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Che Guevara: the Economics of Revolution

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Che Guevara: the Economics of Revolution Che Guevara Also by Helen Yaffe Che Guevara’s Enduring Legacy: Not the Foco, but the Theory of Socialist Transition, Latin American Perspectives, March 2009. Review of Diana Raby: Democracy and Revolution: Latin America and Socialism Today, Bulletin of Latin American Research, January 2009. Ernesto ‘Che’ Guevara: Rebel against Soviet Political Economy. Paper at the Economic History Review conference booklet, University of Exeter, England, March 2007. Che Guevara The Economics of Revolution Helen Yaffe © Helen Yaffe 2009 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The author has asserted her right to be identified as the author of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2009 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN-13: 978–0–230–21820–8 hardback ISBN-10: 0–230–21820–2 hardback ISBN-13: 978–0–230–21821–5 paperback ISBN-10: 0–230–21821–0 paperback This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. A catalog record for this book is available from the Library of Congress. 10 9 8 7 6 5 4 3 2 1 18 17 16 15 14 13 12 11 10 09 Printed and bound in Great Britain by CPI Antony Rowe, Chippenham and Eastbourne Contents Acknowledgements vi Foreword by Meghnad Desai viii List of Acronyms and Abbreviations xi 1 Introduction 1 2 Revolutionary Consolidation and the Emergence of the BFS 12 3 The Great Debate 45 4 Education, Training and Salaries 70 5 Administrative Control, Supervision and Investment 100 6 Collectivising Production and Workers’ Participation 131 7 Science and Technology 163 8 Consciousness and Psychology 199 9 Critique of the Soviet Manual of Political Economy 233 10 Guevara’s Legacy in Cuba 257 Appendix 1: Ministry of Industries Organigram 276 Appendix 2: Living to Tell – Short Biographies of the Principal Interviewees 277 Notes 290 Bibliography 331 Index 348 Acknowledgements Between autumn 1995 and summer 1996 I lived in Cuba with my sister – an austere time during the Special Period. Cubans dug deep to fi nd what they needed to survive, as individuals and as a socialist society. Thousands of Cubans, young and old, carried out voluntary labour in the fi elds and in the cities, determined that their Revolution would survive the crisis generated by the collapse of the socialist bloc and exacerbated by the punitive US blockade. This gave us a fi rst glimpse of the important relationship between consciousness and production which lies at the heart of the economics of revolution and is central to understanding Che Guevara’s work in Cuba. The book owes its content to the many protagonists who worked alongside Guevara in Cuba in 1959–65 and who patiently responded to my questions. Without them it would not have been possible. This history is almost as much their own as it is Guevara’s. Orlando Borrego Díaz showed endless patience and encouragement, as the list of interviews in the bibliography demonstrates. As Guevara’s deputy in Cuba, he provided a fascinating insight into the challenges they faced in the process of socialist transition. Ángel Arcos Bergnes offered me support and material from his own archive, and responded to my endless enquiries with the enthusiasm for which Guevara had praised him. Other important interviewees who allowed me to return for a second interrogation include Enrique Oltuski, Edison Velázquez and Tirso Sáenz. These revolutionaries share an exciting history as part of Guevara’s inner circle and their cooperation was motivated by a commitment to Guevara’s theory and practice, and the wish to disseminate knowledge about it. Several Cuban compañeros from the younger generation encouraged and facilitated the research in Cuba. Particularly, I would like to mention Rogelio Polanco Fuentes who, despite his overwhelming responsibilities as director of Juventud Rebelde among other posts, expressed great interest in the writing of this book and did more than I could have expected to provide contacts for me and organise interviews with revolutionary leaders. The Che Guevara Study Centre opened its archives and Tatiana Martínez Hernández gave me her own material and friendship. Kenia Serrano Puig and Nancy Coro Aguiar showed concern, friendship and support. To my adopted Cuban families – those of Yani, Mongui and Nilda – I am eternally grateful for hospitality during my frequent sojourns on the island. I am grateful to the Cuban publishing house Ciencias Sociales for permission to use material from their books, to vi Che Guevara vii Borrego for permission to devour the meeting transcripts and internal reports he compiled in 1966, and to Granma newspaper for providing me with the cover photo from their archives. In London the fi rst acknowledgement goes to Dr Colin Lewis at the London School of Economics (LSE), who has defended the intellectual integrity and authenticity of my endeavour since the outset and guided me towards academic discipline. Likewise, I am obliged to Professor Meghnad Desai, also at the LSE, who overwhelmed me with useful references and has written the foreword for this book, and to Professor James Dunkerley, formerly of the Institute for the Study of the Americas, who advised me on getting into print. The research which led to this book was funded by the Economic and Social Research Council. My gratitude goes to Taiba Batool for being so enthusiastic about this publication, and to all her colleagues at Palgrave Macmillan who have steered me through the editorial process, along with the team at Chase Publishing Services, and Carol Brickley who helped me to compile the index. I am indebted to Paul Bullock and David Yaffe for stimulating discussions about the theoretical material. Appreciation goes to all my compañeros who have shown that moral incentives can even function ‘in the belly of the beast’. I am grateful for the unconditional love and encouragement received from Daniesky, Susie and Leo, and to Max and Ella who bring me much joy. Finally, thanks to my parents Ann and David, who, in the words of Guevara, are ‘true revolutionaries motivated by great feelings of love’, who brought me up to think critically and, most importantly, to care. Foreword Meghnad Desai GUEVARA THE POLITICAL ECONOMIST Ernesto ‘Che’ Guevara is a romantic fi gure. He is perhaps the best loved or at least the most paraded global icon that the Revolutionary left can claim. Even more than the bearded founders of the movement, Che Guevara caught the imagination of the 1968 generation. He was young, handsome, fashionable and then he died in a jungle in Bolivia fi ghting American Imperialism single- handedly. So he went on posters and T-shirts and adorned many walls and waists. He was ‘one of us’ – we, of course, the torchbearers of the Red Revolution. From our comfortable bedsits and even our mortgaged houses we could see ourselves in guerrilla fatigues, cigar chomped in our mouths, battling the enemy just as he did. Then we went on to have another drink. In adoring Che Guevara the radical chic of the Sixties divorced him from his milieu which was the Cuban Revolution. The daily unglamorous tasks of keeping the Revolution alive, to feed the citizens, clothe them and nurse them, to meet the expectation that a socialist revolution is not just about guns and about fi ghting American power, but about achieving prosperity, more than capitalism can promise for the mass of the people. This is the boring task of the Revolutionary. Socialist Revolutions have only occurred thus far in poor countries characterised by an underdeveloped capitalism with low productivity, insuffi cient accumulation, feudal and monopolistic concentration of power and an impatient populace who support the Revolution with hopes of something better, quickly. The fact that profi ts come from exploitation of workers is axiomatic for the Revolutionary. But once the Revolution has happened and the exploiter has been removed, comes the crucial discovery. Even if all that profi t reverts to the workers, it is still insuffi cient to improve matters much. The problem of underdevelopment is not just that there is exploitation, but that there is insuffi cient output to meet basic needs even if all share equally. The problem of the Revolution is to use the methods of capitalism – hard work, effi ciency, elimination of waste and idleness, discipline at work – to accomplish the gains which socialism promises. It fell to Guevara as one of the principal members of the cadre to think about this problem. In a way, it is the task of how to be a good capitalist viii Che Guevara ix for socialist ends.
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