Book review: Samir Amin – The Long Revolution of the Global South

A slightly modified version of this article first appeared in the Morning Star on 25 June 2019.

The first volume of Samir Amin’s memoirs, A Life Looking Forward: Memoirs of an Independent Marxist, was first published over a decade ago, in 2006. It dealt primarily with his early life and the experiences that contributed to his intellectual formation and the major ideas with which he is associated: the critique of Eurocentrism; the notion of the ‘long transition to socialism’; and his insistence on ‘delinking’ from the imperialist triad of the US, Europe and Japan.

This second (and final) instalment, published now a few months after his death, combines a reiteration of Amin’s key political ideas with a whirlwind tour of the dozens of countries he visited – from Algeria to Zambia, and including many places one doesn’t hear about often enough: Mauritania, Benin, Mali, Senegal, Western Sahara, Peru, Haiti, the Dominican Republic, Madagascar, Mongolia, Niger, Nepal and East Timor.

Sometimes an advisor to the government, sometimes a guest lecturer, and sometimes just visiting friends, Amin always sought out the local movements working for progressive change, be they part of socialist or radical nationalist states or underground groups fighting for liberation. As such, the reader is introduced to a dizzying array of fascinating people and important ideas from around the world. The book gives a flavour of the state of politics across the continents (with a particular focus on Africa, Asia and Latin America). In particular, the reader gets a feel for the innumerable challenges and contradictions involved in the process of building towards socialism in a hostile world.

A recurring theme in the the book is the idea of responding to capitalist globalisation with a globalisation of struggle. This concept is all the more urgent in a context where long-established networks of solidarity are being (or have been) broken down, the result of fragmentation of production, sustained attacks on unions, casualisation of labour, and the replacement of certain branches of productive labour by automated processes. Amin calls on the global progressive movement to take on board the Occupy movement’s slogan of “We, the 99 percent”, recognising both the diversity and common fundamental interests of “the new generalised proletariat” in order to unite a broad array of forces: workers (including ‘informal’ ones), peasants, critical intelligentsia, and the progressive elements among the middle classes.

Amin notes that Latin America – led by Cuba and Venezuela – has taken the lead in this project. “The movements that have mobilised there are not small, marginal organisations or movements limited to the middle classes. There are large, popular (in the good sense of the term) movements, leading into action masses of people counted in the millions. That is what I call a revolutionary advance.”

Amin also reminds us of the number one priority for progressive forces throughout the world: “defeating the US project for military control of the planet.” This project of US global hegemony specifically aims to divide and rule those countries outside the imperialist triad. All the more important therefore that we promote the closest possible coordination between China, Vietnam, Russia, India, and the progressive states of Africa and Latin America. Writing elsewhere, Amin puts forward a straightforward proposal: “Russia should unite with China, the Central Asian countries, Iran and Syria. This alliance could be also very attractive for Africa and good parts of Latin America. In such a case, imperialism would be isolated.”

Having witnessed the radical nationalist projects in both Egypt (in the Nasser era) and Algeria at close quarters, and seen their successes and weaknesses, Amin proposes ‘democratisation’ as a key measure for sustaining progressive projects and allowing them to develop in a socialist direction. This democratisation means constantly pushing to engage more people in the organisation of society; it means constantly struggling against corruption, alienation and bureaucratisation; it means serving the masses and putting their needs first. Amin distinguishes democratisation, a continuous and complex process, from the simplistic idea of democracy that’s promoted by the major capitalist countries: a plutocratic “low-intensity democracy” where multiple parties represent the same (capitalist) class interests. This all too easily “turns into farce and runs a serious risk that the struggle for democracy will lose legitimacy.”

The Long Revolution of the Global South is a captivating and endearing read that will spark the interest of all those interested in the worldwide struggle for socialism.

The Importance of Defending Venezuela

Most governments in the world enjoy precious little popular support. For example, when British prime minister Theresa May was forced to announce her resignation in May 2019, the masses didn’t rush out to the streets to declare their undying fealty; more like, the ground shook with the simultaneous muttering of the words “good riddance” from millions of homes and workplaces throughout the country.1 It may then have come as a surprise to some when, in early 2019, millions of ordinary Venezuelans – working people, peasants, students, barrio-dwellers – flocked to the streets to defend their elected government from an attempted coup.

Their appearance was a response to the little-known Venezuelan politician Juan Guaidó declaring, on 23 January, that he was the legitimate president of Venezuela.2 His announcement was particularly curious given that the Venezuelan presidential election had taken place just eight months previously and his name didn’t even appear on the ballot paper. Although Guaidó’s claim to the presidency had all the credibility of the average new-age mystic’s claims to divinity, the governments of the US, UK, Canada, Brazil, Colombia and the majority of the EU countries were quick to recognise his authority.

Guaidó had pinned his hopes on winning the support of key figures in the military and significant sections of the working classes. The latter in particular have suffered badly over the last few years, the result of sanctions, US-directed economic destabilisation and low oil prices. It was perhaps not total fantasy that they might lend their support to anyone that promised a way out of the current mess; to someone who had the ‘connections’ necessary to call off Washington’s attack dogs. Such blackmail tactics are nothing new. They’ve been used around the world, from Nicaragua to Zimbabwe, occasionally with some success. If you suffocate someone and then promise to let them breathe, there’s at least a decent chance they’ll accept whatever strings you attach.

However, the Venezuelan masses didn’t follow that script. Just as they did in April 2002 – when Venezuela’s business class joined forces with the yellow CTV union to seize power – the people of the barrios (shanty towns), the low-paid workers, the tenant farmers, the Afro-Venezuelans, the indigenous, the women, the LGBTQ+ coordinated with the military in order to defeat the coup and to defend their revolution.3

This says something important about the nature of the ongoing political struggle in Venezuela. It shows that the radical governments of the last two decades have achieved something very significant that goes beyond the economic benefits accrued to ordinary people, beyond the millions of homes built, beyond the provision of healthcare and education services. What has been created in Venezuela isn’t just a benevolent state; it’s a democratic revolutionary process that has given the working masses a voice, a stake in society. This process has politicised the millions, mobilised them, empowered them, drawn them for the first time into the running of their own society. It has taken up their interests and developed structures that allow them to take up their own interests. That’s why millions of Venezuelans defend their state even as it faces a level of systematic sabotage and destabilisation that’s creating widespread suffering.

This article explores the significance of the Venezuelan revolutionary process and the crucial importance of defending it for socialists around the world.

A path to socialism in the 21st century

Analysing the experiences of the Paris Commune of 1871, Marx started to develop his ideas around the political framework needed for building socialism, famously noting that “the working class cannot simply lay hold of the ready-made state machinery and wield it for its own purposes”.4 That is, the capitalist state is set up specifically to preserve capitalism; it is in essence just a “committee for managing the common affairs of the whole bourgeoisie”5, and therefore the working class and its allies will have to replace it with their own state, one designed to preserve and build socialism. This is precisely what the oppressed masses of Russia, Vietnam, Korea, China and Cuba did.

The advantages of stripping the capitalist class of its power are clear enough. Given a state set up to defend private property, capitalists can easily find ways to re-consolidate their power even when they find themselves occasionally having to cope with left-wing governments. The experience of Salvador Allende’s government in Chile (from 1970 to 1973) provides some of the strongest evidence in support of Marx’s theory of the state. Allende was a Marxist; his Popular Unity government aimed to build a society organised in the interests of workers and peasants. After several attempts, he won the presidential election in 1970, and the country was quickly swept up in an exciting and all-encompassing democratic process, nationalising the copper mines, tackling inequality and oppression, and inspiring millions of people to get involved in building a new Chile.

From the moment of Allende’s election, the US intelligence agencies worked with the Chilean elite to try and prevent his being inaugurated, and then worked systematically for three years to destabilise the country at every level. US president Richard Nixon ordered the CIA to “make the economy scream”6 in order to unseat Allende. The bulk of the leadership of the armed forces, inherited from 150 years of plutocratic rule (and colonial Spanish rule before that), aligned themselves with the old ruling classes and, with the backing of their friends in the US, conducted a coup against Allende. Thousands of leftists and trade unionists were murdered, and a brutal capitalist dictatorship was installed.

Many concluded from the Chilean experience that the only path to socialism was, after all, “the forcible overthrow of all existing social conditions”7 and the establishment of a workers’ state – a dictatorship of the proletariat. After all, Allende was overthrown by the capitalist state that he was putatively in charge of. The counterfactual, then, is that if Allende had led an armed revolutionary movement and had been able to “break up, smash the ready-made state machinery”,8 Chile could have remained on the socialist path.

Which would be all very well, but for the non-trivial problem of forcibly overthrowing capitalist states, which is harder than it sounds.

The period from the late 1960s to 1980 witnessed the victory of liberation movements in Vietnam, Laos, Cambodia, Mozambique, Angola, Guinea Bissau and Zimbabwe and elsewhere, as well as socialist-oriented revolutions in Nicaragua, Grenada, Afghanistan, Somalia, South Yemen and Ethiopia. The earlier part of that period also saw an upswing of radical activism in the west. Those years can reasonably be considered the end of the first wave of socialist advance. The ensuing two decades were characterised mainly by retreat: the decline and fall of the Soviet Union and its European allies;9 and the emergence of neoliberalism as the hegemonic global economic system. The socialist movement lost its first revolutionary base area. Unions and traditional networks of solidarity were broken down. Workers became ever more atomised. Even the limited social democracy constructed in much of the capitalist ‘west’ came under attack from deregulation, privatisation, de-unionisation and generalised marketisation.

The Global South meanwhile was subjected to abhorrent ‘structural adjustment’, putting an end to decades of slow but steady improvement in living standards.10 In the handful of socialist countries that survived the counter-revolutionary juggernaut of 1989-91, survival required tough choices that seemed to run against the natural trajectory of socialism: the expansion of market forces and foreign capital in China,11 and opening up to mass tourism and tourist-related small business in Cuba.

In the same period, imperialist states leveraged the technological revolution to bolster their defences against political revolution. Military and surveillance technologies advanced (and continue to advance) rapidly, and the techniques of political propaganda reached extraordinary new levels of sophistication, making Orwell’s cliched portrayal of a Soviet 1984 look positively quaint. In 1917, the Bolsheviks were able to win power because Russia was, in Lenin’s words, the wooden link in an iron chain.12 Today’s chain is made of hardened steel, and it’s the iron link that’s the weak one.

This is the context in which Venezuela’s Bolivarian Revolution should be understood. In a time of hopelessness, a time of neoliberal domination, a time of socialist defeat and the “end of history”13, a time of brazen military attacks on countries that refused to conform to the Washington Consensus, Venezuelan revolutionaries found a way to break the chain, to capture power – albeit partial and heavily contested – and to start along the road to socialism.

While they had finally arrived in government through similar means to Allende’s Popular Unity (with Hugo Chávez winning the 1998 presidential election), their initial hold on power was much less tenuous as a result of the government’s support by much of the military. Chávez often stressed that the revolution had the means to physically defend itself. “I warned the Venezuelan oligarchy and the counterrevolutionaries not to make the mistake of believing that this peaceful revolution is an unarmed revolution. We are peaceful, but we are armed.”14 Victor Figueroa Clark notes in his biography of Allende that while the progressive states of modern-day Latin America do face many of the same challenges Chile did, they’ve been able to analyse the weaknesses of that process: “Success in overcoming these challenges has owed much to lessons learned from Allende’s overthrow”.15

Another aspect of building self-defence capacity has been the work done by the Venezuelan government over the course of 20 years to democratise society; to engage people in politics, to construct organisations of popular power, and to develop a legal framework that privileges the needs of ordinary people. The recently deceased Chilean political scientist Marta Harnecker16 observes, for example: “It is probable that Venezuela is the only country which has a ministry devoted to participation: the Ministry of Popular Participation and Social Development, which was created in mid-2005. One of its principal objectives is to remove obstacles and make it easier for there to be popular participation from below throughout the country.”17

From around 2005 onwards, the Bolivarian Revolution has been explicitly socialist in its direction. Highlighting the significance of Hugo Chávez’s speech at the World Social Forum in January 2005, at which Chávez first announced that his goal was to build socialism, Iain Bruce writes: “All of a sudden, here was a process that openly and deliberately claimed it was aiming for socialism. And that was something nobody in a similar position had dreamed of saying since long before the collapse of the Soviet bloc a decade and a half earlier… As such Venezuela has become the laboratory for a new cycle of revolutionary theory and practice.”18

In forging this path, Venezuela’s revolutionaries have played a crucial role in kicking off the second wave of socialist advance. The Bolivarian Revolution was the first sustained experiment in the construction of working class power in several decades. Moreover, its journey towards socialism has been combined with an insistent internationalism that sought the broadest possible anti-imperialist unity on a global scale. Venezuela has thus moved from the capitalist periphery – as a supplier of petroleum and beauty queens – to the socialist centre – as a supplier of inspiration and essential experience.

Why Venezuela?

Venezuela in the late 1980s and early 1990s was a country on the edge. Known for the extravagant tastes of its upper classes – the “Saudis of Latin America”, soaking in the country’s abundant oil reserves – Venezuela was one of the most unequal societies on the planet, and this inequality was getting worse by the day as a result of ruthless neoliberal policies.

In early 1989, then president Carlos Andrés Pérez announced a series of harsh austerity measures, including a 100% increase in the price of gasoline, an end to food subsidies, and price increases for electricity, water and other basic services. A few days later, the powderkeg of profound poverty, inequality and alienation exploded in the Caracazo, a mass rebellion in which the capital’s barrios rose up in response to an overnight hike in bus fares.19 This was “the most spectacular demonstration of a series of ‘IMF riots’ or ‘bread riots’ of the 1980s and early 1990s”.20 US-based political scientist George Ciccariello-Maher, author of We Created Chávez: A People’s History of the Venezuelan Revolution, writes that the Caracazo “was a full-scale insurrection whose participants stared revolution in the face only to suffer the crushing reply of the state’s iron heel.” Although it was violently repressed, “the Caracazo sounded the death knell of the old system, simultaneously reflecting and contributing to the inevitability of its collapse and thereby setting into motion the entire process that came after.”21

The Caracazo didn’t come out of nowhere. Spontaneous as it was, it was also connected to revolutionary networks of various kinds, some of which had operated for many decades.22 Some level of formal capitalist democracy had existed in Venezuela since 1958, when the military dictator Marcos Pérez Jiménez (backed to the hilt by the US, of course) was overthrown. The democratic system that replaced the military dictatorship was, well, not very democratic. The two major parties, Acción Democrática and COPEI (Independent Political Electoral Organisation Committee), coordinated from the beginning to ensure the frictionless rule of big business, lubricated by the sharp repression of any forces of the left. Venezuela “increasingly became a showcase for a mildly reformist, yet stridently anticommunist government that served as a trusted US ally during the Cold War.”23

The repression against the Communist Party and the various organisations of radical workers and students led to armed insurrection. Throughout the 1960s, communist groups took up guerrilla warfare against the government, for a while united in a single organisation: the Armed Forces of National Liberation (FALN). The guerrilla movement didn’t succeed in its aim of overthrowing the state, although it did carry out some wonderfully audacious actions, including the kidnapping of United States Air Force lieutenant colonel Michael Smolen in an attempt to prevent the execution of the captured Vietnamese liberation fighter Nguyễn Văn Trỗi.24 By the end of the 1960s, the movement was “utterly divided, isolated from any serious mass support, and confronted a repressive state that enjoyed ever-increasing levels of legitimacy.”25 Apart from anything else, a China-inspired rural guerrilla struggle found it difficult to take root in what was already a highly urbanised society (more than 70 percent of Venezuelans were living in cities by 1970).

In spite of the near-comprehensive collapse of the guerrilla movement, its traditions and many of its participants didn’t vanish. Ciccariello-Maher notes: “Those radical energies from below that had generated the guerrilla struggle to begin with, those demands of the popular masses that the new democratic regime was either unwilling or unable to meet, did not simply disappear into thin air. Instead, the ostensible failure of the guerrilla struggle gave way to a dispersed multiplicity of revolutionary social movements, and former guerrillas themselves courted ‘legality’ in a variety of ways, with both sectors twirling helically around one another in a constant struggle to both revolutionise the state and avoid its tentacles.”26 These radical movements took root in poor urban communities and in industry, breaking the stranglehold of the pro-capitalist trade unions (which functioned essentially as branches of Acción Democrática).

So there was a diverse, experienced and creative left in Venezuela, with strong connections to the masses. With the emergence of Chávez as a nationally-known figure in the aftermath of his leadership of a failed military coup in 1992,27 many of these streams coalesced into a broad movement for change. After the election victory of 1999, many radical leaders – including several former guerrilla fighters – became key figures in the government.

