Reflections on the Russian Revolution 5

In 1921 Lenin wrote the following on ‘Concessions and the Development of Capitalism’:

“The Soviet government is inviting foreign capitalists to obtain concessions in Russia.”

“What is a concession? It is a contract between the government and a capitalist who undertakes to organise or improve production (for example, felling and floating timber, extracting coal, oil, ore, etc.) and to pay the government a share of the product obtained, keeping the rest as his profit.”

“Is it right for the Soviet government to invite foreign capitalists after expelling the Russian landowners and capitalists? Yes, it is, because, seeing that the workers’ revolution in other countries is delayed, we have to make some sacrifices in order to achieve a rapid and even immediate improvement in the condition of the workers and peasants. The sacrifice is that over a number of years we shall be giving away to the capitalists tens of millions of poods of valuable products. The improvement in the condition of the workers and peasants is that we shall immediately obtain additional quantities of petroleum, paraffin oil, salt, coal, farming implements, and so forth. We have no right to forego the opportunity of immediately improving the condition of the workers and peasants, for our impoverishment makes it essential, and our sacrifices will not be fatal.”

“But is it not dangerous to invite the capitalists? Does it not imply a development of capitalism? Yes, it does imply a development of capitalism, but this is not dangerous, because power will still be in the hands of the workers and peasants, and the landowners and capitalists will not be getting back their property. A concession is something in the nature of a contract of lease. The capitalist becomes, for a specified period, the lessee of a certain part of state property under a contract, but he does not become the owner. The state remains the owner.”

In this view, the proletarian nature of the state guaranteed the socialist character of an economic construction carried out upon the foundations of state capitalism.  The undeveloped and crisis conditions in Russia meant that the state capitalist foundations had themselves to be built under the workers’ own state in alliance with forms of state capitalism that involved individual capitalists, and including foreign capital.  In these circumstances “the worker will never be afraid of such
 a [capitalist] leader, because he knows that Soviet power is his power, that it will stand firm in his defense, and because he knows that he wants to learn the practicalities of organization.”  This was considered a requirement all the more pressing because of the low cultural level of the Russian working class we noted in our earlier posts.

One such collaboration shows what this might involve but also the differences within the Bolsheviks and the new state over the policy and its practical implementation.  In January 1918 the head of the Mining-Metallurgy Department of the Supreme Council of the National Economy (Vesenkha), reported discussions with Alexis P. Meshchersky, a self-made industrialist, 
on the formation of a metallurgical trust.

This would involve creation of a milliard-and-a-half ruble trust combining some 20 industrial enterprises to control approximately 60% of railway wagon and 85% of locomotive production, or 50-60% of Russia’s machine construction and metallurgical industries. Initially, Meshchersky offered the government one-third of the trust’s shares (corresponding to the number of enterprises to be included which were already nationalised) and the same representation on the central administrative board of the trust. Each factory would be run by a board consisting of the existing ‘specialists’ and a commissar representing Vesenkha.

The idea for the trust met with a positive response on the part of leaders in Vesenkha but opposition from some local metallurgical trade unions, who called for complete nationalisation of the factories involved.  Meshchersky then began to back off from his original proposal, in particular with regard to the relative proportions of private/state control.

Meshchersky was forced to reveal that almost 20% of the stocks in the proposed trust were in the hands of German banks and opposition to possible foreign control resulted in readjustment of the shares in the proposed trust from 60% private and 40% government to 50-50, 20-80, and finally to a 100% government share and complete control. However, included in this final proposal was a ‘loophole’ from which Meshchersky never retreated: that 20% of the shares be held in reserve to be returned to the original owners with accumulated dividends should the government ever offer the trust’s shares for sale. When Meshchersky refused further concessions, Vesenkha voted to break off the talks but to proceed with the formation of a unified metallurgical trust.

Vesenkha continued to circulate the Meshchersky proposal to unions and representatives of workers but while they supported creation of trusts or national syndicates they rejected Meshchersky’s proposal because he had refused from the beginning to cooperate with the trade unions and because of the potential influence of foreign capital in the trust.  Eventually Vesenkha nationalised the Sormovo-Kolomna industrial complex in June and other factories in November

Similar negotiations took place in the spring of 1918 between owners and managers of the sugar, textile, and leather industries and trade union representatives, which resulted in formation of a joint or state controlled trust.  The typical pattern for creating joint trust organisations in these cases involved the addition of trade union representatives to pre-revolutionary regulatory boards (usually privately initiated, state sanctioned organisations) which were authorized by Vesenkha to take control of the whole industrial branch.

