Failure of Economics to Failure of Capitalism?

By Deepankar Basu, Sanhati.

On a visit to the London School of Economics last year, the Queen of England, expressed surprise at the apparent failure of the economics profession to predict the financial crisis and the Great Recession that came in its wake. “Why did no one see this coming?” asked the Queen to Luis Garicano, a professor of economics at LSE. Garicano’s colleague and economist Tim Besley and eminent historian of government Paul Hennessy stepped up to the task and attempted to answer the Queen in a short letter [PDF] written to her on behalf of the British Academy. In the letter they concluded that “the failure to foresee the timing, extent and severity of the crisis and to head it off, while it had many causes, was principally a failure of the collective imagination of many bright people, both in this country and internationally, to understand the risks to the system as a whole.”

Post-Keynesian economist, Thomas Palley, called out the narrow vision of the Besley-Hennesy letter. According to Palley, the cause of the failure cannot be ascribed to the failure of the collective imagination of many bright people, whatever that might mean; instead the failure should be located in the unique “sociology of the economics profession,” which has hounded out most dissenting voices. This failure, moreover, “was a long time in the making and was the product of the profession becoming increasingly arrogant, narrow, and closed minded” and excluding all who did not adhere to the dominant ideological construction of mainstream economics. Interestingly, Palley also points to a host of articles written from a heterodox perspective which spelt out the seriousness of the problems facing the economy as early as 2006; of course, the mainstream media, the US administration and the mainstream economics profession did not heed their advice.

In July 2009, the London-based Economist, the most sophisticated and well-informed voice of capital, ran a series of articles on the problems ailing the discipline of economics. The series took a hard and critical look, always from the perspective of keeping the long-term inst rests of capital protected, at both macroeconomics and financial economics, the two branches of economics at the very center of the current crisis; it all began, one must remember, as a financial crisis – the bursting of the housing bubble, the collapse of investment banks, the falling stock market, the seizing up of the credit markets – and quickly turned into what commentators have started calling the Great Recession.

Nobel Laureate Robert Lucas of the University of Chicago is one of the key architects of recent mainstream macroeconomics, the founder and propagator of the so-called rational expectations “revolution” in economics. In the Chicago vision of the macro economy, all economic actors are super rational. How do they display their rational behaviour? By making decisions on the basis of all currently available and relevant information. In other words, all economic agents are magically endowed with unbelievably large computing capacities whereby they gather all the relevant information, process it at lightning speed and arrive at perfect decisions. In this world there are no manias, no panics, no herd behaviour, no contagion, no asset price bubbles, no crashes; there is only smooth and rational adjustments. If the real world of capitalism does not resemble this, so much the worse for the world! Unfazed, therefore, by the recent economic and financial crisis, Robert Lucas jumped in to defend the recent turn in macroeconomics: even mildly critical pieces in as friendly a journal as the Economist needed to be countered. His contribution, of course, started off a Lucas round table, which, by the way, has some interesting posts (for instance Smither’s post on why the Efficient Markets Hypothesis must be discarded).

University of Chicago economists are notorious for their devotion to the magic of the market. In what even then looked like a wacky position, Casey Mulligan of the University of Chicago, a colleague of Lucas, had argued in early October that the economy was not doing as bad as it looked; the unemployment rate was only about 6 percent and so there was no need either to worry or for the government to work out a fiscal stimulus. Today when the official unemployment rate is nudging double digits and most sensible economists believe that it will remain high for the next year or so, making this the deepest recession since the Great Depression, Mulligan’s position, and the Chicago position in general, seems so horrendously out of touch with reality.

A detour into some details of how the unemployment rate is measured in the US might not be out of place. To start with, one must recall that one of the most serious problems that any capitalist economy, like the US, faces is to provide well-paying stable employment for its working population. The inherent logic of capitalism usually prevents this problem being solved in any satisfactory manner and for long periods of time. Hence, capitalist economies are typically plagued by serious labour underutilization.

There are several ways to measure labour underutilization and the Bureau of Labour Statistics (BLS) in the US currently uses six measures (U-1 through U-6). Data for these measures come from two monthly surveys conducted by the BLS: (1) the Current Population Survey (which is a survey of about 60,000 households); (2) the Current Employment Statistics Survey (which is a survey of about 160,000 business and government agencies). For both surveys, as explained on the BLS website, the data for a given month relate to a particular week or pay period. For the household survey, “the reference week is generally the calendar week that contains the 12th day of the month.” For the establishment survey, on the other hand, “the reference period is the pay period including the 12th, which may or may not correspond directly to the calendar week.”

It has been known for quite some time now that the official unemployment rate (the U-3 measure) provides us with a seriously underestimated measure of labour underutilization. The reason is simple: U-3 does not count those workers who become so discouraged by long spells of unemployment that they stop looking for work altogether, drop out of the labour force and, therefore, not even counted among the unemployed. To deal with this problem, the BLS provides a more comprehensive measure of labour underutilization, U-6, which takes account of part-time workers (who want but cannot find full time jobs) and marginally attached workers (these are the “persons who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the recent past”). While the official unemployment rate is 9.7 percent (see chart below), the current value of U-6 is a whopping 16.8 percent! And this despite the massive fiscal stimulus of the Obama administration. How about asking an unemployed worker who has not found a job for the last 15 months (say), and has possibly even stopped looking for one due to sheer discouragement, whether her being unemployed is the result of a “rational” decision she has made on the basis of some inter temporal calculations?

unemployment.png

At the other end of the mainstream economics profession, liberal economist, Nobel Laureate and New York Times commentator Paul Krugman has written a balanced and even-handed critique of the recent turn in macroeconomics, precisely the turn that Lucas so painstakingly tries to defend. Krugman makes two points: (1) how the orthodox belief in the efficiency of the markets (and especially financial markets) is neither based on facts nor makes for good policy; (2) how and why fiscal policy, long banished from the realms of mainstream macroeconomics, came to the rescue in the Great Recession, i.e., in preventing the Great Recession from turning into the second Great Depression, and why it should become part of the mainstream curriculum again. Krugman ends with a plea to return to the deep wisdom of Keynes, knowing full well that Keynes’ efforts were all directed at reforming capitalism and not replacing it . Even this mild reproach drew fire from Chicago economist, John Cochrane; in his post, Cochrane has, to my mind, not managed to respond to any of the substantive points raised by Krugman. Much along Krugman’s line is also the recent piece by Robert Skidelsky, Keynes’ biographer and the recent interview of macroeconomist Robert Gordon of Northwestern University; in a similar tone, Richard Posner asks whether economists will escape a whipping; no prizes for guessing the answer. For more debates along similar lines see this page on the Financial Times.

