Democratic Centralism - Generals looking for privates.

Socialist Courier previously discussed the concept of democracy. Those familiar with the Left will no doubt come across claims that the Trotskyist and Leninist political groups exercise a form of democracy called “democratic centralism”


Socialism’s crisis is a crisis in the meaning of socialism. Many label themselves “socialist” in one sense or another; but there has never been a time as now when the label was less informative. The range of conflicting and incompatible ideas that call themselves socialist is wider than ever.The nearest thing to a common content of the various “socialisms” is a negative: anti-capitalism. But even anti-capitalism holds less and less of a meaning in most cases.

Nowhere else than on the Left is the term “-ism” more extensively and frequently used. We are asked to adhere not only to anarchism, or syndicalism, or socialism, or communism, but also to Marxism, Leninism, Trotskyism, Stalinism, Maoism, Luxemburgism, and a host of much lesser theorists’ “isms”.
Throughout the history of socialist movements and ideas, the fundamental divide is between Socialism-from-Above to be handed down to the grateful masses in one form or another, and Socialism-from-Below holding the view view that socialism can be realized only through the self-emancipation of view that socialism can be realized only through the self-emancipation of the working class, reaching out for freedom with their own hands. The vanguard party and democratic centralism - are nowhere to be found in Marx, while the third, dictatorship of the proletariat, had an entirely different meaning to Marx than the Leninist interpretation.
The name “bolshevik” originated in a controversy between various factions within the Russian Social-Democratic Party meeting in convention in 1903. The word “bolshevik” (from “Bolshe”, meaning more) meant one of the majority, as distinct from the word “Menshevik” (from “menshe”, meaning less), meaning one of the minority. At the convention, however, the majority of the delegates, were later called “mensheviks”, while the minority styled themselves “bolsheviks.” This incongruous situation came about accidentally when, for a short time, the Jewish Socialist Bund boycotted the convention leaving the rump convention, for the moment with the minority in control. This moment was enough for the minority under Lenin, to seize the name “majority men” or "bolsheviks” and brand the real majority as “mensheviks” or “minority men.”

Thus the name “bolshevik” was a trick, a trick of propaganda and political maneuvering, having little to do with the truth of the situation. “Bolshevik” was simply term used by Lenin to give the impression that the majority of the members were with him for all time. He had “won” the Party. This was, of course, a lie. And how strange it seems that Lenin, the man of “principle” should deal with numbers not principles.

The leaders of the Russian Social Democrats (such as Pleckanov, Lenin, Martov, Axelrod, and Trotsky,) were practically all intellectuals who had to leave Russia to live in other countries of Europe. The discussions among the leaders were held abroad, and there was great difficulty for others living in Russia to find their way to the gatherings or conventions. Among the leaders in exile, democratic discussion was taken for granted, but in the Bolshevik faction, once the leaders had decided, the rest back in Russia had to carry out the decisions. The statements issued by the emigre center was the law! If you didn’t like it you could leave the Party!

It was Lenin’s contention that the working class, through its independent development, could achieve a trade union consciousness, but only a vanguard party, composed of professional revolutionists completely identified and fused with the working class, could imbue it with a socialist consciousness and make it aware of its great historic mission. In his pamphlets Lenin outlined the organizational steps necessary to be taken in order to achieve this kind of organization. He wanted a vanguard party closely connected with the masses, but hierarchically organized, with definite bodies, committees, and a program to which all members adhered, and which they actively carried out. The party was to be headed by a central committee which was responsible to the party congress, with the political leadership in the hands of the editorial board of the central party organ, which board could organize and reorganize the units of the party, admit or reject members, and make all political decisions.

The premise of Lenin’s democratic centralism was based on the following reasoning: revolutionaries needed not a mere parliamentary organization but a party of action which direct a vanguard of activists tied to the revolutionary masses. The party should be an elite body of professional revolutionists dedicating their lives to the cause and carrying out their decisions with iron discipline. No task too small; no sacrifice too great. Such a party cannot be built from the bottom up but only from the top down. First, the leadership would show the way, formulating the program and policies, educating the people, and working out the strategy and tactics. The more advanced dedicated workers would join such a party and carry out the decisions. A degree of discussion might be permitted but, once a decision was made, unity in action and stern discipline was insisted on. In the Russia of Lenin’s time, under the despotism of the Czar’s police, political activity had to be carried out secretly so full democracy by the rank and file membership was practically impossible to attain.

Within Russia where the class struggles became more intense, and real battles were raging in the strikes and demonstrations these exiles had very little experience in strategy and tactics to be the actual leaders in these events. They could analyse the over-all political significance of the events and bring their views to the international socialist conventions, but the militants in the field had to develop their own initiative, ingenuity, and judgment to carry on the best they could. Once the Russian Revolution, was underway the democratic tendencies expressed itself and everywhere there were meetings, discussions, voting. In the Soviets there was voting on all the vital issues of the day, on programmes set up by leaders of rival parties fighting for power. In this type of situation the advantage rested with the Bolsheviks who, under Lenin, had long advocated a centralist party.

