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Bourgoisie against Oligarchy
How to build a modern democracy in Russia

by Sergei Mitrokhin

for Novaya Gazeta
January 20, 2011

By Sergei Mitrokhin, Chairman of the YABLOKO party for Novaya Gazeta (a complete version)

Despite our attempts to modernise [in Russia], the fact remains that the fundamental gain of the European civilisation of Modern times - the rule of law - is still inaccessible for Russia today.

In modern Russia universal suffrage is guaranteed, however, the rule of law is absent, because those in power enjoy almost unlimited rights to form and permanently transform the law to their own advantage. In these circumstances, elections are fraudulent, and democracy becomes an illusion.

Disrespect of the law is manifest in the continuous changing of the rules of the game, but also in the arbitrariness of these rules. [There have even emerged such saying as] "the rigidity of Russian laws is compensated by their non-mandatory fulfilment” or "it is not allowed in general, but if you really want, you may." Such a phenomenon as a democracy without the rule of law has already existed in the USSR. There was even universal suffrage, and it went together with the communist dictatorship, covering the latter as a fig leaf.

The sale fig leaf is “concealing” the oligarchic system today. But the mere existence of such a "transferrable" leaf demonstrates succeeding of power which allows us to determine one of the hallmarks of Russia’s "special way".

This particular path of development has many traits, but the most obvious is that it runs past a certain stage of development which has been done by most of the leading countries of the modern world – some did this earlier, others later [but all of them went through this stage].


A Missing Stage

Russia’s "special way" goes past the stage of historical development, which led to the formation of the great triangle of Western modernisation: the bourgeoisie – civil society - the rule of law.

The bourgeoisie more than any other social group has focussed on the establishment of such fundamental principles of the modern Western society as equality of all before the law, individual freedom, freedom of entrepreneurship, etc., that created the conditions for a huge leap in the development made by the Western world.

Civil society is linked to the bourgeoisie even on the level of linguistics. In several European languages "civil" is a synonym of "bourgeois" (for example, Buergergesellschaft in German). It was the bourgeoisie which emerged at the the forefront of the emancipation of the society from under the oppression of the state. The scope of private interests, realised by citizens on their own, without assistance and enforcement from the authorities forms the foundation of the civil society, which guarantees its autonomy with respect to the state.
AN historic achievement of the bourgeoisie in the context of state-building is the creation of conditions for the emergence of democracy as the rule of law, rather than democracy in itself. At a certain historical stage entrepreneurship is liberated from the tough restrictions of the old order, dictating to everyone his or her own place. Among the injustices of this order, you have for example a privilege for a few, close to power circles, to fully engage in business.

The group which has managed to emancipate itself is so large that it makes no sense for it to beg the authorities for handouts, which if distributed among all the group members become insignificant. Due to the fact that this group is very large, it requires equality as a condition for freedom and prosperity rather than privileges.

The bourgeoisie has undoubtedly made a decisive contribution to the formation of Western democracies. Barrington Moore wrote in the last century, "if there is no bourgeoisie, there is no democracy."

The bourgeoisie has followed different paths of development in different nation-states. Some acted in a revolutionary way, other in more peaceful ways. In the 20th century the states of the “catch-up modernisation” organised this process from the top growing the bourgeoisie by means of "artificial insemination". But the output of all these strategies was the same: a public request for the rule of law in which the law would be the same for everyone.

In Russia, successful bourgeois transformations have never been performed - neither by means of "revolution from below" or a "reform from the top."

This is where the main cause of our backwardness (by which I mean an inability to build a modern democracy) lies. Russia has not yet developed a national bourgeoisie, which would guarantee the autonomy of the society in relation to the state and introduce with a "mighty hand" such a value as "equality before the law" into the framework of the political system.

Profound indifference by the society to the principles and mechanisms of the rule of law is explained by the fact that we, with all our missiles and nuclear bombs, have missed the stage where all this could and should have been generated - the division of powers, elections as an urgent social need and society itself as a subject in formation of governments, and not vice versa - and much more, which serves as foundations for the developed state of the 21st century.

