AT HOME WITH CHEDDI
by Ralph Ramkarran
In 1991 Vidya
Naipaul, the Trinidad born Nobel Prize Winner in Literature, visited
Guyana for the second time. He had first come in 1961 and had met
Cde Cheddi and Cde Janet. On this second occasion he visited them
both again and spoke at length with Cde Cheddi here at his home.
This is how he described the scene:
It was of his
early days, and especially of his time in America, that I wanted to
hear when I next met Cheddi Jagan. He came for me at the hotel one
Sunday afternoon, and we drove to his house. It was the house he had
built after he had left the premiership in 1964. It was a plain,
new-style, two-story Georgetown house, well-fenced, with a watchdog.
We sat upstairs.
The afternoon breeze blew through the open doors on both sides.
Beyond the wrought-iron rails of the balcony the garden was all
green, with mango trees and coconut trees and banana trees.
It was in this
peaceful atmosphere that Cde Cheddi worked and relaxed for the last
forty years of his life. The life he created here, while the
afternoon breeze blew, where all was green, with mango trees
and coconut trees and banana trees provided exercise, ensured
tranquility, facilitated meetings, the entertainment of visitors and
allowed for his creative impulses to soar. It was in this atmosphere
that he read, researched and wrote.
I well remember 1966
when this house was built. The land had been acquired by purchase by
my father from Bookers a few years earlier. Our family had lived on
this plot of land from about 1920, shortly after my father was born,
and on this plantation since 1875, when my great great grandfather
came here as an indentured labourer.
The construction of
this house was undertaken by Cde Cheddi in the manner that he did
most things – hands on. He designed the house. He obtained the
materials. He brought the carpenters from Berbice. He supervised
them. And when they ran out of groceries, they pestered my mother
next door. I spent many hours here befriending the carpenters and
looking on as they worked. Only a couple of years ago I was in
Berbice for an event and a comrade came up to me and challenged my
memory, asking if I knew him. He turned out to be one of the
carpenters who had worked on this house as a young man. Our
conversation took me back to 1966, more than forty years ago.
It was a landmark
year in the history of Guyana. Inasmuch as the colonial power was in
the final stages of the destruction of democracy in then British
Guiana, Cde Cheddi was in the beginning stages of the construction
of a home which was to provide the comforts to enable him to produce
his celebrated study, The West on Trial, published in 1966,
and to sustain patient effort for near three decades always
confident of the justice of his case.
I must stress,
however, that Cde Cheddi, as far as I know, was always comfortable,
wherever he was, with basic amenities to enable him to do his work.
All he ever needed were the bare comforts so that he could read and
write and sleep.
Cde Cheddi spent a
great deal of time in his garden which provided both relaxation and
exercise. All the trees here, and many more which no longer exist,
were planted by him. Breezy, green afternoons under a blue sky
followed by cool, starlit evenings provided the quiet and serene
backdrop for him to survey the world and Guyana and interpret their
history and current developments. It is here that he researched and
wrote his masterpiece, The West on Trial, that I mentioned
earlier, a political biography of unfinished business, which not
only set out his credo but argues his case for Guyana and his
struggle against world poverty and, as he argued, an economic system
which ensures it. The West on Trial is the best known of what
he wrote here. But he also wrote endlessly and voluminously. In this
brief exposition it would be impossible for me to do justice to the
range and quality of Cde Cheddi’s writings which are already well
known. One series that I remember well because I was particularly
attached to it, anxiously awaiting my Sunday Mirror to read what he
had to say was Straight Talk, a weekly column on a subject of
topical interest. One particular piece was headlined Trade not
Aid. I have unsuccessfully searched for it ever since to prove
that he was a man before his time, speaking about these matters
before anyone else.
In this, the only
home that Cde Cheddi’s owned, there was always a hive of activity
and ferment of ideas generated by endless formal and informal
meetings, discussions, consultations and conversations with and
among the Party Executive, Party colleagues, comrades and other
visitors. From what I have learnt, the same atmosphere existed at
all of the places where Cde Cheddi’s lived and worked. It was at his
homes, and particularly this modest one which I know about, that
many momentous political decisions were either discussed or taken.
Many of us met here regularly to discuss all kinds of issues,
particularly at weekends. For me this went on from the early 1970s
up to 1992. I am sure that the same situation existed in the earlier
period. My father told me that as far back as 1947, already a member
of the Political Affairs Committee, he led a delegation to persuade
Cde Cheddi to contest the elections of that year and they had met
him in his dental surgery.
