Category Archives: class struggle

Workers’ Cooperatives as an alternative to capitalism – 1

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420389_494371703955556_1654331871_nIn October I was invited to speak at a meeting organised by the Glasgow South branch of Left Unity on the subject of workers’ cooperatives.  The post below is the first part of the text on which the speech delivered was based.  I would like to thank the comrades for the invitation and for the couple of pints in the pub afterwards.

 

The first thing I want to do is look at two problems to which I think workers’ cooperatives can play an important role in providing an answer.

In 2008 the Irish banking system was on the verge of complete collapse.  It had lent exorbitant amounts of money to commercial property development and for the construction of houses.  Not only finance but employment and state revenue became overly dependent on construction.  When the price of houses rose beyond a certain point, and when the commercial property market became saturated, the over-extension of property developers became evident in bad loans that bankrupted the banks.

This was an international problem because much of the financing of Irish banks came from Britain, the US and Germany for example.  The bankruptcy of the Irish banks would thus have had severe repercussions for investors in these and other countries, including the financial institutions in these countries.

To save the Irish banking system, to bail out the native bankers and foreign investors, the Irish Government launched a bailout of the banks through a state guarantee of all their liabilities, worth around €440 billion in an economy nominally producing €154 billion a year.  It was declared ‘the cheapest (bailout) in the world’ by the Irish Finance Minister.  This could not possibly be afforded and has so far cost an estimated €64 billion, although the exact figure is still a matter for development.

This bill and the huge budget deficit caused by the collapse of construction resulted in a series of attacks on working class living standards involving seven austerity budgets consisting of a variety of tax increases, cuts in public services and investment, the robbery of workers’ pension funds, massive unemployment, emigration and lots of praise from around the world at how well the Irish swallowed the austerity medicine.  From poster boy for the boom the Irish have become poster child for austerity.

In the following election the ruling Fianna Fail party was badly mauled and a coalition of Fine Gael and Labour Party was elected on the promise of a ‘democratic revolution’ and by Labour the promise it would reign in Fine Gael.  The vote was a choice between ‘Labour’s way or Frankfurt’s way.’

In truth however no one could really be surprised that this coalition continued and intensified the policies of austerity began by Fianna Fail.  That anyone thought differently demonstrated only a very low political awareness.

On the ‘left’ 5 United Left Alliance candidates were also elected and 14 Sinn Fein TDs out of a total of 166, although Sinn Fein had also voted for the bail-out.

In 2012 the Irish State was compelled to hold a referendum on the new EU Fiscal Compact that limited state deficits and debt.  It basically required signing up to continued austerity which is why it was called the ‘austerity treaty’.  Despite the unpopularity of austerity it was approved by 60% to 40%.  In my view a crucial reason for this was the complete lack of a convincing alternative.

What was the alternative proposed?

This consisted of a number of elements – repudiating the debt, opposing austerity, taxing the rich, and increasing public expenditure in order to improve public services, boost employment and further economic growth.

There are two points to note about this alternative – first it doesn’t change the nature of the economic system, it is what is called Keynesianism.  This does not mean that socialists should not support some of these measures, or point out the hypocrisy in their not being implemented.  But the question is, if the problem is capitalism and this alternative doesn’t threaten the system then quite obviously it cannot be a solution.

The second flows from this, because if it isn’t a solution would it actually work?  I’ll just take two examples from this programme – why on earth would the rich allow their wealth and income to be taken off them?  And how then could the state increase public sector investment when it was heading towards budget deficits of over 13%?

This illustrates a deeper problem with looking to the state as a solution.  This is because the burden placed on Irish workers was not simply, or even mainly, carried out by the banks and property developers.  It was the State that made their debts the debts of the Irish people and it has been the State that has increased taxes and cut services, making their own particular contribution to cutting wages and increasing unemployment.

Since the state is a capitalist state, funded and staffed at the highest levels by the propertied classes this can really be no surprise.  The actions of the capitalist state are not therefore the answer.  Not only does it not have any interest in providing a solution but it is incapable of being the solution.  State ownership, bureaucratic ownership, is not democratic and is totally unsuited to running productive activities the civil servants that staff it have no knowledge of.