In the 20th, Russia had two chances to build a "bourgeois" capitalism society. In 1917 it was missed due to the Bolsheviks, and in the early 1990s – due to the pseudoliberals who created an oligarchy instead of a bourgeoisie.

The Price of Communist Modernisation

The Bolsheviks took the course towards destruction of the bourgeoisie as a class, and chose the proletariat and the poor peasants, the layers furthest away from the bourgeoisie, as a social support for their policies.

The social group capable of leading a movement fighting for the autonomy of the society from the government was slaughtered, and carte blanche was given to the social layers who had the lowest immunity to coercion and manipulation by the state. It is hard to imagine a shorter way towards establishment of an Asian style of despotic rule with its absolute dominance of the state bureaucracy over the society virtually turned into an army of state-owned slaves.

The price paid by Russia for the communist modernisation included not only many millions of victims, but also gave rise to colossal gaps in socio-economic development, which are evident today

In the course of industrialisation the social capital of a traditional society (the peasant culture) was destroyed and the social capital of the industrial (civil) society was deliberately nipped in the bud.
The necrosis of the social tissue of the society manifests itself in the almost complete absence of its ability to self-organise. Political and social participation of citizens is close to nil. Generalised apathy towards elections is a phenomenon developed in line with zero trade unions, weak NGOs, fictitious local and residential self-governments, etc.

The rudiments of totalitarianism (first of all Stalinism) in the public mind presents a serious factor paralysing the society and functioning for the sake of its conservation in a weakened state.

Furthermore, a considerably weakened society is a legacy of the totalitarian past, and may present one of the most dangerous elements that are very difficult to overcome.

The Triumph of the Oligarchy

The emergence of the oligarchy seems to have been largely predetermined by the protracted dominance of the communist regime, which for a record period destroyed the autonomy of the society thereby preventing the emergence of the national bourgeoisie.

A weak society can be seen as a relay baton, which the communist regime handed to the oligarchic regime. Being used to patiently enduring the arbitrary nature of power, the society reconciled with the fact that the government began robbing it.

A weak society can periodically become strong, and as a rule, this happens when the state is weakened. We have witnessed this in the late 1980s - early 1990s when our society eagerly rushed towards the ideals of democracy. The energy of this breakthrough could have been used as a powerful impetus for movement in this direction, if it had been supported by the necessary reforms.

A privatisation programme for small businesses aiming at the creation of mass ownership as a kind of prototype of the bourgeoisie could have played a key role in preventing such a scenario. To this end, the programme should have been conducted gradually and contained mechanisms to prevent rapid concentration of property in the hands of the few.

It could have been possible by pursuing the policy targeted at the formation of a middle class to try and realise the chance of creation of a national bourgeoisie after the collapse of communism. However, the reformers of 1990s did not set such targets.

The resources needed for creating an independent middle class, were used instead to form an entirely different social group - the oligarchy. It was very simple to do this – by means of conducting a large-scale (rather than small-scale) privatisation for a handful of people close to the top, suddenly making them ultra-rich.

This is one of the reasons why the romance of the Russian society, with its democratic ideals ended so quickly and the state went back to its weakened condition, i.e., complete apathy.

Getting the most important levers for economic power and direct control over the state, the oligarchy has continued, although with other methods, the policies of the Communists aiming at the eradication of all the conditions for the formation of a class of independent owners in the country. Indeed, the existence of such a class challenges the existence both of the Communist bureaucracy and of the oligarchs.

These efforts led to a tangible result: perhaps the most odious oligarchic regime in human history was created in Russia in late 1990s.

In 2002, the ten largest private owners controlled over 60 per cent of the capital of the Russian market, more than anywhere else in the world. The share of small business (as of the GDP) through the ten years of "market reforms", was at that time about 10 per cent in Russia compared to 40-50 per cent in other European countries. Today, these ratios have not changed.

By taking over the baton from the Soviet communism, the Russian oligarchy was once again "ahead of the rest of the world."

