Friday, November 26, 2021

Lao Tian: On the Distribution of Labour and Bourgeois Right - Why it is possible to dismantle the whole system of socialism by starting from …

(Translator’s preface: La Tian explores how the failure to restrict bourgeois right leads to capitalist management systems and to capitalist restoration.)

Who determines the amount of labour in the process of distribution according to labour? The bifurcation of political power between the regulator and the regulated becomes apparent in this question. And the regulation of the many by the few inevitably leads to a lack of managerial impartiality. In the past, however, debates on this issue have been conducted under the conceptual framework of bourgeois right, and with the wrong roots, the edifice is naturally unstable.

The author believes that the solution to the problem of polarisation of political power is to make the private sector public and allow the participation of the regulated in the process of regulation, which reduces the cost of regulation and is compatible with the requirements of impartiality of the majority.

As a means of distribution, the distribution of labour has both political and economic connotations, and the economic connotation of "exchange of equal amounts of labour" is a "reasonable solution" that can easily be approved by managers. This bottom-up approval can easily achieve a functional function - it becomes a legitimising tool and ideological strategy to justify the monopoly of management power. The political content is a polarisation of political power: one group of people can rate the efficiency of the other as a tool of labour and then arbitrarily impose management measures such as incentives or controls. In this way, the polarisation of politics is inherently clear - one part holds management power and the other is passively controlled by management measures, and the way in which management power is accepted or agreed upon by those being managed is through the apparent equality of "equal labour for equal labour".

As soon as workers lose their political vision and simply agree to the fairness of getting paid more for more work, they are potentially affirming that they are subject to a superior power to monitor and evaluate the results of their work, and then an acceptance of political polarisation is established. Of course, the illusion may also include a 'fairness of management' component. The problem is that in the real world, where the cost of information and the cost of monitoring and enforcement are not zero, the willingness to pay for management costs is far below the high cost threshold required for impartiality. Therefore, in order to save on management costs, the capitalist's right to manage can only ever remain at the level of arbitrary brutality, and the fairness of management can only ever remain rhetorical. The cheapest pursuit of the goal of impartiality cannot be obtained under the conditions of a monopoly of managerial power by a few dedicated managers, but can only exist in the middle of a process of making managerial power public, through which a programme of making the private sphere public, would stimulate the broad participation of  workers, save huge amounts of the costs of managerial information and supervision, thus allowing the relevant costs to fall significantly, so that they can finally be compatible with the majority impartiality required by that threshold level.

So the programme of a few dedicated managers managing the majority by various means was always strenuously opposed by Mao, who in March 1960 proposed a contrast between the constitution of Anshan Steel and that of the Magnitogorsk Iron and Steel Works, rejecting the Soviet Communist Party's practice of managerial power within the factories, and even earlier he had internally criticised Stalin for overestimating the role of cadres and technology. Dissent on this issue was the cornerstone of the socialist system, and by taking away this cornerstone the system could not function well and, in the end, could not survive. On his deathbed, Mao Zedong recalled the divergence of political views at the top of the Communist Party, and two major differences in political views were most important to him personally: there was opposition within the Party at the time of co-operatisation, and they had an aversion to criticising bourgeois right.

After Deng Xiaoping came to power, Yu Guangyuan and others wrote that "distribution according to labour is the socialist principle of distribution". This is not acknowledging its political connotation, especially the non-socialist orientation of its political connotation. The aim, of course, was ultimately to dismantle the way management power operated in the Mao era - making the private sphere public - which was precisely the legacy of the revolutionary spirit that was to be affirmed from the Sanwan reorganisation[1] to the Anshan Steel constitution.

The subsequent evolution shows that as soon as the revolutionary line of making public the private sector is ended, the identification of the managed with the managerial objective collapses instantly and the level of voluntary effort falls to an unacceptably low level. At the same time, the rise of coercive power based on the monopoly of managerial power cannot be accomplished within the  history and memory network of state enterprises. No matter how much reform is made to strengthens managerial power and weakens the position of the managed, the rise in the level of coercive effort is difficult to achieve in a concrete society of acquaintances and inevitably leads to private property rights and the restoration of the wage labour system.

The reform finally reverted to the wage labour system, with Deng making a start in 1979 and Zhu Rongji wrapping up twenty years later. To change the public management method in the private sphere among public-owned enterprises is tantamount to completely destroying the political and ideological conditions for the survival of public-owned enterprises. That beginning determined the end, and the choice of such a direction of reform was sure to open the door to a doomsday in which the public sector would destroy itself.