There is no point calling for the state to nationalise the banks – they did and that was precisely the problem!

At bottom this is the root of the failure of resistance to austerity and is why it has not only failed in Ireland but in every other country affected by the financial crash.

The second point is connected to all this.  If the Keynesian alternative is not a road to socialism what is the road to it?

The alternative to the view that the capitalist state will reform society is that the state is actually the mechanism for enforcing oppression and exploitation and should therefore be smashed.  In this scenario of revolution the oppression of capitalist society breeds resistance which develops into a revolutionary seizure of power by the working class that then proceeds to build a new socialist society.  In this society the market is replaced by planning and capitalist economic crises become history.

But how are workers to become aware that their own ownership and control is the alternative?  How does it not only come to consciousness of this but is actually trained, ready and able to play this role?  How in the middle of crisis is a workers’ economy supposed to rise from the ashes more or less fully formed and present itself as a qualitative advance on what has went before?

Of course in some ways capitalism itself anticipates this planning through the growth of big business with advanced forms of planning within it, increased cooperation between companies that ostensibly are in competition and increased interdependency of different firms and different countries, encapsulated in the term globalisation.  This has all been demonstrated negatively through the simultaneous near collapse of the financial system, world trade and economic growth through the credit crunch plus the increased role of the state despite privatisation.

There is however one thing missing from this anticipation of the new society in the existing one and one thing missing from the scenario of revolutionary overthrow.

The missing factor is what the new society, the harbinger of socialism, actually is – the rule of the working class and its allies; the rule of the majority of society in place of the capitalist class and its managers, bureaucrats and politicians who all currently administer its rule.

Where in the anticipation of socialism within existing capitalist society is the growth of workers participation in running the economy, in preparation for taking over complete control?  Where are the grounds for workers to build a new society before, during and after revolution?  Where is the alternative that would avoid a new version of Stalinism where the State rules society rather than a society ruled by workers subordinating the state? Where even arises the motivation for workers to see that their own rule is the only valid unfolding of their resistance to the exploitation, oppression and iniquity of current society?

How are workers to come to see that it is they that not only can but must take control of society and its productive powers if they do not first take initial steps now through workers’ cooperatives?  Are we to believe they will suddenly come to realise through a revolution – an episode of at most a few years – that they must take over the economy?  How will they come to seek this as their solution unless many of them have already tried to do it and become committed to it?

 

The Politics of the Anti-Water Charges Campaign – Part 3

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2014-10-18_iri_4011307_I1An old military maxim is that no battle plan survives engagement with the enemy.  And so it proved when the Government thought it could impose water charges on a population ground down by austerity. Unfortunately for them a sizeable section of the Irish working class decided it had had enough and that this was one bite of austerity that wouldn’t be taken.

As I said in a previous post, it began to appear in the last few months that this was a battle the Government was losing.  The announcement of further drastic changes to the Government’s plans this past week suggests that this is even truer now.

The charge that was provisionally priced at €176 in July is now €60 and is €160 for households with two or more adults – if the charge is paid and an absurdly name conservation rebate of €100 is claimed.  The cap on charges will be in place until the end of 2018 with the promise of continuing caps thereafter.  The introduction of charges is postponed for three months to January 2015; late/non payment penalties will be €30 for a single adult and €60 for other households.  PPS numbers will not be required and trickle water restrictions will not be imposed, with promises that court action will not be taken against non-payment.  Privatisation of Irish Water is off the agenda with other promises that legislation will be introduced to require a plebiscite before such action could be taken in future.

The Right2Water campaign noted “that the level of charges has been significantly reduced” and the Socialist Party TD Ruth Coppinger, interviewed on RTE Six One News, noted that they were low.  The Socialist Party has claimed that the non-payment charges will kick in at the time of the next general election and will become the major issue within the election campaign but then make the argument that the Government won’t be able to impose them.

The argument of the campaign is that the water charges need to be scrapped, that promises of future low levels of charging are worthless, that Irish Water should either be scraped as well or else it should be retained in ‘public’ ownership, and that promises not to privatise it are also worth nothing.