In 1902 “democratic” centralism had been advocated because of Czarist terror and the secret police, but in 1917 it was advocated because of the needs of the civil war. In the civil war the power of the leadership was strengthened. The “ideal of ‘democratic centralism’ suffered further reverses, for in effect the power within both the government and the Party became concentrated in the hands of Lenin and the immediate retinue of Bolshevik leaders who did not openly disagree with him and carried out his wishes. The dictatorship (or rule) of the proletariat (or rule of the workers) gave way to the dictatorship of the party, the dictatorship of the party to the dictatorship of the executive committee, the dictatorship of the committee to the dictatorship of “the leader.” Supposed “democratic” centralism had turned to into simple “centralism”. Many of todays’s vanguard parties go at great lengths about centralism, but are unsurprisingly rather silent about democracy.

“Democratic” centralism, as developed by the Bolsheviks was a Russian product, adapted for Russian conditions, as the Bolsheviks themselves. Rosa Luxemburg described Lenin’s conception of organisation thus: ‘the Central Committee is everything whereas the real party is only its appendage, a mindless mass which moves mechanically on the orders of the leader like the army exercising on the parade ground” It can be added that although everyone marches in step, the orders are usually wrong.

Democratic centralism poses as a form of inner party democracy, but it is really just a hierarchy by which each member of a party (ultimately of a society) is subordinate to a higher member until one reaches the all-powerful party central committee and its Chairman/General Secretary. This is a totally undemocratic procedure, which puts the leadership above criticism, even if it is not above reproach. It is a bankrupt, corrupt method of internal operations for a political organisation. You have no voice in such a party. The practice of Trotskyist-Leninist parties is that the Central Committee unilaterally sets policy for the entire organization, and their authority reigns.

The Socialist Party of Great Britain is a party of no leaders or, if you will, every member is a leader. Our directly elected Executive Committee is only a “house-keeping” committee for the day-to-day running of the Party (our General Secretary is little better than general dogs-body!). The EC has no power to decide policy. It doesn't even have the authority to submit resolutions to conference. Only branches can do that. Nor does conference decide - only a postal referendum poll of our individual members provides the mandate for Party decisions.

The Scottish Capitalist Class get 58% Richer

This year’s Sunday Times UK rich list, which includes a total of 78 people from Scotland in its top 1,000, the most to feature in a decade. There are now six billionaires from north of the Border on the list, one more than in 2012. £21bn of wealth has been accrued by the top 100 millionaires.


Scotland’s rich are getting richer as the rest of Scots continues to struggle economically. The most affluent Scots saw their personal wealth soar by up to 58 per cent.

Highland Spring owner Mahdi al-Tajir is still Scotland’s richest man, and the 44th wealthiest in the UK, now boasting a fortune of £1,656 million up £56 million on 2012.

Banffshire distiller William Grant remain in second place on the list with family wealth totalling £1,400 million.

Sir Ian Wood’s, former chairman of Aberdeen-based Wood group, personal wealth now stands at £1,200m.

Ian Coxon, the rich list editor, said: “The 2013 rich list shows that business is booming in Scotland from Aberdeen to Ayr.”

Yup, capitalism is okay for some while we all face rising bills and less income to pay them.

Ca' Canny

The Libcom website has an interesting working class history article on the Glasgow dockers "ca' canny" go slow campaign of 1889.

To break strikes the employers regularly brought in scabs from other cities. Workers had to devise another industrial struggle strategy.

Socialism and Social Democracy

What is democracy? We can do no better than use the familiar explanation “It is the rule of the people, by the people, and for the people.”


When the Athenians talked about demokratia, “rule by the people” (the dêmos) they did not just mean the election of “representatives”, to rule on behalf of the electors, but actual, direct rule by every citizen. An Assembly, which actually took decisions, voted on all major issues, passed laws and voted on foreign policy. When it met, about once a week, every citizen could have his say, speaking for as long as he liked – until people got bored with his speech and pulled him off the platform.

From the study of history it is found that the public assembly of all the citizens made all important decisions. They organized the administration of the state, appointed officials and kept check on them. The public assembly of all the citizens was the government. The vast majority of officials were chosen by lot which amounted to putting names into a hat and appointing the ones whose names came out. Not only did the Athenians choose all officials by lot, they limited their time of service. When a man had served once, as a general rule, he was excluded from serving again because they believed in rotation, everybody taking his turn to administer the state. The Athenian assembly appointed a council of 500 to be responsible for the day-to-day administration of the city and the carrying out of decisions. Athens had very few permanent functionaries. They preferred to appoint special boards of citizens. Each of these boards had its own very carefully defined remit and were co-ordinated and overseen by the council.

Politics was not the activity of your spare time, nor the activity of experts paid specially to do it. A person who did not take part in politics was an idiotes, from which we get our modern word idiot. How would today’s politicians feel if it was suggested that any worker selected at random could do the work that they were doing, and that it should not be treated as career but yet that was the guiding principle of Greek democracy, one of the greatest civilization the world has known. (Albeit one where women and slaves were not given the same accord as the free male citizens.)

Nor was the democratic system something that arose and was established overnight. Like our own world Greece possessed a landed aristocracy who dominated the economy and held all the important positions of government. For example, rich and powerful noblemen, for centuries, controlled a body known as the Areopagus that held all the powers and which later were transferred to the council. The magistrates in the courts were a similar body of aristocrats who functioned from above with enormous powers such as modern magistrates and modern judges have. The merchants made a bid for power. Democracy had to be won and protected. The struggle was continuous. The old aristocratic class and some of the wealthy made attempts to destroy the democratic constitution and institute the rule of the privileged. They sometimes had temporary success but were always ultimately defeated. In the end, the democracy was defeated by foreign invasion and not from the inside.
Naturally some detested the system, particularly the intellectuals. Plato, Aristotle and Socrates thought that government should be by experts and not by the common people. To-day similar philosophers claim large modern communities are unsuitable for such a form of government and there is a need for a professional bureaucracy. Yet the fundamental belief of our justice system is the jury-system, men and women selected from the electoral roll to hear the arguments for and against and decide upon the important issue of innocence and guilt of another person which at one time could be a matter of life and death.

