THE SPPF CONGRESS ’08

Rene and Michel - will they still be on the same page after the SPPF congress?Rene-ism v/s Michel-ism

RENE-ISM

The SPPF Congress to be held on the 7th June 2008 is set to be dominated by two conflicting and diametrically apposite political ideologies - Reneism and Michelism. Reneism is generally described as the adoption and application of the Marxist-Leninist policies which were adopted by Rene and his SPPF party in Seychelles after June 1977, with some slight variations to cater for the local flavor. This ideology was characterized by a centrally controlled economy, one party state socialist communist political ideology and a general lack of basic freedoms and fundamental human rights. Nationalization without compensation also formed an integral part of its centre piece. The National Youth Service was the direct adaptation of a Korean version which impressed Rene when he paid a visit to that country. Central Committee members such as Danny Faure, Vincent Meriton, Barry Faure, Marie Louise Potter, Simon Gill, France Bonte and Patrick Herminie are all students of this school of thought and are known Reneism sympathizers.

Rene, it is generally accepted, holds Lenin in reverence and in his heyday courted Chairman Mao of China, Kim Il-Sung of North Korea, Fidel Castro of Cuba and even Kaddafi of Libya, all known celebrated communists. Nyerere of Tanzania was also a close friend and favourite of Rene. He personally deployed Tanzanian troops at the request of Rene immediately after the coup to consolidate its success. Lenin had argued that the proletariat can only achieve a successful revolution consciousness through the efforts of a Communist party that assumes the role of "revolutionary vanguard." Lenin further believed that such a party could only achieve its aims through a form of disciplined organization known as "democratic centralism," where Communist Party officials discuss proposals but agree to not question decisions after they have been made.

Lenin argued that the proletariat can only achieve a successful revolution consciousness through the efforts of a Communist party that assumes the role of "revolutionary vanguard."  Lenin expanded on Marx's original theories, taking into account the fact that increasing class polarization and Communist revolution had failed to occur in the developed world. He attempted to explain this by stating that imperialism is the highest stage of capitalism, and that developed countries had created a labor aristocracy content with capitalism by exploiting the developing world. He maintained that capitalism could only be overthrown by revolutionary means, but added that due to imperialism such a revolution would have to occur in a lesser-developed country first, such as Russia. Lenin also supported the Marxist concept of the "dictatorship of the proletariat" following revolution, in which the working class is presumably represented through local Marxist-Leninist councils known as soviets, locally known as “biro brans”.

THE ECONOMY

Like the Soviet Union which had the largest centrally directed economy in the world, Rene also believed in central planning. The SPPF government established its economic priorities through central planning; a system under which administrative decisions rather than the market determined resource allocation and prices. In the early 1980s Rene even experimented with collectivization and ordered all farmers and fishermen to sell their produce to SMB which will then sell and distribute to consumers.  The same system had created crises in the agricultural sector which reaped catastrophic consequences in the 1930s in the Soviet Union   when collectivization met widespread resistance from the kulaks, resulting in a bitter struggle of many peasants against the authorities, famine, and between 5-10 millions of deaths, particularly in Ukraine, but also in the Volga River area and Kazakhstan. In the consumer and service sectors, a lack of investment resulted in black markets in some areas.

During the Cold War era, Rene was adept at playing the USSR against the USA and money poured into the country by the millions which Rene, by and large,  used to set up and then consolidate his welfare state program and further his socialist revolution. With the advent of the Cold War however, things took a turn for the worse. The growth rate slowed substantially. Extensive economic development, based on a perilous tourism industry, several white elephants in the form of parastatals which had monopolistic control and export of fisheries was no longer possible; and productivity remained low compared with other developing countries like Mauritius. Rene faced a fundamental dilemma: the strong central controls that had traditionally guided economic development had failed to promote the creativity and productivity urgently needed in a highly developed, modern economy.

Conceding the weaknesses of his past approaches in solving new problems, Rene, in the early 1990s was seeking to mold a program of political and economic reform to galvanize the economy. Like Mikhail Gorbachev, before him, who was experimenting with solutions to economic problems with openness (glasnost) never before seen in the history of the economy. One method for improving productivity appeared to be a strengthening of the role of market forces. Yet paradoxically, reforms in which market forces assumed a greater role would signify a lessening of authority and control by the planning hierarchy. Rene, under great pressure from the West and with few remaining friends overseas finally succumbed to the inevitable and re-introduced multi-party politics in Seychelles in 1993. Some have argued that his political ideology however, has remained fundamentally intact.

