(2006)
Helen Yaffe
Ernesto 'Che' Guevara:
a rebel against Soviet Political Economy
Written: 2006
First Published: 2007
Transcription/Markup: Steve Palmer
Copyleft: 
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License.
Helen Yaffe is author of Che Guevara: The Economics of Revolution
In January 1962 Guevara told colleagues in Cuba's Ministry of Industries (MININD): 'In no way am I saying that financial autonomy of the enterprise with moral incentives, as it is established in the socialist countries, is a formula which will impede progress to socialism'.[1] He was referring to the economic management system applied in the Soviet bloc, known in Cuba as the Auto-Financing System (AFS). By 1966, in his critique of the Soviet Manual of Political Economy, he concluded that the USSR: 'is returning to capitalism.'[2] This paper will demonstrate that Guevara's analysis developed in the period between these two statements as a result of three lines of enquiry: the study of Marx's analysis of the capitalist system, engagement in socialist political economy debates and recourse to the technological advances of capitalist corporations.[3] At the same time Guevara was engaged in the practical experience of developing the Budgetary Finance System (BFS); an alternative apparatus for economic management in MININD.
Guevara was head of the Department of Industrialisation and President of the National Bank in 1960 when all financial institutions and 84% of industry in Cuba were nationalised. His BFS emerged as a practical solution to problems thrown up by the transition from private to state ownership of industrial production. Cuba had an unbalanced, trade dependent economy dominated by foreign interests, principally from the United States. The production units which passed under the Department's jurisdiction ranged from artisan workshops to sophisticated energy plants. Many faced bankruptcy while others were highly profitable. Guevara's solution was twofold: first, to group entities of similar lines of production into centralised administrative bodies called Consolidated Enterprises. This allowed the Department to control the allocation of scarce administrative and technical personnel following the exodus of 65-75% of managers, technicians and engineers after 1959; and second, to centralise the finances of all production units into one bank account for the payment of salaries, to control investment and sustain production in essential industries which lacked financial resources. With the establishment of MININD in February 1961, the BFS evolved into a comprehensive apparatus which embedded these organisational structures in a Marxist theoretical framework, to foster Cuba's industrialisation, increase productivity and institutionalise collective management.
Advanced technology
Guevara set up the BFS with compañeros who understood the internal accounting practices, administrative centralisation and productive concentration of US corporations and their subsidiaries in Cuba. Guevara examined the documentation from these companies as they fell into state hands. He was impressed with their management structures, the use of centralised bank accounts and budgets, determinate levels of responsibility and decision-making, and departments for organisation and inspection.[4] He told colleagues that the BFS had an accounting system similar to the pre-1959 monopolies operating in Cuba, with their efficient control systems: 'it's not important who invented the system. The accounting system that they apply in the Soviet Union was also invented under capitalism.'[5]
Guevara first travelled to the USSR in 1960. His deputy Orlando Borrego recalled that they visited an electronics factory which did accounts by abacus. Having studied the US-owned Cuban Electricity Company, Shell, Texaco and other corporations which used the latest IBM accounting machines, Guevara was struck by the backwardness of Soviet techniques. He believed that advances achieved by humanity should be adopted without fear of ideological contamination.
With the imposition of the US blockade, Cuba was forced to buy factories from the socialist countries, especially the USSR. This assistance was essential, but the relative backwardness of the equipment clashed with Guevara's desire for advanced technology transfers. He did not criticise the Soviets for this backwardness per se. Rather, he complained about the contradiction between the high level of research and development in military technology and low investment applied to civilian production. He objected to their ideological resistance to appropriating advances made in the capitalist world. This was a costly mistake in terms of development and international competitiveness.[6] For example: 'For a long time cybernetics was considered a reactionary science or pseudo-science... [but] it is a branch of science that exists and should be used'.[7] He added that in the US the application of cybernetics in industry had resulted in automation - an important productive development.
