Marx's Revenge: The Resurgence of Capitalism and the Death of Statist Socialism [Paperback]

Essential book for anyone who wants a detailed an extremely readable overview of economic histrory. Similar in content to Galbraith's "A History of Economics", but as the title obviously suggests, focusing particulary on the influence of Marx. Desai examines Marx's work in detail, and examinies how Marx's ideas have been used, (and often abused), by so called Marxist followers. Desai believes that the growth of global Capatalism is now back on course, after much of the world embarked on various socialist and communist economic experiments for much of the 20th century. Desai wonders if Marx's prediction of the eventual implosion of capatalism may now eventually come about, now that capatalism has no other economic rival . An excellent read

The author - Meghnad Desai - (at the time of writing), is described as being the Director of the Study of Global Governance, at the London School of Economics. He has written previously upon the subjects of Marxian economics, Indian economc development, famine and poverty. His writing style is lucid, ebgaging and highly accesible. He demonstrates an understanding of the history of economics, together with an appreciation of the effect such history has upon humanity. This narrative is not a 'dry' presentation of statistics entwined with political ideology. On the contrary, it is vibrant and full of insight.

The hardback (2002) edition, consists of 372 numbered pages, and consists of a Preface, and 19 distinct chapters:

Preface.
Acknowledgements.
1) Two Revolutions and a Demolition 2) Adam Smith and the Principles of Social Astronomy 3) Hegel and the Ideal State 4) Marx I: Clearing the Decks 5) Marx II: Profits 6) The Future of Capitalism I: How Soon the End? 7) War and Revolution 8) War and Imperialism (in theory and in practice) 9) The Interwar Years: Return to Normality, 1919-29 10) The Interwar Years: Crisis and Catastrophe 11) Cuting Captialism: Keynes, Schumpeter ad Hayek 12) Can Socialism Work? 13) Foundation of the Global Order 14) The Golden Age of National Capitalism 15) The High Noon Socialism 16) Things Fall Apart 17) Up From the Abyss 18) A Bonfire of Illusions 19) The Future of Capitalism II: Endgame or the Only Game?
Notes.
Bibliography.
Index.

The author is an active member of the British Labour Party, and describes hmself as being broadly on the Left. However, this is not a book eulogising Marxism as interpreted by the Communist Party of the Soviet Union (1917-1991). Instead Desai presents Marxian thinking as Karl Marx (1818-1883) originally intended it to be understod. In this regard, Desai not only presnts a very interesting history of Capitalist economic development in Western Europe from the 1800's to the late 20th century, but also clearly shows how 'Marxism' as an ideology has been changed by different interpretations and circumstance. Marx, for instance, believe that although Capitalism is essentially unequal and unjust, nevetheless, the kind of wealth it generates is essential, if an advanced Capitalist State is to ultimately transform into a Socialist State. In other words, wealth can only be re-distributed if the wealth exists in excesive amounts. Marx, in his key writings, clearly explains that Capitalism is essential for Socialism to occur - and without it, no Socialism is possible. Certain strains of Marxist ideology teach that Capitalism is not required - Desai presents this as a major ideological error.

Desai exposes the many misreadings of Marxian thinking. Indeed, as the Soviet Union (and now China), pursued a path of State Capitalism, the entire Bolshevik experiment with Marxism, could be described as an alternative manifestation of Capitalist endeavour. Desai describes that global capitalism was in trouble in 1914, and that after the war, Western countries retreated into nation state capitalism (i.e. Capitalism in one country), which saw the abandonment of universalism. International trade was replaced by 'interstate' commerce, with each national entity striving to occur and retain as much capital as possibly, thus hindering the international, free flow of money. This situation prevented Captialism from transitioning to another state, effectively preserving it in a state of arrested development. The aftermath of WWII (post-1945), saw the economic emergence of the USA as a world power, and through the break-up of empires and the abandonment of closed markets, re-globlisation has occured. This has unleashed Capitalist market forces throughout the world - including the previous Soviet Bloc, and has allowed the free market to exhibit signs of immense trauma. Desai believes that Marx foresaw this in his writings, and that humanity is now living through a period that Karl Marx predicted. A fascinating read.

There is something endlessly fascinating about Marx - even almost one hundred and thirty years after his death, he still evokes many articles and books. To give just one example - the "June/July 2009" edition of the august "Foreign Policy" journal contains a portrait of Marx and the invocation "Why he matters now". (I have borrowed the author`s title of his article for my title review).
Mr Desai has written an excellent book that puts Marx in perspective. He starts off with Adam Smith and, of course, Hegel, before giving us a thoroughly readable introduction to Marxism. After that, the author deals with Schumpeter, Hayek, Keynes and other economists to test the relevance and strength of Marx`s original ideas, including surplus value. The book is fairly ambitious in its scope as it weaves into its storyline history/political changes/world developments over the nineteenth/twentieth centuries - but it somehow works - a tribute to Mr Desai`s background and experience.
According to the author, the Soviet system could not cope with the crisis of profitability - production efficiency, and therefore collapsed.
Marx`s analysis was despite all its shortcomings and crises, capitalism would not go away until after it had exhausted its potential. Capitalism still has some way to go but, as per the author, Marx had predicted that.
The author fairly sums up: "Marx emerges as a serious but not an infallible theorist of social astronomy".