Brexit is an attack on the working class

This post was updated on 7 April to reflect the updated situation and to include some discussion on the impact of Brexit on Ireland.

The date set for the United Kingdom to leave the European Union, 29 March 2019, is now in the past. The Brexit deadline has been extended, and is likely to be extended again. MPs can’t agree on what a deal should look like, only that the deal presented by the government isn’t very good. Labour and the Tories are in negotiations with a view to finding common ground on a softer Brexit, but at the time of writing we still don’t have much clue what the outcome will be. Will Theresa May finally be able to get her deal through parliament? Might we leave with a ‘Norway-plus’ type of arrangement, retaining membership of the Customs Union and potentially the Single Market? Might we leave without a deal, leading to probable economic crisis and social chaos? Or could there be a lengthy postponement, or could the whole thing be cancelled?

Absurdly, much of this uncertainty comes down to seemingly insurmountable divisions within the Conservative Party, and to the government’s prioritisation of its own petty interests over those of the British people – not to mention a desperation on the part of the British ruling class to keep Jeremy Corbyn as far as possible from 10 Downing Street.

Of course, those of us on the left can’t control what ruthless Tory Brexiters do. What we can and should do is develop a reasonable, coherent strategy of our own; a strategy with the power to unite a wide array of forces with the critical mass to defeat the anti-democratic and anti-popular machinations of the Tories and their chums on the extreme right. In so doing, we can avert disaster and strengthen the position of the working class.

A united strategy needs to be based on a detailed and realistic understanding of what Brexit is and what class forces it represents. As it stands, this understanding is largely absent. The ‘remain’ side of the debate has been dominated by liberal/centrist voices, including the likes of Tony Blair, Chuka Umunna and others trying to leverage the political crisis to weaken Corbyn. The bulk of the non-Labour left – including the Communist Party of Britain, the Socialist Party, Counterfire, the Socialist Workers Party – has been promoting a ‘Lexit’ line based on a combination of misunderstanding and wishful thinking, and in some cases with a dose of chauvinism. Even within the Labour left and the trade unions, there’s a reluctance to really articulate a coherent progressive vision (or systematic opposition to Tory Brexit) owing to worries about alienating people in pro-Brexit Labour-voting constituencies.

Without this understanding and the strategy that flows from it, we’re sleepwalking into a nightmare that will strengthen the most reactionary elements of the ruling class and that could set back progressive forces for a generation.

This article will attempt to show that the Brexit project serves the interests of a tiny finance-capitalist elite; that it represents an attack on working class conditions and unity; that it strengthens rather than weakens imperialism; that it will lead to greater inequality and poverty; that it is, in fact, a neoliberal scam that could have a devastating impact on the poorer sections of British society.

Neoliberalism on steroids

From the point of view of the millionaires who funded the leave campaign, the purpose of Brexit is to allow business to escape the public protections the EU provides. (George Monbiot)

Millions of people voted for Brexit. Their motivations were many and complex – including an amorphous idea of “taking back control”, old-fashioned xenophobia and anti-immigrant scapegoating, as well as a healthy middle finger to the smug status quo so amply represented by then-prime minister David Cameron. Very few of them voted for neoliberalism or deepening austerity; very few thought that the important thing was to reduce restrictions on big business such that it can exploit more ruthlessly and generate ever more fabulous profits. As Fintan O’Toole points out: “for most of those who voted for it, Brexit means a ‘return to the nation state’. But for many of those behind it, there is a very different ideal. They use this language because it is the only one that is politically viable. But for them the exit from the EU is really a prelude to the exit from the nation state into a world where the rich are truly free because they are truly stateless” (Heroic Failure: Brexit and the Politics of Pain, Apollo, 2019).

For many left-wing supporters of Brexit, the whole point is to break with neoliberalism, not strengthen it. They see the EU as the standard-bearer of free-market fundamentalism in the present era, forgetting that, within Europe, Britain was the first country to enthusiastically venture into the brave new world of massive deregulation. In the early 1980s, it was Ronald Reagan, Margaret Thatcher and Bob Hawke that led the neoliberal charge. Indeed, it took quite a long time to convince continental Europeans to pick up the baton. While Britain participated in the process of European integration through the development of the European Economic Community (EEC) and then the EU, this participation was always reluctant and partial, precisely because of British capital’s distrust for the relatively softer, more regulated version of capitalism pursued on the continent. Nothing could reconcile Thatcher and her friends to the concept of a “platform of guaranteed social rights”.

Even today, after a quarter of a century of deepening alignment with the new economic orthodoxy, France and Germany are far less ‘business-friendly’ environments than Britain (both charge around 30 percent corporation tax, for example). While the UK ranks 7th globally in the Heritage Foundation’s Index of Economic Freedom, Germany ranks 24th and France 71st.

The EU mandates a level of protection for workers, it restricts off-shoring and tax avoidance, and it attempts to regulate the activities of the big banks. When the EU proposed a ‘Tobin tax’ on financial transactions in 2013, it was the British government that led the opposition to anything that limited the profits of the mega-rich. Boris Johnson, then London’s mayor, was viciously opposed to any increase in the EU’s regulatory reach: “We cannot allow jobs, growth and livelihoods to be jeopardised by those in the EU who mistakenly view financial services as an easy target.”

Jeremy Corbyn was 100 percent correct when he pointed out that “people in this country face many problems, from insecure jobs, low pay and unaffordable housing to stagnating living standards, environmental degradation, and the responsibility for them lies in 10 Downing Street, not in Brussels.”

‘Taking back control’ doesn’t mean assigning any new powers to the ordinary people of Britain. It means reducing EU regulations on British business. The idea isn’t even to reassign these powers to Whitehall but to get rid of them altogether. In a world where multinational corporations and financial institutions are too big to be subjected to any meaningful pressure by national governments like the UK, freeing themselves from supranational regulatory bodies like the EU means freeing themselves from oversight. It’s not just ‘small government’, it’s no government.

Few have articulated this fundamentalist Thatcherite vision more clearly than Nigel Lawson, former Chancellor of the Exchequer and president of the fanatically pro-Brexit ‘Conservatives for Britain’ pressure group. Writing in the Financial Times in September 2016, he complains bitterly that while “the Thatcher government of the 1980s transformed the British economy … through a thoroughgoing programme of supply side reform, of which judicious deregulation was a critically important part”, this process was limited by the “growing corpus of EU regulation”. Now, however, “Brexit gives us the opportunity to address this; to make the UK the most dynamic and freest country in the whole of Europe: in a word, to finish the job that Margaret Thatcher started”.

The Brexit engineers are involved in the construction of a Thatcherite neoliberal paradise that will bring fabulous profits to a few capitalist buccaneers, and ever-increasing misery to those at the bottom of society.

A boost for the Atlanticists

Brexit was not, to my mind at least, a choice between the EU and ‘independence’, but a choice between staying part of a flawed union or choosing to deepen ties with the American Empire and continue the ‘Americanisation’ of the British economy. If Britons wish to learn what a US-style healthcare service looks like, they are free to talk to any poor American (Akala, Natives: Race and Class in the Ruins of Empire, Two Roads, 2018).

There’s a widespread assumption that the British ruling class is overwhelmingly opposed to Brexit. This is not the case; the ruling class is deeply divided on Brexit. The line of division is essentially between a relatively European-aligned section of British capitalism and a relatively US-aligned ‘Atlanticist’ section. This reflects deeper economic and strategic divisions: the Atlanticist ruling class is more connected to finance capital, to the military-industrial complex, and to Big Oil; its political orientation is closer to an openly aggressive, racist Trump-ism than to the relatively more sophisticated approach of Obama or Merkel. The last time this division was manifested so starkly was in 2003, when the British ruling class was split as to whether to join the US war on Iraq or to support the French/German position against the war.

The leading pro-Brexit politicians – Boris Johnson, Michael Gove, Nigel Farage, Jacob Rees-Mogg, David Davis, Liam Fox, Dominic Raab, Iain Duncan Smith and Steve Baker – are all noted Atlanticists. Liam Fox for example has consistently maintained a pro-US orientation, including strongly favouring close military alliance. His charity, Atlantic Bridge, exists to promote close coordination between the Conservative Party and the hard-right Tea Party nutcases in the Republican Party. Boris Johnson is a wholehearted supporter of Making America Great Again, close with both Donald Trump and Steve Bannon. Trump, Bannon and John Bolton are all fond supporters of the Brexit project, as is Rupert Murdoch. The multi-millionaire financiers of the Brexit campaign – people like Arron Banks, Peter Hargreaves, Peter Cruddas, Stuart Wheeler, Michael Hintze, Martin Bellamy, Jon Moynihan and Robert Hiscox – all favour closer links with the US. They are certainly not motivated by any overarching desire to weaken imperialism or empower the working class.

Brexit is a key component of Trump’s ‘America First’ strategy. It’s instructive that the Heritage Foundation, a highly influential neoliberal think-tank in the US and a major force in the Trump administration, has lobbied for Brexit over the course of over a decade on the basis that it will strengthen the US’ hand in the global economy and help to weaken the EU. British political analyst TJ Coles gives a helpful summary of Heritage’s changing attitude towards the EU: “The Heritage Foundation describes America’s initial interest in a United Europe as a bulwark against the Soviet Union… As there is now no Soviet Union, there is no need for a United Europe. A regulated European Union, which erects barriers to US products and services (such as labels identifying genetically-modified foods and regulations against privatisation) is bad for America’s corporate profits. After the financial crisis of 2008, Europe’s central command in Brussels started regulating financial markets in an effort to prevent another crash. The Heritage Foundation report analyses America’s efforts to use Britain as a ‘Trojan Horse’ to push through state deregulation in Europe. As Britain was not powerful enough to do this, America felt that a weakened Europe would better serve its financial and trade interests” (The Great Brexit Swindle, Clairview, 2016).

Leaving the EU Single Market, Britain will not suddenly become a major economic player in its own right; its economic strength and geographic location make that impossible. With the imposition of tariffs between Britain and its biggest trading partner, Britain will be forced to look elsewhere for a major trade deal. That means, first of all, a ‘free trade agreement’ with the US, the terms of which will be dictated by the latter. As Tom O’Leary writes, “the terms of negotiations between the UK and US will reflect the real relationship of forces between the two economies. The US economy is approximately 6.5 times greater than the UK economy… For the Trump negotiators, there are ten economies in the world whose GDP is greater than or more or less equal to that of the UK (on a PPP basis). It will be the UK which is desperate for a deal, not Trump… Any new deal is unlikely to compensate for the lost trade with the EU and will come at a significant price, in terms of workers’ rights, environmental protections, consumer safeguards and the privatisation of UK public services.”

Deepening division of the working class

It is sometimes easier to blame the EU, or worse to blame foreigners, than to face up to our own problems. At the head of which right now is a Conservative Government that is failing the people of Britain (Jeremy Corbyn, April 2016).

Polling has consistently shown that anti-immigration sentiment was the one of the key motivating factors in the Brexit referendum. A fairly typical study found that nearly three-quarters of Leave-voters were worried about immigration levels. Brexit campaigners shamelessly leveraged this latent xenophobia, with Nigel Farage’s infamous ‘breaking point’ poster being a particularly nasty example, along with Boris Johnson and Michael Gove repeatedly using Turkey’s aspiration of EU membership as a pro-Brexit scarecrow. As Aditya Chakrabortty pointed out, “One didn’t need especially keen hearing to pick that up as code for 80 million Muslims entering Christendom.”

This type of message was particularly effective, since it was essentially a reiteration of the racist language of the Tory mainstream. A study by Kings College London found that media coverage of immigration issues “more than tripled during the ten-week Brexit campaign, rising faster than any other political issue and appearing on 99 front pages, compared with 82 about the economy. Most of these front pages (79) were published by pro-leave newspapers.”

Although Theresa May campaigned (very half-heartedly) to remain in the EU, she didn’t feel strongly enough about it to counter anti-immigrant propaganda, instead choosing to suppress multiple studies showing that immigration doesn’t lead to lower wages. Plus of course she was the architect of the ‘go home’ vans, the hostile environment, and the chief culprit of the Windrush debacle. The Remain campaign was mainly defensive on the issue of immigration, choosing not to promote an anti-racist narrative. Of the prominent Remain supporters, it was only Jeremy Corbyn and his close circle in the shadow cabinet – along with the SNP, Greens and Plaid Cymru – that actively defended immigration. When they did so, they were either ignored or ridiculed by the press.

Fintan O’Toole writes that the Brexit vote “depended on an ostensibly improbable alliance between Sunderland and Gloucestershire, between hard old steel towns and rolling Cotswold hills, between people with tattooed arms and golf club buffers” (op cit). This unlikely convergence was mediated by decades of anti-immigrant rhetoric; of old-fashioned scapegoating that blamed immigrants for the problems of capitalism.

Survey data indicates that a significant majority of the British population would like immigration numbers to be reduced, presumably believing – incorrectly – that immigration adversely impacts quality of life. This prejudice contributed more than any other single factor to the Leave vote; there’s absolutely no chance a majority would have voted for Brexit were it not for the promise of reduced immigration. This was recognised by Britain’s ethnic minority communities, which invariably voted in large majorities to remain in the EU. The racism of the Brexit campaign is demonstrated with appalling clarity by the staggering increase in hate crime incidents in the weeks following the referendum.

Taking charge of the Brexit negotiations, Theresa May made it clear from the beginning that her priority was to restrict freedom of movement. Brexit means Brexit means xenophobia.

This xenophobia is not of course exclusively connected to Brexit; it was leveraged by the Brexiters in order to win the referendum, but it has a broader political purpose for capitalism: preventing unity of a multicultural multi-ethnic working class. The specific form of racism surrounding the Brexit campaign also chimes with cultural changes in Britain in recent decades. The brutal, flagrant racism that was meted out in previous decades to Irish, Jews, African Caribbeans, Asians and others is no longer socially acceptable in the way it was. Instead we have what Ambalavaner Sivanandan described as ‘xeno-racism’ – “it is racism in substance, but ‘xeno’ in form. It is a racism that is meted out to impoverished strangers even if they are white.” Those immigrants “coming over here and taking our jobs” are nowadays less likely to be Asians and Caribbeans, but rather Romanian and Polish – not to mention Nigel Farage’s asylum seekers and Boris Johnson’s Turkish EU citizens. Brexit has managed to both leverage and deepen this racism, and in so doing has strengthened the hand of the most reactionary elements of British society.

Brexit will make workers poorer

Brexit will harm large sections of the British economy, and the cost of this damage will inevitably be borne by the working class, since the owners of capital can more easily shift their investments to those areas that aren’t affected. As TUC General Secretary Frances O’Grady notes: “Other EU countries buy huge amounts of British goods and services. But if it’s harder to sell what the UK makes in Europe, big global firms are likely scale down their operations. That would result in big job losses, especially in sectors like manufacturing where half of exports go the EU.” These manufacturing jobs, threatened by Brexit, are typically paid significantly better than their service sector equivalents, so “even if jobs lost were replaced, we’ll be left with worse jobs on lower wages.”

The EU is Britain’s largest trading partner, constituting 44 percent of exports and 53 percent of imports. The TUC estimates that over three million jobs in Britain are linked to trade with the EU. Outside the EU single market, it will be more difficult to sell products and services made in Britain and to buy products and services from elsewhere. In the short term, this puts essential imports such as food and medicine at risk – Britain imports around 40 percent of its food, for example, and the vast majority of this comes from the EU. In the longer term, it leads to reduced productivity and reduced participation in the international division of labour. Tom O’Leary writes that, post-Brexit, “the economy will be operating behind a series of tariff and non-tariff barriers as others protect their markets. All of these will make the economy less competitive and will increase costs.” This cannot but have a detrimental effect on living standards.

EU funding in Britain will end immediately with Brexit. This will have a disproportionate impact on the poorer regions of the UK, particularly in Cornwall, Wales, Scotland and Northern Ireland. Even more significant would be the effect on public finances due to businesses closing or moving away from Britain, as well as from reduced immigration. The Economist puts the case bluntly: “Britain exports old, creaky people and imports young, taxpaying ones. More than 100,000 British pensioners live it up in sunny Spain; meanwhile, up to 100,000 working-age Spaniards brave the British cold… The government’s fiscal watchdog suggests that by the mid-2060s, with annual net migration of about 100,000, public debt would be roughly 30 percentage points higher than if that figure were 200,000. Taking back control comes with a whopping bill.” Beyond fiscal revenue, reduced immigration means a lack of people to do important work. For example, the staffing crisis in the NHS is expected to get much worse with Brexit.

For the myriad flaws of the EU, membership has brought some crucial benefits to British workers. As Jeremy Corbyn has pointed out, “there was no limit on working time for workers in Britain until the Working Time Directive, which also provided for rest breaks. Our rights to annual leave were underpinned by the EU too; we would not have a right to 28 days’ leave without that membership.” EU regulations mean that part-time workers (predominantly women) have equal rights with full-time workers; that a million temporary workers have the same rights as permanent workers. Freedom of movement means that these terms can’t (legally) be undercut within the EU – so ending freedom of movement would significantly deepen the ‘hostile environment’ in terms of labour rights for immigrants.

In the same 2016 speech, Corbyn pointed out that the most ruthless exploitation in Britain is not the result of EU neoliberal policy; in fact most EU countries are far better than Britain in terms of workers’ rights. “If we want to stop insecurity at work and the exploitation of zero hours contracts why don’t we do what other European countries have done and ban them? Zero hours contracts are not permitted in Austria, Belgium, Czech Republic, Denmark, France, Germany, Hungary, Italy, Netherlands, Poland and Spain.”

Outside the customs union, Britain will need to negotiate major trade deals. The most prominent of these is with the US, which will be well placed to exact horrific terms, including opening up much more of the NHS and education system to privatisation. As TJ Coles writes, “a Britain unshackled from Europe would strengthen US-UK relations and weaken the EU in preparation for a regulatory assault by the US” (op cit).

Post-Brexit trade deals will almost certainly mean opening up the British market for dangerous produce. As it stands, the EU bans the import of US-produced items such as hormone-treated pork and beef, genetically-modified cereals, and chlorine-washed chicken. US capital and its Tory allies are desperate to put an end to these restrictions, and Brexit gives them the perfect opportunity.

Brexit means worse conditions for workers. More casualisation, more privatisation, less regulation, less union power, fewer restrictions on big business. This is exactly why a significant section of the British ruling class is so keen on Brexit, and why the rest of us should resolutely oppose it.

EU state aid rules are not the problem

The proponents of Lexit, both within and outside the Labour Party, have built their case primarily on the idea that EU regulations regarding state aid to industry will stand in the way of a programme of state-led investment and nationalisation. Labour leader Jeremy Corbyn has unfortunately lent credence to this theory.

There are three major problems with this. The first is a simple practical matter: Jeremy Corbyn is not the prime minister, and Labour is not in government. Efforts to change that situation are welcome and necessary, but it is very likely the Tories that will be implementing Brexit, and the Brexit they have in mind has nothing whatsoever to do with nationalisation and the redistribution of wealth. Quite the opposite. However problematic the EU state aid rules might be, the British post-Brexit government is highly unlikely to replace them with anything better.

The second problem is that Labour’s ‘Soft Brexit’ wouldn’t release Britain from EU state aid rules. The Labour leadership has repeatedly stated that its Brexit vision includes continued membership of a comprehensive customs union with the EU. The chances of the EU signing up to such a deal whilst allowing exemptions on its core elements are approximately nil.

The last obvious problem with the idea that EU state aid rules get in the way of public ownership is that it’s not actually true. Britain’s relentless privatisation over the course of the last 40 years has been pushed by successive British governments; it has been cooked up in Whitehall, not Brussels. In fact, as TSSA general secretary Manuel Cortes notes, “Britain spends far less than the EU average on state aid. If Britain were to match the proportion of spending of Denmark it would mean an extra £24 billion a year; if Britain matched Hungary, we would spend an additional £34 billion.”

