State monopoly capitalism
Encyclopedia
The theory of state monopoly capitalism was initially a Marxist
doctrine popularised after World War II
. Lenin had claimed in 1916 that World War I
had transformed laissez-faire
capitalism into monopoly capitalism, but he did not publish any extensive theory about the topic. The term refers to an environment where the state intervenes in the economy to protect large monopolistic or oligopolistic
businesses from competition by smaller firms.
State monopoly capitalist (stamocap) theory aims to define the final historical stage of capitalism following monopoly capitalism, consistent with Lenin's definition of the characteristics of imperialism
in his short pamphlet of the same name.
Occasionally the stamocap concept also appears in neo-Trotskyist theories of state capitalism
as well as in libertarian
anti-state theories.
The analysis made is usually identical in its main features, but very different political conclusions are drawn from it.
or cartel
position in most markets of importance, fuses with the government apparatus. A kind of financial oligarchy
or conglomerate therefore results, whereby government officials aim to provide the social and legal framework within which giant corporations can operate most effectively.
This is a close partnership between big business and government, and it is argued that the aim is to integrate labor-unions completely in that partnership.
(e.g., Eugen Varga), East Germany's Socialist Unity Party
, the French Communist Party
(e.g., Paul Boccara), the Communist Party of Great Britain
(e.g., Ben Fine and Laurence Harris), and the American Communist Party of the USA (e.g., Victor Perlo). One of the most prominent examples of Stamocap is modern day Singapore compared to Hong Kong (individual capitalism).
s, or on political opportunism
, said to be incompatible either with a
permanent revolution
or with the principle of independent working class
political action.
The state
in Soviet-type societies was redefined by the neo-Trotskyists as being also state-monopoly capitalist. There was no difference between the West and the East in this regard. Consequently, some kind of anti-bureaucratic revolution was said to be required, but different Trotskyist groups quarreled about what form such a revolution would need to take, or could take.
Some Trotskyists believed the anti-bureaucratic revolution would happen spontaneously, inevitably and naturally, others believed it needed to be organised - the aim being to establish a society owned and operated by the working class. According to the neo-Trotskyists, the Communist Party could not play its leading role, because it did not represent the interests of the working class.
typically criticize Neoliberal forces for inconsistent or hypocritical application of Neoliberal theory regarding Stamocap; that in those inconsistencies exist the basis of continued selective state guaranteed privileges for the plutocratic neoliberal elite. Generally, they envision a more consistently pro-market revolt would necessarily be a more petty bourgeois affair.
, because it came to be believed that the state apparatus could be reformed to reflect the interests of the working majority. In other words, the fusion between the state and big business postulated earlier was not so tight, that it could not be undone by a mass movement from below, under the leadership of the Communist Party (or its central committee).
Critics of the stamocap theory (e.g., Ernest Mandel
and Leo Kofler
) claimed that:
Marxism
Marxism is an economic and sociopolitical worldview and method of socioeconomic inquiry that centers upon a materialist interpretation of history, a dialectical view of social change, and an analysis and critique of the development of capitalism. Marxism was pioneered in the early to mid 19th...
doctrine popularised after World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
. Lenin had claimed in 1916 that World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
had transformed laissez-faire
Laissez-faire
In economics, laissez-faire describes an environment in which transactions between private parties are free from state intervention, including restrictive regulations, taxes, tariffs and enforced monopolies....
capitalism into monopoly capitalism, but he did not publish any extensive theory about the topic. The term refers to an environment where the state intervenes in the economy to protect large monopolistic or oligopolistic
Oligopoly
An oligopoly is a market form in which a market or industry is dominated by a small number of sellers . The word is derived, by analogy with "monopoly", from the Greek ὀλίγοι "few" + πόλειν "to sell". Because there are few sellers, each oligopolist is likely to be aware of the actions of the others...
businesses from competition by smaller firms.
State monopoly capitalist (stamocap) theory aims to define the final historical stage of capitalism following monopoly capitalism, consistent with Lenin's definition of the characteristics of imperialism
Imperialism
Imperialism, as defined by Dictionary of Human Geography, is "the creation and/or maintenance of an unequal economic, cultural, and territorial relationships, usually between states and often in the form of an empire, based on domination and subordination." The imperialism of the last 500 years,...
in his short pamphlet of the same name.
Occasionally the stamocap concept also appears in neo-Trotskyist theories of state capitalism
State capitalism
The term State capitalism has various meanings, but is usually described as commercial economic activity undertaken by the state with management of the productive forces in a capitalist manner, even if the state is nominally socialist. State capitalism is usually characterized by the dominance or...
as well as in libertarian
Libertarianism
Libertarianism, in the strictest sense, is the political philosophy that holds individual liberty as the basic moral principle of society. In the broadest sense, it is any political philosophy which approximates this view...
anti-state theories.
