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CHAPTER
11
THE
ILLUSION OF ANTI-CAPITALIST REFORMS.
We have seen from
the previous chapter that there is an extensive number of negative effects
of capitalist production on people, other life forms and the environment.
We also indicated a number of the organisations which oppose all or only
some of those effects. They are many, many more. From Amnesty International
to Greenpeace and Eco-Warriers; from animal shelters to Poppy day, the
members of these organisations seek by persuasion, legal constraint or,
on occasion, physical confrontation to mitigate, alter or prevent this
or that effect of capitalistic social and production relations. Thousands
of hard working and dedicated people have campaigned over many years,
hundreds of years in some cases, to end those effects listed in the last
chapter by the method of reform. That is to say they seek to change
the damaging effects and practices of capitalists and their representatives
by passing Acts of legislation or repealing laws, both of which are intended
to 're-form' these activities.
Each generation produces
new activists to replace the older generation and each new generation
hopes that its efforts to reform things will produce lasting results.
But as we have seen, the many and tragic effects of the capitalist mode
of production are still with us. Even the apparently successful campaigns
such as the struggle for Votes, Trade Union Rights, fought for by millions
with the loss of livelihood, liberty and even life - often all three in
succession for many individuals - have resulted in no fundamental long-term
change to the capitalist system of exploitation. Exhausting the environment
and impoverishing the working people of the world - particularly the third-world
- is still central to the capitalist method of obtaining surplus production
and maximising surplus value. This has been demonstrated by examining
the economic logic of capitalist production (M - M+ etc.) in chapter 9
and listing many of the numerous social and environmental consequences
in chapter 10. In this chapter we shall demonstrate the practical impossibility
of seriously trying to reform the rule of capital against capitalist interests
by looking more closely at just a few of the many attempts to do this
and by exploring the extent of capitalist power bases.
The campaign
to reform Slavery.
On the surface of
things one of the most successful attempts to reform the rapacious greed
of the capitalist class for every ounce of surplus value and profit should
have been the campaign to end slavery. The rule of capital cannot be blamed
for ushering in this terrible disfigurement on the face of humanity, for
slavery was the economic basis of the class rule of the Egyptian Pharaohs,
the Greek City States and the Roman Empire. Likewise, slavery and near
slavery (serfdom, peonage, debt bondage etc.) also underwrote all the
feudal kingships, theocracies and aristocracies of the middle ages in
Europe and the East. Moving closer to our own time the historical evidence
also indicates that the Portuguese merchants were busily supplying Europe
and the East with slaves in the 15th Century as the middle-ages grew to
a close. Portugal was followed closely by slave traders in Spain and France.
British merchants trailed only a little way behind, but once started they
soon caught up the rest of Europe.
In considering such
a barbaric practice we must guard against a frequently used rationalisation.
The exploiters among our European and Asiatic ancestors are often excused
for promoting and operating systems of slavery, because they were ignorant
or didn't know any better. We noted in chapter 8 that the Greek philosopher
Aristotle, whilst fully accepting slavery himself, recognised that not
everyone agreed. There were in fact strong arguments against the practice,
particularly by some Sophists, Stoics and Cynics. And of course, most
of the people who were made slaves undoubtedly made their feelings obvious
often preferring to die fighting rather than be captured and enslaved.
Despite such opposition the practice continued more or less unabated.
So we read that;
"...throughout
the early Middle Ages slaves constituted a highly prized section of the
population of Europe, including Northern Europe....Saxons, Angles, Wends
and Avars could all be bought at Verdun, Arles and Lyons at whose 'great
fairs' slavs soon became a prime commodity." ('The Slave Trade'.
Hugh Thomas. Pub. Picador, Page 34.)
The early merchant
capitalist traders merely added slaves to their lists of highly saleable
objects. But whilst capitalist rule cannot be reproached for introducing
the practice of slavery, it can be held to account for extending it and
for not quickly abolishing it. After all, (as we shall see in more detail
in the next chapter) the rule of capital pronounced its right to overthrow
the despotism of feudal autocracy by claiming to be an 'enlightened' form
of socio-economic organisation. Yet in general the capitalist class were
as keen to invest in the slave trade after their 'revolutions' as they
were before them. The rapid growth of the capitalistic 'Atlantic Trade'
in black African slaves accelerated the conquest and colonisation of the
Caribbean Islands, North America and South America. The owners of the
capital intensive sugar, coffee and tobacco plantations, in those hot
and humid territories, needed robust, cheap labour. Since no one would
volunteer for such back breaking work, people from Africa were captured
and forced to do the work as slaves. Purchasing human beings at two or
three pounds sterling (or the French, Spanish or Portuguese equivalent)
or in exchange for Cowry shells and iron bars and putting them to hard
labour brought quick wealth to unscrupulous merchant capitalists and plantation
capitalists alike. The resulting high returns were a sufficiently strong
enough economic incentive to shoulder aside all moral and religious sensibilities.
Yet even many of the capitalists and their supporters, who had no direct
interest in slavery, did little or nothing to end slavery and indeed for
long periods of time many of them did their best to hinder the 'official'
end of slavery. The exception to this being a few of the bourgeois radicals
involved in the leadership of the French Revolution. More of that later.
For now let us provide ourselves with a few details of the economic benefits
of slavery to the capitalist traders and planters.
The Atlantic Slave
Trade saw merchant adventurers and representatives of capitalist companies
set off from England, Spain, France and Portugal in wooden sailing ships
for the African coast. In their holds they carried, brass rings, iron
bars, cowry shells, cloth and other assorted commodities. These they bartered
for slaves, elephant tusks and other items. The purchase of these human
beings cost the merchant traders the equivalent of between £2 and
£3 per person. They would be packed into the ships holds and the
vessels would then be sailed across the Atlantic to one or other of the
Islands of the West Indies or to North or South America. There the human
commodities would be sold for between £20 and £40 per slave.
A vessel carrying 350 slaves whose combined costs amounted to a total
of say £875 could be sold, if all survived, in Kingston for £8,750.
Such amounts would then be used to purchase tobacco, sugar, rum, cotton
etc., for the return trip to Europe where these non-human commodities
were also sold at a considerable mark-up. Even with high mortality losses
among the slaves, a truly remarkable profit could still be made. For example;
"...the owners
of the Enterprise reaped a net profit on the round trip of £24,430.45p....The
Louisa of Liverpool made a profit of nearly £20,000 on a voyage
to Jamaica in 1800. The Fortune made over £13,000 delivering
Congolese slaves to the Bahamas in 1805.....In later years when slave-running
had become a somewhat more hazardous enterprise because of the agreement
of several countries to suppress the trade, profits of £60,000 on
a single trans-Atlantic run were possible." (Richard Hart. 'Slaves
who Abolished Slavery.' Vol. 1. Pub. University of West Indies, page 69/70.)
Ten thousand pounds
to sixty thousand pounds were typical amounts of surplus value gained
in the days when £5 would buy the following group of items; a gun,
a couple of swords, 60 pints of alcohol, 64 lb. of gunpowder, a couple
of boxes of beads, 100 flints and lead balls and a couple of lengths of
cloth. Clearly this would make the above sums quite staggering amounts
if adjusted to today's figures.
Before we briefly
note the long struggle of the reformers to try to abolish the slave trade,
let us remind ourselves of how the slaves were treated in the sugar, tobacco
and coffee plantations of the West Indies. This is how one eyewitness
described a typical scene, on this occasion in Jamaica.
"The Overseer
then asked a few questions of the drivers respecting the offences of the
six slaves brought up for punishment....The first man was of about 35
years of age. He was called a penkeeper, or cattle-herd: and his offence
was having suffered a mule to go astray....One of the drivers then commenced
flogging him with a cart-whip....The cart-whip is about ten feet long,
with a short, stout handle and is an instrument of terrible power. I trembled
and turned sick...The sufferer, writhing like a wounded worm, every time
the lash cut across his body cried out, 'Lord: Lord: Lord:' When he had
received about 20 lashes, the driver stopped to pull up the poor man's
shirt...The flogging was instantly recommenced and continued...til thirty-nine
lashes had been inflicted...I perceived the blood oozing out from the
lacerated and tumified parts where he had been flogged;...he was instantly
ordered off to his usual occupation." (ibid. page 92/93)
This type of punishment
was no exception but 'openly' the norm in the English Plantations during
that period, and 39 lashes by cart-whip on bare back and buttocks was
the standard punishment for male and female slaves. The power of the cart-whip,
designed to inflict pain through the tough hide of oxen, ensured that
from the very first stroke not just blood but skin and flesh were torn
from the body of the human victim. Other punishments included chopping
off one leg or beheading for runaway slaves; nailing by the ear to a post,
releasing them by cutting the ear off. The latter punishment was strictly
reserved for minor offences.
Again we should not
imagine that some kind of universal 18th Century ignorance and backwardness
was to blame for such regular acts of racist torture for this eyewitness
clearly recounts his own horror at the episode and so did many others.
And it must be said that the perpetrators of such abuses also knew. These
punishments were not mere individual and arbitrary acts of wickedness.
They were systematic, widespread and deliberately chosen for their severity
in order to strike terror into all slaves and thus create a sufficiently
submissive and hardworking labour force. Forcing slaves to punish each
other was a clearly thought out process. Compelling one slave, under threat
of further punishment, to shit in the mouth of another slave was a punishment
calculated to humiliate as well as divide the oppressed themselves.
Not all the protesters
were against the use of slaves - some merely being against such brutal
punishments. The reformers, or Abolitionists as they were known, decided
for tactical reasons to try to ban only the trade in slaves but not the
ownership and use of slave labour. They thought this would be easier to
achieve and would force the slave owners to be kinder to their existing
slaves. If the owners were unable to obtain more slaves, the reasoning
went, the slave owners would choose to look after the ones they had better,
and cease to work them to death, as was the usual practice. In the minds
of the reformers this doubtful tactic should have had the effect of broadening
the appeal of the campaign and increasing the chance of early success.
Not so. It is worth considering the abolition reform process in Britain.
In the late 1700s
the campaign for the reform of the slave trade began in earnest and petitions
began to pour into the House of Commons in England and eventually Parliament
decided to investigate the matter. The representatives of the slave traders
and plantation owners however decided to string out the procedure.
