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Libya — Battle of the Arab Spring

If Gaddafi is defeated, it will be through the kind of fighting now raging on the streets of Misurat

It is 2 May, my twelfth full day in Misurata, and I'll start with a man I met at a private clinic that had been turned into the city's main trauma hos­pital. The uprising against Muammar Gaddafi was two months old. Loyalist forces surrounded Misurata and controlled parts of the city centre, but the thowar - or revolutionaries - were putting up fierce resistance despite being outgunned. The battle crackled and boomed day and night.

Dr Tahar Alkesa, a surgeon, was sitting on the curb outside one of the white tents erected in front of the clinic to serve as a makeshift emergency ward. He is 31 years old and undoubtedly handsome, but the hours and stress had marked and changed him. He was sallow and unshaven, with dark rings under his puffy eyes. The evening light was soft and fading fast as we chatted. He rubbed his arms for warmth.

I had seen Alkesa at work earlier in the day, when fresh casualties were arriving at the hospital every few minutes. An ambulance or pick-up truck would screech to a halt outside the tent, amid cries of "Allahu akbar". If the victim was a thowar, he usually had a bullet wound, having been picked off by a sniper. Civilian casualties generally had shrapnel injuries caused by shells or missiles, the most vicious of which was a Grad, a long, tubular projectile fired out of a 40-barrelled launcher known as "Stalin's organ". When they were fired into Misurata, you heard a whoosh, whoosh, whoosh, and then bang, bang, bang.

One Grad victim arrived in the back of a blue sedan. Both his legs had been blown off at the knee. A crimson stream of blood trailed on to the tarmac as he was carried into the tent. Within a few minutes he was wheeled out, covered by a blanket. People gathered outside and launched into an anguished but beautiful refrain: La ilaha illa Allah,/La ilaha illa Allah,/ al-shaheed habib Allah. ("There is no God but Allah, there is no God but Allah, the martyr is dear to Allah.")

Alkesa worked without interruption, stitching, cleaning, talking softly to the patients, offering words of reassurance. His expression changed little, even when a grimacing man in his mid-twenties was rushed in. The man's face was blackened by smoke and his eyes were white and wide with pain and terror. His filthy khaki pants were bloodstained and torn. His forearms were shredded. He was a tank driver. The thowar did not have tanks.

His first request was for a lethal injection, because he was convinced that he would be tortured or beaten for fighting for Gaddafi. Alkesa politely said no, assuring him that he would be looked after. He cleaned the man's leg and groin wounds and sewed up the strips of flesh on his arms. The tank driver said he was from Tripoli, and that his commanders had told him that Misurata was under the control of foreign-ers and terrorists who had been destroying mosques. He said he felt he had been cheated, and was sorry.

Now, sitting on the curb, Alkesa told me: "Inside me, I really did not want to look after that man. I did not enjoy treating him. But it was my duty to look after a human being."

It pained him even more that the tank driver was a Libyan, unlike those of Gaddafi's forces, a minority, who are mercenaries from elsewhere in Africa, usually Mauritania, Chad or Sudan. "I just ask myself, what has Gaddafi done with their brains to make them fight us like this? He is not a human being. He is evil. Satan."

Until a few days earlier, he had not seen his wife, his four-year-old daughter and one-year-old son for a month. So intense was the workload at the hospital that he had been sleeping there; his family had become trapped after government troops overran his neighbourhood. Because the mobile-phone networks in the city had been cut, he had no way of reaching his family. "For two or three days I was completely dissociated from this world," the doctor said. "Even though I was working, I was asking myself: 'Is this real? Am I even real?' Then I came round and started feeling myself again."

Still, he said, every night when his shift ended, he would walk to his car, open the door and sit in the driver's seat. He had nowhere to go. He just needed a private place to weep.

Misurata is Libya's third-largest city, about 200 kilometres east of the capital, Tripoli, where the Mediterranean coastline dips south in the Gulf of Sirte. In better times, if Gaddafi's rule in peacetime could be described that way, you would drive there from the capital with a government-approved guide by your side. But since the beginning of the revolution, the only way in to Misurata has been by boat. First, you fly to Cairo and drive west for 14 hours, crossing the Libyan border roughly halfway. That gets you to Benghazi, the eastern city where Libya's revolution began in mid-February.