Thus from his
earliest days in politics Cde Cheddi had no personal space which he
protected from intrusion, as is such a great fashion nowadays. For
Cde Cheddi the cause on which he had embarked was more important
than his personal comforts. It was a single cause, pursued single
mindedly for his entire life. Vidya Naipaul was puzzled about his
persistence and sought to explore it in 1991. He explained the
reason why he went to meet Cde Cheddi: I wanted to know how he
had endured since 1964, what internal resources he had drawn on, why
he hadn't given up, like many of his followers. Naipaul did not
discover the motive force behind his dedication. It probably had the
simplest of explanations – just that he was simply a good man. That
we know and that is probably the key to understanding what drove him
on. It is no surprise that Naipaul could not fathom the source of
his commitment and persistence. Cde Cheddi himself did not seem to
know. After asking him Naipaul concluded: He appeared not to
understand the question. Like most selfless people he was
clearly not a man given to personal introspection and this explains
the reason why he appeared not to have understood the question.
Many people would
fail to understand the full implications of my description of Cde
Cheddi as a “good” man because it is an overused word that
has lost much of its power. I really mean that he was a good man in
the true sense and in every respect of the word. For example, he was
kind. He would stop his car in the mornings at the bus stops and
fill it with people waiting for transportation to take them to town.
He was friendly, polite and respectful to everyone he met, even when
they were hostile. In meetings he listened to everyone; he often
called on comrades to speak to hear what they were thinking. He
discussed everything, sometimes more than once when he was uncertain
of his own position. He was honest, famed for his integrity and
respected for his frankness. He never took offence and rarely showed
anger.
These qualities
enabled Cde Cheddi to be deeply reflective and completely cerebral,
with no time for gossip or small talk. Divorced from the personal,
he was able to focus on the larger picture outside of himself in the
quietude of his home here in Bel Air. These reflections produced
The New Global Human Order, his now famous treatise, adopted by
the United Nations, on measures which can eliminate or
substantially reduce world poverty. The ideas in the NGHO are more
relevant now than ever before with the world in crisis and a
financial shortfall of $700 billion in developing countries,
according to the World Bank. It estimates that 200 million people
will enter the ranks of those afflicted by poverty as a result of
the crisis.
I had the privilege
of making a presentation on The New Global Human Order in
2006 at Red House. It is uncanny how throughout his life Cde Cheddi
was in the forefront of new ideas on development issues. I mentioned
his call for free trade in the 1960s. He championed the environment
and equality for women as far back as the 1960s and 1970s, long
before these issues became popular. It was his advanced knowledge of
the causes of poverty and exploitation in Latin America that enabled
him to predict the failure of President Kennedy’s Alliance for
Progress in the 1960s, which was a programme to eliminate poverty in
Latin America.
He was one of the
leading pioneers against payment of the debt by developing
countries, advocating that it be forgiven, starting before most in
the 1970s when the issue had not yet gained momentum. In the NGHO,
bringing together in one document a number of already existing but
disparate proposals, which he himself had been advocating for many
years, he formally joined the struggle, then in its infancy, for the
reform of the international financial institutions. Among his wide
ranging proposals were that: the
United Nations system should play a more central role in global
economic management and should have access to large financial
resources; the
IMF and World Bank to concentrate on human development as distinct
from the means of development and return to their original roles;
providing
for equitable international trade both in goods and services to
accelerate global growth and allow a more equitable distribution of
its benefits. These are all accepted as worthy and desirable goals
today but at the time when they were proposed they were frowned
upon. Proposals for reform of the international financial
institutions to treat with the type of crisis now being experienced
have now gone far beyond what Cde Cheddi had suggested. This is the
originality of the intellect of the founder of our Party as we
reflect on these ideas at his home where many of them emanated.
Many of us wonder at
what leadership Cde Cheddi would have given in relation to the
crisis which now threatens to grow into a depression unless the
appropriate measures are taken by the developed countries,
particularly by the United States. To arrive at an analysis he would
have advocated, we need to utilize the intellectual resources he
would have used.
Even though it is
now not fashionable to talk about Marx, who along with Adam Smith
and John Maynard Keynes, contributed the most to our understanding
of how capitalism works, Cde Cheddi in his lifetime frequently
referred to them. As regards the current crisis he would have
pointed to Marx’s discovery and analysis of the cyclical patterns of
economic growth, which are now afflicting the developed world and
would have urged the adoption of Keynes’s prescriptions for
solutions. These theories are accepted by many mainstream,
non-Marxist economists today. Many serious economists were
influenced by Marx, and this is attested to by John Kenneth
Galbraith, one of the most famous of American economics professors,
in his work, The Affluent Society.