"They obtained
permission to appear by counsel at the bar of the House and to have their
witnesses heard. Thus began a parliamentary wrangle in which the slave
trading and plantation interests, using every procedural devise available
with unequalled filibustering skill, delayed the decision to prohibit
the slave trade for 20 years." (ibid. page 159)
These ruthless profit-mongers
gained yet a further 20 years of trading and torturing human beings even
after it had finally become a public scandal. The reformers had used up
much energy, time and money and after 100 years of opposition and decades
of campaigning by those trying to reform this, by now fully capitalist
practice, they had not prevented the use of slaves nor had they ended
the slave trade. They had only achieved a Parliamentary declaration which
stated it was illegal. It was a paper victory only. In actual fact the
ban on slave trading was almost universally ignored. What couldn't be
done openly by the capitalist traders, as in the case of today's impotent
bans on arms trading, was done covertly and by smuggling. A change of
flag for the ship or nationality for the owner, bribes, favours and officials
looking the other way, as also happens today, also played their part in
ensuring that the lucrative trade in human beings continued. Although
eventually British naval ships pursued and boarded ships thought to be
slavers, it actually took slave revolts in Haiti, Jamaica, Surinam and
other places to finally end slavery in the West Indies and a ruinous Civil
War to end it in the United States of America.
Slavery only died
out in other places when industrial capitalists became more powerful than
mercantile capitalists and could force upon them their wishes. In this
case the reasons were economic and not moral. Industrial capitalists needed
a labour force which was educated, mobile and had purchasing power - none
of which was possible under an extensive system of slavery. This particular
view was clearly formulated by the 18th century capitalist Economist,
Adam Smith in chapter 11, Volume 1 of his book known as 'The Wealth of
Nations'.
A practical example
of how slavery was perceived to impede the development of capitalistic
forms of productive development was provided by the resolution of the
citizens of Rowan County USA., who declared that;
".. the African
trade is injurious to this colony, obstructs the population of it by freemen,
prevents manufacturers and other useful immigrants from Europe from settling
amongst us and on occasions an annual increase in the balance of trade
against the colonies". (Quoted in Hugh Thomas. 'The Slave Trade'
Pub. Picador, page 461.)
This statement demonstrates
the view of the industrial capitalist in contradiction to the capitalist
slave trader and plantation owner. A free labourer at that time would
cost the equivalent of £20 per year in wages to employ in menial
tasks. Over ten years this would create a total cost to the employer of
£200. A slave costing £25 - £30, could be forced to do
the same tasks for ten years and only cost the original £25 - £30
and still provide surplus labour for the remainder of his or her life.
This was obviously a tremendous saving for the slave owner. However, the
£20 per year wages of the free labourer would circulate every year
in purchases of food, clothes, tools, drink and housing. Thus the free
labourer's wages would go toward enriching food producers, clothing manufacturers,
landlords and publicans, whereas the £25 purchase price of a slave
would disappear at one go into the bank accounts of the European slave
traders. Hence an economic community with 500 free labourers would be
better, for general capitalist development, than one with 500 slaves even
though it might be worse for a section of capitalists. A further increment
in the economic equation came with the application of steam-powered machinery
to the crushing of sugar cane. Machine power, here as elsewhere, lessened
the need for such large quantities of labour.
These combined factors
indicate that slavery wasn't so much peacefully legislated out of existence
by the philanthropists, as energetically eliminated by slaves' revolts,
a civil war and changes in technology. Such factors moved the 'liberation'
process forward during a period of time where slave based plantations
had become less viable and more certain profits could be made elsewhere.
This, together with the fact that slave labour was clearly seen to be
inhibiting the further general development of capitalist forms of production
and exchange, meant that the Atlantic slave trade was in rapid decline.
Dedicated and passionate
as they were, the abolitionists and reformers in the end only helped to
draw up and advertise a somewhat premature death certificate for a trade
already economically doomed. So the reformist campaign to end slavery
was not the ultimate instrument of its destruction even in the case of
the Atlantic trade. Had sufficient capitalists still supported the use
of slavery the abolitionist reformers would probably still be campaigning
today. And in fact slavery still does exist today (particularly in the
form of child debt-bondage) in many parts of the world, despite almost
universal condemnation against the practice. It does so precisely because
sufficient capitalists, in some parts of the world, still do support it
and others turn a blind eye.
A very similar pattern
of reformist failure has repeated itself in the case of the ideological
companion to the economic practice of slavery - racism! Despite long campaigns
and reformist legislation in numerous countries outlawing racism, it still
exists, not in isolated pockets of backwardness, but at the heart of most
of the bureaucratic structures and institutions of capitalist so-called
democracies.
The reformist
campaign against Poverty.
Another candidate
for easy and popular reform should be the removal of poverty. Organised
religion of the Christian (and pre-Christian) varieties have since the
year zero condemned the existence of poverty and for much of the past
two thousand years those religions have dominated the political, social
and economic structures of Europe and America. These Abrahamic religions
have in one form or another been embraced by the capitalist classes and
their representatives and have become state religions in many advanced
capitalist countries of the world. It would not be unreasonable then to
expect that such countries would have made giant steps in the elimination
of poverty.
Such is the plight
of human poverty, even within the advanced countries, that it seems it
could not fail to stir anyone save the most hard hearted to do something
serious to end it. This is not just a modern opinion, Henry Fielding wrote
in 1753.
"...if we were
to make a progress through the outskirts of the metropolis and look into
the habitations of the poor, we should there behold such pictures of human
misery as must move the compassion of every citizen here that deserves
the name of human." (Quoted in B. Inglis. 'Poverty and the Industrial
Revolution.' Pub. Hodder and Stoughton, page 22.)
This, plus the apparent
predominance of Abrahamic and Christian values among the dominant classes
in capitalist society, together with the immense productivity of capitalist
industry and agriculture, should have made poverty a prime candidate for
eradication by the method of reform. Alas! this is not so. Let us consider
a brief history of the problem.
In the 16th century,
the poor who were not attached to the land were classed as vagrants, were
punished by whipping and sent back to the place where they were born to
find work or be supported. Later each town and parish was urged to provide
funds for such purposes. However, despite pleas and even denunciations
from the pulpit, most people who were able to pay failed to volunteer
anything. During the reign of Elizabeth 1st, when capitalist enterprise
was in a phase of rapid development, a new law was passed which compelled
the provision of a poor rate and introduced the notion of the right to
work. Later still, under Charles the 2nd, an act of Settlement and Removal
was passed to enable towns and villages to forcefully return paupers to
their place of birth. None of these acts tried to solve the problem of
poverty, they merely shuffled the problem about. A debate ensued in which
some (Sir Mathew Hale for one) put forward the case that the poor rate
should be used for purchasing means of production such as looms so that
the poor could produce goods to offset the poor rate. A powerful counter-argument
was presented by Daniel Defoe, who noted that producing goods in one new
place would merely prevent the sale of the same or similar goods in another.
He wrote;
"For every skein
of worsted these poor children spin, there must be a skein the less spun
by some poor family of person that spun it before....it is only transposing
manufacture from Colchester to London and taking the bread out of the
mouths of the poor in Essex, to put it into the mouths of the poor in
Middlesex." "(ibid. page 19)
The interesting thing
is how far the capitalistic method of production in Britain had developed
by that time. This is revealed by the success of Defoe's counter argument,
which rested upon the existence of an already commonly held assumption
of what is called relative over-production - at least amongst his intended
audience. That is to say, that schemes such as that suggested by Mathew
Hale, would not produce more 'worsted' than was needed, but more than
could be sold at the price required to realise a profit. Due to the rise
of capitalism, the motivation for production had changed. It had changed
from local subsistence production with any surplus production exchanged,
to production for the realisation of profit. In the process of the above
debate it is also possible to catch a glimpse of the real cause of poverty.
It was not the unwillingness to work that made working people poor, but
the inability to find appropriate paid employment.
Forcibly driven off
the land, by enclosures, with as yet no large-scale industries to absorb
these surplus labourers, and with the law of settlement still in place,
even willing agricultural workers were often forced onto the black economy
of that day - poaching, begging, vagrancy, stealing, street vending and
wheeling and dealing. But hardship was by no means restricted
to those who were unemployed. The surplus pool of labour created by these
capitalist-inspired agricultural developments also caused hardship for
those 'in work' because it also helped to depress agricultural wages and
increase the 'casual' nature of agricultural work. In such circumstances
the situation for the poor got rapidly worse. The developing capitalist
system created poverty in the rural population as a by-product of its
profit-led motivation and method of production. It later extended that
same profit motivation and methods to the industrialised manufacture of
non-agricultural products. As a result, poverty for the working people
grew alongside and in proportion to the rapidly increasing wealth of the
capitalists class. The poor were not disappearing, but increasing.
In 1795 a local reform
of the poor law determined that whenever the earnings of the poor working
man fell below a certain level then a subsidy would be paid to bring the
earnings up to a minimum subsistence level. The system became known as
the Speenhamland system and was adopted widely. Clearly this reform didn't
remove poverty, it just put a lower cash limit to that poverty. Nonetheless
it was a useful tinkering with the previous system of charity and alms
giving. A year later an attempt to have the idea broadened out was made
when Samuel Whitbread introduced a proposal to Parliament calling for
a minimum wage to be established. When the vote was cast, the bill was
voted down by the pro-capitalist representatives, but the idea championed
an alternative reformist model for attempting to deal with absolute poverty
- the minimum wage. This is a model which was resurrected in the 20th
century by the European Economic Community, albeit with certain categories
of working people left out. A constant debate during that earlier period,
which also still echoes down the years to today, was over a distinction
between what was called deserving and undeserving poor. The deserving
were described as those who wanted to work but couldn't get it and the
undeserving were those who could work but didn't want to do any.
In the absence of
any real progress in overcoming poverty, a fanciful solution was put forward
by a Jeremy Bentham. He proposed that a National Charity Company, with
himself as the main shareholder, be set up which would build over a twenty
year period 500 industry-houses for the whole of the nations poor. Each
of these 'institutions' would contain living and working quarters for
2000 poor people. They would be set to work in various ways and made to
yield a profit for the company over the cost of their upkeep. Two-hundred
per cent profit was the projected target from able-bodied men and one-hundred
percent from able-bodied women. In this way, Bentham suggested, 'dross'
(i.e. the unemployed = the dregs of society) would be turned into 'sterling'
(i.e. profit for the shareholders). Children of the inmates would be set
to work at four years old and everyone would be worked hard enough to
prevent them from being tempted by drink and other work-avoiding distractions.
