year, we had unanimously decided—on this matter I observed no major disagreements among us—to move to the new economic policy. Today, after a year and a half, at the end of 1922, we are already in a position to make some comparisons […]

The data cited prove that since last year, when we began implementing our new economic policy, we have already learned to move forward, […] The most important thing, however, is trade, the movement of goods, which is essential for us. […] Practice shows that, in this area, we have achieved decisive results: we have begun to move our economy toward stabilizing the ruble, which is of extraordinary importance for trade, for the free movement of goods, for farmers, and for the vast number of small producers.

[---] In 1921, the discontent of a vast part of the peasantry was undeniable. Moreover, famine broke out. And this represented the most severe ordeal for the peasants. And it is quite natural that everyone abroad began to shout: “There you have the results of socialist economics!” It is quite natural, of course, that they remained silent about the fact that famine was, in reality, a monstrous consequence of the civil war. All the landowners and capitalists, who descended upon us in 1918, presented things as if famine were a consequence of socialist economics. Famine has indeed been an immense and grave calamity, a calamity that threatened to destroy all our organizing and revolutionary work.

And I ask now: after this unprecedented and unexpected calamity, how are things today, after the implementation of the new economic policy, after granting the peasants freedom of trade? The answer, clear and evident to all, is this: in one year, the peasants have overcome hunger and, moreover, have paid the tax in kind in such a quantity that we have already received hundreds of millions of puds , and almost without applying any coercive measures. The peasant uprisings, which before 1921 were, so to speak, a general phenomenon in Russia, have almost completely disappeared. […]

[…] light industry is undoubtedly on the rise, and the improvement in the situation of the workers in Petrograd and Moscow is undeniable. In the spring of 1921, discontent reigned among the workers in both cities. Today, this is entirely absent. We, who observe the situation and the mood of the workers on a daily basis, are not mistaken in this regard.

[…] The truth is that our heavy industry is still in a very difficult situation. But I suppose the decisive factor is that we are now in a position to save something. And so we will continue to do so. Although this is often done at the expense of the population, today we must, despite everything, economize. We are now focused on reducing the state budget, on reducing the size of the civil service. I will say a few words about our civil service later. In any case, we must reduce it; we must economize as much as possible. We economize on everything, even schools. And this must be so, because we know that without saving heavy industry, without restoring it, we will not be able to build any kind of industry, and without it we will perish completely as an independent country. We know this perfectly well.

[---] The most important thing for us was to prepare the socialist economy in economic terms. We were unable to prepare it directly and were forced to do so indirectly. State capitalism, as we have implemented it in our country, is a peculiar form of state capitalism. It does not correspond to the usual concept of state capitalism. We hold all the positions of power; we hold the land, which belongs to the state. This is very important, although our enemies present it as if it were insignificant. This is not true. The fact that the land belongs to the state is of extraordinary importance and, moreover, of great practical economic significance. We have achieved this, and I must state that all our subsequent activity must be carried out only within this framework. We have already succeeded in making our peasants satisfied and in revitalizing industry and commerce. I said earlier that our state capitalism differs from state capitalism, understood literally, in that the proletarian state holds not only the land but also the most important branches of industry. First of all, we have only leased out a certain portion of small and medium-sized industry; everything else remains in our hands. Regarding commerce, I want to emphasize that we are trying to create, and are already creating, mixed companies—that is, companies in which part of the capital belongs to private capitalists (foreigners, of course) and the other part belongs to us. First, in this way we learn how to trade, which we need, and second, we always have the option of closing these companies if we deem it necessary. So, so to speak, we risk nothing. Instead, we learn from private capitalists and observe how we can improve and what mistakes we make.

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Optional. Ideas of the Bolsheviks �after War Communism

Trotsky, The Soviet Economy in Danger , https://ceip.org.ar/La-economia-sovietica-en-peligro

“The conditions and methods of a planned economy

Which organizations are responsible for developing and implementing the plan? What methods will be used to monitor and regulate it? What conditions are necessary for it to succeed?

In this regard, three systems must be briefly analyzed: 1) the special state departments, that is, the hierarchical system of central and local planning commissions; 2) trade, as a system of market regulation; 3) Soviet democracy, as a system of real regulation by the masses of the structure of the economy.

