Showing posts with label unity magazine. Show all posts
Showing posts with label unity magazine. Show all posts

Tuesday, 4 December 2007

From the latest UNITY magazine: Book review


Build it Now: Socialism for the Twenty-first Century 
Monthly Review Press, 2006 
US$14.95, 127 pages

reviewed by DAPHNE LAWLESS


In the capitalist "West" today, the class struggle sits finely balanced. An as yet formless but real anger among the grassroots is balanced with the fear, cynicism and despair of almost thirty years of solid defeats for our side. In this situation, revolutionaries – and all those who want to build a better world – have not only the opportunity but the duty to get stuck in to the business of building the movements and a new political leadership of the oppressed. Failure of this project or that project will not be fatal, if we learn from it. What might be fatal to our chances of making real advances, though, is a failure of imagination.


Michael Lebowitz knows this all too well. Build It Now, his collection of essays and articles on the theme of "socialism for the 21st century", accurately points out that "our greatest failing is that we have lost sight of an alternative" - "we" being the forces for social change. It's worth giving a couple of minutes of thought to why that might have been.


During the dark years which followed the upturn of the 70’s and 80’s, the small but real revolutionary Marxist parties which sprang up throughout the world disintegrated. Some of them gave up when the getting got tough, retreating into the social democratic parties, and from there often retreating again into the welcoming arms of neo-liberalism.


Other hunkered down in small "revolutionary" groups which increasingly took on the appearance of religious organisations. This similarity could be seen in their public activity - "interventions" in mass movements, such as selling their newspaper, increasingly became rituals rather than real attempts to link with the masses. Their internal meetings also took on the aspect of religion, with close study of the "holy texts" often alternating with hunts for heretics.


But these groups were also religious in the sense that Marx would have recognized - that of "the heart of a heartless condition, the soul of a soulless world". In a world where Marxism had become irrelevant to the working masses, ritual "political" behaviour and abstract faith in a literary Marxism became a consolation rather than a guide to action. The activities of such groups at least kept the ideas and tradition of Marxist political action alive during the dark years. But in an era in which the masses are beginning - tentatively - to move on a global scale, and the need for what Gramsci called "organic intellectuals of the working class" becomes acute, the bad habits of sect-like behaviour have a nasty habit of sticking.


Michael Lebowitz's aim in his short book is to think outside the traditional categories which have been mistaken for "Marxist analysis". He takes as his title an old slogan of the South African Communist Party, which has the virtue of emphasising that the struggle for socialism, for a post-capitalist human civilisation, is something that has to be fought for and planned for now, not somewhere down the track. And for his subtitle, he takes a slogan of the Bolivarian revolution - emphasising that while we can learn from the victories and defeats of the past, revolutionary practice must be continually reinvented in the present day. While this book is put together from a variety of sources, each article has the common thread of someone attempting to practically work from the insights of great revolutionaries, to find new answers to Lenin's age-old question: "What Is to Be Done?"


Lebowitz's Marxism is fundamentally humanist - in that he sees actual living people, and how they live their lives, as the central important thing in a revolutionary project. This challenges the fetishization of economic growth common to both Stalinism and neo-liberalism. 21st century socialism, he says, must be open to "exploration of the social relations in which people live", rather than bricks, mortar and production figures.


Anyone new to revolutionary politics would be well advised to read the first chapter carefully, as it is a succinct and straightforward introduction to the central question of Marxism - the labour theory of value and the model of the capitalist economy on which it is built. As Lebowitz says clearly: "Economic theory is not neutral", and a good grasp of economics from a working-class point of view is vital for anyone who wants to take on the neoliberal creed of There Is No Alternative. He quotes former World Bank president Joseph Stiglitz as saying that no-one in the ruling class really believes the dogma they spout about "perfect competition" or the "invisible hand" of the market which makes everything all right - but that this idea still "functions as a weapon to be used on behalf of capital". So too, our side needs its own economic ideas as weapons, ideas that justify the idea that working people should be at the centre of deciding what is produced for whom and how.


Lebowitz makes the important point that capitalism is always driven to not only make production more profitable, but also "expand the sphere of circulation" - that is, to not only make it easier to sell goods, but to create new markets and even new commodities to sell. The "new working class" in the Western countries are increasingly involved in either the service industries, or in precisely those industries which expand circulation - the industries of communication, of packaging, of marketing, of making sure that one brand of goods gets sold over its virtually identical competitor. Lebowitz inspiringly labels the whole industry of marketing and public relations as what it is - "an unacceptable waste of human and material resources". But this waste can't be avoided under capitalism.


The dead-end waste of capitalist “monopolistic competition” is also the paradigm for modern “democratic” politics. It's no accident that elections in the West are increasingly being seen in terms of a meaningless choice between Coke and Pepsi. This false choice is also the nature of national political contests in these days when every major party has accepted neo-liberalism, or the social liberal alternative which Lebowitz describes as “barbarism with a human face”.


Lebowitz also makes it clear why a return to Keynesianism – the 1960's style social democratic economics of government intervention and direction of investment - is no longer a goer. Lebowitz knows what he's talking about here from experience. He was policy director for the NDP - the equivalent of the Labour party - in the Canadian province of British Columbia in the 1970's, and no doubt remembers how Keynesianism was thrown aside by the ruling class when it proved helpless against the oil shocks. For those traditional social democrats who still believe that the Labour and Social Democratic Parties of the 1970s offer a model, Lebowitz says it plainly: Keynesianism and neoliberalism are just two sides of the same coin. While neoliberalism seeks to smash wages and barriers to investment, Keynesianism aims to direct investment and boost domestic purchasing power. But they are both all about keeping the local capitalists happy.


