Monday, February 4, 2013

Civil Society and Democracy


Civil Society and Democracy


Mpume Sikhosana, Blade Nzimande

("African Communist" 1992. Reprinted in "The Marxist Review" no 12, Nov.1992)

The crisis in Eastern Europe, the failure of democracy in Africa, and in the shadow of the above two, the apparent “success” and “stability” of western bourgeois democracy have all led to extensive soul-searching and debate amongst socialists and Marxists on how national and socialist democracy can be brought about in the contemporary period. These debates in South Africa, in particular, have some underlying common assumptions. Some of these assumptions are:

  1. An uncritical revival of and trust in the concept of “civil society” as the solution to establishing democratic regimes.

  1. Related to the above„ the notion that the development of strong independent, non-sectarian social movements is a guarantee for democracy,

  1. A tendency to simply abandon some of the fundamental concepts of Marxism-Leninism, without adequate theoretical explanation of why they are no longer applicable, e.g. “dictatorship of the proletariat” and “vanguardism”. Sometimes this is further accompanied by a very uncritical acceptance of some of the long discredited liberal notions of democracy.

  1. An evolutionary conception of the transition to socialism, rather than a revolutionary one, which is a very fundamental departure from the Marxist paradigm. Underpinning this evolutionary transition to socialism is the notion that the vehicle for this will be democracy, largely conceived in terms of liberal democracy. It is in fact this conceptualization that has led to the emergence of the problematic notion of “democratic socialism”. In fact we would argue that the concept of “democratic socialism” is not merely used in a descriptive sense but embodies a certain set of assumptions about democracy and transition to socialism.

  1. Underpinning most of these responses to the crisis of socialism is the stripping of democracy of its class content; and the tendency to talk about “democracy in general”.

  1. In virtually all of the contributions looking into the question of socialism and the democratization of society is the absence of the analysis of the state, particularly the role of the state in bringing about democracy. This seems to be an out-come of an implicit, sometimes explicit, assumption that a vibrant civil society will act as a watchdog on the state to ensure that it acts democratically. In the development of the argument of “democratic socialism” and in some of its variants (e.g., associational socialism), there is a very glaring lack of the analysis of the role of the state in building democracy,

  1. A rather strange assumption made in many of these contributions is the notion that “organs of civil society” will create democracy only if they distance themselves from political organizations, and consequently for them democracy means “civil society” distancing itself or disengaging from the state.

It is some of the above issues that this paper wants to engage, with a particular aim of highlighting in some detail the complexity of the issue of building democracy, both in the national democratic phase of our revolution as well as under socialism.

But first a few words about the use of the concept “civil society”  in some of the classics of Marxism. Many of those in South Africa who invoke this concept seek justification for this in the works of Marx, Engels and especially Gramsci. It is our view that the claim is based on a serious misreading of those works. It is only really in their early writings that Marx and Engels use the term “civil society”'. In these early writings the main thrust of their argument is the challenge of Hegel’s separation between political and civil society. They see this separation as essentially an abstraction born of bourgeois society, in which it is conceptualized falsely as an autonomous sphere in which people pursue their interests.

Gramsci’s use of the term "civil society" is not inconsistent with the critique of the early Marx and Engels. Gramsci, however, enriches the concept. Gramsci's primary concern is to underline how a dominant class exercises power throughout society--that is, by hegemonic domination, primarily via civil society, and by direct domination through state power. Gramsci's approach to civil society is best summed up in the following passage:

The ideas of the Free Trade movement are based on a theoretical error, whose practical origin is not hard to identify; they are based on a distinction between political society and civil society which is made into and presented as an organic one, whereas in fact it is merely methodological. Thus it is asserted that economic activity belongs to civil society, and the state must not intervene to regulate it. But since in actual reality civil society and the state are one and the same, it must be made clear that laissez faire too is a form of state "regulation", introduced and maintained by legislative and coercive means. It is a deliberate policy, conscious of its own ends, and not the spontaneous, automatic expression of economic facts.1


In other wards, the early Marx and Engels as well as Gramsci are essentially emphasizing the continuities between so “called society” and political power, not the discontinuities.

A Liberal and one-sided Concept

For our purposes, the surveying of the meaning of the civil society in Marx and Gramsci's work leads to the following conclusions:

  1. The distinction between “political” and “civil society” in Marx and Gramsci's works is a methodological (descriptive) and not a theoretical distinction. In other words, one cannot treat “civil society” without simultaneously addressing the question of the state and the entire social relations underpinning society.

  1. The current conceptualization of separating the “state" and "civil society" in most of the contemporary debates in South Africa is a Hegelian one, and is rooted neither in Marx's nor Gramsci's use of the concept. However, this conceptualization is also a mechanical inversion of Hegel. If for Hegel the state was the incarnation of reason that had to mediate over the “selfish civil society”, for the “democratic socialist”
  1. ”civil society" is the incarnation of reason that has to act as a watchdog to the state. 
  1. In fact the current usage, as will be illustrated below, is a liberal usage, and misreading of Marx and Gramsci.

  1. An argument of a "civil society" independent of state cannot be theoretically sustained because it obscures the fundamental role of the state in bringing about democracy.

Based on the above assessment it is therefore important to concretely illustrate how contemporary usage of this concept in South Africa is in fact a very narrow-minded and one-sided approach to the question of building democracy.


Democracy and Civil Society

           
The discourse on “civil society” has been used in a variety of ways both in the everyday language of the national liberation and mass democratic movements, as well as in some of the theoretical reflections on the crisis of the Eastern European socialism. However some of the more significant published debates have raised this question within the context of the broad umbrella of “democratic socialism”. From our survey of this literature there are a number of variants of democratic socialism, including Swilling’s notion of “association socialism”, Glazer’s “logic of democratic participation” and that variant found within the ranks of our own Party.

The intention of critically evaluating these is not an overall assessment of the totality of their arguments on various aspects of the crisis of Eastern European socialism. Nor is the aim to evaluate the concept of “democratic socialism”' as such. 2 Our primary Concern here is to evaluate the usage of the concept of “civil society” as it relates to democracy. First a brief evaluation of Swilling and Glazer will be undertaken.

In order to illustrate some of the core ideas informing the Swilling and Glazer variant of “democratic socialism”, a few quotations will suffice. After criticizing what he calls naive visions of “civil society” as expounded by proponents of a free-market economy, Glazer presents his vision of the relationship between “civil society”' and democracy ;

This positive vision of civil society, goes beyond the call for individual freedoms, since it urges active use of otherwise formal “rights” to establish the richest possible array of the of voluntary activity, perhaps supported by the state. It is also distinct from the (also important) demand for “direct democracy” since it does not render individuals and voluntary organizations accountable to local majorities or spontaneous crowds . Freed of its naive free market connotation, the idea of an autonomous civil society is a crucial counter-weight to the ambitions of any state.3

Swilling also advances arguments that are similar to that of Glazer. It is important to quote him in full as well in order   to fully grasp the essence of his arguments about the role of “civil society” in building democracy and socialism.

Civil society has emerged as the codeword for the associational life of a society that exists somewhere between the individual actions of each person ( what some might call the “private realm”) and the organizations and institutions constituted by the state (or “public realm”). It is where everyday life is experienced, discussed, comprehended, contested and reproduced. This is where hegemony is built and contested. The New -Right, liberal intellectuals and even sections of the liberation movement are of the view that civil society should include the profit-driven shareholder-owned, industrial-commercial sector. This author is of the view that a true "civil society" is one whet ordinary everyday citizens, who do not control the levers a political and economic power, have access to locally constituted voluntary associations that have the capacity, know-how and resources to influence and even determine the structure of power and the allocation of material resources .4

It is our belief here that if we are to develop a correct approach to the question of building democracy both in the immediate phase of national democracy and in the period socialist reconstruction, we should spare no effort in exposing the weakness and distortions embodied in such views.

Role of the State

The first weakness in the above accounts and conception of civil society is the separation of civil society from the state What is more; there is a tendency, particularly with Glazer, to counter pose civil society to the state, and arguing that an independent vibrant civil society can act as a check against the state. This is a distortion of Marxism and its conception the state, whereby the state is the institutional political expression of relations in (“civil”) society. In fact we would argue that the theoretical strength of Marxism and perhaps its scientific character lies precisely in having exposed that the state in capitalist social formations is the political expression of relations in “civil society”. Marxism also exposed the fact that the separation between “civil society” and the state is largely an ideological one that hides the true character and source exploitation and oppression in capitalist social formations

The second weakness, related to the above is that of narrowly presenting the task of building democracy only in terms “civil society”. This is extremely one-sided, and the question of democratization cannot be separated from the question of contestation and seizure of state power. It is our argument here that unless the national liberation movement gets hold of state power the process of democratization of South Africa cannot even begin to be set in motion. The arguments of these variants of “democratic socialism” end up limiting the question of building democracy to the task of developing an autonomous civil society”, as if this on its own is adequate for purposes of building democracy, whether national or socialist.

The absurdity of these arguments is sharply revealed when Swilling suggests what should be included and excluded in civil society. It is as if institutions of capital and its reproductive organs can be easily removed from civil society as one wishes. The end result of these arguments is not different to those of liberals. In the same way as liberals want a private sphere free of state intervention; these “democratic socialists” also want a civil society free of state interference.