During the Maoist era, the debate on the political and ideological conditions necessary for public ownership was placed within the conceptual framework of bourgeois right, and centred not on the exchange of equal amounts of labour, but on the political polarisation based on it - this was reflected in the return of hierarchy or material incentives based on the monopoly of management power, which would completely destroy the ground rules for the functioning of the public ownership. Therefore, in 1969 Mao Zedong said in the middle of his speech at the First Plenary Session of the Ninth Central Committee: "It seems essential that the Great Proletarian Cultural Revolution should still be carried out. Our foundation has not been consolidated. According to my own observation I would say that, not in all factories, nor in an overwhelming majority of factories, but in quite a large majority of cases the leadership is not in the hands of true Marxists, nor yet in the hands of the masses of the workers. In the past the leadership in the factories was not devoid of good men; there were good men. Among the Party committee secretaries, assistant secretaries and committee members there were good men. There were good men among the branch secretaries. But they followed the old line of Liu Shao-ch’i. They were all for material incentives, they put profits in command and did not promote proletarian politics. Instead they operated a system of bonuses, etc." [1]

(Above: Mao Zedong at the First Plenary Session of the Ninth Central Committee)


Many people in official circles and among enterprises unconsciously followed Liu Shaoqi's lead, preferring to engage in material incentives and profit-attraction, which Mao asserted would surely eventually lead to a final restoration. The opportunity for change or the internal logic underlying Mao's talk of material incentives and profit-motivated development seems to be comparable to the relevant theories of David Coates and his school of the social structure of accumulation (SSA)[2]. The various institutional clusters of accumulation needs in the middle of this SSA theory, the system of employment of labour and the goal of production in the service of profit, can be intrinsically salvaged from the expansion of material incentives and profit orientation, and there is a close intrinsic connection between the two that has not yet seen any academic sorting out.

From the intrinsic rationale of bourgeois right and the judgement that "the bourgeoisie is within the Party", as well as the political status quo of "building a capitalist state without capitalists", Mao had Premier Zhou commission a political essay, "On the Social Basis of the Lin Biao's Anti-Party Group" (1975), which accurately foresaw the subsequent "three-step strategy of restoration": first expanding bourgeois right and then turn public ownership into an empty shell and then turn public into private. The third step was to establish a bourgeois republic. The conscious manipulation of the "political disapproval" of society in general, and their promotion of universal values and capital, served the need for the third step - the building of a bourgeois republic.

What is even more bizarre is that Feng Lanrui, who followed Yu Guangyuan's article and criticised Mao Zedong severely, later followed the "three-step strategy" predicted in that article, and went all the way to present herself and verify the predictions of her own enemies. She herself wrote that: initially she desperately defended distribution according to labour, then she advocated the participation of all factors in the distribution[3], and finally she advocated the establishment of a labour market and the setting of wages according to market prices, which would not be distributed according to labour at all. Then she herself became a complete publicist, and now she often writes articles on the Internet about the so-called constitutional democracy, which she does not understand at all, and starts to openly call for a complete bourgeois republic.

Starting from the political and ideological conditions necessary within the economic base, the re-establishment of political polarisation is a move that takes the bite out of the socialist economic base. It is from this key area that it is possible to see clearly how the core pillars of a system can be dismantled, leaving the entire edifice of the system unsupported, and thus to anticipate precisely the three-step strategy that the restorationists of the future will surely follow.

December 21, 2018



[1] From 29 September to 3 October 1927, Mao Zedong led the "Sanwan Reformation" in Sanwan Village, Yongxin County, Jiangxi Province. This was the earliest successful exploration and practice of building a new type of people's army by the Party, and marked the beginning of the formation of Mao Zedong's thinking on building a people's army.

The Sanwan Reformation initially solved the problem of how to build a revolutionary army with peasants and old soldiers as its main components into a new type of proletarian people's army, ensuring the absolute leadership of the Party over the army and laying the foundation of political army building. At the same time, the implementation of democracy, one of the three important elements of the Sanwan Reformation, also played a great role in uniting the masses of soldiers and disintegrating the enemy army. In this sense, the Sanwan Reformation also enriched the Party's early united front thinking and made a great contribution to united front work in theory and practice.

Mao Zedong creatively established a new set of strategies for governing the army, such as "building branches on companies" and "equality between officers and soldiers". The Sanwan Reformation was one of the earliest successful explorations and practices of the Communist Party of China in building a new type of people's army.

[2] David Coates is an academic based at the Department of Political Science, Wake Forest University, North Carolina. He has argued that capitalist models are to be differentiated by the character and balance of class forces embedded in their social structures of accumulation.

[3] Factor-based distribution is a bourgeois form of distribution, common in China, in which the users of production factors pay the owners of production factors corresponding remuneration according to a certain proportion according to the size of the contribution played by the factors in the production and operation process under the conditions of market economy. The distribution by factors is divided into distribution by land factors, distribution by capital factors, distribution by labour factors, distribution by technology factors, distribution by management factors and distribution by information factors.


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