McCraw on Communist Versus Capitalist Imperialism

From McCraw’s summary of an article entitled “The Function of Entrepreneurs and the Interest of the Worker” that Schumpeter published in 1927 in a labor magazine :

(p. 384) By the end of the war, every nation in Eastern Europe and most in Central Europe had fallen under the control of the Soviets. They stripped industrial machinery, works of art, gold, and other movable assets from many of those countries and shipped them all to Russia. The total amount stolen equaled in value the aid to Western Europe under the American-sponsored Marshall Plan, the largest foreign aid program in history.

Source:
McCraw, Thomas K. Prophet of Innovation: Joseph Schumpeter and Creative Destruction. Cambridge, Mass.: Belknap Press, 2007.

Cubans Skeptical of Their Government

CubanCellPhone.jpg “Cubans used a cellphone to take photos in Havana recently after Cuba’s government lifted some restrictions on consumer items.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A16) MEXICO CITY — A rare study conducted surreptitiously in Cuba found that more than half of those interviewed considered their economic woes to be their chief concern while less than 10 percent listed lack of political freedom as the main problem facing the country.

“Almost every poll you ever see, even those in the U.S., goes to bread-and-butter issues,” said Alex Sutton, director of Latin American and Caribbean programs at the International Republican Institute, which conducted the study. “Everybody everywhere is interested in their purchasing power.”
The results showed deep anxiety about the state of the country, with 35 percent of respondents saying things were “so-so” and 47 percent saying they were going “badly” or “very badly.” As for the government’s ability to turn things around, Cubans were skeptical, with 70 percent of those interviewed saying they did not believe that the authorities would resolve the country’s biggest problem in the next few years.
The study, to be released on Thursday, was conducted from March 14 to April 12, after Raúl Castro officially took over the presidency.

For the full story, see:

MARC LACEY. “In Rare Study, Cubans Put Money Worries First.” The New York Times (Thurs., June 5, 2008): A16.

(Note: the order of some of the article content differed in the print and online versions; the version above is consistent with the print version.)

Castro’s Legacy Is Fear

CastroPhotosOnWall.jpg “A NATION’S PHOTO ALBUM. The prospect of life without Fidel Castro is unsettling to many Cubans, who are wary of drastic change.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. 1) We arrived not at the fine new airport in Havana I’ve used many times as a correspondent, but at a smaller, more crowded one that Cuba uses for these family visits, as if to rebuke exiles for having left.

Our reunion was delayed, however, by the surprise announcement last Tuesday that Fidel Castro — whose revolution had torn the family apart — was too ill to return to power. Suddenly, I was at work.
. . .
Still, what most surprised us was how little Cubans clamored for drastic change. Dictator or hero, Mr. Castro’s grip on power was ending, and no one seemed to care. Miriam was disappointed that the streets of Matanzas, Havana, San Agustín and Guanabacoa, the working class city across Havana Bay where she grew up, were tranquil, as if nothing at all had happened.
Of course we understood that things are not always as they seem, and that became clear when the maid in our 133-year-old hotel came to mop up the mess caused by a leaking pipe. Hearing the lilt of Miriam’s Spanish put her at ease. After chatting for a few minutes, she poked her head into the hallway to check for supervisors and shut the door. Only then did she speak from the heart.
“Nobody says it, but everybody knows that someone new could be worse than what we have now,” she whispered. It was the kind of dec-(p. 8)laration I’ve learned to trust because it stems from neither fear nor a desire to curry favor.
Despite having plenty of motivation to demand change — the frequent shortages, the decrepit housing, the cruelty of having one currency for tourists and another with far less buying power for Cubans — she said she feared change more than she feared the status quo. Then she checked the hallway again.
. . .
Truth is, things have changed since my first trip to Cuba in 1978. The heavy presence of the Soviet Union then is a faint shadow now, reflected in blue-eyed Cubans named Yuri. There seem to be more new cars on the roads, more fast food on the street, and more buildings undergoing repair. There even seem to be more buses and fewer people waiting for them since Fidel’s younger brother and temporary replacement, Raúl, publicly demanded that something be done about the pitiful mass transit system when I was here just a year ago.
But much has not changed, or has gotten worse. More families live two or three generations in the same cramped apartments. Detention, interrogation and other troubles still descend on people who dissent in ways as small as wearing a plastic wrist band embossed with the word “cambio,” which means change. The press is still controlled, and disloyalty to the Communist Party still raises the suspicion of neighbors that can lead to the loss of a job or a house. Dissidents remain enemies of the state.
. . .
The revolution itself has left many Cubans, including our relatives here, fed up with promises of change. They long ago tired of sacrificing for an ideal tomorrow; when we finally got together, three days after Fidel’s announcement, Miriam’s stepbrothers and sisters told me their main concerns are getting enough to eat, getting shoes for their children and getting to work on time each day.