MICHEL-ISM

President James Alix Michel, who was unexpectedly appointed President in April 2004, has been anxious to distance himself from the political as well as the economic policies of Rene. Rene cut his mandates short to hand over the reign of power to Michel after it became crystal clear that if fundamental political and economic reforms are not undertaken quickly, the whole country will collapse.  Since Rene refused to be the one to do the about turn and lose face, he tasked Michel with the slow and painful reforms ahead. The politically astute Rene instinctively knew that Seychellois will suffer considerably as the reforms bite and the cost of living spiral out of control. Thus, his decision to step down prematurely and let Michel take the blame for the hardships. Under Michel's Presidency, Seychellois arguably enjoys a greater degree of freedom under a modern and forward looking constitution.

Michel has also made several economic and political reforms. In marked contrast to Rene, politically, Michel has placed emphasis on good governance, transparent and accountable government. He has been more tolerant of the opposition even agreeing to meet Ramkalawan, the Leader of the Opposition, to open a political dialogue.  He has also opted for a free market economy, removing most of the shackles which have stunted economic growth and progress. He has also abolished monopolies and embarked on a privatization program which has allowed the private sector to be the motor of the economy rather than the government, as was the case under Rene. He also sent legislations to the National Assembly to implement the Financial Services Sector as the third pillar of the economy with its centre piece being the first Seychelles Stock Exchange. It is to be remembered that Rene flirted with capitalism when he announced the concept of “Seychelles Incorporated” on the advice of the former Central Bank Governor, Aboo Aumeruddy. However, Rene's heart was not in it and he quickly abandoned the idea and dragged his feet on economic and political reforms.

Michel is a known Milton Keynes admirer and has fashioned a large portion of his economic reforms on the work of the great Economist. Milton Keynes is perhaps one of the best known of all economists. This is hardly surprising for two main reasons. The first is that his work was perhaps the most important work that had been done for decades and changed the whole face of post-war economic policy. The second, more flippant reason for his fame is that he is perhaps the only economist to have a whole branch of economics named after him. Though it would be nice to argue that Milton Keynes was named in tribute to the work of two great economists - Milton Friedman and John Maynard Keynes - it would be totally untrue! So Keynes remains the only person to be honoured in this way.

His main contribution to the economics debate of the time was in putting together a coherent critique of the existing classical economic theory that dominated policy-making circles. Keynes' father was an economist and his mother was Mayor of Cambridge for some time. Keynesian economists are, not surprisingly, so named because they are advocates of the work of John Maynard Keynes (if only all economics was that easy!). Much of his work took place at the time of the Great Depression in the 1930s, and perhaps his best known work was the 'General Theory of Employment, Interest & Money' which was published in 1936. He also acted as an advisor to a number of companies. In the Second World War he made his peace again with the Treasury. As a result he was instrumental in providing the framework for post-war economic recovery.

Michel has looked to the economic theories of Keynes and Friedman, both strong advocates of the free market economy, as he attempts to reverse 30 years of economic meltdown under Rene. Michel, it seems, was a “capitalist” hiding in the closet, patiently bidding his time. He is now making his official “coming out” as he attempts to transform an archaic and outdated economy into an engine of economic growth using tourism, fisheries and the financial services sector as its foundation.

The SPPF is now divided into two camps; Reneism and Michelism. People like Maryse Berlouis, Alain Butler Payet, Francis Chang Leng, Joel Morgan, Marie Pierre Lloyd,  Bernard Sham-Laye and MacSuzy Mondon are firmly in the Michel camp. The question many are now asking is which ideology will triumph and ultimately win the day. Although it is not in dispute that Rene still wield considerable political power as President of the party, speculation is rife that if Rene does not get his way he will step down on the 7th June leaving the field wide open for Michel to continue to consolidate his economic and political reforms.

Rene secretly believes that Michel is heading towards catastrophe and lacks the acumen to turn Seychelles into a prosperous and peaceful country. For this reason he may surprise everyone by allowing Michel to take over the helm of the party to self destruct.

May 30, 2008
Copyright 2007: Seychelles Weekly, Victoria, Mahe, Seychelles