Basing a management system for socialist transition on capitalist technology was consistent with Marx's stages theory of history, which predicted that communism would emerge from the fully developed capitalist mode of production. Marx showed how the tendency to concentration of capital, that is, to monopoly, was inherent in the system. Therefore, the monopoly form of capitalism was more advanced than 'perfect competition'. The Soviet system originated from predominantly underdeveloped, pre-monopoly capitalism. A socialist economic management system emerging from monopoly capitalism could be more advanced, efficient and productive. The origin of the BFS was the multinational corporations of pre-1959 Cuba and it was therefore more progressive than the AFS which was adapted from pre-monopoly Russian capitalism.
Marx's analysis of the law of value
While Guevara argued for the adoption of advanced technology he opposed the use of capitalist mechanisms to determine production and consumption. He challenged the Soviet's reliance on capitalist categories to organise the socialist economy, particularly the operation of the law of value. The dispute about the law of value in transition economies is central to the question about the feasibility of constructing socialism in a country without a fully developed capitalist mode of production. It is integral to problems of accumulation, production, distribution and social relations. Communism implies a highly productive society in which conditions exist for distribution of the social product based on need, not surplus-generating labour time. However, the countries which have experimented with socialism have been underdeveloped, lacking the productive base for the material abundance implied by communism. The Soviet solution was to rely on the operation of the law of value to hasten the development of the productive forces, applying the profit motive, interest, credit, individual material incentives and elements of competition to promote efficiency and innovations. Guevara argued that these were not the only levers for fostering development. The BFS was the expression of his search for an apparatus to increase productive capacity and labour productivity without relying on capitalist mechanisms which undermine the formation of new consciousness and social relations integral to communism.
Between 1963 and 1965 these questions were examined in Cuba during the Great Debate on socialist transition. To the extent that commodity production and exchange through a market mechanism continued to exist after the Revolution in Cuba, it was clear to all participants in the Great Debate that the law of value continued to operate. The social product continued to be distributed on the basis of work done. However, the disagreements were about the conditions explaining the law's survival, its sphere of operation, the extent to which it regulated production, how it related to the 'plan' and whether the law of value should be utilised or undermined, and if so, how. This discussion was linked to practical questions such as how enterprises should be organised, how workers should be paid and whether goods should be exchanged between state enterprises as commodities.
Guevara agreed that the law of value remained under socialism but argued that measures taken by the Revolution to undermine the capitalist market meant that the law could not serve as the dynamic catalyst to productivity and efficiency in the same way as it did under capitalism.[8] Socialisation of the means of production and distribution had 'blunted' the tools of capitalism.[9] Marx described a commodity as a good which changes ownership, from the producer to the consumer. Consistent with this definition, Guevara insisted that products transferred between state-owned enterprises did not constitute commodities because when they were transferred from one state factory to another there was no change in ownership. The state itself should be considered as one big enterprise.[10] For Guevara commodity-exchange relations between factories threatened transition, via 'market socialism', to capitalism. He stressed central planning and state regulation as substitutes to such mechanisms.
The Soviet's argued that commodity production, the law of value, and money would disappear only when communism was achieved, but that to reach that stage it was necessary to use and develop the law of value as well as monetary and mercantile relationships. Guevara disagreed:
'Why develop? We understand that the capitalist categories are retained for a time and that the length of this period cannot be predetermined, but the characteristics of the period of transition are those of a society that is throwing off its old bonds in order to move quickly into the new stage. The tendency should be, in our opinion, to eliminate as fast as possible the old categories, including the market, money, and, therefore, material interest - or, better, to eliminate the conditions for their existence.'[11]
For Guevara the task was not to use the law of value nor even hold it in check, but to define its sphere of operation and make inroads to undermine it - to work towards its abolition, not limitation. He developed many policies within the BFS to attempt just that.[12] In February 1964, Guevara concluded: 'We deny the possibility of consciously using the law of value, basing our argument on the absence of a free market that automatically expresses the contradiction between producers and consumers... The law of value and planning are two terms linked by a contradiction and its resolution.'[13] For Guevara, centralised planning was the fundamental characteristic of socialist society. He conceded only: 'the possibility of using elements of this law [of value] for comparative purposes (cost, "profit" expressed in monetary terms)'.[14]
The protagonists in Cuba were well-informed about the broader debate on incentives and financial autonomy contemporaneously underway in the eastern European socialist countries - a response to the problems of economic stagnation, low productivity and efficiency, particularly in comparison with economic growth in the developed capitalist world. In July 1964 Guevara told colleagues that he had been reading analyses from the socialist bloc, including the resolutions of the 14th Congress of the Polish Communist Party: 'The solution that they are proposing for these problems in Poland is the complete freedom of the law of value; that is to say, a return to capitalism.'[15] Commenting on the push to 'liberalise' the socialist economies Guevara said: 'The theory is failing because they have forgotten Marx'.[16] Instead of Capital, the Soviet Manual of Political Economy had been turned into a bible.