The third area of weakness of these arguments is that there is an underlying assumption that the state has no role at all to play in the process of democratization. The state is presented as, by its very nature, incapable of playing a role in the democratization process. This is simply incorrect. However, even more serious is that this assumption prevents us from exploring the question of the nature of the national democratic and socialist states that should be constructed in order to deepen democracy.
           
There is also a related argument that “civil society” will act           as a watchdog against the state. The net outcome of such an approach is in fact the opposite of what it claims to be fighting for, i.e., abandoning the terrain of the state to the whims of state bureaucrats and capitalist institutions. Thus an important issue is obscured: How can, what these “democratic socialists” call “organs of civil society”, play a role both
inside and outside the sphere of the state? In other words, for them, the state ceases to be an arena of contestation, but only requires pressure groups from outside it to act as a check against its inherently undemocratic and bureaucratic character.

If the state is inherently unable to contribute to a process of democracy (whether it be a national democratic or socialist one) we might as well forget about struggling for the capture or seizure of state power. The fact that socialist states of Eastern Europe became bureaucratic and oppressive toward the very same classes they claimed to be standing for does not mean that a socialist state is inherently undemocratic.

The fourth and very serious omission in these arguments is their disturbing silence on the role of political parties and organizations in the process of building democracy. No matter how much one can engage in the wishful thinking of the building of democracy as the task of an independent and vibrant “civil society”, political parties do play a very significant role in this process. Political parties, whether they be bourgeois, petty bourgeois or socialist, do not only play a role in the process of democratization of society but they should play a role in this process. Bourgeois and petty bourgeois political parties always intervene to shape “civil society” in manner that will reproduce the type of society these parties stand for. It is also incumbent, upon and perhaps the most important function of a political party of the working class -  like our Party - to unashamedly struggle for the hegemony of the working class and the socialist agenda throughout all levels of society. To suggest that the building of democracy is a task for “civil society” and its organs is plain naivete of the nature of political struggle. In fact, it is such a conceptualization that has led to the problematic practice that is beginning to emerge within the national liberation movement and the mass democratic movement that, for instance, issues of services and development in townships are for civic organizations, and that “Political issues” are for “political organizations and Parties”.5

Class Struggle

To develop the above point further it is also important to point out that political parties are class parties, i. e., they represent the interests of particular classes in society, whether it be the bourgeoisie, the petty 'bourgeoisie or the proletariat.6

In fact, this is the essence of the class struggle, in that the class struggle throws up political parties that stand for the interests of this or that class or coalition or fractions of classes. Even in colonial societies the national liberation movements that spring up contain within them a number of classes who are always vying within those movements for political hegemony and supremacy. Political parties and national liberation movements always strive to shape society in a manner consistent with their own class interests. It is therefore inadequate to tackle the question of democracy without relating this to the question of class straggle and the role of political parties or movements thrown up by that class struggle. The notion of development of democracy primarily, and sometimes exclusively, through the building of a “vibrant civil society” without taking into account the type of a movement or political party that should be the political vanguard of this process is idealistic. This argument can be harmful by disarming the liberation movement or our Party, by encouraging them to desist from building mass organizations or intervening in so-called “civil society”.

The fifth and perhaps obvious weakness of the argument that the development of “organs of civil society” within an independent sphere of civil society is a guarantee for democracy, is that oppressive and capitalist institutions are also independent organs of civil society. In fact the coincidence between this argument and that of the ideologists of free market is particularly striking. Furthermore even the apartheid regime's program of privatization can be regarded as an attempt to relegate political and economic power without state interference. By so doing the regime is hoping to reproduce apartheid through “an independent and vibrant civil society”.

What the above critical review of the usages of the concept of civil society clearly shows is, that an assessment of the crisis of Eastern European socialism that is purely based on the notion that the source of the crisis was largely due to the suppression of the development of a vibrant civil society is not useful at all. Our assessment should be based on an historical analysis of the development of those societies in their totality, namely the nature of social formations, the nature and role of the state, as well as the nature and role ( the communist parties that were in power and the imperialism onslaught on socialist countries. It is only then that we can learn proper lessons out of those countries for the future of national democracy and socialism in South Africa.

Revival of Liberalism

All that the “democratic socialism” being reviewed above has done is merely to use the crisis of Eastern European socialism as a license to revive liberalism in the name of socialist and Marxism. Proof of this is the argument that has become very fashionable among some sections of “democratic socialists” nowadays that it was a mistake for Marxists and communist to simply dismiss liberal freedoms as “bourgeois freedom”. That Eastern European socialism is in crisis does not change the fact that the basic liberal political freedoms are bourgeois freedoms, freedom for the bourgeoisie to dominate in capitalist social formations! In fact what these arguments do is to search for socialist democracy in bourgeois democracy. This amounts to nothing else than the subjection of the class struggle to bourgeois democratic institutions. This is in fact what social democracy is about. And social democracy has failed to bring about socialism!  Some of the outcomes of this approach to democracy are classically illustrated by what is advocated by Glazer thus: “a logic of democratic preparation allows for going backward too. It would sanction a democratic counter ‘revolution’.” (!!)7

The above quotation is a classic illustration of the extent t which so-called socialists have become so confused about democracy. Any ‘ABC’ of Marxism would tell you that there is n such thing as a democratic counter-revolution! Counter revolutions are brutal, undemocratic, and most often bloody phenomena. The violence that is sweeping our country and has led to the brutal killing of so many thousands of our people is
counter-revolution. Even theoretically, anyone who pretends to be a socialist and knows a bit of Marxism should know that counter-revolutions are products of revolutions. It is unthinkable for any people struggling for a revolutionary transformation of society to become so “democratic” as to sanction counterrevolution against their own revolution! Any beginner in Marxism also knows that the bourgeoisie and imperialists will never allow any socialist or national democratic revolution to succeed. The logical end of these arguments is the end of class struggle and that is what the bourgeoisie always dream about. This dream is being brought closer to reality by such conceptualizations and approaches-socialists in the service of counterrevolution in the name of democracy and Marxism

The greatest disservice that “democratic socialism” is doing is to Marxism itself. It wipes out by a stroke of a pen the entire Marxist critique of liberal and bourgeois democracy. It is as if Marxist theory has not undertaken more than a century of the critique of capitalism and its political institutions. All of a sudden, without much reference to these debates, we are told that the mistake of Marxism was to throw away the baby with the bath water (i.e. throwing away capitalism together with its liberal freedoms), as if socialism is simply an incremental building upon liberal bourgeois freedoms.

Democratic socialism and our party

Although the concept of democratic socialism was firmly rejected at our Party's 8th Congress and rightly so, it is important to evaluate this trend against the background of the issue under discussion. This is important for two main reasons: Firstly, the rejection of the concept of “democratic socialism” by our Congress does not mean the end of the "democratic socialism" tendency inside our Party. Secondly, the basis on which the concept of -democratic socialism" was rejected at our Congress is not adequate. It is not enough to reject this concept purely on the basis that socialism is inherently democratic and needs no further qualifications. While we would agree with this reasoning, it is not enough to stop here because it sounds as if we are merely rejecting a label without closely examining the content of “democratic socialism” as found inside our party.

Although a thorough critic of this concept is urgently required, this task is outside the brief we have set ourselves in this paper.  All that will be engaged here is how the variant of “democratic socialism” as found in inside the ranks of our party shares some of the weaknesses highlighted above on the conception of democracy and “civil society”.  However it is important to ground this review in some of the fundamental propositions of “democratic socialism” inside our party.

The first articulation of the approach of "democratic socialists" inside the Party towards the question of socialism and democracy is to be found in Slovo's assessment of the crisis in Eastern Europe. This intervention is largely premised on the observation that the key to the crisis in Eastern Europe was the separation of democracy and socialism. However there are a few disturbing features about this assessment, which are worth highlighting. It is the case with which "democratic socialism'' has simply abandoned some of the concepts and approaches that have come to form the basis of Marxism Leninism, both in its theory and revolutionary practice. The first of these concepts is that of the "Dictatorship of the Proletariat (DOP)." This term has been abandoned not on the basis of any argued theoretical propositions but simply because it has been applied wrongly in Eastern Europe. Slovo says of DOP:

“The abandonment of the term by most Communist Parties including ours, does not, in all cases, imply a rejection of the historical validity of its essential content. But, the way the term came to be abused bore little resemblance to Lenin's original concept. It was progressively denuded of its intrinsic democratic content and came to signify, in practice, a dictatorship of a party bureaucracy. For Lenin the repressive aspect of the concept had impending relevance in relation to the need for the revolution to defend itself against counter-revolutionary terror in the immediate post-revolution period. He was defending, against the utopianism of the anarchists, the limited retention of repressive apparatus."8

There are a few important issues that need to be highlighted here. It seems as if here the concept itself has no problem in terms of its meaning and intention, but just because it has been misused then, it should be abandoned. This approach to eliminating concepts is very problematic. One wonders how far we should take such a practice, because taken to its logical conclusion, we should also abandon the idea of a Communist Party or even Socialism itself because what Eastern Europe has done to the image of communist parties and socialism is exactly what Slovo says of DOP. Similarly “democratic socialism" within our Party argues for a mass party, largely for the same reason that "vanguardism" was imposed on the peoples of Eastern Europe. Similarly as Cronin points out our retaining concepts just because they form part of the classics of Marxism Leninism is dogmatic. This is true. But what we take issue with here is that the theoretical basis on which these concepts are being dropped is very unclear, and according to Cronin again, dropping of concepts just because they are politically embarrassing is opportunism.9

The problem of dropping concepts without any sound theoretical basis is further reflected in Slovo's arguments as to what Lenin meant by the DOP. In fact it is simply not true to say that by DOP Lenin merely referred to dealing with counterrevolutionary terror and was arguing against anarchists on the retention of state power. The concept is one of the key concepts in Marxism itself. Actually the substance of the concept from Lenin's point of view was positive and aimed at smashing the bourgeoisie and its state machine and consolidating the class rule of the proletariat as a goal in itself. That DOP had to be specifically applied in the context of the White terror and the attack by anarchists on the maintenance of the state was secondary to this overall objective of the DOP. In other words DOP took the form-of dealing with White Terror, but was not the substance of DOP as such. In fact Lenin points this out emphatically when he says “The proletarian revolution is impossible without the forcible destruction of bourgeois state machine and the substitution for it of a new one.”1O This was the main task of the DOP! In fact Lenin always firmly situated DOP within the context of the Communist Manifesto and the experiences of the Paris Commune the broader tasks of guaranteeing that initial transition from capitalism to Socialism. There is no clear illustration of this than Lenin's State and Revolution.