For the full commentary, see:
ANTHONY DePALMA. “Future to Wince At.” The New York Times, Week in Review Section (Sun., February 24, 2008): 1 & 8.
(Note: ellipses added.)

Chavez Nationalizes Cement in Venezuela

(p. A13) Venezuela said it will take majority stakes in the local units of Cemex SAB, Lafarge SA and Holcim Ltd. as it divulges the first details of a nationalization plan that will affect the world’s biggest cement producers.
The nationalization, announced last week, is designed to deflect criticism that the socialist government of Hugo Chávez isn’t delivering on its promises of new housing and other infrastructure projects, experts said.
“The Venezuelan state will take control of these companies. We told them all three will be subject to this [nationalization] measure,” Oil Minister Rafael Ramirez said on state television.
. . .
Mr. Chávez’s nationalizations have resulted in efficiency declines in the past. For instance, Venezuelan oil production has fallen since major foreign oil-field operators were nationalized.

For the full story, see:
JOEL MILLMAN, RAUL GALLEGOS and DARCY CROWE. “Venezuela Will Take Control of Top Cement Producers.” The Wall Street Journal (Tues., April 8, 2008): A13.
(Note: ellipsis added.)
(Note: the title of the online version is “Venezuela Will Take Control of Top Cement Producers.”)

Global Warming Alarmists “Want Us to Sacrifice Liberty”

KlausVaclavCzechPresident.jpg

President of the Czech Republic, Vaclav Klaus. Source of photo: online version of the WSJ article quoted and cited below.

In addition to his insights into global warming, Vaclav Klaus is an advocate of the work of Joseph Schumpeter.

(p. A9) Mr. Klaus is . . . interested in the politics of global warming. He has written a book, tentatively titled “Blue, Not Green Planet,” published in Czech last year and due out in English translation in the U.S. this May. The main question of the book is in its subtitle: “What is in danger: climate or freedom?”
He likens global-warming alarmism to communism, which he experienced first-hand in Cold War Czechoslovakia, then a Soviet satellite. While the communists argued that we must all sacrifice some freedom in pursuit of “equality,” the “warmists,” as Mr. Klaus calls them, want us to sacrifice liberty — especially economic liberty — to prevent a change in climate. In both cases, in Mr. Klaus’s view, the costs of achieving the goal, and the impossibility of truly doing so, argue strongly against paying a price of freedom.
. . .
In Europe, Mr. Klaus has the reputation of a firebrand, if not a loose cannon. This is a president, after all, who calls global warming “alarmism” a “radical political project” based in a form of “Malthusianism” that is itself grounded on a “cynical approach [by] those who themselves are sufficiently well-off.”
“It is not about climatology,” he insists. “It is about freedom.”

For the full article, see:
BRIAN M. CARNEY. “The Weekend Interview with Vaclav Klaus; The Contrarian of Prague.” The Wall Street Journal (Sat., March 8, 2008): A9.
(Note: ellipsis added.)

Raúl Castro Decrees that Cubans May Now Buy DVD Players, Computers, and Cell Phones

HavanaDVDplayer.jpg “Cubans in Havana recently bought DVD players, among newly available appliances.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A1) HAVANA — Can a rice maker possibly be revolutionary?
There they were, piled up one atop another, Chinese-made rice makers selling for $70 each. Beside them, sleek DVD players. Across the well-stocked electronics store were computers and televisions and other household appliances that President Raúl Castro recently decreed ought to be made available to average Cubans, or at least those who could afford them.
Since finally succeeding his ailing 81-year-old brother, Fidel, in February, Mr. Castro, 76, who appeared before hundreds of thousands of Cubans at a May Day rally on Thursday here in the capital, has been busy with a flurry of changes. In the last eight weeks he has also opened access to cellphones, lifted the ban on Cubans using tourist hotels and granted farmers the right to manage unused land for profit.
More is on the horizon, government officials say, like easing restrictions on traveling abroad and the possibility of allowing Cubans to buy and sell their own cars, and perhaps even their homes. Each of these changes may be microscopic in contrast to the outsize problems facing Cuba. But taken together, they are shaking up this stoic, time-warped place.