Lenin cited these organisations as exemplary of state capitalism’s role in the transition period: “The situation is best among those workers who are carrying out this state capitalism: among the tanners and the textile and sugar industries, because they have a sober, proletarian knowledge of their industry and they want to preserve it and make it more powerful-because in that lies the greatest socialism.”

The pursuit of this state capitalist road reflected not only the relative backwardness of Russian capitalism exacerbated by war and economic collapse, but an analysis that socialism could only be built on the grounds of capitalism and not from simply ‘smashing’ the capitalist state and creating socialism ex nihilo.

In neither of these could Lenin be criticised for being wrong.  What was wrong was (1) that the weak development of Russian capitalism could not be overcome within Russia itself and socialism could neither be created through state capitalism (with a workers’ state place on top of it) nor could this stage be leapt over by going ‘straight’ to socialism and (2) the socialisation created under capitalism upon which socialism could be built was not limited to the centralisation and concentration of production by state capitalist trusts.

Back to part 4

Reflections on the Russian Revolution 4

The Bolsheviks faced the same problems as their Tsarist predecessors, caused by war and economic collapse.  It was their ideology that determined their particular responses.

This element of choice has nearly always been considered true in the case of the alternative policies advocated by Stalin and Trotsky in the dispute over the future course of the revolution.  This choice ultimately entailed the former’s forced collectivisation and the Great Terror.  The various policies pursued by the Bolsheviks during Lenin’s life showed that alternatives were possible before as well.  It is not the case that the conditions of crisis determined Bolshevik policies, rather than severely constraining them.

I’m reminded of the exhibition on art and the Russian Revolution held in the Royal Academy in London earlier this year, which felt more like a museum exhibition than an art gallery and which had an audio guide that, in its increasingly reactionary commentary, managed to both present the series of policies pursued after the revolution while implicitly condemning revolutionary single-mindedness.

Policies of War Communism, New Economic Policy (NEP) and forced industrialisation and collectivisation of agriculture were presented in such a terse and dismissive way that it would have been impossible for the untutored to make any great sense out of it; other than perhaps that the Bolsheviks capitulated to capitalism under the NEP and then turned 180° to ‘socialism’ (why did they not bother to do it in the first place?)

No appreciation was in evidence that socialism can only be built on the achievements of capitalism. Socialism is not an alternative route to ‘modernisation’, which has proved over the twentieth century to be a route not to socialism but to Stalinist dictatorships; or to ‘national liberation’ and an end to colonial rule, that has simply been a route to capitalist development through greater or lesser intervention by the state.

Some misconceptions derive from the mistaken views of the Bolsheviks themselves, which were understandable when they arose but indefensible now.

Less often noted, is that the Bolsheviks were not united or always very clear themselves on how socialism could be constructed in Russia, even allowing for a shared recognition that they could not ultimately be successful without successful socialist revolution in the more advanced countries in Europe.

In his speech at the First Congress Of Economic Councils in May 26, 1918 Lenin stated that “in such a gigantic task, we could never claim, and no sensible socialist who has ever written on the prospects of the future ever even thought, that we could immediately establish and compose the forms of organisation of the new society, according to some predetermined instruction and at one stroke.”

“The task which we set ourselves is a task of world-historic difficulty and significance.”

“Of all the socialists who have written about this, I cannot recall the work of a single socialist or the opinion of a single prominent socialist on future socialist society, which pointed to this concrete, practical difficulty that would confront the working class when it took power, when it set itself the task of turning the sum total of the very rich, historically inevitable and necessary for us store of culture and knowledge and technique accumulated by capitalism from an instrument of capitalism into an instrument of socialism.”

“All that we knew . . . was that transformation was historically inevitable and must proceed along a certain main line, that private ownership of the means of production was doomed by history, that it would burst, that the exploiters would inevitably be expropriated. This was established with scientific precision, and we knew this when we grasped the banner of socialism, when we declared ourselves socialists, when we founded socialist parties, when we transformed society. We knew this when we took power for the purpose of proceeding with socialist reorganisation; but we could not know the forms of transformation, or the rate of development of the concrete reorganization.”

“With the transition of all power . . . to a new class, and, moreover, to a class which for the first time in the history of humanity is the leader of the overwhelming majority of the population, of the whole mass of the working and exploited people—our tasks become more complicated.”

