Spinoff from this thread, “Is it possible to be anti-capitalist and pro-market?”
When the Spanish Civil War broke out in 1936, another, related but distinct phenomenon took place: The mainly anarcho-syndicalist Spanish Revolution. In which the workers took control of the factories, etc., for real. It was as if a labor union local, instead of demanding concessions from management, demanded to be the factory’s management and its sole stockholder too, and made it stick.
Ultimately the Spanish Revolution was crushed – not by Franco; by the Republican government, which was increasingly dominated by Communists following the line of Stalin, who did not like any of the above one little bit. To Stalin, and to all orthodox Communists worldwide following the Soviet lead, the proper revolutionary model was the Soviet model: The Communist Party in control of the state, the state in control of a centralized planned economy.
At this time Stalin was what amounted to the Pope of the International Communist Church, and true believers generally hate heretics even worse than they hate infidels. This was a period of schism within the international Marxist-Leninist socialist movement, between the followers of Stalin and those of Trotsky, still alive in exile at this time, still accusing Stalin of “betraying the Revolution.” Stalinists returned the favor and called Trotsky the traitor, and Stalin’s agents in the USSR and abroad were hunting and persecuting Trotskyists and suspected Trotskyists with the zeal and ferocity of 16th-Century Roman Catholic inquisitors hunting Protestants. Trotsky was accused of conspiring with the Fascists and Nazis and was blamed for all the USSR’s troubles. Anyone Stalin saw as a potential rival for power, anyone he wanted to eliminate or scapegoat or demonize, was accused of being a Trotskyist agent. (All this inspired the scenarios in Orwell’s later political novels: Animal Farm, where Napoleon blames everything on the absent Snowball; and Nineteen Eighty-Four, where the bugbear is the mysterious Immanuel Goldstein, purported leader of the Brotherhood.) And then there were the Anarchists, who were even further out there from a Stalinist POV.
Towards the end of the Civil War, all Anarchist, Trotskyist, any non-Stalinist leftist parties in Spain were suppressed. As George Orwell recounts in Homage to Catalonia, he happened to have volunteered with the militia of the POUM and got out of Spain just in time to avoid being arrested (by the Republican government, not by Franco). Yes, the infighting sapped the Republic’s ability to resist Franco; OTOH, putting down the non-Stalinists was a condition for continued Soviet military aid, on which the Republic was utterly dependent.
Question for debate: What if the Republicans had won the Civil War, and won it without crushing the Spanish Revolution? Suppose, also, that in the coming, wider war, Hitler found himself too busy to mess with it, and so Spain remained independent and more or less neutral in WWII (as it did in our timeline when Franco ruled it), and had the same political and economic system after the war was over.
So: How would an economy largely based on self-organized collectives, independent of non-worker owners, independent of the state, independent of any political party, have developed over the following decades?
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Would it have been economically viable in the long run?
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Would it have inspired imitation in other countries?
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Would it, despite its radically egalitarian intentions, inevitably have produced some sort of managerial or leadership elite functionally indistinguishable from the capitalists in the West or the party bosses in the USSR?