Keith Bennett gives an interesting presentation on the impact of the world capitalist economic crisis of overproduction upon the economic and social life of socialist countries, at a CPGB-ML seminar held as economic meltdown hit in 2009.
The classic case of a socialist country immune to crisis is provided, he says, by the Soviet Union in the 1930s, whose economic output increased 5-fold while the capitalist world’s declined, mired as it was in the great depression that followed the Wall Street Crash, and dragged on until it fuelled events leading to a second World War.
The Soviet Union, after temporary concessions to capitalism following the destruction of world war one, the civil war, and the war of intervention, put aside Lenin’s ‘New Economic Policy’ and embarked upon full scale collectivisation in the countryside, enabling increased agricultural production and rural prosperity. This in turn allowed the towns to grow, to be fed, and increase their industrial output. It was the economic, cultural and technical development consequent upon its socialist economy that enabled the Soviet Union to defeat German Nazi Imperialism in the Great Patriotic War (WW2) between 1941-45.
Keith goes on to discuss modern China, the inroads of capitalist economics into her social life, the extent to which she always had a dual economy, and the fact that China’s economy, while continuing to expand, has been adversely affected by the declining capacity of the capitalist world to absorb her exports.
Referring to the history of the world economy, Keith points out that Capitalism cannot offer a sustainable source of economic growth, peaceful or stable development, and remains inherently prone to crisis, dislocation, instability and war.
Capitalism, if allowed to flourish in the economic sphere, will inevitably seek political power, and to change the nature of the state to suit its interests, he concludes.