If a universal mind existed, like the one projected in Laplace's scientific fantasy—a mind capable of simultaneously registering all the processes of nature and society, measuring the dynamics of their movement, and predicting the results of their reciprocal reactions—it could, of course, devise a perfect and exhaustive economic plan a priori, starting with the number of acres of wheat and ending with the last button on waistcoats. The bureaucracy often imagines it has such a mind at its disposal; that is why it so readily dispenses with market control and Soviet democracy. But in reality, the bureaucracy makes terrible errors in assessing its intellectual resources. In practice, it is necessarily forced to rely on the proportions (and, just as fairly, one might say, the disproportions) it inherited from capitalist Russia, on the data of the economic structure of contemporary capitalist nations, and finally on the successes and failures of the Soviet economy itself. But even the most accurate combination of all these elements will not yield anything more than an imperfect scheme.

The countless actors in the economy—state and private, collective and individual—will not only assert their needs and relative power through the statistical determinations of the plan but also through the direct pressure of supply and demand. The market controls and, to a considerable extent, implements the plan. Market regulation must depend on the trends that emerge from its very mechanism. Departmental drafts must demonstrate their economic effectiveness through commercial calculations. A transitional economic system is inconceivable without control of the ruble. This, in turn, presupposes a stable ruble. Without a firm monetary unit, commercial accounting can only exacerbate the chaos.

Lenin's writings from 1921 onwards are very interesting in this regard. For example:

On the Tax in Kind (Significance of the New Policy and its Conditions), Volume 43, pages 204 ff.; �Draft Resolution on Questions of the New Economic Policy , Volume 43, pages 340 ff.; �The New Economic Policy and the Tasks of the Committees of Political Instruction , Volume 44, pages 162 ff. �Report on the New Economic Policy , Volume 44, pages 200 ff. �Interview with A. Ransome , Correspondent for “ The Manchester Guardian” , Volume 45, page 275 ff. �Five Years of the Russian Revolution and Prospects for the World Revolution , Volume 45, page 295 ff.

Lenin, Collected Works , especially volumes 43, 44, and 45, �https://archive.org/search?query=Lenin+Complete+Works+Progresshttps://www.marxists.org/espanol/lenin/obras/oc/progreso/index.htm

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The five-year plans

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Optional. Collectivization

  • The trigger for agricultural collectivization was the reduction in state grain collection beginning in 1928. The causes were debated: a poor harvest, hoarding, or a low price paid by the state. The state's response was to requisition part of the grain production. As a result, production fell even further.
  • It also had other causes: the conviction of an inevitable war, the difficulty of obtaining resources for industrialization, or the danger that the wealthy classes that emerged with the NEP posed to the Bolsheviks.
  • Policy:
    • With collectivization, Stalin (1878-1953) hoped to increase agricultural production and the amount collected by the state.
      • It was assumed that if small family farms were replaced by large collective farms, on a large scale, much greater production would be obtained, for example, thanks to mechanization.
    • Its objective was to obtain resources from agriculture to finance accelerated industrial development. This development was considered essential to survive a war.
    • Small farms were eliminated and peasants were distributed into kolkhozes (cooperatives, nominally) and sovkhozes (state farms).
    • Private ownership of land, livestock, and farming implements disappeared.
  • Results:
    • Agricultural production fell significantly.
    • The farmers sometimes ate their livestock rather than hand them over. The livestock population decreased.
    • Hunger was widespread in all regions, but in some, such as Ukraine, it was particularly severe.
    • The kulaks were blamed for the disaster; mass deportations took place.
    • While the population starved, the state exported grain in order to finance industrialization.
    • Given the inefficiency of agriculture, policy was subsequently modified. By 1980, 3% of the land had been allocated to farmers so they could produce and sell whatever they wished privately; a quarter of all agricultural production came from this 3% of the land. http://www.country-data.com/cgi-bin/query/r-12746.html