Yet interestingly they would have been allowed, from an early age, the
distraction of frequent sexual relations. This apparent moral laxity was
in order to increase the number of working inmates on the assumption that
each new offspring would eventually yield an extra 100 or 200 per cent.
For various reasons this fantasy or rather 'nightmare' extension to the
much-hated workhouse scheme was not taken up
Following a series
of agricultural riots in 1830 a New Poor Law was passed in 1834 which
aimed at a further reform based upon the distinction between providing
support for the aged and sick and the able-bodied unemployed person. It
was the able-bodied poor who constantly bothered the ruling class of that
period, for if they provided them with too much financial support when
not working, they would not want to work at all. By the same measure too
high a level of support would be a disincentive for those already in work
who would see the unemployed getting almost as much as they were. For
this reason it was considered that the two situations (non-working poor
and working poor) needed careful separation. This is also a debate which
is still alive today in the setting of income support levels and unemployment
pay and again shows how little capitalist and reformist thinking has travelled
in the intervening years. The New Poor Law of 1834 thus reformed the old
poor law and introduced a payment to the poor unemployed person which
was deliberately calculated to be less than that gained by the lowest
paid working person. The reasoning was thus;
"It is only by
keeping these things separated and separated by a broad and as distinct
a demarcation as possible and by making relief in all cases less agreeable
than wages, that any thing deserving the name of improvement can be hoped
for." (From the Poor Law Report 1834 Quoted in 'The Idea of Poverty.'
G Himmelfarb. Pub. Faber and Faber, page 164.)
As we have seen from
Chapter 9, for each generation, working class earnings fluctuate around
an average, based upon the cost of feeding, clothing, housing etc. When
these 'earnings' are below average then even the employed are in grave
difficulties. The unemployed relief provided by the above type of model
would then have to be reduced even further and would push them even further
down into poverty. So again we see that this reform did not by any means
eliminate poverty. At best it was merely a method of managing or controlling
poverty and in some cases it could actually increase it. This New Poor
Law also incorporated the idea of the workhouse. The reputation of the
workhouse preceded it. It was hated by the working classes. Confinement
in a workhouse was considered so obnoxious, even by the middle-classes,
that it was judged to be a self-test of how destitute a person was. It
was reasoned, at the time, that someone asking for entry into a workhouse
would not need to be means-tested for they would have to be extremely
desperate to agree to enter.
All through that long
period it was a small section of the capitalist class who were calling
for reform of the poor laws and aid to the poor. Their reasons differed.
Some were anxious to stave off rebellion from below, others thought visible
poverty was a blight upon an otherwise glorious capitalist system. However,
with the development of a National Union of the Working Classes and its
journal, the Poor Man's Guardian, a more working-class voice began to
be heard. Rather than tinker with wage subsidies, poor relief and workhouses,
the editor and contributors of 'Poor Man's Guardian' saw the root of the
problem of poverty in the lack of the poor being able to vote. This was
another dangerous reformist illusion, as we shall see, but at the time
they argued that;
"The real issue
was not the 'advocacy of poor laws' but the advocacy of universal suffrage;
indeed the franchise was required in order to 'supersede poor laws and
pauperism'." (ibid. page 244)
The Chartists, whom
we mentioned briefly in Chapter 1 with regard to the problem of sectarianism,
were committed to essentially the same programme. Both groups thought
that if the working class was given the vote then this would fill Parliament
with working men or supporters of the working classes and the poor. These
representatives would then pass laws to ensure that capitalist property
rights and profits were restricted in such a way that the abundant wealth
which was clearly available would be shared out more fairly. In other
words they thought the working class representatives, once in Parliament,
could ensure that the working class would get a more equitable share of
the surplus value they produced. Neither of these two powerful movements
for electoral reform were successful. Yet eventually the vote was won
for men and later for women. As we know, obtaining the vote did not remove
poverty from within the geographical boundaries of Britain nor anywhere
else where it was gained for that matter. It failed despite the fact that
Britain was then the most wealthy and developed capitalist state in the
world. But then if we understand the economic and political dynamics of
the capitalist system we know it could never have succeeded.
For the dynamics of
competition drives capitalists to introduce technology to replace human
labour and in this way they routinely create a surplus pool of working
people whose wages then cease and whose income, therefore, falls below
the cost of maintaining them and their families. What legislative reform
could reverse that trend? Would a government of pro-capitalists, or pro-chartists
for that matter, be likely to outlaw competition, ban the introduction
of machinery, or alternatively make it illegal to dismiss working people?
The only way to have solved this problem would have been by a revolutionary
challenge to the whole basis of the system of capitalist production -
wage labour - and loyal members of Parliament were certainly not going
to do that.
The debate on Poverty
continued down the years and various other reforms were introduced to
amend the Poor Laws in the late 19th century and the early 20th. Needless
to say none of them extinguished poverty. The unemployment Insurance Act
of 1920 introduced a contributory scheme for working people which provided
a paltry amount of aid for those workers made destitute by unemployment,
but it did so only for short periods and only to those who could prove
they were genuinely seeking work. Contributory payment schemes of reform
such as this obviously do not end poverty. For a start, thousands were
not covered by the scheme, nor did the schemes end poverty for all those
who were covered by them. The reason being, the level of relief was set
too low and it was paid for only a very short time. After a short period
of relative poverty on relief came a period of absolute poverty when it
was terminated.
In 1931 the British
government cut the already meagre amount of unemployment pay by 10%. Public
Assistance Committees, Unemployment Assistance Board and charities were
left to deal as best they could with the problem. This period witnessed
the large-scale unemployment demonstrations and hunger-marches of which
the Jarrow march became the most well known. It was only after the Second
World War, (both the First and Second World Wars having created further
poverty and mass destruction) that the greatest reforms aimed at the welfare
of the working class and the poor were made. The Beveridge scheme of social
welfare put to Parliament in 1944 was the capitalist welfare reform par
excellence and, in the hopes of the paternalists and reformists, was to
finally end the five biggest problems said to be facing working people
under capitalism - Want, Disease, Ignorance, Squalor and Idleness. The
scheme was intended to guarantee families an income at a minimum level
if their income was effected by unemployment, sickness, or old age. Despite
the optimism and the energies crammed into the scheme it was never equal
to the task. Today, over half a century after its flawed implementation,
this most radical reform is in tatters. Want, Disease, Ignorance, Squalor
and Idleness are all still on the rampage not only on the 'forgotten estates'
but on the streets of every large town and city, for as we have seen,
they are the indirect product of the capitalist system. We can see from
this evidence that every grudging reform devised by the British capitalist
class has only tinkered with the symptoms of poverty and kept well clear
of the cause, even when that cause has been openly recognised.
The situation fared
no better in that other wealthy capitalist country, the United States
of America, as was outlined in the last chapter. There too poverty followed
very closely on the heels of the development of capitalist ownership of
the means of production. However, in that chapter's survey of the effects
of capital, we omitted to note the cynicism of the modern pro-capitalist
politicians on the issue of reforming poverty. For example; after repeated
instances of extreme poverty, as late as the 1960s, reported by a Board
of Inquiry, the New York Times noted;
"At least ten
million Americans are victims of hunger....Whatever happened to President
Johnson's commitments to wage all-out war on poverty and hunger?"
(New York Times. April 28 1968. Quoted in 'The Unholy Hymnal'. by Albert
Kahn. Pub. Wolfe, page 113.)
Perhaps President
Johnson's promised reform of poverty suffered the same cynical fate as
it did under the following pro-capitalist President, Richard Nixon. Nixon,
in the wake of public outcry, instructed his aides to say;
"...that this
Administration will have the first complete, far-reaching attack on the
problem of hunger in history. Use all the rhetoric, so long as it doesn't
cost money." (ibid. page 116.)
Of course hunger is
only one aspect of poverty even if it is the most distressing one. Such
out-of-sight responses are typical of many capitalists and their supporters
- hot air or some shoddy reform, and share as little of the annual surplus
value produced by the working classes as possible. Reforms never did end
poverty in any capitalist country and could never do so because poverty
is an essential by-product of the capitalist system of production. It
cannot be reformed away by legislative tinkering and adjustment, nor can
it be dealt with by focusing the symptoms such as homelessness and hunger.
After 200 years of campaigning for reform, after many a hard-won legislation,
much hand-wringing and pleading, poverty is still endemic, and in many
places greater. This is so even in all the advanced wealth-saturated countries
of the capitalist world, Europe, America and Japan. The long history of
the globalisation of capital has also ensured that by armed invasion,
colonial export and later financial infiltration, poverty, not only relative
but absolute, has flourished in all countries of the third-world as well.
It would not be too
difficult to take other examples of issues which have attracted long-suffering
campaigns for reform and which most people would think would be easy to
achieve. It would be possible, for example, to trace the reforms aimed
at ensuring we are able to eat unadulterated food, campaigns which have
gone on for many, many decades. Yet consumers still have to protest long
and loud against various contaminants and unhealthy practices. The most
recent being the 'Brave New World' of genetically modified adulteration
which now rears its potentially ugly head. The campaigns and legislation
aimed at outlawing unsafe working practices also have a long and chequered
history. They have resulted in numerous Factories Acts and this patchy
development could be similarly traced. But we have seen in chapter 10
that in the 21st century unsafe working practices still go on daily in
Industry and Commerce - even in such potentially dangerous industries
as nuclear power stations.
Similarly, a description
of the campaign for basic Human Rights, a reform now embodied in a United
Nations' Declaration, could be undertaken, but we would still in the end
be forced to draw a negative balance sheet. In many countries of the world,
human rights abuses are large-scale daily occurrences. These are happening
whilst capitalist salesmen and politicians clasp the hands of the perpetrators
of such horrors having clinched the latest lucrative business deal. Human
Rights' abuses, unsafe working practices and adulterated food are still
with us today every bit as much as poverty. And of course, just because
slavery was officially outlawed in the West in favour of wage-slavery,
debt bondage and cheap casual labour, doesn't mean that this obscene practice
has even ended yet.