In to-day’s society, democracy is a fraud in the sense that it uses democratic forms to frustrate genuine democratic control from below. Marx described the United States as “the model country of the democratic swindle” not because there was less democracy but for precisely the opposite reason. The fact that the US had developed the formal structure of the constitutional republic which meant that its ruling class had also developed the art of keeping the expression of popular opinion within acceptable channels, satisfactory to its own class interests with a plethora of clever electoral rules devised to insert a manipulative factor into the forms of a more or less universal suffrage, beginning with the American Constitution, then the “Jim Crow” laws and by currently controlling a media system which permits the buying of public opinion.
Where there is democracy, there is inevitably insecurity for the capitalist ruling class. True democracy places power with people and in such circumstances the few who hold power become threatened. The “threats” to elite interests from the possibility of true democracy has always required to be neutralised by using educational institutions, religion , public relations and advertising agencies and , of course, all the various means of mass media, press, radio, tv and film. Political, economic, and cultural agencies all are employed to defend the principle of privilege. All have been used to protect the power of the wealthy from the potential of popular democracy. Modern democracy gives to the worker the right to choose his master. Yet the threat of democracy remains a constant, persistent and a pervasive danger to the capitalist class.

In socialism the task of organising and running production and the involvement in administering communities will be looked upon as those who lived in ancient Athens saw it, a necessary and important part of work, a part of everyday life. In fact, there will be no politics in the modern sense in that there will be no institution separate from the rest of social life. We should recall that the term “social democracy” was once an alternative name for socialism and socialists were at one time called “social-democrats”.

A Chartist Tour of Scotland

Robert Gammage was a Chartist activist and is best known for his History of the Chartist Movement, published in 1854. In 1843 he embarked on a speaking tour of Scotland, lecturing in many small towns. It makes an interesting read and an insight into the history of the working class in Scotland.

'Recollections of a Chartist'

Now I was about to go to Scotland —
“Land of brown heath and shaggy wood,
Land of the mountain and the flood."

I walked to Annan, a little town about half way between Carlisle and Dumfries, and addressed a well attended open air meeting, and I was congratulated at the close on my lecture and its reception. I stayed at an inn, at that time the principal inn in the town. I had but rarely seen such a 'spread' for supper as was set before me, brought on one of those old-fashioned mahogany trays which I had indeed seen in my boyhood, but never supped off. There was meat in abundance, bread and cheese, and a jug of 'good Scotch ale.' I slept well, a pretty good sign of a quiet conscience. Macbeth might murder sleep, but I did not, nor did sleep murder me, for I felt all alive on the following morning, and breakfasted on pre-served salmon and fresh egges . And what, it may be asked; did you pay for all this? I need not be ashamed to own it, seeing that I paid all that was charged, and that was the sum of 2s.! When I offered the servant a little gratuity for cleaning my boots, it was with evident reluctance that she received it. What think you of that, travellers of these faster days?

Tough At The Top?

Rich Ricci, head of Barclays' investment bank has been made redundant. Unlike members of the working class who suffer this fate this is not a financial blow to him. He "earned" £44 million in 2010. If he doesn't find another post this year he will still receive his £700,00 annual salary. He has other consolations. 'Less than a month ago, Mr Ricci pocketed an £18 million windfall, selling 5.7 million shares received as part of annual bonus and long-term incentive schemes.' (Times, 19 April) He is estimated to have a personal fortune of £100 million so redundancy is hardly a shattering blow. RD

No Profit - No research - No Cures

Resistant to existing antibiotics, superbug-related infections worldwide result in thousands of deaths each year—an estimated 99,000 in the U.S. MRSA kills an estimated 19,000 people every year in the U.S., compared with the 17,000 who die from AIDS, according to the Centers for Disease Control.


"We are in a crisis situation," said Dr. Cesar Arias, an associate professor of infectious diseases at the University of Texas Health Science Center. "The World Health Organization says this is one of the top three health threats to the world in this century, and I can't argue with that," said Arias, who has researched and written extensively on superbugs.

Dr. G. Richard Olds, dean of the school of medicine at the University of California-Riverside, explains "Pharmaceutical companies like to push drugs in advertising to make money, and a patient often thinks if a doctor doesn't prescribe antibiotics he's a bad doctor," Olds said. "But the medical profession has to be precise when it comes to handing out drugs—we have to use them appropriately and for the right reasons,"

So the the world scientists are being mobilised to tackle the problem...ummm...no. Quite the opposite.

"We have a clear case of too many antibiotics being used and not enough new ones in the system to fight these bacteria," according to Alan Christianson, a specialist in naturopathic medicine. "We haven't had any new antibiotics in the pipeline over the past 10 years, and it takes time to get one in, so we're way behind the curve on this."
 The large drugmakers Johnson & Johnson and AstraZeneca have said publicly that they have reduced or stopped research funding for new antibiotics, citing the costs. Developing more expensive drugs, such as one for HIV, is better for returns.