Another important and surprising component of the Venezuelan left was to be found in the armed forces, which had several influential socialist and radical nationalist cells. Venezuelan academic Miguel Tinker Salas explains that “Venezuela’s military differs from similar institutions in Latin America that had been the sole domain of the landed or political elites: throughout much of its twentieth-century history, its officers and noncommissioned personnel have been drawn from diverse socioeconomic sectors of the population. The military provided many of these young officers a way to climb the social ladder. In the military they found like-minded colleagues who expressed concern about the direction of the country and the corruption evident in the political class.”28 Hugo Chávez himself, a man of decidedly humble origins, of mixed African and indigenous descent, reached the position of lieutenant colonel in the Venezuelan Army.

Throughout the 1970s and 1980s, recognising the unusual nature of the Venezuelan military, revolutionary groups thought of forming a ‘civic-military union’ to overthrow the existing order. This is the milieu in which Chávez developed his ideas. His older brother Adán was involved with the Party of Venezuelan Revolution (PRV), one of the parties that arose from the ashes of the guerrilla movement, led by Douglas Bravo.29 Chávez for a time held regular meetings with Bravo, who later became (as he is now) an ultra-left critic of the Bolivarian Revolution. As Richard Gott puts it, “Chávez did not emerge from a vacuum. He was the heir to the revolutionary traditions of the Venezuelan left.”30

These then were the key objective factors that contributed to Venezuela being able to take the lead in the second wave of socialist advance: stark poverty and widening inequality; the hegemony of neoliberal economics; widespread frustration at decades of corrupt, phoney democracy; the existence of a capable and experienced radical left; and the existence of a progressive trend within the military. Thus an environment existed in which a social transformation was possible. It then took the creative genius, courage, determination, energy and compassion of Hugo Chávez to develop a specific programme – rooted in pro-poor radical nationalism – that could win over a popular majority.

A society run in the interests of the masses

The struggle for dignity is called Bolivarianism in Venezuela; in Cuba, this struggle is called socialism. (Fidel Castro)31

Is Venezuela a socialist country? It’s a complex and contested question, since not everybody is agreed on what socialism is and there’s no accepted set of measures for defining a given society as officially ‘socialist’. Most people agree that Cuba is socialist and that the US isn’t; between those points lies debate and controversy. What we can usefully say is that Venezuela is moving in the direction of socialism; it is undergoing a process of democratisation, through which power is increasingly wielded by, and in the interests of, working people rather than the owners of capital. Definitional problems aside, this is surely the important thing: the direction of travel, towards “liberation from imperialist domination, the construction of the unity of the peoples of Latin America, and the establishment of genuine democracy that serves its workers.”32

The central focus of the Venezuelan state is to improve the lives of its people: to eliminate poverty, to improve access to education and healthcare, to engage people in the organisation of their own lives, to make dignified housing available to everybody, to tackle all forms of discrimination, and to position Venezuela within a rising multipolar system that rejects imperialism. Its government has broken with free market fundamentalism, and has supported public and cooperative ownership. It is friendly to trade unions and social movements, and it works to empower workers, peasants, indigenous people, Afro-Venezuelans, women and youth. It is, in short, a society run in the interests of the masses.

The major class base for the Venezuelan government is the poor majority, “hitherto disorganised, effectively out of reach of traditional politics”.33 The most numerous element is the non-privileged working class, typically living in barrios and working in the informal sector. This is the section of the population that had been persistently ignored by Venezuelan governments and indeed by the wider world. Prior to 1999, such workers had not been unionised, and had only limited access to basic services. In addressing itself primarily to this section of the working class, the Chávez government broke with Latin American Marxist orthodoxy, which had tended to focus on either the industrial working class or the peasantry (according to circumstances and/or ideology). Furthermore, the Venezuelan state has allied itself with all oppressed groups and popular struggles: for racial and gender justice, for indigenous rights, to end discrimination against LGBTQ+ people, to conserve the environment. As such, it has become a powerful political tool of all the oppressed.

The Chavista conception of socialism is, in the words of Marta Harnecker, “a new collective life in which equality, freedom, and real and deep democracy reign, and in which the people plays the role of protagonist; an economic system centred on human beings, not on profits; a pluralistic, anti-consumerist culture in which the act of living takes precedence over the act of owning.”34 This is what Venezuelans, in the face of great difficulty and resistance, are building.

As an aside, it’s worth discussing the fact that Chávez didn’t always present the Bolivarian Revolution as being ‘socialist’; the process was above all ‘Bolivarian’. For all the things he was, Simón Bolívar (the leader of Venezuela’s independence war of the early 1800s and an insistent proponent of Latin American unity) could not reasonably be described as a socialist. But Chávez recognised that, at least in the late 1990s, ‘socialism’ was a dirty word for most Venezuelans. “In those days even the left hid the socialist banner,” Chávez said. “Almost no movement on the left in the Americas, with the exception of Cuba, lifted this banner. The big parties of the left distanced themselves from the socialist project and the word itself disappeared from the political lexicon.”35 In the figure of Bolívar – Venezuela’s national hero – Chávez saw the opportunity to get people on board with a progressive project on the basis of continuing Bolivar’s work, that is, completing the national democratic revolution, shaking off the domination of foreign powers (Spain in Bolívar’s time, the US in Chávez’s time), and working towards continental solidarity and unity. Leveraging Bolívar’s legacy was controversial in some quarters. Veteran journalist and Latin Americanist Richard Gott writes that most Marxist writers perceived Bolívar as “a typically bourgeois figure whose actions had only served the interests of the emergent imperial power of the time… For years, this caricature portrait of Bolívar as an imperialist stooge effectively precluded the left from examining his more positive characteristics.”36 However, Chávez instinctively understood the value of Bolívar’s legacy for uniting the largest possible section of the population around progressive goals. Crucially, the bulk of the military were much more immediately favourable to Bolívar than to Marx.

In economic terms, Venezuela has developed an alternative model of a mixed economy that rejects neoliberalism and incorporates socialist concepts. From very early on in the Chávez presidency, Venezuela emphasised close coordination with other oil producers in order to raise global oil prices, which it then used to fund radical social programmes with unprecedented reach.

The poverty rate in 1999 was in the region of 50 percent.37 Extreme poverty was around 20 percent. Within a few years, overall poverty was halved, and extreme poverty reduced to 5 percent as a direct result of government interventions. Miguel Tinker Salas observes that the massive public social investment, much of it carried out via a series of misiones (missions), “has had a significant impact on the lives of millions of people in Venezuela. The missions have been funded with the profits generated from PdVSA [Petróleos de Venezuela, the Venezuelan state-owned oil and natural gas company]… The revenue the government allocates for social spending has increased dramatically in the last decade, upwards of sixty percent according to some estimates. The number of missions has increased significantly to over twenty-five different programs, addressing health, literacy, education, sports, identity, land reform, senior citizens, the indigenous, culture, music, children, pensions, and energy, among others.”38

As part of the Barrio Adentro mission, several thousand clinics and diagnostic centres have been built to provide medical services to poor communities that previously had no such access. (This programme has been constructed with the assistance of thousands of Cuban doctors, whose services are paid for with cut-price Venezuelan oil).39 In more recent years, Barrio Adentro has been expanded to provide a more integrated healthcare approach, including exercise facilities and nutrition classes. According to Richard Gott, “the scale of Barrio Adentro was something entirely new. I visited several of these Cuban-run health centres in 2003 and 2004, in both town and country, and the enthusiasm and commitment of the Cubans and their warm reception by local people were clear indications of the forward march of the revolution. Many of the Cubans had already had experience of working in Third World countries – in Haiti and Honduras, in the Gambia and Angola – and this was their first chance to see a Latin American society so dramatically divided between rich and poor. They provided a local health service twenty-four hours a day, week in week out, and had soon become a familiar institution in the localities.”40

Misión Robinson deployed a network of instructors to teach literacy to the over one million adults that were illiterate in 2003. Just two years later, Unesco declared Venezuela as a “territory free from illiteracy”.41 Per capita spending on education increased 51 percent between 2003 and 2007.42 Millions of children have been provided with free laptops, running a customised version of Linux developed by the Venezuelan government, in line with its embrace of open source software.43

The housing mission – Misión Vivienda – was launched in the early 2000s to address Venezuela’s housing crisis, building hundreds of thousands of housing units in integrated housing zones with education and healthcare facilities. According to the most recent estimates, 2.3 million homes have been built (Venezuela has a population of 32 million).44 These apartments are typically sold to families with long-term low-interest rates of credit.

An array of businesses have been nationalised,45 and there have been numerous experiments with worker management and collective ownership.46 PdVSA has been brought under strict government control. Grassroots communal councils have been set up across the country with a view to engaging the masses and building a more meaningful democracy.47 Ciccariello-Maher writes that local communal councils started to be established throughout Venezuela in 2006. “Within one year, 18,320 communal councils had been established, and that number has since exceeded 40,000. According to the 2006 law, these councils seek to ‘allow the organised people to directly manage public policy and projects oriented toward responding to the needs and aspirations of communities in the construction of a society of equity and social justice’”.48 The result has been a remarkable democratisation. “A whole section of Venezuelan society, the poor in general but in particular the urban poor of the Caracas hillsides, several millions of people who had been buried in silence, obscurity and neglect, have suddenly ‘emerged’ from the shadows and established themselves as actors, as protagonists both of their own individual stories and of the nation’s collective drama.”49

The Venezuelan state is in the process of becoming a workers’ state. Its leadership has not been in a position to dismantle the capitalist state, but it is gradually reducing its scope whilst building up a socialist alternative.

The Egyptian Marxist Samir Amin reflected on his trips to Venezuela and the differences between the pre-Bolivarian and Bolivarian eras:

I found a country that had nothing in common with the one I had known. A true social revolution — it is not excessive to say so — had occurred in the sense that, finally, we could see Indians, blacks, and mixed race people —the majority of the population — elsewhere than in the street! Until the arrival of Hugo Chávez, all the powers in the country were reserved for the whitest of the white, strictly European in origin. This change is not, in my opinion, of secondary significance. It is the proof that political power (but nothing more, understand) has passed to the representatives of the Venezuelan people as it really is. It is the proof that the Chávez government is not that of some soldier — one of mixed race, at that — but the result of a real mass movement… That is what I call a revolutionary advance.50

Nicolás Maduro, interviewed by the BBC, recently outlined his government’s key objectives: “We are in a battle … to reduce poverty, misery, to increase job capacity, to establish a social security system to protect 100% of our pensioners, to establish a public health system that reaches all the Venezuelan population… We have made a commitment between 2017 and 2025 to reach a state of zero poverty and we are going to accomplish it.”51

Reflecting on the Venezuelan state’s priorities, actions and support base, it’s clear that it is a socialist-oriented state, that is, it is moving in the direction of socialism. Its survival is therefore of obvious importance to socialists worldwide.

Integration in the global front against imperialism

Let’s save the human race – let’s finish off the empire (Hugo Chávez)52

The achievements of the Bolivarian Revolution in terms of the wellbeing of the Venezuelan people are impressive in their own right, but the revolutionary process in Venezuela also has a wider – global – significance that deserves attention. I have written in some detail on this subject,53 so I’ll stick to a brief overview here.

Hugo Chávez had a very clear and far-sighted worldview, informed by his rich knowledge of world history, his identification of US-led imperialism as the major obstacle to peace and development, and his own experiences of trying to exercise sovereignty and build Venezuelan socialism in the face of destabilisation and CIA-backed coup attempts. He saw Venezuela as part of a global movement challenging half a millennium of colonialism, imperialism and racism; a global movement that included China, Brazil, Russia, Zimbabwe, Libya, Syria, South Africa, Cuba, Belarus, Vietnam, Iran, Ecuador, Bolivia, DPR Korea, Nicaragua and elsewhere. This thinking is reflected in the internationalist outlook of the Venezuelan state from 1999 until the present day.

Venezuela is a leading proponent of multipolarity – “a pattern of multiple centres of power, all with a certain capacity to influence world affairs, shaping a negotiated order”.54 Chávez linked multipolarity to Simón Bolívar’s concept of regional unity: “Bolívar spoke of what today we call a multipolar world. He proposed the unification of South and Central America into what he called Greater Colombia, to enable negotiations on an equal basis with the other three quarters of the globe. This was his multipolar vision.”55

Recognising that maximum coordination is necessary in order to effectively stand up to US imperialist domination, the Venezuelan state has been at the forefront of the effort to build an organisational and economic structure for regional integration of Latin America and the Caribbean. This effort has included the creation of the anti-neoliberal trade agreement ALBA (the Bolivarian Alliance for the Peoples of Our America),56 the regional bloc CELAC (Community of Latin American and Caribbean States)57 and the trade bloc UNASUR (Union of South American Nations). This cooperation reached its high point in the late 2000s and early 2010s, when progressive governments were in power in Venezuela, Cuba, Brazil, Ecuador, Bolivia, Nicaragua, Argentina, Chile and Uruguay; these governments achieved an unprecedented level of coordination and cooperation. Unfortunately, efforts to promote regional integration have suffered severe setbacks in the last few years, particularly with the judicial coup against the PT-led government in Brazil58 and the about-turn of the Lenín Moreno government in Ecuador,59 alongside electoral reverses in Argentina and Chile. Argentina, Brazil, Chile, Colombia, Ecuador, Paraguay and Peru have now left UNASUR and set up an alternative, PROSUR, an initiative led by the US-aligned reactionary governments of Chile and Colombia.60

For decades a client state of the US, Venezuela in the last 20 years has focused on developing strong relationships with countries around the world, particularly those states that are amenable to mutually beneficial cooperation. Miguel Tinker Salas notes that, “in the past Venezuelan politicians seldom ventured from travel between Caracas and Washington, occasionally visiting New York and the United Nations, but never including Beijing, Moscow, Brasilia, Buenos Aires, and much less Tehran or Luanda, Angola on their itinerary. Now they do so frequently. Although the United States is still an important market for its oil, Venezuela no longer privileges relations with Washington, and instead promotes ties and pursues investments from countries as distinct as Brazil, India, Iran, Russia, and China.”61

Chávez clearly saw China in particular as a crucial partner in the struggle for a new world, visiting six times over the course of his presidency and forging close economic, diplomatic and political relations. In China, the Venezuelan leadership has found an inspiring example of what it’s possible for a developing country to achieve when freed from the domination of imperialism. Visiting Beijing in 2006, Chávez praised China for having converted itself from a “practically feudal” society into a world-leading economy in the space of a few decades. “It’s an example for western leaders and governments that claim capitalism is the only alternative. We’ve been manipulated to believe that the first man on the moon was the most important event of the 20th century. But no, much more important things happened, and one of the greatest events of the 20th century was the Chinese revolution.”62 The burgeoning political relationship has been matched in the economic sphere, with China providing billions of dollars worth of oil-backed loans,63 thereby allowing Venezuela to diversify its buyers and China to diversify its suppliers – key strategic goals in both cases. The extensive Chinese loans have been crucial in terms of financing Venezuela’s social projects.

Tinker Salas writes: “Hoping to strike a balance in its international affairs, Caracas endorsed economic arrangements with China, Cuba, Iran, and Russia, especially in areas such as health, telecommunications, auto manufacturing, oil explorations, and the production of machinery. The Chinese constructed and launched into space Venezuela’s two orbiting telecommunication satellites. Iran operates a tractor and car factory in the country and the Russians have become one of the leading arms suppliers of the Venezuelan military… As part of a policy to promote South-South relations, the country expanded diplomatic relations with most countries in Africa and in 2009 hosted the Africa-South America summit.”64

Beyond mutually beneficial economic relations, Venezuela has also provided strong diplomatic and practical support to liberation movements worldwide (for example Palestine65 and Western Saraha66), and has stood firm with those states in the direct crosshairs of western imperialism, most prominently Syria67 and Libya.68 Additionally, it has sought to build good relations with progressive forces in the imperialist heartlands, including with the London Assembly during Ken Livingstone’s tenure as mayor.69

A friend in need

“They choke us and they ask us, why are we suffocating?” (Nicolás Maduro)70

The Bolivarian Revolution in Venezuela is currently facing its biggest challenge to date, one that poses a mortal danger. In 2013 it was hit with two major blows: the death of Hugo Chávez and the collapse of international oil prices. Those two factors combined to create a fragile situation which the Venezuelan elite and its US backers sought to take advantage of.

Chávez’s untimely death was a terrible setback. To millions of Venezuelans, he embodied the revolution, and the whole process was defined to a significant degree by his vision, determination, boldness and charisma. Thankfully there are many capable leaders in the Venezuelan state, and 15 years in power was sufficient to develop a strong cadre at all levels of government. Chavismo has survived. Unfortunately oil prices have yet to substantially recover. Oil provides 90% of Venezuela’s export income and 50% of government revenues. Reduced fiscal income means reduced service provision, which leads to popular dissatisfaction. Steve Ellner remarks that “oil prices under Maduro have not only been low since 2014 but nosedived, just the opposite of what happened under Chávez. This is particularly problematic because high prices create expectations and commitments that then get transformed into frustration and anger when they precipitously drop.”71

Of course, the continued heavy reliance on petroleum income highlights the failure to date of the Venezuelan socialist project to meaningfully diversify its economy. The fact is that Venezuela has been a petro-state ever since the discovery of massive oil reserves in the Maracaibo Basin a century ago. The government can probably be criticised for not investing more in diversification during the decade or so when oil revenues were unusually high. Kicking the oil habit is unquestionably difficult, and may well require several more decades, but it will be indispensable to the survival and advance of Venezuelan socialism.

