From The State and Revolution
Chapter 5, part 4. The Higher Phase of Communist Society
Until the "higher" phase of communism arrives, the socialists demand the strictest control by society and by the state over the measure of labor and the measure of consumption; but this control must start with the expropriation of the capitalists, with the establishment of workers' control over the capitalists, and must be exercised not by a state of bureaucrats, but by a state of armed workers....
But the scientific distinction between socialism and communism is clear. What is usually called socialism was termed by Marx the "first", or lower, phase of communist society. Insofar as the means of production becomes common property, the word "communism" is also applicable here, providing we do not forget that this is not complete communism. … Marx gives an analysis of what might be called the stages of the economic maturity of communism....
Here "quantity turns into quality": such a degree of democracy implies overstepping the boundaries of bourgeois society and beginning its socialist reorganization. If really all take part in the administration of the state, capitalism cannot retain its hold. The development of capitalism, in turn, creates the preconditions that enable really "all" to take part in the administration of the state. Some of these preconditions are: universal literacy, which has already been achieved in a number of the most advanced capitalist countries, then the "training and disciplining" of millions of workers by the huge, complex, socialized apparatus of the postal service, railways, big factories, large-scale commerce, banking, etc., etc.
Given these economic preconditions, it is quite possible, after the overthrow of the capitalists and the bureaucrats, to proceed immediately, overnight, to replace them in the control over production and distribution, in the work of keeping account of labor and products, by the armed workers, by the whole of the armed population. (The question of control and accounting should not be confused with the question of the scientifically trained staff of engineers, agronomists, and so on. These gentlemen are working today in obedience to the wishes of the capitalists and will work even better tomorrow in obedience to the wishes of the armed workers.)
Accounting and control - that is mainly what is needed for the "smooth working", for the proper functioning, of the first phase of communist society. All citizens are transformed into hired employees of the state, which consists of the armed workers. All citizens becomes employees and workers of a single countrywide state "syndicate". All that is required is that they should work equally, do their proper share of work, and get equal pay. the accounting and control necessary for this have been simplified by capitalism to the utmost and reduced to the extraordinarily simple operations - which any literate person can perform - of supervising and recording, knowledge of the four rules of arithmetic, and issuing appropriate receipts.
When the majority of the people begin independently and everywhere to keep such accounts and exercise such control over the capitalists (now converted into employees) and over the intellectual gentry who preserve their capitalist habits, this control will really become universal, general, and popular; and there will be no getting away from it, there will be "nowhere to go".
The whole of society will have become a single office and a single factory, with equality of labor and pay.
But this "factory" discipline, which the proletariat, after defeating the capitalists, after overthrowing the exploiters, will extend to the whole of society, is by no means our ideal, or our ultimate goal. It is only a necessary step for thoroughly cleansing society of all the infamies and abominations of capitalist exploitation, and for further progress.
From the moment all members of society, ... have learned to administer the state themselves, ... from this moment the need for government of any kind begins to disappear altogether. The more complete the democracy, the nearer the moment when it becomes unnecessary. The more democratic the "state" which consists of the armed workers, and which is "no longer a state in the proper sense of the word", the more rapidly every form of state begins to wither away.
For when all have learned to administer ... social production, .... keep accounts and exercise control over the parasites, the sons of the wealthy, the swindlers and other "guardians of capitalist traditions", the escape ... will inevitably become so incredibly difficult, ... and will probably be accompanied by such swift and severe punishment ... that the necessity of observing the simple, fundamental rules of the community will very soon become a habit.
Then the door will be thrown wide open for the transition from the first phase of communist society to its higher phase, and with it to the complete withering away of the state.
Abreviated from electronic edition of The State and Revolution at