“We must build our economic edifice as we go along, trying out various institutions, watching their work, testing them by the collective common experience of the working people, and, above all, by the results of their work. We must do this as we go along, and, moreover, in a situation of desperate struggle and frenzied resistance by the exploiters.”

“We know . . . that organisation, which is the main and fundamental task of the Soviets, will inevitably entail a vast number of experiments, a vast number of steps, a vast number of alterations, a vast number of difficulties, particularly in regard to the question of how to fit every person into his proper place, because we have no experience of this . . .“

What preconceptions Lenin did have, which were reinforced by the social and political circumstances under which the revolution took place, were of the central role of the new state in construction of the new socialist economy, something taken for granted by many socialists since, but not at all obvious from a careful reading of Marx.

So Lenin could, at the beginning of his speech, say that:

“There is not the slightest doubt that the further the gains of the October Revolution go, the more profound the upheaval it started becomes, the more firmly the socialist revolution’s gains become established and the socialist system becomes consolidated, the greater and higher will become the role of the Economic Councils, which alone of all the state institutions are to endure. And their position will become all the more durable the closer we approach the establishment of the socialist system . . . After the resistance of the exploiters has been finally broken, after the working people have learned to organise socialist production, this apparatus of administration in the proper, strict, narrow sense of the word, this apparatus of the old state, is doomed to die; while the apparatus of the type of the Supreme Economic Council is destined to grow, to develop and become strong, performing all the main activities of organised society.”

This statist conception of economic construction viewed the increasing socialisation of the socialist economy as almost a linear continuation of the socialisation present and theorised in the existing capitalist economies.

Development of the capitalist system had involved monopoly, increasing domination by finance, and the increasing role of the state.  This form of capitalism was categorised as imperialism, the highest stage of capitalism.  According to Lenin, this had brought capitalism to the ‘threshold of the most complete socialisation of production. In spite of themselves, the capitalists are dragged, as it were, into a new social order, a transitional order from free competition to complete socialization’.

The ‘war has accelerated the development of capitalism, which advanced from capitalism to imperialism, from monopoly to state control. All this has brought the socialist revolution nearer and has created the objective conditions for it.”

However, the Russian Revolution took place in particularly unfortunate conditions and

“The capitalism described in 1903 remains in existence in 1919 in the Soviet proletarian republic just because of the disintegration of imperialism, because of its collapse.”

“If we had had an integral imperialism before us, which had entirely altered capitalism, our task would have been a hundred thousand times easier. It would have resulted in a system in which everything would be subordinated to finance capital alone. It would only have remained to remove the top and to transfer what remained to the proletariat.”

The transition from socialised capitalism to the socialisation of production under the rule of the working class was explained in this way: ‘as for the organizational form of work, we shall not invent it, but shall take it ready-made from capitalism: the banks, syndicates, the best factories, experimental stations, etc. …. Our problem here is only to lop away that which capitalistically disfigures this otherwise excellent apparatus and to make it still bigger, still more democratic, still more comprehensive.’

This view was contested by other leading Bolsheviks such as Bukharin and Osinsky.  For the latter, a Bolshevik policy of state capitalism as proposed by Lenin is ‘basically an unchanged continuation of the economic policies of capitalism’, and, therefore, ‘every attempt to establish a truly human society upon the old capitalist foundations is foredoomed.”

Lenin responded to critics in March, April and in May I918, elaborating the transition from capitalism to socialism as an extension of the ‘socialisation process’ begun under capitalism but now under proletarian authority and with new aims. He pronounced Bukharin’s and Osinsky’s reliance on his earlier work ‘State and Revolution’ and the slogan ‘smash the bourgeois state and economic apparatus’ as out of date: ‘this we have already done, it is a task which belongs to a previous day “

For Lenin “the possibility of building socialism will be determined precisely by our success in combining the Soviet government and the Soviet administrative organisation with the modern achievements of capital.”’

Back to part 3

Forward to part 5

Yes to self-determination for Scotland

alexapldev1I was in Glasgow a few weeks ago and was talking about the upcoming independence referendum to my daughter and sister who both live in Scotland, are eligible to vote and are keenly interested in the debate.  They had just watched the latest referendum debate on BBC Scotland during the previous week and we were discussing what they thought about it.