As an interesting aside, there was an earlier round of debate between Krugman/De Long and Cochrane. Early in the year, Cochrane had written a piece on why fiscal stimulus will not work. In that article, he had basically repeated some pre-Keynesian fallacies (like the Treasury View that every dollar of debt-financed expenditure by the government necessarily cuts back the same amount of private investment expenditure and hence that fiscal stimulus is ineffective). Brad De Long of UC Berkeley and Paul Krugman took Cochrane to task for repeating these fallacies; here is Delong’s piece (which has a nice example on a credit economy with four agents) and here is Krugman’s. Cochrane makes the simple mistake, as Krugman points out, of assuming that the pool of savings is fixed (i.e., before and after the fiscal stimulus), which leads him to conclude that when the government dips into this pool of savings that must necessarily deprive some private entity of an equal amount of saving (and hence reduce private investment expenditure by that amount). It is amazing how this simple fallacy persists over time, despite repeated attempts by Keynesian economists to point it out over the last 60 years. When the government takes a part of the pool of savings available to society and uses it for making purchases, the multiplier effect of this government expenditure increases the output of the economy (especially so when there is massive unutilized capacity lying around) and, thereby, also the savings out of that output; when the multiplier has run its course, the economy has a larger pool of savings. Therefore, debt-financed government expenditure need not crowd out private investment, other than in the case when the economy is already operating near full-capacity, a far cry from the state of the US economy today.

Limitations of the Debate

While this debate between the “saltwater economists” (liberal wing of the mainstream economics profession in the US, located mostly on the two coasts) and the “freshwater economists” (conservative wing of the economics profession in the US, located mostly in the central part of the country) is a welcome break from the free market fundamentalism of the mainstream press, one should not overlook the limitations of the framework within which the debate is being conducted. Roughly speaking, that framework is marked by its two boundaries, on the left by a version of Keynesianism (that economists like Krugman uphold) and on the right by Chicago-style economics. That is the space that is provided in this debate, and thus it naturally excludes: (a) any discussion of a much broader and richer heterodox tradition in economics (which includes Post-Keynesians, Ricardians, Institutionalists, Marxists, etc.), (b) any discussion of the material basis of the victory of freshwater over freshwater economics, and (c) any discussion of alternatives to capitalism.

It is surprising that Krugman does not even once refer in his piece to the heterodox tradition in economics, especially so because he devotes so much space to a discussion of macroeconomics. Over the last two decades, heterodox macroeconomists in the Marxian and post-Keynesian tradition have developed an impressive body of research, both theoretical and empirical, that speaks to most of the issues that mainstream macroeconomics so cleverly avoids. The Classical-Marxian theory of long run economic growth complemented by the short run theory of economic fluctuations of the post-Keynesian variety offers a real, comprehensive and coherent alternative to the theoretical sterility of mainstream macroeconomics, and it is indeed unfortunate that Krugman does not care to engage with this body of research.

When Krugman portrays the victory of freshwater economics over saltwater economics as a seduction of truth by beauty, he misses one very important aspect of that victory. The victory of conservative economics coincides beautifully with the rise to dominance of finance capital, the fraction of the global ruling class most closely allied with and deriving their incomes from the financial sector. How can one miss the coincidence of the exhaustion of the postwar temporary and partial victory of labour over capital and the rise of monetarism, mark I and then mark II? As economist Gerard Dumenil had pointed out long ago, the fads and fashions in mainstream economics is determined less by the internal logic of the discipline than by changes in the structure and functioning of the world economy and the changing correlation of class forces. This is an aspect that commentators like Krugman totally miss.

Talking of alternatives to capitalism, while it is obvious to many economists and activists that the current crisis is a crisis of capitalism, and that it necessitates the search for alternatives to capitalism by linking up with the long socialist tradition, the current debate does not even entertain discussion of such alternatives. While it is expected that freshwater economists will not tolerate any criticism of capitalism, saltwater economists are no less conscious about respecting the commonly accepted boundaries of the thinkable. For one must not forget that Krugman, like Keynes fifty years ago, is out to reform capitalism and not to replace it. And that is as far left as the framework will allow the debate to veer; even thinking about an alternative to capitalism is taboo within the terms of reference of this debate. Socialism is not even allowed to wander, if only by mistake, into the terms of the discourse.

That is the fundamental limitation of the discipline of mainstream economics: its inability to adopt a historical perspective and see capitalism as merely one way of organizing social production, a mode of production with a definite historical birth and therefore with a future historical transcendence. Mainstream economics, to the extent that it ever reflects on the philosophical foundations and founding assumptions of the discipline, sees the “laws” that it discovers as natural laws, valid for all historical epochs. The obvious corollary is that capitalism is eternal; the way things are organized today is how they have always been and will always be. Of course there will be technological progress and institutional development, but there never was nor will ever be any radical qualitative change in the way social production is organized, in the ownership of property. Much before Fukuyama, mainstream economics had silently accepted the non-existence of history.