The globalised economy has made "one country" solutions obsolete. Any attempt at building national barriers inside which to build a more profitable - or even a more humane - capitalism will simply be smashed by the tidal wave of money in the global finance markets. Lebowitz deserves to be quoted at length on this:


Since no govt based simply on its own resources can hope to succeed in this struggle against such internal and external enomies, the central question will be whether the govt is willing to mobilise its people on behalf of the policies that meet the needs of people. Here the essential matter is the extent to which the govt has freed itself from the ideological domination of capital.


Only mass militancy can even defend the most minor challenge to the rule of capital. But this means taking on domestic as well as foreign capital. There is simply no way to inspire a mass movement with minor demands which tinker around the edges. As Lebowitz says, only threats to "existing patterns of ownership" - both domestic and foreign - can mobilise a real democratic uprising.


Any leftist government which comes up against the ultimate sanction of the ruling class - an investment strike, or hoarding of consumer goods - has, in Lebowitz's words, two choices: give in, or move in. Surrender to capital, or nationalise and occupy. And considering that in every country the state apparatus works on behalf of the ruling class, only a mobilised and determined popular movement organised independently of that apparatus can make the second option a realistic one. This requires the self-transformation of the working masses which Marx foresaw, as Lebowitz says:


Where are the measures in traditional theory for the self-confidence that arises in people throught the conscious development of co-operation and democratic problem solving in communities and workplaces?... The means of achieving the new society are inseparable from the process of struggling for it... to build a world based on solidarity, we must practice solidarity.


The first three chapters of this book are essentially negative, in the sense that they discuss what isn't right, what doesn't work, and what hasn't happened. The real content of this book - its positive suggestions - are inseparable from the author's personal experience as an advisor to the Bolivarian revolutionary government of Venezuela.


Some argue that the Bolivarian Revolution is of limited relevance to other countries, as Venezuela is made unique by its status as an oil-exporting giant. Venezuela has of course a very different economy to an advanced Western nation, but it has one vitally important thing in common with countries like New Zealand. In Venezuela, up to 50% of the population are in the "informal" sector of the economy - casual workers, petty traders, or the nameless masses who service the needs and desires of the Venezuelan oligarchy. 20th century revolutions were based around a self-conscious industrial working class seizing control for themselves at the point of production. This class has been smashed in most Western countries, and never had a chance to develop in Venezuela.


This has led to an assumption in some quarters that traditional union organisation must be rebuilt in the post-industrial West before a revolutionary transformation is on the cards. But as Alex Callinicos says in his article reprinted in this issue, in many ways the working class in the Third World have been thrown back to a pre-20th century atomisation - that the new revolutionary democracies might look more like the Paris Commune than the Petrograd Soviet. If a new form of popular power arises based on the fragmented working masses rather than a disciplined industrial proletariat, then the lessons learned in Caracas or La Paz might be vitally important in South Auckland, or even Los Angeles.


The reaction of various socialist and revolutionary groups around the world to the ongoing Bolivarian Revolution in Venezuela - and to the most central and visible leader of that process, President Hugo Chávez - is a prime example of what has gone wrong here. Organisations who had gotten into the habit of "analysis" of events in distant lands had often forgotten that the whole point of Marxist analysis is to determine the correct line of action. Indeed, for many groups, "analysis" simply meant deciding which pre-determined mental pigeonhole to put any new phenomenon in. Once they had determined that Chávez was a "radical reformist", a "left Bonapartist", or even a "Peronist", then it became clear which set of clichés to use in speeches and articles - and no further thought needed to be taken. This has led to the quite pathetic spectacle of so-called "Marxist-Leninst" groups actually lining up with the pro-imperialist Venezuelan oligarchy, against the revolution.


In contrast, real Marxism is based on dialectical logic - the idea that things are not simply what they are but always changing themselves into something else. Trotsky's great contribution to Marxist thought was the concept of transitional demands - that we can fight for limited demands in the here-and-now which point towards and lead on to fundamental social change. And that's where Lebowitz comes from.


This second half of the book begins by refusing the "autonomist" approach to social change - that we can "change the world without taking power", in the words of John Holloway. The correct insight that only the self-activity of the working masses can create a new world has led in some quarters to a belief that nothing worthwhile can come from any other direction. "Could we imagine the changes that are happening [in Venezuela] now without the power of the state?" asks Lebowitz.


It's not so much that the autonomist or ultra-left critics of the Bolivarian revolution can't imagine what's happening - they just can't believe that anything worthwhile could be coming from Chávez or the government which he leads. The irony is that, rejecting the "leadership from above" of Chávez, these groups have often ended up attaching themselves to various trade union officials or small political sects with minimal influence in the ground in Venezuela, in the hope of finding some kind of alternative leadership.


"Socialism doesn't drop from the sky," says Lebowitz in one of his most memorable phrases. "It is necessarily rooted in particular societies. And that is why reliance upon detailed universal models misleads us."


