Werewolves of Stalinism: Russia's Capitalists and their System

Modern Russian capitalism has dual origins, in the decay of the Soviet system and in the impact on Russia of world capitalism. An important transformation of the Soviet society, with private appropriation growing up on the basis of state property, became incarnate in today s private property when decisive support was provided by the West for Russia's market reforms. Modern-day private property in Russia bears the birthmark of Stalinism in the violent reality that lies behind the facade of joint-stock companies, and it is because of this reality that the Russian bourgeoisie focuses on the extraction of short-term income in the form of insider rent. The latter is in fact a specific form of surplus value that distinguishes modern Russian capitalism and defines its fundamental character. The business culture that has arisen on this basis is not conducive to long-term investment or to the efficient management of production, while the predatory methods of labour exploitation that are employed serve to ensure that Russian society is characterised by mass poverty and profound social conflict. With private property resting on violence, there is no possibility of creating a real democracy.