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Optional. Five-year plans

  • Administrative economics:
    • The five-year plans were not intended to replace the market, as War Communism had done, but rather to guide production by setting prices and production and consumption quotas from the state. It was an administrative economy, with businesses and a market, but controlled by the state.
      • It was a system more similar to the "war economies" of England and Germany in World War I, with the exception of differences such as nationalization. It also had parallels in Göring's Four-Year Plan, or in the war economies of England and the US during World War II.
    • Production was geared towards heavy industry and armaments, with a very high rate of investment at the expense of reduced consumption.
    • Its initial implementation under Stalin was genocidal, but under Stalin's successors it did not have that character. From Khrushchev onward, more attention was paid to people's consumption, and even an incipient welfare state was implemented.
    • “War economies” are effective at directing resources toward arms production, which is why they were implemented in capitalist countries during World Wars I and II. However, they are highly inefficient in other respects (for example, because state-set prices do not accurately reflect real shortages), and therefore they were abandoned in those countries after the wars ended.
  • Economic mechanism:
    • The mechanism changed over time; here we will only give a general and schematic overview.
    • The companies were supposed to report to the center (the Gosplan ) and the center was supposed to coordinate the companies.
    • There was an information problem. Companies tended to lie to Gosplan .
      • Saying that they needed more resources than they actually needed, in order to guarantee them (and be able to negotiate with other companies);
      • They claimed they could produce far less than they actually could, so that they would be given easy-to-meet production targets.
    • Gosplan could not effectively coordinate the different productions .
      • Attempts were made to align production with consumption, but frequently the targets set for companies did not correspond to actual needs. Often, planning was limited to instructing companies to replicate past practices with a given growth rate.
      • Prices and production and consumption quotas were frequently set arbitrarily. The normal supply and demand mechanism did not operate. Official prices did not depend on shortages, but on political and bureaucratic struggles.
        • In Poland, bread was subsidized and cost less than wheat. As a result, farmers fed bread to pigs instead of wheat.
        • Sometimes Gosplan used black market prices as a reference, as well as prices from capitalist countries.
    • Companies tended to nominally meet the objectives dictated by Gosplan , disregarding the quality and necessity of the products:
      • If the goal was to produce a large quantity of nails, measured by their weight, the tendency was to produce very large nails. If the goal was to produce a large number of nails, the tendency was to produce very small nails. Very often, actual sizes and needs were not taken into account.
      • Companies lacked initiative and were expected (in theory) to follow the guidelines established by Gosplan . There was a set of indicators to monitor, often hundreds for a single company, and these indicators were frequently contradictory. Profitability criteria were not followed.
      • Production tended to be inefficient, and unproductive companies did not go bankrupt; consumption of certain raw materials was far higher than in Western companies. Businesses were reluctant to adopt new technologies, and it was common for production to be carried out using outdated techniques.
      • There was also an incentive problem with the workers, whose wages often did not correspond to the quality of the work.
    • The scarcity or abundance of goods in stores did not determine the prices of consumer goods, nor was production geared towards meeting needs. Many goods were rationed; there were shortages and long lines.
    • Gosplan 's control between companies, with "fixers" obtaining supplies for them that Gosplan hadn't allocated. There was also a black market among individuals. With these black markets and the economic dependence on political and bureaucratic decisions, widespread corruption arose.
    • The mechanism became increasingly inefficient as the economy became more complex.

- Who needs a nail like this?

- Not at all! The main thing is that we immediately implemented the plan for the nails...

https://ca.wikipedia.org/wiki/Krokodil

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“Balance of the first five-year plan”, 1933, Works , vol. XIII, p. 85.

“Report to the XVII Congress of the Party …”, 1934, Works , vol. XIII, p. 132.

“The tasks of the leaders of the economy”, 1931, Works , vol. XIII, p. 16.

Optional. Stalin: Five-Year Plans and Trade

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Oskar Lange, The Principles of Soviet Economics , 1944, https://www.jstor.org/stable/20854636

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The five-year plans

Leontief , “ The decline and rise of Soviet economic science”, 1960, https://www.jstor.org/stable/20029416

Also in Essays on Economics , vol. I, page 223 et seq., https://www.dropbox.com/sh/pes5eth6td20cyo/AABXzCASszMFV0Eg5UF1Xkv8a/Leontief?e=1

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Optional. The Great Terror

Stalin, Works , Volume XIV, “History of the Communist (Bolshevik) Party of the USSR” https://www.marxists.org/espanol/tematica/histsov/pcr-b/index.htm

“The year 1937 brought new information about the monsters of the Bukharinist -Trotskyist gangs. The trial against Pyatakov , Radek and others, the trial against Tukhachevsky, Yakir and others, and, finally, the trial against Bukharin , Rykov , Krestinski , Rosengoltz and the other defendants, made it clear that the Bukharinists and the Trotskyists had long been a common gang of enemies of the people, in the form of a 'right-wing-Trotskyist bloc'.”

