This study analyses Soviet socialism by applying Marx’s theory. The Soviet system did not realize Marx’s notion of non-instrumental production (abolition of labor) and hence inevitably developed into a new form of exploitation. Soviet socialism represented a revival of the ancient Asiatic mode of production, characterized by Marx as exploitation based on the negation of private property. Marx shows that Asiatic despotism was brought to Russia by the Mongolian conquest. The Mongols had adopted this despotism earlier, upon conquering China, an (...) Asiatic-despotic (hydraulic) river country. Lenin was aware of Russia’s Asiatic-despotic heritage and feared it might re-emerge under socialism. Following Marx, he adopted a socialist conception advocating an interim stage: a radical welfare state. This conception emerged victorious in the New Economic Policy (NEP). Yet, socialism as a modern version of Asiatic despotism, first developed by Trotsky, temporarily triumphed during the short War Communism period preceding the NEP. Under Stalin’s rule it ultimately prevailed. Marx’s legacy still points to the road to freedom. (shrink)