They are both undecided, one having been strongly No, and the other expressing the view that while her heart said Yes her head said No.  Neither had found the contributions from the two sides of the debate wholly convincing or even very enlightening and the claims and counter-claims had caused some confusion as to who was telling the truth.  All this in my view is an inevitable result of the proposal being put forward, which I will come to in a later post.

What was clear to both was that the Yes side was perceived as putting forward something positive, appeared to be expressing optimism and confidence, proposing something apparently constructive and forward-looking.  Whether it was at all persuasive was another matter but inevitably it is compared to the arguments of the No side, which are seen as almost purely negative.

I have written before that a political programme can only truly be judged on what it is for, not what it is against, and this appears as a problem primarily for the No side, which is composed mainly of the Labour Party and the Tories who can hardly present a coherent positive message together that goes much beyond the banal.  On the other hand the Yes side is dominated by the Scottish National Party.

It might be possible to argue that the first principle of politics should be that of the Hippocratic oath – to never do harm.  Thus if one thinks that Scottish independence is wrong that should be good enough to vote against it.  And so it should, except such an outlook would also have to have some view of the thing that is good which is impaired by independence.

The debate has revolved around the nature of the new currency, possible membership of the European Union, the strength of an independent Scottish economy and the view that an independent Scotland would in some sense be a fairer one.  There are a host of other reasons that again I will come to.

For a socialist the reason to support independence must be that in some way it is a move towards socialism, makes it easier to achieve socialism or at least results in a less onerous form of capitalism.

Since, not surprisingly, the debate has assumed no revolutionary change to the existing economic system, and those advocating independence as a route to socialism are very much a minority in the Yes camp, it is on the last ground – that independence will involve a less onerous form of capitalism – that it might seem most necessary to come to a view.

In my view this would be wrong.  Not because the immediate impacts for working people of independence of a still capitalist Scotland are unimportant but because socialism is necessary for workers even while it is not currently any sort of immediate possibility given the current weakness of the socialist and workers’ movement.  This is obviously, after all, a decision with long term consequences.

This weakness only demonstrates its importance negatively, through the fundamental problems of capitalism being essentially unaltered by the particular national form that capitalism takes.  This has been demonstrated by the effects of the financial crisis on a wide variety of countries and the political crises in the various parts of the world it has given a major impulse to, including most recently the Ukraine.  The financial crisis impacted on all capitalist countries and if one believes, as one should, that the underlying causes have certainly not disappeared but in fact only grown then the nature of the economic system remains the fundamental question regardless of the form of the state.

In this respect it is amusing to hear both sides’ claims in the referendum debate about the risks that would exist in an independent Scotland – when the Yes side point to the oil and the No side points to the very large banking industry that the Scottish state could not afford to bail out should another financial crisis break out.

What both sides do is invite comparisons which show how fundamentally similar the Scottish and wider UK economy are.  Oil could provide a larger revenue base for a Scottish State (at least for a while) and another financial crisis has the potential to blow it out of the water. The UK state would have a proportionately smaller revenue base from oil but would be proportionately less blown up.  What a choice.

A few days ago I came across another striking comparison of the Scottish and UK states here .

So it is on the basis that independence must in some way be a move towards socialism or makes it easier to achieve that a view on the independence vote must be taken, at least if one is convinced in some way by the need for socialism.  And this task involves raising the horizon of the debate in such a way that events that seem very far away, such as the Ukraine, can be incorporated into an understanding of the issues at stake.  It is commonplace to say that we live in an interconnected world, but just how is this world interconnected and how should it be connected?  At least it is obvious that the question of national independence raises these issues.

The standard view as understood by Marxists was recently set out in Boffy’s Blog here, repeating the words of Lenin about the view of Marxists (here called Social-Democrats) on the rights of nations to determine their own future, which applies to Scotland today:

“The Social-Democrats will always combat every attempt to influence national self-determination from without by violence or by any injustice. However, our unreserved recognition of the struggle for freedom of self-determination does not in any way commit us to supporting every demand for national self-determination.”

“As the party of the proletariat, the Social-Democratic Party considers it to be its positive and principal task to further the self-determination of the proletariat in each nationality rather than that of peoples or nations. We must always and unreservedly work for the very closest unity of the proletariat of all nationalities, and it is only in isolated and exceptional cases that we can advance and actively support demands conducive to the establishment of a new class state or to the substitution of a looser federal unity, etc., for the complete political unity of a state.”

The Scottish people therefore have the right to self-determination and the referendum gives them the opportunity to exercise that right.  How they do so is another matter and it is entirely possible for the exercise of the right to self-determination to mean continued unity with Wales and England.