The argument can also be put that for many working people €160 is €160 they already can’t afford and for others it will tip them significantly into financial hardship.  The amount is not a lot but its impact is so much more painful the less it can be afforded.

None of this however may be enough; for now it is the campaign that is faced with its battle plan’s survival after further engagement with the enemy.  A campaign that has highlighted the cost of water charges and the tactic of non-payment now has to answer when the cost has been significantly reduced and a credible promise is made that it will not be increased quickly.  Can the campaign be maintained and can it grow and develop?

The current weakness of enforcement measures means that non-payment may not immediately have the intimidatory effect that they might have had, but the flip side of this is that the cost of paying for many is no longer prohibitive.  As I noticed in the previous post, given European Commission clearance the amount of money involved for the State is not unmanageable.  It can afford to retreat on this.

So as things stand the victory is not complete, but then no success is ever permanent until the final victory.  One small part of austerity has been rolled back but the decisive question is how the success that has been achieved can be copper fastened and advanced.

There is no silver bullet as an answer to this question or even a combination of answers such as sunlight, garlic and a wooden stake through the heart of the vampire.

But we do know that the answer lies with those who have been mobilised in the Right2Water campaign and the militant and active campaigns that have been organised at a local level.

The immediate requirement is to make the campaign a real coherent movement with democratic functioning so that all those involved can contribute to deciding what their collective attitude is to the Government’s concessions and what they are going to do next.  No one is going to decide for them. If they have the power to put the Government into disarray they should and must have the power to make their own decisions.  See the initiative launched here.

It is likely the case that the issue of water charging is still the struggle that will unite active opposition to austerity and that other issues might accrete to the campaign at a local level but cannot do so as part of an overall policy unless and until the democratic organisation into a State-wide campaign has been achieved.

Time now gained can be used to campaign among the trade unions and workers to boycott and black charging and create a real campaign against water charging within the union movement.

Despite the reduction in charges there is no reason that non-payment should not be a part of the campaign.  It should not however be allowed to become a means of dividing those opposed to the charges and should not be made into a loyalty test of opposition.

This does not exclude putting it up to political parties to state their policy.  It is not the views of individual TDs or councillors that is the issue.  It is a political question, a question of tactics not a moral obligation that failure to live up to will mean eternal damnation.

Some on the left appear to want membership cards, justifying it by reference to the Labour Party having subscription charges.  I think this is misplaced and the necessity of having an organisation to belong to i.e. a real democratic state-wide organisation comes before the levying of membership charges.  Membership of what and what are my rights of membership in this organisation would be the first questions if a membership card was put in front of me

The comparison with Labour raises the question whether the campaign can be treated as a political party or at least a political vehicle that stands in elections.  This is a question particularly exercised by the Left whose reformist politics leaves no conception of an alternative to electoral intervention, tailor made as it is to sectarian competition.

The failure of the Left to unite despite minimal political differences disqualifies them as adequate vehicles for the workers involved in the campaign to join as a means for electoral intervention.

In relation to the water charges electoralism only has meaning if it has the potential to see those opposed to charges become a majority in the Dail. But even this is not enough since it has become obvious that the charges could be abolished with little respite from the rest of the austerity agenda.   Standing in an election requires an alternative to this and as I have posted before, the Left doesn’t have this alternative.

In this respect the weakness that is exposed by elections – that an anti-austerity majority will not be elected – means that a full political programme is not required for electoral intervention.  We won’t be the Government so we don’t need to pretend we will.

But this means understanding the limits of the intervention and not seeking to provide comprehensive answers that are thereby comprehensively wrong.  A more limited programme would make clear that the elections are subordinated to the campaign rather than the Left which has a shameful history of subordinating the campaign to electoral intervention.

This is therefore the first reason why the elections are important (although they should not form the basis of a timetable for activity now).  They allow an opportunity for the campaign to grow and develop; for the election to produce a bigger campaign at the end of it and not for the campaign to produce a bigger number of TDs.

The second aspect of this is that when the elections arrive they will be the biggest task facing the opposition to austerity and they therefore need an intervention by those opposed to it.  The scale and political programme that this challenge to austerity will pose will be determined by the political development of the campaign between now and the election.  This is another reason why a functioning campaign must be created as quickly as possible.