Posts tagged Russia

Sprachkritik: “Privatization”

Left libertarians, like all libertarians, believe that all State control of industry and all State ownership of natural resources should be abolished. In that sense, libertarian Leftists advocate complete and absolute privatization of, well, everything. Governments, or quasi-governmental public monopolies, have no business building or running roads, bridges, railroads, airports, parks, housing, libraries, post offices, television stations, electric lines, power plants, water works, oil rigs, gas pipelines, or anything else of the sort. (Those of us who are anarchists add that governments have no business building or running fire departments, police stations, courts, armies, or anything else of the sort, because governments — which are necessarily coercive and necessarily elitist — have no business existing or doing anything at all.)

It’s hard enough to sell this idea to our fellow Leftists, just on the merits. State Leftists have a long-standing and healthy skepticism towards the more utopian claims that are sometimes made about how businesses might act on the free market; meanwhile, they have a long-standing and very unhealthy naïveté towards the utopian claims that are often made on behalf of government bureaucracies under an electoral form of government. But setting the substantive issues aside, there’s another major roadblock for us to confront, just from the use of language.

There is something called privatization which has been a hot topic in Leftist circles for the past 15-20 years. It has been a big deal in Eastern Europe, in third world countries under the influence of the IMF, and in some cases in the United States, too. Naomi Klein has a new book on the topic, which has attracted some notice. Klein’s book focuses on the role that natural and artificial crises play in establishing the conditions for what she calls privatization. But privatization, as understood by the IMF, the neoliberal governments, and the robber baron corporations, is a very different beast from privatization as understood by free market radicals. What consistent libertarians advocate is the devolution of all wealth to the people who created it, and the reconstruction of all industry on the principle of free association and voluntary mutual exchange. But the IMF and Naomi Klein both seem to agree on the idea that privatization includes reforms like the following:

  • Tax-funded government contracts to corporations like Blackwater or DynCorp for private mercenaries to fight government wars. This has become increasingly popular as a way for the U.S. to wage small and large wars over the past 15 years; I think it was largely pioneered through the U.S. government’s efforts to suppress international free trade in unauthorized drugs, and is currently heavily used by the U.S. in Colombia, the Balkans, and Iraq.

  • Tax-funded government contracts to corporations like Wackenhut for government-funded but privately managed prisons, police forces, firefighters, etc. This has also become increasingly popular in the U.S. over the past 15 years; in the case of prisons, at least, it was largely inspired by the increasing number of people imprisoned by the U.S. government for using unauthorized drugs or selling them to willing customers.

  • Government auctions or sweetheart contracts in which nationalized monopoly firms — oil companies, water works, power companies, and the like — are sold off to corporations, with the profits going into the State treasury, and usually with some form of legally-enforced monopoly left intact after privatization. One of the most notorious cases is the cannibalistic bonanza that Boris Yeltsin and a select class of politically-connected Oligarchs helped themselves to after the implosion of Soviet Communism. Throughout the third world, similar auction or contract schemes are suggested or demanded as a condition for the national government to receive a line of tax-funded credit from the member states of the International Monetary Fund.

  • Yet Another Damn Account schemes for converting government pension systems from a welfare model to a forced savings model, in which workers are forced to put part of their paycheck into a special, government-created retirement account, where it can be invested according to government-crafted formulas in one of a limited number of government-approved investment vehicles offered by a tightly regulated cartel of government-approved uncompetitive investment brokers. This kind of government retirement plan is supposedly the centerpiece of privatization in Pinochet’s Chile, and has repeatedly been advocated by George W. Bush and other Republican politicians in the United States.

Klein and other state Leftists very claim that these government privatization schemes are closely associated with Right-wing authoritarian repression, up to and including secret police, death squads, and beating, torturing, or disappearing innocent people for exercising their rights of free speech or free association in labor unions or dissident groups.

And they are right. Those police state tactics aren’t compatible with any kind of free market, but then, neither are any of the government auctions, government contracting, government loans, and government regulatory schemes that Klein and her comrades present as examples of privatization. They are examples of government-backed corporate kleptocracy. The problem is that the oligarchs, the robber barons, and their hirelings dishonestly present these schemes — one and all of them involving massive government intervention and government plunder from ordinary working people — as if they were free market reforms. And Klein and her comrades usually believe them; the worst sorts of robber baron state capitalism are routinely presented as if they were arguments against the free market, even though pervasive government monopoly, government regulation, government confiscation, government contracting, and government finance have nothing even remotely to do with free markets.

I’d like to suggest that this confusion needs to be exposed, and combated. In order to combat it, we may very well need to mint some new language. As far as I know, privatization was coined by analogy with nationalization; if nationalization was the seizure of industry or resources by government, then privatization was the reversal of that process, devolving the industry or the resources into private hands. It is clear that the kind of government outsourcing and kleptocratic monopolies that Klein et al condemn don’t match up very well with the term. On the other hand, the term has been abused and perverted so long that it may not be very useful to us anymore, either.