George Peretz QC, a barrister specialising in public law and tax issues, writes that, “as far as nationalisation is concerned, EU law raises no objection. Anyone who knows the continent knows that in most countries most operators in the sectors mentioned by Corbyn [postal services, water, railways and banks] are state-owned… Many member states have been able to provide large subsidies to their rail and postal operators to ensure high quality universal services… What the state aid rules prevent is ill-targeted aid, such as the money repeatedly thrown down the black holes of national flag carriers or tax exemptions given to large multinational companies in return for locating in the state concerned.” In short, the EU state aid rules would have little or no impact on the progressive programme of state-led investment envisaged by Jeremy Corbyn and John McDonnell.

Britain leaving the EU will not weaken imperialism

Another Lexit idea is that the EU – an organisation composed of capitalist countries – will be diminished by the UK’s departure, and therefore imperialism as a whole will be weaker. This rather ignores the fact that Britain was an imperialist country before joining the EU and will remain an imperialist country once it leaves. Because the UK will, for reasons described above, lean more towards the US (which by any reasonable definition represents the most aggressive form of imperialism on the planet in the present era), the balance of forces between imperialist blocs will be shifted somewhat, but not in a way that benefits the masses of the world seeking to free themselves from neocolonial domination.

Laughably, some of the leading Brexiters have talked about Britain’s departure from the EU paving the way for the establishment of an ‘Empire 2.0’ built on stronger trading links within the Anglosphere and the Commonwealth. This is the stuff of sheer nostalgic fantasy. In truth, as pointed out by Tottenham MP David Lammy, “leaving the EU will not free us from the injustices of global capitalism: it will make us subordinate to Trump’s US.” Britain is not a major player in the global economy any more; Brexit has come a century or so too late for these nutty delusions. If an ‘Empire 2.0’ were to come into being, “its centre would not be in London but in Washington. It would be an American, not a British empire” (O’Toole, op cit).

In foreign policy terms, Brexit stands to push Britain towards a more aggressively reactionary position. Ministers are already talking about how they’ll be able to ramp up sanctions against Russia, for example. Aligned to Trump’s US, Britain would be under intense pressure to join the sanctions regime against Iran, to support US policy on trade with China, and to scale back participation in global environmental cooperation. Defence Secretary Gavin Williamson has made it all too clear that “Brexit represents an opportunity for Britain to boost its global military standing in response to the threats posed by Russia and China”.

From a strategic anti-imperialist point of view, a relatively stronger EU and relatively weaker US would constitute a more favourable balance of forces; this much was recognised by Chinese president Xi Jinping in 2015: “China hopes to see a prosperous Europe and a united EU, and hopes Britain, as an important member of the EU, can play an even more positive and constructive role in the promoting the deepening development of China-EU ties.” The subtext is clear enough: a US-dominated unipolar world is the most dangerous possible scenario.

There is also the profoundly important issue of Ireland to consider. Brexit poses a serious threat to the Irish economy in both north and south, to the Good Friday Agreement, and to the wider cause of Irish unity and self-determination. The peace process has turned the hard border into a soft border, with an increasingly integrated economy and a much-reduced presence of the British armed forces on the streets of the north. These streams have fed into a powerful (albeit slow and winding) river headed towards peaceful reunification.

Brexit will inevitably affect economic cooperation between north and south, and, if the hard-Brexiters get their way, could well dismantle all the progress of the last two decades. A land border and customs checks would be extremely disruptive and would contravene the terms of the GFA. This would lead to rising dissatisfaction and, very likely, increased sectarian tensions. With a coalition of the Democratic Unionist Party and the Conservative and Unionist Party in power in Westminster – probably with an even more nutty right-wing leadership than at present – we could well see an increased presence of the UK armed forces, under the direction of an emboldened, militantly unionist government that wouldn’t hesitate to employ any measure in defence of the union. Various commentators have noted that a no-deal Brexit could mean a return to direct rule. There’s nothing anti-imperialist about that.

Remain and reform

None of this is to claim for the EU any progressive nature. The precursor organisation to the EU was formed as a bulwark against Soviet socialism and to represent the interests of US-dominated western capitalism in Europe. The need to provide European workers with an alternative to socialism meant that the European Economic Community tended to promote a relatively benign, social-democratic form of capitalism. With the decline and fall of the Soviet Union and its Central/East European allies, the neoliberal consensus seeped out of the Anglosphere and into the heart of Europe. As Fintan O’Toole writes: “Being angry about the European Union isn’t a psychosis – it’s a mark of sanity. Indeed, anyone who is not disillusioned with the EU is suffering from delusions. The slow torturing of one of its own member states, Greece, was just the most extreme expression of a desire to blame the debtor countries alone for the great crisis that hit the Eurozone in 2008” (op cit).

However, as noted above, the neoliberal consensus was not invented by the EU, and the EU is not responsible for imposing it on Britain. Within the EU, leftists in Britain are better placed to fight free-market fundamentalism across the continent. In the words of Manuel Cortes: “Solidarity means standing shoulder to shoulder with our sisters and brothers in socialist parties across the EU demanding a Europe for the many as an integral part of building a better world.” This was precisely the meaning of Corbyn’s “Remain and Reform” slogan. There are plenty of examples of a progressive agenda being successfully advanced within the EU; indeed, the various protections for workers currently embodied in EU regulations were won through continent-wide class struggle.

Where do we go from here?

The progressive project represented by Jeremy Corbyn’s leadership of the Labour Party could provide the basis for an unprecedented unity in this country. The NHS and the welfare state are among the best things the British people have created. We are well placed to expand and innovate in these areas, along with green energy, poverty alleviation, inequality reduction and scientific research; we can develop a global outlook that embraces multipolarity and opposes war. But any prospects for a successful socialist-oriented government in Britain would be seriously undermined by a Tory Brexit that would be accompanied by economic crisis, deep social divisions and a foreign policy designed by John Bolton.

It would be much better to remain in the EU than to proceed with this hard-right scam. It is the duty of all socialists and progressive people to do everything within their power to avoid a “hard Brexit” or a “no-deal Brexit”. Preferably this means remaining in the EU, but if this isn’t possible, we should work towards Brino – Brexit in name only. Labour has taken some steps towards that sort of position, pushing for a comprehensive, permanent customs union with the EU. However, the EU negotiators have repeatedly made clear that any customs union would be conditional on maintaining free movement of labour. The next critically important step for the Labour leadership and the trade unions is to unambiguously accept freedom of movement. That shouldn’t be difficult, because freedom of movement is a fundamentally positive thing. It benefits both immigrants and non-immigrants. The numbers show again and again that immigrants are net contributors to the economy. Indeed, our economy is heavily reliant on immigration. With freedom of movement, immigrants coming here from the EU are protected by EU-wide labour legislation which means they can’t be ruthlessly exploited at the levels British capital would like. If those protections were taken away, it would drive down wages and conditions for everyone. And besides the economic aspect, there is the basic political principle of promoting maximum unity of the working class. Any sheepishness or caginess about this issue feeds into a growing, dangerous trend of racism and xenophobia.

We should recognise the Brexit project as a multi-pronged attack on the working class, and we should take all necessary measures to defend ourselves against it.

New book: The End of the Beginning – Lessons of the Soviet Collapse

The series of articles about why the Soviet Union no longer exists has been compiled into a book and published by LeftWord books.

The paperback can be purchased on the Invent the Future shop or Amazon (delivers to UK, France, Spain, Germany and Italy) or directly from the publisher.

It is also available in Kindle format: US | UK | Australia | Canada.

Andrew Murray has reviewed it for the Morning Star.

Book review: Glyn Ford – Talking to North Korea: Ending the Nuclear Standoff

This article first appeared in the Morning Star on 28 November 2018.

Glyn Ford’s latest book, ’Talking to North Korea’, is that rarest of things: a helpful, sensible, balanced, interesting and informative book about North Korea.

Ford is a former Labour MEP and expert in international relations. He has visited Pyongyang over a hundred times, toured the entire country, and met with government officials at the highest level. He is therefore uniquely well placed to explain and contextualise North Korean politics, and to give pragmatic and thoughtful suggestions as to how to move the peace process forward.

The book does an excellent job of presenting Korean history and politics to a western audience that has become used to thinking of North Korea as dangerous, unpredictable and unhinged. Describing the decades of vicious Japanese colonial rule in the first half of the twentieth century, closely followed by a genocidal war waged by the US, Ford explains how these experiences created a profound sense of insecurity and distrust among the Korean people, particularly north of the 38th parallel, where the Democratic People’s Republic of Korea (DPRK) has been treated by the imperialist powers as an enemy state ever since its formation in 1948.

To this day, too few people are aware of the extremity of the violence enacted against the Korean people during the war of 1950-53. Ford gives a brief – but chilling – overview: “The US carpet-bombed and more or less levelled the North… More bombs were dropped on the North than on Germany in World War II… Many of the bombs contained napalm, used here as a weapon of mass destruction for the first time: the liquid petroleum jelly stuck like glue and burnt its victims alive. Oceans of petrol were poured over the civilian population, incinerating them in the tens of thousands.”

Also little known is that, in the decades following the end of the Korean War, the DPRK achieved remarkable economic successes. “Annual economic growth rates of 20 per cent or more throughout the 1950s and early 1960s made the North one of the fastest-growing economies in the world.” While the key economic and social questions remained unsolved in the South, the DPRK was able to expropriate Japanese colonial properties, enact a far-reaching land reform, introduce universal free education, achieve 100% literacy and bring in a comprehensive welfare system providing housing, health care, education, employment, maternity benefits, and pensions. For a people that had suffered the depths of poverty, and who had been denied educational opportunities, these were unprecedented advances.

The author takes a refreshingly balanced look at the DPRK’s nuclear weapons programme, which he describes as “an entirely rational response to the situation in which it finds itself.” That situation is characterised by the ever-present threat of US-imposed ‘fire and fury’, along with ongoing economic problems. Ford points out that, as long as North Korea feels vulnerable to a US-led regime change operation, it can’t be expected to de-prioritise its military deterrent; however, maintaining a massive standing army with conventional weapons was draining its economy, already suffering in the aftermath of the Soviet collapse, ageing infrastructure and ever-tightening sanctions. “Once it has its own nuclear deterrent, … resources and labour can then be shifted out of the military and into the civilian economy. Weapons of mass destruction are a necessary, if not sufficient, condition for kick-starting the North’s economy.”

Ford puts forward a realistic and sensible proposal for breaking the diplomatic deadlock over the DPRK’s nuclear weapons programme, based on engagement, respect and dialogue. Specifically he makes it clear that the DPRK will not give up its nuclear programme without cast-iron guarantees over its security and the normalisation of relations between it and the US. These conditions should be met, along with the lifting of sanctions and a commitment to helping resolve North Korea’s energy needs (perhaps via the light-water reactors that were meant to be supplied under the US-DPRK Agreed Framework of 1994). If the blanket of hostility were to be lifted, the DPRK’s leadership would certainly respond in kind with a transparent process of denuclearisation.

’Talking to North Korea’ is essential reading, a worthy successor to Selig Harrison’s similar but now slightly dated ‘Korean Endgame’.

Samir Amin: obituary

This article first appeared in issue 5 of Transform: A Journal of the Radical Left, November 2018.

On 12 August 2018, the global revolutionary movement lost one of its most outstanding thinkers. Born in Cairo in 1931, Samir Amin studied in Paris and received his early political education as a member of the French Communist Party. Moving back to Egypt in 1957, he worked as an economic advisor to the Nasser government before moving to Mali (1960) and then Senegal (1963). In 1975, he co-founded the Third World Forum, a network of intellectuals in Africa, Asia and Latin America, working to formulate models of development outside the context of imperialism.

Through his work and his writing, Samir Amin exercised significant influence on progressive governments and movements around the world, from China to Cuba, Venezuela to South Africa. The breadth of his influence is easily evidenced by the tributes that followed the announcement of his death, including from South Africa’s ANC, Venezuelan President Nicolás Maduro,1 and Bolivian President Evo Morales, who wrote that “the legacy of his ideals of social justice will be eternally acknowledged.”2

Overcoming Eurocentrism

Amin coined the term Eurocentrism in the mid-1970s to describe the ideology promoted by modern capitalism: a model that places Europe at the heart of global history and that considers (explicitly or implicitly) all human development to be of European origin, starting with the Greeks and Romans. Amin demonstrated, with great clarity and lucidity, how this ideology is leveraged to reinforce an actually existing global capitalism that consolidates wealth and power in Europe (and its Anglophone off-shoots) whilst perpetuating poverty and subjugation in Africa, Asia and Latin America.

Amin ruthlessly deconstructs the Eurocentric view of history, pointing out for example that Ancient Greece wasn’t in the slightest bit ‘European’ in its outlook; it was engaged in intense exchange of ideas and goods with Egypt, Mesopotamia and Persia (and to some extent China and India), at a time when Western Europe was “a backward and barbarous periphery”. It was only via the Crusades (in the 12th and 13th centuries AD) that the Italian towns were able to start asserting themselves as a global force, having won a monopoly on navigation in the Mediterranean.

Europe did not participate in the general development of the pre-modern system until very late, after the year 1000… At the dawn of the Christian era the population of Europe, including Italy, was about 20 million (8 per cent of the world population, less than 30 per cent of that of China, 50 per cent of that of the Middle East)… Until the year 1000 the productivity of European agriculture was greatly inferior to that of the civilised regions of China, India and the Middle East, and the continent still had no towns.3

By exposing the clear logical flaws of Eurocentric universalism, Amin was able to show that the dominance of modern global capitalism, far from being a permanent and pre-ordained set of affairs (or ‘end of history’), is the prodeuct of the very specific circumstances arising from Western Europe’s two major take-offs – at the end of the 15th century (the colonisation of the Americas) and the 19th century (the industrial revolution and the colonisation of much of the rest of the world). Once this ideology is challenged, it becomes far easier to visualise alternative political and economic systems to the Eurocentric nirvana of monopoly capitalism.

Critic of capitalism

Samir Amin made an in-depth analysis of modern wild-west capitalism – widely referred to these days as neoliberalism, but labelled more specifically by Amin as a “system of generalised monopolies based on an extreme centralisation of control over capital, accompanied by a generalisation of wage-labour”.4 This is different from the monopoly capitalism of a hundred years ago, in that “monopolies are now no longer islands in a sea of other still relatively autonomous companies, but are constitutive of an integrated system.” Even small and medium companies “are locked in a network of control put in place by the monopolies. Their degree of autonomy has shrunk to the point that they are nothing more than subcontractors of the monopolies.”5 Such a system is held in place throughout the globe via the monopolisation of technology, natural resources, finance, the media, and military capacity.

Although the capitalist class considers itself to be very modern and scientific, it has merely replaced a heavenly god with a metallic one. “‘Moneytheism’ has replaced monotheism. The ‘market’ rules like the ancient God.”6 This chimes with Marx’s biting observations about the ‘fetishisation’ of commodities under capitalism.

In the world of politics, this system of generalised monopolies is manifested as a “low-intensity democracy” in which people are encouraged to be passive, “devoid of authentic freedom, reduced to the status of passive consumers/spectators”. In essence Amin describes a plutocracy, with the nuance that “you are free to vote for whomever you want, because your choice has no importance”.7 This broadly correct assessment of course has its exceptions and caveats, and Amin was enthusiastic about the possibilities of Podemos and Syriza in terms of challenging the status quo in Europe.8

The long transition to socialism

In the same way that capitalism first developed within feudalism before breaking out of it, the long transition of world capitalism to world socialism is defined by the internal conflict of all the societies in the system between the trends and forces of the reproduction of capitalist relations and the (anti-systemic) trends and forces, whose logic has other aspirations – those, precisely, that can be defined as socialism.9

Although his analysis of capitalism makes for bleak reading, Samir Amin nonetheless remained a revolutionary optimist, a firm believer in a socialist future that will emerge – indeed is emerging – through the irreconcilable contradictions of capitalism. He vigorously rejected the idea that socialism has failed and that capitalist ‘liberal democracy’ has been permanently established as the pinnacle of social and economic organisation. As Vijay Prashad notes, “he was not interested in defeat”.10

In this framework, the retreats suffered by the socialist world – particularly the collapse of the European socialist states between 1989 and 1991 – should not be considered as the death of the socialist project, but rather as part of the inevitable ebb and flow of a complex historical trajectory that could take hundreds of years but which nonetheless has an inexorable tide. A similar idea was formulated by the Communist Party of China in response to the collapse of the USSR and the European people’s democracies. Deng Xiaoping famously observed in 1992: “Feudal society replaced slave society, capitalism supplanted feudalism, and, after a long time, socialism will necessarily supersede capitalism. This is an irreversible general trend of historical development, but the road has many twists and turns. Over the several centuries that it took for capitalism to replace feudalism, how many times were monarchies restored! Some countries have suffered major setbacks, and socialism appears to have been weakened. But the people have been tempered by the setbacks and have drawn lessons from them, and that will make socialism develop in a healthier direction. So don’t panic, don’t think that Marxism has disappeared, that it’s not useful any more and that it has been defeated. Nothing of the sort!”11

On the controversial subject of China and its role in the global transition to socialism, Amin displayed a clarity of understanding that is all too rare. In his recent writings, he spoke of China as “perhaps the only country in the world today which has a sovereign project.” That is: China is successfully pursuing its own development model, designed by its own government and not the institutions of international finance capital. “China is walking on two legs: following traditions and participating in globalisation. They accept foreign investments, but keep independence of their financial system. The Chinese bank system is exclusively state-controlled… That is the best model that we have today to respond to the challenge of globalist imperialism.”12 The results of China’s strategy have been “simply amazing. In a few decades, China has built a productive, industrial urbanisation that brings together 600 million human beings, two-thirds of whom were urbanised over the last two decades (almost equal to Europe’s population!). This is due to the plan and not to the market.”13

The indispensable nature of multipolarity

Samir Amin considered that, given the economic, political and ideological stranglehold imposed by western finance capitalism, the first step towards a globalised socialism was to encourage the development of a multipolar world: a world with multiple power bases; a set of geopolitical spaces in which political and economic control is exercised by the people of those spaces rather than by the European and North American elite; a world which will bring about “the defeat of Washington’s hegemonic project for military control of the planet”.14 Such an environment “makes possible the maximum development of anti-systemic forces.”15 Multipolarity is an increasingly popular concept, but Amin was a very early proponent, having first discussed it in his 1985 book Delinking: Towards a Polycentric World.

Amin witnessed and welcomed the left tide in Latin America, the rising cooperation between China and Russia, the establishment of BRICS, ALBA and other major projects of regional or south-south cooperation that are slowly breaking down hegemonism. However, he also recognised the possibility of a violent, unpredictable and irrational reaction to all this – such as the Make America Great Again lunacy of the current US administration. “The world now is in serious danger. The collective imperialism of the US, Western Europe and Japan are run by US leadership. In order to keep their exclusive control over the whole planet, they do not accept independence of other countries. They do not respect the independence of China and Russia. That is why we are about to face continuous wars all over the world. The radical Islamists are the allies of imperialism, because they are supported by the US in order to carry out destabilisation. This is permanent war.”

He went on to propose a clear strategic response: “Russia should unite with China, the Central Asian countries, Iran and Syria. This alliance could be also very attractive for Africa and good parts of Latin America. In such a case, imperialism would be isolated.”16

Taking Samir Amin’s work forward

Samir Amin was a brilliant and creative Marxist, an uncompromising anti-imperialist, a powerful voice for the oppressed, and a visionary of a socialist world. His work mapping the past, present and future of humanity is a weighty inheritance that the global progressive forces must now take forward.

  1. Via Twitter, 12 August 2018 ↩

  2. Via Twitter, 12 August 2018 ↩

  3. Samir Amin: Global History: A View from the South, Pambazuka Press, 2010 ↩

  4. Samir Amin: The Implosion of Contemporary Capitalism, Monthly Review Press, 2013 ↩

  5. Pambazuka: Audacity, more audacity, 2001 ↩

  6. Global History: A View from the South, op cit ↩

  7. The Implosion of Contemporary Capitalism, op cit ↩

  8. MR Online: Glory to the Lucid Courage of the Greek People, Facing the European Crisis, 2015 ↩

  9. Samir Amin, Russia and the Long Transition from Capitalism to Socialism, Monthly Review Press, 2016 ↩

  10. The Hindu: Death of a Marxist, 2018 ↩

  11. Deng Xiaoping, Excerpts from Talks Given in Wuchang, Shenzhen, Zhuhai and Shanghai, 1992 ↩

  12. Defend Democracy Press: Samir Amin: How to Defeat the Collective Imperialism of the Triad, 2016 ↩

  13. Monthly Review: China 2013 ↩

  14. Samir Amin, Beyond US Hegemony? Assessing the Prospects for a Multipolar World, Zed Books, 2013 ↩

  15. Russia and the Long Transition from Capitalism to Socialism, op cit ↩

  16. How to Defeat the Collective Imperialism of the Triad, op cit ↩

Is China the new imperialist force in Africa?