The experience of the Paris Commune famously taught Marx that a revolution must smash the old state apparatus. But those who quote this example against Chávez neglect the point that in the succesful October 1917 revolution in Russia, the civil service structures of the Tsarist ministries were not smashed - in fact, the bureaucrats and officials were often compelled to work for the new Soviet authority at gunpoint. The central role of the nationalised oil industry (PdVSA) in the Venezuelan economy meant, more than any other, that the existing Fourth Republic state could not be smashed overnight


The Bolivarian constitution in itself is a "transitional document" - reflecting the balance of power in the movement that brought Chávez to power in 1998. Its central value to the movement, even more than the quite limited democratic gains which it embodies, is as a symbol that the masses would now have a measure of control over the very state which produces most of Venezuela's foreign exchange earnings. To reject this victory - and the further victories which it has led to - on the grounds that the state was not smashed overnight, or on the grounds that it was sparked off by an election victory rather than the armed masses storming the Presidential palace - is a dreadful case of substituting predetermined categories and wishful thinking for the reality of the class struggle.


Lebowitz sums it up well:


The new society can never be fully formed at the beginning. Initially, that new society must build upon elements of the old society... a new society comes on the scene necessarily in a defective form and ... it develops by transforming its historical premises, by transcending its defects.


Lebowitz goes on to say that


a state determined to serve as the midwife of a new society can both restrict the conditions for the reproduction of capital and open the door to the elements of the new society. This process requires a special kind of state... the state itself must be transformed into one subordinate to society.... Without creating power from below... the tendency will be the emergence of a class over and above us.


Whether the forces ranged around a revolutionary project in Venezuela can build on the gains of the Bolivarian Republic and make this happen is by no means certain. But it is the height of folly to write off the project in advance.


The last two chapters of the book are possibly the most thought provoking, because the most concrete. Lebowitz knows for certain that the future socialist society


cannot be a statist society where decisions are top-down and where all initiative is the property of state officeholders or cadres of self-reproducing vanguards. Precisely becauise socialism focuses upon human development, it stresses the need for a society that is democratic, participatory and protagonistic.


(One of the puzzling aspects of the text is that Lebowitz continually refers to what he calls "20th century socialism" in the past tense - doubly ironic considering the important role of Cuba in the ongoing process in Venezuela.)


Lebowitz, like Chávez, recognizes that a new broad coalition - or, in Gramsci's terms, "historic bloc" - will be necessary to win final victory, especially given the historic weakness of the organised working class. However, Lebowitz is still a Marxist, and states clearly that "worker management is the only real ultimate alternative to capitalism”. Accordingly, he devotes a chapter to the experience of the 20th century regime which made worker self-management a central plank of its ideology - Tito's Yugoslavia.


Tito's regime, while coming out of the Stalinist Comintern, established itself on the basis of successful guerilla resistance against Nazi occupation, rather than on the back of Soviet tanks. When Tito broke with Stalin in 1948, his ruling apparatus established elected factory councils in the nationalised Yugoslav economy. On paper, these councils were the supreme authority in the factory, with full authority over production, only paying a tax on their capital to the state.


Lebowitz notes that the goal of a socialist transformation is to abolish the distinction between mental, manual and managerial labour - in a word, the abolition of classes. However, twenty-five years into the experience, as Lebowitz notes, the class system in the Yugoslav self-managed factories was as strong as ever:


Although the members of the workers' councils had the power to decide on critical questions... they didn't feel like they had the competence to make these decisions – compared with the managers and technical experts. So in many enterprises, the workers' council stended to rubber-stamp the proposals that came from management... [the councils] functioned like an electorate unhappy with its government, but not as the government themselves.


Another problem arose from the fact that Yugoslavia was still a market economy, with the various worker-managed factories competing amongst one another. This replicated many of the problems of free-market capitalism - duplicate investment in competing factories and the waste of competitive marketing. But it also posed what capitalist economics calls "the aggregation problem" - how an economy based on small, independent business, albeit managed by their workforces, would be able to deal with society-wide problems such as unemployment or social welfare.


The Yugoslav economy was plagued with inflation. The state would not allow money-losing enterprises to fail. So those businesses would demand subsidies from local government – who would usually agree, as it was cheaper than paying the dole - which mean there was no incentive to cut costs and make production efficient. Business that wanted to expand would borrow from the (state-owned) banks, eventually leading to the banks being the real directing forces in most of the self-managed sector. The richer enterprises in turn partly owned the banks, and used them to further ensure their dominance in the economy - again, just as in a Western capitalist economy. This division between rich and poor enterprises was reflected in a distinction between richer and poorer parts of the Yugoslav federation, which tragically exploded into civil war in the early 90's.


So, if the experiment in a worker-directed economy in Venezuela is not to fall apart in "“unemployment, growing inequality, envy, inflationary tendencies, rising social and ethnic tensions” as it did in Yugoslavia - what can we learn? Lebowitz boils down the central problem to the following: “What is the relation between an individual worker-managed enterprise and society as a whole?” He goes on to say that, in the Venezuelan case, the worker-managed factories must remain collectively responsible to the broader social movements, rather than looking out for themselves. Otherwise, he warns, "the premise of a divison between an aristocracy of labour in specific enterprises and the majority of the working class is not unthinkable.”


This is a vital point that socialists in other countries must grasp about conditions in Venezuela. We all know in the West that there is a contradiction between union leaderships and their rank-and-file workers. And yet some revolutionaries in advanced countries take the Venezuelan union leaderships - when they are critical of Chávez - as some kind of authority or even alternative revolutionary leadership. In contrast, many inside Venezuela believe that the union leaderships – even those in the radical UNT federation - are infected with the "me first" attitude of the Fourth Republic. Lebowitz reflects that


the stress upon wage demands by organised workers, plus the reversion by PDVSA unions to the old practices of selling access to jobs in the industires, convinced some Chavists that the organised working class was oriented to its particular interests rather than to those of the working class as a whole.