Marx characterised the psychological or philosophical manifestation of capitalist social-relations as alienation and antagonism; the result of the commodification of labour and the operation of the law of value. For Guevara, the challenge was to replace the individuals' alienation from the productive process, and the antagonism generated by class relations, with integration and solidarity, developing a collective attitude to production and the concept of work as a social duty. Capitalist competition created the drive to increase productivity through technological innovations and increasing exploitation. Alienation and antagonism increase with productivity. Under socialism, the development of the productive forces could be less accelerated, but it should be accompanied by a growth of consciousness. For Guevara, efforts to change consciousness must be incorporated into socialist transition at the earliest stage.
Critique on the Soviet Manual of Political Economy
In April 1965, Guevara left Cuba to lead a Cuban military mission in the Congo. The guerrillas were defeated and Guevara stayed in Tanzania and the Czech Republic between 1965 and 1966 where he began work on a comprehensive analysis of the political economy of socialist transition. In preparation for this work, Guevara took notes on the Soviet Manual, applying his theoretical arguments expounded in the Great Debate to that text. The notes were not written for publication, nor brought together as text. They were comments responding to specific paragraphs of the Manual; notes to himself, including indications of areas for further study.[17]
Guevara criticised the Manual's mechanistic adaptation of classical Marxist conceptions of class relations between the bourgeoisie and the working class, without considering the effects of imperialism which created a privileged working class in the advanced capitalist countries as well as beneficiary sectors in the exploited nations. He denounced as opportunism the Manual's attempts to air-brush the inherent violence of class struggle integral to the transition from capitalism to socialism.
Turning to the period of transition, Guevara argued that the USSR's Kolkhoz collective farm system was not a characteristic of socialism and that cooperatives were not a socialist form of ownership - they generated a capitalistic superstructure which clashed with state ownership and socialist social relations imposing their own logic over society. Guevara systematically refuted the so-called laws of socialism cited by the Manual, particularly the law of constant rising worker productivity - which he called an outrage: 'It is the tendency that has driven capitalism for centuries.'[18] He condemned as 'dangerous' the Soviet's policy of peaceful co-existence and economic emulation with the advanced capitalist countries and pointed to serious disagreements between the socialist countries, blaming them on unequal exchange and the imposition of capitalist categories in trade relations.[19]
While declaring his daring, respect, admiration and revolutionary motives, Guevara announced that Lenin was the ultimate culprit because the New Economic Policy (NEP) which he had been forced to introduce in 1921 imposed a capitalist superstructure on the USSR. The NEP was not installed against small commodity production, Guevara stated, but at the demand of it. Small commodity production holds the seeds of capitalist development. He was certain that Lenin would have reversed the NEP had he lived longer. However, Lenin's followers: 'did not see the danger and it remained as the great Trojan horse of socialism, direct material interest as an economic lever.'[20] This capitalist superstructure became entrenched, influencing the relations of production and creating a hybrid system of socialism with capitalist elements that inevitably provoked conflicts and contradictions which were increasingly resolved in favour of the superstructure - capitalism was returning to the Soviet bloc.[21]
Guevara's notes offer a profound criticism of Soviet political economy. He himself warned that some would misinterpret his proposed work as rabid anti-communism disguised as theoretical argument, but asserted that the inability of bourgeois economics to criticise itself, pointed out by Marx at the beginning of Capital, was seen in contemporary Marxism. He dedicated his work to Cuban students who go through the painful process of learning 'eternal truths' in eastern European manuals. He concluded that: Humanity faces many shocks before final liberation, but we cannot arrive there without a radical change in the strategy of the first most important socialist powers.[22]
Conclusion
This paper has summarised the analysis which led Guevara to forewarn the collapse of socialism in the socialist bloc. He made an important contribution to both the theory and practice of constructing socialism. He hoped to persuade socialist countries to gradually replace capitalist mechanisms during transition and offered alternative policies to serve this function. His warnings were not heeded and, for the reasons which Guevara predicted, among others, capitalism returned to all those countries. In Cuba, his analysis was revisited in the mid-1980s in the period known as Rectification which pulled the island away from the Soviet model before it collapsed, arguably contributing to the survival of Cuban socialism.