The recent high-profile summit of the Forum on China-Africa Cooperation (FOCAC), held in Beijing at the beginning of September, has inspired some familiar accusations in the North American and West European press: China is the new colonial power in Africa; China is attempting to dominate African land and resources; Africa is becoming entangled in a Beijing-devised debt trap; Chinese investment in Africa only benefits China; and so on.

This article addresses these accusations and concludes that they are based on shaky foundations; that China is by no means an imperialist power; that increasing Africa-China relations are of significant benefit to the people of Africa; that Chinese assistance and investment could well be the key factor in breaking the cycle of underdevelopment and poverty in Africa.

What is imperialism?

If we’re going to understand whether or not China is imperialist, it’s a good idea to agree what imperialism is, since the word suffers from fairly widespread misinterpretation. Based on the characteristics of imperialism outlined in Lenin’s classic study, Imperialism: The Highest Stage of Capitalism, many conclude that China is an imperialist country. After all, it has several enormous companies that could reasonably be described as monopolies; it has a handful of very large (state-owned) banks that have significant influence on investment; and it’s increasingly engaged in the ‘export of capital’, investing in business operations around the world.

However, it should be obvious enough that no definition of the word imperialism is useful if it doesn’t include the concept of domination. The word derives from the Latin imperium, meaning supreme authority, or empire. There is no imperialism without empire. Which is not to say that imperialism no longer exists now that the colonial era is (for the most part) finished; it’s perfectly possible to maintain a de facto empire, for example through participating in the domination of another country’s markets.

A reasonable, concise definition of imperialism is put forward by the political analyst Stephen Gowans: “imperialism is a process of domination guided by economic interests.”1 This process of domination can be characterised as “the activity, enterprise and methodology of building empires”. However, empires “can be declared and formal, or undeclared and informal, or both. Whatever form they take, empires are structures predicated on systems of domination, of one country or nation over another.” For example, the US has few actual colonies, but it unquestionably uses its enormous economic and political muscle to dominate other countries, with a view to creating conditions for its own capitalist class to more rapidly expand its capital.

The recently-deceased Egyptian economist Samir Amin describes how “the countries in the dominant capitalist centre” – by which he means the US, Europe and Japan – leverage “technological development, access to natural resources, the global financial system, dissemination of information, and weapons of mass destruction” in order to dominate the planet and prevent the emergence of any state or movement that could impede this domination. The vast accumulation of capital in the imperialist heartlands has its counterpart in a ‘lumpen-development’ in much of the rest of the world – “a dizzying growth of subsistence activities, called the informal sphere — otherwise called the pauperisation associated with the unilateral logic of accumulation of capital.”2

The US goes to considerable lengths to build a global economic order that suits its own interests, and in so doing it actively diminishes the sovereignty of other countries. The most extreme – but sadly not uncommon – example of this is imperialist war: using military means to secure economic and political outcomes, such as we have seen recently in Libya, Iraq, Afghanistan and Yugoslavia.

We can perhaps then condense the idea of imperialism down to a fundamentally unequal relationship between countries (or blocs of countries) at differing levels of development, with the more developed countries using their military and financial power to produce outcomes that favour themselves and harm the less developed countries.

If we can prove that China is involved in this type of activity – that it seeks to dominate foreign markets and resources, that it uses its growing economic strength to affect political decisions in poorer countries, that it engages in wars (overt or covert) to secure its own interests – it would then be reasonable to conclude that China is indeed an imperialist country and that its engagement with Africa is an example of imperialism.

What imperialism in Africa looks like

At this point we’ll take a brief look at what imperialism in Africa has looked like in the past. Perhaps, in so doing, we’ll stumble upon some characteristics that can also be found in China’s relationship with Africa today.

In his classic 1972 study How Europe Underdeveloped Africa, the Guyanese activist-scholar Walter Rodney catalogues Europe’s relationship with Africa from the early days of the transatlantic slave trade through to the post-colonial era. The story that emerges is one of systematic plunder and an active underdevelopment that helped to furnish European development.

Rodney notes that, in the 16th century, several areas of Africa were on a path of technical progress similar to, albeit slightly behind, Western Europe: “Several historians of Africa have pointed out that after surveying the developed areas of the continent in the 15th century and those within Europe at the same date, the difference between the two was in no way to Africa’s discredit. Indeed, the first Europeans to reach West and East Africa by sea were the ones who indicated that in most respects African development was comparable to that which they knew.”3

However, the European powers were able to use certain advances – most notably in the areas of shipbuilding and weapons manufacture – to establish a profoundly unequal trade relationship with Africa. This, along with the need to find a capable labour force for the new American colonies, laid the ground for the transatlantic slave trade, which is estimated to have denuded the African continent of up to half its population. Rodney poses the question: “What would have been Britain’s level of development had millions of its people been put to work as slaves outside of their homeland over a period of four centuries?”

The conversion of Africa into a resource pool for European capital was a powerful engine of European capitalist growth in the 17th, 18th and 19th centuries. As Marx famously wrote, “the discovery of gold and silver in America, the extirpation, enslavement and entombment in mines of the aboriginal population, the beginning of the conquest and looting of the East Indies, the turning of Africa into a warren for the commercial hunting of black skins, signalled the rosy dawn of the era of capitalist production.”4

The colonial occupation of Africa, which lasted from the 1880s until the wave of liberation in the second half of the 20th century, served to significantly deepen the economic subjugation of the continent. Enforced by a fascistic military repression – most notoriously in the Belgian colony of Congo, where natives’ failure to meet the rubber collection quota was punishable by death – European colonialism allowed for the most extravagant exploitation of African labour and natural resources, whilst offering practically nothing in terms of economic progress for the local population.

Empire apologists in Britain, France and Portugal occasionally insinuate a ‘good side’ onto their erstwhile empires – after all, were railways and schools not built? Yet the sum total of these things (which anyway were built specifically to meet the needs of the colonial masters) is vanishingly small – so much so that, “the figures at the end of the first decade of African independence in spheres such as health, housing and education are often several times higher than the figures inherited by the newly independent governments”. As Rodney observes, “it would be an act of the most brazen fraud to weigh the paltry social amenities provided during the colonial epoch against the exploitation, and to arrive at the conclusion that the good outweighed the bad.”

European colonialism contributed nothing to the technological or institutional development of Africa, because this would have created competition for European capitalism and impeded the far more important task of draining maximum possible wealth from the continent.

But imperialism in Africa is not just a thing of the past; it didn’t end with the independence of the former colonies. As Samir Amin writes: “The dominant capitalist centres do not seek to extend their political power through imperial conquest because they can, in fact, exercise their domination through economic means.”5 Since the 1980s, the principal mechanism of imperialist domination in Africa has been economic blackmail: international credit agencies obliging governments to sign up to harmful economic strategies. The most notorious (and typical) example of this is the Structural Adjustment Program (SAP); SAPs are loans from the IMF and World Bank, typically taken out in a crisis situation (in response to a drought, for example), and disbursed on the condition that the recipient country implement a packet of ‘neoliberal’ reforms – privatising key industries and resources, opening up markets to international competition, and liberalising prices.

The SAPs have been a disaster for Africa. Scarce resources such as water have been taken out of the public domain and placed in the hands of globalised privateers. Nascent industries, previously protected by governments trying to develop home-grown manufacturing, have been decimated, dreams of development dashed, and vast regions returned to a prostrate position in the global economy, supplying unimproved raw materials to a market they have no meaningful influence over.

This is imperialism, by any reasonable definition. Advanced western countries, often ganging up in order to achieve their aims vis-a-vis the poorer countries, force nominally independent states to undertake economic measures that are specifically designed to benefit those same advanced western countries. In the modern era, this is precisely what the underdeveloping of Africa looks like. And the results speak for themselves: “after nearly thirty years of using ‘better’ (that is, free-market) policies, Africa’s per capita income is basically at the same level as it was in 1980.”6

Mozambican independence leader Samora Machel, president from 1975 until his death (almost certainly at the hands of the apartheid South African security services) in 1986, spoke bitterly about the imperialist countries’ visions for post-colonial Africa: “They need Africa to have no industry, so that it will continue to provide raw materials. Not to have a steel industry. Since this would be a luxury for the African. They need Africa not to have dams, bridges, textile mills for clothing. A factory for shoes? No, the African doesn’t deserve it. No, that’s not for the Africans.”7

Various well-paid academics assert that western imperialism is a thing of the past, that Europe and North America have changed their ways, and that Africa is now treated as an equal. While it is palpably false that western imperialism is a thing of the past (is it not imperialism when Nato launches a war on Libya, plunging it into a state of chaos and desperate poverty, in order to remove a government that had consistently refused to adhere to the economic and political ‘rules’?), it’s true that Europe and North America are less reliant on the exploitation of Africa than they once were. This demonstrates only that imperialism can’t be separated from its historical context. Western Europe, North America and Japan have reached a level of productivity and technological advance such that outright plunder of other nations constitutes only a relatively small part of their economic activity; however, they reached this point to a significant degree owing to their ruthless oppression of less developed countries. Thus the designation of a given country as ‘imperialist’ necessarily includes a historical component.

Regardless of these subtleties, Euro-American imperialism maintains an active foothold in Africa today, via a combination of economic blackmail, political manoeuvring, military intervention, and military mobilisation.

A brief timeline of China’s engagement with Africa

After the establishment of the People’s Republic of China in 1949, the Chinese leadership moved quickly to create bonds of solidarity between China and the African liberation movements. China was a leading supporter of the Algerian war of liberation and an early supporter of the South African struggle against white minority rule. Nelson Mandela recounts in Long Walk to Freedom that he encouraged Walter Sisulu, then secretary-general of the African National Congress, to visit China in 1953 in order to “discuss with the Chinese the possibility of supplying us with weapons for the armed struggle.”8 The links made during this trip laid the ground for the establishment in the early 1960s of a Chinese military training programme for the newly-founded uMkhonto we Sizwe – the ANC’s armed wing. (An interesting aside: two currently serving African heads of state received military training in China in the 1960s: Eritrean president Isaias Afwerki, and Zimbabwean president Emmerson Mnangagwa.)

Chinese premier Zhou Enlai conducted a landmark tour of ten African nations between December 1963 and January 1964, during which he consolidated China’s anti-imperialist connection with some of the leading post-colonial African states. A few years later, China provided the financing and knowhow for the construction of the Tanzam Railway, which runs 1,860km from Dar es Salaam, the then Tanzanian capital and seaport, to central Zambia. Built with the primary purposes of fomenting economic development and helping Zambia to break its economic dependence on the apartheid states of Rhodesia and South Africa, the Tanzam has been described as “the first infrastructure project conceived on a pan-African scale”.9 It remains an enduring symbol of China’s friendship with independent Africa.

Well into the 1980s, dozens of large state farms were built in Africa as part of the Chinese aid programme – in Tanzania, Zimbabwe, Mali, Congo Brazzaville, Guinea and elsewhere. The US scholar Deborah Brautigam notes that, however, “during the 1970s and 1980s, the Chinese aid program shifted to emphasise much smaller demonstration farms, working with local farmers to teach rice farming and vegetable cultivation.”10

In the 1980s and 90s, partly reflecting shifting political priorities in China and partly in response to data indicating that many of the aid-constructed projects were no longer working very well (if at all), China started to put its engagement with Africa on a more commercial footing, focusing on mutually beneficial deals and joint ventures. China has since become Africa’s largest trading partner, with a total trade volume of $170 billion in 201711, well ahead of the US-Africa figure of $55 billion.12

In addition to trade, China also provides vast low-cost loans for infrastructure projects, with nearly $100 billion loaned to African states by Chinese state-owned banks between 2000 and 2015. A recent article in the Guardian notes that “some 40% of the Chinese loans paid for power projects, and another 30% went on modernising transport infrastructure. The loans were at comparatively low interest rates and with long repayment periods.” The article continues: “Chinese infrastructure projects stretch all the way to Angola and Nigeria, with ports planned along the coast from Dakar to Libreville and Lagos. Beijing has also signalled its support for the African Union’s proposal of a pan-African high-speed rail network.”13

Development, not underdevelopment

“We should jointly support Africa’s pursuit of stronger growth, accelerated integration and industrialisation, and help Africa become a new growth pole in the world economy.” (Xi Jinping)14

The most important point regarding China’s engagement with Africa is that it stimulates development rather than underdevelopment. In that crucial sense, it is profoundly different from the relationship that the US and the major European powers have had with Africa. China’s aid and investment packages promote host countries’ modernisation, technical knowhow and infrastructure. As it stands, manufacturing constitutes only 10 percent of value added in Africa. “Ghana sends cocoa beans to Switzerland, for instance, then imports chocolates. Angola exports crude oil and imports nearly 80 percent of its refined fuel.”15 This is an unsustainable situation that keeps Africa in a subservient position. Industrialisation is the indispensable next step, and this relies on infrastructure, technology and knowledge transfer.

As an aside: even if China’s ambitions were essentially predatory, its presence as an alternative source of investment is beneficial for African economies. Ha-joon Chang notes that, in the 1990s, China became a “major lender and investor in some African countries, giving the latter some leverage in negotiating with the Bretton Woods institutions and the traditional aid donors, such as the US and the European countries”.16

Beyond that, Chinese investment has made possible a fast-expanding infrastructure network that will underpin African economic development for generations to come. This includes railways, schools, hospitals, roads, ports, factories and airports, along with “new tarmac roads linking major regional hubs, including the various townships with proper connection to large cities”.17 By contrast, precious little US/British investment in Africa goes towards infrastructure.

In 2017, China funded over 6,200km of railway and over 5,000km of roads in Africa.18 Thanks in no small part to Chinese finance and expertise, Ethiopia last year celebrated the opening of the first metro train system in sub-Saharan Africa,19 along with Africa’s first fully electrified cross-border railway line, the Ethiopia-Djibouti electric railway.20

Lack of electrification is a major problem for most African countries. According to Deborah Brautigam, “the Latin American supply of electricity is 50 times higher, per rural worker, than sub-Saharan Africa’s”.21 Over 600 million people across the continent have no reliable access to electricity. Many of the biggest Chinese investment projects in Africa are focused on power generation – indeed, 40% of all Chinese loans to Africa last year went towards power generation and transmission.22 The bulk of this energy investment is in hydropower and other renewal technologies.23 For example, China’s Eximbank is providing 85% of the financing for Nigeria’s Mambila hydroelectric power project,24 which will constitute the country’s largest power plant, helping to get electricity to the approximately 40 percent of Nigerians that don’t currently have access.25 It was announced a few months ago that China Eximbank would also provide the bulk of the $1.5 billion funding for Zimbabwe’s largest ever power development project.26

Ngozi Okonjo-Iweala, Nigeria’s finance minister from 2003 to 2006 and from 2011 to 2015, notes that “China worked with us to get a balanced package of assistance that has helped build the light rail system in Abuja and four new airport terminals in Lagos, Port Harcourt, Kano and Abuja, among other projects.”27 She reflects on the possibilities for extensive cooperation between Africa and China in the realm of sustainable development: “Together, China and Africa make up one third of the world’s population. Increasing ties between the two could have a vast positive impact for the world’s economy and climate. China’s experiences and expertise should go a long way in helping African countries develop their renewable resources.“

Do Chinese state banks make these investments for purely altruistic reasons? They do not. “China is poor in natural resources, the notable exception being rare minerals, and as a consequence has no choice but to look abroad. Africa, on the other hand, is extremely richly endowed with raw materials, and recent discoveries of oil and natural gas have only added to this.”28 Deals are negotiated on a case-by-case basis with the two sides as equal partners. The whole arrangement has nothing in common with the west’s historic relationship with Africa. As the Zambian economist Dambisa Moyo writes, “the motivation for the host countries is not complicated: they need infrastructure, and they need to finance projects that can unlock economic growth… This is the genius of the China strategy: every country gets what it wants… China, of course, gains access to commodities, but host countries get the loans to finance infrastructure developmental programs in their economies, they get to trade (creating incomes for their domestic citizenry), and they get investments that can support much-needed job creation.”29

Many African countries are already benefiting greatly from their relations with China. As Martin Jacques puts it: “China’s impact on Africa has so far been overwhelmingly positive. Indeed, it is worth asking the question as to where Africa would be without Chinese involvement… China’s involvement has had the effect of boosting the strategic importance of Africa in the world economy.”

China is ploughing resources into educational cooperation with African countries, recently surpassing the US and UK to become the number one destination for anglophone African students (and second most popular destination overall, after France) – a dramatic increase that is explained in large part by “the Chinese government’s targeted focus on African human resource and education development”.30 In his speech to the recent FOCAC summit, Xi Jinping said China will “provide Africa with 50,000 government scholarships and 50,000 training opportunities” in the next three years.31 Even for students without scholarships, China is a popular destination for African students, because its tertiary education system is more affordable than the west’s, and is increasingly of comparable quality and prestige.

China also provides substantial medical aid to Africa, spending an estimated $150 million annually on malaria treatment, crisis response, medicine provision, and support for building hospitals and pharmaceutical factories. In response to the Ebola crisis in 2014, “China dispatched more than 1,000 medical professionals to West Africa, providing 750 million RMB ($120 million) in aid.”32

Non-interference

China has received no shortage of criticism owing to its willingness to work with states such as Zimbabwe and Sudan, which are subjected to boycotts and sanctions by the US-led ‘international community’. Such criticisms are hypocritical and vacuous. China has a long-standing position of non-interference in the political affairs of other countries. As far back as 1955, then-Premier Zhou Enlai sketched the Chinese vision of peaceful and cooperative development at the historic Afro–Asian Conference in Bandung: “By following the principles of mutual respect for sovereignty and territorial integrity, non-aggression, non-interference in each other’s internal affairs, equality and mutual benefit, the peaceful coexistence of countries with different social systems can be realised.”33

Such a position is quite obviously superior to the US/European system of active interference – ie imperialism. China doesn’t participate in or sponsor wars in Africa; it doesn’t engineer coups, subvert elections or finance political campaigns. China has committed no massacres in Africa, nor does it control any private armies. China has no record of assassinating African leaders, encouraging separatist movements, or creating political instability. It doesn’t maintain lobbyists or advisers whose job is to pressure African politicians. China has not demanded ‘structural adjustment’ in any of the countries it invests in; no privatisation, no deregulation, no demands for hollowing out government. China doesn’t use coercion or blackmail. It bids for contracts, and often wins them, mainly because its prices are fair, its costs low, and its quality of work high. In summary, “China appears wholly uninterested in assuming sovereign responsibility and particularly in shaping h social and political infrastructure of host nations”.34

At the recent FOCAC summit, Xi Jinping summed up the Chinese approach to engagement with Africa as follows: “The Chinese people respect Africa, love Africa and support Africa. We follow a ‘five-no’ approach in our relations with Africa: no interference in African countries’ pursuit of development paths that fit their national conditions; no interference in African countries’ internal affairs; no imposition of our will on African countries; no attachment of political strings to assistance to Africa; and no seeking of selfish political gains in investment and financing cooperation with Africa.”

The “five-no” approach is an explicit rejection of imperialist strategy. Rather than criticise China for its policy of non-intervention, it would be much better if other countries could follow its example.