Cde Cheddi would
have relied on Marx’s analysis of the cyclical pattern of economic
growth of capitalism is contained in Volume 1 of Capital in
the chapter entitled The General Law of Capitalist Accumulation
in which he makes an extensive analysis of the issue. He
concludes his analysis as follows: The course characteristic of
modern industry, viz., a decennial cycle (interrupted by smaller
oscillations), of periods of average activity, production at high
pressure, crisis and stagnation, depends on the constant formation,
the greater or less absorption, and the reformation of the
industrial reserve army or surplus population. A prominent
non-Marxist economist, Meghnad Desai, a Professor at the London
School of Economics, describes the theory in more simple terms in
his work, Marx’s Revenge, as follows: Capitalists employ
workers to make profits, but as they employ more workers,
unemployment goes down. This puts pressure on real wages. As real
wages, as well as employment, go up, the share of profit goes down,
and there is a squeeze on the rate of profits. At this boom stage of
the cycle, capitalists retaliate by investing in labour-saving
technology, thus slowing down the growth of – even reducing –
employment. As unemployment increases, the pressure on real wages
eases, and they may even go down. This is the slump. Profitability
improves; this encourages capitalists to expand their business now,
with the new technology, and the cycle continues its upward course.
In relying on this
and similar analyses, Cde Cheddi advocated in the past, and
would have done so now, that the periodic crises of capitalism are
inherent in the system, crises which experts like Alan Greenspan,
the former US Federal Reserve Chairman, Gordon Brown, the Prime
Minister of Great Britain and Ben Bernanke, the current US Federal
Reserve Chairman, and himself an expert on the Great Depression of
1929, all in recent times, announced were at an end; and these
statements were made while we have been in the midst of the asset
bubble of unprecedented proportions, which Greenspan, in evidence to
the Congress, while he was Chairman of the Federal Reserve,
described as irrational exuberance.
Much has been made
of the credit squeeze in the United States arising from the
puncturing of the housing bubble as one of, or even the main direct
factor, creating the recession. Cde Cheddi lectured again and again
on the inherent contradictions in the social relations of production
within the capitalist system that makes these crises inevitable and
to Marx’s explanation that the expansion of credit accompanies
capitalist development. Marx said in his usual caustic manner:
The superficiality of Political Economy shows itself in the fact
that it looks upon expansion and contraction of credit, which is the
mere symptom of the periodic changes of the industrial cycle, as
their cause. Marx predicted that the system of credit will grow
into “an enormous social mechanism for the centralization of
capitals.”(Marx, Capital, Volume 1 pp. 777-8)
The complexity of
developed market economies today means that the manifestations of
the crisis are more complex. For example, the technological
developments during the Clinton Administration of computer
technology, ushering in the information age, temporarily obscured
from public view the loss of manufacturing jobs and growing
contradictions marked by speculation, financialization,
securitization, the enlarging asset bubble, all facilitated by low
interest rates and a wild expansion of credit, natural outcomes of
capitalist growth which itself created a significant number of new
jobs. The housing bubble was a mere product of this speculation. It
encouraged millions of good people, who could not afford it, to take
credit to purchase homes on floating mortgage rates which could only
go upwards because of the low rates during the Greenspan era. It was
this upward movement which increased monthly payments, which could
not be afforded, that devastated mortgage holders and triggered the
crisis.
The development of
financialization and securitization of the US economy, where it was
producing credit rather than goods and services, in a constant and
inexorable drive to produce, an integral feature of capitalism,
noted by Marx and supported by Galbraith, took place in the face of
declining industrial competitiveness. The growth of the share of
profits generated by financial investments against a weak regulatory
background which allowed untrammeled speculation, gambling and
greed, presaged the inevitable collapse we are witnessing. While
Marx predicted the growth of credit, Lenin was in a better position
by 1916, because of the growth by then of large monopolies and
banks, to note the power of finance capital and its capacity to
influence developments. This was built on from Marx who had said, as
I mentioned earlier, that credit was an enormous social mechanism
for the centralization of capital.
Cde Cheddi was very
familiar with all of this and would have relied on this tract by
Lenin written in 1916, Imperialism, the Highest Stage of
Capitalism and in particular the chapter, Finance Capital and
the Financial Oligarchy. Cde Cheddi’s consistent advocacy of a
full, and not an intellectually truncated, understanding of market
economies, taking into account Marx’s analysis of capitalism, which
Wall Street and US academia pay closer attention to than they reveal
or most people believe, has enabled us to get a more rounded picture
of developments and of some of the market factors underlying the
financialization and securitization of the US economy.
