MARX' REVENGE The Resurgence of Capitalism and the Death of Statist Socialism MEGHNAD DESAI VERSO London. New York Two Revolutions and a Demolition The year 1989 was a historic one for two reasons. These reasons, though separate, are intimately linked. One was the fall of the Berlin Wall, symbolizing as it did the collapse of Soviet hegemony over Eastern Europe, followed soon after by the death of the one-party state in the Soviet Union itself. The other was that it was the bicentenary of the French Revolution. Zhou En Lai, asked what he thought about the French Revolution, is said to have replied: ' It is too soon to give a verdict.' Indeed, the bicentenary became an occasion for the airing of widely divergent interpretations of the meaning that the French Revolution had for the late twentieth century. Francois Mitter- rand, as a Socialist president, wanted to claim the Revolution for socialism emphasizing the rights of man. One of his guests was rude enough to claim that human rights had been earlier and more endurably established by the Bloodless Revolution of 1688 and the Bill of Rights which followed the year after. President George Bush was too diplomatic to agree with Margaret Thatcher who had made this claim, but then the American Revolution of 1776 had benefited from French material support as much as French, as well as English, ideas. The Revolution of 1789 is a perennial subject of debate among historians. Fran~ois Furet and Simon Schama are merely the most recent examples of historians who have espoused major revisionist interpretations, and no doubt the battle will continue.! But the one interpretation which has long held sway was the one that claimed 1789 as a precursor of the later revolutions - the unsuccessful one of 1848, the Paris Commune of 1871 and, of course , the Bolshevik Revolution of 1917. The Bolsheviks knew their history of 1789 intimately, and bandied about words like Thermidor and Bonapartism. And, of course, there was the Terror. Lenin as Robespierre has been a frequently used analogy. Trotsky decried Stalin as having embodied the reaction that Thermidor represented in that earlier Revolution. But throughout much of this century, if not the last two hundred years, there has been an identification of the French Revolution as a popular, democratic uprising, which brought down a feudal MARX' S REVENGE TWO REVOLUTIONS AND A DEMOLITION aristocratic ancien regime. Its earlier idealism inspired the pioneers of socialism; when Fukuyama claimed Hegel as the one person whose prophecies had been its occurrence presaged the birth of the modern era; and its later perversion fulfilled by the collapse of the Berlin Wall. How could it be that the philosopher affected a host of European intellectuals and artists - Hegel and Beethoven castigated as a totalitarian in the 1950s could be claimed, forty years later, as among them. prophet of the triumph of liberal democracy and capitalism?2 The fact that an established and powerful regime can be overthrown sud- Re-evaluations of philosophers are not unknown. Indeed, revisionism is denly, almost overnight, and replaced by those it previously ruled over, defines routine in the history of ideas, as of events. The Nobel laureate, Friedrich von the word revolution. It is a simplification, of course. Bastille Day, 14 July 1789 Hayek, was forgotten and derided in his forties and fifties, only to be' feted as did not change everything overnight. The Revolution was led by the middle one of the great economist-philosophers in his seventies and eighties. Or take class, and was not the friend of the masses at all times. But ever after, revolution the fate of John Maynard Keynes. He was said to have saved capitalism from has meant a sudden, total overthrow of one regime and its replacement by a Marx and communism. But in the hour of the triumphant resurgence of rule of the oppressed. capitalism, he is pronounced dead. His ideas, which were so dominant in the It was this notion of the overthrow of the ruling - by definition oppressive - 1950s and 1960s, are now devalued. regime by its oppressed that haunted Europe throughout the nineteenth What of Marx, then? Could his ideas come back? Or is he safely dead and century. At the end of the long nineteenth century (1815-1914) came the buried, along with socialism, to which his name has been attached? fulfilment of this nightmare. During 1917, Russia witnessed two revolutions: in I want to argue that in the triumphant resurgence of capitalism - and February and October. The October Revolution consciously claimed descent indeed, its global reach - the one thinker who is vindicated is Karl Marx. Not from the French Revolution of 1789. Uprisings in Germany, Hungary and only that. The demise of the socialist experiment inaugurated by October 1917 Austria soon followed, with disturbances in Northern Italy. None, however would not distress but cheer Karl Marx if, as an atheist, he occupies any part of succeeded, except for the October Revolution. It was this Revolution, and its Hell, Purgatory or Heaven. Indeed, if it came to a choice between whether the bastard offsprings in Eastern Europe, that ended in 1989. market or the state should rule the economy, modern libertarians would be The connecting link between the two revolutions was Karl Marx. It is his shocked as modern socialists (social democrats et aL) to find Marx on the side writings -that are claimed to have inspired all the European revolutions from of the market. 