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The Economic Logic of Regime Change: Venezuela Today. Uganda Tomorrow?

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The US is supervising a coup in Venezuela. The pretext: Nicholas Maduro’s brutality, the state’s record of widespread human rights abuses, does not wash. In August 2018, appeals for similar US intervention when Museveni brutally suppressed the youth uprising led by Bobi Wine and his colleagues, were rebuffed. In Zimbabwe, the Mnangagwa government turns on anti-austerity protestors with impunity. Why the double-standards triply-distilled? It’s all about debt, the old Washington Consensus, and the incumbent Big Man’s ability to suppress his people’s right to economic self-determination. By MARY SERUMAGA.

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The Economic Logic of Regime Change: Venezuela Today. Uganda Tomorrow?
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The American engineered regime-change taking place in Venezuela should be of interest to Africa and especially those countries which like Venezuela have experienced sporadic episodes of social unrest over a protracted period. President Maduro, like Presidents Mnangagwa of Zimbabwe and Museveni of Uganda has responded with wanton brutality. The actions of all three countries featured in in-depth reports by Human Rights Watch in 2017 alone. Maduro is the only one of the three so far who has attracted the ultimate sanction of regime change.

The Ugandan regime, hopelessly in debt and facing growing disaffection, is vulnerable to a take-over similar to Maduro’s. So strong is the disaffection and so likely are the youth to succeed in displacing the National Resistance Movement in a fair election, the United States cannot afford to be complacent if it wants to maintain the status quo. The only potential barrier to a second phase of structural adjustment (SAP II) is the fact that support for the new and most popular opposition leader, Robert Kyagulanyi aka Bobi Wine, is rooted in the most excluded and disaffected and not the elite who would benefit from the continuation of the status quo.

Going back to 20th-century history, Africa and Latin America formed part of the Tripartite set up in the sixties to represent the global interests of Africa, Asia and Latin America. The high point was the 1966 Solidarity Conference of the Peoples of Africa, Asia and Latin America. The bloc expanded the then existing alliance known in the United Nations as the Afro-Asian Bloc and solidified at the Bandung Conference of 1955. The bloc was considered a threat by the United States and Europe as it voted against American interests on matters such as allowing Communist China to sit in the General Assembly. The Afro-Asian bloc enjoyed at least the nominal support of the Soviet Union (the depth of that support was tested by the Congo crisis during which the Soviet Union did not in the end support Patrice Lumumba who was assassinated before the colonialisation of Congo resumed unabated).

In the following years, much of Latin Africa signed on for their first phase of IMF development assistance. The results of the austerity that followed have been much written about, and culminated in the ‘IMF riots’ of the 1980s and 90s. Recent austerity protests in Zimbabwe continue this trend. Enter Hugo Chavez and his socialist intervention. President Maduro’s mentor gained popular support from the poorest and most marginalised for his anti-imperialist platform, enough even to recover from being deposed in an earlier American coup d’état in 2002. As Craig Murray put it, “Hugo Chavez’ revolutionary politics were founded on two very simple tenets:

  • People ought not to be starving in dreadful slums in the world’s most oil-rich state
  • The CIA ought not to control Venezuela”

Murray was referring to the twelve Latin American coups organized by the CIA between 1954 and 2019. Neither Chavez nor Maduro were able to rise above corruption and autocracy. Neither has President Trump, but unlike Donald Trump’s America, Venezuela needs outside financial support.

The end of the Cold War and the collapse of the Soviet Union left African countries in the lurch, still in need of access to capital for development, under pressure to continue to supply primary commodities and yet no longer able to play one superpower off against the other. In addition, the 1980s debt crisis forced most of them to sign onto the IMF’s structural adjustment programme. Austerity-induced social unrest is the enduring result. Uprisings in all three, that is Zimbabwe, Venezuela and Uganda, are a response to extreme and worsening economic conditions of high unemployment, hunger and rising taxes. Endemic corruption and economic sanctions only worsened the situation (and were designed to do so) in Zimbabwe. There are no examples anywhere of the success of structural adjustment in achieving its stated goals of deeper democracy, greater rule of law, higher respect for human rights, good governance, civil service reform, improved service delivery, an enabling environment for FDI and a rising, prosperous middle class. On the contrary there are only examples of countries having to receive further assistance to achieve the unattained goals of the first phase of IMF and World Bank intervention, Uganda, Zimbabwe, Kenya being a few.