From there, you travel on a local fishing boat, carrying emergency supplies and most likely weapons for the rebels. The voyage takes over 40 hours.
Another way in is on the Ionian Spirit, a Greek ferry chartered by the International Organisation for Migration to pick up foreign workers stranded in Misurata. That journey takes just under a day, assuming loyalist forces are not bombing the port - as they often were.

Misurata has a proud history. An important trading post since ancient times, it provided determined resistance to Italian occupation a century ago, prompting one commander to declare that Libya was a snake and Misurata its head - something local people love to tell you. In modern times it became Libya's industrial hub, with its port and one of Africa's largest steel factories. Low-slung and sprinkled with palm trees, the city is well laid out and mildly prosperous. Most of the 300,000-plus residents had enough food to eat and many had cars and decent houses, too. Yet, given the country's vast oil reserves and small population, Libya should be much wealthier, more akin to Dubai or Abu Dhabi, in the view of many people you meet.

Since seizing power in a coup d'état in 1969, Gaddafi has squandered tens of billions of dollars on vanity projects and misadventures, such as sponsoring international terrorism. Meanwhile, countless public works projects, such as the renovation of Misurata's main hospital, were allowed to drag on for years. Yet that was not the main reason Gaddafi was so despised here, Alkesa told me. He explained that by the time he was born, in 1979, Gaddafi had come up with his "Third Universal Theory" of government, which he claimed was superior to democracy and communism and would lead to "a state of the masses". Its principles were laid out in his Green Book, which became required reading in schools and universities.

Most Libyans thought it was quackery, but very few dared question it openly. Those who did so were hanged. As a public service, Gaddafi ensured that the executions were shown on state television. "I remember watching them as a child," Alkesa said. "Some loyalists would run up to the bodies as they hung and jerk them downwards, to make it more violent. My father would have tears in his eyes when he saw that. That is why we have always hated Gaddafi. Not because we lacked money or food, but because we had no freedom . . . We also believed that nobody could destroy him. We were resigned to waiting for God to take his life."

Then, in January this year, there was a revolution in Tunisia, which borders Libya to the west. And then the turmoil in Egypt, to the east. The despotic leaders of both countries were toppled by people power. Libyans were inspired, especially the youth, but still they had no idea how they could emulate their Arab neighbours, Alkesa said. Compared to Libya, Egypt and Tunisia had seemed like liberal democracies even before their revolutions. “Despite our dreams, nobody could imagine that this could happen in Libya," he said. "No one. Really, no one."

On 15 February, there was a small protest in Benghazi over the arrest of a lawyer representing victims of a prison massacre. Two days later, a protest had become a city-wide uprising. The ripples reached Misurata. Nothing had happened yet, but people sensed it might. Alkesa's two brothers, who sell gold jewellery, removed all the stock from their shops and brought it home. Something was about to happen.

On my arrival at the port in Misurata on 20 April, I was taken to a girls' school that had been turned into a media centre for local journalists, some of whom accompany the thowar to the front line each day. They post video footage on YouTube, or send it to al-Jazeera, to which every television set in the city appears to be tuned.

At the media centre, I met a 23-year-old man whom I'll call Ahmed Ali. He worked in the graphic arts and he spoke good English. He was one of Misurata's first revolutionaries. He told me that, on 17 February, he and a few dozen other young men, most of them in their early twenties, held a demonstration in support of the people of Benghazi.

They were arrested by the security forces, who beat them before hauling them away. "During interrogation they showed us our Facebook pages, where we had been talking about plans for a protest. They had been watching us even before," Ali told me.

Some of those arrested, including Ali, were held overnight, others for two days. It was the spark that Misurata needed. The editor of a newspaper where Ali sometimes worked announced he would not publish again until all the men were released. On 19 February, some of their families and friends went on to the streets to demand the same. “We were 30 people, and then in a few minutes we were 100. Soon we were 5,000," Ali said. "It was incredible."

