Tendance Coatesy

Left Socialist Blog

John Ross: from the International Marxist Group to defending “politically socialist” Chinese regime.

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Image result for socialist action uk

Still Around as John Ross Sings Praises of Chinese “Xi’ism”.

John Ross was one of the main figures  in the leadership of the International Marxist Group in mid01970s, elss well known than say Tariq Ali, but considered the main figure.  By the early 1980s when it became known as Socialist Action, but he gradually lost the support of much of its membership. Ross was leader of one of three groups which emerged from the crisis of this group in the mid-1980s, the one which retained the name Socialist Action. They increasingly ceased to function as a normal left-wing group and became a group of advisers to Livingstone, or as critics said, a kind of high-level entryist group  who provided the inner core of  the Mayor’s team.

I write the above as a one-time member of the Opposing Faction to Ross in the 1970s IMG, Tendency A.

Reasons to distrust the groupuscule are many but  this sentence sums up their kind of politics, “Socialist Action also participated in Respect – The Unity Coalition after the 2007 split in that party. Several of its supporters became members of the party and one served as its national treasurer.” They are now said to have influence on Jeremy Corbyn.

The group still has a, kind of, site: Socialist Action.

We cannot dislike  them too much at present  since this is one of their recent policies:  There is no ‘People’s Brexit’

The development of Ross is, which ever way you look at it, curious.

A famously ‘Orthodox’ Trotskyist, who knew his Lenin better than Jesuits know their Thomas Aquinas he has been working in China as an academic economist,   Chongyang Institute for Financial Studies at Renmin University of China- paid for by the state –  for some time and sings the praises of the government’s ‘socialism’.

He has been posting material like the below, all over Facebook for the last few weeks.

How China’s Socialism Outperforms Capitalist Development Strategies. John Ross.

China has followed an economic development strategy, as analyzed below, that is radically different from the neo-liberal “Washington Consensus” advocated by the IMF. The latter is the dominant development strategy advocated by capitalist countries. This article therefore factually compares the results of what will be termed China’s “socialist development strategy” versus the Washington Consensus.

The reasons for making such a factual comparison are clear. The basis of any serious or scientific analysis is that if facts and theory do not coincide it is the theory that has to be abandoned, not the facts suppressed. This is equally expressed in the Chinese dictum “seek truth from facts.” Anti-scientific “dogmatism” consists of clinging to a theory even when the facts contradict it.

Despite this requirement for factual study, supporters of the Washington Consensus appear to dislike making systematic factual comparisons of the two development approaches. The reasons for this will become evident from the data below. This shows that China’s “socialist development strategy” far outperforms the Washington Consensus. The emphasis placed by China on development strategy and its socialist orientation has obvious implications for other countries.

The term “Washington Consensus” was first coined in 1989 by U.S.-based economist John Williamson – although the actual practical policies were commenced in the late 1970s/early 1980s. The Washington Consensus is a classic form of neo-liberalism. It advocates in terms of economic policy privatization and minimization of the state’s economic role. Its social policy may be described as “trickle down” – a belief that if there is economic growth all layers of society will automatically benefit as the benefits “trickle down” from the richest to poorest. Legally the Washington Consensus states that the overriding goal is the strongest guarantee of private property. Politically, although claiming to be neutral, this combination of policies evidently favours capitalist and conservative political parties.

China’s “socialist development strategy,” which commenced with its 1978 economic reforms, is radically different in its entire framework, and directly counter-posed on key policy issues. China used, in Xi Jinping’s phraseology on economic policy, both the “visible” and the “invisible hand” – not simply the private sector but also the state. Indeed, in China itself, as the Communiqué of the Third Plenary Session of the 18th Central Committee of the CPC stated: “We must unswervingly consolidate and develop the public economy, persist in the dominant position of public ownership, give full play to the leading role of the state-owned sector.”

..

In social policy China, in line with its socialist approach:

  • undertakes conscious programs deliberately aimed at eradicating poverty – these are to be completed in the 13th Five-Year Plan by 2020 by lifting the remaining 70 million people out of poverty;
  • deliberately promotes development through urbanization as a way of moving the population into higher productivity economic sectors;
  • deliberately seeks to narrow the income gap between rural and urban areas;
  • does not rely exclusively on “the market” but deliberately uses state infrastructure spending to raise the economic level of its less developed inland provinces;
  • legally guarantees private property but a key economic role is assigned to the state sector;
  • is politically socialist

China’s Upcoming Communist Party Congress Will Formalise ‘Xi’ism’

John Ross. August the 30th.

Xi Jinping is therefore the first Chinese leader facing a simultaneous combination of China’s transition to a high-income economy with low Western growth. This combination, therefore, produces China’s new policy configuration – ‘Xi’ism’.