There are no examples anywhere of the success of structural adjustment in achieving its stated goals…

Structural Adjustment did achieve the objective of liberalising economies. This ensured Western access to cheap primary commodities not otherwise available to major IMF shareholders. The removal of restrictions on exporting capital has meant foreign investors whose role was meant to inject capital into assisted economies, can now freely transfer profits illicitly earned. It is an indisputable fact that there is a net outflow of capital from Africa of $41 billion every year – that is, the difference between loans, grants and FDI received and the cost of tax evasion, repatriation of aid, environmental damage, land-grabs and other features of the SAPs.

The IMF as an organization ensured its own profitability by locking borrowing countries into unsustainable debt.

When in Uganda political dissent was met by a massive and sustained wave of brutality by the state, in August 2018 Ugandans called on the United States to intervene by withdrawing their material, diplomatic and moral support from President Museveni. Uganda’s constitution like Venezuela’s provides for the removal of the president on various grounds of incapacity. The United States did not invoke the article against Museveni as they have done against Maduro.

The IMF as an organization ensured its own profitability by locking borrowing countries into unsustainable debt.

Washington did the opposite, effectively endorsing the NRM regime by placing the responsibility for the crisis on the opposition, and pressuring on its leadership to reach an agreement with what is ranked as East Africa’s second most corrupt government. They have been assisted in creating a façade of legitimacy for Museveni by organisations such as Transparency International whose global leader handed him an award for his ‘fight against corruption’ in 2018 – in the same week that he was being cited in a New York court for having taken a $500,000 bribe.

This unstinting support is useful in maintaining the economic status quo. Ironically, it is Museveni’s rash behaviour that is tipping the balance in favour of regime change. The United States has turned to Kenya for some of its security needs, transferring a lucrative military base from Entebbe to Kenya.

Washington has been assisted in creating a façade of legitimacy for Museveni by organisations such as Transparency International whose global leader handed him an award for his ‘fight against corruption’ in 2018 – in the same week that he was being cited in a New York court for having taken a $500,000 bribe.

In the first phase of the state’s brutality against its citizens, the regime allows the drama to be broadcast. This has the important function of instilling fear in the population. It is a signal to the world of the regime’s impunity. Later on, rumours circulate of house-to-house invasions by the armed forces in which young people are dragged out of their homes and beaten, ostensibly for supporting the uprisings.

Leaders of both countries have resorted to unconstitutional means to acquire and maintain power. There was the bloodless coup in Zimbabwe during which the uncooperative and China-embracing Robert Mugabe was ousted. President Museveni simply altered the constitution to allow him first to exceed the two-term limit to the presidency and later, the age-limit. Members of parliament were paid to support both constitutional amendments.

In the first phase of the state’s brutality against its citizens, the regime allows the drama to be broadcast. This has the important function of instilling fear… It is a signal to the world of the regime’s impunity.

This brings us to the reasons the United States, backed by the EU, is intervening in Venezuela – why it can justify its intervention of breaches of democratic principles in Venezuela but continue to support Museveni whose method of governance is similar. Officially it is to end President Maduro’s undeniably repressive rule and to prevent him from (further) embezzling and squandering Venezuela’s resources. There is little point in arguing a defense of President Maduro. However, the fact remains that his removal can only be sanctioned by a ruling of the Supreme Tribunal of Justice that the required constitutional ground/s have been met. There was no such ruling before Guaidò declared himself president. So much for the rule of law.

