Tuesday, May 5, 2009
Sunday, May 3, 2009
Socialism
Socialism
Socialism refers to a broad set of economic theories of social organization advocating state or collective ownership and administration of the means of production and distribution of goods, and the creation of an egalitarian society. Modern socialism originated in the late nineteenth-century working class political movement. Karl Marx posited that socialism would be achieved via class struggle and a proletarian revolution which represents the transitional stage between capitalism and communism.
Socialists mainly share the belief that capitalism unfairly concentrates power and wealth among a small segment of society that controls capital and creates an unequal society. All socialists advocate the creation of an egalitarian society, in which wealth and power are distributed more evenly, although there is considerable disagreement among socialists over how, and to what extent this could be achieved.
Socialism is not a discrete philosophy of fixed doctrine and program; its branches advocate a degree of social interventionism and economic rationalization, sometimes opposing each other. Another dividing feature of the socialist movement is the split on how a socialist economy should be established between the reformists and the revolutionaries. Some socialists advocate complete nationalization of the means of production, distribution, and exchange; while others advocate state control of capital within the framework of a market economy. Social democrats propose selective nationalization of key national industries in mixed economies combined with tax-funded welfare programs; Libertarian socialism (which includes Socialist Anarchism and Libertarian Marxism) rejects state control and ownership of the economy altogether and advocates direct collective ownership of the means of production via co-operative workers' councils and workplace democracy.
In the 1970s and the 1980s, Yugoslavian, Hungarian, Polish and Chinese Communists instituted various forms of market socialism combining co-operative and State ownership models with the free market exchange.[5] This is unlike the earlier theoretical market socialist proposal put forth by Oskar Lange in that it allows market forces, rather than central planners to guide production and exchange. Anarcho-syndicalists, Luxemburgists (such as those in the Socialist Party USA) and some elements of the United States New Left favor decentralized collective ownership in the form of cooperatives or workers' councils.
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Origins of socialism
Etymologically, the English coinage socialism (1839) derives from the French socialisme (1832), the mainstream introduction of which usage is attributed, in France, to Pierre Leroux and to Marie Roch Louis Reybaud; and in Britain to Robert Owen in 1827, father of the cooperative movement.
Western European social critics were the first, modern socialists – Robert Owen, Charles Fourier, Pierre-Joseph Proudhon, Louis Blanc, and Saint-Simon, who criticised the excessive poverty and inequality consequence of the Industrial Revolution, and advocated reform via the egalitarian distribution of wealth and the transformation of society to small communities without private property. Saint-Simon delineated collectivist principles reorganizing society to so build socialism upon planned, utopian communities.
Linguistically, the contemporary connotation of the words socialism and communism accorded with the adherents' and opponents' cultural attitude towards Religion. In Christian Europe, of the two, communism was believed the atheist way of life. In Protestant England, communism was too-culturally and -aurally close to the Papist Roman Catholic communion rite, hence English atheists denoted themselves socialists.
In 1847, Frederick Engels said Socialism was respectable on the Continent, while Communism was not; the Owenites, in England, and the Fourierists, in France, were considered Socialists, while working-class movements that "proclaimed the necessity of total social change" denoted themselves Communists. This, latter branch of Socialism, was "powerful enough" to produce the communisms of Étienne Cabet, in France, and Wilhelm Weitling, in Germany.
International Workingmen's Association – First International
Socialists made varying interpretations of The Communist Manifesto.
In 1864, the International Workingmen's Association (IWA) – the First International – was founded in London. Londoner Victor le Lubez, a French radical republican, invited Karl Marx to participate as a representative of German workers. In 1865, the IWA had its preliminary conference, and its first congress, at Geneva, in 1866. Karl Marx was member of the committee; he and Johann Georg Eccarius, a London tailor, were the two mainstays of the International, from its inception to its end; the First International was the premiere international forum promulgating socialism.
In 1869, under the influence of Marx and Engels, the Social Democratic Workers' Party of Germany was founded. In 1875, the SDW Party merged with the General German Workers' Association, of Ferdinand Lassalle, metamorphosing to the contemporary German Social Democratic Party (SPD). Since the 1870s, in Germany, Socialism was associated with trade unions, as the SPD constituted trade unions, while, in Austria, France, and other countries, socialist parties and anarchists did like-wise. That ideologic development greatly contrasts with the British experience of Socialism, wherein politically-moderate New Model Unions dominated unionized labor from the mid–nineteenth century, and trade-unionism was stronger than the political labor movement, until appearance of the Labour Party in the early twentieth century. The first U.S. socialist party was founded in 1876, then metamorphosed to a Marxist party in 1890; the Socialist Labor Party exists today. An early leader of the Socialist Labor Party was Daniel De Leon who had considerable influence beyond the United States as well.
Socialists supported and advocated many branches of Socialism – from the Gradualism of trade unions to the radical Revolution of Marx and Engels to the Anarchists emphasizing small-scale communities and agrarianism; all co-existing with the most influential Marxism and Social Democracy. The Anarchists, led by the Mikhail Bakunin, believed Capitalism and State inseparable, neither can be abolished without abolishing the other.
The Second International
As the ideas of Marx and Engels gained popularity, especially in Central Europe, Socialists united into an international organization, and founded the Second International in 1889, the centennial of the French Revolution; from 20 countries, 300 socialist and labor union organizations sent 384 delegates. The Second International was denominated the Socialist International with Friedrich Engels its honorary third-congress president in 1893.
In 1895, Engels said there now is a single, generally recognized, crystal clear theory of Marx and a single, great international army of socialists.
Despite being outlawed in Germany by the Anti-Socialist Laws of 1878, the Social Democratic Party of Germany masterfully used the limited, universal, male suffrage available to exercise the electoral strength necessary to compel rescindment of the Anti-Socialist laws in 1890. In 1893, the SPD received 1,787,000 votes, a quarter of the votes cast. Before the SPD published Engels's 1895 introduction to Marx's Class Struggles in France 1848–1850, they deleted phrases felt too-revolutionary for mainstream readers.
Karl Marx believed possible a peaceful, socialist transformation of England, despite the British Aristocracy and Ruling Class revolting against such a popular victory. Whereas the United States and Holland might also effect peaceful transformations, not France; Marx thought it had perfected . . . an enormous, bureaucratic and military organization, with its ingenious State machinery that required forcible deposition; nevertheless, with Karl Marx only eight years dead, Engels said it was possible to achieve a peaceful, socialist revolution in France.
World War I
When World War I began in 1914, most European socialists supported the bellicose aims of their national governments. The British, French, Belgian, and German social democratic parties discarded their political commitments to proletarian internationalism and worker solidarity to co-operate with their imperial governments.
In Russia, N. Lenin denounced the Europeans' Great War war as an imperialist conflict, and urged workers, worldwide, to use the war as occasion for proletarian revolution. The Second International dissolved during the war; Lenin, Leon Trotsky, Karl Liebknecht, and Rosa Luxemburg, and other anti-war Marxists conferred in the Zimmerwald Conference in September 1915.
The Revolutions of 1917–23
Vladimir Lenin (background) and Joseph Stalin.
By the year 1917, the third year of a ninety-day war, the patriotism propelling the First World War metamorphosed to political radicalism in most of Europe, the United States (cf. Socialism in the United States), and Australia. In February, popular revolution exploded in Russia when workers, soldiers, and peasants established soviets (councils) wielding executive power in a Provisional Government valid until convocation of a Constituent Assembly. In April, Lenin arrived in Russia from Germany, calling for All power to the soviets. In October, his party (the Bolsheviks) won support of most soviets while he and Trotsky simultaneously led the October Revolution. On 25 October 1917, at the Petrograd Soviet, Lenin declared "Long live the world socialist revolution!"
On 26 October, the day after assuming executive power, Lenin wrote Draft Regulations on Workers' Control, which granted workers control of businesses with more than five workers and office employees, and access to all books, documents, and stocks, and whose decisions were to be "binding upon the owners of the enterprises". Immediately, the Bolshevik Government nationalised banks, most industry, and disavowed the national debts of the deposed Romanov royal régime; it governed via elected soviets; and it sued for peace and withdrew from the First World War.
Despite that, the peasant Socialist-Revolutionary (SR) Party won the Constituent Assembly against the Bolshevik Party, who then acted resolutely the next day. The Constituent Assembly convened for thirteen hours (16.00 hrs 5 Jan – 4.40 hrs 6 Jan 1918). Socialist-Revolutionary Leader Victor Chernov was elected President of a Russian republic; next day, the Bolsheviks dissolved the Constituent Assembly. The Bolshevik Russian Revolution of October 1917 engendered Communist parties worldwide, and their concomitant revolutions of 1917-23. Few Communists, then, doubted that the Russian success of Socialism depended upon successful, working-class socialist revolutions effected in developed capitalist-economy countries; thus, in 1919, Lenin and Trotsky organised the world's Communist parties into a new international association of workers – the Communist International, the Comintern, also denominated the Third International.
In November 1918, the German Revolution deposed the monarchy; as in Russia, the councils of workers and soldiers were comprised mostly of SPD and USPD (Independent Social Democrats) revolutionaries installed to office as the Weimar republic; the SPD were in power, led by Friedrich Ebert. In January 1919. the left-wing Spartacist Putsch challenged the SPD government, and President Ebert ordered the Army and Freikorps mercenaries to violently suppress the Workers' and Soldiers' councils. In the event, Communist leaders Karl Liebknecht and Rosa Luxemburg were captured and summarilly executed. Also that year, in Bavaria, the Communist régime of Kurt Eisner in Bavaria was so suppressed. In Hungary, Béla Kun briefly headed a Hungarian Communist government. Throughout, popular socialist revolutions in Vienna, Italy's northern industrial cities, the German Ruhr (1920) and Saxony (1923); all failed in spreading revolutionary socialism to Europe's advanced, capitalist countries.
In Russia, Socialist circumstances were desperate; in August 1918, assassin Fanya Kaplan shot Lenin in the neck, leaving him with wounds from which he never fully recovered. Earlier, in June, the Soviet Government had implemented War Communism to manage the foreign economic boycott of Russia, and invasions by Imperial Germany, Imperial Britain, the U.S., and France, interfering in the Russian Civil War beside royalist White Russians; to control starvation, private business was outlawed, strikers could be shot, the white collar classes were forced to work manually, and, from the peasantry, they required grain for workers in cities.
By 1920, as Red Army commander, Trotsky had mostly defeated the royalist White Armies. In 1921, War Communism was ended, and, under the New Economic Policy (NEP), private ownership was allowed for small and medium peasant enterprises; industry remained State-controlled, Lenin acknowledged that the NEP was a necessary capitalist measure for a country mostly unripe for Socialism, thus, the existence of NEP businessmen and NEP women (NEP Men) flourished, and the Kulaks gained capitalist power as rich peasants.
In 1923, on seeing the Soviet State's greatly coercive power, the dying Lenin said Russia had reverted to a bourgeois tsarist machine . . . barely varnished with socialism. After his death (January 1924), the Communist Party of the Soviet Union – then controlled by Joseph Stalin – rejected the theory that socialism could not be built solely in the U.S.S.R., and declared the Socialism in One Country policy. Despite the marginal Left Opposition's demanding restoration of Soviet Democracy, Stalin developed a bureaucratic, authoritarian government, that was condemned by Democratic Socialists, Anarchists, Trotskyists, et alles, for undermining the initial Socialist ideals of the Bolshevik Russian Revolution.
The inter-war era and World War II
Joseph Stalin
The Russian Revolution of October 1917 brought about the definitive ideological division between Communists as denoted with a capital "C" on the one hand and other communist and socialist trends such as anarcho-communists and social democrats, on the other. The Left Opposition in the Soviet Union gave rise to Trotskyism which was to remain isolated and insignificant for another fifty years, except in Sri Lanka where Trotskyism gained the majority and the pro-Moscow wing was expelled from the Communist Party.
In 1922, the fourth congress of the Communist International took up the policy of the United Front, urging Communists to work with rank and file Social Democrats while remaining critical of their leaders, who they criticized for "betraying" the working class by supporting the war efforts of their respective capitalist classes. For their part, the social democrats pointed to the dislocation caused by revolution, and later, the growing authoritarianism of the Communist Parties. When the Communist Party of Great Britain applied to affiliate to the Labour Party in 1920 it was turned down.