The security forces opened fire. The first martyr of the revolution, Khalid Boshahma, was shot dead. For his funeral the next day, tens of thousands of people turned out in the city centre. Tear gas was used. Snipers who had been positioned in nearby buildings began firing in the air. People in the crowd started hugging each other, believing the army had taken their side by refusing to shoot at them. But then the snipers started picking people off. Dozens were shot in the head or chest. None of the protesters had guns - keeping a weapon was prohibited in Libya under Gaddafi - but their rage was enough to shake the army. As demonstrators began setting fire to buildings associated with the regime, state security hastily left Misurata, perhaps having been ordered to, or maybe out of fear. Tension was mounting in Tripoli, and so the government was unable to spare troops to mount a counterattack for two weeks. For many people in Misurata, it was the best fortnight of their lives, Ali told me. But they knew Gaddafi would be back.

Under the guidance of a hastily assembled judicial council, the people of Misurata prepared to defend their city. By looting the local armoury, they had acquired some AK-47s and grenade launchers but most of their weapons were home-made. Young men were instructed to prepare thousands of Molotov cocktails as well as fist-sized bombs known as gelatina, made from TNT.

When Gaddafi's forces finally attacked on 6 March, they met no resistance and were allowed to drive into Tripoli Street, the main boulevard, a few miles long, with its smart shops, coffee houses, banks and office blocks. Then, when the order came, hundreds of young men positioned on the rooftops along the street started hurling their bombs. The thowar joined in with their light weapons. Taken by surprise, the loyalist forces battled
for four hours to fight their way forward, but could not. Many of Gaddafi's soldiers were killed, and the survivors were driven back to the edge of the city.

The next attack, on 19 March, was on a different scale. Troops entered the city from several sides, Russian-made tanks leading the way. This time they forced their way into Tripoli Street. Out of armoured personnel carriers poured many hundreds of snipers, who raced up into Misurata's office buildings and residential apartment blocks.

Other units took over the city's vegetable market, the college of medical technology and the unfinished hospital. The urban conflict had begun: terrifying, old-fashioned war where men fired at each other at close quarters. The daily casualty count rose remorselessly. Ali's maternal uncle was shot in the leg by a sniper. One paternal uncle was killed. Another was kidnapped from his home and has not been seen since.

Like thousands of other men, many of them students or workers in their early twenties, Ali volunteered to join the fight. His father gave him an old hunting rifle that he had kept hidden in the house for years. Others in Ali's unit joked that while Gaddafi's forces were pounding the city with anti-aircraft guns, Ali was fighting back with an anti-duck gun. "We were at the front line, but I never wanted to be right at the front. It was really scary, as we did not have a leader yet and the situation was very confused," Ali told me as we drove around the city one day. "I don't have a strong heart like some of the guys."

Nor was he sustained by faith. "You probably think that I am a Muslim, because of this," he said, pointing to a Quran on his dashboard.

“I did shout Allahu akbar when we fought, but I don't believe in God and that virgins for the martyrs stuff, and neither do many of my friends. We like to listen to music, get drunk on the beach on home-made alcohol. I just can't tell my family how I feel, because my uncle is the head of a mosque."
After a few days at the front, Ali's colleagues suggested he might be more useful working in the media centre. He agreed, and gave his hunting rifle to another member of his unit. Two days later, that man was shot in the stomach. “I never found out where my father's gun went," Ali said.

By the time I arrived in Misurata, the street battle had been raging for weeks. Most of Tripoli Street was controlled by snipers, but Ali agreed to drive me and two other journalists to the side roads that intersected it, where units of thowar were in combat with the snipers.

The car belonged to his brother and was a mess, cigarette boxes, shoes, biscuit wrappers and a few tins of sardines littering the floor. The boot was filled with tins of canned food. Ali slipped a CD titled Alternative Ballads into the car stereo: soft rock for a hard war.

We passed bakeries where men and boys were queuing for rations of bread. Despite the scarcity of goods, supermarkets had kept most of their prices stable. A shop manager told me: "This is a war, not a time to make money."

Cigarettes were the one exception. Rothmans, Ali's brand of choice, had quadrupled in price to ten dinars (about £4). There were thowar checkpoints every few hundred metres, reinforced with huge berms of sand brought from the beach, or large pieces of concrete pipe. At one roadblock, twisted remnants of missiles and shells fired by Gaddafi's soldiers into Misurata had been placed on top of one pipe. Next to it, with an arrow pointing towards the display, was a sign that read, "These are his weapons." Poking out of the pipe was a rake and spade: "These are our weapons."

