Polemic on General Line of International ... - From Marx to Mao

Second, the use of profits as the primary incentive in theoperation of the enterprises. They may adopt a variety ofmethods to increase their income and profits. In other words, inthe enterprises under “workers’ self-government” the aim ofproduction is not to meet the needs of society but to seek profits,just as in any capitalist enterprise.Third, the pursuance of the policy of encouraging capitalistfree competition. Tito has said to the managers of the enterprises,“Competition at home will be beneficial to our ordinarypeople, the consumers.” The Tito clique also openly declaresthat it allows “competition, the seeking of profits, speculationand the like” because “they play a positive role in promotingthe initiative of the producers, their collective, the communes,etc.”. 1Fourth, the use of credit and the banks as important leversto promote capitalist free competition. In granting loans, theTito regime’s credit and banking system invites tenders forinvestment. Whoever is capable of repaying the loan in theshortest period and paying the highest rate of interest willobtain the loan. In their words, this is “to use competition asthe usual method of allocating investment credits”. 2Fifth, relations among the enterprises are not socialist relationsof mutual support and co-ordination under a unified governmentplan but capitalist relations of competition and rivalryin a free market.All this has undermined the very foundation of socialistplanned economy.Lenin said:Socialism . . . is inconceivable without planned stateorganization which subjects tens of millions of people to1Vladimir Bakarić, Report to the Fourth Congress of the Leagueof Communists of Croatia, April 7, 1959.2Augustin Papié, “Investment Financing in Yugoslavia”, Annals ofCollective Economy, Belgrade, April-November 1959.159