Some common criticisms

Chinese companies only employ Chinese workers

An oft-repeated criticism of Chinese economic activity in Africa is that Chinese companies only employ Chinese workers. This is simply not true. In fact, China creates more jobs in Africa than any other investor.35 Deborah Brautigam, one of the few western China experts to base their work on actual data, writes that “surveys of employment on Chinese projects in Africa repeatedly find that three-quarters or more of the workers are, in fact, local.”36 This is consistent with the findings of Giles Mohan, whose team undertook extensive on-the-ground research in West Africa. “Contrary to the dominant assertion that Chinese companies operating in Africa tend to rely on labour imported from China, in most of the eighty-five Chinese enterprises we studied in Ghana and Nigeria, a substantial proportion, and often the majority, of the workforce was African.”37

South African president Cyril Ramaphosa recently spoke of South Africa’s experience with Chinese companies: “When China invests, it sends key managers, but the bulk of the people who do the work are South Africans.”38 Similarly, Namibian president Hage Geingob stated earlier this year that “no country in the world has added so much value to our products as China has. China has done a lot of technology transfer and job creation.”39

Early-stage projects, particularly in countries where China has little experience, tend to be staffed primarily by Chinese employees, but the clearly emerging pattern is for this ratio to be reversed over time.

China has caught Africa in a debt trap

A recent article by John Pomfret in the Washington Post describes Chinese investment strategy as “imperialism with Chinese characteristics”, and claims that “China’s debt traps around the world are a trademark of its imperialist ambitions.”40 Grant Harris, Barack Obama’s former adviser on Africa, writes that “Chinese debt has become the methamphetamines of infrastructure finance: highly addictive, readily available, and with long-term negative effects that far outweigh any temporary high.”41 Rex Tillerson, US secretary of state until his recent replacement by the even more hawkish Mike Pompeo, commented in March that “China’s approach has led to mounting debt and few, if any, jobs in most countries.”42

Such scare-mongering statements ignore the rather important detail that, “from 2000 to 2016, China’s loans only accounted for 1.8 percent of Africa’s foreign debts, and most of them were invested in infrastructure.”43

Investment generally entails some level of debt; the question is whether African countries are getting a good deal. Chinese investment is welcomed across the continent, since it is overwhelmingly directed towards essential projects: developing infrastructure, building schools, building hospitals, cleaning water, supplying electricity, building factories. As a result, the needs of ordinary Africans are being met, and the debts are typically repaid in a sustainable (and fairly negotiated) way using the host countries’ natural resources.

Chinese loans tend to be significantly lower interest than the equivalents from the Bretton Woods institutions and the major western banks; many are interest-free. Furthermore, there have been several rounds of debt relief, where the debts of the poorest African countries have been written off. The recent FOCAC summit promised $60 billion worth of new investment, including $15 billion of grants, interest-free loans and concessional loans, as well as $5 billion specifically to support the importing of African produce to China. Cyril Ramaphosa noted that “if some African countries can’t keep up with their debt payments, the debt will be forgiven”.44 By no reasonable definition is this a “debt trap”.

China is grabbing African land

In recent years, numerous headline-grabbing articles have claimed that China is in the process of sending millions of peasants to Africa in order to grow food for China.45 China is, apparently, a “land grabber”, a rising colonial power. And yet, “no one has yet identified a village full of Chinese farmers anywhere on the continent. A careful review of Chinese policy shifts shows steadily rising support for outward investment of all kinds but no pattern of sponsoring the migration of Chinese peasants, funding large-scale land acquisitions in Africa, or investing ‘immense sums’ in African agriculture. Finally, according to the United Nations Commodity Trade database, it is China that has been sending food to Africa. While this could (and should) change, so far, the only significant food exports from Africa to China have been sesame seeds and cocoa, produced by African farmers.”46

A mutually beneficial friendship

Accusations of Chinese imperialism in Africa, typically levelled by apologists for western imperialism,47 are not substantiated by facts. China’s development model isn’t based on, and has never been based on, colonial exploitation. On the contrary, China is keen to see Africa emerge as a key player in a multipolar world in which a relatively even balance of forces acts to preserve global peace and stability. This explains, for example, China’s enthusiastic support for the African Union and its commitment to the AU’s development agenda.48 That China’s engagement is a positive thing for Africa is evidenced by the near-universal enthusiasm for it among African governments (it’s telling to note that twice as many African heads of state attended the FOCAC summit than the recent meeting of the UN General Assembly).49

It’s hardly surprising that the concept of multipolarity is not universally esteemed within the imperialist heartlands. In particular the US ruling class is struggling to come to terms with the end of its uncontested hegemony; hence the desperate bid to ‘Make America Great Again’, which really means re-asserting US global dominance and taking the Chinese down a peg or two. The last thing the western ruling classes want to see is a thriving multipolarity based on mutually beneficial cooperation between independent states, bypassing and perhaps even ignoring the mandate of Washington, London and Paris. When people issue slanders about Chinese colonialism, they are feeding a narrative that seeks to maintain the imperialist status quo, even though they generally take the form of ‘concerned advice’. Such slanders should be resolutely exposed.

  1. Stephen Gowans, Patriots, Traitors and Empires: The Story of Korea’s Struggle for Freedom, Baraka Books, 2018 ↩

  2. Samir Amin, The Implosion of Contemporary Capitalism, Monthly Review Press, 2013 ↩

  3. Walter Rodney, How Europe Underdeveloped Africa, Pambazuka Press, 2012 ↩

  4. Karl Marx, Capital: Volume 1 ↩

  5. Samir Amin: Global History: A View from the South, Pambazuka Press, 2010 ↩

  6. Ha-joon Chang, 23 Things They Don’t Tell You about Capitalism, Bloomsbury, 2010 ↩

  7. Invent the Future: The Revolutionary Thought of Samora Machel, 2015 ↩

  8. Nelson Mandela, Long Walk to Freedom, Back Bay Books, 1995 ↩

  9. The Guardian: China in Africa: win-win development, or a new colonialism?, 2018 ↩

  10. Deborah Brautigam, Will Africa Feed China?, Oxford University Press, 2015 ↩

  11. Ministry of Commerce, People’s Republic of China: Statistics on China-Africa Bilateral Trade in 2017 ↩

  12. US Census Bureau: Trade in Goods with Africa ↩

  13. The Guardian, op cit ↩

  14. Xi Jinping, The Governance of China, Foreign Languages Press, 2014 ↩

  15. Washington Post: Xi Jinping is visiting Africa this week. Here’s why China is such a popular development partner, 2018 ↩

  16. Ha-joon Chang, Economics: The User’s Guide, Pelican, 2014 ↩

  17. The Diplomat: China and Ethiopia, Part 1: The Light Railway System, 2018 ↩

  18. SCMP: What to know about China’s ties with Africa, from aid to infrastructure, 2018 ↩

  19. CNN: Ethiopia gets the first metro system in sub-Saharan Africa, 2015 ↩

  20. BBC News: Ethiopia-Djibouti electric railway line opens, 2016 ↩

  21. Brautigam, op cit ↩

  22. China Daily: Investment creates hope, not debt trap, 2018 ↩

  23. China Africa Research Initiative: More Bad Data on Chinese Finance in Africa, 2018 ↩

  24. CNN: Nigeria announces $5.8 billion deal for record-breaking power project, 2017 ↩

  25. See World Bank Data: Access to electricity (as of 2016) ↩

  26. New Zimbabwe: Mnangagwa commissions $1.5bln power plant, project Chinese funded, 2018 ↩

  27. FT: Africa needs China’s help to embrace a low-carbon future (paywall), 2018 ↩

  28. Martin Jacques, When China Rules the World: The End of the Western World and the Birth of a New Global Order, Penguin, 2012 ↩

  29. Dambisa Moyo, Winner Take All: China’s Race For Resources and What It Means For Us, Penguin 2012 ↩

  30. The Conversation: China tops US and UK as destination for anglophone African students, 2017 ↩

  31. Xinhua: Full text of Chinese President Xi Jinping’s speech at opening ceremony of 2018 FOCAC Beijing Summit ↩

  32. The Diplomat: China’s Medical Aid in Africa, 2018 ↩

  33. Wilson Center Archive: Main Speech by Premier Zhou Enlai at the Plenary Session of the Asian-African Conference, 1955 ↩

  34. Dambisa Moyo, op cit ↩

  35. Xinhua: China becomes top job creator in Africa, expert says, 2017 ↩

  36. Washington Post: China in Africa is not ‘neocolonialism.’ Here are the numbers to prove it, 2018 ↩

  37. Giles Mohan, Ben Lampert, Daphne Chang and May Tan-Mullins: Chinese Migrants and Africa’s Development: New Imperialists or Agents of Change?, Zed Books, 2014 ↩

  38. IOL: Those who call China colonial are jealous: Ramaphosa, 2018 ↩

  39. Reuters: Namibia president says China not colonizing Africa, 2018 ↩

  40. Washington Post: China’s debt traps around the world are a trademark of its imperialist ambitions, 2018 ↩

  41. Time: China Is Loaning Billions of Dollars to African Countries. Here’s Why the U.S. Should Be Worried, 2018 ↩

  42. QZ: China is pushing Africa into debt, says America’s top diplomat, 2018 ↩

  43. China Daily: Investment creates hope, not debt trap, 2018 ↩

  44. Ramaphosa, op cit ↩

  45. See for example The Guardian, The food rush: Rising demand in China and west sparks African land grab, 2009 ↩

  46. Brautigam, Will Africa Feed China, op cit ↩

  47. Hillary Clinton comes to mind, eg Reuters: Clinton warns against “new colonialism” in Africa, 2011 ↩

  48. African Union: African Union and China renew commitment to advance multilateral cooperation, 2018 ↩

  49. Quartz: Twice as many African presidents made it to China’s Africa summit than to the UN general assembly, 2018 ↩

Is China Still Socialist?

NB. This is extracted (and updated) from a much longer article – Will the People’s Republic of China go the way of the USSR? – published on 31 May 2018.

So long as socialism does not collapse in China, it will always hold its ground in the world. (Deng Xiaoping)1

The first of October marks the China’s National Day, the 69th anniversary of the founding of the People’s Republic of China. With China’s rise and its increasing importance to the global economy, China is a ‘hot topic’ in the world of politics and economics. And, after four decades of market-oriented economic reforms, many on the left are asking: to what extent can China reasonably be considered a socialist country?

After all, China today has nearly 500 billionaires and is the world’s top destination for foreign direct investment, attracting over $100 billion each year. There are branches of McDonalds and Starbucks in all major Chinese cities; and there is startling inequality between the coastal cities and the inland countryside, and between rich and poor more generally. There are stock exchanges in Shanghai and Shenzhen; there is finance capital; there is privately-owned capital. Is this really what Marx and Engels had in mind?

On the other hand, the People’s Republic of China has some interesting characteristics that make it rather different from the average capitalist country. Most importantly, although inequality has increased over the past 40 years, the standard of living for ordinary workers and peasants has risen dramatically along with it. Wealth under capitalism generally has its counterpart in poverty and exploitation (at home and/or abroad), but in China practically everyone enjoys a far better standard of life than they used to. Extreme poverty is on the cusp of being completely eliminated – an extraordinary achievement for a country of China’s size.

Secondly, China is run by a communist party that continues to adhere to Marxism-Leninism. While it no doubt suffers from corruption, and although its ideological purity has been diluted, its history and traditions mean that it derives its legitimacy and support from the masses of workers and peasants. As such, the Chinese state operates primarily in the interests of the working classes, unlike any capitalist state.

Thirdly, as much private capital as there is in China, the economy is still very much dominated and directed by the state.

So while China has introduced elements of capitalism in the 40 years since the start of ‘reform and opening up’, these do not constitute a negation of socialism, any more than they did in the New Democracy period in the 1950s, or under the New Economic Policy in the Soviet Union in the 1920s. The point of the reforms is to to lay the ground for a more advanced socialism: ”In order to realise communism, we have to accomplish the tasks set in the socialist stage. They are legion, but the fundamental one is to develop the productive forces so as to demonstrate the superiority of socialism over capitalism and provide the material basis for communism.”2

A workers’ state

The class nature of the state is one of the core themes of Marxism. Marx and Engels were the first to conclusively demonstrate that the state is not an impartial body sitting above society and operating for the common good; rather, its responsibility is to represent the interests of a given social class and the system of production relations that benefit it. In the case of capitalism, ”the executive of the modern state is nothing but a committee for managing the common affairs of the whole bourgeoisie”.3

In a socialist society, the state must serve the interests of the working class and its allies; it must protect working class power, defend it from the inevitable attacks from capital, and build a better life for people. Such a state can certainly incorporate market mechanisms, as long as these operate under the guidance of the state and introduce some benefit for working people, and as long as capital is not allowed to become politically dominant.

The Communist Party of China (CPC) conceptualises the capitalist elements of its economy as being at the service of socialist development. ‘Socialism with Chinese characteristics’ leverages the market to stimulate production, attract investment, encourage technical development, support peaceful coexistence with the capitalist world, and thereby raise the living standards of the Chinese people and pave the road for a higher stage of socialism, built on advanced technology. Market socialism can reasonably be considered a pragmatic and entirely Marxist answer to the exceedingly difficult problem of building socialism in a large, underdeveloped country under constant threat from a hegemonic US imperialism.

The Chinese government is extraordinarily popular among the Chinese people4, the reason being that it focuses precisely on the wellbeing of the masses rather than the profits of billionaires. “Meeting people’s needs, ranging from those in education, employment, social security, medical services, housing, environment, to intellectual and cultural life, is the top priority of the government.”5 This is constantly stressed by the leadership.

A government’s priorities can provide a useful indicator as to its ideology and the social forces it represents. The top priorities of the Chinese government in the present era are very much consistent with the demands of the Chinese people, in particular: protecting China’s unity and territorial integrity; improving living standards; clamping down on corruption; protecting the environment; eradicating poverty; maintaining peace and stability; and re-establishing China’s national prestige, all but wiped out in the ‘century of humiliation’ preceding the establishment of the PRC in 1949. The average citizen of the US or Britain would surely be pleased if their government embraced an equivalent set of priorities, meeting the needs of the masses, and yet this doesn’t happen, because of the resistance of the (capitalist) ruling classes of those countries.

The question of environmental conservation is instructive. A capitalist state has very limited freedom of action on this issue, due to the short-termist needs of expanding capital (for example, oil companies wield significant influence within US policy circles). A comprehensive strategy of environmental protection requires a huge investment: a production of use values that may not have corresponding exchange values; that is, production for people, not profit. In China, the government has a clear mandate to lead just such a strategy (even though there is a tension between development and conservation, both of which are essential for the Chinese people).

Over the last few years, China has quickly become the global leader in environmental protection, planning to “spend at least $360 billion on clean energy projects and create 13 million new renewable energy jobs by 2020”.6 At the same time as investing heavily in alternative energy sources such as solar, wind, and hydropower, it is divesting from coal, cancelling the construction of 104 new coal plants last year.7 The government has even set up an environmental police force to ensure compliance with green policy.8 China’s forest coverage has increased from around 18 percent in 2007 to 21.7 percent, with targets of 23 percent by 2020 and 26 percent by 2035.9 On clean energy, “the United States is actually playing catch-up to China… China has taken an undisputed leadership”.10 On pollution, “the results suggest that China’s fight against pollution has already laid the foundation for extraordinary gains in life expectancy.”11 These ambitious plans can be devised and carried out precisely because of the location of political power in the Chinese working class.

Public ownership still dominates, and the state is in charge of the economy

Although the number of employees of private enterprises has overtaken the number of employees of state- and collectively-owned companies, the basic economic agenda is set by the state. Private production is encouraged by the state only because it contributes to modernisation, technological development and employment. While some Marxists may insist that markets can have no place under socialism, it’s difficult to reconcile such a view with Marx’s own view of socialism as a transitional stage on the road to communism. China has proven in reality that it can use (heavily regulated) market mechanisms in order to more rapidly develop the productive forces and improve the living standards of its people.

It will come as a surprise to many readers to know that public ownership continues to dominate in China. There has been very little in the way of actual privatisation, in terms of transferring ownership of state enterprises into the hands of private capital; indeed, the state sector is several times bigger than it was in 1978, when the reforms were launched. Rather, private enterprise was allowed to develop alongside the state sector, and has grown at an even faster rate than the state sector (bear in mind that it started from a very low base).

The state maintains tight control over the most important parts of the economy, often referred to as the ‘commanding heights’: heavy industry, energy, finance, transport, communications, and foreign trade.12 Finance – which has a key influence over the entire economy – is dominated by the ‘big four’ state-owned banks.13 These banks’ primary responsibility is to the Chinese people, not private shareholders. China’s land was never privatised, although collectivisation was mainly rolled back. It remains owned and managed at the village level.

Tran Dac Loi, of the Communist Party of Vietnam, gives a very clear explanation of the relationship between state and market in a market socialist economy (note that Vietnam follows a very similar economic model to China): ”The market is managed and regulated by the socialist state in order to utilise the positive sides, minimise the negative ones, and direct market activities into implementation of given comprehensive development goals… The state economic sector should play the dominating role in key areas essential to macro economy such as energy, finance, telecommunications, aviation, railways, maritime, public transportation, etc… The land and natural resources remain within all-people ownership under the state management.”14

Tran continues: “We are aware that in the market economy in particular and in the transition period in general, it is impossible to avoid the gap between the rich and the poor; but the state and the whole society should focus on upholding the poor, supporting the disadvantaged, reducing poverty, increasing access to education, healthcare, social welfare as well as the improving and enhancing living standard of the people accordingly on every step of economic development… These are persistent and obligatory targets to be achieved in the development process towards socialism.”

Such an arrangement is fundamentally different to the organisation of production in a capitalist society.

Opening up has led to development

China’s opening up to foreign investment and its integration into global markets – particularly its 2001 accession to the World Trade Organisation – is often presented by leftists as prima facie evidence of its having become a capitalist country. British academic Jenny Clegg explains that WTO membership had nothing to do with capitalist restoration, and everything to do with developing China’s productive forces, strengthening its geopolitical position, and thereby building a better life for its people. China joined the WTO in order to able to “insert itself into the global production chains linking East Asia to the US and other markets, thus making itself indispensable as a production base for the world economy. This would make it far more difficult for the United States to impose a new Cold War isolation.” Further, China’s integration in the world economy has allowed it to be a part of “the unprecedented global technological revolution, offering a short cut for the country to accelerate its industrial transformation and upgrade its economic structure.”15

The opportunity to rapidly learn from the advanced capitalist countries’ developments in science and technology was the principal reason for ‘opening up’. Blockaded by the western countries after the revolution, and then cut off from Soviet support as a result of the Sino-Soviet split, China in 1978 was still relatively backward from a technological point of view, in spite of having made some great advances and having developed a standard of living for its people that was far ahead of other countries at a similar level of development. Deals with foreign investors were drawn up such that foreign companies trying to expand their capital in China were compelled to share skills and technology, and operate under Chinese regulation.16

Much as foreign investors might like to keep their technological secrets, they’ve had limited choice. Martin Jacques notes that, “as China has grown more powerful, the demand for technology transfer has become ever more insistent, with foreign companies, complain though they may, generally conceding.”17 The result is that China is now one of the world’s leading innovators in science and technology.

Commitment to Marxism

Only socialism can save China, and only Chinese socialism can lead our country to development – a fact that has been fully proved through the long-term practice of the Party and the state. (Xi Jinping)18

Through four decades of reform and opening up, the CPC has retained its commitment to Marxism. Deng Xiaoping was clear from the very beginning of the reform process that China “must keep to the socialist road. Some people are now openly saying that socialism in inferior to capitalism. We must demolish this contention… Deviate from socialism and China will inevitably revert to semi-feudalism and semi-colonialism. The overwhelming majority of the Chinese people will never allow such a reverse.”19

This is echoed today by the current leadership. As Xi Jinping puts it, “socialism with Chinese characteristics is socialism and nothing else. The basic principles of scientific socialism must not be abandoned; otherwise it is not socialism.”20

In no country in the world is Marxism studied as widely as it is in China. President Xi Jinping has a doctorate in Marxist philosophy. Marxism is part of the core curriculum at every level of the education system. Ninety million members of the Communist Party of China are required to engage in Marxist study. ”The whole party should remember: what we are building is socialism with Chinese characteristics, not some other ism”, says Xi.21 Indeed, the Communist Party of China considers itself “a loyal inheritor of the spirit of The Communist Manifesto”.22 Marx is considered “the greatest thinker of modern times”.23

It’s difficult to understand why China’s political leadership would go to such lengths to promote Marxism if they are intent on doing away with it. A far more likely explanation is that they’re genuine in their devotion to socialism and their resolve to strengthen it. Naysayers and purists will highlight flaws and inconsistencies, but this is nothing new or interesting. “Actually existing socialism will always fall short of the socialist ideal because it is precisely that ideal implemented within the confines of reality.”24

The evidence indicates that China continues to be a socialist country.