Closer to the city centre, the tactics used by the thowar in the guerrilla war became evident. Giant shipping containers filled with wet sand and metal filings had been used to block off streets to prevent armoured columns getting through. Petrol-soaked blankets lay on the road, thrown there in the hope they would get caught in the tanks' tracks, allowing a Molotov cocktail or rocket-propelled grenade to set one of them on fire.

Leaving the car, we walked carefully down a side road to the main street, where several destroyed tanks hinted that the strategy had been successful. There had been an almighty battle; all the buildings were pockmarked by bullets. In places whole walls had been blown away. Splinters of glass and chunks of metal littered the street. A mosque had sustained heavy damage. There were burnt-out cars everywhere.

Closer to Tripoli Street, the damage had extended to residential homes, long abandoned by their occupants. Some of the side streets were within sight of the snipers, so Ali drove along new roads that been created by the thowar by punching holes in garden walls.

We were now very close to the vegetable market, where Gaddafi's troops had a base, protected by seven tanks. A group of about 20 fighters was having a breakfast of tuna and bread. They had been slowly clearing Gaddafi soldiers out of the neighbourhood, fighting house-to-house battles.
The leader of the unit was the only one wearing a uniform, which he'd taken from a captured Gaddafi soldier. He was a cartoonist's image of a rebel fighter - muscular, with a trim beard, a knife tucked into his belt at the back. Most thowar commanders had nicknames, but he was a replacement and new to the job; the previous leader had been killed by a sniper the day before. Ali suggested that we call him Mr Smile. He liked it.

He had been working in construction in Malta before the revolution, but had quit his job and taken a boat to Benghazi, where he received three weeks' basic training in light weapons. Now, as the leader of his group in Misurata, Mr Smile had control of a battle wagon that looked like something out of the Mad Max movies. A heavy machine-gun had been fixed on the back of a pick-up. Two giant rectangles of 12-millimetre-thick steel had been welded on to the front and rear of the vehicle. Mr Smile walked quickly towards Tripoli Street, waving his arm for us to join him. Coming to a crossing, he lowered his head and charged across.

“Snipers," he said. With gunfire zipping nearby, we bid Mr Smile goodbye. "Please come back and visit tomorrow," he said.

In this city, the abnormal quickly became normal. After a few nights sleeping on the AstroTurf floor of a basement gymnasium where journalists were put up, I no longer jumped at the rat-a-tat of gunfire, or the explosions or the ambulance sirens that pierced the night. Ordinary people in Misurata, who in January could barely tell the difference between a gunshot and a car backfiring, were - in their own minds at least - aural experts on heavy weapons.

Boom. "That's a Grad." Bang. "That's a mortar." Boom. "A tank shell."

Bang. "Katyusha rocket." Boom. "Nato must be bombing again."

War became normal for children, too. The schools were all closed, and for a while parents kept their children inside, but after a few weeks they were let out again to play. Ali's ten-year-old cousin started a game with his friends where they tried to find a full set of bullet shells, from a 7.62mm AK-47 round to a 50-calibre heavy-machine-gun round. Inevitably, there were accidents. One afternoon, on a visit to a clinic on the western outskirts of Misurata, I saw a 14-year-old boy, Abdishakur. He was sitting in a wheelchair because of his osteoporosis. It looked like he had measles, but in fact his face had been blasted with tiny fragments of shrapnel. His 11-year-old brother, Ibrahim, had even more severe injuries, sustaining damage to both eyes. His father, a local imam, explained what had happened.

“The boys were looking after my sheep when Ibrahim found a bullet still in its shell," he said. "They did not realise it was dangerous. They took it home. Ibrahim was hitting it when it exploded."

Family life had acquired a strange new reality. Neighbourhoods close to Tripoli Street or in other areas controlled by Gaddafi forces quickly emptied out. Families moved in with relatives or friends. If they had nowhere to go,

a stranger might offer up his house, and move his own family in with somebody else. One evening, I visited the home of Mohamed Tag­ouri, a 50-year-old who owned two water tankers. It was a large, well-maintained house with four bedrooms, ideal for Tagouri, his wife and their five children. Now, there were 11 families living in the house, 62 people in all. Tagouri's sister and her three children, all under five, were among them. Her house, near Tripoli Street, was now "junk", Tagouri said. Her husband was dead, killed on the front line a few days earlier. "Every family in Misurata has lost a relative," Tagouri told me as he sat on the floor, drinking coffee. "But we cannot stop resisting. We have to finish the situation. We have no regrets."