The answer is that Museveni’s continued domination of Uganda until recently met the economic objectives (often cast as security prerogatives) of the United States and Europe, the IMF and the World Bank. However, he is now struggling to remain relevant in global financial circles. The groundswell of opposition to NRM rule renders the enabling environment for extraction and extortion so risky as to be a bad investment. Should the opposition succeed in ousting Museveni and his cabal, there would be no guarantee the IMF’s regime would survive the transition.

In Venezuela’s case, Guaidò is already committed to the IMF and Western goals. His economic advisor, Ricardo Hausmann has been a political exile in the United States for years and has been in talks with the IMF. In January 2019 he made some of his proposals known. Although he has warned that an immediate resumption of debt servicing would not be possible, Hausmann does not call for a debt audit to determine whether lenders were duly diligent in lending to past regimes that he opposed on the basis of their alleged corruption, or whether the proceeds of the loans were injected in to the economy.

In Venezuela’s case, Guaidò is already committed to the IMF and Western goals. His economic advisor, Ricardo Hausmann…has been in talks with the IMF.

“For Hausmann, the key to any turnaround is a swift and massive injection of cash from the International Monetary Fund – to the tune of $60 billion or more.”

“Venezuela is the most over-indebted [sic] countr[ies] in the galaxy,” Hausmann said. “First, second and third priorities have to be the recovery of the country. There’s a humanitarian disaster. There are millions of Venezuelans flooding into other countries. If you want to fix the problem, you can’t take money out of the system to pay yourself back. It will take years to start servicing debt.” (Ben Bartenstein, Bloomberg January 30, 2019)

He does not say that illegal, unsustainable, illegitimate or odious debt should not be paid but merely proposes rolling payments over to a later date. If Venezuela agrees, she will become the new darling of the West.

In return Guaidò has received support unprecedented for a foreign opposition leader. On 24th January, US Secretary of State, Mike Pompeo and the Treasury Department announced sanctions against any persons that continue to do business in Venezuela’s oil industry; on January 25th John Bolton, President Trump’s National Security Advisor announced US intention to shift oil production in Venezuela to American companies. Ambassador John Bolton tweeted, “The United States will not let Maduro and his cronies continue to loot the assets of the Venezuelan people.” And finally, the rule of law in Venezuela was further flouted on 29 January when the United States sequestered Venezuelan bank accounts held there or insured by them, and put them at Guaidò’s disposal.

On his part, President Mnangagwa signed up weeks after ousting Mugabe. He will enjoy continued support as long as he too remains committed to repaying Zimbabwe’s unsustainable debt. His problem is he is simply unable to implement structural adjustment austerity and obtain a new package of concessional loans. The reason being that although Zimbabwe’s outstanding dues to the IMF were paid in 2016, there are unpaid arrears to the World Bank, the African Development Bank and other international financial institutions and development partners. The rules require that these be paid before any further lending can be considered. As their spokesperson pointed out, the IMF “stands ready to help the authorities design a reform package that can help facilitate the clearance of external payment arrears to international development banks and bilateral official creditors and that then would open the way for fresh financing from the internal community including potentially the IMF. But, again, just to stress as we said before, potential financial support from the Fund is conditional on the clearance of those arrears to the World Bank, the AFDB and financing assurances from bilateral official creditors (emphasis mine).”

On his part, President Mnangagwa signed up weeks after ousting Mugabe. He will enjoy continued support as long as he too remains committed to repaying Zimbabwe’s unsustainable debt.

Clearance of those arrears which amount to just over US$5 billion would mean austerity even beyond the conditions Zimbabweans’ experiences today. This outcome is not acceptable either to opposition politicians or the general population. In 2017 when the government tried to arrange financing to clear the arrears, opposition politician Tendai Biti stated: “That will not help much or anything at all in reality. The biggest challenges facing Zimbabwe cannot and will not be addressed by paying off arrears on which we defaulted almost 20 years ago; what really needs to be addressed are structural economic issues, de-industrialisation and unemployment. That money could be better used to fund industry revival to create jobs and boost production, as well as increase exports and improve liquidity.”