If the first century of human experience building socialism teaches us anything, it’s that the road from capitalism to socialism is a long and complicated one, and that ‘actually existing socialism’ varies enormously according to time, place and circumstances. China is building a form of socialism that suits its conditions, using the means it has at its disposal, in the extraordinarily challenging circumstances of global imperialist hegemony. No socialist experiment thus far – be it the Paris Commune, the Soviet Union, China, Cuba, Mozambique, or indeed Bolivarian Venezuela – can claim to have discovered a magic wand that can be waved such that peace, prosperity, equality and comprehensive human development are achieved overnight. China is forging its own path, and this is worthy of study and support.

In assessing the political nature of China, perhaps it’s best to give the final word to Fidel Castro:

If you want to talk about socialism, let us not forget what socialism achieved in China. At one time it was the land of hunger, poverty, disasters. Today there is none of that. Today China can feed, dress, educate, and care for the health of 1.2 billion people. I think China is a socialist country, and Vietnam is a socialist nation as well. And they insist that they have introduced all the necessary reforms in order to motivate national development and to continue seeking the objectives of socialism. There are no fully pure regimes or systems. In Cuba, for instance, we have many forms of private property… Practically all Cubans own their own home and, what is more, we welcome foreign investment. But that does not mean that Cuba has stopped being socialist.25

Happy birthday to the People’s Republic of China. Long may it continue along the road of socialism and internationalism.

  1. Deng Xiaoping,We must adhere to socialism and prevent peaceful evolution towards capitalism – conversation with Julius Nyerere, 1989 ↩

  2. Deng Xiaoping, cited in John Ross: Deng Xiaoping and John Maynard Keynes, 2012 ↩

  3. Marx and Engels, Manifesto of the Communist Party (chapter 1), 1848 ↩

  4. See for example The World’s Most Popular Leader: China’s President Xi, December 2014 ↩

  5. Xinhua: Socialism with Chinese characteristics: 10 ideas to share with world, 2017 ↩

  6. Business Insider: China’s latest energy megaproject shows that coal really is on the way out, 2018 ↩

  7. ibid ↩

  8. Bloomberg: China’s War on Pollution Will Change the World, 2018 ↩

  9. Telegraph: China to plant forest the size of Ireland in bid to become world leader in conservation, 2018 ↩

  10. The Guardian: US ‘playing catch-up to China’ in clean energy efforts, UN climate chief says, 2015 ↩

  11. New York Times: Four Years After Declaring War on Pollution, China Is Winning, 2018 ↩

  12. For a fuller discussion, see China: Capitalist or Socialist?, The Guardian (Communist Party of Australia), 2010 ↩

  13. The ‘big four’ banks are: the Bank of China, the China Construction Bank, the Industrial and Commercial Bank of China and the Agricultural Bank of China. ↩

  14. Tran Dac Loi, Contribution at the International Forum of Left Forces, 2017 ↩

  15. Jenny Clegg, China’s Global Strategy: Toward a Multipolar World, Pluto Press, 2009 ↩

  16. Technology transfer is discussed in some detail in John Ross’s article Lessons of the Chinese economic reform, part 2, 1996 ↩

  17. Martin Jacques, When China Rules the World, Penguin, 2012 ↩

  18. Xi Jinping, The Governance of China, Foreign Languages Press, 2014 ↩

  19. Deng Xiaoping, Uphold the Four Cardinal Principles, 1979 ↩

  20. The Governance of China, op cit ↩

  21. Financial Times: Xi Jinping pledges return to Marxist roots for China’s Communists (paywall), 2016 ↩

  22. Xinhua: Xi stresses importance of The Communist Manifesto, 2018 ↩

  23. Xinhua: Marx’s theory still shines with truth, 2018 ↩

  24. Return to the Source: Actually Existing Socialism in Vietnam, 2013  ↩

  25. Fidel Castro, Interview in La Stampa, 1994 ↩

Book review: Elaine Mokhtefi – Algiers, Third World Capital: Freedom Fighters, Revolutionaries, Black Panthers

This article first appeared in the Morning Star on 23 August 2018.

ALGIERS, Third World Capital is a fascinating, vibrant, endearing and engaging memoir, providing fresh insight into some important episodes of the second half of the 20th century.

Elaine Mokhtefi, a white North American woman of Jewish heritage, became involved in politics at university, becoming an activist in the World Assembly of Youth (WAY), an organisation committed to global government and world peace. Moving to Paris in the 1950s, she was introduced to the Algerian liberation struggle via the emigre Algerian population in that city.

An interpreter and organiser for WAY and later the Algerian government in exile, she worked with and befriended some of the giants of the anti-colonial and anti-imperialist struggles, including Tanzanian president Julius Nyerere, Martinique-born Algerian revolutionary Frantz Fanon, African-American revolutionary Stokely Carmichael (Kwame Ture), ANC president Oliver Tambo and Swapo leader Sam Nujoma.

Deeply involved in the Algerian solidarity movement and committed to the project of building a new, socialist-oriented society on the ashes of the French colonial project, Mokhtefi went to live in Algiers soon after independence in 1962. Algeria in that period was a tremendously exciting place, a new state defined by its heroic and extraordinary struggle against a vicious French occupation.

The countries that had supported the war of resistance — Yugoslavia, Cuba, China, Egypt, Syria, Lebanon, the Soviet Union and others — were now Algeria’s main allies and sent advisers and experts to work with the new government. The liberation movements from Angola, Mozambique, South Africa, Vietnam and Palestine were welcomed with open arms. Today, Algeria’s diplomacy is more nuanced, but, in the early years after liberation from French colonialism, it was the centre of gravity of the anti-imperialist world.

One little-known manifestation of Algeria’s status as “Third World capital” is its support for progressive movements within the “First World,” most notably the black liberation struggle in the US.

Mokhtefi writes that “Algeria adopted an open-door policy of aid to the oppressed, an invitation to liberation and opposition movements and personalities from around the world.” Providing resources and recognition to the Black Panther Party, then at the zenith of its fame and activity, “flowed naturally from [Algeria’s] position as a Third World leader.”

Mokhtefi was closely involved in the establishment of the International Section of the Black Panther Party. Assigned to assist and interpret for Eldridge Cleaver from the moment of his arrival, she was for several years in almost daily contact with Cleaver, his then wife Kathleen, Don Cox and other leading activists.

As such, she is uniquely well-positioned to tell the little-known story of the Black Panthers in Algeria — how they operated, interacted with Algerian society and the government and particularly how they were affected by the 1971 split in the Black Panther Party.

The split remains a highly controversial topic. Cleaver’s version of events hasn’t been helped over the years by his fondness for self-serving exaggeration and deception, not to mention his political descent into Republican conservatism, and Mokhtefi isn’t under any illusions about him.

However, she gives a convincing description of what the split looked like from the Algiers Panthers’ point of view.

The story as it is usually told has Eldridge as an ultra-left militant, pushing for an escalation of the underground armed struggle, whereas party leader Huey Newton favoured a programme based on community activism.

In Mokhtefi’s telling, however, the split was based primarily on Newton’s increasingly erratic, violent and obsessive behaviour, with the FBI merrily adding fuel to the fire. Her version of events may anger some Panther veterans, but it’s a valid contribution to the historical record.

Mokhtefi also discusses some of the challenges that faced post-colonial Algeria, a country in which between 300,000 and 500,000, out of a population of nine million, had been killed during the war of liberation and where departing French soldiers and settlers burned villages and books. The adult literacy rate was under 10 per cent and there were not more than 500 university graduates.

The victorious National Liberation Front had to perform miracles in order to reverse the effects of colonialism, war and imposed underdevelopment.

The near-impossible nature of the problems at hand inevitably led to a certain amount of despondency and infighting, the most prominent example of which is the coup that brought Houari Boumediene to power and sent first president Ahmed Ben Bella to prison. Considering the effect on her own life — Mokhtefi ended up being deported as a result of her friendship with Ben Bella’s wife — she discusses the coup in surprisingly balanced and dispassionate terms, contextualising it within the intensely difficult and fraught situation Algeria was subjected to.

This exciting memoir is an important story and it’s told with skill, humour and humility.

What’s driving the peace process in Korea?

This article first appeared on Telesur English on 15 June 2018.

This week witnessed a historic step towards lasting peace in Korea. For the first time in history, the heads of state of the US and North Korea met face to face. The meeting appears to have laid the ground for ongoing top-level talks, and US president Donald Trump has announced that the joint war games conducted by the US and South Korea are on hold.

Given that just a few months ago, Trump was threatening nuclear war against the DPRK and referring to its leader Kim Jong-un as “rocket man”, these developments are breathtaking and extremely welcome.

But what changed? Has the Trump administration decided to abandon US imperialism and engage usefully with an increasingly multipolar world? Have some of the most sinister and vicious ‘hawks’ in Washington, like John Bolton (National Security Advisor) and Mike Pompeo (Secretary of State), unexpectedly led a volte-face in foreign policy?

Needless to say, nothing could be further from the truth. In every corner of the earth, the Trump administration has been making it all too clear that ‘Make America Great Again’ is, at its heart, an arch-neocon project. In April, the US carried out missile strikes against the Syrian state for the first time. In May, Trump announced that the US would exit the Joint Comprehensive Plan of Action and reintroduce sanctions against Iran. Sanctions against Venezuela have been ramped up, and its recent presidential election declared ‘illegitimate’. The steps towards bilateral normalisation between the US and Cuba are being reversed. In an outrageous attack on the national rights of the Palestinians, the US has moved its embassy in Israel to Jerusalem. Trump has fired the opening salvoes in a trade war with China. The US has bolstered its support for the breakaway Chinese province of Taiwan, and for the brutal and reactionary Kingdom of Saudi Arabia.

The globally hegemonic leopard has not changed its spots. To locate the key variables driving change, we must shift our gaze eastward.

One very important change is the stance of the South Korean (ROK) government. President Moon Jae-in came to power last year on the basis of a campaign promising, among other things, a serious bid to improve relations with the DPRK. Moon, a former student activist and human rights lawyer, represents the most progressive wing of mainstream South Korean politics (admittedly this is not saying much) and was mentored by Kim Dae-jung, author of the ‘Sunshine Policy’, which aimed to build understanding and de-escalate tensions with the DPRK.

While essentially pro-US, Moon is on record as saying that “South Korea should adopt diplomacy in which it can discuss a US request and say no to the Americans”. This is consistent with the wishes of the vast majority of the South Korean population, for whom the country’s status as a semi-colony of the US is a source of profound shame – Camp Humphreys, just 40 miles south of Seoul, is “the largest power projection platform in the Pacific”, and is the largest US overseas base; meanwhile the US maintains wartime operational control of the South Korean armed forces. Incidentally, another important Moon policy is to take back wartime operational control.

Moon also opposed the deployment of Terminal High Altitude Area Defense (THAAD) and is in favour of improving relations with China. The China issue is critical. Throughout its history, the ROK has been heavily reliant on the US, both militarily and economically. South Korea was given preferential treatment in terms of technology transfer and foreign investment specifically so that its population wouldn’t be too attracted by socialism (most people are unaware that the DPRK was economically more advanced than the ROK until the early 1980s, and that the ROK only really started on the path of economic growth on the back of massive aid and preferential market access due to its military role supporting US genocide in Vietnam).

These days, however, the regional economic landscape has changed beyond recognition. China is now South Korea’s number one trade partner by a long way – ROK-China trade is double that between the ROK and the US, for both imports and exports – and it doesn’t take a genius to predict that this trend will deepen as China continues to grow. This economic shift lays the foundations for a political shift, as the South Korean ruling class’s dependence on the US starts to wane. It also gives China a certain amount of leverage. China is a longstanding ally of the DPRK; it wants to see denuclearisation of the Korean Peninsula; it wants and needs a peaceful regional environment; it wants to limit the US military threat against it (and hence it is resolutely opposed to THAAD and would very much like to see the removal of 30,000 US troops from Korea); it also wants to ensure that Japan doesn’t develop a nuclear arsenal. All of this means that China is pushing hard for an improvement in relations between the DPRK and ROK, and between the DRPK and the US.

Meanwhile, the North Korean leadership has in recent months outwitted the US in the diplomatic realm, showing itself to be serious in its pursuit of peace. US vice president Mike Pence went to the Winter Olympics in Pyeongchang (ROK) with the specific intent of impeding any North Korean charm offensive, but he was uniquely unsuccessful: North Korean politicians, athletes and even cheerleaders acquitted themselves brilliantly and won widespread respect. This was soon followed up by two face-to-face meetings between Kim Jong-un and Moon Jae-in, as well as two meetings between Kim Jong-un and Chinese president Xi Jinping. Thus a path to progress has been opened up over the last few months by the leaderships in North Korea, South Korea and China, specifically excluding the US until the East Asian neighbours could present a united front.

The ground has now been laid for a historic advance, although it will no doubt be a rocky and winding road.

Jimmy Carter wrote last year that the North Koreans have been very consistent in their requests of the US: ”What the officials have always demanded is direct talks with the United States, leading to a permanent peace treaty to replace the still-prevailing 1953 cease-fire that has failed to end the Korean conflict. They want an end to sanctions, a guarantee that there will be no military attack on a peaceful North Korea, and eventual normal relations between their country and the international community.”

The people of the world – and especially the US – should add their voices to these entirely reasonable demands. The Korean people on both sides of the 38th parallel desire and deserve peace, stability and reunification.

Why doesn’t the Soviet Union exist any more?

This series of articles attempts to unpick the fall of the Soviet Union, looking in depth at the economic, political, ideological and military factors.

Why dig up these particular old bones? Because we must reflect on, and learn from, history. The world’s first socialist state no longer exists, and nor do the European people’s democracies that were its close allies. If mistakes were made, it’s crucial that they aren’t made again. Existing socialist states face many of the same external pressures that the Soviet Union faced; future socialist states almost certainly will too. Additionally, socialist states so far have had great difficulty maintaining revolutionary momentum through the second, third and fourth generations of the revolution; this is as true of contemporary Cuba or China as it was of the USSR. Addressing these problems is obviously essential, and the details of the Soviet collapse constitute some of the most important raw data for any such analysis. The more our movement can learn about the Soviet collapse, the better prepared we will be to prevent historic reverses and defeats in future, and the better equipped we will be to develop a compelling, convincing vision of socialism that is relevant to the here and now.

The series of articles will be made available in e-book form in the coming few weeks.

Why doesn’t the Soviet Union exist any more? Part 8: Will the People’s Republic of China go the way of the USSR?

So long as socialism does not collapse in China, it will always hold its ground in the world. (Deng Xiaoping)1

We should think of China’s communist regime quite differently from that of the USSR: it has, after all, succeeded where the Soviet Union failed. (Martin Jacques)2

This series has thus far explored in some detail the various factors – economic, political, ideological, military and cultural – that contributed to the collapse of the USSR and the dismantling of socialism in Europe. This final article in the series shifts perspective forwards to the present, asking what future socialism has in the world; what lessons can be drawn from the Soviet collapse in order to ensure the continued existence of the remaining socialist countries? These are synthesised into the topic of whether China – the largest and most prominent of the five countries currently ruled by communist parties – is destined to follow the same painful trajectory as the USSR.

These are questions of no idle academic interest; they are essential components of the biggest political questions of our era: Has capitalism won? Is there any escape for humanity from brutal exploitation, inequality and underdevelopment? Is there a future in which the world’s billions can truly exercise their free will, their humanity, liberated not only from hunger but from wage slavery?

The conclusions I draw are that China is following a fundamentally different path to that of the Soviet Union; that it has made a serious and comprehensive study of the Soviet collapse and rigorously applies what it has learnt; that the People’s Republic of China (PRC) remains a socialist country and an important friend to the socialist and developing world; that, in spite of the rolling back of the first wave of socialist advance, Marxism remains as relevant as ever; and that, consequently, socialism has a bright future in the world.

Wait… is China even socialist?

If you want to talk about socialism, let us not forget what socialism achieved in China. At one time it was the land of hunger, poverty, disasters. Today there is none of that. Today China can feed, dress, educate, and care for the health of 1.2 billion people. I think China is a socialist country, and Vietnam is a socialist nation as well. And they insist that they have introduced all the necessary reforms in order to motivate national development and to continue seeking the objectives of socialism. There are no fully pure regimes or systems. In Cuba, for instance, we have many forms of private property… Practically all Cubans own their own home and, what is more, we welcome foreign investment. But that does not mean that Cuba has stopped being socialist. (Fidel Castro)3

The first controversy to address is whether, after four decades of market-oriented economic reforms, China can still reasonably be considered socialist. After all, China today has nearly 500 billionaires and is the top destination for foreign direct investment, attracting over $100 billion each year. There are branches of McDonalds and Starbucks in all major Chinese cities; most people in their daily lives devote more attention to earning a living than to absorbing the teachings of Marx and Engels; and there is startling inequality between the coastal cities and the inland countryside, and between rich and poor more generally. There are stock exchanges in Shanghai and Shenzhen; there is finance capital; there is privately-owned capital. Many leftists – particularly in Europe and North America – look at this situation and say: this has nothing to do with socialism.

On the other hand, the People’s Republic of China has some interesting characteristics that make it rather different from the average capitalist country. Most importantly, although inequality has increased over the past 40 years, the standard of living for ordinary workers and peasants has risen along with it. Wealth under capitalism generally has its counterpart in poverty and exploitation (at home and/or abroad), but in China practically everyone enjoys a far better standard of life than they did. Extreme poverty is on the cusp of being completely eliminated – an extraordinary achievement for a country of China’s size.

Secondly, China is run by a communist party that continues to adhere to Marxism-Leninism. While it no doubt suffers from corruption, and although its ideological purity has been diluted, its history and traditions mean that it derives its legitimacy and support from the masses of workers and peasants. As such, the Chinese state operates primarily in the interests of the working classes, unlike any capitalist state.