The two examples of
the negative results of capitalist profit seeking considered in this chapter,
are so startlingly universal, so appalling and so close to home to us
as human beings, that there should have been no opposition to ending them.
Yet there was and still is. If the campaigns to reform these particular
practices have failed then reforms aimed at less inhuman, less prominent
issues (including all those listed in the previous chapter) have no chance.
No amount of campaigning, persuasion, eloquence, petitions and numbers
of people demonstrating has ever made as much as a dent in the effects
of the rule of capital. Yet the illusion that we can reform capital into
better ways still persists. We shall now consider why.
The capitalist
form of production requires change.
When the capitalist
class institutes a system of government or seizes control of one, it immediately
sets about developing or modifying that system to insure the continued
rule of capital and to ensure it has the means to effect only the changes
it needs. Those who sincerely wish to bring about lasting change to the
issue they feel most strongly about need to recognise that even small
reforms won't be accepted unless they are in the profitable interests
of the capitalist class. Therefore, the idea of reforming the rule of
capital in the interests of animals, the environment or the working and
oppressed classes, has proved and will continue to prove, nothing more
than an illusion. Yet there is a reason and material basis to that illusion
which we need to consider. It springs from the fact that all ruling elites
have the desire to both conserve their power and privileges and at the
same time to welcome and promote changes which increase their opportunities
to gain or extend their control of wealth. There are therefore periods
when ruling classes are conservative or reactionary, and periods when
sections of them are advocates of reform or even on occasion, revolution.
Recognising this,
and appreciating also that where a ruling class is made up of different
sections (e.g. between landed capitalists, industrial, commercial and
financial capitalists) one section can become reformist whilst other sections
remain conservative or reactionary. As we shall see in the next chapter
once the emerging capitalist class had successfully challenged the aristocracy,
in the 17th and 18th centuries, it had no further need for revolutionary
methods and so entered a period of consolidation and control. To do this
it required a form of government responsive to the dynamic and expansive
development of capital. When Edmund Burke writing in the late 18th century
reminded his fellow conservatives that "Change is the means
of our preservation" he was only stating the political and
social needs of capital as perceived by this clear-sighted representative
of the capitalist class. He also noted;
"A state without
the means of some change is without the means of its conservation...By
a constitutional policy working after the pattern of nature, we receive,
we hold, we transmit our government and our privileges, in the same manner
in which we enjoy and transmit our property and our lives." (Edmund
Burke. 'Reflections' in 'The Portable Conservative Reader' Ed. Russell
Kirk. Pub. Penguin pages 9 and 11.)
Leaving aside the
crude anthropomorphic reference to the pattern of nature, we can see that
in Burke's view change is fundamental to hanging on to property and privileges.
Edmund Burke was a considerable influence in conservative political (and
thus capitalist) thinking in Britain and America. Of course Conservatives
are not supporters of constitutional forms of change just because Burke
advocated this, but because they too recognise that change is a necessary
political compliment to the industrial dynamic of capitalist production
which is itself constantly being modified. Competition and technological
advancement are always presenting new developments requiring greater or
lesser amounts of change in procedures, geographical location and commodity
forms. In every capitalist country in the world the capitalist class has
developed a system of government which allows it both to conserve and
to change through legislative reform. The systems vary from; Parliaments,
(England, Canada, Australia, Italy, Sweden, Denmark etc.); Congresses
or Chambers of Deputies (Spain, Belgium); Federal or National Assemblies
(Austria, Germany, France); to Houses of Representatives and Senates (America,
Japan); but they are all 'home grown' varieties of the same basic political
structure which capitalists throughout the world have perfected for their
continued rule. In all cases, behind their political organisations, stand
their state institutions and military organisations.
The parliaments, congresses
and assemblies are staffed by the capitalist class and its supporters
in each country. Proposals to change or reform any aspect of the social
or economic structure of the capitalist country concerned must in this
way face the combined and continuous scrutiny not only of powerful individual
capitalists but also the representatives of the whole capitalist class.
The 'swearing in' ceremonies, 'loyalty declarations' and 'oaths of office'
are there to remind any new members of these capitalist governments that
they are there to represent the status quo, which of course is capitalist,
and to bind them securely to this. This means that if a proposal for change
is not in the interests of the whole of the capitalist class or at least
a majority of the capitalist class - as their representatives see it -
then the change or reform will not take place. In this way capitalist
political structures are purposely developed to filter out, water down,
or sideline any reforms not in the interests of capitalist accumulation.
In capitalist countries
with a second tier of legislation, such as a separate Senate, Upper House
or House of Lords, there is a double filter to ensure that reforms harmful
to the capitalists' interests are blocked. And as noted, behind and surrounding
these important but subordinate legislative 'talking shops', lies the
real power of the state and the organised capitalist class. These are
its political, economic and social organisations, private clubs or coteries
and its armed bodies of men. The predominant economic interests of the
capitalist class, as we have seen, is to accumulate capital by maximising
the surplus product and realising the surplus value. Any proposed political
or social legislation which detrimentally affects this capital accumulation,
if not defeated, will be and has been, modified beyond all recognition,
made a voluntary condition, subverted, or reversed as soon as possible.
This is precisely why most of the negative effects and horrors of the
capitalist mode of production and exchange are still with us today as
they were with our grandparents generation - only perhaps more so in new
areas such as nuclear and chemical emissions.
Yet because some changes
and reforms do take place with regularity and because a constitutional
process of change exists, the illusion is created that it would be possible
to transform the many negative effects of capital by a process of reform.
But as we have seen, even in cases of extreme inhumanity, it is not. The
changes and reforms which do occur are only those which are in the main
favourable to capital, but these do serve to sustain the illusion that
other forms of change are possible. And the illusion can last for long
periods. It is an illusion which serves in non-crisis periods to keep
most anti-capitalist oppositional energies and thoughts away from anything
but 'legal' means of opposition. Among those most prone to the illusion
that reform is possible are many who engage in new campaigns on single
issues. This is understandable, for on the surface it seems easier to
promote change on one issue and since for new issues there is no long
history of failure, it seems a possibility. But 'on the surface' is precisely
how we are supposed to view it, for below the surface the matter looks
somewhat different as we have seen in the case of Slavery and Poverty.
In a Capitalist
crisis reforms are preferred to revolution.
Pressure for substantial
capitalist reform in America and Europe came from the effects of the economic
downturn and political crisis between 1918 and 1939. A profound capitalist
economic crisis usually calls forth a general questioning of the capitalist
system and the period between the two world wars of 1914-18 and 1939-45
was no exception. Experience of this inter-war period of revolutionary
attempts and challenges to the rule of the capitalist system, convinced
enough of the capitalist class, their representatives and their supporters
among the middle-classes in the west to modify some of the effects of
the capitalist system. The realisation dawned upon the thinking members
of this class, that in a crisis situation, if the capitalist class did
not give the workers some reforms, the workers might just give the capitalists
- revolution.
The results in the
western capitalist democracies of Europe and America were reforms aimed
at providing some form of state assistance. A 'new deal' in America, an
embryonic 'welfare state' in Britain, rearmament-led full employment in
National Socialist (Nazi) Germany, paltry social and sickness insurance
in France, unemployment insurance and an eight hour day in Italy, were
the types of reforms implemented. These concessions - in most cases motivated
by fear of workers' rebellion rather than compassion for their plight
- meant that an additional part of the surplus value created by the working
class would be taken from the capitalist concerns by the state in the
form of extra taxation. This levy, together with insurance contributions
taken from the wages of the workers themselves, would provide a fund to
be used in the various ways already mentioned. As noted elsewhere, these
reforms were developed further after the Second World War, and became
among some of the most far reaching ever achieved by and for working people
under the rule of the capitalist class. For a considerable period of time
a majority of the capitalist class continued to consider these reforms
useful to their system. Yet after only several decades every one has been
reduced or is under attack. In Britain, for example, health, education,
unemployment benefit and pensions have all suffered reductions and will
continue to do so. What has happened to them reveals the partial and limited
nature of all types of reforms obtained under the capitalist social and
economic system. The process was broadly as follows.
The physical destruction
of machinery, plant, buildings and infrastructure, caused by the Second
World War, created the conditions for a short-lived boom period for British
and European Capital. Making good the losses of bombed out towns and industry,
and taking a ride on the back of huge American loans to Europe (the Marshall
Plan), the capitalist class in Britain and Europe had a period of rapid
capital accumulation and good profits. So these reforms, funded by relatively
high company taxes, were met with grudging acceptance. Yet by 1960 the
boom was almost over for Britain. International capitalist competition
was again in full swing and the rate of profit falling. High taxes and
high wages were an obvious target of resentment by the capitalist class.
In support of them the British Government in the 1960's created various
schemes (productivity deals, pay pauses, wage freezes, ceilings etc.)
to prop up rates of profit and control wage increases. Most of these policies,
however, dealt only with symptoms and not with underlying causes and therefore
could only yield marginal and temporary results.
The trend of reductions
in the rate of profit continued. Although production had been rising,
so too had wages and taxes. British capitalists, (particularly the finance
capitalists. had been loathe to invest in new technology and so British
industrial production began to lose out in competition with foreign industry.
One result was a steady outflow of capital from Britain from about 1967.
Capital began to be moved out of the less profitable sectors and into
more profitable ones. More often than not these sectors were outside Britain,
and finance often remained 'offshore' in low tax or tax-free havens. In
this way the capitalist class had begun to switch its investment decisions
away from traditional areas in order to reduce taxation and retain more
of the surplus created by the workers they employed. However, before long
the reforms granted in the late 1940's and 1950's were being attacked
directly
A further set of interesting,
but short-lived reforms in the post-2nd World War period was in relationship
to government economic policies. Under the influence of Keynes western
governments increasingly borrowed from private capitalists, not merely
to fund its own activities prior to raising taxes, which was usual, but
also to initiate and promote large-scale economic activity, which was
relatively new. The result was a substantial 'public services' and 'public
ownership' (or nationalisation) aspect of post-war capitalist rule. With
these major reforms most capitalists faced fewer risks. The government
guaranteed repayment of their capital plus sufficient interest, and government
funded economic activity created employment for surplus workers. In turn
the purchasing power of these state employed workers created 'guaranteed'
opportunities for other capitalists to provide them with goods and services.
On the surface, and
in the short term, this reform of capitalism seemed to offer solutions
to the needs of workers and capitalists in the advanced industrial countries.