So here’s my proposal for linguistic reform. What we advocate is the devolution of state-confiscated wealth and state-confiscated industries back to civil society. In some cases, that might mean transferring an industry or a resource to private proprietorship (if, for example, you can find the person or the people from whom a nationalized factory was originally seized, the just thing to do would be to turn the factory back over to them). But in most cases, it could just as easily mean any number of other ways to devolve property back to the people:

  1. Some resources should be ceded to the joint ownership of those who habitually use them. For example, who should own your neighborhood streets? Answer: you and your neighbors should own the streets that you live on. For the government to seize your tax money and your land and use it to build neighborhood roads, and then to sell them out from under you to some unrelated third party who doesn’t live on them, doesn’t habitually use them, etc., would be theft.

  2. Government industries and lands where an original private owner cannot be found could, and probably should, be devolved to the co-operative ownership of the people who work in them or on them. The factories to the workers; the soil to those who till it.

  3. Some universally-used utilities (water works, regional power companies, perhaps highways) which were created by tax money might be ceded to the joint ownership of all the citizens of the area they serve. (This is somewhat similar to the Czechoslovakian model of privatization, in which government industries were converted into joint-stock companies, and every citizen was given so many shares.)

  4. Some resources (many parks, perhaps) might be ceded to the unorganized public — that is, they would become public property in Roderick’s sense, rather than in the sense of government control.

Now, given the diversity of cases, and all of the different ways in which government might justly devolve property from State control to civil society, privatization is really too limiting a term. So instead let’s call what we want the socialization of the means of production.

As for the IMF / Blackwater model of privatization, again, the word doesn’t fit the situation very well, and we need something new in order to help mark the distinction. Whereas what we want could rightly be called socialization, I think that the government outsourcing, government-backed monopoly capitalism, and government goon squads, might more accurately be described as privateering.

I’m just sayin’.

Update 2007-11-08: Minor revisions for typo fixes, clarity, and to add a link I forgot to add.

Further reading:

Just people: Over My Shoulder #35, Nikolai’s story about work at Chernobyl, from Poor People by William T. Vollman

Here’s the rules:

  1. Pick a quote of one or more paragraphs from something you’ve read, in print, over the course of the past week. (It should be something you’ve actually read, and not something that you’ve read a page of just in order to be able to post your favorite quote.)

  2. Avoid commentary above and beyond a couple sentences, more as context-setting or a sort of caption for the text than as a discussion.

  3. Quoting a passage doesn’t entail endorsement of what’s said in it. You may agree or you may not. Whether you do isn’t really the point of the exercise anyway.

Here’s the quote. This is from chapter 3 of William T. Vollman’s new book, Poor People. It’s a sometimes compelling and sometimes tiresome book; Vollman went around cities in the U.S. and all over the rest of the world, interviewing (urban) poor people in several different countries, bringing back their stories and their answers to questions like Why are you poor? and Why are some people poor and other people rich? The compelling part are the actual stories; the tiresome part, which appears only a little in this passage but a lot more elsewhere, is Vollman’s insistent, neurotic handwringing about his own position as a rich American and his own authorial presence in the tale. (There’s nothing wrong with being upfront about these things; but there’s also nothing interesting in spending 2, 5, or 8 pages musing about your trouble in writing about poor people’s stories, which you could have spent actually letting them talk about their own stories.) Anyway, this passage comes from Vollman’s visit to Russia in 2005, when he met an eighty year old woman in front of a church, who was begging to help support herself and a family of four — her daughter Nina, her son-in-law Nikolai, and two grown grandchildren, Marina and Elena.

Nina, who had been the family’s agent of verification twice in my case (first she telephoned the interpreter to inquire about our motives and resources, and then when I had invited myself into their home she had been the one who emerged from the doorway graffiti’d KISS MY ASS to inspect me), who calmed her husband whenever he got overly worked up against the government, and who seemed to be closest to the two daughters, had originally seemed to me, even taking into consideration Oksana, who in spite of being the breadwinner was after all eighty-one years old and who so frequently wept, the most capable physically, mentally, and emotionally. Nina was a handsome, careful woman who was aging well.

I had no idea that things would turn out this badly, she said. They promised us an apartment in Petersburg. We had no idea; we were actually lied to. We were told that my husband was sent there for construction, not to clean up. We heard about it on the radio, but they told him that he would be at a safe distance from the contamination. He was away for three months. He wrote letters. He was forbidden to let us know that anything was wrong. So I took him at face value; I thought that my husband would never deceive me. His health problems began immediately. He could no longer complete an eight-hour workday, so they proposed to fire him.

And what did you do?

I sat with the children a lot and also taught grade school.

When did you know that something was wrong? I asked.

I knew exactly when they measured me, the man replied. My exposure was nine point four.

And what did you know before they sent you to Chernobyl?

I didn’t know, he said. On my official military ticket they put down that I would only build houses, nothing else.

I had always thought that the USSR was fair to the workers, I said.

That is absolutely not true, he insisted, raising his voice. Fairness to workers is only what they scream about in the newspapers. I have written a letter to Putin. They reply told me to contact the regional authorities who have already ignored me.

