Showing posts with label The New Class. Show all posts
Showing posts with label The New Class. Show all posts

Tuesday, November 25, 2014

Lion Rock 17: Photos and Discussions in Reading Club Salon 2014

Here are some photos of the Lion Rock Institute (LRI) 3rd Reading Club Salon (RCS) 2014 held three weeks ago in Hong Kong. Below, our group photo after the morning session, moderated by LRI Chairman Bill Stacey (seated, center). The afternoon session was moderated by Ken Schooland (seated, 2nd from left) of the Hawaii Pacific University. LRI Executive Director, Peter Wong, is standing behind Bill.

Milovan Djilas' book, "The New Class" (1957) was our take off discussion in the morning session. Bill asked something like, "Is there something in Marxism and its class analysis that makes it so appealing to the public and intellectuals?"


Among those who answered Bill's question was Feng Xingyuan (CASS, Unirule, CIPA, in Beijing), standing behind me in the above photo. He reasoned that the term "class" (Marx's capitalist class and working class) is misleading because there are now many "in-between" sectors in society like small entrepreneurs who are also workers and managers of their own small companies, so who exploits whom? 

I agreed with Xingyuan and added that  Marx’s class is indeed misleading and not useful, but Djilas’ concept of a "political class" is useful. Not only in national and local governments political class but also those in the international, multilateral and bilateral bureaucratic class. Good example is the UN, its attached or partner organizations and institutions, in pushing alarmism and more government intervention in crafting climate and energy policies.

Nick Smith (The Link, HK) added that aside from Djilas' bureaucratic class, there is also the managerial class,  An expansion of "class".


Fred McMahon (Fraser Inst., Canada) noted that with global competition, political nepotism has drastically declined in dispensing power and privilege in many countries.

Xingyuan added his observation that the Chinese government's power has increased, there is "methodological individualism", a class of people within the government doing detrimental things. An expansion of the concept of "class" may be ok but “class struggle” is not appropriate. More of “interest struggle” within governments, within businesses.


Here are some points by Djilas in Chapter 3, "The New Class". It talks about huge inequality between the ordinary citizens and the political class, the huge privileges of the latter, a capitalism "disease" that a communist society is supposed to correct, not continue and even exacerbate. This did not happen of course.


And a portion of Chapter 4, "The Party State". Djilas made a quick survey of Marx, Lenin and Stalin, their differences in personality, in one paragraph. Then  the expansion of the communist state under Stalin.


Djilas' book should be read or browsed by current socialists and bleeding heart activists, government and foreign aid bureaucrats and consultants. Their new mantra of "alarming social inequality" points to only one thing -- even bigger governments (local and national) and multilateral institutions (UN, WB, ADB, IMF, etc.) whose main goal is to further redistribute by force and coercion, the wealth and assets of the more hard-working, more efficient, more ambitious sectors of the planet.

This is a different "class" of people. They enjoy the products and innovation of capitalism and individual excellence, then turn around and demonize the free enterprise system, and call for more regulations on top of existing multiple and rigid regulations.

Sincere and non-envious scholars and researchers should not demonize capitalism  and high inequality. Rather, they should demonize policies that prevent the poor from taking advantage of the momentum of innovation and competition. Or create a culture of entitlement, dependency and mendicancy among the poor.

Thanks again to LRI for another stimulating, small group discussions.
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Monday, October 27, 2014

Lion Rock 14: Reading Club Salon 2014, on Class and Inequality

Next week, I will attend the Reading Club Salon 2014, the 3rd annual round table discussion sponsored by the Lion Rock Institute (LRI), Hong Kong's free market think tank. The theme of this year's discussion will be "New Class, New Inequality?"

The theme of the EFN Asia Conference 2014, to be held also next week in the same hotel will be on Liberalism and Inequality. So the LRI event provides additional theoretical discussions to the EFN conference.

Unlike in the previous two Reading Club Salon in 2012 and 2013 where there were many reading materials, this year, there will be only three books to read. The sessions and books for the whole day discussion are:

Session I: Class vs. Inequality
• The New Class by Milovan Djilas (1957), Chp 3, The New Class

Session II: Inequality: Rooted in Economics?
• The New Class by Milovan Djilas (1957) Chp 4, The Party State

Session III: Attempts for an Equal Society: Creation of a New Inequality?
• The Adventures of Jonathan Gullible by Ken Schoolland (1995), Chp 26, 29, 36, 37

Session IV: The Path to a Truly Equal Society
• Healing Our World by Mary Ruwart (1992), Chp 8, 14, 18, 19, 20

And here are the two other books, hard copy.. I first met Ken and Mary in 2007 in Hawaii, during the first Pacific Rim Policy Exchange sponsored by the Americans for Tax Reforms (ATR), International Policy Network (IPN, London), Property Rights Alliance (PRA), LRI and the Grassroot Institute Hawaii (GIH).

From Djilas' book, Chapter 3:

The greatest illusioп vas tћat industrialization апd  collectivizatioп iп the U.S.S.R., апd destructioп of capitalist ownership, would result in а classless society.  Iп 1936, vheп tће new Coпstitutioп was promulgated, Stalin aпnouпced  tћat the "exploiting class"  ћаd ceased to exist. The capitalist and other classes of ancient origiп had iп fact been destroyed, but а new class, previously unkпovn t.o history, had been formed.

It is understandaЬle that this class, like those before it, should believe that the estaЬlishment of its pover vould result in happiness and freedom for all men….

This new class, the bureaucracy, or more accuтately the polltical bureaucracy, has all the characteristics of earlier ones as well as some пеw characteristics of its оwп. Its origiп had its special characteristics also, even tlюugh in essence it was similar to the begiпnings of other classes.

This is a straightforward discussion of the ugly nature of the bureaucratic class. Neither capitalists nor workers. Just plain regulators, tax/revenue collectors and spenders. They are the class that immediately becomes the ruling power after a successful socialist revolution, like what happened in Soviet Russia.

A "classless" society is impossible even in theory because government will always create a group of men and women, elected or appointed, who will command and control the rest of the population what are allowed and not allowed, what kind of penalties and fines to impose on violators, create new regulations and prohibitions  in order to address and correct past government failures.

Djilas continued,

In loose terrпs, as the new class becomes stronger and attains а more perceptible physiognomy, the role of the party diminishes. The core апd tће basis of the new class is created in the party and at its top, as well as in tће state political organs. The once live, corпpact party, full of initiative, is disappearing to Ьесоrпе transformed into the traditional oligarchy of the new class, irresistibly drawiпg into its ranks those who aspire to join tће nеw class and repressing those wћо ћаvе any ideals.

Тће party makes the class, but tће class grows as а result and uses the party as а basis. Тће class grows stronger, wћile the party grows weaker; this is the inescapable fate of every Communist раrtу in power.

As the state grows, the ambitions and desire for power of those who administer the state, the top Party officials and their lieutenants in the various bureaucracies also grow. I am not convinced though that the Communist Party becomes weaker as this political class becomes stronger. The Party is the chief machinery, the provider of institutional legality for the various polcies, programs and regulations of the state in ruling over ordinary mortals.

Discussions to be continued....
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