Capitalism eliminated
All foreign corporations, banks and bigger companies were nationalised and capitalism was eliminated from Burma. The larger private savings were confiscated with no or little compensation. “Burma’s way to Socialism” was the name of the program implemented but it was a caricature of Socialism. Ne Win had probably never read a book by Marx, Lenin or Trotsky. The fact that Ne Win had no socialist background was shown by the US action after the military coup.
Moe Min Han, a Burmese refugee now living in Europe relates: “In a BBC broadcast, representatives of the US made a positive statement about Ne Win. They thought that he would fight the Maoist guerrillas, which he did. But he created his own Maoist regime”.
Ne Win’s regime was a primitive imitation of Stalinism in the Soviet Union or China, disguised with “Buddhist ideas”. However, Buddhist monks were quick to point out that Ne Win’s regime had nothing to do with their religion.
Stalinism is a system where capitalism has been abolished in terms of private ownership of major industries and the land. Production in society follows a plan instead of capitalist anarchy. Unlike democratic socialism, where the people democratically decide the needs that should be satisfied, Stalinism gives power to small bureaucratic elite that is like a parasite on the planned economy that distributes the resources according to its own interests. To make this possible, against the will of the people, Stalinism also means a one party state with enormous oppression of all opposition.
Even though Ne Win gradually built a terrible terror apparatus, there was a big support for abolishing capitalism in the beginning, especially in the countryside. Peasant committees (where big estate owners, merchants and bankers were excluded), with the right to lease land were formed. In 1963 all peasant debts to the state were written off and an aid program was launched to help farmers with fertilisers, better seed and access to tractors. The state loaned out 700 million kyat (the Burmese currency) to farmers and doubled the number of tractors by importing one thousand from Czechoslovakia. New laws were implemented that meant that farmers could not be evicted from their land. Bankers that had harassed the farmers were severely affected by anti-capitalist laws.(x) A campaign against illiteracy was also launched even the country’s ability to read was already quite high. In 1983, 86 per cent of men and 74 per cent of women could read and write.
These reforms had big support among the poor in the beginning. But it was not long before the contradiction grew between the needs of big capital to develop industry and the need of the farmers. As the antagonism sharpened, oppression became greater and greater.
“After 1967 things developed badly. Ne Win isolated Burma from the rest of the world,” says Kyaw Thet.
Burma became one of many countries that took the path of massive nationalisation. Because of the inability of capitalism to solve the problems that confronted Burmese society a part of the elite saw no other option than to follow the example of China. Capitalism and its representative U Nu had failed to solve the conflict between the state and the ethnic minorities. They had failed to break Burma’s dependence on the big imperialist powers that continued to exploit the country and stop every form of industrial development. And they had failed to give the farmers a decent life, where they could cultivate their own land without being dependent on big estate owners and bankers.
This failure was not because U Nu and his government were less talented than others. It was because the international development of world capitalism at that time, as today, prevented poorer countries breaking out from the grip of imperialism. This fact was explained by the Russian revolutionary, Leon Trotsky, at the beginning of the 20th century. He and Lenin described how capitalism now had conquered the whole world and consequently entered a new phase: imperialism. During this phase, the rich imperialist powers prevent the development of independent capitalist states in the poorer countries. Trotsky explained that a more advanced capitalist development in the poorer countries could only take place if the tasks of the ‘bourgeois revolution’ were implemented. The tasks are:- solving the national question, breaking the grip of imperialism and carrying through land reform so that the peasants can cultivate their own land.
These tasks had been solved in different ways by the growing bourgeois class in the advanced capitalist countries before the imperialist époque. But under imperialism the bourgeois class in the poorer countries were incapable of solving the tasks of the bourgeois revolution. The reason for this was, and still is, the fact that under imperialism, the domestic bourgeois can never grow strong enough and very much dependent on both imperialism and the big estate owners (that would be hit be these reforms). The bourgeois simply do not bite the hand that feeds them!