This is where the Marxist tradition of political economy is far superior to what Marx called “bourgeois economics”. Grounded in a materialist conception of history, the Marxist tradition analyses the fundamental contradictions of the capitalist system, contradictions which cannot be resolved within the parameters of the capitalist system. These contradictions cannot be dealt with by more or less regulation of the financial or product or labour markets, it cannot be dealt with by fiscal or monetary policy to stabilize business cycle fluctuations, it cannot be dealt with by better regulation of international trade and finance; these contradictions, while changing form according to the changing institutional setting of capitalism, will inevitably and recurrently break out on the surface as long as capitalism survives.

What are these fundamental contradictions of capitalism? The contradiction between social production and private appropriation and control of the product of that production process; the contradiction between use-value and value; the contradiction between the two fundamental social classes, workers and capitalists, of capitalist society. While the first of these is easy to grasp and therefore needs no elaboration, it might be worthwhile spending some time thinking about the other two.

For Marx, capitalism was a type, a sub-class, of commodity producing society and so, to understand the dynamics of capitalism, he started his analysis in Volume I of Capital with commodity production. But what is a commodity? Every society must produce to meet its material needs. Where the products of human labour emerge as the private property of economic agents, and which are then exchanged through a process of bargaining, they are called commodities. Another way to see this is to realize that the products of human labour that emerge in a system of production organized through exchange are precisely what Marx calls commodities.

Come to think of it, there are only two ways that human needs can be satisfied in a commodity producing society, either by consuming one’s own product or by exchanging it for something else that one needs. This simple observation immediately throws up the dual nature of commodities. On the one hand every commodity is a use value because it can satisfy human needs; on the other hand, every commodity can also be exchanged for every other commodity. The aspect of exchangeability of commodities is what Marx terms value. What is the essence of the aspect of exchangeability of commodities? The fact that they are all products of human labour. For Marx, therefore, value is created by labour, properly defined, and is expressed in money (value separated from any particular commodity). What has all this to do with capitalism?

Capitalism is the special class of commodity producing society where labour power (the capacity to perform useful human labour) itself becomes a commodity. While a commodity producing society with owner-producers typically “sell to buy”, the characteristic transaction under capitalism is “buy to sell”. A representative capitalist starts with a sum of money, buys raw materials and labour power with it, brings them together in the production process and then sells the products to end up with a sum of money which is larger than the sum he started out with. If we now recall that money is nothing but the expression of value, we see that the capitalist ends up with more value that he started with, in a word surplus value. Capitalism, therefore, is a system of social production, that is governed by the logic of producing surplus value. The production of use values, things that can actually satisfy human needs, is just incidental; as far as capital is concerned, the aim is to produce surplus value by producing no matter what use values. When those use values cannot satisfy existing needs, new and artificial needs can always be “manufactured” by the capitalist media. Value needs to be embodied in use values and yet it is totally indifferent to the existence of particular use values; this is the sense in which use values and value stand in a contradictory relation under capitalism.

What about the contradiction between the fundamental social classes? Every class divided society rests on the appropriation of unpaid surplus labour by the ruling class (or bloc of classes) from the direct producers. In feudal societies, the ruling class directly appropriates the surplus labour of peasants as “labour services”; similarly, in capitalism, the capitalist class appropriates, but now through the institution of wage-labour, the surplus labour of the workers. The apparent freedom and equality (between the two parties to an exchange) guaranteed to workers through the institution of wage-labour and markets makes the appropriation of surplus labour almost invisible; equality of the relations of exchange make the exploitation of the working class difficult to see. But it exists nonetheless and the tools of Marxian political economy brings it to light.

It is these fundamental contradictions that manifest themselves periodically as crises of the system, the most characteristic feature of which is the simultaneous existence of unfulfilled human needs (unemployment) and unused capacity (idle plant and machinery) to fulfill those needs. Capitalism, as a system, is defined by these contradictions, they are not extrinsic to capitalism; hence, only a positive transcendence of the capitalist system can resolve them. It would have been useful if the current crisis of economics was utilized to focus our attention on the crisis of capitalism, but the way the terrain of debate has been circumscribed by agreed upon assumptions, this seems rather unlikely.

(I would like to thank Amit Basole and Debarshi Das for helpful comments on an earlier version.)

Industrial McCarthyism in India?

Auto component manufacturer Pricol Ltd claims that its OE customers have warned it that “if the company ‘engages with a Communist union, we won’t have confidence that your labour relationship would be good in the long term’”. The management is “ready for talks with workers” but not with their communist union in Coimbatore (Tamil Nadu). Don’t think this can happen only in the McCarthyist US. The union continues to resist the use of non-permanent workers in works meant for permanent ones without giving them equal benefits.

Now after the Indian State’s banning of the CPI(Maoist), the management has found a new justfication. In one of its official press releases it unabashedly boasts:

“The management has adopted a stand in principle not to recognise the Maoist – Leninist outfit. The recent ban by the Centre on Maoist outfits justifies our stand as our own actions were based on upholding the peace and harmony of the society as a whole.”

Interestingly, the union is affiliated to the country’s one of the few official recognised national trade union centres, All India Central Council of Trade Unions (AICCTU), which is linked with the Communist Party of India (Marxist-Leninist)-Liberation, not the Maoists. The CPI(ML)-Liberation is one of the prominent groups that claim the legacy of Naxalism, but has long been engaged in parliamentary politics and is duly recognised by the Election Commission of India.

PUDR on the banning of the CPI (Maoist)

Peoples Union for Democratic Rights

In 2004, when the Congress led UPA government came to power it repealed the POTA, which it admitted had been grossly misused. It simultaneously amended an existing law, the Unlawful Activities Prevention Act 1967 (UAPA), siphoning into it some of extraordinary provisions of POTA, including those pertaining to banning of terrorist organizations. The conditions of banning under the amended Act no longer require a statement to explain the reasons of issuing a ban, a gazette notification merely adding an entry to the Schedule of the Act is sufficient, and there do not exist any provision for judicial redress.