The aforementioned trials highlighted that these dregs of humanity, in conjunction with the enemies of the people—Trotsky, Zinoviev, and Kamenev —were already conspiring against Lenin, the Party, and the Soviet state from the very first days of the October Socialist Revolution. The acts of provocation aimed at breaking the Treaty of Brest- Litovsk in early 1918; the plot against Lenin and the conspiracy with the Left Socialist-Revolutionaries to arrest and assassinate Lenin, Stalin, and Sverdlov in the spring of 1918; the criminal assassination attempt against Lenin, from which he emerged wounded, in the summer of 1918; the uprising of the Left Socialist-Revolutionaries in the summer of the same year; the deliberate exacerbation of internal divisions within the Party in 1921, with the aim of undermining and overthrowing Lenin's leadership from within; The attempts to overthrow the Party leadership during Lenin's illness and after his death; the betrayal of state secrets and the provision of espionage reports to foreign intelligence services; the infamous assassination of Kirov ; acts of sabotage and diversionism , explosions; the infamous murders of Menzhinski , Kuibyshev , and Gorki: these and similar crimes were perpetrated over the course of twenty years with the involvement or under the direction of Trotsky, Zinoviev , Kamenev , Bukharin , Rykov , and their satellites, obeying orders from the foreign bourgeois intelligence services.

The aforementioned trials made it clear that the Trotskyist- Bukharinist monsters , in carrying out the orders of their masters, the foreign bourgeoisie's intelligence services, aimed to destroy the Soviet Party and State, undermine the country's defense, facilitate foreign armed intervention, prepare the defeat of the Red Army and the dismemberment of the USSR, handing over the Soviet Maritime Province to the Japanese, Soviet Belarus to the Poles, and Soviet Ukraine to the Germans, destroying the gains of the workers and collective bargainers , and restoring capitalist slavery in the USSR

These pygmy white guards, whose strength could only be compared to that of an insignificant mosquito, apparently believed themselves to be—it's laughable to say it!—the masters of the country and imagined that they could, in fact, dismember and sell Ukraine, Belarus and the Maritime Province to the highest bidder.

These counter-revolutionary mosquitoes forgot that the master of the land of the Soviets is the Soviet People and that Messrs. Rykov , Bukharin , Zinoviev and Kamenev were nothing more than mere temporary servants of the State, whom it could sweep out of its offices at any time, like useless garbage.

These insignificant lackeys of the fascists forgot that the Soviet People only had to lift a finger to make them disappear completely.

The Soviet Tribunal condemned the Bukharinist -Trotskyist monsters to be shot.

The People's Commissariat for Internal Affairs was responsible for carrying out the sentence.”

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Collectivization and five-year plans

  • Ekaterina Zhuravskaya , Sergei Guriev , Andrei Markevich , “New Russian Economic History ”, Journal of Economic Literature , https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3962960
  • Sergei Guriev on the main stereotypes about the Soviet economy , https://www.youtube.com/watch?v=dvoq68ponyE �(in Russian, but Spanish or Catalan subtitles can be enabled)

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De-Stalinization

Nikita Khrushchev (1894-1971), Secret Report to the 20th Congress of the CPSU , 1956, https://www.marxists.org/espanol/khrushchev/1956/febrero25.htm

Soviet Congress Criticises Stalin Aka Twentieth Congress Of The Communist Party (1956), https://youtu.be/d_zqeFOuaEU

The economy remained focused on the means of production and militarized, but from Khrushchev onwards there was greater attention to consumer goods and even an incipient welfare state.

Khrushchevkas " were built —very modest family apartments that greatly improved people's lives—in contrast to the communal houses under Lenin and Stalin where each family occupied a single room and had to share the kitchen and bathroom. Khrushchev believed that the USSR could surpass the US in living standards and that communism would thus demonstrate its superiority over capitalism ("We will bury them!").