The creation of a separate state is only one possible means of expressing self-determination and it would be a mistake to seek to measure the degree of independence attained as if some absolute and complete independence could be achieved.

This is not possible and seeking it only sets one off on an impossible nationalist quest for ‘real’ independence for a new Scottish state, which is doubly impossible for a small nation.  In other words absolute state self-determination is impossible, which means it can both permanently be put it on the agenda of nationalists, especially left ones, and leads to permanent failure.

Alex Salmond of the SNP has criticised the “bluff, bullying and bluster” coming from leaders of the Labour Party, Tories and Liberal Democrats, particularly their rejecting use of sterling by a new independent state.  The intervention of the later is of course all these things but Salmond and other nationalist are in no position to complain too much for this is also a ‘welcome to the world of nation states’ where bluff, bullying and bluster is the name of the game and the name of the game they seek to join.  Figures from the European Union have also weighed in to exercise their right to bully and the nationalist campaign seeks to be fully paid up and contributing members of the bullying club.

The meaning of the second part of Lenin’s argument – the self-determination of the proletariat in each nationality rather than that of peoples or nations – has been explained on this blog again and again and again.  It involves rejecting the view that socialism is the result of action by the state through, for example, it taking ownership of production or taxing the rich or spending more.  An examination of this approach in Ireland is set out here , here and here.

Self-determination of the proletariat means the creation of independent trade unions irrespective of workers’ nationality so that they can more forcefully mitigate the bullying and exploitation of capitalism – Scottish, British, Irish or otherwise – and the national divisions of workers promoted.  Such organisations are the means by which they can gain some control over their working lives.

This is taken further through the creation of workers’ cooperatives in which workers can free themselves of the bluster and bullying of owners and managers over whom they have no control and instead build the foundations of a new society based on equality of ownership and power.

It means creation of a political Party through which they can educate themselves about the bluff, bullying and bluster of current politics and find within it a basis for struggling for the creation of a new society that fulfills their desires because it is their creation.

It should therefore be obvious that the self-determination of nations, which is defined and relies on the independent power of the state, is not at all the same as the self-determination of the working class, which is not divided by nationality and is not subordinated or defined by the state.  Not only are they not the same by definition but they cannot be reconciled.

The experience of Ireland is that even the most militant nationalist movement does not lead to socialism even when it is based on a struggle against oppression.

So where does this leave the socialist argument for Scottish independence?  Well, the relationship between independence and the self-determination of the working class involves a number of questions and I shall take these up in future posts.

Lenin and nationalisation

144px-Lenin_perfilIn an earlier post I outlined the founders of Marxism opposition to confusing socialism, or the road to socialism, with capitalist state ownership.  I wanted to follow that up with a look at the views of Lenin.  When I did it would appear that the argument of opposition to state ownership is not advanced, in fact it is contradicted, and at best it might have to be modified.

This is because in the middle of the Russian Revolution, in fact in the weeks before the October revolution, Lenin wrote ‘The Impending Catastrophe and how to Combat it’ which sets out what appears a completely different approach.

The first thing that struck me about this short document is the title.  It does not promise a solution.  It does not declare ‘The Impending Catastrophe and how to Solve it’.  In fact the first sentence states ‘unavoidable catastrophe is threatening Russia’.  With all due regard to the much less severe crisis currently affecting Ireland there is something to be learnt from accepting that the job of socialists is not always to promise pain-free solutions to workers but to persuade them that they have to fight.

The problem is stated concretely and what’s more it is stated that everyone knows and says what the solution is.  This is “control, supervision, accounting, regulation by the state, introduction of a proper distribution of labour-power in the production and distribution of goods, husbanding of the people’s forces, the elimination of all wasteful effort, economy of effort.  Control, supervision and accounting are the prime requisites for combating catastrophe and famine. This is indisputable and universally recognised.”

Lenin proposes nationalisation of the banks but makes no claim that this is any sort of confiscation of private property.  In fact he is keen to emphasise how little difference it makes in this respect:

“If nationalisation of the banks is so often confused with the confiscation of private property, it is the bourgeois press, which has an interest in deceiving the public, that is to blame for this widespread confusion.”