The first economist
after Marx who made an impact by his study of the cyclical pattern
of capitalist economies was John Maynard Keynes. Though not an enemy
of capitalism, he was also a critic, who discovered and advocated
solutions to recessions in his main work, The General Theory of
Employment, Interest and Money. A simplified explanation of
Keynes’s theory is that where the private sector is not investing
enough, and the economy goes into recession, full employment can
only be maintained and eventual recovery return by government
spending. He had challenged Say’s Law (Jean-Baptiste Say
1767-1832) which divined that supply creates its own demand (John
Bellamy Foster, A Failed System – The World Crisis of Capitalist
Globalisation and its Impact on China).
Keynes himself said:
I find the explanation of the current business losses, of the
reduction in output, and of the unemployment which necessarily
ensues on this not in the high level of investment which was
proceeding up to the spring of 1929, but in the subsequent cessation
of this investment. I see no hope of a recovery except in a revival
of the high level of investment. (John Maynard Keynes, The
General Theory and After: Part I, Preparation; Collected
Writings of John Maynard Keynes, vol. 13, pt. 1, Donald
Moggridge, ed., (Cambridge, U.K.: Cambridge University Press)).
President Obama of
the United States, against great and continuing resistance,
shrugging off the post–Keynesian neo-classisists, such as Paul
Samuelson and Milton Friedman, the latter of whose ideas drove
economic policy since at least the 1970s, including the
Reagan/Thatcher Revolution and the Washington Consensus, now
discredited, has overturned decades of supply side policies and has
returned to the application of partial Keynesian policies in order
to stop the bleeding in the United States. The question is whether
he will be able to sustain his course because economists such as
Paul Krugman, a recent Nobel Prize Winner, who have embraced some
elements of Keynesianism, have argued that Obama is not doing enough
and have suggested that another stimulus package will soon be
necessary (Paul Krugman, The Return of Depression Economics and
the Crisis of 2008). Already Krugman is complaining about the
dilatoriness in moving to resolve the credit crisis because of fear
of grappling with the politics of having to nationalize some banks.
The lessons of the
past are important. President Herbert Hoover did nothing when the
Great Depression hit in 1929. The US economy deteriorated. President
Franklyn Roosevelt was elected in 1932 and adopted Keynesian
methods. He stimulated the US economy by large scale government
spending which alleviated the crisis and restored some buoyancy to
the economy. However, the crisis was not completely resolved until
the vast spending generated by the Second World War. This has led
some experts to conclude that the stimulus packages implemented by
President Roosevelt were inadequate as there were great pressures
against him by conservatives and the wealthy just as there are
against Obama today. John Bellamy Foster and Robert W. McChesney in
an article entitled A New Deal under Obama? in Monthly
Review of February 2009, demonstrated by analysis the inadequacy
of public spending in the Roosevelt era which the necessary spending
in the Second World War had to resolve, and the danger of the same
thing happening in the Obama era.
Cde Cheddi accepted
Keynes as a great scholar and believed that he had arrived at the
appropriate conclusions to deal with recessions. He was therefore
very much impressed by the policies undertaken by Roosevelt in
The New Deal and repeatedly referred to then approvingly during
his lifetime. He also regarded Roosevelt as a very
progressive leader. He praised the social policies he adopted
including social security and pro trade union policies adopted for
the first time in the US.
Having accepted IMF
conditionalities for Guyana, Cde Cheddi called for structural
adjustment with a human face, in line with an approach that
Roosevelt’s would have pursued of a social safety net for the poor.
Cde Cheddi’s call was eventually realized in the Millenium
Development Goals adopted by the United Nations and incorporated in
US aid policies under the Millenium Challenge Account. Unfortunately
Cde Cheddi’s lifelong admiration for much in the US, its revolution,
its democracy, its vibrant Congress, its libertarian traditions and
their responsiveness at critical times to the call of the working
people, was obscured by the cold war and the early attack on
progressive leaders in the 1950s such as Cde Cheddi himself in 1953,
Arbenz of Guatemala and Mossadeq of Iran.
The World Bank has
estimated that for the first time since the Second World War the
world economy will contract. It also estimates that developing
countries will face a financial shortfall of US$700 billion, as I
mentioned earlier. These predictions, coming one on top of the
other, are getting more and more dire.