The danger of abandoning concepts without any adequate theoretical explanation goes beyond just the opportunism of such a practice but leaves certain crucial questions and gaps in our approach to revolutionary transformation. For example what does the abandonment of DOP mean for the transition towards socialism? Is transition towards socialism ever possible when one treats the defeated bourgeoisie with kid gloves? How are the victorious socialist forces going to smash the capitalist state machine? Does this mean that we are for an evolutionary transition towards socialism rather than a revolutionary break with the capitalist past? Can attempts at evolution transition to socialism ever go beyond social democracy? Even if revolutionary transition to socialism is a possibility, what is the reason for restricting our strategies at this stage to a  particular path of transition? These are some of the question that will have to be answered with the abandonment of the concept of DOP.

The above was by way of illustration of the key foundations and tendencies of “democratic socialism" inside our Party which forms the background against which to assess the question of the treatment of democracy and civil society.

Although it might be regarded as unfair to criticize Slove for things he does not say, after all his paper could by its  nature not encompass everything, it is important to interrogate some of the concepts that he uses unproblematically, like the concept of a  “socialist”, "civil society".  Slovo argues:

Lenin envisaged that working class power would be based on the kind of democracy of the Commune, but he did not address, in any detail, the nature of established socialist civil society, including fundamental questions such as the relationship between the Party, state, people's elected representatives, social organizations, etc.11

We believe that by his use of the terms "socialist civil society" without any theoretical clarification is a serious omission on the part of Slovo. In fact by so doing Slovo is committing a similar mistake to that of the other "democratic socialists" as highlighted above, i. e., seeing the development of "civil society'' as one of the key elements in democracy, without demonstrating how. Since Slovo uses specifically the concept of "socialist civil society" it is important, in the light of what Marx, Engels and Gramsci said, to assess the theoretical validity of this concept. The use of this begs one very fundamental question. If the "separation" between civil society and the state is, as Marx pointed out, an abstract dualism and a product of the transition from feudalism to capitalism, can we then theoretically sustain a notion of a socialist civil society? From our understanding of the use of the concept by Marx, the separation is a product of the evolution of bourgeois society and one of the key tasks of socialism is to bridge this separation. In fact this separation, we would argue is an institutional expression of the alienation of "man" in capitalist societies; the separation of the "social" from the "political". The separation is reflection of the relegation of human social needs to the private sphere of “civil society”. Marx specifically points out that one of the tasks of socialist transformation is that “man must recognize his own forces as social, organize them, and thus no longer separate social forces from himself in the form of political forces”.

Socialist Civil Society

No doubt "democratic socialists" will throw their hands up in horror at what might seem to be a collapse of political and social life into one and therefore the subjection of “civil
Society” to political life, Actually this issue is the crux of the issue on the question of socialist democracy. It is in this area that “democratic socialists”, in the way they pose the question of democracy, obscure the very real socialist imperative of overcoming the contradiction between “civil society” and the state. By arguing for the development of an autonomous civil society, they do not address this Issue at all, instead they fall into the very same mould of the separation of civil society and the state under capitalism. This obscures the need for the creation of organs of (proletarian) state power that are simultaneously organs of state power as well as autonomous mass social formations able to act independent of the state. In fact this is what the Soviets were originally, and they were intended to incorporate both these qualities in them as the only concrete political path for bridging social and political life as the highest form of human emancipation. It was not because they were organs of state power that the soviets failed, rather it was because their autonomous character as mass social formations was progressively stifled by the party through the mechanism of a bureaucratic state. That this happened in Eastern Europe does not mean that this is bound to happen, and that there can be no simultaneous organs of state power that are simultaneously mass-based and autonomous. It was not, we would argue, because of the inherently bureaucratic character of the state that they merely became conduits of the Party and the state bureaucracy, but it was because of the particular state form that developed in the Soviet Union which stifled them - tight control by the Party, merging of Party with state apparatuses, and more important contextual problems of imperialism and its assault on the Soviet Union, outlawing of the opposition and undermining the heterogeneous character of, and debates within, the Soviets, etc.

Let us however explore a bit further how organs of state power can be simultaneously part of the state and at the same time be autonomous mass social formations. One of the issues that we should attempt to closely examine on this question is the debate between Kautsky and Lenin on whether Soviet should be transformed into state organizations or not. This is one of the most crucial areas of socialist theory and revolutionary practice that has hardly been given the attention it requires. It is therefore important to quote liberally in order to engage thins issue.

Kautsky in his pamphlet The Dictatorship of the Proletariate vehemently criticizes the Bolsheviks in power for, amongst other things, converting the Soviet into organs of proletarian state power. He argued that:

“the Soviet form of organization is one of the most important phenomena of our time. It promises to acquire decisive importance in the great decisive battles between capital and labour towards which we are marching... But are we entitled to demand more of the Soviets? The Bolsheviks, after the November Revolution, 1917, secured in conjunction with the Left Socialist-Revolutionaries a majority in the Russian Soviets of Workers’ Deputies, and after the dispersion of the Constituent Assembly, they set out to transform the Soviets from a combat organization of one class, as they had been up to then, into a state organization. They destroyed the democracy which the Russian people had won in the March Revolution. 12

Kautsky's argument here is basically that for democracy to flourish in socialist Russia at the time, the Soviets should not have been transformed into state organizations. Obviously this argument would today find favour amongst many of the 'democratic socialists," as they should have been left, in their language to be organs of "civil society” independent from the state. We could further state that perhaps this argument, taken to its logical conclusion in the present debates in South Africa, the Soviets would have constituted part of the "socialist civil society" separate from the organs of the proletarian state. Indeed it is largely because of the hindsight of what happened to the Soviets later that there is now talk of a "socialist civil society,”

How did Lenin respond to Kautsky in this regard?

“Thus, the oppressed class [according to Kautsky-BN & MS], the vanguard of all the working and exploited people in modern society, must strive towards the decisive battles between capital and labour,” but must not touch the machine by means of which capital suppresses labour. It must not break up that machine! - It must not make use of its all embracing organization for suppressing the exploiters!  Excellent, Mr. Kautsky ; magnificent!  We recognize the class struggle - in the same way as all liberals recognize it, i. e., without the overthrow of the bourgeoisie.13

Lenin argues further that

“Whoever sincerely shared the Marxist view that the state is nothing but for the suppression of one class by another, and who has at all reflected upon this truth, could never have reached the absurd conclusion that the proletarian organizations capable of defeating finance capital must not transform themselves into state organizations”.14

To say to the Soviets: fight, but don't take all the state power into your hands, don't become state organization - is tantamount to preaching class collaboration and "social peace" between the proletariat and the bourgeoisie.15

According to Glazer this reply by Lenin would be an example of statist thinking. However the question that essentially posed by Lenin in this reply to Kautsky, and which should be a key question preoccupying all socialists at this poit in time as this: After the overthrow of the rule of the bourgeoisie and its institutions, what type of proletarian  organs of state power should be put into place? Marx had earlier givn this answer by saying in the Communist Manifesto that the bourgeois state machine should be replaced by the proletarian organized as the ruling class. In all the criticisms and reflects on the failure of Eastern European socialism this question has hardly been engaged. In fact we would argue that it is the very same organs of the working class that overthrew the bourgeoisie that should become the new organs of proletarian state power, and in the case of Russia in 1917 the Soviets. Otherwise what institution and organs should have become the organs of the new proletarian state power?  With the Soviets having become the new organs of the proletarian state, there is no necessary connection between this transformation and the bureaucratization that took place later. In fact the Soviets as organs of state power in the proletarian state should have subjected the state to the popular will of the working people instead of the other way round. By so doing the Soviets would have been autonomous mass social formations that wield state power at the same time.

It would have been the strengthening of this character of the Soviets that would have deepened socialist democracy in the Soviet Union. In fact this is what would have laid the basis for the withering away of the state, i.e., organs of people's power subjecting the proletarian state to their will, while essentially remaining autonomous organizations of the working class and the Russian people as a whole. This is in fact what Soviets operated as initially. That Soviet democracy was later reversed, should not merely be sought in the assumed (inherent) bureaucratic character of the state, but on how the Party conducted itself in its wielding of state power.

By posing the question of building Socialist democracy (instead of democratic socialism) in this way, we will then be able to transcend the liberal bourgeois and narrow notion of a vibrant and autonomous “civil society".