“The ownership of the capital wielded by and concentrated in the banks is certified by printed and written certificates called shares, bonds, bills, receipts, etc. Not a single one of these certificates would be invalidated or altered if the banks were nationalised, i.e., if all the banks were amalgamated into a single state bank. Whoever owned fifteen rubles on a savings account would continue to be the owner of fifteen rubles after the nationalisation of the banks; and whoever had fifteen million rubles would continue after the nationalisation of the banks to have fifteen million rubles in the form of shares, bonds, bills, commercial certificates and so on.”

However he states that having done so “it is impossible to nationalise the banks alone, without proceeding to create a state monopoly of commercial and industrial syndicates (sugar, coal, iron, oil, etc.), and without nationalising them.”  Again the limitations of what is involved is stated – “All that remains to be done here is to transform reactionary-bureaucratic regulation into revolutionary-democratic regulation by simple decrees providing for the summoning of a congress of employees, engineers, directors and shareholders, for the introduction of uniform accountancy, for control by the workers’ unions, etc. This is an exceedingly simple thing, yet it has not been done! . . . and this could and should be done in a few days, at a single stroke.”

Where, as in the oil industry, the owners sabotage these plans and production generally Lenin proposed that they may have their property confiscated.  While all this was to be the task of the revolutionary-democratic state “the initiative of the workers and other employees must be drawn on; they must be immediately summoned to conferences and congresses; a certain proportion of the profits must be assigned to them, provided they institute overall control and increase production.”

The purpose was to increase production and stave off complete economic collapse and consequent famine, which was made all the more probable by the mismanagement and sabotage of the capitalist owners.  This required workers control, which meant workers supervision of existing management – not workers sole management and control never mind capitalist expropriation and workers ownership.  Abolition of commercial secrecy was proposed in order to make this control effective and democratic.  Under workers ownership the question of commercial secrecy would not arise as the owners with the secrets would be the workers.

Lenin was at pains to point out that what he was proposing was not socialism. “This is why I have already stated in Pravda that people who counter us with the argument that socialism cannot be introduced are liars, and barefaced liars at that, because it is not a question of introducing socialism now, directly, overnight, but of exposing plunder of the state .”

What he was proposing was not new.  “It might be thought that the Bolsheviks were proposing something unknown to history, something that has never been tried before, some thing “utopian”, while, as a matter of fact, even 125 years ago, in France, people who were real “revolutionary democrats”, who were really convinced of the just and defensive character of the war they were waging, who really had popular support and were sincerely convinced of this, were able to establish revolutionary control over the rich and to achieve results which earned the admiration of the world. And in the century and a quarter that have since elapsed, the development of capitalism, which resulted in the creation of banks, syndicates, railways and so forth, has greatly facilitated and simplified the adoption of measures of really democratic control by the workers and peasants over the exploiters, the landowners and capitalists.”

The exploiters, landowners and capitalists were not being abolished.  Indeed far from it.  They were to be organised!  Capitalism was to be developed!

“Compulsory syndication, i.e., compulsory association, of the industrialists, for example, is already being practised in Germany. Nor is there anything new in it.” The political opponents of the Bolsheviks were blamed for not carrying this out.  “Compulsory syndication is, on the one hand, a means whereby the state, as it were, expedites capitalist development . . . The German law, for instance, binds the leather manufacturers of a given locality or of the whole country to form an association, on the board of which there is a representative of the state for the purpose of control. A law of this kind does not directly, i.e., in itself, affect property relations in any way; it does not deprive any owner of a single kopek and does not predetermine whether the control is to be exercised in a reactionary-bureaucratic or a revolutionary-democratic form, direction or spirit. Such laws can and should be passed in our country immediately, without wasting a single week of precious time.”

The primary responsibility for implementation of this was to belong to the capitalists themselves.  “And it must be repeated that this unionisation will not in itself alter property relations one iota and will not deprive any owner of a single kopek. This circumstance must be strongly stressed, for the bourgeois press constantly “frightens” small and medium proprietors by asserting that socialists in general, and the Bolsheviks in particular, want to “expropriate” them—a deliberately false assertion, as socialists do not intend to, cannot and will not expropriate the small peasant even if there is a fully socialist revolution. All the time we are speaking only of the immediate and urgent measures, which have already been introduced in Western Europe and which a democracy that is at all consistent ought to introduce immediately in our country to combat the impending and inevitable catastrophe.”

So what are the political conceptions behind Lenin’s demands which he is clear do not amount to socialism?

