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The Failure of Reconstruction Is to Blame for the Weakness of American Democracy

Review of Civil War by Other Means: America’s Long and Unfinished Fight for Democracy by Jeremi Suri (PublicAffairs, 2022)

By Matthew E. Stanley
Jacobin

A new book argues that the American right emerged out of a backlash to multiracial democracy following the Civil War. This is only partly true: reactionaries did not just fear democracy, they feared the economic redistribution former slaves associated with it.

In August, a poll conducted by YouGov revealed that 40 percent of Americans believe it likely that a civil war will take place within the next decade. That same poll showed that an even larger number, 62 percent, think that levels of political violence will increase within the next few years. Undeniably, there seems to be a sense among Americans that our democratic system is not robust enough to deal with the conflicts it generates. Moments of episodic crises, such as the January 6 insurrection, would then seem to be symptomatic of the broader structural problems with American democracy. But what is their cause?

In Civil War by Other Means: America’s Long and Unfinished Fight for Democracy, historian Jeremi Suri argues that the failure of Reconstruction, the ambitious post–Civil War project to create a new social order in the US South, explains not only the existence of a conspiratorial right but the January 6 insurrection too. Suri maintains that the world’s first experiment in genuine multiracial democracy inspired a long, violent resistance, not only against the progressive state governments of the 1860s and 1870s but against the very idea of a multiracial body politic. The effects of that backlash have reverberated for a century and a half, Suri argues, culminating with the ransacking of the US Capitol.

Suri’s study is thoughtful and deftly written. Its premise — that the January 6 attack, like Donald Trump himself, was far less a sudden, singular rupture than the predictable culmination of long-standing political currents — is indisputable. But by limiting its understanding of democracy to struggles for the franchise, Civil War by Other Means obscures what was at stake for former slaves and working-class whites during the Reconstruction era. Both groups were not simply concerned with the right to vote but in securing economic freedom for themselves after the dispossession of the planter class.

Ignoring these facts leads Suri to wrongly identify culture and constitutional encumbrances, rather than concentrated wealth under capitalism, as the primary obstacles to political self-determination.

A Splendid Failure
Suri begins by excavating the roots of white Southern anti-government resistance after slavery. In one chapter, he explores the power of martyrdom, including how the memory of John Wilkes Booth bolstered defenses of local white power, as anti-black collective violence surged throughout the former Confederacy. In another, he recounts how roughly fifty thousand white Southerners, mostly Confederate officers and Southern gentry, went into self-exile after Appomattox in the hopes of recreating their slave empire in Latin America.

These exiles, whom Ulysses S. Grant considered “a part of the Rebellion itself,” developed identities of resistance to multiracial democracy on both sides of the Rio Grande: against liberal reformers in Mexico and Radical Republicans in the United States. Suri views all of them — Lincoln’s assassins, Klansmen, and Confederate expatriates — as ideological ancestors of the January 6 insurrectionists.

Meanwhile, ex-slaves worked to realize their own understandings of democracy in the postwar South. The governments they created along with their allies, white Southern Unionists and black and white Northern “carpetbaggers,” were some of the most progressive in US history. In addition to universal male suffrage, the most reform-minded of those governments championed public education and infrastructure, women’s property rights, child labor laws, and new systems of credit that allowed poor people to buy land.

The result was, according to Suri, a “Second American Revolution” that made good on the promises of the Declaration of Independence. In some cases, Southern Republicanism was even more radical than Suri acknowledges. In New Orleans, for instance, the Republic Club sent a message of solidarity to the Paris Commune and applied for membership in the First International.

The book’s primary focus, however, is not grassroots radicalism but high politics. And it is here, in examining the nuances and limitations of the Republican Party, that Suri’s analysis is strongest. Considering how the party legislated and implemented policy to protect (or not) multiracial democracy in the South, he views Northern Republicans as necessary but cautious allies who were pushed from below.

Suri’s narrative is insightful but familiar: Andrew Johnson’s intransigence expanded and emboldened the Radicals in Congress; the Civil Rights Act of 1867, the Fourteenth Amendment, and the Reconstruction Acts opened democratic possibility in the South. Believing the Fifteenth Amendment to be “the most important event” in the nation’s history, President Grant proved an ardent defender of civil rights laws, and his use of military occupation largely worked against rising white violence. However, time, expense, political fatigue, and economic panic fed growing indifference in the North. With no popular base to support them, the gains of Reconstruction teetered on collapse.

The Rutherford Hayes and James Garfield presidencies had their opportunities to protect multiracial democracy, Suri argues, but were plagued by tepid leadership, constitutional crisis, corruption, and assassination. By the summer of 1877, Northern Republicans had acquiesced to “local self-government” (white rule) in the South while deploying federal forces against striking industrial workers in the North, facilitating their turn from “a party of money rather than a party of morals,” as Frederick Douglass put it. Associating “big government” with black rights, white reactionaries fomented a violent overthrow of what W. E. B. Du Bois termed the “abolition democracy,” ushering in home rule and eight decades of Jim Crow. The death of Reconstruction was the dawn of a new tradition of racialized anti-government activism.

Suri’s version of Reconstruction celebrates the inclusive, democratic possibilities of US politics while offering a broader critique of the US election system. Its riveting narrative offers a powerful warning against Whiggish conceptions of the past. Suri convincingly argues, for instance, that the presidential election of 1872 was the fairest and freest election in the nation’s history until the 1960s. This is a story of revolutionary conditions and remarkable multiracial advances leading to backlash, violence, and the deterioration of political and social rights. Rather than a march of progress, this analysis of American democracy is that of an ongoing project — one that is long, arduous, uneven, and woefully incomplete.

A Flawed Democracy
Suri maintains that the problems of Reconstruction and of Republican efforts to protect multiracial democracy are the problems of our time, too. Since its inception in the early nineteenth century, mass democracy in the United States has always been contested, its expansion predicated on hard-fought struggles for rights. There was never a golden age of American democracy. Indeed, the scope of disenfranchisement is even wider than Suri lets on. Enormous blocs of should-be voters have been — and in many cases continue to be — restricted by gender, race, servitude, the absence of property, age, ethnicity, literacy, criminal record, ability, or national origin. In many ways, the American ballot box has merely registered political outcomes that were largely determined before voting even began.

We still carry the US election system that Suri characterizes as arbitrary and contentious, and it has contributed to the nation’s current status as a “flawed democracy,” according to the Democracy Index. As Suri notes, the Constitution’s minoritarian elements — including the document’s strong protection of property rights, emphasis on capital mobility, and relative difficulty to amend — were designed by slaveholders and an ownership class that was deeply suspicious of, if not actively hostile to, popular democracy. Even for white male property owners, the system was mediated through a convoluted network of electors and representatives. Other features of US politics that structurally assist the forces of white democracy, according to Suri, include rampant gerrymandering, various forms of voter suppression, the nondemocratic nature of the US Senate and the Supreme Court, and the disenfranchisement of US citizens in the non-state territories of Washington, Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Mariana Islands (whose residents are principally, and not coincidentally, non-white people).

It was not simply multiracial democracy per se that white reactionaries of the Reconstruction era found so offensive; it was the threat that mass democracy posed to material as well as racial status.
Suri reserves his greatest ire, however, for the Electoral College, which he identifies as an archaic, elitist, antidemocratic, and deeply unpopular relic of the eighteenth century. To be sure, Reconstruction-era Republicans benefited from that outmoded system, as Hayes won the Electoral College but not the popular vote in 1876. At the same time, white Southern fears of government unleashed during Reconstruction have helped sustain this undemocratic system ever since. Further, the Electoral College would for decades afford disproportionate power to the segregationist South, since black people counted as full persons for purposes of electoral representation after the Fifteenth Amendment but were disenfranchised by Jim Crow laws.

These weaknesses in our constitutional system and the absence of a direct popular vote continue to enable right-wing authoritarianism, Suri contends. Today’s Republicans are generally hostile to voting rights because they view them, understandably, as more likely to check than augment their power. Some party leaders, including senator Mike Lee of Utah, have gone so far as to openly celebrate the Constitution’s lack of democracy. In his book’s final chapter, Suri makes several recommendations about how to stave off this antidemocratic momentum and ostensibly “save our democracy.” He proposes a constitutional amendment guaranteeing all citizens the right to vote, the abolition of the Electoral College, the legal prohibition of partisan gerrymandering, and a new and more democratic presidential line of succession.

This focus on formal politics, intriguing though it is, nevertheless offers an incomplete portrait of the Reconstruction era. And Suri’s emphasis on technocratic fixes also skirts vital questions about securing, maintaining, and leveraging power. (How will these laws come to pass without a mass movement?) In other words, Civil War by Other Means falls short not in its diagnosis of problems but in its identification of causes and solutions. In Suri’s telling, Radical Reconstruction was hindered by anti-black violence, shifting public opinion, and the constraints of the political system. It was not hindered by class conditions. Similar to the mono-causal “whitelash” theory that gained traction after the 2016 election, Suri views racial resentment, rather than white supremacy bound to political economy, as the principal explanatory factor for Reconstruction’s failure — and for the precarious state of US democracy.

In truth, it was not simply multiracial democracy per se that white reactionaries of the Reconstruction era found so offensive; it was the threat that mass democracy posed to material as well as racial status. Anti-black collective violence was not identical to class violence, but the two were inseparable. Suri too often overlooks this fact. Indeed, the Ku Klux Klan was not just a violent hate group; it was also effectively, as Chad Pearson argues in the book Capital’s Terrorists, a business owners’ organization. The white counterrevolution was not merely a racial project; it was also, as Du Bois argued, a conflict among classes, with former slaveholders using race hatred to “achieve economic security and restore fatal losses of capital and investment.”

Insurrectionist Workers?
Suri’s misapplication of class begins in the book’s introduction, which profiles insurrectionist Kevin Seefried as emblematic of those who stormed the US Capitol. A white worker and Sons of Confederate Veterans member from Sussex County, Delaware, Seefried supports Suri’s long Civil War thesis. After all, Seefried is an avowed anti-government white nationalist who forced a Confederate flag into the congressional chambers. But while Suri explains that the grievances of insurrectionists like Seefried may have stemmed in part from being “left behind” by the nation’s move toward a “multiracial meritocracy,” he marshals no evidence that Seefried was representative of the pro-Trump mob.

In reality, Seefried was a typical rioter only in that he is a white male who holds far-right political views (the January 6 insurrectionists were roughly 86 percent men and 93 percent non-Hispanic white). Few (about 14 percent) were members of militias or other hate or extremist groups. Far more (around 20 percent) were former military, offering further evidence that “the bombs explode at home.” Nor did the insurrectionists simply hail from rural America. They also came from the nation’s largest metro areas: New York City, Los Angeles, Chicago, San Francisco, Dallas, and Houston. Rather than urbanity or rurality, the common-origin denominator among the rioters involved demographic trends. Most came from counties that are trending rapidly toward racial pluralism and majority-minority status, and where the share of the white population is declining at rates well above the national average. This, no doubt, speaks to the valence within their ranks of a “Great Replacement” theory, one promulgated by conservative media personalities.

Most critically, the January 6 insurrectionists were not downtrodden workers, unemployed and uneducated, as Suri’s portrait of Seefried suggests. The vast majority were, like Trump’s base, professional-class, with disproportionate numbers of deeply conservative provincial elites from midsize cities, small towns, and retirement enclaves. Some were the bourgeoise that Patrick Wyman terms the “American gentry” — business and property owners who sit atop local hierarchies, and who “see themselves as local leaders in business and politics, the unappreciated backbone of a once-great nation.” Fearful of wavering influence in their own (typically racially and socioeconomically segregated) communities, they equated Trump’s “Make America Great Again” with protection of both their financial assets and racial identities.

In fact, the University of Chicago’s Project on Security and Threats obtained employment data for 501 of the 716 people arrested or charged for their role in January 6. The vast majority were either business owners, self-employed, or white-collar professionals, including doctors, lawyers, bankers, architects, and accountants. Only 22 percent of the sample held what the compilers described as “blue collar” jobs, as either wage-earning or salaried workers. Only 7 percent were unemployed. Even relative to other right-wing extremist groups as compiled by the FBI, the January 6 insurrectionists were strikingly well-off. After all, partaking in a prearranged government takeover in one of the nation’s most expensive cities requires time off work, as well as travel, airfare, and hotel expense. Many of the rioters dined in gourmet restaurants the night of January 5. Others stayed at the posh Willard Hotel, where rooms will cost you over $300 per night. Some even flew to the “Stop the Steal” rally on private jets.

Among both white and black Radicals, phrases including ‘better classes,’ ‘most respectable,’ and ‘best men’ were code for the class difference between free men of color and recently freed slaves.
The depiction of Kevin Seefried as a typical insurrectionist reinforces Suri’s idea of the roots of racial repression as primarily cultural, based on “habit and tradition,” rather than material, in the service of profit and class hegemony. However, belief in the Big lie, and the willingness to act violently on its behalf, is dangerous not because it holds sway among relatively powerless citizens like Seefried. It is dangerous because it is mainstream among relatively affluent members of a particular social class, the vast majority of whom, yes, are white, and who wield white nationalism in the service of class politics, as well as class power in the service of white nationalism. This is not to downplay the obvious role that white identity played in both Trump’s election and January 6, only to highlight that it is not fringe bands of neo-Confederates but acute inequality, engendered by the basic machinations of capitalism, that poses the greatest threat to American democracy.

Democracy on the Land
For a book about the long struggle for democracy, Suri’s study contains surprisingly little about contests over the meaning of democracy. His emphasis is on electoral democracy, or the processes by which enfranchised people vote for political representatives in periodically held elections. Yet more than any period of US history, Reconstruction demonstrates how this definition of democracy is necessary but insufficient. Although Suri characterizes Reconstruction as “a struggle over conflicting conceptions of democracy,” his core question is “democracy for whom?” and not “democracy of what kind?” Put another way, Suri’s notion of democracy pivots entirely on race — white man’s democracy vs. multiracial democracy — while obscuring intraracial distinctions and calls for economic democracy.

Former slaves did indeed see voting rights and ballot inclusion as fundamental rights. However, Suri’s claim that blacks recognized “representation in politics” as “the basic foundation of democracy” requires further context, and the book’s fixation on voting rights gives the impression that land ownership was of secondary importance to former slaves. It was not.

Although Suri’s flattening of critical class differences prevents him from exploring such issues, countless ex-slaves prioritized rights in land as equal to or above voting. This was especially true of newly emancipated people in rural areas, most of them landless and illiterate, whose demands tended to be more material than their free counterparts in the urban South. One freedman prefigured Martin Luther King Jr’s pithy critique of civil rights devoid of economic justice: “What’s the use of being free if you don’t own enough land to be buried in?”

The story of “Forty acres and a mule” as a dream deferred, though largely absent from Suri’s account, is essential to any materialist interpretation of Reconstruction — or of US history for that matter. Eager to kickstart the South’s cash crop economy, Southern planters and Northern capitalists each had a vested interest in opposing both communitarianism (democratically owned property) and independent proprietorship (small-scale privately owned property) for former slaves. Some of the latter feared that land redistribution in the South would lead industrial workers in the North to challenge other forms of property. Countless Northern industrialists, philanthropists, and politicians supported black political rights out of either sincere egalitarian impulses or an opportunity to grow their political party in the South. But many also feared alliances between former slaves and poor and middling white agrarians in the North and West. Even free blacks, white reformers, and Freedmen’s Bureau agents, most of them well-meaning, sincerely believed that the dependency of wage labor was the surest way to self-sufficiency for former slaves.

While Reconstruction represented an exceptional — and in many ways revolutionary — reallocation of power toward working people, property confiscation constituted what historian Michael Fitzgerald calls a “wartime vogue,” far less a result of ideology than of military necessity. By 1866, the idea of land redistribution for ex-slaves was a nonstarter. Allies of the former slaves, including the Freedmen’s Aid Association, the American Missionary Association, and the Freedmen’s Bureau, called for education, thrift, and land purchase through savings as substitutes for land reform. As time wore on, Southern state governments and most congressional Republicans exhibited what historian Claude Oubre terms only a “meager effort” to provide economic security for blacks. The democratic visions of these institutions were limited somewhat by the economic concepts of the time and the political constraints of the moment. But they were also limited by their class positions.

Of course, there were also black intraracial class tensions, particularly in urban centers. While the postwar South held a broad range of black voters, leaders, and convention delegates, contested definitions of democracy, including which of its elements should be emphasized, tended to break along class lines. Among both white and black Radicals, phrases including “better classes,” “most respectable,” and “best men” were code for the class difference between free men of color and recently freed slaves — and also served as indicators of democratic prerogatives. In his study of Reconstruction-era Mobile, Alabama, historian Michael Fitzgerald argues that “class divisions within the black community were so urgent that factional conflict could not be contained.”

As early as the state black conventions of 1865, Eric Foner observes a striking divide between more prominent leaders who pushed “political equality and self-help formulas,” and rural freedmen who possessed above all a “thirst for land.” Demanding “land or blood,” ex-slaves in the countryside decisively favored assembly delegates who called for plantations to be broken up. Yet convention leaders rarely highlighted such views. “By and large,” Foner contends, “economic concerns figured only marginally in the proceedings, and the addresses and resolutions offered no economic program, apart from stressing the ‘mutual interest’ of capital and labor, and urging self-improvement as the route to personal advancement.” Describing this gulf between ex-slaves and free blacks (the self-described men of “intelligence and wealth”), historian Ted Tunnell argues that the type of civic rights prioritized by free blacks, notably equal access to public spaces such as theaters, saloons, and steamboats, were “remote from the needs and aspirations of the overwhelming majority of ex-slaves who lived hard lives on toil and ceaseless anxiety.”

In his 1935 Marxist masterwork, Black Reconstruction in America, Du Bois characterizes Radical Reconstruction as a “dictatorship of labor” and acknowledges that the failure of land reform had far more to do with white than black opposition. Yet he also maintains that black leadership during Reconstruction skewed petite bourgeois, its members steeped in an individualistic, capitalist ideology (which was by no means unique to the black middle class).