Socialism after World War II
In 1945, the world’s three great powers met at the Yalta Conference to negotiate an amicable and stable peace. UK Prime Minister Winston Churchill joined USA President Franklin D. Roosevelt and Joseph Stalin, General Secretary of the Communist Party of the Soviet Union's Central Committee. With the relative decline of Britain compared to the two superpowers, the USA and the Soviet Union, however, many viewed the world as "bi-polar" – a world with two irreconcilable and antagonistic political and economic systems. Many termed the Soviet Union "socialist", not least the Soviet Union itself, but also commonly in the USA, China, Eastern Europe, and many parts of the world where Communist Parties had gained a mass base. In addition, scholarly critics of the Soviet Union, such as economist Friedrich Hayek were commonly cited as critics of socialism. This view was not universally shared, particularly in Europe, and especially in Britain, where the Communist Party was very weak. In 1951, British Health Minister Aneurin Bevan expressed the view that, "It is probably true that Western Europe would have gone socialist after the war if Soviet behaviour had not given it too grim a visage. Soviet Communism and Socialism are not yet sufficiently distinguished in many minds."
Chinese socialism
Little Red Book's 5 to 6.5 billion copies might be a world record.
In 1949, the Chinese Revolution established a Communist state in China. Criticizing the invasion and trade embargo of the young Soviet state, Bevan wrote "At the moment it looks as though the United States is going to repeat the same folly in China... You cannot starve a national revolution into submission. You can starve it into a repressive dictatorship; you can starve it to the point where the hellish logic of the police state takes charge."
Elsewhere
In 1951, the Socialist International was refounded by the European social democratic parties. It declared: "Communism has split the International Labour Movement and has set back the realisation of Socialism in many countries for decades... Communism falsely claims a share in the Socialist tradition. In fact it has distorted that tradition beyond recognition. It has built up a rigid theology which is incompatible with the critical spirit of Marxism." In the postwar years, socialism became increasingly influential throughout the so-called Third World. Countries in Africa, Asia, and Latin America frequently adopted socialist economic programs. In many instances, these nations nationalized industries held by foreign owners. The Soviet Union had become a superpower through its adoption of a planned economy, albeit at enormous human cost. This achievement seemed hugely impressive from the outside, and convinced many nationalists in the former colonies, not necessarily communists or even socialists, of the virtues of state planning and state-guided models of social development. This was later to have important consequences in countries like China, India and Egypt, which tried to import some aspects of the Soviet model.
The last quarter of the twentieth century marked a period of major crisis for Communists in the Soviet Union and the Eastern bloc, where the growing shortages of housing and consumer goods, combined with the lack of individual rights to assembly and speech, began to disillusion more and more Communist party members. With the rapid collapse of Communist party rule in the Soviet Union and Eastern Europe between 1989 and 1991, the Soviet version of socialism has effectively disappeared as a worldwide political force.
Social Democracy in power
Clement Attlee, U.K. Prime Minister, Labour Party government, 1945–51
In 1945, the British Labour Party, led by Clement Attlee, was elected to office based upon a radical, socialist program. Socialist and Communist parties dominated the post-war French, Italian, Czehchoslovak, Belgian, Norwegian, and other, governments. In Sweden, the Social Democratic Party held power from 1936 to 1976 and then again from 1982 to 1991 and from 1994 to 2006. Labour parties governed Australia and New Zealand. In Germany, the Social Democrats lost in 1949. In Eastern Europe, the war-resistance unity, between Social Democrats and Communists, continued in the immediate postwar years, until Stalin imposed "Communist" régimes.
At first, Social Democracy held the view of having begun a serious assault against Want, Disease, Ignorance, Squalor, and Idleness, the five Giant Evils afflicting the working class, identified by the British social reformer William Beveridge; however, from the Labour Party's left wing, Aneurin Bevan, who had introduced the Labour Party’s National Health Service in 1948, criticised the Attlee Government for not progressing further, demanding that the main streams of economic activity are brought under public direction with economic planning, criticising the implementation of nationalization for not empowering the workers, in the nationalised industries, with democratic control of operations.
In Place of Fear, the most widely read socialist book of the period, Bevan begins: A young miner in a South Wales colliery, my concern was with one practical question: Where does the power lie in this particular state of Great Britain, and how can it be attained by the workers?
The Frankfurt Declaration of the re-founded Socialist International stated:
1. From the nineteenth century onwards, Capitalism has developed immense productive forces. It has done so at the cost of excluding the great majority of citizens from influence over production. It put the rights of ownership before the rights of Man. It created a new class of wage-earners without property or social rights. It sharpened the struggle between the classes.
Although the world contains resources, which could be made to provide a decent life for everyone, Capitalism has been incapable of satisfying the elementary needs of the world’s population. It proved unable to function without devastating crises and mass unemployment. It produced social insecurity and glaring contrasts between rich and poor. It resorted to imperialist expansion and colonial exploitation, thus making conflicts, between nations and races, more bitter. In some countries, powerful capitalist groups helped the barbarism of the past to raise its head again in the form of Fascism and Nazism.
— The Frankfurt Declaration 1951
The post-war social democrat governments introduced social reform and wealth redistribution via state welfare and taxation. The new U.K. Labour Government effected the nationalizations of major public utilities such as mines, gas, coal, electricity, rail, iron, steel, and the Bank of England. To wit, France claimed to be the world's most State-controlled, capitalist country.
In the U.K., the National Health Service provided free health care to all of the British population. Working-class housing was provided in council housing estates, and university education available via a school grant system. Ellen Wilkinson, Minister for Education, introduced free milk in schools, sayining, in a 1946 Labor Party conference: Free milk will be provided in Hoxton and Shoreditch, in Eton and Harrow. What more social equality can you have than that? To wit, Clement Attlee's biographer says this contributed enormously to the defeat of childhood illnesses resulting from bad diet. Generations of poor children grew up stronger and healthier, because of this one, small, and inexpensive act of generosity, by the Attlee government.
In 1956, Anthony Crosland said that 25 per cent of British industry was nationalized, and that public employees, including those in nationalised industries, constituted a like percentage of the country's total employed population. Yet the Social Democrats did not seek ending capitalism; national outlook and dedication to the “post-war order” prevented nationalization of the industrial commanding heights, as Lenin put it. In 1945, they were denominated socialist, but, in the U.K., Social Democrats were the parliamentary majority, The government had not the smallest intention of bringing in the ‘common ownership of the means of production, distribution, and exchange’ as written in Clause 4 of the Labor Party Constitution; nevertheless, Crosland said Capitalism had ended: To the question, ‘Is this still capitalism?’, I would answer ‘No’. In 1959, the German Social Democratic Party adopted the Godesberg Program, rejecting class struggle and Marxism.
In 1980, with the rise of conservative neoliberal politicians such as Ronald Reagan, in the U.S., Margaret Thatcher, in Britain, and Brian Mulroney, in Canada, the Western, socialist welfare state was attacked from within. As Education Secretary of the Conservative Government, 1970–1974, Margaret Thatcher abolished free milk for school children; thus, monetarists and neoliberals attacked social welfare systems as impediments to private entrepreneurship at public expense.
In the 1980s and 1990s, Western European Socialists were pressured to reconcile their collectivist economic programmes with a free-market-based communal European economy. In the U.K., the Labour Party struggled much; its epitome is Neil Kinnock’s passionate and public attack against the Party's Militant Tendency at a Labour Party conference, and his repudiation of the demands of the defeated striking miners after a year-long strike against pit closures. In the 1990s, released from the Left's progressive pressure, the Labour Party, under Tony Blair, posited policies based upon the free market economy to deliver public services via private contractors.
In 1989, at Stockholm, the 18th Congress of the Socialist International adopted a Declaration of Principles, saying that Democratic socialism is an international movement for freedom, social justice, and solidarity. Its goal is to achieve a peaceful world where these basic values can be enhanced and where each individual can live a meaningful life with the full development of his or her personality and talents, and with the guarantee of human and civil rights in a democratic framework of society.
The objectives of the Party of European Socialists, the European Parliament's Socialist Bloc, are to pursue international aims in respect of the principles on which the European Union is based, namely principles of freedom, equality, solidarity, democracy, respect of Human Rights and Fundamental Freedoms, and respect for the Rule of Law. Today, the rallying cry of the French Revolution – Equality, Liberty, and Fraternity – now constitute essential socialist values.
In 1995, the British Labour Party revised its political aims: The Labour Party is a democratic socialist party. It believes that, by the strength of our common endeavour we achieve more than we achieve alone, so as to create, for each of us, the means to realise our true potential, and, for all of us, a community in which power, wealth, and opportunity are in the hands of the many, not the few; famously, Cabinet minister Herbert Morrison said, Socialism is what the Labour Government does.
Socialism in the 21st century
Hugo Chavez
In some Latin American countries, socialism has re-emerged in recent years, with an anti-imperialist stance, the rejection of the policies of neo-liberalism and the nationalisation or part nationalisation of oil production, land and other assets. Venezuelan President Hugo Chávez and Bolivian President Evo Morales, for instance, refer to their political programs as socialist. Chávez has coined the term "21st century socialism" (sometimes translated more literally as "Socialism of the 21st century"). After winning re-election in December 2006, President Chávez said, "Now more than ever, I am obliged to move Venezuela's path towards socialism."
In the developing world, some elected socialist parties and communist parties remain prominent, particularly in India and Nepal. The Communist Party of Nepal in particular calls for multi-party democracy, social equality, and economic prosperity. In China, the Chinese Communist Party has led a transition from the command economy of the Mao period to an economic program they term the socialist market economy or "socialism with Chinese characteristics." Under Deng Xiaoping, the leadership of China embarked upon a program of market-based reform that was more sweeping than had been Soviet leader Mikhail Gorbachev's perestroika program of the late 1980s. Deng's program, however, maintained state ownership rights over land, state or cooperative ownership of much of the heavy industrial and manufacturing sectors and state influence in the banking and financial sectors. In South Africa the ANC abandoned its partial socialist allegiances on taking power and followed a standard neo-liberal route. But from 2005 through to 2007 the country was wracked by many thousands of protests from poor communities. One of these gave rise to a mass movement of shack dwellers, Abahlali baseMjondolo that, despite major police suppression, continues to advocate for popular people's planning and against the marketization of land and housing. Communist candidate Dimitris Christofias won a crucial presidential runoff in Cyprus, defeating his conservative rival with a majority of 53%. The Left Party in Germany has also grown in popularity.
African socialism continues to be a major ideology around the continent.
There are also a number of remaining Communist states, including the People's Republic of China, Cuba, North Korea, Laos and Vietnam.
Socialism as an economic system
Economically, socialism denotes an economic system of state ownership and / or worker ownership of the means of production and distribution. In the U.S.S.R., state ownership of the means of production was combined with central planning – what goods and services to make and provide, how they were to be produced, the quantities, and the sale prices (cf. Economy of the Soviet Union). Soviet economic planning was an alternative to allowing the market (supply and demand) to determine prices and production. During the Great Depression, socialists considered Soviet-style planned economies the remedy to Capitalism's inherent flaws – monopoly, business cycles, unemployment, unequally distributed wealth, and the economic exploitation of workers.
In the West, neoclassical liberal economists, e.g. Friedrich Hayek and Milton Friedman, said that socialist planned economies would fail, because planners could not have the business information inherent to a market economy (cf. economic calculation problem), nor would managers in Soviet-style socialist economies match the motivation of profit.
Consequent to Soviet economic stagnation in the 1970s and 1980s, socialists began to accept parts of their critique. Polish economist Oskar Lange, an early proponent of "market socialism", proposed a Central Planning Board establishing prices and controls of investment. The prices of producer goods would be determined through trial and error. The prices of consumer goods would be determined by supply and demand, with the supply coming from state-owned firms that would set their prices equal to the marginal cost, as in perfectly competitive markets. The Central Planning Board would distribute a "social dividend" to ensure reasonable income equality.
In Western Europe, particularly in the period after World War II, many socialist parties in government implemented what became known as mixed economies. These governments nationalised major and economically vital industries while permitting a free market to continue in the rest. These were most often monopolistic or infrastructural industries like mail, railways, power and other utilities. In some instances a number of small, competing and often relatively poorly financed companies in the same sector were nationalised to form one government monopoly for the purpose of competent management, of economic rescue (in the UK, British Leyland, Rolls Royce), or of competing on the world market. Typically, this was achieved through compulsory purchase of the industry (i.e. with compensation). For example in the UK the nationalization of the coal mines in 1947 created a coal board charged with running the coal industry commercially so as to be able to meet the interest payable on the bonds which the former mine owners' shares had been converted into.