On the other side, there are those within the Chávez government and the movement who don't see a place for worker self-management in

"strategic" industries at all – on that very reasoning mentioned above, that the self-interest of reasonably privileged organised workers contradicts the needs of the broader masses. But Lebowitz rightly points out that that attitude is but a short step from believing that the workers have no right to strike in their self-interest against "their own" state – the ghost of Stalinism rearing its ugly head.


Lebowitz understands the vital point that the contradiction between the industrial workers and the broader masses only makes sense in an economy still dominated by the cash nexus and the need for production for exchange. This brings up the question of whether an alternative means of consumption, distribution and exchange to the market is necessary to make sure a democratic economy can flourish and grow, and to promote production for real social need. The Social Mission "Vuelvan Caras II" is seeking to promote new networks of "Social Production Enterprises", which will work closely with the Communal Councils who will comprise the core of the new state structure. This is interestingly similar to Michael Albert's "Parecon" vision of Producers' and Consumer Councils working together in a post-market economy.


Lebowitz also suggests that the division between the ordinary workers and the technicians and managers can be bridged by guaranteeing time and opportunities for worker self-education during the work day - something which the new constitutional reforms seem to be attempting to bring in. However, on this point Lebowitz has something of a blind spot as to the political lessons to be learned from Yugoslavia. He doesn't mention the elephant in the room, that Yugoslavia was politically a one-party Stalinist regime, where matters of national economic and social policy were simply not up for debate, except behind closed doors by bureaucratic cliques.


When Lebowitz talks about the managers and the experts and their alienation from the workers, he doesn't mention that the managers and experts were virtually all members of Tito's ruling party, the League of Communists. Colin Baker, an English socialist, has pointed out that the ruling parties of Stalinist regimes resemble in social composition and function nothing less than a Western conservative party - a mostly ideology-free zone where the elite meet to network and swap gossip. And so the problems of democracy within the "worker-managed" enterprises are intimately linked to the fact that an unaccountable bureaucracy was the real ruling class in Tito's Yugoslavia. The question of what kind of organisation the United Socialist Party of Venezuela becomes is, once more, absolutely vital. A new party built from below, which acts as a tool of worker and popular self-organisation and self-education, could be the vital link which pushes forward the struggle to abolish the class system in the workplace.


But that's not a guaranteed outcome of the Venezuelan revolution. The coalition which elected Chávez in 1998 and wrote the Bolivarian constitution was a highly contradictory one, like all broad democratic movements. The initial, reformist trajectory of the Chávez government was summed in in what was known as the "Sunkel plan" after its author - basically a prescription for building up domestic capitalism in Venezuela using a strong state, similarly to the way that Japan and South Korea industrialised. Lebowitz starts his last chapter - a potted history of the Bolivarian revolution to this point - by saying that we need "a challenge to capital that starts from the needs of human beings". In the early days, the dominant forces in the Chávez movement wanted nothing more than to be able to compete with world capitalism on a better footing, which meant cleaning up the corruption and parasitism endemic in the Venezuelan bourgeoisie.


But it was Chávez's very moves needed to survive which meant that the project was pushed inexorably to the left. After the counter coup in April 2002, Chávez at first attempted to placate the oligarchy. This only meant that they scented weakness, culminating in the oil lockout at the end of that year. To defeat that lockout, the government was forced to turn to the masses to keep itself alive. Grassroots committees in tandem with the military organised food distributions, took over petrol stations and re-opened schools which had been shut down. This was the point at which the organised working class and the "Positive Middle Class" movement emerged as real players. The workers at PdVSA "boasted that not only had they run the company well, they had signiciantly reduced the cost of production.” The terror of all popular reform movements - the capital strike - had happened and had been defeated. The Chávez government had taken the fateful decision to move in rather than give in.


Venezuela's specific needs and condititions meant that it would have to invent rather than copy”, says Lebowitz. The Social Missions - parallel structures outside the state to funnel oil money into sosocial programmes - were the first inkling that the Chávez government had recognized that the Venezuelan state itself was its enemy. But it's well known that the Chávist movement is full of "counterrevolutionaries in red berets" - or, to put it less emotively, forces who want to see a return to the original, reformist goals of the Chávista movement, and are uncomfortable with the new ideas of mass participatory democracy or workers' control in the economy. Lebowitz notes:


among both existing state officeholders and appartchiks of the Chavist parties, there is some resistance to a shift downward in power because it reduces the ability to distribute jobs and largesse from above... The economic revolution, in short, has begun in Venezuela but the political revolution... and the cultural revolution... lag well behind. Without advances on these other two fronts, the Bolivarian Revolution cannot help but be deformed... Given the enemies of the... Revolution (both those outside and inside it), a political instrument that can bring together those fighting for protagonistic democracy in the workplace and in the community is needed."


The founding of the PSUV and the push for the new constitution - the constitution of the Socialist Bolivarian Republic of Venezuela - constitute the next steps in this political revolution. It is impossible to predict in advance what will happen next.