In other words, former slaves who desperately needed land were too often represented by conservative white Unionists and free blacks whose class statuses and interests disinclined them from supporting large-scale material redistribution, which raises the question: Were Reconstruction governments truly a “dictatorship of labor,” or were they liberal and multiracial bourgeois alliances sustained by the votes of black and a minority of poor whites?

The book’s key shortcoming lies in its failure to address the full spectrum of Reconstruction-era democracy and to foreground the materialist nature of its social and political conflict.
In either case, former slaves constituted a distinct and especially radical social class. They envisioned self-ownership as a right, viewing it not as apart from, but essential to and often ahead of, voting. Most understood that political democracy would be limited — and even be turned back altogether — without control over the land that their labor had made productive. And they perceived this issue as both a matter of justice and, in many cases, precedent. As Du Bois points out, “The German and English and French serf, the Italian and Russian serf, were, on emancipation, given definite rights in the land. Only the American negro slave was emancipated without such rights and in the end this spelled for him the continuation of slavery.” Writing on Louisiana’s 1867 Radical convention, Tunnell explained that although civil rights were a monumental achievement, they did not directly address “fundamental economic problems.” “More than anything else,” he insists, “ex-slaves needed land.”

Democracy, in other words, was a contested concept in the Reconstruction South, not only between black and white but within the Radical movement. While Radicals shared common commitments to civil rights and state building, they were not a class coalition. And when the interests of Northern capital, the Northern voting public, and former slaves no longer intersected, as was the case by 1874, the coalition broke down. Despite populist economic programs and the workerist orientation of some party leaders, the absence of a working-class movement rendered social democracy unachievable, and the lack of social democracy in the South — the failure of land reform specifically — made the counterrevolution of property almost inevitable.

Beyond Political Democracy
As a history of Reconstruction, Civil War by Other Means is a brisk, engaging, and often penetrating read. Suri imposes a degree of continuity sure to give some historians pause — drawing a rather straight line between the Union Leagues and Black Lives Matter, between the Klan and QAnon, Ben “Pitchfork” Tillman and Donald Trump, white hoods and red hats. Yet the book’s premise, that “the Civil War never fully ended” and that its pronounced divisions related to race and anti-statism have been festering in US politics since Reconstruction, is unquestionable. Although his frequent use of Trump-era media language — “disinformation,” “white privilege,” “treason,” and “insurrection” — seems like an appeal to the incrementalist MSNBC crowd, Suri makes bold constitutional proposals and shows an uncommon commitment to representative government, multiracial political democracy, and majority rule, which he views as the solutions to the stubborn problem of white nationalism. In that regard, Civil War by Other Means is superior to other post-2016 studies of race in America that paint whiteness more as a timeless feature to be condemned morally and “worked through” by self-help-oriented individuals than a manifestation of social conditions to be overcome through mass politics.

But the book’s key shortcoming lies in its failure to address the full spectrum of Reconstruction-era democracy and to foreground the materialist nature of its social and political conflict. Suri hopes Americans will safeguard their democracy by digging up the roots to “remove the rot,” but his vision, which would no doubt remake US politics for the better, never transcends technocratic proceduralism. Skipping over the vital question of movement building, Suri is most concerned with what to do with power once achieved rather than how to achieve it. Accordingly, he views white nationalism as a cultural and political problem to be curbed through constitutional change rather than a question rooted in material relations to be solved through social transformation. In other words, Suri’s “democracy” is neither social democracy nor economic democracy. It is certainly not democratic socialism, with its emphasis on democratic participation beyond the political arena and a more equal distribution of resources through worker control.

Ultimately, Suri fails to answer a basic question: Is it even possible to possess and express equal political rights — to, in effect, “do” political democracy — in a profoundly materially unequal society devoid of economic rights? That question, too, is a legacy of Reconstruction, and part of our long and unfinished fight.

Matthew E. Stanley teaches in the department of history and political science at Albany State University.

carld717@gmail.com
2023-05-02

Theory

‘Everything That Is Human Is Ours’

Posted by carl4davidson

The political and cultural vanguardism of Antonio Gramsci and José Carlos Mariátegui

By Christian Noakes

Class, Culture, Ideology, Marxism

Within the heterogenous tradition of Marxism there are two diametrically opposed conceptions of popular culture: the elitist and vanguardist. The former is far from unique to Marxism, and it could be argued that such positions are antithetical to the popular sentiments of Karl Marx’s revolutionary thought. Such an orientation represents a dominant intellectual trend more generally, wherein the popular culture of the masses is considered devoid of positive value and categorically distinct from so-called high culture.¹ Within Marxism, this elitism tends to assume that the ruling class has an absolute monopoly on popular cultural production. This position is perhaps best represented by Theodor Adorno, who categorically dismisses popular culture as insidious and debased. In his analysis of popular music, he goes as far as to distinguish between popular and “serious” music.² Such positions overlook popular agency and the need to combat capitalist ideology on a social, rather than individual, level.

In contrast, vanguardists consider popular culture as a fundamental vehicle for mass education and the propagation of a particular worldview, in concert with a corresponding and underlying socioeconomic order. Proponents do not dismiss popular culture outright or conceive of it as inherently “bad” or “low,” but instead ask: popular culture for which class and toward what ends? Vanguardist praxis treats popular culture as “a terrain of contestation.”³

Another distinguishing characteristic of vanguardism is the belief in the intellectual capacity of the populace. Vanguardism is not simply a matter of being the most advanced. It also implies the ability to lead or give direction to the masses. On the intellectual field of culture, this entails a raising of consciousness. In response to the critique that ideas put forward in socialist publications were too complex for the working class to grasp, Antonio Gramsci observed the following:

The socialist weeklies adapt themselves to the average level of the regional strata they address. Yet the tone of the articles and the propaganda must always be just above this average level, so that there is a stimulus to intellectual progress, so that at least a number of workers can emerge from the generic blur of the mulling-over of pamphlets and consolidate their spirit in a higher critical perception of history and the world in which they live and struggle.⁴

Gramsci, therefore, rejects the extremes of both infantilizing anti-intellectualism (i.e., tailism) or isolated elitism. This is illustrative of how vanguardists can meet the people “where they are,” so to speak, and then work to move them to higher levels of class consciousness.

Gramsci and the lesser-known Peruvian Communist José Carlos Mariátegui—who is himself often compared to Gramsci—were not merely theorists of vanguardism. They actively practiced it and indeed, led this aspect of the class struggle in Italy and Peru, respectively. Both treated cultural and political issues as being deeply intertwined and sought to promote politically and intellectually developed popular culture for the working class and oppressed peoples in order to counter the dominant popular bourgeois culture. Their revolutionary praxis materialized in publications such as Gramsci’s L’Ordine Nuovo and Mariategui’s Amauta.

Gramsci looked with admiration at the strides made by the Soviet Union in making the arts accessible to the working class and the proliferation of revolutionary cultural institutions such as the Proletkult. The revolutionary fervor in the Soviet Union and the increasing militancy of Italian workers inspired Gramsci to create an institution for the development and propagation of proletarian culture in Italy. Out of this desire came the newspaper, L’Ordine Nuovo: Weekly Review of Socialist Culture, which Gramsci founded in 1919 with a group of intellectuals and revolutionaries that would later become a core group in the Communist Party of Italy. In its pages, readers found works of political prose alongside theater and literary criticism. The paper also introduced many to Communist artists and intellectuals from abroad, such as Anatoly Lunacharsky, Maxim Gorky, Henri Barbusse, and Romain Rolland. Reflecting on the initial impetus for the publication, Gramsci said,

The sole sentiment which united us… was associated with our vague yearning for a vaguely proletarian culture.⁵

The June 21, 1919, edition marked a significant shift in the publication from this somewhat eclectic initial phase into an organ for a concrete political program. Ordine Nuovo became not only a publication, but a core group representing something of a tendency or faction within Italian socialist politics—with a particularly heavy influence on labor struggles in Turin. Central to this solidification of political purpose was the factory council movement, which Ordine Nuovo fueled with its program to turn internal commissions of Turin factories into Italian soviets or councils. By directly empowering the workers to manage production themselves, Gramsci asserted that the councils would prepare the working class of Italy to take power and provide them with the competence to build and maintain a socialist society. The Ordine Nuovo group put its energies toward fostering a culture, by means of the councils, in which the workers would see themselves as producers within a larger cooperative system of production, rather than as atomized wage-earners.⁶ This culture was organically fostered through direct dialog with the workers themselves. With an air of satisfaction, Gramsci remarked that “To us and to our followers, Ordine Nuovo became ‘the newspaper of the factory councils.’ Workers loved Ordine Nuovo… [b]ecause in its articles they found part of themselves.… Because these articles were not cold, intellectual architecture, but were the outcome of our discussions with the best workers. They articulated the real feelings, will, and passion of the working class.”⁷

At the request of the workers, Gramsci and other members of Ordine Nuovo spoke regularly at council meetings. In September 1920, the revolutionary potential of the councils reached a high point when workers occupied factories and took direct control over production. At this time, the publication ceased, and Gramsci and the other members joined the workers in the factories “to solve practical questions [of running a factory] on a basis of common agreement and collaboration.”⁸

While the editorial line of the newspaper became more defined and motivated by concrete political goals, it still focused on fostering an organic popular culture of the working class, which it treated as an integral part of building socialism. This included the creation of the School of Culture and Socialist Propaganda, which was attended by both factory workers and university students. Among the lecturers were Gramsci and the other members of Ordine Nuovo, as well as several university professors.⁹ Such efforts were vital in the intellectual and ideological preparation for the establishment of an Italian socialist state, at which time “[b]ourgeois careerism will be shattered and there will be a poetry, a novel, a theatre, a moral code, a language, a painting and a music peculiar to proletarian civilization.”¹⁰ While Italy would soon see the horrors of fascism—rather than the establishment of this proletarian civilization, and thus the full development of a national proletarian culture—the militant working class culture fostered by Gramsci and Ordine Nuovo could never be fully snuffed out by the Mussolini regime. The cultural politics of Gramsci would also have a lasting influence beyond Italy.

Such influences are apparent in the works of José Carlos Mariátegui, who had been in Italy at the time of the founding of its Communist Party and identified most closely with the Ordine Nuovo group. After returning to Peru, Mariátegui put his newfound Marxist convictions to use in a variety of endeavors, including the production of the journal, Amauta, which was heavily influenced by Gramsci.¹¹

Published from 1926 to 1930, this groundbreaking and visually stimulating journal was Mariátegui’s primary vehicle for uniting the cultural and political vanguards of the time.¹² In his introduction to the inaugural issue, Mariátegui states: “The goal of this journal is to articulate, illuminate, and comprehend Peru’s problems from theoretical and scientific viewpoints. But we will always consider Peru from an international perspective. We will study all the great movements of political, philosophical, artistic, literary, and scientific renewal. Everything that is human is ours.”¹³ Along these simultaneous lines of inquiry into Peruvian society and internationalism, Amauta brought together leading artists, intellectuals, and revolutionaries of Peru, Latin America, and Europe. In addition to featuring much of Mariátegui’s most enduring works, it featured other key Peruvian figures, such as the feminist activist and poet Magda Portal and leading indigenist artists José Sabogal and Camilo Blas. Reaching beyond Peru’s borders, the journal also featured contributions by Diego Rivera, Pablo Neruda, Henri Barbusse, Romain Rolland, and Georg Grosz. Likewise, its readership was also international. In addition to being available throughout much of Latin America, it was also distributed in New York, Madrid, Paris, and Melbourne, Australia.¹⁴

Mariátegui was at the center of the vanguardista movement in Peru. This youthful and creative movement concerned itself with the creation of a “new Peru,” which would break from the prevailing oligarchic traditions inherited from Spain.¹⁵ While diverse in focus and orientation, vanguardistas sought to create new social, political, and cultural forms. According to Mariátegui,

A current of renewal, ever more vigorous and well defined, has been felt for some time now in Peru. The supporters of this renewal are called vanguardists, socialists, revolutionaries, etc.… Some formal discrepancies, some psychological differences, exist between them. But beyond what differentiates them, all these spirits contribute to what groups and unites them: their will to create a new Peru in a new world.… The intellectual and spiritual movement is becoming organic. With the appearance of Amauta, it enters the stage of definition.¹⁶

For its part, Amauta promoted anti-imperialism, gender equality, and internationalism as core principles of its national vision.

A new Peru would have to resolve the “Indigenous question”—the most pressing issue for Mariátegui. To aid in this endeavor, the journal laid bare the semi-feudal/semi-colonial nature of Peru’s economy, which relied on the socioeconomic subjugation of the country’s Indigenous population, and acted as national forum and network for otherwise regionally isolated Indigenous peasant organizing.¹⁷ Every issue also promoted a plurinationalism that included Quechua and Amari people in the Peruvian identity and body politic. In stark contrast to the national bourgeoisie, which saw Spain as the source of Peruvianness, the journal promoted a national identity and culture centered around the country’s Indigenous population, as was reflected by the majority of its content. This included articles analyzing racialized relations of production, Indigenous-centered art, and even the very name of the journal, Amauta being Quechua for “wise one” and a title given to teachers in the Inca Empire. As Mariátegui states in his introduction of issue 17 (September 1928), “We took an Inca word to create it anew. So that Indian Peru, Indigenous America might feel that this magazine was theirs.”¹⁸ Previously excluded and infantilized, Indigenous people were central to the pages of Amauta, and to the national culture it fostered.

Amauta aimed to polarize Peru’s intellectuals and bring readers under the banner of Marxism-Leninism.¹⁹ Its content was particularly important in organizing and providing direction to the country’s rural and Indigenous populations.²⁰ It also helped to establish Indigenismo as Peru’s dominant school of art, thereby fostering a national culture in opposition to the colonial culture inherited from Spain.²¹ As the most popular Latin American journal of its time, it was central in the propagation of an Indigenous and peasant-centered Marxism that would come to characterize socialist movements throughout Latin America.

The works of Mariátegui and Gramsci were instrumental in the development and dissemination of popular subaltern culture. Through dialog and collaboration, Amauta and L’Ordine Nuovo would come to be leading outlets in the education of the masses along explicitly revolutionary lines. In contrast to both anti-intellectualism and elitism, the cultural projects of Mariátegui and Gramsci represent the vanguardist conviction that the masses are capable both of understanding complex or advanced ideas and of developing their own organic culture divorced from the ruling.

Notes:

↩ Peter McLaren, “Popular Culture and Pedagogy,” in Rage and Hope: Interviews with Peter McLaren on War, Imperialism, and Critical Pedagogy (New York: Peter Lang, 2006) 213.
↩ Theodor Adorno, “On Popular Music,” in Cultural Theory and Popular Culture: A Reader, ed. John Storey (Athens, GA: University of Georgia, 2006).
↩ McLaren, Rage and Hope, 214.
↩ Antonio Gramsci, Selections from Cultural Writings, ed. David Forgas and Geoffrey Nowell-Smith (Chicago: Haymarket, 2012), 33.
↩ Quoted in Giuseppe Fiori, Antonio Gramsci: Life of a Revolutionary (New York: Schocken 1973), 118.
↩ John M. Cammett, Antonio Gramsci and the Origins of Italian Communism (Redwood City, CA: Stanford University Press, 1967), 95.
↩ Quoted in Antonio A. Santucci, Antonio Gramsci (New York: Monthly Review Press, 2010), 68.
↩ Fiori, Antonio Gramsci: Life of a Revolutionary, 139.
↩ Cammett, Antonio Gramsci and the Origins of Italian Communism, 81.
↩ Gramsci. Selections from Cultural Writings, 50—51.
↩ Marc Becker, Mariátegui and Latin American Marxist Theory (Athens, OH: Ohio University Press, 1993).
↩ David O. Wise, “Mariátegui’s ‘Amauta’ (1926—1930), A Source of Peruvian Cultural History,” Revista Interamericana de Bibliografia 29, no. 3—4 (1979): 299.
↩ José Carlos Mariátegu, “Introducing Amauta,” in “The Heroic and Creative Meaning of Socialism”: Selected Essays of José Carlos Mariátegui, 75—76.
↩ Wise, “Mariátegui’s ‘Amauta’ (1926—1930),” 293.
↩ Kildo Adevair dos Santos, Dalila Andrade Oliveira, and Danilo Romeu Streck, “The Journal Amauta (1926—1930): Study of a Latin American Educational Tribune,” Brazilian Journal of History of Education 21, no. 1 (2021).
↩ Mariátegu, “Introducing Amauta,” 74—75.
↩ Mike Gonzalez, In the Red Corner: The Marxism of José Carlos Mariátegui (Chicago: Haymarket, 2019).
↩ José Carlos Mariátegui, “Anniversary and Balance Sheet,” in José Carlos Mariátegui: An Anthology, ed. Harry E. Vanden and Marc Becker (New York: Monthly Review Press, 2011), 128.
↩ Wise, “Mariátegui’s ‘Amauta’ (1926—1930)”; Jesús Chavarría, José Carlos Mariátegui and the Rise of Modern Peru, 1890—1930(Albuquerque: University of New Mexico Press, 1979).
↩ Harry E. Vanden, National Marxism in Latin America: José Carlos Mariátegui’s Thought and Politics (Boulder, CO: Lynne Rienner, 1986).
↩ Wise, “Mariátegui’s ‘Amauta’ (1926—1930),” 295.