Thirdly, as much private capital as there is in China, the economy is still very much dominated and directed by the state. Eric Li, in the John Pilger documentary The Coming War on China, explains:

China is a vibrant market economy but it’s not a capitalist country. There’s no way a group of billionaires could control the politburo as billionaires control American policy making. So in China you have a vibrant market economy but capital doesn’t rise above political authority. Capital does not have enshrined rights. In America the interests of capital and capital itself has risen above the American nation. Political authority cannot check the power of capital – and that’s why America is a capitalist country but China’s not.4

So while China has introduced elements of capitalism in the 40 years since the start of ‘reform and opening up’, these do not constitute a negation of socialism, any more than they did in the New Democracy period in the 1950s, or under the New Economic Policy in the Soviet Union in the 1920s. The point of the reforms is to to lay the ground for a more advanced socialism: “In order to realise communism, we have to accomplish the tasks set in the socialist stage. They are legion, but the fundamental one is to develop the productive forces so as to demonstrate the superiority of socialism over capitalism and provide the material basis for communism.”5

A workers’ state

The class nature of the state is one of the core themes of Marxism. Marx and Engels were the first to conclusively demonstrate that the state is not an impartial body sitting above society and operating for the common good; rather, its responsibility is to represent the interests of a given social class and the system of production relations that benefit it. In the case of capitalism, “the executive of the modern state is nothing but a committee for managing the common affairs of the whole bourgeoisie”.6

In a socialist society, the state must serve the interests of the working class and its allies; it must protect working class power, defend it from the inevitable attacks from capital, and build a better life for the people. Marxist sociologist Albert Szymanski wrote of the Soviet Union that, “in a socialist society surrounded by a capitalist world, the necessity to develop industrially, to feed the people, to protect itself and catch up with the leading capitalist countries, imposes a fairly limited set of options on a socialist power elite”7. This applies equally contemporary China. President Xi Jinping explains in simple terms:

The working class is China’s leading class; it represents China’s advanced productive forces and relations of production; it is our Party’s most steadfast and reliable class foundation; and it is the main force for realising a moderately prosperous society in all respects, and upholding and building socialism with Chinese characteristics… To uphold and build Chinese socialism in the future, we must rely wholeheartedly on the working class, enhance its position as China’s leading class, and give full play to its role as our main force. Relying fully on the working class is not just a slogan or label.8

A socialist state run in the interests of the working class and its allies can certainly incorporate market mechanisms, as long as these operate under the guidance of the state and introduce some benefit for working people, and as long as capital is not allowed to become politically dominant. Deng Xiaoping – the political leader most closely associated with China’s economic reform – insisted that markets and socialism were not mutually exclusive: “It is wrong to assert that there is only a capitalist market economy. Why can’t it be developed under socialism? A market economy is not a synonym for capitalism.”9 “If markets serve socialism they are socialist; if they serve capitalism they are capitalist.”10

The Communist Party of China (CPC) conceptualises the capitalist elements of its economy as being at the service of socialist development. ‘Socialism with Chinese characteristics’ leverages the market to stimulate production, attract investment, encourage technical development, support peaceful coexistence with the capitalist world, and thereby raise the living standards of the Chinese people and pave the road for a higher stage of socialism, built on advanced technology. Market socialism can reasonably be considered a pragmatic and entirely Marxist answer to the exceedingly difficult problem of building socialism in a large, underdeveloped country under constant threat from a hegemonic US imperialism. Sitaram Yechury, General Secretary of the Communist Party of India (Marxist), explains: “In the final analysis, it boils down to the question of who controls the state or whose class rule it is. Under bourgeois class rule, it is the profit indicators that are the driving force. Under working-class rule, it is the society’s responsibilities that are the priorities.”11

The Chinese government is extraordinarily popular among the Chinese people12, the reason being that it focuses precisely on the wellbeing of the masses rather than the profits of billionaires. “Meeting people’s needs, ranging from those in education, employment, social security, medical services, housing, environment, to intellectual and cultural life, is the top priority of the government.”13 This is constantly stressed by the leadership. Xi Jinping reiterates:

If we cannot deliver tangible benefits to the people, and create a fairer social environment, and, worse still, if we cause more inequality, then our reform will lose its meaning and cannot be sustained. Even when the ‘cake’ has indeed become bigger, we must cut it fairly… It is the essential requirement of socialism to eradicate poverty, improve the people’s livelihood and achieve common prosperity. We should pay close attention to people in straitened circumstances, and extend care to them with respect and love. We should do our best to solve their problems and keep their needs and sufferings in mind, and bring the solicitude and concern of the Party and the government to the people in the impoverished areas.14

A government’s priorities can provide a useful indicator as to its ideology and the social forces it represents. The top priorities of the Chinese government in the present era are very much consistent with the demands of the Chinese people, in particular: protecting China’s unity and territorial integrity; improving living standards; clamping down on corruption; protecting the environment; eradicating poverty; maintaining peace and stability; and re-establishing China’s national prestige, all but wiped out in the ‘century of humiliation’ preceding the establishment of the PRC in 1949. The average citizen of the US or Britain would surely be pleased if their government embraced an equivalent set of priorities, meeting the needs of the masses, and yet this doesn’t happen, because of the resistance of the (capitalist) ruling classes of those countries.

The question of environmental conservation is instructive. A capitalist state has very limited freedom of action on this issue, due to the short-termist needs of expanding capital (for example, oil companies wield significant influence within US policy circles). A comprehensive strategy of environmental protection requires a huge investment: a production of use values that may not have corresponding exchange values; that is, production for people, not profit. In China, the government has a clear mandate to lead just such a strategy (even though there is a tension between development and conservation, both of which are essential for the Chinese people).

Over the last few years, China has quickly become the global leader in environmental protection, planning to “spend at least $360 billion on clean energy projects and create 13 million new renewable energy jobs by 2020”.15 At the same time as investing heavily in alternative energy sources such as solar, wind, and hydropower, it is divesting from coal, cancelling the construction of 104 new coal plants last year.16 The government has even set up an environmental police force to ensure compliance with green policy.17 China’s forest coverage has increased from around 18 percent in 2007 to 21.7 percent, with targets of 23 percent by 2020 and 26 percent by 2035.18 On clean energy, “the United States is actually playing catch-up to China… China has taken an undisputed leadership”.19 On pollution, “the results suggest that China’s fight against pollution has already laid the foundation for extraordinary gains in life expectancy.”20 These ambitious plans can be devised and carried out precisely because of the location of political power in the Chinese working class.

Another useful indicator of the class nature of the Chinese state is the government’s vigilance in tackling corruption. Breaking laws and exerting political pressure in the name of expansion of capital is par for the course in capitalist countries, and precious little is done to combat it – including in Britain, where what Seumas Milne terms the “revolving-door colonisation of public life” has become pervasive.21 In China, corrupt billionaires have an extraordinarily high chance of ending up in prison – or executed.22

Public ownership still dominates, and the state is in charge of the economy

Szymanski writes that “a social formation can be defined in terms of its dominant relations of production. This need not mean the relations of production in which the largest number of producers are involved, nor the set of productive relations that produce the greatest amount of surplus value. The dominant relations of production, rather, are those relations whose basic logic structures the form and movement of the whole social formation. Thus, for example, the US was a capitalist social formation in 1860 despite there being more slaves, freeholding farmers and artisans than there were industrial workers… It is likewise possible to have a socialist society in which the majority of the producing classes are not working in collectively owned and controlled enterprises, provided that the logic of such enterprises structures the rest of the economy.”23

Szymanski’s analysis holds for contemporary China. Although the number of employees of private enterprises has overtaken the number of employees of state- and collectively-owned companies, the basic economic agenda is set by the state. Private production is encouraged by the state only because it contributes to modernisation, technological development and employment. Vince Sherman writes that “in a socialist market economy, the state is controlled by workers and dominates the private sector. It allows it to flourish only to the degree that it helps in the economic development of the whole country and serves the greater class interests of the working class and peasantry.”24 While some Marxists may insist that markets can have no place under socialism, it’s difficult to reconcile such a view with Marx’s own view of socialism as a transitional stage on the road to communism. China has proven in reality that it can use market mechanisms in order to more rapidly develop the productive forces and improve the living standards of its people. After all, “socialism means eliminating poverty. Pauperism is not socialism.”25

It will come as a surprise to many readers to know that public ownership continues to dominate in China. According to the CPC’s central committee, “the basic economic system with public ownership at the core, jointly developing with many kinds of ownership systems, is the main pillar of Socialism with Chinese characteristics, and is the basis for the socialist market economy system… We must unswervingly consolidate and develop the public economy, persist in the leading role of public ownership, give full play to the leading role of the state-owned economy, and incessantly increase its vitality, leveraging power and impact.”26

There has been very little in the way of actual privatisation, in terms of transferring ownership of state enterprises into the hands of private capital; indeed, the state sector is several times bigger than it was in 1978, when the reforms were launched. Rather, private enterprise was allowed to develop alongside the state sector, and has grown at an even faster rate than the state sector (bear in mind that it started from a very low base). John Ross argues that China has grown “not by destroying its state sector but by altering the relations between the monopoly and non-monopoly sectors – rapidly expanding the latter.”27 Similarly, Martin Jacques explains that, “rather than root-and-branch privatisation, the Chinese government has sought to make the numerous state-owned enterprises that remain as efficient and competitive as possible. As a result, the top 150 state-owned firms, far from being lame ducks, have instead become enormously profitable, their aggregate profits reaching $150 billion in 2007… Unlike in Japan or Korea, where privately owned firms overwhelmingly predominate, most of China’s best-performing companies are to be found in the state sector.”28

It’s interesting to note that, for example, the combined revenues of two Chinese state-owned enterprises (China Mobile and Sinopec) were greater than those of China’s 500 largest private companies in 2009.29 The state maintains tight control over the most important parts of the economy, often referred to as the ‘commanding heights’: heavy industry, energy, finance, transport, communications, and foreign trade.30 Finance – which has a key influence over the entire economy – is dominated by the ‘big four’ state-owned banks.31 These banks’ primary responsibility is to the Chinese people, not private shareholders.

China’s land was never privatised, although collectivisation was mainly rolled back. It remains owned and managed at the village level. Peter Nolan observes: “Public ownership of land was a powerful countervailing force to the social inequality which inevitably accompanied elements of the market reform.” De-collectivisation “was not followed by the establishment of private property rights. Because the Chinese Communist Party wished to prevent the emergence of a landlord class, it did not permit the purchase and sale of farmland… The village community remained the owner, controlling the terms on which land was contracted out and operated by peasant households. It endeavoured to ensure that farm households had equal access to farmland… The massively dominant form was distribution of land contracts on a locally equal per capita basis.”32

Even the town and village enterprises (TVEs), which became the standard-bearers of economic reform in the 1980s and which came to employ as many as 135 million people in the mid-1990s, were collectives. Nolan considers that they “resembled national state-owned enterprises, with the ‘state’ being the local community, each of which typically owned multiple establishments.”33

Ironically, market reforms would almost certainly have failed were they not carried out under the tight control of the government and had they not existed within the context of a planned economy. Indeed this is one reason that China’s reforms were so successful and the Soviet/Russian reforms failed. Peter Nolan, who is by no means a cheerleader for centrally-planned economies, writes: “The comparison of the experience of China and Russia’s reforms confirms that, at certain junctures and in certain countries, effective planning is a necessary condition of economic success.”34 Nolan points out that the Chinese state took the lead in conducting large-scale experiments and analysing the results; protecting domestic industry from the sudden appearance of foreign goods; supporting the growth of the state-owned enterprises to a level where they could become competitive in the global marketplace; investing in social and economic infrastructure (transport, healthcare, education, transport, power generation); and coordinating the different parts of the reform programme. Left to the market and an emerging class of entrepreneurs, none of this would have happened.

Tran Dac Loi, of the Communist Party of Vietnam, gives a very clear explanation of the relationship between state and market in a market socialist economy (note that Vietnam follows a very similar economic model to China): ”The market is managed and regulated by the socialist state in order to utilise the positive sides, minimise the negative ones, and direct market activities into implementation of given comprehensive development goals. Market mechanisms are combined with macro planning by the state… The state economic sector should play the dominating role in key areas essential to macro economy such as energy, finance, telecommunications, aviation, railways, maritime, public transportation, etc… The land and natural resources remain within all-people ownership under the state management.”35

Tran continues: “We are aware that in the market economy in particular and in the transition period in general, it is impossible to avoid the gap between the rich and the poor; but the state and the whole society should focus on upholding the poor, supporting the disadvantaged, reducing poverty, increasing access to education, healthcare, social welfare as well as the improving and enhancing living standard of the people accordingly on every step of economic development. Unlike the charity acts and tiny, inadequate re-distribution seen under capitalism, these are persistent and obligatory targets to be achieved in the development process towards socialism.”

Such an arrangement is fundamentally different to the organisation of production in a capitalist society.

Opening up has led to development

China’s opening up to foreign investment and its integration into global markets is often presented by some leftists as prima facie evidence of its having become a capitalist country. Jenny Clegg points out that China’s joining of the World Trade Organisation in 2001 was seen as “the outcome of a gradual process of capitalist restoration – a final step in sweeping away the last obstacle in the way of China’s transition from socialism.”36

Clegg goes on to explain that WTO membership had nothing to do with capitalist restoration, and everything to do with developing China’s productive forces, strengthening its geopolitical position, and thereby building a better life for its people. China joined the WTO in order to able to “insert itself into the global production chains linking East Asia to the US and other markets, thus making itself indispensable as a production base for the world economy. This would make it far more difficult for the United States to impose a new Cold War isolation.” Further, China’s integration in the world economy has allowed it to be a part of “the unprecedented global technological revolution, offering a short cut for the country to accelerate its industrial transformation and upgrade its economic structure.”

The opportunity to rapidly learn from the advanced capitalist countries’ developments in science and technology was the principal reason for ‘opening up’. Blockaded by the western countries after the revolution, and then cut off from Soviet support as a result of the Sino-Soviet split, China in 1978 was still relatively backward from a technological point of view, in spite of having made some great advances and having developed a standard of living for its people that was far ahead of other countries at a similar level of development.

Deals with foreign investors were drawn up such that foreign companies trying to expand their capital in China were compelled to share skills and technology, and operate under Chinese regulation.37 “Foreign investment was regulated to make it compatible with state development planning. Technology transfer and other performance requirements ― conditions attached to foreign investment to make sure that the host country gets some benefit from foreign investment, such as the use of locally produced inputs, or the hiring of local managers ― were common and are still an issue of contention with the United States today.”38

Much as foreign investors might like to keep their technological secrets, they’ve had limited choice. “As China has grown more powerful, the demand for technology transfer has become ever more insistent, with foreign companies, complain though they may, generally conceding.”39 For example, “in order to gain access to the vast and rapidly growing China market, Boeing was required to assist the main Chinese aircraft manufacturer in Xian to successively establish a capacity to produce spare parts and then manufacture whole sections of aircraft, and finally to assist in the development of a capacity to produce complete aircraft within China. In order to gain the right to invest in car production in China, Ford Motor Company was required to first invest for several years in upgrading the technical capacity of the Chinese automobile spare parts industry through a sequence of joint ventures.”40

After four decades of opening up, China is now one of the world’s leading innovators in science and technology; it has caught up, through strategically and methodically integrating itself into a globalised value chain, whilst at all times driving a hard bargain, learning relentlessly, and keeping its focus on the needs of its population.

Commitment to Marxism

Only socialism can save China, and only Chinese socialism can lead our country to development – a fact that has been fully proved through the long-term practice of the Party and the state. (Xi Jinping)41

Through four decades of reform and opening up, the CPC has retained its commitment to Marxism. Deng Xiaoping was clear from the very beginning of the reform process that China “must keep to the socialist road. Some people are now openly saying that socialism in inferior to capitalism. We must demolish this contention… Deviate from socialism and China will inevitably revert to semi-feudalism and semi-colonialism. The overwhelming majority of the Chinese people will never allow such a reverse… Although it is a fact that socialist China lags behind the developed capitalist countries in its economy, technology and culture, this is not due to the socialist system but basically to China’s historical development before liberation; it is the result of imperialism and feudalism. The socialist revolution has greatly narrowed the gap in economic development between China and the advanced capitalist countries.”42

This is echoed today by the current leadership. As Xi Jinping puts it, “socialism with Chinese characteristics is socialism and nothing else. The basic principles of scientific socialism must not be abandoned; otherwise it is not socialism.”43

In no country in the world is Marxism studied as widely as it is in China. President Xi Jinping has a doctorate in Marxist philosophy. Marxism is part of the core curriculum at every level of the education system. Ninety million members of the Communist Party of China are required to engage in Marxist study. “The whole party should remember: what we are building is socialism with Chinese characteristics, not some other ism”, says Xi.44 Indeed, the Communist Party of China considers itself “a loyal inheritor of the spirit of The Communist Manifesto”.45 Marx is considered “the greatest thinker of modern times”.46

Those leftists that don’t support contemporary Chinese socialism may scoff at these pronouncements from the Chinese leadership, but the international capitalist class certainly takes them seriously. For example, a recent article in the Washington Times complained bitterly that “Marxism is highly relevant to everyday life in the world’s most populous country, a mandatory curricular course taught at every level of the education system from kindergarten to graduate school. Tens of millions of devoted ‘political teachers’ in the schools, unknown millions of ‘ideological workers’ at every level of the society, and the ubiquitous ‘political commissars’ in the People’s Liberation Army — they all collectively serve as the official clergy of Marxism.”47

It’s difficult to understand why China’s political leadership would go to such lengths to promote Marxism if they are intent on doing away with it. A far more likely explanation is that they’re genuine in their devotion to socialism and their resolve to strengthen it. Naysayers and purists will highlight flaws and inconsistencies, but this is nothing new or interesting. “Actually existing socialism will always fall short of the socialist ideal because it is precisely that ideal implemented within the confines of reality.”48

USSR got the economy wrong. China is not doing that.

At several points in the postwar period, Soviet leaders identified problems in the USSR’s economy and proposed changes; various reforms were attempted, but none of them succeeded in breaking the trend towards stagnation and the widening productivity gap with the major capitalist economies. The Chinese leadership after Mao also identified problems (many of them decidedly similar to those identified by the Soviets) and also implemented reforms; these reforms were resoundingly successful. If “the proof of the pudding is in the eating”, then it must be concluded that the Chinese made much better pudding, since the trajectory of the Chinese economy has been one of rapid growth, ever-improving living standards, and a narrowing of the gap with the advanced capitalist countries.

Was reform necessary?

One important question is whether reform was necessary in either case. It would be easy enough to extrapolate from the Soviet experience and conclude that any move away from a heavily centralised ‘command economy’ is a disaster, since the Soviet economy scored its greatest successes before Khrushchev, Liberman and others started tinkering with market reforms.49

What’s the direction of causality? Did stagnation provoke reforms, or did reforms create stagnation? Keeran and Kenny, whose book Socialism Betrayed is essential reading on the Soviet collapse, take the latter position: “Even cautious proponents of markets within the context of a dominant central plan, have to explain the following awkward facts. In the final three and a half decades of the USSR’s existence, the more market relations and other reforms were introduced — officially and legally in several reform waves (Khrushchev, Kosygin and Gorbachev), and quietly, steadily, and often illegally through the spreading second economy — the more the long-term economic growth rates came down… A key lesson of the Soviet collapse is that market relations must be held to a minimum.”50

However, vigorous opponents of markets within the context of a dominant central plan have to explain the ‘awkward fact’ that Chinese market socialism has not been a failure, has not led to stagnation, has not led to the fall of socialism, has not weakened the rule of the communist party, and has not weakened Chinese national unity. John Ross points out that, in the 40 years from 1978, China’s economy expanded at an average of 9.5% per year, resulting in a 35-fold increase.51 So while Soviet reform coincided with stagnation, Chinese reform coincided with unprecedented growth. Clearly we cannot simply conclude that market reforms are inherently bad and weaken socialism.

The Italian Marxist philosopher and historian Domenico Losurdo notes that, in the 1930s and 40s, the heavily centralised Soviet economy was working very well: “the rapid development of modern industry was interwoven with the construction of a welfare state that guaranteed the economic and social rights of citizens in a way that was unprecedented.”52 However, after the period of frenetic building of socialism, followed by the war, followed by the reconstruction, came “the transition from great historical crisis to a more ‘normal’ period” in which “the masses’ enthusiasm and commitment to production and work weakened and then disappeared.” In its final few years, “the Soviet Union was characterised by massive absenteeism and disengagement in the workplace: not only did production development stagnate, but there was no longer any application of the principle that Marx said drove socialism — remuneration according to the quantity and quality of work delivered.”

Losurdo contends that China in the late 1970s faced very similar problems: “the China that arose from the Cultural Revolution resembled the Soviet Union to an extraordinary degree in its last years of existence: the socialist principle of compensation based on the amount and quality of work delivered was substantially liquidated, and disaffection, disengagement, absenteeism and anarchy reigned in the workplace.” It is beyond question that by 1978, almost three decades after the founding of the People’s Republic, China was still a long way from being an advanced country, and although it had achieved extraordinary progress in terms of life expectancy, education and mass empowerment, it “still faced tremendous challenges, with a GDP per capita figure lower than that of India and 542 million people living on less than one dollar per day.”53 Hundreds of millions of people in the villages still faced food insecurity and poor housing conditions. *“If we don’t do everything possible to increase production, how can we expand the economy? How can we demonstrate the superiority of socialism and communism? We have been making revolution for several decades and have been building socialism for more than three. Nevertheless, by 1978 the average monthly salary for our workers was still only 45 yuan, and most of our rural areas were still mired in poverty. Can this be called the superiority of socialism?”54

Productivity levels were low, and the use of advanced technology was decades behind the US (and, increasingly, the ‘Asian tigers’ – smaller states that were actively supported by the US in the development of hi-tech capitalism as a means of averting any possibility of socialist revolution). Peter Nolan describes some of the problems on the ground: “The system produced little interest among producers in the usefulness of their output. The pervasive atmosphere of shortage meant that there existed a seller’s market for a large proportion of output. Specification of output targets in simple physical terms led to a pervasive tendency towards the narrowing of product range towards those products which were easiest to produce. Thus, the mix of consumer goods notoriously failed to respond to consumer signals and there was a high rate o breakdowns of consumer durables.”55 These problems closely resemble the problems of the Soviet economy in the 1970s as described earlier in the series.56 Indeed, a pattern can perhaps be discerned from the experiences of ‘actually existing socialism’ thus far: while a heavily voluntaristic approach to production can be very effective for a period of time, it suffers from diminishing returns and can’t be sustained forever.