1917 to 1923. The October Revolution, by its survival, appropriated Marx, and This claim is not made lightly or facetiously. Nor is it made in some desperate guarded its monopoly of his heritage with ferocious and, indeed, murderous attempt to prove that Marx was always invariably right. For of all those who tenacity. Marx was the prophet, they said, of their success , and the guarantee deride or even worship Marx, how many ever read him? It would surprise them that the Socialist Revolution would conquer the world. This was not just the to know that Marx did not advocate nationalization of industries, or the Russian boast. A lot of the ideological ferment during the short twentieth replacement of the market by central planning. He did not look to the state, century (1914-89), and much of our social sciences and, indeed, our view of even a ' Socialist' state, to alleviate the conditions of the workers. He was a the relations between state and society, between economics and politics across champion of free trade, and no friend of tariff barriers. He did not advocate the political spectrum, have been shaped by the way in which Marx was read by the monopoly of one-party rule, and never said that the Communist Party- the the Marxists and their friends - and, indeed, even their enemies. So did Marx party of Marx and Engels - would lead the proletariat. He did not found a and his influence also perish with the Wall? political party and, while often insufferable and undemocratic in his dealings When the Berlin Wall came down, the End of History was pronounced. with his fellow socialists, he never harmed a fly in his life. The use of terror, of Francis Fukuyama, who made this claim, was deeply influenced by Hegel's cliquish party rule to gain power, was to him anathema: Blanquism. philosophy. Hegel has been portrayed as some horrendously opaque writer. Marx was no friend of capitalism, but he was its best student. He devoted Karl Popper s vulgar attack on Hegel in the second volume of his Open Society more than half his sixty-five years to studying the dynamics of capitalism, but and Its Enemies castigated him as a father of totalitarianism, a philosophical with a view to finding the forces that would finally bring about its end and its pariah. It was a surprise to many English-speaking intellectuals and politicians eventual replacement by communism. This was not, however, the replacement MARX' S REVENGE TWO REVOLUTIONS AND A DEMOLITION of the government of a capitalist state by a government which would bring by the immensely facilitated means of communication, draws all, even the most about socialism. The idea that socialism would be brought about by the state barbarian, nations into civilization. The cheap prices of its commodities are the was alien to everything he stood for. heavy artillery with which it batters down all Chinese walls, with which it forces the barbarians Marx saw the incredible dynamic motion of capitalism, its revolutionary ' intensely obstinate hatred of foreigners to capitulate. It compels all nations, on pain of extinction, to adopt the bourgeois mode of production; it potential , as early as 1848. In the Communist Manifesto which he wrote with compels them to introduce what it calls civilization into their midst, i. , to Friedrich Engels, he celebrated the global nature of capitalism. Barely thirty become bourgeois themselves. In one word, it creates a world after its own years old, he wrote about capitalism: image. The Bourgeoisie cannot exist without constantly revolutionizing the instruments of production, and thereby the relations of production, and with them the whole As he sought the secret of capitalism through a study of political economy, Marx relations of society. Conservation of the old modes of production in unaltered had in his mind an extension of the theory of history that he had inherited form, was, on the contrary, the first condition of existence for all earlier industrial from Adam Smith and the Scottish philosophers of Enlightenment via Hegel. classes. Constant revolutionizing of production, uninteITUpted disturbance of all Smith had seen the achievement of commerce and liberty as the highest and social conditions, everlasting uncertainty and agitation distinguish the bourgeois final stage of human history.