On the occasion of Karl Marx’s 200th birthday, the co-founder of communism has received more than a few positive reappraisals, even from Western leaders. But those arguing that Marx cannot be blamed for the atrocities that his ideas inspired should reexamine his ideas... For much of the twentieth century, 40% of humanity suffered famines, gulags, censorship, and other forms of repression at the hands of self-proclaimed Marxists... Marx regarded private property as the source of all evil in the emerging capitalist societies of his day. Accordingly, he believed that only by abolishing it could society’s class divisions be healed, and a harmonious future ensured... Under communism, his collaborator Friedrich Engels later claimed, the state itself would become unnecessary and “wither away.” These assertions were not made as speculation, but rather as scientific claims about what the future held in store... it was all rubbish, and Marx’s theory of history – dialectical materialism – has since been proved wrong and dangerous in practically every respect. The great twentieth-century philosopher Karl Popper, one of Marx’s strongest critics, rightly called him a “false prophet.” And, if more evidence were needed, the countries that embraced capitalism in the twentieth century went on to become democratic, open, and prosperous societies.By contrast, every regime that has rejected capitalism in the name of Marxism has failed – and not by coincidence or as a result of some unfortunate doctrinal misunderstanding on the part of Marx’s followers. By abolishing private ownership and establishing state control of the economy, one not only deprives society of the entrepreneurship needed to propel it forward; one also abolishes freedom itself... Because Marxism treats all contradictions in society as the products of a class struggle that will disappear when private property does, dissent after the establishment of communism is impossible.By definition, any challenge to the new order must be an illegitimate remnant of the oppressive order that came before... Marx showed almost no interest in people as they actually exist. “Marxism takes little or no account of the fact that people are born and die, that they are men and women, young or old, healthy or sick,” he writes. As such, “Evil and suffering, in his eyes, had no meaning except as instruments of liberation; they were purely social facts, not an essential part of the human condition.”.. Xi views China’s economic development over the past few decades as “cast iron proof” of Marxism’s continued validity.But, if anything, it is exactly the other way around.it was the China of pure communism that produced the famine and terror of the “Great Leap Forward” and the “Cultural Revolution.” Mao’s decision to deprive farmers of their land and entrepreneurs of their firms had predictably disastrous results, and the Communist Party of China has since abandoned that doctrinaire approach.Under Mao’s successor, Deng Xiaoping, the CPC launched China’s great economic “opening-up.” After 1978, it began to restore private ownership and permit entrepreneurship, and the results have been nothing short of spectacular... If China’s development is being held back by anything today, it is the remnants of Marxism that are still visible in inefficient state-owned enterprises and the repression of dissent.
Angela Merkel warned against growing government intervention in international trade: “If we are of the opinion that things are simply not fair, then we have to seek multilateral answers and not pursue a unilateral protectionist course where we isolate ourselves.” She was largely defending the Washington Consensus , a catchall term that suggests politics and economics ought to inhabit separate spheres. This is the orthodoxy upon which the current international order is based.
But that consensus is coming apart because, more than ever, state-led capitalism works — and it is here to stay. China’s consolidation of its state-owned enterprises (SOEs), Russia’s oligarch-led economy, the proliferation of sovereign wealth funds (SWFs) and growing government intervention in the West are clear indicators of state-led capitalism’s success.
.. Moscow is able to use these corporations for political ends: threatening gas supplies to keep European governments compliant, for instance, or directing energy revenue to finance military development.
.. The Sovereign Wealth Fund Institute reports that there are dozens of SWFs, including 24 created in the past decade, which collectively control more than $7 trillion in assets.
.. SWFs are an important feature of today’s global economic landscape; governments also use them as agents of statecraft. SWFs in the Persian Gulf region, for instance, are investing in Russia because of concerns about America’s regional staying power, and they are deepening ties with Muslim countries in Southeast Asia to ensure export markets and potentially to facilitate counter-radicalization initiatives... And in the United States, President Trump has bragged that he personally influences firms’ decisions about where to place their factories... This is a dramatic reversal of the trend from two decades ago.
.. But a number of factors led to skepticism about free markets. One was the underwhelming developmental effect of SAPs and liberalization.A further blow to the neoliberal model was a series of financial disasters caused by unrestricted flows of capital, notably the 1997 Asian financial crisis and the 2008 global financial crisis.Perhaps the factor that has most undermined neoliberalism’s attractiveness, though, is the persistent power of countries with state-led economies, such as China and Russia... We are not seeing a “universalization of Western liberal democracy” and free-market capitalism, as Francis Fukuyama predicted