About Christian Noakes

Christian Noakes is an associate editor at the journal Peace, Land, and Bread.

carld717@gmail.com
2023-05-01

Theory Uncategorised

Gramsci and Contemporary Left Strategy: The ‘Historical Bloc’ as a Strategic Concept

By Panagiotis Sotiris

Although ‘historical bloc’ is one of the most-well known concepts associated with the work of Antonio Gramsci, at the same time not enough attention has been paid to its strategic theoretical significance. In most cases, ‘historical block’ has been taken to refer to alliances. This is most obvious in various texts from the PCI tradition.[1] Of course the identification of the concept of ‘historical bloc’ simply with social alliances can also be attributed to a surface reading of some of Gramsci’s pre-Prison writings, such as the famous text on the Southern Question where one can find Gramsci’s elaborations on the question of how to dismantle the Southern agrarian bloc and its particular intellectual bloc in order to advance the alliance of between proletariat and southern masses.[2] However, a look at Gramsci’s references to the historical bloc in the Prison Notebooks provides evidence that the concept has a broader significance for Gramsci in prison than simply a reference to social alliances.

The first reference to the historical bloc can be found in Notebook 4, in a reference to the importance of superstructures, as the terrain where people become conscious of their condition, and to the necessary relation between base and superstructure. It is there that Gramsci refers to “Sorel’s concept of the “historical bloc”.[3] It is interesting that in Sorel’s work there is no reference to the concept of ‘historical bloc’. Valentino Gerratana has suggested that Gramsci, who did not have the possibility to reread Sorel’s Reflection on Violence when in prison, had in mind Sorel’s well known references to myths, and in particular Sorel’s insistence that these images should be taken as a whole (in Italian “prenderli in blocco”), as historical forces. [4]

In Notebook 7, the concept of the historical bloc returns in Gramsci’s criticism of Croce’s philosophy. For Gramsci the concept of the historical bloc is the equivalent of ‘spirit’ in Croce’s idealist conception and it also refers to a dialectical activity and a process of distinction that does not negate its real unity.[5] In the second version of this passage in Notebook 10 the concept of historical bloc (again attributed to Sorel) is linked to the unity of the process of reality, conceived as ‘active reaction by humanity on the structure’.[6] In another passage from Notebook 7 Gramsci links the historical bloc to the force of ideology and also of the relation ideologies and material forces and insists that in reality it is a relation of organic dialectical unity, distinctions being made only for ‘didactic’ reasons.

Another proposition of Marx is that a popular conviction often has the same energy as a material force or something of the kind, which is extremely significant. The analysis of these propositions tends, I think, to reinforce the conception of historical bloc in which precisely material forces are the content and ideologies are the form, though this distinction between form and content has purely didactic value, since the material forces would be inconceivable historically without form and the ideologies would be individual fancies without the material forces.[7]

In Notebook 8 the concept of historic bloc returns and we have Gramsci’s insistence on the identity of history and politics, the identity between ‘nature and spirit’, in an attempt towards a dialectic of distinct moments (a unity of the opposites and the distincts).[8] In the second version of this passage, in Notebook 13, the reference is on the identity between ‘structures and superstructures’.[9] This conception of the historical bloc as referring to the (dialectical) unity of the social whole and in particular to the relation between material tendencies and ideological representations and the importance of such a relation between material conditions and ideologies as a condition for revolutionary praxis, also emerges in the following extract from Notebook 8. It is important to note the way this passage maintains a close dialectical relation between the social relations of production and the ‘complex, contradictory ensemble of the superstructures’ as the basis for a strategic revolutionary political orientation that is conceived in terms of ideology but also maintains the dialectical relation with social relations of production.

Structures and superstructures form an “historical bloc”. That is to say the complex, contradictory and discordant ensemble of the superstructures is the reflection of the ensemble of the social relations of production. From this, one can conclude: that only an all-encompassing (totalitario) system of ideologies gives a rational refection of the contradiction of the structure and represents the existence of the objective conditions for the revolutionising of praxis. If a social group is formed which is one hundred per cent homogeneous on the level of ideology, this means that the premises exist one hundred per cent for this revolutionising : that is that the “rational” is actively and actually real. This reasoning is based on the necessary reciprocity between structure and superstructure, a reciprocity which is nothing other than the real dialectical process.[10]

Later in a note that first appeared in Notebook 8 but also, slightly expanded in Notebook 10 Gramsci used the concept of historical bloc as part of his criticism of Croce’s conception of the ethico-political history. In particular, for Gramsci it is exactly the conception of historical bloc as the relation of social and economic relation with ideological–political forms that enables a theoretical relevance for the concept of ethico-political history. “Ethico-political history, in so far as it is divorced from the concept of historical bloc, in which there is a concrete correspondence of socio-economic content to ethico-political form in the reconstruction of the various historical periods, is nothing more than a polemical presentation of more or less interesting philosophical propositions, but its is not history”[11]. In a similar tone, in the summary first note of Notebook 10, Gramsci treats the concept of the historical bloc as a crucial aspect of his attempt towards a philosophy of praxis that could answer the questions that Croce’s conception of ethico-political history brought forward. Moreover, hegemony and historical bloc are theoretically linked in the most emphatic way in this passage.

carld717@gmail.com
2023-04-25

Cuba Uncategorised

Camila Piñeiro Harnecker: Cooperatives and Socialism in Cuba

September 26, 2011 — First posted at Cuba’s Socialist Renewal, posted at Links International Journal of Socialist Renewal with permission — Cooperatives and Socialism: A Cuban Perspective is a new Cuban book, published in Spanish earlier this year. This important and timely compilation is edited by Camila Piñeiro Harnecker (pictured above). Avid readers of Cuba’s Socialist Renewal will recall that I translated and posted a commentary by Camila, titled “Cuba Needs Changes” [also available at Links International Journal of Socialist Renewal], back in January. Camila lives in Cuba and has a degree in sustainable development from the University of Berkeley, California. She is a professor at the Centre for Studies on the Cuban Economy at Havana University, and her works have been published both in Cuba and outside the island.

Camila hopes her book may be published in English soon. In the meantime, she has kindly agreed to allow me to translate and publish this extract from her preface to Cooperatives and Socialism with permission from a prospective publisher. I hope that sharing this extract with readers will make you want to read the whole book. If it does become available in English I’ll post the details here. If you read Spanish you can download the 420-page book as a PDF here or here.

At the end of the text you’ll find the footnotes and table of contents, translated from the Spanish — Marce Cameron, editor Cuba’s Socialist Renewal

Preface to Cooperatives and Socialism: A Cuban perspective(extract)

By Camila Piñeiro Harnecker, translated by Marce Cameron

This book arises from the urgent need for us to make a modest contribution to the healthy “birth” of the new Cuban cooperativism and its subsequent spread. Given that cooperatives are foreshadowed as one of the organisational forms of labour in the non-state sector in the Draft Economic and Social Policy Guidelines of the Sixth Cuban Communist Party Congress, the Dr. Martin Luther King Memorial Centre approached me to compile this book. The Centre has made an outstanding contribution to popular education aimed at nurturing and strengthening the emancipatory ethical values, critical thinking, political skills and organisational abilities indispensable for the conscious and effective participation of social subjects. The Centre considers it timely and necessary to support efforts to raise awareness about a type of self-managed economic entity whose principles, basic characteristics and potentialities are unknown in Cuba. There is every indication that such self-managed entities could play a significant role in our new economic model.

For this to happen we must grapple with the question at the heart of this compilation: Is the production cooperative an appropriate form of the organisation of labour for a society committed to building socialism? There is no doubt that this question cannot be answered in a simplistic or absolute fashion. Our aim here is to take only a first step towards answering this question from a Cuban perspective in these times of change and rethinking, guided by the anxieties and hopes that many Cubans have about our future.

When it is proposed that the production cooperative be one – though not the only – form of enterprise in Cuba, three concerns above all are frequently encountered: some consider it too “utopian” and therefore inefficient; others, on the basis of the cooperatives that have existed in Cuba, suspect that they will not have sufficient autonomy[1] or that they will be “too much like state enterprises”; while others still, accustomed to the control over enterprise activities exercised by a state that intervenes directly and excessively in enterprise management, reject cooperativism as too autonomous and therefore a “seed of capitalism”. This book tries to take account of all these concerns, though there is no doubt that more space would be required to address them adequately.

The first concern is addressed to some extent with the data provided in the first part of the book regarding the existence and economic activity of cooperatives worldwide today. This shows that the cooperative is not an unachievable fantasy that disregards the objective and subjective requirements of viable economic activity. Thus, the experiences of cooperatives in the Basque Country, Uruguay, Brazil, Argentina and Venezuela that are summarised in the third part of the book demonstrate that cooperatives can be more efficient than capitalist enterprises, even on the basis of the hegemonic capitalist conception of efficiency that ignores externalities, i.e. the impact of any enterprise activity on third parties.

The efficiency of cooperatives is greater still if we take into consideration all of the positive outcomes inherent in their management model, which can be summarised as the full human development[2] of its members and, potentially, of local communities. The democratic abilities and attitudes that cooperative members develop through their participation in its management can be utilised in other social spaces and organisations. Moreover, genuine cooperatives free us from some of the worst of the negative externalities (dismissals, environmental contamination, loss of ethical values) generated by enterprises oriented towards profit maximisation rather than the satisfaction of the needs of their workers.
Jan

Cooperative Cuba

Cuba is poised to be the first country in the world to have cooperatives make up a major portion of its economy. It is a laboratory for a new society.

By Cliff DuRand

Cuba is engaged in a fundamental reshaping of its society. Calling it a renovation of socialism or a renewal of socialism, the country is re-forming the economic system away from the state socialist model adopted in the 1970s toward something quite new. This is not the first time Cuba has undertaken significant changes, but this promises to be deeper than previous efforts, moving away from that statist model. Fidel confessed in 2005 that “among the many errors that we committed, the most serious error was believing that someone knew how to build socialism.” That someone, of course, was the Soviet Union. So, Cuba is still trying to figure out for itself how to build socialism.

To understand the current renovation it is important to distinguish between ownership and possession of property. The productive resources of society are to remain under state ownership in the name of all the people. Reforms do not change the ownership system. Reforms are changing the management system, bringing managerial control closer to those who actually possess property. So while the state will continue to own, greater autonomy will be given to those who possess that property. In effect, Cuba is embracing the principle of subsidiarity, which holds that decisions should be made at the lowest level feasible and higher levels should give support to the local. This means more enterprise autonomy in state enterprises and it means cooperatives outside of the state.

It is expected that in the next couple years the non-state sector is expected to provide 35% of the employment. Along with foreign and joint ventures, the non-state sector as a whole will contribute an estimated 45% of the gross domestic product (PIB). Hopefully coops will become a dominant part of that non-state sector.

Cooperatives

Already 83% of agricultural land is in coops. Much of that has been in the UBPCs (Basic Units of Cooperative Production) formed in the 1990s out of the former state farms. But these were not true cooperatives since they still came under the control of state entities. Now they are being given the autonomy to become true coops.

Even more significantly, new urban coops are being established in services and industry. 222 experimental urban coops are to be opened in 2013. As of 1^st of July, 124 have been formed in agricultural markets, construction, and transportation. A big expansion in this number is expected in 2014.

In December 2012 the National Assembly passed an urban coop law that establishes the legal basis for these new coops. Here are some of its main provisions:

A coop must have at least 3 members, but can have as many as 60 or more. One vote per socio. As self-governing enterprises, coops are to set up their own internal democratic decision making structures.

–Coops are independent of the state. They are to respond to the market. This is to overcome the limits that hampered some agricultural coops in the past.
–Coops can do business with state and private enterprises. They will set their own prices in most cases, except where there are prices established by the state.
–Some coops will be conversions of state enterprises, e.g. restaurants. They can have 10 year renewable leases for use of the premises, paying no rent in the first year if improvements are made.
–Others will be start-up coops.
–There will be second degree coops which are associations of other coops.
–Capitalization will come from bank loans, a new Finance Ministry fund for coops and member contributions. Member contributions are treated as loans (not equity) and do not give additional votes. Loans are to be repaid from profits.
–Coops are to pay taxes on profits and social security for socios.
–Distribution of profits is to be decided by socios after setting aside a reserve fund.
–Coops may hire wage labor on a temporary basis (up to 90 days). After 90 days a temporary worker must be offered membership or let go. Total temporary worker time cannot exceed 10% of the total work days for the year. This gives coops flexibility to hire extra workers seasonally or in response to increased market demands, but prevents significant collective exploitation of wage labor.

This is a big step forward for Cuba. Since 1968 the state has sought to run everything from restaurants to barber shops and taxis. Some were done well, many were not. One problem was worker motivation. Decisions were made higher up and as state employees, workers enjoyed job security even with poor performance. However, their pay was low. Now as socios in cooperatives they will have incentives to make the business a success. The coop is on its own to either prosper or go under. Each member’s income and security depends on the collective. And each has the same voting right in the General Assembly where coop policy is to be made. Coops combine material and moral incentives, linking individual interest with a collective interest. Each socio prospers only if all prosper.

carld717@gmail.com
2023-04-20

Ukraine

The Conflict Between National and Transnational Power: The Russian Trap

By JERRY HARRIS

Race and Class

Abstract: The Russian invasion of the Ukraine is a powerful assertion of geopolitical power and conflict. But Russia’s nationalist and expansionary drive takes place within the context of transnational economic ties. Such ties help define the nature of the war, and both the Russian and western response. The contradictory pressures of nationalist desires conflicting with transnational integration is an underappreciated complexity of the war that this article will explore.

Keywords: energy resources, finance capital, nationalism, oligarchy, Russian invasion, sanctions, transnational capitalist class, Ukraine.

Introduction

The invasion of Ukraine is seen by most as a geopolitical conflict between the West and Russia. Nationalist ideologies and power competition do play a significant role, but such competition takes place within the context of transnational relations that also define the nature of the struggle. Unlike the invasion of Czechoslovakia, which took place during limited economic and cultural ties between the West and Soviet Union, the current war is deeply affected by mutual economic relationships between transnational capitalists and links between transnational corporations. Exploring how the contradictions between national and transnational elements structure the character of the war is the purpose of this article.

Global capitalism has gone through tremendous change over the past forty years, building a system of transnational integration characterised by global financial flows and production. This has profoundly changed a world built around nation-centric power. The emergence of the transnational capitalist class (TCC) reshaped domestic economies and social relations by restructuring state institutions and rules to serve the new forms of global accumulation. Major trade arrangements were ratified, banks bailed out, corporate taxes cut, transnational corporations promoted and social contracts undermined. And yet the old forms of power, habits, identities and privileges still fight to maintain their existence. This mixture of national structures overturned by transnational forces creates a powerful vortex of tensions.

In Russia, this process took place first under Yeltsin and then Putin, turning the country into a neoliberal state. As the new ruling class sought a capitalist identity outside the Soviet experience, it linked to its imperial past. As a result, Russian national concepts of power rooted in Tsarist imperialist expansion reasserted their influence, even as the oligarchy made use of transnational accumulation. Neither did Great Power concepts fully fade in the West, as NATO’s eastward expansion shows. As globalisation entered a sustained period of economic, environmental and social turmoil, transnational hegemony was opened to greater challenge, particularly from authoritarian state capitalism, which finds inspiration in fascism and empire. As the globalist project of a fully integrated economic world floundered under the weight of its own excess, nationalist ideology and power projections re-emerged.

Mike Davis hits home when he describes the Putin government as one that hates Lenin and the Bolshevik position on self-determination, a government drenched in Great Russian chauvinism and supported by the reactionary religious hierarchy of the Eastern Orthodox Church. A government that invites the backing of pan-Slavic neo-fascists, that idealises the Tsarist empire, with Putin himself an iconic hero of far-right nationalists throughout Europe and the US.[1]

And yet it is a government that has structured its economy to serve and benefit from transnational capitalism. That contradiction, between nationalist ideology and its transnational model of accumulation, is the Russian trap. And it works both ways, for Russia and for its global partners.

Global Capitalism and Russia

In Russia, the creation of a TCC took place primarily through the privatisation of state assets, in combination with private/state ownership arrangements in energy and finance. The state did not represent a national capitalist class, nor was its primary concern building a modern industrial base. Rather, the state played a central role in integrating the key sectors of the Russian economy into global capitalism. Russian oligarchs also rushed to integrate into elite cultural and financial networks. They sent billions into offshore havens, spent hundreds of millions on London and New York real estate, lived on their yachts, and sent their children to elite western schools.

But the full political integration of the Russian state was stymied by the western architecture of power. NATO’s expansion eastward clashed with Russia’s intent to re-establish its own sphere of influence. This was an uneven process, unfolding over a period of three decades. The G7 became the G8 as Russia was given a seat at the elite table. But tensions never fully resolved. Political, social and environmental problems continued to sharpen, giving rise to security concerns and a renewal of nationalist rhetoric to regain state legitimacy. In turn, rivalries became more aggressive, and the balance between globalism and nationalism began to shift.

To explore the above process, we begin with Russia’s internal transformation and the creation of its transnational capitalist class.

Scholar Oleg Komolov describes the Russian economy primarily as a supplier of resources, with the TCC deeply integrated into global capitalism. He points out how the ruling class that emerged from the privatisation of state assets occupies primarily the role of an intermediate seller of Russian commodities on world markets and is not interested in improving the efficiency of the economy, developing competitive manufacturing industries and technological progress. [Moreover] the export economy was developed with large-scale participation of foreign capital in all sectors of the economy, the artificial devaluation of the ruble and net capital outflow to countries of the center.[2]

Between 1997 and 2017, the outflow of capital exceeded inflows, with offshore havens the destination for 70 per cent of capital exports. The two most prominent outflow years were during the global crash of 2008 and the Russian seizure of Crimea in 2014, with a combined total of $285 billion.[3] Outside the flight to offshore havens, Russian energy TNCs had made foreign direct investments of $335.7 billion by 2017.[4]

The Russian state and private oligarchy worked together in the outflow of capital, which reduces the amount of held dollars and keeps the value of the rouble low. In turn, this helps the export of fossil fuels and minerals. According to the World Bank, the rouble is one of the world’s most undervalued currencies.[5] Oil and gas make up 65 per cent of Russian exports, but minerals and wheat also play an important role. The state has supported this process by increasing its overseas holdings in US Treasury bonds from $8 billion to $164 billion between 2007 and 2013.[6]

Keeping the value of the rouble low meant undercutting investments in the modernization of manufacturing. The results being high import prices for machinery and agricultural inputs, as well as high consumer prices for foreign goods. In 2017, machinery and equipment made up 47 percent of imports, and chemical products 18 percent.[7] Thus, a low-valued rouble drove up the cost of tractors, combines, transport and machine tools, fertilizers and chemicals – a typical pattern among transnational petro-states. Privileging globalist accumulation over the national market marked the Russian ruling class with a transnational character and strategy.