On 22 June 2009, the CPI (Maoist) was added to the list of banned organizations in the Schedule of the UAPA. The Home Minister has claimed that the notification banning the organization was made necessary to remove ambivalences. Indeed, the CPI (M-L), PWG, and the MCC, which later merged to form the CPI (Maoist), were banned organizations since 5 December 2001. Apart from the futility of banning, the notification shows the total disregard the government continues to have towards people’s movements around issues of livelihood, dispossession and alienation that have accumulated and aggravated over the last several years of the unleashing of neo-liberal policies on unsuspecting tribal populations and the rural poor.

It is indeed ironical that a month back, this government had claimed to have returned to power on the weight of its social policy programmes. The politics of banning is indeed reflective of a regime which despite its electoral victory, has but a truncated social base. Banning the CPI (Maoist), is therefore, not just arbitrary, it shows that the UPA government has lost the political courage to address the substantive issues of land and livelihood that the adivasis have been raising across the country in Chhattisgarh, Orissa or West Bengal. While banning itself is undemocratic and constrains the ideological spaces of freedom, in this case, it seems to also send across the message that like the government of any authoritarian state, this government too would prefer to use the law to suppress dissent violently. Much has been made of Maoist violence in the press. Without condoning this violence, PUDR would ask the Home Minister to note the extremely debilitating socio-economic contexts which has precipitated the adivasi movements in the country, and use the electoral mandate it has received to direct attention where it is required most, and in a way which is conducive to democracy through long term social programmes addressing issues of economic disparity.

Moushumi Basu
Gautam Navlakha

Secretaries
PUDR

Lalgarh: an analysis of the media’s war hysteria

Partho Sarathi Ray, Sanhati.

War-hysteria in media: cobras, shields, and sanitization

We have been witnessing what can only be described as “war hysteria” in the media coverage of the current situation in Lalgarh and adjoining areas. It appears as if the great protectors of the “rule of law”, the West Bengal state police, propped up by the CRPF and a plethora of other armed forces, with suitably scary acronyms like COBRA, are out to regain a chunk of Indian territory occupied by a hostile country. What is conveniently not being mentioned is that for ages the police itself has behaved like invaders in the area, willfully torturing and humiliating people, and that is why they had been boycotted in that area for the past six months. With blow-by-blow accounts of their progress, and description of how they are penetrating “human shields”, and “sanitizing” whole areas, it doesn’t seem that their adversaries are the poorest of the poor, the most marginalized sections of Indian society, the adivasis who are armed with traditional weapons like bows and arrows, and some Maoist cadre, who would be a few dozen at the most, and armed mostly with weapons looted from the police and improvised explosive devices.

The trigger in Dharampur: a popular response to rampaging harmad militias

More importantly, what is being represented as a war between the Maoists and the Indian state, conveniently glosses over some points that we need to pay our attention to. The rural area of Lalgarh has been out of bounds for the administrative machinery of the state since last November, since the uprising of the adivasi-moolvasi people of the area against police atrocities. With the setting up of the PCPA, the adivasis had been running their own affairs, and even taking up much-needed developmental work, a whiff of functioning democracy in the middle of the hoax that goes on by the name of democratic governance in large parts of India.

Then, what suddenly triggered this confrontation, and this cascade of events that is today witnessing police dragging out women from houses in the Lalgarh area and beating them blue and black and hundreds of people fleeing to relief camps?

It points to the incident which happened in Dharampur, near Lalgarh town, on June 14th. It was reported in the press on that day, but now has been conveniently forgotten as the press is busy to set up the Maoists, and the PCPA, which they repeatedly call Maoist-controlled contrary to all evidence and denials by the PCPA leadership, as the arch-villains in this episode.

Dharampur is near Lalgarh town, and it was a CPI(M) stronghold where the house of the zonal committee member, Anuj Pandey, was located. On 14th June, a PCPA rally was proceeding towards that place, called to protest against the arrest and reported rape of adivasi women who had gone to a meeting in Chakulia in Jharkhand. It was a usual PCPA rally, with traditional weapons and led by women as usual. When it neared Dharampur, it was attacked by CPI(M) harmads, targeting the women. The rallyists couldn’t resist this attack and dispersed, but then a Maoist squad arrived and started a gun battle with the CPI(M) cadres, which continued till late in the night.

With their superior firepower, the Maoists gunned down at least nine of the CPI(M) attackers. Thereafter, the next day there were multiple rallies called by the PCPA, and the people in these rallies, who were incensed by the CPI(M) attack of the previous day, decided to take over the CPI(M) strongholds of Dharampur, a major operating base for the CPI(M) harmads, and Lalgarh town which was still under the administrative control of the government. The Maoist squad accompanied them, to resist attacks by the CPI(M), and not allow a repetition of the past day’s incident.

20,000 Maoists and “frontal organisations”?

What followed has been widely reported, how CPI(M) party offices were burnt down, how the palatial house of Anuj Pandey, the widely hated CPI(M) leader, was broken down, and how some CPI(M) members were killed. It was a spontaneous outburst of pent up fury of the people, people who had been subjected to humiliation and exploitation by these same CPI(M) leaders on a daily basis. They acted out of a sense of deliverance from the hegemony and corruption of the CPI(M). The Maoists were definitely present, but the 10,000-20,000 people who participated in this uprising were definitely not Maoists, as has been represented by the press. They were common people, and their anger and frustration found expression in this outburst. Although a number of political leaders, including those from the Trinamool Congress and Congress, made statements to this effect, it has completely been glossed over by the mainstream press.

Human shields – a physical protection of liberty and development

In order to reinforce this idea, multiple press reports have tried to represent the human walls set up by the adivasis as “human shields” being used by the Maoists to protect themselves from the police and paramilitary. It is possibly incomprehensible to the corporate media that these people were standing there not to protect the Maoists, but to protect the freedom that they have enjoyed for the past six months, freedom from daily harassment and humiliation, and to preserve the gains that they had made during that time, like the building of a few roads and digging of a few ponds, meeting the immediate needs of the people, things that Indian state has not provided in the past sixty-two years.

