On Tue, 17 Dec 1996 [EMAIL PROTECTED] wrote:

> engineering the creation of the "new man." Even it had been able 
> to do so, I think that Marx is right that socialism is a 
> self-creation of the people, not something that is shoved down 
> people's throats by an enlightened elite.
> 
> for socialism from below,
> 

Louis P.: There was no "socialism from below" in Cuba. Furthermore, there
can be no such thing in countries like Cuba, China, Vietnam and Nicaragua.
This slogan can only be meaningful in a country in which the working-class
has developed politically and economically to the point where it can
genuinely become the new ruling-class. This was the formula of the
Communist Manifesto. History played a mean trick on classical Marxists,
however: the countries of Western Europe have been prospering for the past
and the workers are not a powder-keg ready to blow up against oppressive
bourgeois rule. These are issues that we are discussing over on the Spoons
marxism-international list and it is a rich discussion.

On the Guevara question. What follows is the conclusion to a longer piece
on Cuba written in reply to followers of Tony Cliff who had the impudence
to argue that Cuba was not socialist.

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Che Guevara had some of the most interesting insights into the 
problems of socialist construction since the days of Lenin. He is better 
known as a guerrilla fighter, but his essays on planning and other 
economic matters deserve to be better known.

The main importance of Guevara is that he provides an alternative to 
the false dichotomy set up between Stalinist "planning" and the 
implicitly capitalist logic of "market socialism". During our fierce 
debate over "market socialism" on the Marxism list, any number of 
Guevara's statements could have been brought to bear on the 
discussion.

Guevara was a stickler for accounting and controls, as was Lenin. At a 
speech given to a ceremony to winners of socialist emulation awards in 
the Ministry of Industry in October of 1965, he described the 
importance of controls:

"Rigorous controls are needed throughout the entire organizational 
process. These controls begin at the base, in the production unit. They 
require statistics that one can feel confident are exact, as well as good 
habits in using statistical data. It's necessary to know how to use 
statistics. These are not just cold figures--although that's what they are 
for the majority of administrators today, with the exception of output 
figures. On the contrary, these figures must contain within them an 
entire series of secrets that must be unveiled. Learning to interpret 
these secrets is the task of the day.

Controls should also be applied to everything related to inventories in 
a unit or enterprise: the quantity on hand of raw materials, or, let's say, 
of spare parts or finished goods. All this should be accounted for 
precisely and kept up to date. This kind of accounting must never be 
allowed to slip. It is the sole guarantee that we can carry on work with 
minimal chance of interruption, depending on the distance our 
supplies have to travel.

To conduct inventory on a scientific basis, we also have to keep track 
of the stock of basic means of production. For example, we must take 
inventory of all the machinery a factory possesses, so that this too can 
be managed centrally. This would give a clear idea of a machine's 
depreciation--that is, the period of time over which it will wear out, 
the moment at which it should be replaced. We will also find out if a 
piece of machinery is being underutilized and should be moved to 
some other place.

We have to make an increasingly detailed analysis of costs, so that we 
will be able to take advantage of the last particle of human labor that is 
being wasted. Socialism is the rational allocation of human labor.

You can't manage the economy if you can't analyze it, and you can't 
analyze it if there is no accurate data.. And there is no accurate data, 
without a statistical system with people accustomed to collecting data 
and transforming it into numbers."

Guevara had confidence that socialism could be built if the proper 
resources and management were allocated to the task. He believed in 
technology and progress. Like Lenin, he admired many of the 
accounting and management breakthroughs found in the advanced 
capitalist countries.