Another aspect of Russia’s integration was creating an attractive market for foreign speculative capital. During the 2005–08 financial frenzy, capital flowed into Russia, benefiting from liberalisation of currency regulations. During these years, transnational capitalists sank $325 billion into Russian corporations, with large amounts going to state-owned entities like Sberbank and the energy giant Gazprom. Among the biggest investors were financial giants JPMorgan, BlackRock and Pimco.[8] Loans were also made, reaching $400 billion from some of the biggest global banks including Citigroup, HSBC, BNP Paribas and Deutsche Bank. The benefits for finance capital were double: debt from loans and earnings from investments meant profits for transnational investors the world over. The outflow of profits over a twenty-year period reached $1.2 trillion, and taking on foreign liabilities certainly didn’t support the rouble.

Energy, transnational capital and sanctions

Key to the Russian economy, and indeed the world economy, are energy resources. Russia’s fossil fuel industry has been largely exempt from the sanctions in 2022, as it was in 2014. In both cases, transfer payments for energy continued to flow through the SWIFT computers, and in 2022 these were worth about $350 million per day. Between 24 February and 24 March 2022, Russia sold $19 billion in fossil fuels. The links between western oil majors and Russian TNCs deeply influences the limits and impacts of sanctions, and so deserves attention.

First, we can review the degree of joint ventures between Russian and transnational energy majors. Rosneft emerged as Russia’s largest oil producer when Putin dismantled Yukos, and sold its $90 billion in assets for just $2 billion. Western banks rushed to loan Rosneft $22 billion as it became Russia’s dominant energy company. Financial backing came from ABN Amro, Barclays, BNP Paribas, Citigroup, Goldman Sachs, JPMorgan and Morgan Stanley. Rosneft then raised $10.7 billion in an IPO on the London Stock Exchange with BP taking a 20 per cent stake. Other strategic investors included Petronas (Malaysia) and CNPC (China). Russian oligarchs joined in, with Roman Abramovich, Vladimir Lisin and Oleg Deripaska each investing $1 billion. As Hans-Joerg Rudloff, chairman of Barclays and Rosneft board member, noted, Russia was ‘on the track of international economic integration’.[9] In 2006 Rosneft turned east, joining with China’s Sinopec in a $13.7 billion buyout of TNK-BP’s Udmurtneft Oil. In a key deal after the 2014 imposition of sanctions, Rosneft signed a thirty-year contract with the state-owned China National Petroleum Corporation worth about $400 billion. Furthermore, Exxon had a $3.2 billion Arctic offshore drilling deal with Rosneft in which the Russian TNC obtained minority stakes in the Gulf of Mexico and oil fields in Texas. Rex Tillerson, chief executive of Exxon Mobile and future Secretary of State, received the Order of Friendship award from Putin in gratitude for Exxon’s commitment.[10]

Gazprom also has a significant level of transnational integration. In developing Shtokman, one of the world’s largest gas fields, Gazprom partnered with Total from France and StatoilHydro of Norway. Total has a close relationship with the Russians. The French oil major has investments in two other Russian oil fields, and a 16 per cent stake in Novatek, the country’s largest gas producer after Gazprom. The largest foreign investment project in Russia, the Sakhalin-2 oil field, involved the British and Japanese. Although Gazprom retains majority ownership, Shell held 27.5 per cent, Mitsui 15 per cent, and Mitsubishi 10 per cent.[11]

Overall, more than 400 foreign financial institutions have provided $130 billion to Russian energy companies, $52 billion in investments and $84 billion in credit. A total of 154 US financial companies hold almost half of these investments at $23.6 billion. JPMorgan is the largest with investments and loans of $10 billion. Other major investors include Qatar’s sovereign wealth fund with $15.3 billion invested in Rosneft. The UK was the third largest investor, where 32 financial institutions contributed $2.5 billion. Other important investors come from Italy, Netherlands, Norway, Switzerland, Japan and China.[12]

To understand how sanctions disrupted these transnational relations, we need to investigate sanctions from 2014 and 2022. In 2014, companies weren’t banned from conducting business with Russian state-owned energy giants, although banks were sanctioned from making loans. The policy allowed protection for transnational institutional investors. But the US did move to sanction Rosneft’s president, Igor Sechin. This prompted Jack Ma, founder of China’s Alibaba, and John J. Mack of Morgan Stanley, to resign from the Rosneft board; while Donald Humphreys, former chief financial officer of Exxon Mobil, and BP chief executive Bob Dudley continued to serve. As western sanctions tightened, they did cause some difficult problems, forcing Eni, Exxon and Statoil to withdraw from a $20 billion Rosneft Arctic exploration project. But to replace the loss of advance drilling technology, Rosneft took a 30 per cent stake in North Atlantic Drilling, a subsidiary of Seadrill, the world’s largest offshore driller controlled by Norway’s richest man, John Fredriksen. Rosneft also faced problems when sanctions cut access to foreign capital markets. To counteract the sanctions, it arranged a series of prepayment deals with some of the largest western oil traders including Glencore, Trafigura and BP. Furthermore, Rosneft bought Morgan Stanley’s global oil trading business, obtaining an international network of oil tank storage contracts, supply agreements and freight shipping contracts, as well as a 49 per cent stake in Heidmar, a manager of oil tankers. So, while the 2014 sanctions caused a number of real problems, Rosneft’s transnational relationships provided important avenues to avoid major disruptions.[13]

Overall, the 2014 sanctions did hurt Russia. FDI inflows fell from $69 billion in 2013 to $21 billion in 2014. But the Obama administration also faced stiff resistance not only across Europe, but in the US as well. Hostility to the sanctions came from the two most influential US business groups, the National Association of Manufacturers and the US Chamber of Commerce. Both lobbied and took out critical ads in national newspapers, insisting that sanctions should not hurt financial institutions that held significant Russian debt. Among the corporations who lobbied against the sanctions were Exxon Mobil, BP, American Petroleum Institute, Amway, Caterpillar, Chevron and GM.[14]

In implementing sanctions, the US believed Russia would view its global business ties as too valuable to lose, and so economic pressure would force a retreat from eastern Ukraine. But from the other side of the mirror, Putin believed global business’s ties to Russia were too valuable and would undercut western sanctions. In important ways both were right, and the same dynamic is at play in 2022. In the recent crisis the US Chamber of Commerce has again lobbied Congress arguing sanctions should be ‘as targeted as possible in order to limit potential harm to the competitiveness of U.S. companies’.[15]

The magnitude of the 2022 invasion has caused the current sanctions to be deeper and broader. What Russian Marxist Boris Kagarlitsky pointed out in 2014 is even more true today:

The situation confronting our elites … is more or less straightforward, they cannot enter actively into confrontation with the West without dealing crushing blows to their own interests, to their own capital holdings and to their own networks, methods of rule and way of life.[16]

But this is a two-way street – the West can’t sanction Russia without hurting itself, so the question becomes who hurts the most. For example, the world’s largest asset manager BlackRock took a loss of $17 billion on their Russian exposure.[17]

Because Russia is the main supplier of oil and gas to Europe, its energy industry is a major focus of new sanctions. ExxonMobil is beginning steps to exit the Sakhalin-1 project and cease operations it carries out on behalf of a consortium of Japanese, Indian and Russian companies. Shell also announced plans to leave Sakhalin and ‘withdraw all involvement in Russian hydrocarbons’.[18] BP has moved to offload its 20 per cent stake in Rosneft and may take a hit estimated at $25 billion. BP’s move comes after thirty years of joint venture. Additionally, the Singapore-based trading company Trafigura is threatening to opt out of its 10 per cent shareholding of Vostok Oil, a vast gas project led by Rosneft. And Norway’s Equinor will also begin to exit its joint ventures. But TotalEnergies, the large French transnational, while committing to no new investments, is holding on to its nearly 20 per cent of Novatek.

Yet none of these companies may end up leaving. Exxon, BP and Shell need to find someone to buy out their interests. That will not be easy in the present circumstances, and they may have to appeal to their Russian counterparts to take their shares. Furthermore, oil tankers continue to transport millions of barrels of oil from Russian ports, estimated to be worth $700 million per day. These include tankers from Greece, and those chartered by US oil giant Chevron.[19] And SWIFT payment transfers for energy continue at the above-mentioned $350 million per day. Consequently, for all the difficulties of the sanctions, global energy integration affords Russia significant amounts of capital, which helps to finance the war.

India’s case is yet another example of the complexity of transnational production. Obtaining about a 33 per cent discount from Russia, India’s oil imports have surged by 700 per cent.[20] Some of these imports go to Reliance Industries, which has the world’s largest refinery complex, and also to an affiliate of Rosneft, Nayara Energy. Using Russian crude, Indian refineries produce diesel and jet fuel, which is sold to Europe, whose imports from India have jumped. As Shell’s chief executive explained, oil substantially treated or changed loses it national origin. ‘We do not have systems in the world to trace back whether that particular molecule originated from a geological formation in Russia, [therefore] diesel going out of an Indian refinery that was fed with Russian crude is considered to be Indian diesel.’[21]

One particularly ironic aspect of transnational relations is that Russian gas flows through pipelines running through Ukraine to Italy, Austria and eastern Europe. Russia pays transport fees to the government, thus supplying funds to Ukraine even as the war raged. And, of course, gas reaching the EU means more money for Russia. It wasn’t until May 2022 that Ukraine stopped the Sokhranovka pipeline that operates from the Russian-controlled Luhansk region. The value of the gas is about $1 billion each month. But Sudzha, Russia’s main pipeline, is, at the time of writing, still in Ukrainian-held territory, allowed to operate, and expected to take on some of the lost capacity.

Another example of the complexity of transnational production is how the invasion impacted Rusal, the world’s second-largest aluminium producer, owned by Oleg Deripaska and listed on the Hong Kong market. Rusal has a joint venture with Australian mining giant Rio Tinto. But because of sanctions, their joint refinery, Queensland Alumina, will not ship products to Russia. The result is that Rusal had to halt production at its Nikolaev refinery located in Ukraine, which accounts for 23 per cent of its annual production. Nikolaev is one of the most modern refineries in the world and employs about 1,500 people. To make up the shortfall Rusal may divert production from its Aughinish refinery in Ireland to feed its Russian smelters.[22] In turn, that will reduce supplies in Europe where materials are already short. The end result is higher unemployment in Ukraine, higher prices in Europe, and a lower stock price for Rusal.

Data compiled by the Yale School of Management reported 253 TNCs are making a clean break with Russia, essentially leaving no operations behind. Some of these include Uber, Shell, Salesforce, Reebok, McKinsey, Nasdaq, eBay, Delta, Deloitte, BP, BlackRock, American Airlines and Alcoa. Another 248 companies have suspended their operations without permanently exiting or divesting. Among these are Adidas, American Express, Burger King, Chanel, Coca-Cola, Dell, Disney, GM, Hewlett Packard, Honeywell, Hyundai, IBM, McDonalds, Mastercard, Nike, Oracle, Starbucks, UPS, Visa and Xerox. Some seventy-five companies have suspended a significant portion of their business. These include Caterpillar, John Deere, Dow, GE, Goldman Sachs, JPMorgan, Kellogg’s, Pepsico and Whirlpool. Pausing new investments are ninety-six companies. This is different from JPMorgan and Goldman Sachs who, while suspending some operations, continue to snatch up depressed Russian securities at very low prices. Among those pausing new investments are Cargill, Colgate-Palmolive, Credit Suisse, Danone, Johnson & Johnson, Siemens and Unilever. The total so far is 672 companies taking various forms of action. Yale reported 162 companies staying the course, including Acer, Alibaba, International Paper, Koch, and Lenovo.[23]

Some funds not appearing in the Yale report include the important financial centres in Singapore, which has halted any new economic activity with four major Russian banks. And Singapore’s large sovereign wealth funds, which have about $6 billion invested in Russia, have also suspended activity.[24] Two of China’s largest state-owned banks are limiting loans for purchases of Russian commodities.[25] The New Development Bank, established by Russia, China, Brazil and South Africa, put new transactions on hold. And the Asian Infrastructure Investment Bank, whose major shareholder is China, stopped its projects in Russia and Belarus. As of the middle of March 2022, there were more than 3,600 sanctions on Russian individuals and companies.

Table 1: Estimated and potential losses of companies leaving Russia[26]

Companies Leaving Russia	Estimated and Potential Loss (US$ million)
BlackRock	$17,000
Bank of America	$700
BNY Mellon	$200
Citigroup	$1,900
Ericsson	$95
Goldman Sachs	$300
JPMorgan	$1,000
Nokia	$109
Shell	$5,000
Société Générale	$3,300
Volvo	$423

The rush to boycott Russia reminds one of the corporate rush to endorse Black Lives Matter; essentially a marketing strategy to stay in front of popular politics. And while the costs are disruptive, transnational corporations are large enough to swallow such losses. For example, as the price for oil rose, Shell increased its early quarterly profits by 300 per cent to $9.1 billion – already enough to cover its projected $5 billion loss. Most of these sanctions will only harm the Russian people without having any real effect on the ruling class or the invasion. Russian citizens are already experiencing a dramatic decline in purchasing power and may soon face growing unemployment and a lack of consumer goods. The larger developing crisis is in world food supplies as Russia and Ukraine export a significant amount of the world’s wheat, corn, barley and sunflower oil. Shortages and price increases will hit the poor in the Global South the hardest.

Financial institutions and the TCC

Because of the integration of the global financial system, Russian capital was exposed to severe sanctions in 2022 that constituted a geo-economic break. There has been a general belief in the sanctity of foreign reserves. The US often talks about a ‘rules-based world order’. This includes open capital markets and accounts, deeply integrated financial markets, and benchmark assets in US dollars. Putin counted on all of this to keep the Russian economy functioning during the invasion. But seven of the largest Russian banks have been removed from the SWIFT interbank system. This severely limits the ability to pay for imports or receive payment for exports, as SWIFT is used to link funds for transnational deals. Russia’s central bank also kept about half its $630 billion dollars and euro reserves in foreign institutions residing in London, New York, Paris and Tokyo, and from $86 to $140 billion in Chinese bonds. Except for the Chinese holdings, these funds are now frozen, causing the rouble to lose about 40 per cent of its value, although with capital controls the rouble regained most of its value. Moreover, the collapse of Russian corporate stocks triggered the multi-week closure of the Russian stock market. And both Moody and Fitch downgraded Russian sovereign debt to ‘junk’. Russia is moving towards its first foreign currency debt default in one hundred years, but, as of May 2022, was still making payments using money from energy exports.

The severity of the economic sanctions is a radical step. Even during the second world war, relations between the Bank of England and the Reichsbank continued into the 1940s. And the Bank of International Settlements continued to allow the German central bank access to its clearing and settlement facilities throughout the war.

As Dominik Leusder points out:

More than any armed conflict, the current international monetary system has laid bare the folly of this romantic liberal portrait of globalisation. The sanctions against Russia are the clearest manifestation yet of a distinct undercurrent of financial globalisation … the West’s ability to coerce states has only increased as a function of their integration [so] as Russia became a central node [of] the global economy, it became more vulnerable.[27]

And yet western investors and companies are also in danger, as sanctions over the transfer of funds may mean Russia defaults on billions in loans. Facing such problems, US authorities gave the okay to JPMorgan to process interest payments due on dollar bonds from the Russian government. Citigroup is another payment agent for about fifty corporate bonds tied to Russian TNCs like Gazprom and MMC Norilsk Nickel. [28] Furthermore, the important financial institution Gazprombank is spared from sanctions and continues to be a conduit for commodity transactions. For example, working with Citibank it helped Brazil purchase Russian fertiliser, which is not sanctioned. Thus, the flow of capital continues, at least in part, despite sanctions.

Again, Leusder provides insightful analysis:

As globalization underwrote Putin’s militarism and his increasingly hostile posture toward Russia’s neighbors, it simultaneously rendered the country’s economy fatally reliant: on the net demand from other countries such as Germany and China; on imports of crucial goods such as machinery, transportation equipment, pharmaceutical and electronics, mostly from Europe; on access to the global dollar system to finance and conduct trade … This is one way to construe the deceptively simple insight of Henry Farrell and Abraham L. Newman’s theory of weaponized interdependence: the logic of financial globalization that generated Russia’s trade surplus and gave Putin room to maneuver also provided the economic and financial weaponry that was turned against him.[29]

Thus, a nationalist strategy to reconstitute the Russian empire, using the profits and ties that come with globalisation, is undercut by the contradiction of those same ties and relationships.

Weaponised interdependence is a good description of the financial markets in metals. Alongside Russian fossil fuels are its exports of metals, including copper, alumina and nickel, which is used in making stainless steel and batteries for electric cars. Here are the complications of transnational capitalism. Tsingshan Holding Group in China is the world’s largest nickel producer, China’s second largest steel producer, and is involved in electric vehicle batteries. Tsingshan made an enormous $3 billion bet shorting the price of nickel, counting on its own increased production in creating an abundance of supplies. This bet was made on the London Metal Exchange (LME), which is a unit of Hong Kong Exchanges and Clearing Limited. With the Russian invasion, although nickel was not sanctioned, fear took hold of the market and prices jumped 250 per cent. The short bet based on lowering cost was a disaster. Trade chaos took hold, leaving Tsingshan with two choices. Either deliver tons of nickel or pay for margin calls, which means coming up with the cash or securities to cover potential losses. But Tsingshan only held 30,000 tons of its 150,000-ton bet. The remainder was held by JPMorgan, BNP Paribas, Standard Chartered and United Overseas Bank. On the cusp of a global financial disaster, LME suspended trading and retroactively cancelled $3.9 billion of trades, blaming banks for preventing efforts to create greater transparency that could have revealed the interconnected problem.[30] Consequently, the Russian invasion set off a financial crisis that punished transnational capitalists that have no part in the war.

