The collapse of the Soviet Union, in 1991, was seen in the West as a demonstration of the superiority of the Western economical and political system. In reality, the story was much more complex and the Soviet Union fell because of the same reasons which may cause the impending collapse of the West. This point was made forcefully by
Dmitry Orlov, but he is not the only one who noted the similarities of the two systems. Here, a guest post by the Russian Scientist
Svatoslav Zabelin. It is a revised and updated version of a piece that appeared in 1998. Zabelin is also a contributor of the book on the 50th anniversary of the publication of the 1972 book "The Limits to Growth," expected to appear on the market in March 2022.
Lessons from the USSR Crisis
From “A time to seek, and a time to lose.” 1998.
by Sviatoslav Zabelin
...there are no limits to development, but there are limits to growth.
Meadows DH, Meadows DL, Randers Y. (Beyond limits to growth. Moscow, 1994)
From the book by Donella H. Meadows et al. The
Limits to Growth. New York.
Universe Books. 1972.
"The world community is developing without
any major political changes for as long as possible. The number of people and
industrial production increases as long as the state of the environment and
natural resources does not limit the ability of the industrial capital sector
to provide investment. Industrial capital begins to depreciate faster than new
investment flows. As its reserves decrease, food production and health care
also fall, leading to a reduction in life expectancy and an increase in
mortality."
1. The collapse of the USSR
The ecological and
socio-economic macro-crises we are seeing are in one way or another a kind of
crisis of the limits of growth. They bring a qualitative change that occurs sooner or
later with any system where there is a quantitative growth of any parameter.
These crises have not yet happened, in the West, and therefore for too many people remain an
unknown and unimaginable danger, a speculative abstraction.
However, how THIS
happens, how IT can be, can already be studied on a concrete and recent example. The events of the 1980s and 1990s which happened to the USSR, its economy, population, and power system,
are the result of the sum of several crises of growth limits in a highly
isolated system from the world economy. The fact that the crisis was relatively soft can be explained considering that, with the end of the cold war, the USSR had become part of the world economic system that took care of at least some of the
problems. Nobody really wanted the former USSR states to collapse completely, if nothing else because Russia was considered "the world's service station." But, if the global economic system starts collapsing, help from the Moon
or Mars will not come.
First, it was the crisis of the limits to growth of the price that society
can pay for the extraction of natural resources, as described as early as 1972 by
the World3 model of a team of authors who prepared the report "Limits to
growth" for the club of Rome.
"When the deposits begin to run out,"
it becomes necessary to use ever-increasing amounts of capital in resource
industries, which reduces the share going to investment and growth in other
industries. Finally, investment becomes so small that it can no longer cover
even the depreciation of capital, and there is a crisis of the industrial
production base." D. H. Meadows, D. L. Meadows, Y.
Randers, V. V. Behrens III. The limits to growth.
The industrial system of the USSR
"broke down" on the production of oil in the Siberian fields -- a vital export commodity on which the country survived during the era of stagnation, in the 1970s. Then, production and proven oil reserves began to decline
catastrophically, and attempts to maintain the achieved level found the USSR relying on outdated and worn-out technologies. In some industries, 70-80%, the main production tools were estimated as obsolete.
The country's industry could
not bear the memorable "acceleration" on such "horses", and
in a few years Russia turned from a self-sufficient space power into a country
where raw materials are exported abroad on an ever-increasing scale, and its
processed products were imported from abroad. The result was that the production of
consumer goods was replaced by imports, and the facilities for internal production were irretrievably lost.
Simply
put, the USSR paid for the growth of natural resource extraction by destroying the system of converting these natural resources
into goods that people need, and even more simply, it paid for the destruction
of most of the production itself, which resulted in unemployment, lack of funds
for education, health, science, non - payment of pensions, and many other
troubles that are common for all post-Soviet countries. And it is clear: where
will the funds for education come from if the country's industry no longer
produces something that can be sold?
Second, it was a crisis of limits to the growth of the money supply. In
the U.S.S.R., the money printing press worked non-stop to pay for a huge mass
of dead labor - to produce a gigantic quantity of weapons that were not sold to
anyone, to dig canals that never paid off, to build reservoirs on the site of
the most fertile pastures and arable land, and so on.
By the end of 1991, it
turned out that they had printed several thousand times more than they
"needed". And in 1992, when this money bubble burst, the country
found itself without money, and every citizen had lost all the savings accumulated. In other words, the consequence of the
industrial crisis left the country and its population literally left with empty pockets, without money to start a new life with.
