16, జనవరి 2012, సోమవారం

An Introduction To Marx’s Capital—Part-6


(This is based on and mostly from “Marx’s Capital” written by Ben Fine and Alfredo Saad-Filho)

                            (For Part-5, please see the blog entry dated 15-1-2012)

Chapter-2—Commodity production


Labour Theory of Value

a)      Labour Theory Of Value and How It Has To Be Judged


1.      Marx is renowned for his commitment to the labour theory of value which says that the value of a commodity is equal to the labour time socially required to produce it.

2.      Two main issues debated over this labour theory of value are (a) whether Marx has unduly privileged labour in some way by adopting this labour theory of value, and, (b) how well this this labour theory of value serves as a theory of prices.


3.      Marx’s value theory should be judged on thee basis whether the economic relations, processes and structures that prevail in capitalist society are properly reflected by it in thought.


b)      Different views  on the economic organisation


4.      The division of labour and production of use values (useful things like food, clothing, houses etc and immaterial products like educational, health and other personal services) are the enduring features of any human society except the simple primitive societies.

5.      But who produces what and how, and with what implications for society are crucial questions across the social sciences.

6.      Different answers are given by different ideologies, ranging from self interest to the idea of necessity as the mother of invention.

c)      The view of the mainstream economics


7.      The mainstream economics has taken the need for consumption justifying a universal method in which economics is a science concerned with the allocation of scarce resources to meet insatiable needs.

8.      Mainstream economics holds the view that the organisation of economy through market, state, household, slavery, capitalism etc is only a matter of detail with the fundamental principle being the duality of scarcity and need.

9.      The yardstick of the efficiency of any economic organisation is how best it solves this problem of scarcity and need.

d)      The view of Marx


10.  In contrast to this view of the mainstream economics, for Marx, social, especially class relations (slave owner and slave, feudal lord and peasant, capitalist and wage labourer) are essential in distinguishing one economy from another economy as well as differences with in the economy.

11.  Class relations are based on property relations (capitalist owns means of production whereas wage labourer owns nothing except his labour power) and distributional relations (capitalist gets profit, wage labourer gets wage. Wages are advanced as a pre-condition of production and profits are the result of production) and how the ownership gives rise to forms of control over labour and production (Since capitalist owns means of production, he is able to employ the wage labourer who has no such means of production and utilises the labour power of the labourer for producing commodities).

12.  A crucial feature of capitalism is that it is a highly developed system of commodity production. What is its significance?

We will discuss about the commodities in our further study.


15, జనవరి 2012, ఆదివారం

An Introduction To Marx’s Capital—Part-5


(This is based on and mostly from “Marx’s Capital” written by Ben Fine and Alfredo Saad-Filho)

                            (For Part-4, please see the blog entry dated 14-1-2012)

Summary of Chapter-1, “History and Method”

The first 4 parts uploaded in my blog so far consist of the chapter 1 of the book “Marx’s Capital” written by Ben Fine and Alfredo Saad-Filho. This chapter is titled in the book as “History and Method”.  Before going to read the chapter2, let us summarise this first chapter.

A brief Life History of Karl Marx

Karl Marx was born in the town Trier in Germany (Prussia at that time) on 5-5-1818, in a well to do family and was educated in the best universities at that time-Bonn and Berlin. He studied History and Philosophy and obtained a Doctorate in Philosophy. He turned to radicalism and due to his activities he was banished from Germany, France, Belgium and finally he settled in London in 1849 and lived there till his death on 14-3-1883. He dedicated his life for pursuing the cause of revolutionary transformation of capitalist society through his writings and through the agitation and organisation of the working class. His wife Jenny Von Westphalen belonged to a noble family, but she stood along with him and became a true colleague and comrade in facing all the difficulties along with him. Due to the severe poverty faced by him, he lost 3 of his daughters in their childhood.

Marx’s book ‘Capital” was in 3 volumes. The first volume was published in 1867 when Marx was alive. But the second and third volumes were published in 1885 and in 1894respectively. Both the volume-II and volume-III were prepared by Engels, based on the notes left by Marx. Engels was a colleague, friend and comrade of Marx and together, they have written several books.

The three sources of the thought of Karl Marx

a)      The German Philosophy and the development of Marx’s philosophy on that basis
When he was a student, Marx was a follower of the famous German philosopher at that time, Hegel. Hegel was an objective idealist.   An idealist in philosophy is one who holds the view that it is the idea which is the cause and mover of the world. An objective idealist is the idealist who believes that the idea that causes and moves the world is the idea that exists outside the thinking head of the philosopher. ( A subjective idealist is the one who believes that the world is created and moved by his idea). Hegel believed that the idea is having opposing aspects in it and due to the contradiction and struggle between these opposing aspects, the idea gets itself transformed itself in a revolutionary way to a next higher stage and this process of revolutionary transformation of the idea to higher and higher stages through the struggle of the opposites in it goes on until it reaches the stage of Absolute Idea, after which it will not undergo the change any further. This transformation is not a simple destruction of the old stage, but it is an absorption and transformation of the elements of the old stage.  Hegel called this process in which the new ideas do not defeat the old as resolve conflicts or contradictions with in them, the dialectic.  According to him the phenomena and developments in nature and society are a copy, that too, a poor copy of this ever changing idea.