With the economy in trouble, the US and its local allies didn’t waste any time driving the knife in. As Venezuelan Minister of Foreign Affairs, Jorge Arreaza, writes: “Imperialist actors have sought, by any means available to them, to overthrow and eliminate the Bolivarian Revolution, to retake political control of the country, so that the riches of Venezuelans can once again be used as tribute to benefit transnational capital.”72 Domestically, the opposition parties – wealthy, white, pro-US and fanatically anti-Chavista – stepped up their efforts to make the country ungovernable, organising violent demonstrations, spreading lies (through their domination of print and television media) and hoarding goods so as to create shortages and drive inflation. The US has added to this pressure with wide-ranging sanctions – “a savage and criminal financial and commercial blockade.”73

The sanctions are designed specifically to cause hardship among ordinary Venezuelans and to break their support for the Bolivarian Revolution. The calculation is, needless to say, that worsening conditions will lead to the downfall of the Chavista government and ultimately the rolling back of the socialist advances of the last two decades. Certainly the sanctions are already wreaking havoc. World-renowned economist Jeffrey Sachs states plainly that “American sanctions are deliberately aiming to wreck Venezuela’s economy and thereby lead to regime change. It’s a fruitless, heartless, illegal, and failed policy, causing grave harm to the Venezuelan people.” Mark Weisbrot and Jeffrey Sachs published a report in April indicating that sanctions to date have led to 40,000 deaths as a result of food and medicine shortages.74

It would be difficult to overstate the importance of defending Venezuela. Defending Venezuela means supporting the second wave of socialist advance; it means defending the gains of two decades of hard-won progress; it means maintaining the trajectory towards a multipolar world; it means challenging the US’ attempt to reimpose the Monroe Doctrine.75 In 2015, the Argentinian sociologist Atilio Boron wrote powerfully about the critical importance of the Bolivarian Revolution: “The struggle being waged in Venezuela today is decisive not only for this South American country, but for all the emancipatory processes underway in Latin America and the Caribbean… What we are waging, in the homeland of Bolívar and of Chávez, is our battle of Stalingrad. If the oligarchic-imperialist reaction is successful in its efforts, all of Latin America will feel the heavy blows… It will be a terrible lesson against the countries whose governments had the audacity to defy the empire.”76 These words continue to resonate.

Those of us around the world who support socialism, who defend the right of nations to self-determination, who oppose imperialist domination, have a duty to stand up for Venezuela. The world needs more socialist-oriented states, not fewer! We must apply pressure to our governments not to participate in sanctions or other forms of economic destabilisation. We must resolutely oppose any threat of military intervention. Those whose governments have signed up to the US-led regime change agenda must demand those governments stop supporting Juan Guaidó’s attempted coup and that they limit their involvement to supporting peaceful dialogue. We should work hard to raise awareness, to refute the pervasive lies and slander that appear in the media (including the supposedly left-leaning press – The Guardian is among the worst offenders when it comes to Venezuela). We should support independent media groups such as Venezuela Analysis that are working to counter the relentless information warfare.

Let’s be inspired by the US activists who put themselves in the firing line in order to protect the Venezuelan embassy in Washington.77 Those in Britain should join and support the Venezuela Solidarity Campaign.78 Those in political parties should pass resolutions calling for an end to sanctions and destabilisation. The further the message spreads, the better. Let’s do everything we can to defend Venezuela.


  1. Even if this jubilation is tempered by the knowledge that her likely successor, Boris Johnson, is even more reactionary. 

  2. USA Today: U.S. recognizes Venezuela opposition leader Juan Guaido as president; Russia backs Maduro, 2019 

  3. Liberation News: Massive rallies for Maduro held in Venezuela, ignored by war-mongering corporate media, 2019 

  4. Karl Marx, The Civil War in France, 1871, Chapter 5 

  5. Marx and Engels, Manifesto of the Communist Party, 1848, Chapter 1 

  6. Democracy Now: Secret Documents Show Nixon, Kissinger Role Backing 1973 Chile Coup, 2013 

  7. Marx and Engels, Manifesto of the Communist Party (1848), Chapter 4 

  8. Lenin, State and Revolution, 1917, Chapter 3 

  9. See Carlos Martinez, The End of the Beginning: Lessons of the Soviet Collapse, LeftWord Books, 2019 

  10. See for example Ha-joon Chang: 23 Things They Don’t Tell You About Capitalism, Penguin, 2011 

  11. For further discussion on China, see Invent the Future: Is China Still Socialist?, 2018 

  12. Lenin, The Chain Is No Stronger Than Its Weakest Link, 1917 

  13. Wikipedia: The End of History and the Last Man 

  14. Chavez: Venezuela and the New Latin America: Venezuela and the New Latin America – Hugo Chavez Interviewed by Aleida Guevara, Ocean Press, 2005 

  15. Victor Figueroa Clark, Salvador Allende – Revolutionary Democracy, Pluto Press, 2013 

  16. Aporrea, Marta Harnecker: un tesoro de los pueblos, 2019 

  17. Marta Harnecker, Rebuilding the Left, Zed Books, 2007 

  18. Iain Bruce, The Real Venezuela: Making Socialism in the 21st Century, Pluto Press, 2008 

  19. Venezuela Analysis: Venezuela Marks 25 Years Since “Caracazo” Uprising Against Neoliberalism, 2014 

  20. Vijay Prashad, The Poorer Nations: A Possible History of the Global South, Verso, 2013 

  21. George Ciccariello-Maher, We Created Chávez: A People’s History of the Venezuelan Revolution, Duke University Press, 2013 

  22. This story is told in detail in Ciccariello-Maher, ibid

  23. Miguel Tinker Salas, Venezuela What Everyone Needs to Know, Oxford University Press, 2015 

  24. New York Times: Venezuelan Terrorists Kidnap U.S. Colonel and Threaten Him (1964) 

  25. Ciccariello-Maher, op cit 

  26. ibid 

  27. Christian Science Monitor: Chávez celebrates failed coup that propelled him into office, 2012 

  28. Tinker Salas, op cit 

  29. New York Times: Venezuelan, Like Castro, Has Brother at the Ready, 2011 

  30. Richard Gott, Hugo Chávez and the Bolivarian Revolution, Verso, 2005 

  31. Cited in Richard Gott, op cit 

  32. MR Online: Samir Amin: Chávez Has Died, But the Bolivarian Revolution Continues, 2013 

  33. Gott, op cit 

  34. Marta Harnecker, Chávez’s Chief Legacy: Building, with People, an Alternative Society to Capitalism, 2013 

  35. Cited in Bart Jones, Hugo!: The Hugo Chavez Story from Mud Hut to Perpetual Revolution, Steerforth, 2008 

  36. Gott, op cit 

  37. World Bank poverty data: Venezuela 

  38. Tinker Salas, op cit 

  39. See for example Venezuela Analysis: A Look at the Venezuelan Healthcare System, 2009 

  40. Gott, op cit 

  41. Telesur: Venezuela: 10 Years Free of Illiteracy, 2015 

  42. Figures cited in Tinker Salas, op cit 

  43. Fox News: Venezuela’s Chavez Touts Linux as Microsoft Alternative, 2006 

  44. Telesur: Venezuelan Gov’t Delivers 2.3 M Houses Despite Economic War, 2018 

  45. BBC News: Nationalisation sweeps Venezuela, 2007 

  46. Venezuela Analysis: Venezuela, Worker Control, and Self-management, 2010 

  47. Venezuela Analysis: Cooperation, Co-operatives, & Revolution in Venezuela, 2012 

  48. Ciccariello-Maher, op cit 

  49. Iain Bruce, op cit 

  50. Samir Amin, The Long Revolution of the Global South, Monthly Review Press, 2019 

  51. BBC News: Venezuela President Nicolás Maduro interview: Full transcript, 2019 

  52. Washington Times: Losing Latin America, 2007 

  53. Invent the Future: Hugo Chávez – Revolutionary Internationalist, 2014 

  54. Jenny Clegg, China’s Global Strategy, Pluto Press, 2009 

  55. Cited in Bart Jones, op cit 

  56. ALBA info: What is ALBA? 

  57. CELAC International: About CELAC 

  58. The Intercept: Brazil Prosecutors Plotted Against Lula’s Party in 2018 Election, 2019 

  59. Jacobin: Lenín Moreno’s Betrayal, 2019 

  60. FT: Prosur risks joining the list of failed pan-South American institutions, 2019 

  61. Tinker Salas, op cit 

  62. Taipei Times: Chavez to triple oil sales to China, 2006 

  63. SCMP: China hits back at US criticism of oil-for-loan investments in Venezuela, 2018 

  64. Tinker Salas, op cit 

  65. Reuters: Venezuela’s Chavez accuses Israel of genocide, 2009 

  66. Venezuela Analysis: Venezuela’s President Chavez calls for liberation of the Sahrawi people, 2009 

  67. Fox News: Venezuela’s Chavez meets with Syrian President Bashar Assad, vows to fight US ‘imperialism’, 2010 

  68. Al Jazeera: Chavez proposes talks for Libya, 2011 

  69. FT: Livingstone secures cheap oil from Chávez, 2007 

  70. BBC News: Venezuela President Nicolás Maduro interview: Full transcript, 2019 

  71. Venezuela Analysis: How Much of Venezuela’s Crisis is Really Maduro’s Fault?, 2019 

  72. Jorge Arreaza: Venezuela, epicenter of the historic dispute, 2019 

  73. ibid 

  74. Counterpunch: War on Venezuela?, 2019 

  75. Washington Post: What is the Monroe Doctrine? John Bolton’s justification for Trump’s push against Maduro, 2019 

  76. Cuba and Venezuela Solidarity Committee: Dr Atilio Boron expresses solidarity with Venezuela, 2015 

  77. Sputnik: Activists Who Protected Venezuelan DC Embassy Call for Mass Mobilization, 2019 

  78. VSC 

Book review: Victor Grossman – A Socialist Defector: From Harvard to Karl-Marx-Allee

This article first appeared in the Morning Star on 15 April 2019.

In the popular imagination, the German Democratic Republic is indelibly linked with ideas of authoritarianism, poverty, secret police, stuffy bureaucracy and a generalised absence of democracy.

Victor Grossman is uniquely well placed to challenge this McCartheyite narrative. Born in New York in 1928, he joined the Communist Party while studying at Harvard in the late 1940s. He was drafted into the army and, while stationed in Austria, defected to the GDR. Marrying a German woman, studying and working, raising children and grandchildren, he lived in East Germany until its 1990 absorption into the Federal German Republic, and indeed still lives in Germany today.

‘A Socialist Defector’ is thus able to offer a nuanced and realistic account of life in the GDR. Although Grossman doesn’t shy away from criticising the assorted failings, mistakes and excesses of the East German socialist experiment, his account is very different from the standard Cold War nonsense. Comparing his experiences of German socialism with his experiences living in the capitalist world, he finds that the socialist model was superior in several important ways.

Although the GDR was certainly poorer than the US or the FRG, it emphasised social justice and equality. Exotic foodstuffs and nice consumer goods were often difficult to come by, but nobody went hungry. Everybody had a roof over their head, and rent was always at an affordable level (typically between 5 to 10 percent of income). Evictions were prohibited by law. Homelessness was non-existent.

Education was free at every level, from kindergarten to university. Much like in Cuba today, western sanctions meant a shortage of some medicines, but the healthcare system was comprehensive, free, and of excellent quality. A ten percent social insurance contribution bought you access to “a full protective umbrella”. Even in modern Britain, with our magnificent NHS, it’s difficult to imagine the sense of freedom and security that come with a comprehensive welfare state and guaranteed full employment.

There was no organised crime scene, no drug addiction, no prostitution. Women had full economic and legal equality in the GDR long before they did in West Germany. In 1968, the old German law against homosexuals – already ignored – was annulled. It wasn’t until 1994 that West Germany caught up.

While the West German state was packed with former Nazis, the GDR was from the start an unambiguously anti-fascist state. The leading politicians had fought against fascism in Spain and Germany. Former Nazis were removed from positions of influence, and new teachers, lawyers and judges were trained from among the ranks of the working class, with a clear anti-fascist ethic.

This was combined with a profound internationalism. The GDR gave practical, financial and moral support to the freedom fighters of South Africa, Namibia, Mozambique, Angola and Vietnam; it gave crucial support to Cuba and Nicaragua; it stood in solidarity with the Allende government in Chile. “All this time rulers in Washington and Bonn supported every fascistic dictator from Haiti or Guatemala to Chile!”

Grossman notes the generation gap that developed between the leadership and those that hadn’t directly experienced the war or the anti-fascist struggle, and he criticises the leadership for its excessive caution and secrecy, which led to dissatisfaction and disengagement. As such, the book offers some valuable insights into why the GDR wasn’t in the final analysis able to withstand the extraordinary pressure it faced as a socialist state in an imperialist world.

While mourning the loss of so much of the socialist world, ‘A Socialist Defector’ is ultimately a story of hope, encouraging us to learn from the successes and failures of German socialism in the 20th century, and to take these forward in the struggle for a better world in the 21st century. Grossman takes heart from a renewed radicalism among young people, highlighting the Black Lives Matter movement, Occupy Wall Street, the Oxi fight in Greece, and the resurgent Labour left under the leadership of Jeremy Corbyn. He ends by urging us to unite our struggles and fight as one against a merciless, militaristic, neoliberal capitalism.

‘A Socialist Defector’ is a hugely interesting, accessible and endearing political memoir that deserves to be widely read. Those looking to explore the GDR’s history further are also recommended to read ‘Stasi State or Socialist Paradise?: The German Democratic Republic and What Became of It’ by Bruni de la Motte and John Green.

Book review: John Lister – Unhealthy Profits: PFI in the NHS, its real costs and consequences

This article first appeared in the Morning Star on 25 March 2019.

John Lister’s well-written and scrupulously researched book is a crucial weapon in the defence of the NHS.

It advances a rigorous explanation of the economic theory behind the private finance initiative (PFI), its putative benefits and the reality of its implementation in the NHS over the last quarter-century, drawing on the specific experience of the Pinderfields and Pontefract hospitals in Yorkshire built as part of a £311 million deal with the Royal Bank of Scotland.

Championed by Tory chancellor Norman Lamont, the concept of PFI originally surfaced in the early 1990s but it wasn’t until the New Labour victory of 1997 that PFI went from being one of many funding models to being the only game in town.

“PFI had an irresistible attraction for New Labour ministers keen to boast of the new hospitals that were being built [and for] NHS trust bosses snatching at the lure of private funding at a time when public provision of capital investment in the NHS had been deliberately reduced,” Lister writes.

Superficially, PFI seemed like a great idea. It meant that new hospitals could be built without the Treasury having to pay for them up front, with private consortiums doing the borrowing, building the hospitals and then making their money back over a 25 to 40-year period through monthly fees paid by the relevant NHS trust.

Thus vast infrastructure spending was kept off the Treasury’s books and private-sector partners could absorb all the risk. It was an idea that fitted perfectly with the prevailing neoliberal economic orthodoxy.

Of course, massive inefficiencies are built into the very fabric of PFI. Private-sector borrowing is much more expensive than its public-sector counterpart and, where new hospitals were needed, the money could’ve been borrowed by the government at a far lower rate of interest than that paid to PFI financiers.

More significantly, PFI consortiums are private companies with a primary responsibility to their shareholders, whose handsome dividends can only be funded by overcharging their customers —the NHS.

Lister shows all too clearly that in practice PFI has been comprehensively disastrous for the NHS. Once hospitals have been built and are being leased back to NHS trusts, the overall cost over the lifetime of a PFI is typically three to four times the capital value — not a good mortgage deal by any standard.

Beyond the cost of the buildings themselves, NHS trusts are also tied into inflated maintenance costs, whereby PFI consortiums enjoy an exclusive contract to provide — invariably bad — food, change lightbulbs and impose penalty charges on people parking in A&E.

The bloated monthly payments have left many NHS trusts on the verge of bankruptcy. Ironically, a number of trusts have had to be bailed out by the Treasury, thereby voiding the one supposed benefit of using a PFI in the first place.

Other trusts have been forced to make shameful decisions on staff and service provision. Bed numbers have gone down in nearly every PFI hospital and there is constant pressure to cut back on staff numbers and conditions. Increasingly, agency staff are preferred so as to avoid paying negotiated rates.

Lister notes that British Medical Association research shows that not only did the PFI process result in an average 32 per cent loss of beds but during the planning process the costs of the PFI schemes escalate by a “staggering average”of 72 per cent.

After cutting staff and beds, the only remaining means to raise the money to pay PFI costs is often to sell NHS land and buildings to the PFI consortiums, thereby continuing the transfer of public assets into public hands. And these are not just any private hands but usually off-shore finance capitalists that go to great lengths to avoid paying tax.