Notes
[1] Ernesto 'Che' Guevara, 'Reunion Bimestrales', 20 January 1962, in El Che en la Revolución Cubana: Ministerio de Industrias, tomo VI. La Habana: Ministerio de Azúcar, 1966, 147.
[2] Guevara, Apuntes Críticos a la Economía Política. La Habana: Ciencias Sociales, 2006, 27 & cited by Orlando Borrego in El Camino del Fuego, la Habana: Imagen Contemporánea, 382.
[3] This paper assumes knowledge of the laws governing the operation of the capitalist system expounded by Marx in Capital.
[4] Miguel Figueras, interview, 27 January 2006, Enrique Oltuski, interview, 15 February 2006 & Alfredo Menéndez, interview, 17 February 2005.
[5] Guevara, Bimestrales, 21 December 1963, 420.
[6] Guevara, Bimestrales, 14 July 1962, 289.
[7] Guevara, Bimestrales, 28 September 1962, 318-9.
[8] Guevara, 'On the Concept of Value' in Bertram Silverman (ed) Man and Socialism in Cuba: The Great Debate, New York: Atheneum, 234.
[9] Guevara, 'Socialism and Man in Cuba' in Silverman (ed) Socialism, 342.
[10] Guevara, 'On the Budgetary Finance System', in Socialism, 143.
[11] Guevara, Budgetary, 42. Guevara's italics.
[12] My book, Che Guevara: The Economics of Revolution, details these policies.
[13] Guevara, Budgetary, 143.
[14] Guevara, 'The Meaning of Socialist Planning' in Socialism, 109.
[15] Guevara, Bimestrales, 11 July 1964, 505.
[16] Guevara, Bimestrales, December 1964, 566-9.
[17] First published in Havana, February 2006 as Apuntes, cited above.
[18] Guevara, Apuntes, 52.
[19] Guevara, Apuntes, 91-2, 185-6, 192-3.
[20] Guevara, Apuntes, 112.
[21] Guevara, Apuntes, 27.
[22] Guevara, Apuntes, 25-28 & Borrego, Camino, 381-383.
Che Guevara’s final verdict on the Soviet economy
One of the most important developments in Cuban Marxism in recent years has been increased attention to the writings of Ernesto Che Guevara on the economics and politics of the transition to socialism.
A milestone in this process was the publication in 2006 by Ocean Press and Cuba’s Centro de Estudios Che Guevara of Apuntes criticos a la economía política [Critical Notes on Political Economy], a collection of Che’s writings from the years 1962 to 1965, many of them previously unpublished. The book includes a lengthy excerpt from a letter to Fidel Castro, entitled “Some Thoughts on the Transition to Socialism.” In it, in extremely condensed comments, Che presented his views on economic development in the Soviet Union.[1]
In 1965, the Soviet economy stood at the end of a period of rapid growth that had brought improvements to the still very low living standards of working people. Soviet prestige had been enhanced by engineering successes in defense production and space exploration. Most Western observers then considered that it showed more dynamism than its U.S. counterpart.