“And what is the state? It is an organisation of the ruling class — in Germany, for instance, of the Junkers and capitalists. And therefore what the German Plekhanovs (Scheidemann, Lensch, and others) call “war-time socialism” is in fact war-time state-monopoly capitalism, or, to put it more simply and clearly, war-time penal servitude for the workers and war-time protection for capitalist profits.”

“Now try to substitute for the Junker-capitalist state, for the landowner-capitalist state, a revolutionary-democratic state, i.e., a state which in a revolutionary way abolishes all privileges and does not fear to introduce the fullest democracy in a revolutionary way. You will find that, given a really revolutionary-democratic state, state- monopoly capitalism inevitably and unavoidably implies a step, and more than one step, towards socialism!”

“For if a huge capitalist undertaking becomes a monopoly, it means that it serves the whole nation. If it has become a state monopoly, it means that the state (i.e., the armed organisation of the population, the workers and peasants above all, provided there is revolutionary democracy) directs the whole undertaking. In whose interest?”

“Either in the interest of the landowners and capitalists, in which case we have not a revolutionary-democratic, but a reactionary-bureaucratic state, an imperialist republic.”

“Or in the interest of revolutionary democracy—and then it is a step towards socialism.”

“For socialism is merely the next step forward from state-capitalist monopoly. Or, in other words, socialism is merely state-capitalist monopoly which is made to serve the interests of the whole people and has to that extent ceased to be capitalist monopoly.”

What Lenin is therefore saying is that the measures he proposes go no further in many cases than what exists in Western Europe but while implemented by a revolutionary-democratic state, i.e. not a workers’ state, they are a step towards socialism.  What is then decisive is the character of the state.

These measures gain their democratic and revolutionary character from the state – remember this is a state that has already resulted from a revolution, one that had overthrown a centuries-old monarchical regime, was headed by avowed Marxists and was subject to a situation of dual power where workers, soldiers and peasants organisations were vying for effective and official power with the institutions of this state.  How different is this from the idea that these measures, such as nationalisation, in themselves are socialist even when implemented by a right-wing government at the head of an established capitalist state implementing the diktats of the combined powers of European imperialism!

For the purposes of this very limited argument all this should be clear and its relevance and application to the political programme of today’s left also clear.

What concrete purpose does nationalisation of the banks serve in Ireland today?  Their nationalisation was the practical means to saddle the working class with the debts of large sections of the capitalist class.  This is obvious to everyone.  Is there any sign that the usefulness and correctness of this policy has been questioned?  Unfortunately not, instead the United Left Alliance demands “full nationalisation with direct public control of the banks”.  The same, but more so.  As was said of the Bourbon dynasty in France, ‘they had learned nothing and forgotten nothing’.

Related, but much wider, issues arise from this booklet by Lenin and the quotations cited that we shall not go into.  For example Lenin states: “that capitalism in Russia has also become monopoly capitalism is sufficiently attested by the examples of the Produgol, the Prodamet, the Sugar Syndicate, etc. This Sugar Syndicate is an object-lesson in the way monopoly capitalism develops into state-monopoly capitalism” and that “given a really revolutionary-democratic state, state-monopoly capitalism inevitably and unavoidably implies a step, and more than one step, towards socialism!”  This may gloss the undeveloped character of Russian economy and society as a whole.

Secondly the view that “if a huge capitalist undertaking becomes a monopoly, it means that it serves the whole nation. If it has become a state monopoly, it means that the state . . . directs the whole undertaking. In whose interest?  Either in the interest of the landowners and capitalists, in which case we have not a revolutionary-democratic, but a reactionary-bureaucratic state, an imperialist republic.  Or in the interest of revolutionary democracy—and then it is a step towards socialism.”  This takes a view that the state, even if “revolutionary-democratic”, can effectively act as the vehicle for working class emancipation without workers ownership of the means of production.  While Lenin calls for workers control we have seen how limited this is.  We have also to consider of course the long debate about the ambiguity of the formula of “revolutionary-democratic”.

It is not our purpose to debate these other issues here and regard must be had to the limited purposes of Lenin’s own booklet, the rather telescoped and formulaic end to it and his qualification that the revolutionary-democratic state tasks in relation to the economic crisis are “a step towards socialism” and not socialism itself.

The purpose of this post has rather been to set out that even where Lenin puts forward the demand for nationalisation it is not as a socialist programme but as one that is a precursor to it. In addition it assumes a state of a very different form and in a very different position from the one that many on the Left today call on to carry out tasks that should be those of the working class itself.