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Five-year plans. �Reform policies

  • Khrushchev 1953-1964, Kosygin 1964-1980, Gorbachev 1985-1991
  • Kosygin
  • 1964 Reform. Kosygin , Liberman: Measures for market incorporation and decentralization. Profit as a criterion in companies, initiative of entrepreneurs.
  • Liberman: “It is essential [...] to build a system for planning and analyzing the work of companies so that they have a real interest in fulfilling the plan's goals to the fullest extent, by introducing new techniques and high-quality products: in short, by achieving maximum efficiency in production [...]. The proposed system will free central planning from its ludicrous oversight of companies, from costly attempts to influence production through administrative, rather than economic, measures. The company itself knows itself better than anyone else and can discover its potential [...]. Our profit—if we consider that prices accurately reflect the average production costs of a given branch of industry—is nothing more than the result of increased productivity of social labor embodied in capital. That is why we can—based on profitability —incentivize real efficiency in production. But, having said that, we must remember that incentive does not mean enrichment [...]. What benefits society and the state must become beneficial for every company and every worker in production.” https://biblioteca.clacso.edu.ar/Cuba/casa/20200419092123/El-Che-y-el-debate-economico.pdf
  • Alec Nove and Domenico Nuti (eds.), Economic Theory of Socialism , https://www.dropbox.com/sh/pes5eth6td20cyo/AABKMP7tJIy_UmXxC9NQNjqCa/Nove%20y%20Nuti
  • Morris Bornstein and Daniel Fusfeld (eds.) The Soviet economy; a book of readings , https://archive.org/details/sovieteconomy0000unse_n5b6/page/360

Mikhail Gorbachev (1931-2022)

Alexei Kosygin (1904-1980)

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Gorbachev: Perestroika was necessary

https://www.elperiodico.com/es/opinion/20070409/perestroika-necesaria-5440949

“A question asked sincerely deserves a sincere answer. Indirectly, the question constitutes a criticism of perestroika (restructuring) and of everything we did in our country, and throughout the world, during that period. I do not agree with that criticism.”

I began promoting perestroika in the mid-1980s as a policy of restructuring and reforming the economic, political, and social systems of the USSR. Such a shift was necessary in our country, primarily for internal reasons. We were living within a system whose basic structures had been established by Joseph Stalin. The lack of democracy and freedom stifled its future.

The thaw initiated by Nikita Khrushchev after the twentieth congress of the CPSU in 1956, and the economic reforms of his successor, Alexei Kosygin's proposals, introduced in 1965 and aimed at creating incentives for people to take initiative, were attempts to address the need for real change. But both programs were thwarted.

The Soviet Union's ruling class feared any innovation and, under the pretext of defending the advantages of socialism, stifled the country's development, blocking any reforms. However, by the mid-1980s, it became clear that pushing Soviet society down the Stalinist path was a dead end. The awareness that "we couldn't go on living like this" was widespread.

I now recall a conversation I had in March 1985 with Andrei Gromyko , Foreign Minister and Politburo member, on the eve of my election as General Secretary. I asked him if he believed it was necessary to promote far-reaching changes in the USSR. He replied that the changes "could no longer be postponed," and that both Soviet society and the socialist camp urgently needed them. I told him that we were all aware of how difficult everything was going to be, but we had to act. Change was long overdue. Gromyko replied that he completely agreed with me.

The person asking the question believes we should have preserved and strengthened the advantages of the Soviet system and corrected its shortcomings. That is precisely what we tried to do from the outset, by proposing that scientific and technological advances be used to accelerate the country's development. But the first two years of perestroika showed that the Stalinist economic and political mechanisms had become so rigid and rusty that any significant progress was impossible without changing them. The conservative nomenklatura, the party, and the government bureaucracy, who considered perestroika a passing phase, obstructed the reforms. Their argument might well have been this: "We survived Khrushchev and Kosygin ; we will survive Gorbachev too."

The force capable of breaking that resistance was the people. We had to give them an opportunity to participate in the process of change. For this reason, we took the radical step of implementing large-scale reform and general democratization. In essence, perestroika was a project of social democracy.

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The success of our plans was not complete. Reforming the USSR, with its enormous militarized economy and multiethnic population, presented a highly complex challenge. We made mistakes: sometimes by acting too late, other times by forcing the pace. The catastrophic collapse in oil prices—from $25 a barrel to as low as $10 a barrel in 1986—severely impacted the economic and social plans of perestroika.

In August 1991, the reactionary opponents of perestroika staged a coup. They deployed troops and isolated me in Crimea. They tried to turn back the clock to the pre-perestroika era . They were in a great hurry because a new Union Treaty was to be signed just a few days later.