When Marx was a student, the followers of Hegel were split into two groups. The “Old Hegelian” group held the view that the dialectical development of the Idea reached the final stage in the contemporary Prussian Monarchy. The other group “Young Hegelians” held the view that the dialectical progress of the Idea had far to advance. For a short time, Marx was with the “Young Hegelians.” But soon, he was influenced by thee materialist philosophy of Feurbach. Here materialism means not clinging to material comforts, but holding the view that it is the matter and material conditions that cause and move the  idea. Feurbach held that humans created God to satisfy their emotional need and projected all their best qualities upon the God figure and finally the God thus created by humas assumed an independent existence in human consciousness. He told that to regain their humanity, people need to substitute the love of each other for the love of God. But why at all the emotional need for God arose, and in what conditions that emotional need will end  was not answered by Feurbach.

Marx developed this materialism of Feurbach beyond religion to the understanding of society as a whole, and to the understanding of history. Marx came to the conclusion that human consciousness, ideas and ideology have to be understood in their relation to the prevailing material and social condition. As the material and social conditions change, the ideas and ideologies will change.  The consciousness, ideas and ideologies of human beings in Feudal society are different from the consciousness, ideas and ideologies in the Capitalist society. The consciousness, ideas and ideologies during the struggle for independence in our country is different from the present day ideologies. Consciousness is primarily determined by material conditions. But the material conditions themselves change and develop dialectically through human history, that is through the conflict among different classes in the human society.

Marx held that there are no set of universal rules applicable for understanding human societies. Specific application of the materialist dialectics (materialist dialectics is the method of reasoning required to understand the ever changing material reality through the process of the struggle of the opposites in it and its consequent transformation into a new higher reality) has to be developed in order to address each problem. The best known example of the application of Marx is his critical examination of capitalism in his book Capital. In this work, Marx’s approach has five important broad features. They are:

1.      The method for understanding human societies and changes in the societies is not a fixed set of rules applicable for all societies, but social phenomena have to be understood in their historical context. Generalisations said to be valid every where and for all times are meaningless and invalid.

2.      The concepts useful for understanding one society having a particular mode of production are not useful for understanding another society with a different mode of production.


3.      Reality exists materially and historically, outside the thinking head of the analyst and in a process of change and development. It is shaped by the social structure, tendencies and counter tendencies in it and unpredictable contingencies. Materialist dialectics helps in understanding the past and the present, but it is impossible to foretell the future.

4.      Marx employs materialist dialectics to pinpoint the essential features of the capitalism and their contradictions (mutually opposing tendencies), to explain the dynamics (the causes for the movement and development) of the capitalist mode of production and to identify the sources in the capitalist society which are potentially capable of or will lead to the revolutionary transformation of capitalist society to a higher stage of production, to a higher stage of society. Marx evolved concepts for helping us to reconstruct the realities of capitalist system in our thought. These concepts help us to understand what are the strengths and the critical vulnerabilities (weaknesses that will lead to its end) of the capitalist system.


5.      Marx’s method focuses on historical change. Social change is determined  by the relation of mutual determination between technology, the social relations between various classes in the society and the struggle between these classes (example-the capitalist class, working class, peasants, landlords, agricultural labourers etc)  in the  society.

b)      The influence of French Socialism on Marx

 In the French revolution took place during  1789, the emerging bourgeoisie class (comprising of  capitalists, traders and professionals, and intellectuals) came to political power by overthrowing the King and feudal nobles. This they were able to do by mobilising the urban workers and rural peasants, by the slogan liberty, equality and fraternity. The king was executed; lands of the nobles and the church were confiscated and distributed to small peasants. The state was separated from the Church and the state was declared as secular, without any link to religion. But after the revolution and seizure of political power, the bourgeoisie did not go further to bring economic equality. The oppression of the worker and peasant continued. The French socialists were inspired by the radicalism of the French revolution and further compelled to think about the future since the bourgeoise failed to  implement the demand of liberty, equality and fraternity. Many of them believed in the necessity and possibility of revolutionary seizure of political power by the workers in order to establish a just and equal society. The influence of the French Socialists helped Marx to understand the struggle taking place between the various classes in the society and the revolutionary potential of the working class.

c)      The influence of the British Political Economy on Marx and the development of his economic theory on that basis

 Political economy is the study of the production, buying, selling,and their relations with the law, custom, government and distribution of national wealth including the budget. After his settlement in London in 1849, Marx turned his study to economics in order to understand contemporary capitalist society, and identify its strengths and limitations and its potential for transformation into a socialist society. He particularly developed the labour theory of value from the writings of the classical British political economists Adam Smith (1723-1790) and, especially David Ricardo (1772-1823).

