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The Relations of Production

In the Soviet Union, property was owned juridically through the State. This is often taken as an open and shut case as to why the relations of production within Soviet enterprises can not be compared to that of a typical capitalist country. Looking to Marx, however, we find that he repeatedly emphasises the need to understand capitalism as a set of social relations, and that 'capitalists' are simply the personification of capital, or the dynamics of capitalist production.

In our own developed capitalist countries we frequently encounter bosses and managers who do not literally ‘own’ their means of production. They are, nevertheless, still clearly members of the capitalist ruling class. In Marx’s terms, these are 'functional capitalists', or "functionaries of capital"; a concept best outlined in Volume III of Capital. Marx distinguishes the so-called ‘work’ of supervising the labour process – of extracting surplus value – as fundamentally different to the labour of the working class, which produces surplus value. This is to say that, with the owner of capital “shifted outside the actual process of exploitation”, the income of the functional capitalist only appears as the “wages of management”, or administration. Despite their structural position within the relations of production, the functionary of capital – the supervisor and legal director of the labour process – comes to believe,

that his profit of enterprise - very far from forming any antithesis with wage-labour and being only the unpaid labour of others - is rather itself a wage, 'wages of superintendence of labour ', a higher wage than that of the ordinary wage-labourer, (1) because it is complex labour, and (2) because he himself pays the wages. That his function as a capitalist consists in producing surplus value, i.e. unpaid labour, and in the most economical conditions at that, is completely forgotten…[7]

And so it is with the Soviet enterprise manager, or the government official. For them, the ‘owner’ of the means of production is the State – a neat legal fiction which ‘shifts the owner of capital ‘outside’ the actual process of exploitation’; in this case into the realm of legal abstraction.

The social relations of control – and the ends to which control of production were directed – became obscured in the Soviet system. Like Marx, however, we should look past this obfuscation, and consider these individuals as personifications. In the Soviet Union, party bureaucrats and enterprise managers were functionaries of an underlying class system, wherein the property relations were that of a dispossessed class compelled to work under, and for, a de facto possessing class.

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