Although Uganda has a track record of cooperation with Western financial institutions, it has reached a tipping point. The auditor-general points out that…in 2020, total debt repayment will require 65 percent of all revenues collected.

Similarly, although Uganda has a track record of cooperation with Western financial institutions, it has reached a tipping point. The auditor-general points out that when the principle for some loans becomes repayable in 2020, total debt repayment will require 65 percent of all revenues collected. Mass demonstrations against austerity are likely to escalate. By December 2018 the IMF had made it clear that no new concessional loans were forthcoming until certain steps are taken to rein in overspending, restore fiscal discipline and control corruption. SAP II requires the suspension of infrastructure projects financed by non- or partially concessional loans (mainly from China). Although Kenya agreed to this condition to its own SAP II package in 2018, Uganda still hopes to find alternative funding for the projects. It is unlikely to be found because the IMF works in tandem with bi-lateral lenders – acting as a debt collector for them, even in cases such as Mozambique where funds were borrowed illegally (without parliamentary approval) and subsequently stolen.

If support is withdrawn from either Museveni or Mnangagwa it will not be as punishment for their human rights abuses. It will be because their development partners calculate that their own objectives would be better achieved through alternative proxies.

If support is withdrawn from either Museveni or Mnangagwa it will not be as punishment for their abuses of human rights and democratic principles and public demand that they depart. It will be because their development partners calculate that their own objectives would be better achieved through alternative proxies. The United States and her acolytes will back any candidate that will agree to their terms. Self-proclaimed president of Venezuela, Juan Guaidò is a clear example of that.

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Mary Serumaga is a Ugandan essayist, graduated in Law from King's College, London, and attained an Msc in Intelligent Management Systems from the Southbank. Her work in civil service reform in East Africa lead to an interest in the nature of public service in Africa and the political influences under which it is delivered.

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Education in Rwanda: A Long Walk to the Knowledge Economy

If Rwanda is to attain its stated ambition to become of a middle-income country by 2035 driven by the knowledge economy, then it must inject significant investments in the education and related sectors.

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Rwanda has shown commitment to bring improvements to its education sector. The development of Human capital that involves the enhancement of the education and health sectors was one of the main pillars of Rwanda’s development programme launched in 2000 to transform the country into a middle income state driven by the knowledge economy by 2020. Many developed countries joined in to financially support Rwanda to fulfil its development ambitions.

But while Rwanda did not meet its target to transform into a middle-income state by 2020, it has nevertheless made progress in the education sector that should be recognised. The country has now near-universal access to primary education with net enrolment rates of 98 per cent. There are also roughly equal numbers of boys and girls in pre-primary, primary and secondary schools in Rwanda. Compared to other sub-Saharan African countries, Rwanda has made great improvements in the education sector based on the gains made in primary school gross enrolment, out-of-school and retention rates and considering that the country came out of a genocidal civil war in the 1990s. Those of us living and travelling across the country can also see that the government of Rwanda has built more schools across the country to address congestion in classrooms.

However, education in Rwanda is faced with serious challenges which, if not addressed, the country will not attain its ambition to become a middle-income by 2035 and a high-income by 2050. The World Bank’s comparison with middle- and high-income countries, to whose ranks Rwanda aspires to join, shows that Rwanda lags far behind in primary and lower secondary school completion levels.

The gains made in education are not equally distributed across Rwanda. There are, for instance, wide disparities in lower secondary education by income and urban–rural residence. Whereas lower secondary school gross enrolment ratio level is 82 per cent in urban areas, it is only 44 per cent in rural areas. Moreover, transition rates between primary and lower secondary education are 53 per cent in urban areas, and 33 per cent in rural areas. School completion is 52 per cent among the richest quintile while it is 26 per cent among the poorest. Any future development strategy is unlikely to succeed if it does not provide basic equality of opportunity for all in Rwanda.

The standard of education in Rwanda is another major challenge. At the end of Grade 3, 85 per cent of Rwandan students were rated “below comprehension” in a recent reading test, and one in six could not answer any reading comprehension question. In my view, the quality of education has been partly affected by the abrupt changes in the language of instruction that have taken place without much planning since 2008.