 These classical political economists held that the value of a commodity depends upon the quantity labour required to produce it. At the same time these classical political economists held that the human beings are having certain timeless characters like greed and they further held that the categories commodities, wages, prices, profits etc  are having timeless existence since the beginning of human societies and they will be there like that in future also. Karl Marx questioned these assumptions and tried to understand these categories of commodities, wages, prices, profits etc in their historical context, that is, in their origin, development and demise. He decided further to develop the labour theory of value since he found it insufficient.

Marx argued that society always has the need to work in order to produce and consume. While thus producing the material requirements, people enter into definite relations with each other, as slave or master, lord or peasant, capitalist or wage worker etc. These are the places to be filled up by the individuals in the process of production, independently of their individual choice. These relations are established in the course of historical development of production. These relations of production which people undergo are best studied as class relations, except in the primitive tribal societies where there are no division of labour and classes. A particular set of class relations is the foundation of a particular mode of production—capitalism has the class relations of production—capitalist and wage worker. Feudalism has the class relation of production—the feudal lord and the peasant who has no independence. The slave societies have the class relations of production—slave owner and slave. These relations were established in the course of historical development of production.

These class relations are the basis on which the concerned society constructs its state, its legal system, its morals, its religion and its education system etc. Freedom to buy and sell is a fundamental legal characteristic of capitalistic society. In feudal society, divine rights of the kings and lords were the legal foundation. Self justified political, legal, intellectual forms are established to justify the existing society. These blinker and discourage all other views except the most conventional view of society, whether by force or by habit or otherwise. The peasant in feudal society was bound by loyalty to the lord or king and any vacillation could be punished severely. The wage earner has the freedom and compulsion to sell his labour power. He is free to sell his labour power to any capitalist by bargaining. But inorder to survive, he has the compulsion to sell his labour power. There can be struggle for higher wages, but this does not question the wage system itself. The mindset will be nurtured and prepared in the capitalist society in such a way that the wage system is assumed as natural and eternal. The probing into the nature of the capitalist system is frowned upon by the authorities. Whereas individual dissent is often tolerated, the anti capitalist mass movements are invariably repressed.

Marx’s value theory of labour is a penetrating contribution to social science in that it concerns itself with the relations that people set between themselves, rather than the technical relationship between things or the art of economising. Marx is not interested primarily in constructing a price theory, a set of efficiency criteria or a series of welfare propositions; he never intended to be a narrow ‘economist’ or even a political economist. Marx was a critical social scientist, and his works reject the barriers separating academic disciplines.

Marx was concerned with the critical questions concerning  the sources of stability and crises in capitalism, and how the will to change it can develop into a successful transformative (revolutionary) activity. These questions remain valid into the twenty first century, and now, the present recession and crises faced by all the advanced capitalist countries forcefully bring these questions into focus—whether the capitalism has the crisis in built or as accidental and what are the possibilities for transforming capitalism by a revolution into a higher stage, socialism.















14, జనవరి 2012, శనివారం

An Introduction To Marx’s Capital—Part-4


(This is based on and mostly from “Marx’s Capital” written by Ben Fine and Alfredo Saad-Filho)


(For Part-3, please see the blog entry dated 13-1-2012)

Besides the German philosophy, another influence on Marx was the French Socialism. In the French revolution took place during  1789, the emerging bourgeoisie class (comprising of  capitalists, traders and professionals, and intellectuals)which did not have political power, mobilised the urban workers and rural peasants and  revolted against the king,  nobles, and the church. In this revolution the political power was seized by the bourgeoisie and the monarchy (rule of the king), the domination of the nobles and the church was abolished. The king was executed; lands of the nobles and the church were confiscated and distributed to small peasants. The state was separated from the Church and the state was declared as secular, without any link to religion. The bourgeoisie mobilised the workers and peasants under the slogan liberty, equality and frarnity. But after the revolution and seizure of political power, the bourgeoisie did not go further to bring economic equality. The oppression of the worker and peasant continued. The French socialists were inspired by the radicalism of the French revolution. But they noted the failure of the bourgeoise to implement the demand of liberty, equality and fraternity. Many of them believed in the necessity and possibility of revolutionary seizure of political power by the workers in order to establish a just and equal society.

The third source for the development of the ideology of Marx was the British political economy. Political economy is the study of the production, buying, selling,and their relations with the law, custom, government and distribution of national wealth including the budget. After his settlement in London in 1849, Marx turned his study to economics in order to understand contemporary capitalist society, and identify its strengths and limitations and its potential for transformation into a socialist society. He particularly developed the labour theory of value from the writings of the classical British political economists Adam Smith and, especially David Ricardo. The labour theory of value was stated by David Ricardo as, “ The value of a commodity, or the quantity of any other commodity for which it will exchange, depends on the relative quantity of labour which is necessary for its production, and not as the greater or less compensation which is paid for the labour” (Ricardo, 1817).

