CLASS WARFARE: Book Review

10/11/2006

Book Review

THE CORPORATION THAT CHANGED THE WORLD: How the East India Company Shaped the Modern Multinational.

By Nick Robins, Pluto Press, 2006,

224 pages ISBN: 0745325238 Paperback. £15.99

I often gauge how much I have enjoyed a book by the amount of highlighting and marginal notes I make in pencil. This book, like many on my shelves, will horrify those who prize pristine, unmarked first editions.

On the 31st December 1600 a precursor of the modern translational corporation came into existence. Its pioneering techniques in the field of trade and commerce, and downright murder and corruption, preceded by centuries the noxious business practices that we associate with today’s all-powerful corporations, many of whom have a higher turn over than small countries.

This book presents as a meticulous account of perhaps the most powerful corporation that ever lived, tracing how it came into existence, how it operated, its inner structure, the role of its own armies in its rise to supremacy, its part in the Bengal Famine when 10 million died as a result of the Company’s market manipulation, its militaristic role in the Opium Wars, its part in the Indian Mutiny and the Boston Tea Party and how, for the last twenty years of its existence, it ruled India as an agent of the British Empire. When it comes to downright exploitation, corruption, slaughter and sheer negligence and indifference to the suffering of others, perhaps no company that ever existed comes near the East India Company in its ruthless pursuit of profit, whilst refashioning the world commercial order in the interests of privilege and power for hundreds of years to come.

In its time the company had many critics, most notably Edmund Burke, “the real champion of India’s identity”, Adam Smith and Karl Marx. Burke fought long and hard to impeach the Company’s Governor General Warren Hastings for the devastation wrought on India in its endless search for profit.

Commencing his opening speech at Westminster Hall in February 1788, Burke said:

“I impeach him in the name of the people of India, whose laws, rights and liberties, he has subverted, whose properties he has destroyed, whose country he has laid waste and desolate…I impeach him in the name of human nature itself, which he has cruelly outraged, injured and oppressed, in both sexes, in very age, rank, situation and conditions of life.” (p. 135)

Despite Burke’s opening four day tirade against Hastings - one of the longest opening speeches in history - during which women were carried out fainting, at which the Speaker was “rendered speechless” and at which spectators were willing to pay £50 for a seat, despite an ensuing trial that lasted from February 1778 to April 1795, Hastings was acquitted.

Considering the Company’s operations for the New York Daily Tribune in the summer of 1853, Marx noted five characteristics:

“…a permanent financial deficit, a regular over-supply of wars, and no supply at all of public works, an abominable system of taxation, and a no less abominable system, of justice and law..” (p.159)

Satirising the Company’s administrative system, he commented how there existed “no government by which so much is written and so little done.”(p.159).

Marx furthermore viewed the company as a tool of British capitalism plc in India, observing how “the aristocracy wanted to conquer it, the moneyocracy wanted to plunder it and the millocracy to undersell it” (ibid).

Commenting on the Second Opium War, in Marx’s view attributable to the Company’s operations in the East and its insistence that it had the right to swamp China with drugs in the name of profit, regardless of the addiction-induced misery its trade created or how the Chinese authorities felt, he wrote:

“While openly preaching free trade in poison, it secretly defends the monopoly of its manufacture. Whenever we look closely into the nature of British free trade, monopoly is pretty generally found to, lie at the bottom of its’freedom’”.

In eight carefully researched chapters, Robins traces the Company’s operations from its inception as a trader in spices to its role in running the Indian sub-continent on behalf of the British crown, withholding, one imagines, very little regardless how gruesome, and there indeed are some stomach-churning passages.

In the final chapter, his analysis masterly done, Robins, contemplating the state of corporate play today, reflects how the Company’s legacy reveals the importance of taking on the mega-corporations who presently rampage across the planet unhindered, and this, for socialists, is the book’s one failing.

Robins’ remedy for curbing corporate power is simple:

“First of all, its market power and political influence must be limited…Next, stringent rules are needed to ensure that management and investors do not use the corporation as a tool for their short-term interests…And, finally, clear and forcible systems of justice have to be in place to hold the corporation to account for damage to society and the environment.” (p.181)

Thus, a brilliant attack on unchecked power in the pursuit of profit is marred by the simple request that the capitalist class behaves and shows a little more respect when carrying out its obscene business, and that the executive arm of capitalism – government – hurries to the rescue of society and the natural environment. Smiley-faced capitalism is, for Robins, the only remedy. Warren Hastings laughs in his grave.