"These firms want to know that they will make an antibiotic that will work economically, and there is no guarantee," Christianson said. "There's a lot of trial and error to find the right one. There's really no money in antibiotics."

Over-population? Too Many People?

In 2011, the United Nations population division predicted a global population of 10.1 billion by 2100, an increase of nearly 50 percent from the earth's current population of 7 billion. But a new study out of Spain suggests those estimates may be way off—we're talking several billion people off.

Scientists at the Autonomous University of Madrid and CEU-San Pablo University say their estimates,  shows global population peaking in 2050 slightly above eight billion, and then falling back to 6.2 billion by the end of the century, the same as the total world population back in 2000.

The Danger of State Capitalism

In an earlier post we discussed nationalisation, it is worth going into such an economy where the state is the main owner.

Socialists envisage a society in which there will be no classes and no state. Many on the Left, including Lenin, have regarded state capitalism as a stage on the way to socialism. They view it as a necessary transitional stage. But history has the grave dangers of state capitalism.

State capitalism concentrates an overwhelming power in the hands of the State, and places workers completely at the mercy of the State. The State is not in the hands of the working-class but an all-mighty bureaucracy.

Under private capitalism in a democratic State the government has no substantial direct income. It raises revenue and makes expenditure by the authorisation of Parliament. This gives to Parliament a degree of control over the executive.

Under state capitalism, the government derives its income automatically from the economic enterprises of the State. It thus has a tendency to free itself from parliamentary control, to become the master of Parliament and to turn the MPs into obedient civil servants.
The State, as the owner of banking industry, agriculture and transport etc becomes the universal employer, the universal landlord. It controls everything on which the fate and happiness of the individual citizen depend.

The worker is dependent upon and at the mercy of the State as regards his or her employment, housing, food, education, transport and leisure facilities. This enormous power of the State over the individual strengthens tendencies towards a dictatorship. The right to organise in trade unions and to strike under State capitalism is even more essential than under private capitalism.

State capitalism does not solve any of the outstanding problems. It does not abolish crises, the classes, the wage system. Under state capitalism there is production of commodities for sale, not production for use. There still remains the rationing of prices and the limits on the purchasing power of wages.

Personal Memories

When i first joined the SPGB in 1971 Edinbugh branch in fair weather held two outdoor meetings at the Mound on Sundays. 30 years after those, the influence still existed. During a casual chat during tea break a co-worker recalled listening to a socialist at the Mound telling the audience that the dummies in the shop-windows along Princes St were better dressed that most of them - so who were the real dummies? My colleague concluded "I felt slightly insulted because i thought i was a dapper dresser but looking back now, damn it,  if he was right!"


The branch i joined reflected the alternative counter-culture that prevailed at the time, students, "hippies" and bikers probably out-numbered actual members with steady employment. At times the branch appeared polarised betwen the druggies and the drunks. I was a school-boy back then when i first came in contact with the the SPGB. The other political group that first Sunday evening at the Mound was the International Marxist Group so i went home with a Red Mole and Socialist Standard. Fortunately the Standard advertised a SPGB propaganda push called 7 Days For Socialism so i had the opportunity of hearing a series of speakers discussing all aspects of socialism and although not 100% conversant with the entire party case in the beginning, after a few branch meetings i was convinced enough by the basics to formally join.

During my time i dare say the membership rose to about 50 with many sympathisers outside the Party and we were perhaps the most active political party in the city. The SWP were still called the International Socialists and still mostlyuniversity-based. The Workers Revolutionary Party (then, the Socialist Labour League) had the reputation of being more a cult with their control of its members. Militant were still invisible amongst their membership of the Labout Party and still demanding, as now, the nationalisation of the 400 leading companies.

The branch held our Monday weekly branch meetings at the "FreeGardeners", on Picardy Place which were usually a lively affair where the weekly EC minutes were dissected and the current issue of the Socialist Standard vigourously critiqued. It is sad that the branch minutes have been lost. The Socialist Standard sold were in their hundreds by a combination of street selling at the east-end of Princes St at the "Welly-boot", the Duke of Wellington statue, and during the Friday and Saturday evenings pub crawls where many regular customers anticipated each new issue. The tactic of selling in the pubs led to many boozy discussions, with inebriated members engaging in political and philosophy discourses that contributed to many a person's socialist education as different view-points and recommended reading were exchanged.

The branch tried to return to earlier public speaking places that were permitted by the city bye-laws, the Meadows and Portobello prom, with no success. An attempt of an open-air meeting at Portobello led to a confrontation with one of the local youth gangs that were prevalent in those days. As some of the gang menacingly advanced, they were quite unprepared for the intervention of a relatively new one member of the branch, a ex-Para Regiment, who demonstrated to the gang the power of a punch, rather than the punch-line

The branch, much to the dismay of the local council who held a file on our activities, was also highly visible. Each public meeting meant a new poster to advertise the date and venue that led to evenings of illicit fly-posting, often leading to police chases and occasioanlly police apprehension. Luckily with no prosecutions. Countless posters were pasted to walls in all manner of locations. They often remained stuck up for a long time as adverts for the party. Edinburgh branch was particularly fortunate in possessing some fine artists who produced a series of striking silk-screen posters. One visiting comrade from America i recall remarking that when he arrived in the city and saw the number of SPGB posters it seemed as if he was in Peking during Cultural Revolution which was symbolised by its wall-posters.