Some socialists propose various decentralized, worker-managed economic systems. One such system is the "cooperative economy," a largely free market economy in which workers manage the firms and democratically determine remuneration levels and labor divisions. Productive resources would be legally owned by the cooperative and rented to the workers, who would enjoy usufruct rights. Another, more recent, variant is "participatory economics," wherein the economy is planned by decentralized councils of workers and consumers. Workers would be remunerated solely according to effort and sacrifice, so that those engaged in dangerous, uncomfortable, and strenuous work would receive the highest incomes and could thereby work less. Some Marxists and Anarcho-communists also propose a worker managed economy based on workers councils, however unlike participatory economics in Anarcho communism workers are remunerated according to their needs (which are largely self determined in an anarcho communist system). Recently socialists have also been working with the Technocracy movement to promote such concepts as Energy Accounting.
Socialism and social and political theory
Doctrinally, Marxist and non-Marxist social theorists agree that Socialism developed in reaction to modern industrial capitalism, but disagree on the nature of their relationship. Émile Durkheim posits that socialism is rooted in the desire to bring the State closer to the realm of individual activity, in countering the anomie of a Capitalist society. In socialism, Max Weber saw acceleration of the rationalization started in Capitalism. As critic of Socialism, he warned that placing the economy entirely in the State's bureaucratic control would result in an iron cage of future bondage.
In the middle of the twentieth century, Socialist intellectuals retained much influence in European philosophy; Eros and Civilization (1955), by Herbert Marcuse, explicitly attempts merging Marxism with Freudianism; and the social science of Structuralism much influenced the socialist New Left in the 1960s and the 1970s.
Criticisms of socialism
Criticisms of socialism range from claims that socialist economic and political models are inefficient or incompatible with civil liberties to condemnation of specific socialist states. There is much focus on the economic performance and human rights records of Communist states, although some proponents of socialism reject the categorization of such states as socialist.
In the economic calculation debate, classical liberal Friedrich Hayek argued that a socialist command economy could not adequately transmit information about prices and productive quotas due to the lack of a price mechanism, and as a result it could not make rational economic decisions. Ludwig von Mises argued that a socialist economy was not possible at all. Hayek further argued that the social control over distribution of wealth and private property advocated by socialists cannot be achieved without reduced prosperity for the general populace, and a loss of political and economic freedoms.
Hayek's views were echoed by Winston Churchill in an electoral broadcast prior to the British general election of 1945:
. . . a socialist policy is abhorrent to the British ideas of freedom. Socialism is inseparably interwoven with totalitarianism and the object worship of the state. It will prescribe for every one where they are to work, what they are to work at, where they may go and what they may say. Socialism is an attack on the right to breathe freely. No socialist system can be established without a political police. They would have to fall back on some form of Gestapo, no doubt very humanely directed in the first instance.
This statement was challenged the next day by the Labour Party candidate, Clement Attlee, who went on to win the election:
The Prime Minister made much play last night with the rights of the individual and the dangers of people being ordered about by officials. I entirely agree that people should have the greatest freedom compatible with the freedom of others. There was a time when employers were free to work little children for sixteen hours a day. I remember when employers were free to employ sweated women workers on finishing trousers at a penny halfpenny a pair. There was a time when people were free to neglect sanitation so that thousands died of preventable diseases. For years every attempt to remedy these crying evils was blocked by the same plea of freedom for the individual. It was in fact freedom for the rich and slavery for the poor. Make no mistake, it has only been through the power of the State, given to it by Parliament, that the general public has been protected against the greed of ruthless profit-makers and property owners.
Socialists mainly share the belief that capitalism unfairly concentrates power and wealth among a small segment of society that controls capital and creates an unequal society. All socialists advocate the creation of an egalitarian society, in which wealth and power are distributed more evenly, although there is considerable disagreement among socialists over how, and to what extent this could be achieved.
Socialism is not a discrete philosophy of fixed doctrine and program; its branches advocate a degree of social interventionism and economic rationalization, sometimes opposing each other. Another dividing feature of the socialist movement is the split on how a socialist economy should be established between the reformists and the revolutionaries. Some socialists advocate complete nationalization of the means of production, distribution, and exchange; while others advocate state control of capital within the framework of a market economy. Social democrats propose selective nationalization of key national industries in mixed economies combined with tax-funded welfare programs; Libertarian socialism (which includes Socialist Anarchism and Libertarian Marxism) rejects state control and ownership of the economy altogether and advocates direct collective ownership of the means of production via co-operative workers' councils and workplace democracy.
In the 1970s and the 1980s, Yugoslavian, Hungarian, Polish and Chinese Communists instituted various forms of market socialism combining co-operative and State ownership models with the free market exchange.[5] This is unlike the earlier theoretical market socialist proposal put forth by Oskar Lange in that it allows market forces, rather than central planners to guide production and exchange. Anarcho-syndicalists, Luxemburgists (such as those in the Socialist Party USA) and some elements of the United States New Left favor decentralized collective ownership in the form of cooperatives or workers' councils.
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Origins of socialism
Etymologically, the English coinage socialism (1839) derives from the French socialisme (1832), the mainstream introduction of which usage is attributed, in France, to Pierre Leroux and to Marie Roch Louis Reybaud; and in Britain to Robert Owen in 1827, father of the cooperative movement.
Western European social critics were the first, modern socialists – Robert Owen, Charles Fourier, Pierre-Joseph Proudhon, Louis Blanc, and Saint-Simon, who criticised the excessive poverty and inequality consequence of the Industrial Revolution, and advocated reform via the egalitarian distribution of wealth and the transformation of society to small communities without private property. Saint-Simon delineated collectivist principles reorganizing society to so build socialism upon planned, utopian communities.
Linguistically, the contemporary connotation of the words socialism and communism accorded with the adherents' and opponents' cultural attitude towards Religion. In Christian Europe, of the two, communism was believed the atheist way of life. In Protestant England, communism was too-culturally and -aurally close to the Papist Roman Catholic communion rite, hence English atheists denoted themselves socialists.
In 1847, Frederick Engels said Socialism was respectable on the Continent, while Communism was not; the Owenites, in England, and the Fourierists, in France, were considered Socialists, while working-class movements that "proclaimed the necessity of total social change" denoted themselves Communists. This, latter branch of Socialism, was "powerful enough" to produce the communisms of Étienne Cabet, in France, and Wilhelm Weitling, in Germany.
International Workingmen's Association – First International
Socialists made varying interpretations of The Communist Manifesto.
In 1864, the International Workingmen's Association (IWA) – the First International – was founded in London. Londoner Victor le Lubez, a French radical republican, invited Karl Marx to participate as a representative of German workers. In 1865, the IWA had its preliminary conference, and its first congress, at Geneva, in 1866. Karl Marx was member of the committee; he and Johann Georg Eccarius, a London tailor, were the two mainstays of the International, from its inception to its end; the First International was the premiere international forum promulgating socialism.
In 1869, under the influence of Marx and Engels, the Social Democratic Workers' Party of Germany was founded. In 1875, the SDW Party merged with the General German Workers' Association, of Ferdinand Lassalle, metamorphosing to the contemporary German Social Democratic Party (SPD). Since the 1870s, in Germany, Socialism was associated with trade unions, as the SPD constituted trade unions, while, in Austria, France, and other countries, socialist parties and anarchists did like-wise. That ideologic development greatly contrasts with the British experience of Socialism, wherein politically-moderate New Model Unions dominated unionized labor from the mid–nineteenth century, and trade-unionism was stronger than the political labor movement, until appearance of the Labour Party in the early twentieth century. The first U.S. socialist party was founded in 1876, then metamorphosed to a Marxist party in 1890; the Socialist Labor Party exists today. An early leader of the Socialist Labor Party was Daniel De Leon who had considerable influence beyond the United States as well.
Socialists supported and advocated many branches of Socialism – from the Gradualism of trade unions to the radical Revolution of Marx and Engels to the Anarchists emphasizing small-scale communities and agrarianism; all co-existing with the most influential Marxism and Social Democracy. The Anarchists, led by the Mikhail Bakunin, believed Capitalism and State inseparable, neither can be abolished without abolishing the other.
The Second International
As the ideas of Marx and Engels gained popularity, especially in Central Europe, Socialists united into an international organization, and founded the Second International in 1889, the centennial of the French Revolution; from 20 countries, 300 socialist and labor union organizations sent 384 delegates. The Second International was denominated the Socialist International with Friedrich Engels its honorary third-congress president in 1893.
In 1895, Engels said there now is a single, generally recognized, crystal clear theory of Marx and a single, great international army of socialists.
Despite being outlawed in Germany by the Anti-Socialist Laws of 1878, the Social Democratic Party of Germany masterfully used the limited, universal, male suffrage available to exercise the electoral strength necessary to compel rescindment of the Anti-Socialist laws in 1890. In 1893, the SPD received 1,787,000 votes, a quarter of the votes cast. Before the SPD published Engels's 1895 introduction to Marx's Class Struggles in France 1848–1850, they deleted phrases felt too-revolutionary for mainstream readers.
Karl Marx believed possible a peaceful, socialist transformation of England, despite the British Aristocracy and Ruling Class revolting against such a popular victory. Whereas the United States and Holland might also effect peaceful transformations, not France; Marx thought it had perfected . . . an enormous, bureaucratic and military organization, with its ingenious State machinery that required forcible deposition; nevertheless, with Karl Marx only eight years dead, Engels said it was possible to achieve a peaceful, socialist revolution in France.
World War I
When World War I began in 1914, most European socialists supported the bellicose aims of their national governments. The British, French, Belgian, and German social democratic parties discarded their political commitments to proletarian internationalism and worker solidarity to co-operate with their imperial governments.
In Russia, N. Lenin denounced the Europeans' Great War war as an imperialist conflict, and urged workers, worldwide, to use the war as occasion for proletarian revolution. The Second International dissolved during the war; Lenin, Leon Trotsky, Karl Liebknecht, and Rosa Luxemburg, and other anti-war Marxists conferred in the Zimmerwald Conference in September 1915.
The Revolutions of 1917–23
Vladimir Lenin (background) and Joseph Stalin.
By the year 1917, the third year of a ninety-day war, the patriotism propelling the First World War metamorphosed to political radicalism in most of Europe, the United States (cf. Socialism in the United States), and Australia. In February, popular revolution exploded in Russia when workers, soldiers, and peasants established soviets (councils) wielding executive power in a Provisional Government valid until convocation of a Constituent Assembly. In April, Lenin arrived in Russia from Germany, calling for All power to the soviets. In October, his party (the Bolsheviks) won support of most soviets while he and Trotsky simultaneously led the October Revolution. On 25 October 1917, at the Petrograd Soviet, Lenin declared "Long live the world socialist revolution!"
On 26 October, the day after assuming executive power, Lenin wrote Draft Regulations on Workers' Control, which granted workers control of businesses with more than five workers and office employees, and access to all books, documents, and stocks, and whose decisions were to be "binding upon the owners of the enterprises". Immediately, the Bolshevik Government nationalised banks, most industry, and disavowed the national debts of the deposed Romanov royal régime; it governed via elected soviets; and it sued for peace and withdrew from the First World War.
Despite that, the peasant Socialist-Revolutionary (SR) Party won the Constituent Assembly against the Bolshevik Party, who then acted resolutely the next day. The Constituent Assembly convened for thirteen hours (16.00 hrs 5 Jan – 4.40 hrs 6 Jan 1918). Socialist-Revolutionary Leader Victor Chernov was elected President of a Russian republic; next day, the Bolsheviks dissolved the Constituent Assembly. The Bolshevik Russian Revolution of October 1917 engendered Communist parties worldwide, and their concomitant revolutions of 1917-23. Few Communists, then, doubted that the Russian success of Socialism depended upon successful, working-class socialist revolutions effected in developed capitalist-economy countries; thus, in 1919, Lenin and Trotsky organised the world's Communist parties into a new international association of workers – the Communist International, the Comintern, also denominated the Third International.
In November 1918, the German Revolution deposed the monarchy; as in Russia, the councils of workers and soldiers were comprised mostly of SPD and USPD (Independent Social Democrats) revolutionaries installed to office as the Weimar republic; the SPD were in power, led by Friedrich Ebert. In January 1919. the left-wing Spartacist Putsch challenged the SPD government, and President Ebert ordered the Army and Freikorps mercenaries to violently suppress the Workers' and Soldiers' councils. In the event, Communist leaders Karl Liebknecht and Rosa Luxemburg were captured and summarilly executed. Also that year, in Bavaria, the Communist régime of Kurt Eisner in Bavaria was so suppressed. In Hungary, Béla Kun briefly headed a Hungarian Communist government. Throughout, popular socialist revolutions in Vienna, Italy's northern industrial cities, the German Ruhr (1920) and Saxony (1923); all failed in spreading revolutionary socialism to Europe's advanced, capitalist countries.