For the full story, see:
MARC LACEY. “Stores Hint at Change Under New Castro.” The New York Times (Fri., May 2, 2008): A1 & A8.

Over-generalizing from Our Recent Experience

Rosenberg and Birdzell (1986) mention that Marx over-emphasized the centrality of factories to capitalism, because of the prominence of factories in the period of capitalism during Marx’s adulthood. They suggest that factories are only one phase, albeit an important one, in the development of capitalism.
And Schumpeter and Rosenberg may have done the same in his believe that large corporate labs would be able to routinize innovative entrepreneurial activity.
One relevant passage:

It is understandable that Marx, writing in 1848, should speak of modern industry as already a century old, for many of the institutions of industry in 1848 were already that old. Yet the greatest advances in the output of the capitalist engine of production, and the greatest changes in its modes of organization, still lay ahead. (1986, p. 184.)

Also relevant is the earlier:

In all Western countries, the inventory of physical facilities for economic production changes. The inventory at any given moment is unquestionably important, but it is like a single frame of a movie; taken alone, it misses all the action, and it is the action that we need to understand and that holds the promise of economic advance to non-Western countries. (1986, p. 144.)

Source:
Rosenberg, Nathan, and L.E. Birdzell, Jr. How the West Grew Rich: The Economic Transformation of the Industrial World. New York: Basic Books, 1986.

Stark Artistic Depiction of Chinese Communism

BloodlineTheBigFamily.jpg “Zhang Xiaogang’s “Bloodline: The Big Family No. 3.”” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. B1) BEIJING — Sotheby’s sold $51.77 million worth of Chinese contemporary art in three auctions in Hong Kong on Wednesday, allaying concerns that the global economic slowdown would depress the prices.
. . .
The star of that auction was a 1995 painting by Zhang Xiaogang, one of China’s most prominent artists, which sold for just over $6 million, the highest price ever paid for a painting by a Chinese contemporary artist.
That oil on canvas, “Bloodline: Big Family No. 3,” depicts a family of three during the tumultuous Cultural Revolution in China, when children were sometimes led to denounce their parents. Three collectors bid feverishly for the piece, which sold for far above its high estimate, about $3.4 million.

For the full story, see:
DAVID BARBOZA. “Chinese Art Continues To Soar at Sotheby’s.” The New York Times (Thurs., April 10, 2008): B1 & B5.
(Note: ellipsis added.)

Which Economic System Protects Us from ‘Natural’ Disasters?

CommunistPartyBossOnKnees.jpg “Jiang Guohua, the Communist Party boss of Mianzhu, knelt Sunday to ask parents of earthquake victims to abandon their protest.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A10) One man shouted, “Was this a natural disaster or a man-made disaster?” In unison, the parents shouted back: “Man-made!”

For the full story, see:
JAMES T. AREDDY. “Reporter’s Notebook; Tears and Anger Flow as Parents Cast Blame in Children’s Deaths.” The Wall Street Journal (Tues., May 20, 2008): A10.