Lenin knew well that it is impossible for any organisation - even a revolutionary party - to make a sharp turn in practice, strategy or principle without internal stress, conflict and perhaps even splits. And yet, it is precisely that ability to make turns - that supreme tactical flexibility - which is vitally necessary in any political force which aims to take a leadership role in the class struggle. Michael Lebowitz's book gives all revolutionaries and anyone else serious about fighting for social change how to concretely engage with an active, living social struggle. He shows that you can do this not by abandoning Marxism or by sticking to a rigid predetermined "checklist" of what a revolution looks like, but by using reality to expand theory, rather than using theory to limit how we deal with reality. This short book - while not without its flaws or blind spots - is an example of how a revolutionary is supposed to think and write. Read it.

Tuesday, 27 November 2007

INVEVAL – leading the struggle for workers’ control

by Vaughan Gunson Across Latin America thousands of factories have been occupied and taken over by workers. The wonderful documentary film, The Take (2004), directed by Avi Lewi and written by Naomi Klein, follows the struggles of workers in occupied factories in Argentina at the time of the 2002 national elections. In the film an activist from the worker-run Bruckman garment factory tells us: “History is history – there have always been workers and bosses. But we are fighting for worker control. And I think it’s possible. I don’t know if I’m getting ahead of myself, but maybe we can run the country this way.” This is what workers in Venezuela are beginning to believe and fight for. Workers in 1,200 occupied factories and workplaces are part of a mammoth struggle to not just achieve workers’ control of individual factories, but to extend workers’ control to the whole of the country. These workers are at the vanguard of the struggle for socialism in the 21st century. Inveval – a leading light One of the leading lights of the workers’ movement in Venezuela is Inveval, a factory on the outskirts of Caracas that makes valves. Inveval has been nationalised by the Chávez government and is operating under workers’ control. The struggle of these workers, the obstacles they’ve faced and the conclusions they’ve reached is of great interest to all workers, not just in Venezuela, but around the world. In the middle of mass revolutionary movement, these workers are showing through their actions what’s possible. The history of the struggle at Inveval goes back to the bosses’ lockout which shutdown the Venezuelan economy in 2001-02. The capitalist owners of the National Valve Manufacturer (as Inveval was previously named) never re-opened the factory after the lockout was defeated. They refused to pay the 330 workers their outstanding salaries and other payments they were entitled to. A group of 65 workers began a fight to get their money. They demanded justice from the labour courts and the labour ministry. This small group of Inveval workers drew strength from the broader Chávista movement. Francisco Pinero, an Inveval worker and current treasurer, says: “We spent two years picketing at the gates before we decided to take it over. Through this process we developed political maturity very fast, not just through our own personal struggle, but the broader political struggles of the constituent assembly and the recall referendum.” Never-the-less, the struggle took its toll and by December 2004 only one worker camped outside the factory. At this point the boss tried to sneak into the factory at night to take tools and half-finished valves. Pablo Cormenzana, a spokesperson for Inveval, tells how the workers then decided to camp in bigger numbers outside the factory to stop the boss from ransacking the factory. We were thinking: “this guy left us out in the streets and now he’s leaving with the few things that could be sold to pay us back what he owed us.” “At the very same time,” says Cormenzana, “two very important situations developed in Venezuela. In January 2005 during the World Social Forum in Porto Alegre, President Chávez launched his proposal for socialism. This was very important moment for the worker controlled factories. “The other important event for Inveval was the nationalisation of the paper mill Invepal. The paper mill Venepal was in a similar situation as Inveval. The owner in this case claimed bankruptcy with the idea of breaking up the company and selling off shares to the transnational cardboard producer, Murphy. The owner of Venepal went bankrupt and left the workers out to dry. The Venezuelan government told the workers at Venepal that if they led a serious struggle and rallied on a large scale, President Chávez may consider nationalising the company. The workers accepted the proposal and began to rally. They protested, pushing for nationalisation of Venepal. The president accepted the proposal and decreed the nationalisation of Venepal. The workers later formed Invepal. “The nationalisation of Invepal motivated the workers of Inveval and they launched a new campaign to get their jobs back,” says Cormenzana. A factory run democratically by workers Inveval was nationalised by presidential decree in April 2005 and re-opened under workers’ control. “We’re talking about a huge factory that runs with computers and giant machinery. And yet, the workers were able to make it work,” says Cormenzana, “They’re proving the theory that workers can run industry without bosses. Not only are the workers at Inveval successfully running a company without bosses or an owner, they’re also doing it without technocrats or bureaucracy from the government. The government has had little participation in the functioning of the company.” Pinero explains how the struggle to get their jobs back by taking over the factory led to formation of workers’ assemblies: “We were members of the union [Sintrametal, formerly aligned to the old corrupt CTV]. When we wanted to take over the factory we asked the union for legal help, but they didn’t help us. Because the union didn’t help us we began to form assemblies.” These were maintained after Inveval was nationalised. Initially Inveval was to be run under a co-management model, with 51% ownership being in the hands of the state, and the other 49% with the workers. The management of the company was to be a Directors Board composed of three elected representatives of the workers’ assembly and two functionaries appointed by the state. The two state appointees never turned up and Inveval workers quickly decided that the Directors Board was not a democratic or socialist way of running the company. The board was replaced by a Factory Council made up of 32 representatives elected by the workers’ assembly, which is the highest authority. The Factory Council is divided into commissions responsible for specific tasks like finances, administration, design of valves, quality control, discipline, sales, etc. “Factories under worker control function democratically, unlike with a boss,” says Pinero, “The factory is run by worker delegates. “If the delegates and representatives do not fulfill their responsibilities according to what the assembly says, the assembly can revoke the delegate from his or her position. All of the workers make the same salaries - it doesn’t matter if they are truck drivers, line workers or the president of the company. “We want the state to own 100%, but for the factory to be under workers control, for workers to control all production and administration. This is how we see the new productive model; we don’t want to create new capitalists here,” stresses Pinero. There has been a debate amongst workers, unionists and other grassroots activists about the relationship between Factory Councils and the trade unions. On this matter Jorge Paredes, Inveval’s worker president, is clear: “The Factory Councils cannot replace the trade unions. They must complement each other. The Factory Councils are a weapon of the workers to manage the companies and therefore to run the economy. The trade unions are a tool to defend our rights as workers. Some trade union comrades have a confused vision of this matter and reject the Workers Councils. This is a serious mistake. Revolutionary trade unions must promote the setting up of Factory Councils in order to develop workers’ control.” FRETECO – organising to extend workers’ control Workers at Inveval have been conscious of the need to share their knowledge and experiences with the rest of the movement in Venezuela. This is happening in a number of ways. They’re raising with workers in other occupied factories that representatives should attend each others meetings. Inveval workers have been invited by the Ministry of Light Economy and Trade to take a leading role in the socialist education of other public industrial companies. And it was Inveval workers who were the force behind the establishment of the Revolutionary Front of Workers in Factories Occupied and under Co-management (FRETECO), formed in 2006. The Front’s goal is to push for the extension of workers’ power from its base in factories and workplaces to all levels of Venezuelan society. Article 1 of FRETECO’s constitution states: “The Co-managed and Occupied Factories Worker’s Front declares its principal objective the extension of the expropriation and nationalisation of Venezuelan industry and its placement under control of its own workers. Its goal is to develop the process that started in 2005 with the expropriation of Venepal by the president of the Republic and to extend it to the rest of Venezuelan industry so it leads to the practice of socialism in the nation of Bolívar.” As the path ahead for the Venezuelan revolution is debated by workers and other grassroots people, FRETECO’s ideas about workers’ control are gaining a hearing. A FRETECO organised gathering on 30 June brought together workers from a number of factories and workplaces, including from Intevep (the technology division of state-owned oil company PDVSA) and the Socialist Front of Workers of Caracas Electricity (EdC), recently nationalised by Chavez. Representatives of the government and other revolutionary political organisations also attended. The focus of the meeting was to discuss Chávez’s decision to establish hundreds of new “social production enterprises” or “socialist companies” to produce a range of items, including food, ships, construction materials, cellular telephones, clothing, electrical appliances, wheelchairs and bicycles. Also discussed was Chávez’s creation of a Central Planning Commission by presidential decree. The stated purposes of the commission are to promote the transition to centralised planning of the economy; promote the establishment of a socialist state; preserve national sovereignty; and promote international alliances. All government ministries and state owned companies will be subject to the decisions made by the Central Planning Commission. These two new initiatives have been a hot topic of debate in Venezuela. On the right of the movement there are people who argue that it’s enough to nationalise industry under the control of the state. While on the left, groups like FRETECO are arguing that “socialist companies” must be controlled democratically by workers, or they’re not socialist. A focus of the debate has been whether industries currently run by the state should instead be directly under workers’ democratic control. Federico Fuentes, in an interview in Green Left Weekly (1 August 2007), says: “This is a very intense discussion, because there is no doubt there are different wings within the government... There are those who are totally opposed to any real form of worker participation in state industry.” According to Fuentes this is the position that Chávez, for now at least, has backed. However, he believes the debate is far from over: “this is a discussion that will unfold and many are confident that it will be possible to clarify what workers’ participation means and why it is so important in the state industries.” FRETECO, a grassroots workers’ organisation reflecting the knowledge and experiences of workers who’ve achieved workers’ control in individual factories, are well placed to intervene and give leadership to the rest of the movement. In a sea of capitalism One of the experiences workers at Inveval are generalising from and bringing to the attention of other workers and socialist activists, is that individual factories under workers’ control cannot survive in a sea of capitalism. Inveval has trouble getting raw materials, necessary tools and machinery, and finding buyers for the valves they make. But they also face legal problems from the maintenance of bourgeois laws and outright opposition from corrupt bureaucrats within the old structures of the Venezuelan state. These state functionaries want worker controlled factories to accept the rules of the market and to compete against other factories, whether capitalist owned or run by workers. Carlos Ramírez from the Revolutionary Marxist Current (CMR) spoke to the FRETECO gathering. He argued that: “An isolated company working under workers’ control will face many difficulties to survive. Even if it is expropriated by the state but remains isolated it will be subjected to the pressure of the state bureaucracy, which – as president Chávez has said – is one of the legacies of capitalism. Socialist companies can only survive if the take over, occupation and expropriation of factories spreads to the whole economy.” Inveval workers have had trouble with the managers of PDVSA, the state owned oil company. PDVSA had negotiated a contract with Inveval to produce valves, which they did. PDVSA managers then reneged on the deal and refused to pick up the valves or pay for them. Even after a direct intervention by Chávez the valves remained on the factory floor. PDVSA has since placed orders with Inveval for valve sizes that they know the factory can’t produce, and then accused the Inveval workers of failing to fill orders, This economic sabotage by state capitalists within PDVSA is what the revolution is up against. Socialism = workers running the country Where you stand on workers’ control is fast becoming the issue which defines whether you are for or against the revolution. Workers at the FRETECO gathering are convinced that workers’ control has to be spread to every factory and workplace in Venezuela. Nelson Rodriguez, an Inveval worker, says the Workers Councils “must link up with the Peasant Councils, the Communal Councils, in order to become the basis of the new revolutionary state we want to build. Only this can put an end to the sabotage of the capitalists, bureaucratism and corruption.” Inveval workers have been meeting this year with the Communal Councils of Los Teques, a city 30km from Caracas. Los Teques currently has a mayor who claims to support Chávez, but who continues to block and disregard the demands of grassroots people. The mayor and his council have failed to maintain basic services like rubbish collection. A private company was given the contract by the town council to collect rubbish, but this year through combined mismanagement and opposition to the revolution, rubbish has been left to pile up on the streets. In response to this major public issue, Inveval workers talked to members of the Communal Councils about the need for a new local assembly of representatives of the Factory Councils and Communal Councils, to begin to take over the functions of the corrupt town council. At the same time they talked to workers from the rubbish collection company about workers’ control. They put forward the argument that rubbish collection needs to be organised and run by workers and the community. Through FRETECO Inveval workers are calling on comrades in other worker occupied or expropriated factories to make the same links with the Communal Councils and begin to coordinate worker and community action to tackle the problems posed by corruption and economic sabotage. From these practical initiatives can emerge the democratic structures of a socialist state. The next stage of the revolution The confidence of Inveval workers, and their clarity in regard to what needs to be done, has seen them call for workers, elected and recallable, to participate in the new Commission of Planning announced by Chávez. “In this way,” Antonio Betancourt argues, “the revolutionary government and the workers could manage, lead and really plan the economy.“ As has often been the case, initiatives of Chávez spark new debate about the direction of the revolution and spur people to action, in the process deepening the consciousness of the movement. The government continues to open up space for workers to discuss themselves the path to socialism. Chávez & Co are not going to have all the answers, so workers’ revolutionary organisations like FRETECO, which are bringing together the best revolutionary fighters, are vital to the health of the revolution. The ideas and experiences of Venezuela’s revolutionary workers are yet to connect with the mass of the working class and other grassroots people. The real flourishing of their ideas is set to occur when the 5-million-strong United Socialist Party of Venezuela (PSUV) takes the field of the revolution. Inveval workers know that they have to bring their knowledge to the wider workers’ movement and influence the debate as to how socialism of the 21st century will be achieved. “We can do this through the PSUV,” says Pinero. This is an exciting prospect as the Venezuela revolution enters its next stage. The majority of the quotes in this article have been drawn from: - ‘Interview with FRETECO representative’, by Marie Trigona, Venezuelanalysis.com, 11 October 2006. - ‘Historic FRETECO meeting – workers of occupied factories present ideas on socialist companies, workers’ councils, and the building of socialism’, by FRETECO, controlobrero.org, 6 July 2007. - ‘Venezuela’s Co-Managed Inveval: Surviving in a Sea of Capitalism’, by Kiraz Janicke, Venezuelanalysis.com. 27 July 2007.