Any future development strategy is unlikely to succeed if it does not provide basic equality of opportunity for all in Rwanda.

Learning levels in basic education remain low in Rwanda.  Children in the country can expect to complete 6.5 years of pre-primary and basic education by the age of 18 years. However, when this is adjusted for learning it translates to only about 3.8 years, implying that children in Rwanda have a learning gap of 2.7 years. This is a concern.

Education in Rwanda is also impended by high levels of malnutrition for children under 5 years. Although there have been improvements over time, malnutrition levels remain significantly high at 33 per cent. Malnutrition impedes cognitive development, educational attainment, and lifetime earnings. It also deprives the economy of quality human capital that is critical to Rwanda attaining its economic goals and sustaining its economic gains. In 2012, Rwanda lost 11.5 per cent of GDP as a result of child undernutrition.

Because of low learning levels and high levels of malnutrition in children under 5 years, Rwanda has consistently ranked below average on the World Bank’s Human Capital index since 2018, the year the index was first published. HCI measures which countries are best at mobilising the economic and professional potential of their citizens.

If Rwanda is to develop the competent workforce needed to transform the country into a knowledge-based economy and bring it into the ranks of middle-income states, the government must put significant public spending in basic education. This has not been the case over the past decades. According to the World Bank, Rwanda’s public spending on primary education has been significantly lower than the average for sub-Saharan African countries with similar coverage of primary school level as Rwanda. This low spending on primary education has translated into relatively modest pay for teachers and low investment in their professional development which in turn affects the provision of quality education in Rwanda. The government recently increased teachers’ salary but the increment is being eroded by, among other things, food price inflation in Rwanda.

Malnutrition impedes cognitive development, educational attainment, and lifetime earnings.

Going forward, Rwanda’s spending on education needs to be increased and allocated to improving standards. Considering that the underlying cause of the high rate of malnourishment in children is food insecurity, the government needs to spend more on the agriculture sector. This sector employs 70 per cent of the labour force but has received only 10 per cent of total public investment. Public investment in Rwanda has in the past gone to the development of the Meetings, Incentives, Conferences and Exhibitions sector rather than towards addressing pressing scarcities. This approach must be reviewed.

Increasing public expenditure in education and connected sectors should also be combined with strengthening accountability in the government institutions responsible for promoting the quality of education in basic schools and in promoting food security and livelihoods in Rwanda. This is because not a year goes by without the office of the Rwanda auditor general reporting dire inefficiencies in these institutions.

Strengthening institutional accountability can be achieved if the country adapts its consensual democracy by opening up the political space to dissenting voices. Doing so would surely enhance the effectiveness of checks and balances across institutions in Rwanda, including in the education sector, and would enable the country to efficiently reach its development targets.

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No Imperialist Peoples, Only Imperialist States

Adam Mayer praises a new collection, Liberated Texts, which includes rediscovered books on Africa’s socialist intellectual history and political economy, looking at the startling, and frequently long ignored work of Walter Rodney, Karim Hirji, Issa Shivji, Dani Wadada Nabudere, A. M. Babu and Makhan Singh.

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No Imperialist Peoples, Only Imperialist States
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Liberated Texts is a magnificent, essential, exciting tome that feels like a bombshell. This incredibly rich collection is a selection that is deep, wide, as well as entertaining. The book focuses on twenty-one volumes from the previous one hundred years, with a geographical range from the UK, the US, Vietnam, Korea, the Peoples Republic of China, the Middle East, Ireland, Malaysia, Africa (especially East Africa), Europe, Latin America, and the former Soviet Union, focusing on books that are without exception, foundational.

The collection is nothing less than a truth pill: in composite form, the volume corrects world history that Howard Zinn’s The People’s History of the United States offered for the sterile, historical curriculum on domestic (US) history. The volume consists of relatively short reviews (written by a wide collection of young and old academics and activists from every corner of the globe) but together they reflect such a unified vision that I would recommend Liberated Texts as compulsory reading for undergraduate students (as well as graduates!) Although the text is a broad canvas it speaks to our age (despite some of the reviewed book having been written in the 1920s).

