Stalinist russia and eastern european states PDF

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WEEK 7: Stalinist Russia and the Eastern European States Intro/Background Russia/Eastern Europe ignored in much of development studies Often portrayed as socialist and unsuccessful developers These states were capitalist not socialist Compared to other cases of catch-up development, they did quite w...

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WEEK 7: Stalinist Russia and the Eastern European States Intro/Background -

Russia/Eastern Europe ignored in much of development studies

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Often portrayed as socialist and unsuccessful developers

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These states were capitalist not socialist

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Compared to other cases of catch-up development, they did quite well

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In his book, State Directed Development, Atul Kohil observes the ‘uncanny resemblance between now communist and cohesive capitalist states (e.g., South Korea) generate power resources to accomplish their respective goals.’

Very broad overview of the Evolving State -

Pre-market society – states were quite distant, authority was customary, localised

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Rise of market society (up till early 20th Century) – states play major role in clearing away pre-capitalist vestiges across society – early stages about disciplining emergent working class, subordinating it to capital

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Ealy to middle 20th Century – state becomes integral to economic activity (state capitalism)

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Late 20th/Early 21st Century – promoting and managing globalisation of capital

Examples of stratification of economy in mid 20th Century 1964 Turkey – state responsible for 40% of value added in industry 1970s Bangladesh – state owned 85% of modern industrial enterprises 1972 Algeria – state employed 51% of all workers in industry, construction and trade Mid 70s Brazil – state responsible of over 60% of all investment Mid 70s Britain – state responsible for 45% of fixed capital formation (e.g., investments in plant and equipment, factories etc.)

Capitalism and Socialism – Appearance and essence On the surface capitalism appears to be characterised by the following: -

Private ownership of means of production

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The regulation of production not by state planning but private laws of supply and demand

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Competition occurs through the market and price mechanism

From this perspective socialism is achieved through:

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Nationalism and means of production

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State planning

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No free market competition

But Marx and other Marxist argued that Capitalism was defined by continuous accumulation of capital, based on exploitation of labour -

Core characteristics of capitalism – endless competitive accumulation

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Exploitation of wage labour – but also compatible with forced labour (e.g., early Industrial Britain)

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Marx identified processes of concentration and centralisation of capital – fewer and larger units predominate in each industry

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Engels argued against socialists of his time who associated state ownership with socialism – on this basis Napoleon and Bismark would be socialists

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Tendencies for units of capital to rely ever-more upon the state

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Need to view capitalist competition as dynamic and as existing on a global scale

Rudolf Hilferding in Finance Capital (1910) – major influence on Lenin’s Imperialism: 1917 -

Tariffs had been functionally transformed under conditions of global competitive accumulation:

‘from being a means of defence against the conquest of domestic market by foreign industries it has become a means for the conquest of foreign markets by domestic industry’

‘the demand for an expansionist policy revolutionises the whole world view of the bourgeoisie, which ceases to be peace-loving and humanitarian…in place of the idea of humanity there emerges a glorification of the greatness and power of the state…the ideal now is to secure for one’s own nation the domination of the world’.

Tsarist Russia -

Experiencing widening gap between itself and the advancing western capitalist powers

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Whist Russian per capita income in 1870 was roughly 34% of the UK level, it had reached only 32% by 1910

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But – Tsarist Russia experiencing massive industrialisation e.g., biggest factories in Europe expanding metal industry and manufacturing industry – rising spending on armaments – in competition with West

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Not an autonomous process – but directed by the state

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Labour was highly concentrated and highly exploited and oppressed

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12-hour days were the norm

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Extreme political repression – no independent trade unions

First World War -

Russia entered war as a junior partner of the great powers

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During the first 10 months of the war, Russia lost around 300,000 men a month

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By 1917 conditions were ripe for Revolution

February to October 1917 Feb – Tsar overthrown and establishment of a constituent assembly but also rise of the soviets and workers council Between Feb and October, there was a shift to the left and the rise of the Bolsheviks

Gains of the revolution -

Decree on land – transferred land from landlords to millions of peasants

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Decree on workers’ control of production – made workers masters of factories

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Decree on self-determination – gave full freedom to oppression nations of Russia

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Elimination of old marriage and divorce laws

Revolution under Siege -

Russian civil war – 1917 to 1922

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Whites (supporters of Tsarism) supported by 14 foreign forces (including those of Britain, France, USA, Japan etc.)