Facing sanctions, oligarchs can’t be happy with the war, and a number have stated their opposition. Nevertheless, the global financial system has been built to safely hide their money, as well as the wealth of others in the TCC. It’s estimated that oligarchs have hidden about half their wealth offshore, amounting to some $200 billion. Somewhere between 10,000 to 20,000 Russians hold more than $10 million each in offshore assets and havens.[31] Still, that is significantly less than their American counterparts who have an estimated $1.2 trillion in offshore tax havens. Much of the Russian money is in US, UK and EU assets. Transparency International has estimated about $2 billion just in UK property.[32]

But much of this wealth is difficult to discover because the TCC has structured international laws to hide wealth in complex trusts and shell corporations.[33] Global accounting firms PwC, KPMG, Deloitte and EY helped oligarchs move money to offshore shell companies for years before currently withdrawing services. Rosneft, VTB, Alfa Bank, Gazprom and Sberbank have been represented by leading US law firms, including White & Case, DLA Piper, Dechert, Latham & Watkins and Baker Botts. And Baker McKenzie, one of the world’s largest law firms, continues to represent some of Russia’s largest companies, including Gazprom and VTB.[34] Concord Management specialised in serving ultra-wealthy Russians, helping them invest in hedge funds, private equity and real estate. Since 1999, Concord has channelled billions to BlackRock, Carlyle Group and others. Wall Street banks such as Credit Suisse, Goldman Sachs and Morgan Stanley often acted as intermediators, linking Concord to hedge funds.[35] Such well-worn networks tie the Russian TCC to global capitalists and financial institutions in a mutually beneficial relationship, and creates a shared culture that exalts the privileges of wealth and common ideas about how the world economic system works.

Capitalists the world over make use of sophisticated accountants, bankers and lawyers to hide their assets. An agent will set up an offshore shell company in a country with little transparency. This company then creates more shells in other low-transparency jurisdictions – about forty-two exist across the world, including the US states of Delaware and South Dakota. This allows the ‘ultimate beneficial owner’, often unknown, to have multiple bank accounts and the ability to move money and invest without any scrutiny. Government investigators in both the US and the UK regularly ignore suspicious banking activity. In 2018, the EU passed regulations demanding access to information on the ownership of European companies nested in shell companies. Yet in 2022 no such registry exists. Congress passed a transparency law in 2021 with a $63 million budget, but never provided the money to the Treasury Department. Consequently, the effort to sanction oligarchs is undercut by the global financial system built to the demands of the TCC, of which Russian capitalists are members. While some pressure is being directed on the oligarchs, the system of hidden cross-border capital flows is too valuable to end, allowing the Russian TCC to escape greater harm.

A good example of how shell corporations function is the effort to sanction Arcady Rotenberg. Rotenberg is worth about $3 billion with an estimated $91 million invested in the US and a $35 million mansion outside London, bought through an entity in the British Virgin Islands. He has at least 200 companies located across dozens of countries. Even after coming under sanctions in 2014, Rotenberg became the owner of two additional companies located in Luxembourg, well known as a haven for billionaires. Although senate investigators found countless bank filings on suspicious Rotenberg activities, none of them have been investigated by the Treasury Department.

As Cihan Tuğal reminds us, Putin and his cronies

are a solid part of world capitalism, and their apparently insane actions are intended to produce a better place at the table. They want to be recognized as legitimate imperialists in the new, post-Wilson and post-Lenin world of the 21st century … [Putin] is not only serving his ego, but a capitalist class fostered by post-1991 reforms, which were selective appropriations of free market ideas. The gang of cronies is not Putin’s creation alone. It is an outcome of transnational dynamics. This class is hungry for markets, and it cannot help but look for ways to burst out of Russia.[36]

German/Russian economic relations

Moving from a picture of transnational markets, industries and finance, we can explore the specific relationship between Germany and Russia. Germany as the largest European economy is also the most integrated with Russia. For Russia, it’s their most important economic partner alongside China. In 2021, German exports to Russia were worth more than $28.4 billion, and it invested a further €25 billion in operations.[37] Germany still depends on Russia for about 55 per cent of its natural gas, 35 per cent of its oil, and half its coal.

Before 2014, there were 7,000 German companies inside Russia representing some of the largest TNCs in the world, such as Adidas, BASF, Siemens, Volkswagen, Opel and Daimler. On the financial side, all major German commercial banks were active in Russia. In terms of oil and gas, Germany’s biggest energy group Eon was the largest foreign shareholder in Gazprom, which, alongside BASF, was building the $6.6 billion Baltic Sea pipeline. The Germans held 20 per cent of the Nord Stream joint venture, with former chancellor Gerhard Schröder as chairman and Matthias Warnig of Dresdner Bank its chief executive. Even after the seizure of Crimea, Siemens CEO Joe Kaeser confirmed its commitment to Russia to sell trains, energy infrastructure, medical technology and manufacturing automation technology. Cross-border deals also continued, with RWE selling its oil and gas subsidiary to Russia’s LetterOne for over $7.5 billion. But, with the 2014 sanctions, German trade with Russia dropped by 35 per cent, and German firms investing in Russia dropped to just under 4,000 by 2020.[38]

Now the invasion of Ukraine has shaken the German/Russian relationship in a very significant manner, particularly in the auto and energy industries. Wintershall Dea, an oil and gas TNC, will stop payments to Russia and write off its €1 billion investment in Nord Stream 2. Additionally, it will not receive revenues from its Russian operations, which accounted for about 20 per cent of its 2021 profits. The company issued a statement on the turmoil caused by the invasion lamenting,

What is happening now is shaking the very foundations of our cooperation. We have been working in Russia for over 30 years … We have built many personal relationships – including in our joint ventures with Gazprom. But the Russian war of aggression against Ukraine marks a turning point.[39]

Nord Stream 2 has been a contentious issue between the US and Germany for years. The pipeline running through the Baltic goes directly to Germany. The US has pressured Germany to end the project, but Angela Merkel refused to do so. The project, worth $11 billion, is registered as a Swiss firm whose parent company is Gazprom. Gazprom owns the pipeline and paid half the costs, the rest shared by Shell, Austria’s OMV, France’s Engie, and Germany’s Uniper and Wintershall DEA.[40] The invasion has prompted Germany to halt the project. The suspension of Nord Stream 2 may not be permanent, but even a temporary suspension is a huge shift.

Russia exports fifty-six billion cubic metres of liquefied natural gas to Germany yearly. Inside Germany, Gazprom owns and operates thousands of miles of pipeline, key storage facilities, and the largest underground storage tank for natural gas in western Europe. Russia also supplies German refineries with a third of their oil, a number with long-term contracts that Russia is not willing to cancel. Particularly ironic are the weapons sent by the German government to Ukraine that use steel produced in German factories powered by coal coming from Russia. As Putin has stated:

Let German citizens open their purses, have a look inside and ask themselves whether they are ready to pay three to five times more for electricity, for gas and for heating … You can’t isolate a country like Russia in the long run, neither politically nor economically. German industry needs the raw materials that Russia has. It’s not just oil and gas, it’s also rare earths. And these are raw materials that cannot simply be substituted.[41]

Turmoil has also hit the auto industry. Volkswagen, Mercedes-Benz and BMW halted production in Russia, and also suspended all vehicle exports. But the invasion has had an even bigger impact because of the coordination of production between Ukraine and European auto companies. With its low labour costs and educated workforce, Ukraine became a manufacturing centre of systems which connect electronic components, like tail lights and car entertainment systems. The work, done by hand, requires a large number of skilled workers. The fighting brought production to a sudden halt, and within days the lack of parts shut down European factories. BMW shut several plants in Germany, Austria and Britain, while VW was brought to a standstill at multiple locations, including its main site in Wolfsburg. Electric vehicle production at Zwickau stopped, including its SUV exports to the US, and Porsche idled manufacturing the Cayenne sport utility vehicle in Leipzig. As Jack Ewing noted:

No car can operate without wiring systems, which are often tailor-made to specific vehicles. So-called wiring harnesses are among the first components to be installed in a new vehicle, and their absence brings assembly lines to a standstill.[42]

Furthermore, Ukraine is also a major source of neon, a gas used for high-performance lasers required for production of scarce semiconductors, adding more woes to the industry.

None of these economic disruptions are welcomed by the TCC. But the German government has taken a major step away from its previous positions. At first opposed to banning Russia from SWIFT, and refusing to send arms to Ukraine, it has now reversed on both those issues. And the sizeable increase in its military budget surprised everyone. Although transnational links are deep, for now geopolitical tensions are riding roughshod over economic concerns. But such concerns have not gone away. The New York Times observes that ‘multiple cracks’ have already occurred over ‘lost trade, higher energy prices, slimmer profits and lower economic growth’, as well as lower employment.[43] As Martin Brudermüller, the chief executive of the chemical giant BASF stated, ‘Cheap Russian energy has been the basis of our industry’s competitiveness’.[44] And again, ‘Do we want to blindly destroy our entire national economy? What we have built up over decades?’[45] What is true for BASF is true for the German economy, whose success is built upon cheap gas from Russia and exports to China.

Conclusion

There are a number of questions not explored in this article. NATO’s eastward expansion, Great Russian chauvinism, fascist forces in both Russia and Ukraine, the meaning of independence and self-determination, US hypocrisy on foreign interventions, China’s role, and growing debates within the Left over the war. All these topics already have a growing and substantial body of literature. Also, events continue to rapidly develop and so the article has some time limitations. But the deeper issues on the intersections between national geopolitics and transnational economics, and how the resulting contradictions affect the war, will continue. What is clearly evident is that global capitalism has plunged the world into yet another crisis. A crisis that ignores a pandemic that threatens the health of every human on the planet, and an environmental crisis that threatens every species. The failure is staggering in its ignorance.

What the new global configuration will look like is difficult to tell. Much depends on how the conflict ends. A long-term occupation will freeze Russia’s transnational links, a rapid conclusion may mean the easing of sanctions. The invasion is a further deconstruction of the global capitalist system built over the past forty years of neoliberal hegemony. But there are still many trillions of dollars in cross-border accumulation, and global assembly lines continue to churn out commodities in a coordinated system of production and trade. The current problems in logistics and supplies are not because of too little demand, but because of too much, with the infrastructure of ports, shipping and transportation actually too limited. Such problems might call for an expansion of globalisation, which is at the heart of China’s Belt and Road strategy. But economic, political and social disruptions cause states to look to their own national security. As a result, the contradictions between national and transnational forces continue to be the nexus for world events, changing the balance of forces into new configurations of struggle.

This complex relationship between nationalism and globalism needs to be understood through historical materialism, which defines the world as a continual process of movement. Marx saw everything in motion – production, distribution, environmental metabolic relationships, the class struggle, and all human interactions. Change was driven by the balance between opposing forces, and the results were defined by the power between the aspects. How much of the old that remained, and how much of the new that was asserted, continually set the conditions for the movement to continue. This process of motion and change results in contradictions unfolding in many different forms. There is no historic queue in which socialism waits its turn to appear at the front of the line.

In the current capitalist world, neither nation-centric nor transnational relationships exist in isolation from the other. They exist in the same institutions and continually define and determine each other within a changing balance of forces. This unity of opposites in tension and conflict is what produces the historic transformation towards a new synthesis. No outcome is predetermined, but produced by the dynamic itself. Consequently, what aspects of nation-centric relationships survive or re-emerge depend on the agency of political struggle. Under pressure of globalist economic and environmental crisis, nationalist antagonisms have rematerialised, but within the context of transnational relationships. Globalisation didn’t create the ‘end of history’ because the past continues to exist in the present.[46]

We can see this contradiction in the balance between national and transnational forces in the Russian invasion. A balance in which nationalism and inter-state conflict has grown stronger as the forty-year hegemony of neoliberal globalisation has faced a series of economic, environmental and social crises. As the balance of power shifts, aspects of the old system reassert themselves, but deeply affected and redefined by the changes globalisation engendered. Old ideas and conflicts may re-emerge, yet they are never the same, but contextualised through the new forces that have asserted themselves. So, in analysing the Russia/Ukraine/NATO conflict, we must be careful not to place it in the world of the 1960s, but a world deeply restructured by transnational capitalism.

References

Jerry Harris is national secretary of the Global Studies Association of North America. He is the author of over 100 journal and newspaper articles, and his latest book is Global Capitalism and the Crisis of Democracy (Atlanta, GA: Clarity Press, 2016).

[1] M. Davis, ‘Thanatos triumphant’, New Left Review (Sidecar), 7 March 2022.

[2] O. Komolov, ‘Capital outflow and the place of Russia in core-periphery relationships’, World Review of Political Economy 10, no. 3 (2019).

[3] Komolov, ‘Capital outflow’.

[4] UNCTAD (United Nations Conference on Trade and Development), 2017 Foreign Direct Investment: Inward and Outward Flows and Stock, 1970–2016 (NY: UNCTAD, 2017).

[5] World Bank, ‘PPP conversion factor, GDP (LCU per international $)’, 11 October 2018, https://data.worldbank.org/indicator/pa.nus.ppp.

[6] US Department of Treasury, ‘Major foreign holders of Treasury securities (in billions of dollars)’, 9 July 2019, http://ticdata.treasury.gov/Publish/mfh.txt.

[7] Federal Customs Service of the Russian Federation, ‘Foreign trade of the Russian Federation on Goods, Federal Customs Service of the Russian Federation’, 27 November 2018, http://www.customs.ru/index.php?option=com_newsfts&view=category&Itemid=1978.

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[13] J. Harris, Global Capitalism and the Crisis of Democracy (Atlanta, Clarity Press, 2016).

[14] Open Secrets, ‘Clients lobbying on H.R. 5859: Ukraine Freedom Support Act of 2014’, https://www.opensecrets.org/federal-lobbying/bills/summary?cycle=2021&id=hr5859-113.

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[19] H. Tabuchi, ‘Citing a Chevron tanker, Ukraine seeks tougher restrictions at Russian ports,’ The New York Times, 16 March 2022; I. Ouyang, ‘LME nickel mayhem: London to resume trading after Chinese ‘Big Shot’ Tsingshan lines up bank credit to forestall market chaos over its short positions’, South China Morning Post, 15 March 2022, https://www.scmp.com/business/banking-finance/article/3170570/lme-resume-nickel-trading-after-chinese-short-seller; J. Farchy and M. Burton, ‘LME boss says banks are partly to blame for nickel short squeeze’, Bloomberg, 18 March 2022, https://www.bloomberg.com/news/articles/2022-03-18/lme-boss-says-banks-are-partly-to-blame-for-nickel-short-squeeze.

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[22] E. Ng, ‘Ukraine conflict: Hong Kong-listed aluminium giant Rusal’s shares plunge after Australia bans export of key materials to Russia’, South China Morning Post, 21 March 2022, https://www.scmp.com/business/article/3171224/ukraine-conflict-hong-kong-listed-aluminium-giant-rusals-shares-plunge.

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[24] Sovereign Wealth Fund Institute (SWFI), ‘GIC sovereign wealth fund and Temasek turn their backs to Russia over Ukraine invasion’, 7 March 2022, https://www.swfinstitute.org/news/91630/gic-sovereign-wealth-fund-and-temasek-turns-their-backs-to-russia-over-ukraine-invasion.

[25] Bloomberg, ‘Ukraine crisis: crude oil price soars as sanctions on Russia spur fear of a global energy crisis’, South China Morning Post, 28 February 2022, https://www.scmp.com/business/commodities/article/3168654/ukraine-crisis-crude-oil-price-soars-sanctions-russia-spur.

[26] Daily Business Briefing, ‘Here’s how much it is costing companies to leave Russia’, The New York Times, 11 April 2022.

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[28] Bloomberg, ‘Russia default averted for now as JPMorgan processes bond payments’, 17 March 2022, https://www.businesslive.co.za/bloomberg/news/2022-03-17-russia-default-averted-for-now-as-jpmorgan-processes-bond-payments/.

[29] D. Leusder, ‘The art of monetary war’.

[30] I. Ouyang, ‘LME nickel mayhem’.

[31] R. Reich, ‘We aren’t going after Russian oligarchs in the right way. Here’s how to do it’, RSN.org, 9 March 2022, https://www.rsn.org/001/we-arent-going-after-russian-oligarchs-in-the-right-way-heres-how-to-do-it.html.

[32] Transparency International UK, ‘Stats Reveal Extent of Suspect Wealth in UK Property and Britain’s Role as Global Money Laundering Hub, 18 February 2022, https://www.transparency.org.uk/uk-money-laundering-stats-russia-suspicious-wealth.

[33] M. Apuzzo and J. Bradley, ‘Oligarchs got richer despite sanctions. Will this time be different?’, The New York Times, 16 March 2022, https://www.nytimes.com/2022/03/16/world/europe/russia-oligarchs-sanctions-putin.html.

[34] M. Goldstein, K. P. Vogel, J. Drucker, M. Farrell and M. McIntire, ‘How western firms quietly enabled Russian oligarchs’, The New York Times, 9 March 2022, https://www.nytimes.com/2022/03/09/business/russian-oligarchs-money-concord.html.

[35] M. Goldstein and D. Enrich, ‘How one oligarch used shell companies and Wall Street ties to invest in the U.S.’ The New York Times, 21 March 2022, https://www.nytimes.com/2022/03/21/business/russia-roman-abramovich-concord.html.

[36] C. Tuğal, ‘Putin’s invasion: imperialism after the epoch of Lenin and Wilson’, LeftEast, 6 March 2020, https://lefteast.org/putins-invasion-imperialism-after-the-epoch-of-lenin-and-wilson/.

[37] M. Eddy, ‘For German firms, ties to Russia are personal, not just financial’, The New York Times, 6 March 2022, https://www.nytimes.com/2022/03/06/business/germany-russia-companies.html.