In Russia, Socialist circumstances were desperate; in August 1918, assassin Fanya Kaplan shot Lenin in the neck, leaving him with wounds from which he never fully recovered. Earlier, in June, the Soviet Government had implemented War Communism to manage the foreign economic boycott of Russia, and invasions by Imperial Germany, Imperial Britain, the U.S., and France, interfering in the Russian Civil War beside royalist White Russians; to control starvation, private business was outlawed, strikers could be shot, the white collar classes were forced to work manually, and, from the peasantry, they required grain for workers in cities.
By 1920, as Red Army commander, Trotsky had mostly defeated the royalist White Armies. In 1921, War Communism was ended, and, under the New Economic Policy (NEP), private ownership was allowed for small and medium peasant enterprises; industry remained State-controlled, Lenin acknowledged that the NEP was a necessary capitalist measure for a country mostly unripe for Socialism, thus, the existence of NEP businessmen and NEP women (NEP Men) flourished, and the Kulaks gained capitalist power as rich peasants.
In 1923, on seeing the Soviet State's greatly coercive power, the dying Lenin said Russia had reverted to a bourgeois tsarist machine . . . barely varnished with socialism. After his death (January 1924), the Communist Party of the Soviet Union – then controlled by Joseph Stalin – rejected the theory that socialism could not be built solely in the U.S.S.R., and declared the Socialism in One Country policy. Despite the marginal Left Opposition's demanding restoration of Soviet Democracy, Stalin developed a bureaucratic, authoritarian government, that was condemned by Democratic Socialists, Anarchists, Trotskyists, et alles, for undermining the initial Socialist ideals of the Bolshevik Russian Revolution.
The inter-war era and World War II
Joseph Stalin
The Russian Revolution of October 1917 brought about the definitive ideological division between Communists as denoted with a capital "C" on the one hand and other communist and socialist trends such as anarcho-communists and social democrats, on the other. The Left Opposition in the Soviet Union gave rise to Trotskyism which was to remain isolated and insignificant for another fifty years, except in Sri Lanka where Trotskyism gained the majority and the pro-Moscow wing was expelled from the Communist Party.
In 1922, the fourth congress of the Communist International took up the policy of the United Front, urging Communists to work with rank and file Social Democrats while remaining critical of their leaders, who they criticized for "betraying" the working class by supporting the war efforts of their respective capitalist classes. For their part, the social democrats pointed to the dislocation caused by revolution, and later, the growing authoritarianism of the Communist Parties. When the Communist Party of Great Britain applied to affiliate to the Labour Party in 1920 it was turned down.
Socialism after World War II
In 1945, the world’s three great powers met at the Yalta Conference to negotiate an amicable and stable peace. UK Prime Minister Winston Churchill joined USA President Franklin D. Roosevelt and Joseph Stalin, General Secretary of the Communist Party of the Soviet Union's Central Committee. With the relative decline of Britain compared to the two superpowers, the USA and the Soviet Union, however, many viewed the world as "bi-polar" – a world with two irreconcilable and antagonistic political and economic systems. Many termed the Soviet Union "socialist", not least the Soviet Union itself, but also commonly in the USA, China, Eastern Europe, and many parts of the world where Communist Parties had gained a mass base. In addition, scholarly critics of the Soviet Union, such as economist Friedrich Hayek were commonly cited as critics of socialism. This view was not universally shared, particularly in Europe, and especially in Britain, where the Communist Party was very weak. In 1951, British Health Minister Aneurin Bevan expressed the view that, "It is probably true that Western Europe would have gone socialist after the war if Soviet behaviour had not given it too grim a visage. Soviet Communism and Socialism are not yet sufficiently distinguished in many minds."
Chinese socialism
Little Red Book's 5 to 6.5 billion copies might be a world record.
In 1949, the Chinese Revolution established a Communist state in China. Criticizing the invasion and trade embargo of the young Soviet state, Bevan wrote "At the moment it looks as though the United States is going to repeat the same folly in China... You cannot starve a national revolution into submission. You can starve it into a repressive dictatorship; you can starve it to the point where the hellish logic of the police state takes charge."
Elsewhere
In 1951, the Socialist International was refounded by the European social democratic parties. It declared: "Communism has split the International Labour Movement and has set back the realisation of Socialism in many countries for decades... Communism falsely claims a share in the Socialist tradition. In fact it has distorted that tradition beyond recognition. It has built up a rigid theology which is incompatible with the critical spirit of Marxism." In the postwar years, socialism became increasingly influential throughout the so-called Third World. Countries in Africa, Asia, and Latin America frequently adopted socialist economic programs. In many instances, these nations nationalized industries held by foreign owners. The Soviet Union had become a superpower through its adoption of a planned economy, albeit at enormous human cost. This achievement seemed hugely impressive from the outside, and convinced many nationalists in the former colonies, not necessarily communists or even socialists, of the virtues of state planning and state-guided models of social development. This was later to have important consequences in countries like China, India and Egypt, which tried to import some aspects of the Soviet model.
The last quarter of the twentieth century marked a period of major crisis for Communists in the Soviet Union and the Eastern bloc, where the growing shortages of housing and consumer goods, combined with the lack of individual rights to assembly and speech, began to disillusion more and more Communist party members. With the rapid collapse of Communist party rule in the Soviet Union and Eastern Europe between 1989 and 1991, the Soviet version of socialism has effectively disappeared as a worldwide political force.
Social Democracy in power
Clement Attlee, U.K. Prime Minister, Labour Party government, 1945–51
In 1945, the British Labour Party, led by Clement Attlee, was elected to office based upon a radical, socialist program. Socialist and Communist parties dominated the post-war French, Italian, Czehchoslovak, Belgian, Norwegian, and other, governments. In Sweden, the Social Democratic Party held power from 1936 to 1976 and then again from 1982 to 1991 and from 1994 to 2006. Labour parties governed Australia and New Zealand. In Germany, the Social Democrats lost in 1949. In Eastern Europe, the war-resistance unity, between Social Democrats and Communists, continued in the immediate postwar years, until Stalin imposed "Communist" régimes.
At first, Social Democracy held the view of having begun a serious assault against Want, Disease, Ignorance, Squalor, and Idleness, the five Giant Evils afflicting the working class, identified by the British social reformer William Beveridge; however, from the Labour Party's left wing, Aneurin Bevan, who had introduced the Labour Party’s National Health Service in 1948, criticised the Attlee Government for not progressing further, demanding that the main streams of economic activity are brought under public direction with economic planning, criticising the implementation of nationalization for not empowering the workers, in the nationalised industries, with democratic control of operations.
In Place of Fear, the most widely read socialist book of the period, Bevan begins: A young miner in a South Wales colliery, my concern was with one practical question: Where does the power lie in this particular state of Great Britain, and how can it be attained by the workers?
The Frankfurt Declaration of the re-founded Socialist International stated:
1. From the nineteenth century onwards, Capitalism has developed immense productive forces. It has done so at the cost of excluding the great majority of citizens from influence over production. It put the rights of ownership before the rights of Man. It created a new class of wage-earners without property or social rights. It sharpened the struggle between the classes.
Although the world contains resources, which could be made to provide a decent life for everyone, Capitalism has been incapable of satisfying the elementary needs of the world’s population. It proved unable to function without devastating crises and mass unemployment. It produced social insecurity and glaring contrasts between rich and poor. It resorted to imperialist expansion and colonial exploitation, thus making conflicts, between nations and races, more bitter. In some countries, powerful capitalist groups helped the barbarism of the past to raise its head again in the form of Fascism and Nazism.
— The Frankfurt Declaration 1951
The post-war social democrat governments introduced social reform and wealth redistribution via state welfare and taxation. The new U.K. Labour Government effected the nationalizations of major public utilities such as mines, gas, coal, electricity, rail, iron, steel, and the Bank of England. To wit, France claimed to be the world's most State-controlled, capitalist country.
In the U.K., the National Health Service provided free health care to all of the British population. Working-class housing was provided in council housing estates, and university education available via a school grant system. Ellen Wilkinson, Minister for Education, introduced free milk in schools, sayining, in a 1946 Labor Party conference: Free milk will be provided in Hoxton and Shoreditch, in Eton and Harrow. What more social equality can you have than that? To wit, Clement Attlee's biographer says this contributed enormously to the defeat of childhood illnesses resulting from bad diet. Generations of poor children grew up stronger and healthier, because of this one, small, and inexpensive act of generosity, by the Attlee government.
In 1956, Anthony Crosland said that 25 per cent of British industry was nationalized, and that public employees, including those in nationalised industries, constituted a like percentage of the country's total employed population. Yet the Social Democrats did not seek ending capitalism; national outlook and dedication to the “post-war order” prevented nationalization of the industrial commanding heights, as Lenin put it. In 1945, they were denominated socialist, but, in the U.K., Social Democrats were the parliamentary majority, The government had not the smallest intention of bringing in the ‘common ownership of the means of production, distribution, and exchange’ as written in Clause 4 of the Labor Party Constitution; nevertheless, Crosland said Capitalism had ended: To the question, ‘Is this still capitalism?’, I would answer ‘No’. In 1959, the German Social Democratic Party adopted the Godesberg Program, rejecting class struggle and Marxism.
In 1980, with the rise of conservative neoliberal politicians such as Ronald Reagan, in the U.S., Margaret Thatcher, in Britain, and Brian Mulroney, in Canada, the Western, socialist welfare state was attacked from within. As Education Secretary of the Conservative Government, 1970–1974, Margaret Thatcher abolished free milk for school children; thus, monetarists and neoliberals attacked social welfare systems as impediments to private entrepreneurship at public expense.
In the 1980s and 1990s, Western European Socialists were pressured to reconcile their collectivist economic programmes with a free-market-based communal European economy. In the U.K., the Labour Party struggled much; its epitome is Neil Kinnock’s passionate and public attack against the Party's Militant Tendency at a Labour Party conference, and his repudiation of the demands of the defeated striking miners after a year-long strike against pit closures. In the 1990s, released from the Left's progressive pressure, the Labour Party, under Tony Blair, posited policies based upon the free market economy to deliver public services via private contractors.
In 1989, at Stockholm, the 18th Congress of the Socialist International adopted a Declaration of Principles, saying that Democratic socialism is an international movement for freedom, social justice, and solidarity. Its goal is to achieve a peaceful world where these basic values can be enhanced and where each individual can live a meaningful life with the full development of his or her personality and talents, and with the guarantee of human and civil rights in a democratic framework of society.
The objectives of the Party of European Socialists, the European Parliament's Socialist Bloc, are to pursue international aims in respect of the principles on which the European Union is based, namely principles of freedom, equality, solidarity, democracy, respect of Human Rights and Fundamental Freedoms, and respect for the Rule of Law. Today, the rallying cry of the French Revolution – Equality, Liberty, and Fraternity – now constitute essential socialist values.
In 1995, the British Labour Party revised its political aims: The Labour Party is a democratic socialist party. It believes that, by the strength of our common endeavour we achieve more than we achieve alone, so as to create, for each of us, the means to realise our true potential, and, for all of us, a community in which power, wealth, and opportunity are in the hands of the many, not the few; famously, Cabinet minister Herbert Morrison said, Socialism is what the Labour Government does.
Socialism in the 21st century
Hugo Chavez
In some Latin American countries, socialism has re-emerged in recent years, with an anti-imperialist stance, the rejection of the policies of neo-liberalism and the nationalisation or part nationalisation of oil production, land and other assets. Venezuelan President Hugo Chávez and Bolivian President Evo Morales, for instance, refer to their political programs as socialist. Chávez has coined the term "21st century socialism" (sometimes translated more literally as "Socialism of the 21st century"). After winning re-election in December 2006, President Chávez said, "Now more than ever, I am obliged to move Venezuela's path towards socialism."