Most days, the shelling was not too heavy and he would drive one of his tankers to the desalination plant near the port, which had become the city's main supply after Gaddafi had cut the water mains. He would then sell the water in town, or give it away if someone was low on cash. Many were, as no salaries were being paid and no banks were open, although neighbourhood committees were handing out small sums of money to all families. They were handing out food parcels, too, but Tagouri said they lacked a crucial item. “There is no macaroni in Misurata."

Despite the best efforts of Mr Smile's team and other bands of thowar, the snipers of Tripoli Street were still causing havoc. No target was off limits: not the mosques, which broadcast "Allahu akbar" over and over to give the thowar strength, and not ambulances. Children, too, were seen as fair game.

At the hospital, I saw a ten-year-old boy who had been shot in the head while stepping outside to play with his friends. Such was the fear of snipers that some people had been too terrified to risk fleeing the city centre when the snipers came in. These included 101 orphans housed close to Tripoli Street. After huddling together in the basement of their orphanage for weeks, they had nearly run out of food. The power and water had been cut.

Selima al-Teer was one of two social workers trapped with the children. "My colleague and I were so afraid of snipers, but we decided we had to run to try and find food," she told me. "We took a hammer, ran about 500 metres to a supply store, and broke the door down. We put food in a wheelbarrow and ran back to the orphanage."

They made the journey three times. “Each time we just said to each other: 'May God help us,' and then ran," she said. Eventually, with the help of the thowar, all the children escaped and found refuge in a Quranic school in a safer suburb of the city.

As the days passed, it was clear that the thowar were gaining the upper hand on the snipers. By blocking the streets, they had managed to cut Gaddafi's resupply lines and began clearing buildings along Tripoli Street one by one. To identify the snipers' hideouts, the revolutionaries crept along side roads and then held out small pieces of mirror to look up the street, examining the reflection for the tell-tale puff of smoke whenever a shot was fired. Then they attacked the buildings with their Kalashni­kovs, heavy machine-guns and RPGs. Finally, they sent fighters into the buildings. They worked through the floors, sometimes tossing burning tyres into rooms to smoke out the last of the snipers.

One night, at the media centre, Ali told me that the eight-storey insurance building, the tallest in Misurata, which stood at the very centre of the city at the top of Tripoli Street, had been declared clear. We drove there early the next morning. For the first time the extent of the war here became obvious. Many of the buildings near the insurance tower resembled those of Mogadishu, in Somalia, where bullets have flown freely for 20 years. There were four destroyed tanks. A handful of local people wandered around in a near daze, struggling to grasp what had happened.
With Ali leading the way, we entered the darkened reception area of the insurance building, picking our way up the rubble-strewn stairs. We soon came upon some mattresses where a few snipers had been sleeping, and empty tuna and tomato paste tins. Spent shells lay in heaps on the floor. There was graffiti on the wall, which Ali translated. “If we survive, we are warning you gays and dogs. We will not forgive anybody from Misurata. We will fuck your daughters and your wives."

On the roof of the building, snipers had been sleeping in the elevator maintenance room, mattresses packed tightly together. Outside, there were thousands of spent shells on the terrace, along with several cases that had held anti-tank missile launchers. The roof had a panoramic view of the city and of the epic destruction below. To be up here with a gun was to be a master of downtown Misurata. However, after weeks of starving the snipers of food and ammunition, and hitting the buildings with gunfire, the thowar had cleared all the snipers from Tripoli Street.

And yet the death toll mounted. One day, I saw Mr Smile at the hospital, looking harried. He had lost a few men, he told me. The war had entered a new phase as the revolutionaries tried to push Gaddafi's soldiers out of their bases in the vegetable market and other locations. On the back foot - Gaddafi's minions called it a strategic retreat - the loyalist forces had increased their long-distance shelling of the city.

“Do you think this is over?" asked Hassan Mohamed, a 51-year-old man who was showing me around a destroyed house where 16 of Gaddafi's troops had been killed. He had already lost several family members in the conflict. He expected to lose more. Then he answered his own question: "This is not over. Gaddafi will send more soldiers. He is much bigger than the devil himself."