Lenin was preoccupied with these matters immediately after the birth 
of the new Soviet state and minced no words about the value of strict 
accounting controls. In the "Immediate Tasks of the Soviet 
Government" written in the spring of 1918, Lenin said:

"The state, which for centuries has been an organ for oppression and 
robbery of the people, has left us with a legacy of the people's supreme 
hatred and suspicion of everything that is connected with the state. It 
is very difficult to overcome this, and only a Soviet government can do 
it. Even a Soviet government, however, will require plenty of time and 
enormous perseverance to accomplish it. This 'legacy' is especially 
apparent in the problem of accounting and control--the fundamental 
problem facing the socialist revolution on the morrow of the overthrow 
of the bourgeoisie. A certain amount of time will inevitably pass before 
the people, who feel free for the first time now that the landowners and 
the bourgeoisie have been overthrown, will understand--not from 
books, but from their own, Soviet experience--will understand and feel 
that without comprehensive state accounting and control of the 
production and distribution of goods, the power of the working people, 
the freedom of the working people, cannot be maintained, and that a 
return to the yoke of capitalism is inevitable."

Those with a superficial understanding of Soviet economic history 
might assume that the link between Lenin and Guevara is Stalin. The 
popular notion we have of Stalin surrounded by technocrats planning 
out every last detail of each five year plan to the last turbine in the last 
electrical generating plant is nothing but a myth. Stalin was opposed 
to planning, accounting and controls.

Stalin chose arbitrary target-dates for big projects and demanded their 
completion on schedule. His main interest was getting the job done, no 
matter how slipshod the results. Every plan submitted to him was 
speeded up. The professionals who prepared the plans were appalled. 
Eventually Molotov got rid of these professionals and replaced them 
with yes-men.

The unplanned character of the Soviet economy forced continuous 
compensations and administrative controls. If a construction crew 
would not work twelve hours a day to complete a road, then additional 
foremen and cops were necessary to control them. As more and more 
bottlenecks appeared, more and more "interventions" were required to 
keep the whole ungainly machine going. Thus a command economy 
built on a centralized pyramid model grew up in the 1930s. This had 
nothing to do with Lenin's original intent.

When the Cuban revolution was in its infancy, economists in the 
Soviet bloc were grappling with the aftermath of Stalin's command 
economy. Their tendency was propose that markets be introduced in 
order to make these top-heavy economies more efficient. They thought 
that the market could make better investment decisions than a 
bureaucrat.

In many cases, the market socialists took inspiration from the NEP of 
the early 1920s. Wlodzimiers Brus, a Polish economist, wrote the 
following:

"The adoption of the New Economic Policy partially changed the 
situation among theoreticians. It became necessary to work out 
theoretically the function of the forms of market relations between city 
and countryside, along with the consequences stemming from the 
resurgence of the commodity-monetary economy in the socialist sector 
itself (economic accounting). Analysis of the market and of the 
conclusions for planning was to occupy an important place in both 
economic policy and theoretical discussions. The question of money 
was taken up.

The first signs began to appear at the time of a change in opinion 
among Marxist economists on the relationship between the plan and 
the market. For some, the idea that the market and commodity-money 
forms were the opposite of planning began to be transformed into the 
conception of the market as a mechanism under the plan."

Guevara resisted the temptation to adopt NEP-like mechanisms. He 
saw the consequences of market reforms in Eastern Europe in the mid-
1960s and understood their underlying capitalist logic. On a trip to 
Yugoslavia in 1959, he characterized the situation as one in which, "In 
broad strokes, with an element of caricature, you could describe 
Yugoslav society as managerial capitalism with socialist distribution 
of the profits." The model for Cuba would not be the NEP or current-
day Yugoslavia or Poland, but the original vision Lenin had for the 
Soviet Union: planning within the context of a socialist and egalitarian 
society.

Guevara laid out his main ideas on socialist construction in a so-called 
"budgetary finance system." According to Carlos Tablada, author of 
"Che Guevara: Economics and Politics in the Transition to Socialism", 
Cuba would draw upon the following measures to make a planned 
economy work:

--advanced accounting techniques that permitted a better system of 
controls and an efficient, centralized management; as well as studies 
and practical application of methods of centralization and 
decentralization by the monopoly corporations;

--computer technology applied to the economy and management, and 
the application of mathematical methods to the economy;

--techniques of programming production and production controls;

--use of budgetary techniques as an instrument of financial planning 
and controls;

--techniques of economic controls through administrative means;

--the experience of the socialist countries.