The 60s and 70s were a time of re-appraisal for the working class as a whole as class struggle developed different manifestations. Women and gay liberation, claimant unions. A time of wild-cat unofficial strikes and work-ins. Lifestyle politics was an influence and some began to believe the party was too traditional and old-fashioned, failing to reflect the times or effectively express the new demands of the working class. The Trotskyists and CPers had their Lenin and we had our John Lennon. Within the party several members became associated with libertarian communism, a vague synthesis of Marxism and anarchism. One party wag labelled it libertine communism - perhaps with some justification! This need to explore new political approaches resulted in me not being a member of the SPGB for 20 years. The world changed, so did the Party and so did I.

As one IWW/anarchist comrade who knows the party well once said to me, "Its amazing just how many SPGBers re-join". Perhaps it is that the Socialist Party's principles outlive particular personalities. It may be argued that some opportunites in the past may have been missed but the Socialist Party analysis stands the test of time. The challenge to communicate and express socialist ideas will always remain a debating point among SPGB members but now there is ample means to do so within the party through our internet discussion lists.

Alan Johnstone (Aljo)

The Co-Op Cop Out

“We are private companies that work in the same market as everybody else. We are exposed to the same conditions as our competitors.” - Mondragón’s human-resources chief

Many regard the co-operative movement as being in some way linked up with socialism. Socialists have come to realise that co-operatives cannot be used as a means for establishing socialism and that they only flourish to the extent that they can be successfully accommodated within capitalism.

The idea of the workers’ co-operative has flourished since the early days of the labour movement and has been seen by many as a possible alternative to nationalisation. The originators of the co-operative movement saw it as a movement that would eventually out-compete and replace ordinary capitalist businesses, leading to the coming of “the Co-operative Commonwealth” (which is an alternative name for socialism occasionally used by both Karl Marx and the Socialist Party). The co-ops would constitute, as it were, little oases in the desert of capitalism. They anticipated that the movement would grow until finally the workers would have achieved their emancipation. Essentially, each community would own its own means and instruments of production and each member of a community would work to produce what had been agreed was needed and in return would be issued with a note certifying for how many hours he had worked; he could then use this note to obtain from the community's stock of consumer goods any product or products which had taken the same number of hours to produce. (G.D.H. Cole was another who proposed a variant, that he called “Guild Socialism”. Although Cole’s blueprint did provide for close links between consumers and producers which could be interpreted as “production directly for use”, it still envisaged the continuation of finance, prices and incomes. It was to come into being through the guilds eventually out-competing capitalist industries in the marketplace)

Because co-operatives have to compete with ordinary capitalist businesses on the same terms as them, so they are subject to the same competitive pressures, to keep costs down and to to maximise the difference between sales revenue and costs (called “profits” in ordinary businesses, but “surplus” by the co-op). The co-operative movement was out-competed and is now trying to survive on the margins as a niche for “ethical” consumers and savers, leaving the great bulk of production, distribution and banking in the hands of ordinary profit-seeking businesses. Co-operatives did not provide a real solution to the workers' situation as it was incapable of providing an answer in the interests of all workers. At no time did it question the capitalist production relationships - it questions only superficial features (monopolies, competition, etc.).
Whether or not a place of work takes the form of a workers’ co-operative can have no bearing whatsoever on the pressures which compel it to meet the economic conditions for its existence. Nor do the details of how it run its affairs matter. It can be a kibbutz or a co-operative taking decisions collectively; it can be a monastery producing fortified wine; it can be a conventional business; in whatever way they are internally structured, authoritarian or democratic, and in whatever scale they may operate, as a part of social production they can only operate within the pattern of capitalist buying and selling.

In what way does the ownership of the factory by the employees differ from ownership by a capitalist? A co-op has to buy its raw materials on the market, along with every other company. It does not get steel, oil, copper, coal, any cheaper because it is owned by its employees. In buying in its machinery, equipment, materials, premises, transport etc., and in paying its rates etc, any unit, including any workers’ co-operative, must pay all these costs. How could any imagined “socialistic” unit operate without power supplies? In its application of socialist principles in production and consumption, is it going to persuade the utility companies to provide supplies free?

In addition to this income, the individuals working in the unit must have income to cover personal living costs such as rent or mortgage repayments, food, clothes, leisure activities, and so on and on. This is inescapable. Regardless of their make-up, production or service co-ops can only continue their existence whilst they are economically viable; that is, where income exceeds expenditure. If expenditure exceeds income, then inevitably they disappear.

A co-op has to sell its products on the market, along with every other company. It does not get higher prices for its goods because it is owned by its employees. It has to compete with every other manufacturer in terms of price, delivery dates, quality etc. In order to compete over any length of time, a co-op will have to invest in new plant and equipment. To do this it will require a large amount of capital. If this is obtained by borrowing, then the co-op will have to convince the banks that it is a viable and profitable concern, run along good business lines. It will be under even greater pressure to prove that it is viable just because it is a different sort of enterprise. Of course, it may decide to raise the capital needed for investment out of the profits. Inside the factory, there are no owners other than the workers. But they buy goods at the same price as other capitalist concerns. They sell goods at the same price as other capitalist firms. They compete flat out with other capitalist firms. If they are to make enough surplus to re-invest, or to convince the banks they are good for a big loan, how are they to do it?They are in a trap. Either they sack some of their fellows; or they increase their own intensity of work; or they take a wage cut. Elected workers’ councils would be in exactly the same position of having to lay off staff, if there is no market for the goods they produce.