Marx found that these classical economists were wrong in content (for example, the commodities do not often exchange at the value of their labour time of production) and inadequate in their intent( they have not asked and answered the question why the commodities are there at all. They assumed certain timeless features for humans and societies. Therefore he was determined to understand the historical context of commodities, wages, and prices, profits in their origin, development and demise.  He also was determined to develop the labour theory of value further.

Society always has the need to work in order to produce and consume. But how this production is organised has to be revealed both structurally and historically ( Means how the society was organised in different forms in the history for organising the production). Marx argues that when working—producing the material conditions for their individual and social reproduction (production of the materials and services required for individual and social sustenance and continuous reproduction of human beings and society)---people enter into definite relations with each other, as slave or master, lord or serf (peasant without independence and tied to a lord) capitalist or wage earner, and so on. Patterns of life are determined by existing social conditions, in particular the places to be filled by the individuals in the process of production. These relations –capitalist or wage worker, etc-are existing independently of individual choices. But they are established in the course of the historical development of production.

The social relations of production specific to a particular mode of production (feudalism, capitalism and so on) are best studied as class relations (capitalist or worker, landlord or peasant, slave or slave owner) except in primitive society where there are no classes. These class relations are the basis on which the society is constructed. Freedom to buy and sell is a fundamental legal characteristic of capitalistic society. In feudal society, divine rights of the kings and lords were the legal foundation. Self justified political, legal, intellectual forms are established to justify the existing society. These blinker and discourage all other views except the most conventional view of society, whether by force or by habit or otherwise. The peasant in feudal society was bound by loyalty to the lord or king and any vacillation could be punished severely. The wage earner has the freedom and compulsion to sell his labour power. He is free to sell his labour power to any capitalist by bargaining. But inorder to survive, he has the compulsion to sell his labour power. There can be struggle for higher wages, but this does not question the wage system itself. The mindset will be nurtured and prepared in the capitalist society in such a way that the wage system is assumed as natural and eternal. The probing into the nature of the capitalist system is frowned upon by the authorities. Whereas individual dissent is often tolerated, the anti capitalist mass movements are invariably repressed.

In this context, Marx castigates the classical political economists for assuming that certain characteristics of human behaviour, like greed, are permanent features of ‘human nature’ when, in reality, they are characters generated in individuals by particular societies. They also took it for granted the features of the capitalist society for granted, ever existing—like monopoly of the means of production by a few, wage employment for the majority, the distribution of products by the means of exchange, and the remuneration involving the economic categories of prices, profits and wages. Marx felt that it is necessary to see these features in their origin and development and demise.

Marx’s value theory of labour is a penetrating contribution to social science in that it concerns itself with the relations that people set between themselves, rather than the technical relationship between things or the art of economising. Marx is not interested primarily in constructing a price theory, a set of efficiency criteria or a series of welfare propositions; he never intended to be a narrow ‘economist’ or even a political economist. Marx was a critical social scientist, and his works reject the barriers separating academic disciplines.

The crucial questions for Marx concern the sources of stability and crises in capitalism, and how the will to change it can develop into a successful transformative (revolutionary) activity. These questions remain valid into the twenty first century, and now, the present recession and crises faced by all the advanced capitalist countries forcefully bring these questions into focus—whether the capitalism has the crisis in built or as accidental and what are the possibilities for transforming capitalism by a revolution into a higher stage, socialism.

(These 4 parts I uploaded in the blog so far comprise the first chapter “ History and Method”  in the book “Marx’s Capital”by Ben Fine and Alfredo Saad-Filho. Tomorrow, we will summarise this first chapter.)

13, జనవరి 2012, శుక్రవారం

An Introduction To Marx’s Capital—Part-3


(This is based on and mostly from “Marx’s Capital” written by Ben Fine and Alfredo Saad-Filho)


(For Part-2, please see the blog entry dated 12-1-2012)

Marx’s method

Marx’s method is not a fixed set of universal rules to be applied in all contexts. Specific application of the materialist dialectics (materialist dialectics is the method of reasoning required to understand the ever changing material reality through the process of the struggle of the opposites in it and its consequent transformation into a new higher reality) has to be developed in order to address each problem. The best known example of the application of Marx is his critical examination of capitalism in his book Capital. In this work, Marx’s approach has five important broad features. They are:

  1. Social phenomena can be understood only in their historical context. Generalisations supposed to be valid every where and for all time, are meaningless and invalid. Societies are distinguished by the mode of production under which they are organised.  For example feudalism is the society dominated by kings, jamindars and landlords where the peasant pays tax to  to the lord, extends several free services to the lord  or works for some days for himself and some days for the lord freely . It is opposed to capitalism where the worker is legally free to sell his labour power to this or that capitalist or Capitalist Corporation. Capitalist is not a feudal lord receiving profit in place of tribute or free service.  A wage labourer is not a peasant who happens to be paid for his labour.  Each mode of production is structured according to its class relations, that is, the relation between the feudal lord and the peasant in feudalism, and the relation between the capitalist and the worker in capitalist society.


