Posts Tagged ‘BANU’

The Bulgarian Peasant Party’s Solution to the Housing Problem

June 1, 2014

Last week I blogged on the several contemporary issues, which were similar to those tackled by the Bulgarian peasants’ party, BANU, nearly a hundred years ago. These were a local village power company, which was run as a co-operative by the whole community. It was thus similar to the idea of the Utopian British Socialist, Thomas Spence, for the communal ownership of land by the individual parishes, and also to the idea of the Bulgarian peasants’ party for the transformation of Bulgarian agricultural society through the formation of peasant cooperatives. I also remarked on the way the Bulgarians had also set up a policy of allowing the banks to provide loans on reasonable rates to credit cooperatives as a way of driving out the moneylenders. This is a problem that now besets British society, through the return of loan sharks and payday loan companies, like Wonga, that offer extortionate rates, because of wage freezes and cuts to welfare benefits.

Bulgaria, like modern Britain, also suffered from a housing crisis, made worse by the influx of thousands of refugees displaced by the First World War. They attempted to solve it through a mixture of policies, one of which was similar to the Bedroom Tax. They laid down the maximum amount of space that a family could occupy in a property, so that there would be more space available for the homeless. They also set about building cooperatively owned tenement blocks. R.J. Crampton describes these policies in A Short History of Modern Bulgaria (Cambridge: Cambridge University Press 1987) 90).

The principle of maximum holding was applied to urban as well as rural property. The post-war refugee invasion had placed severe strains upon the already hard-pressed housing resources of Bulgaria’s towns, particularly Sofia. According to Agrarian legislation no family was to occupy more than two rooms and a kitchen, with an extra room for every two children over fourteen. Office space was also subject to restriction, and in the case of both domestic and office accommodation commissioners acting on behalf of the ministry of the interior had extensive powers to enforce the new and widely resented regulations. A second and more popular response to the housing shortage, and one much in conformity with Agrarian philosophy, was to encourage the building of new apartment blocks cooperatively financed and thereafter owned by their inhabitants. This reform survived the fall of the Stamboliiski regime and cooperative building continued through the inter-war period.

The German radical Socialist party, the USPD, also had a similar policy in the same period, for the same reasons: to solve the shortage of housing caused by the First World War.

What’s needed isn’t the Bedroom Tax, which is really an excuse to cut Housing Benefit by pretending to withdraw a subsidy that never in fact existed, if tenants of supposedly under-occupied properties don’t move out to suitable homes, which also don’t existed. What is needed to solve the problem is simply building more social and genuinely affordable housing, which the Conservative actively seem to oppose. When the ‘right to buy’ legislation was passed, councils were forbidden from building more council houses, and ‘affordable’ properties are only pegged at 80 per cent of the market worth, which means that in many parts of the London houses are well out of the price range of the very poorest, who need them. It’s possible that cooperation schemes, like those enacted by the Bulgarians, might be part of the solution.

Something like the Bulgarians’ legislation limiting the maximum amount of space families can occupy could also be applied to private housing. The Bulgarian policy was based on the view that you should only possess what you can actually work yourself. Thus there was a maximum amount of land allowed to be cultivated by peasant farmers. Large landowners were forced to sell the excess land to the smaller peasants, so that each peasant farmer had just enough for his needs and those of wider Bulgarian society.

The great French anarchist, P.-J. Proudhon, had a similar view. Much of his Mutualist anarchist system was based on his experience of peasant society in the Jura, where he grew up. While he didn’t set the maximum amount of space people could occupy in their houses, he did recommend that people should lawfully own only what they could actually practically use themselves. Thus, landlords, who held multiple properties, which they rented out, should have all but the property they themselves lived in expropriated and given to the people, who needed them.