In the developing world, some elected socialist parties and communist parties remain prominent, particularly in India and Nepal. The Communist Party of Nepal in particular calls for multi-party democracy, social equality, and economic prosperity. In China, the Chinese Communist Party has led a transition from the command economy of the Mao period to an economic program they term the socialist market economy or "socialism with Chinese characteristics." Under Deng Xiaoping, the leadership of China embarked upon a program of market-based reform that was more sweeping than had been Soviet leader Mikhail Gorbachev's perestroika program of the late 1980s. Deng's program, however, maintained state ownership rights over land, state or cooperative ownership of much of the heavy industrial and manufacturing sectors and state influence in the banking and financial sectors. In South Africa the ANC abandoned its partial socialist allegiances on taking power and followed a standard neo-liberal route. But from 2005 through to 2007 the country was wracked by many thousands of protests from poor communities. One of these gave rise to a mass movement of shack dwellers, Abahlali baseMjondolo that, despite major police suppression, continues to advocate for popular people's planning and against the marketization of land and housing. Communist candidate Dimitris Christofias won a crucial presidential runoff in Cyprus, defeating his conservative rival with a majority of 53%. The Left Party in Germany has also grown in popularity.
African socialism continues to be a major ideology around the continent.
There are also a number of remaining Communist states, including the People's Republic of China, Cuba, North Korea, Laos and Vietnam.
Socialism as an economic system
Economically, socialism denotes an economic system of state ownership and / or worker ownership of the means of production and distribution. In the U.S.S.R., state ownership of the means of production was combined with central planning – what goods and services to make and provide, how they were to be produced, the quantities, and the sale prices (cf. Economy of the Soviet Union). Soviet economic planning was an alternative to allowing the market (supply and demand) to determine prices and production. During the Great Depression, socialists considered Soviet-style planned economies the remedy to Capitalism's inherent flaws – monopoly, business cycles, unemployment, unequally distributed wealth, and the economic exploitation of workers.
In the West, neoclassical liberal economists, e.g. Friedrich Hayek and Milton Friedman, said that socialist planned economies would fail, because planners could not have the business information inherent to a market economy (cf. economic calculation problem), nor would managers in Soviet-style socialist economies match the motivation of profit.
Consequent to Soviet economic stagnation in the 1970s and 1980s, socialists began to accept parts of their critique. Polish economist Oskar Lange, an early proponent of "market socialism", proposed a Central Planning Board establishing prices and controls of investment. The prices of producer goods would be determined through trial and error. The prices of consumer goods would be determined by supply and demand, with the supply coming from state-owned firms that would set their prices equal to the marginal cost, as in perfectly competitive markets. The Central Planning Board would distribute a "social dividend" to ensure reasonable income equality.
In Western Europe, particularly in the period after World War II, many socialist parties in government implemented what became known as mixed economies. These governments nationalised major and economically vital industries while permitting a free market to continue in the rest. These were most often monopolistic or infrastructural industries like mail, railways, power and other utilities. In some instances a number of small, competing and often relatively poorly financed companies in the same sector were nationalised to form one government monopoly for the purpose of competent management, of economic rescue (in the UK, British Leyland, Rolls Royce), or of competing on the world market. Typically, this was achieved through compulsory purchase of the industry (i.e. with compensation). For example in the UK the nationalization of the coal mines in 1947 created a coal board charged with running the coal industry commercially so as to be able to meet the interest payable on the bonds which the former mine owners' shares had been converted into.
Some socialists propose various decentralized, worker-managed economic systems. One such system is the "cooperative economy," a largely free market economy in which workers manage the firms and democratically determine remuneration levels and labor divisions. Productive resources would be legally owned by the cooperative and rented to the workers, who would enjoy usufruct rights. Another, more recent, variant is "participatory economics," wherein the economy is planned by decentralized councils of workers and consumers. Workers would be remunerated solely according to effort and sacrifice, so that those engaged in dangerous, uncomfortable, and strenuous work would receive the highest incomes and could thereby work less. Some Marxists and Anarcho-communists also propose a worker managed economy based on workers councils, however unlike participatory economics in Anarcho communism workers are remunerated according to their needs (which are largely self determined in an anarcho communist system). Recently socialists have also been working with the Technocracy movement to promote such concepts as Energy Accounting.
Socialism and social and political theory
Doctrinally, Marxist and non-Marxist social theorists agree that Socialism developed in reaction to modern industrial capitalism, but disagree on the nature of their relationship. Émile Durkheim posits that socialism is rooted in the desire to bring the State closer to the realm of individual activity, in countering the anomie of a Capitalist society. In socialism, Max Weber saw acceleration of the rationalization started in Capitalism. As critic of Socialism, he warned that placing the economy entirely in the State's bureaucratic control would result in an iron cage of future bondage.
In the middle of the twentieth century, Socialist intellectuals retained much influence in European philosophy; Eros and Civilization (1955), by Herbert Marcuse, explicitly attempts merging Marxism with Freudianism; and the social science of Structuralism much influenced the socialist New Left in the 1960s and the 1970s.
Criticisms of socialism
Criticisms of socialism range from claims that socialist economic and political models are inefficient or incompatible with civil liberties to condemnation of specific socialist states. There is much focus on the economic performance and human rights records of Communist states, although some proponents of socialism reject the categorization of such states as socialist.
In the economic calculation debate, classical liberal Friedrich Hayek argued that a socialist command economy could not adequately transmit information about prices and productive quotas due to the lack of a price mechanism, and as a result it could not make rational economic decisions. Ludwig von Mises argued that a socialist economy was not possible at all. Hayek further argued that the social control over distribution of wealth and private property advocated by socialists cannot be achieved without reduced prosperity for the general populace, and a loss of political and economic freedoms.
Hayek's views were echoed by Winston Churchill in an electoral broadcast prior to the British general election of 1945:
. . . a socialist policy is abhorrent to the British ideas of freedom. Socialism is inseparably interwoven with totalitarianism and the object worship of the state. It will prescribe for every one where they are to work, what they are to work at, where they may go and what they may say. Socialism is an attack on the right to breathe freely. No socialist system can be established without a political police. They would have to fall back on some form of Gestapo, no doubt very humanely directed in the first instance.
This statement was challenged the next day by the Labour Party candidate, Clement Attlee, who went on to win the election:
The Prime Minister made much play last night with the rights of the individual and the dangers of people being ordered about by officials. I entirely agree that people should have the greatest freedom compatible with the freedom of others. There was a time when employers were free to work little children for sixteen hours a day. I remember when employers were free to employ sweated women workers on finishing trousers at a penny halfpenny a pair. There was a time when people were free to neglect sanitation so that thousands died of preventable diseases. For years every attempt to remedy these crying evils was blocked by the same plea of freedom for the individual. It was in fact freedom for the rich and slavery for the poor. Make no mistake, it has only been through the power of the State, given to it by Parliament, that the general public has been protected against the greed of ruthless profit-makers and property owners.
Understanding The Fundamentals Of Marketing
Understanding The Fundamentals Of Marketing
Marketers concern themselves with acquiring and retaining customers, who are the lifeblood of an organization. They attract customers by learning about potential needs, helping to develop products that customers want, creating awareness, and communicating benefits; they retain them by ensuring that they get good value, appropriate service, and a stream of future products. The marketing function not only communicates to the customer, but also communicates the needs of the customer to the company. In addition, it arranges and monitors the distribution of products and/or services from company to customer.
Condos in Miami, traditional music stores, gas-guzzling cars, pharmaceuticals that get unfavorable press, foods made with trans fats: All marketers, from time to time, confront products that, for whatever reason, become difficult to sell. What strategies should companies follow to reposition their products in ways that might attract new audiences, or at least retain existing ones? "There are so many different kinds of customers out there. You just need to find them," says one Wharton expert.
Too often, people jump right to the outbound marketing. As a result, they often end up trying to push products onto people who really don't want the products at all. Effective inbound marketing often results in much more effective -- and less difficult --outbound marketing and sales. Advertise your business in search results on Yahoo! You can put your business in front of potential customers at the precise moment they're searching for what you sell.
Creating a successful marketing mix that will increase results often takes experimenting and market research. There are many methods that can be used, both in person and the use of impersonal presentations. The key is to not always depend on "one" mix always explore other avenues. One of the main keys to the success of any marketing program is the ability to work effectively in shaping marketing mixes that meet the nature and needs of your specified target market. Learn how to develop your marketing mix.
The video-sharing site YouTube is currently running a comedy sketch contest sponsored by Toyota 's 2009 Corolla. It 's just one of the latest examples of companies using this advertising hot spot to target customers who spend a lot of their time watching online videos. But finding a home in the medium is not so easy, Wharton professors say. In a digital world of instant feedback and ruthless honesty, a company can either score major brand points or look as ridiculous as any adult trying to hang with the cool kids.
Among the first to write about algorithms designed to identify people with high Social Networking Potential is Bob Gerstley in Advertising Research is Changing. Gerstley uses SNP algorithms in quantitative marketing research to help marketers maximize the effectiveness of viral marketing campaigns.
It is also named "viral" because it allows a message to spread like a virus. In 2004 the concept of Alpha User was released to indicate that it had become now possible to technically isolate the focal point members of any viral campaign, the "hubs" who are most influential. Alpha Users can today be isolated and identified, and even targeted for viral advertising purposes most accurately in mobile phone networks, as mobile phones are so personal.
Marketing managers develop the firms marketing strategy in detail. With the help of subordinates, including product development managers and market research managers, they estimate the demand for products and services offered by the firm and its competitors. In addition, they identify potential markets for example, business firms, wholesalers, retailers, government, or the general public.
Marketing managers develop pricing strategy to help firms maximize profits and market share while ensuring that the firms customers are satisfied. In collaboration with sales, product development, and other managers, they monitor trends that indicate the need for new products and services, and they oversee product development. Marketing managers work with advertising and promotion managers to promote the firms products and services and to attract potential users. But below are the six basic elements you hope to include in your strategy. A viral marketing strategy need not contain ALL these elements, but the more elements it embraces, the more powerful the results are likely to be.
Marketing is the most important, yet least understood, small business skill. It 's not easy to find marketing consultants who truly understand what a small business owner needs to do to attract more clients and customers.
"Free" is the most powerful word in a marketer 's vocabulary. Most viral marketing programs give away valuable products or services to attract attention. Free e-mail services, free information, free "cool" buttons, free software programs that perform powerful functions but not as much as you get in the "pro" version. "Cheap" or "inexpensive" may generate a wave of interest, but "free" will usually do it much faster. Viral marketers practice delayed gratification. They may not profit today, or tomorrow, but if they can generate a groundswell of interest from something free, they know they will profit "soon and for the rest of their lives" (with apologies to "Casablanca"). Eyeballs then see other desirable things that you are selling, and, presto! Eyeballs bring valuable e-mail addresses, advertising revenue, and e-commerce sales opportunities. Give away something, sell something.
Public health nurses offer sage advice at flu season: stay away from people who cough, wash your hands often, and don't touch your eyes, nose, or mouth. Viruses only spread when they're easy to transmit. The medium that carries your marketing message must be easy to transfer and replicate: e-mail, website, graphic.
Viral marketing works famously on the Internet because instant communication has become so easy and inexpensive. Digital format make copying simple. From a marketing standpoint, you must simplify your marketing message so it can be transmitted easily and without degradation. Sales managers direct the firms sales program. They assign sales territories, set goals, and establish training programs for the sales representatives. See the Handbook statement on sales representatives, wholesale and manufacturing). Sales managers advise the sales representatives on ways to improve their sales performance.
In large, multi-product firms, they oversee regional and local sales managers and their staffs. Sales managers maintain contact with dealers and distributors. They analyze sales statistics gathered by their staffs to determine sales potential and inventory requirements and to monitor customers preferences. Such information is vital in the development of products and the maximization of profits.
When Guerrilla Marketing was first published in 1983, Jay Conrad Levinson was considered a pioneer with his innovative, take-no-prisoners approach to marketing for the small- and medium-size business owner. Nearly 25 years later and half a million copies later, "Guerrilla Marketing" is now considered the bible of marketing and entrepreneurial advice. Radio show host Russ Lombardo interviews, as his guest, The Father of Guerrilla Marketing, Jay Conrad Levinson, discussing solid marketing weapons and invaluable business advice on "Sales Talk".
A market-focused, or customer-focused, organization first determines what its potential customers desire, and then builds the product or service. Marketing theory and practice is justified in the belief that customers use a product or service because they have a need, or because it provides a perceived benefit.
Marketers concern themselves with acquiring and retaining customers, who are the lifeblood of an organization. They attract customers by learning about potential needs, helping to develop products that customers want, creating awareness, and communicating benefits; they retain them by ensuring that they get good value, appropriate service, and a stream of future products. The marketing function not only communicates to the customer, but also communicates the needs of the customer to the company. In addition, it arranges and monitors the distribution of products and/or services from company to customer.