Being a poor country with a tremendous responsibility to meet the immediate needs of its huge population, China lacked the resources to invest heavily in research and development, and the resulting low productivity meant that it couldn’t guarantee an adequate standard of living to its people. Cut off from the global marketplace, it wasn’t able to quickly learn from others or benefit from an ever-more globalised division of labour. The post-Mao leadership came to the conclusion that the most important step to solidify socialism and to quickly improve the living standards of the Chinese population was to develop the productive forces by any means necessary; hence reform and opening up.

China’s economic reforms have been extraordinarily successful

The vastly different results of the Russian and Chinese reforms are demonstrative of the critical importance of choosing the right reform strategies and paths. (Hu Angang)*57

As has been discussed previously, Soviet attempts at economic reform didn’t meet with any great success; the tentative reforms during the Khrushchev and Brezhnev periods had minimal impact, and the Gorbachev-era reforms were basically disastrous. From the mid-1970s onwards, the Soviet economy entered what is widely considered to be a period of stagnation, just as the capitalist countries were starting to leverage developments in technology to achieve major improvements in productivity. Jude Woodward notes that, “from 20 per cent of the size of the US economy in 1944, the Soviet economy peaked at 44 per cent that of the US by 1970 ($1,352 billion to $3,082 billion) but had fallen back to 36 per cent of the US by 1989 ($2,037 billion to $5,704 billion). It never came near challenging the economic weight of the US.”58

In China, by contrast, “economic growth rates were transformed from the respectable 4–5 per cent of the Mao period to an annual growth rate of 9.5 per cent between 1978 and 1992.”59 Comparing China’s GDP with that of India, Martin Jacques finds that in 1950 – a year after the founding of the PRC and three years after Indian independence – “the per capita income of India was around 40 per cent greater than that of China; by 1978 they were roughly on a par. By 1999, China’s was not far short of twice that of India’s and by 2009 it was over three and a half times as great.” Another decade or so later and China’s per capita GDP is around 4.5 times that of India. In 1978, China’s GDP was around a quarter that of the USSR; by the time the Soviet Union collapsed in 1991, China’s GDP was around half that of the USSR. Today, China’s GDP is nine times greater than Russia’s.

Since 1978, China’s economy has grown more than any other country; it also tops the list for per capita GDP growth, which has risen from $156 in 1978 to $8,123 at the time of writing (2018).60 This puts it firmly in the ‘middle income’ bracket. In the same period, according to the Center for Economic and Policy Research, approximately 94 percent of the reduction of extreme poverty globally took place in China.61

China in 1978 was still a poor country, with half the population – almost half a billion people – subsisting below the dollar-a-day poverty line. Today less than two percent of the Chinese population lives below the ‘absolute poverty’ line (currently defined by the World Bank as $1.90 per day).

Jacques sums up: “Given its scale and speed, China’s economic transformation is surely the most extraordinary in human history, notwithstanding the sheer novelty of Britain’s as the first… Economic growth is no longer confined to a few ‘islands’ but has spread out in waves to most provinces of China, albeit in sharply varying degrees… China’s GDP represented 4.9 per cent of the world’s total in 1978, but is likely to rise to 18–20 per cent by 2020.”

The underground ‘second economy’ that did so much to undermine the Soviet system has not been an issue in China, because the market is legal and heavily regulated. Discussing the parallel process in Vietnam, Vince Sherman writes that the gradual implementation of market reforms allowed the Communist Party to ensure the dominance of the socialist state over the private sector. “Additionally, it forced ‘second economy’ enterprises to emerge from the black market and placed them under control of the state.”62

While the capitalist world is still struggling to come to terms with the aftershocks of the 2008 financial crisis, China and Vietnam have forged ahead. “In just four years, 2007 to 2011, China’s industrial production jumped from 62 percent of US levels to 120 percent, according to UN accounting.”63

The whole country has benefitted

Although inequality has emerged as a serious problem, China’s growth hasn’t exclusively benefitted a handful of rich people. Nearly all Chinese people are doing substantially better than they were 40 years ago, in terms of access to sufficient and good quality food, decent housing, adequate clothing, access to services, ability to travel, and amenities (washing machines, televisions, etc). Along with the vastly increased number of jobs in manufacturing and the service sector, the state is spending ever-increasing amounts on social welfare. The proportion of fiscal revenue in GDP rose from 10.7 percent in 1995 to 20.4 percent in 200864, and the lion’s share of this revenue is put to work for poverty reduction, public services and social security. The influential economist Hu Angang writes that “China’s modernisation is absolutely not designed to benefit just a portion of its people, cities, and regions. Rather, China’s modernisation aims to provide for the common prosperity of all people, across urban and rural areas and reaching both the coastal region and the vast interior hinterland. Such egalitarianism is the most significant difference between China’s socialist modernisation and the capitalist modernisation program of the world’s already developed countries.”

The number of people lifted out of poverty during the reform process numbers in the hundreds of millions. The Chinese leadership has set a goal to fully eradicate extreme poverty by 2020. Ajit Singh notes: “From 1978-2015, real income for the bottom half of earners grew 401 percent, compared to falling by one percent in the US. Chinese wage growth is also soaring, with hourly manufacturing wages rising 12 percent per year since 2001.”65 On top of this, government spending on education and healthcare is expanding rapidly.

Child malnutrition is becoming a thing of the past. According to the World Food Programme, between 1990 and 2010, the number of underweight children under the age of five fell by 74 percent and rates of stunting dropped by 70 percent. “Better nutrition has significantly improved the health and quality of life of Chinese children… China alone accounts for almost two thirds of the total reduction in the number of undernourished people in developing regions since 1990.”66 This story can usefully be compared with India, where child malnutrition is still, tragically, endemic.67

In the early years of the People’s Republic, a decision was taken to emphasise primary and secondary education in order to ensure every person received at least a few years of schooling. This was certainly the best use of resources at the time, but one result was that China had too few highly qualified young people. In recent decades, the government has expanded its focus to include college and university, and accordingly the rate of admission to higher education institutions is now 43 percent of high school graduates. “A record-breaking 8m students will graduate from Chinese universities in 2017. This figure is nearly ten times higher than it was in 1997 and is more than double the number of students who will graduate this year in the US.”68 The rate of admission to pre-school kindergarten is also extremely high for a developing country, standing at 77 percent.69

The Human Development Index (HDI) is a useful metric that has become popular in recent years, compositing life expectancy, educational level and per capita income. In HDI terms, China has gone from 0.407 on the scale in 1980 to 0.727 today (for calibration purposes, Norway is at the top of the charts with 0.949 and the Central African Republic at the bottom with 0.352). China’s increase in HDI makes it the only country that has leap-frogged the ‘medium’ HDI rank, moving from the ‘low HDI’ group in 1990 to the ‘high HDI’ group today (the requirement for the ‘very high HDI’ group is 0.800 – it seems likely China will get there within a few years).

Income inequality rose consistently from the start of the reform process – an expected but unfortunate side effect of allowing private enterprise and foreign investment. It rose to startling levels in the 2000s, but numerous studies show that it’s now starting to come back down, as jobs and investment spread inland.70 Deng’s controversial suggestion that “some people in rural areas and cities should be allowed to get rich before others”71 has worked out well in practice. The coastal and riparian cities, particularly Shanghai, Shenzhen and Guangzhou, raced ahead, attracting vast investment and expanding rapidly. Now, however, “companies are moving production to the interior provinces and, in their place, Guangdong is seeking to move up the value ladder, develop its service industries and shift into new areas of production that rely on design and technology rather than the perspiration of its people and the migrant workers from faraway provinces.”72 In the meantime, the vastly increased tax revenue resulting from those that were “allowed to get rich before others” has been spent according to the formula agreed at the start, that is: “for the benefit of the people, a small portion being used to strengthen national defence and the rest to develop the economy, education and science and to raise the people’s living standards and cultural level.”73 In this sense, China is one of the few places in the world where the concept of wealth ‘trickling down’ is not sheer fantasy.

Losurdo points out that inequality must be considered both within a given society and at a world scale – “the inequality existing on the global scale between the most and least developed countries”. Looked at from a global perspective, China has made an extraordinary contribution to reducing inequality, given that the living standard of its people is starting to approach that of Western Europe. Losurdo also deploys a powerful metaphor for better understanding inequality within China itself:

There are two trains running from a station called ‘underdevelopment’ and heading towards a station called ‘development.’ One of the two trains is very fast, while the other train is slower: consequently, the distance between the two increases progressively. This discrepancy can be explained easily if you keep in mind the size of continental China and its tormented history: the coastal regions, which already had infrastructure (albeit elementary), enjoying easier access and the possibility of trade with developed areas, are in a better situation than the traditionally less developed regions that are landlocked and have as neighbours countries and areas marked by economic stagnation. It is clear that the distance between the two trains travelling at different speeds widens, but we should not lose sight of three fundamental points: in the first place, the direction (the development) is the same; second, today some interior regions are seeing their income grow faster than that of the coastal regions; third, because of the impressive urbanisation process (which pushes the population to the most developed regions and areas), the faster train tends to carry more passengers. Not surprisingly, if we take China as a whole, we see a steady and sizeable growth of the middle class, as well as a wider diffusion of social protection and features of the welfare state.74

A global leader in science and technology

The USSR never caught up with the major imperialist powers in terms of technology and productivity, for a number of reasons discussed earlier in this series. From the late 1970s onwards, the technology gap between the Soviet Union and the US grew sharply. In China, however, productivity and innovation levels are catching up with the most advanced capitalist countries.

While China focused on ‘technology transfer’ and learning from the US and Japan in the first decades of reform, it has in recent years it has been “steadily climbing the technological ladder.” Martin Jacques wrote a few years ago that “it is an illusion to think that China will be trapped indefinitely in the foothills of technology. In time it will become a formidable technological power.”75 This process is taking place before our eyes. Veteran science writer Philip Ball notes that “the patronising old idea that China … can imitate but not innovate is certainly false now. In several scientific fields, China is starting to set the pace for others to follow. On my tour of Chinese labs in 1992, only those I saw at the flagship Peking University looked comparable to what you might find at a good university in the west. Today the resources available to China’s top scientists are enviable to many of their western counterparts.”76

Soviet infrastructure was starting to crumble by the 1980s, while modern Chinese infrastructure is world-class. For example, although China didn’t have high-speed rail until 1999, it now has over 25,000 km, accounting for around two-thirds of the global total.77

The number of Chinese internet users is around three times the number of US internet users (per capita it is slightly behind the US, but this is still very impressive given that “the relative gap in the number of internet users between China and the US in 1993 was a factor of 3,000”78).

Why has Chinese economic reform succeeded when the Soviet reform failed?

Superficially, the reform strategy pursued by China from 1978 appears similar to Gorbachev’s perestroika; however, there are profound differences between the Chinese and Soviet approaches that help to explain the tremendous success of one and the outright failure of the other.79

Veteran Russian communist Gennady Zyuganov points out that a successful economic reform demands “a well-developed programme and precisely defined goals; a team of vigorous and highly intellectual reformers; a strong and effective system for controlling political phenomena; thoroughly developed and carefully considered methods of instituting the reforms; the mobilisation of the mass media to explain the meaning, goals, and consequences of the reforms for the state as a whole and for the individual person in particular for the purpose of involving as much of the population as possible in the reform process; and the preservation and development of the structures, relations, functions, methods, and lifestyles that have earned the approval of the people.”80

All these elements were put in place in China, and were notably absent in Gorbachev’s Soviet Union. Gorbachev didn’t select people on the basis of competence or experience but on the basis of their uncritical support for his agenda. He didn’t mobilise the existing, proven state structures, but sought to weaken them. The media wasn’t used to unite the people behind a programme of development but to denigrate the Communist Party. The economic programme was incoherent and subject to sudden changes in direction. The masses were not invited to participate in any other way than doing what they were told. What followed was “a parade of political arrogance, demagoguery, and dilettantism, which gradually overwhelmed and paralysed the country.”81

China’s approach was extremely cautious and pragmatic, “based on a step-by-step, piecemeal and experimental approach. If a reform worked it was extended to new areas; if it failed then it was abandoned.”82 All reforms had to be tested in practice, and all results had to be analysed and learned from. Chen Yun, the lead economist of the Deng era, stated in 1980 that “the steps must be steady, because we shall encounter many complicated problems. So do not rush… We should proceed with experiments, review our experience from time to time, and correct mistakes whenever we discover them, so that minor mistakes will not grow into major ones.”83 This is exactly how things proceeded.

Gorbachev’s reforms were implemented in a heavy-handed, top-down way, without consulting the people or attempting to collate feedback. Meanwhile in China, many key ideas “came from people at the grass roots. We processed them and raised them to the level of guidelines for the whole country. Practice is the sole criterion for testing truth.”84 Reform in China was patient, incremental and results-oriented, whereas “Gorbachev made the fatal mistake of trying to do too much, too fast.”85

China’s leaders had confidence in their own home-grown ideas and paid precious little attention to the young stars of western economics, who at the time were near unanimous in their adherence to the ‘new orthodoxy’ of neoliberalism. There was certainly no hollowing out of the state, which continued to be the biggest player in both the strategic path and the day-to-day running of the economy. This can be contrasted with the Soviet Union, where Gorbachev’s team economists had fallen under the neoliberal spell and come to the conclusion that planning and state guidance were harmful. Marxist economist Michael Roberts observes that Gorbachev’s sudden dismantling of the planning agencies “provoked chronic excess domestic demand and the need for foreign imports”, leading the Soviet economy to implode. Meanwhile, the opposite was happening in China, where “the relaxation of restrictions on private capital development was combined with state control and planned and state-led heavy investment.”86

Soviet economists transitioned from central-planning dogma to neoliberal dogma, failing to come up with creative approaches that accurately took account of existing strengths and weaknesses. The Chinese approach was that “there should be no blind obedience to superiors or books; there should be obedience to truth and facts only; there should be exchange, comparison, and repetition.”87

Gorbachev’s team were never able to reach consensus for their plans; they merely bulldozed or sidelined those in the Communist Party who didn’t agree with them. As a result, there was never any real unity of purpose around perestroika. In China, the gradual, results-oriented approach allowed the top leadership to win round the Central Committee, the regional leaders and the party rank and file.

China is not weakening Communist Party rule or attacking its own history

If China allowed bourgeois liberalisation, there would inevitably be turmoil. We would accomplish nothing, and our principles, policies, line and development strategy would all be doomed to failure.88

The fifth article in this series includes a lengthy description of how the Soviet top leadership in the Gorbachev era attacked the Communist Party, questioned its legitimacy, re-wrote its history and sowed disillusion among the Soviet people. The attack on the party was putatively carried out in the name of enhancing democracy, yet the results turned out to be profoundly anti-democratic. The Communist Party had been the major vehicle for promoting the needs and ideas of the working class; once it was sidelined, the workers had no obvious means of organising in defence of their interests. This opened up a space for a pro-capitalist minority to dominate political power and, ultimately, break up the country and dismantle socialism.

The Chinese leadership understood that the People’s Republic of China could not survive without the uncontested leadership of the Communist Party. Deng “believed that the most urgent task was to improve people’s livelihood. In his view, all other reforms, including political ones, had to serve this primary goal. He believed that copying the Western model and placing political reform on the top of the agenda, like the Soviets were doing at the time, was utterly foolish. In fact, that was exactly Deng’s comment on Gorbachev after their meeting: ‘This man may look smart but in fact is stupid.’”89

In a changing economic environment, where private capital was being accumulated and a new class of entrepreneurs emerging, continued Communist Party rule was essential to guarantee that development benefitted the masses and that the new owners of capital didn’t become politically dominant. Moreover, political stability was an absolute requirement for successful economic reform.

In practically every important speech on China’s development path from 1978 until his death in 1997, Deng insisted on what he termed the Four Cardinal Principles: 1) Defend the socialist path; 2) Maintain the dictatorship of the proletariat (working class rule); 3) Maintain the leadership of the party; and 4) Adhere to Marxism-Leninism and Mao Zedong Thought. He didn’t mince his words when it came to the importance of a workers’ state: “What kind of democracy do the Chinese people need today? It can only be socialist democracy, people’s democracy, and not bourgeois democracy, individualist democracy… Personal interests must be subordinated to collective ones, the interests of the part to those of the whole, and immediate to long-term interests. In other words, limited interests must be subordinated to overall interests, and minor interests to major ones… It is still necessary to exercise dictatorship over all these anti-socialist elements… The fact of the matter is that socialism cannot be defended or built up without the dictatorship of the proletariat.”90

A few years later, when some people started to call for an end to Communist Party rule and for China to move towards a western-style parliamentary system, Deng reiterated: “Our modernisation drive and the open policy must exclude bourgeois liberalisation… Our goal is to create a stable political environment; in an environment of political unrest, it would be impossible for us to proceed with socialist construction or to accomplish anything. Our major task is to build up the country, and less important things should be subordinated to it… In China, bourgeois liberalisation means taking the capitalist road and leads to disunity.”91 These words were spoken in 1985, a couple of months after Mikhail Gorbachev became General Secretary of the Communist Party of the Soviet Union. If only Gorbachev had been more influenced by China’s approach.

China has not followed the Soviet example of attacking its own history. Although the Chinese leadership made serious criticisms of certain of Mao’s policies (in particular the Great Leap Forward and the Cultural Revolution)92, it has never come anywhere close to repudiating Mao and undermining the basic ideological foundations of Chinese socialism. Quoting Deng again: “Not only did Mao Zedong Thought lead us to victory in the revolution in the past; it is – and will continue to be – a treasured possession of the Chinese Communist Party and of our country. That is why we will forever keep Chairman Mao’s portrait on Tiananmen Gate as a symbol of our country, and we will always remember him as a founder of our Party and state… We will not do to Chairman Mao what Khrushchev did to Stalin.”93

Khrushchev and Gorbachev both thought that tarnishing the Soviet Communist Party’s historical record would help to rally forces for constructing a renewed socialism; they were wrong. Xi Jinping on the other hand has been at pains to highlight the continuity between the Mao era and the post-Mao era: “The two phases – at once related to and distinct from each other – are both pragmatic explorations in building socialism conducted by the people under the leadership of the Party. Although the two historical phases are very different in their guiding thoughts, principles, policies, and practical work, they are by no means separated from or opposed to each other.”94 This is no marginal position but a view held more-or-less unanimously by the Central Committee of the CPC.

Xi points out elsewhere that “one important reason for the disintegration of the Soviet Union and the collapse of the CPSU is the complete denial of the history of the Soviet Union, and the history of the CPSU, the denial of Lenin and other leading personalities, and historical nihilism confused the people’s thoughts.”95 Although there is much more press freedom in contemporary China than there ever was in the USSR, and while it’s not unusual for individual Chinese analysts to promote “historical nihilism”, such ideas have gained very limited traction, unlike in the Soviet Union where, by the late 1980s, the constant stream of ridiculous Cold War anticommunist propaganda – much of it emanating from state-owned media – had a serious impact on popular confidence.

The Communist Party of China is not suffering a crisis of legitimacy; it remains extremely popular. Countless surveys show that the vast majority of Chinese people are satisfied overall with the performance of the government and feel that life is improving year on year.96 Martin Jacques writes that, according to a 2009 Harvard survey, “no less than 95.9 per cent of Chinese were either relatively or extremely satisfied with the central government… By any criteria, this indicates an extraordinarily high level of satisfaction… Contrary to Western conventional wisdom, the Chinese state enjoys greater legitimacy than any Western state, even though Western-style democracy is entirely absent… The rule of the Communist Party is no longer in doubt: it enjoys the prestige that one would expect given the transformation that it has presided over.”97

The Chinese government has shown itself to be highly effective at tackling the issues people care about, from poverty alleviation to protecting national unity, from tackling corruption to creating conditions for a constantly improving quality of life. The CPSU in the 1980s was becoming more fragile and less popular; the CPC continues to get stronger, more effective, and more popular.