Whichever avenue they choose, their decision has two effects. Firstly they have attacked their own living standards. Secondly, they are acting as an unconscious argument in the hands of other bosses against their work-forces. If an employer in another factory is faced with a demand for, say, a wage rise, he will immediately reply that he can’t afford it and point to a worker co-operative and say: ‘they work for less than you are demanding. It seems a perfectly reasonable wage to them, with no boss, why are you demanding from me more?’ The capitalist has been provided with an excellent propaganda weapon against his own employee demands as a way of mitigating the class struggle and persuading workers that they have an interest in accepting ‘realistic’ (i.e. lower) wages. Co-ops exhibit the exact same vices as capitalist firms.
The logic of capitalism dooms the efforts of those who seek co-operatives. The co-operative movement cannot solve the basic economic problems of the workers as a whole, or even of the co-operative societies' own members. Where it was a success it was merely the success of essentially capitalist undertakings. There is a tendency for worker co-ops to resemble more and more over time the conventional capitalist business model and the case of Mondragon - the largest worker co-op conglomerate in the world - would seem to bear this out. It has grown and has departed more and more from its original egalitarian principles and Mondragon has been noted for employing heavy hand tactics against its own two-tier workforce.

Co-operatives can only ever involve a minority of workers, and the more they are integrated into the capitalist economy and its profit- seeking, the more their members will have to discipline and pressurise themselves in the way the old bosses did - what is known as "self-managed exploitation". The fact is that there is no way out for workers within the capitalist system. At most co-operatives can only make their situation a little less unbearable. We cannot self-manage capitalism in our own interests and the only way we can really live without exploitation is by abolishing capitalism.

The worker cannot claim ownership and control of the mine or the factory because these are huge production organisations, part of a wider interlinked network and cannot be divided into separate pieces. This is the reason why socialists demand common ownership of the means of production – the land, factories, railway, etc. To suit collective work, collective property. The big issues are not decided “on the shop floor”, to use a militant phrase much loved by advocates of “self management”. There should be collective ownership and collective control of what is collectively produced.

Let us now bury capitalism

What Is Socialism? It is not nationalisation

“It was our lifelong dream coming true. It was a utopia. We were for it 100 per cent. What celebrations there were! The industry which had broken generations of miners was ours at last.”

On the 1st January 1947 miners took an unofficial holiday. The red flag was hoisted over the pits and the miners social clubs rang to choruses of the workers’ anthems of the Red Flag and the Internationale. The euphoria did not last.

Nationalisation (or in some cases municipalisation), is sometimes called “state socialism”, but more accurately it amounts to a form of state capitalism. The Post Office, would serve as an example of a “socialist” public service or the National Health Service. Or the BBC. But in the past we have had coal mines, the railways, the electricity and gas networks and tele-communications all owned by the state. Nationalisation has been wrongly equated with socialism. State ownership does not mean socialism. Nationalisation is a complete distortion of the idea of common ownership. The Labour Government has not only performed an essential service for British capitalism but at the same time has been able to hold in check the class aspirations of the British workers by representing such measure as the beginnings of socialism. So-called socialists demnding the re-nationalisation of the privatised industries and the new fresh nationalisations of key parts of the economy are committing an old fraud. Nationalisation does not facilitate the revolutionary task and are state-capitalist measures, not socialist ones.

At the dawn of capitalism, when the individual factory was usually quite small, it was normal for the capitalist to fill all three functions of ownership: he owned it, controlled it (in the sense of making all the operative decisions on the policy on the firm) and personally managed it. Today, in all the big corporations, ownership by shareholders is usually divorced from control by the big financial or and both are far removed from management which is exercised by (highly paid) salaried managerial employees. Private enterprise has become less private, less enterprising. Instead of the image of the self-confident businessman, owning his own factory, we now have the giant, impersonal monopolies, reliant on state contracts or subsidies. So what the form of ownership is not the decisive question; what matters are the interests in which industry is being run. Instead of individual ownership, the capitalist class as a whole owned the railways, the mines and energy producers.

Nationalised industries are said to be for the profit of the community but they are for the benefit the capitalist class and when they no longer serve that function, they are privatised. Certain industries, delivered up to the greed of private companies, become instruments for the exploitation of other sections of the capitalist class, and so powerful they grow that they disturb the whole bourgeois system. Capitalism is forced to make attempts to overcome its own anarchy of production if it is to continue to survive under modern conditions. The first attempts in this direction are represented by the organisation of cartels and trusts; later the direct intervention of the state become increasingly necessary. On the world market, state control is needed by the capitalist, in order to render the national industries better able to compete. While many saw nationalisation as a step towards the socialist planned economy it was merely the natural consequence of the modernisation of the out-of-date industries by the capitalist state in order to render British capitalist industry as a whole more able to compete. The whole reason for the nationalisation measures of the Labour Government 1945-51 was that the recovery of the whole economy would have been endangered without cheaper access to transport and fuel.

Naturally the whole process of state control over industry remains in the hands of the capitalist class and its representatives. In Britain the management of the nationalised industries stayed in the hands of much the same people who ran them previously—plus a number of loyal labour lieutenants of capitalism who were rewarded for services rendered with jobs. By December, 1949 of 131 names listed by Mr. Attlee on central nationalised boards, sixty-one also held directorships in private companies, twenty-three were knights, nine were lords, and three were generals. It may not be altogether unfair to suggest that their devotion to the socialist idea was not primary. In such a state-controlled economy the profit motive—the fundamental cause of capitalist crises—naturally remains untouched. In fact the control itself exists solely for the maintenance and the increase of profits.