Xi Jinping’s organisational position was already consolidated by his official designation as the ‘core’ of China’s leadership. But the previous most powerful leaders of China, Mao Zedong and Deng Xiaoping, are also officially designated in terms of their analysis of the periods of their leadership in terms of ‘Mao Zedong thought’ and ‘Deng Xiaoping theory’. It is therefore likely that China’s Communist Party Congress will also ideologically and in policy terms formalize Xi Jinping’s position in terms of what amounts to Xi’ism.

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Written by Andrew Coates

September 8, 2017 at 12:03 pm

8 Responses

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  1. The political collapse is now total. The material is indistinguishable form Chines Government propaganda.

    Colin

    September 8, 2017 at 12:47 pm

  2. He has been posting this stuff ad nauseam on Facebook, hence this post….

    Andrew Coates

    September 8, 2017 at 4:19 pm

  3. It’s a bit much to describe China’s development as “socialist” but it’s pretty reasonable to describe it as a genuine and superior alternative to the standard Washington Consensus neoliberal development strategy that Ross contrasts it with. But really that’s just saying that a state-led developmentalist capitalist political economy is significantly better than a neoliberal capitalist economy.

    aciddc

    September 8, 2017 at 4:35 pm

  4. Andrew. Most of the time you are great and then you descend into this crap. You’re like a defrocked Jesuit who just can’t leave it all alone.

    Dave Roberts

    September 8, 2017 at 7:58 pm

  5. I have read Thomas Aquinas, and a fair bit of Saint Augustine….

    Andrew Coates

    September 9, 2017 at 11:09 am

  6. It all boils down to how you define ‘socialist’, what distinguishing features you think are needed for a person, ideology, party, movement or state to deserve the label. There’s no consensus on the question. Define it one way, and China can count as ‘socialist’, define it another way, and it cannot. Personally, I don’t think the label is very useful when trying to make sense of Chinese economic development since 1978, although the question ‘what part do socialist ideas play in shaping the economic model being developed in China?’ is potentially quite interesting.

    Francis

    September 9, 2017 at 11:53 am

  7. People will sing the praises of whoever is paying them.

    IainF

    September 9, 2017 at 1:39 pm

  8. You can call it whatever you like, socialism is not a word most people would choose, but China is hardly either free, equalitarian or classless.

    To cite Monthly Review, a journal which was has a pro-Chinese element at one time, and which published this important debate in 1978,

    The State of Official Marxism in China Today. by David Kotz 2007.

    “The positions put forth by the participants in this conference provide an interesting window into the ideological struggle over the direction of social change in China. They illustrate the ways in which Marxist language and Marxist propositions, intermixed with ideas drawn from mainstream Western neoclassical economic theory, are used today in China to support the completion of China’s shift to private property and a market economy. Below I will reproduce some of the statements and positions voiced (and written) at this conference. But first some background information will help to place the statements in their historical context.

    The supporters of the proposed property rights law were arguing that further economic progress in China required that private ownership of business enterprises and other assets must be made more secure. To achieve this end, a new law was needed specifying, and more importantly guaranteeing, the rights of owners of private property.

    Critics resisted the proposed new law, charging that it represented a step toward abandoning the socialist system. They argued that guaranteeing private property rights, and elevating them to the same level as public property rights, would undermine the key role of state owned enterprises (SOEs) in a socialist system. To make matters worse, critics charged, the new law could potentially even safeguard the ownership claims of those who ended up in control of former SOEs that had been privatized through a corrupt insider deal.2 This would encourage further fraudulent privatizations of SOEs. Further, they argued, it would legitimize the exploitation of labor which occurs in private enterprises.

    Such political debates are normally difficult to observe in China. This debate had been taking place in various locations in Chinese society, including academic institutions and various Communist Party and state institutions. The above conference provided a way for an outsider directly to observe, and even participate in, this debate.

    The main sponsor of the conference was a little-known bureau of the Central Committee of the Chinese Communist Party (CCP) called the Central Compilation and Translation Bureau. The conference was cosponsored by the Rosa Luxemburg Foundation of Germany, which is attached to the Party of Democratic Socialism. The latter is descended from the Communist Party of the former German Democratic Republic.

    While there were a few foreign participants, most were from China. The Chinese participants included professors from various Chinese universities, researchers from the Academy of Social Sciences, and some party and state officials. Among the latter there was one from the Development Research Center of the State Council, which provides policy advice to the prime minister, and one from the Central Party School. The foreign participants were quite diverse intellectually and politically, with most of them selected by the Rosa Luxemburg Foundation. I am known in China as a critic of neoliberalism in general, and privatization in particular, and I was invited to present a Marxist analysis of ownership and property rights in the United States that might be relevant to the property rights and privatization debate in China.