As the thowar pushed forward, there were terrible battles on the southern and western outskirts of the city. The scale of the missile and mortar attacks by the pro-Gaddafi troops increased, loyalist shells often falling on civilian neighbourhoods, whether intentionally or not. On one night of particularly heavy bombardment, Ali frantically searched the internet for information on the best place to take shelter in a house when bombs were falling. He then took the microphone at Radio Free Libya, which had become the voice of Misurata's revolution, and told people what he had learned.

As the first uncensored medium in the city in 42 years, the station offered an insight into some of the challenges that Libya might face once Gaddafi was gone. People of Ali's father's generation had pushed for Radio Free Libya to adhere to conservative values, with a strong focus on religion. But Ali and his friends, of the generation that had started the revolution and was dying on the front lines, wanted something more progressive. "Look, us young guys don't just know about camels or how to fix a car," he told me. "We have the internet. We know about the world."

I saw Tahar Alkesa in the emergency tent two nights before I left Misurata on 3 May. His stubble had turned into a beard, with patches of grey. He looked even more fatigued than when we had first met. The casualties had not slowed - ten to 20 killed most days and dozens of others injured. We could hear the boom, boom, boom of Grad missiles being launched by Gaddafi's troops in the distance. As they were slowly being pushed back outside the city, government forces had trained much of their attention on the port, determined to cut off Misurata's lifeline. A few days earlier, a small naval team sent by Gaddafi had been intercepted as it laid floating sea-mines outside the harbour.

Inside the hospital, while trying to ascertain the day's casualty figures, I bumped into Suleiman Ibrahim, a prominent businessman in Misurata who had been helping out around the hospital for weeks with Haythem, his younger brother. Haythem had left for Malta that morning on a boat - one of the very few able to enter the harbour in days - to sort out business in China. The men's two younger brothers, twins in their early twenties, were both working for the hospital, one as an ambulance paramedic, the other as a doctor. "This war is disastrous. Misurata has paid a big, big price," Suleiman said.

He was desperate to get his parents out of the country, but his mother had refused to leave unless all her sons did, too. They would not.

I had heard the reason many times from different people: we win, or we die.

Xan Rice is a contributing writer of the New Statesman.

Xan Rice is Features Editor at the New Statesman.

This article first appeared in the 09 May 2011 issue of the New Statesman, Beyond the cult of Bin Laden

Picture: Archives Charmet / Bridgeman Images
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What Marx got right

...and what he got wrong.

1. You’re probably a capitalist – among other things

Are you a capitalist? The first question to ask is: do you own shares? Even if you don’t own any directly (about half of Americans do but the proportion is far lower in most other countries) you may have a pension that is at least partly invested in the stock market; or you’ll have savings in a bank.

So you have some financial wealth: that is, you own capital. Equally, you are probably also a worker, or are dependent directly or indirectly on a worker’s salary; and you’re a consumer. Unless you live in an autonomous, self-sufficient commune – very unusual – you are likely to be a full participant in the capitalist system.

We interact with capitalism in multiple ways, by no means all economic. And this accounts for the conflicted relationship that most of us (including me) have with capitalism. Typically, we neither love it nor hate it, but we definitely live it.

2. Property rights are fundamental to capitalism . . . but they are not absolute

If owning something means having the right to do what you want with it, property rights are rarely unconstrained. I am free to buy any car I want – so long as it meets European pollution standards and is legally insured; and I can drive it anywhere I want, at least on public roads, as long as I have a driver’s licence and keep to the speed limit. If I no longer want the car, I can’t just dump it: I have to dispose of it in an approved manner. It’s mine, not yours or the state’s, and the state will protect my rights over it. But – generally for good reason – how I can use it is quite tightly constrained.

This web of rules and constraints, which both defines and restricts property rights, is characteristic of a complex economy and society. Most capitalist societies attempt to resolve these tensions in part by imposing restrictions, constitutional or political, on arbitrary or confiscatory actions by governments that “interfere” with property rights. But the idea that property rights are absolute is not philosophically or practically coherent in a modern society.

3. What Marx got right about capitalism

Marx had two fundamental insights. The first was the importance of economic forces in shaping human society. For Marx, it was the “mode of production” – how labour and capital were combined, and under what rules – that explained more or less everything about society, from politics to culture. So, as modes of production change, so too does society. And he correctly concluded that industrialisation and capitalism would lead to profound changes in the nature of society, affecting everything from the political system to morality.