HSBC Infrastructure Company Limited, incorporated in the tax haven of Guernsey, has over 100 investments in health, education and transport valued at more than £1.8 billion.

Lister also offers a neat solution to the PFI rip-off — nationalising the special purpose vehicles that run them. Any compensation and changes to the monthly payments would be determined by an Act of Parliament and not subject to complex and expensive legal wrangling.

“After more than 25 years of PFI schemes in Britain, it’s high time this relatively straightforward, neat, legal and affordable policy was explicitly adopted by the Labour Party as the government in waiting and endorsed by the unions whose members have been exploited by PFI contractors and consortia,” Lister concludes.

Brexit is an attack on the working class

This post was updated on 7 April to reflect the updated situation and to include some discussion on the impact of Brexit on Ireland.


The date set for the United Kingdom to leave the European Union, 29 March 2019, is now in the past. The Brexit deadline has been extended, and is likely to be extended again. MPs can’t agree on what a deal should look like, only that the deal presented by the government isn’t very good. Labour and the Tories are in negotiations with a view to finding common ground on a softer Brexit, but at the time of writing we still don’t have much clue what the outcome will be. Will Theresa May finally be able to get her deal through parliament? Might we leave with a ‘Norway-plus’ type of arrangement, retaining membership of the Customs Union and potentially the Single Market? Might we leave without a deal, leading to probable economic crisis and social chaos? Or could there be a lengthy postponement, or could the whole thing be cancelled?

Absurdly, much of this uncertainty comes down to seemingly insurmountable divisions within the Conservative Party, and to the government’s prioritisation of its own petty interests over those of the British people – not to mention a desperation on the part of the British ruling class to keep Jeremy Corbyn as far as possible from 10 Downing Street.

Of course, those of us on the left can’t control what ruthless Tory Brexiters do. What we can and should do is develop a reasonable, coherent strategy of our own; a strategy with the power to unite a wide array of forces with the critical mass to defeat the anti-democratic and anti-popular machinations of the Tories and their chums on the extreme right. In so doing, we can avert disaster and strengthen the position of the working class.

A united strategy needs to be based on a detailed and realistic understanding of what Brexit is and what class forces it represents. As it stands, this understanding is largely absent. The ‘remain’ side of the debate has been dominated by liberal/centrist voices, including the likes of Tony Blair, Chuka Umunna and others trying to leverage the political crisis to weaken Corbyn. The bulk of the non-Labour left – including the Communist Party of Britain, the Socialist Party, Counterfire, the Socialist Workers Party – has been promoting a ‘Lexit’ line based on a combination of misunderstanding and wishful thinking, and in some cases with a dose of chauvinism. Even within the Labour left and the trade unions, there’s a reluctance to really articulate a coherent progressive vision (or systematic opposition to Tory Brexit) owing to worries about alienating people in pro-Brexit Labour-voting constituencies.

Without this understanding and the strategy that flows from it, we’re sleepwalking into a nightmare that will strengthen the most reactionary elements of the ruling class and that could set back progressive forces for a generation.

This article will attempt to show that the Brexit project serves the interests of a tiny finance-capitalist elite; that it represents an attack on working class conditions and unity; that it strengthens rather than weakens imperialism; that it will lead to greater inequality and poverty; that it is, in fact, a neoliberal scam that could have a devastating impact on the poorer sections of British society.

Neoliberalism on steroids

From the point of view of the millionaires who funded the leave campaign, the purpose of Brexit is to allow business to escape the public protections the EU provides. (George Monbiot)

Millions of people voted for Brexit. Their motivations were many and complex – including an amorphous idea of “taking back control”, old-fashioned xenophobia and anti-immigrant scapegoating, as well as a healthy middle finger to the smug status quo so amply represented by then-prime minister David Cameron. Very few of them voted for neoliberalism or deepening austerity; very few thought that the important thing was to reduce restrictions on big business such that it can exploit more ruthlessly and generate ever more fabulous profits. As Fintan O’Toole points out: “for most of those who voted for it, Brexit means a ‘return to the nation state’. But for many of those behind it, there is a very different ideal. They use this language because it is the only one that is politically viable. But for them the exit from the EU is really a prelude to the exit from the nation state into a world where the rich are truly free because they are truly stateless” (Heroic Failure: Brexit and the Politics of Pain, Apollo, 2019).

For many left-wing supporters of Brexit, the whole point is to break with neoliberalism, not strengthen it. They see the EU as the standard-bearer of free-market fundamentalism in the present era, forgetting that, within Europe, Britain was the first country to enthusiastically venture into the brave new world of massive deregulation. In the early 1980s, it was Ronald Reagan, Margaret Thatcher and Bob Hawke that led the neoliberal charge. Indeed, it took quite a long time to convince continental Europeans to pick up the baton. While Britain participated in the process of European integration through the development of the European Economic Community (EEC) and then the EU, this participation was always reluctant and partial, precisely because of British capital’s distrust for the relatively softer, more regulated version of capitalism pursued on the continent. Nothing could reconcile Thatcher and her friends to the concept of a “platform of guaranteed social rights”.

Even today, after a quarter of a century of deepening alignment with the new economic orthodoxy, France and Germany are far less ‘business-friendly’ environments than Britain (both charge around 30 percent corporation tax, for example). While the UK ranks 7th globally in the Heritage Foundation’s Index of Economic Freedom, Germany ranks 24th and France 71st.

The EU mandates a level of protection for workers, it restricts off-shoring and tax avoidance, and it attempts to regulate the activities of the big banks. When the EU proposed a ‘Tobin tax’ on financial transactions in 2013, it was the British government that led the opposition to anything that limited the profits of the mega-rich. Boris Johnson, then London’s mayor, was viciously opposed to any increase in the EU’s regulatory reach: “We cannot allow jobs, growth and livelihoods to be jeopardised by those in the EU who mistakenly view financial services as an easy target.”

Jeremy Corbyn was 100 percent correct when he pointed out that “people in this country face many problems, from insecure jobs, low pay and unaffordable housing to stagnating living standards, environmental degradation, and the responsibility for them lies in 10 Downing Street, not in Brussels.”

‘Taking back control’ doesn’t mean assigning any new powers to the ordinary people of Britain. It means reducing EU regulations on British business. The idea isn’t even to reassign these powers to Whitehall but to get rid of them altogether. In a world where multinational corporations and financial institutions are too big to be subjected to any meaningful pressure by national governments like the UK, freeing themselves from supranational regulatory bodies like the EU means freeing themselves from oversight. It’s not just ‘small government’, it’s no government.

Few have articulated this fundamentalist Thatcherite vision more clearly than Nigel Lawson, former Chancellor of the Exchequer and president of the fanatically pro-Brexit ‘Conservatives for Britain’ pressure group. Writing in the Financial Times in September 2016, he complains bitterly that while “the Thatcher government of the 1980s transformed the British economy … through a thoroughgoing programme of supply side reform, of which judicious deregulation was a critically important part”, this process was limited by the “growing corpus of EU regulation”. Now, however, “Brexit gives us the opportunity to address this; to make the UK the most dynamic and freest country in the whole of Europe: in a word, to finish the job that Margaret Thatcher started”.

The Brexit engineers are involved in the construction of a Thatcherite neoliberal paradise that will bring fabulous profits to a few capitalist buccaneers, and ever-increasing misery to those at the bottom of society.

A boost for the Atlanticists

Brexit was not, to my mind at least, a choice between the EU and ‘independence’, but a choice between staying part of a flawed union or choosing to deepen ties with the American Empire and continue the ‘Americanisation’ of the British economy. If Britons wish to learn what a US-style healthcare service looks like, they are free to talk to any poor American (Akala, Natives: Race and Class in the Ruins of Empire, Two Roads, 2018).

There’s a widespread assumption that the British ruling class is overwhelmingly opposed to Brexit. This is not the case; the ruling class is deeply divided on Brexit. The line of division is essentially between a relatively European-aligned section of British capitalism and a relatively US-aligned ‘Atlanticist’ section. This reflects deeper economic and strategic divisions: the Atlanticist ruling class is more connected to finance capital, to the military-industrial complex, and to Big Oil; its political orientation is closer to an openly aggressive, racist Trump-ism than to the relatively more sophisticated approach of Obama or Merkel. The last time this division was manifested so starkly was in 2003, when the British ruling class was split as to whether to join the US war on Iraq or to support the French/German position against the war.

The leading pro-Brexit politicians – Boris Johnson, Michael Gove, Nigel Farage, Jacob Rees-Mogg, David Davis, Liam Fox, Dominic Raab, Iain Duncan Smith and Steve Baker – are all noted Atlanticists. Liam Fox for example has consistently maintained a pro-US orientation, including strongly favouring close military alliance. His charity, Atlantic Bridge, exists to promote close coordination between the Conservative Party and the hard-right Tea Party nutcases in the Republican Party. Boris Johnson is a wholehearted supporter of Making America Great Again, close with both Donald Trump and Steve Bannon. Trump, Bannon and John Bolton are all fond supporters of the Brexit project, as is Rupert Murdoch. The multi-millionaire financiers of the Brexit campaign – people like Arron Banks, Peter Hargreaves, Peter Cruddas, Stuart Wheeler, Michael Hintze, Martin Bellamy, Jon Moynihan and Robert Hiscox – all favour closer links with the US. They are certainly not motivated by any overarching desire to weaken imperialism or empower the working class.

Brexit is a key component of Trump’s ‘America First’ strategy. It’s instructive that the Heritage Foundation, a highly influential neoliberal think-tank in the US and a major force in the Trump administration, has lobbied for Brexit over the course of over a decade on the basis that it will strengthen the US’ hand in the global economy and help to weaken the EU. British political analyst TJ Coles gives a helpful summary of Heritage’s changing attitude towards the EU: “The Heritage Foundation describes America’s initial interest in a United Europe as a bulwark against the Soviet Union… As there is now no Soviet Union, there is no need for a United Europe. A regulated European Union, which erects barriers to US products and services (such as labels identifying genetically-modified foods and regulations against privatisation) is bad for America’s corporate profits. After the financial crisis of 2008, Europe’s central command in Brussels started regulating financial markets in an effort to prevent another crash. The Heritage Foundation report analyses America’s efforts to use Britain as a ‘Trojan Horse’ to push through state deregulation in Europe. As Britain was not powerful enough to do this, America felt that a weakened Europe would better serve its financial and trade interests” (The Great Brexit Swindle, Clairview, 2016).

Leaving the EU Single Market, Britain will not suddenly become a major economic player in its own right; its economic strength and geographic location make that impossible. With the imposition of tariffs between Britain and its biggest trading partner, Britain will be forced to look elsewhere for a major trade deal. That means, first of all, a ‘free trade agreement’ with the US, the terms of which will be dictated by the latter. As Tom O’Leary writes, “the terms of negotiations between the UK and US will reflect the real relationship of forces between the two economies. The US economy is approximately 6.5 times greater than the UK economy… For the Trump negotiators, there are ten economies in the world whose GDP is greater than or more or less equal to that of the UK (on a PPP basis). It will be the UK which is desperate for a deal, not Trump… Any new deal is unlikely to compensate for the lost trade with the EU and will come at a significant price, in terms of workers’ rights, environmental protections, consumer safeguards and the privatisation of UK public services.”

Deepening division of the working class

It is sometimes easier to blame the EU, or worse to blame foreigners, than to face up to our own problems. At the head of which right now is a Conservative Government that is failing the people of Britain (Jeremy Corbyn, April 2016).

Polling has consistently shown that anti-immigration sentiment was the one of the key motivating factors in the Brexit referendum. A fairly typical study found that nearly three-quarters of Leave-voters were worried about immigration levels. Brexit campaigners shamelessly leveraged this latent xenophobia, with Nigel Farage’s infamous ‘breaking point’ poster being a particularly nasty example, along with Boris Johnson and Michael Gove repeatedly using Turkey’s aspiration of EU membership as a pro-Brexit scarecrow. As Aditya Chakrabortty pointed out, “One didn’t need especially keen hearing to pick that up as code for 80 million Muslims entering Christendom.”

This type of message was particularly effective, since it was essentially a reiteration of the racist language of the Tory mainstream. A study by Kings College London found that media coverage of immigration issues “more than tripled during the ten-week Brexit campaign, rising faster than any other political issue and appearing on 99 front pages, compared with 82 about the economy. Most of these front pages (79) were published by pro-leave newspapers.”

Although Theresa May campaigned (very half-heartedly) to remain in the EU, she didn’t feel strongly enough about it to counter anti-immigrant propaganda, instead choosing to suppress multiple studies showing that immigration doesn’t lead to lower wages. Plus of course she was the architect of the ‘go home’ vans, the hostile environment, and the chief culprit of the Windrush debacle. The Remain campaign was mainly defensive on the issue of immigration, choosing not to promote an anti-racist narrative. Of the prominent Remain supporters, it was only Jeremy Corbyn and his close circle in the shadow cabinet – along with the SNP, Greens and Plaid Cymru – that actively defended immigration. When they did so, they were either ignored or ridiculed by the press.

Fintan O’Toole writes that the Brexit vote “depended on an ostensibly improbable alliance between Sunderland and Gloucestershire, between hard old steel towns and rolling Cotswold hills, between people with tattooed arms and golf club buffers” (op cit). This unlikely convergence was mediated by decades of anti-immigrant rhetoric; of old-fashioned scapegoating that blamed immigrants for the problems of capitalism.

Survey data indicates that a significant majority of the British population would like immigration numbers to be reduced, presumably believing – incorrectly – that immigration adversely impacts quality of life. This prejudice contributed more than any other single factor to the Leave vote; there’s absolutely no chance a majority would have voted for Brexit were it not for the promise of reduced immigration. This was recognised by Britain’s ethnic minority communities, which invariably voted in large majorities to remain in the EU. The racism of the Brexit campaign is demonstrated with appalling clarity by the staggering increase in hate crime incidents in the weeks following the referendum.

Taking charge of the Brexit negotiations, Theresa May made it clear from the beginning that her priority was to restrict freedom of movement. Brexit means Brexit means xenophobia.

This xenophobia is not of course exclusively connected to Brexit; it was leveraged by the Brexiters in order to win the referendum, but it has a broader political purpose for capitalism: preventing unity of a multicultural multi-ethnic working class. The specific form of racism surrounding the Brexit campaign also chimes with cultural changes in Britain in recent decades. The brutal, flagrant racism that was meted out in previous decades to Irish, Jews, African Caribbeans, Asians and others is no longer socially acceptable in the way it was. Instead we have what Ambalavaner Sivanandan described as ‘xeno-racism’ – “it is racism in substance, but ‘xeno’ in form. It is a racism that is meted out to impoverished strangers even if they are white.” Those immigrants “coming over here and taking our jobs” are nowadays less likely to be Asians and Caribbeans, but rather Romanian and Polish – not to mention Nigel Farage’s asylum seekers and Boris Johnson’s Turkish EU citizens. Brexit has managed to both leverage and deepen this racism, and in so doing has strengthened the hand of the most reactionary elements of British society.

Brexit will make workers poorer

Brexit will harm large sections of the British economy, and the cost of this damage will inevitably be borne by the working class, since the owners of capital can more easily shift their investments to those areas that aren’t affected. As TUC General Secretary Frances O’Grady notes: “Other EU countries buy huge amounts of British goods and services. But if it’s harder to sell what the UK makes in Europe, big global firms are likely scale down their operations. That would result in big job losses, especially in sectors like manufacturing where half of exports go the EU.” These manufacturing jobs, threatened by Brexit, are typically paid significantly better than their service sector equivalents, so “even if jobs lost were replaced, we’ll be left with worse jobs on lower wages.”

The EU is Britain’s largest trading partner, constituting 44 percent of exports and 53 percent of imports. The TUC estimates that over three million jobs in Britain are linked to trade with the EU. Outside the EU single market, it will be more difficult to sell products and services made in Britain and to buy products and services from elsewhere. In the short term, this puts essential imports such as food and medicine at risk – Britain imports around 40 percent of its food, for example, and the vast majority of this comes from the EU. In the longer term, it leads to reduced productivity and reduced participation in the international division of labour. Tom O’Leary writes that, post-Brexit, “the economy will be operating behind a series of tariff and non-tariff barriers as others protect their markets. All of these will make the economy less competitive and will increase costs.” This cannot but have a detrimental effect on living standards.

EU funding in Britain will end immediately with Brexit. This will have a disproportionate impact on the poorer regions of the UK, particularly in Cornwall, Wales, Scotland and Northern Ireland. Even more significant would be the effect on public finances due to businesses closing or moving away from Britain, as well as from reduced immigration. The Economist puts the case bluntly: “Britain exports old, creaky people and imports young, taxpaying ones. More than 100,000 British pensioners live it up in sunny Spain; meanwhile, up to 100,000 working-age Spaniards brave the British cold… The government’s fiscal watchdog suggests that by the mid-2060s, with annual net migration of about 100,000, public debt would be roughly 30 percentage points higher than if that figure were 200,000. Taking back control comes with a whopping bill.” Beyond fiscal revenue, reduced immigration means a lack of people to do important work. For example, the staffing crisis in the NHS is expected to get much worse with Brexit.