I believe a similar policy could be usefully implemented today. Perhaps we need the ‘right to buy’ principle extended to all the private tenants, now forced to rent homes at exorbitant rents because of the way available housing was bought up by people seeking to rent them out later in the housing boom of the 1990s. I also believe that there are many under-occupied private homes, with considerable space going without tenants, in certain parts of London, such as Knightsbridge, Kensington and Westminster.

And possibly Chipping Norton. I can’t see how Dave Cameron, whose government is responsible for the Bedroom Tax, and who has said repeatedly that ‘We’re all in it together’, would possibly object to having to share his home with a couple of crusties.

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Radical Balladry: Folk Protest Songs against the Credit Trap

May 31, 2014

On Thursday I published a post about the way the Bulgarian peasants’ party, BANU, attempted to provide reasonable credit from banks lent to peasant credit cooperatives as a way of destroying the moneylenders that had plagued Bulgarian rural society, as a result of whom hundreds of villages had found themselves in serious debt. I suggested that we needed something similar to act against usurers, such as Wonga and the other payday loan companies. Thousands of people in Britain have now also found themselves heavily in debt because of the way they have been forced to rely on such companies, as well as criminal loan sharks, because of low wages and the repeated slashing of benefits by successive governments. People have also been caught in the credit trap through the absurdly easy terms on which it was available during the boom years. Advertisers must share their responsibility for this, has the television adverts for the services of Wonga and the various credit cards suggest that this is all free money, which the borrower doesn’t need to worry about paying back. It’s a seductive message, and all too many people have been taken in and deceived by it.

Jess has also commented on this post with her encyclopaedic knowledge of the long tradition of radical British folk music. She notes that there was an outcry at the way many people were finding themselves in debt through hire purchase when this was introduced in the 1950s. Then as now, Right-wing think tanks attempted to justify the creation of easily available credit, which could lead the poor and vulnerable into a never-ending cycle of debt. This indeed occurred, and was bitterly criticised in song by Graham Gouldman and Jeff Beck. Jess writes

“Britain too in the 21st century has seen the return of the loan shark and moneylender as thousands, perhaps millions, have got into serious debt. Some of this has been through the absurdly easy credit that was offered in the boom years, ”

The availability of ‘absurdly easy credit’ was one of the cornerstones of the neo-liberal agenda.

Way back in 1958 the IEA published their apologia for the money-lending industry ‘Hire Purchase in a Free Society’ [Harris, Naylor & Seldon]

A typical IEA publication of the period, it contains a few gems;

“Social Impact;
Criticism of hire purchase has not come only from moralists who condemn the practice on the grounds that it ensnares people into debts they cannot afford to repay’ morphs into, with an aside from Walter Greenwood’s condemnation of ‘tick’ in ‘Love on The Dole’ to the assertion that;

“Harry [the character condemned by supposedly old-fashioned notions of debt as a weekly ‘mill-stone around the debtors’ neck’ got his new suit…”

Just how deeply the tally-man was disliked, generally, is suggested in this song from Graham Gouldman, (recorded with great reluctance by Jeff Beck)

“To our house on a Friday
A man calls every week
We give him a pound
When he calls on his round

To our house on a Friday
A man calls every week
We give and we get
And we’re always in debt

With his plan he carries all we’re needing
With his plan most anything is ours
He’s the Tallyman, oh yeah
He’s the Tallyman

Shoes and socks, hard wearing for the children
Village frocks all in the latest style
From the Tallyman, oh yeah
From the Tallyman

To our house on a Friday
A man calls every week
We’ve made him a friend
So he’s here to the end

From cradle to grave
We expect him to say
Here’s tick to the end
So we’ve made him a friend
Here’s tick to the end
So we’ve made him a friend”

[Beck objected to Mickie Most’s insistence on a ‘catchy’ follow-up to ‘Silver Lining’ and hated the production, rather than Graham Gouldman’s lyrics]

The debt problem is likely to become even more severe with the government’s cuts to the buffer amount of money allowed to families before they are considered to have been overpaid tax credit, and the use of private debt collectors to pursue the poor, who have been mistakenly overpaid. So this is another song that could reasonably be revived and adapted to suit the new conditions created by Wonga and the like, and now the Inland Revenue.