In capitalist society a private industry only becomes a State service in order to better serve the interest of the bourgeoisie. We witnessed that with the state take-over of the failed banks of Northen Rock, Royal Bank of Scotland and the Halifax Bank of Scotland to preserve the integrity of the financial sector as a whole. Nationalising the banks have been instrumental in maintaining the class structure of British society. It was a nationalisation which feathered the bed of the capitalists and the banking oligarchs remained safe in their beds. The capitalist bank nationalisations is the clearest proof that capitalists are prepared to concede formal ownership of the means of production to the state provided that it is in what they call ’the national interest’ (i.e. in the interests of their class as a whole, as represented by their state). Ownership is a secondary matter; there are all kinds of private, collective and state forms of ownership - what is important is the class reality which lies behind these legal arrangements in that the capitalist class is still in power and in control of its capitalist state.

State employees, like workers in private employment, strike and engage in a struggle with the exploiters. Even if the new state owners desired to improve the lot of those employed would they be able to do so? The work-places of the state and municipality are prisons quite as bad as private workshops, if not worse. But those “revolutionaries” will have to mount guard over the general interests of society served by the socialised industries, and in particular over the interests of those directly engaged in them. The state ownership of the Post Office in this country since the 18th century has meant neither improved conditions for the post office workers, nor any advantage to the working class as a whole. We witnessed the same despotic rule and saw that those who worked most and hardest would still get the least remuneration.

There is no question of syndicalism or “guild socialism”: each factory and work-place will not be owned by its own workers. They will be “owned” by the working class collectively. Nor will the question of competition (and conflicts) between various factories arise through a system of “”market socialism.”

Surely, today, nobody believes that thanks to a British Rail or a National Coal Board, we will reach the New Jerusalem. We have learned from the political failures of the past just how disastrous the idea is that socialism can be established over time by a “working class government” through nationalisation and state control. Yet nationalisation under workers’ control is the now the cry being raised in some quarters but it is a call for the working class to undertake the management of their own exploitation.

Within this model wage labour would still function and it follows that so too would capital. Capital accumulation out of surplus value would be the overriding imperative of this system. At the end of the day what we have is just another class-based society parading as one in which the means of production are purportedly publically-owned but actually owned by the state-apparatus. It is the Left’s mistaken belief mistaken belief that “socialism” is simply a change in administration and so if nationalisation gives the appearence of worker-control it must be well down the road to socialism.

Although they left no detailed blueprint of a socialist society, the viewpoint of Marx and Engels, was that socialism would be a new mode of social production that would in essence be an “association of free and equal producers", not a system where the administrator of production and distribution would be the state, but rather the producers and consumers themselves to whom these functions of ownership and control would fall. The path to socialism is not through nationalisation, public corporations or even trade union control, but through a fundamental change in class relations. Socialism is rule by the working people. They will decide how socialism is to work. This was how Marx defined socialism. To-day there is no difficulty whatever in creating wealth far in excess of our requirements and the motto, “From each according to ability, to each according to needs,” now ceases to be utopian and becomes a reality.

On this Day

April 17 in 618 -- On this day fifty-three monks were burned alive in their refectory by a gang of armed women seeking revenge for being cheated out of their pasture rights, on the island of Eigg.

Dear Old London Town

The plight of the London homeless grows worse by the day with more and more families forced to get by in cramped bed and breakfast accommodation and yet a walk through the up-market sections of such districts as Belgravia, Kensington, Chelsea and Mayfair shows many desirable residences lying vacant with their owners living elsewhere. '"Belgravia is becoming a village with fewer and fewer people in it," said Alistair Boscawen, a local real estate agent. He works in "the nuts area" of London, as he puts it, "where the house prices are bonkers" - anywhere from $7.5 million to $75 million he said.' (New York Times, 1 April) Parts of dear old London town have become far too dear for the working class. RD

The Power of the Vote

An essential part of the right-wing criticism has been an attempt to prove that socialism is incompatible with democracy, that socialism cannot be but authoritarian. Marx has been presented as advocating violent revolution, totally opposed to the system of parliamentary elections. This has also been propagated by Leftists of various shades who claim that elections are a farce and the proletariat cannot come to power without the use of force. It was for this reason that they self-style themselves as ‘revolutionaries’ This picture is totally wrong. Marx actually looked upon the ballot box as a means of achieving the socialist revolution, after the democratic rights had been won.

As his co-thinker Engels wrote in the 1895 introduction to Marx’s The Class Struggles in France “The Communist Manifesto had already proclaimed the winning of universal suffrage, of democracy, as one of the first and most important tasks of the militant proletariat.” Engels also said that workers should "to convert the ballot box from a means of fraud into a means of liberation"

Nor was Marx an advocate of vanguard minorities seizing power in the name of the working class and on their behalf.

Engels in his 1890 Preface to the Communist Manifesto writes “For the ultimate triumph of the ideas set forth in the Manifesto,Marx relied solely and exclusively on the intellectual development of the working class, as it necessarily had to ensue from united action and discussion”

Marx did not intend his message for select disciples but directed it at the working class as a whole. To Marx, the workers when they become socialists do not become different from the rest of the working class. Their change in thought is an evidence of gradual transformation in the working-class movement. They remain a part of the workers, struggling along with them for emancipation.