At that time, almost the entire Soviet productive economy was owned by the state. It was managed by a privileged bureaucracy that consolidated its control in the 1920s under the leadership of Joseph Stalin. Managers were rewarded on the basis of fulfilling production norms laid down from above; workers were commonly paid by the piece.
Political economy of the transition
Che’s analysis was more pessimistic than most Western commentators, pointing to problems rooted in the Soviet economy’s fundamental nature. Far from being socialist in character, he said, this economy actually yoked together incompatible elements, both capitalist and non-capitalist. He also pointed out that the “political economy” — that is, the political and economic laws of motion — of societies in transition to socialism “has not yet been formulated, let alone studied.”[2]
His diagnosis, unique in its time, identified key weaknesses that contributed to the Soviet economy’s stagnation, decline, and finally, only 25 years later, its total collapse.
In “Thoughts on the Transition,” Che traces the troubles of the Soviet economy back to the introduction in 1921, under Lenin’s leadership, of the New Economic Policy (NEP), which “opened the door to the old capitalist production relationships.” Che notes that “Lenin called these relationships state capitalism.”[3]
In the final period of his life, Lenin questioned the “presumed usefulness” of NEP categories such as “profits” in relations among state enterprises, Che says. Further, Lenin was disturbed by ominous divisions inside the Communist Party, to which he drew attention in his final writings. “If [Lenin] had lived, he would have quickly altered the relationships established under the NEP.” But in fact, “the economic and legal framework of Soviet society today is based on the NEP, and incorporates the old capitalist relationships.”
Incompatible elements
Che says that the capitalist features of Soviet society may be termed “pre-monopolist” because they lack the dynamism of competition and cooperation that produced capitalist trusts like General Motors and Ford. “The current system restricts development through capitalist competition but does not abolish its categories or establish new categories on a higher level,” he says. Individual material interest has supposedly become the lever for development, but is robbed of its effectiveness by the fact that Soviet society “does not exhibit exploitation,” Che says.[4] Given the presence of these capitalist features in Soviet societies, he states, “humanity does not develop its spectacular productive potential and does not emerge as the conscious architect of the new society.”
Capitalist competition and exploitation having been abolished, what can serve as the driving force of economic development?, Che asks. The USSR relies on material incentives, but these reproduce the social irresponsibility characteristic of capitalism.
Moreover, material incentives are extended to “non-productive economic sectors” and applied also to the “leaders,” thus “opening the door to corruption” — a phenomenon that was to become pervasive in the Soviet bureaucracy.
It follows logically that such a privileged officialdom will develop distinct political interests and goals antagonistic to those of working people in the Soviet Union and worldwide. Che’s well-documented criticisms of Soviet foreign policy — for example its failure to lend effective assistance to Vietnam, point to such a conclusion.[5] Forty years earlier, Leon Trotsky, leader of the Bolshevik opposition to the rise of Stalinism, held that the Russian revolution had been undermined by a self-interested and privileged bureaucratic caste. Che, however, did not say that bureaucratism in the Soviet Union had proceeded to that point.
Law of value
Economic management through material and profit-based incentives cannot bring the desired results, Che says, because in the Soviet context “the law of value does not have free play.” (The law of value is a principle of Marxist economics that holds, broadly speaking, that the prices of commodities are proportional to the amount of socially necessary labour time required to produce them.)
In the Soviet Union there is no competitive free market to reward the efficient producers and remove the inefficient, Che says. Instead, in the Soviet economy, in the last analysis, social needs take priority over market forces. The Soviet “must guarantee that the population receives a range of products at set prices,” and these prices thus “lose their link with capitalist value.”
Che offers no explanation of why Soviet authorities must subsidize the production of such consumer necessities. Among Cuban Communist leaders of the time, this fact required no explanation. They considered that, whatever the distortions of the Soviet state of the time, the working class remained in power, and had sufficient leverage to prevent the triumph of capitalist exploitation.