Teaching adivasis a few lessons along the way

However, as expected, they could not resist the brute force unleashed by the same state that had failed them so miserably. The police and paramilitary dispersed them by teargas and lathicharging, and since then there has been innumerable reports of atrocities being committed by the police. Remarkably, much of these atrocities were committed in the villages on the way to Lalgarh town, which were not even within the zone that was under the control of the PCPA. It appears that the state is bent upon teaching the adivasis a lesson for standing up for their dignity, and the Maoists represented a suitable bogey for doing so. The Maoists, according to their stated policy of guerrilla warfare, would not engage in a frontal confrontation with the paramilitary forces. So what have effectively taken place are a few skirmishes between vastly assymetrical adversaries, and the brave saviours of “law and order” have vented their righteous ire on the unarmed adivasis.

Maoist presence: an old fact and a rehashed bogey

The Maoists have been active in the entire jangalmahal area for a long time, and have been fighting a running battle with the state. The adivasis in the area have long been victimized by the police for this, and it was the police brutalities in the wake of the landmine attack on the West Bengal CM’s convoy by the Maoists that triggered this uprising. The Maoists have been with the adivasis of Lalgarh in this uprising against the state, just as members of many other political parties including the Congress, have been with them. What we are witnessing today is that the Indian state is using this as an excuse to delegitimize the just demands and aspirations of the adivasis, which stemmed from a simple demand for the recognition of their dignity. Attacks on indigeneous people are taking place all over the world, whenever they are resisting the state and the corporations attempt to deprive them of their land, water, forests and dignity, as we recently saw in the attacks on the Peruvian indigeneous people in the Amazon area. All attempts to resist and retaliate are being represented as insurgency and a breakdown of “law and order”. The corporate press is playing along with this, as we see in the case of Lalgarh, and deliberately glossing over facts and issues, to represent the struggle of the indigeneous people, in which armed struggle is increasingly playing a part, as a loss of sovereign authority by the state, which has to be regained at any cost.

Ground dynamics and civil society

The “civil society” in West Bengal, and all over India, has rightly been very distressed over these incidents and condemned both the atrocities committed by the state and what many think to be the reckless behaviour of the Maoists. However, it is also to be expected that the civil society cannot decide, or dictate, what course a movement on the ground will take. A movement develops its own dynamics, based on the ground conditions, and always does not follow a linear path to the most desirable end. Therefore, it becomes the duty of civil society to stand up and be counted when common people are at the receiving end of oppression by the state. We should express our solidarity with the struggle of the adivasis for justice and development, deplore the atrocities being committed on them by the armed forces of the state and demand the immediate withdrawal of the latter from the area as a necessary condition for normalization of the situation and also condemn all the attempts by the state to use this excuse to impinge on the democratic rights of the people. The adivasis had risen up with the demand of a small apology from the police, if what is happening now does not stop, the Indian state will owe them a much bigger one.

Lalgarh beyond Maoism, Maoism beyond Lalgarh

Pothik Ghosh

A shorter version of this article was published in Hindustan Times

In politics, the truth is almost always counter-intuitive. In this realm – where the art of the possible intersects in strangely unexpected ways with the science of the impossible – ominous portents of anarchy often conceal messianic promises of deliverance. Lalgarh, today, is perhaps the starkest symbol of this confounding cocktail, which has come to characterise the polity of Left Front-ruled West Bengal. But the violent upheavals, which have been rocking this tribal-dominated village of West Midnapore over the past several months, are unlikely to yield any meaning as long as socio-political violence continues to be envisaged as a moral question. If anything, such a moral approach would only produce counter-productive programmes and practices that would inexorably push politics further down the hopeless pit of a degenerate status quo.

Whether the Lalgarh movement constitutes an unconscionable disruption of social peace, or is a legitimate popular upsurge cannot be conclusively determined unless the objective political condition and logic of that movement and its subjective ideological orientation, especially with regard to the adoption of violence as an instrumentality of politics, is accurately accounted for. What clearly distinguishes the Lalgarh uprising from other apparently similar violent incidents and agitations that have scarred West Bengal over the past few years, and which have registered a sudden spurt in the aftermath of the resounding victory of the Trinamool Congress-Congress alliance over the CPI(M)-led Left Front (LF) in the 15th Lok Sabha elections, is that the calculus of competitive electoral politics has had absolutely no bearing on the movement. The reason why electoral considerations have figured rather significantly in most other zones of unrest in the state is because the strife in those zones has been ignited mainly by the collapse of the CPI(M)-led LF’s well-oiled and calibrated network to differentially distribute political patronage by way of governance. This has particularly been the case in areas such as Nandigram and Singur where the main battle has been against acquisition of farmland for industrial development.

The struggle for patronage is essentially a competitive struggle that has no concern loftier than that of conserving and progressively concentrating positions constitutive of a structurally inequitable and undemocratic status quo. That does not, however, mean the distress and disaffection caused by the collapse of such patronage, which is all that is there by way of governance in LF-ruled West Bengal, is not real. The trouble is the political idiom in which such genuine anxieties are being articulated is, in being shaped by the all-pervasive regime of patronage politics, thoroughly competitive. That has inevitably rendered such mass movements susceptible to all sorts of cynical manoeuvres and manipulations.

The popular eruption in Lalgarh, on the other hand, has been driven by no such competitive consideration precisely because the remote tribal belt of which it is a part has had little or no patronage network to begin with.

The insurgency of the Lalgarh population has been shaped by its experience of a state that has registered its presence in the area through the brutal effectiveness of its repressive security apparatuses but has been absent as an organic expression of the will of the people and an efficient purveyor of emancipatory social development and vital public goods. Clearly, the problem there is not, as many seem to believe, the absence of the state but its existence as a completely alienated and foreign entity. Those being the objective conditions for the emergence and expansion of the Lalgarh movement, it is highly unlikely that it is capable of positing, or even articulating, anything other than a transformative critique of the alienated and repressive state, and the intrinsically competitive and hierarchical socio-economic order that engenders it.

