STATE CAPITALISM

LENIN; On State Capitalism, During the Transition to Socialism

From FOURTH ANNIVERSARY OF THE OCTOBER REVOLUTION
Our last, but most important and most difficult task, the one we have done least about, is economic development, the laying of economic foundations for the new, socialist edifice on the site of the demolished feudal edifice and the semi-demolished capitalist edifice. It is in this most important and most difficult task that we have sustained the greatest number of reverses and have made most mistakes. How could anyone expect that a task so new to the world could be begun without reverses and without mistakes! But we have begun it. We shall continue it. At this very moment we are, by our New Economic Policy, correcting a number of our mistakes. We are learning how to continue erecting the socialist edifice in a small-peasant country without committing such mistakes.

The difficulties are immense. But we are accustomed to grappling with immense difficulties. Not for nothing do our enemies call us “stone-hard” and exponents of a “firm line policy”. But we have also learned, at least to some extent, another art that is essential in revolution, namely, flexibility, the ability to effect swift and sudden changes of tactics if changes in objective conditions demand them, and to choose another path for the achievement of our goal if the former path proves to be inexpedient or impossible at the given moment.

Borne along on the crest of the wave of enthusiasm, rousing first the political enthusiasm and then the military enthusiasm of the people, we expected to accomplish economic tasks just as great as the political and military tasks we had accomplished by relying directly on this enthusiasm. We expected—or perhaps it would be truer to say that we presumed without having given it adequate consideration—to be able to organise the state production and the state distribution of products on communist lines in a small-peasant country directly as ordered by the proletarian state. Experience has proved that we were wrong. It appears that a number of transitional stages were necessary— state capitalism and socialism—in order to prepare—to prepare by many years of effort—for the transition to communism. Not directly relying on enthusiasm, but aided by the enthusiasm engendered by the great revolution, and on the basis of personal interest, personal incentive and business principles, we must first set to work in this small peasant country to build solid gangways to socialism by way of state capitalism. Otherwise we shall never get to communism, we shall never bring scores of millions of people to communism. That is what experience, the objective course of the development of the revolution, has taught us.

And we, who during these three or four years have learned a little to make abrupt changes of front (when abrupt changes of front are needed), have begun zealously, attentively, and sedulously (although still not zealously, attentively and sedulously enough) to learn to make a new change of front, namely, the New Economic Policy. The proletarian state must become a cautious, assiduous, and shrewd “businessman”, a punctilious wholesale merchant—otherwise it will never succeed in putting this small-peasant country economically on its feet. Under existing conditions, living as we are, side by side with the capitalist (for the time being capitalist) West, there is no other way of progressing to communism. A wholesale merchant seems to be an economic type as remote from communism as heaven from earth. But that is one of the contradictions which, in actual life, lead from a small-peasant economy via state capitalism to socialism. Personal incentive will step up production; we must increase production first and foremost and at all costs. Wholesale trade economically unites millions of small peasants: it gives them a personal incentive, links them up and leads them to the next step, namely, to various forms of association and alliance in the process of production itself. We have already started the necessary changes in our economic policy and already have some successes to our credit; true, they are small and partial, but nonetheless they are successes. In this new field of “tuition” we are already finishing our preparatory class. By persistent and assiduous study, by making practical experience the test of every step we take, by not fearing to alter over and over again what we have already begun, by correcting our mistakes and most carefully analysing their significance, we shall pass to the higher classes. We shall go through the whole “course”, although the present state of world economics and world politics has made that course much longer and much more difficult than we would have liked. No matter at what cost, no matter how severe the hardships of the transition period may be—despite disaster, famine and ruin—we shall not flinch; we shall triumphantly carry our cause to its goal.

14. 1921

Vol. 33, pp. 57-59