[38] M. Eddy, ‘For German firms’.

[39] M. Eddy, ‘For German firms’.

[40] J. Mason, ‘U.S. slaps sanctions on company building Russia’s Nord Stream 2 pipeline’, Reuters, 23 February 2002, https://www.reuters.com/business/energy/us-plans-sanctions-company-building-russias-nord-stream-2-pipeline-cnn-2022-02-23/.

[41] K. Bennhold, ‘The former Chancellor who became Putin’s man in Germany’, The New York Times, 23 April 2022, https://www.nytimes.com/2022/04/23/world/europe/schroder-germany-russia-gas-ukraine-war-energy.html.

[42] J. Ewing, ‘Car industry woes show how global conflicts will reshape trade’, The New York Times, 7 March 2022, https://www.nytimes.com/2022/03/07/business/cars-russia-china-trade.html.

[43] K. Bennhold and S. Erlanger, ‘Ukraine war pushes Germans to change. They are wavering’, The New York Times, 12 April 2022, https://www.nytimes.com/2022/04/12/world/europe/germany-russia-ukraine-war.html.

[44] K. Bennhold and S. Erlanger, ‘Ukraine war pushes’.

[45] M. Eddy, ‘Why Germany can’t just pull the plug on Russian energy’, The New York Times, 5 April 2022, https://www.nytimes.com/2022/04/05/business/germany-russia-oil-gas-coal.html.

[46] J. Harris, Global Capitalism.

carld717@gmail.com
2023-04-18

Pollical Analysis

The U.S.’ Six Party System’ 5.0: Revising the Hypothesis Again

Click HERE for a closeup view of the graphic.

By Carl Davidson

Feb. 27, 2022

“If you know the enemy and know yourself, your victory will not stand in doubt; if you know Heaven and know Earth, you may make your victory complete.”

–Sun Tzu, The Art of War

Successful strategic thinking starts with gaining knowledge, in particular gaining adequate knowledge of the big picture, of all the political and economic forces involved (Sun Tzu’s Earth) and what they are thinking, about themselves and others, at any given time. (Sun Tzu’s Heaven). It’s not a one-shot deal. Since both Heaven and Earth are always changing, strategic thinking must always be kept up to date, reassessed and revised.

This statement above was part of the opening to a widely circulated article I wrote four times now, about two, four, six, and eight years ago. With the upcoming November 2022 elections, it’s time to take my own advice again and do another update. The electoral strategic terrain is constantly changing, and we don’t want to be stuck with old maps and faulty models.

In the earlier versions, I suggested setting aside the traditional ‘two-party system’ frame, which obscures far more than it reveals, and making use of a ‘six-party’ model instead. I suggested that the new hypothesis had far more explanatory power regarding the events unfolding before us. I still like this hypothesis.

Some critics have objected to my use of the term ‘party’ for factional or interest group clusters. The point is taken, but I would also argue that U.S. major parties, in general, are not ideological parties in the European sense. Instead, they are constantly changing coalitions of these clusters with no firm commitment to program or discipline. So I will continue to use ‘parties,’ but with the objection noted. You can substitute ‘factions’ if you like. Or find us a better term.

For the most part, the strategic picture still holds. The ‘six parties’, under two tents, were first labeled as the Tea Party and the Multinationalists under the GOP tent, and the Blue Dogs, the Third Way New Democrats, the Old New Dealers, and the Congressional Progressive Caucus, under the Democratic tent. We had three ‘parties’ under each tent in the second and following versions.

There are still a few minor players outside of either tent—the Green Party campaigns in California, Kshama Sawant’s ongoing battles in the Seattle City Council, the local independent candidates of the Richmond Alliance, and a few more. They might be pretty important in local areas, but still lack the weight to be featured in this analysis.

But let’s move to the central terrain.

First and most essential for us on the left now is Biden’s victory over Trump alongside the persistent clout of Senator Bernie Sanders, who keeps showing far more strength than imagined. Today we would also certainly add the gains made by Alexandra Ocasio Cortez (D-NY) and the growth of ‘the Squad.’ Other progressives wins in Congress and DSA gains in several state legislatures are also noteworthy.

But here’s the danger. Biden’s won by a clear margin, but Trump also gained in total votes over his past numbers. This is dangerous and too close for comfort. Given a 50/50 Senate and a narrow margin in the House, Biden has to govern, as best as he can, alongside the continuing power of Trump and rightwing populism. Moreover, the right includes the full integration of Trump’s forces into the GOP national and state apparatus and Trump’s now overt alliances with growing fascist militias and related groups

Trump’s still refuses to accept his defeat by more than 7 million votes. Acceptance of this ‘Big Steal,’ transformed into a ‘Big Lie,’ is now a loyalty test throughout the Republican party, from top to bottom. Moreover, we all witnessed Trump’s attempted coup on Jan. 6, 2021, complete with an insurrectionary assault on the Capitol. Hundreds are now sitting in jail and their trials are underway. . The number of Oath Keepers and Proud Boys on trial is a case in point. More importantly, the House Committee on Jan. 6 is starting its public hearings, which promises to be a powerful media exposure.

Therefore, what has moved from the margins to the center of political discourse is the question of a clear and present danger of fascism. Far from an ongoing abstract debate, we are now watching its hidden elements come to light every day in the media. We also see the ongoing machinations in the GOP hierarchy and in state legislatures reshaping election laws in their favor. Now, the question is not whether a fascist danger exists, but how to fight and defeat it.

The outcomes for Biden and Trump, then, challenge, narrow, and weaken the old dominant neoliberal hegemony from different directions. For decades, the ruling bloc had spanned both the GOP transnationals and those transnational globalists in the Third Way Democrats. Now neoliberalism is largely exhausted. This is a major change, opening the terrain for new bids for policy dominance. Team Biden is groping for a yet-to-be-fully -defined LBJ 2.0, largely making major investments in physical and social infrastructure, like universal child care or free community college. Weirdly, the GOP claims to stand for nothing, save fealty, Mafia-style, to Trump. Behind that smokescreen are the politics of fascism and a neo-confederacy.

But the GOP still has three parties. Back in 2016, Politico had characterized them this way: “After the Iowa caucuses” the GOP emerged “with three front-runners who are, respectively, a proto-fascist, [Trump] a Christian theocrat [Cruz] and an Ayn Rand neoliberal [Rubio] who wants to privatize all aspects of public life while simultaneously waging war on the poor and working classes.”

So here’s the new snapshot of the range of forces for today (including a graphic map above).

Under the Dem tent, the three main groups remain as the Blue Dogs, the Third Way Centrists and the Rainbow Social Democrats. Although small, the Blue Dogs persist, especially given their partnership with West Virginia’s Joe Manchin in the Senate. With Biden in the White House, the Third Way group keeps and grows its major clout and keeps most of its African American, feminist and labor allies. The Sanders Social Democratic bloc has gained strength, especially with the growing popularity of Alexandria Ocasio-Cortez and the growth of ‘The Squad. ‘Sanders has also formed and kept a progressive-center unity against Trump and has helped define ‘Build Back Better’ and other Biden reform packages.

The changes under the GOP tent have been radical, although keeping its three parties. The ‘Never Trumpers’, despite voting for Biden, have yet to split off entirely. In fact, despite the efforts to purge her, Liz Cheney of Wyoming continues fighting fiercely against Trump and his fascist measures and minions. The Jan. 6 insurrection also brought to the surface the tensions between the Christian nationalists headed by former Vice President Mike Pence and Trump’s rightwing populists. Apart from tactics, a key difference between the two is Koch money and its institutional power. The Koch brothers never liked or trusted Trump, and never funded him directly, pouring their millions into the Christian Nationalist bloc instead.

Trump still has a tight grip on the entire party, but without his White House power, the number of his GOP critics is on the rise. Daily. Trump has denounced all rivals from these two groupings, and is building his alliances with the Jan. 6 insurrectionist supporters in state legislatures. The goal is new anti-voter laws to control those counting the votes and defining the districts in the years ahead.

Let’s now look closer, starting from the left upper corner of the map:

The Rightwing Populists

This ‘party’, as mentioned, has taken over the GOP and is now tightening its grip. Trump was originally an ‘outlier elite’ with his own bankroll but now supplemented with funds from Russian oligarchs and Arab oil fortunes (See ‘Proof of Conspiracy ‘by Seth Abhramson). He is also still directly connected to the Robert Mercer family fortune, the 4th ranking billionaire funding rightwing causes. For example, the Mercers keep Breitbart News afloat and funded the career of Steve Bannon, former Trump ‘strategist’ that took him to victory in the last stretch. Along with Breitbart, Fox News is the main hourly mouthpiece for Trump’s war against the mainstream ‘fake news’ mass media. There are dozens of smaller outfits, but with millons of followers

Trump is also pulling in some new wealth. One example is Julia Jenkins Fancelli, an heiress to the fortune of the popular Publix supermarket chain. Alternet reports others: “One example is Dan and Farris Wilks, two billionaire siblings who have worked in the fracking industry in Texas and have “given a combined $100,000 toward the president’s reelection.” The Wilkes Brothers supported Sen. Ted Cruz over Trump in the 2016 GOP presidential primary but are supporting Trump in 2020.”

But major events reveal some fault lines. The House has now impeached Trump twice, once following the Jan. 6 events and earlier in 2019. The Senate followed up by acquitting him in both cases. In Trump’s second impeachment, 10 GOPers in the House and seven in the Senate votes against him. This is as good of an indictor as any of the remaining small but persistent strength of ‘regular’ Republicans in their own party.

The impeachment efforts, worthy in their own right, were also a major result of Trump’s fierce ongoing political warfare against the ‘Deep State.’ The battle is actually a contest for a new ‘America First’ white nationalist hegemony against the old neoliberal globalists under both tents. The ‘Deep State’ is the federal civil service and includes the ‘Intelligence Community,’ with a long list of Trump-targeted CIA and FBI leaders, supposedly corrupt, of which FBI director James Comey was the first to be purged. The real ‘corruption’ was their refusal to pledge loyalty to Trump personally, again like an old-style Mafia boss.

In the first impeachment vote in Feb. 2020, the sole breakaway vote was Mitt Romney on Article One. Romney, with considerable wealth himself, is also a Mormon bishop, and his LDS church recently listed holdings of over $37 billion with the SEC. This is a factor in Romney’s ability to stand alone. At the moment, however, the much-weakened GOP’s old Establishment is left with the choice of surrender, or crossing over to the Third Way bloc under the Dem tent. A good number already did so to vote for Biden in the Dem 2020 primary and general, expanding the Dem electorate to the right.

Trump now needs even more to shore up an alliance with the Blue Dogs. But it remains tactical, stemming from his appeals to ‘Rust Belt’ Democrats and some unions on trade and tariff issues, plus white identity resentment politics. The economic core of rightwing populism remains anti-global ‘producerism’ vs ‘parasitism’. Employed workers, business owners, real estate developers, small bankers are all ‘producers’. They oppose ‘parasite’ groups above and below, but mainly those below them—the unemployed (Get a Job! as an epithet), the immigrants, poor people of color, Muslims, and ‘the Other’ generally. When they attack those above, the target is usually George Soros, a Jew.

Recall that Trump entered politics by declaring Obama to be an illegal alien and an illegitimate officeholder (a parasite above), but quickly shifted to Mexicans and Muslims and anyone associated with ‘Black Lives Matter.’ This aimed to pull out the fascist and white supremacist groups of the ‘Alt Right’–using Breitbart and worse to widen their circles, bringing them closer to Trump’s core. With these fascists as ready reserves, Trump reached farther into Blue Dog territory, and its better-off workers, retirees, and business owners conflicted with white identity issues—immigration, Islamophobia, misogyny, and more. Today they still largely make up the audience at his mass rallies.

Trump’s outlook is not new. It has deep roots in American history, from the anti-Indian ethnic cleansing of President Andrew Jackson to the nativism of the Know-Nothings, to the nullification theories of Joh C. Calhoun, to the lynch terror of the KKK, to the anti-elitism and segregation of George Wallace and the Dixiecrats. Internationally, Trump combines aggressive jingoism, threats of trade wars, and an isolationist ‘economic nationalism’ aimed at getting others abroad to fight your battles for you. At the same time, your team picks up the loot (‘we should have seized and kept the oil!’).

Trump’s GOP still contains his internal weaknesses: the volatile support of distressed white workers and small producers. At present, they are still forming a key social base. But the problem is that Trump did not implement any substantive programs apart from tax cuts. These mainly benefited the top 10% and created an unstable class contradiction in his operation. Moreover, apart from supporting heavy vaccine research, his inability to deal adequately with the coronavirus emergency– over 900,000 dead—is is still undermining the confidence of some of his base. Most of what Trump has paid out is what WEB Dubois called the ‘psychological wage’ of ‘whiteness’, a dubious status position. Thus white supremacist demagogy and misogyny will also continue to unite a wide array of all nationalities of color and many women and youth against him.

Trump’s religious ignorance, sexual assaults and a porn star scandal always pained his alliance with the Christian Nationalist faction: (Mike Pence, Betsy DeVos, et. al.), and the DeVos family (Amway fortune). They were willing to go along with it for the sake of judicial appointments, with the 5-4 Supreme Court ruling against Black voters in Alabama only one major achievement. The alliance, nonetheless, has become more frayed since Jan. 6 and the ‘Hang Mike Pence’ spectacle. But some stalwarts stood fast. The billionaire donor to the GOP right, Devos’s brother Erik Prince is a case in point. He amassed billions from his Blackwater/Xe firms that train thousands of mercenaries, These forces serve as ‘private contractors’ for U.S. armed intervention anywhere. Prinz is now reportedly preparing to spend a few million sending spies and other disruptors into ‘liberal groups’ to do dirty work in Trump’s favor.

The Christian Nationalists

This ‘party’ grew from a subset of the former Tea Party bloc. It’s made up of several Christian rightist trends developed over decades, which gained more coherence under Vice President Mike Pence. It includes conservative evangelicals seeking to recast a patriarchal and racist John Wayne into a new warrior version of Jesus. It was strengthened for a period by the addition of William Barr as the Attorney General, He brought Opus Dei and the Catholic far-right, a minority with the American Catholic Church, closer to the White house. But seeing that Trump was about to go beyond the law in trying to overturn the 2020 election, Barr jumped ship and resigned just in time

A good number of Christian nationalists, however, are the Protestant theocracy-minded fundamentalists, especially the ‘Dominionist’ sects in which Ted Cruz’s father was active. They present themselves as the only true, ‘values-centered’ (Biblical) conservatives. They argue against any kind of compromise with the globalist ‘liberal-socialist bloc’, which ranges, in their view, from the GOP’s Mitt Romney to Bernie Sanders. They are more akin to classical liberalism than neoliberalism in economic policy. This means abandoning nearly all regulations, much of the safety net, overturning Roe v. Wade, getting rid of marriage equality (in the name of ‘religious liberty’) and abolishing the IRS and any progressive taxation in favor of a single flat tax. Salon in April 2018 reported:

“This rightwing Christian movement is fundamentally anti-democratic. Their ‘prayer warriors’ do not believe that secular laws apply to them, thus making it acceptable, if not honorable, to deceive non-believers in order to do God’s work. Many evangelicals in the Christian nationalist or ‘dominionist’ wing of the movement want the United States to be a theocracy. In some ways, this subset of the evangelical population resembles an American-style Taliban or ISIS, restrained (so far) only by the Constitution.”

The classic liberalism of most Christian Nationalist is also a key reason they attract money from the Koch Brothers networks. While the Koch’s hold Trump and his populists in some contempt, as mentioned above, the Christian Nationalist faction has access to Koch funds and its ALEC legislative projects, along with access to the DeVos fortunes. Effectively, Christian nationalist’ prosperity economics’ amounts to affirmative action for the better off, where the rise of the rich is supposed to pull everyone else upwards. Those below must also pay their tithes and pull upward with their ‘bootstraps.’ They argue for neo-isolationism on some matters of foreign policy. But as ‘Christian Zionists’ they favor an all-out holy war on ‘radical Islamic terrorism,’ to the point of ‘making the sand glow’ with the use of nuclear weapons. They pushed for moving the U.S. Embassy in Israel to Jerusalem and ripping up the Iran nuclear deal. All this is aimed at greasing the skids for the ‘End Times,’ the ‘Rapture, ‘and the ‘Second Coming.’ With Cruz, Pence and Devos as leaders, they have become the second most powerful grouping under the GOP tent, and the one with the most reactionary platform and outlook, even more so than Trump himself in some ways.

The Establishment Neoliberal ‘RINOs’

This is the name now widely used in the media for what we previously labeled the Multinationalists. It’s mainly the upper crust and neoliberal business elites that have owned and run the GOP for years, but are now largely out in the cold. It included the quasi-libertarian House’ Freedom Caucus,’ the smaller group of NeoCons on foreign policy (John Bolton and John McCain), and the shrinking number of RINO (Republican In Name Only) moderates in The Lincoln Project. The Establishment also favors a globalist, U.S. hegemonist and even, at times, unilateralist approach abroad, with some still defending the Bush-Cheney disaster in Iraq. Their prominent voice today is Liz Cheney of Wyoming.

We also need to keep in mind the global backdrop to these shifts. The worldwide process of technology-driven financialization has divided the ruling class of late capitalism in every major country into three—a local sector of the transnational capitalist class, the nation-based multinationals, and an anti-globalist national sector. Thus among traditional U.S. neoliberals, some are U.S. hegemonists, but many have a transnational globalist understanding of the world with vast amounts of their money in foreign stock. China and global value chains integrate them with other global capitalists. This is why Trump’s trade policy is so controversial with Wall Street elites of both Republican and Democratic leanings. U.S. economic hegemony makes no sense at this financial and productive integration level. The global three way division also serves to explain why Trump’s rightwing populism, despite its American characteristics, is connected to the rightwing nationalist-populist rise in all European countries. He is not ‘explainable’ in American terns alone.