  1. Theory loses its validity if pushed beyond social limits. The concepts to be drawn out from a particular society to understand it are different from the concepts to be drawn out from another society to understand that society. Marx claims that in capitalism, the worker produces more value than the value he appropriates (takes possession of ) through his wage. This value produced by the worker over and above the value of his wage, is the surplus value. The capitalist appropriates this surplus value. Thus surplus value is produced by the worker, but appropriated (taken possession of ) by the capitalist. This is the exploitation in capitalist society. But to understand the exploitation in feudal society or in slave society, different concepts other than the wage, capital, surplus value etc are required. The analysis of capitalism does not provide the principles for understanding a different society.


  1. Reality exists historically, that is, it was different yesterday from what it is today and from what it will be tomorrow. Reality exists materially, that is, it exists outside the analyst’s thinking head. Therefore reality has to be understood historically and materially. Idealism (developing the idea, concept, without any link to reality) errs because it seeks to explain reality by concepts not related to the history and materiality of the reality. Marx recognizes that reality is shaped by the social structure and tendencies and counter tendencies ( which can be understood dialectically) as well as unpredictable contingencies (which cannot be so understood).  Consequently, although materialist dialectics  can help understand both the past and the present, it is impossible to foretell the future (Marx’s law of the tendency of the rate of profit to fall and the counter tendency is an example in this regard.)

  1. Materialist dialectics identifies the key concepts, structures, relationships and levels of analysis required for the explanation of the concrete (means a specific reality). In Capital, Marx employs materialist dialectics to pinpoint the essential features of the capitalism and their contradictions (mutually opposing tendencies), to explain the dynamics of the capitalist mode of production and to locate the potential sources of historical change, that is, the sources in capitalist society potentially capable of transforming it to a higher stage of production.The concepts evolved by Marx help to reconstruct the realities of the capitalism in thought. These concepts help to explain the historical development of capitalism and indicate its critical vulnerabilities. Theoretical progress includes the introduction of new concepts, the refinement of existing concepts to a higher level and complexity and the historical evidence to provide a richer and more specific account of the reality.


  1. Marx’s method focuses upon historical change. In the  bookds Communist Manifesto, the preface to the Contribution to the critique of political economy and the introduction to the Grundrisse, Marx famously summarises his account of the relationship between structures of production (capitalism, feudalism, slave society, primitive society), social relations (relations between classes-feudal lord and peasant in feudal society, capitalist and worker in capitalist society etc) and historical change. There is a relationship of mutual determination between technology, society and history (and other factors), but in ways which are invariably influenced by the social organisation (mode of production). For example, under capitalism, technological development is primarily driven by the profit imperative across all commercial activity. Under Feudalism, the production of luxury goods and (military) services and to a certain extent, agricultural implements, is paramount, which, in the absence of the profit motive, limits the scope and pace of technological advance. In contrast, Marx argues that in the future communist societies technological development would seek to eliminate repetitive, physically demanding, unhealthy and unsafe tasks, reduce overall labour time, satisfy basic needs and develop human potential.

Summary of Marx’s method

a)      Social phenomena have to be understood in their historical context. Generalisations said to be valid every where and for all times are meaningless and invalid. In the history, human societies are organised differently with different modes of production—primitive societies, slave societies, feudal societies, and capitalist societies and the capitalist societies are liable to transform into higher forms of societies.

b)      The concepts useful for understanding one society having a particular mode of production are not useful for understanding another society with a different mode of production.


c)      Reality exists materially and historically, that is, outside the thinking head of the analyst and in a process of change and development. The social reality is shaped by the social structure, tendencies and counter tendencies in it and unpredictable contingencies. Materrialist dialectics helps in understanding the past and the present, but it is impossible to foretell the future.

d)      Materialist dialectics is the method of reasoning required to understand the ever changing material reality through the process of the struggle of the opposites in it and its consequent transformation into a new higher reality. Marx employs materialist dialectics to pinpoint the essential features of the capitalism and their contradictions (mutually opposing tendencies), to explain the dynamics of the capitalist mode of production and to locate the potential sources of historical change, that is, the sources in capitalist society potentially capable of transforming it to a higher stage of production.The concepts evolved by Marx help to reconstruct the realities of the capitalism in thought. These concepts help to explain the historical development of capitalism and indicate its critical vulnerabilities.

e)      Marx’s method focuses on historical change. Social change is determined  by the relation of mutual determination between technology, society and history, but invariably influenced by the mode of social organisation.