Condos in Miami, traditional music stores, gas-guzzling cars, pharmaceuticals that get unfavorable press, foods made with trans fats: All marketers, from time to time, confront products that, for whatever reason, become difficult to sell. What strategies should companies follow to reposition their products in ways that might attract new audiences, or at least retain existing ones? "There are so many different kinds of customers out there. You just need to find them," says one Wharton expert.
Too often, people jump right to the outbound marketing. As a result, they often end up trying to push products onto people who really don't want the products at all. Effective inbound marketing often results in much more effective -- and less difficult --outbound marketing and sales. Advertise your business in search results on Yahoo! You can put your business in front of potential customers at the precise moment they're searching for what you sell.
Creating a successful marketing mix that will increase results often takes experimenting and market research. There are many methods that can be used, both in person and the use of impersonal presentations. The key is to not always depend on "one" mix always explore other avenues. One of the main keys to the success of any marketing program is the ability to work effectively in shaping marketing mixes that meet the nature and needs of your specified target market. Learn how to develop your marketing mix.
The video-sharing site YouTube is currently running a comedy sketch contest sponsored by Toyota 's 2009 Corolla. It 's just one of the latest examples of companies using this advertising hot spot to target customers who spend a lot of their time watching online videos. But finding a home in the medium is not so easy, Wharton professors say. In a digital world of instant feedback and ruthless honesty, a company can either score major brand points or look as ridiculous as any adult trying to hang with the cool kids.
Among the first to write about algorithms designed to identify people with high Social Networking Potential is Bob Gerstley in Advertising Research is Changing. Gerstley uses SNP algorithms in quantitative marketing research to help marketers maximize the effectiveness of viral marketing campaigns.
It is also named "viral" because it allows a message to spread like a virus. In 2004 the concept of Alpha User was released to indicate that it had become now possible to technically isolate the focal point members of any viral campaign, the "hubs" who are most influential. Alpha Users can today be isolated and identified, and even targeted for viral advertising purposes most accurately in mobile phone networks, as mobile phones are so personal.
Marketing managers develop the firms marketing strategy in detail. With the help of subordinates, including product development managers and market research managers, they estimate the demand for products and services offered by the firm and its competitors. In addition, they identify potential markets for example, business firms, wholesalers, retailers, government, or the general public.
Marketing managers develop pricing strategy to help firms maximize profits and market share while ensuring that the firms customers are satisfied. In collaboration with sales, product development, and other managers, they monitor trends that indicate the need for new products and services, and they oversee product development. Marketing managers work with advertising and promotion managers to promote the firms products and services and to attract potential users. But below are the six basic elements you hope to include in your strategy. A viral marketing strategy need not contain ALL these elements, but the more elements it embraces, the more powerful the results are likely to be.
Marketing is the most important, yet least understood, small business skill. It 's not easy to find marketing consultants who truly understand what a small business owner needs to do to attract more clients and customers.
"Free" is the most powerful word in a marketer 's vocabulary. Most viral marketing programs give away valuable products or services to attract attention. Free e-mail services, free information, free "cool" buttons, free software programs that perform powerful functions but not as much as you get in the "pro" version. "Cheap" or "inexpensive" may generate a wave of interest, but "free" will usually do it much faster. Viral marketers practice delayed gratification. They may not profit today, or tomorrow, but if they can generate a groundswell of interest from something free, they know they will profit "soon and for the rest of their lives" (with apologies to "Casablanca"). Eyeballs then see other desirable things that you are selling, and, presto! Eyeballs bring valuable e-mail addresses, advertising revenue, and e-commerce sales opportunities. Give away something, sell something.
Public health nurses offer sage advice at flu season: stay away from people who cough, wash your hands often, and don't touch your eyes, nose, or mouth. Viruses only spread when they're easy to transmit. The medium that carries your marketing message must be easy to transfer and replicate: e-mail, website, graphic.
Viral marketing works famously on the Internet because instant communication has become so easy and inexpensive. Digital format make copying simple. From a marketing standpoint, you must simplify your marketing message so it can be transmitted easily and without degradation. Sales managers direct the firms sales program. They assign sales territories, set goals, and establish training programs for the sales representatives. See the Handbook statement on sales representatives, wholesale and manufacturing). Sales managers advise the sales representatives on ways to improve their sales performance.
In large, multi-product firms, they oversee regional and local sales managers and their staffs. Sales managers maintain contact with dealers and distributors. They analyze sales statistics gathered by their staffs to determine sales potential and inventory requirements and to monitor customers preferences. Such information is vital in the development of products and the maximization of profits.
When Guerrilla Marketing was first published in 1983, Jay Conrad Levinson was considered a pioneer with his innovative, take-no-prisoners approach to marketing for the small- and medium-size business owner. Nearly 25 years later and half a million copies later, "Guerrilla Marketing" is now considered the bible of marketing and entrepreneurial advice. Radio show host Russ Lombardo interviews, as his guest, The Father of Guerrilla Marketing, Jay Conrad Levinson, discussing solid marketing weapons and invaluable business advice on "Sales Talk".
A market-focused, or customer-focused, organization first determines what its potential customers desire, and then builds the product or service. Marketing theory and practice is justified in the belief that customers use a product or service because they have a need, or because it provides a perceived benefit.
Friday, May 1, 2009
The Importance of Hadith in Islamfile
The Importance of Hadith in Islam
The two fundamental sources of Islam are the Qur'an (the word of God) and the Sunnah (the example) of the Prophet (peace and blessings be upon him). By Sunnah, we mean the actions, sayings and silent permissions (or disapprovals) of the Prophet.
The word "Sunnah" is also used to refer to religious duties that are optional. Here, we are concerned with Sunnah in the sense of the recorded sayings (Hadiths) of Prophet Muhammad (peace and blessings be upon him). In this sense, Hadith is considered to be second to the Qur'an. It is impossible to understand the Qur'an without reference to the Hadith; and it is impossible to explain a hadith without relating it to the Qur'an.
The Qur'an is the message, while the Hadith is the verbal translation of the message into pragmatic terms, as exemplified by the Prophet. While the Qur'an is the metaphysical basis of the Sunnah, the Sunnah is the practical demonstration of the precepts laid down in the Qur'an.
The duty of the Messenger was not just to communicate the message, rather, he was entrusted with the most important task of explaining and illustrating that message. That is the reason why Allah Himself has commanded the following:
[Say: Obey Allah and obey the Messenger, but if you turn away, he (the Prophet) is only responsible for the duty placed on him (i.e. to convey Allah's Message) and you for that placed on you. If you obey him, you shall be on the right guidance. The Messenger's duty is only to convey (the message) in a clear way.] (An-Nur 24:54)
This verse clearly tells us the overriding importance of Hadith to Muslims. They should be eager to learn and follow the teachings of the Prophet as expressed in Hadith. If we are negligent in this respect, it is we who have to answer before Allah.
Speaking of the importance of Hadith, we need to take into consideration two broad aspects of the subject. We know that Allah Almighty revealed the Qur'an to His chosen Prophet Muhammad (peace and blessings be upon him). So it is through the Prophet we come to hear the word of Allah; and it is the Prophet himself who can properly explain and demonstrate the precepts in the Qur'an. Without the required explanations and illustrations given by the Prophet, the Qur'an may be misunderstood and misinterpreted by people. So the Prophet took care to explain and demonstrate to his companions how the Qur'anic verses must be read and understood. That is to say, the importance of Hadith is linked to the importance of the Qur'an.
For example, the details of how to perform salah (ritual prayer), for instance, were given by the Prophet through his words and action, and not by the Qur'an. This means that we wouldn't know how to pray, fast, pay zakah, or perform Hajj without the examples given by the Prophet as recorded in the Hadith. Indeed, all necessary details are given in the Hadith, not in the Qur'an.
The revelation of each of the verses of the Qur'an took place at some critical junctures in the life of the Prophet. Of course, there are verses of universal application and significance, irrespective of the context in which those verses were revealed. But there are other verses that can be understood or interpreted only in the light of the actual context in the life of the Prophet, which called for that revelation. There are many examples. For instance, the following verse in the Surah Aali `Imran:
[If any one disputes in this matter with thee, now after (full) knowledge hath come to thee, Say: Come! Let us gather together, our sons and your sons, our women and your women, ourselves and yourselves: then let us earnestly pray. And invoke the curse of Allah on those who lie.] (Aali `Imran 3:61)
This verse talks about mubahala (invoking the curse of Allah on those who take a dishonest stand); and was revealed when the Prophet was conferring with the Christian delegation from Najran in 631 CE This example clearly shows how we need to refer to the life and example of the Prophet to understand the context, as well as the meaning of verses, such as the above mentioned one in the Qur'an.
The foregoing shows how Hadith, in practical terms, explains, clarifies, and paraphrases the Qur'an. If we reject the Hadith, we may misread the Qur'an; so Hadith is central to a proper understanding of the Qur'an.
In the Qur'an, Allah Almighty commands us not only to obey the Messenger, but also to abide by his decisions as follows:
[But no, by the Lord, they can have no (real) Faith, until they make you (the Prophet] judge in all disputes between them, and find in their souls no resistance against your decisions, but accept them with the fullest conviction."] (An-Nisaa' 4:65)
And surely we find such decisions only in the Hadith; the duty of Muslims is to accept the Prophet's decisions whole-heartedly. The Qur'an also orders the faithful to emulate the role model of the Messenger and reckons it to be the only way to gain the pleasure of Allah.
It is therefore obligatory that we look up to the Prophet's morals and exemplary character and carry them out in our lives. We can never do so without studying Hadith. It is most illuminating in this respect to learn that when `A'ishah (may Allah be pleased with her) was asked to describe the character of the Prophet (peace and blessings be upon him), her definitive answer was, "His character was that of the Qur'an." In other words, Prophet Muhammad (peace and blessings be upon him) personified the best ideals and values of the Qur'an. How could we then neglect the Hadith, which alone can lead us to the precise ways in which the Prophet exemplified the Qur'anic ideals?
The two fundamental sources of Islam are the Qur'an (the word of God) and the Sunnah (the example) of the Prophet (peace and blessings be upon him). By Sunnah, we mean the actions, sayings and silent permissions (or disapprovals) of the Prophet.
The word "Sunnah" is also used to refer to religious duties that are optional. Here, we are concerned with Sunnah in the sense of the recorded sayings (Hadiths) of Prophet Muhammad (peace and blessings be upon him). In this sense, Hadith is considered to be second to the Qur'an. It is impossible to understand the Qur'an without reference to the Hadith; and it is impossible to explain a hadith without relating it to the Qur'an.
The Qur'an is the message, while the Hadith is the verbal translation of the message into pragmatic terms, as exemplified by the Prophet. While the Qur'an is the metaphysical basis of the Sunnah, the Sunnah is the practical demonstration of the precepts laid down in the Qur'an.
The duty of the Messenger was not just to communicate the message, rather, he was entrusted with the most important task of explaining and illustrating that message. That is the reason why Allah Himself has commanded the following:
[Say: Obey Allah and obey the Messenger, but if you turn away, he (the Prophet) is only responsible for the duty placed on him (i.e. to convey Allah's Message) and you for that placed on you. If you obey him, you shall be on the right guidance. The Messenger's duty is only to convey (the message) in a clear way.] (An-Nur 24:54)
This verse clearly tells us the overriding importance of Hadith to Muslims. They should be eager to learn and follow the teachings of the Prophet as expressed in Hadith. If we are negligent in this respect, it is we who have to answer before Allah.
Speaking of the importance of Hadith, we need to take into consideration two broad aspects of the subject. We know that Allah Almighty revealed the Qur'an to His chosen Prophet Muhammad (peace and blessings be upon him). So it is through the Prophet we come to hear the word of Allah; and it is the Prophet himself who can properly explain and demonstrate the precepts in the Qur'an. Without the required explanations and illustrations given by the Prophet, the Qur'an may be misunderstood and misinterpreted by people. So the Prophet took care to explain and demonstrate to his companions how the Qur'anic verses must be read and understood. That is to say, the importance of Hadith is linked to the importance of the Qur'an.
For example, the details of how to perform salah (ritual prayer), for instance, were given by the Prophet through his words and action, and not by the Qur'an. This means that we wouldn't know how to pray, fast, pay zakah, or perform Hajj without the examples given by the Prophet as recorded in the Hadith. Indeed, all necessary details are given in the Hadith, not in the Qur'an.