Third, it was a crisis of the limits to growth, pollution of the environment
in relation to the possibilities of human populations to tolerate it resulting
in a catastrophic decline in the immune status of the population, a
catastrophic increase in morbidity of newborn generations, lower life
expectancy, increase in mortality and reduction in the number of Russians. The
crisis caused by the placement of industrial enterprises in cities, deepened by
the Chernobyl disaster, reinforced by the large-scale and stupid reliance on chemicals in agriculture and many other decisions of the Soviet government.
Fourth, it was a crisis of the limits of the increasing complexity of the managed
system in relation to the control system.
The Soviet system of
management was an extreme case of the 20th-century expression of a strictly
hierarchical system of management of society as a whole, a management system
where, in the end, the final decision depends on the ability of one person to
choose the best option from the available or proposed set of options.
When it comes to
accounting for the interests or managing the behavior of a hundred or a
thousand subjects (people, businesses, battalions), this is still possible
(provided that the decision-maker is smart and experienced, and his assistants,
offering options, at least, do not seek personal gain). When subjects are
numbered in the tens and hundreds of thousands, millions, and so on, no brain
is able to make an objectively balanced decision. He can guess it, but the more
complex the situation, the less likely it is to be guessed. As a result, in
search of stability or in the name of survival of its constituent elements, the
system under the leader begins to split into simpler self-managed
subsystems.<>
One of the results of
the crisis of the management system was the collapse of the USSR into its constituent parts,
which at the beginning of the perestroika were objectively almost independent
subjects with their own interests, which they defended in the
fight against other similar subjects. First, there were the former republics of the USSR,
whose transformation into sovereign countries was secured by the Bialowieza
agreements of December 1991. Second, agencies that began to
form industrial conglomerates, such as Gazprom, RAO, "EU Russia", etc.
Another result of the crisis of the management system was a sharp reduction in
the number of functions performed by the state, in the form of its taking care of most of the normal functions of social security of the
population (education, health, etc.)...), as well as ensuring law and order.
With the country's
bankruptcy, and then the persistent budget deficit, this
process of simplification of state power was essentially irreversible and supported by the law of positive feedback:
- lower budget - less
ability to take care of the population, less ability to ensure order;
- less care and order -
less interest in paying taxes; worse with tax collection - less budget...
Of course, I do not
pretend that the list of crises of the limits of growth in the USSR
that I have given is exhaustive. But these crises are real and, from my point
of view, obvious and understandable. All the causes of these crises, which led
to the collapse of the "USSR"
system, continue to operate in the global system, of which the fragments of the
socialist camp have become an organic part.
2. The Future
The production of all
types of natural resources, including energy carriers, continues to grow. And the growth of
financial resources continues to outstrip the growth of production, determined
by speculative play on the dynamics of the difference in the exchange rates of
the world's leading currencies, the distribution of loans that have no
prospects of repayment, etc.
"In the mid-and late '80s, global markets
were gripped by financial fever. Financial and currency speculation carried
out with the help of computer communication systems, turned into a game
completely disconnected from the real economic reality." King A., Schneider B. The First
global revolution. Report of the club of Rome.
Moscow, 1991.
Environmental
pollution from human waste continues to grow.
"Over the past 20 years, the number of
natural disasters, primarily hurricane-force winds, and floods, has increased
four times, the amount of material damage caused by them - eight times, and the
losses of insurance companies associated with these disasters - 15 times, and
this is a direct consequence of environmentally poorly controlled human
economic activity," - said in one of the reports of specialists of
"Munich Re", a German insurance company." Financial News. July 21, 1998
The complexity of the
world economic system as such continues to grow in relation to the structures
created to manage it by the UN, the World Bank, the World Trade Organization,
etc. and sooner rather than later, all these crises will happen to humanity as
"unexpectedly" as the ones described above happened to the population
of the USSR. The World3 model predicts a resource crisis for approximately
2010-2015.
The self-destruction
of the Soviet system was mainly reflected in the loss of the integrity and coherence
of the system, which was replaced by the sum of economic, social, etc., subjects,
who lost almost the entire set of familiar connections as they were known before.
Citizens have lost
their former support and protection of the state - from crime, from diseases,
from the elements, as well as pension protection, payment for public service,
etc.at The same time, citizens have lost their usual connections with friends
and relatives scattered throughout the crisis territory.
State authorities at
all levels have lost the support of the population, lost the usual sources of
income (both taxes from the bottom and subsidies from the top), and the usual
levers of control.
Economic entities have
lost established ties with their" neighbors " along the technological
chain, with familiar consumers, sales markets, sources of investment, lost
government orders, and lost ground in the form of a population able to buy.
The social
consequences of an unexpected fall into crisis are most clearly shown in the
example of Russia.
Escalating violence at
all levels - from domestic to state, violence becomes the main lever of
control: the power of law is everywhere replaced by the power of force,
including the power of money, which is absent from the majority of the
population.
