Document 1 of my submission to Socialist Unity to debate on the Workers' States

Debate on Degenerated Workers’ State versus State Capitalism


There have been good points made why the Soviet Union; China; and Vietnam were/are workers’ states. Trotsky when he wrote History of the Russian Revolution attacked those who believed Russian Capitalism could develop abstractly rather than concretely analyse how Imperialism was semi-Colonising Russia. He developed his theory and strategy of Permanent Revolution from that analysis. In 1905 and History of the Russian Revolution Trotsky demonstrated how Imperialism stabilised their rule by working with semi-Feudal elements. Liberal Bourgeois elements betrayed the struggle for a republic against a Monarchy in 1905 because they feared the working class threatening their rule over different industries. The strategy of Permanent Revolution worked out by Trotsky was the working class would lead the middle class (Urban and rural Peasant)to lead a revolution which combined Bourgeois-Democratic tasks land to the Peasants by removing large-scale Landlords ownership; ending Imperialist ownership of major industries; combined with Socialist tasks of expropriating Capitalists.


Those who believe in State Capitalism are making the same methodological error that Trotsky referred in History of the Russian Revolution in not seeing that if Capitalism is fully restored productive forces built by a workers’ state would be set back by for decades. This would lead to tens of millions being made unemployed and their social gains being severely reduced or if not eliminated.


There is a completely un-dialectical attitude by one contributor to this site who does not distinguish between different stages that the Soviet/Russian Bureaucratised workers’ state has and is gone/going through. The Soviet/Russian Bureaucracy arose; reached its height; and has been in decay for 30 years. A majority of those on this site who agree with me that the Soviet Union was a workers’ state do not agree with me that Russia still remains a workers’ state because Capitalist restoration was halted mainly by those Bureaucrats whose privileges were threatened with that process.


Capitalist restoration has been threatened before but does similar defeats pro-Capitalist forces were defeated. In 1922 there were dangers that the Law of Value could overthrow the workers’ state with proposals that state money to different factories and industries is allocated on performance and the Monopoly of Foreign Trade be eliminated. Stalinism had not consolidated their power and pro-Capitalist forces could have won out. Lenin’s great achievement was salvaging the Monopoly of Foreign Trade. I am not suggesting Stalinism winning out was progressive, but with centrifugal forces a greater danger was present Capitalist restoration.


Tony Cliff was proven wrong on two occasions when he argued that the reason Capitalist private property was not restored within the Soviet Union because they could not destroy nationalised industries for a whole period. Mandel showed in “Marxist Economic Theory” that as German Imperialism conquered ex-Soviet areas Capitalist private property was restored. Since 1990 in Russia Capitalists have pushed to destroy nationalised property relations as quickly as possible.
Bureaucratic layers threatened by this process since Putin came to power in 2000 have halted that process by re-nationalising companies and pouring more resources into different nationalised industries and various social/public service.


Bourgeois analysts argue Russia invests in social spending whereas China is building its infrastructure. There have also been occupations of certain factories against closure demanding re-nationalisation. On Russia Today TV show there were figures two days ago showing that Russia’s economy has shrunk by 10%. If Russia is Capitalist it would be ruled by a law of Value leading to mass unemployment. This has not happened yet which is one indication that the Russian Bureaucracy rules Russia. The failure of Capitalist restoration in Russia and its salvaging as a workers’ state weakens Capitalism internationally and is an important factor in stopping American Imperialism attacking other workers’ states and semi-colonies. Finally the Russian Workers’ Staten can offer aid to forces fighting against Fascism in the Baltic countries and Eastern Europe.


Steve is breaking from a Trotskyist understanding of what we defend in the workers’ states. As American Trotskyist Jim Cannon argued we defend the nationalised property relations against Capitalist restoration but oppose Stalinism when it crushes the workers and oppressed nationalities. Trotskyists are for the revolutionary overthrow of Stalinism through a Political Revolution. Trotsky when he wrote “In Defence of Marxism” that Marxists defend workers’ states through our methods. The factory occupations in Russia and revolutionary upheavals in China preventing a steel plant being privatised. An upturn in world revolution is becoming more anti-Stalinist and anti-Capitalist. Despite the resurgence of Russia as a workers’ state the Bureaucracy is still in a medium-term process of decay. This is why Trotsky is on the rise.

Comment by Anthony Brain