Soviet claims to be surging ahead of the United States economically, Che says, are based on references to higher Soviet production of steel and other basic industrial products. But this is misleading. “Steel is no longer a basic factor in measuring a country’s efficiency, because we now have chemistry, automation, non-ferrous metals — and besides, there’s the question of the steel’s quality. The U.S. produces less steel, but a great deal of it is of superior quality.”
Technological stagnation
Technical innovation in the U.S. reflected “a giddy advance” of capitalism based on “a range of totally new technologies far removed from the old productive techniques.” However, in the Soviet Union, “in most economic sectors, technology has remained relatively blocked.”
Che writes that “new societies achieve brilliant successes thanks to the revolutionary spirit of their first moments. But after that, progress is less swift, because “technology no longer operates as the driving force of society.”
There is, however, one area where Soviet technology has scored great successes, and that is precisely in the sector where social priorities hold unquestioned sway: defense production. “This is because it is not held to the standard of profitability.” Rather everything is structured to serve the new society by assuring its survival.
“But at this point the mechanism breaks down,” Che cautions. “The capitalists keep their defense apparatus closely united to their productive apparatus [as a whole].”
“All the great advances of the science of war pass over immediately to civilian technology, producing gigantic leaps forward in the quality of consumer goods. None of this takes place in the Soviet Union: the two compartments are walled off from each other.”
These weaknesses of the Soviet economy have been transplanted to the more economically developed societies of Eastern Europe, where they have sparked a reaction against “the plague of bureaucracy and of excessive centralization.” But the result is to give the enterprises “more and more independence in the struggle for a free market.” Meanwhile the state in these countries “begins to be transformed into a guardian of capitalist relationships.”
Factories are closed, and “Yugoslav — and now Polish — workers emigrate” to Western Europe. “They are slaves,” Che remarks acidly, “offered by the socialist countries [to serve] the technological development of the European Common Market.”
Two principles
As an alternative to this course, Che counterposes two principles for which he had argued in Cuba’s debate on economic management during the previous three years.[6]
First, “communism is a phenomenon of consciousness” that cannot be captured by “quantitative economic measures.” There is no identification between communist society and high income per capita, and such income calculations are in any case an abstraction.
The second principle concerns technological innovation, the basis for expanded production of material goods. The “technological seeds of socialism are found much more in developed capitalism than in the old system of so-called economic calculation” which then prevailed in the Soviet Union. This system was “taken over from a capitalism that has now been superseded but that is nonetheless taken as a model for socialist development.”
Guevara is probably thinking here of the emphasis in Lenin’s post-1917 writings on the need to adopt the most modern techniques and organizational principles of the Western capitalist world of that time. In his view, these principles then became inalterable principles of the Soviet economy.
Resistance to automation
The Soviet economy’s weakness is evident in its “backwardness … in adopting automation, compared to its truly startling progress in the capitalist countries.”
Che poses a hypothetical example: an oil refinery that needs to close down for a year for a complete technical overhaul. “What happens in the Soviet Union? Hundreds and perhaps thousands of such automation projects are piled up in the Academy of Science, but are not implemented because the factory directors cannot afford the luxury of not fulfilling their plan during a year.” What is more, “if the factory is automated, they will be ordered to get more production.”
Soviet factory managers were rewarded in terms of fulfillment of production norms set down in their ministry’s plan. In Che’s example, the manager of the automated factory gets penalized for the year of downtime and receives no compensating reward. “For them, achieving higher productivity is fundamentally of no concern.” Applying capitalist incentives to socialized enterprises thus obstructs technological advances while bringing none of the benefits of a true capitalist market.
The way forward is to “eliminate capitalist categories: commercial transactions among enterprises, bank interest, use of direct material incentives as a lever, etc., while adopting capitalism’s latest administrative and technological advances.”