For the myriad flaws of the EU, membership has brought some crucial benefits to British workers. As Jeremy Corbyn has pointed out, “there was no limit on working time for workers in Britain until the Working Time Directive, which also provided for rest breaks. Our rights to annual leave were underpinned by the EU too; we would not have a right to 28 days’ leave without that membership.” EU regulations mean that part-time workers (predominantly women) have equal rights with full-time workers; that a million temporary workers have the same rights as permanent workers. Freedom of movement means that these terms can’t (legally) be undercut within the EU – so ending freedom of movement would significantly deepen the ‘hostile environment’ in terms of labour rights for immigrants.

In the same 2016 speech, Corbyn pointed out that the most ruthless exploitation in Britain is not the result of EU neoliberal policy; in fact most EU countries are far better than Britain in terms of workers’ rights. “If we want to stop insecurity at work and the exploitation of zero hours contracts why don’t we do what other European countries have done and ban them? Zero hours contracts are not permitted in Austria, Belgium, Czech Republic, Denmark, France, Germany, Hungary, Italy, Netherlands, Poland and Spain.”

Outside the customs union, Britain will need to negotiate major trade deals. The most prominent of these is with the US, which will be well placed to exact horrific terms, including opening up much more of the NHS and education system to privatisation. As TJ Coles writes, “a Britain unshackled from Europe would strengthen US-UK relations and weaken the EU in preparation for a regulatory assault by the US” (op cit).

Post-Brexit trade deals will almost certainly mean opening up the British market for dangerous produce. As it stands, the EU bans the import of US-produced items such as hormone-treated pork and beef, genetically-modified cereals, and chlorine-washed chicken. US capital and its Tory allies are desperate to put an end to these restrictions, and Brexit gives them the perfect opportunity.

Brexit means worse conditions for workers. More casualisation, more privatisation, less regulation, less union power, fewer restrictions on big business. This is exactly why a significant section of the British ruling class is so keen on Brexit, and why the rest of us should resolutely oppose it.

EU state aid rules are not the problem

The proponents of Lexit, both within and outside the Labour Party, have built their case primarily on the idea that EU regulations regarding state aid to industry will stand in the way of a programme of state-led investment and nationalisation. Labour leader Jeremy Corbyn has unfortunately lent credence to this theory.

There are three major problems with this. The first is a simple practical matter: Jeremy Corbyn is not the prime minister, and Labour is not in government. Efforts to change that situation are welcome and necessary, but it is very likely the Tories that will be implementing Brexit, and the Brexit they have in mind has nothing whatsoever to do with nationalisation and the redistribution of wealth. Quite the opposite. However problematic the EU state aid rules might be, the British post-Brexit government is highly unlikely to replace them with anything better.

The second problem is that Labour’s ‘Soft Brexit’ wouldn’t release Britain from EU state aid rules. The Labour leadership has repeatedly stated that its Brexit vision includes continued membership of a comprehensive customs union with the EU. The chances of the EU signing up to such a deal whilst allowing exemptions on its core elements are approximately nil.

The last obvious problem with the idea that EU state aid rules get in the way of public ownership is that it’s not actually true. Britain’s relentless privatisation over the course of the last 40 years has been pushed by successive British governments; it has been cooked up in Whitehall, not Brussels. In fact, as TSSA general secretary Manuel Cortes notes, “Britain spends far less than the EU average on state aid. If Britain were to match the proportion of spending of Denmark it would mean an extra £24 billion a year; if Britain matched Hungary, we would spend an additional £34 billion.”

George Peretz QC, a barrister specialising in public law and tax issues, writes that, “as far as nationalisation is concerned, EU law raises no objection. Anyone who knows the continent knows that in most countries most operators in the sectors mentioned by Corbyn [postal services, water, railways and banks] are state-owned… Many member states have been able to provide large subsidies to their rail and postal operators to ensure high quality universal services… What the state aid rules prevent is ill-targeted aid, such as the money repeatedly thrown down the black holes of national flag carriers or tax exemptions given to large multinational companies in return for locating in the state concerned.” In short, the EU state aid rules would have little or no impact on the progressive programme of state-led investment envisaged by Jeremy Corbyn and John McDonnell.

Britain leaving the EU will not weaken imperialism

Another Lexit idea is that the EU – an organisation composed of capitalist countries – will be diminished by the UK’s departure, and therefore imperialism as a whole will be weaker. This rather ignores the fact that Britain was an imperialist country before joining the EU and will remain an imperialist country once it leaves. Because the UK will, for reasons described above, lean more towards the US (which by any reasonable definition represents the most aggressive form of imperialism on the planet in the present era), the balance of forces between imperialist blocs will be shifted somewhat, but not in a way that benefits the masses of the world seeking to free themselves from neocolonial domination.

Laughably, some of the leading Brexiters have talked about Britain’s departure from the EU paving the way for the establishment of an ‘Empire 2.0’ built on stronger trading links within the Anglosphere and the Commonwealth. This is the stuff of sheer nostalgic fantasy. In truth, as pointed out by Tottenham MP David Lammy, “leaving the EU will not free us from the injustices of global capitalism: it will make us subordinate to Trump’s US.” Britain is not a major player in the global economy any more; Brexit has come a century or so too late for these nutty delusions. If an ‘Empire 2.0’ were to come into being, “its centre would not be in London but in Washington. It would be an American, not a British empire” (O’Toole, op cit).

In foreign policy terms, Brexit stands to push Britain towards a more aggressively reactionary position. Ministers are already talking about how they’ll be able to ramp up sanctions against Russia, for example. Aligned to Trump’s US, Britain would be under intense pressure to join the sanctions regime against Iran, to support US policy on trade with China, and to scale back participation in global environmental cooperation. Defence Secretary Gavin Williamson has made it all too clear that “Brexit represents an opportunity for Britain to boost its global military standing in response to the threats posed by Russia and China”.

From a strategic anti-imperialist point of view, a relatively stronger EU and relatively weaker US would constitute a more favourable balance of forces; this much was recognised by Chinese president Xi Jinping in 2015: “China hopes to see a prosperous Europe and a united EU, and hopes Britain, as an important member of the EU, can play an even more positive and constructive role in the promoting the deepening development of China-EU ties.” The subtext is clear enough: a US-dominated unipolar world is the most dangerous possible scenario.

There is also the profoundly important issue of Ireland to consider. Brexit poses a serious threat to the Irish economy in both north and south, to the Good Friday Agreement, and to the wider cause of Irish unity and self-determination. The peace process has turned the hard border into a soft border, with an increasingly integrated economy and a much-reduced presence of the British armed forces on the streets of the north. These streams have fed into a powerful (albeit slow and winding) river headed towards peaceful reunification.

Brexit will inevitably affect economic cooperation between north and south, and, if the hard-Brexiters get their way, could well dismantle all the progress of the last two decades. A land border and customs checks would be extremely disruptive and would contravene the terms of the GFA. This would lead to rising dissatisfaction and, very likely, increased sectarian tensions. With a coalition of the Democratic Unionist Party and the Conservative and Unionist Party in power in Westminster – probably with an even more nutty right-wing leadership than at present – we could well see an increased presence of the UK armed forces, under the direction of an emboldened, militantly unionist government that wouldn’t hesitate to employ any measure in defence of the union. Various commentators have noted that a no-deal Brexit could mean a return to direct rule. There’s nothing anti-imperialist about that.

Remain and reform

None of this is to claim for the EU any progressive nature. The precursor organisation to the EU was formed as a bulwark against Soviet socialism and to represent the interests of US-dominated western capitalism in Europe. The need to provide European workers with an alternative to socialism meant that the European Economic Community tended to promote a relatively benign, social-democratic form of capitalism. With the decline and fall of the Soviet Union and its Central/East European allies, the neoliberal consensus seeped out of the Anglosphere and into the heart of Europe. As Fintan O’Toole writes: “Being angry about the European Union isn’t a psychosis – it’s a mark of sanity. Indeed, anyone who is not disillusioned with the EU is suffering from delusions. The slow torturing of one of its own member states, Greece, was just the most extreme expression of a desire to blame the debtor countries alone for the great crisis that hit the Eurozone in 2008” (op cit).

However, as noted above, the neoliberal consensus was not invented by the EU, and the EU is not responsible for imposing it on Britain. Within the EU, leftists in Britain are better placed to fight free-market fundamentalism across the continent. In the words of Manuel Cortes: “Solidarity means standing shoulder to shoulder with our sisters and brothers in socialist parties across the EU demanding a Europe for the many as an integral part of building a better world.” This was precisely the meaning of Corbyn’s “Remain and Reform” slogan. There are plenty of examples of a progressive agenda being successfully advanced within the EU; indeed, the various protections for workers currently embodied in EU regulations were won through continent-wide class struggle.

Where do we go from here?

The progressive project represented by Jeremy Corbyn’s leadership of the Labour Party could provide the basis for an unprecedented unity in this country. The NHS and the welfare state are among the best things the British people have created. We are well placed to expand and innovate in these areas, along with green energy, poverty alleviation, inequality reduction and scientific research; we can develop a global outlook that embraces multipolarity and opposes war. But any prospects for a successful socialist-oriented government in Britain would be seriously undermined by a Tory Brexit that would be accompanied by economic crisis, deep social divisions and a foreign policy designed by John Bolton.

It would be much better to remain in the EU than to proceed with this hard-right scam. It is the duty of all socialists and progressive people to do everything within their power to avoid a “hard Brexit” or a “no-deal Brexit”. Preferably this means remaining in the EU, but if this isn’t possible, we should work towards Brino – Brexit in name only. Labour has taken some steps towards that sort of position, pushing for a comprehensive, permanent customs union with the EU. However, the EU negotiators have repeatedly made clear that any customs union would be conditional on maintaining free movement of labour. The next critically important step for the Labour leadership and the trade unions is to unambiguously accept freedom of movement. That shouldn’t be difficult, because freedom of movement is a fundamentally positive thing. It benefits both immigrants and non-immigrants. The numbers show again and again that immigrants are net contributors to the economy. Indeed, our economy is heavily reliant on immigration. With freedom of movement, immigrants coming here from the EU are protected by EU-wide labour legislation which means they can’t be ruthlessly exploited at the levels British capital would like. If those protections were taken away, it would drive down wages and conditions for everyone. And besides the economic aspect, there is the basic political principle of promoting maximum unity of the working class. Any sheepishness or caginess about this issue feeds into a growing, dangerous trend of racism and xenophobia.

We should recognise the Brexit project as a multi-pronged attack on the working class, and we should take all necessary measures to defend ourselves against it.

New book: The End of the Beginning – Lessons of the Soviet Collapse

The series of articles about why the Soviet Union no longer exists has been compiled into a book and published by LeftWord books.

The paperback can be purchased on the Invent the Future shop or Amazon (delivers to UK, France, Spain, Germany and Italy) or directly from the publisher.

It is also available in Kindle format: US | UK | Australia | Canada.

Andrew Murray has reviewed it for the Morning Star.

Book review: Glyn Ford – Talking to North Korea: Ending the Nuclear Standoff

This article first appeared in the Morning Star on 28 November 2018.

Glyn Ford’s latest book, ’Talking to North Korea’, is that rarest of things: a helpful, sensible, balanced, interesting and informative book about North Korea.

Ford is a former Labour MEP and expert in international relations. He has visited Pyongyang over a hundred times, toured the entire country, and met with government officials at the highest level. He is therefore uniquely well placed to explain and contextualise North Korean politics, and to give pragmatic and thoughtful suggestions as to how to move the peace process forward.

The book does an excellent job of presenting Korean history and politics to a western audience that has become used to thinking of North Korea as dangerous, unpredictable and unhinged. Describing the decades of vicious Japanese colonial rule in the first half of the twentieth century, closely followed by a genocidal war waged by the US, Ford explains how these experiences created a profound sense of insecurity and distrust among the Korean people, particularly north of the 38th parallel, where the Democratic People’s Republic of Korea (DPRK) has been treated by the imperialist powers as an enemy state ever since its formation in 1948.

To this day, too few people are aware of the extremity of the violence enacted against the Korean people during the war of 1950-53. Ford gives a brief – but chilling – overview: “The US carpet-bombed and more or less levelled the North… More bombs were dropped on the North than on Germany in World War II… Many of the bombs contained napalm, used here as a weapon of mass destruction for the first time: the liquid petroleum jelly stuck like glue and burnt its victims alive. Oceans of petrol were poured over the civilian population, incinerating them in the tens of thousands.”

Also little known is that, in the decades following the end of the Korean War, the DPRK achieved remarkable economic successes. “Annual economic growth rates of 20 per cent or more throughout the 1950s and early 1960s made the North one of the fastest-growing economies in the world.” While the key economic and social questions remained unsolved in the South, the DPRK was able to expropriate Japanese colonial properties, enact a far-reaching land reform, introduce universal free education, achieve 100% literacy and bring in a comprehensive welfare system providing housing, health care, education, employment, maternity benefits, and pensions. For a people that had suffered the depths of poverty, and who had been denied educational opportunities, these were unprecedented advances.

The author takes a refreshingly balanced look at the DPRK’s nuclear weapons programme, which he describes as “an entirely rational response to the situation in which it finds itself.” That situation is characterised by the ever-present threat of US-imposed ‘fire and fury’, along with ongoing economic problems. Ford points out that, as long as North Korea feels vulnerable to a US-led regime change operation, it can’t be expected to de-prioritise its military deterrent; however, maintaining a massive standing army with conventional weapons was draining its economy, already suffering in the aftermath of the Soviet collapse, ageing infrastructure and ever-tightening sanctions. “Once it has its own nuclear deterrent, … resources and labour can then be shifted out of the military and into the civilian economy. Weapons of mass destruction are a necessary, if not sufficient, condition for kick-starting the North’s economy.”

Ford puts forward a realistic and sensible proposal for breaking the diplomatic deadlock over the DPRK’s nuclear weapons programme, based on engagement, respect and dialogue. Specifically he makes it clear that the DPRK will not give up its nuclear programme without cast-iron guarantees over its security and the normalisation of relations between it and the US. These conditions should be met, along with the lifting of sanctions and a commitment to helping resolve North Korea’s energy needs (perhaps via the light-water reactors that were meant to be supplied under the US-DPRK Agreed Framework of 1994). If the blanket of hostility were to be lifted, the DPRK’s leadership would certainly respond in kind with a transparent process of denuclearisation.

’Talking to North Korea’ is essential reading, a worthy successor to Selig Harrison’s similar but now slightly dated ‘Korean Endgame’.

Samir Amin: obituary

This article first appeared in issue 5 of Transform: A Journal of the Radical Left, November 2018.


On 12 August 2018, the global revolutionary movement lost one of its most outstanding thinkers. Born in Cairo in 1931, Samir Amin studied in Paris and received his early political education as a member of the French Communist Party. Moving back to Egypt in 1957, he worked as an economic advisor to the Nasser government before moving to Mali (1960) and then Senegal (1963). In 1975, he co-founded the Third World Forum, a network of intellectuals in Africa, Asia and Latin America, working to formulate models of development outside the context of imperialism.

Through his work and his writing, Samir Amin exercised significant influence on progressive governments and movements around the world, from China to Cuba, Venezuela to South Africa. The breadth of his influence is easily evidenced by the tributes that followed the announcement of his death, including from South Africa’s ANC, Venezuelan President Nicolás Maduro,1 and Bolivian President Evo Morales, who wrote that “the legacy of his ideals of social justice will be eternally acknowledged.”2

Overcoming Eurocentrism

Amin coined the term Eurocentrism in the mid-1970s to describe the ideology promoted by modern capitalism: a model that places Europe at the heart of global history and that considers (explicitly or implicitly) all human development to be of European origin, starting with the Greeks and Romans. Amin demonstrated, with great clarity and lucidity, how this ideology is leveraged to reinforce an actually existing global capitalism that consolidates wealth and power in Europe (and its Anglophone off-shoots) whilst perpetuating poverty and subjugation in Africa, Asia and Latin America.

Amin ruthlessly deconstructs the Eurocentric view of history, pointing out for example that Ancient Greece wasn’t in the slightest bit ‘European’ in its outlook; it was engaged in intense exchange of ideas and goods with Egypt, Mesopotamia and Persia (and to some extent China and India), at a time when Western Europe was “a backward and barbarous periphery”. It was only via the Crusades (in the 12th and 13th centuries AD) that the Italian towns were able to start asserting themselves as a global force, having won a monopoly on navigation in the Mediterranean.