Saturday, 24 November 2007

From the new UNITY: Building It Now


The following is the editorial article from the most recent issue of UNITY magazine - "Socialism for the 21st century". Follow the link for subscription information.

Editional information
Building it now
by DAPHNE LAWLESS

If there was ever a time in history when socialists and revolutionaries could be forgiven for sitting back and letting others make the running, it is certainly long past. The failed and failing imperialist adventures in Iraq and Afghanistan are dragging the current world system down with them.

On a political and military level, it looks increasingly like the people of Iran will be made to pay with their lives for the hurt prestige of Bush and his new best buddy Brown. On an economic level, the chickens are coming home to roost for the Western economies, as the credit bubble which has kept consumption high and wages low deflates.

Ordinary people throughout the world – even in the rich capitalist countries – increasingly know something is going wrong. Neo-liberal capitalism is increasingly making it difficult to put food on the table – and the civil liberties which are the "free West"'s other main selling point are also increasingly curtailed by the endless War on Terror. In many areas,about the only thing which is holding back an explosion at the grassroots is fear – fear that the only alternative to the modern world of police torture and more work for less money is something even worse. Which is, of course, the main ideological effect that the War on Terror is meant to perpetuate.

The job of socialists in the current world climate is to tip the balance between fear and anger in the consciousness of the masses. We need to get across the idea that there is not only an alternative, but a credible means of fighting for it. We need to argue the case for a mass party of workers and the other oppressed and exploited communities, fighting for a socialist transformation of society.

This is why Socialist Worker in New Zealand points to the increasingly important example of the ongoing Bolivarian revolution in Venezuela. For the first time in living memory, we are able to point to a social process of ordinary people taking control of their own lives and telling the corporates where to get off, and say: "That's what we're talking about." Seattle put anti-capitalism back on the agenda. But Caracas has put socialism back on the agenda – most famously, in the statement of President Hugo Chávez Frias of Venezuela that his government is moving towards "socialism of the 21st century".

This issue of UNITY is devoted to exploring exactly what that idea means. As Marxists, we see socialism as a post-capitalist economy, run by bottom-up democracy, where production is carried out for need and for use rather than for profit. As Venezuela is the only nation in the world where a process informed by this idea is being carried out on a national level, much of this issue is devoted to examining critically where the Bolivarian process is going, the opportunities and pitfalls that it evokes.