Administration and technology
Che sees an example of such advanced administrative techniques in dominant capitalist corporations like General Motors, which, he points out, employs more workers than the entire Cuban nationalized economy. In such enterprises, administration is tightly linked to technology, and both are constantly in flux, adjusting to the development of capitalism as a whole. In socialism, by contrast, administration and technology “have been separated off as two different aspects of the problem, and one of them has remained totally static.”[7]
Referring ironically to the destructive effect of material stimulants, Che concludes that the challenge is “how to integrate people into their work in such a fashion that what we call ‘material disincentives’ will be unnecessary, that every worker will feel the urgent need to support the revolution and will thus experience work as a pleasure.”
Worker management
Che concedes that this is far from the case in Cuba. His critics, he says, are correct in pointing out that “workers do not participate in drawing up plans, in administration of state enterprises, and so on.” But the critics see the remedy for this in material incentives.
“This is the nub of the question. In our opinion it is an error to propose that the workers manage the enterprises … as representatives of the enterprise in an antagonistic relationship to the state.” Each worker should manage the enterprise “as one among many, as a representative of all the others [in society].”
Che’s concept of worker management based on revolutionary consciousness rather than material incentives is a decisive advance. It contrasts strikingly with all the models of economic management then current in the USSR and its allies, including both the top-down administrative centralization identified with the Stalin era and the profit-seeking self-managed enterprises of Yugoslavia.
Yet Che leaves his suggestion tantalizingly undeveloped. His text concludes on a note of puzzlement at the unresolved nature of the issues he is addressing — a tone reminiscent in some ways of Lenin’s final writings.[8]
Che endorses the widely held view that a centralized plan must utilize each element of production in a rational fashion, “and this cannot depend on [decisions of] a workers’ assembly or the outlook of a worker.” Still, he concedes, “when the central apparatus and intermediary levels have little knowledge, action by the workers is more useful, from a practical point of view.” One suspects that Che, in his practical experience, must often have found rank-and-file workers to have had more knowledge and better judgment than administrative cadres.
A note of uncertainty
Che’s text ends by emphasizing the unresolved nature of the problem. “Our experience has taught us two things that have become axiomatic: a well-place technical cadre can achieve much more than all the workers of a factory, and a leadership cadre assigned to a factory can transform it, for better or worse.” But why is it that a new factory manager can change everything? “We have not yet found any answer [to this question],” Che admits. The answer must be closely related, he concludes, to the still unformulated political economy of societies in transition to socialism.
The collection of Che’s writings in Apuntos critiquos makes available much of Che’s work devoted to laying foundations for such a political economy. It includes his trenchant critique of the official Soviet Manual of Political Economy and extensive minutes of Che’s meetings with collaborators in Cuba’s Ministry of Industry from 1962 to 1964. (Ocean Press has announced a forthcoming English-language edition.)
Yet when Che sent Fidel Castro these “Reflexiones,” he was not retiring to a period of study but advancing to the fields of revolutionary battle in Africa and Latin America. He evidently believed that the economic challenge he highlighted would be resolved above all through new revolutionary advances internationally.
‘21st Century Socialism’
More than 40 years ago after Che fell in battle in Bolivia, his spirit is triumphant in the rise of revolutionary struggles in Latin America. The publication of Apuntes críticos is evidence of new attention in Cuba to Che’s theoretical writings, as the country searches for ways to continue its socialist experiment. Meanwhile, Venezuelan revolutionists have initiated a discussion of “21st Century Socialism” that builds on Che’s thought, while going beyond it in significant ways.
Like Che, Venezuela’s revolutionary Bolivarians reject the model of the Stalinist Soviet Union and aim instead to build a socialism founded on the initiative of the ranks. Like Che, they recoil from the danger of a bureaucratic layer of privileged officials. But where Che writes of “communist consciousness,” the Venezuelans talk of “protagonism.” This shifts the emphasis from individual awareness to agency, that is, to initiative, responsibility, and decision at the base. And the great campaigns of the Venezuelan revolutionary process — the “missions” — have implemented vast centralized projects for health care, education, housing, etc., by devolving authority downwards to rank-and-file committees and councils.
