Communism and Postcommunism Theory Practice Problems and collapse The challenges of transition

What is Communism? Ideology and political economy both Wealth and property shared to eliminate exploitation and oppression Political institutions that maintain this system would also be eventually eliminated

Communist Thought: Surplus Value of Labor Karl Marx ( ) Surplus value of labor –Human beings create things of value –Value stays with the object –This is the source of exploitation—that people can unjustly take others’ labor Core of human relations is economic

Communist Thought: Base and Superstructure All human actions flow from relationship between haves and have-nots Base and Superstructure Base: –Means of production (techology) –Relations of production (classes) Superstructure: –All non economic relations in society

Base, Superstructure, and False Consciousness Base drives superstructure How technology and class are constructed affects how we think and what we believe and value False consciousness: superstructure blinds us to the truth of exploitation –Religion is the “opiate” of the mass –Democracy is a “sham”

Marx and Development Economics at the core of human life Therefore history driven by economic change Change in means—change in relations—changes in superstructure Not evolutionary: Episodic, tectonic! Revolution! Dialectic: –Thesis –Antithesis –Synthesis

Marx’s Historical Interpretation Feudalism built upon –Agarianism (means of production) –Serfdom, aristocracy (relations of production) –“divine right” of kings (superstructure) Capitalism built upon –Machinery –Proletariat, bourgeoisie –“democracy,” nationalism

The Inevitable Downfall of Capitalism Feudalism had been overthrown in revolution Inevitable capitalism would be, too Marx sought to explain how –Intense competition –Wealth concentrated into fewer and fewer hands –Wages driven down –Workers alienated from their labor –Consciousness! Realize their conditions and act!

Revolution and Utopia Proletariat would rise up against exploitation Seize means of production and state Revolution would be international Dictatorship of Proletariat: temporary period to smash remnants of old order When successful, state would “whither away” True communism—true equality and cooperation!

Making Communist Revolution Russia: Lenin ( ) China: Mao ( ) Both sought to put Marxist theory into practice Problem: Marx expected revolution where capitalism was most advanced! Not China, Russia? Solution: A “vanguard” party could take the place of a strong proletariat

Communism in Practice Communism comes to power –Russia 1917 –Eastern Europe post World War Two –China 1949 How to built communism in reality? –Marx gave no ideas –Expectation that world revolution would take place –How to create communist institutions?

Communist Party Rule Government and State controlled by communist party Small “vanguard” organization Leading role written into constitution Nomenklatura: politically sensitive jobs must be vetted by party Party becomes vehicle for opportunism (benefits that come from membership)

Institutions of the Party-State Party-State: separation between the two unclear Party more powerful than government Basic party organizations: Party at local level Regional party committees Central Committee: “legislature” of party Politburo: Top party cabinet General Secretary: head of the party

Communist Political Economy Property absorbed by the state Only personal possessions are in private hands Labor also controlled by the state No private employment (or unemployment) Markets eliminated by the state Demand does not drive supply Communist economy as one large firm

Central Planning and Incentives How do you make an economy work without markets and private property? Central planning: State bureaucracy that allocates resources, determining what should be produced, where sold, and for how much Very difficult task—inflexible, limited information Communist economies also limited incentives for hard work, innovation (no individual profit in such action

Societal Institutions Under Communism Suppression of religion as part of “false consciousness” Advanced gender equality (education, work), but many traditional values remained in place Nationalism and ethnic identity downplayed in favor of communist “internationalism”

The Collapse of Communism Why did this system fall apart? New Cold War, 1980s Cost of arms race on Soviet Union Economic stagnation New political leadership (Gorbachev), seeks reform of system Repair, revitalize communism

Glasnost and Perestroika Twin policies of Gorbachev for reform Glasnost –Openness –Encourage people to criticize flaws in system Perestroika –Economic and political reforms Idea that pressure from people and new leaders would help reform system

From Reform to Rout Why did reform not work? Improved relations with West means allowing reform in Eastern Europe East European populations eject communist leaders Glasnost leads to criticism of system itself Party resists reforms Deepening crisis; failed coup in 1991

The Chinese Alternative Much earlier and more dramatic liberalization of the market But political dissent not tolerated 1989 Tiananmen Square: student protests crushed violently Move toward capitalism continues, but without democratization. Wiser move than Soviet Union, or more dangerous in the long run?

Political Institutions in Transition How do we move from communism to democracy? Reorganizing the state and creating a democratic regime –Which electoral institutions? –Executive structures? –Civil rights and liberties?

Evaluating Political Institutions in Transition Eastern Europe has fared well Countries that were once part of the Soviet Union have made less progress Why this difference? Precommunist differences in –Economic development –Civil society –Democratic institutions –Rule of law –Degree of contact with western Europe –Length of communist rule

Economic Institutions in Transition How do we move from communism to capitalism? Privatization: How to get rid of state assets? –Sell to highest bidder? –Give to people? –Voucher privatization? Marketization: How to end central planning? –Shock therapy or gradualism?

Evaluating Economic Transitions Similar to that of political transitions Countries in Eastern Europe have done much better than those that were once part of the Soviet Union Issue of inequality and poverty a concern for all postcommunist countries

Societal Institutions in Transition How will society change after communism? National identity and religion –Re-emergence of nationalism, ethnic/nationalist conflict –Re-emergence of religion, including fundamentalism and new faiths Gender –Elements of equality under old system challenged –Also threatened by changes in social expenditures

Evaluating Societal Transitions Ethnic conflict, created opening for terrorism (Afghanistan) Still, less conflict than many predicted Setbacks for women in some areas but gains in others (fewer women in parliament but more in cabinets)

Future of the Postcommunist World Re-balancing freedom and equality Institutionalizing new practices and values Communist countries becoming more diverse –Some joining advanced democracies –Others heading toward less developed status What will be the historical legacy of communist rule?