As most of our readers know by now, Socialist Worker – NZ has been carrying on this discussion within the worldwide network of revolutionary groups to which we belong, the International Socialist Tendency. To put it mildly, our statements have been controversial. The first half of this issue is devoted to reprinting some of the major contributions on this issue. Two discussion papers from the Socialist Worker Central Committee are reproduced, along with a rebuttal from Alex Callinicos, representing our British sister group, the Socialist Workers Party. This ongoing discussion – including IST parties and others – is archived on full at our UNITYblog. We encourage you to check out the whole thing at www.unityaotearoa.blogspot.com

The remainder of this issue is grouped around various themes which we consider vital to imagining a post-capitalist society. Such a society will be thoroughly democratic, with all power of effective decision-making devolved to the lowest level. We include two articles on the current struggle to rewrite the Venezuelan constitution to make "popular power" even more of a reality. But the question of building a bottom-up structure of administration will be an empty shell without building a bottom-up structure of political debate and mobilisation. The fate of "worker self-management" in Yugoslavia shows that workers councils without a real workers' party are like a gun without any ammunition.

The formation of the United Socialist Party of Venezuela both mirrors and determines the future shape of the constitution of the Socialist Bolivarian Republic of Venezuela, and these articles deal with the two questions together. But along with the new politics must come a new economics – democracy in the workplace, and production for use rather than profit. Two opposite threats to this new economy arise in revolutionary Venezuela – from bureaucratic elements trying to impose a state-capitalist system to squash workers' democracy, and from elements within the working class themselves who want factory democracy as a means to compete and make profit in a market economy. Vaughan Gunson discusses INVEVAL, the worker-controlled valve manufacturer, for a glimpse of what workers' power for the 21st century might look like, while Stuart Munckton interviews Fred Fuentes about the problems facing organised labour's struggle to come into its own power in revolutionary Venezuela.

21st century socialism will need a new form of making production and consumption decisions which relies on neither bureaucratic commandism or the anarchy of a money-based marketplace. We reproduce a review of the book Parecon by Michael Albert, an American anarchist writer who has written an intriguing and plausible description of what a post-capitalist economy might look like. Most intriguingly, the centrepiece of his model – Producers' and Consumer Councils negotiating production decisions – increasingly resembles Venezuela's networks of factory councils and communal councils. Albert has visited Venezuela and is enthusiastic about what he's seen.

What will popular culture and the media look like in a free, post-capitalist civilisation? Chávez's decision not to renew the licence of the coup-plotting RCTV network drew nervous reactions from Western liberals intent on defending "freedom of speech". But Rob Sewell ably demonstrates why corporate media control is the precise opposite of freedom of speech – and draws from the Russian revolutionary tradition to suggest what an alternative media democracy might look like. Your UNITY editor also contributes her own thoughts as to the importance of mass media and the people who produce it to capitalism of today and the movement to overcome it.

So much more could have been written about in this issue but had to be cut for reasons of space. We regret not being able to provide an indepth look at the current credit crisis, or discuss the vital role of indigenous people at the heart of the Bolivarian project, or further explain what we see as the situation of “dual power” in Venezuela. We do offer Joe Carolan’s response to accusations that Marxists “fetishise” Muslim peoples and their struggles, and Anna Potts' thoughtful discussion of the place of women's struggle in a 21st century revolutionary movement.

In our final major article of this issue, your UNITY editor reviews Build It Now, a short but dynamite book by Michael Lebowitz, an academic who has been at the heart of the Bolivarian revolutionary process. In a model of what Marxist scholarship should look like, he cogently explains Marxist economics, discusses where the Bolivarian movement came from and how it has changed over time, and gives valuable hints and clues to how workers' power and popular democracy can mesh to create a new world.

The role of the Bolivarian revolution in ideologically sorting out the various strands of opinion in the anti-capitalist movement is perhaps the surest sign of its vital importance for today. The British autonomist John Holloway wrote a book entitled Changing the world without taking power – a seductive concept to generations who had been let down by various figures who had seized state power only to betray. Recently, Gregory Wilpert – one of the founders of the venezuelanalysis.com website – has released a book entitled Changing Venezuela by taking power. It can be argued that Holloway's central thesis – a variation on the old adage that "power corrupts" - has proved inadequate to the test of practice.

One vital lesson of Venezuela is that there are opportunities as well as dangers for revolutionaries in moving into the sphere of state power. Those of us who hold to the Marxist view of the state – that it is an apparatus devoted to the preservation of the power of the bourgeoisie and the capitalist system – have rightly concentrated on the dangers when we argue about reformism. But in the current historical era, where capitalism and imperialism are undergoing crises but there is no credible worldwide alternative, Marxism is faced with the question of either moving into the mainstream – or perhaps losing the last, best chance to save our civilisations and our planet.

By the time the next UNITY comes out, the United Socialist Party of Venezuela will have begun to take shape. This new party, as well the various new broad-left formations in which socialists have played a central role – Respect, the various Socialist Alliances, the German Left party and our own RAM – will be the central theme of the next issue of UNITY.

Thursday, 1 November 2007

UNITY 7 out now



The new issue of UNITY magazine looks at Socialism for the twenty-first century. With special reference to the unfolding Bolivarian Revolution in Venezuela, we look at essential questions for revolutionaries such as: What does a revolution look like? What kind of party do we need? how does workers' control fit into a democratically planned economy? and Is socialism compatible with freedom of speech? Plus book reviews, letters and poetry.

The cover price is $5. A postal subscription inside New Zealand is $25 for four issues. A fastpost offshore subscription is $NZ40 anywhere in the world.

Any subscription queries or problems, contact the UNITY manager at organiser@sworker.pl.net, or phone +64 9 634 3984, or write to Box 13-685, Auckland, New Zealand.