This subordination is a big change for the traditional GOP top dogs. They would like to purge a weakened Trump from the party and rebuild, but so far lack the ability. They could try to form a new party with neoliberal Dems. Or, more likely, they could join the Dems and try to push out or smother those to the left of the Third Way grouping.

Now let’s turn to the Dem tent, starting at the top right of the graphic.

The Blue Dogs

The Blue Dogs, according to the online newsletter Sludge, “operates a political action committee, Blue Dog PAC, that raises millions of dollars each election cycle, mainly from corporate PACs, and spends money to help elect more conservative Democrats. Corporate PACs that donated to Blue Dog PAC in the 2018 election cycle include those affiliated with drug company Pfizer, defense contractor Northrop Grumman, oil company ExxonMobil, and Wall Street bank Citigroup.”

This small ‘party’ has persisted and gained some energy. The recent effort of West Virginia’s Senator Joe Manchin to bloc or gut Biden’s reforms is a case in point. One earlier reason was that the United Steel Workers and a few craft unions had decided ‘to work with Trump’ on tariffs and trade. The USW also got firmly behind Connor Lamb (D-PA) for Congress. Lamb won a narrow victory in a Western PA CD in a rural and conservative area, but with many USW miner’s votes. He was endorsed by the Blue Dog PAC, although he is not yet a formal member of the caucus. Getting into a nearly physical floor fight with the GOP over Jan. 6 ‘radicalized’ Lamb a bit, moving him leftward.

But the small Blue Dog resurgence may not last. On the one hand, the DNC Third Way gang currently loves people like Lamb, and wants to see more candidates leaning to the center and even the right. On the other hand, an unstableTrump out of office has little to offer on major infrastructure plans save for ‘Build The Wall’ chanting at rallies. His potential votes among USW and other union members may shrink.

The Third Way New Democrats

First formed by the Clintons, with international assistance from Tony Blair and others, this dominant ‘party’ was funded by Wall Street finance capitalists. The founding idea was to move toward neoliberalism by ‘creating distance’ between themselves and the traditional Left-Labor-Liberal bloc, i.e., the traditional unions and civil rights groups still connected to the New Deal legacy. Another part of ‘Third Way’ thinking was to shift the key social base away from the core of the working class toward college-educated suburban voters, but keeping alliances with Black and women’s groups still functional.

Thus the Third Way had tried to temper the harsher neoliberalism of the GOP by ‘triangulating’ with neo-Keynesian and left-Keynesian policies. But the overall effect is to move Democrats and their platform generally rightward. With Hillary Clinton’s narrow defeat, the Third Way’s power in the party has diminished somewhat but gained clout with the victory of Biden. As mentioned above, its labor alliances have weakened, with unions now going in three directions. Most of labor has remained with the Third Way. Some moved rightward to the Blue Dogs while others—Communications Workers, National Nurses United, and the U.E.—are part of the Sanders bloc. Regarding the current relation of forces in the party apparatus, the Third Way has about 60% of the positions and still controls the major money. In California in 2018, for example, the Regulars kept control of the state party committee only with extremely narrow margins over Bernie supporters.

The key test was the November battle with Trump: Who inspired and mobilized the much-needed ‘Blue Wave’, gave it focus and put the right numbers in the right places? The measured Third Way moderates? Or the Social Democrat insurgents? This question brings us to the last of the six’ parties.’

The Rainbow Social Democrats

This description is better than simply calling it the Congressional Progressive Caucus (CPC), as this article’s first version did. I’ve kept the ‘Rainbow’ designation because of the dynamic energy of AOC and the Squad. The Third Way, which has kept the older and more pragmatic voters of the rainbow groupings under its centrist influence, can still share it as well.

As explained before, the ‘Social Democrat’ title doesn’t mean each leader or activist here is in a social-democrat or democratic socialist group like DSA. It means the core groups–the Congressional Progressive Caucus, Progressive Democrats of America (PDA), Working Families Party (WFP), Democratic Socialists of America (DSA), Justice Democrats and Our Revolution and Indivisible—all have platforms are roughly similar to the left social democrat groupings in Europe. This is made even more evident with AOC’s and Bernie’s self-description as ‘democratic socialists’ in the primaries and the general, where it only seemed to help. The platform, however, is not socialist itself, but best described as a common front vs finance capital, war, and the white supremacist and fascist right. This is true of groups like Die Linke (‘The Left’) in Germany as well, which met recently with PDA and CPC members. In that sense, the ‘Third Reconstruction,’ promoted by Rev William Barber and the Poor People’s Campaign, might also serves as a good designation and goal.

Finally, there is the ongoing dramatic growth of the DSA due to their wise tactics in the 2016 Bernie campaign. They went all in for Bernie but also lost no opening to make themselves visible. Prominent Justice Democrat and DSAer Alexandra Ocasio Cortez, who has been a firebrand in the House, has made the ‘Green New Deal’ a household term, and joined Sanders in his efforts to shape Biden’s agenda. Now with nearly 100.000 members with chapters in every state, DSA has already won a few local and statehouse races the first time out. They are now an important player in their own right within these local clusters. But their growth may have peaked for a while. Their surfacing weaknesses reside in sorting out their own internal differences with sectarianism and even chauvinism against Black candidates.

This overall growth of this ‘party’ is all to the good. The common front approach of the Social Democratic bloc can unite more than a militant minority of actual socialists. Instead, it has a platform that can also unite a progressive majority around both immediate needs and structural reforms, including both socialists and non-socialists, the ‘Third Reconstruction.’ Apart from winning 46% of the 2016 Dem convention delegates and a good number of statehous seats, this ‘party’ is now noted for two things. First is the huge, elemental outpourings of young people–mainly women, students and the young workers of the distressed ‘precariat’ sector of the class–in the elemental risings of millions after Trump took office. Second was the enormous risings following the murder of George Floyd by the police—over 20 million, the largest in U.S history. With other mass groups like Our Revolution and Indivisible, they all added a higher degree of organization at the base to this dynamic and growing cluster.

What does it all mean?

With this brief descriptive and analytical mapping of the upper crust of American politics, many things are falling into place. The formerly subaltern rightist groupings in the GOP have risen in revolt against the Neoliberal Establishment of the Cheneys, Romneys and the Bushes. Now they have rightwing populist and white nationalist hegemony. The GOP, then, can be accurately called the party of the neo-Confederates and the main target of a popular, anti-fascist front. Under the other tent, the Third Way is seeking a new post-neoliberal platform, through President Joe Biden’s reforms. The progressive-center unity of the earlier Obama coalition, with all its constituency alliances, is still in place. At the same time, the Third Way still wants to co-opt and control the Social Democrats as an energetic but critical secondary ally. The Sanders’ forces have few illusions about this pressure on them, and don’t want to be anyone’s subaltern without a fight. So we are continuing to press all our issues, but adapting some policies to the common front vs. the fascist right. If we work well, we will build more base organizations, more alliances, and more clout as we go.

This ‘big picture’ also reveals much about the current budget debates. All three parties under the GOP tent still advocate neoliberal austerity. The Third Way-dominated Senate Democrats and Blue Dogs push for an ‘austerity lite’ budget and some Keynesian infrastructure programs. Team Biden, the Social Democrats and the Congressional Progressive Caucus are working on ‘Build Back Better’ programs and ‘Green New Deal’ projects that might expand advanced manufacturing jobs.

However, we must keep in mind that favorably ‘shifting the balance of forces’ in election campaigns is often an indirect and somewhat ephemeral gain. It does ‘open up space’, but for what? Progressive initiatives matter for sure, but much more is required strategically. Strategically, we are in a war of position, with periodic tactical ‘war of movement’ elemental risings. In that framework, we are interested in pushing the popular front vs. finance capital to its limits and developing a 21st-century socialist bloc. If that comes to scale in the context of a defeat of the pro-Trump right bloc, the Democratic tent is also going to be stretched and strained. It could even collapse and implode, given the sharper class contradictions and other fault lines that lie within it, much as the Whigs split four ways in the 19th Century. This ‘Whig option’ tactic would demand an ability on the part of the left to regroup all the progressive forces, inside and outside, into a new ‘First Party’ alliance or counter-hegemonic bloc. Such a formation also includes a militant minority of socialists, which will then be able to contend for governing power. The tricky part is to do this in a way that keeps the right at bay.

An old classic formula summing up the strategic thinking of the united front is appropriate here: ‘Unite and develop the progressive forces, win over the middle forces, isolate and divide the backward forces, then crush our adversaries one by one.’ In short, we must have a policy and set of tactics for each one of these elements, as well as a strategy for dealing with them overall. Moreover, take note of a warning from the futurist Alvin Toffler: ‘If you don’t have a strategy, you’re part of someone else’s strategy.’ Then finally, as to tactics, ‘wage struggle on just grounds, to our advantage and with restraint.’

To conclude, we still need to start with a realistic view of ourselves as an organized socialist left. Save for DSA, we are mostly quite small as organizations, but now we can see we are swimming in a sea of millions open to socialism. What can we do now? If you can see yourself or your group honestly working to achieve DSA’s stated program, by all means, join them and make them even larger. Or set up Jacobin / In These Times Reading Groups in your living rooms and unite socialists and close friends with them. The same goes with the new Convergence project growing out of Organizing Upgrade. Or join CCDS, CPUSA, Left Roots, or Liberation Road—socialist groups which largely share some or most of the perspective here. Join or start PDA or WFP chapters everywhere, use organizations and broad ‘Third Reconstruction’ and ‘Modern Tecumseh’ alliances and popular rainbow assemblies to build mass mobilizations, register new voters and defeat the GOP in November 2022 and 2024.

With both socialists and rainbow progressives, start at the base, focus on city and state governments, and expand the Congressional Progressive Caucus. We rarely gain victories at the top that have not been won and consolidated earlier at the base. Most of all, in order to form broader and winning coalitions, you need base organizations of your own to form partnerships and alliances WITH! Seize the time and Git ‘er done!

carld717@gmail.com
2023-04-17

China History Uncategorised

Using Marxism to Look Back 5000 Years: Findings and Insights from Research into the Origins of the Chinese Civilization

By Wang Wei

Qiushi Journal

Updated: 2022-10-28

The Chinese civilization is one of the world’s four great ancient civilizations and the only one that has developed in an unbroken chain up to the present day. It thus holds a unique and important place in the history of human civilization. As President Xi Jinping has said, the origins of Chinese civilization are an important subject for Chinese scholars and an enduring focus for international researchers.

In the spring of 2002, a national-level project to trace the origins of the Chinese civilization was launched. Guided by Marxism, research focused on four ancient city ruins from between 3500 and 1500 BC—the Liangzhu site in Hangzhou, Zhejiang Province; the Taosi site in Linfen, Shanxi Province; the Shimao site in Shenmu, Shaanxi Province; and the Erlitou site in Luoyang, Henan Province—as well as the ruins of regional centers along the Yellow, Yangtze, and Liaohe rivers. These sites best reflect the social development and building of central power in that period. Through large-scale archaeological excavations and surveys of settlement distribution in the surrounding areas, we collected information on every aspect of these sites. This information facilitated comprehensive cross-disciplinary research on the emergence, taking shape, and early development of the Chinese civilization from multiple perspectives and levels.

The research project aimed to answer several critical questions: First, when was the Chinese civilization formed, and how long is its history? Second, how did the Chinese civilization first emerge, take shape, and develop? And how did the trend toward a unified whole led by the dynasties on the Central Plains arise, given the Chinese civilization’s diverse sources of origin? Third, why did the Chinese civilization follow a path featuring diversity amidst unity, continuous history, and unbroken development? Fourth, what characteristics define the Chinese civilization’s emergence, taking shape, and development? And where does the Chinese civilization stand in world civilizational history?

After 20 years of work, the project to trace the origins of the Chinese civilization has scored impressive achievements.

Putting forward a Chinese approach to defining civilization and setting criteria for a society’s entry into civilization

A Chinese approach to defining civilization

There is considerable debate among scholars in China and abroad about defining civilization and other related concepts. From a historical materialist point of view, we proposed that civilization is an advanced stage of human cultural and social development. As a result of the development of productive forces, this stage gives rise to the social division of labor and social stratification, which produce classes, kingship, and states.

Project researchers regard the emergence of a civilization and the shaping of a civilization as distinct albeit interconnected. They constitute separate stages in the genesis and formation of a civilization, in which a quantity of civilizational factors first accumulates before a qualitative social change occurs. Specifically, the emergence of a civilization refers to a prehistoric period in which civilizational factors were first nurtured, as productive forces underwent considerable development, material and spiritual life was steadily enriched, and a division between mental and manual labor emerged, along with a social hierarchy.

By a civilization taking shape it refers to a stage in which material, spiritual, and cultural institutions advance considerably. Social stratification intensifies, giving rise to classes. The social hierarchy becomes institutionalized, and people’s social conduct becomes standardized to create a system of rites. A supreme ruler or king emerges, monopolizing power over military command and religious and sacrificial ceremonies. A body that enforces public power known as the state emerges, exercising the main function of social management. The emergence of a state symbolizes that a civilization has taken shape.

Criteria for determining a society’s entry into civilization

Based on the characteristics of the Mesopotamian and ancient Egyptian civilizations, international scholars generally considered writing, metallurgy, and cities as the three basic elements of a civilization. This standard would mean that the Chinese civilization has a history of just 3,300 years.

However, studies around the world have shown that several of the world’s early civilizations did not conform to this “three-basic element” criterion. For example, the Mayan civilization in Central America did not have metallurgy, while the Inca civilization in South America lacked a writing system. The patterns on the seals of the Harappan civilization in the Indus Valley were also not recognized as writing. As more archaeological discoveries were made and research advanced, however, the international academic community generally came to accept that various parts of the world should set their own standards for defining a civilization based on the characteristics that distinguished the development of their ancient societies.

Guided by Marxist theory, Chinese scholars have used historical documents and ancient legends as references. More importantly, we have a rich trove of archaeological materials obtained over the course of a century to shed light on the profound historical and cultural accumulation of the Chinese civilization and the unique path of development it has traveled. Chinese scholars, therefore, are in a better position to offer their definitions for civilization. According to Engels’ view that “the central link in civilized society is the state,” the project to trace the origins of the Chinese civilization put forward the following criteria to define the entry of a civilization: first, development of production, population increase, and the appearance of cities; second, a social division of labor, social stratification, and the emergence of classes; third, the emergence of kingship and states.

Over 5,000 years ago, agriculture developed in various regions in China, the population increased, and regional centers gradually grew into large cities. Advanced handicrafts, such as jade, turquoise vessels, fine pottery, and lacquerware production were specialized and under the control of the ruling class. All regions saw the emergence of a class that had extricated itself from physical labor and became specialized in managing social affairs. There was a serious divide between rich and poor, creating different classes. Kings emerged to assume military and religious power, and early states appeared in which governments were formed under the control of kings to exercise state power through establishing social norms and resorting to violence. Cities had high-grade buildings such as palaces for kings, high-grade tombs for deceased kings and members of the ruling class, and ceremonial vessels and systems to emphasize the status of the ruling class. Slavery was practiced, and people were killed and buried as sacrifices for the deceased nobles or when laying the foundations of palaces.

These discoveries by Chinese archaeologists provide ample material evidence to prove that China’s entry into civilization had its own distinctive characteristics. The level of productive development revealed by these materials demonstrates that the surplus labor of the time was enough to support institutions of public power, thus enabling a portion of the population to devote themselves to management and spiritual affairs away from production.

The above-mentioned criteria can also be applied to other civilizations. Although all civilizations are materially and spiritually distinctive, they share similarities in how institutions of royal power and states emerge, differing only in how royal power is subsequently manifested and the forms states take. In China, power was displayed through exquisite jade ceremonial vessels, bronze ceremonial vessels, large palaces made of wood and earth, and tombs imitating architecture on the ground. In Mesopotamia and ancient Egypt, gold, precious stones, magnificent stone temples, pyramids, and large burial chambers were used for this purpose.

Representative artifacts excavated from large secondary burial tombs in the northern section of the Gangshang ruins in Tengzhou, Shandong Province. The site was selected as one of China’s top 10 archaeological discoveries in 2021.

Establishing how the Chinese civilization emerged, took shape, and developed in the early stages and providing material evidence for its over 5,000 years of history

Research on the emergence, taking shape, and early development of the Chinese civilization, and on relevant background and reasons, has yielded the following conclusions: the foundations of the Chinese civilization were laid 10,000 years ago (8000 BC); civilization first emerged 8,000 years ago (6000 BC); its development accelerated 6,000 years ago (4000 BC); it entered into the stage of civilizational society more than 5,000 years ago (3000 BC); the Central Plains emerged as a powerful region 4,300 years ago (2200 BC); the first dynasty was founded 4,000 years ago (2000 BC); power held by royal families was consolidated 3,000 years ago (1000 BC); and a unified multi-ethnic state was created 2,200 years ago (221 BC).

Ten thousand years ago: laying the foundations

Around 11,000 years ago, global climate warming catalyzed the beginning of agriculture in East and West Asia. Then 10,000 years ago, people domesticated millet—the Setaria italica and Panicum miliaceum species—in northern China, and rice began to be cultivated in the middle and lower reaches of the Yangtze River. Cultivated rice, pottery, and stone tools have been excavated from the Shangshan site in Pujiang County, Zhejiang Province. Our ancestors in northern China and the middle and lower reaches of the Yangtze River also began making stone tools and pottery. The emergence of agriculture led to the creation of small village settlements in various places, thus laying the foundations for the creation of a civilization.