The loss of science is
not so much as a complex of knowledge, but primarily as a tool in demand by
society for organizing life, interacting with the environment, etc., including
in the field of health and education. Discontinuation of high-tech production,
discontinuation of production of complex equipment.
Disruption of
communications, primarily systems for the physical movement of raw materials,
goods, and people. The safety of electronic communications turned out to depend
on the production or purchase of computer equipment abroad that ensures their
functioning, so it is also questionable.
Mass unemployment, the transition to pre-industrial forms of self-sufficiency in
food and basic necessities, and life support in general. A sharp drop in living
standards.
The increase in
morbidity and mortality is most noticeable among young and middle-aged people:
from stress, accidents, armed conflicts, and epidemics.
Of course, we would
like to see developed countries, whose behavior largely determines the timing
and scale of upcoming global crises, try this scenario on themselves. And if
they don't want to do this, they would draw conclusions. But this is unlikely.
"In other words, a dispassionate person
might have noticed that in a certain sense the nineteenth century in the West is
still going on. In Russia,
it ended; and if I say that it ended in tragedy, it is primarily because of the
number of human victims that the social and chronological change brought about.
In a real tragedy, it is not the hero who dies - it is the chorus that
dies." Joseph Brodsky. Nobel lecture.
1987.
3. Lessons from the Soviet Collapse
From my point of view,
it is important for residents of post-Soviet States to understand the
following.
First, the "USSR"
system did not lag behind, but overtook the so-called civilized world, becoming
the first industrially developed country to survive the crisis of growth limits
predicted by the experts of the club of Rome
in all its various aspects.
Therefore, it is
initially pointless to look for a way out of the crisis in the past or in the
"West", since this has not happened before with industrialized
countries. And the countries that reached the limits of the growth of natural
resource exploitation at earlier stages of development simply disappeared from
the face of the Earth long ago, leaving descendants only picturesque ruins.
That is why the
sincere advice and recipes of leading Western economists, to their and our
surprise, did not work for the former USSR republic, even if you cry, even if you laugh. And the economic
revival is being pushed back and back to an uncertain day after tomorrow.
"Blind copying by developing countries of
the path that the Western economy has taken is not a viable strategy, both from
the point of view of ecology and for other reasons." King A., Schneider B. The First
global revolution. Report of the club of Rome.
Moscow, 1991.
Secondly, all the factors and causes that led to the crisis of the USSR are
present and active in the global economic system. The crisis of the USSR
is misunderstood as the defeat of one of the management systems (socialism) in
competition with another management system (capitalism), and not as the defeat
of the way nature is managed (including the use of human resources) inherent
in our civilization.
Therefore, the global
systemic crisis of growth limits should be considered an inevitable event in
the near future, which should be prepared for in order to minimize suffering
and losses. There is no reason to expect universal economic prosperity in the
twenty-FIRST century. This century will be no less difficult than the twentieth.
And it depends only on us how difficult it is.
Third, the population of post-Soviet States objectively finds itself in a
winning situation, which it may or may not take advantage of.
In fact, due to
external investment and foreign trade in raw materials, the decline in living
standards was not so terrible. And at the stage of pre-crisis growth of the
global economy, the standard of living in post-Soviet countries will grow or
stabilize.
The relatively high
average intellectual level of the population in principle allows you to
understand what happened and draw constructive conclusions from it, that is, to
learn from your own experience, which is incomparably easier than from someone
else's.
External and internal
resources, if desired, can be used to create infrastructure and production
facilities that allow us to meet the global crisis more prepared (including
significantly more prepared) than our own domestic one.
Fourth, in our experience, there are many forces for which the predicted
development of events in the crisis scenario is objectively acceptable and even
favorable.
These are almost all
structures of organized crime. Perhaps with the exception of the drug mafia,
whose profits are directly proportional to the strictness of prohibitions on
the production and consumption of drugs.
These are
manufacturers of low-tech battlefield weapons, the demand for which will grow.
These are any
organized structures and groups focused on establishing authoritarian control
over the population, including some associations that call themselves
"green".
This also needs to be
remembered by ourselves and reminded by others.
Fifth, looking at fifteen to twenty past years of crisis, we have every reason
to say that the next wave of the crisis can be overcome if most of the population will be aware of the reasons for the
crisis. If socially
active citizens will understand that given the past you can come to a crisis
armed with new connections, new relations, such that will help to overcome the
crisis, preserving the best of our civilization.
You don't need to work
miracles to do this. The elements of the constructor from which a new
civilization is being built are scattered on the ground: you only have to bend
down to pick them up, you only have to unite, reach out to each other to put
these elements together.
If everyone adapts, we may not notice how the waves of history will carry away the mistakes
and errors, the dirt and pride of our world, as one morning we will find
ourselves on the other side.