Building Democracy

There are three very important premises from which we should move from if we are tackling the question of building democracy. Firstly, the relationship between the state and "organs of civil society" is not a dichotomous one but a dialectical one. Secondly, the building of democracy cannot be abstracted from the conditions under which this task must be tackled. For instance in South Africa our immediate goal is the establishment of national democracy in the context of colonialism of a special type, and that national democracy should lay the foundations for a rapid transition to socialism. This question is important in that we can give content to concepts we deploy in our analysis. Thirdly, the process of building democracy is in the last instance a political process, whose realization is ultimately dependent on political leadership of a particular type. If then building democracy is a political process, it cannot exclude the very central issue of state power.

Given the above conceptualization it is therefore not appropriate to talk about “organs of civil society" but such organs should be organs of people's power as the only organs that will ultimately guarantee democracy, both in the phase of national democracy as well as in the building of socialism. A brief definition of our understanding of organs of people's power and particularly the differences between them and social movements is necessary at this state. For us social movements are movements that bring together a "number of social forces and even classes around a particular issue. Social movements are therefore issue-based and can either be political, in the strictest sense of the word, or non-political. Social movements do not necessarily aim at fundamental transformation of society, but can be reformist or aimed at changing particular aspects of policy on the issue around which they are organized. Because of this social movements are subject to extreme fluctuations in their strengths and weaknesses, and usually emerge as fast as they can disappear.

Organs of people's power on the other hand are organs that may or may not develop out of social movements. Organs of people's power are primarily about fundamental and revolutionary transformation of society. They are therefore about the transfer of power to the people and are directly concerned with the wielding of state power. However their social base can be the same as that of social movements in that they are the organs that should form the direct link between the state and the people in a national democracy and under socialism. In fact organs of people's power are the form under which the people should exercise state power. This is the essence of participatory democracy.

The conceptualization of civic organizations, street committees, and people's courts merely as social movements is problematic in two ways: Firstly, it is a historical understanding of the origins and intentions of these organs in the mid 1980ies. These organs were not merely social movements but were specifically organs of people's power aimed at a revolutionary transformation of South African society and establishment of people's power. To simply refer to them as social movements is both a theoretical retreat and a reformist understanding of their role even during this phase of negotiations.

Secondly, the notion of social movements as used in some sections of the “Left” is problematic in that it is an historical and abstract implantation of the notion of social movements as developed in advanced capitalist countries. The nature of social movements that develop in countries under the yoke of colonialism, neo-colonialism and imperialism are fundamentally different from, for instance, the Green movement in Europe or the Civil Rights movement in the U. S. The former takes the character of organs of people's power and the latter tend to be pressure groups. There is a radical distinction here. We should however make it clear here that our argument should not be read as meaning that all social movements should be organs of people's power. But the essential point we are making is that the only guarantee for building both national democracy as opposed to bourgeois democracy and socialist democracy is the building of organs of people's power. And that civic organizations and trade unions are not simply social movements. To want to convert these organs to just being social movements is a liberal reformist project that merely wants to reverse history and make these organs mere pressure groups in so-called "civil society,"

Let us briefly then situate the argument of the development of organs of people's power as the key to the securing and strengthening of national and socialist democracy. Struggles for democracy in colonial countries should always be located within the nature of colonialism. National oppression and colonialism tend to collapse what "democratic socialists" would call "civil society" and “political life" in those social formations. Because of this civic struggles tend to take on a political character, and political struggles are rooted in civic issues. This is particularly so where social and political life of people is rigidly controlled by a highly centralized state where political and social opportunities are based primarily on racial consideration. This is more so in Southern Africa, where its particular form of colonialism (white settler colonialism was characterized by racial criteria prescribing the place of different racial groups in the political, economic and social life of the country. Such a situation can be summed up in term of the early works of Marx and Engels and the incomplete separation between “civil society" and the state, as is the situation in bourgeois democracies of the advanced capitalist countries. That is why national liberation movements in all Third World countries, and even more so in Southern Africa, incorporate within them aspects of social movements, and social movements take on a political form. It is this dialectical interpenetration that tends to throw up organs of people's power and the closer working relationship between national liberation movements and such organs.

****                                                        ****                                      ****

The conceptualization of organs of people's power separates bourgeois from socialist democracy. This conception an approach to building democracy also cuts across the rather problematic divide between “civil society" and the state. Here, we are, to use the phrase of some of our "democratic socialists", defining the nature and content of the types of “organ of civil society" that should be developed, i.e., at the root of it we are talking about building people's power.

The concept of "people's power" is rooted in our perspective of a national democratic revolution, where the people are not just an amorphous mass but area people united for the bringing about of a national democracy. This is where the significance of the process of building democracy as a political task, that should have organs of people's power as its agency, lies. It is also only organs of people's power that are capable of practically bridging and laying the basis for a longer term transition to socialism.

In concluding this paper it is important to point out that our major concern is the concepts that one uses have direct political implications. For instance the shift away from developing our understanding of organs of people's power and the new post February 2, 1990 vocabulary ("organs of civil society", "an autonomous and vibrant civil society" etc.), is not merely a change of concepts but perhaps a dangerous shift away from the perspective of a national democratic revolution to that of bourgeois democracy.

Although the concept of people's power still needs further elaboration, for the purposes of this paper it is adequate for us to enter the debate from a different angle, which for us contains the revolutionary perspective that should characterize our Party in particular. Perhaps even more important for us is to begin to point the way towards which a revolutionary socialist perspective should be directed. For the strengthening of working class leadership and the socialist perspective lie in the development of organs of people's power. In other words organs of power should serve both as instruments for securing and deepening national democracy as well as the organs for the transition towards socialism. Of course in the process the nature and role of such organs will change as conditions determine but they are the only structures that will ensure participatory democracy and counter any tendency towards a bourgeois-democratic settlement that might be found within the ranks of the national liberation movement. This is the route towards national and socialist democracy which "democratic socialism" fails to grasp,


The perspective outlined above should guide us in our struggles around CODESA, the nature of an interim government, in the struggle for a Constituent Assembly and the type of democracy we are struggling for, whose constitutional basis should be secured in this Constituent Assembly.

References
1. Hoare, Q and Smith, GN ( 1971 ) (eds) Selections from the Prison Notebooks of Antonio Gramsci, London, Lawrence and Wishart, pp. 159-160

2. Important as it is to critically examine the notion of "democratic socialism", this issue is a subject on its own that requires a separate intervention.

3. Glaser, D (1990 ), "Putting Democracy back into Democratic Socialism," Work in Progress, 75, April 1990, p. 30.

4. Swilling, M (1991), “Socialism, Democracy and Civil Society. The Case for Associational Socialism", Work in Progress, 75 July/ August 1991, pp. 21-2

5, See Nzimande. B and Sikhosana, M (1991), “Civics are Part of the National Democratic Revolution", Mayibuye, June, 1991,

6. Embodied in the notion of political parties as class parties is the fact that political parties can and also do represent a coalition of classes or fractions of classes.

 7. Glaser, 1990, p. 57.

8. Slovo, J, (1990), "Has Socialism Failed?" The African Communist, no. 121, 2nd quarter, 1990, Slovo has in fact developed his critique of the concept in “Socialist aspirations and socialist realities". The African Communist, no. 124, 1st quarter,. 1991.

9. Cronin correctly points out in this regard that “The unprincipled abandonment of basic concepts, not because they have proved to be wrong, but because they are tactically embarrassing, is opportunism. But the freezing of Marxism-Leninism into a closed and unchanging doctrine, a blue-print that simply requires application in any given situation, is dogmatism, "Lenin in not a statue", The African Communist,' no. 127, p. 12.

10. Lenin, VI (1976), On the Dictatorship of the Proletariat, Moscow, Progress Publishers, p. 138.

11. Ibid., p. 36.

12. Quoted in Ibid, pp. 157, emphasis in Kautsky's original pamphlet.

13. Lenin, Ibid, pp. 158-9.

14. Ibid., p. 159.

15. 1b id., p. 161.






Tuesday, October 16, 2012

CAN LEGISLATION PUT AN END TO CORRUPTION?


CAN LEGISLATION PUT AN END TO CORRUPTION?

Corruption appears to be as old as human beings themselves.  The first incident of corruption is narrated in the Bible.  Jacob, the younger brother of Esau fooled Isaac his blind and old father and stole his blessing and inheritance which rightfully belonged to Esau .3 (Genesis chapter 27)

Another serious incident involved the King David.  David was attracted by a beautiful woman Bathsheba wife of his army general Uriah.  He wanted to marry her.  To do this David organised to get the general killed in the battle (2Samuel, chapter 11).4

Later we come across historical accounts of how the leaders of the Jewish community sitting on the judgement seat and passing unfair judgements against the weak, the poor and the widows.
Judas, one of the twelve apostles of Jesus sold Jesus to his enemies for 30 silver pieces.
In the third century BC Kautilya in his Arthashatra speaks about corruption as the most serious crime deserving severe punishment, even a punishment by death.  But he also recognizes the inevitability of corruption.  He compares the tax collectors to fish breathing under water.  Both would partake at least some quantity of medium in which they find themselves.  There is an age old saying which goes like this: “one who guards a lake would obviously drink water from the same lake”.  Commenting on the shrewdness of the corrupt officials Kautilya notes, “It may be possible to mark the movements of birds in the sky, but it is impossible to gauge the hidden intention of corrupt official. 