    It has long been commonplace to read in the mainstream media that political debates in China are typically conducted, not just behind the scenes, but in a kind of Aesopian language. In this conference Marxism was the official language of discussion, at least for the Chinese participants. Despite the enormous transformation of China’s economic and social system since the beginning of what is called the “market reform and opening” in 1978, a kind of “official Marxism” remains the formal state ideology and the language for discussion of economic issues. Thus, most of the Chinese speakers at this conference, whichever side of the debate they were on, couched their views in Marxist language and often used traditional Marxist propositions to buttress their claims. However, Western neoclassical economic thought has become dominant in the leading economics departments at universities in China, and in many cases it was neoclassical ideas that underlay the comments of the speakers, whatever the language used to express them.

    A final relevant piece of background information concerns the class structure of China today and its relation to the CCP. Originally membership in the CCP was open to workers, peasants, and intellectuals. The rapid development of private business starting in the early 1990s created a class of indigenous capitalists who, while wealthy and increasingly influential, were at least officially barred from membership in the ruling CCP. Then a few years ago, after a sharp political struggle, the CCP membership rules were changed to open membership to “entrepreneurs.” Reverberations of that political battle, as well as the one over property rights, could be heard in some of the conference presentations.

    Readers can now appreciate the remarkable statements and positions put forward by various participants in this conference. In a few cases I provide a direct quotation, but most of the statements below paraphrase the main theses or points made by various Chinese speakers at the conference. Each statement below was made by at least one Chinese speaker, and some were repeated, with variations, by several speakers. In some cases I have added interpretive or clarifying comments in brackets. I begin with statements by participants who favor the current direction of social change in China—which represented the vast majority of speakers—and end with pronouncements by the few who either oppose China’s march to capitalism or are at least resisting the distortion of Marxism to justify that march.
    Statements and Themes from the Conference

    When an SOE is turned into a joint stock corporation with many shareholders, it represents socialization of ownership as Marx and Engels described it, since ownership goes from a single owner to a large number of owners [among others, this was stated by someone from the Central Party School].
    If SOEs are turned into joint stock corporations and the employees are given some shares of the stock, then this would achieve “Marx’s objective of private ownership of property.”
    In dealing with the SOEs, we must follow “international norms” and establish a “modern property rights system.” [As in the Soviet Union and Eastern Europe at the end of the 1980s, the terms in quotes were euphemisms for capitalist norms and capitalist property rights.]
    Enterprises can be efficient in our socialist market economy only if they are privately owned. [This statement, voiced by several people, comes directly from Western “neoclassical” economic theory.]
    SOEs exploit their workers and are state capitalist institutions, and SOEs often have a very high rate of exploitation. [The point was that privatizing SOEs will not introduce exploitation or capitalist relations since both are already present in SOEs.]
    The nature of ownership of the enterprises has no bearing on whether a country is capitalist or socialist. Enterprises should always be privately owned and operated for profit. What makes a country socialist is that the government taxes the surplus value and uses the proceeds to benefit the people through pensions and other social programs. [Along with justifying privatization, this implies that, as China’s economy becomes much like those of the United States and Western Europe, China is not abandoning socialism since, by this definition, all of the industrialized capitalist countries are actually socialist.]
    The United States has companies with millions of shareholders, which is a far more socialized form of ownership than anything that exists in China.
    “[After the Second World War] Capitalism not only gave up its fierce antagonism to labor, but even began combining with labor….Modern capitalism…is gradually creating a new type of capitalism that is more like socialism.”
    The CCP followed the correct approach, in line with classical Marxism, during the period of New Democracy [i.e., the period directly following the 1949 liberation, when the party said it was completing the bourgeois democratic revolution but not yet trying to build socialism]. The change in policy after that period [when the party shifted its aim to building socialism] was an error, and instead the New Democracy policy should have been continued. [This was spookily similar to the widespread argument in Moscow in 1989–91 that the Soviet Communist Party should have stayed with the New Economic Policy of 1921–27, which called for a mixed economy with a significant role for private business and with market forces playing the main coordinating role.]
    Besides current labor and past labor [the latter the Marxist term for the labor required to produce the means of production], there is a third type of labor, namely “risk labor.” Marxist theory should take account of this third type of labor, which is expended by those who take risks through entrepreneurship. [The obvious point was that “entrepreneurs,” i.e., capitalists, are a type of worker, and hence it is correct that they are allowed to join the Communist Party.]

    https://monthlyreview.org/2007/09/01/the-state-of-official-marxism-in-china-today/

    Andrew Coates

    September 9, 2017 at 4:29 pm


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