All said, if you’re into the study of corporate power gone mad, read this

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TO BE GOVERNED...

"... is to be watched, inspected, spied upon, directed, law-driven, numbered, regulated, enrolled, indoctrinated, preached at, controlled, checked, estimated, valued, censured, commanded, by creatures who have neither the right nor the wisdom nor the virtue to do so. To be GOVERNED is to be at every operation, at every transaction noted, registered, counted, taxed, stamped, measured, numbered, assessed, licensed, authorized, admonished, prevented, forbidden, reformed, corrected, punished. It is, under pretext of public utility, and in the name of the general interest, to be placed under contribution, drilled, fleeced, exploited, monopolized, extorted from, squeezed, hoaxed, robbed; then at the slightest resistance, the first word of complaint, to be repressed, fined, vilified, harrassed, hunted down, abused, clubbed, disarmed, bound, choked, imprisoned, judged, condemned, shot, deported, sacrificed, sold, betrayed, and to crown all, mocked, ridiculed, derided, outraged, dishonored. That is government; that is its justice; that is its morality!"
(Proudhon)

THE CASE FOR SOCIALISM

The world we live in at the beginning of the 21st century is one that is fraught with contradiction. Over one billion of our fellow humans are chronically malnourished and at least 1.5 billion will, on any one day, go without food. At the same time, the governments of the world order the destruction of vast mountains of food to keep prices high, stockpile food until it rots and pay farmers to take land out of production because the laws of supply and demand insist that overproduction is bad for the market.

Some 600 million of our fellow humans are homeless, many sleeping rough on the streets of the world’s cities, yet there is no shortage of vacant buildings – countless millions of acres of empty living space in the major cities of the world – and certainly no shortage of building materials or skilled builders and craftsmen presently out of work. Again, we find that the market not only dictates who does and does not eat, but who does and does not sleep comfortably.

Well over one billion of our fellow humans have no access to clean water, while its growing scarcity is calculated to spark many wars across the globe this coming century. Meanwhile, the technology exists to desalinate millions of gallons each day and to set up treatment plants capable of cleaning the dirtiest water. However, there is not much profit in selling something which covers five-sixth’s of the planet, so the investment never comes.

While millions of children die each year of curable diseases and while we still await breakthroughs in medical science that can cure the presently incurable, we find there are literally thousands of scientists around the world employed in weapons programmes – paid by their respective governments to devise new methods of murder, including germ warfare.

The list is as endless as it is insane. At every turn we find evidence of how capitalism destroys us physically and mentally, retarding real human development. At every turn we come smack up against the iron law of our age – “can’t pay, can’t have”. At every turn we find capitalism running wild like a rabid dog, infecting all it comes into contact with.

Credit where credit is due. Capitalism has enabled us to carry out some pretty fantastic technological and scientific feats. Advances in warfare sparked a race for rocket technology that has enabled us explore the furthest limits of the solar system. The search for oil and other resources has allowed us to plumb the deepest oceans and map out the ocean beds. We can split the atom, map the human genome, and perform the most amazing organ transplants. Nothing, it seems, is beyond us. Our productive powers are unprecedented. Our capabilities are awe-inspiring. Sadly, however, and in spite of the technology at our disposal, the never-ending battle for profits means that we have entered the 21st century dragging with us every social ill that plagued the previous century. War, hunger, poverty, disease, and homelessness are still making the headlines, and each of these problems is, to a lesser or greater degree, rooted in the way we continue to organise ourselves for production. The terrible irony is that we are already capable of solving the major problems that face us. Indeed, we have been capable of solving them for quite some time – though obviously never within the context of capitalism.

Over 20 years ago, the World Health Organisation revealed that the technology existed to feed a world population twelve times its (then) size. Five years ago the UN reported that Africa could easily feed a population six times its current size if western farming technology was introduced. Science and technology are in fact so advanced as to enable us to solve all these problems. However, the requirements of profit everywhere act as a stumbling block not only to the full use of the productive forces, but also to the full and unhindered use of science and technology in the service of humanity.

Socialists long ago realised that the problems we face are in fact social problems, not natural ones or the vengeance of gods – social problems because they have their roots in the way our world is organised for production, that is production for profit, not need. If you think seriously about it, you’ll be hard pressed to find any aspect of our lives that is not subordinated to the requirements of profit. This is the case the world over. We are all of us at the mercy of the anarchic laws of capitalism.