To be sure, Venezuela is still a capitalist society, in which the challenges of conquering the foundations of capitalist power and instituting workers’ management in the factories remain unresolved.
When capitalism has been overthrown and the main elements of the economy socialized, the political economy of the transitional society must resolve more than the challenge of properly balancing national planning with rank-and-file initiative. Economic problems must be solved: among them, how investment funds will be allocated; how the efficiency of investment will be measured; how raw materials will be allocated and their supply assured; and how prices will be set, as a basis both for accounting in the nationalized economy and for exchange in consumer markets.
A full answer to these questions, which would provide us with the “political economy of transition” that Che called for, has not yet been elaborated, and can be developed only through struggle and experience. Che’s insights, however, help pose these questions in a framework in which a solution can be formulated.
[First published in Socialist Voice, June 8, 2008]
Footnotes
[1]. Ernesto Che Guevara, “Algunas reflexiones sobre la transición socialista,” inApuntes críticos a la economía política, Ocean Books: Melbourne, 2006, pp. 9-20.
[2]. Che and other Cuban communist leaders of the time considered the Soviet Union and Communist-led states in Eastern Europe, North Korea, North Vietnam, China, and Cuba to be states that had overthrown capitalism and established the foundations for a transition to socialism. Some Marxists term such societies “workers’ states.” The Cuban view was contested in the workers’ movement at the time, above all by the Maoist leadership in China, which argued that the Soviet Union and its allies had by the 1960s returned to capitalism.
[3]. For Lenin’s final comments on this topic, see Lenin, Collected Works, Moscow: Progress Publishers, 1965, vol. 33, pp. 419-421 (“Fourth Congress of the Communist International” and 472-473 (“On Cooperation”). These and other writings by Lenin are also available at http://www.marxists.org.
[4]. The common, dictionary meaning of “exploitation” is mistreatment of people for the benefit of others. By that definition, the social privilege Che describes in the USSR would qualify as “exploitation.” But he was using the word in its Marxist sense, which refers to an inherent characteristic of wage labour under capitalism. Marxism holds that a portion of the value produced by a worker, the “surplus value,” is appropriated as profit by the employer, the owner of the means of production. Many Marxist opponents of Stalinism, including both Leon Trotsky and Che Guevara, denied that exploitation in this sense of the word took place in the USSR. This is disputed by those who claim that the USSR had by Che’s time returned to capitalism.
[5]. In “Message to the Tricontinental,” published in 1967, Che wrote “Vietnam, a nation representing the aspirations and hopes for victory of the disinherited of the world, is tragically alone. This people must endure the pounding of U.S. technology — in the south almost without defenses, in the north with some possibilities of defense — but always alone. The solidarity of the progressive world with the Vietnamese peoples has something of the bitter irony of the plebians cheering on the gladiators in the Roman Circus. To wish the victim success is not enough; one must share his or her fate. One must join that victim in death or in victory.” Che Guevara Reader, Melbourne: Ocean Press, 2003, p. 352.
[6]. Seventeen contributions to this debate are collected in Bertram Silverman, Man and Socialism in Cuba: The Great Debate, New York: Atheneum, 1971. Che’s concluding article in this discussion, “Socialism and Man in Cuba,” is posted at http://www.marxists.org/archive/guevara/1965/03/man-socialism.htm. A similar collection is available in Spanish from Ocean Press under the title El Gran Debate. For an incisive discussion of Che’s economic thought, see Carlos Tablada, Che Guevara: Economics and Politics in the Transition to Socialism. New York: Pathfinder Press, 1989.
[7]. The decline of General Motors since the 1960s suggests that its internal regime may have been less optimal than Che suggests and may have suffered from some ills analogous to those of the Stalinist Soviet economy.
[8]. See volumes 33, 36, 42, and 45 of the edition of Lenin’s Collected Works published by Progress Publishers in Moscow in the 1960s or go to http://www.marxists.org. These writings are collected in Lenin’s Final Fight, New York: Pathfinder Press, 1995
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