And that is precisely why the temptation to classify the Lalgarh uprising as a tribal identity movement, driven by the ideology of some organic notion of autonomous communitarianism, should be resisted. The majority population of Lalgarh is doubtless tribal but the anti-competitive orientation of their struggle, thanks to the objective politico-economic conditions that have shaped them, serves to completely invert the competitive logic of identitarian movements, which always articulate their politics in supremacist terms of ethno-cultural pride and domination. Put simply, the Lalgarh movement clearly manifests characteristic features of a working-class struggle.

The People’s Committee against Police Atrocities-led revolt, which was sparked seven months ago by a repressive combing operation launched by the West Bengal police in Lalgarh and surrounding areas in response to a Maoist mine attack on the chief minister’s cavalcade, has steadily morphed into a more proactive and comprehensive struggle for a fundamental transformation of the socio-political structure. That has yielded a two-pronged movement of resistance and reconstruction. It is, therefore, no accident that the PCPA, which has been leading the militant mass movement against the West Bengal government in Lalgarh, is now also at the forefront of an incipient social reconstruction programme for the enforcement of a cooperative and democratic management of resources and rudimentary public services such as healthcare developed by the local community itself.

That the CPI(M)-led West Bengal government, infamous for its autocratic ways, was extremely cagey until a few weeks ago to crack down on the movement was largely due to its mass insurrectionary character. In Lalgarh, violence against state apparatuses has not been launched by a clearly identified group acting on behalf of an oppressed but largely passive population. Instead, it has been an expression of disaffection and opposition by a population entirely insurgent against a repressive state and the oppressive socio-economic order it protects and perpetuates. Even the guerrilla operations carried out by Maoists in the area and its neighbourhood have become a seamless extension of this insurrection, which inevitably enjoys wide-ranging local legitimacy and has some serious moral standing, vis-à-vis the rest of the state. It is this legitimacy, which derives from an assertion of popular sovereignty, that had kept West Bengal’s Stalinist dispensation away from open repressive manoeuvres for so long. That it had burnt its fingers in Nandigram, where its cadre together with the state police had attempted a scorched-earth operation a couple of years ago, has only compounded its diffidence on that score.

After all, a modern state formation, no matter how repressive, has to always act in the name of protecting popular sovereignty. But in an insurrectionary situation, like the one in Lalgarh, the sovereignty vested normatively in the state is clearly in conflict with actual sovereignty on the ground. In such circumstances, the state, if it cracks down on the movement, runs the grave risk of losing all formal legitimacy it enjoys as the keeper of people’s sovereignty. In fact, it is the state or the government that, in such a situation, comes to be seen as an external threat to the sovereignty of the people and the violent insurrection of the latter against the state pushes it and its laws into a state of crisis. That renders the legal-illegal dichotomy problematic and consequently makes it difficult for the state to legitimately monopolise violence to crush popular movements in the name of combating anti-sovereign lawlessness and insurgency. That is a risk the CPI(M)-led LF could ill-afford at a moment when the electoral drubbing it has received in West Bengal signals significant erosion of its moral-political standing.

The Lalgarh movement could, nevertheless, hardly have gone on for ever without inviting the wrath of the ruling classes of West Bengal and India. The only way a movement like that could possibly evade state repression and keep itself alive and kicking is through continuous political growth accomplished through a relentless process of engagement and integration with concerns, anxieties and disaffections in other areas and sectors of the state. Yet, an unpardonable tactical blunder on the part of the Maoists, who indisputably have a sizeable numerical presence in the PCPA, has cleared the way for the West Bengal government to unleash repression on the Lalgarh movement sooner rather than later. The recent claims by various senior Maoist leaders and activists that the PCPA was a front of the underground outfit, which was controlling and running the show in Lalgarh, has given the repressive arms of both the LF government of West Bengal and, to a lesser extent, the Centre the alibi they had been waiting for. The West Bengal government has, over the past few days, turned proactive and has been dispatching contingents of heavily armed police and central paramilitary forces to Lalgarh to crush the popular uprising. That the LF dispensation has suddenly regained its usual repressive element is because it knows the police operation in Lalgarh would now be widely perceived as a legitimate measure taken by the state to protect popular sovereignty from Maoists and some sections of the local community they have bamboozled.

The Maoists, thanks to their doctrinaire programmatic commitment to agrarian revolution and the concomitant tactical emphasis on guerilla struggles exclusively in tribal and rural areas of the country, have failed to focus on developing large-scale popular movements in the semi-urban and urban areas. Their time-worn approach of encirclement of cities by people’s army raised from the countryside has, willy-nilly, militarised their politics, what with their roving guerrilla squads carrying out dramatic raids on behalf of a rural population they have barely organised. That, among other things, has ensured their politics enjoys little concrete ideological-political support among working people in Indian cities. As a result, it has been rather easy for the state at all levels and the ruling classes it represents to paint the Maoist movement into an illegal corner and successfully delegitimise it as an external threat to popular sovereignty.

The Maoists doubtless have a significant numerical and ideological presence within the PCPA and the wider Lalgarh movement. But the committee, which is much more diverse in its broad Left ideological composition, is far from being a front of the Maoist group. And that, as far as the Maoist commitment to a militant working-class movement is concerned, would have spelt no harm. If anything, the Maoists and their sympathisers in Lalgarh ought to have envisaged such a situation as an opportunity for them to continue to work quietly within the PCPA and provide the insurrectionary movement with requisite logistical support and ideological orientation to expand politically to engage with and integrate a multitude of other disenfranchised and exploited sections of West Bengal’s society and economy such as the embattled peasants of Nandigram, Rajbongshi separatists of north Bengal plains, the Gorkhas of Darjeeling and the large masses of workers rendered unemployed by the sharp decline in the fortunes of the state’s tea and jute industries. This process of integration through continuous engagement would have had to address the specific concerns of each of those sections even as it transformed their mutually competitive idioms of political articulation into a coherent but multitudinous critique of the logic of the larger political economy responsible for all their various miseries. That would not only lead to an aggregative programme of social change but would also make Maoism into an ideological current that is always internal to an ever-growing variety of popular movements.