There is an old Bengali folklore which goes like this: “There was a king who had a highly efficient and equally corrupt official.  The king used to get numerous complaints against him where ever he was posted.  Getting exasperated the king wanted to punish him by assigning him the duty to count the waves of a river that passed through his territory.  Alas and what a wonder as soon as he took over his new duty there were again floods of complaints from the merchants.  No boat could cross the boundary in the river without paying bribe to that person as their movement would interfere with his duty of counting the waves.”

Gandhiji too was baffled by the enormous corruption among the British rulers in India.  But what shocked him most was when the Indians were appointed as officials under the British rule were equally corrupt.  He said he would go to the length of giving the whole Congress a decent burial than put up with the corruption that he has seen so rampant among the Indian officials under the British rule.

There are serious reservations among many about the idea of ending corruption through legislation. Anna Hazare is not the first one to start a movement against corruption.  In the year 1975 Jayaprakash Narayan launched a nationwide movement for ‘total revolution’ to end corruption and authoritarianism.  From his time till today corruption has not gone away.

The common belief was the licence raj and government departments were corrupt.  The private sector was believed to be corruption free and efficient.  But after the 1991 reform when there was large scale privatization drive corruption in India has grown in leaps and bounds.  Privatization and liberalization has given rise to massive corruption.

Legislation against corruption either through Lokpal bill or through the so called strong Jana Lokpal bill of Team Anna will not make corruption disappear from the society. 

One, Lokpal talks about dealing with people after corruption has taken place.  The processes that are spoken about in these bills will not help to prevent corruption.  These procedures may help in faster action against the corrupt people.

Two, the notion of corruption expressed in the movement of Anna Hazare is very shallow.  It is understood only in terms of financial irregularities or money misappropriated by politicians or political class and the state bureaucracy directly or indirectly.  There is no analysis of corruption nor is the corruption seen as linked to the overall economic and political system of our society.  Therefore it finds an easy solution in a piece of legislation can put an end to corruption.

The western advanced capitalist countries propagated that corruption was characteristic of the third world countries where the states are weak and underdeveloped.  They used this argument to justify the Washington consensus.  But this myth was exploded during  2007-2009 global financial and economic crises.

Three, corruption is linked to the overall social, economic and political system of our society.  De Sardan in his article states, “Corruption should be understood as a ‘moral economy’ underpinned by value systems and cultural codes.  There is an imaginary world where corruption does not exist, which is nowhere realized in a pure form, and there are ‘real world’ economies where extant corruption is inevitable.  It is the very impossibility of realizing corruption free economy which produces its disciplinary power, for its realization would dissolve traction.” “A Moral Economy of Corruption in Africa” (Journal of Modern African Studies).5

Four, Nithin Gadkary defended corruption of Yeddyurappa by asserting ‘what he did might have been morally wrong but he was legally right’.   When we speak of corruption we do not speak about what is legally right only.  What is legally right should also be morally right.  What is morally wrong cannot and should not be legally right.  We need to go one step further and consider that what is legally right should also be socially just.  Justice and equity are high moral values and legal system cannot over rule these values and declare some acts as legally right though socially unjust and morally wrong.  Legal system is creation of human institution to uphold justice, equity and morality in governance and in functioning of society.   Legal system should converge with social justice and morality.

(to be continued)

Friday, September 21, 2012

Bharat Band


BHARAT BANDH, 20TH SEPTEMBER 2012.

We all have witnessed the tamasha on Bharat Bandh, a call given by BJP and eight opposition parties.  Otherwise what would have been a serious affair has turned out to be a ridiculous event.  What is very strange and unacceptable is that CPM and CPI were sharing the stage with BJP.  Later Sitaram Yechuri was questioned about his participation in the Bandh and sharing the stage with BJP. He resorted to justify his stand by saying that the event was called by traders and he was with the traders’ agitation against FDI in retail.  He even went out to bring Mulayam Singh Yadhav to the venue to share the cause with BJP and others.  We shall reflect on the drama staged by Mulayam Singh later.

Does CPM and CPI not know that when NDA under the leadership of BJP was in power they were keen to get FDI in multi brand retail to India?  Do they not know the stand NDA and particularly BJP had taken on disinvestment and their zeal to implement the Neo Liberal policies initiated by Narasimha Rao?  BPJ and its spokesperson Ravi Shankar Prasad admitted just two days before the Bandh that they would allow FDI in retail but their approach would be different.  He admitted this when he was cornered with a question of their plan to bring in FDI in retail to India during their rule and that in Panjab where they share power with Akali Dal, Walmart is already operating since some years.  He had argued that the time for FDI retail is not ripe yet.  The he was taunted with a statement, ‘the time will be ripe when BJP comes to power’.  There seems to be so much truth in this.

We should recall the revelation made by Wiki leaks cables.  On May 6, 2005 Arun Jaitley seemed to have remarked to Robert Blake at the US embassy that 'Hindu nationalism' is an 'opportunistic issue' for his party (Economic Times and DNA March 26, 2011).   Given this revelation we know that the agitation by BJP against FDI in retail is also an opportunist issue and they will implement this the moment they come to power.
It is pity that when the toiling masses are looking at the left parties to champion their cause and take a principled stand on the issues related to their plight that the left decides to play a drama.

After a while CPM leaders are seen into another honeymoon with Mulayam Singh Yadhav about 20 meters away from the venue of NDA drama.  Mulayam made it clear that he was not with BJP and NDA in their bandh.  He even succeeded in preventing Telugu Desam chief, Chandra Babu Naidu from joining with the BJP on their stage.  Here Mulayam Singh Yadhav declares a third front, an alternative to BJP led NDA and Congress led UPA.  Who authorised him to make this declaration?  He complains that the UPA did not consult him on FDI retail or diesel price hike.  But an important issue such as formation of Third Front he seemed to have consulted no one and all the parties outside UPA and NDA are supposed to be part of this front.  May be the Left parties and TDP would be the only constituents of this front.  With all his show of agitation against FDI in retial, diesel price hike etc he still continues to support UPA.  Whereas Mamata walked out of alliance with UPA on these issues she did not call for a bandh in West Bengal.

We are not sure why Mayavati, Naveen Patnaik, Jaya Lalitha, Shiv Sena, Mamata Banerjee did not participate in the bandh.  Are they in the Fourth Front?

Sunday, September 16, 2012

POLITICAL AND ECONOMIC IRONY


Political irony: it takes courage to be coward!

Today we find ourselves in irony of sort.  This irony is both on political level as well as economic level.

On Political Level:  The parties who oppose each other and some sit on the extreme poles from each other find themselves on the same side.

Trinamool congress of Mamata Banergee is a staunch opponent of the Left Front.  The cadres of CPM and Trinamool kill each other.  But today they speak in the same tune.  They oppose Congress’ reform programme.  Similarly, the BJP is an antithesis of the Left Front, CPM, in particular.  But both the parties will be together in Bharat Bandh on 20th of September.  Sitaram Yechuri spoke in exactly the same language as L.K. Advani while announcing the date for Bharat Bandh.  This scenario speaks for the chaos in our political situation in the country. 

 This is exactly the same scenario we find in the economic situation.

The Coalgate scam has revealed that every political party is in involved in this scam.  Starting with the Left Front government, Binju Janata Dal and ending with BJP everyone has a share in this scam.  BJP who makes a hue and cry of the (perceived) loss in the coal gate did not have any issue in making the entire monsoon session get washed out in the flood of their agitations in the house of the Parliament.  This loss is a loss to the public exchequer.

Today we seem to be in another crisis caused by the so called courageous stand taken by Manmohan Singh.  He has announced the series of reforms to bring the nation out of crisis and put it on growth mode.  

BJP’s call for National bandh on 20th of September is an irony.  In the heart of heart BJP has nothing against these reforms.  They would have carried out these reforms ten years ago. BJP’s spokesperson Mr. Piyush claimed to the NDTV that NDA disinvested only loss making Public sector units.  This is a false claim as NDA had disinvested profit making units at rock bottom prices by lumping these with the loss making units. "Rs. 87 crores shares were sold stood at Rs 34.83, as compared with the average price of Rs 109.61 realized since then."  "In June 2002, Batra Hospitality Private Limited (BHPL) acquired the Centaur Hotel at Mumbai airport for Rs 83 crore on a 'slump sale' basis, involving the transfer of the entire business and property of the hotel to the buyer. A few months later, in October 2002, BHPL sold the same property to the Sahara India group for Rs 115 crore. The fact that BHPL could earn a close-to-40 per cent return on its investment in the matter of four months makes clear that the original sale price was grossly undervalued."

C.P. Chandrasekhar has brought out in his most recent article in the Front Line the irony of growth.  Let me quote:
“Judged in terms of content and not just outcomes, economic reform under the UPA has involved reshaping the role of the state. Earlier, especially during the post-Independence years until the 1970s, the role of the state was seen as that of using the tax-cum-subsidy regime as a means to raise the rate of investment in the economy and ensure that such investment was allocated across sectors in ways considered appropriate for maximising growth. This not only made the state a growth-leader of sorts, but required it to regulate and also engage in economic activity, including production.