The state took on the responsibility for creating full employment and
for cushioning the effect of unemployment, industrial accidents, bad housing,
lack of pensions, poor education and ill health. The capitalist class
was guaranteed profits from industrial and commercial investment, or through
loans to government and the workers were guaranteed jobs or unemployment
benefit. But as noted the situation did not last for long due to the increased
competition and the reducing rate of profit.
As we have seen in
chapter 9 there are only two basic ways for the capitalists to increase
the rate of surplus value and thus the potential rate of profit. One is
to increase machinery together with productive efficiency and intensity
of labour and thus reduce the time workers spend on the labour necessary
to cover their wages etc. This of course creates redundancies and unemployment.
The other is to lengthen the working day. Since overtly lengthening the
official working day would appear as a serious retrograde measure, and
provoke widespread opposition, it was a campaign to increase the efficiency
and intensity of labour which was eventually undertaken.
In Britain in 1973
the capitalist campaign for regaining more of the surplus value took on
a new dimension. A Conservative government led by Margaret Thatcher, used
its parliamentary majority and the machinery of the capitalist state to
destroy the organised trade union movement in order to remove resistance
to increases in efficiency, intensity and to the lowering of wages. With
weak unions there was also less resistance to factory closures, and redundancies.
The many campaigns of employers and government against the unions culminated
in the miners' strikes of 1974 and 1984, the latter for all practical
purposes finishing off any substantial resistance of the British working
class to the new capitalist reality. The Conservative representatives
of capital also used its Parliamentary majority to begin to dismantle
the earlier expensive welfare reforms in order to be able to reduce the
level of taxation to industrial and finance capital. Both parts of this
attack enabled the capitalist class in Britain to claw back, and hold
onto, a greater share of the surplus value created by the working classes.
Lower wages, greater
efficiency as well as cheaper food, meant a greater part of the working
day was given over to producing surplus production. Fewer taxes also meant
the capitalists could hold on to more of the value of increased surplus
production after it had been sold. As we have seen in the previous chapter,
under the heading of poverty and wealth, this period saw a massive increase
in the wealth of the capitalist class in Britain. The results of this
economic and political process, from the standpoint of the post-war welfare
reforms, was a rapid rise in the numbers unemployed and an increase in
the duration of unemployment, together with relatively lower wage rates
for those remaining in work. With lower taxes from profits and fewer workers
paying taxes and National Insurance contributions, the burden of universal
welfare provision, fell upon fewer shoulders and on a relatively smaller
government budget.
This was the economic
reality underlying the Tory attacks upon the Welfare State in Britain
(and incidentally) the Republican reductions in state expenditure in America.
Because the political representatives of capital had relieved the capitalists
of some tax burdens, they needed to reduce state expenditure, in order
to balance expenditure with the reduced income. A spin-off to this policy
was the decision to privatise as many state functions as possible. This
simultaneously reduced state expenditure and enriched private capitalists.
They were allowed to buy utilities such as water, gas, telephones and
electricity cheaply and put prices up by virtue of their monopoly position.
Since this occurred in Britain such privatisations have become a global
pursuit promoted by the representatives of global capital in the I.M.F.,
the World Bank and the World Trade Organisation.
We should recall that
under the offensive of capital in the 1970's trade unionised workers were
frequently told to be 'realistic' in terms of what they could expect from
the capitalist production process. By the year 2000, practically everyone
was being told the same message - pensioners, single-parents, school-leavers,
low-paid workers and the word was spread world-wide. Let us make it clear
what such statements meant and continue to mean. They mean working people
should realistically expect the capitalist class to share as little of
the surplus value created by the working people as they possibly can.
We have seen in chapter 9 just how large the surplus value can be in each
country. Twenty-first century economic and political realism, in this
capitalistic sense, means that capitalists and their supporters, will
be allowed to get what they think is an adequate share of the surplus
value so that they will continue to invest. Workers, according to this
new global realism should work long, hard and for as little as possible.
Nor should we realistically expect any serious reform useful to working
people, to environmental protection, to animal rights or pollution, to
health-care or consumer rights, for these have cost implications.
Being realistic under
capitalist rule means passively accepting extreme inequalities and environmental
destruction. Not only will there be no new reforms benefiting the working
class as a whole, but on the contrary the pattern established now is to
continue reducing the existing ones. A prime example of this is again
in relationship to pensions. Because life expectancy has risen to 80 years
and because fewer people are working, the pension fund income is insufficient
to meet the outgoing costs. Instead of discussing reforms to increase
employment, so that more can contribute, or setting aside more of the
massive amount of surplus value obtained by the government and already
created by the working people; instead of asking citizens if they would
prefer reductions in armaments spending or extra taxes on capitalist production,
pro-capitalists talk only of reducing pensions or forcing people to contribute
even more from their already low wages toward their future pensions.
So it should be clear,
at least to those who want to see, that only in periods of serious crisis
and mass working-class activity, when working people forcibly press their
demands for a better life, can the capitalist class be pressured to grant
some reforms in an attempt to stave off revolution. Such temporary successes
also serve to support the illusion that reforms can work, that reformist
activity can bring lasting results. During such periods of working class
activity organisations are created or where they have already been created,
they can be given a new lease of life. Groups of employees and 'officials'
within these workers' organisations become accustomed to, and come to
rely upon, the 'reformist' method of working. They too then develop a
vested interest to believe in the reformist method, for these reformist
organisations pay their often bloated salaries. In this way they act as
leading advocates, within the working class and anti-capitalist movement,
of this method of struggle, long after it has served its purpose. They
point to the partial and temporary gains made against the interests of
capital and to those made in the long-term interests of capital and try
to persuade us that reformism can work and is the more sensible and realistic
path. But it is not.
It should also be
clear that apart from periods of potential revolutionary crisis, most,
if not all, of the achieved reforms, were in the interests of the Capitalists
themselves. Let us note just a few more in passing. For example; public
health reforms were important to the capitalists because airborne disease
easily crossed class barriers and threatened them also. A 'healthy' work
force could also work for longer and more intensely and thus produce more
goods and services, with potentially more profits, than an undernourished
one. A diseased or deficient working class was a handicap in a capitalist
war, for they were, and are, the bulk of those thrown into any front line
battle. Later, the establishment of unemployment benefit reforms kept
workers alive during times when factories closed, so they were fit enough
to return to work when any capitalists decided profits could be made from
them again. Educational reforms were necessary as capitalist production
techniques developed and manufacture and distribution required a more
literate and numerate labour force. Nothing could make this last point
clearer, for example, than the speech to Parliament made by the Quaker
Radical, W.E. Forster in 1870. In it he informed the Members of Parliament
that;
"Upon the speedy
provision of elementary education depends our industrial prosperity. It
is of no use trying to give technical teaching to artisans without elementary
education; uneducated labourers - and many of our labourers are utterly
uneducated - are for the most part, unskilled labourers and if we leave
our work-folk any longer unskilled notwithstanding their strong sinews
and determined energy, they will become over-matched in the competition
of the world." (Speech by W.E. Forster in the House of Commons February
1870. In 'Educational Documents. J.S Maclure. Pub. Methuen, page 104.)
Under the new conditions
of the technical advancement of the means of production in the 19th century
capitalists needed technically literate workers to compete in the capitalist
world market and this is why free state education for all was introduced.
Reforms, such as state pension and sickness insurance schemes, served
to remove some of the burden of the old and the sick from the capitalist
state by compelling them to contribute during their working life toward
their own pensions and sickness benefits. If the history of the many struggles
for anti-capitalist reforms is studied it will become clear that, as already
stated, major reforms were never granted by the representatives of the
Capitalists, until they were clearly seen to be in the immediate or long-term
interests of the Capitalist class. The problem is that most people rarely
have the time for such study.
Another problem of
reformist tinkering with the capitalist system, from the standpoint of
the working class, is that many of these partial or temporary reforms
can make the over-all situation worse for workers. Reforms such as family
income supplements, mean that employers can keep most wages lower than
the average needed to keep workers and their families fed and housed.
Working people can become trapped in the benefits system and subject to
its bureaucratic surveillance. Such supplementary benefits (paid partly
out of contributions by those actually working) represent a subsidy toward
the employers profits and undermine existing wage levels. Housing benefits
act in the same way and more often than not also end up making private
landlords richer.
All this does not
mean to say that working people should give up the day to day struggle
against the capitalist class. Resisting the intensity of exploitation
by demanding changes in wages and conditions is important, but it should
always be borne in mind that, based upon experience, reforms are more
often than not limited, divisive and as we shall see often reactionary.
The Left Parties
of reform.
So powerful was the
illusion that capitalism could be substantially reformed that many anti-capitalists,
calling themselves socialist thought, like the Chartists before them,
that the capitalist system could be modified sufficiently by getting enough
of them into the legislative forum of any capitalist state. Once there
these 'socialists' would be able to pass laws not only to tone down the
level of exploitation of the capitalist class but to progressively do
away with that exploitation altogether. Their failure, as with the single
issue reformers, was to see only the legislative trappings of power and
not the real sources of power. This led to the mistaken belief that something
they called socialism or social democracy could be attained through legislation
created in Parliaments, Assemblies or Congresses. There was a double illusion
involved in this perspective. The first was as already stated; the illusion
that reforms seriously curbing the interests of the capitalists class
could be realistically achieved and maintained. We have seen that this
was not possible even in the richest and most democratic capitalist countries
of the world. The second was that the legislative forums of the capitalist
state (Parliaments, Assemblies, Houses of Representatives etc.), including
the laws they pass, were the absolute power in any capitalist state. This
is simply not the case.
Anti-capitalists need
to understand that the absolute power under the rule of capital is the
combined capitalist class and their armed bodies of loyal men. Such armed
forces can and will be used to suspend or dissolve political and legal
forums and arrest, imprison or exile any recalcitrant members if the capitalist
class feel their economic rule is sufficiently threatened. Emergency powers
can be quickly taken during which laws will be ignored, suspended, altered
or rescinded if they are felt to inhibit the perceived needs of the capitalist
class or its political and military representatives. This is true also
with regard to international law and international forms of organisation.
Those who think that national, international law or multilateral agreements,
however solemnly entered into by sovereign capitalist states, are meant
to bind those states or restrain actions in pursuit of their respective
economic interests, is certainly displaying a high degree of naiveté.
