When the Bolshevik Lenin first appeared on the Russian political scene he accepted the views of people like Plekhanov – whose acknowledged pupil he was – Axelrod, Deutsch and others. Lenin's first important work, The Development of Capitalism in Russia, published 1899, put forward the view that Capitalism was developing in Russia and nothing could stop its continuance. This development he argued was historically progressive in relation to the then existing semi-feudal economy of Russia. While one could not oppose this development he said, nevertheless workers should organise to resist its evils and steps should be taken to prepare for its eventual supersession. Lenin's book was part of an ideological campaign which the Russian Social Democratic Party were waging against the Narodniki (Populists) who maintained that Russia had a social development which was peculiar to itself and therefore did not have to pass through a normal and full capitalist development which other countries had experienced. In fact, they averred that Capitalism was a kind of Western disease against which the people of Russia could and should he inoculated. Let us, they said, get rid of the tyranny of Tsarism and we can, on the basis of our rural collectivism (the Mir), establish Socialism, i.e. free peasant communes and cooperatives of workers.
It was Lenin who after the meagre achievements of “War Communism” re-introduced the idea of a homegrown Russian Socialism when he announced his “New Economic Policy.” It was the “Marxist” Lenin who proclaimed the myth that State Capitalism although a step backwards from the earlier Bolshevik aims had in it, nevertheless, socialist implications. It was Lenin who repeatedly put forward the view that a Soviet State could be both the means and guarantee for realising Socialism in one country, and the further myth shared by both Stalin and Trotsky that what was taking place in Russia then was different from anywhere else in the world. Lenin's own views on Marxism had through the years undergone a considerable change from his earlier standpoint. How much so could be seen in the attitude he adopted in the closing years of the 1914-18 war. Lenin had come to believe more and more that Capitalism was doomed. that it would be unable to finish the war it had started. Peace was to come by a victorious proletarian revolution in the advanced capitalist countries. For that reason, the traditional difference between bourgeois and proletarian revolutions had for him lost significance. Given the right leadership in Russia, a socialist revolution not a bourgeois one would be the order of the day. At the first All-Russian Congress of Soviets, of which his party was only a small minority, he declared their willingness to take over immediately. In the August of that year, he flatly asserted that “majority rule was an institutional illusion.” Lenin's predictions of what was going to happen to capitalism were falsified by the actual events. The capitalists did finish the war and no proletarian revolution took place. So Lenin's main justification for a socialist revolution went by the board.
It is true the Bolsheviks did come to power in Russia. But it was neither with the acclamation nor assent of the Russian people. It was in the quiet of the early hours of the morning of November 7th that Bolshevik military cars occupied the centres of business and communication in Petrograd. This sealed the fate of Kerensky Provisional Government and assured the Bolsheviks of political power. Thus did the population of Petrograd discover when they woke a few hours later that their “Proletarian dictatorship” was an accomplished fact.
That the Bolsheviks concluded peace with Germany, dispossessed the private capitalist and against their own judgment gave the land to the peasants is a matter of history. They were successful because in war-weary, exhausted Russia they conceded to the inevitable. Behind the facade of their concession they planned, however, a new discipline and developed the latent forces for a new social order – new to Russia – but, in its exploitation based on wage labour. as old as capitalism itself.
Nor was the undemocratic seizure of power by the Bolsheviks merely the fortuitous result of filling the vacuum caused by the indecision and incompetence of Kerensky's Government. Such action by the Bolsheviks was in keeping with their political ideas which the circumstances arising from the collapse of Tsarist Russia enabled them to exploit.
The Bolsheviks, mainly recruited from the Russian bourgeois intelligentsia, had long regarded themselves as the born leaders of the Russian people, an illusion they shared with the Fabians and other reformist parties. By identifying themselves with the aims and aspirations of the non-socialist mass and securing their confidence the Bolsheviks believed that, with such backing, they could ride to political power at an opportune moment. Because they believed themselves to be the commanding officers of the politically less conscious majority it is easy to see why the spreading of socialist ideas was subordinated to the preoccupation of tactics, unity of command and the strict discipline of party organisation. Within such a party it was obvious that freedom of individual action and opinion were gravely limited. Ideas for them were not something to be accepted because of their integral and logical structure but as an ideal means for successfully waging political struggles. Theory for the Bolsheviks, as it became later for the various Communist Parties meant a creed a dogma to be inflexibly held against all comers.
The Bolsheviks themselves, however, became the victims of their own anti-democratic pressures. From “all power to the Soviets” it passed to “all power to the Communist Party.” The checks and balances of ordinary democratic procedure were absent. The struggle of rival groups had to be carried on within the Communist Party. Intrigue and plotting under ideological disguises became the effective means for realising political ambitions.
Among the first to describe the Russian economy under the Bolshevik government as "state capitalism", was Lenin himself in 1918. By this term, he meant state control of capitalist-owned industries. He had been impressed by the system of industrial control which the German government had built up during the war. If the Kaiser and the Prussian Junkers could control capitalist industry for their purposes why, thought Lenin, could not the Bolshevik Party control capitalist industry for the benefit of the workers and poor peasants of Russia?
After seizing power in November 1917 the Bolsheviks did not go on to nationalise all industry; they merely exercised state control over it. In some instances, this brought them into conflict with workers who under the syndicalist slogan of "workers' control" had taken over the factories in which they worked. A number of Bolsheviks denounced as "state capitalism" the policy of subjecting these factories to state control and to speed-up, one-man management and factory discipline.
Lenin's reaction was extraordinarily honest. He admitted that his government was pursuing a policy of state capitalism, but argued:
“State capitalism would be a step forward as compared with the present state of affairs in our Soviet Republic.” (Left-Wing' Childishness and the Petty-Bourgeois Mentality)
In admitting this he was admitting that Russia lacked the large-scale production on which alone Socialism can be based.
The civil war and foreign intervention forced the Bolsheviks to take a number of emergency measures — like nationalising factories whose owners had fled, requisitioning grain from the peasants, causing inflation by an over-issue of paper currency. Some Bolsheviks regarded these as measures to set up a moneyless economy in Russia, but this was absurd. As soon as the Civil War was over in 1921 they were abandoned and Lenin again advocated a policy of state capitalism. The New Economic Policy (NEP), introduced that year, was described as a policy of developing capitalism in Russia under the control of the Bolshevik government.
In calling their policy "state capitalism" the Bolsheviks were being unusually honest. But this was not to be expected to last in view of the political advantages to be gained from using the word "socialist". Lenin himself often used this word merely for its propaganda effect even though he knew that strictly speaking he was not using it properly. Stalin took over this opportunist technique and used it to great effect.
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