“Unfortunately, the outcome of this strategy pursued relentlessly by UPA I and II despite the "lack of consensus" has been quite divisive. While growth has boosted profits and delivered some benefits to a small upper-middle class, it has failed to ensure employment and livelihoods for the majority. The results from the National Sample Survey with reference year 2009-10 suggest that while the deceleration of employment growth recorded during 1993-94 to 1999-2000 had been partially reversed in the period 1999-2000 to 2004-05, the record over the five years after 2004-05 is even worse than it was during the 1990s. Over the five-year period 2004-05 to 2009-10, employment declined at an annual rate of 0.34 per cent in rural areas and rose at the rate of just 1.36 per cent in urban areas. In the aggregate, the volume of principal and subsidiary status employment rose by a negligible 0.1 per cent. This period included the years when GDP growth was at its highest. But that growth did not generate livelihoods for the unemployed and the underemployed in the country.”  C.P. Chandrasekhar, “Nation Redefined”, Front Line Sept 21, 2012.

What Manmohan calls as a bold step and a big risk is in reality an easy way out of the present economic slowdown.  Creating a climate for foreign investment is not an act of great courage.  It is a surrender of a weak and helpless nation.  It does not need courage to make the foreign investors to come and take over.  This approach comes from a false notion of development. 

The only people who praised this move of Manmohan Singh are the corporates and the American press.  There were no takers of this reform in other section of people in India. 

It would have taken a great courage on the part of the Prime Minister to bring about reform in agriculture.  It would need a great vision to bring about land reform and infrastructure development in rural area so that the productivity and growth in agriculture could be speeded up.  This would generate employment in rural area, stop migration and generate demand so that we do not need to worship the holy cow of export dependent economy.  Export dependence has another face called import dependent.  These both faces get squared up and in the process the large population, particularly in the country side get left out of the development goals.

I would particularly like to invite the Left Parties to do a little bit of introspection rather than tail the BJP in participating in their Bharat Bandh on 20th of September. It is important that they should set for themselves a task of increasing their influence among people and in the political process to bring the poor, the oppressed and the exploited to the centre stage of politics and economic development.  They had discounted the possibility of a Third Front.  While this could be right calculation they should realise that the rightness of this calculation is because the Left is of no consequence in the political scene of the country.  Their hands are soiled with the blood of the farmers who gave their lives in opposing land acquisition in Nandigram and Singur.


Wednesday, August 1, 2012

20 Years of Reform in India


Report of the workshop on “20 Years of Reform in India”

PRAXIS, Bangalore and Indian Social Institute, Bangalore organized a three days workshop from 27th to 29th July on “20 Years of Reform in India”.  The workshop tried to evaluate the performance of the Neo Liberal policies that India had been following since 1990.

Prof. John Itty gave an inaugural speech spelling out the tenets of ‘Neo Liberal Programme’.  He pointed out that the programme of Privatization, liberalization and globalization was basically meant for the developed countries like United States of America, United Kingdom and European countries to find entry into India for investment and a market.  It is meant to take advantage of cheap labour in India to make super profit and exploit natural resources and mineral wealth of the country.  Even the financial capital managed to get entry into India to overcome their economic stagnation.

There was a brief recount of Indian economy from 1950 to 1990, pre-reform era.  The significant fact of the pre-reform era was that there was a socialist nuance to the economy.  Immediately after independence India took up the challenge of eradication of poverty, production of more food and industrialization.  Indian state was loud in its opposition to imperialism, feudalism and monopoly capitalism. India followed a path of five year planning for development.  This gave the state a major role in regulating the economy.  India was trying to follow a model of mixed economy with a share for private sector and a share of public sector.  The state assumed a great responsibility for irradiation of poverty by playing a role in education and health system, food security through universal PDS.  It undertook several rural development programmes.
The failure of land reform and gradual shift from self reliance to import dependence landed India in to economic crisis.  The total bankruptcy in the balance of payment forced India to approach IMF for a massive loan.  This loan came with a condition to implement structural adjustment policy dictated by US controlled IMF.

While reviewing the post reform performance of Indian economy a constant comparison was made between pre reform economy and post reform economy.

While India has been praised by the world as the second largest growing economy the performance of the neo-liberal policy has been dismal.
 
On the growth front there is no spectacular performance.  Before 1990 India has seen 8% economic growth.  By 1970 Indian economy has seen massive growth in industry that made her the 9th most industrialized country in the world at that time.  Whatever growth in GDP India is boasting of today is an imbalance growth.  We see more growth in the automobile and consumer durable industry.  In 2009-10 the average growth was 10.8% .  But the automobile and consumer durable had 26% share. This sector cares only for the middle class and upper middle class.  Performance in agriculture has been dismal it has gone down to 0.7%. The consumer non durable sector grew only by 1.5%.  Agriculture and consumer non durable caters for the majority of the population of India.

Through privatization and disinvestment policy the government has handed over most of the public sector units to the private capital with a half sung song. Many of these units have been profit making and were called Nav Ratna units. 

Private players are given free entry into education and health sphere.  All social programmes meant for the upliftment of the poor have been systematically decimated.  The integrated rural development programmes which helped the rural poor to acquire income generating assets have been turned into part of the MGNREGA where the poor receive only wages for 100 days. 

Land acquisition for industrial development, developing SEZs and mining precious minerals by private and multinational companies has driven away the adivasies, daliths and farmers to rely on casual employment and pavement dwelling in the urban centres.  

The earlier food security through universal Public Distribution System has been converted into Targeted PDS as a result many poor have to buy food grains from open market at high price.  

Employment looks rosy only for the IT employees who have capacity to get into higher studies like engineering.  Labour legislations have been amended to ensure industrial peace for the private sector investors to make huge profits.  The blue collar workers have been deprived of their trade union rights which they earned through long struggle by sacrificing their lives. Golden hand shake, VRS has succeeded in bringing huge population into the ranks of unemployed.  Out sourcing by private companies, employing labourers through contractors and turning the employees into casual labourers has turned the employment sector into a nightmare.

The Reform that we would like to see is the reform where the growth should be directly targeted to eradicate poverty.   Instead of searching for market in the foreign developed countries, which have lost their capacity to import, the government should look at the internal market.  If the rural development and growth in agriculture takes place it will serve as a massive market.  We have to ensure that land reform is taken up once again.  It will increase the productivity of farm sector.  There will create massive employment and market for industrial goods.  This means the character of the state has to be changed.  It should play a major role in the economy to regulate the economy -production and distribution.  The myth of Market being a perfect regulator should be abandoned.

Monday, July 16, 2012

AGRICULTURE MATTERS


LAND RIGHT AND LAND ACQUISITION
1.        There appears to be a conflict between Industrial interests and Agricultural interests.
Industry is trying to take away the space of agriculture.  Industry wants to subordinate agriculture.  This seems to happen in several ways.  In the name of industrialization of agriculture through introduction of technology, genetically modified seeds (BT Brinjal), high yielding variety seeds and fertilizer the industry is trying to gain control on agriculture.  Industrial capital is trying to gain control of production and marketing of agricultural goods.  The corporate like Cargill, Monsanto, and ITC have entered into agricultural sector trying to direct the course of agriculture towards industrial interests and thereby changing the very objective social need of agricultural production.
2.       The policy makers guided by the interests of the industrial capital want to make sure that contribution of agriculture to the GDP comes down to lower than 20%.  The population involved in agriculture similarly comes down to less than 20%.  There is a projection made that more than 60% of population should live in the urban centres and less than 40% in the rural areas.  The rise in the urban population will provide abundance of labour force for industry.
3.       When an economy gets heavily transformed in favour of industry there are issues:
·         The department that produces the means of subsistence essential to any society gets relegated to a secondary position.
·         Wages in all sectors depend on the value of the means of subsistence.  This means the cost of production of means of subsistence determine the wages.  This concern often makes the wages in agricultural sector and price of food grains to be kept low.  This is responsible for the uneven standard of living between the urban population and the population involved in agriculture.
·         When vast majority of the population gets shifted to the urban and industrial sector it means these people get reduced to property less masses depending on volatile employment and wages.  Only the minuscule population then owns capital.  The rest of the people find themselves outside the economic, political and social life.  They live on the fringe (edge) of the society with loss of purpose, relevance and meaning of life.
·         While consumption in terms of industrial products will be high in value involving high value of capital, consumption in terms of means of subsistence will be low in value resulting in low return in agriculture.  This will make capitalism unsustainable leading to crisis of over production and under consumption.
4.       There is no agricultural policy to boost its growth.  Agricultural growth is not considered in an attempt to revive overall growth.    Since agriculture cannot attract FDI it is relegated to the last space.  Only urban and industrial sector is considered to evaluate GDP.  In the Neo Liberal ideological perspective growth is seen only in terms of FDI and exposure to foreign capital.  Foreign investment is not a stable bench mark for growth.  It comes and goes like wind along the rumours and gossip about economy of the nation.
5.       When the land acquisition bill is debated apparently some interest for the problems of the farmers is shown.  But it is totally eyewash.  How can land acquisition be discussed without a discussion on the future of agriculture and the farmers?
It is not enough to have rehabilitation and resettlement plans.  This is looking at the issues of land and farmers negatively.  What is required is a positive agricultural policy which keeps the farmers’ interests in the centre stage. 
What is required is to identify the unproductive and uncultivable land and promote industrialization in these areas.  Of course this will require development of infrastructure and transport.

The rich farmers and big landlord often hold vast stretch of land.  They leave some land fallow.  Their per acre productivity is much lower than the small and medium farmers.  A more rational land reform is needed to make sure that the farmers hold viable size of land and the big landlords are forced to give up excess land.

The fertile lands should not be touched for industrialization.  There should be robust development of infrastructure like irrigation, power, cold storage and food processing units, transport and market facilities.  The rural roads are in horrible state.  Power supply is absent for the most part of the time.  There are possibilities for installing small power plants based on solar power, wind energy and through use of biomass.