It is the combined
resources of this class and its representatives which exert the real power
and these resources are many. For as a class it collectively owns and
controls the means of production of essential commodities (factories,
agricultural land and machinery); the production of the means of production
(the firms that design and construct factories and the machines based
in them); the means of distribution (warehouses, aircraft, ships, trains,
lorries etc.) and the means of circulation (money, finance, credit etc.).
Any or all of these resources can be restricted, closed down or cut off
at any time with very little effort. In most instances this class also
has absolute influence and control of the means of repression (police,
judiciary, army, navy and airforce, prison services etc.); and the officials
and offices of state who can co-ordinate this power and efforts of that
class. These are the component parts of that extensive network of real
power which the capitalist class normally wields. Compared with these
real sources of power, Parliaments, Congresses, Chambers of Deputies,
Assemblies etc., are just elaborate talking shops - useful, to the capitalist
class, but not essential.
The failure to understand
the real sources of power of the capitalist class led to the above noted
ideology of gradually transforming capitalist relations by means of mass
'left' reformist or 'socialist' parties. Perhaps the largest and most
notable of such left political groupings was in Germany in the 1900's.
Rosa Luxemburg was a member of the Social Democratic Party and she made
a comprehensive rebuttal of this reformist line of thinking. She noted
that;
"The theory of
the gradual introduction of socialism proposes a progressive reform of
capitalist property and the capitalist state in the direction of socialism.
But in consequence of the objective laws of existing society, one and
the other develop in precisely the opposite direction. The process of
production is increasingly socialised and state intervention, the control
of the state over the process of production, is extended. But at the same
time, private property becomes more and more the form of open capitalist
exploitation of the labour of others and state control is penetrated with
the exclusive interests of the ruling class. The state, that is to say,
the political organisation of capitalism and the property relations, that
is to say, the juridical organisation of capitalism, become more capitalist
and not more socialist,..." (Rosa Luxemburg. 'Reform or Revolution.'
in 'Rosa Luxemburg Speaks.' Pub. Pathfinder, page 83.)
The socialisation
of production has increased even further since Rosa Luxemburg wrote those
words. It would be a difficult to find anything in modern society which
was not the product of hundreds, if not thousands, of people each making
a small contribution to either the raw material of a commodity or its
manufacture, packaging, transport and sale. All production, save perhaps
the rare isolated craftsperson who produces or collects their own raw
materials, makes their own tools, creates and produces their own designs
and sells them in their own shop, is socialised production. But, as we
have seen, the benefits of that socialised production in the form of surplus
value fall into the hands of the capitalist class who (as Rosa Luxemburg
says) penetrate the state with their exclusive interests. Her point was
clearly made but the next was even stronger and more crucial to the issue
of trying to reform capitalist relations. She went on to say;
"No law obliges
the proletariat to submit itself to the yoke of capitalism. Poverty, the
lack of means of production, obliges the proletariat to submit itself
to the yoke of capitalism. And no law in the world can give to the proletariat
the means of production while it remains in the framework of bourgeois
society, for not laws but economic development have torn the means of
production from the producers' possession. The phenomenon of capitalist
exploitation does not rest on a legal disposition, but on the purely economic
fact that labour power plays in this exploitation the role of merchandise
possessing among other characteristics, the agreeable quality of producing
value - more than the value it consumes in the form of the labourer's
means of subsistence. In short, the fundamental relations of the domination
of the capitalist class cannot be transformed by means of legislative
reforms, on the basis of capitalist society, because these relations have
not been introduced by bourgeois laws, nor have they received the form
of such laws." (ibid. page 113/114)
It must be said, however,
that despite the accuracy and power of Rosa Luxemburg's analysis, it did
not sway the leadership of the German Social Democratic Party. They ensured
that the party continued on its reformist path. Rosa was finally silenced
in the midst of a revolutionary uprising of workers in Berlin in 1919.
She and her anti-capitalist colleague, Karl Liebknecht, were murdered
on the orders of a representative of the German capitalist state. Arrest
and trial was the correct procedure according to German law at the time
but, as already indicated, capitalist respect for their own laws is regularly
suspended when the interests of capital are at stake. With the defeat
of that uprising many socialists turned once again to the 'legal' and
ultimately sterile reformist path The success of 'left' reformism in diverting
a large section of the working class from revolutionary struggle was also
due to the fact that it served to unite two quite distinct tendencies.
First, those who genuinely wished to see an end to capitalist exploitation
in all its forms but at the same time were under the illusion that real
power lay with capitals' legislative bodies. Second, those who merely
wished also to improve their own lot under the capitalist system but could
not countenance doing so directly by becoming capitalists or joining an
openly capitalist party.
Left reformist political
parties could, and did, appeal to both these aspirations within the anti-capitalist
movement but in actual fact they could only fulfil the latter. Hence the
failure of many causes and the phenomena of well-paid, smooth operating,
ex-worker representatives who stride the corridors of power and largely
ignore the problems they were elected to solve. A consequence of this
protracted 'left' reformist process is that large numbers of the working
classes, in all the advanced capitalist countries, no longer share the
illusions (and delusions) of the reformist politicians, and no longer
bother to turn out to vote in local or national elections. A further result
is that the so-called left socialist parties are all in various stages
of decline or redefinition. They now have to rely upon the efforts and
wavering vote of the large middle-class which has developed in the advanced
countries, rather than the alienated and disillusioned working class.
In Britain, for example,
the Labour Party was 'the' left political party of reform. From its inception
it promised to substantially reform capital to make it far more responsive
to the interests of the working class. It took the money of generations
of working people through their direct subscriptions to the Party and
their indirect subscriptions via the Trade Unions. In America the Democratic
Party flirted with a similar role but never as blatantly and is now practically
indistinguishable from the Republican Party. In Britain, it must be said,
the original promise of the Labour politicians was never realistically
fulfilled, but the Labour Party no longer promises anything of the sort.
The new economic situation for the British capitalist class means no new
reforms are possible for the benefit the whole working class and this
is exactly what New Labour has understood. Support for the existence of
an unfettered profit-making capitalist class and support for mechanisms
which protect capital accumulation is now the economic background of Labour
attacks upon UK state provision, welfare reductions in the USA and the
restructuring of the European Capitalist states within the European Economic
Community. The watering down of the Beveredge provisions by Tories in
Britain was not simply the result of the politics of inhuman Toryism,
which is how it was often depicted within much of the traditional anti-capitalist
'left'. This belief led only to the mistaken hope that more humane politicians
might reverse this destruction.
In reality, as has
already been stated, the entire political campaign of 'left' and 'right'
reformists, was merely the pursuit of the economic interests of the capitalist
class in a period of reducing profits. The acceptance of a 'partnership'
with Capital is why previous Labour Governments, under Harold Wilson and
James Callaghan, continued with many Tory policies and introduced their
own policy of cuts and wage restraints. This should have come as no surprise,
for the Labour Party in Britain has been, since its inception, the vehicle
which gave political expression to the struggle for (and granting of)
limited reforms under capitalism. The currents which led to the original
formation of the Labour Party came from disaffected Tories, Liberals,
'respectable' trade union leaders and only a sprinkling of anti-capitalists.
The Labour Party has always been 'her Majesty's loyal opposition' and
has always wished to remain so. In this context loyalty to the House of
Windsor is synonymous with loyalty to capital. Any past anti-capitalist
window dressing, such as Clause 4 of the Labour Party Constitution, was
only a flimsy tinsel wrapping meant to attract working people's vote and
to disguise the fact that the Labour Party was merely a new form of liberal
capitalist political grouping.
For the demise of
the once powerful Liberal Party in Britain occurred because many liberal
representatives of capital simply left it and either joined the Tories
or the Labour party. Once sufficient 'liberal' politicians and professionals
had joined Labour, Clause 4 became something of an embarrassment so they
conducted a long fight to remove it. The fight to remove this clause only
took so long because a number of die-hard anti-capitalist reformists in
the Labour Party, such as many in the 1980's Campaign Group, mistakenly
believed it could be implemented and that its implementation could lead
to something called socialism. Both sides of this internal (left/right)
Labour Party struggle kept alive the illusion that socialistic reforms
could and would be implemented via parliament.
However, as indicated
above, even the really massive reform programme of the 1945 Labour Government,
was not a divorce of Labour from Capital, but a continued partnership
with capital under new conditions. The eighty three parliamentary bills
presented by the Attlee government of 1945, as with the others that followed,
were not aimed at a radical alteration of capitalist relations but a reform
of some of its outdated features in the interests of the capitalist class.
Two decades later the pipe-wielding oratory of Harold Wilson, who spoke
of 'taxing the rich until the pips squeaked', was no more than a theatrical
flourish, to maintain the illusion of his political independence from
capitalists' interests. When finance capitalists, based in Zurich, made
their intentions known, it was Wilson who squeakingly bowed down in submissive
acceptance.
Undoubtedly the Labour
Party, in political power, was less directly vindictive and brutal than
the subsequent Tory government of Thatcher and Major, but the essential
direction remained the same, as it continued to be under Blair. Blairite
'New Labour' made it quite clear that its entire leadership remained committed
to a solid partnership with Capital. Although Tony Blair and his tarnished
cronies wrongly assert that partnership with capital is a new realism
for the Labour Party he and his supporters in the Labour Party nonetheless
reaffirm the depth of that commitment. So much so that the leadership
feel they cannot promise any welfare expenditure without making it dependent
upon an expansion of trade and business. But an expansion of industry
and business under the capitalist system cannot take place without further
investment and the promise of good profits. So the British Labour government,
as with all other so-called 'left' reformist governments in the advanced
countries, committed as they are to a partnership with capital, must therefore
first help the capitalists to achieve profits. This means they must create
and maintain a low-waged, low-taxed economic environment, in other words
one of poverty and deprivation for working people. And they must do this
before they can do anything else.
One of the major ways
political parties can help capitalists is to ease their tax burden and
give them grants to set up or expand their businesses. This they continue
to do in very large amounts, as they have done since before the war. But
by doing this they further reduce the amount of government money available
for other purposes such as education and health. However, unlike the post-war
situation of 1945, no matter how many tax breaks they give or substantial
grants they make available, the conditions for a general and continued
expansion of real capital, as against fictitious, no longer exists. There
simply has not been the wholesale destruction of plant and infrastructure
as there was after the Second World War nor anything like severe under-production
which equates with it. Indeed, as we read in chapter 9, there is at the
beginning of the 21st century a situation of considerable capitalist over-production
and surplus industrial capacity for many basic and luxury commodities.