The revelation of each of the verses of the Qur'an took place at some critical junctures in the life of the Prophet. Of course, there are verses of universal application and significance, irrespective of the context in which those verses were revealed. But there are other verses that can be understood or interpreted only in the light of the actual context in the life of the Prophet, which called for that revelation. There are many examples. For instance, the following verse in the Surah Aali `Imran:
[If any one disputes in this matter with thee, now after (full) knowledge hath come to thee, Say: Come! Let us gather together, our sons and your sons, our women and your women, ourselves and yourselves: then let us earnestly pray. And invoke the curse of Allah on those who lie.] (Aali `Imran 3:61)
This verse talks about mubahala (invoking the curse of Allah on those who take a dishonest stand); and was revealed when the Prophet was conferring with the Christian delegation from Najran in 631 CE This example clearly shows how we need to refer to the life and example of the Prophet to understand the context, as well as the meaning of verses, such as the above mentioned one in the Qur'an.
The foregoing shows how Hadith, in practical terms, explains, clarifies, and paraphrases the Qur'an. If we reject the Hadith, we may misread the Qur'an; so Hadith is central to a proper understanding of the Qur'an.
In the Qur'an, Allah Almighty commands us not only to obey the Messenger, but also to abide by his decisions as follows:
[But no, by the Lord, they can have no (real) Faith, until they make you (the Prophet] judge in all disputes between them, and find in their souls no resistance against your decisions, but accept them with the fullest conviction."] (An-Nisaa' 4:65)
And surely we find such decisions only in the Hadith; the duty of Muslims is to accept the Prophet's decisions whole-heartedly. The Qur'an also orders the faithful to emulate the role model of the Messenger and reckons it to be the only way to gain the pleasure of Allah.
It is therefore obligatory that we look up to the Prophet's morals and exemplary character and carry them out in our lives. We can never do so without studying Hadith. It is most illuminating in this respect to learn that when `A'ishah (may Allah be pleased with her) was asked to describe the character of the Prophet (peace and blessings be upon him), her definitive answer was, "His character was that of the Qur'an." In other words, Prophet Muhammad (peace and blessings be upon him) personified the best ideals and values of the Qur'an. How could we then neglect the Hadith, which alone can lead us to the precise ways in which the Prophet exemplified the Qur'anic ideals?
BBA Aritcals
Marketing management
Marketing management is a business discipline which is focused on the practical application of marketing techniques and the management of a firm's marketing resources and activities. Marketing managers are often responsible for influencing the level, timing, and composition of customer demand accepted definition of the term. In part, this is because the role of a marketing manager can vary significantly based on a business' size, corporate culture, and industry context. For example, in a large consumer products company, the marketing manager may act as the overall general manager of his or her assigned product
From this perspective, the scope of marketing management is quite broad. The implication of such a definition is that any activity or resource the firm uses to acquire customers and manage the company's relationships with them is within the purview of marketing management. Additionally, the Kotler and Keller definition encompasses both the development of new products and services and their delivery to customers.
Marketing expert Regis McKenna expressed a similar viewpoint in his influential 1991 Harvard Business Review article "Marketing is Everything." McKenna argued that because marketing management encompasses all factors that influence a company's ability to deliver value to customers, it must be "all-pervasive, part of everyone's job description, from the receptionists to the Board of Directors."
This view is also consistent with the perspective of management guru Peter Drucker, who wrote: "Because the purpose of business is to create a customer, the business enterprise has two--and only these two--basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business."
But because many businesses operate with a much more limited definition of marketing, such statements can appear controversial, or even ludicrous to some business executives. This is especially true in those companies where the marketing department is responsible for little more than developing sales brochures and executing advertising campaigns.
The broader, more sophisticated definitions of marketing management from Drucker, Kotler and other scholars are therefore juxtaposed against the narrower operating reality of many businesses. The source of confusion here is often that inside any given firm, the term marketing management may be interpreted to mean whatever the marketing department happens to do, rather than a term that encompasses all marketing activities -- even those marketing activities that are actually performed by other departments, such as the sales, finance, or operations departments. If, for example, the finance department of a given company makes pricing decisions (for deals, proposals, contracts, etc.), that finance department has responsibility for an important component of marketing management – pricing.
Activities and functions
The marketing process model based on the publications of Philip Kotler. It consists of 5 steps, beginning with the market & environment research. After fixing the targets and setting the strategies, they will be realised by the marketing mix in step 4. The last step in the process is the marketing controlling.
Marketing management therefore encompasses a wide variety of functions and activities, although the marketing department itself may be responsible for only a subset of these. Regardless of the organizational unit of the firm responsible for managing them, marketing management functions and activities include the following:
Marketing research and analysis
In order to make fact-based decisions regarding marketing strategy and design effective, cost-efficient implementation programs, firms must possess a detailed, objective understanding of their own business and the market in which they operate. In analyzing these issues, the discipline of marketing management often overlaps with the related discipline of strategic planning.
Traditionally, marketing analysis was structured into three areas: Customer analysis, Company analysis, and Competitor analysis (so-called "3Cs" analysis). More recently, it has become fashionable in some marketing circles to divide these further into certain five "Cs": Customer analysis, Company analysis, Collaborator analysis, Competitor analysis, and analysis of the industry Context.
The focus of customer analysis is to develop a scheme for market segmentation, breaking down the market into various constituent groups of customers, which are called customer segments or market segments. Marketing managers work to develop detailed profiles of each segment, focusing on any number of variables that may differ among the segments: demographic, psychographic, geographic, behavioral, needs-benefit, and other factors may all be examined. Marketers also attempt to track these segments' perceptions of the various products in the market using tools such as perceptual mapping.
In company analysis, marketers focus on understanding the company's cost structure and cost position relative to competitors, as well as working to identify a firm's core competencies and other competitively distinct company resources. Marketing managers may also work with the accounting department to analyze the profits the firm is generating from various product lines and customer accounts. The company may also conduct periodic brand audits to assess the strength of its brands and sources of brand equity.
The firm's collaborators may also be profiled, which may include various suppliers, distributors and other channel partners, joint venture partners, and others. An analysis of complementary products may also be performed if such products exist.
Marketing management employs various tools from economics and competitive strategy to analyze the industry context in which the firm operates. These include Porter's five forces, analysis of strategic groups of competitors, value chain analysis and others.[7] Depending on the industry, the regulatory context may also be important to examine in detail.
In Competitor analysis, marketers build detailed profiles of each competitor in the market, focusing especially on their relative competitive strengths and weaknesses using SWOT analysis. Marketing managers will examine each competitor's cost structure, sources of profits, resources and competencies, competitive positioning and product differentiation, degree of vertical integration, historical responses to industry developments, and other factors.
Marketing management often finds it necessary to invest in research to collect the data required to perform accurate marketing analysis. As such, they often conduct market research (alternately marketing research) to obtain this information. Marketers employ a variety of techniques to conduct market research, but some of the more common include:
Qualitative marketing research, such as focus groups
Quantitative marketing research, such as statistical surveys
Experimental techniques such as test markets
Observational techniques such as ethnographic (on-site) observation
Marketing managers may also design and oversee various environmental scanning and competitive intelligence processes to help identify trends and inform the company's marketing analysis.
Once the company has obtained an adequate understanding of the customer base and its own competitive position in the industry, marketing managers are able to make key strategic decisions and develop a marketing strategy designed to maximize the revenues and profits of the firm. The selected strategy may aim for any of a variety of specific objectives, including optimizing short-term unit margins, revenue growth, market share, long-term profitability, or other goals.
To achieve the desired objectives, marketers typically identify one or more target customer segments which they intend to pursue. Customer segments are often selected as targets because they score highly on two dimensions: 1) The segment is attractive to serve because it is large, growing, makes frequent purchases, is not price sensitive (i.e. is willing to pay high prices), or other factors; and 2) The company has the resources and capabilities to compete for the segment's business, can meet their needs better than the competition, and can do so profitably. In fact, a commonly cited definition of marketing is simply "meeting needs profitably."
The implication of selecting target segments is that the business will subsequently allocate more resources to acquire and retain customers in the target segment(s) than it will for other, non-targeted customers. In some cases, the firm may go so far as to turn away customers that are not in its target segment. The doorman at a swanky nightclub, for example, may deny entry to unfashionably dressed individuals because the business has made a strategic decision to target the "high fashion" segment of nightclub patrons.
In conjunction with targeting decisions, marketing managers will identify the desired positioning they want the company, product, or brand to occupy in the target customer's mind. This positioning is often an encapsulation of a key benefit the company's product or service offers that is differentiated and superior to the benefits offered by competitive products. For example, Volvo has traditionally positioned its products in the automobile market in North America in order to be perceived as the leader in "safety", whereas BMW has traditionally positioned its brand to be perceived as the leader in "performance."
Ideally, a firm's positioning can be maintained over a long period of time because the company possesses, or can develop, some form of sustainable competitive advantage.[10] The positioning should also be sufficiently relevant to the target segment such that it will drive the purchasing behavior of target customers.
Implementation planning
The Marketing Metrics Continuum provides a framework for how to categorize metrics from the tactical to strategic.
After the firm's strategic objectives have been identified, the target market selected, and the desired positioning for the company, product or brand has been determined, marketing managers focus on how to best implement the chosen strategy. Traditionally, this has involved implementation planning across the "4Ps" of marketing: Product management, Pricing, Place (i.e. sales and distribution channels), and Promotion.
Taken together, the company's implementation choices across the 4Ps are often described as the marketing mix, meaning the mix of elements the business will employ to "go to market" and execute the marketing strategy. The overall goal for the marketing mix is to consistently deliver a compelling value proposition that reinforces the firm's chosen positioning, builds customer loyalty and brand equity among target customers, and achieves the firm's marketing and financial objectives.
In many cases, marketing management will develop a marketing plan to specify how the company will execute the chosen strategy and achieve the business' objectives. The content of marketing plans varies from firm to firm, but commonly includes:
An executive summary
Situation analysis to summarize facts and insights gained from market research and marketing analysis
The company's mission statement or long-term strategic vision
A statement of the company's key objectives, often subdivided into marketing objectives and financial objectives
The marketing strategy the business has chosen, specifying the target segments to be pursued and the competitive positioning to be achieved
Implementation choices for each element of the marketing mix (the 4Ps)
Project, process, and vendor management
Once the key implementation initiatives have been identified, marketing managers work to oversee the execution of the marketing plan. Marketing executives may therefore manage any number of specific projects, such as sales force management initiatives, product development efforts, channel marketing programs and the execution of public relations and advertising campaigns. Marketers use a variety of project management techniques to ensure projects achieve their objectives while keeping to established schedules and budgets.
More broadly, marketing managers work to design and improve the effectiveness of core marketing processes, such as new product development, brand management, marketing communications, and pricing. Marketers may employ the tools of business process reengineering to ensure these processes are properly designed, and use a variety of process management techniques to keep them operating smoothly.
Effective execution may require management of both internal resources and a variety of external vendors and service providers, such as the firm's advertising agency. Marketers may therefore coordinate with the company's Purchasing department on the procurement of these services.
Organizational management and leadership
Marketing management usually requires leadership of a department or group of professionals engaged in marketing activities. Often, this oversight will extend beyond the company's marketing department itself, requiring the marketing manager to provide cross-functional leadership for various marketing activities. This may require extensive interaction with the human resources department on issues such as recruiting, training, leadership development, performance appraisals, compensation, and other topics.
Marketing management may spend a fair amount of time building or maintaining a marketing orientation for the business. Achieving a market orientation, also known as "customer focus" or the "marketing concept", requires building consensus at the senior management level and then driving customer focus down into the organization. Cultural barriers may exist in a given business unit or functional area that the marketing manager must address in order to achieve this goal. Additionally, marketing executives often act as a "brand champion" and work to enforce corporate identity standards across the enterprise.
In larger organizations, especially those with multiple business units, top marketing managers may need to coordinate across several marketing departments and also resources from finance, research and development, engineering, operations, manufacturing, or other functional areas to implement the marketing plan. In order to effectively manage these resources, marketing executives may need to spend much of their time focused on political issues and inte-departmental negotiations.
The effectiveness of a marketing manager may therefore depend on his or her ability to make the internal "sale" of various marketing programs equally as much as the external customer's reaction to such programs.
Reporting, measurement, feedback and control systems
Marketing management employs is a variety of metrics to measure progress against objectives. It is the responsibility of marketing managers – in the marketing department or elsewhere – to ensure that the execution of marketing programs achieves the desired objectives and does so in a cost-efficient manner.
