.
| Russian
Land: An Ethic for a New World |
| [Reprinted from Land
& Liberty, 1994] |
The author, a scholar at
the Institute of Economy, Russian Academy of Sciences, Moscow,
prepared this article for Land and Liberty after re-reading archival
materials published between February and October 1917. She returned to
the original documents after reading studies that were written by
consultants to the Centre for Incentive Taxation, London, which were
published in St. Petersburg in 1993.
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At the turn of the century, the works of Henry George were very popular
in Russia. Sergi D. Nickolayev was the translator. He shared Henry
George's ideas, popularised them, wrote a biography of him and belonged
to the followers of Leo Tolstoy, who was an ardent advocate of land
reform. Progress and Poverty was published in 1896 and Social
Question in 1907 with an introduction by Tolstoy.
Tolstoy wrote that "a simple change in the taxation system is
considered to be a greatest turnover in public relations". He was
upset that Henry George's "great ideas" remained unknown to
the majority of the population. "It is the way society is dealing
with ideas, disturbing it's peacefulness", and "feeling by
their feeling of self-protection the danger..."
But it was impossible to kill this fruitful idea "especially in
Russia, because mere lived and still lives among the great majority of
Russians, the main Henry George idea that land is the common property of
all people and it is land that should be taxed and not people's labour.
Rent should be used by society in the interests of all its members."
Russian people always shared this idea and were bringing it into life.
There was no force from the government to hinder.
Tolstoy wrote of "The only possible solution of the land problem".
And: "to solve the land problem does not mean to meet the wishes of
one or another group of people, it means to reinstate the disturbed
natural right of everybody to the land and the right of individuals to
the results of their labour".
Tolstoy then continued that "private ownership of land is terribly
unfair," and he restated that everyone had the equal right to land.
The mechanism for achieving mis, he acknowledged, was a single tax on
land value, which would open up access to land for all working people.
The policy had to be introduced step by step, for it was impossible to
value all land at the same time.
IN 1885, prior to the Russian translation of Henry George's books,
Mikhail M. Filippov (1858-1903), the well known Russian philosopher and
writer, published a book in which he analyzed Henry George's ideas in "Social
Question (H.G. studies)".
Filippov wrote that Henry George's main idea was that implementation of
the single tax "will simplify a financial mechanism in the state
and turn land indirectly into national property." To collect land
rent means mat land is being "transferred" into the hands of
those who are involved in productive activity. Small businesses would
benefit.
Concentration of land rent in the hands of society corresponds to the
nature of rent -- it is a result of common endeavour.
THE WAY preparations were made for agrarian reform in 1917 shows the
influence of Henry George's ideas. The main Land Committee of the
Provisional Government and the League of Agrarian Reforms were in charge
of that reform.
The initiative to create the League was taken by Alexander Chayanov.
The League represented a scientific society which combined all
well-known specialists in agrarian problems. The League organised three
all-Russian Congresses, and it published papers containing statistical
data and the results of research work.
A scientific movement of those who supported Henry George's ideas
existed within the League. Among its members was Sergi Nickolayev, the
translator of Henry George's works who enabled a wide circle of people
to learn and understand Henry George's idea of a single land tax.
In the pamphlet "What does the agrarian question mean?"
(Moscow, 1917), published by the League, Chayanov mentioned the idea of
State regulation of land possession on the basis of a state plan of land
use, which was supported by a group of economists who were popularising
the plan of reform. They took into account the differences in life style
and economic systems in the different regions of Russia.
The central problem was the system of property rights for land, and in
particular the attitude to the private ownership of land.
Chayanov believed that private ownership "was not our ideal,"
but that at the same time it was not a "social misunderstanding".
It was a "social fact, brought into life by specific conditions of
time and place". In their draft of a policy for land, those who
supported the idea of state regulation did not abolish private
ownership, but they proposed "to abolish the opportunity freely to
buy and sell the land. Land would cease to be a free commodity."
Chayanov explained that it was "a freedom to buy and sell land"
that was to be abolished, not the turnover of land. A person could sell
land only to the state, and it could be obtained only from the state.