The man had lost some of his hair. He was very lanky in his old blue suit, and sported a strangely pale and bony face.

He showed us his card which bore the date 1986, an incorrect year, which meant that he couldn’t prove that he had been at Chernobyl and therefore remained ineligible for compensation. (Here something must have been lost in translation or else Nikolai Sokolov was confused, for the date of explosion was in fact April 1986. Perhaps his part of the cleanup took place in 1987, for he later said: From ‘88 to ‘94 we lived in Volgograd trying to get housing.)

Have you stayed in touch with the other workers?

No, he said.

His wife thought the date to be merely an error. But he was sure that the government wanted all personnel in the cleanup crews to die.

I think that Moscow is responsible, he said. The whole point was to change the situation so that no one is responsible for what they have done to the people.

How are you today?

Unwell, he replied.

His wife said: When he was in the hospital, he got treatment. Then, when he had no more housing, that meant no more treatment…

I produced more radiation than the X-ray machine used to measure my lungs! he cried in proud horror. It was a four and I was a ten, so the X-ray was unsuccessful.

Was your presence dangerous to your family?

The lady who works the machine has to wear a lead apron against level four and I am a level ten, so absolutely. The situation was caused intentionally…

How was your life before Chernobyl?

He stood there folding his arms, thought, then said: My life was stable and very simple. I put in ten hours at the factory. Now I get the shakes and my joints ache. I am a house builder. I build from the bottom up. That is how I was trained, but I branched out into different types of work. Work is work everywhere. I started branching out into factory work and office work but then I started being discriminated against. I wasn’t making the same rate as others—

As I said, there were no more chairs in the Sokolovs’ flat, so he stood. I, the guest, observer and rich man, sat. By now he’d begun to exert a weird effect upon me with his lank hair and bald forehead, his heavy greying eyebrows.

When you went to Chernobyl what did it look like?

Very regulated. We would get on a particular bus, travel to an intermediate area, put on our suits, then go to the main reactor compartment. We would carry armatures and concrete, and pour the concrete. Japan sent robots inside the reactor, but the radiation was so high that those new, shiny robots became useless. They just stood there.

What did it look like inside?

The reactor was already capped with concrete when we got there. But there was a machine tunnel next to it, the mechanical chamber. What had blown out of the reactor in the explosion landed there: walls, pencils, whatever. In the beginning we had to run, not walk, because the radiation was so high. We were in there with shovels wearing masks. We were only there for several seconds at a time. Five seconds per day was what we worked. We would run in, shovel one load into a trench, then run out. The trench was six to eight meters deep. Once the tunnel had been cleared out we were told that it was all right to walk. When the trench had been filled, we pumped concrete over it. Downstairs where we worked, we wore fabric suits. On the roof they wore lead suits. They were better protected.

How many workers did you see?

There were several busloads of people every day, just for our shift.

Why didn’t they just fly over it in an airplane and drop sheets of lead?

Elena, sitting in her chair, brushed her pale hands together and said something bitter in Russian. Meanwhile the man grew more and more loud, leaning forward ever closer. —I’ve asked myself that many times. The reason is that they were too cheap to spend the money and chose instead to expend people.

Elena echoed bitterly: Just people.

It’s war, but people basically end up dead. Our veins are clogged, so they just tell us to drink more vodka, which makes it worse.

How many people have died?

I don’t know. I don’t listen to the radio. I’m tired of listening to fables.

If you hadn’t gone to Chernobyl, what would your life be like today?

I would continue building houses, he shrugged. I would be able to have a decent job, and enough money.

— William T. Vollman, Poor People, pp. 70–73.

Quote for the Day

In our time, political speech and writing are largely the defense of the indefensible. Things like the continuance of British rule in India, the Russian purges and deportations, the dropping of the atom bombs on Japan, can indeed be defended, but only by arguments which are too brutal for most people to face, and which do not square with the professed aims of the political parties. Thus political language has to consist largely of euphemism, question-begging and sheer cloudy vagueness. Defenseless villages are bombarded from the air, the inhabitants driven out into the countryside, the cattle machine-gunned, the huts set on fire with incendiary bullets: this is called pacification. Millions of peasants are robbed of their farms and sent trudging along the roads with no more than they can carry: this is called transfer of population or rectification of frontiers. People are imprisoned for years without trial, or shot in the back of the neck or sent to die of scurvy in Arctic lumber camps: this is called elimination of unreliable elements. Such phraseology is needed if one wants to name things without calling up mental pictures of them. Consider for instance some comfortable English professor defending Russian totalitarianism. He cannot say outright, I believe in killing off your opponents when you can get good results by doing so. Probably, therefore, he will say something like this:

While freely conceding that the Soviet regime exhibits certain features which the humanitarian may be inclined to deplore, we must, I think, agree that a certain curtailment of the right to political opposition is an unavoidable concomitant of transitional periods, and that the rigors which the Russian people have been called upon to undergo have been amply justified in the sphere of concrete achievement.

— George Orwell, Politics and the English Language, 1946

(recommended in an excellent post by Billmon)