Eight thousand years ago: the emergence of a civilization

A period of great climate warming occurred between 8,000 and 6,000 years ago. Paleoenvironmental studies have revealed that the climate of the Yellow River Basin at the time was similar to the climate of today’s Yangtze River Basin, and that of the Yangtze River Basin was similar to today’s southern China. The warm and humid climate enabled rice farming to spread northward to the lower reaches of the Huaihe River, while millet farming became popular along the middle and lower reaches of the Yellow River and in the north and south of the Yanshan Mountains. Stone and bone shovels unearthed at ancient sites indicate that slash-and-burn agriculture had already given way to settled farming. Agriculture during this period led to population growth, an increase in the number of villages, the development of handicrafts, and social progress. Inhabitants of the Jiahu site in Wuyang County, Henan Province, located on the upper reaches of the Huaihe River, cultivated rice, raised pigs, made wine and turquoise utensils, and invented a bone flute with seven finger holes. At Jiahu and Xinglongwa, located in Aohan Banner, Inner Mongolia, as well as other sites, a small number of large-scale tombs containing jade or turquoise vessels have been discovered, which suggests that society had begun to stratify, paving the way for the rise of a civilization.

Six thousand years ago: accelerated development

Around 6,000 years ago, the rise of the Chinese civilization began to pick up speed. Millet cultivation techniques spread from the Yellow River Basin to the Yangtze River Basin, and rice cultivation spread north to the Hanshui River Basin and the middle and lower reaches of the Yellow River. Handicraft industries in various places also made striking progress, as fine pottery with a solid texture and a smooth surface appeared. The unearthing of four stone silkworm chrysalises dating back 6,000 years to an early settlement of the Yangshao Culture in Shicun Village, Xiaxian County, Shanxi Province, has led excavators to conclude that sericulture and silk reeling had already been invented by that time. People’s spiritual life was also steadily enriched. In an early burial tomb at a Yangshao Culture site in Xishuipo, Puyang City, Henan Province, the remains of the occupant were flanked on either side by mosaics of a dragon and a tiger made from a large number of clamshells. Painted pottery was also popular in China’s central and eastern regions, and rapid progress was made in jade craft, lacquer painting, and architecture.

Some important changes occurred in society in this period. First, the population increased significantly. The number of settlements multiplied, with clusters composed of dozens of villages found in the middle and lower reaches of the Yellow River, and the middle and lower reaches of the Yangtze River. Second, central settlements began to appear. In the Zhudingyuan area in Lingbao City, Henan Province, several large settlements with a scale of up to one million square meters were discovered. Third, wars began to occur. Some large and medium-sized settlements were surrounded by trenches more than 10 meters wide and several meters deep, which were evidently used for defense. Stone axes were also found in the tombs of some adult males. Fourth, social stratification intensified, and a ruling class began to emerge. However, this stage still constituted an accelerated process in the emergence of a civilization; states had not yet been formed, and society had not entered into a civilization.

Five thousand years ago: entry into civilization

The period from 5,500 to 5,000 years ago was critical in the history of the Chinese civilization, as areas along the middle and lower reaches of the Yangtze River successively entered into a civilizational stage.

In the lower Yangtze River region, plowing and large-scale rice fields appeared around 5,300 years ago. Fields and irrigation ditches were organized in regular patterns, and rice farming techniques matured. Archaeologists have discovered large-scale water management systems around the site of the ancient Liangzhu city, along with mounds of 200,000 kilograms of carbonized rice on the south side of the Mojiaoshan site in the heart of Liangzhu city. These discoveries demonstrate that the development of farming and the mastery of grain storage were matters of great importance for Liangzhu. Recent discoveries at the Shi’ao and Maoshan sites in Zhejiang Province dating to the Liangzhu period reveal a checkerboard pattern of expansive fields lined with ridges made from tree branches, bamboo, and disused canoes. Waterways, irrigation holes, and drainage channels were all well-planned. Prehistoric paddies and farming systems discovered quite far from Liangzhu attest to the astounding scale of rice agriculture in the early stage of Liangzhu and the strength of its economy. Such discoveries show that at Liangzhu, an early state was built upon a foundation of religious, political, economic, and military development.

During this period, technologically advanced handicrafts such as fine jade, pottery, lacquerware, and turquoise ornaments appeared in numerous places. Jade cong—cylindrical tube ornaments—representing the Liangzhu Culture were engraved with intricate animal face patterns. People in the lower reaches of the Yellow River could make what is referred to as “eggshell-thin” ceramics with a thickness of less than one millimeter. The technical complexity of these products indicates that artisanal families with specialized skills had emerged by that time. Specialization in advanced handicrafts is an important sign of the social division of labor.

Another sign of social development during this period was the emergence of ceremonial instruments and the initial formation of ritual systems. Jade, lacquerware, and exquisite pottery vessels were excavated from high-grade burial tombs in various places. This shows that local ruling classes controlled the production and distribution of valuable objects. They created a hierarchy through a ritual system that was based on technically advanced and highly prized ritual objects and used tomb size to indicate the status of the deceased.

Around 5,300 years ago, central cities and primitive religious shrines of more than a million square meters were built in the middle and lower reaches of the Yellow River, the middle and lower reaches of the Yangtze River, and the Xiliao River Basin. The ancient city of Liangzhu, a sprawling metropolis in the lower reaches of the Yangtze River, had inner and outer sections of nearly 3 million square meters and 6.3 million square meters, respectively. It was the largest city anywhere in the world at that time. To protect it from mountain floods, more than 10 kilometers of low and high dams were built north of the city. This was the largest water control system in the world during this period and reflected the ability of the Liangzhu rulers to organize large-scale public construction projects.

Class stratification accelerated in step with the emergence of early high-level cities. Large high-grade buildings covering hundreds and even thousands of square meters, and large tombs containing more than a hundred or even several hundred pieces of exquisite objects pose a striking contrast to the modest houses and small-scale tombs of ordinary members of society, and illustrate the vast social wealth enjoyed by the ruling class.

In almost all regions, large tombs with elaborate weapons in the form of jade axes began to appear in this period. Burial tombs at the Liangzhu sites of Fanshan and Yaoshan contained jade axes with wooden handles, possibly serving as symbols of military power. In recently discovered tombs at the Gangshang site in Tengzhou City, Shandong Province, the highest-ranking male nobles were generally buried with one large and one small jade axe. These males are likely to have been kings with command over the military. As the ruling class accumulated authority based on military power, clan leaders became kings who exercised total power. This period also saw an increase in war and violence. Human skeletons scattered in garbage dumps, forming the foundations of large buildings, and buried in large tombs as sacrifices indicate that some people began to enslave others.

Four thousand and three hundred years ago: the rise of the Central Plains

Around 4,300 years ago, a shift occurred in the civilization process in various parts of China. An important upshot of this was the rise of the Central Plains. The period from 4,300 to 4,100 years ago witnessed significant climate change, marked by abnormal temperatures, erratic rainfall, and frequent flooding, greatly influencing the progress of civilization in all regions. The civilization along the middle and lower reaches of the Yangtze River declined, while that in the middle reaches of the Yellow River surged ahead. Powerful groups in the middle reaches of the Yellow River gradually became stronger than other groups around them, and two super-large settlements appeared in succession—Taosi in Shanxi and Shimao in Shaanxi.

The Taosi site covering an area of 2.8 million square meters is about 4,300 to 4,000 years old. The area with high-grade buildings features an 8,000-square-meter rammed-earth platform, buildings of terracotta tiles, painted walls, and decorative engravings. Taosi was thus home to the first palace in the middle reaches of the Yellow River. Nearly 100 items have been unearthed from burial tombs, including drums covered with alligator skins, stone chimes, jade axes, and a large ceramic tray with painted dragon patterns. The remnants of a semi-circular platform were also uncovered at the Taosi site, which astronomers believe to be an observatory for tracking celestial phenomena and determining important agricultural dates and seasons such as the spring equinox, autumn equinox, summer solstice, and winter solstice. This is consistent with the “Canon of Yao” in The Book of History. It describes how King Yao assigned astronomic officers to observe celestial phenomena and tell the divide of the seasons. The time, location, scale, and level of the Taosi site are relatively consistent with the literature describing King Yao’s capital of Pingyang.

A mountainous city built of stone blocks, Shimao was discovered 10 years ago. It is between 4,100 and 3,900 years old and has an area of four million square meters. The site is composed of an outer and inner city, as well as an imperial complex, and has various defensive facilities. The city’s heart consists of a platform dozens of meters in height, believed to be the foundation of a palace complex. The large palace on the platform covers thousands of square meters. There are also stone blocks and pillars carved with images of animals and their faces on the platform. Numerous ceramic eagles of over 50 centimeters to 1 meter in height were also excavated from the platform and are thought to be related to beliefs and worship. Shimao strongly resembles a military fortress. In the city, several sacrificial pits containing young female skulls were discovered. These findings show that just before the founding of the Xia Dynasty (2070–1600 BC), class divisions were particularly pronounced in northern Shaanxi, and a state ruled by a king with great military power had emerged.

Four thousand years ago: dynastic establishment

Around 4,000 years ago, the Xia Dynasty was founded. In the area centered on the southeastern foothills of Songshan Mountain in Henan Province, more than 10 large cities had appeared. Of these, the Wangchenggang site in Dengfeng City is particularly impressive, with a set of corresponding large and small inner and outer cities. The area had been known as Yangcheng ever since the start of the Warring States Period (475–221 BC). At the ruins of Wadian in Yuzhou City, Henan, which belong to the same period, various traces of sacrifices, including human and animal remains, have been identified on the large rammed-earth platform. The discoveries signal the start of a new stage for the Chinese civilization centered on the Central Plains. The “nine administrative districts” referred to in the “Tribute of Yu,” a chapter in The Book of History covered northern, central, and eastern China, indicating that at the founding of the Xia Dynasty, the power group along the middle reaches of the Yellow River extended its vision to the lower reaches of Yellow River and as far as the middle and lower reaches of the Yangtze River. After roughly 200 years of development, during its later stage, the Xia Dynasty continued to accumulate strength, thus gradually giving rise to the leading position of the Central Plains, which exercised an influence that was unprecedented in scope. This is reflected in the Erlitou ruins of Luoyang City in Henan Province.

The Erlitou site covers an area of more than three million square meters and is between 3,800 and 3,500 years old. It is the largest city site in China from that period. Records refer to the Yi-Luo River Basin, where the Erlitou site is located, as the central region of the Xia Dynasty. The golden age of the Erlitou Culture occurred during the late Xia Dynasty just before the founding of the Shang Dynasty (1600–1046 BC). The influence of the Erlitou Culture was unprecedented, with its ritual vessels and ceremonial systems, represented by jade yazhang, a type of ceremonial blade, spreading to the vast surrounding areas. The set of bronze and jade ceremonial vessels used by the Erlitou Culture was inherited in full by the Shang Dynasty.

In the lead-up to the founding of the Shang Dynasty, the Xia Dynasty was the only powerful political entity in the Songshan Mountain region where the Erlitou Culture was based. This gives us ample reason to conclude that Erlitou was most likely the capital of the late Xia Dynasty. The existence of the Xia Dynasty has thus not only been richly documented in literature since pre-Qin period but also proven by archaeological findings.

The Shang Dynasty inherited the ritual system pioneered by the Xia Dynasty. Political, economic, cultural, and social development continued, and a mature writing system, represented by the oracle-bone script, took shape. Metallurgy and the ritual system spread to a much wider area. Oracle-bone inscriptions show that the Shang king was the country’s supreme ruler, under whom a complete administrative structure existed, exercising direct control over the immediate hinterlands and indirect control over loyal vassal states. The political power and cultural influence of the Shang Dynasty stretched from the coast in the east to Longshan Mountain in the west, beyond the Yangtze and Hanshui rivers in the south, and as far as the Yanshan Mountain range in the north. Bronze ceremonial vessels belonging to the Shang system have been excavated across a vast area, demonstrating that the Shang Dynasty played a leading role in the evolution of the Chinese civilization and the development of culture and society in many places.

Three thousand years ago: the consolidation of royal power

In the first years of the Western Zhou Dynasty (1046–771 BC), the king of Zhou founded a feudal state by granting noble titles to relatives and officials and allowing them to establish vassal states, thus creating a stable rule over a vast area outside the immediate hinterlands of the capital. Based on the ritual systems of the Xia and Shang, the Zhou Dynasty developed a more advanced ritual system. It instituted a ceremonial system composed of different types and quantities of bronzeware, establishing a clear hierarchy. This hierarchy was continuously strengthened during the Western Zhou and gradually extended to all aspects of clothing, food, housing, and transportation. Institutional differences even governed garment colors, clothing styles, jade ornaments, horse-drawn carriages, and types and quantities of chimes and other musical instruments. The Western Zhou Dynasty was a critical period in the course of the Chinese civilization, characterized by a feudal system, patriarchal clan system, and system of music and rites. Consisting of many vassals with the Zhou king at the core, the state structure further strengthened the centralized power system developed during the Xia and Shang dynasties and laid a firm foundation for the founding of a unified multi-ethnic country during the dynasties of Qin (221–207 BC) and Han (206 BC–220 AD).

Two thousand and two hundred years ago: the formation of a unified multi-ethnic country

This refers to the unification of China by the First Emperor of Qin in 221 BC based on an administrative system of prefectures and counties and a unified system of laws. Thus, China entered the civilization stage as a unified state, marking a new phase of developing a unified multi-ethnic country.

Historical insights from the development of the Chinese civilization

The integration of diverse elements is an inexhaustible source of vitality for the Chinese civilization.

Looking at the early evolution of the Chinese civilization, we can see the rich and varied nature of the cultures in the various regions of China. The cultures of the middle reaches of the Yellow River openly absorbed a diverse range of civilizational factors, and eventually integrated with the cultures of other regions. The cultures of all regions in China positively contributed to the formation of the Chinese civilization. The convergence and integration of various civilizations filled the Chinese civilization with vitality and enabled it to develop sustainably.

Openness, inclusiveness, exchange, and mutual learning are the driving forces for the development of civilization.

The Chinese civilization has actively sought to learn from and absorb the achievements of other civilizations and has made innovations accordingly. Even in prehistoric times, exchanges were widespread and unfolded across regional and ethnic lines. Such exchanges documented a process of mutual learning between cultures and promoted the development of civilization. Exchanges and mutual learning have been crucial to the enduring prosperity of the Chinese civilization and are vital ingredients in its distinctive charm. Only by being open and inclusive and drawing inspiration from diverse sources can we ensure that the Chinese civilization maintains its liveliness and enjoys lasting vitality.

Cultural soft power is a proven way for the creativity and influence of the Chinese civilization.

The process of refining advanced cultural concepts continued throughout the Xia, Shang, and Zhou civilizations, eventually giving rise to a set of mainstream values with rites as the key tenet. This profound concept exerted extensive influence, leading to the development of a civilization in the vast surrounding regions. Following the Qin and Han dynasties, the concept of rites was carried forward and further promoted and enriched to become a core value of the Chinese civilization. In addition, through exchanges and mutual learning, it spread to surrounding countries and regions and became an important concept for Eastern civilization.

The Chinese civilization emerged, took shape, and achieved early development largely in step with the other three major ancient civilizations of the world, and its achievements are on par with theirs.

Agriculture emerged in China around 10,000 years ago, and the Chinese civilization began to take shape over 5,000 years ago, which largely coincides with the appearance of agriculture and the rise of civilizations in Mesopotamia and ancient Egypt. More than 3,000 years ago, the Zhou Dynasty built the largest government of that time through a feudal system. During the golden age of the Spring and Autumn Period (770–476 BC) when numerous schools of thought flourished in China around 2,600 years ago, the Axial Age of humanistic enlightenment played out in ancient Greece and India. Millet and rice farming, jade manufacturing, and silk-making embody our Chinese ancestors’ wisdom and creativity and represent important contributions to human civilization. The formation of the Chinese civilization was marked by myriad trials such as climate disruptions and social turmoil. Yet our forebears courageously overcame all difficulties and obstacles in a spirit of self-reliance and self-improvement and finally completed the creation of our great civilization, which took its place among the four great ancient civilizations. This development process and the achievements it has produced constitute the source of our cultural self-confidence today. The Chinese civilization has stood and will always stand tall among the world’s civilizations.

National unity is an aspiration of the people and the foundation of China’s strength and prosperity.

The development of the Chinese civilization witnessed wars, numerous competing powers, and breakaway vassals. Yet under the guidance of a unified core and through the development of productive forces and social progress, a unified nation was ultimately established under the Qin and Han dynasties. Since then, valuing unity and seeking great harmony, both as ideas and practices, have strongly appealed to the Chinese nation and permeated its thinking. This concept has sustained the Chinese nation’s unity, guided its identity, and forged its unique character. History shows that national unity is not only an essential attribute of the Chinese civilization but a fundamental guarantee for its continuity. With national unity, ethnic solidarity, and social stability, the Chinese civilization is sure to attain even greater achievements.

The Chinese civilization has, like all civilizations of the world, traveled a distinct path of development and created a unique heritage.

The cradle of the Chinese civilization comprised a vast region with diverse environments. As a result, the Chinese civilization underwent a unique development process, which originated at multiple points and featured cultural collision, exchange, and integration. This grand process ultimately produced a system that unified the entire country under one ruler and fostered the political ideal of great harmony. A civilization led by a central core and characterized by unity amidst diversity thus began to develop. As such, the development of the Chinese civilization also constituted a process of creating a unified multi-ethnic country. This process endowed the Chinese civilization with inexhaustible vitality and turned the Chinese nation into an indivisible community. After the formation of a unified multi-ethnic state, national unity became the highest value and ideal of the Chinese people. The Chinese civilization developed a unique economic, political, and cultural system with agriculture as the foundation, a patriarchal clan system to regulate social relations, a social hierarchy based on a ritual system, virtue as the basis for human relations, and the concept of unity between humans and nature in regard to man’s relations with nature. This process proves that civilizations have different paths of development. It shows that every civilization is unique, should be appreciated in its own right, and can flourish side by side. This is the source of China’s confidence in its own path.

Wang Wei is Academician of the Chinese Academy of Social Sciences (CASS), Director of the CASS Academic Division of History, a visiting researcher at the Research Center for Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and chief expert on the first to fourth phases of the Chinese Civilization Origins Project.

(Originally appeared in Qiushi Journal, Chinese edition, No. 14, 2022)

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2023-04-11