Bank credit should be made available for the farmers on the lines of credit available to industry.  They should be able to draw on the basis of their product and stock.  If the banks function well in the rural areas along the line of urban banks there will not any need for loan waving.

If the small farmers become self sufficient it will solve the problem of unemployment and nutrition in the rural areas.  These farmers should be able to live in dignity and have access to modern education and lifestyle without having to give up agriculture.  Agriculture should become a dignified way of life like any other dignified occupation. 

While analysing the defeat of the Left Front government there were several point put forward as explanation for its defeat.  The left front held on to power for more than thirty years.  The reason for this long rule was that it enjoyed the support of the rural population which had immensely benefitted from the land reform (operation Borga).  But these people had developed aspiration bigger than just holding land.  The left front government was not able to meet these aspirations.  The rural masses wanted to enjoy the life style their urban peers were having.  They wanted to have access to modernity and the luxuries enjoyed by the urban middle class.  Since this is only at the analytical level it is not very clear what kind of economic engagement the rural masses were looking for.  Did the people want to give up agriculture and look for jobs in the urban centres?  In that case why were there strong protests against land acquisition in Singur and Nandigram, where many had given their lives?   Did the rural masses expect better life style by migrating to the urban centres and would that be possible.  The answer to these questions is probably very simple.  The growers of the food for the nation did not have the life they deserved.  The economic organization was unfair to the crucial agricultural sector.  The policy makers did not have imagination to think that given proper policies and plans the rural population should lack nothing in terms of good housing, health, education, infrastructure of every kind which would put their life style on par with the urban middle class.  But this could not happen given the liberalization.  When there is no regulation and planning the industrial and urban interests get better of the economy and society.    The growth oriented and market driven economy looks for higher profits and does not have eye for equity and justice.  They are so engrossed in their pursuit for profit that they forget the fact that it needs a market, i.e., people with purchasing power to realise their profits.  The fact that the economy has taken the turn for the worst is a clear proof of its non inclusive nature.  Inclusiveness should not be expressed by giving doles to the rural poor.  It should mean the rural agriculture should come in the calculation.  The rural infrastructure and way of life should be so cared for that it will provide people resources to life and benefit equitably from the growing wealth. 

There is a need for regulation and planning for the entire society.  The rural economy and the rural population should be able to grow along with the growth of the urban sector.  The dream of pushing 60% and more population to the urban centres and make them employable in the urban industries by depriving of their land and productive assets will turn this dream into nightmare.  It is like killing the goose that lays golden eggs.

6.       Market and Trade is thought of only in terms of export – export to US and Europe.  The Central Asia and Pacific is not considered.  The domestic market is totally left out of calculation to promote growth.  The large population of about 60% to 70% living in the rural area in a vast country like India with more than a billion people offers the biggest market opportunity for Indian economy.  But this market needs to be developed by promoting development of agriculture.  This will also go a long way in defending food sovereignty and food security for the nation.

LAND RIGHT AND LAND ACQUISITION


AGRICULTURE AND LAND RIGHT: Introductory remarks
Alex Tuscano

Land Right:
=Respect for land rights is essential to sustainable development. Land is central to people’s identity, livelihood and food security. International standards and frameworks are abundantly available.
Yet time and again the human rights of the people who own or use land are violated due to policies and practices relating to its improper use and acquisition. Sub-Saharan countries are a poignant example.
For the past decade, foreign investors have been looking for greener pastures in Africa. Some foreign governments and private enterprises acquire long-term leases of large portions of arable land as part of efforts to secure sufficient food and energy for their home populations. Such actions could be explained in human rights terms. This is not the case, however, if foreign governments are acquiring land only with a view to trade in international markets.
Most of the poor share three traits: they live in rural areas, rely on agricultural labour to survive, but don’t own the land they till.


Immediately after independence there was only one official slogan ringing throughout the country.  It was “Jai Jawan Jai Kisan!”  The Jawans had just fought the first war with Pakistan to protect Kashmir.  And the nation that was predominantly agrarian needed Kisan to produce for the people.  But it was also admitted that this Kisan who fed their countrymen was himself lived a miserable life.

After independence Jawaharlal Nehru announced land reform as the immediate task before the nation.

Since then till today a lot of water has run down the bridge.  In India we saw two centres of power.  At the rural and state level the landlords dominated the economic and political power and at the centre the Industrial capitalists were trying to push themselves forward.

THE CONDITION OF FARMERS OF INDIA:
Extensive Indebtedness
·        The findings of NSSO 59th round (2005) clearly shows that 48.6 per cent of the farmers are indebted, and have incurred significant liabilities.

·         The estimated prevalence of indebtedness among farmers was seen to be highest in Andhra Pradesh (82 per cent) and lowest in Uttaranchal (less than 10 per cent).

·         More than 50 per cent of the farmers have availed loans for capital or to meet current expenditures for farming purposes.
·         58 per cent of borrowing accrues to cultivation and other agricultural activities while the remaining percentage suffices to meet other consumption needs.

·         Out of the estimated 43.4 million indebted farmer households, 6.9 million indebted households are from Uttar Pradesh, whereas 4.9 million are from Andhra Pradesh. Maharashtra follows close with 3.6 million farmers and West Bengal is not far behind with 3.5 million.

·         The highest proportion of indebted farmers belongs to the other backward castes (OBC) category with 41.5 per cent, followed by the scheduled castes (SCs) with 18 per cent. Indebtedness and distress are quite significant among the scheduled caste farmers. It needs no emphasis that it hurts them more than those belonging to other castes. As a result, landlessness among scheduled castes and marginalisation of their holdings has been increasing in recent years.

·         The largest percentage of indebted farmers is located in the size class of 0.01 to 1 hectare. More than 70 per cent of farmers who own less than two hectares are in the indebted category. The average amount of loans outstanding is Rs 12,585.

Banks function differently for Industry and agriculture:

·         Non availability of banks.
·         No link of agricultural production to banking.
·         No advance on stocks.
·         No facility of over draft on current account.  Bank money is available only to industry.
·         Market for agriculture not organized to link with bank credit or over draft.

Insignificant growth in Agriculture:

·         However, all through the 1990s, farm business income showed insignificant growth.
·         grew at 1.02 per cent per annum during 1990-91 to 1999-2000
·         as against 3.21 per cent during 1983-84 to 1990-91 [Sen and Bhatia 2004: 241].

Far from Safety Nets:
It is evident that about one-third of farmers did not really like farming; because it is not a profitable activity and 40 per cent of farmers are even ready to give up farming provided they could secure some other job [NSSO 2005b]. In sum, almost 70 per cent of the farmers are frustrated with their profession.

Technology
The farmer does not get sufficient information from the extension worker, but it is rather the progressive farmer, who provides information to the farmer and this constitutes the best source as acknowledged by the farming community

A general survey of land reform policy and programmes in India up to mid-sixties, therefore, suggests that:
(1) The social motivation for agrarian policy in India was provided by the contending pressures of the erstwhile semi-feudal landlords on the one hand and the emerging class of medium landowners and superior tenants on the other.
(2) Within this common frame, the regional variations in India were determined by the relatively greater pull of the old landed class in the eastern region and of the upper layer of the peasantry in the north-west and the western regions.
(3) In both types of regions the rural poor were neither articulate nor organised at the political level to exercise influence on the land reform policy and programme in their favour either at the stage of legislation or of implementation.
(4) The impact of land reform was positive for the intermediate classes which were upgraded and pushed into a position of prominence both in the land and power structure. On the other hand, the impact was by and large negative for the rural poor. It was mainly instrumental in disturbing the old framework within which the rural poor had some security without creating for them alternative forms of security.
Colonial Land Acquisition Act:
Along with the failure of land reform there was a colonial ‘Land Acquisition Act 1894’ which was used for the colonial powers and subsequent Indian governments against the interests of the farmers. 
In its 117 years of existence, the Land Acquisition Act 1894 (LAA 1894) has influenced the expansion of the power of the State to acquire and take over land. It has helped institutionalise involuntary acquisition. Premised on the doctrine of eminent domain, it presumes a priority to the requirements of the State which, by definition, is for the general good of the public, over the interests of landowners and users.

 In 1984, when the LAA 1894 went through elaborate amendment, the role that the State had taken on in acquiring land for companies was reinforced. The neo-liberal agenda, or the reforms agenda as some term it, forged a partnership between the state and compa­nies.

 Where it guarantees certain conditions and terms that would make projects friction free while guaran­teeing profits; as agents in procuring land and providing clearances; as disinvestors, through which process the transfer of assets would occur.