As for the latter, one of the experts on Japanese monster movies on TV – I think it may have been the great Phil Jupitus – once said that the only time you ever heard cheering during a Godzilla movie was when the epic fire-breathing radio-active dragon from the depths trashed the headquarters of their Inland Revenue in Tokyo. If only something similar would happen to the house of whichever vicious Tory apparatchik dreamed up this bill.

Godzilla

Godzilla: First the Japanese Inland Revenue offices in Tokyo, but will he trash Osbo? We live in hope!

Peasants of Britain Unite and Kick Out the Pay Day Loan Sharks

May 29, 2014

In my last blog post, I looked at the similarities between a community power company set up by the people of a village here in England, and the various schemes for the cooperative reorganisation of society from Thomas Spence’s Land Plan, for the communal ownership of land by each parish community, and Bulgarian Agrarian National Union’s plans for a national and then international society of cooperative peasant communities.

There’s another policy of the party of the Bulgarian peasantry, which I feel very strongly should be adopted by 21st century Britain: legislation and the reform of the banks to cut out and suppress the pay day loan companies, like Wonga and the rest of the sharks. After the liberation from Ottoman rule hundreds of villages in rural Bulgaria had been forced into serious debt to private moneylenders. Many of the Muslim and ethnic Turkish landowners had emigrated or fled to Turkey, leaving large amount of land available for the Bulgarian peasants. There were, however, no banks available to provide them with the loans and credit they needed to purchase the land and essential tools, and so they turned instead to private moneylenders.

The Bulgarian peasants’ party, BANU, and the peasants’ union which preceded it, attempted to combat this by establishing credit cooperatives. After BANU took power in 1919, they attempted to prevent the moneylenders from reappearing by passing legislation insisting that the banks lend money to the cooperatives on reasonable terms.

Britain too in the 21st century has seen the return of the loan shark and moneylender as thousands, perhaps millions, have got into serious debt. Some of this has been through the absurdly easy credit that was offered in the boom years, when people were encouraged to spend as much as they could through credit cards. Other causes include rising rents and mortgages as well as an increase in prices, while pay has been frozen or even cut. The government’s cuts to unemployment benefit have also forced some to turn to private moneylenders, as the amounts provided by Jobseekers’ Allowance is inadequate, sanctions are imposed seemingly arbitrarily according to the whim of the government and the targets set by the DWP to get people off benefit. Those, who are considered to have left their job without good reason are denied benefit for weeks, and the government is considering imposing a waiting time of about three weeks for new claimants before they can get their money.

As a result, Britain has seen a resurgence, not just in criminal loan sharks, but also in the payday loan companies, like Wonga, which offer easy loans at truly extortion rates. The Archbishop of Canterbury, Julian Welby, is recommending a system of Credit Unions to tackle this. Critics fear this will be inadequate. It may well be, but that doesn’t mean that Credit Unions need not part of a broader programme to combat this. We need legislation to cut down the rates at which Wonga and the other loan companies can lend, to reduce them from the 5,000 per cent odd interest rate they are at the moment to something far more manageable. In America, surely one of the most capitalist nations in the world, they aren’t allowed to lend at over 20 per cent. Passing legislation to insist that everyone gets a living wage would also be a massive improvement, as would a complete stop on benefit sanctions, delays in payment and actually raising the amount of money paid to something people can actually live on.

All this, however, would mean abandoning the harsh, neoliberal economic orthodoxy that demands that the poor be penalised, simply for being poor, under the pretext that somehow their poverty is their own fault. And the Tories and their Tory Democrat allies really don’t want to do that by any means. It’s time for the British peasants to follow the Bulgarians of 1919 to throw out the payday loan companies, and kick the Tories out of office.