The second insight was the dynamic nature of capitalism in its own right. Marx understood that capitalism could not be static: given the pursuit of profit in a competitive economy, there would be constant pressure to increase the capital stock and improve productivity. This in turn would lead to labour-saving, or capital-intensive, technological change.

Putting these two insights together gives a picture of capitalism as a radical force. Such are its own internal dynamics that the economy is constantly evolving, and this in turn results in changes in the wider society.

4. And what he got wrong . . .

Though Marx was correct that competition would lead the owners of capital to invest in productivity-enhancing and labour-saving machinery, he was wrong that this would lead to wages being driven down to subsistence level, as had largely been the case under feudalism. Classical economics, which argued that new, higher-productivity jobs would emerge, and that workers would see their wages rise more or less in line with productivity, got this one right. And so, in turn, Marx’s most important prediction – that an inevitable conflict between workers and capitalists would lead ultimately to the victory of the former and the end of capitalism – was wrong.

Marx was right that as the number of industrial workers rose, they would demand their share of the wealth; and that, in contrast to the situation under feudalism, their number and geographical concentration in factories and cities would make it impossible to deny these demands indefinitely. But thanks to increased productivity, workers’ demands in most advanced capitalist economies could be satisfied without the system collapsing. So far, it seems that increased productivity, increased wages and increased consumption go hand in hand, not only in individual countries but worldwide.

5. All societies are unequal. But some are more unequal than others

In the late 19th and early 20th centuries, an increasing proportion of an economy’s output was captured by a small class of capitalists who owned and controlled the means of production. Not only did this trend stop in the 20th century, it was sharply reversed. Inherited fortunes, often dating back to the pre-industrial era, were eroded by taxes and inflation, and some were destroyed by the Great Depression. Most of all, after the Second World War the welfare state redistributed income and wealth within the framework of a capitalist economy.

Inequality rose again after the mid-1970s. Under Margaret Thatcher and Ronald Reagan, the welfare state was cut back. Tax and social security systems became less progressive. Deregulation, the decline of heavy industry and reduction of trade union power increased the wage differential between workers. Globally the chief story of the past quarter-century has been the rise of the “middle class”: people in emerging economies who have incomes of up to $5,000 a year. But at the same time lower-income groups in richer countries have done badly.

Should we now worry about inequality within countries, or within the world as a whole? And how much does an increasing concentration of income and wealth among a small number of people – and the consequent distortions of the political system – matter when set against the rapid ­income growth for large numbers of people in the emerging economies?

Growing inequality is not an inevitable consequence of capitalism. But, unchecked, it could do severe economic damage. The question is whether our political systems, national and global, are up to the challenge.

6. China’s road to capitalism is unique

The day after Margaret Thatcher died, I said on Radio 4’s Today programme: “In 1979, a quarter of a century ago, a politician came to power with a radical agenda of market-oriented reform; a plan to reduce state control and release the country’s pent-up economic dynamism. That changed the world, and we’re still feeling the impact. His name, of course, was Deng Xiaoping.”

The transition from state to market in China kick-started the move towards truly globalised capitalism. But the Chinese road to capitalism has been unique. First agriculture was liberalised, then entrepreneurs were allowed to set up small businesses, while at the same time state-owned enterprises reduced their workforces; yet there has been no free-for-all, either for labour or for capital. The movement of workers from rural to urban areas, and from large, unproductive, state-owned enterprises to more productive private businesses, though vast, has been controlled. Access to capital still remains largely under state control. Moreover, though its programme is not exactly “Keynesian”, China has used all the tools of macroeconomic management to keep growth high and relatively stable.

That means China is still far from a “normal” capitalist economy. The two main engines of growth have been investment and the movement of labour from the countryside to the cities. This in itself was enough, because China had so much catching-up to do. However, if the Chinese are to close the huge gap between themselves and the advanced economies, more growth will need to come from innovation and technological progress. No one doubts that China has the human resources to deliver this, but its system will have to change.

7. How much is enough?

The human instinct to improve our material position is deeply rooted: control over resources, especially food and shelter, made early human beings more able to reproduce. That is intrinsic to capitalism; the desire to acquire income and wealth motivates individuals to work, save, invent and invest. As Adam Smith showed, this benefits us all. But if we can produce more than enough for everybody, what will motivate people? Growth would stop. Not that this would necessarily be a bad thing: yet our economy and society would be very different.