Che summed up the spirit of the system as follows:

"We propose a centralized system of economic management based on 
rigorous supervision within the enterprises, and, at the same time, 
conscious supervision by their directors. We view the entire economy 
as one big enterprise. In the framework of building socialism, our aim 
is to establish collaboration between all the participants as members of 
one big enterprise, instead of treating each other like little wolves."

If accounting and controls was all there was to Guevara's concept of 
socialism, we would be unimpressed. After all, isn't what the United 
States and other advanced capitalist countries going through today 
nothing but an exercise in bottom-line mentality. Wouldn't Guevara's 
seeming obsession with efficiency and control crush the human spirit? 
At the same time he was writing articles on the necessity to introduce 
technology into the Cuban economy, students at Berkeley University, 
many of whom were sympathetic to the Cuban revolution, were 
demanding not to be "mutilated, folded or spindled." The mid-1960s 
were a period when large-scale computing had begun to be felt 
everywhere, including the liberal arts universities.

Key to understanding the relationship between the overall goal of 
efficiency and the importance of putting people first can be found in 
Guevara's approach to the Marxist category of value. It would be value 
that would mediate between society and the economy.

Simply put, Guevara believed that the law of value operates as a 
"blind, spontaneous force" under capitalism. Socialism, on the other 
hand, would allow conscious action upon the law of value in 
accordance with an understanding of the greater needs of society. In 
his Manual of Political Economy, Guevara spells out the way the 
socialist state can make use of the law of value.

"We consider the law of value to be partially operative because 
remnants of the commodity society still exist. This is also reflected in 
the type of exchange that takes place between the state as supplier and 
as the consumer. We believe that particularly in a society such as ours, 
with a highly developed foreign trade, the law of value on an 
international scale must be recognized as a fact governing commercial 
transactions, even within the socialist camp. We recognize the need 
for this trade to assume a higher form in countries of the new society, 
to prevent a widening of the differences between the developed and the 
more backward countries as a result of the exchange. In other words, it 
is necessary to develop terms of trade that permit the financing of 
industrial developments even if it contravenes the price systems 
prevailing in the capitalist world market. This would allow the entire 
socialist camp to progress more evenly, which would naturally have 
the effect of smoothing off the rough edges and of unifying the spirit of 
proletarian internationalism.

We reject the possibility of consciously using the law of value in the 
absence of a free market that automatically expresses the contradiction 
between producers and consumers. We reject the existence of the 
commodity category in relations among state enterprises. We consider 
all such establishments to be part of the single large enterprise that is 
the state (although in practice this has not yet happened in our 
country). The law of value and the plan are two terms linked by a 
contradiction and its resolution. We can therefore state that centralized 
planning is the mode of existence of socialist society, its defining 
characteristic, and the point at which man's consciousness is finally 
able to synthesize and direct the economy toward its goal--the full 
liberation of the human being in the framework of communist society."

The legacy of Che Guevara is found in his deeds and his words. The 
Cuban revolution is a continuing monument to the determination of 
the Cuban people to choose a socialist model. Study of the Cuban 
revolution will provide rich examples of not only how to organize to 
take power, but how to use it beneficially.

I strongly urge others to study Che Guevara's writings and Marxist 
studies of the Cuban revolution, such as James O'Connor's. This is a 
revolution that needs our help. The more intelligent our understanding 
of Cuba is, the better prepared we are to defend it. Defense of these 
last bastion of socialism will also help us to sustain the cause of 
socialism elsewhere. With all of its flaws, Cuba remains an alternative 
to the misery and oppression of the semicolonial world.




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