Each review is by default, a buried tresure. The writer of this very review is a middle-aged Hungarian, which means that some of the works and authors discussed were more familiar to me than they would be to others. For example, Anton Makarenko’s name was, when the author grew up in the People’s Republic of Hungary, a household word. Makarenko’s continued relevance for South America and the oppressed everywhere, as well as his rootedness in the revolutionary transformations of the Soviet experiment, are dealt with here marvellosly by Alex Turrall (p. 289). In loving detail Turrall also  discusses his hero the pedagogue Sukhomlinsky’s love for Stalinist reforms of Soviet education (p. 334).

There is one locus, and one locus only, where death is given reign, perhaps even celebrated: in a Palestinian case (p. 133) the revolutionary horizons are firmly focused on the past, not on any kind of future. The entire problematic of Israeli society’s recent ultra right-wing turn (a terrible outcome from the left’s point of view) is altogther missing here. Yet it is difficult to fault the authors or editors with this (after all, they painstakingly included an exemplary anti-Nazi Palestinian fighter in the text, p. 152) but it might be in order to challenge a fascination with martyrdom as a revolutionary option on the radical left.

In every other aspect, Liberated Texts enlightens without embarrassment, and affirms life itself. Imperialism is taken on in the form of unresolved murders of Chinese researchers in the United States as a focus (p. 307), and in uncovering the diabolical machinations of the peer-review system – racist, classist, prestige-driven as it is (p. 305).

The bravery of this collection is such that we find few authors within academia’s tenure track: authors are either emeriti, tenured, very young academics, or those dedicated to political work: actual grassroots organizers, comrades at high schools, or as language teachers. This has a very beneficial effect on the edited volume as an enterprise at the forefront of knowledge, indeed of creating new knowledge. Career considerations are absent entirely from this volume, in which thankfully even the whiff of mainstream liberalism is anathema.

I can say with certainty regarding the collection’s Africanist chapters that certain specialists globally, on African radical intellectual history, have been included: Leo Zeilig, Zeyad el-Nabolsy, Paul O’Connell, Noosim Naimasiah and Corinna Mullin all shed light on East African (as well as Caribbean) socialist intellectual history in ways that clear new paths in a sub-discipline that is underfunded, purposely confined to obscurity, and which lacks standard go-to syntheses especially in the English language (Hakim Adi’s celebrated history on pan-Africanism and communism stops with the 1950s, and other works are in the making).

Walter Rodney, Karim Hirji, Issa Shivji, Dani Wadada Nabudere, A. M. Babu, Makhan Singh are the central authors dealt with here. Rodney is enjoying a magnificent and much deserved renaissance (but this collection deals with a lost collection of Rodney’s 1978 Hamburg lectures by Zeilig!) Nabolsy shows us how Nyerere’s Marxist opposition experienced Ujamaa, and Tanzanian ’socialism’. Nabudere – a quintessential organic intellectual as much as Rodney –  is encountered in praxis as well as through his thought and academic achievements in a chapter by Corinna Mullin. Nabudere emerges as a towering figure whose renaissance might be in the making right at this juncture. Singh makes us face the real essence of British imperialism. Nabudere, Babu and even Hirji’s achievements in analysing imperialism and its political economy are all celebrated in the collection.

Where Shivji focuses on empire in its less violent aspect (notably NGOs and human rights discourse) powerfully described by Paul O’Connell, Naimasiah reminds us that violence had been as constitutive to Britain’s empire, as it has been to the Unites States (in Vietnam or in Korea). An fascinating chapter in the collection is provided by Marion Ettinger’s review of Richard Boyle’s Mutiny in Vietnam, an account based entirely on journalism, indeed impromptu testimony, of mutinous US soldiers tired of fighting for Vietnam’s landlord class.