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Between 1918 and 1920 – 9 million Russians killed (epidemics, hunger and cold)

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Following the civil war: o Industrial production was a 5th of the 1914 level o Population un cities shrunk o Most workers who had made revolution had died in civil war

Degeneration of the revolution -

Lenin died in 1924 – last political order ‘removal of Stalin as General Secretary’

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Reflected growing power of bureaucracy

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Increased subordination of initial objectives (World Revolution) to survival of Russia – ‘socialism in one country’

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Following Lenin’s death, Stalin’s circle attacked left opposition led by Trotsky

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Trotsky argued that the revolution was unstable and would soon collapse

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Workers still maintained their right to strike – one third of their strikes settles in their interests

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Real wages rising post 1922 to pre-war levels

1928 – the shift to state capitalism -

Increasing military tensions with Britain

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Leadership around Stalin aims to re-arm Russia fast

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Elimination of factory Troika’s – managers appointed by party

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Strikes not permitted

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Peasants refused to supply grain to the towns

Stalin’s bureaucracy becomes self-aware – need to achieve catch-up development very fast, or face annihilation

1929: First 5-year plan -

Developmental gap of 50-100 years – needed to be closed in a decade

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Average workers’ wages cuts by 50% between 1929 – mid 30th

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Wage differentials increased (managers earned more over time)

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Forced labour introduced:

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Numbers in prison camps rose

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Peasants lost land ownership

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Main emphasis on heavy industrialisation

Stalinist industrialisation in world historical perspective -

In Britain – industrialisation spanned over a century

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Supported by slave trade

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In Russia Stalin’s industrialisation spanned one generation

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19th century – revolution from above to avoid China’s fate

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Stalin – aimed to transform Soviet Russia in comparative way

Russia in WWII and beyond -

Hitler assumed victory over Russia would be relatively easy, but Russia emerged from WWII victorious

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Treaties of Potsdam and Yalta (with Roosevelt and Churchill) – world divided into Anglo-American and Russian Spheres

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Russia ‘given’ most of Eastern Europe

Incorporation of Eastern Europe into Soviet Sphere -

Established Cominform in 1947 – to replace Comin tern

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Initially – looting of E. European countries – under guise of reparation

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Russian troops seizing machinery and industrial equipment

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After 1948 – eastern European countries’ trade re-directed around Soviet sphere

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Similar to Western European colonial divisions of labour

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Russia sold finished products to Eastern European countries at higher than world market prices

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Russia provided raw materials/inputs to E. European countries – these then processed into finishing goods and exported back to Russia at below world market rates

Conclusions -

State capitalism – part of broader family of capitalist states in mid 20th century – welfare states, developmental states

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From a political perspective – state capitalism is the opposite of what preceded it – 1917 revolution

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As a catch-up development strategy state capitalism was quite effective for half a century or so…

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Part of decline – due to internal and external contradiction – and inabilities to take strategic policies to escape looming crisis

Key Reading: The Nature of Stalinist Russia and the Eastern Bloc – Chris Harman 

In 1917 for the first time in history, a workers’ government took control of a major country

October:

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The revolution of October 1917 was clearly made by the industrial working class but it has been since argued by opponents of the Bolsheviks, that the working class played little or no role, and that Lenin seized power with an autocratically run party.

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The Bolshevik party was a mass organisation, something approaching 10% of the working class must have been members of the Bolshevik party immediately after the July days – at a time when the party was virtually illegal and its leaders in hiding or in prison.

10 years after 

By 1927, little remained of the proletarian democracy of 1917, but this could hardly be blamed on those who took power in October. For during a long and bitter struggle against counter-revolution and foreign invasion the working class that had made the revolution was itself decimated.

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By 1920 industrial production was 18% of what it was in 1916 and the number of workers had halved since then.

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