Caricom countries
cannot sit by and allow what is in effect an economic tsumani to
create destruction in our economies. Their challenge is to take
measures to protect their economies with a united approach to save
Clico, the establishment of an early warning mechanism,
identification of industries or businesses at risk and measures to
alleviate such risk, ensuring that financial flows to the Region
continue, fighting against protectionism by developed countries,
encouraging measures of public spending by developed countries to
deal with their recession, for the longer term to reform the
international financial institutions and to coordinate their own
policies in dealing with issues arising within the region. The track
record so far in relation to Clico, an authentic regional
conglomerate, which has been willing to support development projects
in Guyana and the Region, has not inspired confidence. Mr. DeLisle
Worrell, in a paper, Saving Clico, (February 2009) for the
Caribbean Centre for Money and Finance advances the arguments in
favour of Clico and suggests the measures which ought to be taken,
though perhaps many of these might be too late. Hopefully, the
situation will be corrected in relation to the entire gamut of
economic and financial policies in order to reduce the impact of the
recession in the developed world. The decision of Caricom Heads at
the 20th Inter-Sessional Meeting in Belize on March 12
establishing a Committee of Central Bank Governors to provide Heads
of Government with proposals on how the Community could collaborate
to tackle the current international crisis is a start in the right
direction and the appointment of a College of Regulators to trace
the assets of Clico are some steps are being taken.
In Guyana, the
performance of the economy was the focus of attention during last
month when the Minister of Finance, Dr. Ashni Singh, presented his
budget. He demonstrated that the economy grew by 3.1 percent last
year, a respectable figure by any standard, having regard to the
difficulties of an exogenous nature being experienced. And had it
not been for the difficulties in sugar resulting in reduced
production, the growth rate would have been 5.9 percent. The
Minister actually said that without the anticipated increase in the
production in sugar, the expected growth rate would be 1.8 percent.
The Minister’s projection might be optimistic in view of the world
situation. But it is wholly reasonable having regard to the Guyana
situation at the time when the Minister spoke. But we must
understand that the world situation is changing all the time for the
worst. For example, the projections of the US budget are based on an
unemployment figure of 8.1 percent during this year. A mere few
weeks after the budget was presented to Congress, the unemployment
figure was already there and predictions are that it would reach
double digits. For Guyana, bauxite price fell by 50 percent during
last year. Rice price is going down. Commodity prices generally are
going down. So no one can accurately predict what the position will
be at the end of this year in a rapidly deteriorating international
environment. But the Minister’s job is to make these assessments and
he can only do so on the basis of the facts available at that time.
In my view he has done the best he could with the information which
was available to him at that time.
The Government’s
commitment, as announced by the President was reiterated by the
Minister of Finance, and again in Parliament last week, to ensure
that pensioners and policyholders will not lose as a result of the
difficulties of Clico (Guyana). This commitment demonstrates the
nature of our approach, which is one that devotes 30 percent of its
budget to social spending and is determined that Guyanese people,
particularly the poor and vulnerable, are not disadvantaged by the
situation at Clico (Guyana).
I believe that these
are the conclusions Cde Cheddi would have made as he contemplated
these issues here at his home and these are the positions that he
would have wholeheartedly supported, mindful of the fact that these
can only be temporary until a social system emerges which can
resolve or is more responsive to the contradictions which give rise
to the difficulties we face.
The question always
arises as to whether Cde Cheddi was a successful person or not.
There are many ways of judging success. Different criteria are used
by different people. Utilising some criteria, particularly those
defined by critics, he was a resounding failure because, as they
argue, socialism has failed. Many of the proposals made by
Cde Cheddi since his early days in politics, have more to do with
independent economic development and measures to eliminate poverty
within the context of market economies which he analysed with great
precision and perspicacity, even though he believed that the
developed economies had and could easily set aside the resources to
eliminate poverty in our lifetime, as in clear in his proposals for
a New Global Human Order. By my standards and on my assessment, Cde
Cheddi was a great success. Many of the ideas which he advocated
have been adopted or accepted. Many of the programmes he criticized
have failed. Again and again his vision has been vindicated. But
then I may be accused of bias.
I started with
Naipaul and I should let Naipaul have the last word. He cannot be
accused of bias. One of the reasons for his visit to Guyana was to
assess Cde Cheddi. Having regard to his own expertise, work and
achievements, he is supremely qualified to make a judgment. This is
his conclusion, after being at home with Cheddi: The house, with
its books and family pictures, felt calm. Thinking of that, thinking
of the Jagan children settled abroad, and thinking of the journey
that had begun in 1936, I wondered whether it couldn't be said that
Cheddi Jagan, in an essential personal way, had been a success.
In three days from
now, March 22, Cde Cheddi would have been 91. Let’s join together
and wish him a Happy Birthday!
Ralph Ramkarran
At the Home of Cde
Janet Jagan
65 Plantation Bel
Air
East Coast Demerara
Greater Georgetown
March 18, 2009