The coup failed. Its organizers were arrested. However, it dealt a severe blow to perestroika: the Union Treaty was not signed, and my credibility and influence, as well as that of the new democratic institutions, were undermined. This paved the way for another group of perestroika opponents: the radical pseudo-democrats led by Russian President Boris Yeltsin. By destroying our union, they brought tragedy to millions of their citizens, who overnight became citizens of other states. The Yeltsin era was the negation of perestroika, not its continuation. It brought a decline in production and deep divisions in society, an immense gap between the wealth of the few and widespread poverty.

The lesson we must learn from the 20th century is that people have rejected both Stalinist socialism, devoid of democracy and freedom, and the unfettered capitalism of the Yeltsin years. Nevertheless, the main benefits of perestroika—democratic freedoms and economic and political pluralism—have been safeguarded. Russia is now forging its path toward a free and just society.

Perestroika also deserves credit for paving the way for the end of the Cold War. Many nations were given the opportunity to freely choose their future. We buried in the past the danger of nuclear holocaust, which would have rendered any dialogue about alternative ways of developing society pointless.

I agree with the reader who asks about the rejection of a unipolar world. But I feel no nostalgia for confrontation, and even less for a world divided into hostile factions. If we take a look at the world today, it is clear that it does not have—nor can it be—a single pole. Attempts to create a new empire have failed. Although reluctantly, even the United States must recognize that unilateral policies of force do not work.

I am convinced that policies based on this new way of thinking, which helped end the Cold War, will ultimately prevail. Both the conservative right and the left—committed to socialist priorities—should reflect on the lessons of the 20th century. The right must finally realize that policies that further widen the gap between rich and poor are a recipe for a disastrous social explosion, the first signs of which are already visible in various parts of the world. As for the left, it must learn to resist the temptations of authoritarianism, which discredits any socialist idea, and abandon the illusion of state omnipotence. The alternative it proposes must be democratic.

I trust that this 21st century will be a century of democratic rivalry between approaches that will compete for the development of society. Perestroika, which sought greater freedom and justice, and a dignified life for all, offered a genuine alternative. It is still valid. I am convinced that the future will prove it.

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Real socialisms. Other models

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Real socialisms. Other models

  • Reform policies.
    • Dubček , the Prague Spring, socialism with a human face.
  • China
    • Mao Zedong (1893-1976):
    • Deng Xiaoping (1904-1997):
      • “Socialism with Chinese characteristics” (1978-). Deng: “to get rich is glorious.”
      • Welcome to China. Goodbye Mao , https://youtu.be/66UfWJdujcQ?t=13 ( China after Deng's reforms).
  • Other models
    • Yugoslavia.
    • Anarchisms.
    • Communes, cooperatives, kibbutzim.

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Optional. Cooperatives, communes, kibbutzim

  • A major advantage of cooperatives is that workers can gain some control over production, thereby becoming more involved in it. They also receive a share of the profits. In this way, they mitigate, to some extent, the alienation so common in capitalist enterprises, where workers often feel they are merely obeying orders and being exploited.
  • A major drawback of cooperatives or communes operating within a capitalist system is that market competition compels them to maximize profits, making it very difficult to allocate resources to other purposes, such as addressing people's needs. Cooperatives in the market must behave like businesses to survive. Even assuming a cooperative market were possible, it would be a variant of anarchism: both would ultimately lead to a capitalism without capitalists.
  • Socialism, in order to meet needs, cannot be based on an unrestricted market, as anarchism advocated . A socialist system with a market is possible, but it must be regulated to at least mitigate the problems inherent in capitalism (lack of focus on global objectives, inefficiency, instability, inequality, dehumanization). It would be necessary to introduce mechanisms that allow for circumventing the tendency toward profit maximization through competition (such as welfare states or internal limitations on cooperatives or communes themselves).
  • Examples:

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Optional. Yugoslavia

  • They maintained their independence from the USSR by liberating themselves from the Nazis under the command of Josip Broz "Tito" (1892-1980). Politically, it began as a strong dictatorship, but evolved into a more moderate system than other countries of real socialism.
  • After an initial stage with collectivization and five-year plans, from 1950 onwards, with Edvard Kardelj (1910-1979) and Milovan Đilas (1911-1995; sometimes transcribed as Djilas ), a system of cooperatives based on self-management and linked to the market was developed.
  • It was economically successful, in terms of improving the standard of living and growth (rates of 6% annually from 1952 to 1980, higher than other real socialisms or the countries of Western Europe).
  • Companies could be formed with up to five employees. Larger companies were state-owned, but the workers controlled the investment and profit sharing.
  • Self-management was only partial, and had a strong bureaucratic component.
  • Cooperatives were very reluctant to incorporate new members, because then they had to divide among more people; as a consequence, high unemployment developed.
  • They had a welfare state and redistribution measures, but there was significant corruption and inequality. Some regions (Slovenia) reached the GDP per capita of Japan or the United Kingdom, but others (Bosnia) were very poor.
  • It adopted a foreign policy of independence from the two blocs, the "Non-Aligned Movement." It received many foreign loans, partly due to this international policy, but these led to heavy indebtedness.
  • Unlike other “Eastern countries”, one could freely enter and leave the country:
    • In fact, nearly a million Yugoslavs worked in Western Europe; their remittances were an important part of the country's wealth. There was also a strong tourism industry.
  • It went into crisis after Tito's death, and disappeared with the ethnic struggles of the 90s.

Dilas and Tito

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Optional. The Prague Spring

  • In several European countries within the Soviet sphere of influence, economic reforms were attempted, as they were in the USSR itself, due to the inefficiency of Stalinist administrative economics. However, these reforms almost never addressed the political sphere. But it was clear that reforms were also essential in this area, given the dictatorship of a single party or its leadership. The countries of real socialism were not only not socialist economically, but they were not socialist politically either.
  • The most interesting example of political and economic reforms took place in Czechoslovakia in 1968, but it lasted only a few months.
  • January 1968: Alexander Dubček (1921-1992), First Secretary of the Communist Party of Czechoslovakia. Political and economic reforms begin. https://es.wikipedia.org/wiki/Socialismo_con_rostro_humano
  • Ota Šik (1919-2004), Minister of Economy: “Workers' Councils” for the management of companies, made up of employees, technicians and officials.
  • March: abolition of censorship. The media and the general public begin to openly criticize Stalinism and societal problems.
  • April: Action Program.
    • In April, Dubček launched an "Action Program" of liberalizations, which included increased freedom of the press, freedom of expression, and freedom of movement, with an economic emphasis on consumer goods and the possibility of a multi-party government. The program was based on the view that "socialism cannot simply mean the liberation of the workers from the domination and exploitation of class relations, but must make more provisions for a fuller life of the individual than any bourgeois democracy." It would limit the power of the State Security—the secret police—and provide for the federalization of Czechoslovakia into two equal nations. The program also covered foreign policy, including maintaining good relations with Western countries and cooperation with the Soviet Union and other Eastern Bloc countries. Dubček spoke of a ten-year transition during which democratic elections would be possible and a new form of democratic socialism would replace the status quo. �The drafters of the Action Program were careful not to criticize the actions of the communist regime. postwar, only to point out the policies they considered had ceased to be useful. For example, the immediate postwar situation had required “centralist and managerial-administrative methods” to fight the “remnants of the bourgeoisie.” Since the “antagonistic classes” were said to have been defeated with the achievement of socialism, these methods were no longer necessary. Reform was needed so that the Czechoslovak economy could join the “scientific-technical revolution in the world,” instead of depending on the heavy industry, labor force, and raw materials of the Stalinist era. Furthermore, since the internal class conflict had been overcome, workers could now be duly rewarded for their qualifications and technical skills without contravening Marxism-Leninism. The Program suggested that it was now necessary to ensure that important positions were “filled by capable and educated socialist expert cadres” to compete with capitalism. https://es.wikipedia.org/wiki/Primavera_de_Praga
  • Summer: very limited opening to small businesses.
  • The Soviet leadership feared that the political reforms would spread to other countries within its sphere of influence, and especially to the USSR itself. They also feared that Czechoslovakia would leave the Warsaw Pact.
  • August 21, 1968: The Soviet army and those of some Warsaw Pact countries invade Czechoslovakia, foreshadowing what would later become the Brezhnev Doctrine of limited sovereignty.
  • Kosygin 's economic reforms in the USSR itself were severely affected.
  • Perestroika can be understood as a second attempt at something similar to the Prague Spring, with simultaneous political and economic reforms. Gorbachev's spokesman was asked what the differences were between the Prague Spring and Perestroika; he replied: "twenty years."

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Other references