Marketing management therefore often makes use of various organizational control systems, such as sales forecasts, sales force and reseller incentive programs, sales force management systems, and customer relationship management tools (CRM). Recently, some software vendors have begun using the term "marketing operations management" or "marketing resource management" to describe systems that facilitate an integrated approach for controlling marketing resources. In some cases, these efforts may be linked to various supply chain management systems, such as enterprise resource planning (ERP), material requirements planning (MRP), efficient consumer response (ECR), and inventory management systems.
Measuring the return on investment (ROI) of and marketing effectiveness various marketing initiatives is a significant problem for marketing management. Various market research, accounting and financial tools are used to help estimate the ROI of marketing investments. Brand valuation, for example, attempts to identify the percentage of a company's market value that is generated by the company's brands, and thereby estimate the financial value of specific investments in brand equity. Another technique, integrated marketing communications (IMC), is a CRM database-driven approach that attempts to estimate the value of marketing mix executions based on the changes in customer behavior these executions generate.
Business marketing
Business Marketing is the practice of individuals, or organizations, including commercial businesses, governments and institutions, facilitating the sale of their products or services to other companies or organizations that in turn resell them, use them as components in products or services they offer, or use them to support their operations. Also known as industrial marketing, business marketing is also called business-to-business marketing, or B2B marketing, for short. (Note that while marketing to government entities shares some of the same dynamics of organizational marketing, B2G Marketing is meaningfully different.)
Origins of business marketing
In the broadest sense, the practice of one purveyor of goods doing trade with another is as old as commerce itself. As a niche in the field of marketing as we know it today, however, its history is more recent. In his introduction to Fundamentals of Business Marketing Research, J. David Lichtenthal, professor of marketing at the City University of New York's Zicklin School of Business, notes that industrial marketing has been around since the mid-19th century, although the bulk of research on the discipline of business marketing has come about in the last 25 years.
Morris, Pitt and Honeycutt, 2001, point out that for many years business marketing took a back seat to consumer marketing, which entailed providers of goods or services selling directly to households through mass media and retail channels. This began to change in middle to late 1970s. A variety of academic periodicals, such as the Journal of Business-to-Business Marketing and the Journal of Business & Industrial Marketing, now publish studies on the subject regularly, and professional conferences on business-to-business marketing are held every year. What's more, business marketing courses are commonplace at many universities today. In fact, Dwyer and Tanner (2006) point out that more marketing majors begin their careers in business marketing today than in consumer marketing.
Business marketing vs. consumer marketing
Although on the surface the differences between business and consumer marketing may seem obvious, there are more subtle distinctions between the two with substantial ramifications. Dwyer and Tanner (2006) note that business marketing generally entails shorter and more direct channels of distribution.
While consumer marketing is aimed at large demographic groups through mass media and retailers, the negotiation process between the buyer and seller is more personal in business marketing. According to Hutt and Speh (2004), most business marketers commit only a small part of their promotional budgets to advertising, and that is usually through direct mail efforts and trade journals. While that advertising is limited, it often helps the business marketer set up successful sales calls.
Marketing to a business trying to make a profit (Business-to-Business marketing) as opposed to an individual for personal use (Business-to-Consumer, or B2C marketing) is similar in terms of the fundamental principals of marketing. In B2C, B2B and B2G marketing situations, the marketer must always:
successfully match the product/service strengths with the needs of a definable target market;
position and price to align the product/service with its market, often an intricate balance; and
communicate and sell it in the fashion that demonstrates its value effectively to the target market.
These are the fundamental principals of the 4 Ps of marketing (the marketing mix) first documented by E. Jerome McCarthy in 1960.
Who is customer in a B2B Sale?
While "other businesses" might seem like the simple answer, Dwyer and Tanner (2006) say business customers fall into four broad categories: companies that consume products or services, government agencies, institutions and resellers.
The first category includes original equipment manufacturers, such as automakers, who buy gauges to put in their cars, and users, which are companies that purchase products for their own consumption. The second category, government agencies, is the biggest. In fact, the U.S. government is the biggest single purchaser of products and services in the country, spending more than $300 billion annually. But this category also includes state and local governments. The third category, institutions, includes schools, hospitals and nursing homes, churches and charities. Finally, resellers consist of wholesalers, brokers and industrial distributors.
So what are the meaningful differences between B2B and B2C marketing?
A B2C sale is to an individual. That individual may be influenced by other factors such as family members or friends, but ultimately it’s a single person that pulls out their wallet. A B2B sale is to an organization. And in that simple distinction lies a web of complications that differ because of the organizational nature of the sale and which vary widely by firmographic (i.e., “demographic” for segmenting businesses) such as business size, location, industry and revenue base.
The marketing mix is affected by the B2B uniqueness which include complexity of business products and services, diversity of demand and the differing nature of the sales itself (including fewer customers buying larger volumes). Because there are some important subtleties to the B2B sale, the issues are broken down beyond just the original 4 Ps developed by McCarthy.
B2B Marketing Strategies
B2B Branding
B2B Branding is different from B2C in some crucial ways, including the need to closely align corporate brands, divisional brands and product/service brands and to apply your brand standards to material often considered “informal” such as email and other electronic correspondence.
Product (or Service)
Because business customers are focused on creating shareholder value for themselves, the cost-saving or revenue-producing benefits of products and services are important to factor in throughout the product development and marketing cycles.
People (Target Market)
Quite often, the target market for a business product or service is smaller and has more specialized needs reflective of a specific industry or niche. Regardless of the size of the target market, the business customer is making an organizational purchase decision and the dynamics of this, both procedurally and in terms of how they value what they are buying from you, differ dramatically from the consumer market. There may be multiple influencers on the purchase decision, which may also have to be marketed to, though they may not be members of the decision making unit.
Pricing
The business market can be convinced to pay premium prices more often than the consumer market if you know how to structure your pricing and payment terms well. This price premium is particularly achievable if you support it with a strong brand.
Promotion
Promotion planning is relatively easy when you know the media, information seeking and decision making habits of your customer base, not to mention the vocabulary unique to their segment. Specific trade shows, analysts, publications, blogs and retail/wholesale outlets tend to be fairly common to each industry/product area. What this means is that once you figure it out for your industry/product, the promotion plan almost writes itself (depending on your budget) but figuring it out can be a special skill and it takes time to build up experience in your specific field. Promotion techniques rely heavily on marketing communications strategies (see below).
Place (Sales and Distribution)
The importance of a knowledgeable, experienced and effective direct (inside or outside) sales force is often critical in the business market. If you sell through distribution channels also, the number and type of sales forces can vary tremendously and your success as a marketer is highly dependent on their success.
B2B Marketing Communications Methodologies
The purpose of B2B marketing communications is to support the organizations' sales effort and improve company profitability. B2B marketing communications tactics generally include advertising, public relations, direct mail, trade show support, sales collateral, branding, and interactive services such as website design and search engine optimization. The Business Marketing Association is the trade organization that serves B2B marketing professionals. It was founded in 1922 and offers certification programs, research services, conferences, industry awards and training programs.
Positioning Statement
An important first step in business to business marketing is the development of your positioning statement. This is a statement of what you do and how you do it differently and better and more efficiently than your competitors.
Developing your messages
The next step is to develop your messages. There is usually a primary message that conveys more strongly to your customers what you do and the benefit it offers to them, supported by a number of secondary messages, each of which may have a number of supporting arguments, facts and figures.
Building a campaign plan
Whatever form your B2B marketing campaign will take, build a comprehensive plan up front to target resources where you believe they will deliver the best return on investment, and make sure you have all the infrastructure in place to support each stage of the marketing process - and that doesn't just include developing the lead - make sure the entire organization is geared up to handle the inquiries appropriately.
Briefing an agency
A standard briefing document is usually a good idea for briefing an agency. As well as focusing the agency on what's important to you and your campaign, it serves as a checklist of all the important things to consider as part of your brief. Typical elements to an agency brief are: Your objectives, target market, target audience, product, campaign description, your product positioning, graphical considerations, corporate guidelines, and any other supporting material and distribution.FGFBHB VBVBV
Measuring results
The real value in results measurement is in tying the marketing campaign back to business results. After all, you’re not in the business of developing marketing campaigns for marketing sake. So always put metrics in place to measure your campaigns, and if at all possible, measure your impact upon your desired objectives, be it Cost Per Acquisition, Cost per Lead or tangible changes in customer perception.
How big is business marketing?
Hutt and Speh (2001) note that "business marketers serve the largest market of all; the dollar volume of transactions in the industrial or business market significantly exceeds that of the ultimate consumer market." For example, they note that companies such as GE, DuPont and IBM spend more than $60 million a day on purchases to support their operations.
Dwyer and Tanner (2006) say the purchases made by companies, government agencies and institutions "account for more than half of the economic activity in industrialized countries such as the United States, Canada and France."
A 2003 study sponsored by the Business Marketing Association estimated that business-to-business marketers in the United States spend about $85 billion a year to promote their goods and services. The BMA study breaks that spending out as follows (figures are in billions of dollars):
Trade Shows/Events -- $17.3
Internet/Electronic Media -- $12.5
Promotion/Market Support -- $10.9
Magazine Advertising -- $10.8
Publicity/Public Relations -- $10.5
Direct Mail -- $9.4
Dealer/Distributor Materials -- $5.2
Market Research -- $3.8
Telemarketing -- $2.4
Directories -- $1.4
Other -- $5.1
The fact that there is such a thing as the Business Marketing Association speaks to the size and credibility of the industry. BMA traces its origins to 1922 with the formation of the National Industrial Advertising Association. Today, BMA, headquartered in Chicago, has more than 2,000 members in 19 chapters across the country. Among its members are marketing communications agencies that are largely or exclusively business-to-business-oriented.
What's driving growth in B2B Marketing?
The tremendous growth and change that business marketing is experiencing is due in large part to three "revolutions" occurring around the world today, according to Morris, Pitt and Honeycutt (2001).
First is the technological revolution. Technology is changing at an unprecedented pace, and these changes are speeding up the pace of new product and service development. A large part of that has to do with the Internet, which is discussed in more detail below.
Technology and business strategy go hand in hand. Both are corelated .While technology supports forming organization strategy, the business strategy is also helpful in technology development. Both play a great role in business marketing.
Second is the entrepreneurial revolution. To stay competitive, many companies have downsized and reinvented themselves. Adaptability, flexibility, speed, aggressiveness and innovativeness are the keys to remaining competitive today. Marketing is taking the entrepreneurial lead by finding market segments, untapped needs and new uses for existing products, and by creating new processes for sales, distribution and customer service.
The third revolution is one occurring within marketing itself. Companies are looking beyond traditional assumptions and adopting new frameworks, theories, models and concepts. They're also moving away from the mass market and the preoccupation with the transaction. Relationships, partnerships and alliances are what define marketing today. The cookie-cutter approach is out. Companies are customizing marketing programs to individual accounts.
The impact of the Internet
The Internet has become an integral component of the customer relationship management strategy for business marketers. Dwyer and Tanner (2006) note that business marketers not only use the Internet to improve customer service but also to improve opportunities with distributors.
According to Anderson and Narus (2004), two new types of resellers have emerged as by-products of the Internet: infomediaries and metamediaries. Infomediaries, such as Google and Yahoo, are search engine companies that also function as brokers, or middlemen, in the business marketing world. They charge companies fees to find information on the Web as well as for banner and pop-up ads and search engine optimization services. Metamediaries are companies with robust Internet sites that furnish customers with multiproduct, multivendor and multiservice marketspace in return for commissions on sales.
With the advent of b-to-b exchanges, the Internet ushered in an enthusiasm for collaboration that never existed before--and in fact might have even seemed ludicrous 10 years ago. For example, a decade ago who would have imagined Ford, General Motors and DaimlerChrysler entering into a joint venture? That's exactly what happened after all three of the Big Three began moving their purchases online in the late 1990s. All three companies were pursuing their own initiatives when they realized the economies of scale they could achieve by pooling their efforts. Thus was born what then was the world's largest Internet business when Ford's Auto-Xchange and GM's TradeXchange merged, with DaimlerChrysler representing the third partner.
While this exchange did not stand the test of time, others have, including Agentrics, which was formed last year with the merger of WorldWide Retail Exchange and GlobalNetXchange, or GNX. Agentrics serves more 50 retailers around the world and more than 300 customers, and its members have combined sales of about $1 trillion. Hutt and Speh (2001) note that such virtual marketplaces enable companies and their suppliers to conduct business in real time as well as simplify purchase processes and cut costs.
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