The analysis made is usually identical in its main features, but very different political conclusions are drawn from it.
The main thesis
The main Marxist-Leninist thesis is that big business, having achieved a monopolyMonopoly
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...
or cartel
Cartel
A cartel is a formal agreement among competing firms. It is a formal organization of producers and manufacturers that agree to fix prices, marketing, and production. Cartels usually occur in an oligopolistic industry, where there is a small number of sellers and usually involve homogeneous products...
position in most markets of importance, fuses with the government apparatus. A kind of financial oligarchy
Oligarchy
Oligarchy is a form of power structure in which power effectively rests with an elite class distinguished by royalty, wealth, family ties, commercial, and/or military legitimacy...
or conglomerate therefore results, whereby government officials aim to provide the social and legal framework within which giant corporations can operate most effectively.
This is a close partnership between big business and government, and it is argued that the aim is to integrate labor-unions completely in that partnership.
Versions of the theory
Different versions of this idea were elaborated by economists of the Communist Party of the Soviet UnionCommunist Party of the Soviet Union
The Communist Party of the Soviet Union was the only legal, ruling political party in the Soviet Union and one of the largest communist organizations in the world...
(e.g., Eugen Varga), East Germany's Socialist Unity Party
Socialist Unity Party of Germany
The Socialist Unity Party of Germany was the governing party of the German Democratic Republic from its formation on 7 October 1949 until the elections of March 1990. The SED was a communist political party with a Marxist-Leninist ideology...
, the French Communist Party
French Communist Party
The French Communist Party is a political party in France which advocates the principles of communism.Although its electoral support has declined in recent decades, the PCF retains a large membership, behind only that of the Union for a Popular Movement , and considerable influence in French...
(e.g., Paul Boccara), the Communist Party of Great Britain
Communist Party of Great Britain
The Communist Party of Great Britain was the largest communist party in Great Britain, although it never became a mass party like those in France and Italy. It existed from 1920 to 1991.-Formation:...
(e.g., Ben Fine and Laurence Harris), and the American Communist Party of the USA (e.g., Victor Perlo). One of the most prominent examples of Stamocap is modern day Singapore compared to Hong Kong (individual capitalism).
Political implication
The strategic political implication of stamocap theory for Marxist-Leninists, towards the end of the JosephStalin era and afterwards, was that the labour movement should form a people's democratic alliance under the leadership of the Communist Party with the progressive middle classes and small business, against the state and big business (called "monopoly" for short). Sometimes this alliance was also called the "anti-monopoly alliance".Neo-Trotskyist theory
In neo-Trotskyist theory, however, such an alliance was rejected as being based either on a false strategy of popular frontPopular front
A popular front is a broad coalition of different political groupings, often made up of leftists and centrists. Being very broad, they can sometimes include centrist and liberal forces as well as socialist and communist groups...
s, or on political opportunism
Opportunism
-General definition:Opportunism is the conscious policy and practice of taking selfish advantage of circumstances, with little regard for principles. Opportunist actions are expedient actions guided primarily by self-interested motives. The term can be applied to individuals, groups,...
, said to be incompatible either with a
permanent revolution
Permanent Revolution
Permanent revolution is a term within Marxist theory, established in usage by Karl Marx and Friedrich Engels by at least 1850 but which has since become most closely associated with Leon Trotsky. The use of the term by different theorists is not identical...
or with the principle of independent working class
Working class
Working class is a term used in the social sciences and in ordinary conversation to describe those employed in lower tier jobs , often extending to those in unemployment or otherwise possessing below-average incomes...
political action.
The state
State (polity)
A state is an organized political community, living under a government. States may be sovereign and may enjoy a monopoly on the legal initiation of force and are not dependent on, or subject to any other power or state. Many states are federated states which participate in a federal union...
in Soviet-type societies was redefined by the neo-Trotskyists as being also state-monopoly capitalist. There was no difference between the West and the East in this regard. Consequently, some kind of anti-bureaucratic revolution was said to be required, but different Trotskyist groups quarreled about what form such a revolution would need to take, or could take.
Some Trotskyists believed the anti-bureaucratic revolution would happen spontaneously, inevitably and naturally, others believed it needed to be organised - the aim being to establish a society owned and operated by the working class. According to the neo-Trotskyists, the Communist Party could not play its leading role, because it did not represent the interests of the working class.