Europe did not participate in the general development of the pre-modern system until very late, after the year 1000… At the dawn of the Christian era the population of Europe, including Italy, was about 20 million (8 per cent of the world population, less than 30 per cent of that of China, 50 per cent of that of the Middle East)… Until the year 1000 the productivity of European agriculture was greatly inferior to that of the civilised regions of China, India and the Middle East, and the continent still had no towns.3

By exposing the clear logical flaws of Eurocentric universalism, Amin was able to show that the dominance of modern global capitalism, far from being a permanent and pre-ordained set of affairs (or ‘end of history’), is the prodeuct of the very specific circumstances arising from Western Europe’s two major take-offs – at the end of the 15th century (the colonisation of the Americas) and the 19th century (the industrial revolution and the colonisation of much of the rest of the world). Once this ideology is challenged, it becomes far easier to visualise alternative political and economic systems to the Eurocentric nirvana of monopoly capitalism.

Critic of capitalism

Samir Amin made an in-depth analysis of modern wild-west capitalism – widely referred to these days as neoliberalism, but labelled more specifically by Amin as a “system of generalised monopolies based on an extreme centralisation of control over capital, accompanied by a generalisation of wage-labour”.4 This is different from the monopoly capitalism of a hundred years ago, in that “monopolies are now no longer islands in a sea of other still relatively autonomous companies, but are constitutive of an integrated system.” Even small and medium companies “are locked in a network of control put in place by the monopolies. Their degree of autonomy has shrunk to the point that they are nothing more than subcontractors of the monopolies.”5 Such a system is held in place throughout the globe via the monopolisation of technology, natural resources, finance, the media, and military capacity.

Although the capitalist class considers itself to be very modern and scientific, it has merely replaced a heavenly god with a metallic one. “‘Moneytheism’ has replaced monotheism. The ‘market’ rules like the ancient God.”6 This chimes with Marx’s biting observations about the ‘fetishisation’ of commodities under capitalism.

In the world of politics, this system of generalised monopolies is manifested as a “low-intensity democracy” in which people are encouraged to be passive, “devoid of authentic freedom, reduced to the status of passive consumers/spectators”. In essence Amin describes a plutocracy, with the nuance that “you are free to vote for whomever you want, because your choice has no importance”.7 This broadly correct assessment of course has its exceptions and caveats, and Amin was enthusiastic about the possibilities of Podemos and Syriza in terms of challenging the status quo in Europe.8

The long transition to socialism

In the same way that capitalism first developed within feudalism before breaking out of it, the long transition of world capitalism to world socialism is defined by the internal conflict of all the societies in the system between the trends and forces of the reproduction of capitalist relations and the (anti-systemic) trends and forces, whose logic has other aspirations – those, precisely, that can be defined as socialism.9

Although his analysis of capitalism makes for bleak reading, Samir Amin nonetheless remained a revolutionary optimist, a firm believer in a socialist future that will emerge – indeed is emerging – through the irreconcilable contradictions of capitalism. He vigorously rejected the idea that socialism has failed and that capitalist ‘liberal democracy’ has been permanently established as the pinnacle of social and economic organisation. As Vijay Prashad notes, “he was not interested in defeat”.10

In this framework, the retreats suffered by the socialist world – particularly the collapse of the European socialist states between 1989 and 1991 – should not be considered as the death of the socialist project, but rather as part of the inevitable ebb and flow of a complex historical trajectory that could take hundreds of years but which nonetheless has an inexorable tide. A similar idea was formulated by the Communist Party of China in response to the collapse of the USSR and the European people’s democracies. Deng Xiaoping famously observed in 1992: “Feudal society replaced slave society, capitalism supplanted feudalism, and, after a long time, socialism will necessarily supersede capitalism. This is an irreversible general trend of historical development, but the road has many twists and turns. Over the several centuries that it took for capitalism to replace feudalism, how many times were monarchies restored! Some countries have suffered major setbacks, and socialism appears to have been weakened. But the people have been tempered by the setbacks and have drawn lessons from them, and that will make socialism develop in a healthier direction. So don’t panic, don’t think that Marxism has disappeared, that it’s not useful any more and that it has been defeated. Nothing of the sort!”11

On the controversial subject of China and its role in the global transition to socialism, Amin displayed a clarity of understanding that is all too rare. In his recent writings, he spoke of China as “perhaps the only country in the world today which has a sovereign project.” That is: China is successfully pursuing its own development model, designed by its own government and not the institutions of international finance capital. “China is walking on two legs: following traditions and participating in globalisation. They accept foreign investments, but keep independence of their financial system. The Chinese bank system is exclusively state-controlled… That is the best model that we have today to respond to the challenge of globalist imperialism.”12 The results of China’s strategy have been “simply amazing. In a few decades, China has built a productive, industrial urbanisation that brings together 600 million human beings, two-thirds of whom were urbanised over the last two decades (almost equal to Europe’s population!). This is due to the plan and not to the market.”13

The indispensable nature of multipolarity

Samir Amin considered that, given the economic, political and ideological stranglehold imposed by western finance capitalism, the first step towards a globalised socialism was to encourage the development of a multipolar world: a world with multiple power bases; a set of geopolitical spaces in which political and economic control is exercised by the people of those spaces rather than by the European and North American elite; a world which will bring about “the defeat of Washington’s hegemonic project for military control of the planet”.14 Such an environment “makes possible the maximum development of anti-systemic forces.”15 Multipolarity is an increasingly popular concept, but Amin was a very early proponent, having first discussed it in his 1985 book Delinking: Towards a Polycentric World.

Amin witnessed and welcomed the left tide in Latin America, the rising cooperation between China and Russia, the establishment of BRICS, ALBA and other major projects of regional or south-south cooperation that are slowly breaking down hegemonism. However, he also recognised the possibility of a violent, unpredictable and irrational reaction to all this – such as the Make America Great Again lunacy of the current US administration. “The world now is in serious danger. The collective imperialism of the US, Western Europe and Japan are run by US leadership. In order to keep their exclusive control over the whole planet, they do not accept independence of other countries. They do not respect the independence of China and Russia. That is why we are about to face continuous wars all over the world. The radical Islamists are the allies of imperialism, because they are supported by the US in order to carry out destabilisation. This is permanent war.”

He went on to propose a clear strategic response: “Russia should unite with China, the Central Asian countries, Iran and Syria. This alliance could be also very attractive for Africa and good parts of Latin America. In such a case, imperialism would be isolated.”16

Taking Samir Amin’s work forward

Samir Amin was a brilliant and creative Marxist, an uncompromising anti-imperialist, a powerful voice for the oppressed, and a visionary of a socialist world. His work mapping the past, present and future of humanity is a weighty inheritance that the global progressive forces must now take forward.


  1. Via Twitter, 12 August 2018 

  2. Via Twitter, 12 August 2018 

  3. Samir Amin: Global History: A View from the South, Pambazuka Press, 2010 

  4. Samir Amin: The Implosion of Contemporary Capitalism, Monthly Review Press, 2013 

  5. Pambazuka: Audacity, more audacity, 2001 

  6. Global History: A View from the South, op cit 

  7. The Implosion of Contemporary Capitalism, op cit 

  8. MR Online: Glory to the Lucid Courage of the Greek People, Facing the European Crisis, 2015 

  9. Samir Amin, Russia and the Long Transition from Capitalism to Socialism, Monthly Review Press, 2016 

  10. The Hindu: Death of a Marxist, 2018 

  11. Deng Xiaoping, Excerpts from Talks Given in Wuchang, Shenzhen, Zhuhai and Shanghai, 1992 

  12. Defend Democracy Press: Samir Amin: How to Defeat the Collective Imperialism of the Triad, 2016 

  13. Monthly Review: China 2013 

  14. Samir Amin, Beyond US Hegemony? Assessing the Prospects for a Multipolar World, Zed Books, 2013 

  15. Russia and the Long Transition from Capitalism to Socialism, op cit 

  16. How to Defeat the Collective Imperialism of the Triad, op cit 

Is China the new imperialist force in Africa?

The recent high-profile summit of the Forum on China-Africa Cooperation (FOCAC), held in Beijing at the beginning of September, has inspired some familiar accusations in the North American and West European press: China is the new colonial power in Africa; China is attempting to dominate African land and resources; Africa is becoming entangled in a Beijing-devised debt trap; Chinese investment in Africa only benefits China; and so on.

This article addresses these accusations and concludes that they are based on shaky foundations; that China is by no means an imperialist power; that increasing Africa-China relations are of significant benefit to the people of Africa; that Chinese assistance and investment could well be the key factor in breaking the cycle of underdevelopment and poverty in Africa.

What is imperialism?

If we’re going to understand whether or not China is imperialist, it’s a good idea to agree what imperialism is, since the word suffers from fairly widespread misinterpretation. Based on the characteristics of imperialism outlined in Lenin’s classic study, Imperialism: The Highest Stage of Capitalism, many conclude that China is an imperialist country. After all, it has several enormous companies that could reasonably be described as monopolies; it has a handful of very large (state-owned) banks that have significant influence on investment; and it’s increasingly engaged in the ‘export of capital’, investing in business operations around the world.

However, it should be obvious enough that no definition of the word imperialism is useful if it doesn’t include the concept of domination. The word derives from the Latin imperium, meaning supreme authority, or empire. There is no imperialism without empire. Which is not to say that imperialism no longer exists now that the colonial era is (for the most part) finished; it’s perfectly possible to maintain a de facto empire, for example through participating in the domination of another country’s markets.

A reasonable, concise definition of imperialism is put forward by the political analyst Stephen Gowans: “imperialism is a process of domination guided by economic interests.”1 This process of domination can be characterised as “the activity, enterprise and methodology of building empires”. However, empires “can be declared and formal, or undeclared and informal, or both. Whatever form they take, empires are structures predicated on systems of domination, of one country or nation over another.” For example, the US has few actual colonies, but it unquestionably uses its enormous economic and political muscle to dominate other countries, with a view to creating conditions for its own capitalist class to more rapidly expand its capital.

The recently-deceased Egyptian economist Samir Amin describes how “the countries in the dominant capitalist centre” – by which he means the US, Europe and Japan – leverage “technological development, access to natural resources, the global financial system, dissemination of information, and weapons of mass destruction” in order to dominate the planet and prevent the emergence of any state or movement that could impede this domination. The vast accumulation of capital in the imperialist heartlands has its counterpart in a ‘lumpen-development’ in much of the rest of the world – “a dizzying growth of subsistence activities, called the informal sphere — otherwise called the pauperisation associated with the unilateral logic of accumulation of capital.”2

The US goes to considerable lengths to build a global economic order that suits its own interests, and in so doing it actively diminishes the sovereignty of other countries. The most extreme – but sadly not uncommon – example of this is imperialist war: using military means to secure economic and political outcomes, such as we have seen recently in Libya, Iraq, Afghanistan and Yugoslavia.

We can perhaps then condense the idea of imperialism down to a fundamentally unequal relationship between countries (or blocs of countries) at differing levels of development, with the more developed countries using their military and financial power to produce outcomes that favour themselves and harm the less developed countries.

If we can prove that China is involved in this type of activity – that it seeks to dominate foreign markets and resources, that it uses its growing economic strength to affect political decisions in poorer countries, that it engages in wars (overt or covert) to secure its own interests – it would then be reasonable to conclude that China is indeed an imperialist country and that its engagement with Africa is an example of imperialism.

What imperialism in Africa looks like

At this point we’ll take a brief look at what imperialism in Africa has looked like in the past. Perhaps, in so doing, we’ll stumble upon some characteristics that can also be found in China’s relationship with Africa today.

In his classic 1972 study How Europe Underdeveloped Africa, the Guyanese activist-scholar Walter Rodney catalogues Europe’s relationship with Africa from the early days of the transatlantic slave trade through to the post-colonial era. The story that emerges is one of systematic plunder and an active underdevelopment that helped to furnish European development.

Rodney notes that, in the 16th century, several areas of Africa were on a path of technical progress similar to, albeit slightly behind, Western Europe: “Several historians of Africa have pointed out that after surveying the developed areas of the continent in the 15th century and those within Europe at the same date, the difference between the two was in no way to Africa’s discredit. Indeed, the first Europeans to reach West and East Africa by sea were the ones who indicated that in most respects African development was comparable to that which they knew.”3

However, the European powers were able to use certain advances – most notably in the areas of shipbuilding and weapons manufacture – to establish a profoundly unequal trade relationship with Africa. This, along with the need to find a capable labour force for the new American colonies, laid the ground for the transatlantic slave trade, which is estimated to have denuded the African continent of up to half its population. Rodney poses the question: “What would have been Britain’s level of development had millions of its people been put to work as slaves outside of their homeland over a period of four centuries?”

The conversion of Africa into a resource pool for European capital was a powerful engine of European capitalist growth in the 17th, 18th and 19th centuries. As Marx famously wrote, “the discovery of gold and silver in America, the extirpation, enslavement and entombment in mines of the aboriginal population, the beginning of the conquest and looting of the East Indies, the turning of Africa into a warren for the commercial hunting of black skins, signalled the rosy dawn of the era of capitalist production.”4

The colonial occupation of Africa, which lasted from the 1880s until the wave of liberation in the second half of the 20th century, served to significantly deepen the economic subjugation of the continent. Enforced by a fascistic military repression – most notoriously in the Belgian colony of Congo, where natives’ failure to meet the rubber collection quota was punishable by death – European colonialism allowed for the most extravagant exploitation of African labour and natural resources, whilst offering practically nothing in terms of economic progress for the local population.

Empire apologists in Britain, France and Portugal occasionally insinuate a ‘good side’ onto their erstwhile empires – after all, were railways and schools not built? Yet the sum total of these things (which anyway were built specifically to meet the needs of the colonial masters) is vanishingly small – so much so that, “the figures at the end of the first decade of African independence in spheres such as health, housing and education are often several times higher than the figures inherited by the newly independent governments”. As Rodney observes, “it would be an act of the most brazen fraud to weigh the paltry social amenities provided during the colonial epoch against the exploitation, and to arrive at the conclusion that the good outweighed the bad.”

European colonialism contributed nothing to the technological or institutional development of Africa, because this would have created competition for European capitalism and impeded the far more important task of draining maximum possible wealth from the continent.

But imperialism in Africa is not just a thing of the past; it didn’t end with the independence of the former colonies. As Samir Amin writes: “The dominant capitalist centres do not seek to extend their political power through imperial conquest because they can, in fact, exercise their domination through economic means.”5 Since the 1980s, the principal mechanism of imperialist domination in Africa has been economic blackmail: international credit agencies obliging governments to sign up to harmful economic strategies. The most notorious (and typical) example of this is the Structural Adjustment Program (SAP); SAPs are loans from the IMF and World Bank, typically taken out in a crisis situation (in response to a drought, for example), and disbursed on the condition that the recipient country implement a packet of ‘neoliberal’ reforms – privatising key industries and resources, opening up markets to international competition, and liberalising prices.

The SAPs have been a disaster for Africa. Scarce resources such as water have been taken out of the public domain and placed in the hands of globalised privateers. Nascent industries, previously protected by governments trying to develop home-grown manufacturing, have been decimated, dreams of development dashed, and vast regions returned to a prostrate position in the global economy, supplying unimproved raw materials to a market they have no meaningful influence over.

This is imperialism, by any reasonable definition. Advanced western countries, often ganging up in order to achieve their aims vis-a-vis the poorer countries, force nominally independent states to undertake economic measures that are specifically designed to benefit those same advanced western countries. In the modern era, this is precisely what the underdeveloping of Africa looks like. And the results speak for themselves: “after nearly thirty years of using ‘better’ (that is, free-market) policies, Africa’s per capita income is basically at the same level as it was in 1980.”6

Mozambican independence leader Samora Machel, president from 1975 until his death (almost certainly at the hands of the apartheid South African security services) in 1986, spoke bitterly about the imperialist countries’ visions for post-colonial Africa: “They need Africa to have no industry, so that it will continue to provide raw materials. Not to have a steel industry. Since this would be a luxury for the African. They need Africa not to have dams, bridges, textile mills for clothing. A factory for shoes? No, the African doesn’t deserve it. No, that’s not for the Africans.”7

Various well-paid academics assert that western imperialism is a thing of the past, that Europe and North America have changed their ways, and that Africa is now treated as an equal. While it is palpably false that western imperialism is a thing of the past (is it not imperialism when Nato launches a war on Libya, plunging it into a state of chaos and desperate poverty, in order to remove a government that had consistently refused to adhere to the economic and political ‘rules’?), it’s true that Europe and North America are less reliant on the exploitation of Africa than they once were. This demonstrates only that imperialism can’t be separated from its historical context. Western Europe, North America and Japan have reached a level of productivity and technological advance such that outright plunder of other nations constitutes only a relatively small part of their economic activity; however, they reached this point to a significant degree owing to their ruthless oppression of less developed countries. Thus the designation of a given country as ‘imperialist’ necessarily includes a historical component.

Regardless of these subtleties, Euro-American imperialism maintains an active foothold in Africa today, via a combination of economic blackmail, political manoeuvring, military intervention, and military mobilisation.