Although we are at least twice as rich as we were half a century ago, the urge to consume more seems no less strong. Relative incomes matter. We compare ourselves not to our impoverished ancestors but to other people in similar situations: we strive to “keep up with the Joneses”. The Daily Telegraph once described a London couple earning £190,000 per year (in the top 0.1 per cent of world income) as follows: “The pair are worried about becoming financially broken as the sheer cost of middle-class life in London means they are stretched to the brink.” Talk about First World problems.

Is there any limit? Those who don’t like the excesses of consumerism might hope that as our material needs are satisfied, we will worry less about keeping up with the Joneses and more about our satisfaction and enjoyment of non-material things. It is equally possible, of course, that we’ll just spend more time keeping up with the Kardashians instead . . .

8. No more boom and bust

Are financial crises and their economic consequences part of the natural (capitalist) order of things? Politicians and economists prefer to think otherwise. No longer does anyone believe that “light-touch” regulation of the banking sector is enough. New rules have been introduced, designed to restrict leverage and ensure that failure in one or two financial institutions does not lead to systemic failure. Many would prefer a more wholesale approach to reining in the financial system; this would have gained the approval of Keynes, who thought that while finance was necessary, its role in capitalism should be strictly limited.

But maybe there is a more fundamental problem: that recurrent crises are baked into the system. The “financial instability” hypothesis says that the more governments and regulators stabilise the system, the more this will breed overconfidence, leading to more debt and higher leverage. And sooner or later the music stops. If that is the case, then financial capitalism plus human nature equals inevitable financial crises; and we should make sure that we have better contingency plans next time round.

9. Will robots take our jobs?

With increasing mechanisation (from factories to supermarket checkouts) and computerisation (from call centres to tax returns), is it becoming difficult for human beings to make or produce anything at less cost than a machine can?

Not yet – more Britons have jobs than at any other point in history. That we can produce more food and manufactured products with fewer people means that we are richer overall, leaving us to do other things, from economic research to performance art to professional football.

However, the big worry is that automation could shift the balance of power between capital and labour in favour of the former. Workers would still work; but many or most would be in relatively low-value, peripheral jobs, not central to the functioning of the economy and not particularly well paid. Either the distribution of income and wealth would widen further, or society would rely more on welfare payments and charity to reduce unacceptable disparities between the top and the bottom.

That is a dismal prospect. Yet these broader economic forces pushing against the interests of workers will not, on their own, determine the course of history. The Luddites were doomed to fail; but their successors – trade unionists who sought to improve working conditions and Chartists who demanded the vote so that they could restructure the economy and the state – mostly succeeded. The test will be whether our political and social institutions are up to the challenge.

10. What’s the alternative?

There is no viable economic alternative to capitalism at the moment but that does not mean one won’t emerge. It is economics that determines the nature of our society, and we are at the beginning of a profound set of economic changes, based on three critical developments.

Physical human input into production will become increasingly rare as robots take over. Thanks to advances in computing power and artificial intelligence, much of the analytic work that we now do in the workplace will be carried out by machines. And an increasing ability to manipulate our own genes will extend our lifespan and allow us to determine our offspring’s characteristics.

Control over “software” – information, data, and how it is stored, processed and manipulated – will be more important than control over physical capital, buildings and machines. The defining characteristic of the economy and society will be how that software is produced, owned and commanded: by the state, by individuals, by corporations, or in some way as yet undefined.

These developments will allow us, if we choose, to end poverty and expand our horizons, both materially and intellectually. But they could also lead to growing inequality, with the levers of the new economy controlled by a corporate and moneyed elite. As an optimist, I hope for the former. Yet just as it wasn’t the “free market” or individual capitalists who freed the slaves, gave votes to women and created the welfare state, it will be the collective efforts of us all that will enable humanity to turn economic advances into social progress. 

Jonathan Portes's most recent book is “50 Ideas You Really Need to Know: Capitalism” (Quercus)

Jonathan Portes is senior fellow The UK in a Changing Europe and Professor of Economics and Public Policy, King’s College London.

This article first appeared in the 22 June 2017 issue of the New Statesman, The zombie PM

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