How Marx evolved his economic theory using this method, let us see tomorrow.



12, జనవరి 2012, గురువారం

An Introduction To Marx’s Capital—Part-2 (This is based on “Marx’s Capital” written by Ben Fine and Alfredo Saad-Filho)


(For Part-1, please see the blog entry dated 11-1-2012)

The Intellectual Development of Marx and His Philosophy

Throughout his life Marx pursued the revolutionary transformation of capitalist society, through his writings and through agitation and organisation of working class. He attempted to understand the process of historical change, that is, how the society changes from one stage to another stage, and to apply this understanding to particular types of societies and to make concrete study of specific historical situations.

Let us now briefly know about the intellectual development and the philosophy of Marx and the main features of his method.

Marx’s Philosophy

When Marx was a student, the philosophy in Germany was dominated by Hegel and his followers. Hegel was an idealist, that is, he believed that it is the idea that causes and moves the nature and society. But this is not the idea of human beings, but an idea existing independent of the consciousness and thinking of the human beings. Hence he is an “objective idealist”.  The world, the nature, the society and the thinking of human beings is the outcome of this idea which is ever changing from one stage to another stage. This change and movement of this idea is to finally reach the stage of Absolute Idea. At every stage the idea has conflicting aspects in it and the conflict among these aspects can be resolved only by transforming into a new stage. The new stage also will contain new aspects of conflicting elements, the seeds of its own transformation into a higher stage, and the conflict will be resolved by the transformation into a higher stage. Thus the idea, always having conflicting elements in it, gets it self transformed to a higher stage due to the resolution of those conflicts by such transformation. The transformation is not a simple destruction of the old stage, but it is an absorption and transformation of the elements of the old stage.  Hegel called this process in which the new ideas do not defeat the old as resolve conflicts or contradictions with in them,the dialectic.

When Marx was still a young man at University, two opposing groups of Hegelians, Young (radical) and Old (reactionary), both claimed to be Hegel’s successors. Old Hegelians believed that the Prussian Absolute Monarchy, religion and society represented the triumphant achievement of the Idea in its dialectical progress ( Some years ago, it was campaigned that the society reached its final stage in capitalism and society will not change further and it is the end of history, but now, due to the recession and crisis in the advanced capitalist countries, there is a realisation that it is not the end of history and it is necessary to change the capitalist system for the better). In contrast, the Young Hegelians, dangerously anti-religious, held that intellectual development had far to advance.Marx identified himself initially with the Young Hegelians.

But this was for a short period only. Thereafter he came under the influence of Feurbach, who was a materialist. Here materialist does not mean rhat he is interested in enjoying all the material comforts. In fact, Feurbach last his academic career because of his materialist views. Here, materialism means the view holding that it is the matter  and material conditions that cause and move the  idea. In the simple but brilliant polemic against religion, The Essence Of Christianity, he told that humans needed God because religion satisfied an emotional need. To satisfy this need, humans had projected their best qualities on to a God figure and worshipping that had been made to the extent that God had assumed an independent existence in human consciousness. To regain their humanity, people need to substitute the love of each other for the love of God.

Marx was immediately struck by this insight of Feurbach. Subsequently, he soon moved beyond Feurbach’s materialism. He did this in two ways. First, he extended Feurbach’s materialist philosophy to all dominant ideas prevailing in the societybeyond religion to ideology and people’s conception of society as a whole. Second, he extended Feurbach’s ideas to history. Feurbach’s analysis was ahistorical and non-dialectical, that is, it is not analysing the changes in the material conditions of the society and consequent changes in the idealogy. If humans satisfy their need by creation of religion, then what is the origin of that need and whether that need remains the same always or changes? This remains unexplained by Feurbach. Marx sees the solution of this problem in the material conditions.

Marx came to the conclusion that human consciousness, ideas and ideology can only be understood in its relation to historical, material and social circumstances. The consciousness, ideas and ideologies of human beings in Feudal society are different from the consciousness, ideas and ideologies in the Capitalist society. The consciousness, ideas and ideologies during the struggle for independence in our country is different from the present day ideologies. Consciousness is primarily determined by material conditions. But the material conditions themselves change and develop dialectically through human history, that is through the conflict among different classes in the human society.

One thing common between Hegel, Feurbach and Marx is that things do not appear immediately as they actually are. For Feurbach, God does not exist other than in the mind, but appears to do so to satisfy a human need. Under Capitalism, the free labour market, i.e the freedom to the worker to sell his labour power, conceals the exploitation. The political democracy, that is, every man having one vote and that one vote having one value, suggests equality concealing the privilege and the power of the rich.This divorce between the reality ( content or essence) and its appearance (form) is a central aspect of Marx’s dialectical thought. It forges the link between abstract concepts  such as class (working class, capitalist class, landlord class, agricultural worker class etc) , value (labour time socially necessary for producing a commodity) etc and  their concrete and practical  appearance and presence in every day life through wages, prices and profits.