(p. A1) DUJIANGYAN, China — Bereaved parents whose children were crushed to death in their classrooms during the earthquake in Sichuan Province have turned mourning ceremonies into protests in recent days, forcing officials to address growing political repercussions over shoddy construction of public schools.
Parents of the estimated 10,000 children who lost their lives in the quake have grown so enraged about collapsed schools that they have overcome their usual caution about confronting Communist Party officials. Many say they are especially upset that some schools for poor students crumbled into rubble even though government offices and more elite schools not far away survived the May 12 quake largely intact.
On Tuesday, an informal gathering of parents at Juyuan Middle School in Dujiangyan to commemorate their children gave way to unbridled fury. One of the fathers in attendance, a quarry worker named Liu Lifu, grabbed the microphone and began calling for justice. His 15-year-old daughter, Liu Li, was killed along with her entire class during a biology lesson.
“We demand that the government severely punish the killers who caused the collapse of the school building,” he shouted. “Please, everyone sign the petition so we can find out the truth.”
The crowd grew more agitated. Some parents said local officials had known for years that the school was unsafe but refused to take action. Others recalled that two hours passed before rescue workers showed up; even then, they stopped working at 10 p.m. on the night of the earthquake and did not resume the search until 9 a.m. the next day.
Although there is no official casualty count, only 13 of the school’s 900 students came out alive, parents said. “The people responsible for this should be brought here and have a bullet put in their head,” said Luo Guanmin, a farmer who was cradling a photo of his 16-year-old daughter, Luo Dan.
Sharp confrontations between protesters and officials began over the weekend in several towns in northern Sichuan. Hundreds of parents whose children died at the Fuxin No. 2 Primary School in the city of Mianzhu staged an impromptu rally on Saturday. They surrounded an official who tried to assure them that their complaints were being taken seriously, screaming and yelling in her face until she fainted.
The next day, the Communist (p. A10) Party’s top official in Mianzhu came out to talk with the parents and to try to stop them from marching to Chengdu, the provincial capital, where they sought to prevail on higher-level authorities to investigate. The local party boss, Jiang Guohua, dropped to his knees and pleaded with them to abandon the protest, but the parents shouted in his face and continued their march.
Later, as the crowd surged into the hundreds, some parents clashed with the police, leaving several bleeding and trembling with emotion.
The protests threaten to undermine the government’s attempts to promote its response to the quake as effective and to highlight heroic rescue efforts by the People’s Liberation Army, which has dispatched 150,000 soldiers to the region. Censors have blocked detailed reporting of the schools controversy by the state-run media, but a photo of Mr. Jiang kneeling before protesters has become a sensation on some Web forums, bringing national attention to the incident.
. . .
. . . all at once the women doubled over in agony, a chorus of 100 mothers wailing over the loss of sons and daughters who, because of China’s population control policy, were their only children. The husbands wept in silence, paralyzed by the storm of emotion.

For the full story, see:
ANDREW JACOBS. “Parents’ Grief Turns to Rage at Chinese Officials.” The New York Times (Weds., May 28, 2008): A1 & A10.
(Note: ellipses added.)

ChinaMotherSon.jpg
“A memorial service for hundreds of students of Juyuan Middle School in Dujiangyan, where a mother held a picture of her son, turned into an angry protest.” Source of caption and photo: online version of the NYT article quoted and cited above.

Putin’s Russia Portrays Stalin, Not as Monster, But as Strong Ruler

(p. 5)  STALIN has undergone a number of transformations of his historical image in Russia, interpretations that say as much about the country’s current leaders as about the dictator himself.

In the West, Stalin is remembered for the numbers of his victims, about 20 million, largely his own citizens, executed or allowed to die in famines or the gulag. They included a generation of peasant farmers in Ukraine, former Bolsheviks and other political figures who were purged in the show trials of the 1930s, Polish officers executed at Katyn Forest, and Russians who died in the slave labor economy. Stalin’s crimes have been tied to his personality, cruelty and paranoia as well as to the circumstances of Russian and Soviet history.

While not denying that Stalin committed the crimes, a new study guide in Russia for high school teachers views his cruelty through a particular, if familiar, lens. It portrays Stalin not as an extraordinary monster who came to power because of the unique evil of Communism, but as a strong ruler in a long line of autocrats going back to the czars. Russian history, in this view, at times demands tyranny to build a great nation.

The text reinforces this idea by comparing Stalin to Bismarck, who united Germany, and comparing Russia in the 1930s under the threat of Nazism to the United States after 9/11 in attitudes toward liberties.

The history guide — titled “A Modern History of Russia: 1945-2006” — was presented at a conference for high school teachers where President Vladimir V. Putin spoke; the author, Aleksandr Filippov, is a deputy director of a Kremlin-connected think tank.

 

For the full commentary, see:

ANDREW E. KRAMER.  "WORD FOR WORD | NEW RUSSIAN HISTORY; Yes, a Lot of People Died, but …"  The New York Times , Week in Review section  (Sun., August 12, 2007):  5.

(Note:  ellipsis in title in original.)

 

Cuba’s Best Doctors Not Blind to Incentives Offered by “Communist” Government

 

   "Patients at the Ramón Pando Ferrer eye hospital in Havana."  Source of caption and photo:  online version of the NYT article quoted and cited below.

 

(p. A4)  Cuban doctors abroad receive much better pay than in Cuba, along with other benefits from the state, like the right to buy a car and get a relatively luxurious house when they return. As a result, many of the finest physicians have taken posts abroad.

The doctors and nurses left in Cuba are stretched thin and overworked, resulting in a decline in the quality of care for Cubans, some doctors and patients said.

 

For the full story, see:   

JAMES C. McKINLEY Jr.  "Havana Journal;  A Health System’s ‘Miracles’ Come With Hidden Costs."  The New York Times   (Tues., November 20, 2007):  A4.