Market anarchism
Market anarchistsMarket anarchism
Free-market anarchism refers to an individualist anarchist philosophy in which monopoly of force held by government would be replaced by a competitive market of non-monopolistic organizations providing security, justice, and other defense services...
typically criticize Neoliberal forces for inconsistent or hypocritical application of Neoliberal theory regarding Stamocap; that in those inconsistencies exist the basis of continued selective state guaranteed privileges for the plutocratic neoliberal elite. Generally, they envision a more consistently pro-market revolt would necessarily be a more petty bourgeois affair.
Eurocommunism
The stamocap concept was to a large extent either modified or abandoned in the era of eurocommunismEurocommunism
Eurocommunism was a trend in the 1970s and 1980s within various Western European communist parties to develop a theory and practice of social transformation that was more relevant in a Western European democracy and less aligned to the influence or control of the Communist Party of the Soviet...
, because it came to be believed that the state apparatus could be reformed to reflect the interests of the working majority. In other words, the fusion between the state and big business postulated earlier was not so tight, that it could not be undone by a mass movement from below, under the leadership of the Communist Party (or its central committee).
Criticism
When Varga introduced the theory, orthodox Stalinist economists attacked it as incompatible with the doctrine that state planning was a feature only of socialism, and that "under capitalism anarchy of production reigns."Critics of the stamocap theory (e.g., Ernest Mandel
Ernest Mandel
Ernest Ezra Mandel, also known by various pseudonyms such as Ernest Germain, Pierre Gousset, Henri Vallin, Walter , was a revolutionary Marxist theorist.-Life:...
and Leo Kofler
Leo Kofler
Leo Kofler was a social philosopher from Cologne. He ranks with the Marburg politicologist Wolfgang Abendroth and the Frankfurt school theoreticians Max Horkheimer and Theodor W. Adorno among the few well-known Marxist intellectuals in post-war Germany...
) claimed that:
- stamocap theory wrongly implied that the state could somehow overrule inter-capitalist competitionCompetitionCompetition is a contest between individuals, groups, animals, etc. for territory, a niche, or a location of resources. It arises whenever two and only two strive for a goal which cannot be shared. Competition occurs naturally between living organisms which co-exist in the same environment. For...
, the laws of motion of capitalism and market forces generally, supposedly cancelling out the operation of the law of valueLaw of value-General:The law of value is a central concept in Karl Marx's critique of political economy, first expounded in his polemic The Poverty of Philosophy against Pierre-Joseph Proudhon, with reference to David Ricardo's economics...
.
- stamocap theory lacked any sophisticated account of the class basis of the stateState (polity)A state is an organized political community, living under a government. States may be sovereign and may enjoy a monopoly on the legal initiation of force and are not dependent on, or subject to any other power or state. Many states are federated states which participate in a federal union...
, and the real linkages between governments and elites. It postulated a monolithic structure of dominationDomination-Books:* The Domination, an alternate history / science-fiction / alternate reality fictional, by S. M. Stirling.-Music:* Dominant , a diatonic scale step and diatonic function in tonal music theory...
which in reality did not exist in that way.
- stamocap theory failed to explain the rise of neo-liberal ideology in the business class, which claims precisely that an important social goal should be a reduction of the state's influence in the economy.
- stamocap theory failed to show clearly what the difference was between a socialist state and a bourgeois state, except that in a socialist state, the Communist Party (or, rather, its central committee) played the leading political role. In that case, the class-content of the state itself was defined purely in terms of the policy of the ruling political party (or its central committee).
See also
- CapitalismCapitalismCapitalism is an economic system that became dominant in the Western world following the demise of feudalism. There is no consensus on the precise definition nor on how the term should be used as a historical category...
- Capitalist mode of productionCapitalist mode of productionIn Marx's critique of political economy, the capitalist mode of production is the production system of capitalist societies, which began in Europe in the 16th century, grew rapidly in Western Europe from the end of the 18th century, and later extended to most of the world...
- Crony capitalismCrony capitalismCrony capitalism is a term describing a capitalist economy in which success in business depends on close relationships between business people and government officials...
- Late capitalismLate capitalism"Late capitalism" is a term used by neo-Marxists to refer to capitalism from about 1945 onwards, with the implication that it is a historically limited stage rather than an eternal feature of all future human society. Postwar German sociologists needed a term to describe contemporary society...
External links
- The Age of Monopoly-Finance Capital by John Bellamy FosterJohn Bellamy FosterJohn Bellamy Foster is a professor of sociology at the University of Oregon and also editor of Monthly Review, an independent socialist magazine. His writings have focused on political economy, environmental sociology, and Marxist theory...
, Monthly ReviewMonthly ReviewMonthly Review is an independent Marxist journal published 11 times per year in New York City.-History:The publication was founded by Harvard University economics instructor Paul Sweezy, who became the first editor...
, February 2010