State land was a land fund that would be used in the interests of
society.
Chayanov recognised mat the Single Tax system was the collection of
land rent by the state, but it was not the state that used all the land
itself. The state was able to control the Agrarian Reform as the land
tax was progressively introduced. There was no free buying and selling
of land. The state received the right of eminent domain. At the same
time the introduction of a single tax guaranteed the democratic
character of public revenue, the main components of which would be
rental revenue and income tax.
Chayanov was sure that the single tax and state control could be
introduced immediately because they were not constructing a new land
order but new conditions for the economic activity. The land order was
created by spontaneous development of the economy, not installed by the
state.
At the same time the state was not going to organise agricultural
activity itself. "The State should regulate an evolution of
agriculture, to regulate turnover of goods. Control means that there
will be no free buying and selling of land. A special system of
permission for deeds connected with land will be introduced."
IN THE SUMMER of l917 the League for Agrarian Reforms held its Second
Congress. The debates disclosed the direction in which the policy-makers
were moving.
A. Minick, Chayanov's close friend and supporter, gave a speech. From
this, it is possible to guess that it was he who contributed a great
deal and was one of the authors of a plan about the state's regulation
of the possession of land, about which Chayanov had earlier spoken.
Minick's ideas can be summarised as: differentiation in the taxation of
lands of different categories, regulation of the process of land
transfer, elimination or limitation of free buying and selling of land
in some categories, control over inheritance, and division and
concentration of land sites.
A state should have the right to regulate systems and forms of land
use. The measures of state control over land relations, when "collected
together," constituted a "substantial limitation of private
ownership of the land," which would be practically abolished.
"The measures themselves and the stage of state influence is not
something permanent, related to all the lands in the country. Measures
for different tends should differ in time and correspond to economic
development. Measures can be stronger or weaker according to the
conditions of the particular lands, categories of possession..."!
Minick explained the flexible system of state control which he
proposed, using the example of forests, which would become either state
or municipal. In some cases forests could continue to be privately owned
while the state would retain the right to control the way forests were
preserved. Though there could be different types of economic relations "a
state must have all rights to interfere with the process of economic
activity. Economic development must go on free but under state control".
Minick characterised his economic measures as nationalization of land.
The state received land rent not only for fiscal reasons, but also in
the interest of more effective land use.
S. Nickolayer reminded delegates of Leo Tolstoy's thought that Henry
George's ideas about land and labour "are very near to the
mentality of Russian peasants and totally corresponds to their
understanding by all Russians". Land should become the property of
all people, which meant mat land rent should be the property of
society.[2]
At the same time he stressed the need for "guarantees of the right
to dispose, to be sure that if I am planting a garden, this garden is
mine and I am able to sell it."
PLANS for a new Russian land order were not completed. But it is
obvious that very specific approaches to land, based on Henry George's
ideas, existed in Russia.
This approach treated land as unique property, granted to the people
just as was water and air. There was an understanding that property
rights for the land should include a moral base. The state should act as
the owner with supreme rights, for the land is the property of all.
It was understood mat land should be effectively used for the benefit
of everybody, but that it could not belong to nobody. Thus it can be
owned by the state directly, be in collective or private ownership, and
those owners should have right to use land in their economic activity
and have the right to dispose of it.
Everything, however, was on the condition that the state had the right
to collect land rent, to regulate land use and the turnover of land.
Russia had a historical tradition that reflected a special attitude to
the land, which offered the basis for a unique approach to agricultural
development. This offered the opportunity to create an economic system
mat was based on the market but at the same time would not repeat
western models. If land was preserved as common property, this would
provide a moral base to the economy.
It is extremely important to learn our own history, to understand it
and to try to revitalise the best ideas and achievements we had to help
economic and social progress of Russia and other countries.
REFERENCES
[1] A. Minin, Report at the II Congress of the League
of Agrarian Reforms (Main ideas about the solution of Agrarian Problem).
Papers of II All Russian Congress of the League of Agrarian Reforms,
Moscow, 1918, Issue I, pp. 34-37.
[2] Ibid,, pp 58-62.
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