China continues to accumulate an eye-watering sovereign fund (now over four trillion dollars), which still confounds those who work within the assumptions of neoliberal economics. Even though the situation in China today is much more developed that in the Soviet Union, an earlier experience of the profound complexities of socialism within a capitalist world may provide some insights into the reason for such a fund. In 1925, at the fourteenth congress of CPSU, Stalin argued as follows:

That is why we here must manage our economy in a planned way so that there are fewer miscalculations, so that our management of economy is conducted with supreme foresight, circumspection and accuracy. But since, comrades, we, unfortunately, do not possess exceptional foresight, exceptional circumspection, or an exceptional ability to manage our economy without error, since we are only just learning to build, we make mistakes, and will continue to do so in the future. That is why, in building, we must have reserves; we must have reserves with which to correct our blunders. Our entire work during the past two years has shown that we are not guaranteed either against fortuities or against errors. In the sphere of agriculture, very much depends in our country not only on the way we manage, but also on the forces of nature (crop failures, etc.). In the sphere of industry, very much depends not only on the way we manage, but also on the home market, which we have not yet mastered. In the sphere of foreign trade, very much depends not only on us, but also on the behaviour of the West-European capitalists; and the more our exports and imports grow, the more dependent we become upon the capitalist West, the more vulnerable we become to the blows of our enemies. To guarantee ourselves against all these fortuities and inevitable mistakes, we need to accept the idea that we must accumulate reserves (Works, volume 7, pp. 308-9).

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