China has managed to avoid a superpower ‘Cold War’

The last thing China wants is war. China is very poor and wants to develop; it can’t do that without a peaceful environment. Since we want a peaceful environment, we must cooperate with all of the world’s forces for peace.98

The necessity of maintaining peaceful relations with the imperialist world has been a preoccupation of socialist states from 1917 onwards. All socialist leaderships – those of Lenin, Stalin, Mao, Ho Chi Minh, Kim Il Sung and Fidel Castro included – have pursued ‘peaceful coexistence’ where it was possible (although since it “takes two to tango”, peaceful coexistence has often been largely illusive).

The importance of international peace for China’s development was implicitly realised by Mao at the start of the 1970s, when Henry Kissinger’s visit to Beijing opened the way for the PRC finally taking its seat at the United Nations. Continuing US-China communications throughout the 1970s led to the establishment of formal diplomatic relations between China and the US in 1979. Ever since, China has done a remarkable job of ‘playing nice’ with the capitalist world whilst sticking to its own development path and refusing to succumb to the temptations of western-style liberalism.

Peaceful coexistence has of course meant some painful compromises, with China essentially relinquishing any claim to leadership of the world revolution. The Soviet Union took on a heavy responsibility as the global centre of progressive forces, giving extensive practical solidarity to socialist states, national liberation movements and progressive governments around the world – including vast economic support to the People’s Republic of China between 1949 and 1959; military and economic support to Cuba, Vietnam, Afghanistan, Angola, Nicaragua, Korea, Ethiopia and elsewhere; training, aid and weapons to the ANC in South Africa, Frelimo in Mozambique, Swapo in South West Africa (now Namibia), PAIGC in Guinea Bissau, and others.

In addition to direct aid, the Soviet role as the protector of the progressive world – and its position as one of two ‘superpowers’ – meant that it was forced to devote an extraordinary portion of its resources to military development. The figures vary wildly, but Alexander Pantsov estimates that, “at the start of Gorbachev’s perestroika, in 1985, the Soviets were spending 40 percent of their budget on defence.”99 Indeed Pantsov concludes that “the economy of the USSR collapsed under the burden of military expenditures”.

Jacques characterises the Soviet Union as having “opted for autarchy and isolation”, in comparison to post-1978 China, which “sought integration and interdependence”. He further claims that the USSR “embarked on military confrontation and a zero-sum relationship with the United States” whereas ”China pursued rapprochement and cooperation in an effort to create the most favourable conditions for its economic growth.” The characterisation of Soviet policy is unfair. The Soviet leadership didn’t opt for isolation, but it was subjected to isolation by an imperialist world order that was determined to undermine it. It didn’t “embark on military confrontation”, but it dutifully came to the defence of many of its allies that were threatened by the imperialist powers. These allies were not, as they are sometimes caricatured, mere pawns in a superpower rivalry between the US and the USSR; they were popular movements for socialism and/or national independence.

Nonetheless, the USSR’s economic isolation and disproportionate military expenditure caused it tremendous problems and contributed to its downfall. With a relatively safe international environment, China has been able to reduce its military spending from around 7 percent of GDP in 1978 to just under 2 percent currently. It has not had to face a ‘full-court press’ and has avoided getting caught up in an arms race.100

The relatively peaceful international context has allowed the Chinese state to systematically pursue economic development, and the latter has had a reciprocal effect on China’s safety, since it has made China a key player in global economic affairs. Jude Woodward notes that China’s rise has forced many countries to pursue good relations with it, even where they dislike its ideology. “Rather developed neighbours such as South Korea or Taiwan are deeply economically engaged with China and do not want this derailed… Even America’s European allies, notably Germany, France and Britain, were prepared to ignore US opinion on China when they signed up to the AIIB [Asian Infrastructure Investment Bank].”101

Although China’s global strategy has meant stepping back from an explicit leadership role in the world revolution, it has nonetheless been able to provide crucial support for progressive states. The highly-respected economist Ha-joon Chang points out that Chinese growth has had a profoundly positive impact in Africa and Latin America. “Being relatively poorly endowed with natural resources and growing at breakneck speed, China started sucking in food, minerals and fuel from the rest of the world, and the effect of its growing weight was felt more and more strongly. This gave a boost to the raw-material exporters of Africa and Latin America, finally allowing these economies to make up some of the ground they had lost in the 1980s and the 1990s. China also became a major lender and investor in some African countries, giving the latter some leverage in negotiating with the Bretton Woods institutions and the traditional aid donors, such as the US and the European countries.”102

Venezuelan revolutionary leader Hugo Chávez made a point of establishing strong relations with China, calling Chinese socialism “an example for Western leaders and governments that claim capitalism is the only alternative.”103 Billions of dollars of oil-backed low-interest Chinese loans have helped to underpin the impressive advances in human development in Venezuela over the last two decades. China has given similar support to Cuba, Bolivia, Nepal, Mozambique, Zimbabwe and South Africa, among others.

Gorbachev was also keen to create a more peaceful international environment, to reduce tensions and cut down on military expenditure; however, unlike the Chinese, he couldn’t find a way to do so that didn’t involve outright capitulation to imperialism. With a stagnant economy, rising internal unrest and very few friends at home, he needed both cash and credibility from his new-found partners in the west: Margaret Thatcher, Ronald Reagan, George HW Bush and Helmut Kohl. In order to maintain their friendship, he withdrew Soviet support for many of its allies, gave unilateral commitments on disarmament without getting anything in return, and ultimately gave a free hand to pro-capitalist and nationalist-separatist elements within the USSR.

Conclusions

Socialism will definitively remain the only real hope of peace and survival of our species. This is precisely what the Communist Party and the people of the People’s Republic of China have irrefutably demonstrated. They demonstrated at the same time, as Cuba and other brotherly countries have shown, that each people must adapt their strategy and revolutionary objectives to the concrete conditions of their own country and that there are not two absolutely equal socialist revolutionary processes. From each of them, you can take the best experiences and learn from each of their most serious mistakes. (Fidel Castro)104

It seems clear that China is not following the trajectory that the USSR did. Its reform process has been successful; the quality of life of its people continues to improve; it is emerging as a global leader in technical innovation and environmental preservation; nationalist separatism is being effectively contained; and the Communist Party of China remains popular and dominant. In short, China has continued to develop forms of socialism that are appropriate to its changing conditions.

Chinese economists often talk of the “latecomers’ advantage” in the world of technology, whereby “technological innovation and industrial upgrading can be achieved by imitation, import, and/or integration of existing technologies and industries, all of which implies much lower R&D costs.”105 There’s a sense in which this idea applies to the world of big-picture politics as well. The USSR was the world’s first socialist state, and as such its successes and mistakes constitute indispensable raw material for the study of socialist society. The CPC has been assiduous in learning from the Soviet demise in order to avoid suffering a similar fate. David Shambaugh, citing a study by the Chinese Academy of Social Sciences, sums up some of the key lessons the CPC has tried to absorb. These include “concentrating on economic development and continuously improving people’s standard of living”, “upholding Marxism as the guiding ideology”, “strengthening party leadership”, and “continuously strengthening efforts on party building – especially in the areas of ideology, image, organisation, and democratic centralism – in order to safeguard the leadership power in the hands of loyal Marxists.”106

The issue of maintaining a workers’ state and preventing the ascendance and dominance of pro-capitalist ‘liberals’ is arguably the most important lesson to be learned from the collapse of the USSR. Even with ongoing economic difficulties, it’s perfectly conceivable that Soviet socialism could have survived if the top leadership hadn’t decided to abandon the project. Allen Lynch, a prominent researcher of Russian politics at the University of Virginia, speculates that, if Gorbachev’s predecessor Yuri Andropov had lived another couple of decades (he died at the age of 69 after just one year as General Secretary of the CPSU), things might have been very different. “Judging from Andropov’s programmatic statements in 1982-83, as well as his long record at the summit of Soviet politics, there can be little doubt that he would not have countenanced anything remotely resembling Gorbachev’s political reforms or that he would have hesitated to use force to stop public challenges to communist rule. Moreover, Andropov’s networks in the Party, KGB, government and military were incomparably stronger than Gorbachev’s and he might well have leveraged a viable coalition for piecemeal reform of the Soviet economy. While the long-term success of Andropov’s economic vision may be questioned, it is entirely plausible that the Soviet Union – like Communist China – might still be with us.”107

The lessons from the collapse of the Soviet Union must be thoroughly learned by the remaining (and future) socialist states as well as the global working class as a whole. In the current stage of history, where these states constitute a global minority and where they face a powerful ideological enemy that is determined to destabilise (and ultimately destroy) them, these lessons are broadly applicable. They form a key part of the great legacy that the Soviet experience leaves to the global working class.

We note in closing that the Soviet project is by no means a historical relic; its experience is relevant and even crucial to contemporary politics. The heroic feats of the Soviet people live on in Cuba, China, Vietnam, Laos and Korea; in socialist-oriented and progressive states and movements around the world. Even in the territories of the former Soviet Union and the former socialist states in Europe, the memory of better times lives on (not least in the considerable defence and retention of Soviet achievements, traditions and forms in Belarus). Their populations are starting, as Fidel Castro predicted they would, to regret the counter-revolution, to miss “those orderly countries, where everyone had clothes, food, medicine, education, and there was no crime, no mafia”; they are beginning to “realise the great historic mistake they made when they destroyed socialism.”108

Yegor Ligachev – the most prominent of the Soviet politburo members that tried to resist counter-revolution in the Gorbachev era – put it well: “History does not progress in a straight line. It zigzags, steps back, and turns. The socialist phase of civilisation has not managed to avoid those turns. Despite the temporary defeat of socialism in the Soviet Union, the twentieth century will go down in history for the destruction of the colonial system, the defeat of fascist tyranny, and the experiment in construction of a socialist society. On the basis of that history, humanity will eventually realise a breakthrough to a socially just society, one in which the individual will come to full fruition.”109

The way to honour the legacy of the Soviet Union is to study it, to learn from its great successes and its sad demise, and to leverage this history towards a global socialist future. Such is the task left to our generation by the Soviet workers.

  1. Deng Xiaoping,We must adhere to socialism and prevent peaceful evolution towards capitalism – conversation with Julius Nyerere, 1989 ↩

  2. Martin Jacques, When China Rules The World: The Rise of the Middle Kingdom and the End of the Western World, Penguin, 2012 ↩

  3. Fidel Castro, Interview in La Stampa, 1994 ↩

  4. Eric Li interviewed by John Pilger, The Coming War on China (documentary film), 2016 ↩

  5. Deng Xiaoping, cited in John Ross: Deng Xiaoping and John Maynard Keynes, 2012 ↩

  6. Marx and Engels, Manifesto of the Communist Party (chapter 1), 1848 ↩

  7. Albert Szymanski, Is the Red Flag Flying?, Zed Press, 1979 ↩

  8. Xi Jinping, The Governance of China, Foreign Languages Press, 2014 ↩

  9. Cited in Alexander Pantsov, Steven Levine, Deng Xiaoping: A Revolutionary Life, Oxford University Press, 2015 ↩

  10. Deng Xiaoping, Planning and the market are both means of developing the productive forces, 1987 ↩

  11. Siteram Yechury: Economy: Reforms for Restoration of Capitalism (1991), in Vijay Prashad (editor): Red October – The Russian Revolution and the Communist Horizon, LeftWord Books, 2017 ↩

  12. See for example The World’s Most Popular Leader: China’s President Xi, December 2014 ↩

  13. Xinhua: Socialism with Chinese characteristics: 10 ideas to share with world, 2017 ↩

  14. The Governance of China, op cit ↩

  15. Business Insider: China’s latest energy megaproject shows that coal really is on the way out, 2018 ↩

  16. ibid ↩

  17. Bloomberg: China’s War on Pollution Will Change the World, 2018 ↩

  18. Telegraph: China to plant forest the size of Ireland in bid to become world leader in conservation, 2018 ↩

  19. The Guardian: US ‘playing catch-up to China’ in clean energy efforts, UN climate chief says, 2015 ↩

  20. New York Times: Four Years After Declaring War on Pollution, China Is Winning, 2018 ↩

  21. The Guardian: Corporate power has turned Britain into a corrupt state, 2013 ↩

  22. See for example The Atlantic: Why Do Chinese Billionaires Keep Ending Up in Prison?, 2013 ↩

  23. Szymanski, op cit ↩

  24. Return to the Source: Actually Existing Socialism in Vietnam, 2013 ↩

  25. Deng Xiaoping, Building a Socialism with a Specifically Chinese Character, 1984 ↩

  26. Cited in Jude Woodward, The US vs China: Asia’s New Cold War?, Manchester University Press, 2017 ↩

  27. John Ross: Why the Economic Reform Succeeded in China & Will Fail in Russia & Eastern Europe, 1992 ↩

  28. Martin Jacques, op cit ↩

  29. Hu Angang, China in 2020: A New Type of Superpower, Brookings Institution Press, 2012 ↩

  30. For a fuller discussion, see China: Capitalist or Socialist?, The Guardian (Communist Party of Australia), 2010 ↩

  31. The ‘big four’ banks are: the Bank of China, the China Construction Bank, the Industrial and Commercial Bank of China and the Agricultural Bank of China. ↩

  32. Peter Nolan, China’s Rise, Russia’s Fall, Palgrave Macmillan, 1995 ↩

  33. ibid ↩

  34. ibid ↩

  35. Tran Dac Loi, Contribution at the International Forum of Left Forces, 2017 ↩

  36. Jenny Clegg, China’s Global Strategy: Toward a Multipolar World, Pluto Press, 2009 ↩

  37. Technology transfer is discussed in some detail in John Ross’s article Lessons of the Chinese economic reform, part 2, 1996 ↩

  38. David Rosnick, Mark Weisbrot, and Jacob Wilson, The Scorecard on Development, 1960–2016: China and the Global Economic Rebound, 2017 ↩

  39. Martin Jacques, op cit ↩

  40. Nolan, op cit ↩

  41. The Governance of China, op cit ↩

  42. Deng Xiaoping, Uphold the Four Cardinal Principles, 1979 ↩

  43. ibid ↩

  44. Financial Times: Xi Jinping pledges return to Marxist roots for China’s Communists (paywall), https://www.ft.com/content/be1b2528-3f57-11e6-8716-a4a71e8140b0, 2016 ↩

  45. Xinhua: Xi stresses importance of The Communist Manifesto, 2018 ↩

  46. Xinhua: Marx’s theory still shines with truth, 2018 ↩

  47. Washington Post: Marxism: The opium of the Chinese masses, 2015 ↩

  48. Vince Sherman, op cit ↩

  49. This is discussed in detail in the second article in this series. ↩

  50. Roger Keeran and Thomas Kenny, Socialism Betrayed: Behind the Collapse of the Soviet Union, International Publishers, 2004 ↩

  51. Xinhua: China’s record in poverty reduction unparalleled in human history, 2018 ↩

  52. Domenico Losurdo, Has China Turned to Capitalism? Reflections on the Transition from Capitalism to Socialism (paywall), International Critical Thought, 2017 ↩

  53. Black Agenda Report: A Conversation with Ajit Singh, 2018 ↩

  54. Deng Xiaoping: We Shall Concentrate On Economic Development, 1982 ↩

  55. Peter Nolan, op cit ↩

  56. Invent the Future: Why doesn’t the Soviet Union exist any more? Part 2: Economic stagnation, 2017 ↩

  57. Hu Angang, op cit ↩

  58. Jude Woodward, op cit ↩

  59. Martin Jacques, op cit ↩

  60. For a detailed analysis, see John Ross: China’s socialist model outperforms capitalism, 2016 ↩

  61. The Scorecard on Development, op cit ↩

  62. Vince Sherman, op cit ↩

  63. Australian Marxist Review: For an International University of Marxism, 2015 ↩

  64. Figures from Hu Angang, op cit. ↩

  65. Ajit Singh: China: A Revolutionary Present, 2017 ↩

  66. WFP: 10 Facts About Nutrition in China, 2016 ↩

  67. The Guardian: Over 40% of Indian children are malnourished, report finds, 2012 ↩

  68. World Economic Forum: China now produces twice as many graduates a year as the US, 2017 ↩

  69. Xinhua: 43 percent of China’s high school graduates admitted to colleges, 2017 ↩

  70. See, for example, Vox: The great Chinese inequality turnaround (2017) and Quartz: China’s extreme income inequality finally appears to be falling (2017) ↩

  71. Deng Xiaoping, Our work in all fields should contribute to the building of socialism with Chinese characteristics, 1983 ↩

  72. Martin Jacques, op cit ↩

  73. Deng Xiaoping, Bourgeois liberalization means taking the capitalist road, 1985 ↩

  74. Domenico Losurdo, op cit ↩

  75. Martin Jacques, op cit ↩

  76. The Guardian: China’s great leap forward in science, 2018 ↩

  77. Forbes: China’s High-Speed Trains Are Taking On More Passengers In Chinese New Year Massive Migration, 2018 ↩

  78. Hu Angang, op cit ↩

  79. A more detailed analysis of the problems with perestroika can be found in the fifth article in this series. ↩

  80. My Russia: The Political Autobiography of Gennady Zyuganov, Routledge, 1997 ↩

  81. ibid ↩

  82. Martin Jacques, op cit ↩

  83. Cited in Hu Angang, op cit ↩

  84. Deng Xiaoping: Excerpts from talks given in Wuchang, Shenzhen, Zhuhai and Shanghai, 1992 ↩

  85. David Shambaugh, China’s Communist Party – Atrophy and Adaptation, University of California Press, 2008 ↩

  86. Michael Roberts: The Russian revolution: some economic notes, 2017 ↩

  87. Chen Yun, cited in Hu Angang, op cit ↩

  88. Deng Xiaoping, Conversation with Julius Nyerere, op cit ↩

  89. Huffington Post: Zhang Wiewei: My Personal Memories as Deng Xiaoping’s Interpreter – From Oriana Fallaci to Kim Il-sung to Gorbachev, 2014 ↩

  90. Deng Xiaoping: Uphold the Four Cardinal Principles, op cit ↩

  91. Deng Xiaoping: Bourgeois liberalization means taking the capitalist road, 1985 ↩

  92. These criticisms are discussed at length in the CPC’s document Resolution on certain questions in the history of our party since the founding of the People’s Republic of China, 1981. ↩

  93. This comparison with Khrushchev’s denunciation of Stalin is discussed in more detail in the third article in this series. ↩

  94. Xi Jinping, The Governance of China, op cit ↩

  95. Xinhua: Correctly Deal With Both Historical Periods Before and After Reform and Opening Up, 2013 ↩

  96. See for example Pew Research Center, Global Attitudes and Trends, 2013 ↩

  97. Martin Jacques, op cit ↩

  98. Deng Xiaoping: We Regard Reform as a Revolution, 1984 ↩

  99. Alexander Pantsov, op cit ↩

  100. For further information on the military pressure imposed on the USSR by the US, see part 4 of this series: Imperialist destabilisation and military pressure. ↩

  101. Jude Woodward, op cit ↩

  102. Ha-joon Chang, Economics: The User’s Guide, Pelican, 2014 ↩

  103. Taipei Times: Chavez to triple oil sales to China, 2006 ↩

  104. Cited in Telesur: China Is Most Promising Hope for Third World: Fidel, 2017 ↩

  105. Justin Yifu Lin: Advantage of being a latecomer, 2013 ↩

  106. Shambaugh, op cit ↩

  107. Global Affairs: Deng’s and Gorbachev’s Reform Strategies Compared, 2012 ↩

  108. Workers World: Fidel Castro In Vietnam, 1996 ↩

  109. Inside Gorbachev’s Kremlin: The Memoirs Of Yegor Ligachev, Westview Press, 1996 ↩