The task that Marx sets himself, primarily for capitalism, and which he recognises as extremely demanding with, is to trace the connection and contradiction between the abstract and the concrete. This means how the profits, wages, prices, capital etc which are concrete manifestations and appearances of the absolute, the essence, of the relations between people as capitalist and worker while producing the material necessities. But  these appearances like wages, prices and profits are not illusory, but they are part of the reality itself, both representing and concealing more fundamental aspects of capitalism that appropriate dialectics is designed to reveal.

This complexity has to be revealed and understood by an appropriate method. Tomorrow let us discuss about this method of Marx.











11, జనవరి 2012, బుధవారం

An Introduction To Marx’s Capital—Part-1 (This is based on “Marx’s Capital” written by Ben Fine and Alfredo Saad-Filho)


(In view of the ongoing slow growth or no growth of the economies of the advanced capitalist countries like USA and European countries and the warning of the IMF that the world economy is likely to face crisis in 2012, a realisation is slowly creeping that this slowdown and crisis is not the creation of the wrong economic policies of the Governments, but the capitalist system’s structure itself is the cause of the crisis and the alternative is to build a new social order. This context is raising the questions-what is capitalism, why there are crises in capitalism, what are the possibilities for an alternative to capitalism?

For those  wanting to find answers to these questions, the best thing is to read and understand the book “Capital” written by Karl Marx. But it is in 3 volumes, altogether about 1800 pages and it takes special effort to read and understand it. Most of the people who are Marxists ideologically (including me) have not read these 3 volumes of Marx, but understood it to what ever possible extent, by reading small books introducing what Marx said in his book “Capital”. Recently I found  a good book introducing Marx’s “Capital”. It is “Marx’s Capital” written by two professors of economics-Ben Fine and Alfredo Saad-Filho. From today onwards I am reading this book and what I understood by reading this book, I am presenting in this series of blog entries starting from today. -----P. Asokababu)

Before reading this book ‘Marx’s Capital”, let us know the life history of Karl Marx briefly.

Karl Marx (1818-1883) was born on 5-5-1818 in the city of Trier in Germany. His father was a lawyer, a Jew, who in 1824 adopted Protestantism (a branch of Christianity). The family was well to do, but not revolutionary. Marx was educated in the best universities in Germany at that time-Bonn and Berlin. He studied law, history and philosophy and obtained doctorate in philosophy. At that time he was inspired by the great German philosopher Georg Wilhelm Friedrich  Hegel(1770-1831) and his philosophical view was idealism (means idea is the cause and mover of the world). Later he turned to materialism (means the world and the society is the cause and mover of the idea), inspired by another German philosopher Feurbach. Marx became radical in ideology. In 1842 he became editor-in-chief of a journal “Rheinische Zeitung” and because of the radical views of the journal, the Government suppressed it. While working as thee editor of this journal, he found that he was not sufficiently equipped with an understanding on economics (political economy) and decided to study it. In 1843 he  married Jenny Von Westphalen, belonging to a Prussian noble family. She was his childhood friend with whom he was engaged while still a student.

In the same year 1843 marx shifted to Paris(France) in order to publish a radical journal from there. Only one issue of this journal was published and it was stopped due to the difficulties in distributing it secretly in Germany. His article in this journal showed that he was already a revolutionary. In 1844, Frederick Engels, a German,  came to Paris and became close friend of Marx. They both took active part in the revolutionary groups in Paris at that time. At the insistence of the German Government, he was banished from Paris in 1845. He went to Brussels(Belgium). On the outbreak of the revolution in February 1848, Marx was banished from Belgium. He returned to Paris, and then to Germany. But he was banished by the German Government. Then he went to paris. From there also he was banished. Then he went to London, where he lived until his death.  In London he dedicated his life for studying the capitalist system and organizing the working class internationally.

Marx’s book ‘Capital” was in 3 volumes. The first volume was published in 1867 when Marx was alive. But the second and third volumes were published in 1885 and in 1894respectively. Both the volume_II and volume-III were prepared by Engels, based on the notes left by Marx.

Marx’s  wife died on 2nd December 1881 and he died on 14th march 1883. He lies buried next to his wife at the Highgate Cemetery in London. Of Marx’s children some died in London due to absolute poverty. Three daughters were married to English and French socialists.

Marx thus lead a hard and difficult life in exile, for the sake of a cause. His wife  Jenny, who came from a noble family, encouraged him in his struggle and faced all the difficulties.

Marx was a genius who continued and enriched the three main ideological currents of the 19th century, represented by the three most advanced countries of thee world at that time—classical German philosophy, classical English political economy and classical French Socialism combined wih French revolutionary doctrines in general. (This life sketch of Marx was based on Lenin’s book “Karl Marx”)

Tomorrow, We will start to read and understand the book “Marx’s Capital” written by Ben Fine and Alfredo Saad-Filho.