What is to be done?

If this is the case, then what can we do about it? Socialists believe the only way forward lies in abolishing the money/wages/profit system that we know as capitalism and establishing a world socialist society or, in other words, a world of free access to the benefits of civilisation. Only then can we gain real control over our world and reassert control over our own destiny. Only then can we produce without polluting our world and only then can we enjoy a world in which there is no waste or want or war.

Socialists advocate a world without borders or frontiers, social classes or leaders, states or governments or armies. A world devoid of money or wages, exchange, buying or selling. A world where production is freed from the artificial constraints of profit. A world in which people give freely of their abilities and take according to their own self-defined needs from the stockpile of communal wealth. A global system in which each person has a free and democratic say in how their world is run.

Human nature a barrier?

Of course, many will agree that such a world would be a beautiful place to live in, but that “human nature” will always be a barrier to its establishment, because humans are “by nature” greedy, selfish and aggressive. It quickly becomes apparent that what they are describing is not human nature as such, but various traits of human behaviour exhibited under particular circumstances. Socialists maintain that human behaviour is shaped by the kind of system people are brought up to live in – that it is not our consciousness that determines our social existence but our social existence which determines our consciousness. Nobody is born a racist or a patriot, a bigot or with a belief in gods. Nobody is born a murderer, a robber or a rapist, and our alleged greed for money is no more a function of the natural human thought process than were slavery or witch burning.

In general, the ideas the common people hold have been acquired second-hand, passed down from the ruling class above us. This is because the class which owns and controls the productive process also controls the intellectual life process in general. Any anti-social behaviour is likewise influenced by our social circumstances at any given time, i.e., when we are poor, depressed, lonely, angry and frustrated.

In most cases, those who produce the world’s wealth (some 95 percent of the world’s population) have had that second-rate education that makes free-thought difficult – an upbringing that conditions us to accept without question the ideas of our betters and superiors. Indeed, the education system is geared to perpetuate the rule of an elite, insofar as it never encourages children to question and take issue with the status quo. Children may well cite that 8 times 8 equals 64, but how many will ask about the cause of wars or query the destruction of food?

Socialists hold that because we can adapt our behaviour, the desire to cooperate should not be viewed as irrational. We hold that humans are, “by nature”, cooperative and that we work best when faced with the worst and that our humanity shines through when the odds are stacked against us. There are millions of cases of people donating their blood and organs to complete strangers, sacrificing their lives for others, of people giving countless hours of their free time to charitable work – all of this without financial incentive. There is even the case of a man throwing himself on top of a grenade to protect children in a school yard. He died to protect children, none of which were his own, and in the instant knowledge that his action was suicidal.

Today, world capitalism threatens the human race with extinction. The reason this obnoxious system survives is because we have been conditioned to accept it, not born to perpetuate it. Rest assured, no gene inclines us to defend the profit system.

Been tried?

Many believe that socialism has already been tried and has failed. They then point to the former Soviet Union, to China, Cuba and a dozen other states that claimed to have established “socialism”. What they fail to grasp is that socialism has existed nowhere, and that what existed – being passed off as socialism – was in fact state capitalism, not socialism or communism (which mean the same thing). A cursory glance at the affairs of these countries reveals they never abolished the wages system. The rulers exploited their workers and outlawed dissent. They produced when only viable to do so, maintained commodity production, traded according to the dictates of international capital and, like every other capitalist state, were prepared to go to war to defend their economic interests. Moreover, in all of these countries, it was believed that socialism could be established by force, that socialism could exist in one country. The Leninists who carried out the Bolshevik Revolution maintained that the revolution could only be carried out by a minority vanguard party, that the masses were too ignorant to understand the case for change.

Socialism, like capitalism, can only exist on a global scale, and that it will only come about when a majority of the world’s people want it and are prepared to organise for it peacefully and democratically, in their own interests and without leaders. No vanguard can establish socialism – “the emancipation of the working class must be the work of the working class itself”.

We can do it

But who are the “working class”? Agreeing with Marx, we believe that there are two classes in society – the working class and the capitalist class, each one determined by its relationship to the means of living. The capitalist class own and control the means and instruments for producing and distributing wealth, living as parasites off profits, rent and interest. The working class, other than possessions we have purchased with our own sweat, own little more than our ability to sell our physical and mental abilities to the highest bidder. There is no “middle class” as the working class includes land workers, doctors, lawyers and teachers – anyone, indeed, who must sell their mental and physical energies to survive.

