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Title: Jeffrey Sachs: Useful Idiot
Author: Kevin Carson
Date: October 7, 2005
Language: en
Topics: eastern europe
Source: Retrieved on 4th September 2021 from https://mutualist.blogspot.com/2005/10/jeffrey-sachs-useful-idiot.html

Kevin Carson

Jeffrey Sachs: Useful Idiot

Great profile at Left Business Observer of Jeffrey Sachs, the brains

behind the Great “Progressive” Bono and Geldorf Travelling Dog and Pony

Show.

Sachs was a key adviser to Yeltsin, during the neoliberal transformation

of the Russian economy.

In Poland, like Russia, Sachs wanted to establish corporate capitalism

on the American model.

In Poland, Sachs was firmly on the side of rapid transition to “normal”

capitalism. At first he proposed U.S.-style corporate structures, with

professional managers answering to many shareholders and a large

economic role for stock markets. That didn’t fly with the Polish

authorities, so Sachs came back with a Germanic idea — large blocks of

the shares of privatized companies would be placed in the hands of big

banks. (As Ellerman recounts it, “Wherever the parade was going, [Sachs]

had to be in front.”) In both versions the point was to end any hints of

worker or social control and institute a conventional capitalist class

hierarchy.

In Slovenia, likewise, he had nothing but contempt for “idiots” and

“self-management imbeciles.”

Of course, it was a foregone conclusion that “any rapid privatization

would immediately lead to the creation of a new corrupt elite through

massive theft of state property.” Post-Soviet elites have acted through

the state to accumulate capital in a manner reminiscent of England’s

primitive accumulation process a few centuries ago (see, for example,

this excellent article by Nancy Holmstrom and Richard Smith comparing

Russian gangster capitalism to the enclosures and other land thefts in

England). And Sachs acted as their useful idiot; of course, he denies

any share of the guilt, since he technically didn’t actually tell them

to steal everything that wasn’t nailed down.

Alternative models of market transformation based on “hybrid forms of

ownership,” like worker self-management of former state enterprises,

were advocated by leftish figures like David Ellerman, among others. But

right-wingers like Murray Rothbard and Hans-Hermann Hoppe were also

numbered among the “idiots” and “self-management imbeciles,” arguing

that the best way to privatize state industry in the former Soviet bloc

was to treat it as unowned property, to be homesteaded by those actually

occupying and using it--the labor force. As usual, the libertarian left

and right have more in common with each other than with the kind of

so-called “liberals” and “conservatives” who appear on Crossfire, half

and inch to the left and right, respectively, of the corporate center.