In such circumstances, the modality of political violence would always be that of popular insurrection. And even guerrilla tactics, as and when they are deployed, would necessarily be envisaged as an integral part of this insurrectionary paradigm. That would not only make it hard for the state to delegitimise such violence as illegal or the movements that generate them as anti-sovereign, it would also ensure that Maoism is rescued from the excesses of its current sectarian militarism that have, often enough, ended up replicating the same configurations of superordinate state power, which the movement has sought to unravel.

Clearly, the Maoists can avoid tactical blunders like the one they have committed in Lalgarh only when they re-frame their political-organisational vision. Their obsession with territorial expansion, which has spelt no real political-ideological breakthrough for Maoism, essentially stems from the Maoists’ insistence on envisaging the party as an a priori state-form, which seeks to subordinate the singularity of various experiences of disaffection and registers of struggle to its doctrinaire conception of politics, which is no more than the generalisation of one particular experience of social oppression and resistance. What they need to do, instead, is to imagine the organisation as a movement-form, wherein Maoism is a dynamic organisational impulse and the party is always in a state of bottom-up formation through a perpetual process of politicisation at the grassroots.

West Bengal, ironically enough, provides the most conducive political climate for the Maoists to effect such a reorientation. Their struggles against a repressive state, controlled for over three decades by a coalition of Left forces helmed by the largest Communist Party, ought to compel them to reflect on how communist-left forces, which were once the undisputed principal representatives of a genuine working-class movement, have come to distort it beyond recognition.

The degeneration of the CPI(M)-led LF, contrary to the popular belief shaped by the neo-liberal consensus, is not because of its failure to turn fully social democratic but precisely because it has abandoned the tortuous dirt-path of working-class struggle for the comfortable highway of social democracy. Social democracy, which envisages social progress and the well-being of the working people and the poor essentially as a question of distributive justice, is a form of governance that seeks to equitably distribute a given basket of socio-economic entitlements. In such a ‘Leftist’ scheme, there is no place for interventionist and transformative politics because the state, which for social democracy is an instrument of efficient regulation and equitable redistribution, is treated as a passive and neutral entity that must be captured and then merely controlled.

The state, however, is in reality constitutive of an exploitative, oppressive and hierarchical social order. To that extent, a radical socialist programme must actively articulate the tendency to erode, not capture, it. For, it is only through such erosion that the structural reinforcement of a stratified society can be undermined. The preposterous contradiction the CPI(M)-led LF has created between industrial development that is inescapable, and universal democracy that is indispensable, is a symptom of its social-democratic degeneration. Its failure to imagine more democratic and participatory configurations of socio-political power, which could drive truly cooperative consolidation of land and other resources, and posit an alternative model of development, is because of its social-democratic fixation on the state.

That the Maoists too should call themselves the CPI(M) – Communist Party of India (Maoist) – is uncanny. But more eerie perhaps is the fact that their conception of the party as a state-form predisposes them to a social democratic approach to politics that virtually makes them a mirror-image of the original CPI(M). It’s time the Maoists woke up and smelt the gunpowder.

Lalgarh: People’s Committee against Police Atrocities vows to fight until death

June 20, 2009. The Telegraph

FOR REGULARLY UPDATED NEWS AND VIEWS ON LALGARH, VISIT SANHATI.COM

The tribal body that started the seven-month- old Lalgarh agitation with Maoist backing today threatened a “fight to death” in the face of the government offensive.

“We were born here, we are agitating here and we will die here,” said Chhatradhar Mahato, chief of the People’s Committee against Police Atrocities [PCPA].

“The barricades will continue. The more they are forcibly removed, the deeper will be the (public) anger at the police and support for us.”

Mahato, speaking to The Telegraph at Barapelia, 5km north of Lalgarh town, said the movement had begun because of the “government’s long neglect of the tribal people, who have been surviving on ant eggs for far too long”.

“Our movement is for the development of the people. They (the government) cannot gain people’s confidence by using force,” Mahato, the secretary of the committee, added.

He expressed surprise that the state government had called in paramilitary and additional police forces in response to the destruction of a house being built by Anuj Pandey, the CPM’s Binpur zonal committee secretary.

“Yet no one is asking how this leader could build such a palatial mansion,” he said.

Mahato alleged that Pandey’s brother Dalim, Lalgarh CPM local committee leader, had amassed huge wealth. “Whenever any land transaction took place in the region, he would take a commission. Why were the police brought in to protect these tainted brothers?”

The committee [PCPA] secretary wondered why no action was taken when CPM offices were burnt in Khejuri and the police boycotted at the behest of Trinamul Congress MP Subhendu Adhikari. “The same government is now using central forces against us….”

Committee president Lalmohan Tudu, who too was at Barapelia, said everyone in the region supported the movement. “The battle has entered the heart of Lalgarh. The forces will now see what they are up against.”

Singrai Baskey, resident of Kantapahari, 7km north of Lalgarh town, said: “We are with the movement. We have realised how much this movement means to us now that the entire nation has its eyes fixed on Lalgarh.”

David McNally on Marx and the Global Economic Crisis

David McNally, Professor at York University and leading member of the New Socialist Group (Solidarity’s sister organization in Canada, http://www.newsocialist.org), talks about the roots of the the financial crisis and its precise role in the worldwide economic downturn–as well as the depth of its social costs. From the Marx and the Global Economic Crisis panel at the 2009 Left Forum in New York.