This class, the working class, runs the world and it is important to grasp this fact. It is we who fish the oceans and tend the forests and till the land and plantations. It is we who build the cities and railroads, the bridges and roads, the docks and airports. It is we who staff the hospitals and schools, who empty the bins and go down the sewers. It is we, the working class, who produce everything society needs from a pin to an oil-rig, who provide all of its services. If we can do all of this off our own bats, then surely we can continue to do so without a profit-greedy minority watching over us and, more, in our own interests.

The ruling class, of capitalists and their executive, the governments of the world, have no monopoly on our skills and abilities. These belong to us. Moreover, it is we who are responsible for the inventions that have benefited humanity and the improvements in productive techniques. Most inventions and improvements are the result of those who do the actual work thinking up easier and faster ways of completing a task, the result of ideas being passed down from generation to generation, each one improving the techniques of the previous. If those who work have given the world so much, in the past say 2000 years, then how much more are we capable of providing in a world devoid of the artificial constraints of profit?

Capitalism must go

It is easy to cite the advantages of capitalism over previous economic systems. Many people believe that capitalism, though not perfect, is the only system possible. One thing is certain, though – if we follow the capitalist trajectory, we’re in for some pretty troublesome times. Capitalism has undoubtedly raised the productive potential of humanity. It is now quite possible to provide a comfortable standard of living for every human on the planet. But, to reiterate, capitalism now stands as a barrier to the full and improved use of the world’s productive and distributive forces. In a world of potential abundance, the unceasing quest for profit imposes on our global society widespread artificial scarcity. Hundreds of millions of humans are consigned to a life of abject poverty, whilst the majority live lives filled with uncertainty.

Our ability to imagine has brought us so very far, from the days when our ancestors chipped away at flint to produce the first tools, to the landing of someone on the moon, the setting up of the world wide web, and the mapping out of the human genome. Is it really such a huge leap of the imagination to now envisage a social system that can take over from the present capitalist order of things? Is it just too daring to imagine humans consigning poverty, disease, hunger and war to some pre-historic age?

Do we really need leaders deciding our lives for us? Do we really need governments administering our lives when what is really needed is the administration of the things we need to live in peace and security? Must every decision made by our elites be first of all weighed on the scales of profit, tilted always in their favour? A growing number think not and have mobilised to confront what they perceive to be the major problems of contemporary capitalism.

In recent years there has been a world-wide backlash against neoliberal globalisation, corporate power and the iniquities of modern-day capitalism. Everywhere where the world’s ruling elite have assembled to decide their next step they have been met with protests and demonstrations that have attracted hundreds of thousands. Demonstrations at Seattle, Gothenburg, Prague, Genoa and Gleneagles, for instance, have fuelled the ongoing debate on the nature of modern day capitalism. Thousands of articles have been written on the subject and hundreds of books have been published that explore the alternatives offered by the anti-globalisation movement.

What is now clear is that the anti-globalisation movement, however well-meaning, does not seek to replace capitalism with any real alternative social system. At best it attracts a myriad of groups, all pursuing their own agenda. Some call for greater corporate responsibility. Some demand the reform of international institutions. Others call for the expansion of democracy and fairer trading conditions. All, however, fail to address the root cause of the problems of capitalism.

One thing is certain: capitalism cannot be reformed in the interests of the world’s suffering billions, because reform does not address the basic contradiction between profit and need. The world’s leaders cannot be depended upon because they can only ever act as the executive of corporate capitalism. The expansion of democracy, while welcome, serves little function if all candidates at election time can only offer variations on the same basic set of policies that keep capitalism in the ascendancy.

Capitalism must be abolished if we as a species are to thrive, if the planet is to survive. No amount of reform, however great, will work. Change must be global and irreversible. It must involve all of us. We need to erase borders and frontiers; to abolish states and governments and false concepts of nationalism. We need to abolish our money systems, and with it buying, selling and exchange. And in place of this we need to establish a different global social system – a society in which there is common ownership and true democratic control of the Earth’s natural and industrial resources. A society where the everyday things we need to live in comfort are produced and distributed freely and for no other reason than that they are needed – Socialism.