The End of the State

Continuing to correct some misunderstandings about the ideas of Karl Marx.

Most of the misconceptions regarding socialism have been propagated by those who wish to emulate the Russian Revolution. It is unfortunate that when their so-called “marxism” became the official ideology of the ruling class in Russia the anti-state sentiments of Marx and Engels have been downplayed or downright distorted.


Workers State

“The society which organizes production anew on the basis of free and equal association of the producers will put the whole state machinery where it will then belong - into the museum of antiquities, next to the spinning wheel and the bronze ax.” Engels

Neither Marx or Engels ever advocated a "worker's state". Both wanted to use the state's apparatus used to overthrow the bourgeoisie, at which point it would have served its purpose and would be dismantled.

Many on the Left are convinced that Russia was some sort of "workers state’ albeit some qualifying it as being deformed. A "Workers State" is not actually a state controlled by the workers, but a state controlled by a vanguard party in the name of the workers. The 'workers state’ meant governmental rule by a vanguard party, the Bolsheviks, and by adding control over the economy by nationalisation to the political control of the government, the totalitarian rule over all of society emerged in full.

“Workers State” is a contradiction in terms, but if it is to mean anything it would have to mean that the workers controlled the state; which could only be done through some democratic mechanism. But the workers never controlled the state in Russia. Within a few years of the Bolsheviks seizing power in November 1917 they had suppressed all other parties and established a one-party dictatorship.

Marx explains that although revolution the proletariat will be “raised to a governing class” this has nothing to do with creating a dictatorship of a political sect, but is rather a claim that the proletariat will use “general means of coercion” to remove the bourgeoisie’s power (by abolishing the private ownership of the means of production, disbanding the standing army, and so forth). It is the entire proletariat that is to exercise this power. In reply to a question raised by the anarchist Bakunin, “Will all 40 million [German workers] be members of the government?” Marx responds, “Certainly! For the system starts with the self-government of the communities.”

The purpose of seeking political action and capturing the state-machine is not to take office and form a government but simply and solely to take state power out of the hands of the capitalist class since it is through controlling this organ that the capitalist class is able to maintain its possession of the means of production.

“ In order, therefore, to assert themselves as individuals, they [proletarians] must overthrow the State” German Ideology

A SENSE OF VALUES?

It speaks volumes for the media's sense of values when it can report the following fraud, but remain silent about a much greater con trick. 'A Florida billionaire, William Koch, 72, has won $380,000 (£247,000) compensation after 24 fakes were discovered among 2,6000 bottles of vintage Bordeaux wine that he bought for $3.7 million.' (Times, 13 April) The greater con is of course capitalist society itself which can have people starving whilst a useless parasite can spend millions of dollars. RD

Understanding Marx

David McLellan, formerly professor of political theory at the University of Kent wrote: “Marx’s writings have too often been reduced to ill-digested slogans… it is not surprising that Marx still remains so misunderstood.”

The Dictatorship of the Proletariat

“No revolution can be made by a party, But by a nation [i.e. by everybody]” Karl Marx

The “dictatorship of the proletariat" is not a very useful term for socialists to use. It is unnecessary baggage for today’s socialists to carry. For a start when Marx was writing the term “dictatorship” didn't have the tyrannical connotations it does today. Marx didn't mean a dictatorship in the modern sense of the word. He meant a community in which the whole working class would set the political agenda and use the political machinery to act in it's interests. Writers like Hal Draper have addressed the authoritarian distortion of the term.

To-day it is loaded with prejudice and/or misunderstanding. Many now steer clear of employing the phrase because of the way it has been employed to justify despotism.

Marx writes in his Gotha critique “Between capitalist and communist society there lies the period of the revolutionary transformation of the one into the other. Corresponding to this is also a political transition period in which the state can be nothing but the revolutionary dictatorship of the proletariat."

So it is worth noting that he is not talking about an independent stage between capitalism and communism, but rather the period of revolutionary transformation of one into the other, rather than into some other system which is them transformed into communism. It is not yet socialism.

Perhaps the better term for socialists to use is “social democracy” which according to Rosa Luxemburg in Leninism or Marxism? pamphlet “begins simultaneously with the beginnings of the destruction of class rule and of the construction of socialism. It begins at the very moment of the seizure of power by the socialist party."

The dictatorship of the proletariat is the rule of the working class, not over the working class.
The Socialist Party does not seek the 'dictatorship of the proletariat', but the abolition of the proletariat!

A nice little nest-egg

Always the first to attack workers’ pensions rights, the capitalist class have one rule for us and another for themselves.
James Crosby and Andy Hornby – two of the three former HBOS chiefs damned by a parliamentary commission for “catastrophic failures of management” – were on pension schemes that accrued benefits at twice the rate of average workers.
The “executive section” of the HBOS pension scheme allowed them to pocket 1/30th of their final salary for each year they worked at the firm, compared with 1/60th for front-line staff.Hornby, eligible to start drawing down a £240,000-a-year HBOS pension when he turns 50 in four years time.

Ged Nichols, general-secretary of the Accord union, which represents HBOS staff, said the pension arrangements were “absolutely disgusting”. He said: “Even with James Crosby reducing his pension, for a front-line member of staff, they would still have to work for more than 20 years to get what Mr Crosby and some of the other former directors get as a pension for one year.”