Under the current profit-based capitalist system there is clearly not
too little production but too much. So a further boom is out of the question
and without a boom together with the accompanying high profits, there
cannot even be temporary or partial reforms.
The experience of
this 'left' reformist trend in Britain, after the Second World War, is
significant for the workers in all capitalist countries. This is not only
because Britain was one of the first countries to develop the capitalist
system fully, but primarily because the advantages this brought about
enabled it to create a world empire. By exploiting the native peoples
and resources in many areas of the world, British capital made extraordinary
high profits and under the previously noted pressure was able, for a period,
to grant some temporary reforms. The experience of the British working
class over the past 100 years represents, therefore, a social and political
experiment in reformist methods of struggle under very favourable conditions.
The defeats and reversals in fortune of the British working class in the
1920's to 1930's and between the 1970's and 1980's, organised as they
are in rich and powerful trade unions with statutory political rights,
demonstrates conclusively that anti-capitalist reformist methods of struggle
cannot gain, and maintain, decent living conditions for a majority of
its workers for any substantial length of time.
This entire experience
clearly demonstrates that under the most privileged and wealthy Capitalist
class there cannot be anything other than short-term reformist gains.
If this is the case for British workers what chance do other workers have
in the other capitalist countries of Europe or in the rest of the world?
Can the workers in South Africa or South America, under capitalist rule,
look forward to reforms which bring back dignity and well being for the
majority so long denied them by Imperial oppression? Can the workers in
the newly emerging capitalist dominated countries of Asia expect decent
wages and living standards for their lifetime? We don't need to wait and
see what happens, the answer is clear. The same question and the same
answer applies to every other capitalist dominated nation whether of the
so-called first, second or third world.
The global effect
of reforms won in the advanced countries.
We have noted that
the foundation of the earlier noted welfare reforms in the advanced countries
was based upon the temporary political fear of revolution and the continued
economic exploitation of the non-industrialised countries of what then
became known as the third world. So an additional prop holding up this
'new deal' in post-war Europe and America was the continued existence
of low raw material prices, cheap third world labour and thus sufficient
profitability to persuade capitalists to continue to invest in commerce
and production. However, with the re-emergence of rival capitalists, particularly
Germany and Japan, and the pressure to use a larger proportion of capital
in machinery the expected rate of profit soon began to fall in a number
of industrialised countries during the 1960's and onwards. In addition
to this, developing countries throwing off the forced controls of colonialism
were beginning to demand increased payments for raw materials. Newly arising
elites and workers, in the ex-colonies, began to claim a greater share
in the annual surplus value created in their countries. It was a share
they could not get without organising and leading a struggle for a level
of political independence. This 'third-world' demand for increased payment
for raw materials put a further squeeze on profit margins for the advanced
countries and resulted in pressure for the above noted erosion of previously
granted reforms in the 1960's, 1970's and 1980's.
From all we have considered
in previous chapters it is clearly the case that in a system based upon
global capital, reforms benefiting workers in one country can only be
at the expense of workers in another. Reforms such as above-average pay,
sufficient unemployment benefits, decent housing, reasonable pensions,
quality health care, under capitalist rule, could only be established
and continued on the basis of high profits for the capitalists - otherwise
they simply won't invest or re-invest in production. Such reforms which
are temporarily gained in the advanced capitalist countries, therefore,
require proportionally low costs for raw materials and labour. Low wages
and poor welfare conditions for foreign workers are thus the inevitable
result. This has to be so under the advanced capitalist system, otherwise
there would not be sufficient surplus value to support the now numerous
unproductive classes. Also, as we have seen, this annual surplus has to
support the immense social weight of a large middle class as well as the
capitalist class. For this reason working people, of one country or another,
must be paid less if workers in other countries are to get more. Due to
20th century increases in production techniques, (automation, computers,
intensive production and assembly methods) the amount of annual surplus
value is already close to its achievable limit in the advanced capitalist
countries. The same type of technical process has also cheapened the cost
of necessary commodities for working people and thus shortened (close
to the limit), the period for necessary labour. Very little more can be
done in this direction.
This process has gone
so far that capitalist firms in many industries are already unable to
utilise their full productive capability and must routinely function well
below total capacity. They cannot fully utilise their present level of
technology, so in general, any further advances in technique would also
be under-used. This means that less pay, longer hours and increased intensity
of working for the global work-force together with less taxes are the
only means available to increase the amount of surplus value and thus
profits going to the capitalist class and its supporters. This is precisely
why industrial capital is constantly looking for locations for production
in countries with working people whose circumstances make them willing
to work long hours for low pay and whose governments demand very little
tax. It is also the explanation of why capitalist production is increasingly
being moved to India, Asia, Eastern bloc countries and China.
So, on closer examination,
we find that frequently the other side of the coin to the reformist maintaining
of even low-level welfare benefits for workers in the advanced countries
was, and is, the implicit or explicit support of the capitalist classes
and their representatives, for non-democratic regimes in third-world countries.
These non-democratic, often military, regimes, trained, armed and funded
by western democracies are the basis for keeping 'foreign' labour and
raw materials cheap. And;
"Today, authoritarian
and repressive regimes in many successfully industrialising Third World
countries perform a function in relation to the world capitalist centres
comparable with that of the feudal overlords and slave owners of a century
ago: they make available to the overseas investor both a docile, stable
and unorganised work-force and the monopolistic rights to the use of land
and natural resources; it is their political presence and their political
domination which permit the capitalist production of commodities in the
overseas countries,...."(Ankie M.M. Hoogvelt. 'The Third World in
Global Development.' Pub. Macmillan. Page 178)
Under the domination
of the capitalist form of production, the freedom of some white workers
in advanced capitalist countries to fly away on holiday each year is at
the expense of keeping black and Asian workers in the poverty and ghettos
of the third world. If these impoverished workers were well paid, under
the present capitalist system, the cost of living in the advanced countries,
would become so high that few western workers would be able to afford
even such mediocre standards of living. In the same way the current ability
of numerous workers in the industrialised countries to purchase automobiles
and expensive consumer goods is at the cost of denying this ability to
millions of workers throughout the rest of the world. Yet, as we have
seen, even these implicitly 'racist' freedoms and reforms in the advanced
countries, are short-lived, as capital moves away from high wage countries
and leaves poverty in its wake. To simply argue for a reformist struggle
to defend the welfare state, or improve it, in the industrial countries,
whilst retaining the system of capital, is to be not only indifferent
to the plight of the poor and oppressed in other countries, but to implicitly
demand they remain poor and oppressed.
Placing reformist
demands on capitalists and their governments in the west for improvements
in social welfare is to invite them to seek to fund these improvements
by using their financial power to further increase the exploitation of
third-world peoples. In the advanced countries, the reformist agenda and
defence of the various welfare states, divorced from a commitment to
overthrow capital, is consequently extremely reactionary. The only
revolutionary aspect of a reformist struggle in the advanced countries
is in promoting the development of the self-activity and organisation
of the anti-capitalist movement and the working class within that movement.
Where such struggles do take place it should not be overlooked that the
programme of many of these struggles is essentially ultraconservative,
because the content of such struggles is (more often than not) the pursuit
of sectional interests irrespective of the interests of other workers.
The reformist programme
of the 'official' trade union and labour movements of the advanced countries
advocated by the leadership of these organisations has rarely ever been
seriously anti-capitalist or anything more than an expression of reactionary
and opportunist trends within the working class anti-capitalist movement.
This explains why the trade union method of struggle in the advanced countries
has proved in practice to be so moribund. It has led in the end to the
trade union movement being unable to defend its own sectional interests,
let alone defend or extend broad working class social reforms. Once attacked
by a resolute government, as the British trade union movement was by the
Thatcher government, in the 1980's, the previous period of sectional selfish
struggles had all but ensured the political and social context for defeat
of workers section by section. The original experience of the working
class, summed up in the slogan of 'united we stand divided we fall', has
been repeatedly overlooked and marginalised particularly by the short
experience of the immediate post-war period. The relative successes in
the immediate post-war struggle, office by office, factory by factory,
building site by building site, shipyard by shipyard, to advance wages
and conditions was quickly put into reverse as defeats occurred office
by office, factory by factory, building site by building site.
Although the dock-workers,
engineers, car-workers, building workers, shipbuilding workers and steel
workers etc., tried in the 1970s and 80s, to extend support for their
struggles once it was their turn to fight, in essence each group inherited
a legacy of standing alone. Other industries and their workers, apart
from some individuals within them, simply watched and did little more
than cheer or jeer. When it came to the 1984 Miners Strike, apart from
the valiant efforts of the striking miners and their support groups, the
mine workers essentially fought alone. The miners were in receipt of some
of the most brutal treatment ever dealt out to British workers since before
the war, yet no other industry or widespread industry-based group of workers
felt able to down tools to protest and seriously support them. If ever
proof was needed that working people if divided will be defeated, then
it is in the history of the British working class from 1950-1990. From
having practically every partial reform that could be gained from a Capitalist
class in retreat in 1949, it had lost practically all of them by 1990
to a capitalist class once more on the offensive.
Reforms in the
'developing' countries.
The terms 'developing
countries', along with 'third-world' and 'less developed countries', are
words which denote a western capitalist prejudice. What is really meant
by these terms is the existence of places and people who have not yet
been fully exploited by capitalist industry and commerce. In modern usage
these phrases do not mean there is a lack of culture or economic activity
in these countries. What is usually signified is that they are underdeveloped
capitalistically. The terms serve to denote that vast tracts of land remain
under-utilised by advanced capital, large mineral resources or natural
features are under-exploited for profit; roads and other infrastructures
are insufficiently developed for the requirements of capital. Nevertheless,
capital remains poised and on the look out to make good that 'under-development'
once sufficient profitable incentive exists.
We have dealt briefly
with the effects of 'aid' to such countries in chapter 10. We shall consider
it here again, from a different angle in order to explain a further illusion
of reforms. Reforms originating in the 'advanced' countries under such
titles as 'development aid' have been hailed as providing much needed
help for the third world. On closer examination they have been shown to
benefit the originators rather than the recipients. With regard to the
United Nations' Food and Agriculture Organisation (FAO) it has been calculated
that countries donating to the funds of this organisation get back more
than they put in.