It is now no utopian fantasy to suggest we can live in a world without waste or want or war, in which each person has free access to the benefits of civilisation. That much is assured. We certainly have the science, the technology and the know-how. All that is missing is the will – the global desire for change that can make that next great historical advance possible; a belief in ourselves as masters of our own destiny; a belief that it is possible to free production from the artificial constraints of profit and to fashion a world in our own interests. And how soon this happens depends upon us all – each and every one of us. (JB)

If you have found the above interesting and would like to find out more, why not visit, as a first step: http://www.worldsocialism.org/spgb/

Marx on the Materialist Conception of History

I post the following as I think it is one of the most succinct and important paragraphs ever penned:

“In the social production of their life, men enter into definite relations that are indispensable and independent of their will; relations of production which correspond to a definite stage of the development of their material productive forces. The sum total of these relations of production constitutes the economic structure of society, the real basis, on which rises a legal and political superstructure, and to which correspond definite forms of social consciousness. The mode of production of material life conditions the social, political and intellectual life process in general. It is not the consciousness of men that determines their being but, on the contrary, their social being that determines their consciousness. At a certain stage of their development, the material productive forces of society come into conflict with the existing relations of production or, what is but a legal expression of the same thing, with the property relations within which they have been at work hitherto. From forms of development of the productive forces these relations turn into their fetters. Then begins an epoch of social revolution. With the change of the economic foundation, the entire immense superstructure is more or less rapidly transformed. In considering such transformations, a distinction should always be made between the material transformation of the economic conditions of production, which can be determined with the precision of natural science, and the legal, political, religious, aesthetic and philosophic - in short ideological forms in which men become conscious of this conflict and fight it out. Just as our opinion of an individual is not based upon what he thinks of himself, so we can not judge of such a period of transformation by its own consciousness; on the contrary, this consciousness must be explained rather from contradictions of material life, from the existing conflict between the social productive forces and the relations of production. No social formation ever perishes before all the productive forces for which there is room in it have developed; and new, higher relations of production never appear before the material conditions of their existence have matured in the womb of the old society itself. Therefore, mankind sets itself only such tasks as it can solve; since , looking at the matter more closely, it will always be found that the task itself arises only when the material conditions for its solution already exist or are at least in the process of formation. In broad outlines, Asiatic, ancient feudal and modern bourgeois modes of production can be designated as progressive epochs in the economic formation of society. The bourgeois relations of production are the last antagonistic form of the social process of production – antagonistic not in the sense of individual of individual antagonism, but of one arising from the social conditions of life of the individuals; at the same time the productive forces developing in the womb of bourgeois society create the material conditions for the solution of that antagonism. This social formation brings, therefore, the prehistory of human society to a close.” (from the introduction to the Critique of Political Economy of 1859)

WAR IS A RACKET

The following is an excerpt from a speech delivered in 1933 by Major General Smedley Butler, USMC. General Butler was one of the few Americans to be twice awarded the Congressional Medal of Honor:

"War is just a racket. A racket is best described, I believe, as something that is not what it seems to the majority of people. Only a small inside group knows what it is about. It is conducted for the benefit of the very few at the expense of the masses.

There isn’t a trick in the racketeering bag that the military gang is blind to. It has its "finger men" to point out enemies, its "muscle men" to destroy enemies, its "brain men" to plan war preparations, and a "Big Boss" Super-Nationalistic-Capitalism.

It may seem odd for me, a military man to adopt such a comparison. Truthfulness compels me to. I spent thirty-three years and four months in active military service as a member of this country’s most agile military force, the Marine Corps. I served in all commissioned ranks from Second Lieutenant to Major-General. And during that period, I spent most of my time being a high class muscle-man for Big Business, for Wall Street and for the Bankers. In short, I was a racketeer, a gangster for capitalism.

I suspected I was just part of a racket at the time. Now I am sure of it. Like all the members of the military profession, I never had a thought of my own until I left the service. My mental faculties remained in suspended animation while I obeyed the orders of higher-ups. This is typical with everyone in the military service.

I helped make Mexico, especially Tampico, safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefits of Wall Street. The record of racketeering is long. I helped purify Nicaragua for the international
banking house of Brown Brothers in 1909-1912 (where have I heard that name before?). I brought light to the Dominican Republic for American sugar interests in 1916. In China I helped to see to it that Standard Oil went its way unmolested.

During those years, I had, as the boys in the back room would say, a swell racket. Looking back on it, I feel that I could have given Al Capone a few hints.The best he could do was to operate his racket in three city districts. I operated on three continents."

CLASS WARFARE

10/11/2006

Book Review

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