10, జనవరి 2012, మంగళవారం

3G gimmicks


Yesterday (9-1-2012) arguments took place in the TD SAT(Telecom Disputes Settlement and Appellate Tribunal)  court between the DoT on one side and the private telecom operators Airtel, Vodafone, Idea, Tata Teleservices and Aircel on the other side. The spokesman of the Congress party Sri Abhishek Manu Singhvi, who is a senior lawyer,   appeared on behalf of Vodafone.

(The big leaders in Congress and BJP are the lawyers for private telecom companies and for several other Corporate Companies. Sri Kapil Sibal, the present telecom minister represented Nokia and Bharti . The present Home Ministeer Sri P.Chidambaram represented Motorola and Hutch. Senior BJP leader Sri Arun Jaitley who is the leader of the opposition in Rajyasabha, served as lawyer for T-Mobile, Tata Teleservices, Lucent Technologies and Sterling. The team Anna member Sri Santi Bhushan served for Essar Telecom etc.)

What is the matter on which on 9-1-2012 Sri Abhishek Manu Singhvi argued in the TD SAT?

Airtel, Vodafone and Idea colluded at the time of bidding for 3G spectrum and none of them secured 3G spectrum for all the 22 circles in the country and secured it for a few circles. But they have done it in such a way that atleast one of them would secure the spectrum in each and every circle of all the 22 circles (except Orissa). While they started 3G services, they came to a mutual agreement called “intracircle roaming agreement” so that all of them can provide 3G services in all the circles except Orissa. By this agreement, the subscribers of a company among them which is not having 3G services will get 3G services by roaming on the 3G net work of the partner in the agreement which has 3G spectrum in that circle. For example in Andhra Pradesh circle, Vodafone has no 3G spectrum, but it is still providing 3G services since as per the said “intra circle roaming agreement” with Idea, its subscribers will roam on the 3G net work of Idea to get 3G services.

With these agreements, Airtel which has 3G spectrum for 13 circles is providing the services in 20 circles, Vodafone which has 3G spectrum for 9 circles is providing the services in 20 circles and Idea which has 3G spectrum for 11 circles is providing the services in 19 circles. If they paid for the 3G spectrum for all the circles where they are providing 3G services, they have to pay another Rs 20,000 crore all together to the Government.

The DoT issued notice to these 3 operators and also to Tata Teleservices and Aircel who signed similar intra circle roaming agreements to terminate their intra circle roaming agreements since they are against the licence conditions and against the conditions mentioned in the Notice Inviting Applications for 3G auction, and hence illegal.

Instead of terminating these illegal agreements, these operators filed a case in the TD SAT (Telecom Disputes Settlement and Appellate Tribunal) on the same date (24-12-2011)  and got a stay.

The argument of the private operators is that 3G services are not requiring a separate license and they can be provided under the UAS (Universal Access Services License) which they already got and intra circle roaming agreements are permitted as per the UAS conditions.It is to be noted that the lawyer for Vodafone which is one of these  private operators is Sri Abhishek manu Singhvi, the spokesman of Congress

The DoT is arguing that the contention of these operators is not correct since the telecom companies need a separate licence for offering 3G services because a clause was inserted in the licence conditions of the operators who got 3G spectrum to this extent. DoT says 2G service provider can enter into a intra circle roaming agreement for 2G roaming only and not for 3G roaming.

News appeared in the papers on 9-1-2012 that if the intra circle roaming agreements of Airtel, Vodafone and Idea etc are allowed by TDSAT finally (the hearing in TD SAT will be there again on 17-1-2012), the number of operators providing 3G services will increase to 10 from the present 7 and it will lead to such a situation that the operators who are  not having 3G spectrum even for a single circle will be allowed to provide 3G services in all the circles by making agreements with other operators having 3G spectrum, for intra circle roaming. In such case, what is the meaning of 3G spectrum auction and why should BSNL and MTNL pay such large amount of Rs 16750 crore (BSNL Rs 10186 cr and MTNL Rs 6564 cr) for the 3G spectrum?

It is therefore clear that the arguments of the private operators in support of their intra circle roaming agreements are nothing but gimmicks (3G gimmicks) and hence will not succeed in the court.


What ever may be the terminologies and meanings of these license conditions and agreements, the fact remains that BSNL paid to the Government a sum of Rs 10186 crores for the 3G spectrum in all the 20 circles in India other than Delhi and Mumbai and in Delhi and Mumbai MTNL paid Rs 6564 crores and hence they have paid for all the circles and providing services in all the circles, whereas the private operators are providing the services in all the circles, but paid for the spectrum only for some circles.

Irrespective of the outcome of the case in the tribunal, the PSU operators BSNL and MTNL should not be discriminated in this regard.