I want to return to this because, if we want to understand why Lenin was in favor of a centralized organization, we have to consider his actual arguments and the circumstances that existed at the time. Otherwise we could end up making a fetish of centralism, as is not uncommon amongst some groups on the left.
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Lenin proposed a centralized party in conditions where many-to-many communication between Marxist activists was not only difficult from the point of view of technology--but was illegal and grounds for prison. In these circumstances, it was generally not possible for a Marxist activist in one local area to have any influence at all over what took place in another area. Both communication and democracy was limited by geography.
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But what I would like to draw attention to for now is the part at the end, where Kautsky talks about "the direct vote of the Party membership at large". What both Kautsky and Lenin are saying here--is that if it had been possible to consult the entire party membership about Gohre's candidacy--then the local section of the party could have been overruled by *the party as a whole* instead of being overruled by the party center acting as *the representative* of the will of the party as a whole.
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This passage by Lenin helps us to see the possibilities which are only now opening up to us--courtesy of the coming revolution in communications. We are very rapidly approaching a stage where consultation with the entire membership (even of a very large party, like the German party, of a million members) over such a question as the nomination of Gohre--would be very easy.
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Again, this is not the same as saying that proletarian parties will not require centralism at all. Any time a large party must be capable of sustained, coordinated activity characterized by bold, decisive actions in a war (whether a political war or a military war) of quick decision--there will be a need for a high degree of centralization. In this respect, centralization is like closing one's fingers into a fist. Making one's fingers into a fist--so that one may strike rapid, powerful blows at an opponent--is often necessary for a workers' party preparing itself to overthrow bourgeois rule.
But just as no one can successfully go thru all of life with their fists closed (because, for example, an open hand is required to use tools) no party in the modern world can perform all of its functions in a centralized manner. This last point is particularly important. Much of a party's work, including theoretical and intellectual work, can only be centralized to a certain extent. Some sectarian trends make a fetish of centralization and, using the struggle against reformism or bourgeois ideology as an excuse, attempt to use "information isolation" (and other fetishistic forms of centralism) to shield their supporters from *coming into contact with ideas* which would expose and destroy the guiding mythology that glues the group together and justifies its peculiar practices. *This* kind of centralism, in the period of the coming revolution in communications, is going to face rapid extinction.