The Oligarchy against the Bourgeoisie

The oligarchy resembles the bourgeoisie only on the surface as of the trait of earning money through entrepreneurship. But the main differences between them are more significant than the similarities. In fact the oligarchy makes money through benefits (preferential treatment) by the authorities or by means of being close to the authorities. It doesn't aspire to equality before the law, but just the opposite - inequality. The exact meaning of the word [“oligarch”] is "government by the few." If many people try to acquire these privileges, it will not work; the privileges will simply not suffice for all. Therefore, "many" business agents (the bourgeoisie) need a law, while “a few” business agents (the oligarchy) need an opportunity to circumvent the law, or, preferably to shape it in such a way so that to satisfy their own needs.

At the same time ensuring consolidating the rule of a few requires a situation whereby the authority they control is free from restrictions imposed by law. After all, limited opportunities for "the few" leads to increased opportunities for "the plenty [of agents]" undermining the rule of the oligarchy.

Therefore, the nature of the oligarchy envisages that not only it is intertwined with power, but is also interested in its ability to establish arbitrary rule and deviate from the law in the moments when it is needed. The oligarchy, on the one hand, corrupts the state, and on the other creates a fertile ground for authoritarian rule. In the late 1990s a new Russian oligarchy appointed the law enforcement, the security services and the military [siloviki] headed by Vladimir Putin, and they perfectly fit into the "oligarchic basis" of the new system turning it into an authoritarian "superstructure". The period of the "oligarchic anarchy" with its information wars and other "entertainments" could not last too long.

In the 2000s a new type of oligarch emerged. This is an official (often even a security official), whose business is devoid of the classic signs of entrepreneurship and is reduced to grabbing income from the activities of business entities under his control both formally (a state monopoly, a state corporation) or informally, through creation of preferences for the "classical" oligarchs. In Putin's system the "old" and the "new" have arrived at a mutually beneficial coexistence within an oligarchic symbiosis, which ensures that the law serves their interests - against the interests of other social groups, including the middle class.

With respect to the rule of law the bourgeoisie serves as the opposite of oligarchy. For an entrepreneur who is not close to the circles of power, any deviation from the rules of the game leads to loss of income - both his own, and that of other players.

In contrast to the oligarchy, the bourgeoisie is not interested in using the power for the suppression of other social groups. However, we can find a lot of specific facts in history refuting this thesis (i.e., Marxism is based on such facts), but the overall trend is like this. After all, the temptation to resort to arbitrary rule for suppression of other social groups leads to trampling of the principles of the rule of law, which contradicts the main interest of the bourgeoisie.

Although this interest is wholly egocentric, nevertheless, the result of its promotion is important for the society as a whole, since there can be no equality for only one of the social groups. Equality can be either for all or for nobody.

For this reason, trade unions and social democratic parties can really function only within the framework of the bourgeois democracy. Under the rule of law employees enjoy legal opportunities to fight against the bourgeoisie for the expansion of their rights. However, the oligarchy makes such actions very difficult - oligarchs allow the state to draw upon their resources, financial or otherwise, to stop all protests. The oligarchic system has no prospects for formation of either of trade unions or mass-scale social democracy.

The history of many countries which rejected Marxism shows that it is unprofitable for the proletariat to be the gravedigger of the bourgeoisie. Nothing good comes out of this burial, as the experience of the USSR has shown. However, the proletariat gains if the bourgeoisie fulfils its historic mission gradually ceasing to be the proletariat and replenishing the ranks of the middle class.

As for the bourgeoisie, it can successfully act as a gravedigger burying the oligarchy. The oligarchy feels this mortal threat with every fiber of its class instinct.

That is why in modern Russia the role of small and medium businesses is so negligible and the rights of small and medium-sized owners are so weakly protected. Entrepreneurs and owners present no threat in such an amorphous, fragmented and impotent condition, and do not represent the bourgeoisie in any way (from the Marxist point of view as well).

Consequently, the society has no vanguard capable of releasing it from the oppression of the state. In such a condition, the society is doomed to be weak and easily manipulated.


A Fascist Scenario for Russia

In the absence of such a powerful leader as the bourgeoisie, the middle class is not able to fight for power and assert its fundamental rights. This situation leads to increased social discontent of the middle class, which in its turn is a fertile ground for radical right-wing political forces.