 In 1984, the Statement of Objects and Reasons (SoR) of the Amendment Act referred to the “sacrifices” of the affected population. “The individuals and institu­tions who are unavoidably to be deprived of their property rights in land need to be adequately compensated for the loss keeping in view the sacrifice they have to make for the larger interests of the com­munity”,

 A model of development that requires extraordinary sacrifices, that is ecologi­cally and in socio-economic terms of ques­tionable repute and which is linked with such phenomena as marginalisation, exclusion and impoverishment has not been able to cross the credibility barrier to convince those who are sometimes referred to as “victims of development”. Macroeconomic projections of growth and prosperity have not succeeded in convinc­ing the project affected that their sacrifice has value that they must respect;
The decades since the development project got underway in the 1950s has caused “development-induced displace­ment”.
It was not till February 2004 that a National Policy on Resettlement and Rehabilitation 2003 was notified, to be replaced in 2007 by the National Rehabili­tation Policy 2006.
A “Foreword” to the draft bill that Union Minister for Rural Development Jairam Ramesh displayed on the ministry’s web­site on 27 July 2011 begins with these words: “Infrastructure across the country must expand rapidly. Industrialisation, especially based on manufacture, has also to accelerate. Urbanisation is inevitable. Land is an essential requirement for all these processes.”
“In every case, land acquisition must take place in a manner that fully pro­tects the interests of landowners and also those whose livelihoods depend on the land being acquired”. This sets up a lexical priority for industry, urbanisation and infrastructure, and introduces pragma­tism into issues of displacement and reha­bilitation. This approach runs through the entire LARR 2011. In the bill introduced in the Lok Sabha, the preamble uses adjec­tives such as “humane”, “participatory”, “informed”, “consultative”, “transparent”, but the juggernaut of “development” is not to be slowed down; the process of dealing with its wake may be modified.
The attempt to reconcile conflicting interests has, however, produced some interesting elements. So,
the idea of “legitimate and bona fide public purpose for the proposed acquisition which necessitates acquisition of the land identified” (Clause 8(2)(a));
that “only the minimum area of land required for the project” can be sought to be acquired (Clause 8(3));
that “minimum displacement of people, minimum disturbance to the infrastruc­ture, ecology and minimum adverse im­pact on the individuals affected” should be ensured (Clause 8(3)).
The LAA 1894 was concerned exclusively with acquisition; it was innocent of the need for rehabilitation.
In 1984, “public purpose” was redefined to include the pro­vision of land for residential purposes “...to persons displaced or affected by reason of the implementation of any scheme undertaken by government...” (Section 3(f)(v)). There was no procedure prescribed, and no entitlements created. It was among the purposes for which the state had the power, under the Act, to acquire land.
The notion of the “affected family” (Clause 3(c)) has been introduced, and this is distinct from the “person interested” who was, and continues in this bill to be the person enti­tled to compensation. “Affected family” includes agricultural labourers, tenants, sharecroppers, artisans, those working in the affected area for three years prior to the acquisition, “whose primary source of livelihood stands affected by the acquisition of land” as also the person who loses land.
Diluting Forest Rights Act
If the state is itself to be acquiring the land, then the protection is diminished to that degree. If the state is legally permit­ted to acquire the land to be handed over to a private company, that dilutes the pro­tection further.
The idea of recognising rights so that they can be monetised and taken over could be viewed as amounting to a fraud on the tribals and forest dwellers. If land has to be diverted for the purposes of industry or infrastructure in scheduled areas and in areas in the Fifth and Sixth Schedules, some route other than the coercive power under the land acquisition law will have to be found.
Change of public purpose – where acquisition is based on one purpose but it is used for another purpose – has been among the practices that brought co­ercive acquisition into disrepute. It revealed  casualness about state power.
Agriculture and Industry at cross purpose?
There is apparently conflict between the interests of the industrialists and the land owning agriculturists.
Industry is trying to take away the space of agriculture.
Industrial capital, essentially the multinational capital is bringing agriculture under their control, making farmers’ existence irrelevant.
The corporate are also taking possession of production, in the form of corporate or contract farming, procuring the food grains and marketing agricultural products.  
India is aiming to be one of the leading nations in the world along the ranks of most powerful advanced nations.  It boasts of its fastest growing economy.  The profile that is being slowly sold is that Indian is going to have economy where 80% of which will be contributed by industry and more than 60 % of the population would be living in the cities.  The planners would like to have less than 20% of the population living on agriculture.
The policy of the UPA II government was enumerated recently by Montek Singh Ahlluvalia in his interview with the NDTV on 25.03.2010.
1.      He wants to ensure that the economy is put on the growth mode of 10% and above.  This would mean more investments, greater exploitation of natural resources and mineral wealth, foreign investment and creation of more Special economic zones.
2.      The second element of the policy is infrastructure development in the cities, more green field airports, flyovers and express high ways.  To ensure faster urbanization which would mean that today there are 300 millions living in the cities; it should reach to 600 million people living in the cities. His expectation is that within ten to fifteen years the urban population will increase to 60% and above of the total population of India,  30% population to stay in the rural areas.
3.      Reform in education to create space for skill training for the youth to make them employable in the urban economy.

We shall take one by one to understand how these points expose the policy of the government with regard to Agriculture.
A.      Creation of more Special Economic Zones, exploitation of natural resources and minerals, building express high ways and green field airports have directly impacted on the rural masses, i.e. the adivasis, the daliths, the peasants and the fisher people.  So fare such projects have been implemented we have seen that the wealth of the middle class, , peasants, daliths, adivasis the poor and the marginalised people have been taken away from them and passed on to the hands of the industrialists.  It has resulted in displacement, converting the peasants and self employed masses into wage labourers. 
B.      We have been told that the 60% and more people will live in the cities.  It is very difficult to understand this as the people displaced from the rural agricultural economy will migrate to the cities in search of jobs.  In most of our metros between 25% to 30% people live in slums and glorified slums.  They are partially employed or unemployed.  The power and water supply in all the cities is dismal.  The transport system is inadequate and in shambles.  To these cities we will see more people, i.e., the double of the people already living in the cities are going to be added to.  These are not necessarily HSMP category of people but those who have been displaced from the rural agrarian economy.
C.      The government is speaking of giving skill training to the youth to make them employable.  But the kind of industries emerging in our society does not require semi skilled or unskilled workers that the skill training is going to generate.  This will lead to the frustration among the so called skill trained youth.
D.     Agriculture will be subordinated to industry.  This is already happening in several ways – industrialization of agriculture by promoting technological revolution in agriculture in the name of increasing productivity. There will be concentration and centralization of agricultural land.  Multinational companies and corporate like Cargill, Monsanto ITC, Reliance trying to push their interests by taking control of seeds and fertilizers and essentially research in agriculture, introducing genetically modified seeds known as BT technology. who will take over the agriculture of our country.   This process will push the farmers from their control on seeds and method of agriculture. There will be no place for self employed peasant economy.
E.        There will be contract farming.  No wonder the BT Brinjal controversy has been treated like highly sensitive security issue where any criticism would be dealt with serious consequences.
F.       The food sovereignty will be given a solemn burial.  Food security will be converted into dole of “25 kg rice per month at the rate Rs. 3.00 only”.  There will be very simple social analysis as there will be a few owning corporate and the rest will be wage labourers in our country.
To conclude: The government agricultural policy is neo liberal policy directly taken out of the text books from Ronald Reagan and Margaret Thatcher.
Let me quote form David Smick’s book, “The world is Curved”.  By the way David Smick is the most insightful financial market strategists in the world who for more than two decades has conferred with central bankers such as Alan Greenspan and Ben Bernanke and has advised Wall Street Executives.
“To be sure, Clinton advisers, such as Summers and Sperling, are correct when they argue that the middle class has not fully enjoyed the benefits of the global wealth machine. In today's financial system, where the wage-earning sector itself is shrinking, middle-class wages alone may never be enough to keep families from financially backsliding. This problem will remain a reality regardless of any government sponsored programs, including hikes in the minimum wage and targeted educational benefits.
Moreover, the gap between the haves and have-nots will likely continue to grow if globalization is allowed to continue. This is because there is an exponential aspect to wealth creation.  And as a result, the entire economic system becomes poorer with fewer jobs. Moreover, schemes aimed at aggressive welfare intervention have destroyed people's dignity, robbing them of any sense of accomplishment.
In the end, the political tensions created by vastly unequal income distribution will likely be difficult to measure and predict, and even harder to control. Highly entrepreneurial economies create big winners and losers. The challenge comes down to how to dramatically expand society's base of winners. The best way to do that is to expand the base of the investor class. In fact, bringing more people into the economy as capital owners may in the long run be the only means politically of saving globalization.
For the middle class, wages alone are not enough to prosper in today's new economy.
In recent years, the global economy has boomed to almost unprecedented levels. Mere wage earners, however, relative to those with a global stock portfolio, can't participate in this wealth creation. They are left at a huge disadvantage by having no way to benefit from worldwide economic growth.
To this extent, I agree with Barack Obama when he said in March 2008: "The core of our economic success is the fundamental truth that each American does better when all Americans do better; that the well-being of American business, its capital markets, and the American people are aligned."
Here is one astonishing statistic that makes the point: Today 40 percent of Americans do not have adequate liquid savings to live at the poverty level for three months, according to New York University's Edward N. Wolff. For a family of four, living at that level for that amount of time would require $5,300 in savings.
As is obvious by now, I passionately believe working-class families want to ride the great financial wave. They want to be transformed from labour workers into capital owners. They want a real stake in the entrepreneurial capitalist system, and they are not resentful of the entrepreneurial success of others so long as the door for wealth creation and opportunity remains open for all.”
I would like to make one last point before I conclude.  The present growing nature of world economy is heavily leaning towards war economy as a safety valve to let out the steam that will be generated by the crisis of over production and under consumption.
We have seen war and production weapons have become inherent part of the economy.  Earlier we had cold war between the USSR and USA.  This cold war is replaced by a new cold war between USA and China in an attempt to gain greater control of the Pacific Ocean.  I warn you that this will trick the countries like India into believing in the need to align with USA.  But the fact remains that USA and China are so interdependent that they need each other for their existence.