Many readers of this anthology will identify with those veterans (since the collection appears in the English language) perhaps more than with East Asia’s magnificent, conscious fighters also written about in the book. Even in armies of the imperialist core, humanity shines through. Simply put, there are no imperialist peoples, only imperialist states.

Zeilig’s nuanced take on this important matter is revealed in Rodney’s rediscovered lectures. Also, the subtlety of class analysis in relation to workers versus peasants, and the bureacratic bourgeoisie profiting from this constellation (p. 219) brings to mind the contradiction that had arguably brought down Thomas Sankara, Burkina Faso’s anti-imperialist president who nevertheless found himself opposing working class demands. Rodney’s politics in Guyana invited the same fate as Sankara, as we know.

Nabolsy’s review on Hirji’s The Travails of a Tanzanian Teacher touches on very interesting issues of Rodney’s role especially in the context of Ujamaa and Nyerere’s idiosyncratic version of African socialism. Nabolsy appreciates Nyerere efforts but analyses his politics with great candour: Ujamaa provided national unification, but failed to undermine Tanzania’s dependency in any real sense. The sad realization of the failure of Tanzania’s experience startles the reader with its implications for the history of African socialism.

On an emotional and personal level, I remain most endeared by the Soviet authors celebrated in this text. So Makarenko and Sukhomlinsky are both Soviet success stories and they demonstrate that this combination of words in no oxymoron, and neither is it necessarily, revisionist mumbo-jumbo. Their artificial removal from their historical context (which had happened many times over in Makarenko’s case, and in one particular account when it comes to Sukhomlinsky) are fought against by the author with Leninist gusto.

Sukhomlinsky had not fought against a supposedly Stalinist education reform: he built it, and it became one of the most important achievements of the country by the 1960s due partly to his efforts. The former educational pioneer did not harm children: he gave them purpose, responsibility, self-respect, and self-esteem. The implication of Sukhomlinsky and Makarenko is that true freedom constructs its own order, and that freedom ultimately thrives on responsibility, and revolutionary freedom.

As this collection is subtitled Volume One, it is my hope and expectation that this shall be the beginning of a series of books, dealing with other foundational texts, and even become a revolutionary alternative to The London Review of Books and the New York Review of Books, both of which still demonstrate how much readers crave review collections. Volumes like Liberated Texts might be the very future of book review magazines in changed form. A luta continua!

This article was first published by ROAPE.

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We Must Democratize the Economy

In the UK, prices for basic goods are soaring while corporations rake in ever-bigger profits. The solution, Jeremy Corbyn argues, is to bring basic resources like energy, water, railways, and the postal service into democratic public ownership.

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Jeremy Corbyn: We Must Democratize the Economy
Photo: Chatham House, London
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On Thursday, December 15, the Royal College of Nursing went on strike for the first time in their 106-year history. Understaffed, underpaid, and overworked, tens of thousands of National Health Service (NHS) nurses walked out after being denied decent, livable pay rises. Hailed as heroes one year, forced to use food banks the next, nurses’ wages have fallen more than £3,000 in real terms since 2010; three in four now say they work overtime to meet rising energy bills.

People will remember 2022 as the year that the Conservative Party plunged this country into political turmoil. However, behind the melodrama is a cost-of-living crisis that has pushed desperate people into destitution and the so-called middle classes to the brink. We should remember 2022 as the year in which relative child poverty reached its highest levels since 2007 and real wage growth reached its lowest levels in half a century. (Average earnings have shrunk by £80 a month and a staggering £180 a month for public sector workers.) These are the real scandals.

For some MPs, this was the year they kick-started their reality TV careers. For others, this was the year they told their children they couldn’t afford any Christmas presents. For energy companies, it was the year they laughed all the way to the bank; in the same amount of time it took for Rishi Sunak to both lose and then win a leadership contest, Shell returned £8.2 billion in profit. SSE, a multinational energy company headquartered in Scotland, saw their profits triple in just one year. Profits across the world’s seven biggest oil firms rose to almost £150 billion.