A brief timeline of China’s engagement with Africa

After the establishment of the People’s Republic of China in 1949, the Chinese leadership moved quickly to create bonds of solidarity between China and the African liberation movements. China was a leading supporter of the Algerian war of liberation and an early supporter of the South African struggle against white minority rule. Nelson Mandela recounts in Long Walk to Freedom that he encouraged Walter Sisulu, then secretary-general of the African National Congress, to visit China in 1953 in order to “discuss with the Chinese the possibility of supplying us with weapons for the armed struggle.”8 The links made during this trip laid the ground for the establishment in the early 1960s of a Chinese military training programme for the newly-founded uMkhonto we Sizwe – the ANC’s armed wing. (An interesting aside: two currently serving African heads of state received military training in China in the 1960s: Eritrean president Isaias Afwerki, and Zimbabwean president Emmerson Mnangagwa.)

Chinese premier Zhou Enlai conducted a landmark tour of ten African nations between December 1963 and January 1964, during which he consolidated China’s anti-imperialist connection with some of the leading post-colonial African states. A few years later, China provided the financing and knowhow for the construction of the Tanzam Railway, which runs 1,860km from Dar es Salaam, the then Tanzanian capital and seaport, to central Zambia. Built with the primary purposes of fomenting economic development and helping Zambia to break its economic dependence on the apartheid states of Rhodesia and South Africa, the Tanzam has been described as “the first infrastructure project conceived on a pan-African scale”.9 It remains an enduring symbol of China’s friendship with independent Africa.

Well into the 1980s, dozens of large state farms were built in Africa as part of the Chinese aid programme – in Tanzania, Zimbabwe, Mali, Congo Brazzaville, Guinea and elsewhere. The US scholar Deborah Brautigam notes that, however, “during the 1970s and 1980s, the Chinese aid program shifted to emphasise much smaller demonstration farms, working with local farmers to teach rice farming and vegetable cultivation.”10

In the 1980s and 90s, partly reflecting shifting political priorities in China and partly in response to data indicating that many of the aid-constructed projects were no longer working very well (if at all), China started to put its engagement with Africa on a more commercial footing, focusing on mutually beneficial deals and joint ventures. China has since become Africa’s largest trading partner, with a total trade volume of $170 billion in 201711, well ahead of the US-Africa figure of $55 billion.12

In addition to trade, China also provides vast low-cost loans for infrastructure projects, with nearly $100 billion loaned to African states by Chinese state-owned banks between 2000 and 2015. A recent article in the Guardian notes that “some 40% of the Chinese loans paid for power projects, and another 30% went on modernising transport infrastructure. The loans were at comparatively low interest rates and with long repayment periods.” The article continues: “Chinese infrastructure projects stretch all the way to Angola and Nigeria, with ports planned along the coast from Dakar to Libreville and Lagos. Beijing has also signalled its support for the African Union’s proposal of a pan-African high-speed rail network.”13

Development, not underdevelopment

“We should jointly support Africa’s pursuit of stronger growth, accelerated integration and industrialisation, and help Africa become a new growth pole in the world economy.” (Xi Jinping)14

The most important point regarding China’s engagement with Africa is that it stimulates development rather than underdevelopment. In that crucial sense, it is profoundly different from the relationship that the US and the major European powers have had with Africa. China’s aid and investment packages promote host countries’ modernisation, technical knowhow and infrastructure. As it stands, manufacturing constitutes only 10 percent of value added in Africa. “Ghana sends cocoa beans to Switzerland, for instance, then imports chocolates. Angola exports crude oil and imports nearly 80 percent of its refined fuel.”15 This is an unsustainable situation that keeps Africa in a subservient position. Industrialisation is the indispensable next step, and this relies on infrastructure, technology and knowledge transfer.

As an aside: even if China’s ambitions were essentially predatory, its presence as an alternative source of investment is beneficial for African economies. Ha-joon Chang notes that, in the 1990s, China became a “major lender and investor in some African countries, giving the latter some leverage in negotiating with the Bretton Woods institutions and the traditional aid donors, such as the US and the European countries”.16

Beyond that, Chinese investment has made possible a fast-expanding infrastructure network that will underpin African economic development for generations to come. This includes railways, schools, hospitals, roads, ports, factories and airports, along with “new tarmac roads linking major regional hubs, including the various townships with proper connection to large cities”.17 By contrast, precious little US/British investment in Africa goes towards infrastructure.

In 2017, China funded over 6,200km of railway and over 5,000km of roads in Africa.18 Thanks in no small part to Chinese finance and expertise, Ethiopia last year celebrated the opening of the first metro train system in sub-Saharan Africa,19 along with Africa’s first fully electrified cross-border railway line, the Ethiopia-Djibouti electric railway.20

Lack of electrification is a major problem for most African countries. According to Deborah Brautigam, “the Latin American supply of electricity is 50 times higher, per rural worker, than sub-Saharan Africa’s”.21 Over 600 million people across the continent have no reliable access to electricity. Many of the biggest Chinese investment projects in Africa are focused on power generation – indeed, 40% of all Chinese loans to Africa last year went towards power generation and transmission.22 The bulk of this energy investment is in hydropower and other renewal technologies.23 For example, China’s Eximbank is providing 85% of the financing for Nigeria’s Mambila hydroelectric power project,24 which will constitute the country’s largest power plant, helping to get electricity to the approximately 40 percent of Nigerians that don’t currently have access.25 It was announced a few months ago that China Eximbank would also provide the bulk of the $1.5 billion funding for Zimbabwe’s largest ever power development project.26

Ngozi Okonjo-Iweala, Nigeria’s finance minister from 2003 to 2006 and from 2011 to 2015, notes that “China worked with us to get a balanced package of assistance that has helped build the light rail system in Abuja and four new airport terminals in Lagos, Port Harcourt, Kano and Abuja, among other projects.”27 She reflects on the possibilities for extensive cooperation between Africa and China in the realm of sustainable development: “Together, China and Africa make up one third of the world’s population. Increasing ties between the two could have a vast positive impact for the world’s economy and climate. China’s experiences and expertise should go a long way in helping African countries develop their renewable resources.“

Do Chinese state banks make these investments for purely altruistic reasons? They do not. “China is poor in natural resources, the notable exception being rare minerals, and as a consequence has no choice but to look abroad. Africa, on the other hand, is extremely richly endowed with raw materials, and recent discoveries of oil and natural gas have only added to this.”28 Deals are negotiated on a case-by-case basis with the two sides as equal partners. The whole arrangement has nothing in common with the west’s historic relationship with Africa. As the Zambian economist Dambisa Moyo writes, “the motivation for the host countries is not complicated: they need infrastructure, and they need to finance projects that can unlock economic growth… This is the genius of the China strategy: every country gets what it wants… China, of course, gains access to commodities, but host countries get the loans to finance infrastructure developmental programs in their economies, they get to trade (creating incomes for their domestic citizenry), and they get investments that can support much-needed job creation.”29

Many African countries are already benefiting greatly from their relations with China. As Martin Jacques puts it: “China’s impact on Africa has so far been overwhelmingly positive. Indeed, it is worth asking the question as to where Africa would be without Chinese involvement… China’s involvement has had the effect of boosting the strategic importance of Africa in the world economy.”

China is ploughing resources into educational cooperation with African countries, recently surpassing the US and UK to become the number one destination for anglophone African students (and second most popular destination overall, after France) – a dramatic increase that is explained in large part by “the Chinese government’s targeted focus on African human resource and education development”.30 In his speech to the recent FOCAC summit, Xi Jinping said China will “provide Africa with 50,000 government scholarships and 50,000 training opportunities” in the next three years.31 Even for students without scholarships, China is a popular destination for African students, because its tertiary education system is more affordable than the west’s, and is increasingly of comparable quality and prestige.

China also provides substantial medical aid to Africa, spending an estimated $150 million annually on malaria treatment, crisis response, medicine provision, and support for building hospitals and pharmaceutical factories. In response to the Ebola crisis in 2014, “China dispatched more than 1,000 medical professionals to West Africa, providing 750 million RMB ($120 million) in aid.”32

Non-interference

China has received no shortage of criticism owing to its willingness to work with states such as Zimbabwe and Sudan, which are subjected to boycotts and sanctions by the US-led ‘international community’. Such criticisms are hypocritical and vacuous. China has a long-standing position of non-interference in the political affairs of other countries. As far back as 1955, then-Premier Zhou Enlai sketched the Chinese vision of peaceful and cooperative development at the historic Afro–Asian Conference in Bandung: “By following the principles of mutual respect for sovereignty and territorial integrity, non-aggression, non-interference in each other’s internal affairs, equality and mutual benefit, the peaceful coexistence of countries with different social systems can be realised.”33

Such a position is quite obviously superior to the US/European system of active interference – ie imperialism. China doesn’t participate in or sponsor wars in Africa; it doesn’t engineer coups, subvert elections or finance political campaigns. China has committed no massacres in Africa, nor does it control any private armies. China has no record of assassinating African leaders, encouraging separatist movements, or creating political instability. It doesn’t maintain lobbyists or advisers whose job is to pressure African politicians. China has not demanded ‘structural adjustment’ in any of the countries it invests in; no privatisation, no deregulation, no demands for hollowing out government. China doesn’t use coercion or blackmail. It bids for contracts, and often wins them, mainly because its prices are fair, its costs low, and its quality of work high. In summary, “China appears wholly uninterested in assuming sovereign responsibility and particularly in shaping h social and political infrastructure of host nations”.34

At the recent FOCAC summit, Xi Jinping summed up the Chinese approach to engagement with Africa as follows: “The Chinese people respect Africa, love Africa and support Africa. We follow a ‘five-no’ approach in our relations with Africa: no interference in African countries’ pursuit of development paths that fit their national conditions; no interference in African countries’ internal affairs; no imposition of our will on African countries; no attachment of political strings to assistance to Africa; and no seeking of selfish political gains in investment and financing cooperation with Africa.”

The “five-no” approach is an explicit rejection of imperialist strategy. Rather than criticise China for its policy of non-intervention, it would be much better if other countries could follow its example.

Some common criticisms

Chinese companies only employ Chinese workers

An oft-repeated criticism of Chinese economic activity in Africa is that Chinese companies only employ Chinese workers. This is simply not true. In fact, China creates more jobs in Africa than any other investor.35 Deborah Brautigam, one of the few western China experts to base their work on actual data, writes that “surveys of employment on Chinese projects in Africa repeatedly find that three-quarters or more of the workers are, in fact, local.”36 This is consistent with the findings of Giles Mohan, whose team undertook extensive on-the-ground research in West Africa. “Contrary to the dominant assertion that Chinese companies operating in Africa tend to rely on labour imported from China, in most of the eighty-five Chinese enterprises we studied in Ghana and Nigeria, a substantial proportion, and often the majority, of the workforce was African.”37

South African president Cyril Ramaphosa recently spoke of South Africa’s experience with Chinese companies: “When China invests, it sends key managers, but the bulk of the people who do the work are South Africans.”38 Similarly, Namibian president Hage Geingob stated earlier this year that “no country in the world has added so much value to our products as China has. China has done a lot of technology transfer and job creation.”39

Early-stage projects, particularly in countries where China has little experience, tend to be staffed primarily by Chinese employees, but the clearly emerging pattern is for this ratio to be reversed over time.

China has caught Africa in a debt trap

A recent article by John Pomfret in the Washington Post describes Chinese investment strategy as “imperialism with Chinese characteristics”, and claims that “China’s debt traps around the world are a trademark of its imperialist ambitions.”40 Grant Harris, Barack Obama’s former adviser on Africa, writes that “Chinese debt has become the methamphetamines of infrastructure finance: highly addictive, readily available, and with long-term negative effects that far outweigh any temporary high.”41 Rex Tillerson, US secretary of state until his recent replacement by the even more hawkish Mike Pompeo, commented in March that “China’s approach has led to mounting debt and few, if any, jobs in most countries.”42

Such scare-mongering statements ignore the rather important detail that, “from 2000 to 2016, China’s loans only accounted for 1.8 percent of Africa’s foreign debts, and most of them were invested in infrastructure.”43

Investment generally entails some level of debt; the question is whether African countries are getting a good deal. Chinese investment is welcomed across the continent, since it is overwhelmingly directed towards essential projects: developing infrastructure, building schools, building hospitals, cleaning water, supplying electricity, building factories. As a result, the needs of ordinary Africans are being met, and the debts are typically repaid in a sustainable (and fairly negotiated) way using the host countries’ natural resources.

Chinese loans tend to be significantly lower interest than the equivalents from the Bretton Woods institutions and the major western banks; many are interest-free. Furthermore, there have been several rounds of debt relief, where the debts of the poorest African countries have been written off. The recent FOCAC summit promised $60 billion worth of new investment, including $15 billion of grants, interest-free loans and concessional loans, as well as $5 billion specifically to support the importing of African produce to China. Cyril Ramaphosa noted that “if some African countries can’t keep up with their debt payments, the debt will be forgiven”.44 By no reasonable definition is this a “debt trap”.

China is grabbing African land

In recent years, numerous headline-grabbing articles have claimed that China is in the process of sending millions of peasants to Africa in order to grow food for China.45 China is, apparently, a “land grabber”, a rising colonial power. And yet, “no one has yet identified a village full of Chinese farmers anywhere on the continent. A careful review of Chinese policy shifts shows steadily rising support for outward investment of all kinds but no pattern of sponsoring the migration of Chinese peasants, funding large-scale land acquisitions in Africa, or investing ‘immense sums’ in African agriculture. Finally, according to the United Nations Commodity Trade database, it is China that has been sending food to Africa. While this could (and should) change, so far, the only significant food exports from Africa to China have been sesame seeds and cocoa, produced by African farmers.”46

A mutually beneficial friendship

Accusations of Chinese imperialism in Africa, typically levelled by apologists for western imperialism,47 are not substantiated by facts. China’s development model isn’t based on, and has never been based on, colonial exploitation. On the contrary, China is keen to see Africa emerge as a key player in a multipolar world in which a relatively even balance of forces acts to preserve global peace and stability. This explains, for example, China’s enthusiastic support for the African Union and its commitment to the AU’s development agenda.48 That China’s engagement is a positive thing for Africa is evidenced by the near-universal enthusiasm for it among African governments (it’s telling to note that twice as many African heads of state attended the FOCAC summit than the recent meeting of the UN General Assembly).49

It’s hardly surprising that the concept of multipolarity is not universally esteemed within the imperialist heartlands. In particular the US ruling class is struggling to come to terms with the end of its uncontested hegemony; hence the desperate bid to ‘Make America Great Again’, which really means re-asserting US global dominance and taking the Chinese down a peg or two. The last thing the western ruling classes want to see is a thriving multipolarity based on mutually beneficial cooperation between independent states, bypassing and perhaps even ignoring the mandate of Washington, London and Paris. When people issue slanders about Chinese colonialism, they are feeding a narrative that seeks to maintain the imperialist status quo, even though they generally take the form of ‘concerned advice’. Such slanders should be resolutely exposed.


  1. Stephen Gowans, Patriots, Traitors and Empires: The Story of Korea’s Struggle for Freedom, Baraka Books, 2018 

  2. Samir Amin, The Implosion of Contemporary Capitalism, Monthly Review Press, 2013 

  3. Walter Rodney, How Europe Underdeveloped Africa, Pambazuka Press, 2012 

  4. Karl Marx, Capital: Volume 1 

  5. Samir Amin: Global History: A View from the South, Pambazuka Press, 2010 

  6. Ha-joon Chang, 23 Things They Don’t Tell You about Capitalism, Bloomsbury, 2010 

  7. Invent the Future: The Revolutionary Thought of Samora Machel, 2015 

  8. Nelson Mandela, Long Walk to Freedom, Back Bay Books, 1995 

  9. The Guardian: China in Africa: win-win development, or a new colonialism?, 2018 

  10. Deborah Brautigam, Will Africa Feed China?, Oxford University Press, 2015 

  11. Ministry of Commerce, People’s Republic of China: Statistics on China-Africa Bilateral Trade in 2017 

  12. US Census Bureau: Trade in Goods with Africa 

  13. The Guardian, op cit 

  14. Xi Jinping, The Governance of China, Foreign Languages Press, 2014 

  15. Washington Post: Xi Jinping is visiting Africa this week. Here’s why China is such a popular development partner, 2018 

  16. Ha-joon Chang, Economics: The User’s Guide, Pelican, 2014 

  17. The Diplomat: China and Ethiopia, Part 1: The Light Railway System, 2018 

  18. SCMP: What to know about China’s ties with Africa, from aid to infrastructure, 2018 

  19. CNN: Ethiopia gets the first metro system in sub-Saharan Africa, 2015 

  20. BBC News: Ethiopia-Djibouti electric railway line opens, 2016 

  21. Brautigam, op cit 

  22. China Daily: Investment creates hope, not debt trap, 2018 

  23. China Africa Research Initiative: More Bad Data on Chinese Finance in Africa, 2018 

  24. CNN: Nigeria announces $5.8 billion deal for record-breaking power project, 2017 

  25. See World Bank Data: Access to electricity (as of 2016) 

  26. New Zimbabwe: Mnangagwa commissions $1.5bln power plant, project Chinese funded, 2018 

  27. FT: Africa needs China’s help to embrace a low-carbon future (paywall), 2018 

  28. Martin Jacques, When China Rules the World: The End of the Western World and the Birth of a New Global Order, Penguin, 2012 

  29. Dambisa Moyo, Winner Take All: China’s Race For Resources and What It Means For Us, Penguin 2012 

  30. The Conversation: China tops US and UK as destination for anglophone African students, 2017 

  31. Xinhua: Full text of Chinese President Xi Jinping’s speech at opening ceremony of 2018 FOCAC Beijing Summit 

  32. The Diplomat: China’s Medical Aid in Africa, 2018 

  33. Wilson Center Archive: Main Speech by Premier Zhou Enlai at the Plenary Session of the Asian-African Conference, 1955 

  34. Dambisa Moyo, op cit 

  35. Xinhua: China becomes top job creator in Africa, expert says, 2017 

  36. Washington Post: China in Africa is not ‘neocolonialism.’ Here are the numbers to prove it, 2018 

  37. Giles Mohan, Ben Lampert, Daphne Chang and May Tan-Mullins: Chinese Migrants and Africa’s Development: New Imperialists or Agents of Change?, Zed Books, 2014 

  38. IOL: Those who call China colonial are jealous: Ramaphosa, 2018 

  39. Reuters: Namibia president says China not colonizing Africa, 2018 

  40. Washington Post: China’s debt traps around the world are a trademark of its imperialist ambitions, 2018 

  41. Time: China Is Loaning Billions of Dollars to African Countries. Here’s Why the U.S. Should Be Worried, 2018 

  42. QZ: China is pushing Africa into debt, says America’s top diplomat, 2018 

  43. China Daily: Investment creates hope, not debt trap, 2018 

  44. Ramaphosa, op cit 

  45. See for example The Guardian, The food rush: Rising demand in China and west sparks African land grab, 2009 

  46. Brautigam, Will Africa Feed China, op cit 

  47. Hillary Clinton comes to mind, eg Reuters: Clinton warns against “new colonialism” in Africa, 2011 

  48. African Union: African Union and China renew commitment to advance multilateral cooperation, 2018 

  49. Quartz: Twice as many African presidents made it to China’s Africa summit than to the UN general assembly, 2018 

Is China Still Socialist?