The redistributive ideology of the leftist movements is not applicable here. Another issue is the ideology targeted at restoration of a trampled national dignity backed by a figure of a strong leader. Fortunately, there is no such figure in Russia at present, however, it could emerge with time if the present status quo is maintained. A discontented part of the middle class will not follow the teenagers who organised pogroms at the Manege Square in Moscow, however, this resentment is growing daily. However, this part of the middle class may wish to follow serious politicians (not caricatural figures such as Zhirinovsky) who offer a solid political programme. As soon as they determine who holds the reins of power, they willl attempt to bribe and we arrive in the same situation as in the Weimar Republic on the eve of its collapse.

Oligarchy Under the Guise of Democracy

The oligarchy does not have legitimacy in the eyes of its own people and of the world. It is impossible to find voluntary fans of acquisition of revenue via violence on behalf of the state neither in this country nor abroad.

The only way to acquire respectability in the world today when you lack legitimacy to disguise yourself as the bourgeois (liberal) democracy.

The 1990 reforms are considered democratic, and their creators are referred to as "democrats". But a social system in which the economic elite controls all national resources, is certainly not compatible with a real democracy. Therefore, the 1996 presidential election could be termed a direct insult to democracy.

Certainly, the democrats late 1980s - early 1990 did not realise that were paving the way for the most odious oligarchic regime in human history. They thought that they were building a democracy, whereas, in reality they constructed democratic decorations for the oligarchs.

If the democrats of 2010s repeat such a "feat", this will threaten the Russian democracy with a final historic collapse.

The Alternative System

Instead of modernization of the triad (the bourgeoisie – the civil society – the rule of law) there formed a triad of underdevelopment in Russia (the oligarchy - a weak society - the arbitrariness of the state).

It is obvious that the political product of this triad can not be democracy; the economic effect is obviously no development and the social outcome is far from the equality of opportunities.

In order to transform the triad of underdevelopment into the triad of development, we need a policy targeted at changing of the social system, which could be directly called "bourgeois reforms."

Each of these triads is a system. You can not change one element of it without touching the others. A system can be countered only by a system. The policy of system alternatives should focus on the following key areas:

1.Separation of power from business, prohibiting the owners of business entities to hold public office, including elective posts, weakening of the oligarchic clans and ousting them from governing the state and the economy, implementing comprehensive anti-corruption prevention measures in the state apparatus, prohibiting budget subsidies for commercial organizations, liquidation of corporation, organization of anti-corruption expertise of legislation, introducing penalties for corrupt partnership into the Criminal Code taking into account all types of exchange of services between officials and businesses, etc.

2.Formation of national bourgeoisie by securing all possible types of assets (land, real estate), for the middle class, small and medium-sized businesses, redistributing the control over national resources from the oligarchy to a mass layer of owners, guaranteeing property rights, including the smallest types of property and intellectual property; encouraging transfer of land under individual residential construction; legalizing shadow individual and small businesses, liberating the civil society by removing all obstacles to its development piled up in recent times; purging from public consciousness the enslaving and weakening complexes of the totalitarian past, etc.

3. Broadening of the segments where the game is "played by the rules”, which are never changed for different players, establishing a moratorium on changing of the laws that have passed anti-corruption and anti-oligarchic expertise; accede to international conventions, based on European standards and having rigid implementation mechanisms in the territories of parties; returning of international observers to elections and encouraging the increase of their number; specifying criminal penalties for election fraud, etc.

All of these measures marked here only by ‘large strokes’ are feasible only when implemented in a system. This does not mean that they should be simultaneous, but one has to "cling" after another carrying out specific policies but aiming at one goal.

These are just basic steps that should be taken towards real modernization of Russia. And this is the only way to ensure a solid foundation for building of a modern democracy and avoiding of danger to make it a fig leaf for the oligarchy, as happened in 1990s.

See also:

Complete Russian text at YABLOKO's Russian web-site

The original publication in Novaya Gazeta

Modernisation in Russia

 

January 20, 2011

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