Tackling the cost-of-living crisis means offering an alternative to our existing economic model — a model that empowers unaccountable companies to profit off the misery of consumers and the destruction of our earth. And that means defending a value, a doctrine, and a tradition that unites us all: democracy.

Labour recently announced “the biggest ever transfer of power from Westminster to the British people.” I welcomed the renewal of many of the policies from the manifesto in 2019: abolishing the House of Lords and handing powers to devolved governments, local authorities, and mayors. These plans should work hand in hand, to ensure any second chamber reflects the geographical diversity of the country. If implemented, this would decentralize a Whitehall-centric model of governance that wastes so much of this country’s regional talent, energy, and creativity.

However, devolution, decentralization, and democracy are not just matters for the constitution. They should characterize our economy too. Regional governments are demanding greater powers for the same reason an unelected second chamber is patently arcane: we want a say over the things that affect our everyday lives. This, surely, includes the way in which our basic resources are produced and distributed.

From energy to water and from rail to mail, a small number of companies monopolize the production of basic resources to the detriment of the workers they exploit and the customers they fleece. We rely on these services, and workers keep them running, but it is remote chief executive officers and unaccountable shareholders who decide how they are run and profit off their provision. Would it not make more sense for workers and consumers to decide how to run the services they provide and consume?

As prices and profits soar, it’s time to put basic resources like energy, water, rail, and mail back where they belong: in public hands. Crucially, this mold of public ownership would not be a return to 1940s-style patronage-appointed boards but a restoration of civic accountability. Water, for example, should be a regional entity controlled by consumers, workers, and local authorities, and work closely with environmental agencies on water conservation, sewage discharges, the preservation of coastlines, and the protection of our natural world. This democratic body would be answerable to the public, and the public alone, rather than to the dividends of distant hedge funds.

Bringing energy, water, rail, and mail into democratic public ownership is about giving local people agency over the resources they use. It’s about making sure these resources are sustainably produced and universally distributed in the interests of workers, communities, and the planet.

Beyond key utilities, a whole host of services and resources require investment, investment that local communities should control. That’s why, in 2019, we pledged to establish regional investment banks across the country, run by local stakeholders who can decide — collectively — how best to direct public investment. Those seeking this investment would not make their case with reference to how much profit they could make in private but how much they could benefit the public as a whole.

To democratize our economy, we need to democratize workplaces too. We can end workplace hierarchies and wage inequalities by giving workers the right to decide, together, how their team operates and how their pay structures are organized. If we want to kick-start a mass transfer of power, we need to redistribute wealth from those who hoard it to those who create it.

Local people know the issues facing them, and they know how to meet them better than anyone else. If we want to practice what we preach, then the same principles of democracy, devolution, and decentralization must apply to our own parties as well. Local party members, not party leaders, should choose their candidates, create policy, and decide what their movement stands for.

Only a democratic party can provide the necessary space for creative and transformative solutions to the crises facing us all. In a world where the division between rich and poor is greater than ever before, our aim should be to unite the country around a more hopeful alternative — an alternative that recognizes how we all rely on each other to survive and thrive.

This alternative is not some abstract ideal to be imagined. It is an alternative that workers are fighting for on the picket line. Even before the nurses went on strike, 2022 was a record-breaking year for industrial action. Striking workers are not just fighting for pay, essential as these demands are. They are fighting for a society without poverty, hunger, and inequality. They are fighting for a future that puts the interests of the community ahead of the greed of energy companies. They are fighting for us all.

Their collective struggle teaches us that democracy exists — it thrives — outside of Westminster. The government is trying its best to turn dedicated postal workers and railway workers into enemies of the general public — a general public that apparently also excludes university staff, bus drivers, barristers, baggage handlers, civil servants, ambulance drivers, firefighters, and charity workers. As the enormous scale of industrial action shows, striking workers are the general public. The year 2022 will go down in history, not as the year the Tories took the public for fools, but as the year the public fought back. United in their thousands, they are sending a clear message: this is what democracy looks like.

This article was first published by Progressive International

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