NB. This is extracted (and updated) from a much longer article – Will the People’s Republic of China go the way of the USSR? – published on 31 May 2018.


So long as socialism does not collapse in China, it will always hold its ground in the world. (Deng Xiaoping)1

The first of October marks the China’s National Day, the 69th anniversary of the founding of the People’s Republic of China. With China’s rise and its increasing importance to the global economy, China is a ‘hot topic’ in the world of politics and economics. And, after four decades of market-oriented economic reforms, many on the left are asking: to what extent can China reasonably be considered a socialist country?

After all, China today has nearly 500 billionaires and is the world’s top destination for foreign direct investment, attracting over $100 billion each year. There are branches of McDonalds and Starbucks in all major Chinese cities; and there is startling inequality between the coastal cities and the inland countryside, and between rich and poor more generally. There are stock exchanges in Shanghai and Shenzhen; there is finance capital; there is privately-owned capital. Is this really what Marx and Engels had in mind?

On the other hand, the People’s Republic of China has some interesting characteristics that make it rather different from the average capitalist country. Most importantly, although inequality has increased over the past 40 years, the standard of living for ordinary workers and peasants has risen dramatically along with it. Wealth under capitalism generally has its counterpart in poverty and exploitation (at home and/or abroad), but in China practically everyone enjoys a far better standard of life than they used to. Extreme poverty is on the cusp of being completely eliminated – an extraordinary achievement for a country of China’s size.

Secondly, China is run by a communist party that continues to adhere to Marxism-Leninism. While it no doubt suffers from corruption, and although its ideological purity has been diluted, its history and traditions mean that it derives its legitimacy and support from the masses of workers and peasants. As such, the Chinese state operates primarily in the interests of the working classes, unlike any capitalist state.

Thirdly, as much private capital as there is in China, the economy is still very much dominated and directed by the state.

So while China has introduced elements of capitalism in the 40 years since the start of ‘reform and opening up’, these do not constitute a negation of socialism, any more than they did in the New Democracy period in the 1950s, or under the New Economic Policy in the Soviet Union in the 1920s. The point of the reforms is to to lay the ground for a more advanced socialism: ”In order to realise communism, we have to accomplish the tasks set in the socialist stage. They are legion, but the fundamental one is to develop the productive forces so as to demonstrate the superiority of socialism over capitalism and provide the material basis for communism.”2

A workers’ state

The class nature of the state is one of the core themes of Marxism. Marx and Engels were the first to conclusively demonstrate that the state is not an impartial body sitting above society and operating for the common good; rather, its responsibility is to represent the interests of a given social class and the system of production relations that benefit it. In the case of capitalism, ”the executive of the modern state is nothing but a committee for managing the common affairs of the whole bourgeoisie”.3

In a socialist society, the state must serve the interests of the working class and its allies; it must protect working class power, defend it from the inevitable attacks from capital, and build a better life for people. Such a state can certainly incorporate market mechanisms, as long as these operate under the guidance of the state and introduce some benefit for working people, and as long as capital is not allowed to become politically dominant.

The Communist Party of China (CPC) conceptualises the capitalist elements of its economy as being at the service of socialist development. ‘Socialism with Chinese characteristics’ leverages the market to stimulate production, attract investment, encourage technical development, support peaceful coexistence with the capitalist world, and thereby raise the living standards of the Chinese people and pave the road for a higher stage of socialism, built on advanced technology. Market socialism can reasonably be considered a pragmatic and entirely Marxist answer to the exceedingly difficult problem of building socialism in a large, underdeveloped country under constant threat from a hegemonic US imperialism.

The Chinese government is extraordinarily popular among the Chinese people4, the reason being that it focuses precisely on the wellbeing of the masses rather than the profits of billionaires. “Meeting people’s needs, ranging from those in education, employment, social security, medical services, housing, environment, to intellectual and cultural life, is the top priority of the government.”5 This is constantly stressed by the leadership.

A government’s priorities can provide a useful indicator as to its ideology and the social forces it represents. The top priorities of the Chinese government in the present era are very much consistent with the demands of the Chinese people, in particular: protecting China’s unity and territorial integrity; improving living standards; clamping down on corruption; protecting the environment; eradicating poverty; maintaining peace and stability; and re-establishing China’s national prestige, all but wiped out in the ‘century of humiliation’ preceding the establishment of the PRC in 1949. The average citizen of the US or Britain would surely be pleased if their government embraced an equivalent set of priorities, meeting the needs of the masses, and yet this doesn’t happen, because of the resistance of the (capitalist) ruling classes of those countries.

The question of environmental conservation is instructive. A capitalist state has very limited freedom of action on this issue, due to the short-termist needs of expanding capital (for example, oil companies wield significant influence within US policy circles). A comprehensive strategy of environmental protection requires a huge investment: a production of use values that may not have corresponding exchange values; that is, production for people, not profit. In China, the government has a clear mandate to lead just such a strategy (even though there is a tension between development and conservation, both of which are essential for the Chinese people).

Over the last few years, China has quickly become the global leader in environmental protection, planning to “spend at least $360 billion on clean energy projects and create 13 million new renewable energy jobs by 2020”.6 At the same time as investing heavily in alternative energy sources such as solar, wind, and hydropower, it is divesting from coal, cancelling the construction of 104 new coal plants last year.7 The government has even set up an environmental police force to ensure compliance with green policy.8 China’s forest coverage has increased from around 18 percent in 2007 to 21.7 percent, with targets of 23 percent by 2020 and 26 percent by 2035.9 On clean energy, “the United States is actually playing catch-up to China… China has taken an undisputed leadership”.10 On pollution, “the results suggest that China’s fight against pollution has already laid the foundation for extraordinary gains in life expectancy.”11 These ambitious plans can be devised and carried out precisely because of the location of political power in the Chinese working class.

Public ownership still dominates, and the state is in charge of the economy

Although the number of employees of private enterprises has overtaken the number of employees of state- and collectively-owned companies, the basic economic agenda is set by the state. Private production is encouraged by the state only because it contributes to modernisation, technological development and employment. While some Marxists may insist that markets can have no place under socialism, it’s difficult to reconcile such a view with Marx’s own view of socialism as a transitional stage on the road to communism. China has proven in reality that it can use (heavily regulated) market mechanisms in order to more rapidly develop the productive forces and improve the living standards of its people.

It will come as a surprise to many readers to know that public ownership continues to dominate in China. There has been very little in the way of actual privatisation, in terms of transferring ownership of state enterprises into the hands of private capital; indeed, the state sector is several times bigger than it was in 1978, when the reforms were launched. Rather, private enterprise was allowed to develop alongside the state sector, and has grown at an even faster rate than the state sector (bear in mind that it started from a very low base).

The state maintains tight control over the most important parts of the economy, often referred to as the ‘commanding heights’: heavy industry, energy, finance, transport, communications, and foreign trade.12 Finance – which has a key influence over the entire economy – is dominated by the ‘big four’ state-owned banks.13 These banks’ primary responsibility is to the Chinese people, not private shareholders. China’s land was never privatised, although collectivisation was mainly rolled back. It remains owned and managed at the village level.

Tran Dac Loi, of the Communist Party of Vietnam, gives a very clear explanation of the relationship between state and market in a market socialist economy (note that Vietnam follows a very similar economic model to China): ”The market is managed and regulated by the socialist state in order to utilise the positive sides, minimise the negative ones, and direct market activities into implementation of given comprehensive development goals… The state economic sector should play the dominating role in key areas essential to macro economy such as energy, finance, telecommunications, aviation, railways, maritime, public transportation, etc… The land and natural resources remain within all-people ownership under the state management.”14

Tran continues: “We are aware that in the market economy in particular and in the transition period in general, it is impossible to avoid the gap between the rich and the poor; but the state and the whole society should focus on upholding the poor, supporting the disadvantaged, reducing poverty, increasing access to education, healthcare, social welfare as well as the improving and enhancing living standard of the people accordingly on every step of economic development… These are persistent and obligatory targets to be achieved in the development process towards socialism.”

Such an arrangement is fundamentally different to the organisation of production in a capitalist society.

Opening up has led to development

China’s opening up to foreign investment and its integration into global markets – particularly its 2001 accession to the World Trade Organisation – is often presented by leftists as prima facie evidence of its having become a capitalist country. British academic Jenny Clegg explains that WTO membership had nothing to do with capitalist restoration, and everything to do with developing China’s productive forces, strengthening its geopolitical position, and thereby building a better life for its people. China joined the WTO in order to able to “insert itself into the global production chains linking East Asia to the US and other markets, thus making itself indispensable as a production base for the world economy. This would make it far more difficult for the United States to impose a new Cold War isolation.” Further, China’s integration in the world economy has allowed it to be a part of “the unprecedented global technological revolution, offering a short cut for the country to accelerate its industrial transformation and upgrade its economic structure.”15

The opportunity to rapidly learn from the advanced capitalist countries’ developments in science and technology was the principal reason for ‘opening up’. Blockaded by the western countries after the revolution, and then cut off from Soviet support as a result of the Sino-Soviet split, China in 1978 was still relatively backward from a technological point of view, in spite of having made some great advances and having developed a standard of living for its people that was far ahead of other countries at a similar level of development. Deals with foreign investors were drawn up such that foreign companies trying to expand their capital in China were compelled to share skills and technology, and operate under Chinese regulation.16

Much as foreign investors might like to keep their technological secrets, they’ve had limited choice. Martin Jacques notes that, “as China has grown more powerful, the demand for technology transfer has become ever more insistent, with foreign companies, complain though they may, generally conceding.”17 The result is that China is now one of the world’s leading innovators in science and technology.

Commitment to Marxism

Only socialism can save China, and only Chinese socialism can lead our country to development – a fact that has been fully proved through the long-term practice of the Party and the state. (Xi Jinping)18

Through four decades of reform and opening up, the CPC has retained its commitment to Marxism. Deng Xiaoping was clear from the very beginning of the reform process that China “must keep to the socialist road. Some people are now openly saying that socialism in inferior to capitalism. We must demolish this contention… Deviate from socialism and China will inevitably revert to semi-feudalism and semi-colonialism. The overwhelming majority of the Chinese people will never allow such a reverse.”19

This is echoed today by the current leadership. As Xi Jinping puts it, “socialism with Chinese characteristics is socialism and nothing else. The basic principles of scientific socialism must not be abandoned; otherwise it is not socialism.”20

In no country in the world is Marxism studied as widely as it is in China. President Xi Jinping has a doctorate in Marxist philosophy. Marxism is part of the core curriculum at every level of the education system. Ninety million members of the Communist Party of China are required to engage in Marxist study. ”The whole party should remember: what we are building is socialism with Chinese characteristics, not some other ism”, says Xi.21 Indeed, the Communist Party of China considers itself “a loyal inheritor of the spirit of The Communist Manifesto”.22 Marx is considered “the greatest thinker of modern times”.23

It’s difficult to understand why China’s political leadership would go to such lengths to promote Marxism if they are intent on doing away with it. A far more likely explanation is that they’re genuine in their devotion to socialism and their resolve to strengthen it. Naysayers and purists will highlight flaws and inconsistencies, but this is nothing new or interesting. “Actually existing socialism will always fall short of the socialist ideal because it is precisely that ideal implemented within the confines of reality.”24

The evidence indicates that China continues to be a socialist country.

If the first century of human experience building socialism teaches us anything, it’s that the road from capitalism to socialism is a long and complicated one, and that ‘actually existing socialism’ varies enormously according to time, place and circumstances. China is building a form of socialism that suits its conditions, using the means it has at its disposal, in the extraordinarily challenging circumstances of global imperialist hegemony. No socialist experiment thus far – be it the Paris Commune, the Soviet Union, China, Cuba, Mozambique, or indeed Bolivarian Venezuela – can claim to have discovered a magic wand that can be waved such that peace, prosperity, equality and comprehensive human development are achieved overnight. China is forging its own path, and this is worthy of study and support.

In assessing the political nature of China, perhaps it’s best to give the final word to Fidel Castro:

If you want to talk about socialism, let us not forget what socialism achieved in China. At one time it was the land of hunger, poverty, disasters. Today there is none of that. Today China can feed, dress, educate, and care for the health of 1.2 billion people. I think China is a socialist country, and Vietnam is a socialist nation as well. And they insist that they have introduced all the necessary reforms in order to motivate national development and to continue seeking the objectives of socialism. There are no fully pure regimes or systems. In Cuba, for instance, we have many forms of private property… Practically all Cubans own their own home and, what is more, we welcome foreign investment. But that does not mean that Cuba has stopped being socialist.25

Happy birthday to the People’s Republic of China. Long may it continue along the road of socialism and internationalism.


  1. Deng Xiaoping,We must adhere to socialism and prevent peaceful evolution towards capitalism – conversation with Julius Nyerere, 1989 

  2. Deng Xiaoping, cited in John Ross: Deng Xiaoping and John Maynard Keynes, 2012 

  3. Marx and Engels, Manifesto of the Communist Party (chapter 1), 1848 

  4. See for example The World’s Most Popular Leader: China’s President Xi, December 2014 

  5. Xinhua: Socialism with Chinese characteristics: 10 ideas to share with world, 2017 

  6. Business Insider: China’s latest energy megaproject shows that coal really is on the way out, 2018 

  7. ibid 

  8. Bloomberg: China’s War on Pollution Will Change the World, 2018 

  9. Telegraph: China to plant forest the size of Ireland in bid to become world leader in conservation, 2018 

  10. The Guardian: US ‘playing catch-up to China’ in clean energy efforts, UN climate chief says, 2015 

  11. New York Times: Four Years After Declaring War on Pollution, China Is Winning, 2018 

  12. For a fuller discussion, see China: Capitalist or Socialist?, The Guardian (Communist Party of Australia), 2010 

  13. The ‘big four’ banks are: the Bank of China, the China Construction Bank, the Industrial and Commercial Bank of China and the Agricultural Bank of China. 

  14. Tran Dac Loi, Contribution at the International Forum of Left Forces, 2017 

  15. Jenny Clegg, China’s Global Strategy: Toward a Multipolar World, Pluto Press, 2009 

  16. Technology transfer is discussed in some detail in John Ross’s article Lessons of the Chinese economic reform, part 2, 1996 

  17. Martin Jacques, When China Rules the World, Penguin, 2012 

  18. Xi Jinping, The Governance of China, Foreign Languages Press, 2014 

  19. Deng Xiaoping, Uphold the Four Cardinal Principles, 1979 

  20. The Governance of China, op cit 

  21. Financial Times: Xi Jinping pledges return to Marxist roots for China’s Communists (paywall), 2016 

  22. Xinhua: Xi stresses importance of The Communist Manifesto, 2018 

  23. Xinhua: Marx’s theory still shines with truth, 2018 

  24. Return to the Source: Actually Existing Socialism in Vietnam, 2013  

  25. Fidel Castro, Interview in La Stampa, 1994