Courtesy: Erin, Solidarity (US)

Anwar Shaikh on Marx and the Global Economic Crisis

Anwar Shaikh, Professor at the New School for Social Research, gives a Marxist account of historic fluctuations in the capitalist economy and how the current crisis fits in the overall picture. From the Marx and the Global Economic Crisis panel at Left Forum 2009, New York.

Shaikh’s homepage, which includes an extensive selection of his articles on economics, can be found here: http://homepage.newschool.edu/~AShaikh/

Courtesy: Erin, Solidarity (US)

Habib Tanvir is dead

Bhopal, Jun 8 (PTI) Noted playwright and theatre director Habib Tanvir died at a hospital here today after a brief illness. He was 85.

The theatre legend was admitted to the National Hospital here three weeks back after he complained of breathing problems and was put on a ventilator, family sources said.

His daughter Nageen was at his bedside when the end came.

Born on September 1, 1923 at Raipur, Habib began his career as a journalist and went on to become a highly renowned playwright.

Known for his plays like Agra Bazar and Charandas Chor, Tanvir founded the Naya theatre company here in 1959. He also scripted many films and acted in a few of them.

He was awarded the Sangeet Natak Akademi Award in 1969 and Padma Shri in 1983. (Courtesy: PTI)

Petition: Stop Crackdown on Dalit Workers’ Struggle for Housing in Punjab

Please sign the following petition

To
Shri Manmohan Singh,
Hon’ble Prime Minister,

Sub: Intervention sought in the mass arrest of rural poor and dalit workers in Punjab

Dear Sir,

We are writing to seek your urgent intervention in the mass arrests of dalit agricultural labourers in Mansa, Sangrur and Bathinda districts of Punjab. Since 21 May, over 1300 agricultural labourers and labour leaders, including 511 women and 42 children, have been locked up in different jails of Punjab. Almost all the activists and leaders of the Mazdoor Muktio Morcha and the CPI(ML) (Liberation) in Punjab have been jailed, and even the most peaceful protests and ordinary political activities by these groups is facing a crackdown. Some of the senior activists have been isolated from the others and confined along with hardened criminals and are being harassed within the jail. This includes Jasbir Kaur Nat, a National Council Member of the AIPWA, who is held in Naba jail , in violation of her rights as a political prisoner.

The arrests have happened in the course of a struggle for NREGA job cards and homestead plots promised by the SAD-BJP State Government. The SAD-BJP Government launched this offensive immediately following the Lok Sabha elections, where the results reflected the disenchantment of the rural poor with the government.

In Punjab, where agriculture is highly mechanised, rural poor often get very few days of employment a month – whereby the rural poor had pinned their hopes for survival on the extension of NREGA to all rural districts in the country. Consequently, the failure of the administration to provide NREGA job cards, and the fact that the Punjab Govt. returned 350 crores of NREGA funds unused to the Centre, became a major issue.

The Akali-BJP Government had moreover reneged on its promise to provide homestead plots (5 marla plots for every rural poor family). It was in protest against this denial of basic rights of livelihood and housing, that agricultural labourers of Mansa district, led by the Mazdoor Mukti Morcha and CPI(ML), occupied a portion of panchayat/commons land allotted to be leased to workers. Under the Land Consolidation Act 1961, one-third of panchayat land is meant for agricultural workers on lease for cultivation – and it was this land that the agricultural workers used to build their hutments, until such a time that the Government would keep its promise to allot house plots.

Naturally, for women from dalit labouring background, the issue of both NREGA job cards and land is a very important one, and so they participated in very large numbers in the agitation.

This movement for land and work began prior to the elections and continued even during the elections. The Akali-BJP Government, it seems, has waited till the elections were over, to begin an all-out crackdown. The agricultural workers had begun a peaceful dharna on 17 May and held a massive Rally on 19 May, which put enough pressure on local officials to effect an agreement to ensure job cards within one month and house plots to all within three months. The very next day, local upper caste land owners began a road-roko protest demanding eviction of the poor from the panchayat land, and, one cue, on 21 May, labour leaders, including even the General Secretary of the All India Central Council of Trade Unions (AICCTU), Comrade Swapan Mukherjee, were arrested. On 22 May, over 1000 workers including a very large number of women and children were arrested and jailed – from the dharna site, from their homes, and from the office of the Mazdoor Mukti Morcha and CPI(ML). Young children have been separated from their jailed mothers and sent to junvenile and delinquent homes without informing the parents on where their children have been confined.

The ostensible excuse for the arrests was the need to vacate the so-called “illegal occupation” of the panchayat land – but the arrests have continued even after the forcible eviction of the poor from that land, and the demolition of their makeshift homes.

In Punjab, when rich farmers habitually occupy common land, land allotted for waste disposal, etc. the government never lifts a finger against them. It is a shame that the same government, having blatantly broken its promises of housing and livelihood, has unleashed severe repression when poor rural workers are demanding fulfilment of the government’s own promise.

Even today, activists of the AIPWA, Mazdoor Mukti Morcha and CPI(ML) outside jails are being threatened with arrest at the slightest sign of any peaceful protest or ordinary political activity like party meetings. Activists who have not been jailed are being held under virtual house arrest, without any warrant and in complete violation of their fundamental rights, as the offices and homes are being encircled by the police and ordinary movement hampered. This unspoken emergency has a dimension of class and caste bias – since it is the organisations of the rural workers and dalits which are being targeted and prevented from functioning.

We demand your Government’s urgent intervention to ensure an end to the repression, harassment and witch-hunt being unleashed on the rural poor by the Punjab Government, immediate and unconditional release of all arrested activists and leaders of the AIPWA, Mazdoor Mukti Morcha and CPI(ML), and fulfilment of the basic and inalienable demands of agricultural labourers for land, housing and jobs.

Sincerely,

The Undersigned

Sign the Petition