"For every million
lire the Italians allocate to FAO projects, they get 16 million back in
the form of salaries and contracts. The ratio for Holland is 1:5; for
Belgium 1:7; the French , on the other hand, have to be satisfied with
more modest returns - for each franc they contribute they only get two
back. The British do much better....For every pound the UK. allocates
to FAO, British business interests get seven pounds back" (Marcus
Linear. Zapping the Third World. Pub. Pluto Press, page 34/35.)
The advanced countries,
in setting up these international reformist organisations were, on the
surface, supposed to be ending the extreme exploitation of third-world
countries by the advanced capitalist countries. Yet we can see that in
fact their slick operations benefit the advanced countries who at a minimum
get double their money back. So this reform allegedly intended to help
the developing world became a nice little earner for the capitalists of
the developed world. Put 5 million francs in and get 10 million back;
put ten million pounds sterling in and get 70 millions sterling back;
put 1 million lire in and get sixteen million back. Not bad this and all
with the pretence of helping the poor backward people. And where does
this magical return come from? It comes, of course, from the surplus product
and surplus value of the workers of the developing countries! How does
it get back to the advanced countries? By inflated payments for medicines,
swollen consultancy fees, the magnified costs of road construction, industrial
plants, airfields, military and civilian aircraft, armaments and hydro-electic
dams etc. Even in cases where some benefit does filter down to the poor
of the third world it is also estimated, by the same source, that they
only get 3% of the original sum advanced. Three cents for every dollar;
three pence for every pound; three centimes for every franc etc. Under
capitalism the rich get richer and the poor get poorer - even when the
rich are supposed to be directly helping the poor!
The struggle for reforming
the rule of capital takes place wherever capital dominates human life
and inevitably, where capitalist relations dominate, this struggle goes
wrong. Let us consider another example. The thin strip of land joining
North and South America contains the republic of Panama, the site of the
famous sea going canal which bears its name. The region of Veraguas, in
Panama, in which the village of Los Boquerones was situated had been occupied
by Spain in the period of Spanish Colonialism, but after 'liberation'
ownership had been claimed by the descendants of the Governor of Veraguas.
However, in 1963 after tensions lasting ten years between a new owner
and local villagers, fences were repeatedly torn down and villagers were
subsequently jailed. Eventually a land reform agency stepped into the
dispute intending to sort things out in such a way as to benefit the poor
villagers. The land reform agency bought the land from the new owner and
proposed to divide it into a strip for house building and the rest into
agricultural plots. House plots would be sold to the villagers for $100
per hectare and the farm land was parcelled into ten hectare plots to
be sold for $30. They even made a rule that no villager could buy more
than one plot until everyone had one plot.
On the surface and
from a distance this may seem a sensible and fair solution but not when
the real economic situation is examined. The villagers were poor subsistence
farmers and so did not earn wages or have money stashed away. The plots
were therefore offered at 20 percent down and the rest to be paid over
20 years. Readers will recognise the 'mortgage' system in operation here
and also recognise the pressing need for a regular wage and one high enough
to keep up the mortgage payments. The house plots were too small for the
normal subsistence use of rice, maize and livestock which the villagers
were used to growing. So to obtain the use of land and pay the mortgage,
the villagers would need to earn cash from anything grown on the plots.
The most successful cash crop in that region was sugar cane, however,
it was noted that;
"If sugar cane
is planted, which it already has been, then the size is without question
insufficient....Since in the traditional subsistence economy, the volume
and velocity of money are small, the peasants themselves have quickly
pointed out that few of them have the resources to make even a down payment.
Land purchases will force the campesinos to enter the capitalist economy,
but plot sizes will not enable them to do so advantageously. The people
will be liable for a debt for which they have no resources to pay....The
land (reform) agency has turned out to be not a force for land reform
but only a marketplace intermediary." (Stephen Gudeman. 'The Demise
of a Rural Economy'. Pub. R.K.P, page 25/26)
This
particular government agency used its authority to buy and sell land the
purpose of which was to reform the land tenure system in this region of
Panama. However by using capitalist economic logic it only succeeded in
making the main means of production (the land) into capitalistic means
of production. In doing so the Camposino village workers of Los Boquerones
were priced out of land and/or placed deeply in debt. Most who bought
land were eventually faced with too much debt and before long forced to
sell their ten hectare plots. What the previous owner had failed to do
with hostility, (i.e. move the villagers away), the government reform
agency succeeded in doing by kindness. A misguided reform measure supposed
to benefit them actually ended up dispossessing the majority.
This is not the only
way which attempts to reform the market mechanism of capital have reacted
against those the reforms were intended to help. We have noted earlier
the fact that for a whole period the World Bank considered that the construction
of huge Dams were an important way of bringing cheap electricity and modernisation
to developing countries. In the 1980's the World Bank, after much effort,
was eventually made to realise that its loans to governments were causing
hardship and disruption to poor people who worked the land in regions
which governments wished to develop. Accordingly the World Bank reformed
its policy and insisted that governments receiving loans should ensure
that people who were displaced by projects such as dams would regain at
least their previous standard of living. In 1990 the World Bank made a
loan to India. It was made in order to construct a dam across the river
Narmada and had precisely these 'resettlement conditions' applied to it.
The Indian government accepted the need to reform its procedures to ensure
this and did so. The villagers of Gadher, which would be flooded once
the dam was built, were the intended recipients for this supposedly enlightened
policy reform. And;
"The land purchase
Committee had already found some land it thought the people of Gadher
would like. With some trepidation, a group of men from the village went
with the committee to look it over....What they saw was a pleasant surprise.
The soil was rich, there was water nearby and the previous owners had
planted lots of Banana trees. The officials who had brought them were
anxious make a deal. They explained that the government would build a
school and a health clinic here and put in roads, electricity and a water
pump...Moving day came. The people loaded their belongings onto the government
trucks and climbed aboard. After the convoy had travelled for an hour
or so the trucks stopped.......The first thing they noticed were the corrugated
tin huts, all close together in rows..and as they looked around, it was
the land that stunned them. There were no banana trees , there was no
water; it was a wasteland! They walked around, confused, trying to orient
themselves. They turned to the officials: this isn't the land you showed
us. Oh, yes, came the reply. This is your land. Here are the deeds you
signed." (Catherine Caufield. 'Masters of Illusion' Pub. Pan, page
5/6.)
The Gadher villagers
had been tricked. They were shown one piece of land and trusted the government
officials that they were signing a piece of paper for that land. They
were not. One set of deeds had been substituted for another. Of course
the villagers had recourse to the law to put this injustice right but
like injustices in all capitalist countries it could take years and years
and considerable expense for legal fees. The villagers could not afford
this, and such an action would not of course guarantee that the courts
would take their side against that of the government. Such examples are
merely the tip of an iceberg of such cases. Even reformist aid projects
which are not themselves thoroughly corrupt, as in the above case, are
more often than not inept and counterproductive. In the 1970's one author
on this question noted;
"Abuse of the
environment is taking place to an increasing extent in all tropical continents,
in order to make way for agriculture or cattle breeding on land which
cannot stand the strain of such activities. The ongoing deterioration
of the environment which is the very foundation of these populations'
existence is an ecological disaster, which undermines the future effort
of these people to support themselves in these areas. (Quoted in 'Zapping
the Third World' Marcus Linear. Pub. Pluto Press, page 119.)
Yet the struggle against
western imposed reforms, in those territories which are controlled by
imperialist countries have a serious role to play. As in the case of the
advanced countries, the struggle for some reforms and against others,
can serve to promote the self-activity of the oppressed classes and groups,
and in the third world this struggle can also serve to expose the indigenous
elite's inter-relationship with the capitalist methods of exploiting the
people or the raw materials. Such reformist struggle's can demonstrate
the need to struggle against their own capitalist class and bring about
the realisation of making links with the international anti-capitalist
struggle.
Reforms in a
period of revolution.
As we shall see in
the next chapter, not all crises for the capitalist system of production
result in revolutionary upsurges - but some do! And it is in a period
of revolutionary upheaval that the exception to the general rule of the
limited and reactionary nature of the struggle for reforms in the advanced
capitalist countries can occur. In such cases of internal crisis and social
ferment, very limited reformist objectives and measures - provided they
are supported by large numbers of the oppressed population - can have
revolutionary implications. This is because during revolutionary periods
of crisis, the ruling class is often weak and divided. Its machinery of
state and government is often crippled by internal dissent to such an
extent that it cannot suppress large-scale pressure for the obvious and
needed reforms. It is often the case that the reforms either cannot be
met in the then existing economic and social situation, or more likely,
as we shall also see in the next chapter, will not be allowed by those
desperately clinging to their positions of power and privilege.
Thus, in such situations,
the pursuit of a reform or reforms can propel the masses of ordinary citizens
into the political arena in circumstances which lead their collective
efforts beyond the actual reforms in question. In such conditions pursuit
of seemingly elementary reforms can lead to the challenging of the whole
political and social structure. Examples of this are; the pursuit of simple
reforms to abolish Royal Monopolies, forced loans to the King, and to
allow religious toleration, all of which led ultimately to the English
Civil War. In the American Revolution the colonists started from a position
of only wishing to reform English Custom Duties, Stamp Duties and direct
government from England. It was British obstinacy which finally caused
them to take up revolutionary arms for full independence. In the French
Revolution the mere suggestion of a reform in the voting methods of the
Estates General was enough, in the particular circumstances of 1789, to
lead through many twists and turns, toward a successful revolution. In
Germany in 1848 and again in 1914, the issues leading up to those revolutionary
upsurges were such basic reformist issues as minimum wages, eight hour
shifts, pensions and being spoken to with respect. Similarly, in Russia
during 1917. The main issues leading up to and during that particular
revolutionary ferment were modernisation, an ending of the war, and sufficient
bread and land. In all these cases the reforms could have been granted
at an early stage, but they were not. However, these revolutionary situations
are the only exception to the general rule that anti-capitalist reformist
struggles are moribund and reactionary in the modern era.
Conclusion.
The history of reformist
struggles against the effects of the capitalist system of production has
been one of |